##### Table of Contents







UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 20-F

(Mark One)

 ̈REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES
EXCHANGE ACT OF 1934

OR

þANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934

For the fiscal year ended January 3, 2016

OR

 ̈TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the transition period from
 to

OR

 ̈SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company
report

Commission file number: 001-12510

Koninklijke Ahold N.V.

(Exact name of
registrant as specified in its charter)

Royal Ahold

(Translation of registrants name into English)

The Netherlands

(Jurisdiction of
incorporation or organization)

Provincialeweg 11

1506 MA Zaandam

The Netherlands

Tel: +31-88-659-5100

(Address of executive
offices)

Guy Thomson

Provincialeweg 11

1506 MA Zaandam

The Netherlands

Tel: +31-88-659-5100

E-mail: guy.thomson@ahold.com

(Name,
Telephone, E-mail and address of Company Contact Person)



Securities registered or to
be registered pursuant to Section 12(b) of the Act:

Title of each class
                         Name of each exchange on which registered

None

Securities registered or to be registered pursuant to
Section 12(g) of the Act:

None

Securities for which
there is a reporting obligation pursuant to Section 15(d) of the Act:

Ordinary Shares, nominal value 0.01 per share

Indicate the number of outstanding shares of each of the issuers classes of capital or common stock as of the close of the period covered by the annual
report: 818,471,229

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes   ̈    No  þ

If this report is an annual or transition report, indicate by check
mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes   ̈    No  þ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes   ̈    No  þ

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter
period that the registrant was required to submit and post such files).

Yes   ̈    No   ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of accelerated filer
and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer   ̈    Accelerated
filer   ̈    Non-accelerated
filer  þ

Indicate by check mark which basis of
accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP   ̈    International Financial Reporting Standards as issued by the International Accounting

Standards Board  þ  Other   ̈

If Other has been checked in response to the previous
question, indicate by check mark which financial statement item the registrant has elected to follow:

Item 17   ̈    Item 18   ̈

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  ̈    No þ











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EXPLANATORY NOTE

On January 28, 2016, the Securities and Exchange Commission (the SEC) declared effective the Registration Statement on Form F-4 (Commission File No.
333-209098) (Form F-4 Registration Statement) of Koninklijke Ahold N.V., a limited liability company (naamloze vennootschap) incorporated under Dutch law, relating to Koninklijke Ahold N.V.s business combination transaction
with Delhaize Group NV/SA.

Rule 15d-2 (Rule 15d-2) under the Securities Exchange Act of 1934, as amended, provides generally that if a companys
registration statement under the Securities Act of 1933, as amended, does not contain certified financial statements for the companys last full fiscal year preceding the year in which the registration statement becomes effective then the
company must, within the later of 90 days after the effective date of the registration statement or four months following the end of the registrants latest full fiscal year, file a special financial report furnishing certified financial
statements for the last full fiscal year, meeting the requirements of the form appropriate for annual reports of that company. Rule 15d-2 further provides that the special financial report is to be filed under cover of the facing sheet of the form
appropriate for annual reports of the company.

The Form F-4 Registration Statement did not contain the certified financial statements of Koninklijke Ahold N.V. for
the year ended January 3, 2016; therefore, as required by Rule 15d-2, Koninklijke Ahold N.V. is hereby filing the certified financial statements of Koninklijke Ahold N.V. with the SEC under cover of the facing page of an annual report on
Form 20-F.



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##### Table of Contents

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS



|                                                                   |  |  |     | 
|------------------------------------------------------------------ |  |  | --- | 
|Report of Independent Registered Public Accounting Firm            |  |  | 1   | 
|Consolidated Income Statements                                     |  |  | 2   | 
|Consolidated Statements of Comprehensive Income                    |  |  | 3   | 
|Consolidated Balance Sheets                                        |  |  | 4   | 
|Consolidated Statements of Changes in Equity                       |  |  | 5   | 
|Consolidated Statements of Cash Flows                              |  |  | 6   | 
|Notes to the Consolidated Financial Statements                     |  |  | 7   | 
|1 The Company and its operations                                   |  |  | 7   | 
|2 Basis of preparation                                             |  |  | 7   | 
|3 Significant accounting policies                                  |  |  | 9   | 
|4 Acquisitions                                                     |  |  | 23  | 
|5 Assets and liabilities held for sale and discontinued operations |  |  | 24  | 
|6 Segment reporting                                                |  |  | 27  | 
|7 Net sales                                                        |  |  | 30  | 
|8 Expenses by nature                                               |  |  | 30  | 
|9 Net financial expenses                                           |  |  | 31  | 
|10 Income taxes                                                    |  |  | 32  | 
|11 Property, plant and equipment                                   |  |  | 37  | 
|12 Investment property                                             |  |  | 39  | 
|13 Intangible assets                                               |  |  | 41  | 
|14 Investments in joint ventures and associates                    |  |  | 43  | 
|15 Other non-current financial assets                              |  |  | 45  | 
|16 Inventories                                                     |  |  | 46  | 
|17 Receivables                                                     |  |  | 46  | 
|18 Other current financial assets                                  |  |  | 48  | 
|19 Cash and cash equivalents                                       |  |  | 48  | 
|20 Equity attributable to common shareholders                      |  |  | 49  | 
|21 Loans and credit facilities                                     |  |  | 52  | 
|22 Other non-current financial liabilities                         |  |  | 53  | 
|23 Pensions and other post-employment benefits                     |  |  | 56  | 
|24 Provisions                                                      |  |  | 65  | 
|25 Other non-current liabilities                                   |  |  | 68  | 
|26 Other current financial liabilities                             |  |  | 68  | 
|27 Other current liabilities                                       |  |  | 68  | 
|28 Cash flow                                                       |  |  | 69  | 
|29 Earnings per share                                              |  |  | 71  | 
|30 Financial risk management and financial instruments             |  |  | 72  | 
|31 Related party transactions                                      |  |  | 79  | 
|32 Share-based compensation                                        |  |  | 86  | 
|33 Operating leases                                                |  |  | 92  | 
|34 Commitments and contingencies                                   |  |  | 93  | 
|35 Merger with Delhaize                                            |  |  | 99  | 
|36 Subsequent events                                               |  |  | 99  | 
|37 List of subsidiaries, joint ventures and associates             |  |  | 100 | 



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##### Table of Contents

Report of Independent Registered Public Accounting Firm

To the Shareholders of Koninklijke Ahold N.V.

In our opinion, the accompanying
consolidated balance sheets and the related consolidated statements of income, comprehensive income, changes in equity and cash flows present fairly, in all material respects, the financial position of Koninklijke Ahold N.V. and its subsidiaries at
January 3, 2016 and December 28, 2014, and the results of their operations and their cash flows for each of the three years in the period ended January 3, 2016 in conformity with International Financial Reporting Standards as issued
by the International Accounting Standards Board. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our
audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

PricewaterhouseCoopers Accountants N.V.

Amsterdam, The Netherlands

March 2, 2016

/s/ P.J. van Mierlo RA



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##### Table of Contents

Consolidated Income Statements

For the years 2015, 2014 and 2013



|                                                                                |  |      |    |  |      |  |         |      |  |  |         |   |  |  |         |  
|------------------------------------------------------------------------------- |  | ---- | -- |  | ---- |  | ------- | ---- |  |  | ------- | - |  |  | ------- | -
| million, except per share data                                                |  | Note |    |  | 2015 |  |         | 2014 |  |  | 2013    |  
|Net sales                                                                       |  |      | 7  |  |      |  | 38,203  |      |  |  | 32,774  |   |  |  | 32,615  |  
|Cost of sales                                                                   |  |      | 8  |  |      |  | (27,835 | )    |  |  | (24,088 | ) |  |  | (23,933 | )
|Gross profit                                                                    |  |      |    |  |      |  | 10,368  |      |  |  | 8,686   |   |  |  | 8,682   |  
|Selling expenses                                                                |  |      |    |  |      |  | (7,722  | )    |  |  | (6,424  | ) |  |  | (6,293  | )
|General and administrative expenses                                             |  |      |    |  |      |  | (1,328  | )    |  |  | (1,012  | ) |  |  | (1,150  | )
|Total operating expenses                                                        |  |      | 8  |  |      |  | (9,050  | )    |  |  | (7,436  | ) |  |  | (7,443  | )
|                                                                                |  |      |    |  |      |  |         |      |  |  |         |   |  |  |         |  
|Operating income                                                                |  |      |    |  |      |  | 1,318   |      |  |  | 1,250   |   |  |  | 1,239   |  
|Interest income                                                                 |  |      |    |  |      |  | 5       |      |  |  | 6       |   |  |  | 7       |  
|Interest expense                                                                |  |      |    |  |      |  | (235    | )    |  |  | (212    | ) |  |  | (225    | )
|Net interest expense on defined benefit pension plans                           |  |      | 23 |  |      |  | (14     | )    |  |  | (16     | ) |  |  | (24     | )
|Other financial expenses                                                        |  |      |    |  |      |  | (21     | )    |  |  | (13     | ) |  |  | (49     | )
|Net financial expenses                                                          |  |      | 9  |  |      |  | (265    | )    |  |  | (235    | ) |  |  | (291    | )
|                                                                                |  |      |    |  |      |  |         |      |  |  |         |   |  |  |         |  
|Income before income taxes                                                      |  |      |    |  |      |  | 1,053   |      |  |  | 1,015   |   |  |  | 948     |  
|Income taxes                                                                    |  |      | 10 |  |      |  | (224    | )    |  |  | (248    | ) |  |  | (153    | )
|Share in income of joint ventures                                               |  |      | 14 |  |      |  | 20      |      |  |  | 24      |   |  |  | 10      |  
|Income from continuing operations                                               |  |      |    |  |      |  | 849     |      |  |  | 791     |   |  |  | 805     |  
|                                                                                |  |      |    | 
|Income (loss) from discontinued operations                                      |  |      | 5  |  |      |  | 2       |      |  |  | (197    | ) |  |  | 1,732   |  
|Net income                                                                      |  |      |    |  |      |  | 851     |      |  |  | 594     |   |  |  | 2,537   |  
|                                                                                |  |      |    |  |      |  |         |      |  |  |         |   |  |  |         |  
|Attributable to:                                                                |  |      |    |  |      |  |         |      |  |  |         |   |  |  |         |  
|Common shareholders                                                             |  |      |    |  |      |  | 852     |      |  |  | 594     |   |  |  | 2,537   |  
|Non-controlling interests                                                       |  |      |    |  |      |  | (1      | )    |  |  |        |   |  |  |        |  
|Net income                                                                      |  |      |    |  |      |  | 851     |      |  |  | 594     |   |  |  | 2,537   |  
|                                                                                |  |      |    | 
|Earnings per share                                                              |  |      | 29 |  |      |  |         |      |  |  |         |   |  |  |         |  
|                                                                                |  |      |    | 
|Net income per share attributable to common shareholders                        |  |      |    |  |      |  |         |      |  |  |         |   |  |  |         |  
|Basic                                                                           |  |      |    |  |      |  | 1.04    |      |  |  | 0.68    |   |  |  | 2.48    |  
|Diluted                                                                         |  |      |    |  |      |  | 1.02    |      |  |  | 0.67    |   |  |  | 2.39    |  
|Income from continuing operations per share attributable to common shareholders |  |      |    |  |      |  |         |      |  |  |         |   |  |  |         |  
|Basic                                                                           |  |      |    |  |      |  | 1.04    |      |  |  | 0.90    |   |  |  | 0.79    |  
|Diluted                                                                         |  |      |    |  |      |  | 1.02    |      |  |  | 0.88    |   |  |  | 0.77    |  

The accompanying notes are an integral part of these consolidated financial statements.



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##### Table of Contents

Consolidated Statements of Comprehensive Income

For the years 2015, 2014 and 2013



|                                                                                  |  |      |    |  |      |  |       |      |  |  |       |   |  |  |       |  
|--------------------------------------------------------------------------------- |  | ---- | -- |  | ---- |  | ----- | ---- |  |  | ----- | - |  |  | ----- | -
| million                                                                         |  | Note |    |  | 2015 |  |       | 2014 |  |  | 2013  |  
|Net income                                                                        |  |      |    |  |      |  | 851   |      |  |  | 594   |   |  |  | 2,537 |  
|                                                                                  |  |      |    | 
|Remeasurements of defined benefit pension plans                                   |  |      |    |  |      |  |       |      |  |  |       |   |  |  |       |  
|Remeasurements before taxes - income (loss)                                       |  |      | 23 |  |      |  | (53   | )    |  |  | (25   | ) |  |  | 230   |  
|Income taxes                                                                      |  |      | 10 |  |      |  | 11    |      |  |  | 21    |   |  |  | (83   | )
|Other comprehensive income (loss) that will not be reclassified to profit or loss |  |      |    |  |      |  | (42   | )    |  |  | (4    | ) |  |  | 147   |  
|                                                                                  |  |      |    | 
|Currency translation differences in foreign interests:                            |  |      |    |  |      |  |       |      |  |  |       |   |  |  |       |  
|Currency translation differences before taxes from:                               |  |      |    |  |      |  |       |      |  |  |       |   |  |  |       |  
|Continuing operations                                                             |  |      |    |  |      |  | 450   |      |  |  | 389   |   |  |  | (149  | )
|Discontinued operations                                                           |  |      |    |  |      |  |      |      |  |  |      |   |  |  | 30    |  
|Cumulative translation differences from divestments transferred to net income     |  |      | 5  |  |      |  |      |      |  |  |      |   |  |  | (82   | )
|Income taxes                                                                      |  |      | 10 |  |      |  | (1    | )    |  |  |      |   |  |  | 1     |  
|Cash flow hedges:                                                                 |  |      |    |  |      |  |       |      |  |  |       |   |  |  |       |  
|Fair value result in the year                                                     |  |      |    |  |      |  | 39    |      |  |  | (76   | ) |  |  | (10   | )
|Transfers to net income                                                           |  |      |    |  |      |  | (27   | )    |  |  | 9     |   |  |  | 70    |  
|Income taxes                                                                      |  |      | 10 |  |      |  | (3    | )    |  |  | 16    |   |  |  | (15   | )
|Other comprehensive income of joint ventures - net of income taxes:               |  |      |    |  |      |  |       |      |  |  |       |   |  |  |       |  
|Share of other comprehensive income from continuing operations                    |  |      | 14 |  |      |  | 1     |      |  |  |      |   |  |  |      |  
|Other comprehensive loss transferred to net income                                |  |      | 5  |  |      |  |      |      |  |  |      |   |  |  | 9     |  
|Other comprehensive income (loss) reclassifiable to profit or loss                |  |      |    |  |      |  | 459   |      |  |  | 338   |   |  |  | (146  | )
|                                                                                  |  |      |    |  |      |  |       |      |  |  |       |   |  |  |       |  
|Total other comprehensive income                                                  |  |      |    |  |      |  | 417   |      |  |  | 334   |   |  |  | 1     |  
|                                                                                  |  |      |    |  |      |  |       |      |  |  |       |   |  |  |       |  
|Total comprehensive income                                                        |  |      |    |  |      |  | 1,268 |      |  |  | 928   |   |  |  | 2,538 |  
|                                                                                  |  |      |    |  |      |  |       |      |  |  |       |   |  |  |       |  
|Attributable to:                                                                  |  |      |    |  |      |  |       |      |  |  |       |   |  |  |       |  
|Common shareholders                                                               |  |      |    |  |      |  | 1,269 |      |  |  | 928   |   |  |  | 2,538 |  
|Non-controlling interests                                                         |  |      |    |  |      |  | (1    | )    |  |  |      |   |  |  |      |  
|Total comprehensive income                                                        |  |      |    |  |      |  | 1,268 |      |  |  | 928   |   |  |  | 2,538 |  
|                                                                                  |  |      |    |  |      |  |       |      |  |  |       |   |  |  |       |  
|Attributable to:                                                                  |  |      |    |  |      |  |       |      |  |  |       |   |  |  |       |  
|Continuing operations                                                             |  |      |    |  |      |  | 1,266 |      |  |  | 1,125 |   |  |  | 849   |  
|Discontinued operations                                                           |  |      | 5  |  |      |  | 2     |      |  |  | (197  | ) |  |  | 1,689 |  
|Total comprehensive income                                                        |  |      |    |  |      |  | 1,268 |      |  |  | 928   |   |  |  | 2,538 |  

The accompanying notes are an integral part of these consolidated financial statements.



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##### Table of Contents

Consolidated Balance Sheets

For the years 2015 and 2014



|                                             |  |      |    |  |                |  |        |                  |  |  |        | 
|-------------------------------------------- |  | ---- | -- |  | -------------- |  | ------ | ---------------- |  |  | ------ | 
| million                                    |  | Note |    |  | January 3,2016 |  |        | December 28,2014 | 
|Assets                                       |  |      |    |  |                |  |        |                  |  |  |        | 
|Property, plant and equipment                |  |      | 11 |  |                |  | 6,677  |                  |  |  | 6,150  | 
|Investment property                          |  |      | 12 |  |                |  | 580    |                  |  |  | 560    | 
|Intangible assets                            |  |      | 13 |  |                |  | 1,968  |                  |  |  | 1,763  | 
|Investments in joint ventures and associates |  |      | 14 |  |                |  | 212    |                  |  |  | 206    | 
|Other non-current financial assets           |  |      | 15 |  |                |  | 516    |                  |  |  | 482    | 
|Deferred tax assets                          |  |      | 10 |  |                |  | 628    |                  |  |  | 494    | 
|Other non-current assets                     |  |      |    |  |                |  | 39     |                  |  |  | 35     | 
|Total non-current assets                     |  |      |    |  |                |  | 10,620 |                  |  |  | 9,690  | 
|Assets held for sale                         |  |      | 5  |  |                |  | 3      |                  |  |  | 7      | 
|Inventories                                  |  |      | 16 |  |                |  | 1,676  |                  |  |  | 1,589  | 
|Receivables                                  |  |      | 17 |  |                |  | 837    |                  |  |  | 728    | 
|Other current financial assets               |  |      | 18 |  |                |  | 596    |                  |  |  | 323    | 
|Income taxes receivable                      |  |      |    |  |                |  | 14     |                  |  |  | 59     | 
|Prepaid expenses and other current assets    |  |      |    |  |                |  | 308    |                  |  |  | 118    | 
|Cash and cash equivalents                    |  |      | 19 |  |                |  | 1,826  |                  |  |  | 1,624  | 
|Total current assets                         |  |      |    |  |                |  | 5,260  |                  |  |  | 4,448  | 
|Total assets                                 |  |      |    |  |                |  | 15,880 |                  |  |  | 14,138 | 
|                                             |  |      |   
|Equity and liabilities                       |  |      |    |  |                |  |        |                  |  |  |        | 
|Equity attributable to common shareholders   |  |      | 20 |  |                |  | 5,622  |                  |  |  | 4,844  | 
|Non-controlling interests                    |  |      |    |  |                |  | (1     | )                |  |  |       | 
|Group equity                                 |  |      |    |  |                |  | 5,621  |                  |  |  | 4,844  | 
|Loans                                        |  |      | 21 |  |                |  | 1,522  |                  |  |  | 1,410  | 
|Other non-current financial liabilities      |  |      | 22 |  |                |  | 2,187  |                  |  |  | 2,039  | 
|Pensions and other post-employment benefits  |  |      | 23 |  |                |  | 389    |                  |  |  | 290    | 
|Deferred tax liabilities                     |  |      | 10 |  |                |  | 110    |                  |  |  | 150    | 
|Provisions                                   |  |      | 24 |  |                |  | 731    |                  |  |  | 663    | 
|Other non-current liabilities                |  |      | 25 |  |                |  | 318    |                  |  |  | 276    | 
|Total non-current liabilities                |  |      |    |  |                |  | 5,257  |                  |  |  | 4,828  | 
|Accounts payable                             |  |      |    |  |                |  | 2,800  |                  |  |  | 2,655  | 
|Other current financial liabilities          |  |      | 26 |  |                |  | 330    |                  |  |  | 280    | 
|Income taxes payable                         |  |      |    |  |                |  | 39     |                  |  |  | 22     | 
|Provisions                                   |  |      | 24 |  |                |  | 260    |                  |  |  | 240    | 
|Other current liabilities                    |  |      | 27 |  |                |  | 1,573  |                  |  |  | 1,269  | 
|Total current liabilities                    |  |      |    |  |                |  | 5,002  |                  |  |  | 4,466  | 
|Total equity and liabilities                 |  |      |    |  |                |  | 15,880 |                  |  |  | 14,138 | 

The accompanying notes are an integral part of these consolidated financial statements.



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##### Table of Contents

Consolidated Statements of Changes in Equity

For the years 2015, 2014 and 2013



|                                                                      |  |      |    |  |              |  |      |                          |  |  |                            |   |  |                         |      |   |                                            |  |      |                                         |  |  |        |   |  |  |        |  
|--------------------------------------------------------------------- |  | ---- | -- |  | ------------ |  | ---- | ------------------------ |  |  | -------------------------- | - |  | ----------------------- | ---- | - | ------------------------------------------ |  | ---- | --------------------------------------- |  |  | ------ | - |  |  | ------ | -
| million                                                             |  | Note |    |  | Sharecapital |  |      | Additionalpaid-incapital |  |  | Currencytranslationreserve |   |  | Cash flowhedgingreserve |      |   | Other reservesincludingaccumulateddeficit1 |  |      | Equityattributableto commonshareholders | 
|Balance as of December 30, 2012                                       |  |      |    |  |              |  | 318  |                          |  |  | 8,713                      |   |  |                         | (292 | ) |                                            |  | (126 | )                                       |  |  | (3,467 | ) |  |  | 5,146  |  
|Net income attributable to common shareholders                        |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         |     |   |                                            |  |     |                                         |  |  | 2,537  |   |  |  | 2,537  |  
|Other comprehensive income (loss)                                     |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         | (200 | ) |                                            |  | 45   |                                         |  |  | 156    |   |  |  | 1      |  
|Total comprehensive income (loss) attributable to common shareholders |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         | (200 | ) |                                            |  | 45   |                                         |  |  | 2,693  |   |  |  | 2,538  |  
|Dividends                                                             |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         |     |   |                                            |  |     |                                         |  |  | (457   | ) |  |  | (457   | )
|Share buyback                                                         |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         |     |   |                                            |  |     |                                         |  |  | (768   | ) |  |  | (768   | )
|Share-based payments                                                  |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         |     |   |                                            |  |     |                                         |  |  | 61     |   |  |  | 61     |  
|Balance as of December 29, 2013                                       |  |      | 20 |  |              |  | 318  |                          |  |  | 8,713                      |   |  |                         | (492 | ) |                                            |  | (81  | )                                       |  |  | (1,938 | ) |  |  | 6,520  |  
|Net income attributable to common shareholders                        |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         |     |   |                                            |  |     |                                         |  |  | 594    |   |  |  | 594    |  
|Other comprehensive income (loss)                                     |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         | 389  |   |                                            |  | (51  | )                                       |  |  | (4     | ) |  |  | 334    |  
|Total comprehensive income (loss) attributable to common shareholders |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         | 389  |   |                                            |  | (51  | )                                       |  |  | 590    |   |  |  | 928    |  
|Dividends                                                             |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         |     |   |                                            |  |     |                                         |  |  | (414   | ) |  |  | (414   | )
|Capital repayment                                                     |  |      |    |  |              |  | (308 | )                        |  |  | (809                       | ) |  |                         |     |   |                                            |  |     |                                         |  |  | 109    |   |  |  | (1,008 | )
|Share buyback                                                         |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         |     |   |                                            |  |     |                                         |  |  | (1,232 | ) |  |  | (1,232 | )
|Cancelation of treasury shares                                        |  |      |    |  |              |  | (1   | )                        |  |  | (1,060                     | ) |  |                         |     |   |                                            |  |     |                                         |  |  | 1,061  |   |  |  |       |  
|Share-based payments                                                  |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         |     |   |                                            |  |     |                                         |  |  | 50     |   |  |  | 50     |  
|Balance as of December 28, 2014                                       |  |      | 20 |  |              |  | 9    |                          |  |  | 6,844                      |   |  |                         | (103 | ) |                                            |  | (132 | )                                       |  |  | (1,774 | ) |  |  | 4,844  |  
|Net income attributable to common shareholders                        |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         |     |   |                                            |  |     |                                         |  |  | 852    |   |  |  | 852    |  
|Other comprehensive income (loss)                                     |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         | 449  |   |                                            |  | 9    |                                         |  |  | (41    | ) |  |  | 417    |  
|Total comprehensive income attributable to common shareholders        |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         | 449  |   |                                            |  | 9    |                                         |  |  | 811    |   |  |  | 1,269  |  
|Dividends                                                             |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         |     |   |                                            |  |     |                                         |  |  | (396   | ) |  |  | (396   | )
|Share buyback                                                         |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         |     |   |                                            |  |     |                                         |  |  | (161   | ) |  |  | (161   | )
|Cancelation of treasury shares                                        |  |      |    |  |              |  | (1   | )                        |  |  | (785                       | ) |  |                         |     |   |                                            |  |     |                                         |  |  | 786    |   |  |  |       |  
|Share-based payments                                                  |  |      |    |  |              |  |     |                          |  |  |                           |   |  |                         |     |   |                                            |  |     |                                         |  |  | 66     |   |  |  | 66     |  
|Balance as of January 3, 2016                                         |  |      | 20 |  |              |  | 8    |                          |  |  | 6,059                      |   |  |                         | 346  |   |                                            |  | (123 | )                                       |  |  | (668   | ) |  |  | 5,622  |  

|1        Other reserves include the remeasurements of defined benefit plans. | 
|---------------------------------------------------------------------------- | 

The accompanying notes are an integral part of these consolidated financial statements.



