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Ahold Sustainability Report Ahold Sustainability Report 2004 P.O. Box 3050 1500 HB Zaandam The Netherlands Telephone: +31 75 659 91 11 Fax: +31 75 659 83 50 Zaandam Trade Register No. 35000363 www.ahold.com Brands of our group For more information: Ahold Sustainability Telephone: +31 75 659 57 25 Fax: +31 75 659 84 05 E-mail: [email protected] P.O. Box 3050 1500 HB Zaandam The Netherlands Telephone: +31 75 659 91 11 With over 200,000 associates and 2004 consolidated net Fax: +31 75 659 83 50 sales of approximately EUR 52 billion, we are one of the Zaandam Trade Register No. 35000363 Design & Realization: Dart Design, Amsterdam world’s leading food providers. Printed by: Hollandia Printing, Heerhugowaard www.ahold.com Ahold Delivering value, driven by values Ahold encompasses an international group of local food retail and foodservice operators that do business under their own brand names. Each week our Company meets the needs of millions of customers, primarily in the United States and Europe. With over 200,000 associates and 2004 consolidated net sales of approximately EUR 52 billion, we are one of the leading food providers in the United States and the most prominent food retailer in the Netherlands. We act for our customers Our customers have been our lifeblood for the last 118 years. We endeavor to earn our customers’ loyalty by delivering value and creating the best overall place to shop. We strive to make every day a little easier for our customers, bringing them interesting and innovative shopping experiences. We are actively engaged in helping the communities we serve. We value our diversity We value the richness of our diversity and respect one another for who we are, how we think and what we contribute. We are committed to developing our associates. We place a high priority on open, honest communication with all of our stakeholders. We have a passion for our business We love being in the food business. We love satisfying our customers’ daily needs. We cooperate to leverage our capabilities, our scale, our strength and our knowledge. We use our know-how to differentiate ourselves and create what we believe is an outstanding customer experience. We are never satisfied in our search for excellence and customer convenience: easy in, easy shop, easy out. 3313334_BW_06.indd13334_BW_06.indd 1 005-05-20055-05-2005 110:25:420:25:42 Message from Anders Moberg Dear Stakeholder, As a food retailer and foodservice company, Ahold plays a part in the everyday lives of our customers and other stakeholders. We stay as close to our customers as we can, and therefore want to remain at the forefront of issues that impact society and the communities in which they live. “ We are on a journey – to strengthen our company, to get closer to our customers and to further develop our approach to sustainability.” 3313334_BW_06.indd13334_BW_06.indd 2 005-05-20055-05-2005 110:25:450:25:45 Message from Anders Moberg Ahold Sustainability Report 2004 3 Global developments in recent decades have raised sustainability to be fully integrated into the way we do awareness of the responsibilities of companies to a whole business, not just organized around reporting. In this new level – from a narrow focus on the environment to the report we strive to present a clear picture of how our recognition that corporations have a much wider impact company currently manages sustainability, discussing our on lives and society. For example, we’re realizing the dilemmas and how we work to create a balance between extent to which our decisions on buying, producing and our customer needs and priorities of other stakeholders. marketing impact individuals and society as a whole. Until the end of 2005, our company will be focused on The dilemmas confronting us are of an ever more complex rebuilding its foundation to create a stronger and more nature, while society’s expectations of companies competitive business for the future. We are creating a continue to rise. At the same time, our businesses common culture based on a set of core values that we operate in a highly competitive environment. Therefore, have developed together. We are installing much stronger we see learning how to operate in terms of a broader corporate governance structures. We are changing the way meaning of “sustainability” within the constraints of what we manage Ahold to bring our Group Support Office and is commercially possible, as a continuous process for our our businesses closer together. We are becoming more of company - and one that never stops. Dialogue with key a learning organization – learning from customers, stakeholders will continue to be an essential part of our associates and other stakeholders and applying this learning process. knowledge to the way we develop and implement our strategy. These processes will also impact how