2 www.ahold.com/reports2008
Notes to the consolidated financial statements
19 Equity attributable to common shareholders
Shares and share capital
Common shares and additional paid-in capital
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Financial statements
AHOLD ANNUAL REPORT 2008 1 73
Authorized share capital is comprised of the following classes of shares as of December 28, 2008:
million
Common shares (1,700,000,000 of EUR 0.30 par value each)
Cumulative preferred shares (1,250,000 of EUR 500 par value each)
510
625
Total
1,135
In addition, Ahold has cumulative preferred financing shares ("preferred financing shares") outstanding. These preferred financing
shares are considered debt under IFRS until the date that Ahold receives irrevocable notification from a holder of preferred financing
shares to convert these shares into common shares. Upon this notification the preferred financing shares are classified as a separate
class of equity as they no longer meet the definition of a liability as from that date. For disclosures regarding Ahold's preferred
financing shares, see Note 21.
Changes in the number of common shares and the number of treasury shares were as follows:
Number of common
shares issued and
fully paid (x 1,000)
Number of
treasury shares
(x 1,000)
Number of
common shares
outstanding (x 1,000)
Balance as of December 31, 2006
1,555,678
1,555,678
Conversion of preferred financing shares
22,419
22,419
Reverse stock split
(316,832)
(316,832)
Purchase of own shares
96,427
(96,427)
Share-based payments
7,050
(34)
7,084
Balance as of December 30, 2007
1,268,315
96,393
1,171,922
Retirement of treasury shares
(76,427)
(76,427)
Share-based payments
(4,763)
4,763
Balance as of December 28, 2008
1,191,888
15,203
1,176,685
On April 23, 2008, Ahold's shareholders approved the payment of a dividend of EUR 0.16 per common share (EUR 188 million in
the aggregate), which was paid on May 13, 2008. With respect to the current year, the Corporate Executive Board, with the approval
of the Supervisory Board, proposes that a dividend of EUR 0.18 per common share (EUR 212 million in the aggregate) be paid in
2009 with respect to 2008. This dividend is subject to approval by the General Meeting of Shareholders and has not been included
as a liability in the consolidated balance sheet as of December 28, 2008. The payment of this dividend will not have income tax
consequences for the Company.
On June 19, 2007, a capital repayment and reverse stock split was approved at an Extraordinary General Meeting of Shareholders.
On August 22, 2007, the reverse stock split became effective. Every five existing shares with a nominal value of EUR 0.24 each
were consolidated into four new shares with a nominal value of EUR 0.30 each. The capital repayment of EUR 1.89 per existing
share, EUR 2,994 million in the aggregate, took place on August 28, 2007.
On August 30, 2007, Ahold announced a EUR 1 billion share buyback program which was finalized on November 20, 2007.
A total of 96,427,207 common shares were repurchased under this program at an average price of EUR 10.37. Of the total shares
repurchased, 76,427,207 were canceled on January 3, 2008. The remaining shares repurchased are held as treasury shares for
delivery under employee share-based compensation plans. For more information on the Company's share-based compensation plans,
see Note 31.