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##### Table of Contents

Consolidated Statements of Cash Flows

For the years 2015, 2014 and 2013



|                                                                                  |  |      |    |  |      |  |        |      |  |  |       |   |  |  |        |  
|--------------------------------------------------------------------------------- |  | ---- | -- |  | ---- |  | ------ | ---- |  |  | ----- | - |  |  | ------ | -
| million                                                                         |  | Note |    |  | 2015 |  |        | 2014 |  |  | 2013  |  
|Income from continuing operations                                                 |  |      |    |  |      |  | 849    |      |  |  | 791   |   |  |  | 805    |  
|Adjustments for:                                                                  |  |      |    |  |      |  |        |      |  |  |       |   |  |  |        |  
|Net financial expenses                                                            |  |      |    |  |      |  | 265    |      |  |  | 235   |   |  |  | 291    |  
|Income taxes                                                                      |  |      |    |  |      |  | 224    |      |  |  | 248   |   |  |  | 153    |  
|Share in income (loss) of joint ventures                                          |  |      |    |  |      |  | (20    | )    |  |  | (24   | ) |  |  | (10    | )
|Depreciation, amortization, write-downs and impairments                           |  |      |    |  |      |  | 1,043  |      |  |  | 910   |   |  |  | 916    |  
|Gains on the sale of assets / disposal groups held for sale                       |  |      |    |  |      |  | (18    | )    |  |  | (20   | ) |  |  | (28    | )
|Share-based compensation expenses                                                 |  |      |    |  |      |  | 47     |      |  |  | 43    |   |  |  | 43     |  
|Operating cash flows before changes in operating assets and liabilities           |  |      |    |  |      |  | 2,390  |      |  |  | 2,183 |   |  |  | 2,170  |  
|Changes in working capital:                                                       |  |      |    |  |      |  |        |      |  |  |       |   |  |  |        |  
|Changes in inventories                                                            |  |      |    |  |      |  | 31     |      |  |  | 1     |   |  |  | (13    | )
|Changes in receivables and other current assets                                   |  |      |    |  |      |  | (237   | )    |  |  | (33   | ) |  |  | 73     |  
|Changes in payables and other current liabilities                                 |  |      |    |  |      |  | 215    |      |  |  | 146   |   |  |  | (21    | )
|Changes in other non-current assets, other non-current liabilities and provisions |  |      |    |  |      |  | (33    | )    |  |  | (135  | ) |  |  | (42    | )
|Cash generated from operations                                                    |  |      |    |  |      |  | 2,366  |      |  |  | 2,162 |   |  |  | 2,167  |  
|Income taxes paid - net                                                           |  |      |    |  |      |  | (227   | )    |  |  | (269  | ) |  |  | (116   | )
|Operating cash flows from continuing operations                                   |  |      |    |  |      |  | 2,139  |      |  |  | 1,893 |   |  |  | 2,051  |  
|Operating cash flows from discontinued operations                                 |  |      |    |  |      |  | (6     | )    |  |  | (17   | ) |  |  | (16    | )
|Net cash from operating activities                                                |  |      |    |  |      |  | 2,133  |      |  |  | 1,876 |   |  |  | 2,035  |  
|Purchase of non-current assets                                                    |  |      |    |  |      |  | (804   | )    |  |  | (732  | ) |  |  | (811   | )
|Divestments of assets / disposal groups held for sale                             |  |      |    |  |      |  | 51     |      |  |  | 77    |   |  |  | 52     |  
|Acquisition of businesses, net of cash acquired                                   |  |      | 28 |  |      |  | (150   | )    |  |  | (190  | ) |  |  | (9     | )
|Divestment of businesses, net of cash divested                                    |  |      | 28 |  |      |  |       |      |  |  | (291  | ) |  |  | 2,352  |  
|Changes in short-term deposits and similar instruments                            |  |      |    |  |      |  | (247   | )    |  |  | 1,222 |   |  |  | (1,472 | )
|Dividends received from joint ventures                                            |  |      | 14 |  |      |  | 21     |      |  |  | 18    |   |  |  | 27     |  
|Interest received                                                                 |  |      |    |  |      |  | 4      |      |  |  | 6     |   |  |  | 6      |  
|Other                                                                             |  |      |    |  |      |  | 1      |      |  |  | (1    | ) |  |  | (1     | )
|Investing cash flows from continuing operations                                   |  |      |    |  |      |  | (1,124 | )    |  |  | 109   |   |  |  | 144    |  
|Investing cash flows from discontinued operations                                 |  |      |    |  |      |  |       |      |  |  |      |   |  |  | 135    |  
|Net cash from investing activities                                                |  |      |    |  |      |  | (1,124 | )    |  |  | 109   |   |  |  | 279    |  

|                                                                                     |  |  |    |  |  |  |       |   |  |  |        |   |  |  |        |  
|------------------------------------------------------------------------------------ |  |  | -- |  |  |  | ----- | - |  |  | ------ | - |  |  | ------ | -
|Interest paid                                                                        |  |  |    |  |  |  | (227  | ) |  |  | (207   | ) |  |  | (216   | )
|Repayments of loans                                                                  |  |  |    |  |  |  | (31   | ) |  |  | (24    | ) |  |  | (21    | )
|Repayments of finance lease liabilities                                              |  |  |    |  |  |  | (104  | ) |  |  | (80    | ) |  |  | (73    | )
|Dividends paid on common shares                                                      |  |  | 20 |  |  |  | (396  | ) |  |  | (414   | ) |  |  | (457   | )
|Share buyback                                                                        |  |  | 20 |  |  |  | (161  | ) |  |  | (1,232 | ) |  |  | (768   | )
|Capital repayment                                                                    |  |  | 20 |  |  |  |      |   |  |  | (1,008 | ) |  |  |       |  
|Other cash flows from derivatives                                                    |  |  |    |  |  |  | (22   | ) |  |  | (20    | ) |  |  | (19    | )
|Other                                                                                |  |  |    |  |  |  | 5     |   |  |  | (3     | ) |  |  | (75    | )
|Financing cash flows from continuing operations                                      |  |  |    |  |  |  | (936  | ) |  |  | (2,988 | ) |  |  | (1,629 | )
|Financing cash flows from discontinued operations                                    |  |  |    |  |  |  |      |   |  |  | (2     | ) |  |  | (4     | )
|Net cash from financing activities                                                   |  |  |    |  |  |  | (936  | ) |  |  | (2,990 | ) |  |  | (1,633 | )
|Net cash from operating, investing and financing activities                          |  |  |    |  |  |  | 73    |   |  |  | (1,005 | ) |  |  | 681    |  
|Cash and cash equivalents at the beginning of the period (excluding restricted cash) |  |  | 28 |  |  |  | 1,615 |   |  |  | 2,497  |   |  |  | 1,864  |  
|Effect of exchange rate differences on cash and cash equivalents                     |  |  |    |  |  |  | 131   |   |  |  | 123    |   |  |  | (48    | )
|Cash and cash equivalents at the end of the year (excluding restricted cash)         |  |  | 28 |  |  |  | 1,819 |   |  |  | 1,615  |   |  |  | 2,497  |  

The accompanying notes are an integral part of these consolidated financial statements.



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##### Table of Contents

Notes to the Consolidated Financial Statements

1 The Company and its operations

The principal activity of Koninklijke Ahold N.V. (Ahold or the Company or Group or Ahold group), a public limited liability company with its registered seat in Zaandam,
the Netherlands, is the operation of retail stores in Europe and the United States through subsidiaries and joint ventures. Aholds significant subsidiaries, joint ventures and associates are listed in Note 37.

2 Basis of preparation

These
financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB).

Historical cost is used as the measurement basis unless otherwise indicated.

Aholds financial year is a 52- or 53-week period ending on the Sunday nearest to December 31. Financial year 2015 consisted of 53 weeks and ended on
January 3, 2016. The comparative financial year 2014 consisted of 52 weeks and ended on December 28, 2014. The comparative financial year 2013 consisted of 52 weeks and ended on December 29, 2013.

The consolidated financial statements were authorized for issue by the Supervisory Board on March 2, 2016.

These consolidated financial statements are presented in euros (). The following exchange rates of the euro against
the U.S. dollar ($) and the Czech crown (CZK) have been used in the preparation of these financial statements:



|                               |  |      |        |  |      |  |        |      |  |  |        | 
|------------------------------ |  | ---- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|                               |  | 2015 |        |  | 2014 |  |        | 2013 | 
|U.S. dollar                    |  |      |        |  |      |  |        |      |  |  |        | 
|Average exchange rate          |  |      | 0.9001 |  |      |  | 0.7529 |      |  |  | 0.7533 | 
|Year-end closing exchange rate |  |      | 0.9208 |  |      |  | 0.8213 |      |  |  | 0.7277 | 
|                               |  |      |       
|Czech crown                    |  |      |        |  |      |  |        |      |  |  |        | 
|Average exchange rate          |  |      | 0.0366 |  |      |  | 0.0363 |      |  |  | 0.0385 | 
|Year-end closing exchange rate |  |      | 0.0369 |  |      |  | 0.0360 |      |  |  | 0.0365 | 

The preparation of financial statements requires management to make a number of estimates and assumptions that affect the reported amounts
of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. All assumptions, expectations and forecasts used as a basis for certain estimates within these financial statements represent good faith
assessments of Aholds future performance for which management believes there is a reasonable basis. They involve risks, uncertainties and other factors that could cause the Companys actual future results, performance and achievements to
differ materially from those forecasted. The estimates, assumptions and judgments that management considers most critical relate to:

Vendor
allowances (Notes 3 and 17)



The Company must estimate the allowances that are
earned based on fulfillment of its related obligations, many of which require management to estimate the volume of purchases that will be made during a period of time. The Company must also estimate the amount of related product that has been sold
and the amount that remains in ending inventories and allocate the allowance to cost of sales or inventories accordingly.

Income taxes
(Notes 3, 10 and 34)



The ultimate tax effects of transactions may be uncertain for
a considerable period of time, requiring management to estimate the related current and deferred tax positions. The Company recognizes liabilities for uncertain tax positions when it is more likely than not that additional tax will be due. Judgment
is required in determining whether deferred tax assets are realizable and therefore recognized in the balance sheet.

Intangible assets
(Notes 3, 4 and 13)



Intangible assets acquired in a business acquisition are
stated at fair value, as determined at the date of the acquisition. To determine the fair value at the acquisition date, judgments and estimates are required.



7



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##### Table of Contents

2 Basis of preparation(Continued)



Leases and sale and leaseback transactions (Notes 3, 22 and 33)



The classification of leases as finance leases or operating leases requires judgments about the fair
value of the leased asset, the split of the fair value between land and buildings, the economic life of the asset, whether or not to include renewal options in the lease term and the appropriate discount rate to calculate the present value of the
minimum lease payments.

Revenue recognition with respect to sale and leaseback transactions depends on whether the Company transfers all risks and rewards to the
buyer, does not maintain (or maintains only minor) continuing involvement in the property other than the lease payments and whether the transaction is established at fair value.

Impairments (Notes 3, 8, 11, 12 and 13)



Judgments and estimates are required, not only to determine whether there is an indication that an asset may be impaired, but also whether indications exist that
impairment losses previously recognized may no longer exist or may have decreased (impairment reversal).

Company and multi-employer pension
obligations (Notes 3 and 23)



The present value of the pension obligations depends
on a number of assumptions that are determined on an actuarial basis. The assumptions used in determining the net cost (income) for pensions include the discount rate that should be used to determine the present value of estimated future cash
outflows expected to be required to settle the pension obligations. Other key assumptions comprise longevity and future salary and pension increases. Additional information is disclosed in Note 23.

Provisions and contingencies (Notes 3, 24 and 34)



The recognition of provisions requires estimates and judgment regarding the timing and the amount of outflow of resources. The main estimates are as follows:



| |  |  | Self-insurance program: estimates and assumptions include an estimate of claims incurred but not yet reported, historical loss experience, projected loss development factors, estimated changes in claim reporting
patterns, claim settlement patterns, judicial decisions and legislation.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Loyalty programs: estimated cost of benefits to which customers participating in the loyalty program are entitled, which includes assumptions on redemption rates. These estimates and assumptions apply to all loyalty
programs, irrespective of whether they are accounted for as sales deferrals or provisions for future payments made at redemption.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Claims and legal disputes: management, supported by internal and external legal counsel, where appropriate, determines whether it is more likely than not that an outflow of resources will be required to settle an
obligation. If this is the case, the best estimate of the outflow of resources is recognized.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Severance and termination benefits: the provisions relate to separation plans and agreements and use the best information available at the time. The amounts that are ultimately incurred may change as the plans are
executed.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Onerous contracts: mainly relate to unfavorable lease contracts and include the excess of the unavoidable costs of meeting the obligations under the contracts over the benefits expected to be received under such
contracts.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Fair value measurements

For financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:



| |  | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.
|- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Level 3 inputs are unobservable inputs for the asset or liability.
|- |  | ------------------------------------------------------------------



8



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##### Table of Contents

3 Significant accounting policies

Consolidation

The consolidated financial
statements incorporate the financial figures of the Company and its subsidiaries. Subsidiaries are entities over which the Company has control. The Company controls an entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date that control commences until the date that control ceases. All intra-group transactions,
balances, income and expenses are eliminated upon consolidation. Unrealized losses on intra-group transactions are eliminated, unless the transaction provides evidence of an impairment of the assets transferred.

Non-controlling interests are recorded, as appropriate, on the consolidated balance sheet, in the consolidated income statement, and in the consolidated statement of
comprehensive income for the non-controlling shareholders share in the net assets and the income or loss of subsidiaries. Non-controlling shareholders interest in an acquired subsidiary is initially measured at the non-controlling
interests proportion of the net fair value of the assets, liabilities and contingent liabilities recognized. Ahold does not have subsidiaries with non-controlling interests that are material to the Group.

Foreign currency translation

The financial
statements of subsidiaries, joint ventures and associates are prepared in their functional currencies, which are determined based on the primary economic environment in which they operate. Transactions in currencies other than the functional
currency are recorded at the rates of exchange prevailing on the transaction dates. At each balance sheet date, monetary items denominated in foreign currencies are translated into the entitys functional currency at the then prevailing rates.
Exchange differences arising on the settlement and translation of monetary items are included in net income for the period. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are considered as assets and liabilities
denominated in the functional currency of the foreign entity.

Upon consolidation, the assets and liabilities of subsidiaries with a functional currency other than
the euro are translated into euros using the exchange rates prevailing at the balance sheet date. Income and expense items are translated at the average exchange rates for the respective periods. Exchange rate differences arising during
consolidation and on the translation of investments in subsidiaries are included in other comprehensive income and in equity, in the currency translation reserve. Intercompany loans to and from foreign entities for which settlement is neither
planned nor likely to occur in the foreseeable future are considered to increase or decrease the net investment in that foreign entity; therefore the exchange rate differences relating to these loans are also included in other comprehensive income
and in equity, in the currency translation reserve.

On the disposal of a foreign operation resulting in loss of control, loss of joint control or loss of significant
influence, the related cumulative exchange rate difference that was included in equity is transferred to the consolidated income statement.

Segmentation

Aholds operating segments are
its retail operating companies that engage in business activities from which they earn revenues and incur expenses and whose operating results are regularly reviewed by the Management Board to make decisions about resources to be allocated to the
segments and to assess their performance. In establishing the reportable segments, certain operating segments with similar economic characteristics have been aggregated. As Aholds operating segments offer similar products using complementary
business models, and there is no discernible difference in customer bases, Aholds policy on aggregating its operating segments into reportable segments is based on geography and functional currency.

The segments performance is evaluated against several measures, of which operating income is the most important. Intersegment sales are executed under normal
commercial terms and conditions that would also be available to unrelated third parties. Net sales are attributed to geographic regions based on the location of stores.

Net sales

Ahold generates and recognizes net
sales to retail customers at the point of sale in its stores and upon delivery of goods through its online channel. Ahold also generates revenues from the sale of products to retail franchisees that are recognized upon delivery. Ahold recognizes
franchise fees as revenue when all material services relating to the contract have been substantially performed.



9



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##### Table of Contents

3 Significant accounting policies (continued)



Revenue from the sale of gift cards and gift certificates is recognized when the gift card or gift certificate is redeemed by the retail customer. Future discounts earned by customers in
connection with bonus or loyalty cards and other company-sponsored programs are deferred on the balance sheet at the time of the sale and subsequently recognized in the income statement when redeemed.

Generally, net sales and cost of sales are recorded based on the gross amount received from the customer for products sold and the amount paid to the vendor for products
purchased, excluding sales taxes and value-added taxes. However, for certain products or services, such as sales through its online Plaza platform, the sale of lottery tickets, third-party prepaid phone cards, stamps and public transportation
tickets, Ahold acts as an agent and consequently records the amount of commission income in its net sales.



10



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##### Table of Contents

3 Significant accounting policies(Continued)



Cost of sales

Cost of sales includes the purchase price of the products sold and other costs incurred in bringing the inventories to the location and condition ready for sale. These
costs include costs of purchasing, storing, rent, depreciation of property, plant and equipment, salaries, and transporting products to the extent that it relates to bringing the inventories to the location and condition ready for sale.

Vendor allowances

Ahold receives various types of
vendor allowances. The most common allowances vendors offer are (i) volume allowances, which are off-invoice or amounts billed back to vendors based on the quantity of products sold to customers or purchased from the vendor and
(ii) promotional allowances, which relate to cooperative advertising and market development efforts. Volume allowances are recognized as a reduction of the cost of the related products as they are sold. Promotional allowances are recognized as
a reduction of the cost of the related products when the Company has performed the activities specified in the contract with the vendor. If the contract does not specify any performance criteria, the allowance is recognized over the term of the
contract. Vendor allowances are generally deducted from cost of sales, unless there is clear evidence that they should be classified as revenue or a reimbursement of costs. Ahold recognizes vendor allowances only where there is evidence of a binding
arrangement with the vendor, the amount can be estimated reliably and receipt is probable.

The accounting for vendor allowances requires a number of estimates.
First, the Company must estimate the allowances that are earned based on the fulfillment of its related obligations, many of which require management to estimate the volume of purchases that will be made during a period of time. Second, the Company
needs to estimate the amount of related product that was sold and the amount that remains in ending inventories and accordingly allocate the allowance to cost of sales or inventories. Management makes this estimate based on the turnover of the
inventories and allocates a portion of the related vendor allowance to ending inventories until such product is estimated to have been sold to customers.

Selling expenses

Selling expenses relate to our store and online operations and consist of employees salaries and wages, store
expenses, rent income and rent expense or depreciation related to stores, advertising costs and other selling expenses.

General and
administrative expenses

General and administrative expenses consist of support office employees salaries and wages, rent and depreciation of support
offices, impairment losses and reversals, gains and losses on the sale of non-current assets and disposal groups held for sale, restructuring costs, and other general and administrative expenses.

Share-based compensation

The grant date fair
value of equity-settled share-based compensation plans is expensed, with a corresponding increase in equity, on a straight-line basis over the vesting periods of the grants. The cumulative expense recognized at each balance sheet date reflects the
extent to which the vesting period has expired and the Companys best estimate of the number of shares that will eventually vest. No expense is recognized for awards that do not ultimately vest, except for awards where vesting is conditional
upon a market condition (e.g., total shareholder return). Those are treated as vested irrespective of whether or not the market condition is ultimately satisfied, provided that all non-market conditions (e.g., continued employment) are satisfied.

Income taxes

Income tax expense represents
the sum of current and deferred tax. Income tax is recognized in the income statement except to the extent that it relates to items recognized directly in equity or other comprehensive income. Current tax expense is based on the best estimate of
taxable income for the year, using tax rates that have been enacted or substantively enacted at the balance sheet date and adjustments for current taxes payable (receivable) for prior years. Deferred tax is the tax expected to be payable or
recoverable on differences between the carrying amounts of assets and liabilities and the corresponding tax basis used in the computation of taxable income. Deferred tax assets and liabilities are generally recognized for all temporary differences.
However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a
business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is
realized.

Deferred tax assets, including deferred tax assets for tax loss carryforward positions and tax credit carryforward positions, are recognized to the extent
that it is probable that future taxable income will be available against which temporary differences, unused tax losses or unused tax credits can be utilized. The carrying amount of deferred tax assets is reviewed at each balance sheet date and
reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the assets to be recovered.

Deferred tax
assets and liabilities are not discounted. Deferred income tax assets and liabilities are offset on the balance sheet when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income
taxes relate to income taxes levied by the same fiscal authority. Current income tax assets and liabilities are offset on the balance sheet when there is a legally enforceable right to offset and when the Company intends either to settle on a net
basis or to realize the asset and settle the liability simultaneously.

The ultimate tax effects of some transactions can be uncertain for a considerable period of
time, requiring management to estimate the related current and deferred tax positions. The Company recognizes liabilities for uncertain tax positions when it is more likely than not that additional taxes will be due. These liabilities are presented
as current income taxes payable, except in jurisdictions where prior tax losses are being carried forward to be used to offset future taxes that will be due; in these instances the liabilities are presented as a reduction to deferred tax assets.



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3 Significant accounting policies(Continued)

Non-current assets held for sale and discontinued operations

Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through
continuing use. For this to be the case, the asset (or disposal group) must be available for immediate sale in its present condition and its sale must be highly probable. Non-current assets (or disposal groups) classified as held for sale are
measured at the lower of the assets carrying amount and the fair value less costs of disposal. Depreciation or amortization of an asset ceases when it is classified as held for sale. Equity accounting ceases for an investment in a joint
venture or associate when it is classified as held for sale; instead, dividends received are recognized in the consolidated income statement.

A discontinued
operation is a component of the Company that either has been disposed of or is classified as held for sale, and represents a separate major line of business or geographical area of operations or is part of a single coordinated plan to dispose of a
separate major line of business or geographical area of operations. Results from discontinued operations that are clearly identifiable as part of the component disposed of and that will not be recognized subsequent to the disposal are presented
separately as a single amount in the consolidated income statement. Results and cash flows from discontinued operations are reclassified for prior periods and presented in the financial statements so that the results and cash flows from discontinued
operations relate to all operations that have been discontinued as of the balance sheet date for the latest period presented.

Property,
plant and equipment

Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes
expenditures that are directly attributable to the acquisition or construction of an asset and borrowing costs incurred during construction. Where applicable, estimated asset retirement costs are added to the cost of an asset. Subsequent
expenditures are capitalized only when it is probable that future economic benefits associated with the item will flow to the Company and the costs can be measured reliably. All other subsequent expenditures represent repairs and maintenance and are
expensed as incurred.

Depreciation is computed using the straight-line method based on the estimated useful lives of the items of property, plant and equipment,
taking into account the estimated residual value. Where an item of property, plant and equipment comprises major components having different useful lives, each such part is depreciated separately. The assets useful lives are reviewed at each
balance sheet date and adjusted if appropriate.

The estimated useful lives of property, plant and equipment are:



|                                          |  |  |             | 
|----------------------------------------- |  |  | ----------- | 
|Land                                      |  |  | indefinite  | 
|Buildings                                 |  |  | 30-40 years | 
|Material handling systems (in warehouses) |  |  | 20-30 years | 
|Building components                       |  |  | 7-20 years  | 
|Machinery and equipment                   |  |  | 5-12 years  | 
|Other                                     |  |  | 3-10 years  | 

Depreciation of assets subject to finance leases and leasehold improvements is calculated on a straight-line basis over either the lease
term (including renewal periods when renewal is reasonably assured) or the estimated useful life of the asset, whichever is shorter.

Investment property

Investment property consists
of land and buildings held by Ahold to earn rental income or for capital appreciation, or both. These properties are not used by Ahold in the ordinary course of business. Ahold often owns (or leases under a finance lease) shopping centers containing
both an Ahold store and third-party retail units.

In these cases, the third-party retail units generate rental income, but are primarily of strategic importance for
operating purposes to Ahold in its retail operations. Ahold recognizes the part of an owned (or leased under a finance lease) shopping center that is leased to third-party retailers as investment property, unless it represents an insignificant
portion of the property. Land and buildings leased to franchisees are not considered to be investment property as they contribute directly to Aholds retail operations. Investment property is measured on the same basis as property, plant and
equipment.



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3 Significant accounting policies(Continued)



Leases and sale and
leaseback transactions

Leases

Ahold is a
lessee of land, buildings and equipment under operating and finance lease arrangements. Ahold classifies its leases as finance leases when the lease agreement transfers substantially all of the risks and rewards of ownership to Ahold. For leases
determined to be finance leases, the asset and liability are recognized based on their values at the inception of the lease at an amount equal either to the fair value of the leased asset or the present value of the minimum lease payments during the
lease term, whichever is lower. Lease payments are apportioned between interest charges and a reduction of the lease liability so as to achieve a constant rate of interest on the remaining liability balance. Contingent rentals are expensed as
incurred.

Leases that do not qualify as finance leases are classified as operating leases, and the related lease payments are expensed on a straight-line basis over
the lease term, including, as applicable, any rent-free period during which Ahold has the right to use the asset. Payments made to Ahold representing incentives to sign a new lease or representing reimbursements for leasehold improvements are
deferred and recognized on a straight-line basis over the term of the lease as reductions to rental expense.

For leases with renewal options where the renewal is
reasonably assured, the lease term used to (i) determine the appropriate lease classification, (ii) compute periodic rental expense and (iii) depreciate leasehold improvements (unless their economic lives are shorter) includes the
periods of expected renewals.

Determining whether a lease agreement is a finance or an operating lease requires judgment on various aspects. These include the fair
value of the leased asset, the economic life of the leased asset, whether or not to include renewal options in the lease term and the determination of an appropriate discount rate to calculate the present value of the minimum lease payments.

Sale and leaseback

The gain or loss on sale and operating
leaseback transactions is recognized in the income statement immediately if (i) Ahold does not maintain or maintains only minor continuing involvement in these properties, other than the required lease payments, and (ii) these transactions
occur at fair value. Any gain or loss on sale and finance leaseback transactions is deferred and amortized over the term of the lease. In classifying the leaseback in a sale and leaseback transaction, similar judgments have to be made as described
above under Leases.

In some sale and leaseback arrangements, Ahold sells a property and only leases back a portion of that property. These properties
generally involve shopping centers that contain an Ahold store as well as other stores leased to third-party retailers. In such situations, Ahold recognizes a sale and the resulting profit on the portion of the shopping center that is not leased
back to the extent that (i) the property is sold for fair value and (ii) the risks and rewards of owning stores that are not leased back to Ahold have been fully transferred to the buyer. The leaseback of the Ahold store and any gain on
the sale of the Ahold store is accounted for under the sale and leaseback criteria described above.

In some sale and leaseback arrangements, Ahold subleases the
property to third parties (including franchisees) or maintains a form of continuing involvement in the property sold, such as earn-out provisions or obligations or options to repurchase the property. In such situations, the transaction generally
does not qualify for sale and leaseback accounting, but rather is accounted for as a financing transaction (financing). The carrying amount of the asset remains on the balance sheet and the sale proceeds are recorded as a financing obligation. The
financing obligation is amortized over the lease term. Once Aholds continuing involvement ends, the sale is accounted for under the sale and leaseback criteria described above.

Intangible assets

Goodwill
and impairment of goodwill

Goodwill arises on the acquisition of subsidiaries and represents the excess of the consideration transferred over the
Companys interest in the net fair value of the identifiable assets, liabilities and contingent liabilities at the date of acquisition, and is carried at cost less accumulated impairment losses. Goodwill on acquisitions of joint ventures and
associates is included in the carrying amount of the investment.

For the purposes of impairment testing, goodwill is allocated to each of the cash-generating units
(or groups of cash-generating units) that is expected to benefit from the synergies of a business combination. Goodwill is allocated to a cash-generating unit (or group of cash-generating units) representing the lowest level within the Company at
which the goodwill is monitored for internal management purposes and is never larger than an operating segment before aggregation.



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3 Significant accounting policies(Continued)



Cash-generating units to which goodwill has been
allocated are tested for impairment annually, or more frequently when there is an indication that the cash-generating unit may be impaired. Goodwill on acquisitions of joint ventures and associates is assessed for impairment as part of the
investment whenever there is an indication that the investment may be impaired. An impairment loss is recognized for the amount by which the cash-generating units carrying amount exceeds its recoverable amount. The recoverable amount is the
higher of a cash-generating units fair value less cost to sell and its value in use. An impairment loss is allocated first to reduce the carrying amount of the goodwill and then to the other assets of the cash-generating unit pro-rata on the
basis of the carrying amount of each asset in the cash-generating unit. An impairment loss recognized for goodwill is not reversed in subsequent periods.

On the
partial or complete disposal of an operation, the goodwill attributable to that operation is included in the determination of the gain or loss on disposal.

Other intangible assets

Separately acquired intangible assets and internally developed software are carried at cost less accumulated
amortization and impairment losses. Intangible assets acquired in a business combination are recognized at fair value at the date of acquisition (which is regarded as their cost).

Customer relationships acquired in business acquisitions are stated at fair value determined using an income approach. Direct costs related to the development of software
for internal use are capitalized only if the costs can be measured reliably, technological feasibility has been established, future economic benefits are probable, and the Company intends to complete development and to use the software. All other
costs, including all overhead, general and administrative, and training costs, are expensed as incurred. Lease-related intangible assets, consisting primarily of favorable operating lease contracts acquired in business acquisitions, are measured at
the present value of the amount by which the contract terms are favorable relative to market prices at the date of acquisition.

