Monitoring our
performance
Group key financial indicators
26
Results
Shareholders
Leverage and liquidity
Other information
Ahold at a glance
Business review
I Governance
Financials
Investors
Ahold
Annual Report 2014
2014
million
2013
million
Change versus
prior year
change
constant rates
Net sales
32,774
32,615
0.5%
0.8%
Underlying operating income
1,267
1,379
(8.1)%
(8.0)%
Underlying operating margin
3.9%
4.2%
(0.3)% pt
Operating income
1,250
1,239
0.9%
0.9%
Income from continuing operations
791
805
(1.7)%
(1.9)%
Net income1
594
2,537
(76.6)%
(76.6)%
2014
2013
Change versus
prior year
Net income per common share (basic)
0.68
2.48
(72.6)%
Adjusted income from continuing operations per share2
0.88
0.79
11.4%
Dividend payout ratio3
51%
51%
Dividend per common share
0.48
0.47
2.1%
Total shareholder return
6.4%
35.8%
(29.4)% pt
Return on capital employed 13.0% 13.8% (0.8)% pt
2014
2013
Change versus
prior year
Liquidity billion)
3.1
5.0
(38.0)%
Net debt million)
1,311
(942)
(239.2)%
Debt leverage (times)4
1.9
0.9
111.1%
Free cash flow million)10551,109(4.9)%
2014
2013
Change versus
prior year
Number of stores (including franchise stores)
3,206
3,131
2.4%
Capital expenditures (excluding acquisitions)
740
830
(10.8)%
Number of employees
227,000
222,000
2.3%
Credit rating outlook Standard Poor's
BBB stable
BBB stable
Credit rating outlook Moody's Baa3 positive Baa3 positive
Certain key performance indicators contain non-GAAP measures. The definitions of these non-GAAP measures are described on page 37 of this Annual Report.
1 The decline in net income for 2014 compared to 2013 was primarily due to the results from discontinued operations. 2014 results include a charge representing the net of tax
settlement amount and associated legal fees for the Waterbury litigation of €194 million, while 2013 results included income of €1,751 million following the saTe of our former joint
venture ICA.
2 For more information on adjusted income from continuing operations, see the Group financial review in this section.
3 Dividend payout ratio is based on adjusted income from continuing operations, see the Group financial review section for more information.
4 The debt leverage ratio of the net lease adjusted debt divided by EBlTDAR is defined in the non-GAAP measures section.