Ahold
Annual Report 2011
Performance Governance I I Financials Investors
Group at a glance
Message from our CEO continued
Our joint ventures, ICA and JMR, continued to make progress during the year. At ICA, Per
Strömberg was announced as the successor to Kenneth Bengtsson, who will step down after
11 years as President and CEO in April 2012. Efforts to reposition the business in Norway are
underway. In Portugal, JMR continues to perform strongly despite the difficult economic
conditions.
Since 2003, Ahold's financial targets have been to achieve a sustainable net sales growth of five
percent (mainly from identical sales growth) and a sustainable underlying retail operating margin
of five percent, while maintaining an investment grade credit rating. While our performance
continues to be in line with these targets we now believe that it is appropriate to manage Ahold's
business according to a broader set of ambitions as we pursue our new growth strategy.
We remain committed to providing attractive returns to our shareholders, and as part of this
commitment we have changed our dividend policy to achieve a payout ratio of 40 to 50 percent
of adjusted income from continuing operations. The dividend of €0.40 per share proposed for
2011 reflects our confidence in our new strategy and our proven ability to generate cash. It
represents an increase of 38 percent compared to 2010, while our income per share from
continuing operations grew 26 percent, driven by strong operating results and supported by our
share buyback program. The strong income and dividend growth give our shareholders a
competitive return for our sector.
In 2012, we celebrate our 125th anniversary. Our founding company opened its first store in the
Netherlands in 1887. The grandson of our founder, Albert Heijn, who died in January last year,
built the company into one of the best-known brands in the Netherlands and one of the most
successful retailers in the world. Over our history, we have grown by acquiring businesses that
each have their own rich heritage and a commitment to the customer.
As a company that operates at the heart of society, I believe we have an important role to play in
helping improve the communities we serve and the lives of people who shop and do business
with us. I am committed to Ahold being a responsible retailer and playing a leading role in helping
people to live healthier lives and reduce their impact on the environment. Our close relationships
and daily interaction with customers, suppliers, and our large workforce make it possible for us to
make a real and lasting difference.
In the year ahead, we will continue delivering on our six strategic pillars to fulfill our vision to
provide all our stakeholders with better choice, better value, and a better life, every day. I am
confident that we will continue to thrive, thanks to the efforts and commitment of everyone across
our company. Along with my colleagues on the Corporate Executive Board, I would like to thank
our employees for all they did in the past year to strengthen our businesses and to give our
customers a great shopping experience. The relationships they build with our customers and the
service they provide each day are what make us successful, able to grow the business, and
continue to increase shareholder value.
Dick Boer
Chief Executive Officer
February 29, 2012