Amortization is
computed using the straight-line method based on estimated useful lives, which are as follows:



|                          |  |                                         
|------------------------- |  | ----------------------------------------
|Customer relationships    |  | 7-25 years                              
|Software                  |  | 3-10 years                              
|Lease-related intangibles |  | remaining expected duration of the lease
|Brand names               |  | indefinite                              
|Other                     |  | 5-indefinite                            

The useful lives are reviewed at each balance sheet date and adjusted, if appropriate.

Investments in joint arrangements and associates

Investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations each investor has rather
than the legal structure of the joint arrangement. Joint operations arise where Ahold has rights to the assets and obligations relating to the arrangement and therefore accounts for its share of assets, liabilities, revenue and expenses. Joint
ventures arise where Ahold has rights to the net assets of the arrangement and therefore equity accounts for its interest.

Associates are entities over which Ahold
has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Significant influence is the power to participate in the financial and operating policy decisions of the entity but is not
control or joint control over those policies. Associates are accounted for using the equity method.

Under the equity method, investments in joint ventures and
associates are measured initially at cost and subsequently adjusted for post-acquisition changes in Aholds share of the net assets of the investment (net of any accumulated impairment in the value of individual investments). Where necessary,
adjustments are made to the financial figures of joint ventures and associates to ensure consistency with the accounting policies of the Company.

Unrealized gains on
transactions between Ahold and its joint ventures and associates are eliminated to the extent of Aholds stake in these investments. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the assets
transferred.

Impairment of non-current assets other than goodwill

Ahold assesses on a quarterly basis whether there is any indication that non-current assets may be impaired. If indicators of impairment exist, Ahold estimates the
recoverable amount of the asset. If it is not possible to estimate the recoverable amount of an individual asset, Ahold estimates the recoverable amount of the cash-generating unit to which it belongs. Individual stores are considered separate
cash-generating units for impairment testing purposes.

The recoverable amount is the higher of an assets fair value less cost to sell and the assets
value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. An
impairment loss is recognized in the income statement for the amount by which the assets carrying amount exceeds its recoverable amount.



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3 Significant accounting policies (continued)



In subsequent years, Ahold assesses whether indications exist that impairment losses previously recognized for
non-current assets other than goodwill may no longer exist or may have decreased. If any such indication exists, the recoverable amount of that asset is recalculated and, if required, its carrying amount is increased to the revised recoverable
amount. The increase is recognized in operating income as an impairment reversal. An impairment reversal is recognized only if it arises from a change in the assumptions that were used to calculate the recoverable amount. The increase in an
assets carrying amount due to an impairment reversal is limited to the depreciated amount that would have been recognized had the original impairment not occurred.

Inventories

Inventories are stated at the lower
of cost or net realizable value. Cost consists of all costs of purchase, cost of conversion, and other costs incurred in bringing the inventories to their location and condition ready for sale, net of vendor allowances attributable to inventories.
For certain inventories, cost is approximated using the retail method, in which the sales value of the inventories is reduced by the appropriate percentage of gross margin. The cost of inventories is determined using either the first-in, first-out
(FIFO) method or the weighted average cost method, depending on their nature or use. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated marketing, distribution and selling expenses.

Financial instruments

Financial assets and liabilities

Financial assets and
liabilities are recognized when the Company becomes a party to the contractual provisions of a financial instrument. Financial assets are derecognized when the rights to receive cash flows from the financial assets expire, or if the Company
transfers the financial asset to another party and does not retain control or substantially all risks and rewards of the asset. Financial liabilities are derecognized when the Companys obligations specified in the contract expire or are
discharged or canceled. Purchases and sales of financial assets in the normal course of business are accounted for at settlement date (i.e., the date that the asset is delivered to or by the Company).

At initial recognition, management classifies its financial assets as either (i) at fair value through profit or loss, (ii) loans and receivables,
(iii) held to maturity or (iv) available-for-sale, depending on the purpose for which the financial assets were acquired. Financial assets are initially recognized at fair value. For instruments not classified as at fair value through
profit or loss, any directly attributable transaction costs are initially recognized as part of the asset value. Directly attributable transaction costs related to financial assets at fair value through profit or loss are expensed when incurred.

The fair value of quoted investments is based on current bid prices. If the market for a financial asset is not active, or if the financial asset represents an
unlisted security, the Company establishes fair value using valuation techniques. These include the use of recent arms-length transactions, reference to other instruments that are substantially the same, and discounted cash flow analysis,
making maximum use of market inputs. Subsequent to initial recognition, financial assets are measured as described below. At each balance sheet date, the Company assesses whether there is objective evidence that a financial asset or a group of
financial assets is impaired.

Investments at fair value through profit or loss

Investments at fair value through profit or loss are those investments that are either held for trading or designated as such by the Company. A financial asset is
classified as held for trading if it is acquired principally for the purpose of selling in the short term. Derivatives are classified as held for trading unless they are designated as hedges. Financial instruments held for trading are measured at
fair value and changes therein are recognized in the income statement.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are carried at amortized cost
using the effective interest method, less any impairment losses. They are included in current assets, except for loans and receivables with maturities greater than 12 months after the balance sheet date.

Held to maturity financial assets

Held to maturity
financial assets are non-derivative financial assets with fixed or determinable payments and a fixed maturity that the Company has the positive intention and ability to hold to maturity. They are carried at amortized cost using the effective
interest method, less any impairment losses. They are included in current assets, except for held to maturity financial assets with maturities greater than 12 months after the balance sheet date.

Available-for-sale financial assets

Available-for-sale
financial assets are non-derivative financial assets that are either designated in this category of financial assets or not classified in any of the other categories. They are measured at fair value based on quoted market prices with changes therein
recognized directly in equity until the investment is derecognized or determined to be impaired, at which time the cumulative gain or loss previously recorded in equity is transferred to the income statement. Investments in equity instruments that
do not have a quoted market price and whose fair value cannot be reliably measured are carried at cost. Available-for-sale financial assets are included in non-current assets unless management intends to dispose of the investment within 12 months
after the balance sheet date.



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3 Significant accounting policies(Continued)



Cash and cash equivalents

Cash and cash equivalents include all cash on hand balances, checks, debit and credit card receivables, short-term highly liquid cash investments, and time deposits with
original maturities of three months or less. Time deposits and similar instruments with original maturities of more than three months but less than 12 months are classified as other current financial assets. Bank overdrafts are included in
short-term borrowings.

Loans and short-term borrowings

Loans and short-term borrowings are recognized initially at fair value, net of transaction costs incurred. Loans and short-term borrowings are subsequently stated at
amortized cost, unless they are designated as fair value hedges. Any difference between the proceeds and redemption value is recognized in the income statement over the period of the loans and short-term borrowings using the effective interest
method. Loans are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

Derivative financial instruments

All derivative financial
instruments are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. Gains and losses resulting from the fair value
remeasurement are recognized in the income statement as fair value gains (losses) on financial instruments, unless the derivative qualifies and is effective as a hedging instrument in a designated hedging relationship. In order for a derivative
financial instrument to qualify as a hedging instrument for accounting purposes, the Company must document (i) at the inception of the transaction, the relationship between the hedging instrument and the hedged item, as well as its risk
management objectives and strategy for undertaking various hedging transactions and (ii) its assessment, both at hedge inception and on an ongoing basis, of whether the derivative that is used in the hedging transaction is highly effective in
offsetting changes in fair values or cash flows of hedged items. Derivatives that are designated as hedges are accounted for as either cash flow hedges or fair value hedges.

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized initially in the cash flow hedging
reserve, a separate component of equity. The gain or loss relating to the ineffective portion is recognized immediately in the income statement. Amounts accumulated in equity are reclassified into the income statement in the same period in which the
related exposure impacts the income statement. When a cash flow hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecasted transaction
is ultimately recognized in the income statement. When a forecasted transaction is no longer expected to occur, the cumulative gain or loss existing in equity is immediately recognized in the income statement.

Fair value changes of derivative instruments that qualify for fair value hedge accounting treatment are recognized in the income statement in the periods in which they
arise, together with any changes in fair value of the hedged asset or liability. If the hedging instrument no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of the hedged item is amortized in the income
statement over the remaining period to maturity of the hedged item.

Reinsurance assets and liabilities

Under Aholds self-insurance program, part of the insurance risk is ceded under a reinsurance treaty, which is a pooling arrangement between unrelated companies.
Reinsurance assets include estimated receivable balances related to reinsurance contracts purchased by the Company. Reinsurance liabilities represent the expected insurance risks related to reinsurance contracts sold by the Company. Reinsurance
assets and liabilities are measured on a discounted basis using accepted actuarial methods.

Financial guarantees

Financial guarantees are recognized initially as a liability at fair value. Subsequently, the liability is measured at the higher of the best estimate of the expenditure
required to settle the obligation and the amount initially recognized less cumulative amortization.



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3 Significant accounting policies(Continued)



Equity

Equity instruments issued by the Company are recorded at the value of proceeds received. Own equity instruments that are bought back (treasury shares) are deducted from
equity. Incremental costs that are directly attributable to issuing or buying back own equity instruments are recognized directly in equity, net of the related tax. No gain or loss is recognized in the income statement on the purchase, sale,
issuance or cancelation of the Companys own equity instruments.



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3 Significant accounting policies(Continued)



Cumulative preferred financing shares

Cumulative preferred financing shares, for which dividend payments are not at the discretion of the Company, are classified as non-current financial liabilities and are
stated at amortized cost. The dividends on these cumulative preferred financing shares are recognized as interest expense in the income statement, using the effective interest method. From the date when Ahold receives irrevocable notification from a
holder of cumulative preferred financing shares to convert these shares into common shares, the cumulative preferred financing shares are classified as a separate class of equity.

Pension and other post-employment benefits

The
net assets and net liabilities recognized on the consolidated balance sheet for defined benefit plans represent the actual surplus or deficit in Aholds defined benefit plans measured as the present value of the defined benefit obligations less
the fair value of plan assets. Any surplus resulting from this calculation is limited to the present value of available refunds and reductions in future contributions to the plan.

Defined benefit obligations are actuarially calculated on the balance sheet date using the projected unit credit method. The present value of the defined benefit
obligations is determined by discounting the estimated future cash outflows using market yields on high-quality corporate bonds (i.e., bonds rated AA or higher) denominated in the currency in which the benefits will be paid, and that have an average
duration similar to the expected duration of the related pension liabilities.

Defined benefit costs are split into three categories:



| |  |  | Service cost, past service cost, gains and losses on curtailment and settlements
| | - |  | --------------------------------------------------------------------------------



| |  |  | Net interest expense or income
| | - |  | ------------------------------



| |  |  | Remeasurement
| | - |  | -------------

The first category is presented as labor costs within operating earnings. Past-service costs are recognized
in the income statement in the period of plan amendment. Results from curtailments or settlements are recognized immediately.

Past service years within the Dutch
pension fund are calculated based upon a methodology that uses the maximum past service years based on accrued benefits or a participants actual date of hire.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset and is presented within net financial expenses.

Remeasurements, comprising actuarial gains and losses, the effect of the asset ceiling (if applicable) and the return on plan assets (excluding interest) are recognized
immediately in the balance sheet with a charge or credit to other comprehensive income in the period in which it occurs. Remeasurements recorded in other comprehensive income are not recycled to the income statement.

Contributions to defined contribution plans are recognized as an expense when employees have rendered service entitling them to the contributions. Post-employment
benefits provided through industry multi-employer plans, managed by third parties, are generally accounted for under defined contribution criteria.

For other
long-term employee benefits, such as long-service awards, provisions are recognized on the basis of estimates that are consistent with the estimates used for the defined benefit obligations, however discounted using Aholds cost of debt rate.
For these, all actuarial gains and losses are recognized in the income statement immediately.

Provisions

Provisions are recognized when (i) the Company has a present (legal or constructive) obligation as a result of past events, (ii) it is more likely than not that
an outflow of resources will be required to settle the obligation, and (iii) the amount can be reliably estimated. The amount recognized is the best estimate of the expenditure required to settle the obligation. Provisions are discounted
whenever the effect of the time value of money is significant.

The provision for the Companys self-insurance program is recorded based on claims filed and an
estimate of claims incurred but not yet reported. The provision includes expenses incurred in the claim settlement process that can be directly associated with specific claims. Other expenses incurred in the claim settlement process are expensed
when incurred. The Companys estimate of the required liability of such claims is recorded on a discounted basis, utilizing an actuarial method based upon various assumptions that include, but are not limited to, historical loss experience,
projected loss development factors and actual payroll costs.



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3 Significant accounting policies(Continued)



Restructuring-related provisions are recognized when the Company has approved a detailed formal restructuring plan and
the restructuring has either commenced or has been announced to those affected by it. Onerous contract provisions are measured at the amount by which the unavoidable costs to fulfill agreements exceeds the expected benefits from such agreements.



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3 Significant accounting policies(Continued)



New accounting policies effective for 2015

Contributions from employees to defined benefit plansAmendments to IAS 19



The objective of the amendments was to simplify the accounting for contributions that are independent
of the number of years of employee service, for example, employee contributions that are calculated according to a fixed percentage of salary. The simplification was to allow entities the option to recognize employee contributions as a reduction of
service costs in the period in which the related service is rendered, instead of attributing the employee contributions to periods of service. The amendments have no impact on the Group, as Ahold has chosen not to avail itself of the practical
expedient offered in the amendments.

IFRIC 21 Levies



IFRIC 21 addresses the issue of when to recognize a liability to pay a levy imposed by a government. The interpretation defines a levy and specifies that the obligating
event that gives rise to the liability is the activity that triggers the payment of the levy, as identified by legislation. The adoption of IFRIC 21 does not have a significant financial effect on the consolidated financial statements of the Group.

Annual improvements to IFRSs 2010-2012 and to IFRSs 2011-2013



Annual improvements to IFRSs 2010-2012 Cycle and annual improvements to IFRSs 2011-2013 Cycle made a number of amendments to various IFRSs, which did not have a
significant effect on the consolidated financial statements.

New accounting policies not yet effective for 2015

The IASB issued several standards, or revisions to standards, that are not yet effective for 2015, but will become effective in coming years.

Amendments to IAS 1, Disclosure Initiative, clarify existing disclosure requirements. Most of the amendments were made to address interpretations of the
original wording in IAS 1. Specifically, the amendments allow preparers more freedom in applying materiality when deciding what must be disclosed, even if a standard requires specific disclosures. Other disclosure clarifications relate to the
presentation order of notes and the use of subtotals to further disaggregate required disclosures. The amendments to IAS 1 apply prospectively for annual periods beginning on or after January 1, 2016. The Company does not anticipate that the
application of these amendments to IAS 1 will have a significant effect on the results of future consolidated financial statements, but they may alter the manner in which certain financial information is presented.

Amendments to IFRS 10, IFRS 12, and IAS 28, Investment Entities: Applying the Consolidation Exception, made narrow-scope clarifications of guidance.
Specifically, the amendments clarify whether the exemption to present consolidated financial statements is available to a parent entity that is a subsidiary of an investment entity, which subsidiaries of an investment entity should be consolidated
instead of being measured at fair value, and how an entity that is not an investment entity should apply the equity method of accounting for its investment in an associate or joint venture that is an investment entity. The amendments to IFRS 10,
IFRS 12, and IAS 28 apply prospectively for annual periods beginning on or after January 1, 2016. Because Ahold is not an investment entity, nor does it have investments in an investment entity, these amendments will not have an effect on the
future consolidated financial statements.

IFRS 9, Financial Instruments, addresses the classification, measurement and recognition of financial assets
and financial liabilities. Based on Aholds current financial position, the Company anticipates that the application of IFRS 9 in the future may have an impact on amounts reported in respect of the Companys financial assets and financial
liabilities. However, it is not practicable to provide a reasonable estimate of the effect of IFRS 9 until a detailed review has been completed. IFRS 9, as amended in July 2014, is effective for annual periods beginning on or after January 1,
2018.

IFRS 15, Revenue from Contracts with Customers, establishes a single comprehensive model for entities to use in accounting for revenue from
contracts with customers. IFRS 15 will supersede the current revenue recognition guidance including IAS 18 Revenue, IAS 11 Construction Contracts, and the related Interpretations when it becomes effective for annual periods
beginning on or after January 1, 2018. Under IFRS 15, an entity recognizes revenue when (or as) a performance obligation is satisfied, i.e., when control of the goods or services underlying the particular performance obligation is
transferred to the customer.



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More prescriptive guidance has been added in IFRS to deal with specific scenarios. Furthermore, extensive disclosures are required by IFRS 15. The Company is in the process of evaluating the full
impact of IFRS 15, but to date has not identified issues that would have a significant effect on the future consolidated financial statements.

IFRS 16,
Leases, eliminates the current dual accounting model for lessees, which distinguishes between on-balance sheet finance leases and off-balance sheet operating leases. Instead, there is a single, on-balance sheet accounting model that is
similar to current finance lease accounting. The Company anticipates that the application of IFRS 16 will have a significant effect on its reported assets and liabilities, and operating and financing expenses. However, it is not practicable to
provide a reasonable estimate of the effect of IFRS 16 until a detailed review has been completed. IFRS 16 is effective for annual periods beginning on or after January 1, 2019.



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##### Table of Contents

3 Significant accounting policies(Continued)



Amendments to IFRS 11, Accounting for Acquisitions of Interests in Joint Operations, provide guidance on how
to account for the acquisition of a joint operation that constitutes a business as defined in IFRS 3 Business Combinations. Specifically, the amendments state that the relevant principles on accounting for business combinations in IFRS 3
and other standards should be applied. The amendments to IFRS 11 apply prospectively for annual periods beginning on or after January 1, 2016. Based on Aholds current financial position, the Company does not anticipate that the
application of these amendments to IFRS 11 will have a significant effect on the future consolidated financial statements.

Amendments to IAS 12, Income
Taxes, were made to address diversity in practice surrounding the recognition of deferred tax assets for unrealized losses on debt instruments measured at fair value, as well as provide additional guidance on how deductible temporary
differences should be measured in situations when tax law limits the offsetting of certain types of losses against specific sources of taxable profits. The amendments to IAS 12 apply prospectively for annual periods beginning on or after
January 1, 2017. The Company is in the process of evaluating the full impact of the amendments.

Amendments to IAS 16 and IAS 38, Clarification of
Acceptable Methods of Depreciation and Amortization, prohibit entities from using a revenue-based depreciation method for items of property, plant and equipment and introduce a rebuttable presumption that revenue is not an appropriate basis
for amortization of an intangible asset. The amendments apply prospectively for annual periods beginning on or after January 1, 2016. Currently the Company uses the straight-line method for depreciation and amortization of property, plant and
equipment, and intangible assets, respectively. The Company believes that the straight-line method is the most appropriate method to reflect consumption of economic benefits in the respective assets and accordingly does not anticipate that the
application of these amendments will have a significant effect on the future consolidated financial statements.

Narrow-scope amendments to IAS 27, Equity
Method in Separate Financial Statements, will allow entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. The amendments are effective for annual
periods beginning on or after January 1, 2016, and are to be applied retrospectively. Based on Aholds current financial position, these amendments will not have an effect on the future consolidated financial statements.

Narrow-scope amendments to IFRS 10 and IAS 28, Sale or Contribution of Assets between an Investor and its Associate or Joint Venture, clarified an
inconsistency between these standards with regard to the sale or contribution of assets between an investor and its associate or joint venture. Following the amendments, a full gain or loss is recognized when a transaction involves a business
(whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary. The Company has yet to assess the
amendments full impact. The amendments effective date has been postponed by the IASB and a new effective date has not been identified.

Annual
improvements to IFRSs 2012-2014 Cycle made a number of amendments to various IFRSs, which, based on Aholds current financial position, the Company anticipates will not have a significant effect on the future consolidated financial statements.
The amendments are summarized as follows:



| |  |  | The amendments to IFRS 5, Non-current Assets Held for Sale and Discontinued Operations, added specific guidance for cases in which an entity reclassifies an asset from held for sale to held for distribution
to shareholders or vice versa and cases in which held-for-distribution accounting is discontinued.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The amendments to IFRS 7, Financial Instruments: Disclosures, include a description of the term continuing involvement for the purpose of the transfer disclosures.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The amendments to IAS 19, Employee Benefits, clarify that the high-quality corporate bonds used in estimating the discount rate for post-employment benefits should be denominated in the same currency as the
benefits to be paid.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

There are no other IFRSs or IFRIC interpretations that have been issued but are not yet effective that are expected to have a
material effect on the future consolidated financial statements.



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##### Table of Contents

4 Acquisitions

2015 acquisitions

A&P
stores in the United States

On July 20, 2015, Ahold announced that it had entered into an agreement with The Great Atlantic & Pacific Tea
Company to acquire 25 A&P stores in Greater New York. On October 8, 2015, all conditions had been met and Ahold commenced its purchase of 25 former A&P stores. The purchase and conversion of the stores were completed by mid-November
2015. The purchase price for all of the stores, inventory and other working capital items is $154 million (141 million). Goodwill recognized in the amount of $104 million (96 million), of which $59 million (54 million) will be deductible for tax purposes, represents expected synergies from the combination of
operations.

From the date of acquisition, the stores contributed $140 million (129 million) to 2015 net sales
and lowered net income by $11 million (10 million) in 2015. The impact excludes $4 million (3 million) in transaction costs related to the
acquisition, which are included in general and administrative expenses. It is not practicable to provide the 2015 pro-forma effect on Aholds net sales and net income.

Jumbo

On August 14, 2012, Ahold announced that its
Albert Heijn division had completed the transaction with Jumbo concerning 78 C1000 and four Jumbo stores for a total consideration of 290 million in cash. A net amount of 260 million was paid by January 3, 2016 (2015: credit 6 million, 2014:
2 million, 2013: credit 1 million and 2012: 265 million) in relation to
the transferred stores. As of January 3, 2016, Ahold reached agreement with 75 franchisees, of which 71 stores had been converted and opened under the Albert Heijn banner and four stores had been divested upon acquisition. For the
remaining seven stores, Ahold did not reach agreements with the franchisees and these stores were transferred back to Jumbo. In 2015 and 2014, Ahold recognized 9 million and 8 million, respectively, of impairment losses for the prepaid consideration (2013: nil). Goodwill recognized in the amount of 234
million by January 3, 2016 (2015: 60 million, 2014: 45 million, 2013:
76 million and 2012: 53 million), which will not be deductible for tax purposes, represents expected synergies from the combination of
operations, as well as the ability to expand Aholds geographic reach.

The 17 stores that were converted to the Albert Heijn banner through 2015 have
contributed 80 million to 2015 net sales and an insignificant amount to 2015 net income. It is not practicable to provide the 2015 pro-forma effect on Aholds net sales and net income.

Other 2015 acquisitions

During 2015, Ahold
completed several minor store acquisitions for a combined purchase consideration of 15 million.

All
acquisitions were accounted for using the acquisition method of accounting.



23



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##### Table of Contents

4 Acquisitions (continued)



The allocation of the fair value of the net assets acquired and the goodwill arising from the
acquisitions during 2015 are as follows:



|                                    |  |     |      |   |       |  |     |       |  |  |       |   |  |  |      |  
|----------------------------------- |  | --- | ---- | - | ----- |  | --- | ----- |  |  | ----- | - |  |  | ---- | -
| million                           |  | A&P |      |   | Jumbo |  |     | Other |  |  | Total |  
|Property, plant and equipment       |  |     | 134  |   |       |  |    |       |  |  | 1     |   |  |  | 135  |  
|Goodwill                            |  |     | 96   |   |       |  | 60  |       |  |  | 18    |   |  |  | 174  |  
|Other intangible assets             |  |     | 49   |   |       |  |    |       |  |  | 2     |   |  |  | 51   |  
|Reversal of other intangible assets |  |     |     |   |       |  | (66 | )     |  |  |      |   |  |  | (66  | )
|Deferred tax asset                  |  |     | 26   |   |       |  |    |       |  |  | 1     |   |  |  | 27   |  
|Current assets                      |  |     | 6    |   |       |  |    |       |  |  | (3    | ) |  |  | 3    |  
|Non-current liabilities             |  |     | (153 | ) |       |  |    |       |  |  | (4    | ) |  |  | (157 | )
|Current liabilities                 |  |     | (17  | ) |       |  |    |       |  |  |      |   |  |  | (17  | )
|Total purchase consideration        |  |     | 141  |   |       |  | (6  | )     |  |  | 15    |   |  |  | 150  |  

5 Assets and liabilities held for sale and discontinued operations

Assets and liabilities held for sale



|                                                     |  |                |   |  |                  |  |   | 
|---------------------------------------------------- |  | -------------- | - |  | ---------------- |  | - | 
| million                                            |  | January 3,2016 |   |  | December 28,2014 | 
|Non-current assets and disposal groups held for sale |  |                | 3 |  |                  |  | 7 | 
|Total assets held for sale                           |  |                | 3 |  |                  |  | 7 | 

The non-current assets and disposal groups held for sale at January 3, 2016 consist primarily of property, plant and equipment.



24



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##### Table of Contents

5 Assets and liabilities held for sale and discontinued operations (continued)



Discontinued operations

Income (loss) from discontinued operations is specified as follows:



|                                                                |  |      |   |  |      |  |      |      |  |  |       |  
|--------------------------------------------------------------- |  | ---- | - |  | ---- |  | ---- | ---- |  |  | ----- | -
| million                                                       |  | 2015 |   |  | 2014 |  |      | 2013 | 
|Slovakia                                                        |  |      |  |  |      |  | (2   | )    |  |  | (3    | )
|ICA                                                             |  |      |  |  |      |  |     |      |  |  | 137   |  
|Other1                                                          |  |      |  |  |      |  | (1   | )    |  |  | 2     |  
|Operating results from discontinued
operations2                 |  |      |  |  |      |  | (3   | )    |  |  | 136   |  
|U.S. Foodservice                                                |  |      |  |  |      |  | (194 | )    |  |  | (10   | )
|Slovakia                                                        |  |      |  |  |      |  | (1   | )    |  |  | (20   | )
|ICA                                                             |  |      |  |  |      |  |     |      |  |  | 1,614 |  
|BI-LO / Brunos                                                 |  |      | 1 |  |      |  | 1    |      |  |  | 3     |  
|Other1                                                          |  |      | 1 |  |      |  |     |      |  |  | 9     |  
|Results on divestments3                                         |  |      | 2 |  |      |  | (194 | )    |  |  | 1,596 |  
|Income (loss) from discontinued operations, net of income taxes |  |      | 2 |  |      |  | (197 | )    |  |  | 1,732 |  

1 Includes adjustments to the results on various other discontinued operations and past divestments.

2 Operating results from discontinued operations are after net income tax benefits of nil, 2 million and 8 million in 2015, 2014 and 2013, respectively.

3 Results on divestments are after net income tax expense of 1 million and tax benefits of 28 million and 9 million in 2015, 2014 and
2013, respectively.

See Note 28for the reconciliation between results on divestments of discontinued operations and cash received.

U.S. Foodservice

In connection with the settlement
agreement Ahold signed to settle a class action relating to pricing practices of Aholds former subsidiary, in 2014 Ahold recorded a provision in the amount of 187 million net of
income tax benefits of 28 million. Also included in results from divestments in 2014 were legal costs of 7 million (2013: 10 million).

Slovakia

On November 14, 2013, it was announced that Ahold had reached an agreement with Condorum regarding the sale of Aholds Slovakian business. Upon the sale
agreement, Ahold Slovakia qualified as a held for sale and discontinued operation. On April 15, 2014, it was announced that the transaction was completed.



