Ahold, the food retailer, wants to become the best and most successful supermarket operator in the world.

Tuesday, May 11, 1999

Ahold president Cees van der Hoeven at Shareholders' Meeting:

'Ahold to make European acquisition only if it adds considerable value'
Ahold, the food retailer, wants to become the best and most successful supermarket operator in the world. This was one of the key messages Ahold president Cees van der Hoeven delivered to the Annual General Meeting of Stockholders in The Hague today.

Van der Hoeven also announced that Ahold has made an excellent start to 1999. Consolidated sales in the first 16-week quarter of the year rose 27.2% to $ 9.3 billion (approximately USD 10.0 billion). Ahold announces its results over the first quarter on June 10, 1999. Stockholders approved the financial statements and the 1998 final dividend.
The Ahold president confirmed that Ahold is right on track and expects earnings per share, excluding currency fluctuations, to rise by 15 to 20% in 1999 compared to the year before.
European strategy
In his speech to approximately 1,400 stockholders, Van der Hoeven said that Ahold would only pursue a large acquisition or merger in Europe if it 'adds considerable value to our group of companies, if the prospective company's culture matches ours and if it leads to synergy elsewhere in the world. Such an acquisition should benefit all stakeholders.'
Mission and vision
Van der Hoeven confirmed Ahold's intention to become the world's best and most successful supermarket company. 'Let me assure you this is the goal upon which each and every one of us at Ahold is focused,' he said. 'Our vision is to create a network of superior supermarket companies in the world's important trade areas. Individually, these companies should be among the world's best. Jointly, however, they should generate substantial added value, benefiting from the achievement of knowledge transfer and economies of scale. The contours of this network are becoming increasingly visible.'
Steady progress in all trade areas
In his speech, the Ahold president expressed his satisfaction that the integration of Giant-Landover into Ahold's US operations is proceeding well ahead of schedule. He also commented on the acquisition of US supermarket company Pathmark in the New York metropolitan area. In The Netherlands, he added, 'Albert Heijn knows how to retain its customers by keeping its stores in excellent shape, safeguarding high quality, offering plenty of choice, popular new products, appealing produce departments, friendly service and a great price-quality ratio.' In Latin America, Ahold's activities are developing apace. In Asia, Ahold is strengthening its current business base while keeping a close watch on costs ahead of a resurgence of the region's national economies. In Central and Southern Europe, Ahold's stores are improving their performance, increasingly aligning their activities and accelerating the pace of knowledge transfer and the sharing of experience.
1999 outlook confirmed
During the Shareholders' Meeting, the Ahold Corporate Executive Board confirmed its expectation announced in the 1998 Annual Report that all regions will deliver further sales increases in 1999 and that earnings will improve accordingly. 'We anticipate that earnings per share, excluding currency fluctuations, will rise by 15 to 20% in 1999', Van der Hoeven said.
Financial statements and final dividend approved
Stockholders approved Ahold's financial statements and the company's 1998 final dividend proposal. Stockholders can also elect to receive the final dividend in the form of a payout of 2% in common shares. This dividend will be made payable on May 25, 1999. Stockholders also approved all other proposals on the agenda.