Chronology
Ahold has before it the challenging tasks of rebuilding the company's value and reputation and
restoring the confidence of shareholders. To help shareholders understand the issues that have
faced the company these past months, as well as the manner in which they were addressed,
we provide a chronology of events since February 24, 2003:
On February24, we announced that our net earnings and earnings per share would be significantly lower
than previously indicated for fiscal 2002 and that we would be restating our financial statements for fiscal
2000 and 2001. We indicated that these restatements primarily related to overstatements of income
related to vendor allowance programs at our subsidiary U.S. Foodservice. We also announced ongoing
forensic investigations into the accounting irregularities at U.S. Foodservice and the legality and accounting
treatment of certain questionable transactions at our Argentine subsidiary, Disco. In addition, the company
announced that certain joint ventures would be deconsolidated based on information that had not previously
been made available to Ahold's auditors. In view of these developments, we also announced that Cees van
der Hoeven and Michiel Meurs would resign and that Ahold's auditors had decided to suspend the 2002
fiscal year audit pending completion of the investigations. Lastly, we announced that we had obtained a
commitment for a new credit facility, totaling EUR 2.65 billion.
On March 3, Ahold entered into the new credit facility, provided by ABN Amro, Goldman Sachs, ING,
JP Morgan and Rabobank. The facility provides for aggregate borrowings of EUR 2.65 billion, of which
USD 1.285 billion and EUR 600 million were available immediately. In addition, banks were committed to
providing an additional EUR 450 million backup facility to support existing USD 850 million securitization
programs.
On March 11, Dudley Eustace was appointed as interim Chief Financial Officer, effective immediately.
On May2, Ahold extended the U.S. Foodservice securitization programs by another sixty days. We also
announced that Deloitte Touche had resumed their audit at Albert Heijn and Stop Shop.
On the same day, the proposal to nominate Anders Moberg as President Chief Executive Officer of the
company was announced; he assumed the position of Acting CEO on May 5.
On May 8, forensic accounting work being performed by PricewaterhouseCoopers (PwC) as part of our
internal investigation of subsidiary U.S. Foodservice was announced to be substantially complete, finding
a total overstatement of pre-tax earnings of approximately USD 880 million. The legal internal investigation
continued.
On May 13, the Ahold shareholders' meeting extended the deadline for completion of the 2002 annual
accounts.
On this same day, Jim Miller, then President and Chief Executive Officer of U.S. Foodservice and a member
of the Corporate Executive Board of Ahold, resigned from these positions. This resignation was followed
shortly thereafter by Michael Resnick, Chief Financial Officer of U.S. Foodservice, and David Abramson,
Executive Vice President and General Counsel of U.S. Foodservice, resigning from their positions. All three
ceased to be employed by U.S. Foodservice effective October 1, 2003.
On May26, Ahold obtained a bank extension of the deadline for delivery of audited, consolidated accounts
for 2002. This was necessary because, given the thoroughness required, it was determined that it would
take the company longer than anticipated to complete the accounts. The company announced an
estimated additional USD 29 million reduction of pre-tax earnings, primarily at Tops Markets in the U.S.,
as a result of internal investigations.
On June 2, Ahold announced that on May 30, 2003, it provided its bank syndicate with the audited 2002
financial report for Albert Heijn.
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