Notes to the
consolidated
financial statements
continued
34 Commitments and contingencies continued
35 Subsequent events
Overview
Business review
Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
Albert Heijn Franchising
The Vereniging Albert Heijn Franchisenemers (an association of Albert Heijn franchisees or VAHFR) has asserted claims against an Ahold Delhaize
subsidiary, Albert Heijn Franchising BV (AHF), for the years 2008 through 2012, the alleged value of which exceeds €200 million in aggregate.
AHF and the VAHFR have had ongoing discussions for a number of years about the resolution of certain cost items under individual franchise
agreements. On December 24, 2014, AHF and other legal entities within the Ahold Delhaize Group of companies received a writ in which VAHFR
and 242 individual claimants would initiate proceedings as of April 15, 2015, before the District Court of Haarlem with respect to these discussions.
On November 16, 2016, the court issued a judgment rejecting all claims of the VAHFR and the individual claimants. On February 13, 2017 VAHFR and
240 individual franchisers filed a formal appeal, which is to be substantiated, against the judgment.
Uruguayan litigation
Ahold Delhaize, together with Disco and Disco Ahold International Holdings N.V. (DAIH), is a party to one lawsuit in Uruguay related to Ahold
Delhaize’s 2002 acquisition of Velox Retail Holdings’ shares in the capital of DAIH. The two other related lawsuits in Uruguay were finally decided
in favor of Ahold Delhaize in 2013. The damages alleged by the plaintiffs, alleged creditors of certain Uruguayan and other banks, amount to
approximately $62 million (€59 million) plus interest and costs. As part of the sale of Disco to Cencosud in 2004, Ahold Delhaize indemnified
Cencosud and Disco against the outcome of these legal proceedings. The one remaining lawsuit is ongoing. Ahold Delhaize continues to believe
that the plaintiffs’ claims are without merit and will continue to vigorously oppose such claims.
Greek litigation
In a shareholders’ matter related to Alfa Beta Vassilopoulos S.A. (“AB”), Ahold Delhaize’s wholly-owned subsidiary in Greece, Ahold Delhaize was
notified in 2011 that some former shareholders of AB, who together held 7% of AB shares, filed a claim with the Court of First Instance of Athens
challenging the price paid by Ahold Delhaize during the squeeze-out process that was approved by the Hellenic Capital Markets Commission.
They have also filed a separate claim for compound interest. Ahold Delhaize believes that the squeeze-out transaction has been executed and
completed in compliance with all legal and regulatory requirements and against a fair price, and vigorously defends itself against these claims.
A decision on the merits of the matter by the Court of First Instance is expected to occur in the course of 2017.
There have been no significant subsequent events.
Other legal proceedings
In addition to the legal proceedings described previously in this Note, Ahold Delhaize and its former or current subsidiaries are parties to a number
of other legal proceedings arising out of their business operations. Ahold Delhaize believes that the ultimate resolution of these other proceedings
will not, in the aggregate, have a material adverse effect on Ahold Delhaize’s financial position, results of operations or cash flows. Such other
legal proceedings, however, are subject to inherent uncertainties and the outcome of individual matters is unpredictable. It is possible that Ahold
Delhaize could be required to make expenditures, in excess of established provisions, in amounts that cannot reasonably be estimated.
Notwithstanding the foregoing, the years from 2010 onwards are still to be settled. Ahold Delhaize has an existing provision of €30 million with
regard to the settlement of costs with individual franchisees for the entire period up to and including 2016.
