11
Note 28
Financial statements - Notes to the consolidated financial statements
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28 CUMULATIVE PREFERRED FINANCING SHARES
2006
182
2007
176
2008
172
2009
168
2010
156
Thereafter
1,753
Total future minimum finance lease payments
2,607
Estimated executory costs
Interest portion
(1,245)
Present value of net minimum finance lease payments
1,362
Current portion
(64)
Non-current portion of finance lease liabilities
1,298
Number
of shares
Share
(x 1,000)
capital
Issued cumulative preferred financing shares
369,217
92
Unissued cumulative preferred financing shares
130,783
33
Authorized cumulative preferred financing shares (EUR 0.25 par value each)
500,000
125
Paid-in capital issued shares
92
Additional paid-in capital
574
Balance as of January 1, 2006 and January 2, 2005
666
The cumulative preferred financing shares were issued in four tranches. Dividends are paid on each cumulative preferred
financing share at a percentage (the "Financing Dividend Percentage") based on the average effective yield on Dutch state
loans with a remaining life of nine to ten years and determined at the time that the shares were issued. The Financing Dividend
Percentage is fixed for a period of ten years at a rate of 7.37% per year for the shares issued in June 1996, 5.18% per year for
the shares issued in August 1998, 6.47% per year for the shares issued in October 2000 and 7.33% per year for the shares
issued in December 2003. The nominal value plus additional paid-in capital per tranche are EUR 113 (June 1996 tranche),
EUR 73 (August 1998 tranche), EUR 404 (October 2000 tranche) and EUR 76 (December 2003 tranche), in aggregate
EUR 666. When a period of 10 years has elapsed after the issue date of a tranche, and every ten years thereafter (the
"Reset date"), the Financing Dividend Percentage is reset. The Company and the holders of (depositary receipts of) cumulative
preferred financing shares have agreed that the rates are adjusted as of March 4, 2006 until ten years from the date of issue to
7.17% per year for the shares issued in June 1996, 4.98% per year for the shares issued in August 1998 and 6.27% per year
for the shares issued in October 2000.
In 2004 the holders of depositary receipts ("Depositary receipts") representing Ahold's outstanding cumulative preferred
financing shares, agreed to reduce the total number of votes that can be exercised by these shares from approximately 369
million to approximately 100 million. Consequently, the cumulative preferred financing shares' part of the total vote (expressed
as the sum of the outstanding cumulative preferred financing shares plus the common shares) decreased from approximately
19% to approximately 6%. The number of votes that the cumulative preferred financing shares represent was for this purpose
determined on the basis of the nominal value plus the additional paid-in capital of the cumulative preferred financing shares
and Ahold's common share price on January 30, 2004 (EUR 6.53). The reduction of voting rights of the cumulative preferred
financing shares became effective on March 3, 2004. In 2004 the Company and the holders of Depositary receipts furthermore
agreed that the cumulative preferred financing shares would be convertible into common shares as of March 4, 2006. The
conversion conditions have been set so as to avoid any transfer of value from the common shares to the cumulative preferred
financing shares. The maximum number of common shares to be received upon conversion of all outstanding cumulative
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