Non-GAAP measures continued
Overview
Business review Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
Pro forma
Ahold Delhaize defines the pro forma
information as the combined results of Ahold
and Delhaize in accordance with International
Financial Reporting Standards (IFRS) as issued
by the International Accounting Standards
Board (IASB) and as adopted by the European
Union (EU). These combined results are
adjusted for:
Operating income in local currency
In certain instances operating income is
presented in local currency. Ahold Delhaize’s
management believes this measure provides
better insight into the operating performance
of Ahold Delhaize’s foreign subsidiaries.
The comparable periods for comparable sales
The comparable periods for comparable sales
for the year correspond to the adjusted for
week 53 in 2015.
Total shareholder return
Total shareholder return (TSR) is the sum of
share price growth and dividends paid. In this
report, we disclose TSR as defined for the
purposes of Ahold Delhaize’s Global Reward
Opportunity (GRO) program. A daily TSR index
Exclusion of the performance of remedy
stores and other divestments
Exclusion of merger transaction costs
Inclusion of Purchase Price Allocation (PPA)
effects
Alignment of Global Support Office
functions and related costs
Alignment of foreign exchange rates used
in the translation of foreign group entities
Underlying operating income and margin
Total operating income, adjusted for
impairments of non-current assets, gains and
losses on the sale of assets, restructuring and
related charges, and other unusual items.
Ahold Delhaize’s management believes
this measure provides better insight into the
underlying operating performance of Ahold
Delhaize’s operations.
Underlying income from
continuing operations
Ahold Delhaize defines underlying income
from continuing operations as income
from continuing operations adjusted for (i)
impairments of non-current assets, gains and
losses on the sale of assets, restructuring and
related charges, and other specific items
considered to not be directly related to the
underlying operating performance, (ii) material
non-recurring finance costs and income tax
expense, and (iii) the potential effect of income
tax on all these items.
obtained from Thomson Reuters is averaged
over a six-month period preceding the year-
end (average TSR index). Annual TSR is an
increase in the average TSR index compared
to the average TSR index in the previous year.
Underlying earnings before interest,
taxes, depreciation and amortization,
or underlying EBITDA
Ahold Delhaize defines underlying
EBITDA as underlying operating income
plus depreciation and amortization.
Underlying EBITDA is considered to be a useful
measure for investors to analyze profitability
by eliminating the effects of financing (i.e., net
financial expense), capital investments and
the impact of the purchase price allocation
(i.e., depreciation and amortization).
Underlying earnings per share from
continuing operations
Underlying earnings per share from continuing
operations is calculated as underlying
income from continuing operations, divided
by the weighted average number of
shares outstanding.
Management believes that these non
GAAP financial measures allow for a better
understanding of Ahold Delhaize’s operating
and financial performance. These non-GAAP
financial measures should be considered in
addition to, but not as substitutes for, the most
directly comparable IFRS measures.
