22
Ahold
Annual Report 2011
Groupata glance
Performance
Governance
Financials
Investors
Group performance continued
Income from continuing operations
per common share (basic)
Earnings per share
Basic income from continuing operations per common share was €0.93, an increase of
26 percent compared to 2010. While operating profits were only marginally higher, the increase
was driven by higher results from joint ventures and lower income taxes, and partly offset by
higher net financial expense. The average number of outstanding common shares decreased as
a result of the shares re-purchased under two share buyback programs:
€500 million program completed in February 2011.
€1 billion program that commenced in March 2011 and that we expect to complete by the end
of March 2012. This program was initially planned to be completed over 18 months, but was
subsequently accelerated to take advantage of volatile financial markets. As of year-end 2011
the remaining amount under the program was €277 million.
The decrease in the average number of outstanding common shares was marginally offset by
shares that were issued under employee share-based compensation programs.
Dividend per share
We propose a common stock dividend of €0.40 for the financial year 2011, up €0.11 or
38 percent from last year. This is in line with our dividend policy to target a payout ratio in the
range of 40 - 50 percent of adjusted income from continuing operations.
Adjusted income from continuing operations in 2011 amounted to €1,009 million and was
determined as follows:
2011
million
Income from continuing operations
Add-back:
Release of tax contingency reserve
Provision related to Vornado (after-tax)
1,032
(109)
86
Adjusted income from continuing operations
1,009
