4 Discontinued operations
110
Ahold Annual Report 2003
Financial Statements
DAIH: In July 2001, Ahold acquired an additional 290 shares in DAIH from its joint venture partner VRH
for approximately USD 75 (EUR 86), increasing its percentage in DAIH to 55.9%. The acquisition resulted
in goodwill of USD 70 (EUR 80).
Bomprego: In December 2001, Ahold completed a public tender offer to delist Bomprego and to acquire the
preference shares which were still outstanding. Total consideration paid for these preference shares amounted
to EUR 67. This resulted in goodwill of EUR 45.
Pro forma financial data (unaudited)
The following unaudited pro forma financial information presents the combined results of Ahold, DAIH and Alliant as
if the acquisitions had occurred as of the beginning of 2001 for DAIH, after applying certain adjustments, including
amortization of goodwill, interest charges and other related transactions. To calculate earnings per share, the Company
has included shares issued in the September 2001 equity offering, used to finance the acquisition of Alliant:
Pro forma statement of operations data
2002
2001
(unaudited)
(unaudited)
Net sales
63,299
61,034
Income before interest and taxes
262
2,060
Net income (loss) after preferred dividends
(1,369)
440
Net income (loss) per common share - basic
(1.36)
0.47
Net income (loss) per common share - diluted
(1.36)
0.46
The pro forma financial information does not necessarily reflect the results of operations that would have occurred
had Ahold, DAIH and Alliant constituted a consolidated entity during the periods presented, based on the historical
financial information for these years. The purchase price paid for all transactions reflects future growth expectations
and is not based on historical data. The unaudited pro forma earnings data do not reflect the anticipated synergies
from actual integration into Ahold and stand-alone improvements in operating results. The combined pro forma
impact of the remaining acquisitions would not be significantly different from the historical information.
In November 2002, the Company announced its intention to divest its non-core businesses in order to focus on
growth in the profitable core business, to reduce debt and to rationalize its portfolio of activities. Further, the
announcement stated that the Company would consistently scrutinize under-performing operations with a view
towards improving their performance or divesting them in an effort to focus on its core business and enhance its
position in markets where the Company has achieved a leadership position, or believes it can achieve such a
position, based on net sales.
Retail trade - South America
In February 2003, Ahold announced its intention to divest its Chilean operations. In April 2003, the Company
announced its intention to divest its operations in the other four South American countries - Brazil, Argentina, Peru
and Paraguay.
The Company completed the sale of its operations in Chile, Paraguay and Peru in July 2003, September 2003
and December 2003, respectively, as described in Note 3.
Since November 2003, the Company was actively seeking a buyer for its operations in Brazil and Argentina. In
March 2004, the Company announced the sale of its Brazilian operations Bomprego and Hipercard to Wal-Mart and
Unibanco, respectively. The Company expects to complete the sale of its remaining activities in Brazil, G. Barbosa,
by the end of the year 2004.
In March 2004, the Company announced that it reached an agreement with Cencosud on the sale of its
operations in Argentina. Closing of the transaction is expected to occur by the end of 2004 and is subject to the
fulfillment of certain conditions, including obtaining local anti-trust approval and the absence of any legal obstacles
to consummate the sale. Certain Argentine and Uruguayan injunctions and attachments currently are in effect that
may delay or prevent the closing of this transaction.
