Mission statement

Our mission is to become the world's best and most successful food provider. Our strategy is to build a profitable network of food retail and related businesses that are regional leaders and are well positioned to act on developments within the global food industry. While pursuing leadership positions in the markets in which we operate, we tailor our operating and growth strategy to the opportunities and needs presented in each market as identified by local management.

Ahold's most important stakeholders are its customers and therefore the company strives for absolute customer satisfaction. Ahold wants to obtain customer satisfaction with the help of a dedicated workforce of over 350,000 associates, who are committed to the customer and strongly motivated in a fun working environment, characterized by respect for the individual. Ahold aims to provide an excellent and consistent return on its shareholders' investment. Ahold wants to maintain long-term mutually beneficial relationships with partners and suppliers. Ahold aspires to be a good corporate citizen, with an eye on the needs of the local community.

Ahold's objectives are to reach market leadership wherever it operates. Ahold wants to achieve cost leadership in relation to the value proposition it offers customers. Top-line performance is pursued vigorously through brisk autonomous growth as well as through new acquisitions and alliances, and by maintaining a balanced portfolio of investments in mature and growth markets. Ahold is becoming a multi-channel food provider with significant experience in food retail and the food service industry. Ahold is also swiftly developing its position as an e-commerce player.

Profitable growth, both organic and external, is a fundamental part of our strategic mission. Our overall financial target is to double net earnings every five years and to maintain double digit earnings per share growth (excluding currency impact) while improving our return on invested capital. For the years 2000 and 2001 we anticipate earnings per share growth of at least 15% per annum (excluding currency impact). We seek to reach our financial targets by taking advantage of opportunities for cost and expense reductions as well as organic and external growth. We currently anticipate that the majority of our targeted earnings growth in the medium to long term will be derived primarily from our existing operations and, to a lesser extent, from acquisitions. We currently expect to finance smaller acquisitions with cash flow from operations or new borrowings.

To achieve these objectives, Ahold has developed a strategy of building a world class group of food retail and food service companies, working together to mutual advantage. These companies are strongly supported by a global network ensuring optimal economies of scale, benchmarking and the exchange of best practices. Ahold strongly supports healthy, autonomous growth of well-performing companies by prioritizing investments in existing markets. Ahold encourages strengthening of market leadership by continuous innovation, expansion of services and the application of new technologies. Essential to Ahold's acquisition strategy is the degree to which the company to be acquired fits with Ahold geographically, operationally and strategically. Ahold is continuously looking to expand its stable of thoroughbreds by add-on acquisitions as well as stand-alone, wholly-owned acquisitions or alliances. However, Ahold remains increasingly selective due to its conviction that its main strength lies in further improving already high quality companies.

Company fundamentals

· Customer first and foremost
· Worldwide knowledgeable management
· Attractive working environment for all associates
· Consistently superior shareholder returns
· Excellent relationship with partners and suppliers
· Market leader in quality and innovation
· Store brand names stand for value for money
· Clear focus on growth
· Distinct sense of social responsibility
· Global support for local action