Kroger : Earnings Presentation

Kroger Q1 2021 Earnings Release

June 17, 2021

Safe Harbor

This presentation includes certain statements that constitute "forward-looking statements" about Kroger's financial position and expected performance. These statements are based on management's assumptions and beliefs in light of currently available information. Such statements are indicated by words or phrases such as "expect," "believe," "on track," "growth" and other similar statements. Various uncertainties and other factors could cause actual results to differ materially from those contained in the forward-looking statements. These include the specific risk factors identified in "Risk Factors" in our annual report on Form 10-K for our last fiscal year and any subsequent filings. Kroger assumes no obligation to update the information contained herein unless required by applicable law. Please refer to Kroger's reports and filings with the Securities and Exchange Commission for a further discussion of these risks and uncertainties. This presentation also includes certain forward-looking non- GAAP financial measures, which management believes to be useful to investors and analysts. Kroger is unable to provide a full reconciliation of the non-GAAP measures used in our guidance, including, but not limited to, adjusted FIFO operating profit to operating profit and adjusted free cash flow, without unreasonable effort because it is not possible to predict with a reasonable degree of certainty the information necessary to calculate such measures on a GAAP basis. It is not possible to estimate with a reasonable degree of certainty certain of our adjustment items because such information is dependent on future events that may be outside of our control. The unavailable information could have a significant impact on our GAAP financial results.

2

Q1 2021 Highlights

Leading with Fresh, Accelerating with Digital

Feed the Human Spirit

Topline Growth

• Leading with Fresh
• • Innovation: launched Go Fresh & Local Supplier Accelerator
  • Customer Experience: improved fresh scores and in- stock fill rates and reduced Pickup wait time
• Accelerating with Digital
• • Accelerate Sales: expanded Pickup capacity +15%
  • Grow Profitability: grew media revenue per digital basket by 33%

Margin Expansion

• Growing Alternative Profit
• • Growth Accelerator: on track to deliver $100M - $150M incremental profit with strong growth in Kroger Personal Finance and Retail Media
• Productivity Improvements
• • Cost Efficiency: on track to achieve annual cost savings goals of $1B for fourth consecutive year

• Associate Experience
• • Restructured Sound Pension Trust to improve stability and security of retirement benefits
  • On track to increase average hourly associate wage to $16 in 2021
• Live Our Purpose
• • Activated Community

Immunity Giveaway to encourage vaccinations and administered +5M doses of the COVID-19 vaccine to date

• Supporting upcycled food
entrepreneurs through
Zero Hunger | Zero Waste	3
Foundation Innovation Fund

Key Initiatives Drive Strong Results

+14.9% +108%

2-Year Stack Identical

Sales Increase*

-4.1%	+16%
Q1 Identical Sales**		Q1 Digital Sales
Continued strength in Fresh		Driven by strength in Delivery
departments		and Ship

*Identical sales, without fuel, 2-year basis represents the sum of first quarter 2020 and first quarter
2021 identical sales percentages.
**Identical sales without fuel	4
*** 2-year basis represents the sum of the first quarter 2020 and first quarter 2021 digital sales
growth rates

Key Initiatives Drive Strong Results

$805M	$0.18
Operating Profit			EPS
$1,375M	$1.19
FIFO Adjusted Operating Profit			Adjusted EPS
+19.9%	+28.6%
2 Year CAGR FIFO Adjusted OP*			2 Year CAGR Adjusted EPS*

*The 2-year basis items denoted with CAGR represent the compounded annual growth rate utilizing annual 2019 as	5
the base year.