25



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##### Table of Contents

5 Assets and liabilities held for sale and discontinued operations (continued)



The 2014 operating result of Ahold Slovakia as included in the operating results from discontinued
operations was a loss of 2 million (2013: 3 million) as presented below.



|                                                                    |  |      |   |  |      |  |     |      |  |  |      |  
|------------------------------------------------------------------- |  | ---- | - |  | ---- |  | --- | ---- |  |  | ---- | -
| million                                                           |  | 2015 |   |  | 2014 |  |     | 2013 | 
|Net sales                                                           |  |      |  |  |      |  | 29  |      |  |  | 139  |  
|Cost of sales                                                       |  |      |  |  |      |  | (22 | )    |  |  | (105 | )
|Gross profit                                                        |  |      |  |  |      |  | 7   |      |  |  | 34   |  
|Total operating expenses                                            |  |      |  |  |      |  | (9  | )    |  |  | (44  | )
|Operating loss                                                      |  |      |  |  |      |  | (2  | )    |  |  | (10  | )
|Net financial expenses                                              |  |      |  |  |      |  |    |      |  |  | (2   | )
|Loss before income taxes                                            |  |      |  |  |      |  | (2  | )    |  |  | (12  | )
|Income taxes 1                                                      |  |      |  |  |      |  |    |      |  |  | 9    |  
|Operating results from discontinued operations, net of income taxes |  |      |  |  |      |  | (2  | )    |  |  | (3   | )

1. Included in income tax benefits of 2013 was a 6 million deferred tax asset
recognized for 2012 operating losses which was not recognized in the respective period as it was assessed to be not recoverable unless Ahold was to cease operating in Slovakia.

Upon the divestment in the first quarter of 2014, Ahold recorded a loss of 2 million, offset by a net tax
benefit of 1 million as presented below. In 2013, in connection with this divestment Ahold had recorded a loss of 29 million,
offset by a net tax benefit of 9 million. Included in the loss on divestment recorded in 2013 was impairment loss on the measurement to fair value less cost of disposal of 16 million and an onerous contract provision of 12 million.



|                                         |  |      |     |  
|---------------------------------------- |  | ---- | --- | -
| million                                |  | 2014 |    
|Proceeds net of cost of disposal         |  |      | (34 | )
|Net liabilities divested                 |  |      | 21  |  
|Use of provision on loss on divestment   |  |      | 12  |  
|Recognition of financial guarantee       |  |      | (1  | )
|Result on divestment before income taxes |  |      | (2  | )
|Income taxes                             |  |      | 1   |  
|Result on divestment of Slovakia         |  |      | (1  | )

ICA

On February 10,
2013, Ahold reached a sale agreement with Hakon Invest regarding its 60% holding in ICA for proceeds of SEK 20 billion. Upon the sale agreement, Aholds investment in ICA was classified as a discontinued operation and the transaction was
completed on March 27, 2013.

The 2013 operating results from discontinued operations included Aholds proportionate share in ICAs operating results
for the month of January 2013 of a 2 million loss, as well as a dividend of SEK 1.2 billion (142 million) received from ICA. The
expected cash flows from the receipt of the dividend were subject to a cash flow hedge and, consequently, Ahold recognized 139 million of dividend income (142 million dividend receivable at the date of recognition less the effect of the cash flow hedge of 3 million).



26



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##### Table of Contents

5 Assets and liabilities held for sale and discontinued operations (continued)



In 2013, Ahold recorded a gain of
1,614 million as a result on divestment of ICA as presented below:



|                                                                                        |  |      |       |  
|--------------------------------------------------------------------------------------- |  | ---- | ----- | -
| million                                                                               |  | 2013 |      
|Proceeds net of cost of disposal                                                        |  |      | 2,368 |  
|Net assets divested                                                                     |  |      | (828  | )
|Results on divestment before recycling of currency exchange differences and other items |  |      | 1,540 |  
|Currency exchange differences transferred from equity                                   |  |      | 82    |  
|Other items previously recognized in other comprehensive income                         |  |      | (9    | )
|Results on divestments before income taxes                                              |  |      | 1,613 |  
|Income taxes                                                                            |  |      | 1     |  
|Result on divestment of ICA                                                             |  |      | 1,614 |  

BI-Lo / Brunos

Two
former subsidiaries of Ahold, BI-LO, LLC and Brunos Supermarkets, LLC (BI-LO and Brunos), filed for protection under Chapter 11 of the U.S. Bankruptcy Code in 2009. Related to obligations under the lease guarantees, the Company
recognized a provision, after tax, of 62 million in 2009. In 2010, the reorganized BI-LO exited bankruptcy protection. In 2015, Ahold recognized a reduction of 1 million (2014: a reduction of 1 million, 2013: a reduction of 3 million) in
its provision, after tax, within results on divestments. For a description of the remaining provisions, see Note 34.

6 Segment reporting

Reportable segments

Aholds retail operations are presented in three reportable segments. In addition, Other retail, consisting of Aholds unconsolidated joint venture JMR, and
Aholds Corporate Center are presented separately. In 2013, Aholds previously reported segment Other Europe has been renamed Czech Republic following the classification of Aholds business in Slovakia as a
discontinued operation. The accounting policies used for the segments are the same as the accounting policies used for the consolidated financial statements as described in Note 3.



27



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##### Table of Contents

6 Segment reporting (continued)



Operating companies in all reportable segments sell a wide range of perishable and non-perishable
food and non-food consumer products.



|                   |  |                                                                                               
|------------------ |  | ----------------------------------------------------------------------------------------------
|Reportable segment |  | Operating segments included in the Reportable segment                                         
|Ahold USA          |  | Stop & Shop New England, Stop & Shop New York Metro, Giant Landover, Giant Carlisle and Peapod
|The Netherlands    |  | Albert Heijn (including the Netherlands, Belgium and Germany), Etos, Gall & Gall and bol.com  
|Czech Republic     |  | Albert                                                                                        



|                 |  |                                                                            
|---------------- |  | ---------------------------------------------------------------------------
|Other            |  | Included in Other                                                          
|Other retail     |  | Unconsolidated joint venture JMR (49%)                                     
|Corporate Center |  | Corporate Center staff (the Netherlands, Switzerland and the United States)

Net sales



|                |  |      |        |  |      |  |        |      |  |  |        | 
|--------------- |  | ---- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
| million       |  | 2015 |        |  | 2014 |  |        | 2013 | 
|Ahold USA       |  |      | 23,732 |  |      |  | 19,557 |      |  |  | 19,676 | 
|The Netherlands |  |      | 12,699 |  |      |  | 11,696 |      |  |  | 11,494 | 
|Czech Republic  |  |      | 1,772  |  |      |  | 1,521  |      |  |  | 1,445  | 
|Ahold group     |  |      | 38,203 |  |      |  | 32,774 |      |  |  | 32,615 | 

Operating income



|                 |  |      |       |   |      |  |       |      |  |  |       |  
|---------------- |  | ---- | ----- | - | ---- |  | ----- | ---- |  |  | ----- | -
| million        |  | 2015 |       |   | 2014 |  |       | 2013 | 
|Ahold USA        |  |      | 878   |   |      |  | 727   |      |  |  | 663   |  
|The Netherlands  |  |      | 557   |   |      |  | 584   |      |  |  | 612   |  
|Czech Republic   |  |      | 11    |   |      |  | 13    |      |  |  | 31    |  
|Corporate Center |  |      | (128  | ) |      |  | (74   | )    |  |  | (67   | )
|Ahold group      |  |      | 1,318 |   |      |  | 1,250 |      |  |  | 1,239 |  

Additions to property, plant and equipment, investment property, and intangible assets (including assets
acquired through business combinations)



|                                                                                 |  |      |       |  |      |  |       |      |  |  |     | 
|-------------------------------------------------------------------------------- |  | ---- | ----- |  | ---- |  | ----- | ---- |  |  | --- | 
| million                                                                        |  | 2015 |       |  | 2014 |  |       | 2013 | 
|Ahold USA                                                                        |  |      | 770   |  |      |  | 390   |      |  |  | 519 | 
|The Netherlands                                                                  |  |      | 342   |  |      |  | 332   |      |  |  | 289 | 
|Czech Republic (and Slovakia, prior to classification as discontinued operation) |  |      | 57    |  |      |  | 263   |      |  |  | 34  | 
|Corporate Center                                                                 |  |      | 3     |  |      |  | 21    |      |  |  | 1   | 
|Ahold group                                                                      |  |      | 1,172 |  |      |  | 1,006 |      |  |  | 843 | 



28



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##### Table of Contents

6 Segment reporting (continued)



Depreciation and amortization of property, plant and equipment,
investment property, and intangible assets



|                 |  |      |       |  |      |  |     |      |  |  |     | 
|---------------- |  | ---- | ----- |  | ---- |  | --- | ---- |  |  | --- | 
| million        |  | 2015 |       |  | 2014 |  |     | 2013 | 
|Ahold USA        |  |      | 676   |  |      |  | 566 |      |  |  | 544 | 
|The Netherlands  |  |      | 272   |  |      |  | 269 |      |  |  | 245 | 
|Czech Republic   |  |      | 53    |  |      |  | 42  |      |  |  | 35  | 
|Corporate Center |  |      | 3     |  |      |  | 2   |      |  |  | 1   | 
|Ahold group      |  |      | 1,004 |  |      |  | 879 |      |  |  | 825 | 

Net impairments of property, plant and equipment, investment property and intangible assets, and write-downs of
intangible assets under development



|                |  |      |    |  |      |  |    |      |  |  |    |  
|--------------- |  | ---- | -- |  | ---- |  | -- | ---- |  |  | -- | -
| million       |  | 2015 |    |  | 2014 |  |    | 2013 | 
|Ahold USA       |  |      | 20 |  |      |  | 10 |      |  |  | 83 |  
|The Netherlands |  |      | 19 |  |      |  | 21 |      |  |  | 9  |  
|Czech Republic  |  |      |   |  |      |  |   |      |  |  | (1 | )
|Ahold group     |  |      | 39 |  |      |  | 31 |      |  |  | 91 |  

Non-current assets (property, plant and equipment, investment property, and intangible assets)



|                 |  |      |       |  |      |  |       |      |  |  |       | 
|---------------- |  | ---- | ----- |  | ---- |  | ----- | ---- |  |  | ----- | 
| million        |  | 2015 |       |  | 2014 |  |       | 2013 | 
|Ahold USA        |  |      | 6,129 |  |      |  | 5,419 |      |  |  | 5,005 | 
|The Netherlands  |  |      | 2,460 |  |      |  | 2,435 |      |  |  | 2,428 | 
|Czech Republic   |  |      | 615   |  |      |  | 598   |      |  |  | 382   | 
|Corporate Center |  |      | 21    |  |      |  | 21    |      |  |  | 3     | 
|Ahold group      |  |      | 9,225 |  |      |  | 8,473 |      |  |  | 7,818 | 

Additional segment information

Segment results do not include significant non-cash items other than depreciation, amortization, write-downs, and impairment losses and reversals.

Segment information joint ventures  Other retail (JMR)

The information with respect to JMR is presented in Note 14.



29



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##### Table of Contents

7 Net sales



|                                        |  |      |        |  |      |  |        |      |  |  |        | 
|--------------------------------------- |  | ---- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
| million                               |  | 2015 |        |  | 2014 |  |        | 2013 | 
|Sales to retail customers               |  |      | 33,693 |  |      |  | 28,882 |      |  |  | 29,005 | 
|Sales to franchisees and franchise fees |  |      | 2,751  |  |      |  | 2,529  |      |  |  | 2,421  | 
|Online sales                            |  |      | 1,646  |  |      |  | 1,267  |      |  |  | 1,086  | 
|Other sales                             |  |      | 113    |  |      |  | 96     |      |  |  | 103    | 
|Net sales                               |  |      | 38,203 |  |      |  | 32,774 |      |  |  | 32,615 | 

Net sales can be further analyzed as follows:



|                        |  |      |      |  |      |  |      |      |  |  |      | 
|----------------------- |  | ---- | ---- |  | ---- |  | ---- | ---- |  |  | ---- | 
|Percentage of net sales |  | 2015 |      |  | 2014 |  |      | 2013 | 
|Food: perishable        |  |      | 46%  |  |      |  | 46%  |      |  |  | 46%  | 
|Food: non-perishable    |  |      | 34%  |  |      |  | 34%  |      |  |  | 34%  | 
|Non-food                |  |      | 12%  |  |      |  | 12%  |      |  |  | 12%  | 
|Gasoline                |  |      | 3%   |  |      |  | 4%   |      |  |  | 4%   | 
|Pharmacy                |  |      | 5%   |  |      |  | 4%   |      |  |  | 4%   | 
|Net sales               |  |      | 100% |  |      |  | 100% |      |  |  | 100% | 

8 Expenses by nature

The aggregate of cost of sales and operating expenses is specified by nature as follows:



|                                                  |  |      |        |   |      |  |        |      |  |  |        |  
|------------------------------------------------- |  | ---- | ------ | - | ---- |  | ------ | ---- |  |  | ------ | -
| million                                         |  | 2015 |        |   | 2014 |  |        | 2013 | 
|Cost of product                                   |  |      | 26,597 |   |      |  | 23,009 |      |  |  | 22,912 |  
|Labor costs                                       |  |      | 5,704  |   |      |  | 4,637  |      |  |  | 4,705  |  
|Other operational expenses                        |  |      | 2,938  |   |      |  | 2,473  |      |  |  | 2,334  |  
|Depreciation and amortization                     |  |      | 1,004  |   |      |  | 879    |      |  |  | 825    |  
|Write-down of intangible assets under development |  |      |       |   |      |  |       |      |  |  | 8      |  
|Rent expenses and income - net                    |  |      | 621    |   |      |  | 515    |      |  |  | 537    |  
|Impairment losses and reversals - net             |  |      | 39     |   |      |  | 31     |      |  |  | 83     |  
|Gains on the sale of assets - net                 |  |      | (18    | ) |      |  | (20    | )    |  |  | (28    | )
|Total expenses by nature                          |  |      | 36,885 |   |      |  | 31,524 |      |  |  | 31,376 |  



30



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##### Table of Contents

9 Net financial expenses



|                                                      |  |      |      |   |      |  |      |      |  |  |      |  
|----------------------------------------------------- |  | ---- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | -
| million                                             |  | 2015 |      |   | 2014 |  |      | 2013 | 
|Interest income                                       |  |      | 5    |   |      |  | 6    |      |  |  | 7    |  
|Interest expense                                      |  |      | (235 | ) |      |  | (212 | )    |  |  | (225 | )
|Net interest expense on defined benefit pension plans |  |      | (14  | ) |      |  | (16  | )    |  |  | (24  | )
|                                                      |  |      |     
|Losses on foreign exchange                            |  |      | (14  | ) |      |  | (15  | )    |  |  | (8   | )
|Fair value gains (losses) on financial instruments    |  |      | (2   | ) |      |  | 7    |      |  |  | (22  | )
|Other                                                 |  |      | (5   | ) |      |  | (5   | )    |  |  | (19  | )
|Other financial expenses                              |  |      | (21  | ) |      |  | (13  | )    |  |  | (49  | )
|Net financial expenses                                |  |      | (265 | ) |      |  | (235 | )    |  |  | (291 | )

Interest income mainly relates to interest earned on cash and cash equivalents and short-term cash deposits and similar instruments.

Interest expense primarily relates to financial liabilities measured at amortized cost (primarily notes, finance lease liabilities, financing obligations and cumulative
preferred financing shares) and interest accretions to provisions. At the beginning of 2015, 2014 and 2013, substantially all pension plans were in a liability position. Consequently, during all years, the net interest component of pension expense
resulted in interest expense.

Foreign exchange results on financial assets and liabilities are presented as part of net financial expenses, within losses on foreign
exchange. The losses on foreign exchange in 2015 and 2014 mainly resulted from the foreign exchange translation of the remaining GBP 250 million of the original GBP 500 million notes. Foreign exchange results arising from the purchase of
goods for sale or goods and services consumed in Aholds operations are included in cost of sales or in the appropriate element of operating expenses, respectively. In 2015, the Company recorded a net exchange loss (including the impact of
foreign exchange hedging instruments) of 1 million in operating income (2014: gain of 2 million and 2013: loss of 1 million).

In 2015, 2014 and 2013, fair value gains (losses) on financial instruments primarily resulted from the
derivatives related to the remaining GBP 250 million notes (an interest rate and a U.S. dollar cross-currency swap), which do not qualify for hedge accounting treatment.

For more information on financial instruments, see Note 30.

Other
included in Other financial expenses in 2013 was primarily comprised of 11 million relating to the change in discount rate used for a multi-employer pension plan withdrawal
liability.



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##### Table of Contents

10 Income taxes

Income taxes on continuing operations

The
following table specifies the current and deferred tax components of income taxes on continuing operations in the income statement:



|                                            |  |      |      |   |      |  |      |      |  |  |      |  
|------------------------------------------- |  | ---- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | -
| million                                   |  | 2015 |      |   | 2014 |  |      | 2013 | 
|Current income taxes                        |  |      |      |   |      |  |      |      |  |  |      |  
|Domestic taxes (the Netherlands)            |  |      | (125 | ) |      |  | (107 | )    |  |  | (103 | )
|Foreign taxes                               |  |      |      |   |      |  |      |      |  |  |      |  
|United States                               |  |      | (165 | ) |      |  | (95  | )    |  |  | (26  | )
|Europe  Other                              |  |      | (1   | ) |      |  | (10  | )    |  |  | 4    |  
|Total current tax expense                   |  |      | (291 | ) |      |  | (212 | )    |  |  | (125 | )
|                                            |  |      |     
|Deferred income taxes                       |  |      |      |   |      |  |      |      |  |  |      |  
|Domestic taxes (the Netherlands)            |  |      | 24   |   |      |  | (4   | )    |  |  | (18  | )
|Foreign taxes                               |  |      |      |   |      |  |      |      |  |  |      |  
|United States                               |  |      | 50   |   |      |  | (30  | )    |  |  | (18  | )
|Europe  Other                              |  |      | (7   | ) |      |  | (2   | )    |  |  | 8    |  
|Total deferred tax expense                  |  |      | 67   |   |      |  | (36  | )    |  |  | (28  | )
|Total income taxes on continuing operations |  |      | (224 | ) |      |  | (248 | )    |  |  | (153 | )

Effective income tax rate on continuing operations

Aholds effective tax rate in its consolidated income statement differed from the Netherlands statutory income tax rate of 25.0%. The following table
reconciles the statutory income tax rate with the effective income tax rate in the consolidated income statement:



|                                                                                |  |   |         |  |  |  |        |  |      |  |  |   |         |  |      |  |        |  |  |  |  |   |         |  |  |  |        | 
|------------------------------------------------------------------------------- |  | - | ------- |  |  |  | ------ |  | ---- |  |  | - | ------- |  | ---- |  | ------ |  |  |  |  | - | ------- |  |  |  | ------ | 
|                                                                                |  |   | 2015    |  |  |  |        |  | 2014 |  |  |   |         |  | 2013 | 
|                                                                                |  |  | million |  |  |  | %      |  |      |  |  |  | million |  |      |  | %      |  |  |  |  |  | million |  |  |  | %      | 
|Income before income taxes                                                      |  |   | 1,053   |  |  |  |        |  |      |  |  |   | 1,015   |  |      |  |        |  |  |  |  |   | 948     |  |  |  |        | 
|Income tax expense at statutory tax rate                                        |  |   | (263)   |  |  |  | 25.0%  |  |      |  |  |   | (254)   |  |      |  | 25.0%  |  |  |  |  |   | (237)   |  |  |  | 25.0%  | 
|Adjustments to arrive at effective income tax rate:                             |  |   |         |  |  |  |        |  |      |  |  |   |         |  |      |  |        |  |  |  |  |   |         |  |  |  |        | 
|Rate differential (local rates versus the statutory rate of the Netherlands)    |  |   | (26)    |  |  |  | 2.5%   |  |      |  |  |   | (23)    |  |      |  | 2.3%   |  |  |  |  |   | (38)    |  |  |  | 4.0%   | 
|Deferred tax income (expense) related to recognition of deferred tax assets-net |  |   | 29      |  |  |  | (2.8)% |  |      |  |  |   | (6)     |  |      |  | 0.6%   |  |  |  |  |   | 40      |  |  |  | (4.2)% | 
|Reserves, (non-) deductibles and discrete items                                 |  |   | 36      |  |  |  | (3.4)% |  |      |  |  |   | 35      |  |      |  | (3.5)% |  |  |  |  |   | 82      |  |  |  | (8.7)% | 
|Total income taxes                                                              |  |   | (224)   |  |  |  | 21.3%  |  |      |  |  |   | (248)   |  |      |  | 24.4%  |  |  |  |  |   | (153)   |  |  |  | 16.1%  | 



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10 Income taxes (continued)



Rate differential indicates the effect of Aholds taxable income being generated
and taxed in jurisdictions where tax rates differ from the statutory tax rate in the Netherlands. Reserves, (non-) deductibles and discrete items include one-time transactions. During 2013, a tax benefit of 37 million was recognized from movements in income tax contingency reserves.

Income
taxes on discontinued operations

Current and deferred income tax related to discontinued operations amounted to a
1 million expense in 2015, 30 million benefit in 2014 and 17 million
benefit in 2013 and has been included within the result from discontinued operations. The 2015 and 2014 current and deferred tax movements on discontinued operations are mainly related to the U.S. The 2013 current and deferred income tax benefit on
discontinued operations is mainly related to Slovakia. For further information, seeNotes 5 and 34.



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10 Income taxes (continued)



Deferred income tax

The significant components and annual movements of deferred income tax assets and liabilities as of January 3, 2016, December 28, 2014 and
December 29, 2013 are as follows:



|                                                    |  |                  |      |   |                              |  |     |       |  |  |                  |   |  |                              |      |   |       |  |     |                  |  |  |                              |   |  |       |      |   |                |  |     |   |  |  |     |   |  |  |      |  
|--------------------------------------------------- |  | ---------------- | ---- | - | ---------------------------- |  | --- | ----- |  |  | ---------------- | - |  | ---------------------------- | ---- | - | ----- |  | --- | ---------------- |  |  | ---------------------------- | - |  | ----- | ---- | - | -------------- |  | --- | - |  |  | --- | - |  |  | ---- | -
| million                                           |  | December 30,2012 |      |   | Recognized inincomestatement |  |     | Other |  |  | December 29,2013 |   |  | Recognized inincomestatement |      |   | Other |  |     | December 28,2014 |  |  | Recognized inincomestatement |   |  | Other |      |   | January 3,2016 | 
|Leases and financings                               |  |                  | 237  |   |                              |  | 5   |       |  |  | (19              | ) |  |                              | 223  |   |       |  | 1   |                  |  |  | 37                           |   |  |       | 261  |   |                |  | (7  | ) |  |  | 33  |   |  |  | 287  |  
|Pensions and other post-employment benefits         |  |                  | 305  |   |                              |  | (7  | )     |  |  | (88              | ) |  |                              | 210  |   |       |  | (27 | )                |  |  | 35                           |   |  |       | 218  |   |                |  | (5  | ) |  |  | 53  |   |  |  | 266  |  
|Provisions                                          |  |                  | 114  |   |                              |  | 20  |       |  |  | 21               |   |  |                              | 155  |   |       |  | (26 | )                |  |  | (11                          | ) |  |       | 118  |   |                |  | (9  | ) |  |  | 42  |   |  |  | 151  |  
|Derivatives and loans                               |  |                  | 24   |   |                              |  | 5   |       |  |  | (14              | ) |  |                              | 15   |   |       |  | 4   |                  |  |  | 15                           |   |  |       | 34   |   |                |  |    |   |  |  | (3  | ) |  |  | 31   |  
|Interest                                            |  |                  | 57   |   |                              |  | (29 | )     |  |  | (1               | ) |  |                              | 27   |   |       |  | (11 | )                |  |  | 2                            |   |  |       | 18   |   |                |  | (6  | ) |  |  | 2   |   |  |  | 14   |  
|Other                                               |  |                  | 78   |   |                              |  | (39 | )     |  |  | (11              | ) |  |                              | 28   |   |       |  | (5  | )                |  |  | 10                           |   |  |       | 33   |   |                |  |    |   |  |  | (4  | ) |  |  | 29   |  
|Total gross deductible temporary differences        |  |                  | 815  |   |                              |  | (45 | )     |  |  | (112             | ) |  |                              | 658  |   |       |  | (64 | )                |  |  | 88                           |   |  |       | 682  |   |                |  | (27 | ) |  |  | 123 |   |  |  | 778  |  
|Unrecognized deductible temporary differences       |  |                  | (56  | ) |                              |  | 3   |       |  |  | 49               |   |  |                              | (4   | ) |       |  |    |                  |  |  |                             |   |  |       | (4   | ) |                |  |    |   |  |  |    |   |  |  | (4   | )
|Total recognized deductible temporary differences   |  |                  | 759  |   |                              |  | (42 | )     |  |  | (63              | ) |  |                              | 654  |   |       |  | (64 | )                |  |  | 88                           |   |  |       | 678  |   |                |  | (27 | ) |  |  | 123 |   |  |  | 774  |  
|Tax losses and tax credits                          |  |                  | 179  |   |                              |  | (15 | )     |  |  | (1               | ) |  |                              | 163  |   |       |  | (4  | )                |  |  | 113                          |   |  |       | 272  |   |                |  | (19 | ) |  |  | 30  |   |  |  | 283  |  
|Unrecognized tax losses and tax credits             |  |                  | (44  | ) |                              |  | 43  |       |  |  | (34              | ) |  |                              | (35  | ) |       |  | (8  | )                |  |  | (72                          | ) |  |       | (115 | ) |                |  | 17  |   |  |  | (13 | ) |  |  | (111 | )
|Total recognized tax losses and tax credits         |  |                  | 135  |   |                              |  | 28  |       |  |  | (35              | ) |  |                              | 128  |   |       |  | (12 | )                |  |  | 41                           |   |  |       | 157  |   |                |  | (2  | ) |  |  | 17  |   |  |  | 172  |  
|Total net deferred tax asset position               |  |                  | 894  |   |                              |  | (14 | )     |  |  | (98              | ) |  |                              | 782  |   |       |  | (76 | )                |  |  | 129                          |   |  |       | 835  |   |                |  | (29 | ) |  |  | 140 |   |  |  | 946  |  
|Property, plant and equipment and intangible assets |  |                  | (364 | ) |                              |  | (14 | )     |  |  | (5               | ) |  |                              | (383 | ) |       |  | 49  |                  |  |  | (25                          | ) |  |       | (359 | ) |                |  | 92  |   |  |  | (17 | ) |  |  | (284 | )
|Inventories                                         |  |                  | (111 | ) |                              |  | 1   |       |  |  | 5                |   |  |                              | (105 | ) |       |  | (8  | )                |  |  | (12                          | ) |  |       | (125 | ) |                |  | (2  | ) |  |  | (17 | ) |  |  | (144 | )
|Other                                               |  |                  | (5   | ) |                              |  | (1  | )     |  |  |                 |   |  |                              | (6   | ) |       |  | (1  | )                |  |  |                             |   |  |       | (7   | ) |                |  | 6   |   |  |  | 1   |   |  |  |     |  
|Total deferred tax liabilities                      |  |                  | (480 | ) |                              |  | (14 | )     |  |  |                 |   |  |                              | (494 | ) |       |  | 40  |                  |  |  | (37                          | ) |  |       | (491 | ) |                |  | 96  |   |  |  | (33 | ) |  |  | (428 | )
|Net deferred tax assets                             |  |                  | 414  |   |                              |  | (28 | )     |  |  | (98              | ) |  |                              | 288  |   |       |  | (36 | )                |  |  | 92                           |   |  |       | 344  |   |                |  | 67  |   |  |  | 107 |   |  |  | 518  |  

The column Other in the table above includes amounts recorded in equity, the effects of acquisitions, divestments and exchange
rate differences, as well as reclassifications between deferred tax components and the application of tax losses and tax credits against current year income tax payables.



