00 Ahold ANNUAL REPORT 2002 67
BOARD GOVERNANCE HIGHLIGHTS OPERATING REVIEW FINANCIAL INVESTOR REL AT IONS
- Fiscal 2001
Operating income decreased by EUR 2 million, or 2.6%, to EUR 75 million in fiscal 2001 compared to fiscal 2000.
Share in income (loss) of joint ventures and equity investees
As discussed above, in addition to our consolidated subsidiaries, we also have interests in retail trade operations through
our joint ventures. The income or losses generated by our joint ventures are included in our share in income (loss) of joint
ventures and equity investees. As of fiscal year-end 2002, we had interests in three significant entities that we accounted
for as unconsolidated joint ventures. These three joint ventures are ICA, JMR and Paiz Ahold. Previously we consolidated
our interests in ICA, JMR and Paiz Ahold. As discussed under "Restatements, Adjustments and Remedial Actions" above,
our consolidated financial position as per December 30, 2001 and results for fiscal 2001 and 2000 have been restated to
change our accounting for our interests in ICA and JMR to account for these joint ventures using the equity method of
accounting. Paiz Ahold is a 50/50 joint venture between Ahold and the Paiz family that was formed in December 1999. In
January 2002, Paiz Ahold joined with CSU International to form CARHCO. Paiz Ahold owns a 66 2/3% interest in CARHCO.
Our restated financial position also reflect adjustments to deconsolidate Paiz Ahold during the period from its formation in
December 1999 until the formation of CARHCO in January 2002. We do not consolidate our interest in CARHCO.
Previously, we consolidated our interests in two other joint ventures: Bomprepo and DAIH. Our consolidated financial
position as per December 30, 2001 and results for fiscal 2001 and 2000 have been restated to account for these entities
as unconsolidated joint ventures for the periods prior to our obtaining a majority of the voting power. Bomprepo was
accounted for using the equity method of accounting until June 2000 and is consolidated for the periods after July 2000,
when we acquired a majority of the voting power. In the second quarter of fiscal 2002, we began consolidating Disco in
our financial statements as a result of our acquiring directly shares of Disco in consideration for capitalizing intercompany
loans we had directly made to Disco. DAIH was accounted for using the equity method of accounting until June 2002.
DAIH and Santa Isabel were consolidated as of July 2002 in connection with our purchase of the shares of capital stock of
DAIH from our former joint venture partner VRH. For additional information about the transaction with VRH, please see our
financial statements. For additional information about the restatement of our financial statements as a result of these
changes in consolidation, please see our financial statements.
Significant unconsolidated joint ventures and equity investees
Ahold's ownership
interest as of
Date of
Consolidated
fiscal year-end
formation
since
2002
ICA
May 2000
50%
Jan. 1992
49%
Paiz Ahold (1)
Dec. 1999
50%
DAIH (2)
Jan. 1998
July 2002
100%
Bomprego
Fiscal 1996
July 2000
100%
(1) In January 2002, Paiz Ahold formed CARHCO, a new joint venture, with CSU International. Paiz Ahold owns a 66 2/3% interest in CARHCO.
(2) As of fiscal year-end 2002, DAIH was the holding company of Disco and Santa Isabel. Disco was consolidated since the second quarter of fiscal 2002.
The following table shows our share in income (loss) of joint ventures and equity investees:
Fiscal 2002 Fiscal 2001 Fiscal 2000
EUR Change EUR Change EUR
(in EUR millions, except percentages) (restated) (restated)
ICA
61
64
48
JMR
35
30
20
Paiz Ahold
10
13
13
DAIH
(126)
(296)
(5)
Others
(18)
(3)
2
Total share in income (loss) of joint ventures and equity investees
(38)
80.2
(192)
(346.2)
78
