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Non-GAAP measures
Adjusted income from continuing operations
Comparable sales
Corporate Center costs
Free cash flow
Identical sales
Identical sales, excluding gasoline net sales
Liquidity
Net debt
Net lease adjusted debt EBITDAR
Net sales at constant exchange rates
Ahold
Annual Report 2011
Groupata glance
Performance
Governance
Financials
Investors
This Annual Report includes the following non-GAAP financial measures:
Income from continuing operations adjusted for significant non-recurring items. This measure
is a component of Ahold's dividend policy, whereby the dividend payout ratio has been set to be
40-50 percent of adjusted income from continuing operations.
Identical sales plus net sales from replacement stores in local currency.
Corporate Center costs relate to the responsibilities of the Corporate Center, including Corporate
Finance, Corporate Strategy, Internal Audit, Legal, Compliance, Human Resources, Information
Technology, Insurance, Communications, Corporate Responsibility, and the Corporate Executive
Board. Corporate costs also include results from other activities coordinated centrally but not
allocated to any operating company.
Operating cash flows from continuing operations minus net capital expenditures minus net
interest paid plus dividends received. Ahold's management believes this measure is useful
because it provides insight into the cash flow available to, among other things, reduce debt
and pay dividends.
Net sales from exactly the same stores in local currency for the comparable period.
Because gasoline prices have experienced greater volatility than food prices, Ahold's
management believes that by excluding gasoline net sales, this measure provides a better
insight into the growth of its identical store sales.
Cash and cash equivalents, short term deposits, and undrawn funds available under the
committed credit facility. Ahold's management believes this measure is useful because it
provides insight into funds available to manage the company.
Net debt is the difference between (i) the sum of loans, finance lease liabilities, cumulative
preferred financing shares and short-term debt (i.e. gross debt) and (ii) cash, cash equivalents,
and short-term deposits. In management's view, because cash, cash equivalents, and short-term
deposits can be used, among other things, to repay indebtedness, netting this against gross debt
is a useful measure for investors to judge Ahold's leverage. Net debt may include certain cash
items that are not readily available for repaying debt.
Net debt increased by the present value of future operating lease commitments over
underlying operating income before depreciation, amortization and gross rent expense.
Ahold's management believes this measure is useful because it provides insight into Ahold's
leverage, adjusted for the impact of operating leases that count for a significant part of Ahold's
capital structure.
Net sales at constant exchange rates exclude the impact of using different currency exchange
rates to translate the financial information of Ahold's subsidiaries or joint ventures to euros.
Ahold's management believes this measure provides a better insight into the operating
performance of Ahold's foreign subsidiaries or joint ventures.
