Stabilizing our financial situation
A strengthened Corporate Executive Board and other Management
Composition of the Corporate Executive Board
GO Ahold ANNUAL REPORT 2002 5
BOARD GOVERNANCE HIGHLIGHTS OPERATING REVIEW FINANCIAL INVESTOR REL AT IONS
Of pressing concern has been the financial stability of the company. We are grateful for the confidence expressed by our
syndicate of banks in providing a new credit facility on March 3, 2003 for credit of up to EUR 600 million and USD 2.2
billion. The efforts of the Supervisory Board, in particular of its chairman Henny de Ruiter, were instrumental in obtaining
this new line of credit to replace an existing USD 2 billion facility. The new credit facility provided additional liquidity to
meet our short-term financial responsibilities.
Under the direction and leadership of Dudley Eustace, appointed interim Chief Financial Officer on March 11, 2003, a
rigorous program to reduce our overall debt level has also begun and will be carried forward by our new CFO, Hannu
Ryöppönen. Capital expenditure and working capital are being closely scrutinized and the divestment of non-core and
underperforming assets is well underway.
For example, significant reductions in capital expenditure, through postponing or cancelling several planned initiatives that
involve discretionary capital expenditures, are already having a positive impact on cash flow. Tighter management of working
capital, and closer attention to receivables, payables and inventories both in Europe and the U.S. are also helping to
strengthen our cash position.
Our divestment program is moving forward as well. On April 3, we announced our intention to exit South America. In April
and May of 2003, respectively, we announced that we had reached agreements for the sale of our Indonesian and Malaysian
operations. These were finalized in the third quarter of 2003. In May, we also divested our Dutch natural product store
chain De Tuinen, and in June, our Dutch candy store chain, Jamin. In July 2003, we announced the sale of our Santa
Isabel chain in Chile. In August 2003, we reached agreement to sell Golden Gallon, our fuel and merchandise convenience
store operation in the southeastern United States. The completion of the transaction took place in October.
On September 24, we announced the completion of the sale of our Paraguayan supermarket operation.
The composition of the Corporate Executive Board has changed significantly since our last report, with several new
members joining us during the period after February 24. As mentioned, Dudley Eustace joined Ahold to serve as interim
Chief Financial Officer starting March 11. He was appointed a member of the Corporate Executive Board at the General
Meeting of Shareholders held on May 13. On May 2, I accepted the position of Chief Executive Officer and on June 19,
we welcomed Hannu Ryöppönen as Acting Chief Financial Officer. We were both appointed to the Corporate Executive
Board at the General Meeting of Shareholders on September 4. On August 28, Ahold announced its proposal to nominate
Peter Wakkie to the Corporate Executive Board in the newly created position of Chief Corporate Governance Counsel.
Following the resignation of Jim Miller, former President and CEO of U.S. Foodservice and former member of the Corporate
Executive Board, on May 13, Robert G. Tobin, a member of Ahold's Supervisory Board, was designated to serve as interim
Chief Executive Officer of U.S. Foodservice.
On October 14, 2003, the Corporate Executive Board announced the appointment of Lawrence S. Benjamin as Chief
Executive Officer at U.S. Foodservice.
Anders Moberg Joined Ahold in 2003.
Hannu Ryöppönen Joined Ahold in 2003.
Jan Andreae Joined Ahold in 1979.
Board member since 1997.
Dudley Eustace Joined Ahold on an interim basis
in 2003.
William Grize Joined Stop Shop in 1967.
Board member since 2001.
Theo de Raad Joined Ahold in 2001.
