o www.ahold.com/reports2009
ICA
Performance by segment - continued
Joint ventures
Performance
The information presented in this report relating to ICA and JMR (on a 100 percent basis)
represents amounts that are not consolidated in the Company's financial statements
since Ahold's investment in ICA and JMR is accounted for under the equity method,
as described in Notes 3 and 14 to the consolidated financial statements in this
Annual Report.
In April 2000, Ahold acquired a 50 percent partnership stake in ICA AB ("ICA"), which
in turn owns the ICA group. In November 2004, the Company increased its stake in ICA
to 60 percent. The other 40 percent stake in ICA is held by Hakon Invest AB, a Swedish
company listed on the Stockholm Stock Exchange. Under the shareholders' agreement
with Hakon Invest AB, Ahold's 60 percent shareholding stake in ICA does not entitle it
to unilateral decision-making authority over ICA, because the agreement provides that
strategic, financial and operational decisions will be made only on the basis of mutual
consent. The shareholders' agreement also provides for a call and put option exercisable
by Ahold or Hakon Invest AB as the case may be, if there is a change of control over the
other party.
ICA is a food retail group, headquartered in Stockholm, Sweden. As of year end 2009,
ICA served over 2,300 retailer-owned and company-operated retail food stores in Sweden,
Norway and the Baltic States. ICA also provides limited consumer financial services in
Sweden through its bank.
Net sales
Net sales decreased 5.7 percent in 2009 to €8.9 billion, and increased 1.8 percent
at constant exchange rates. The increase was due to continuing solid performance in
Sweden, where a price repositioning program was implemented in 2009, and improved
performance in Norway. This increase was partially offset by performance in the Baltic
countries, which were heavily impacted by the economic downturn, including a large
increase in unemployment.
Operating income
In 2009, operating income increased €41 million to €252 million. The increase was due
to a strong performance in Sweden and improved, though still negative, operating income
in Norway. This increase was partially offset by performance in the Baltic countries and
changes in exchange rates.
Net income
In 2009, net income decreased €28 million to €146 million, as an improved operating
income was offset by higher income taxes and a negative impact from changes in
exchange rates.
