Geo Chapter meeting AmsterdamMay 2013

2

Introducing Ahold; The Corporate Structure…

Audit Committee

Ahold EuropeOperations

Supervisory Board

Remuneration Committee

Selection & AppointmentCommittee

Corporate Executive BoardD. Boer(CEO)

J. Carr (CFO), & L. Hijmans van den Bergh (CCGC)

Ahold USAOperations

Corporate Center200 Employees

Tax

HR

Fin.

Legal

C&B MD

Sander vd Laan(COO)

J. McCann (COO)

Comm Audit

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In Perspective

Corporate Center & Management Layers5,000 employees

Ahold Europe approx.95,000 employees

Ahold USA approx. 115,000 employees

Albert HeijnEtos Gall & Gall

Ahold CentralEurope

Giant Carlisle

Stop & Shop NE

Giant Landover

Stop & Shop Metro NY

AlbertBol.com

4

(Retention) Risk Paradox(financial driven approach vs development driven approach)

High

HighLow

Pro

babi

lity

= C

&B

Impact = MD & Succession Planning

Reduces Risk

Red

uces

Ris

k

Reducing the overall risk as a results of talent leaving thru probability axis:

Increase effectiveness of pay/benefits

Reducing the overall risk as a result of talents leaving thru impact axis:

Inspiring leadership Successful succession planning Training Clear career opportunities Mentor programs

The Deal

5

Total Rewards StrategyPay: Base Salary Short-Term Incentive Mid-Term Incentive Long-Term Incentive

Benefits Pension Car allowance Health Insurance etc.

Learning and Development Education Training (on the job) Career perspective Mentor programs etc.

Work Environment Building Supporting Systems Culture Supervisor etc.

Attracts

Retains

6

The pay component Three components:

Multiyear Incentive Equity

Annual Incentive Cash

Base Salary

Compensation for:

(Out)Performance

Doing your job

Value creation

Fix

ed

0

Va

riab

leS

hor

t

Lo

ng

Design Objectives

Motivate / retain participants Reinforce alignment with shareholder interests and identification with Ahold Simple / easy to understand / administer Defendable publicly / Tabaksblat No particularly negative tax consequences (company or participant) More in line with market practice Overall, the Long-Term Incentive Program should:

Be regarded as a meaningful component of Total Direct Compensation Restore credibility of Long-term Incentive component as a pay component Make it possible for Ahold to attract and retain the best available talent Create corporate glue

Long-term Incentive Equity Component

8

Historical Share Price Development

Global Reward Opportunity 2006 - 2012

Grant Date

Conditional: Waiting period of 3 years

T=3

1. Target grant value: € 900,000

2. Prior year bonus multiplier: example multiple = 1.20

3. Actual grant value: 1.20 x € 900,000 = € 1,080,000

4. Assumed share price: € 10.00

5. # of shares to be granted: € 1,080,000 / € 10.00 = 108,000

6. 50% of the shares granted thru:

the 3-years conditional component

and 50% through the TSR component

T=5

The number of performance shares that will vest is determined by a TSR performance-ranking and the pay out curve.

5-year, TSR component: # of Shares: 54,000

3-year component: # of shares granted: 54,000

Holding period for all shares is five years after date of grant

Vesting condition: employment only

PackageBase salary € 600,000GRO grant : 150%

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Historical overview

Redesign Pay Component:1.benchmarking top structure2.New STI (AIP)3.New LTI (GRO)

2005 2006

1. First vesting of GRO shares

2. GRO wins ‘best plan effective-ness’ award (GEO Paris)

1. Approval In AGM for new Pay Policy CEB

2. Roll out AIP3. Roll out Gro

2009 2011

1. Completion first full GRO cycle

2. Ahold ranks first in the RTSR Peer group resulting in a 150% vesting

3. Transfer to MSSB as administrator GRO

1. Approval in AGM for ‘simplified’ GRO design

2. Roll out of the new design.

3. New website, new logo, explanatory video

1. Assessment of appropriateness design of variable pay components (in light of development in market and new strategy) Evaluation remuneration policy of CEB and rest of population Delinking AIP from Gro and grant at target (multiplier at 1x) Reduce performance period TSR component from five to three years Rescind matching share feature

2. Communication Development of AIP Performance tracker report in close cooperation with finance (please be referred to documents attached) Gro revitalization project

3. Education ELM modules on GRO and The Deal Periodic education sessions with European/CC Reward teams

4. Simplicity Evaluate pay policies (effectiveness current policies, gap analyses, close the gap strategy) Align pay policies where possible Tailor expat policy to new strategy (local plus, short-term exchange etc.)

Effectiveness2013

1. Assessment of appropriateness design of variable pay components

2. Increase effectiveness by better communication

3. Education4. Simplicity &

transparency.

2012Credibility

Grant Date

Conditional: Waiting period of 3 years

T=3

1. Target grant value: € 300,000

2. Prior year bonus multiplier: example multiple = 1.20

3. Actual grant value: 1.20 x € 300,000 = € 360,000

4. Assumed share price: € 10.00

5. # of shares to be granted: € 360,000 / € 10.00 = 36,000

T=5

3-year, RoC: # of Shares: 30,000

3-year, TSR component: # of Shares: 30,000

3-year component: # of shares granted: 36,000

Vesting condition: employment only

No

chan

ge

1. Target grant value: € 600,000

2. Assumed share price: € 10.00

3. # of shares to be granted: € 600,000 / € 10.00 = 60,000

PackageBase salary € 600,000Conditional share grant: 50%Performance share grant: 100%

Biggest changeNo performance hurdle at grant, 50%

TSR and 50% RoC hurdle at vesting.

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Global Reward Opportunity 2013 -

12

Historical Share Price Development

Value delivered through the GRO Program

Recent trends on equity programs

Design Employee share purchase programs Performance share plans

Financial education Responsibility Employer vs employee

Financial Planning

Communication Less technical, more emphasis on intention, objectives

Simplicity

http://www.gro-ahold.com

https://www.youtube.com/watch?feature=player_embedded&v=zUuXBiDrAzY