Group financial review continued
Financial position
Overview
Business review Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
7.6
3.0
3.5
3.2
3.2
5,570
15.3%
3,309
20.8%
Ahold Delhaize’s consolidated balance sheets as of January 1, 2017, and January 3, 2016, are
summarized as follows:
Group equity increased by €10,655 million.
This increase was mainly driven by the merger
(issuance of €10,761 million shares), the current
year’s net income and a positive currency
translation impact. This was partially offset
by returns to shareholders, which included, in
addition to the 2015 dividend of €429 million,
€1,001 million relating to the capital
repayment and reverse stock split that was
recorded and paid in July 2016.
The main drivers of changes in Ahold
Delhaize’s consolidated balance sheet result
from the merger between Ahold and Delhaize
Group, which was completed on July 23, 2016.
Property, plant and equipment increased by
€5,093 million, primarily due to the merger
(€4,930 million) and the strengthening of the
U.S. dollar against the euro, while capital
expenditures were offset by depreciation and
impairments. Intangible assets increased by
€10,579 million which was mainly the result of
the goodwill recognized as part of the merger
with Delhaize Group.
In 2016, gross debt increased by €4,059 million
to €7,561 million, primarily due to the merger
(€4,134 million) and the strengthening of the
U.S. dollar against the euro. This was partially
offset by the buyback and cancellation of the
entire principal amount of the JPY33 billion
notes and regular payments on finance lease
and financing transaction liabilities.
Gross and net debt
billion
Ahold Delhaize’s net debt was €3,244 million as
of January 1, 2017, an increase of €2,096 million
from January 3, 2016. The increase in gross
debt (€4,059 million), the capital repayment
(€1,001 million), payment of common stock
dividend (€429 million) and the buyback of
the JPY33 billion notes and the unwind of the
corresponding derivative (total cash impact of
€543 million), were partly offset by our free cash
flow (€1,441 million), €2,201 million related to
acquisition divestments of businesses, net of
cash and acquired available for sale financial
assets and restricted cash (€202 million).
Net debt does not include our commitments
under operating lease contracts, which, on an
undiscounted basis, amounted to €7,489 million
at year-end 2016 (2015: €6,140 million). The off-
balance sheet operating lease commitments
impact our capital structure.
Cash, cash equivalents and short-term deposits
and similar instruments and current portion of
available-for-sale financial assets
Gross debt Net debt
Oj
rn
1.8%
9.3%
659
3,373
389
1,559
2.4
2015
million
Property, plant and equipment
Intangible assets
Other non-current assets
Cash, cash equivalents and
short-term deposits and similar
instruments and current portion
of available-for-sale financial assets
Inventories
Other current assets
Total assets
Group equity
Non-current portion
of long-term debt
Pensions and other post-employment
benefits
Other non-current liabilities
Short-term borrowings and
current portion of long-term debt
Payables
Other current liabilities
Total equity and liabilities
4,317
3,288
2,372
36,275
16,276
1,991
5,389
3,017
36,275
of total
32.4%
34.6%
5.5%
193
2,800
2,009
15,880
1.2%
17.6%
12.7%
100.0%
2.5%
9.8%
2,354
1,676
1,230
15,880
5,621
14.8%
10.6%
7.7%
100.0%
35.4%
January 1, 2017
11,770
12,547
1,981
January 3, 2016
6,677
1,968
1,975
5 of total
42.1%
12.4%
12.4%
11.9%
9.1%
6.5%
100.0%
44.9%
5.5%
14.9%
8.3%
100.0%
1.9
2012
4.0
2013
1.9
2014
4.3
2016
63
