Financial highlights
Selected financial data
The selected financial data below should be read in conjunction with our consolidated financial statements included in this annual report. The selected financial data as of January 1, 2006 and January 2, 2005 and for the two years then ended have been derived from these consolidated financial statements. The SEC has adopted amendments to Form 20-F related to the first-time adoption of IFRS. These amendments allow us to provide only one year of comparative IFRS financial data. The selected financial data as of December 28, 2003, December 29, 2002 and December 30, 2001 and for the three years then ended have been derived from our consolidated financial statements not included in this annual report and are included in the selected financial data below under US GAAP only.
IFRS differs in certain material respects from US GAAP. We have included an explanation of the principal differences between IFRS and US GAAP relevant to us in Note 37 to our consolidated financial statements included in this annual report.
For information about significant accounting policies, acquisitions and non-current assets held for sale and discontinued operations affecting the periods presented, see the "Management's discussion & analysis" section as well as Notes 3, 4 and 12 to our consolidated financial statements included in this annual report. For information on the changes in equity, see Note 23 to our consolidated financial statements.
Until 2004, we prepared our consolidated financial statements under generally accepted accounting principles in the Netherlands ("Dutch GAAP"). As required by a EU regulation, from 2005 onwards our consolidated financial statements are prepared in accordance with IFRS as adopted by the EU. All standards issued by the International Accounting Standards Board (the "IASB") effective for 2005 and all interpretations issued by the International Financial Reporting Interpretations Committee (the "IFRIC") effective for 2005 have been endorsed by the EU. Reconciliations between Dutch GAAP and IFRS and explanatory narratives are included in Note 36 to the consolidated financial statements, as required by IFRS 1 "First-time Adoption of International Financial Reporting Standards."
IFRS consolidated statements of operations data
| Euros in millions, except margin and per share data | 2005 | 2004 | |
| Net sales | 44,496 | 44,610 | |
| Operating income | 248 | 923 | |
| Operating margin | 0.6% | 2.1% | |
| Income (loss) from continuing operations | (38) | 633 | |
| Income from discontinued operations | 197 | 265 | |
| Net income | 159 | 898 | |
| Net income attributable to common shareholders | 133 | 885 | |
| Income (loss) from continuing operations per common share: | |||
| Basic | (0.04) | 0.40 | |
| Diluted | (0.04) | 0.40 | |
| Income from discontinued operations per common share: | |||
| Basic | 0.13 | 0.17 | |
| Diluted | 0.13 | 0.17 | |
| Net income attributable to common shareholders per share: | |||
| Basic | 0.09 | 0.57 | |
| Diluted | 0.09 | 0.57 |
US GAAP consolidated statements of operations data
| Euros in millions, except per share data | 2005 | 2004 1 | 2003 | 2002 | 2001 | ||||
| Net sales | 44,100 | 43,872 | 45,030 | 50,438 | 44,563 | ||||
| Operating income | 266 | 808 | 995 | 1,226 | 1,304 | ||||
| Income (loss) from continuing operations | (7) | 373 | 182 | 74 | (265) | ||||
| Income (loss) from discontinued operations | (2) | (276) | (771) | (1,827) | 89 | ||||
| Income (loss) before cumulative effect of changes in accounting principles | (9) | 97 | (589) | (1,753) | (176) | ||||
| Net income (loss) | (9) | 89 | (689) | (4,345) | (196) | ||||
| Income (loss) from continuing operations per common share: | |||||||||
| Basic | (0.03) | 0.21 | 0.14 | 0.04 | (0.33) | ||||
| Diluted | (0.03) | 0.21 | 0.14 | 0.04 | (0.33) | ||||
| Income (loss) from discontinued operations per common share: | |||||||||
| Basic | 0.00 | (0.17) | (0.75) | (1.83) | 0.10 | ||||
| Diluted | 0.00 | (0.17) | (0.75) | (1.83) | 0.10 | ||||
| Cumulative effect of changes in accounting principles per common share: | |||||||||
| Basic | 0.00 | (0.01) | (0.10) | (2.59) | (0.02) | ||||
