Slides Presented at December 12, 2006 Investor Conference

InvestorConf_Dec06

Certain Slides Presented at

Safeway Investor Conference

and Reconciliation Slides

December 12, 2006

Exhibit 99.2

*************************************************************

************************************************************

InvestorConf_Dec06

Reconciliation of GAAP Cash Flow

Measure to Free Cash Flow

$513.1

$639.0

$814.6

$1,156.1

$567.5

$400-

$600

$400-

$600

Free cash flow

523.1

Cash used for

acquisitions

(2,242.3)

(1,395.7)

(795.0)

(1,070.3)

(1,313.5)

(1,650.0)-

(1,750.0)

(1,600.0)-

(1,700.0)

Net cash flow used by

investing activities

$2,232.3

$2,034.7

$1,609.6

$2,226.4

$1,881.0

$2,150.0-

2,250.0

$2,100.0-

2,200.0

Net cash flow from

operating activities

2001

2002

2003

2004

2005

2006 **

Guidance

2007 *

Forecast

*Excludes cash flow related to Blackhawk Network’s gift card payables and receivables

($Million)

**Excludes $58.5 of interest earned on the favorable income tax settlement, net of tax

InvestorConf_Dec06

Reconciliation of Net Income to Adjusted

EBITDA (Interest Coverage)

($Million)

36 Weeks

Ended

Sept. 9, 2006

2005

2004

2003

2002

2001

Net income (loss)

562.6

561.1

560.2

(169.8)

(828.1)

1,253.9

Add (subtract):

Income taxes

242.2

287.9

233.7

310.9

660.4

841.1

Interest expense

274.6

402.6

411.2

442.4

430.8

446.9

Depreciation and amortization

673.6

932.7

894.6

863.6

888.3

937.7

Lifo

expense (income)

6.9

(0.2)

(15.2)

(1.3)

(17.6)

2.2

Stock option expense

34.7

59.7

Property impairment charges

26.4

78.9

39.4

344.9

213.1

Miscellaneous equity investment impairment

charge

10.6

123.8

Goodwill impairment charges

729.1

1,288.0

Cumulative effect of accounting change

700.0

Equity in (earnings) losses of unconsolidated

affiliates, net

(14.0)

(15.8)

(12.6)

7.1

0.2

(20.2)

Total Adjusted EBITDA

1,807.0

2,306.9

2,111.3

2,537.5

3,335.1

3,585.4

Adjusted EBITDA as a multiple of

interest expense

6.6

5.7

5.1

5.7

7.7

8.0

InvestorConf_Dec06

Reconciliation of Net Cash Flow from

Operating Activities to Adjusted EBITDA

($ Million)

36 Weeks

Ended

Sept. 9, 2006

2005

2004

2003

2002

2001

Net cash flow from operating activities

1,453.6

1,881.0

2,226.4

1,609.6

2,034.7

2,232.3

Add (subtract):

Income taxes

242.2

287.9

233.7

310.9

660.4

841.1

Interest expense

274.6

402.6

411.2

442.4

430.8

446.9

Deferred income taxes

215.9

29.2

77.9

(64.9)

(68.8)

Net pension expense

(55.1)

(115.6)

(112.9)

(130.9)

(30.3)

36.6

Accrued claims and other liabilities

(49.4)

(44.1)

(118.1)

(52.7)

(11.0)

(18.6)

(loss) gain on property retirements and lease

exit activities

14.0

(13.6)

(20.6)

13.4

(19.3)

34.6

Changes in working capital items

(82.9)

(310.9)

(538.2)

263.0

310.5

86.8

Other

10.0

3.7

0.6

3.9

24.2

(5.5)

Adjusted EBITDA

1,807.0

2,306.9

2,111.3

2,537.5

3,335.1

3,585.4

InvestorConf_Dec06

Reconciliation of Adjusted Diluted

Earnings Per Share

36 Weeks Ended

Sept. 9, 2006

Sept. 10, 2005

2005

2004

Reported earnings per diluted share

1.25

0.86

1.25

Texas store impairment

0.08

Texas store exit activities

0.07

Employee buyout

0.03

0.08

Dominick's store exit activities

0.06

Health and welfare contribution

0.04

Accrual for rent holiday

0.01

Pro-forma stock option expense

(0.10)

Income tax associated with resolution of

certain tax issues

(0.13)

(0.06)

(0.08)

(0.11)

Adjusted earnings per diluted share

1.12

0.91

1.40

1.15

2006

Analysts' consensus estimate earnings

per diluted share

1.72

Income tax associated with the resoulution

of certain tax issues through third quarter

(0.01)

Adjusted consensus estimate of earnings

per diluted share

1.71

*Excludes $318 million of income tax refund and tax benefits in Q4 06, if any

InvestorConf_Dec06

Reconciliation of Gross Margin BP

Change to Gross Margin BP Change

Excluding Fuel and Unusual Items

Basis point increase (decrease) over prior year:

36 Weeks

2007 Guidance

2006 Guidance

Ended

High

Low

High

Low

Sept. 9, 2006

2005

2004

2003

Basis point change in gross margin

(5)

(13)

(17)

(26)

(16)

(65)

(44)