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10 Income taxes (continued)



Deferred income tax assets and liabilities are offset on the balance sheet when there is a legally
enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to income taxes levied by the same fiscal authority. The deferred tax assets and liabilities are presented as non-current assets
and liabilities on the balance sheet as follows:



|                         |  |                |      |   |                  |  |      |  
|------------------------ |  | -------------- | ---- | - | ---------------- |  | ---- | -
| million                |  | January 3,2016 |      |   | December 28,2014 | 
|Deferred tax assets      |  |                | 628  |   |                  |  | 494  |  
|Deferred tax liabilities |  |                | (110 | ) |                  |  | (150 | )
|Net deferred tax assets  |  |                | 518  |   |                  |  | 344  |  

As of January 3, 2016, Ahold had operating and capital loss carryforwards of a total nominal amount of 2,110 million, mainly expiring between 2019 and 2034 (December 28, 2014: 1,949 million and 2013: 1,239 million). The following table specifies the years in which Aholds operating and capital loss carryforwards and tax credits are scheduled to expire:



|                                             |  |      |    |   |      |  |    |      |  |  |      |   |  |      |     |   |           |  |    |           |  |  |            |   |  |                |     |   |       |  |     |   |  |  |    |   |  |  |       |  
|-------------------------------------------- |  | ---- | -- | - | ---- |  | -- | ---- |  |  | ---- | - |  | ---- | --- | - | --------- |  | -- | --------- |  |  | ---------- | - |  | -------------- | --- | - | ----- |  | --- | - |  |  | -- | - |  |  | ----- | -
| million                                    |  | 2016 |    |   | 2017 |  |    | 2018 |  |  | 2019 |   |  | 2020 |     |   | 2021-2025 |  |    | 2026-2030 |  |  | After 2030 |   |  | Does notexpire |     |   | Total | 
|Operating and capital losses (nominal value) |  |      | 11 |   |      |  | 28 |      |  |  | 50   |   |  |      | 458 |   |           |  | 57 |           |  |  | 684        |   |  |                | 518 |   |       |  | 258 |   |  |  | 46 |   |  |  | 2,110 |  
|                                             |  |      |    |   |      |  |    |      |  | 
|Operating and capital losses (tax value)     |  |      | 2  |   |      |  | 8  |      |  |  | 14   |   |  |      | 104 |   |           |  | 18 |           |  |  | 46         |   |  |                | 29  |   |       |  | 15  |   |  |  | 10 |   |  |  | 246   |  
|Tax credits                                  |  |      | 6  |   |      |  | 6  |      |  |  | 6    |   |  |      | 5   |   |           |  | 3  |           |  |  | 4          |   |  |                |    |   |       |  |    |   |  |  | 7  |   |  |  | 37    |  
|Tax losses and tax credits                   |  |      | 8  |   |      |  | 14 |      |  |  | 20   |   |  |      | 109 |   |           |  | 21 |           |  |  | 50         |   |  |                | 29  |   |       |  | 15  |   |  |  | 17 |   |  |  | 283   |  
|                                             |  |      |    |   |      |  |    |      |  | 
|Unrecognized tax losses and tax credits      |  |      | (4 | ) |      |  | (2 | )    |  |  | (3   | ) |  |      | (83 | ) |           |  | (1 | )         |  |  | (7         | ) |  |                | (5  | ) |       |  | (1  | ) |  |  | (5 | ) |  |  | (111  | )
|                                             |  |      |    |   |      |  |    |      |  | 
|Total recognized tax losses and tax credits  |  |      | 4  |   |      |  | 12 |      |  |  | 17   |   |  |      | 26  |   |           |  | 20 |           |  |  | 43         |   |  |                | 24  |   |       |  | 14  |   |  |  | 12 |   |  |  | 172   |  

Operating and capital loss carryforwards related to one jurisdiction may not be used to offset income taxes in other jurisdictions. Of the
loss carryforwards, 1,629 million relates to U.S. state taxes, for which a weighted average tax rate of 5.63% applies.

The majority of the above mentioned deferred tax assets relate to tax jurisdictions in which Ahold has suffered a tax loss in the current or a preceding period.
Significant judgment is required in determining whether deferred tax assets are realizable. Ahold determines this on the basis of expected taxable profits arising from the reversal of recognized deferred tax liabilities and on the basis of
budgets, cash flow forecasts and impairment models. Where utilization is not considered probable, deferred tax assets are not recognized.



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10 Income taxes (continued)



Income taxes in equity and comprehensive income

Current and deferred income taxes recognized in and transferred from equity and comprehensive income are as follows:



|                                                      |  |      |    |   |      |  |    |      |  |  |     |  
|----------------------------------------------------- |  | ---- | -- | - | ---- |  | -- | ---- |  |  | --- | -
| million                                             |  | 2015 |    |   | 2014 |  |    | 2013 | 
|Share-based compensation                              |  |      | 19 |   |      |  | 6  |      |  |  | 12  |  
|Cash flow hedges                                      |  |      | (3 | ) |      |  | 16 |      |  |  | (15 | )
|Currency translation differences in foreign interests |  |      | (1 | ) |      |  |   |      |  |  | 1   |  
|Remeasurement of defined benefit pension plans        |  |      | 11 |   |      |  | 21 |      |  |  | (83 | )
|Total                                                 |  |      | 26 |   |      |  | 43 |      |  |  | (85 | )



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11 Property, plant and equipment



|                                               |  |                    |        |   |                                    |  |      |       |  |  |                   |   |  |       |     |   |  |  |      |   |  |  |        |  
|---------------------------------------------- |  | ------------------ | ------ | - | ---------------------------------- |  | ---- | ----- |  |  | ----------------- | - |  | ----- | --- | - |  |  | ---- | - |  |  | ------ | -
|                                               |  | Buildings and land |        |   | Furnishings,machineryand equipment |  |      | Other |  |  | Underconstruction |   |  | Total |    
| million                                      |  | Stores             |        |   | Other                              |  |      |       |  | 
|As of December 29, 2013                        |  |                    |        |   |                                    |  |      |       |  |  |                   |   |  |       |     |   |  |  |      |   |  |  |        |  
|At cost                                        |  |                    | 6,879  |   |                                    |  | 617  |       |  |  | 4,052             |   |  |       | 120 |   |  |  | 149  |   |  |  | 11,817 |  
|Accumulated depreciation and impairment losses |  |                    | (2,987 | ) |                                    |  | (206 | )     |  |  | (2,853            | ) |  |       | (59 | ) |  |  |     |   |  |  | (6,105 | )
|Carrying amount                                |  |                    | 3,892  |   |                                    |  | 411  |       |  |  | 1,199             |   |  |       | 61  |   |  |  | 149  |   |  |  | 5,712  |  
|                                               |  |                    |        |   |                                    | 
|Year ended December 28, 2014                   |  |                    |        |   |                                    |  |      |       |  |  |                   |   |  |       |     |   |  |  |      |   |  |  |        |  
|Additions                                      |  |                    | 59     |   |                                    |  | 5    |       |  |  | 159               |   |  |       | 7   |   |  |  | 376  |   |  |  | 606    |  
|Transfers from under construction              |  |                    | 191    |   |                                    |  | 26   |       |  |  | 215               |   |  |       | 4   |   |  |  | (436 | ) |  |  |       |  
|Acquisitions through business combinations     |  |                    | 79     |   |                                    |  |     |       |  |  | 45                |   |  |       |    |   |  |  |     |   |  |  | 124    |  
|Depreciation                                   |  |                    | (369   | ) |                                    |  | (25  | )     |  |  | (345              | ) |  |       | (11 | ) |  |  |     |   |  |  | (750   | )
|Impairment losses                              |  |                    | (8     | ) |                                    |  |     |       |  |  | (6                | ) |  |       |    |   |  |  |     |   |  |  | (14    | )
|Impairment reversals                           |  |                    | 3      |   |                                    |  |     |       |  |  | 1                 |   |  |       |    |   |  |  |     |   |  |  | 4      |  
|Assets classified to held for sale or sold     |  |                    | (11    | ) |                                    |  | (1   | )     |  |  | (2                | ) |  |       |    |   |  |  | (7   | ) |  |  | (21    | )
|Other movements                                |  |                    | (30    | ) |                                    |  | (2   | )     |  |  | 3                 |   |  |       | 2   |   |  |  | (1   | ) |  |  | (28    | )
|Exchange rate differences                      |  |                    | 371    |   |                                    |  | 28   |       |  |  | 101               |   |  |       | 6   |   |  |  | 11   |   |  |  | 517    |  
|Closing carrying amount                        |  |                    | 4,177  |   |                                    |  | 442  |       |  |  | 1,370             |   |  |       | 69  |   |  |  | 92   |   |  |  | 6,150  |  
|As of December 28, 2014                        |  |                    |        |   |                                    |  |      |       |  |  |                   |   |  |       |     |   |  |  |      |   |  |  |        |  
|At cost                                        |  |                    | 7,810  |   |                                    |  | 703  |       |  |  | 4,510             |   |  |       | 143 |   |  |  | 92   |   |  |  | 13,258 |  
|Accumulated depreciation and impairment losses |  |                    | (3,633 | ) |                                    |  | (261 | )     |  |  | (3,140            | ) |  |       | (74 | ) |  |  |     |   |  |  | (7,108 | )
|Carrying amount                                |  |                    | 4,177  |   |                                    |  | 442  |       |  |  | 1,370             |   |  |       | 69  |   |  |  | 92   |   |  |  | 6,150  |  
|                                               |  |                    |        |   |                                    | 
|Year ended January 3, 2016                     |  |                    |        |   |                                    |  |      |       |  |  |                   |   |  |       |     |   |  |  |      |   |  |  |        |  
|Additions                                      |  |                    | 82     |   |                                    |  | 32   |       |  |  | 187               |   |  |       | 19  |   |  |  | 428  |   |  |  | 748    |  
|Transfers from under construction              |  |                    | 166    |   |                                    |  | 16   |       |  |  | 226               |   |  |       | 1   |   |  |  | (409 | ) |  |  |       |  
|Acquisitions through business combinations     |  |                    | 116    |   |                                    |  |     |       |  |  | 19                |   |  |       |    |   |  |  |     |   |  |  | 135    |  
|Depreciation                                   |  |                    | (423   | ) |                                    |  | (32  | )     |  |  | (388              | ) |  |       | (14 | ) |  |  |     |   |  |  | (857   | )
|Impairment losses                              |  |                    | (15    | ) |                                    |  |     |       |  |  | (13               | ) |  |       |    |   |  |  |     |   |  |  | (28    | )
|Impairment reversals                           |  |                    | 1      |   |                                    |  |     |       |  |  | 1                 |   |  |       |    |   |  |  |     |   |  |  | 2      |  
|Assets classified to held for sale or sold     |  |                    | (12    | ) |                                    |  |     |       |  |  | (4                | ) |  |       |    |   |  |  | (1   | ) |  |  | (17    | )
|Other movements                                |  |                    | 23     |   |                                    |  | (1   | )     |  |  | (29               | ) |  |       |    |   |  |  |     |   |  |  | (7     | )
|Exchange rate differences                      |  |                    | 394    |   |                                    |  | 32   |       |  |  | 112               |   |  |       | 8   |   |  |  | 5    |   |  |  | 551    |  
|Closing carrying amount                        |  |                    | 4,509  |   |                                    |  | 489  |       |  |  | 1,481             |   |  |       | 83  |   |  |  | 115  |   |  |  | 6,677  |  
|As of January 3, 2016                          |  |                    |        |   |                                    |  |      |       |  |  |                   |   |  |       |     |   |  |  |      |   |  |  |        |  
|At cost                                        |  |                    | 8,799  |   |                                    |  | 810  |       |  |  | 5,192             |   |  |       | 176 |   |  |  | 115  |   |  |  | 15,092 |  
|Accumulated depreciation and impairment losses |  |                    | (4,290 | ) |                                    |  | (321 | )     |  |  | (3,711            | ) |  |       | (93 | ) |  |  |     |   |  |  | (8,415 | )
|Carrying amount                                |  |                    | 4,509  |   |                                    |  | 489  |       |  |  | 1,481             |   |  |       | 83  |   |  |  | 115  |   |  |  | 6,677  |  



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##### Table of Contents

11 Property, plant and equipment (continued)



Buildings and land includes improvements to these assets. Other buildings and land
mainly includes distribution centers and warehouses. Other property, plant and equipment mainly consists of trucks, trailers and other vehicles. Assets under construction mainly consists of stores.

In 2015, Ahold recognized net impairment losses of 26 million for property, plant and equipment (2014: 10 million and 2013: 69 million). These were mainly related to Ahold USA (2015:
17 million, 2014: 7 million and 2013: 66 million ) and the
Netherlands (2015: 9 million, 2014: 3 million and 2013: 4 million) and
were recognized for various operating and closed stores. In 2013, Stop & Shop closed six stores and three gas stations in the New Hampshire area, as announced on August 6, 2013. Ahold recognized $24 million (18 million) of impairments related to these stores based on the exit assumption.

The higher of the value in use or
fair value less cost of disposal represents an assets recoverable amount. The value in use method involves estimating future cash flows. The present value of estimated future cash flows has been calculated using pre-tax discount rates ranging
between 6.3% and 12.7% (2014: 6.8%-13.1%). Fair value represents the price that would be received to sell an asset in an orderly transaction between market participants and has generally been measured by using discounted cash flow projections based
on the assets highest and best use from a market participants perspective. In 2015, the fair value less cost of disposal was the recoverable amount in the determination of
2 million of the net impairment losses. In 2014, there was no impairment loss recorded based on fair value less cost of disposal measurement. In 2013, the fair value less cost of disposal
was the recoverable amount in determination of 15 million of the impairment losses.

The additions to
property, plant and equipment include capitalized borrowing costs of 1 million (2014: 2 million). Generally, the capitalization rate
used to determine the amount of capitalized borrowing costs is a weighted average of the interest rate applicable to the respective operating companies. This rate ranged between 2.3% and 3.8% (2014: 2.9%-4.2%).

Other movements mainly include transfers between asset classes and transfers to investment property.

The carrying amount of land and buildings includes amounts related to assets held under finance leases and financings of
987 million and 218 million, respectively (December 28, 2014:
843 million and 211 million). In addition, the carrying amount of machinery and equipment and other includes an amount of 6 million (December 28, 2014: 4 million) relating to assets held under finance leases. Ahold does not have legal title to these assets.
Company-owned property, plant and equipment with a carrying amount of 48 million (December 28, 2014: 44 million) has been pledged as
security for liabilities, mainly for loans.



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##### Table of Contents

12 Investment property



|                                                                         |  |      |      |   |      |  |      |  
|------------------------------------------------------------------------ |  | ---- | ---- | - | ---- |  | ---- | -
| million                                                                |  | 2015 |      |   | 2014 | 
|At the beginning of the year                                             |  |      |      |   |      |  |      |  
|At cost                                                                  |  |      | 893  |   |      |  | 863  |  
|Accumulated depreciation and impairment losses                           |  |      | (333 | ) |      |  | (320 | )
|Carrying amount                                                          |  |      | 560  |   |      |  | 543  |  
|                                                                         |  |     
|Additions                                                                |  |      | 15   |   |      |  | 11   |  
|Acquisitions through business combinations                               |  |      |     |   |      |  | 5    |  
|Depreciation                                                             |  |      | (25  | ) |      |  | (25  | )
|Impairment losses and reversals - net                                    |  |      | (3   | ) |      |  | (9   | )
|Assets classified to held for sale or sold                               |  |      | (20  | ) |      |  | (38  | )
|Transfers from property, plant and equipment and intangible assets - net |  |      | 4    |   |      |  | 28   |  
|Exchange rate differences                                                |  |      | 49   |   |      |  | 45   |  
|Closing carrying amount                                                  |  |      | 580  |   |      |  | 560  |  
|                                                                         |  |     
|At the end of the year                                                   |  |      |      |   |      |  |      |  
|At cost                                                                  |  |      | 934  |   |      |  | 893  |  
|Accumulated depreciation and impairment losses                           |  |      | (354 | ) |      |  | (333 | )
|Carrying amount                                                          |  |      | 580  |   |      |  | 560  |  

A significant portion of Aholds investment property comprises shopping centers containing both an Ahold store and third-party retail
units. The third-party retail units generate rental income, but are primarily of strategic importance to Ahold in its retail operations. Ahold recognizes the part of a shopping center leased to a third-party retailer as investment property, unless
it represents an insignificant portion of the property.

In 2015, Ahold recognized net impairment losses of
3 million. These were related to Ahold USA (2 million) and the Netherlands (1
million).

The carrying amount of investment property includes an amount related to assets held under finance leases and financings of 25 million and 43 million (December 28, 2014: 29 million and 48 million), respectively. Ahold does not have legal title to these assets. Company-owned investment property with a carrying amount of
79 million (December 28, 2014: 75 million) has been pledged as security for liabilities, mainly for loans.

The fair value of investment property as of January 3, 2016, amounted to approximately 772 million
(December 28, 2014: 744 million). Fair value represents the price that would be received to sell an asset in an orderly transaction between market participants and has generally been measured by
using discounted cash flow projections based on the assets highest and best use from a market participants perspective. Approximately 60% of Aholds fair value measurements are categorized within Level 2. The most significant inputs
into this valuation approach are observable market retail yields and tenant rents to calculate the fair value. The remaining fair value measurements which are categorized within Level 3 primarily include the fair value measurements based on the
Companys own valuation methods and the fair value for mixed-use properties and properties held for strategic purposes. For mixed-use properties and properties held for strategic purposes, Ahold cannot determine the fair value of the investment
property reliably. In such cases, the fair value is assumed to be equal to the carrying amount.



39



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##### Table of Contents

12 Investment property (continued)



Rental income from investment property included in the income statement in 2015 amounted to 70 million (2014: 66 million and 2013: 63 million). Direct operating expenses
(including repairs and maintenance but excluding depreciation expense) arising from rental-income-generating and non-rent-generating investment property in 2015 amounted to 34 million
(2014: 30 million and 2013: 30 million).



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##### Table of Contents

13 Intangible assets



|                                               |  |          |       |   |                          |  |      |          |  |  |                       |   |  |             |     |   |       |  |    |                  |  |  |       |   |  |  |     |   |  |  |        |  
|---------------------------------------------- |  | -------- | ----- | - | ------------------------ |  | ---- | -------- |  |  | --------------------- | - |  | ----------- | --- | - | ----- |  | -- | ---------------- |  |  | ----- | - |  |  | --- | - |  |  | ------ | -
| million                                      |  | Goodwill |       |   | Lease-relatedintangibles |  |      | Software |  |  | Customerrelationships |   |  | Brand names |     |   | Other |  |    | Underdevelopment |  |  | Total |  
|As of December 29, 2013                        |  |          |       |   |                          |  |      |          |  |  |                       |   |  |             |     |   |       |  |    |                  |  |  |       |   |  |  |     |   |  |  |        |  
|At cost                                        |  |          | 841   |   |                          |  | 239  |          |  |  | 680                   |   |  |             | 119 |   |       |  | 86 |                  |  |  | 320   |   |  |  | 70  |   |  |  | 2,355  |  
|Accumulated amortization and impairment losses |  |          | (4    | ) |                          |  | (159 | )        |  |  | (490                  | ) |  |             | (49 | ) |       |  |   |                  |  |  | (90   | ) |  |  |    |   |  |  | (792   | )
|Carrying amount                                |  |          | 837   |   |                          |  | 80   |          |  |  | 190                   |   |  |             | 70  |   |       |  | 86 |                  |  |  | 230   |   |  |  | 70  |   |  |  | 1,563  |  
|Year ended December 28, 2014                   |  |          |       |   |                          |  |      |          |  |  |                       |   |  |             |     |   |       |  |    |                  |  |  |       |   |  |  |     |   |  |  |        |  
|Additions                                      |  |          |      |   |                          |  |     |          |  |  | 45                    |   |  |             | 1   |   |       |  |   |                  |  |  | 14    |   |  |  | 76  |   |  |  | 136    |  
|Transfers from under development               |  |          |      |   |                          |  |     |          |  |  | 71                    |   |  |             |    |   |       |  |   |                  |  |  | 15    |   |  |  | (86 | ) |  |  |       |  
|Acquisitions through business combinations     |  |          | 164   |   |                          |  | 2    |          |  |  |                      |   |  |             |    |   |       |  |   |                  |  |  | (42   | ) |  |  |    |   |  |  | 124    |  
|Amortization                                   |  |          |      |   |                          |  | (9   | )        |  |  | (78                   | ) |  |             | (5  | ) |       |  |   |                  |  |  | (12   | ) |  |  |    |   |  |  | (104   | )
|Impairments and write-downs                    |  |          | (4    | ) |                          |  |     |          |  |  |                      |   |  |             |    |   |       |  |   |                  |  |  | (8    | ) |  |  |    |   |  |  | (12    | )
|Assets classified to held for sale or sold     |  |          |      |   |                          |  |     |          |  |  |                      |   |  |             |    |   |       |  |   |                  |  |  | (2    | ) |  |  |    |   |  |  | (2     | )
|Exchange rate differences                      |  |          | 34    |   |                          |  | 9    |          |  |  | 4                     |   |  |             | 1   |   |       |  |   |                  |  |  | 9     |   |  |  | 1   |   |  |  | 58     |  
|Closing carrying amount                        |  |          | 1,031 |   |                          |  | 82   |          |  |  | 232                   |   |  |             | 67  |   |       |  | 86 |                  |  |  | 204   |   |  |  | 61  |   |  |  | 1,763  |  
|As of December 28, 2014                        |  |          |       |   |                          |  |      |          |  |  |                       |   |  |             |     |   |       |  |    |                  |  |  |       |   |  |  |     |   |  |  |        |  
|At cost                                        |  |          | 1,039 |   |                          |  | 268  |          |  |  | 828                   |   |  |             | 127 |   |       |  | 86 |                  |  |  | 306   |   |  |  | 61  |   |  |  | 2,715  |  
|Accumulated amortization and impairment losses |  |          | (8    | ) |                          |  | (186 | )        |  |  | (596                  | ) |  |             | (60 | ) |       |  |   |                  |  |  | (102  | ) |  |  |    |   |  |  | (952   | )
|Carrying amount                                |  |          | 1,031 |   |                          |  | 82   |          |  |  | 232                   |   |  |             | 67  |   |       |  | 86 |                  |  |  | 204   |   |  |  | 61  |   |  |  | 1,763  |  
|Year ended January 3, 2016                     |  |          |       |   |                          |  |      |          |  |  |                       |   |  |             |     |   |       |  |    |                  |  |  |       |   |  |  |     |   |  |  |        |  
|Additions                                      |  |          |      |   |                          |  |     |          |  |  | 37                    |   |  |             | 2   |   |       |  |   |                  |  |  | 14    |   |  |  | 62  |   |  |  | 115    |  
|Transfers from under development               |  |          |      |   |                          |  |     |          |  |  | 79                    |   |  |             |    |   |       |  |   |                  |  |  | 7     |   |  |  | (86 | ) |  |  |       |  
|Acquisitions through business combinations     |  |          | 174   |   |                          |  | 43   |          |  |  |                      |   |  |             | 6   |   |       |  |   |                  |  |  | (64   | ) |  |  |    |   |  |  | 159    |  
|Amortization                                   |  |          |      |   |                          |  | (11  | )        |  |  | (91                   | ) |  |             | (6  | ) |       |  |   |                  |  |  | (14   | ) |  |  |    |   |  |  | (122   | )
|Impairments                                    |  |          |      |   |                          |  | (1   | )        |  |  |                      |   |  |             |    |   |       |  |   |                  |  |  | (12   | ) |  |  |    |   |  |  | (13    | )
|Impairment reversals                           |  |          |      |   |                          |  |     |          |  |  |                      |   |  |             |    |   |       |  |   |                  |  |  | 3     |   |  |  |    |   |  |  | 3      |  
|Assets classified to held for sale or sold     |  |          | (6    | ) |                          |  |     |          |  |  |                      |   |  |             |    |   |       |  |   |                  |  |  |      |   |  |  |    |   |  |  | (6     | )
|Other movements                                |  |          | (3    | ) |                          |  | 2    |          |  |  | 1                     |   |  |             |    |   |       |  |   |                  |  |  | 3     |   |  |  |    |   |  |  | 3      |  
|Exchange rate differences                      |  |          | 40    |   |                          |  | 9    |          |  |  | 6                     |   |  |             |    |   |       |  |   |                  |  |  | 9     |   |  |  | 2   |   |  |  | 66     |  
|Closing carrying amount                        |  |          | 1,236 |   |                          |  | 124  |          |  |  | 264                   |   |  |             | 69  |   |       |  | 86 |                  |  |  | 150   |   |  |  | 39  |   |  |  | 1,968  |  
|As of January 3, 2016                          |  |          |       |   |                          |  |      |          |  |  |                       |   |  |             |     |   |       |  |    |                  |  |  |       |   |  |  |     |   |  |  |        |  
|At cost                                        |  |          | 1,241 |   |                          |  | 340  |          |  |  | 921                   |   |  |             | 141 |   |       |  | 86 |                  |  |  | 273   |   |  |  | 39  |   |  |  | 3,041  |  
|Accumulated amortization and impairment losses |  |          | (5    | ) |                          |  | (216 | )        |  |  | (657                  | ) |  |             | (72 | ) |       |  |   |                  |  |  | (123  | ) |  |  |    |   |  |  | (1,073 | )
|Carrying amount                                |  |          | 1,236 |   |                          |  | 124  |          |  |  | 264                   |   |  |             | 69  |   |       |  | 86 |                  |  |  | 150   |   |  |  | 39  |   |  |  | 1,968  |  



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13 Intangible assets (continued)



Goodwill recognized on acquisitions in 2015 relates mainly to the acquisition of A&P stores in
the United States (allocated to Stop & Shop New York Metro) and C1000 stores in the Netherlands (allocated to Albert Heijn) (see Note 4 for more details). Goodwill recognized on acquisitions in 2014 relates mainly to the acquisition
of SPAR in the Czech Republic and the C1000 stores in the Netherlands.

Goodwill acquired in business combinations is allocated, at acquisition, to the
cash-generating units (CGUs) or groups of CGUs expected to benefit from that business combination.

