Information for shareholders
Investor relations
Dividend policy
Stock exchange listings
Despite record earnings and very strong
sales growth over 1999, shares in Royal
Ahold declined 6.7% to close the year at
Euro 29.39 compared to Euro 31.49 at
the end of 1998. The number of shares
outstanding as at January 2, 2000 was
approximately 646 million, compared to
628 million at year-end 1998. The increase
was due primarily to the choice of the share
dividend option by most of the shareholders
for dividend payment in shares in lieu of
a cash dividend and also the exercise of
stock options. Over the five year period
from 1995 to 1999, Ahold's shares have
risen 197%, with earnings per share over
the same period rising 117%. Ahold's
market capitalization has increased to
approximately Euro 19 billion by year-end
1999, from Euro 3.7 billion in 1995.
Ahold continues to focus on providing its
stakeholders with all relevant financial
and non-financial information in order
to create wider understanding about the
company and the industry in which it
operates. In terms of credibility, clarity,
openness and timeliness of investor
relations information and service, Ahold
was The Netherlands' best performing
company, as reflected in the Bank
Labouchere Investor Relations Award
for 1999. Ahold will continue to strive
for excellence in this field. Ahold was
the first sizeable listed company in
The Netherlands to provide all interested
parties live access to its analyst conference
calls via the internet. The improved web
site, www.ahold.com, was well received
by both institutional and private investors.
Capital structure
Ahold's equity as at January 2, 2000,
amounted to Euro 2.1 billion. Its compo
nents are shown in the graph 'Capital
structure' on the next page. In 1996
and 1998 a total of 144 million financing
preferred shares had been issued and
remain outstanding. The voting rights
for this class of shares have been placed
in a foundation, Stichting Administratie
kantoor Preferente Financierings
Aandelen Ahold. The board of the found
ation consists of five members: one
representing common shareholders and
one representing holders of the depositary
receipts with the remainder independent
directors.
Convertible subordinated notes due in
2003 amount to Euro 678.4 million as at
January 2, 2000, and will be convertible
into common shares of Ahold at a current
conversion price of Euro 28.49. As at
year-end 1999, their conversion would
have increased the number of common
shares outstanding by 23.8 million while
reducing annual interest paid by Euro
20.3 million. Holders of these notes
can elect to convert them into common
shares at any time prior to September
25, 2003, while Ahold has the right to
convert the notes into common shares
as at September 30, 2001.
American Depositary Receipts
Royal Ahold's ADR program is adminis
tered by The Bank of New York, Investor
Relations, P.O. Box 11258, Church
Street Station, New York, NY 10286-
1258, USA. The toll free telephone
number is: +1 800 649-4134.
E-mail: shareowner-svcs@bankofny.com
website: www.ADRBNY.com
In addition to a yearly dividend, the Corporate
Executive Board has customarily declared an
interim dividend which, subject to approval by
the Supervisory Board, is payable in September.
The regular yearly dividend must be approved at
the Annual General Meeting of Shareholders,
with the final portion of the total yearly dividend
payable shortly thereafter. Historically, share
holders have had the option to elect either a
cash dividend (the 'cash dividend option') or a
share dividend (the 'share dividend option').
The common shares of Koninklijke Ahold N.V. are
listed on the Amsterdam Exchanges, the Swiss
Exchange (Zurich) and on the New York Stock
Exchange where they trade in the form of
American Depositary Shares and are evidenced
by sponsored American Depositary Receipts
("ADRs"). The ADRs trade under the symbol
'AHO' and represent one common share of
Royal Ahold.
Ahold's 3% Convertible Subordinated Notes
due 2003 are also listed on the Amsterdam
Exchanges.
78 Royal Ahold Annual Report 1999
