€188 million
€l.1 billion
2 www.ahold.com/reports2008
Group performance
Condensed cash flow statement
Cash flow before
financing activities
06
dividend paid
loan repayments
Operating and financial review
AHOLD ANNUAL REPORT 2008 15
2008
2007
million
million
Cash generated from operations
1,867
1,460
Other operating cash flows
(124)
380
Net cash from operating activities
1,743
1,840
Purchase of non-current assets
(1,019)
(738)
Divestment of businesses, net of cash divested
321
5,435
Other investing cash flows
227
90
Net cash from investing activities
(471)
4,787
Cash flow before financing activities
1,272
6,627
Interest paid
(349)
(431)
Repayments of loans
(1,069)
(577)
Dividends on common shares
(188)
-
Capital repayment and share buyback
-
(4,016)
Other financing cash flows
(111)
(116)
Net cash from financing activities
(1,717)
(5,140)
Net cash from operating, investing and financing activities
(445)
1,487
Cash generated from operations increased by EUR 407 million compared to 2007.
In 2007, the final payment under the Securities Class Action settlement was made
(EUR 284 million), as were additional contributions in excess of required amounts
to Ahold's pension plans (EUR 133 million). Net cash from operating activities
decreased by EUR 97 million compared to 2007, mainly due to higher income
taxes paid and the absence of operating cash flows from divested businesses.
Net cash from investing activities decreased by EUR 5.3 billion compared to 2007,
which included EUR 5.4 billion related to the sale of U.S. Foodservice, Ahold's
Polish activities and Tops. Capital expenditures increased by EUR 281 million
compared to 2007, primarily as a result of Giant-Landover's store remodeling
program and the conversion of 54 former Schuitema stores into Albert Heijn stores.
Net cash used in financing activities was EUR 1.7 billion, a EUR 3.4 billion lower
outflow than in 2007. This was mainly due to the distribution of proceeds from
divestments to shareholders in 2007 through a capital repayment of EUR 3 billion
and a share buyback program of EUR 1 billion. In 2007, Ahold reinstated its
annual dividend payments and in May 2008 paid a dividend of EUR 188 million
(EUR 0.16 per common share). Loan repayments were EUR 1.1 billion, related
mainly to a EUR 949 million note that matured in May 2008. The loans were
repaid from Ahold's cash balances. As a result of the significant debt repayments in
2007 and 2008, interest paid decreased by EUR 82 million to EUR 349 million.
As a result of the net cash flows mentioned above, Ahold's cash and cash
equivalents decreased from EUR 3.3 billion as of December 30, 2007 to
EUR 2.9 billion as of December 28, 2008.
08
07
05
04
1,272
6,627
1,028
2,057
2,033
