Fiscal 2001 and Fiscal 2000 restatements and Fiscal 2002 adjustments
Executive Board. On June 19, 2003, Ahold announced its proposal to nominate Hannu Ryöppönen as Chief Financial
Officer and as a member of Ahold's Corporate Executive Board. Messrs. Moberg and Ryöppönen were appointed to the
Corporate Executive Board by Ahold's shareholders on September 4, 2003. On July 3, 2003, Ahold appointed
Joost Sliepenbeek as Senior Vice President and Controller, effective July 7, 2003. Ahold announced, on August 28, 2003,
its proposal to nominate Peter Wakkie as Chief Corporate Governance Counsel and as a member of Ahold's Corporate
Executive Board. Mr. Wakkie was a partner at De Brauw and resigned from the partnership upon commencing his
employment with Ahold on October 15, 2003. On October 14, 2003, Ahold appointed Lawrence S. Benjamin as
Chief Executive Officer at USF, effective November 1, 2003.
Ahold is continuing to cooperate with investigations by law enforcement and regulatory authorities, including the
U.S. Department of Justice, the SEC and Dutch governmental and regulatory authorities.
In connection with the findings of the investigations referred to above, and the consequent remedial accounting actions
taken by Ahold management, we have restated our financial position as per December 30, 2001 and results for fiscal
2001 and 2000 under both Dutch GAAP and US GAAP. The adjustments are material, both quantitatively and
qualitatively, to our fiscal 2000 opening retained earnings and our financial position and results of operations for fiscal
2001 and fiscal 2000.
In addition, our financial statements for fiscal 2002 reflect correcting adjustments, of which some are related to the
findings of the investigations referred to above.
As part of the restatements, we also have adjusted our comparative financial position as of fiscal year-end 2001 and
results for fiscal 2001 and fiscal 2000 for certain reclassifications and changes in our accounting principles with respect
to pensions, revaluations of properties, and restructuring provisions as described in Note 2 to our financial statements.
The restated financial position as per December 30, 2001 and results for fiscal 2001 and 2000 and the correcting
adjustments reflected in the fiscal 2002 financial position reflect adjustments that correct accounting irregularities and
other errors previously made in the application of Dutch GAAP and US GAAP. These adjustments relate to:
- the deconsolidation of the joint venture companies not controlled by us;
- improper or premature recognition of vendor allowances;
- misapplication of accounting principles and misuse of facts relating to acquisition accounting;
- improper accounting for certain reserves, allowances and provisions;
- improper accounting for certain real estate transactions; and
- certain other accounting issues and items arising as a result of the misapplication of or errors in the application of Dutch
GAAP and US GAAP,
as well as other adjustments identified during the audit process. The principal adjustments are discussed in more detail
As reflected below and in Note 3 to our financial statements, correcting adjustments and changes in accounting principles
were made to net income for fiscal 2001 and fiscal 2000 in an aggregate amount of EUR 363 million and EUR 196
million, respectively, of which 59% and 53%, respectively, related to improper accounting for vendor allowances.
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