12
Financial guidance
Ahold
Annual Report 2011
Group at a glance
Performance
Governance
Financials
Investors
Our strategy continued
Simplicity
We are building a culture of simplicity by continuously finding new ways to do things more simply.
We are also taking advantage of our strengths, scale, and resources as an international
company.
We are leveraging our global capabilities and working to have more common processes and
systems across our businesses. This will make it easier for us to integrate new businesses and
move into new markets. These processes and systems will be based on our operating model,
known as the Ahold Retail Model.
Simplicity is helping us lower costs, reduce risks, and do things faster. We have launched a new
€350 million three-year cost savings program (2012-2014) so that we can invest in creating more
value for customers and stay ahead of the competition.
Responsible retailing
We want to be the responsible retailer wherever we operate.
All of our businesses believe in playing a responsible role when it comes to our customers' health
and well-being, the sourcing of the products we sell, our impact on the environment, the
communities we serve, and the people we employ.
We have clear and ambitious corporate responsibility targets, for example, in relation to the
percentage of healthy products we sell, the sourcing of sustainable products, and the reduction
of carbon dioxide and waste. As we achieve them, we are setting new ones.
We will further embed corporate responsibility in our businesses and continue to engage the
218,000 employees who bring our CR strategy to life.
For more information on our activities in this area, please read Ahold's Corporate Responsibility
Report 2011.
People performance
Our businesses are all about people. We have great people who love what they do and do it well.
We will continue to make sure we attract and engage the best talent in the industry and focus on
their development. We already have a strong, dedicated workforce and will continue to develop
the skills and capabilities of the Ahold group to help us achieve our growth ambitions. We will also
continue to nurture diversity and the transfer of skills and knowledge across the business.
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 remain in line with these targets, management has
determined that it is now appropriate to manage Ahold's business according to a broader set of
ambitions as we pursue our new growth strategy launched in 2011This strategy outlines our
ambitions to reshape our retail businesses for the future, including to accelerate our growth in
existing and new markets, connect with customers in a more personalized way, and leverage our
global capabilities based on the Ahold Retail Model.
We will continue to invest in growth opportunities, take costs out of the business, and reinvest -
both for the benefit of our customers and to deliver attractive returns to our shareholders.
