40
Financial review (continued)
Earnings and dividend per share
805
869
0.79
0.84
(37)
-
52
807
921
0.79
0.89
Ahold at a glance
Our strategy
Our performance
Governan
Finan
Investors
Ahold Annual Report 2013
In 2013 and 2012, results from discontinued
operations were impacted by various adjustments
to the results of prior years' divestments (primarily
U.S. Foodservice and Tops), as a consequence of
warranties and indemnifications provided in the
relevant sales agreements.
For further information about discontinued
operations, see Note 5 to the consolidated
financial statements.
Basic income from continuing operations per
common share was €0.79, a decrease of €0.05 or
6% compared to 2012. This decrease was primarily
driven by the unusual items discussed above.
The average number of outstanding common
shares decreased as a result of the shares
repurchased under the €2 billion share buyback
program that we commenced in March 2013.
The value of shares repurchased in 2013 amounted
to €768 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.
As part of our dividend policy we adjust income
from continuing operations for significant non
recurring items. Adjusted income from continuing
operations amounted to €807 million and
€921 million in 2013 and 2012 as restated,
respectively, and was determined as follows:
million
2013
20121
Income from continuing operations
Income from continuing operations per share
Add-back (after-tax):
Multi-employer pension plan settlement with the New England Teamsters
and Trucking Industry Pension Fund
39
Movements in income tax contingency reserves
Write-down of capitalized software development costs
Adjusted income from continuing operations
Adjusted income from continuing operations per share
1 Including restatements, see Note 3 to the consolidated financial statements for an explanation of the restatements.
We propose a common stock dividend of €0.47 for the financial year 2013, up 7% from last year.
It represents a payout ratio of around 51%, based on the expected dividend payment on adjusted income
from continuing operations.
In 2013, the ICA divestment resulted in lower income from continuing operations. The cash received from
the sale of ICA is being returned to shareholders through the €1 billion capital repayment and reverse stock
split, which we expect to complete by the end of the first quarter, and the €2 billion share buyback program,
which is to be completed by December 2014. These shareholder returns will result in a reduction in the
number of outstanding shares and dividend payment. The payout ratio of 51% in 2014 is marginally outside
our dividend policy to target a payout ratio in the range of 40-50% of adjusted income from continuing
operations, due to the temporary impact of the ICA sale.
Income from continuing oper lions
per common share (basic)1
0.82
0.84
0.76
0.72
0.75
2009
2010
2011
2012
2013
1 Including restatements, see Note 3 to the consolidated financial
statements for an explanation of the restatements.
Dividend per common share
(2013 includes proposed dividend)
0.47
0.44
0.40
0.29
0.23
2009
2010
2011
2012
2013