The carrying amounts of goodwill allocated to CGUs within
Aholds reportable segments are as follows:



|                   |  |                            |  |                |       |  |                  |  |       | 
|------------------ |  | -------------------------- |  | -------------- | ----- |  | ---------------- |  | ----- | 
| million          |  |                            |  | January 3,2016 |       |  | December 28,2014 | 
|Reportable segment |  | Cash-generating unit       |  |                |       |  |                  |  |       | 
|Ahold USA          |  | Stop & Shop New England    |  |                | 16    |  |                  |  | 15    | 
|                   |  | Stop & Shop New York Metro |  |                | 124   |  |                  |  | 25    | 
|                   |  | Giant Carlisle             |  |                | 264   |  |                  |  | 235   | 
|                   |  | Giant Landover             |  |                | 9     |  |                  |  | 8     | 
|                   |  | Peapod                     |  |                | 24    |  |                  |  | 21    | 
|The Netherlands    |  | Albert Heijn               |  |                | 456   |  |                  |  | 393   | 
|                   |  | bol.com                    |  |                | 201   |  |                  |  | 201   | 
|                   |  | Etos                       |  |                | 8     |  |                  |  | 8     | 
|                   |  | Gall & Gall                |  |                | 1     |  |                  |  | 1     | 
|Czech Republic     |  | Czech Republic             |  |                | 133   |  |                  |  | 124   | 
|Ahold group        |  |                            |  |                | 1,236 |  |                  |  | 1,031 | 

CGUs to which goodwill has been allocated are tested for impairment annually or more frequently if there are indications that a particular
CGU might be impaired. The recoverable amount of each CGU is determined based on value in use calculations. Value in use is determined using discounted cash flow projections that generally cover a period of five years and are based on the financial
plans approved by the Companys management. Due to the expected continuation of high growth in the relevant online retail markets, we project cash flow for bol.com and Peapod over 10-year periods to better reflect the growth expectations in
sales, profitability and cash generation after the first five-year projection period. The key assumptions for the value in use calculations relate to discount rate, sales growth and operating margin. The post-tax rates used to discount the projected
cash flows reflect specific risks relating to relevant CGUs and are 6.2% for Ahold USA, 5.6% for The Netherlands, 10.0% for bol.com and 6.1% for the Czech Republic. The pre-tax discount rates are 10.3% for Ahold USA, 9.0% for Peapod, 7.4% for The
Netherlands, 12.1% for bol.com and 7.4% for the Czech Republic. The value in use for the CGUs would be the same as that which would be derived from discounting pre-tax cash flows at these pre-tax discount rates. The sales growth rates and operating
margins used to estimate future performance are based on past performance and our experience of growth rates and operating margins achievable in Aholds main markets. The average annual compound sales growth rates applied in the projected
periods ranged between 13.6% and 14.2% for the CGUs of our online business and between 0.7% and 4.0% for the other CGUs. The average operating margins applied in the projected periods ranged between 0.8% and 2.1% for the CGUs of our online business
and between 2.6% and 5.9% for the other CGUs. Growth rates used to extrapolate cash flows beyond the explicit forecast period are set such that the return on invested capital never exceeds the weighted average cost of capital of the CGUs.



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13 Intangible assets (continued)



Lease-related intangible assets consist primarily of favorable operating lease contracts acquired
in business acquisitions. Customer relationships consist primarily of pharmacy scripts and customer lists recognized through the acquisition of bol.com in 2012. Brand names include the name bol.com. Ahold expects that bol.com will play
an important role in its business strategy and believes there is currently no foreseeable limit to the period over which the brand is expected to generate net cash inflows. Therefore the brand is assessed to have an indefinite useful life. The asset
is tested for impairment in accordance with the policies as stated inNote 3. Other mainly includes intangible assets related to location development rights, deed restrictions and similar assets. Included in Other is
an intangible asset allocated to Stop & Shop New England with an indefinite useful life and a carrying value of 32 million (2014:
28 million). The useful life of this asset is assessed to be indefinite since it relates to the land portion of an owned location. Also included in 2014 was the prepaid purchase consideration
for the transfer of C1000 stores of 74 million. In 2015 and 2014, Ahold recognized 9 million and 8 million, respectively, of impairment losses for the prepaid consideration. In 2015, the remaining amount was reallocated to the appropriate intangible assets (mainly goodwill) as agreements
were reached with the franchisees.

Intangible assets under development relate mainly to software development. Amortization of software in 2014 included 10 million of accelerated amortization that resulted from a re-evaluation of the useful lives.

14 Investments in joint ventures and associates

In 1992, Ahold partnered with Jerónimo Martins, SGPS, S.A.
in the joint venture JMR - Gestão de Empresas de Retalho, SGPS, S.A. (JMR). Ahold holds 49% of the shares in JMR and shares equal voting power on JMRs board of directors with Jerónimo Martins, SGPS, S.A. JMR operates food retail
stores in Portugal under the brand name Pingo Doce. JMR is a joint venture and is accounted for using the equity method. There is no quoted market price available.

Ahold is also a partner in various smaller joint arrangements and associates that are individually not material to the Group.

Changes in the carrying amount of Aholds interest in joint ventures and associates are as follows:



|                                           |  |         |     |   |           |  |    |           |  |  |         |   |  |           |     |   |           |  |    |   |  |  |     |  
|------------------------------------------ |  | ------- | --- | - | --------- |  | -- | --------- |  |  | ------- | - |  | --------- | --- | - | --------- |  | -- | - |  |  | --- | -
| million                                  |  | JMR2015 |     |   | Other2015 |  |    | Total2015 |  |  | JMR2014 |   |  | Other2014 |     |   | Total2014 | 
|Beginning of the year                      |  |         | 173 |   |           |  | 33 |           |  |  | 206     |   |  |           | 167 |   |           |  | 30 |   |  |  | 197 |  
|Share in income (loss) of joint ventures   |  |         | 24  |   |           |  | (4 | )         |  |  | 20      |   |  |           | 22  |   |           |  | 2  |   |  |  | 24  |  
|Dividend                                   |  |         | (17 | ) |           |  | (4 | )         |  |  | (21     | ) |  |           | (17 | ) |           |  | (1 | ) |  |  | (18 | )
|Share of other comprehensive income (loss) |  |         | 1   |   |           |  |   |           |  |  | 1       |   |  |           |    |   |           |  |   |   |  |  |    |  
|Other changes in equity of joint ventures  |  |         |    |   |           |  | 3  |           |  |  | 3       |   |  |           | 1   |   |           |  |   |   |  |  | 1   |  
|Exchange rate differences                  |  |         |    |   |           |  | 3  |           |  |  | 3       |   |  |           |    |   |           |  | 2  |   |  |  | 2   |  
|End of the year                            |  |         | 181 |   |           |  | 31 |           |  |  | 212     |   |  |           | 173 |   |           |  | 33 |   |  |  | 206 |  

Share in income (loss) from continuing operations for Aholds interests in all individually immaterial joint ventures was a loss of 4 million (2014: 2 million income and 2013: 1 million income) and nil for
individually immaterial associates (2014 and 2013: nil).



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14 Investments in joint ventures and associates (continued)



Set out below is the summarized financial information for JMR (on a 100% basis).



|                                                    |  |         |       |   |         |  |        |  
|--------------------------------------------------- |  | ------- | ----- | - | ------- |  | ------ | -
| million                                           |  | JMR2015 |       |   | JMR2014 | 
|Summarized balance sheet                            |  |         |       |   |         |  |        |  
|Current                                             |  |         |       |   |         |  |        |  
|Cash and cash equivalents                           |  |         | 51    |   |         |  | 74     |  
|Other current assets                                |  |         | 336   |   |         |  | 312    |  
|Total current assets                                |  |         | 387   |   |         |  | 386    |  
|Financial liabilities (excluding trade payables)    |  |         | (20   | ) |         |  | (250   | )
|Other current liabilities                           |  |         | (976  | ) |         |  | (879   | )
|Total current liabilities                           |  |         | (996  | ) |         |  | (1,129 | )
|Non-current                                         |  |         |       |   |         |  |        |  
|Assets                                              |  |         | 1,151 |   |         |  | 1,121  |  
|Financial liabilities                               |  |         | (150  | ) |         |  |       |  
|Other liabilities                                   |  |         | (29   | ) |         |  | (29    | )
|Total non-current liabilities                       |  |         | (179  | ) |         |  | (29    | )
|Net assets                                          |  |         | 363   |   |         |  | 349    |  
|Net assets attributable to JMR                      |  |         | 369   |   |         |  | 354    |  
|Net assets attributable to non-controlling interest |  |         | (6    | ) |         |  | (5     | )



|                                                           |  |         |       |   |         |  |       |         |  |  |       |  
|---------------------------------------------------------- |  | ------- | ----- | - | ------- |  | ----- | ------- |  |  | ----- | -
| million                                                  |  | JMR2015 |       |   | JMR2014 |  |       | JMR2013 | 
|Summarized statement of comprehensive income               |  |         |       |   |         |  |       |         |  |  |       |  
|Net sales                                                  |  |         | 3,743 |   |         |  | 3,565 |         |  |  | 3,499 |  
|Depreciation and amortization                              |  |         | (99   | ) |         |  | (100  | )       |  |  | (102  | )
|Interest income                                            |  |         |      |   |         |  |      |         |  |  | 1     |  
|Interest expense                                           |  |         | (9    | ) |         |  | (13   | )       |  |  | (23   | )
|Income tax expense                                         |  |         | (19   | ) |         |  | (19   | )       |  |  | (26   | )
|Income from continuing operations                          |  |         | 47    |   |         |  | 44    |         |  |  | 17    |  
|Net income                                                 |  |         | 47    |   |         |  | 44    |         |  |  | 17    |  
|Net income attributable to JMR                             |  |         | 48    |   |         |  | 46    |         |  |  | 18    |  
|Net income (loss) attributable to non-controlling interest |  |         | (1    | ) |         |  | (2    | )       |  |  | (1    | )
|Other comprehensive income                                 |  |         | 1     |   |         |  | 1     |         |  |  | 1     |  
|Total comprehensive income attributable to JMR             |  |         | 49    |   |         |  | 47    |         |  |  | 19    |  



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##### Table of Contents

14 Investments in joint ventures and associates (continued)



The information presented below represents a reconciliation of the summarized financial information
presented above to the carrying amount of JMR.



|                                       |  |         |     |   |         |  |     |  
|-------------------------------------- |  | ------- | --- | - | ------- |  | --- | -
| million                              |  | JMR2015 |     |   | JMR2014 | 
|Opening net assets attributable to JMR |  |         | 354 |   |         |  | 341 |  
|Net income                             |  |         | 48  |   |         |  | 46  |  
|Other comprehensive income             |  |         | 1   |   |         |  | 1   |  
|Dividend                               |  |         | (34 | ) |         |  | (34 | )
|Closing net assets attributable to JMR |  |         | 369 |   |         |  | 354 |  
|Interest in joint venture              |  |         | 49  | % |         |  | 49  | %
|Carrying value                         |  |         | 181 |   |         |  | 173 |  

Commitments and contingent liabilities in respect of joint ventures and associates

There are no contingent liabilities or significant restrictions relating to the Companys interest in the joint ventures and associates. The commitments are
presented in Note 34.

15 Other non-current financial assets



|                                         |  |                |     |  |                  |  |     | 
|---------------------------------------- |  | -------------- | --- |  | ---------------- |  | --- | 
| million                                |  | January 3,2016 |     |  | December 28,2014 | 
|Derivative financial instruments         |  |                | 338 |  |                  |  | 310 | 
|Defined benefit asset                    |  |                |    |  |                  |  | 5   | 
|Reinsurance assets                       |  |                | 135 |  |                  |  | 117 | 
|Loans receivable                         |  |                | 31  |  |                  |  | 36  | 
|Other                                    |  |                | 12  |  |                  |  | 14  | 
|Total other non-current financial assets |  |                | 516 |  |                  |  | 482 | 

For more information on derivative financial instruments and fair values, see Note 30.

The defined benefit asset in 2014 represents defined benefit pension plans for which the fair value of plan assets exceeds the present value of the defined benefit
obligations. For more information on defined benefit plans, see Note 23.

Of the non-current loans receivable,
14 million matures between one and five years and 17 million after five years (December 28, 2014: 18 million between one and five years and 18 million after five years). The current portion of loans receivable of 10 million is included in other receivables (December 28, 2014: 4 million).

Part of the self-insured risk is ceded under a reinsurance treaty, which is a pooling arrangement between unrelated companies. At the same time, Ahold assumes a share of
the reinsurance treaty risks that is measured by Aholds participation percentage in the treaty. The participation percentage is the ratio of premium paid by Ahold to the total premium paid by all treaty members. In connection with this pooling
arrangement, the Company recognizes reinsurance assets and reinsurance liabilities (see also Notes 18, 22 and 26) on its balance sheet. There were no significant gains or losses related to this pooling arrangement during
2015, 2014 or 2013.



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##### Table of Contents

16 Inventories



|                                                                 |  |                |       |  |                  |  |       | 
|---------------------------------------------------------------- |  | -------------- | ----- |  | ---------------- |  | ----- | 
| million                                                        |  | January 3,2016 |       |  | December 28,2014 | 
|Finished products and merchandise inventories                    |  |                | 1,636 |  |                  |  | 1,543 | 
|Raw materials, packaging materials, technical supplies and other |  |                | 40    |  |                  |  | 46    | 
|Total inventories                                                |  |                | 1,676 |  |                  |  | 1,589 | 

In 2015, 793 million has been recognized as a write-off of inventories in the
income statement (2014: 664 million and 2013: 644 million). The write-off of inventories is Aholds best estimate based on
significant assumptions applied to certain products measured using the retail method.

17 Receivables



|                             |  |                |     |   |                  |  |     |  
|---------------------------- |  | -------------- | --- | - | ---------------- |  | --- | -
| million                    |  | January 3,2016 |     |   | December 28,2014 | 
|Trade receivables            |  |                | 416 |   |                  |  | 390 |  
|Vendor allowance receivables |  |                | 260 |   |                  |  | 203 |  
|Other receivables            |  |                | 181 |   |                  |  | 155 |  
|                             |  |                | 857 |   |                  |  | 748 |  
|Provision for impairment     |  |                | (20 | ) |                  |  | (20 | )
|Total receivables            |  |                | 837 |   |                  |  | 728 |  

The receivable balances are presented net of accounts payable subject to an enforceable netting arrangement between the Company and the
counterparty. The total effect of netting as of January 3, 2016, is 142 million (December 28, 2014: 136 million).

At January 3, 2016, the aging analysis of receivables was as follows:



|                             |  |       |     |   |             |  |     |           |  |  |           |   |  |            |    |   |            |  |    |   |  |  |     |  
|---------------------------- |  | ----- | --- | - | ----------- |  | --- | --------- |  |  | --------- | - |  | ---------- | -- | - | ---------- |  | -- | - |  |  | --- | -
|                             |  |       |     |   |             |  |     | Past due  | 
| million                    |  | Total |     |   | Not pastdue |  |     | 03months |  |  | 36months |   |  | 612months |    |   | > 12months | 
|Trade receivables            |  |       | 416 |   |             |  | 329 |           |  |  | 57        |   |  |            | 7  |   |            |  | 3  |   |  |  | 20  |  
|Vendor allowance receivables |  |       | 260 |   |             |  | 214 |           |  |  | 40        |   |  |            | 4  |   |            |  | 1  |   |  |  | 1   |  
|Other receivables            |  |       | 181 |   |             |  | 107 |           |  |  | 43        |   |  |            | 22 |   |            |  | 5  |   |  |  | 4   |  
|                             |  |       | 857 |   |             |  | 650 |           |  |  | 140       |   |  |            | 33 |   |            |  | 9  |   |  |  | 25  |  
|Provision for impairment     |  |       | (20 | ) |             |  |    |           |  |  | (2        | ) |  |            | (2 | ) |            |  | (2 | ) |  |  | (14 | )
|Total receivables            |  |       | 837 |   |             |  | 650 |           |  |  | 138       |   |  |            | 31 |   |            |  | 7  |   |  |  | 11  |  

Receivables that were past due but not impaired relate to a number of independent customers for whom there is no recent history of
default.



46



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##### Table of Contents

17 Receivables (continued)



At December 28, 2014, the aging analysis of receivables was as follows:



|                             |  |       |     |   |             |  |     |           |  |  |           |   |  |            |    |   |            |  |    |   |  |  |     |  
|---------------------------- |  | ----- | --- | - | ----------- |  | --- | --------- |  |  | --------- | - |  | ---------- | -- | - | ---------- |  | -- | - |  |  | --- | -
|                             |  |       |     |   |             |  |     | Past due  | 
| million                    |  | Total |     |   | Not pastdue |  |     | 03months |  |  | 36months |   |  | 612months |    |   | > 12months | 
|Trade receivables            |  |       | 390 |   |             |  | 288 |           |  |  | 60        |   |  |            | 11 |   |            |  | 14 |   |  |  | 17  |  
|Vendor allowance receivables |  |       | 203 |   |             |  | 173 |           |  |  | 25        |   |  |            | 3  |   |            |  | 1  |   |  |  | 1   |  
|Other receivables            |  |       | 155 |   |             |  | 94  |           |  |  | 41        |   |  |            | 13 |   |            |  | 1  |   |  |  | 6   |  
|                             |  |       | 748 |   |             |  | 555 |           |  |  | 126       |   |  |            | 27 |   |            |  | 16 |   |  |  | 24  |  
|Provision for impairment     |  |       | (20 | ) |             |  |    |           |  |  | (2        | ) |  |            | (1 | ) |            |  | (2 | ) |  |  | (15 | )
|Total receivables            |  |       | 728 |   |             |  | 555 |           |  |  | 124       |   |  |            | 26 |   |            |  | 14 |   |  |  | 9   |  

The concentration of credit risk with respect to receivables is limited, as the Companys customer base and vendor base are large and
unrelated. The Company does not hold any significant collateral on its receivables. Management believes there is no further credit risk provision required in excess of the normal individual and collective impairment, based on the aging analysis
performed as of January 3, 2016. For more information about credit risk, see Note 30.

The changes in the provision for impairment were as follows:



|                               |  |      |     |   |      |  |     |  
|------------------------------ |  | ---- | --- | - | ---- |  | --- | -
| million                      |  | 2015 |     |   | 2014 | 
|Beginning of the year          |  |      | (20 | ) |      |  | (19 | )
|Released / (charged) to income |  |      | (11 | ) |      |  | (8  | )
|Used                           |  |      | 11  |   |      |  | 7   |  
|End of the year                |  |      | (20 | ) |      |  | (20 | )



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##### Table of Contents

18 Other current financial assets



|                                                   |  |                 |     |  |                   |  |     | 
|-------------------------------------------------- |  | --------------- | --- |  | ----------------- |  | --- | 
| million                                          |  | January 3, 2016 |     |  | December 28, 2014 | 
|Short-term deposits and similar instruments        |  |                 | 528 |  |                   |  | 262 | 
|Reinsurance assets  current portion (see Note 15) |  |                 | 68  |  |                   |  | 60  | 
|Other                                              |  |                 |    |  |                   |  | 1   | 
|Total other current financial assets               |  |                 | 596 |  |                   |  | 323 | 

As of January 3, 2016, short-term deposits and similar instruments included short-term investments with a maturity at acquisition of
between three and twelve months.

Of the short-term deposits and similar instruments as of January 3, 2016,
10 million was restricted (December 28, 2014: 16 million). This primarily consisted of investments held for insurance purposes for
U.S. workers compensation and general liability programs.

Other included in Other financial expenses in 2014 mainly consisted of the
current portion of the derivative financial instruments. For more information on financial instruments and fair values, see Note 30.

19 Cash and cash equivalents



|                                   |  |                 |       |  |                   |  |       | 
|---------------------------------- |  | --------------- | ----- |  | ----------------- |  | ----- | 
| million                          |  | January 3, 2016 |       |  | December 28, 2014 | 
|Cash in banks and cash equivalents |  |                 | 1,363 |  |                   |  | 1,281 | 
|Cash on hand                       |  |                 | 463   |  |                   |  | 343   | 
|Total cash and cash equivalents    |  |                 | 1,826 |  |                   |  | 1,624 | 

Of the cash and cash equivalents as of January 3, 2016, 7 million was
restricted (December 28, 2014: 9 million). This primarily consisted of cash held in escrow accounts mainly related to pending litigations and construction activities.

Aholds banking arrangements allow the Company to fund outstanding checks when presented to the bank for payment. This cash management practice may result in a net
cash book overdraft position, which occurs when the total issued checks exceed available cash balances within the Companys cash concentration structure. Such book overdrafts are classified in accounts payable and amounted to 216 million and 184 million as of January 3, 2016, and December 28, 2014, respectively. No right to offset with other bank
balances exists for these book overdraft positions.



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##### Table of Contents

20 Equity attributable to common shareholders

Shares and share capital

Authorized share capital
comprises the following classes of shares as of January 3, 2016:



|                                                                                                             |  |      |    |  |      |  |    | 
|------------------------------------------------------------------------------------------------------------ |  | ---- | -- |  | ---- |  | -- | 
| million                                                                                                    |  | 2015 |    |  | 2014 | 
|Common shares (2015: 1,171,000,000 at 0.01 par value each, and 2014: 1,700,000,000 of
0.01 par value each) |  |      | 12 |  |      |  | 17 | 
|Cumulative preferred shares (2015: 30,000 of
500 par value each, and 2014: 43,520 of 500 par value each)   |  |      | 15 |  |      |  | 22 | 
|Total authorized share capital                                                                               |  |      | 27 |  |      |  | 39 | 

In addition, Ahold has cumulative preferred financing shares outstanding. These cumulative preferred financing shares are considered debt
under IFRS until the date that Ahold receives irrevocable notification from a holder of cumulative preferred financing shares to convert these shares into common shares. Upon this notification, the cumulative preferred financing shares
are classified as a separate class of equity since they no longer meet the definition of a liability. For disclosures regarding Aholds cumulative preferred financing shares, see Note 22.

Common shares and additional paid-in capital

Changes in the number of common shares and the number of treasury shares were as follows:



|                                |  |                                                         |           |   |                                     |  |         |                                               |  |  |           |  
|------------------------------- |  | ------------------------------------------------------- | --------- | - | ----------------------------------- |  | ------- | --------------------------------------------- |  |  | --------- | -
|                                |  | Number of common shares issued and fully paid (x 1,000) |           |   | Number of treasury shares (x 1,000) |  |         | Number of common shares outstanding (x 1,000) | 
|Balance as of December 30, 2012 |  |                                                         | 1,060,988 |   |                                     |  | 22,481  |                                               |  |  | 1,038,507 |  
|Share buyback                   |  |                                                         |          |   |                                     |  | 61,009  |                                               |  |  | (61,009   | )
|Share-based payments            |  |                                                         |          |   |                                     |  | (4,995  | )                                             |  |  | 4,995     |  
|Balance as of December 29, 2013 |  |                                                         | 1,060,988 |   |                                     |  | 78,495  |                                               |  |  | 982,493   |  
|Share buyback                   |  |                                                         |          |   |                                     |  | 92,485  |                                               |  |  | (92,485   | )
|Reverse stock split             |  |                                                         | (81,615   | ) |                                     |  | (7,999  | )                                             |  |  | (73,616   | )
|Cancelation of treasury shares  |  |                                                         | (85,000   | ) |                                     |  | (85,000 | )                                             |  |  |          |  
|Share-based payments            |  |                                                         |          |   |                                     |  | (6,205  | )                                             |  |  | 6,205     |  
|Balance as of December 28, 2014 |  |                                                         | 894,373   |   |                                     |  | 71,776  |                                               |  |  | 822,597   |  
|Share buyback                   |  |                                                         |          |   |                                     |  | 8,795   |                                               |  |  | (8,795    | )
|Cancelation of treasury shares  |  |                                                         | (60,000   | ) |                                     |  | (60,000 | )                                             |  |  |          |  
|Share-based payments            |  |                                                         |          |   |                                     |  | (4,669  | )                                             |  |  | 4,669     |  
|Balance as of January 3, 2016   |  |                                                         | 834,373   |   |                                     |  | 15,902  |                                               |  |  | 818,471   |  

Dividends on common shares

On April 15, 2015, the General Meeting of Shareholders approved the dividend over 2014 of 0.48 per common
share (396 million in the aggregate). This dividend was paid on April 30, 2015. The Management Board, with the approval of the Supervisory Board, proposes that a dividend of 0.52 per common share be paid in 2016 with respect to 2015. This dividend is subject to approval by the General Meeting of Shareholders and has not been included as a liability on the
consolidated balance sheet as of January 3, 2016. The payment of this dividend will not have income tax consequences for the Company.

Share buyback and capital repayment and reverse stock split

On February 26, 2015, Ahold announced its decision to return 500 million to its shareholders by way of a
share buyback program, to be completed over a 12-month period. Under this program, 8,795,407 of the Companys own shares were repurchased in 2015. Shares were repurchased at an average price of
18.32 per share for a total amount of 161 million. As a result of the announcement that Ahold intends to merge with Delhaize, the
share buyback program was terminated and approximately 1 billion will be returned to shareholders via a capital return and reverse stock split, subject to the conditions as explained in Note
35.



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##### Table of Contents

20 Equity attributable to common shareholders (continued)



On December 12, 2014, Ahold completed its share buyback program initially announced as 500 million on February 28, 2013, and subsequently increased to 2 billion on June 4, 2013. Under this program, 153,494,149 of the
Companys own shares were repurchased in 2013 and 2014 (2013: 61,008,851 and 2014: 92,485,298) for a total consideration of 2 billion (2013:
768 million and 2014: 1,232 million), at an average price of 13.03 (2013: 12.58 and 2014: 13.32).

On January 21, 2014, a capital
repayment and reverse stock split was approved at an Extraordinary General Meeting of Shareholders. On March 28, 2014, the reverse stock split became effective. Every 13 existing shares with a nominal value of 0.30 each were consolidated into 12 new shares with a nominal value of 0.01 each. The capital repayment of 1.14 per remaining share, 1,007 million in the aggregate (excluding transaction costs), took place on April 3, 2014. The capital
reduction attributable to treasury shares, which was 109 million in the aggregate, is reported in Other reserves.

Of the total shares repurchased, 60,000,000 were canceled on July 7, 2015 and 85,000,000 were canceled on June 20, 2014.

Share-based payments

Share-based payments recognized in
equity in the amount of 66 million (2014: 50 million and 2013: 61 million)
relate to the 2015 GRO share-based compensation expenses of 47 million (2014: 43 million and 2013: 43 million) (see Note 32); the stock options exercised of nil (2014: 1 million and 2013:
6 million); and the current and deferred income taxes recognized in and transferred from equity relating to share-based compensation of
19 million (2014: 6 million and 2013: 12 million) (seeNote 10).

Cumulative preferred shares

The
Companys Articles of Association provide for the possible issuance of cumulative preferred shares. The Company believes that its ability to issue this class of shares could prevent, or at least delay, an attempt by a potential bidder to make a
hostile takeover bid. However, according to Dutch law, a response device is limited in time and therefore cannot permanently block a take-over of the company concerned. Instead, it aims to facilitate an orderly process in which the interests of the
continuity of the company, its shareholders and other stakeholders are safeguarded in the best way possible. Moreover, outside the scope of a public offer, but also under other circumstances, the ability to issue this class of shares may safeguard
the interests of the Company and all stakeholders in the Company and resist influences that might conflict with those interests by affecting the Companys continuity, independence or identity. No cumulative preferred shares were outstanding as
of January 3, 2016, or during 2015, 2014 and 2013.

In March 1989, the Company entered into an agreement with Stichting Ahold Continuïteit (SAC) as amended
and restated in April 1994, March 1997, December 2001, and December 2003 (the Option Agreement). Pursuant to the Option Agreement, SAC was granted an option for no consideration to acquire cumulative preferred shares from the Company, from
time to time until December 2018. The Company will submit a request to continue this arrangement to shareholders at the Extraordinary General Meeting of Shareholders on March 14, 2016. The Option Agreement entitles SAC to acquire cumulative
preferred shares from the Company up to a total par value that is equal to the total par value of all issued and outstanding shares of Aholds share capital, excluding cumulative preferred shares, at the time of exercising the option. In
case the authorized share capital of the Company is amended during the term of the option, the Option Agreement provides for a corresponding change of the total par value of cumulative preferred shares under option. The holders of the
cumulative preferred shares are entitled to 50,000 votes per share and a cumulative dividend expressed as a percentage of the amount called-up and paid-in to purchase the cumulative preferred shares. The percentage to be applied is the sum of
(1) the average basic refinancing transaction interest rate as set by the European Central Bank - measured by the number of days during which that rate was in force in the fiscal year over which the dividend is paid - plus 2.1%, and
(2) the average interest surcharge rate - measured by the number of days during which that rate was in force in the fiscal year over which the dividend is paid - that would be charged by the largest credit institution in the Netherlands (based
on the balance sheet total as of the close of the fiscal year immediately preceding the fiscal year over which the dividend is paid). The minimum percentage to be applied is 5.75%. Subject to limited exceptions, any potential transfer of cumulative
preferred shares requires the approval of the Management Board. Cumulative preferred shares can only be issued in a registered form. The Company may stipulate that only 25% of the par value will be paid upon subscription to cumulative preferred
shares until payment in full is later required by the Company. SAC would then only be entitled to a market-based interest return on its investment.