(147)

Fuel

Impact of inventory adjustment

Impact of Vons strike

Basis point change in gross margin,

excluding fuel and unusual items

(26)

(84)

InvestorConf_Dec06

Reconciliation of Operating & Administrative Expense BP

Change to Operating & Administrative Expense BP Change

Excluding Fuel and Unusual Items

Basis point increase (decrease) over prior year:

36 Weeks

2007 Guidance

2006 Guidance

Ended

High

Low

High

Low

Sept. 9, 2006

2005

2004

2003

Basis point change in operating and

administrative expense

(34)

(25)

(97)

(88)

(80)

(53)

(7)

128

Unusual items:

Texas store closures

(29)

Impairment charges (incl. Dominick's)

(30)

Vons strike

(22)

(29)

Labor buyout and health and

welfare contributions

(7)

(9)

Stock option expense

(16)

Fuel

Basis point change in operating and

administrative expense, excluding

fuel and unusual items

(15)

(5)

(40)

(30)

(29)

(59)

InvestorConf_Dec06

High Level Review -

2006 Q3 YTD

ID sales momentum has continued to build

O&A margin X-fuel has improved 29 basis points

Gross margin X-fuel has improved by 17 basis points

Adjusted EPS has grown by 23%*

We received a $318 million tax refund with more refunds expected

to follow

* See website for adjustments

InvestorConf_Dec06

$1.72

$1.25

2005

2006AE

2006 Adjusted Earnings Growth

$1.40

$1.71

2005

2006AE

Excludes $318 Million Refund

Reported EPS

Adjusted EPS

22%

2005 adjusted for unusual items and tax benefits.

2006AE adjusted for Q1-Q3 tax benefits. Does not include Q406 tax benefits, if any. See website for reconciliation.

InvestorConf_Dec06

Non-Fuel ID Sales

3.0%

3.1 -

3.3%¹

10 -

30 BPs

Gross Margin

(10) -

0 BPs

0 -

10 BPs²

10 BPs

(Ex Fuel)

O&A (Ex Fuel)

25 -

35 BPs

30 -

40 BPs²

5 BPs

Free Cash Flow

$400 -

$600

$400 -

$600

Adjusted EPS

$1.55 -

$1.65

$1.65 -

$1.75³

10¢

2006 Investor Guidance

2006

Original

2Q Revised

Guidance

Difference

Provided on Q3 conference call

See website for reconciliation

Excludes $318 million tax refund

InvestorConf_Dec06

2007 Guidance

ID Sales X-Fuel

3.3%

Gross Margin Improvement X-Fuel

15 -

25 bps*

O&A Improvement X-Fuel

15 bps*

Cash Capital Expenditures

$1.7 billion

Free Cash Flow

$400 -

$600 million*

Earnings Per Share

$1.90-

$2.00

Guidance

* See website for reconciliation

InvestorConf_Dec06

Long Term Outlook

ID Sales X-Fuel

3.0 -

4.0%

Operating profit margin X-Fuel

5.5 -

6.0%

Depreciation

2.5%

Annual EPS Growth

12.0 -

15.0%

InvestorConf_Dec06

$1.71

$1.40

$1.15

'04

'05

'06AE

'07G

Safeway Growth Rate -

EPS

Adjusted for Unusual Items*

22%

11 -

17%

Growth

Rate

$1.90 -

$2.00

* 2004 & 2005 adjusted for unusual items and tax benefits. 2006AE adjusted for Q1–Q3 tax benefits, does not

include Q406 tax benefits, if any. See website for reconciliation.

InvestorConf_Dec06

Rollout of Lifestyle Stores

'03

'04

'05

'06E

'07F

'08F

'09F

% of Stores Completed

145

460

760

1,060

1,360

1,660

InvestorConf_Dec06

65%

35%

78%

22%

Current ID Results for Lifestyle Stores

100

1st Yr

2nd Yr

3rd Yr

Store Count

ID Contribution*

Lifestyle

Non-Lifestyle

Lifestyle Sales Change by Year

Adj. for competitive openings

Sales

vs.

Proforma

Base;

Yr3

Prior

year

Yr 2 & Yr 3 excl. grand opening promo period

Data incl

thru wk 44 ‘06

* IDs are based on first 36 weeks of 2006

InvestorConf_Dec06

Lifestyle Store Investments Deliver

Consistently Strong Returns

Returns are strong regardless of size, location or income level

–

Smaller square footage stores provide an equal or better return

than large stores

–

Rural stores deliver a slightly better return than urban stores

–

Stores located in lower income areas deliver returns just under

30%

Remaining store base expected to generate strong sales

increases and investment returns

InvestorConf_Dec06

3.4

3.6

4.1

4.0

3.8

3.7

2.9

3.4

'04

'05

'06E

'07F

'08F

'09F

'10F

'11F

'12F

'13F

'04 -

'13

% of Sales

* Excludes any major new initiatives

Cash Capital Spending

InvestorConf_Dec06

As a Company, Blackhawk Network . . .

Has very low capital requirements

Is not

people intensive

Is expected to contribute $100 million in pre-tax income in 2007

Has an annual growth rate in excess of 100%

See SEC filings for risk factors