31
Group financial review (continued)
Earnings and dividend per share
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Ahold at a glance
Business review
Governance
Ahold
Annual Report 2014
Basic income from continuing operations per
common share was €0.90, an increase of €0.11
or 13.9% compared to 2013. This increase
was primarily driven by the average number of
outstanding common shares, which decreased as a
result of (i) the shares repurchased under the €2 billion
share buyback program that we completed in
2014 and (ii) the €1 billion capital repayment and
reverse stock split transaction. The value of shares
repurchased in 2014 amounted to €1,232 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.
Our dividend policy is to target a payout ratio in
the range of 40-50% of adjusted income from
continuing operations. As part of our dividend policy
we adjust income from continuing operations for
significant nonrecurring items. Adjusted income from
continuing operations amounted to €777 million and
€807 million in 2014 and 2013, respectively, and
was determined as follows:
millior
2014
2013
Income from continuing operations
791
805
Income from continuing operations per share
0.90
0.79
Add-back (after-tax):
European reorganization
30
Dutch pension plan amendments
(44)
Multi-employer pension plan settlement with the New England Teamsters and
Trucking Industry Pension Fund
39
Movements in income tax contingency reserves
(37)
Adjusted income from continuing operations
777
807
Adjusted income from continuing operations per share
0.88
0.79
Income from continuing operations
per common share (basic)
Reflecting the confidence we have in our strategy and our ability to generate cash, we propose a common
stock dividend of €0.48 for the financial year 2014, up 2% from last year. It represents a payout ratio of 51%,
based on the expected dividend payment on adjusted income from continuing operations. We consider this to
be broadly in line with our dividend policy.
Our strong balance sheet enables us to launch a new 12-month €500 million share buyback program while
continuing to actively pursue our growth strategy and taking advantage of opportunities as they arise.
2010 2011 2012 2013
2014
Dividend per common share
(2014 includes proposed dividend)
2010 2011 2012 2013
2014
