and leaseback transactions. As discussed in "Strategic Outlook - Divestments" in this section, during late 2002 and in
2003, we announced our intention to sell various subsidiaries and stores. In fiscal 2003, we completed the sales of our
Indonesian and Malayasian operations, Santa Isabel and Supermercados in Chile and Paraguay, and De Tuinen in
The Netherlands for total net proceeds to us in the amount of EUR 124 million. In addition, we sold De Walvis and Jamin
in The Netherlands and Golden Gallon in the United States. For a more detailed discussion of our divestments, please see
our financial statements.
Historically, the majority of our capital expenditures incurred were for new stores and store improvements, distribution
centers, computer hardware and other assets. In fiscal 2002, fiscal 2001 and fiscal 2000, capital expenditures were
EUR 2.2 billion, EUR 2.5 billion and EUR 1.9 billion, respectively. In fiscal 2003, we have been scrutinizing and
restricting capital expenditures in order to strengthen our cash flow. We expect to record in fiscal 2003 capital
expenditures of between EUR 1.4 billion and EUR 1.7 billion of which we expect approximately 68% will be used in retail
trade in the United States, 25% will be used in retail trade in Europe and approximately 7% will be used in food service
in the United States. We expect to use these capital expenditures principally to open new stores and to remodel existing
stores. Of these expected capital expenditures EUR 307 million was committed as of fiscal year-end 2002. We expect that
these capital expenditures will be financed primarily from cash generated from operations.
Cash flows from financing activities
Our financing activities generated cash outflows of EUR 504 million in fiscal 2002, compared to cash inflows of EUR 3.1
billion in fiscal 2001 and EUR 7.4 billion in fiscal 2000, largely reflecting lower financing requirements due to a
reduction in the number and value of acquisitions in fiscal 2002 compared to prior fiscal years. Additionally, the cash
component of dividends paid on common shares in fiscal 2002 increased by EUR 339 million. In addition to debt issued
during fiscal 2002, fiscal 2001 and fiscal 2000 under our EMTN program of EUR 40 million, EUR 3.1 billion and
EUR 1.8 billion, respectively, in fiscal 2000, we raised USD 700 million from the issuance of 8 V4% bonds by Ahold
Finance USA and EUR 920 million from our issuance of 4% convertible subordinated notes. In fiscal 2001 and fiscal
2000, we raised approximately EUR 2.5 billion and EUR 3.1 billion, respectively, in net proceeds from equity offerings.
Our total debt was approximately EUR 12.9 billion, EUR 13.7 billion and EUR 11.6 billion at fiscal year-end 2002, fiscal
year-end 2001 and fiscal year-end 2000, respectively, as set forth in the table below:
Fiscal 2002
Fiscal 2001
Fiscal 2000
(in EUR millions)
(restated)
(restated)
Long-term debt (including the current portion)
9,586
10,668
8,274
Capitalized lease commitments (including the current portion)
2,323
2,475
1,984
Short-term debt
998
586
1,321
Total debt
12,907
13,729
11,579
Long-term debt consists principally of notes and bonds issued by us and our subsidiaries in the capital markets. Short
term debt consists of debt obligations maturing within one year of their incurrence, and includes our credit facilities.
In addition to the above debt, we have various local committed and uncommitted short-term credit lines.
Between fiscal 2001 and fiscal 2002, our long-term debt, including the current portion, decreased by EUR 1.1 billion
from EUR 10.7 billion to EUR 9.6 billion. Of this decrease, EUR 1.0 billion was attributable to changes in exchange
rates, principally between the US dollar and the Euro, and the payment of EUR 676 million of maturing loans. In addition,
we assumed EUR 221 million in debt from acquisitions and issued EUR 393 million of other long-term debt.
At fiscal year-end 2002, we had outstanding long-term debt of EUR 9.6 billion. The maturity schedule of this debt
includes repayments due of EUR 1.3 billion in fiscal 2003, and EUR 8.3 billion between fiscal 2004 and fiscal 2031.
The detailed maturity schedule is as follows:
Payments due by fiscal year
(in EUR millions) 2003 2004 2005 2006 2007 2008+
Long-term debt (including the current portion)""21 1,273 56 2,530 356 452 4,919
(1) This table does not include borrowings under our 2002 Credit Facility, which were categorized as short-term debt. The 2002 Credit Facility has subsequently been
replaced by the 2003 Credit Facility, which expires in February 2004. For amounts outstanding under the 2003 Credit Facility, please see "Credit Facilities" below.
(2) For debt which we have repaid during fiscal 2003, please see "Other Borrowings" below.
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