Report of the Supervisory Board
e hereby submit for your approval the 1989 financial statements as drawn up
by the Corporate Executive Board and adopted by us. At our request these
financial statements have been audited by the Nederlandse Accountants
Maatschap de Tombe/Touche Ross Nederland; the auditor's report is to be found under
Additional Information' on page 57.
In consultation with the Corporate Executive Board we have decided to add
Dfl 113,554,000 to the extra reserve which will then amount to Dfl 448,560,000.
Also in consultation with the Corporate Executive Board, we propose for the year
1989 a dividend of Dfl 1.85 and $0.40 per common share of Dfl 5 par value. Of these
amounts Dfl 0.55 and $0.10 have already been made payable as an interim dividend.
The final dividend of Dfl 1.30 and $0.30 will (at each stockholder's option), like the
interim dividend, be paid in full or in part in stock, chargeable to the tax-exempt
premium reserve or the extra reserve. The size and composition of the optional stock
dividend will be announced on April 25, 1990, after closing of the Amsterdam Stock
Exchange.
For 1988, the dividend paid per share amounted to Dfl 1.58 and $0.25, including an
interim dividend of Dfl 0.49 and $0.05; the final dividend of Dfl 1.09 and $0.20 could at
each stockholder's option be paid in full or in part in stock chargeable to the tax-exempt
premium reserve or the extra reserve.
On the issued preferred stock a primary dividend of 10.58% will be paid pursuant to
the Articles of Incorporation (1988: 6.44%).
On September 1, 1989, Mr. A. Heijn retired after having worked with the Company for
40 years, 27 of which in the capacity of President of the Corporate Executive Board. It
was under this management that in the past few decades Ahold developed into one of
the leaders in its field. Ahold owes Mr. Heijn a great debt of gratitude for all he has done
for the Company. The Supervisory Board is pleased that Ahold can continue to benefit
from Mr. Heijn's vast international knowledge and experience through his appointment
as a member of our Board as of January 1, 1990.
By rotation, Mr. J.H. Choufoer and Mr. J. Kreiken are due to retire from the Supervisory
Board. Mr. Kreiken has announced that he does not wish to be renominated on May 2,
1990. By then, Mr. Kreiken will have been a member of our Board for 21 years, includ
ing a period as our chairman. His extensive managerial expertise, his devotion to Ahold
and his sharp wit have been of great value through the many corporate developments of
the past decades, and we owe him a great debt of gratitude.
We have decided to reappoint Mr. Choufoer as member of the Board, as from May 2,
1990; he will also continue to serve as chairman of our Board. This appointment was
formalized after giving the Committee of Stockholders and the Central Employees
Council the opportunity to offer their recommendations for filling these vacancies, and
ascertaining that these bodies do not object to this reappointment.
During the year under review the Supervisory Board was regularly informed of the state
of affairs and it met periodically with the Corporate Executive Board. We held meetings
to review such routine matters as quarterly results, development of the financial posi
tion, acquisitions and the internal social annual report. In addition to strategic aspects,
we discussed the shareholding of Asko Deutsche Kaufhaus AG and the structure of the
European cooperations.
As is customary, members of our Board also attended the Ahold consultative meetings of
the Central Employees Council at which the topics under discussion included the finan
cial statements, the semi-annual financial statements and the social report.
Supervisory Board
Zaandam, March 22, 1990
Supervisory Board:
(I to r) AJ. Kranendonk,
N. Rempt-Halmmans de Jongh,
J.H. Choufoer,
A. Spaander,
RJ. Nelissen,
A. Heijn,
R.F. Meyer and
J.F.A. de Soet
(J. Kreiken is absent)
On September 1, forty
years to the day after
joining the Company,
Albert Heijn stepped
down as Ahold Presi
dent, a post he had
held since 1962. Under
his leadership, sales
grew from Dfl 350 mil
lion to Dfl 17.7 billion.
Albert Hei in's departure
signified the end of an
era. During the farewell
party in Noordwijk he
was honored by his
countrymen and his
neighbors alike, being
named 'Commandeur
in de Orde van Oranje
Nassau' as well as an
honorary citizen of
Zaanstad.
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