€29.5
€1.3
4.9%
€0.29
6
Message from our CEO
Dear shareholder,
billion
billion
Proposed dividend
per common share
Ahold
Annual Report 2010
Group at a glance
Performance
Governance
Fi nancials
Investors
Dick Boer
Chief Executive Officer
Watch the CEO online:
http://arreport2010.ahold.com
Net sales
Operating income
Underlying retail
operating margin
It is a pleasure to write to you for the first time as the new CEO of Ahold.
The past year was another challenging one for the food retail industry worldwide and I am
particularly happy that we were able to once again deliver a solid performance in our businesses
in both Europe and the United States. We succeeded in driving volumes and growing market
share in almost all of our markets.
In 2010, our sales grew 5.7 percent and we achieved an underlying retail operating margin
of 4.9 percent, in line with our mid-term target of five percent. As a result of our performance,
I am pleased that we are able to propose a dividend of €0.29 per common share, a 26 percent
increase compared to last year. We will also launch a new 18-month €1 billion share buyback
program following the successful completion of our earlier €500 million share buyback program.
In the Netherlands, Albert Heijn continued to provide great value to customers, win new business,
and increase its market share. Our XL store format was voted the best supermarket in the
Netherlands for the second year in a row. Albert Heijn also rolled out a new assortment of
affordable, everyday, non-food items and increased the number of products under its "AH
puur&eerlijk" organic and sustainable own brand. Our drugstore chain, Etos, was named the most
customer-friendly in the Netherlands, while our wine and liquor business, Gall Gall, remodeled
its 100th store into its new, modern, customer-friendly format.
In the Czech Republic, Albert continued to improve its profitability by attracting more customers
with its new fresh assortment and extended opening hours, and by reducing costs and simplifying
the business.
In the United States, we completed our reorganization of the businesses into four geographic
divisions with one executive leadership team and support organization. We also completed the
acquisition, integration, and rebranding of the Ukrop's Super Markets chain in Richmond, Virginia,
under our Martin's banner. In addition, we acquired and remodeled five former Shaw's
supermarkets to our Stop Shop banner, and acquired two Genuardi's stores in the Giant
Carlisle market area. We also successfully completed Project Refresh at Giant Landover, a three-
year program that involved remodeling almost 100 of our stores. Peapod, our online grocery
business, expanded into the Indianapolis, Manhattan, and southeastern Wisconsin markets, and
continued to grow market share. It is now the largest internet grocer in the United States, serving
II states and the District of Columbia.
We continued to focus on cost reduction across the business, and are ahead of our plan on
the three-year €350 million program we started at the beginning of last year. Our ability to
continuously take costs out of the business is essential, and was particularly important in 2010
with challenging markets and consumers focused on value and promotions. Despite these
conditions, we continued to successfully balance sales and margins and provide great value
to all our customers.
In 2010 we aligned our company values so that all of our businesses share a common definition
and understanding of who we are, what's important to us, and how we do things. This is the first
time we have had a common set of values for all our employees. We also developed a new vision
for the company that says we want to offer all of our stakeholders better choice, better value,
better life, every day.
Over the course of the year there were a number of changes within our senior management
team. After five years with Ahold, and more than three as CEO, John Rishton left the company
at the end of February 2011 to become CEO of Rolls-Royce. John was instrumental in
strengthening our company, restoring its credibility, and making employees proud to work
at Ahold once again.
