31
Free cash flow
Net debt
Non-GAAP measures continued
Ahold
Annual Report 2010
Group at a glance
Governance
Fi nancials
Investors
Operating cash flows from continuing operations minus net capital expenditures minus net
interest paid plus dividends received. Ahold's management believes this measure is useful
because it provides insight into the cash flow available to, among other things, reduce debt and
pay dividends.
Net debt is the difference between (i) the sum of long-term debt and short-term debt (i.e. gross
debt) and (ii) cash, cash equivalents, and short-term deposits. In management's view, because
cash, cash equivalents, and short-term deposits can be used, among other things, to repay
indebtedness, netting this against gross debt is a useful measure for investors to judge Ahold's
leverage. Net debt may include certain cash items that are not readily available for repaying debt.
Management believes that these non-GAAP financial measures allow for a better understanding
of Ahold's operating and financial performance. These non-GAAP financial measures should be
considered in addition to, but not as substitutes for, the most directly comparable IFRS measures.