we handle You will see from our report that we are on a journey – sustainability in the future. to strengthen our company, to get closer to our customers and to further develop our approach to sustainability. This report is an important tool in our learning process, It is clearly in our interest to do the utmost to help our and will be used to educate and motivate associates to customers to live healthy lives: in other words, to do consider sustainability when making decisions in their what’s right for the customer. Health relies on many day-to-day work. It is also an important tool in our factors, including diet and lifestyle, and everyone needs dialogue on sustainability with external stakeholders. to take responsibility for the aspect over which they have I invite you to read our report send us your comments influence. As a food provider, we are committed to taking through our website at http://www.ahold.com. our full responsibility by informing consumers well about the products we sell and providing healthy choices. Though our customers are always our primary focus, we also have a wider responsibility in society. For example, it’s difficult for producers in developing countries to get their products to market, for a number of reasons, including regulatory. We want to avoid creating additional barriers through food safety standards, and work to help farmers in developing countries gain access to our markets through projects like ASAP and Utz Kapeh and participating in Fairtrade. In sustainability reporting, as in operating, we will continue to improve, so that we can report according to Anders Moberg market standards in the future. At the same time, we want Ahold President and CEO 3313334_BW_06.indd13334_BW_06.indd 3 005-05-20055-05-2005 110:25:550:25:55 Key figures Financial information: Dutch GAAP (in EUR millions, except per share data) 2004 2003 2002 Net sales 52,000 56,068 62,683 Operating income 208 718 239 Net income / (loss) (436) (1) (1,208) Net cash from operating activities 1,571 1,931 2,455 Net income / (loss) per common share (0.31) (0.04) (1.24) Associate information (in EUR millions) 2004 2003 2002 Average number of associates in full-time equivalents 231,003 262,409 268,846 Salaries and benefi ts 5,574 5,849 6,771 Other social security charges 933 1,074 1,132 Pension costs 242 199 167 Total salaries and benefi ts 6,749 7,122 8,070 Store information 1 2004 2003 2002 Store count of consolidated subsidaries Stop & Shop / Giant-Landover Arena 563 543 525 Giant-Carlisle / Tops Arena 483 481 485 BI-LO / Bruno’s Arena 453 472 628 Albert Heijn Arena 1,628 1,622 1,620 Central Europe Arena 442 428 409 Other Europe 471 1,094 1,322 Rest of World 32 433 620 Total consolidated subsidiaries 4,072 5,073 5,609 Total unconsolidated subsidiaries 3,146 3,347 3,422 Total 7,218 8,420 8,943 1 Includes company operated supermarkets, franchise supermarkets, associated supermarkets as well as specialty retail stores, hypermarkets and convenience stores. 3313334_BW_06.indd13334_BW_06.indd 4 005-05-20055-05-2005 110:26:060:26:06 Ahold CSR Report 2004 5 Report overview How we manage Ahold Page 7 Ahold’s focus through the end of 2005 is on our Road to Recovery strategy, for enhancing our customer offering and improving our long-term competitive strength in all of our market areas. How we manage sustainability Page 15 Being a sustainable company means improving the quality of life of our customers and other stakeholders, now and in the future. The way in which we manage sustainability is closely aligned with how we manage our company. Being a food provider Page 19 Ahold’s definition of quality includes food safety, consumer health, and sustainable production with care for the environment, animals and human beings. Increasingly, our customers shop for healthy choices and products produced in a responsible way. We offer an assortment with choice for all our customers. Managing our workforce Page 33 Each Ahold company is committed to being “a great place to work.” We will be a company reflective and supportive of the communities we serve, where people are treated fairly and experience a fulfilling career through our business growth. Operations and the environment Page 37 Ahold companies are committed to managing well the direct environmental impact of our operations. We aim to minimize our impact where reasonably possible by promoting good environmental practices. Charitable support Page 45 Ahold’s operating companies demonstrate their commitment to the markets and societies in which they operate through direct participation in local community events and by sponsoring charitable causes. Scope of this report This report covers the following retail business arenas of the Ahold group: Stop & Shop/Giant-Landover, Tops/Giant-Carlisle, Albert Heijn and our joint venture partner, ICA AB.
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