Group performance - continued
Liquidity and cash flows
Performance o www.ahold.com/reports2009
In addition, a significant number of union employees in the United States are covered
by multi-employer plans. Based on the most recent available information that these
plans have provided (largely related to financial years ending between July 1, 2008
and December 31, 2008), we estimate our proportionate share of the total deficit to
be €626 million (pre-tax). We have adjusted this information, with the help of external
actuaries, for market trends and conditions through the end of 2009 and estimate that our
proportionate share of the total deficit increased to €705 million (pre-tax). While this is our
best estimate based on the information available to us, it is imprecise and not necessarily
reliable. For more information see Note 23 to the consolidated financial statements.
Equity increased by €753 million, mainly as a result of the addition of the current year's
net income, partially offset by the dividend payment related to 2008.
In 2009, gross debt decreased from €4.2 billion to €3.7 billion as a result of loan
repayments of €0.5 billion. Ahold's net debt to equity ratio was 13 percent as of January 3,
2010 compared to 29 percent as of December 28, 2008. This does not include our
commitments under operating lease contracts, which, on an undiscounted basis, amount
to €5.8 billion.
Gross and net debt billion)
Liquidity
Ahold relies on cash provided by operating activities as a primary source of liquidity in
addition to debt and equity issuances in the capital markets, letters of credit under credit
facilities and available cash balances. Based on our current operating performance and
liquidity position, we believe that cash provided by operating activities and available cash
balances (including short-term deposits) will be sufficient for working capital, capital
expenditures, dividend payments, interest payments and scheduled debt repayment
requirements for the next 12 months and the foreseeable future. A total of €369 million in
loans will mature in 2010, €0.5 billion in 2011 through 2014 and €1.2 billion after 2014.
Our strategy over the past years has positively impacted the credit ratings assigned to
Ahold by Moody's and Standard Poor's (S&P). In June 2009, S&P upgraded Ahold's
corporate credit rating to BBB with a stable outlook. Moody's affirmed Ahold's Baa3 issuer
credit rating and changed its outlook from stable to positive in November 2009.
Group credit facility
Ahold's €1.2 billion committed unsecured syndicated multi-currency credit facility has a
base term of five years ending in August 2012. The credit facility may be used for working
capital and for general corporate purposes and provides for the issuance of $550 million
in letters of credit. As of January 3, 2010, there were no outstanding borrowings under
the credit facility other than letters of credit to an aggregate amount of $407 million.
Jan 01, Dec 31, Dec 30, Dec 28, Jan 03,
2006 2006 2007 2008 2010
Gross debt
Cash and short-term deposits
Net debt
Ahold Annual Report 2009 16
