Notes to the consolidated balance sheet
and statement of earnings of Koninklijke Ahold nv
General Comparability of consolidated statement of earnings
As from October 10, 1988, the real estate activities are no longer included in the consolidation.
Consequently, as from the fourth quarter of 1988, the results of these activities are included in 'Income
from unconsolidated subsidiaries and affiliates'. To facilitate comparison with the results reported for
1989, corresponding figures for fiscal 1988 are shown on the consolidated statement of earnings.
Schuitema nv
In the course of 1988 Koninklijke Ahold nv acquired a 55% interest in Schuitema nv, which interest was
increased to 63% in 1989.
In August 1988, the former owners of a 45% interest in Schuitema nv sold and transferred their shares to
a third party nominated by Schuitema nv. Koninklijke Ahold nv in turn bought the relevant block of
shares from this third party. The validity of this transaction between the former owners and the third
party nominated by Schuitema nv was disputed in legal proceedings. On December 21, 1989, the Court
ofjustice of Amsterdam affirmed on appeal that the disputed transaction was legally valid.
The interest in Schuitema nv has not been included in the consolidation. On the balance sheet 63% of
the stated net asset value of this company is included under 'Investment in unconsolidated subsidiaries
and affiliates', whereas Ahold's share in the estimated results of Schuitema nv has been included in the
statement of earnings under 'Income from unconsolidated subsidiaries and affiliates'.
Cross-participations
A strengthened cooperation between Koninklijke Ahold nv, Argyll Group pic (United Kingdom) and
Groupe Casino (France) has resulted in the decision to acquire interests in each other's share capital of
equal value based on market prices at the time of the transaction.
On November 2, 1989, Koninklijke Ahold nv issued 879,987 common shares to Argyll Group pic and
Groupe Casino each, at that time amounting to a total of 7.6% of its subscribed common stock. On the
same date, Koninklijke Ahold nv acquired a 1.6% interest in the outstanding share capital of the
Argyll Group pic and 4% in that of Groupe Casino.
On the balance sheet these cross-participations are stated at historic cost, unless a lasting depreciation
should manifest itself. Dividends received or receivable are included as income from unconsolidated
subsidiaries and affiliates.
AC Restaurants sold
In the fourth quarter of 1989 AC Restaurants bv and AC Restaurants België nv were disposed of. Accord
ingly, sales and results of these activities have been included in the consolidated statement of earnings
through October 8, 1989.
Stichting Ahold Continuïteit
On August 28, 1989, the Stichting Ahold Continuïteit acquired 107,130 Ahold preferred shares, each of
Dfl 1,000 par value, and paid in 25%. These shares were placed with the Stichting through (partially)
exercising an option granted to it by agreement of March 7, 1989, by the Group. Meanwhile, proceedings
have been instituted with the District Court of Haarlem, disputing the validity of the option agreement
and of the ensuing placement of preferred shares.
Consolidated financial statements
All companies with a direct or indirect Ahold interest of more than 50% have been included in the
consolidation, other than Schuitema nv and the real estate companies. The share of third-party stockhold
ers in equity and earnings has been entered separately in the balance sheet and statement of earnings.
The combined balance sheet, statement of earnings of the real estate companies and notes are presented
in the notes to Ahold's consolidated financial statements.
The available financial information on Schuitema nv may be found on page 56 under the caption 'Addi
tional information'.
The subsidiaries are listed individually on page 34.
6,
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