Report from the Supervisory Board
Rebuilding leadership
Reporting, investigating and strengthening controls
10
2003 has been the most difficult year in the company’s history. Ahold underwent a crisis of extreme
proportions. We announced accounting irregularities, errors and other issues at several of our companies,
as well as significant internal control weaknesses that extend not only to 2002, the year on which this
annual report is intended to focus, but also to prior years. We wish to add our sincere apologies to all
stakeholders of Ahold, including shareholders, customers and associates, who have experienced a great
deal of disappointment and concern throughout this period.
Following the announcement on February 24, 2003, the Supervisory Board took charge of the company’s affairs. Our
Chairman, Henny de Ruiter, steered Ahold, together with the members of the Corporate Executive Board, through the
initial difficult phase, including the securing of a new credit facility to stabilize the company’s financial situation. After
the nomination of Anders Moberg as CEO in May 2003, the Supervisory Board has continued to oversee the transition of
Ahold’s business to a more stable environment. We would like to describe the role of the Supervisory Board during this
turbulent time, and the steps taken to begin to repair the damage that was done to Ahold.
Subsequent to the resignation of Ahold’s CEO and CFO, Mr. De Ruiter was immediately designated to be responsible for
the daily supervision of the conduct of the Corporate Executive Board and the business affairs of the company. Dudley
Eustace was appointed interim Chief Financial Officer on March 11, charged with the task of stabilizing the financial
fundamentals of Ahold. We are grateful to Mr. Eustace for taking on this assignment and for his excellent performance in
working with our banking syndicate to ensure the company’s continued access to sufficient liquidity.
Meanwhile, the Supervisory Board undertook an exhaustive search for new permanent company leadership. The Board
worked with specialists in executive appointments and compensation to find the world class executives required to lead
the company forward.
On May 2, we announced our proposal to nominate Anders Moberg as President and Chief Executive Officer of the
company. The next month, on June 19, Hannu Ryöppönen accepted the position of Chief Financial Officer. Both were
appointed to the Corporate Executive Board at the General Meeting of Shareholders on September 4. Mr. Moberg has
a long and accomplished career in international retailing, with a focus on customer needs and product innovation.
Mr. Ryöppönen brings to Ahold considerable expertise and experience in international finance. We are delighted to
welcome them both to Ahold.
On August 28, 2003 the Supervisory Board announced its proposal to nominate Peter Wakkie to the newly created position
of Chief Corporate Governance Counsel and member of the Corporate Executive Board. He assumed his position at Ahold
on October 15, 2003. This new position emphasizes the great importance Ahold attaches to an excellent relationship with
our shareholders and all other stakeholders. Mr. Wakkie is a leading expert in the Netherlands on corporate governance
with a long-standing reputation as a talented negotiator and highly competent legal corporate advisor. We are very happy
to have him on board.
We are confident that the new composition of the Corporate Executive Board provides a strong combination of experience
and skills to successfully manage the company.
We also commend our operating company and joint venture leadership for their extremely professional performance during
this tremendously difficult year.
Ahold moved swiftly to alert the regulatory authorities in the United States and the Netherlands of the issues announced
on February 24. In addition, the Audit Committee of the Supervisory Board initiated thorough and independent, internal
forensic accounting and legal investigations at several of our operating companies. At every step over the ensuing months
of these investigations, Ahold’s associates worked closely with the investigators and fully cooperated with the regulators.
