H fifillslEil 138 30 Financial risk management and financial instruments (continued) - - - - - - - Ahold at a glance Notes to the consolidated financial statements Our strategy Our performance Governan Financials Investors Ahold Annual Report 2013 Year ended December 30, 2012 Contractual cash flows million Net carrying amount Within 1 year Between 1 and 5 years After 5 years Total Non-derivative financial liabilities Notes (1,056) (66) (566) (1,205) (1,837) Other loans (5) (1) (1) (3) (5) Financing obligations (381) (73) (298) (243) (614) Mortgages payable (11) (3) (7) (2) (12) Finance lease liabilities (1,254) (218) (879) (778) (1,875) Cumulative preferred financing shares1 (497) (24) (79) (54) (157) Short-term borrowings (42) (42) (42) Reinsurance liabilities (121) (45) (67) (10) (122) Accounts payable (2,667) (2,667) (2,667) Other (2) (2) (2) Derivative financial assets and liabilities Cross-currency derivatives and interest flows 46 (34) 190 (151) 5 Interest derivatives and interest flows 59 11 49 60 1 Cumulative preferred financing shares have no maturity. For the purpose of the table above, the future dividend cash flows were calculated until the coupon reset date of each of the four share-series (2013, 2016, 2018 and 2020). No liability redemption was assumed. All derivative financial instruments and non-derivative financial liabilities held at the reporting date, for which payments are already contractually agreed, have been included. Amounts in foreign currency have been translated using the reporting date closing rate. Cash flows arising from financial instruments carrying variable interest payments have been calculated using the forward curve interest rates as of December 29, 2013, and December 30, 2012, respectively. Refer to Note 34 for the liquidity risk related to guarantees. Credit ratings S&P upgraded Ahold's corporate credit rating to BBB with a stable outlook in June 2009 and, since then, this rating has remained unchanged. In July 2013, Moody's affirmed Ahold's Baa3 issuer credit rating and changed the outlook to positive from stable. Maintaining investment grade credit ratings is a cornerstone of the Company's strategy as they serve to lower the cost of funds and to facilitate access to a variety of lenders and markets. Capital risk management The Company's primary objective in terms of managing capital is the optimization of its debt and equity balances in order to sustain the future development of the business, maintain an investment grade credit rating and maximize shareholder value. The capital structure of the Company consists of net lease adjusted debt, which includes borrowings, cash and cash equivalents, short-term deposits and similar instruments, equity, and the present value of the operating lease commitments. Ahold may balance its overall capital structure in a number of ways, including through the payment of dividends, capital repayment, new share issues and share buybacks as well as the issuance of new debt or the redemption of existing debt.

Jaarverslagen | 2013 | | pagina 43