| Diluted | 0.00 | (0.01) | (0.10) | (2.59) | (0.02) | ||||
| Net income (loss) per common share: | |||||||||
| Basic | (0.03) | 0.03 | (0.71) | (4.38) | (0.25) | ||||
| Diluted | (0.03) | 0.03 | (0.71) | (4.38) | (0.25) | ||||
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IFRS consolidated balance sheets data
| Euros in millions, except share data | January 1, 2006 | January 2, 2005 | |
| Total assets | 20,005 | 21,374 | |
| Equity attributable to common shareholders of Ahold | 4,651 | 3,888 | |
| Total share capital | 13,811 | 13,805 | |
| Weighted average number of common shares (in thousands): | |||
| Basic | 1,554,713 | 1,553,007 | |
| Diluted | 1,554,713 | 1,553,240 |
US GAAP consolidated balance sheets data
| Euros in millions, except share data | January 1, 2006 | January 2, 2005 1 | December 28, 2003 | December 29, 2002 | December 30, 2001 | ||||
| Total assets | 26,352 | 26,898 | 30,126 | 32,420 | 40,010 | ||||
| Shareholders' equity | 10,050 | 8,748 | 9,497 | 8,496 | 15,566 | ||||
| Weighted average number of common shares (in thousands): | |||||||||
| Basic | 1,554,713 | 1,553,007 | 1,024,465 | 1,001,347 | 926,736 | ||||
| Diluted | 1,554,713 | 1,553,603 | 1,024,632 | 1,002,301 | 926,736 | ||||
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Other financial information
| Euros in millions, except share and employee data | 2005 | 2004 | ||
| IFRS consolidated statements of cash flows data | ||||
| Net cash from operating activities | 1,897 | 2,193 | ||
| Net cash from investing activities | 159 | (164) | ||
| Net cash from financing activities | (3,193) | (2,004) | ||
| Share data (in thousands) | ||||
| Common shares outstanding at year-end | 1,555,313 | 1,554,263 | ||
| Data per common share | ||||
| Dividends | - | - | ||
| Share price at Euronext | high | 7.45 | 7.40 | |
| Share price at Euronext | low | 5.69 | 5.04 | |
| Share price at Euronext | at year-end | 6.33 | 5.70 | |
| Number of employees 1 | ||||
| Number of employees at year-end in FTE | 167,801 | 206,441 | ||
| Average number of employees in FTE | 168,568 | 231,003 | ||
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Exchange rates
The following table sets forth, for the years indicated, certain information concerning the exchange rate of the U.S. dollar relative to the euro, expressed in U.S. dollar per euro based on the rate in New York City for cable transfers in foreign currencies as certified for customs purposes by the Federal Reserve Bank of New York (the "noon buying rate"):
| Year | Period end | Average | High | Low | ||||
| 2001 | 0.8836 | 0.8950 | 0.9535 | 0.8370 | ||||
| 2002 | 1.0438 | 0.9441 | 1.0438 | 0.8594 | ||||
| 2003 | 1.2429 | 1.1299 | 1.2597 | 1.0361 | ||||
| 2004 | 1.3538 | 1.2487 | 1.3625 | 1.1801 | ||||
| 2005 | 1.1842 | 1.2449 | 1.3476 | 1.1667 |
The rates used in the preparation of our consolidated financial statements may vary in certain minor respects from the noon buying rate.
The following table sets forth the high and low noon buying rates of the U.S. dollar against the euro for each of the last six months. The noon buying rate of the U.S. dollar against the euro as of March 31, 2006 was USD 1.2139 = EUR 1.
| High | Low | ||
| October 2005 | 1.2148 | 1.1914 | |
| November 2005 | 1.2067 | 1.1667 | |
| December 2005 | 1.2041 | 1.1699 | |
| January 2006 | 1.2287 | 1,1980 | |
| February 2006 | 1.2100 | 1.1860 | |
| March 2006 | 1.2197 | 1.1886 |
Fluctuations in the exchange rates between the U.S. dollar and the euro have affected the U.S. dollar equivalent of the euro prices of our common shares on the Official Segment of Euronext Amsterdam N.V.'s stock market ("Euronext Amsterdam" or "Euronext") and, as a result, are likely to have affected the market price of our American Depositary Shares ("ADSs"), evidenced by American Depositary Receipts ("ADRs"), listed on the New York Stock Exchange (the "NYSE"). Such fluctuations will also affect the U.S. dollar amounts received by holders of our ADSs on conversion by The Bank of New York, as depositary (the "Depositary"), of cash dividends, if any, paid in euros on the common shares represented by the ADSs.