50



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##### Table of Contents

20 Equity attributable to common shareholders (continued)



SAC is a foundation organized under the laws of the Netherlands. Its purpose under its articles is
to safeguard the interests of the Company and all stakeholders in the Company and to resist, to the best of its ability, influences that might conflict with those interests by affecting the Companys continuity, independence or identity.
SAC seeks to realize its objectives by acquiring and holding cumulative preferred shares and by exercising the rights attached to these shares, including the voting rights. The SAC board has four members, who are appointed by the board of SAC
itself.

If the board of SAC considers acquiring cumulative preferred shares or exercising voting rights on cumulative preferred shares, it will make an independent
assessment and, pursuant to Dutch law, it must ensure that its actions are proportional and reasonable. If SAC acquires cumulative preferred shares, it will only hold them for a limited period of time. These principles are in line with Dutch law,
which only allows response measures that are proportionate, reasonable and limited in time. In the case of liquidation, the SAC board will decide on the use of any remaining residual assets.

Legal reserves

In accordance with the Dutch Civil
Code and statutory requirements in other countries, legal reserves have to be established in certain circumstances. Legal reserves are not available for distribution to the Companys shareholders. The currency translation reserve, cash
flow hedging reserve and other reserves include non-distributable amounts. Of the total equity as per January 3, 2016, of 5,622 million, an amount of 579 million is non-distributable (December 28, 2014: 219 million out of total equity of
4,844 million and December 29, 2013: 513 million out of total equity of
6,520 million).

The currency translation reserve, cash flow hedging reserve and legal reserve participations
are legal reserves that are required by Dutch law. The legal reserve participations include the increases in net asset value of joint ventures and associates since their first inclusion, less any amounts that can be distributed without legal
restrictions. The legal reserve participations are included in Other reserves. As at January 3, 2016, the balance of the legal reserve participations was 225 million (December 28,
2014: 210 million and December 29, 2013: 195 million).

If the currency translation reserve or the cash flow hedging reserve has a negative balance, distributions to the Companys shareholders are restricted to the extent
of the negative balance.



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21 Loans and credit facilities

The notes in the table below were issued by Ahold or one of its subsidiaries, the latter of which are guaranteed by Ahold unless otherwise noted. All related swap
contracts have the same maturity as the underlying debt unless otherwise noted.



|                                                |  |                            |                      |  |                     |              |     |                     |  |  |                            |   |  |                     |       |   |                       |  |    |  |  |  |     |   |  |  |     |   |  |  |       |  
|----------------------------------------------- |  | -------------------------- | -------------------- |  | ------------------- | ------------ | --- | ------------------- |  |  | -------------------------- | - |  | ------------------- | ----- | - | --------------------- |  | -- |  |  |  | --- | - |  |  | --- | - |  |  | ----- | -
|                                                |  | Currentportionwithin1 year |                      |  | Non-current portion |              |     | TotalJanuary 3,2016 |  |  | Currentportionwithin1 year |   |  | Non-current portion |       |   | TotalDecember 28,2014 | 
| million                                       |  |                            | Between1 and 5 years |  |                     | After5 years |     |                     |  |  | Between1 and 5 years       |   |  | After5 years        |       |  
|                                                | 
|Notional redemption amounts                     |  |                            |                      |  |                     |              |     |                     |  |  |                            |   |  |                     |       |   |                       |  |    |  |  |  |     |   |  |  |     |   |  |  |       |  
|GBP 500 notes 6.50%, due March 20171            |  |                            |                     |  |                     |              | 334 |                     |  |  |                           |   |  |                     | 334   |   |                       |  |   |  |  |  | 310 |   |  |  |    |   |  |  | 310   |  
|USD 94 indebtedness 7.82%, due January 20202    |  |                            | 9                    |  |                     |              | 26  |                     |  |  |                           |   |  |                     | 35    |   |                       |  | 8  |  |  |  | 31  |   |  |  |    |   |  |  | 39    |  
|USD 71 indebtedness 8.62%, due January 2025     |  |                            |                     |  |                     |              | 8   |                     |  |  | 57                         |   |  |                     | 65    |   |                       |  |   |  |  |  |    |   |  |  | 58  |   |  |  | 58    |  
|USD 500 notes 6.875%, due May 2029              |  |                            |                     |  |                     |              |    |                     |  |  | 460                        |   |  |                     | 460   |   |                       |  |   |  |  |  |    |   |  |  | 411 |   |  |  | 411   |  
|JPY 33,000 notes LIBOR plus 1.5%, due May 20313 |  |                            |                     |  |                     |              |    |                     |  |  | 253                        |   |  |                     | 253   |   |                       |  |   |  |  |  |    |   |  |  | 225 |   |  |  | 225   |  
|Deferred financing costs                        |  |                            |                     |  |                     |              | (1  | )                   |  |  | (2                         | ) |  |                     | (3    | ) |                       |  |   |  |  |  | (1  | ) |  |  | (2  | ) |  |  | (3    | )
|Total notes                                     |  |                            | 9                    |  |                     |              | 367 |                     |  |  | 768                        |   |  |                     | 1,144 |   |                       |  | 8  |  |  |  | 340 |   |  |  | 692 |   |  |  | 1,040 |  
|Other loans                                     |  |                            |                     |  |                     |              | 1   |                     |  |  | 2                          |   |  |                     | 3     |   |                       |  |   |  |  |  | 1   |   |  |  | 2   |   |  |  | 3     |  
|Financing obligations4                          |  |                            | 22                   |  |                     |              | 102 |                     |  |  | 273                        |   |  |                     | 397   |   |                       |  | 20 |  |  |  | 92  |   |  |  | 275 |   |  |  | 387   |  
|Mortgages payable5                              |  |                            |                     |  |                     |              | 2   |                     |  |  | 7                          |   |  |                     | 9     |   |                       |  | 2  |  |  |  | 2   |   |  |  | 6   |   |  |  | 10    |  
|Total loans                                     |  |                            | 31                   |  |                     |              | 472 |                     |  |  | 1,050                      |   |  |                     | 1,553 |   |                       |  | 30 |  |  |  | 435 |   |  |  | 975 |   |  |  | 1,440 |  

1 During 2005, Ahold bought back GBP 250 million of the notes. The remaining notional redemption amount of GBP 250 million (340 million) has been netted with 6 million as per January 3, 2016 (December 28, 2014: 9 million) representing an amount, amortized over the remaining terms of the notes, that relates to a hedging instrument that stopped qualifying for fair value hedge accounting. The remaining
notional amount of the GBP 250 million was swapped to U.S. dollar (see Note 30 for additional information).

2 As of January 3, 2016, $57 million has
been repaid since inception.

3 Notes were swapped to 299 million at an interest rate of 7.065% (see
Note 30 for additional information related to the JPY cross-currency swap).

4 The weighted average interest rate for the financing obligations amounted to
7.6% in 2015 (2014: 7.7% and 2013: 7.9%).

5 Mortgages payable are collateralized by buildings and land. The weighted average interest rate for these mortgages
payable amounted to 5.6% in 2015 (2014: 5.6% and 2013: 5.9%).

The fair values of financial instruments, corresponding derivatives, and the foreign exchange and
interest rate risk management policies applied by Ahold are disclosed inNote 30.

The Company has a Euro Medium Term Note (EMTN) program that had an aggregate
of 593 million of outstanding notes as of January 3, 2016. The notes issued under the program include the remaining outstanding balances of GBP 500 million and JPY
33,000 million notes, maturing in 2017 and 2031, respectively. The notes issued under the EMTN program contain customary restrictive covenants. During 2015, Ahold was in compliance with these covenants.



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##### Table of Contents

21 Loans and credit facilities (continued)



Credit facilities

Ahold has access to an unsecured, committed, multi-currency and syndicated credit facility that was refinanced in June 2011. In February 2015, the facility was amended
from 1.2 billion to 1.0 billion, and the maturity date was extended from 2018 to 2020, with the possibility of 12-month extensions in the
first two years. In early 2016, Ahold requested to exercise the first of these options and extended the maturity date to February 2021. The credit facility may be used for working capital and for general corporate purposes and provides for the
issuance of letters of credit to an aggregate maximum amount of $275 million (253 million). The 1.0 billion facility contains customary
covenants and is subject to a financial covenant that requires Ahold, in case its corporate rating is lower than BBB / Baa2 from Standard & Poors and Moodys respectively, not to exceed a maximum leverage ratio, as defined in the
facility agreement of 4.0:1. During 2015, Ahold was in compliance with these covenants. As of January 3, 2016, there were no outstanding borrowings under the facility other than letters of credit to an aggregate amount of $18 million (16 million).

A bilateral facility for standby letter of credit was increased in 2015 to a total amount of $226
million (208 million), and was fully used per January 3, 2016.

Ahold also has access to various
uncommitted credit facility lines serving working capital needs that, as of January 3, 2016, totaled 226 million. As of January 3, 2016, nothing was drawn under these credit facility
lines.

22 Other non-current financial liabilities



|                                              |  |                |       |  |                  |  |       | 
|--------------------------------------------- |  | -------------- | ----- |  | ---------------- |  | ----- | 
| million                                     |  | January 3,2016 |       |  | December 28,2014 | 
|Finance lease liabilities                     |  |                | 1,290 |  |                  |  | 1,125 | 
|Cumulative preferred financing shares         |  |                | 497   |  |                  |  | 497   | 
|Derivative financial instruments              |  |                | 210   |  |                  |  | 250   | 
|Reinsurance liabilities                       |  |                | 145   |  |                  |  | 126   | 
|Other                                         |  |                | 45    |  |                  |  | 41    | 
|Total other non-current financial liabilities |  |                | 2,187 |  |                  |  | 2,039 | 

For more information on derivative financial instruments and fair values (see Note 30).

The Company recognizes reinsurance liabilities on its balance sheet in connection with a pooling arrangement between unrelated companies (see Note 15).

Other mainly consists of a pre-tax liability for the discounted amount of the remaining settlement liability of $36 million
(33 million) relating to a 2013 agreement with the New England Teamsters and Trucking Industry Pension Fund (NETTI) to settle Stop & Shops pension liabilities in the fund.



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##### Table of Contents

22 Other non-current financial liabilities (continued)



Finance lease liabilities

Finance lease liabilities are payable as follows:



|                                                        |  |                               |       |  |                  |  |                   |                                         |  |  |       |  |                               |  |  |                  |       |  |                                         |  |     |  |  |  |       | 
|------------------------------------------------------- |  | ----------------------------- | ----- |  | ---------------- |  | ----------------- | --------------------------------------- |  |  | ----- |  | ----------------------------- |  |  | ---------------- | ----- |  | --------------------------------------- |  | --- |  |  |  | ----- | 
|                                                        |  | January 3, 2016               |       |  |                  |  | December 28, 2014 |                                        
| million                                               |  | Future
minimum lease payments |       |  | Interest
portion |  |                   | Present
value of minimum lease
payments |  |  |       |  | Future
minimum lease
payments |  |  | Interest
portion |       |  | Present
value of minimum
lease payments | 
|Within one year                                         |  |                               | 209   |  |                  |  | 99                |                                         |  |  | 110   |  |                               |  |  |                  | 179   |  |                                         |  | 91  |  |  |  | 88    | 
|Between one and five years                              |  |                               | 790   |  |                  |  | 306               |                                         |  |  | 484   |  |                               |  |  |                  | 681   |  |                                         |  | 284 |  |  |  | 397   | 
|After five years                                        |  |                               | 1,110 |  |                  |  | 304               |                                         |  |  | 806   |  |                               |  |  |                  | 1,003 |  |                                         |  | 275 |  |  |  | 728   | 
|Total                                                   |  |                               | 2,109 |  |                  |  | 709               |                                         |  |  | 1,400 |  |                               |  |  |                  | 1,863 |  |                                         |  | 650 |  |  |  | 1,213 | 
|                                                        |  |                               |       |  |                  |  |                  
|Current portion finance lease liabilities (see Note 26) |  |                               |       |  |                  |  |                   |                                         |  |  | 110   |  |                               |  |  |                  |       |  |                                         |  |     |  |  |  | 88    | 
|Non-current portion finance lease liabilities           |  |                               |       |  |                  |  |                   |                                         |  |  | 1,290 |  |                               |  |  |                  |       |  |                                         |  |     |  |  |  | 1,125 | 

Finance lease liabilities are principally for buildings. Terms range primarily from 10 to 25 years and include renewal options if it is
reasonably certain, at the inception of the leases, that they will be exercised. At the time of entering into a finance lease agreement, the commitment is recorded at its present value using the interest rate implicit in the lease, if this is
practicable to determine; if not, the operating company-specific interest rate applicable for long-term borrowings is used. As of January 3, 2016, the finance lease liabilities are recorded at their present value at a weighted average interest
rate of 7.7% (December 28, 2014: 7.7%).

Certain store leases provide for contingent additional rentals based on a percentage of sales and consumer price indices.
Substantially all of the store leases have renewal options for additional terms. None of Aholds leases impose restrictions on Aholds ability to pay dividends, incur additional debt or enter into additional leasing arrangements.

During 2015, interest expense on finance lease liabilities was 100 million (2014: 90 million and 2013: 95 million), of which nil related to discontinued operations (2014: nil and 2013: 2 million ). Total future minimum sublease income expected to be received under non-cancelable subleases as of January 3, 2016, is
111 million (December 28, 2014: 107 million and December 29, 2013:
116 million). The total contingent rent expense recognized during the year on finance leases was 1 million expense (2014: 2 million income and 2013: 4 million expense).



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##### Table of Contents

22 Other non-current financial liabilities (continued)



Cumulative preferred financing shares



|                                                                        |  |                            |         |  |                   |  |     | 
|----------------------------------------------------------------------- |  | -------------------------- | ------- |  | ----------------- |  | --- | 
|                                                                        |  | Number
of shares (x 1,000) |         |  |  million         | 
|Issued cumulative preferred financing shares (0.01 par value each)     |  |                            | 268,415 |  |                   |  | 3   | 
|Authorized cumulative preferred financing shares
(0.01 par value each) |  |                            | 329,000 |  |                   |  | 3   | 
|                                                                        |  |                            |         |  |                   |  |     | 
| million                                                               |  | January 3,2016             |         |  | December 28,
2014 | 
|Paid-in capital issued cumulative preferred financing shares            |  |                            | 3       |  |                   |  | 3   | 
|Additional paid-in capital cumulative preferred financing shares        |  |                            | 494     |  |                   |  | 494 | 
|Balance as of year-end                                                  |  |                            | 497     |  |                   |  | 497 | 

The cumulative preferred financing shares were issued in four tranches. Dividends are paid on each preferred financing share at a
percentage (financing dividend percentage) that differs per tranche. When a period of 10 years has lapsed after the issue date of a tranche, and every 10 years thereafter (reset date), the financing dividend percentage is reset. The current
financing dividend percentage is 5.93% per year for the shares issued in June 1996, 6.08% per year for the shares issued in August 1998, 3.85% per year for the shares issued in October 2000, and 3.35% per year for the shares
issued in December 2003. The nominal value plus additional paid-in capital per tranche is 71 million (June 1996 tranche),
46 million (August 1998 tranche), 320 million (October 2000 tranche) and
60 million (December 2003 tranche); in the aggregate 497 million. This amount is presented under other non-current financial
liabilities in the consolidated balance sheet as these cumulative preferred financing shares are considered debt under IFRS.

The total number of votes that can
be exercised by the cumulative preferred financing shares is approximately 75 million. This represents approximately 8% of the total number of votes that can be cast (this total being calculated as the sum of the outstanding cumulative
preferred financing shares and the outstanding common shares).

The cumulative preferred financing shares are convertible into common shares. The conversion
conditions have been set so as to avoid any transfer of value from the common shares to the cumulative preferred financing shares. The maximum number of common shares to be received upon conversion of all outstanding cumulative preferred financing
shares is approximately 90 million. The conversion features are similar for all tranches. Conversion is allowed for all shares in one tranche held by one investor but not for fractions of tranches held by one investor. Upon conversion, the
holders of (depositary receipts of) cumulative preferred financing shares will receive a number of common shares that is calculated by dividing the value of the cumulative preferred financing shares on the day before the conversion date by the
average share price of Ahold common shares on the five trading days preceding the notification date, on the notification date, and on the four trading days following the notification date. The value of the cumulative preferred financing shares will
be considered, for this purpose, to be equal to the lower of the nominal value plus the additional paid-in capital of the cumulative preferred financing shares (par value) or to the present value of the remaining preferred dividends until the first
reset date plus the present value of the par value at the first reset date.

Subject to the approval of the General Meeting of Shareholders, the Company can redeem
the cumulative preferred financing shares of a certain tranche, but not fractions of a tranche. Redemption of a tranche is subject to the approval of the holders of depositary receipts of that tranche, unless all (remaining) cumulative preferred
financing shares are redeemed. Redemption takes place at the higher of the par value or the present value of the remaining preferred dividends plus the present value of the par value at the reset date.



55



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##### Table of Contents

23 Pensions and other post-employment benefits

Defined benefit plans

Ahold has a number of
defined benefit pension plans covering a substantial number of employees, former employees and retirees in the Netherlands and the United States. Generally, the plans are career average or final pay defined benefit plans. In addition, Ahold
provides additional pension benefits for certain company executives and life insurance and medical care benefits for certain retired employees meeting age and service requirements at its U.S. subsidiaries, all of which the Company funds as claims
are incurred.

The pension plans expose the Company to actuarial risks such as: longevity risk, interest rate risk, currency risk, salary risk and investment risk.
Longevity risk relates to the mortality assumptions used to value the defined benefit obligation, where an increase in participants life expectancies will increase a plans liability. Interest rate risk relates to the discount rate used
to value the defined benefit obligation, where a decrease in the discount rate will increase a plans liability; however this will be partially offset by an increase in the return on a plans investments in debt instruments. The pension
plans may mitigate interest rate risk by entering into interest rate swap contracts. Currency risk relates to the fact that a plan holds investments that may not be denominated in the same currency as the plans obligations. The pension plans
may mitigate currency risk by purchasing forward currency instruments. Salary risk relates to salary increase assumptions used to value the defined benefit obligation, where an increase will result in a higher plan liability. See below for more
details on the Companys asset-liability matching strategy employed to manage its investment risk.

Net assets relating to one plan are not offset against net
liabilities of another plan, resulting in the following presentation of the pension and other post-employment benefits on the consolidated balance sheet:



|                            |  |                |      |   |                  |  |      |  
|--------------------------- |  | -------------- | ---- | - | ---------------- |  | ---- | -
| million                   |  | January 3,2016 |      |   | December 28,2014 | 
|Defined benefit liabilities |  |                | (389 | ) |                  |  | (290 | )
|Defined benefit assets      |  |                |     |   |                  |  | 5    |  
|Total defined benefit plans |  |                | (389 | ) |                  |  | (285 | )

The defined benefit assets are part of the other non-current financial assets; for more information, see Note 15.



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##### Table of Contents

23 Pensions and other post-employment benefits (continued)



Net defined benefit cost is comprised of the following components. The net interest (income)
expense is presented within net financial expenses in the income statement and plan remeasurements are presented as other comprehensive income. All other components of net defined benefit cost are presented in the income statement as cost of sales,
selling expenses, and general and administrative expenses, depending on the functional areas of the employees earning the benefits.



|                                                                                  |  |      |      |   |      |  |      |      |  |  |      |  
|--------------------------------------------------------------------------------- |  | ---- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | -
| million                                                                         |  | 2015 |      |   | 2014 |  |      | 2013 | 
|Service cost                                                                      |  |      |      |   |      |  |      |      |  |  |      |  
|Current service cost                                                              |  |      | 132  |   |      |  | 104  |      |  |  | 119  |  
|Past service cost gain                                                            |  |      |     |   |      |  | (68  | )    |  |  |     |  
|Gain on settlement                                                                |  |      |     |   |      |  |     |      |  |  | (9   | )
|Net interest expense                                                              |  |      | 14   |   |      |  | 16   |      |  |  | 24   |  
|Administrative cost                                                               |  |      | 11   |   |      |  | 9    |      |  |  | 8    |  
|Components of defined benefit cost recorded in the income statement               |  |      | 157  |   |      |  | 61   |      |  |  | 142  |  
|                                                                                  |  |      |     
|Remeasurements recognized:                                                        |  |      |      |   |      |  |      |      |  |  |      |  
|Return on plan assets, excluding amounts included in net interest (income) / cost |  |      | 228  |   |      |  | (698 | )    |  |  | 102  |  
|(Gain) / loss from changes in demographic assumptions                             |  |      | (13  | ) |      |  | 53   |      |  |  | 13   |  
|(Gain) / loss from changes in financial assumptions                               |  |      | (186 | ) |      |  | 650  |      |  |  | (298 | )
|Experience gains (losses)                                                         |  |      | 24   |   |      |  | 20   |      |  |  | (47  | )
|Components of defined benefit cost recognized in other comprehensive income       |  |      | 53   |   |      |  | 25   |      |  |  | (230 | )
|Total net defined benefit cost                                                    |  |      | 210  |   |      |  | 86   |      |  |  | (88  | )



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23 Pensions and other post-employment benefits (continued)



The changes in the defined benefit obligations and plan assets in 2015 and 2014 were as follows:



|                                                                                   |  |                 |       |   |      |  |               |   |  |      |  |       |       |   |  |  |       |      |  |  |      |  |       |   |  |  |       |  
|---------------------------------------------------------------------------------- |  | --------------- | ----- | - | ---- |  | ------------- | - |  | ---- |  | ----- | ----- | - |  |  | ----- | ---- |  |  | ---- |  | ----- | - |  |  | ----- | -
|                                                                                   |  | The Netherlands |       |   |      |  | United States |   |  |      |  | Total |      
| million                                                                          |  | 2015            |       |   | 2014 |  |               |   |  | 2015 |  |       | 2014  |   |  |  |       | 2015 |  |  | 2014 | 
|Defined benefit obligations                                                        |  |                 |       |   |      |  |               |   |  |      |  |       |       |   |  |  |       |      |  |  |      |  |       |   |  |  |       |  
|Beginning of the year                                                              |  |                 | 4,027 |   |      |  | 3,372         |   |  |      |  |       | 1,308 |   |  |  | 1,020 |      |  |  |      |  | 5,335 |   |  |  | 4,392 |  
|Current service cost                                                               |  |                 | 108   |   |      |  | 87            |   |  |      |  |       | 24    |   |  |  | 17    |      |  |  |      |  | 132   |   |  |  | 104   |  
|Past service cost                                                                  |  |                 |      |   |      |  | (59           | ) |  |      |  |       |      |   |  |  | (9    | )    |  |  |      |  |      |   |  |  | (68   | )
|Interest expense                                                                   |  |                 | 94    |   |      |  | 124           |   |  |      |  |       | 61    |   |  |  | 52    |      |  |  |      |  | 155   |   |  |  | 176   |  
|Contributions by plan participants                                                 |  |                 | 19    |   |      |  | 18            |   |  |      |  |       |      |   |  |  |      |      |  |  |      |  | 19    |   |  |  | 18    |  
|Benefits paid                                                                      |  |                 | (82   | ) |      |  | (87           | ) |  |      |  |       | (72   | ) |  |  | (65   | )    |  |  |      |  | (154  | ) |  |  | (152  | )
|(Gain) loss from changes in demographic assumptions                                |  |                 | (12   | ) |      |  | 21            |   |  |      |  |       | (1    | ) |  |  | 32    |      |  |  |      |  | (13   | ) |  |  | 53    |  
|(Gain) loss from changes in financial assumptions1                                 |  |                 | (78   | ) |      |  | 527           |   |  |      |  |       | (108  | ) |  |  | 123   |      |  |  |      |  | (186  | ) |  |  | 650   |  
|Experience (gains) losses                                                          |  |                 | 18    |   |      |  | 24            |   |  |      |  |       | 6     |   |  |  | (4    | )    |  |  |      |  | 24    |   |  |  | 20    |  
|Exchange rate differences                                                          |  |                 |      |   |      |  |              |   |  |      |  |       | 157   |   |  |  | 142   |      |  |  |      |  | 157   |   |  |  | 142   |  
|End of the year                                                                    |  |                 | 4,094 |   |      |  | 4,027         |   |  |      |  |       | 1,375 |   |  |  | 1,308 |      |  |  |      |  | 5,469 |   |  |  | 5,335 |  
|                                                                                   |  |                 |       |   |      |  |               |  
|Plan assets                                                                        |  |                 |       |   |      |  |               |   |  |      |  |       |       |   |  |  |       |      |  |  |      |  |       |   |  |  |       |  
|Fair value of assets, beginning of the year                                        |  |                 | 3,993 |   |      |  | 3,195         |   |  |      |  |       | 1,057 |   |  |  | 854   |      |  |  |      |  | 5,050 |   |  |  | 4,049 |  
|Interest income                                                                    |  |                 | 92    |   |      |  | 115           |   |  |      |  |       | 49    |   |  |  | 45    |      |  |  |      |  | 141   |   |  |  | 160   |  
|Company contribution                                                               |  |                 | 113   |   |      |  | 116           |   |  |      |  |       | 24    |   |  |  | 53    |      |  |  |      |  | 137   |   |  |  | 169   |  
|Contributions by plan participants                                                 |  |                 | 19    |   |      |  | 18            |   |  |      |  |       |      |   |  |  |      |      |  |  |      |  | 19    |   |  |  | 18    |  
|Benefits paid                                                                      |  |                 | (82   | ) |      |  | (87           | ) |  |      |  |       | (72   | ) |  |  | (65   | )    |  |  |      |  | (154  | ) |  |  | (152  | )
|Administrative cost                                                                |  |                 | (8    | ) |      |  | (7            | ) |  |      |  |       | (3    | ) |  |  | (2    | )    |  |  |      |  | (11   | ) |  |  | (9    | )
|Return on plan assets, excluding amounts included in net interest (income) expense |  |                 | (150  | ) |      |  | 643           |   |  |      |  |       | (78   | ) |  |  | 55    |      |  |  |      |  | (228  | ) |  |  | 698   |  
|Exchange rate differences                                                          |  |                 |      |   |      |  |              |   |  |      |  |       | 126   |   |  |  | 117   |      |  |  |      |  | 126   |   |  |  | 117   |  
|Fair value of assets, end of the year                                              |  |                 | 3,977 |   |      |  | 3,993         |   |  |      |  |       | 1,103 |   |  |  | 1,057 |      |  |  |      |  | 5,080 |   |  |  | 5,050 |  
|                                                                                   |  |                 |       |   |      |  |               |   |  |      |  |       |       |   |  |  |       |      |  |  |      |  |       |   |  |  |       |  
|Funded status                                                                      |  |                 | (117  | ) |      |  | (34           | ) |  |      |  |       | (272  | ) |  |  | (251  | )    |  |  |      |  | (389  | ) |  |  | (285  | )

1. The 2014 loss of 527 million from changes in financial assumptions in the
Netherlands plans included a 1,005 million loss resulting from a decrease in the discount rate, offset by a 474 million
gain resulting from a decrease in the future pension increase assumption.

