This Annual Report includes the following non-GAAP
financial measures:
Net sales at constant exchange rates. In certain
instances, net sales exclude the impact of using
different currency exchange rates to translate the
financial information of certain of the Company's
subsidiaries to Euros. For comparison purposes, the
financial information of the previous year is adjusted
using the average currency exchange rates for 2006
in order to understand this currency impact. In some
instances, net sales are presented in local currency.
Ahold believes these measures provide a better
insight into the operating performance of foreign
subsidiaries.
Net sales excluding the impact of divestitures. Ahold
believes that by excluding divestitures, this measure
provides a better insight into the operating
performance and results from the continuing
operations of the subsidiary.
Net sales excluding the impact of currency exchange
rates and divestments. Ahold believes that as a result
of these exclusions, this measure provides a better
insight into the Company's operating performance.
Net sales excluding week 53 of2004. Because
fiscal 2004 consisted of 53 weeks while each of
fiscal 2006 and 2005 consisted of 52 weeks, Ahold
believes that by excluding net sales during week 53
of 2004, this measure allows for better comparisons
between periods.
Identical sales excluding gasoline net sales. Because
gasoline prices have recently experienced greater
volatility than food prices, Ahold believes that by
excluding gasoline net sales, this measure provides a
better insight into the recent positive effect of gasoline
net sales on identical sales.
Group Support Office costs excluding the Securities
Class Action settlement. Ahold believes that by
excluding the Securities Class Action settlement, this
measure provides a better insight into the Company's
operating performance.
Operating expenses excluding the impact of the
Securities Class Action settlement as a percentage of
net sales. Operating expenses as a percentage of net
sales in 2005 was 20.1 percent. Operating expenses
excluding the impact of the Securities Class Action
settlement as a percentage of net sales in 2005 was
18.3 percent. Ahold believes that as a result of this
exclusion, this measure provides a better insight into
the Company's operating performance.
Operating income excluding the impact of the
Securities Class Action settlement. Ahold believes
that by excluding the impact of the Securities Class
Action settlement, this measure allows for better
comparisons between periods and provides a better
insight into operating performance.
Operating income excluding impairment of assets,
gains/losses on the sale of assets and restructuring
and other related charges. Ahold believes that as
a result of these exclusions, this measure provides
a better insight into the Company's operating
performance.
Operating income (loss) in local currency. In certain
instances, operating income (loss) is presented in
local currency. Management believes this measure
provides a better insight into the operating
performance of foreign subsidiaries.
Total gross debt, which is the sum of long-term debt
and short-term debt. A reconciliation of total gross
debt to loans, including current portion, appears
under "Management's discussion and analysis -
Liquidity and Capital Resources - Debt." Ahold
believes that total gross debt is a useful measure
of Ahold's indebtedness.
Ahold Annual Report 2006 151
