Outlook
In 1990, Ahold sales will continue to grow, both in The Netherlands and in the United
States. Operating results will increase as well, especially in view of the upward trend
in the United States.
In addition, we expect income from unconsolidated subsidiaries and affiliates to
increase, whereas net interest expense should cease to rise. Assuming that the exchange
rate of the dollar will show limited fluctuations, Ahold anticipates net earnings will
continue to rise in 1990, though less spectacularly than in 1989, a highly succesful year.
Investments in tangible fixed assets in 1990 will reach about Dfl 700 million, of which
Dfl 325 will be expended in The Netherlands and Dfl 375 million in the United States.
These investments will chiefly involve retailing activities, and apart from the purchase
of one third of the FNS shares not yet in our possession they do not encompass any
other acquisitions.
I he debt/equity ratio should show further improvement in 1990, while the other
balance sheet ratios will remain satisfactory.
Continued growth in sales volume and the addition of service departments to our super
markets will result in a further increase of the number of employees, both in The Nether
lands and the United States.
Dividend proposal
proposal will be made to the General Meeting of Stockholders to declare a cash
dividend of Dfl 1.85 and $0.40 per common share of Dfl 5 par value (1988:
Dfl 1.58 and $0.25, adjusted). Of these amounts Dfl 0.55 and $0.10 have already
been made payable as an interim dividend.
As with the interim dividend, stockholders may elect to receive the final dividend in
cash or in stock, at their discretion. The size and composition of the optional stock divi
dend will be announced on April 25, 1990, after closing of the Amsterdam Stock
Exchange.
Corporate Executive Board
Zaandam, March 22, 1990
26
