Notes 6, 7, 8
-
-
Financial statements - Notes to the consolidated financial statements
6 Net sales
2006
2005
2004
Sales to retail customers
25,481
25,116
25,009
Sales to wholesale customers
15,300
14,872
15,183
Sales to franchisees and franchisee fees
3,655
3,515
3,502
Internet sales
295
252
200
Other sales
141
224
146
Net sales
44,872
43,979
44,040
7 Expenses by nature
2006
2005
2004
Cost of product
33,338
32,696
32,817
Employee benefit expenses
5,689
5,749
5,766
Other store expenses
2,223
2,085
1,982
Depreciation, amortization and impairments
974
1,048
1,170
Rent expense
644
619
638
Settlement Securities Class Action
803
Other expenses
711
726
700
Total expenses
43,579
43,726
43,073
For disclosure on total expenses of discontinued operations, see Note 12. For information on the settlement in the Securities
Class Action in 2005, see Note 34.
8 Directors' remuneration
Employment contracts with the individual Corporate
Executive Board members
Amounts in the discussion below are in thousands of EUR
or USD, unless otherwise indicated.
Anders Moberg
The Company's employment agreement with Anders
Moberg, dated October 14, 2003, provides for a base salary
of EUR 1,500 per year, participation in the annual cash
incentive plan, as well as participation in the Company's
equity based long-term incentive program ("Global Reward
Opportunity" or "GRO") (see Note 9). The at-target payout
under the annual cash incentive plan is 142.5 percent of the
base salary and is capped at 250 percent in case of
extraordinary performance. The remuneration of Anders
Moberg differs from the Company's remuneration policy with
regard to base salary and the annual cash incentive plan
because of pre-existing contractual arrangements.
In addition to participation in the regular equity program
(GRO), Anders Moberg participates in the Company's
one-off 2004-2006 Performance Share Grant plan (see
Note 9). Unless Anders Moberg's employment agreement is
otherwise terminated, he will be eligible for reappointment in
2008. Anders Moberg's severance arrangement will be
negotiated if and when this employment agreement is
terminated by the Company other than for cause. Anders
Moberg's employment agreement may be terminated by the
Company with a notice period of 12 months and by Anders
Moberg with a notice period of six months. Anders Moberg
does not participate in any of the Company's pension plans;
instead he receives the employer pension contributions,
which amount to approximately EUR 83 per year.
74 Ahold Annual Report 2006