The total defined benefit obligation of
5,469 million as of January 3, 2016, includes 99 million related to plans that are wholly unfunded. These plans include
other benefits (such as life insurance and medical care) and supplemental executive retirement plans.



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23 Pensions and other post-employment benefits (continued)



During 2014, Ahold amended its defined benefit pension plan in the Netherlands. The plan amendments
included, among other changes, raising the retirement age to 67, introducing a maximum pensionable salary limit of 96,542, lowering the pensionable salary threshold by 1,000 and declaring that future pension increases for active participants will now be based on the price inflation instead of salary increases. The effect of all amendments was a net past service cost
gain in the income statement of 59 million.

During 2014, Ahold amended a defined benefit plan in the United
States that provides medical and prescription drug benefits to retirees. The plan amendment was to convert the plan from a self-insured plan to a fully insured employer group waiver program and to change employer subsidies. The effect of the
amendment was a past service cost gain in the income statement of $12 million (9 million).

Cash contributions

From 2015 to 2016, Company contributions are expected to remain unchanged at
113 million in the Netherlands and increase from $27 million (24 million) to $101 million
(93 million) for all defined benefit plans in the United States.

As of year-end 2015, the funding ratio,
calculated in accordance with regulatory requirements, of the largest Dutch plan was 111%. Under the financing agreement with the Dutch pension fund, contributions are made as a percentage of employees salaries and shared between Ahold and the
employees. The agreement also allows for a reduction in premiums if certain funding conditions are met. In addition, Ahold can be required to contribute a maximum amount of 150 million over
a five-year period if the funding ratio is below 105%. The U.S. pension plans funding ratio at year-end 2015 was 111%, measured using regulatory interest rates allowed by the U.S. government as part of funding relief, which are higher than
otherwise would be allowed. Contributions to the U.S. pension plan are required under the current funding policy if the prior year-end funding ratio falls below 100% as measured using regulatory interest rates without funding relief in order to
avoid variable Pension Benefit Guaranty Corporation (PBGC) premiums. Under these rules, a $78 million (72 million) contribution will be made to the U.S. pension plan in 2016.

Actuarial assumptions

The calculations of the defined
benefit obligation and net defined benefit cost are sensitive to the assumptions set out below. These assumptions require a large degree of judgment. Actual experience may differ from the assumptions made. The assumptions required to calculate
the actuarial present value of benefit obligations and the net defined benefit costs are determined per plan and are as follows (expressed as weighted averages):



|                         |  |                 |     |  |      |  |               |  |  |      |  |  |      |  |  |  |     | 
|------------------------ |  | --------------- | --- |  | ---- |  | ------------- |  |  | ---- |  |  | ---- |  |  |  | --- | 
|                         |  | The Netherlands |     |  |      |  | United States | 
|Percent                  |  | 2015            |     |  | 2014 |  |               |  |  | 2015 |  |  | 2014 | 
|Discount rate            |  |                 | 2.4 |  |      |  | 2.3           |  |  |      |  |  | 4.9  |  |  |  | 4.3 | 
|Future salary increases  |  |                 | 3.6 |  |      |  | 3.7           |  |  |      |  |  | 4.5  |  |  |  | 4.5 | 
|Future pension increases |  |                 | 0.8 |  |      |  | 0.8           |  |  |      |  |  | 0.0  |  |  |  | 0.0 | 



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23 Pensions and other post-employment benefits (continued)



Assumptions regarding longevity are based on published statistics and mortality tables. These
assumptions translate into an average life expectancy in years for a pensioner retiring at age 65:



|                                                |  |                 |      |  |      |  |               |  |  |      |  |  |      |  |  |  |      | 
|----------------------------------------------- |  | --------------- | ---- |  | ---- |  | ------------- |  |  | ---- |  |  | ---- |  |  |  | ---- | 
|                                                |  | The Netherlands |      |  |      |  | United States | 
|Years                                           |  | 2015            |      |  | 2014 |  |               |  |  | 2015 |  |  | 2014 | 
|Longevity at age 65 for current pensioners      |  |                 |      |  |      |  |               |  |  |      |  |  |      |  |  |  |      | 
|Male                                            |  |                 | 21.0 |  |      |  | 20.9          |  |  |      |  |  | 20.1 |  |  |  | 20.0 | 
|Female                                          |  |                 | 23.4 |  |      |  | 23.3          |  |  |      |  |  | 22.8 |  |  |  | 22.7 | 
|Longevity at age 65 for current members aged 50 |  |                 |      |  |      |  |               |  |  |      |  |  |      |  |  |  |      | 
|Male                                            |  |                 | 22.8 |  |      |  | 22.7          |  |  |      |  |  | 21.0 |  |  |  | 20.9 | 
|Female                                          |  |                 | 25.1 |  |      |  | 25.0          |  |  |      |  |  | 23.7 |  |  |  | 23.6 | 

The following table summarizes how the effect on the defined benefit obligations at the end of the reporting period would have increased
(decreased) as a result of a 0.5% change in the respective assumptions.



|                          |  |                 |      |   |               |  |     |       |  |  |      |  
|------------------------- |  | --------------- | ---- | - | ------------- |  | --- | ----- |  |  | ---- | -
| million                 |  | The Netherlands |      |   | United States |  |     | Total | 
|Discount rate             |  |                 |      |   |               |  |     |       |  |  |      |  
|0.5% increase             |  |                 | (450 | ) |               |  | (81 | )     |  |  | (531 | )
|0.5% decrease             |  |                 | 532  |   |               |  | 90  |       |  |  | 622  |  
|Future salary increases   |  |                 |      |   |               |  |     |       |  |  |      |  
|0.5% increase             |  |                 | 58   |   |               |  | 8   |       |  |  | 66   |  
|0.5% decrease             |  |                 | (55  | ) |               |  | (8  | )     |  |  | (63  | )
|Future pension increases  |  |                 |      |   |               |  |     |       |  |  |      |  
|0.5% increase             |  |                 | 495  |   |               |  | N/A |       |  |  | 495  |  
|0.5% decrease             |  |                 | (424 | ) |               |  | N/A |       |  |  | (424 | )
|Life expectancy           |  |                 |      |   |               |  |     |       |  |  |      |  
|1 year increase at age 65 |  |                 | 135  |   |               |  | 41  |       |  |  | 176  |  

The above sensitivity analyses have been based on a change in the assumption while holding all other assumptions constant. In reality one
might expect interrelationships between the assumptions, especially between discount rate and future salary increases as both depend to a certain extent on expected inflation rates. The methods and types of assumptions used in preparing the
sensitivity analyses did not change compared to the previous period.



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23 Pensions and other post-employment benefits (continued)



Plan assets

The pension plan asset allocation differs per plan. On a weighted average basis, the allocation of plan assets was as follows:



|                                       |  |                 |       |   |      |  |               |   |  |      |  |  |       |  |  |  |       | 
|-------------------------------------- |  | --------------- | ----- | - | ---- |  | ------------- | - |  | ---- |  |  | ----- |  |  |  | ----- | 
|                                       |  | The Netherlands |       |   |      |  | United States |  
| million                              |  | 2015            |       |   | 2014 |  |               |   |  | 2015 |  |  | 2014  | 
|Equity instruments:                    |  |                 |       |   |      |  |               |   |  |      |  |  |       |  |  |  |       | 
|Consumer goods                         |  |                 | 211   |   |      |  | 205           |   |  |      |  |  | 47    |  |  |  | 48    | 
|Financial services                     |  |                 | 236   |   |      |  | 267           |   |  |      |  |  | 68    |  |  |  | 58    | 
|Telecommunications and information     |  |                 | 94    |   |      |  | 80            |   |  |      |  |  | 72    |  |  |  | 66    | 
|Energy and utilities                   |  |                 | 55    |   |      |  | 62            |   |  |      |  |  | 23    |  |  |  | 29    | 
|Industry                               |  |                 | 90    |   |      |  | 107           |   |  |      |  |  | 32    |  |  |  | 32    | 
|Other                                  |  |                 | 4     |   |      |  | 6             |   |  |      |  |  | 51    |  |  |  | 46    | 
|Debt instruments:                      |  |                 |       |   |      |  |               |   |  |      |  |  |       |  |  |  |       | 
|Government                             |  |                 | 1,051 |   |      |  | 1,012         |   |  |      |  |  | 140   |  |  |  | 146   | 
|Corporate bonds (investment grade)     |  |                 | 1,276 |   |      |  | 1,017         |   |  |      |  |  | 185   |  |  |  | 174   | 
|Corporate bonds (non-investment grade) |  |                 | 13    |   |      |  | 18            |   |  |      |  |  | 41    |  |  |  | 38    | 
|Other                                  |  |                 |      |   |      |  |              |   |  |      |  |  | 60    |  |  |  | 54    | 
|Real estate:                           |  |                 |       |   |      |  |               |   |  |      |  |  |       |  |  |  |       | 
|Retail                                 |  |                 | 24    |   |      |  | 40            |   |  |      |  |  |      |  |  |  |      | 
|Offices                                |  |                 | 40    |   |      |  | 45            |   |  |      |  |  |      |  |  |  |      | 
|Residential                            |  |                 | 15    |   |      |  | 30            |   |  |      |  |  |      |  |  |  |      | 
|Other                                  |  |                 |      |   |      |  |              |   |  |      |  |  | 42    |  |  |  | 33    | 
|Investment funds                       |  |                 | 665   |   |      |  | 684           |   |  |      |  |  | 331   |  |  |  | 316   | 
|Derivatives:                           |  |                 |       |   |      |  |               |   |  |      |  |  |       |  |  |  |       | 
|Interest rate swaps                    |  |                 | 96    |   |      |  | 360           |   |  |      |  |  |      |  |  |  |      | 
|Forward foreign exchange contracts     |  |                 | (15   | ) |      |  | (45           | ) |  |      |  |  |      |  |  |  |      | 
|Cash and cash equivalents              |  |                 | 131   |   |      |  | 105           |   |  |      |  |  | 11    |  |  |  | 17    | 
|Other                                  |  |                 | (9    | ) |      |  |              |   |  |      |  |  |      |  |  |  |      | 
|Total                                  |  |                 | 3,977 |   |      |  | 3,993         |   |  |      |  |  | 1,103 |  |  |  | 1,057 | 

Virtually all equity and debt instruments have quoted prices in active markets. Derivatives can be classified as level 2 instruments and
real estate and some investment funds as level 3 instruments based on the definitions in IFRS 13, Fair Value Measurement. It is the policy of the Dutch pension plan to use interest rate swaps to hedge its exposure to interest rate risk.
Foreign currency exposures are hedged by the use of forward foreign exchange contracts.



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23 Pensions and other post-employment benefits (continued)



In the Netherlands, the plan assets are managed by outside investment managers following investment
strategies based on the composition of the plan liabilities. With the aid of Asset Liability Management modeling, analyses are made of possible future economic scenarios and investment portfolios. Based on these analyses, investment strategies are
determined to produce optimal investment returns at acceptable funding ratio risk levels. Less favorable years can be part of these scenarios. Currently, the strategic targets for asset allocation of the Dutch pension plan are: 40% variable yield
and 60% fixed income. To partially hedge against interest rate risk exposure on the pension liabilities, the Dutch pension plan uses interest rate swap contracts.

In
the United States, the plan assets are managed by outside investment managers and rebalanced periodically. The committees for the various U.S. plans establish investment policies and strategies and regularly monitor the performance of the assets,
including the selection of investment managers, setting long-term strategic targets and monitoring asset allocations. Target allocation ranges are guidelines, not limitations, subject to variation from time to time or as circumstances warrant.
Occasionally, the committees may approve allocations above or below a target range. Pension plan assets are invested in a trust intended to comply with the Employee Retirement Income Security Act of 1974, as amended, (ERISA) and applicable fiduciary
standards. The long-term investment objective for the plans assets is to maintain an acceptable funding ratio of the plans assets and plan liabilities without undue exposure to risk. Currently, the strategic targets are: 45% equity
securities, 45% debt securities and 10% other investments.

In 2015, the Dutch plan had 0.8 million of
plan assets invested in Aholds financial instruments (2014: 0.6 million). In 2015 or 2014, the U.S. plans did not have any plan assets invested in Ahold financial instruments.

The actual return on plan assets in 2015 was negative 1.3% for the Dutch plans (2014: positive 24.1%) and negative 2.7% for the U.S. plans (2014: positive 12.0%).

Benefit maturities

The weighted average duration of the
defined benefit obligations of the Dutch and U.S. plans are 25.0 and 13.2 years, respectively.

The Dutch and U.S. plans have the following expected schedule of
benefit payments.



|                                      |  |                 |     |  |               |  |     |       |  |  |     | 
|------------------------------------- |  | --------------- | --- |  | ------------- |  | --- | ----- |  |  | --- | 
|                                      |  |                 |    
| million                             |  | The Netherlands |     |  | United States |  |     | Total | 
|Amount due within one year            |  |                 | 76  |  |               |  | 75  |       |  |  | 151 | 
|Amount due between two and five years |  |                 | 310 |  |               |  | 320 |       |  |  | 630 | 
|Amount due between six and ten years  |  |                 | 481 |  |               |  | 449 |       |  |  | 930 | 



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23 Pensions and other post-employment benefits (continued)



Defined contribution plans

In the Netherlands, United States and Czech Republic, there are defined contribution plans principally in the form of savings, incentive compensation and bonus plans.

During 2015, 2014 and 2013, the Company contributed 37 million,
33 million and 34 million, respectively, to its defined contribution plans. These contributions were recognized as an expense in
the income statement and related entirely to continuing operations in 2015, 2014 and 2013.

Multi-employer plans

A significant number of union employees in the United States are covered by multi-employer plans based on obligations arising from collective bargaining agreements. These
plans provide retirement and other benefits to participants based on their service to contributing employers. The benefits are paid from assets held in trust for that purpose. Trustees are appointed in equal number by employers and unions and they
are typically responsible for oversight of the investment of the assets and administration of the plan. Contribution rates and benefit levels are generally determined through the collective bargaining process between the participating employers and
unions. None of the Companys collective bargaining agreements require that a minimum funding requirement exists for these plans.

Most of these plans are
defined contribution plans. All plans that are defined benefit plans, on the basis of the terms of the benefits provided, are accounted for as defined contribution plans because sufficient information is not available to account for these plans as
defined benefit plans. These plans are generally flat dollar benefit plans. Ahold is only one of several employers participating in each of these plans and there is no reliable basis to accurately determine Aholds share of plan obligations and
assets following defined benefit accounting principles. Furthermore, the financial statements of the multi-employer plans are drawn up on the basis of other accounting policies than those applied by Ahold. Consequently, these multi-employer plans
are not included in Aholds balance sheet.

The risks of participating in multi-employer plans are different from the risks of single employer plans.
Aholds contributions may be used to provide benefits to employees of other participating employers. Ahold may become obligated for a plans unfunded obligations if other participating employers cease to participate in the plan. Similarly,
if a number of employers cease to have employees participating in the plan, Ahold could be responsible for an increased share of the plans deficit. If Ahold withdraws from a plan, it may be required to pay the plan an amount based on the
underfunded status of the plan, referred to as a withdrawal liability.

Defined benefit plans

Ahold participates in 12 multi-employer pension plans that are defined benefit plans on the basis of the terms of the benefits provided. The following table presents
Aholds estimate of its proportionate share of each plans deficit or surplus. Aholds participation is the relative amount of its contributions during the year in relation to the total amount of contributions made to the plan. The
estimate of Aholds net proportionate share of the plans deficits is based on the latest available information received from these plans, such as the plans measurement of plan assets and the use of discount rates between 6.5% and
8.0%. The information received has been updated for market trends and conditions through the end of 2015, and does not represent Aholds direct obligation. While this is our best estimate, based upon information available to us, it is imprecise
and not necessarily reliable.



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23 Pensions and other post-employment benefits (continued)



|                                                                    |                          |  |             |                     |                 |  |                        |  |  |                      |       |   |                                                |  |      |   |  |                     |     |   |                        |  |  |                      |    |  |                                                |  |       |   |  |  |      |   |  |  |      |  
|------------------------------------------------------------------- | ------------------------ |  | ----------- | ------------------- | --------------- |  | ---------------------- |  |  | -------------------- | ----- | - | ---------------------------------------------- |  | ---- | - |  | ------------------- | --- | - | ---------------------- |  |  | -------------------- | -- |  | ---------------------------------------------- |  | ----- | - |  |  | ---- | - |  |  | ---- | -
| million, except Aholdsparticipation percentages                  |                          |  |             |                     | January 3, 2016 |  |                        |  |  | December 28, 2014    |      
|                                                                    | Date oflatestinformation |  |             | Annualcontributions |                 |  | Plandeficit /(surplus) |  |  | Aholdsparticipation |       |   | Aholdsproportionateshare ofdeficit /(surplus) |  |      |   |  | Annualcontributions |     |   | Plandeficit /(surplus) |  |  | Aholdsparticipation |    |  | Aholdsproportionateshare ofdeficit /(surplus) | 
|FELRA & UFCW Food Pension
Fund                                      |                          |  | Jan. 1,2015 |                     |                 |  | 27                     |  |  |                      | 1,080 |   |                                                |  | 60.4 | % |  |                     | 652 |   |                        |  |  |                      | 23 |  |                                                |  | 887   |   |  |  | 60.9 | % |  |  | 541  |  
|Mid-Atlantic UFCW & Participating Employers Pension Fund            |                          |  | Jan. 1,2015 |                     |                 |  | 7                      |  |  |                      | 3     |   |                                                |  | 63.3 | % |  |                     | 2   |   |                        |  |  |                      | 7  |  |                                                |  |      |   |  |  | 64.6 | % |  |  |     |  
|New England Teamsters & Trucking Industry Pension                   |                          |  | Oct. 1,2014 |                     |                 |  | 6                      |  |  |                      |      |   |                                                |  | 3.1  | % |  |                     |    |   |                        |  |  |                      | 5  |  |                                                |  |      |   |  |  | 3.7  | % |  |  |     |  
|UFCW Local 1262 & Employers Pension Fund                            |                          |  | Jan. 1,2014 |                     |                 |  | 7                      |  |  |                      | 206   |   |                                                |  | 19.4 | % |  |                     | 40  |   |                        |  |  |                      | 5  |  |                                                |  | 89    |   |  |  | 22.9 | % |  |  | 20   |  
|United Food & Commercial Workers Intl Union  Industry Pension Fund |                          |  | July 1,2014 |                     |                 |  | 19                     |  |  |                      | (201  | ) |                                                |  | 22.1 | % |  |                     | (44 | ) |                        |  |  |                      | 16 |  |                                                |  | (553  | ) |  |  | 22.1 | % |  |  | (122 | )
|UFCW Local 1500 Pension Plan                                        |                          |  | Jan. 1,2015 |                     |                 |  | 8                      |  |  |                      | 171   |   |                                                |  | 27.1 | % |  |                     | 46  |   |                        |  |  |                      | 6  |  |                                                |  | 119   |   |  |  | 27.3 | % |  |  | 32   |  
|Warehouse Employees Union Local 730 Pension Trust Fund             |                          |  | Jan. 1,2015 |                     |                 |  | 3                      |  |  |                      | 110   |   |                                                |  | 83.5 | % |  |                     | 92  |   |                        |  |  |                      | 2  |  |                                                |  | 82    |   |  |  | 81.8 | % |  |  | 67   |  
|Other plans                                                         |                          |  | Jan. 1,2015 |                     |                 |  | 7                      |  |  |                      | 6,477 |   |                                                |  | 0.8  | % |  |                     | 16  |   |                        |  |  |                      | 6  |  |                                                |  | 4,258 |   |  |  | 1.2  | % |  |  | 2    |  
|Total                                                               |                          |  |             |                     |                 |  | 84                     |  |  |                      | 7,846 |   |                                                |  |      |   |  |                     | 804 |   |                        |  |  |                      | 70 |  |                                                |  | 4,882 |   |  |  |      |   |  |  | 540  |  

During 2015, Stop & Shop reached an agreement with UFCW Local #338 whereby Stop & Shop was allowed to withdraw from the
pension plan. The withdrawal occurred in September and resulted in a $12 million (11 million) withdrawal liability. The settlement of the liability will be made in installments with $6 million
paid at the time of withdrawal and the second and third installments, of $3 million each, to be paid in May and October of 2016. In 2014, this plan was aggregated in the Other plans designation above.

If the underfunded liabilities of the multi-employer pension plans are not reduced, either by improved market conditions or collective bargaining changes, increased
future payments by the Company and the other participating employers may result. However, all future increases will be subject to the collective bargaining process. In 2016, the Company expects its contributions to increase to 88 million. Moreover, if the Company were to exit certain markets or otherwise cease making contributions to these funds, the Company could trigger a substantial withdrawal liability. Any adjustment
for withdrawal liability will be recorded when it is probable that a liability exists and the amount can be reasonably estimated. Except for the UFCW Local #338 withdrawal liability payment mentioned above, no other withdrawal payments were incurred
or included in the 2015 and 2014 contributions disclosed above. Aholds risk of increased contributions and withdrawal liabilities may be greater if any of the participating employers in an underfunded multi-employer plan withdraw from the plan
or, due to insolvency, are not able to contribute an amount sufficient to fund the underfunded liabilities associated with their participants in the plan.

Defined contribution plans

Ahold also participates in 40 multi-employer plans that are defined contribution plans on the basis of the terms
of the benefits provided. The majority of these plans provide health and welfare benefits. The Company contributed 270 million,
228 million and 240 million to multi-employer defined contribution plans during 2015, 2014 and 2013, respectively. These
contributions are recognized as an expense in the consolidated income statement and related entirely to continuing operations in 2015, 2014 and 2013. These plans vary significantly in size, with contributions to the three largest plans
representing 60% of total contributions.



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24 Provisions

The table below specifies the changes in total provisions (current and non-current):



|                                                                                                                                                                      |  |                       |      |   |                 |  |     |                          |  |  |                                   |   |  |                  |     |   |        |  |     |       |  |  |     |   |  |  |      |  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------- | ---- | - | --------------- |  | --- | ------------------------ |  |  | --------------------------------- | - |  | ---------------- | --- | - | ------ |  | --- | ----- |  |  | --- | - |  |  | ---- | -
| million                                                                                                                                                             |  | Self-insuranceprogram |      |   | Loyaltyprograms |  |     | Claimsand legaldisputes  |  |  | Severanceand terminationbenefits1 |   |  | Onerouscontrcts1 |     |   | Other1 |  |     | Total | 
|As of December 28, 2014                                                                                                                                               |  |                       |      |   |                 |  |     |                          |  |  |                                   |   |  |                  |     |   |        |  |     |       |  |  |     |   |  |  |      |  
|Current portion                                                                                                                                                       |  |                       | 151  |   |                 |  | 14  |                          |  |  | 1                                 |   |  |                  | 21  |   |        |  | 48  |       |  |  | 5   |   |  |  | 240  |  
|Non-current portion                                                                                                                                                   |  |                       | 452  |   |                 |  | 28  |                          |  |  | 3                                 |   |  |                  | 6   |   |        |  | 124 |       |  |  | 50  |   |  |  | 663  |  
|Carrying amount                                                                                                                                                       |  |                       | 603  |   |                 |  | 42  |                          |  |  | 4                                 |   |  |                  | 27  |   |        |  | 172 |       |  |  | 55  |   |  |  | 903  |  
|                                                                                                                                                                      |  |                       |      |   |                 |  |    
|Year ended January 3, 2016                                                                                                                                            |  |                       |      |   |                 |  |     |                          |  |  |                                   |   |  |                  |     |   |        |  |     |       |  |  |     |   |  |  |      |  
|Additions charged to income                                                                                                                                           |  |                       | 149  |   |                 |  | 17  |                          |  |  | 8                                 |   |  |                  | 48  |   |        |  | 8   |       |  |  | 3   |   |  |  | 233  |  
|Acquisitions through business combinations                                                                                                                            |  |                       |     |   |                 |  |    |                          |  |  |                                  |   |  |                  |    |   |        |  | 61  |       |  |  |    |   |  |  | 61   |  
|Used during the year                                                                                                                                                  |  |                       | (150 | ) |                 |  | (20 | )                        |  |  | (1                                | ) |  |                  | (44 | ) |        |  | (46 | )     |  |  | (3  | ) |  |  | (264 | )
|Released to income                                                                                                                                                    |  |                       | (9   | ) |                 |  | (2  | )                        |  |  |                                  |   |  |                  | (2  | ) |        |  | (13 | )     |  |  | (11 | ) |  |  | (37  | )
|Interest accretion                                                                                                                                                    |  |                       | 9    |   |                 |  | 1   |                          |  |  |                                  |   |  |                  |    |   |        |  | 3   |       |  |  | 1   |   |  |  | 14   |  
|Effect of changes in discount rates                                                                                                                                   |  |                       | (4   | ) |                 |  |    |                          |  |  |                                  |   |  |                  |    |   |        |  |    |       |  |  |    |   |  |  | (4   | )
|Other movements                                                                                                                                                       |  |                       |     |   |                 |  |    |                          |  |  |                                  |   |  |                  |    |   |        |  | (5  | )     |  |  |    |   |  |  | (5   | )
|Exchange rate differences                                                                                                                                             |  |                       | 74   |   |                 |  |    |                          |  |  |                                  |   |  |                  |    |   |        |  | 13  |       |  |  | 3   |   |  |  | 90   |  
|Closing carrying amount                                                                                                                                               |  |                       | 672  |   |                 |  | 38  |                          |  |  | 11                                |   |  |                  | 29  |   |        |  | 193 |       |  |  | 48  |   |  |  | 991  |  
|                                                                                                                                                                      |  |                       |      |   |                 |  |    
|As of January 3, 2016                                                                                                                                                 |  |                       |      |   |                 |  |     |                          |  |  |                                   |   |  |                  |     |   |        |  |     |       |  |  |     |   |  |  |      |  
|Current portion                                                                                                                                                       |  |                       | 172  |   |                 |  | 14  |                          |  |  | 9                                 |   |  |                  | 26  |   |        |  | 35  |       |  |  | 4   |   |  |  | 260  |  
|Non-current portion                                                                                                                                                   |  |                       | 500  |   |                 |  | 24  |                          |  |  | 2                                 |   |  |                  | 3   |   |        |  | 158 |       |  |  | 44  |   |  |  | 731  |  
|1    Balances for the prior year have been adjusted to align with current year classification. 
Maturities of total provisions as of January 3, 2016, are as follows: | 
| million                                                                                                                                                             |  | Self-insuranceprogram |      |   | Loyaltyprograms |  |     | Claims
and legaldisputes |  |  | Severance andterminationbenefits  |   |  | Onerouscontracts |     |   | Other  |  |     | Total | 
|Amount due within one year                                                                                                                                            |  |                       | 172  |   |                 |  | 14  |                          |  |  | 9                                 |   |  |                  | 26  |   |        |  | 35  |       |  |  | 4   |   |  |  | 260  |  
|Amount due between one and five years                                                                                                                                 |  |                       | 338  |   |                 |  | 24  |                          |  |  | 1                                 |   |  |                  | 2   |   |        |  | 89  |       |  |  | 11  |   |  |  | 465  |  
|Amount due after five years                                                                                                                                           |  |                       | 162  |   |                 |  |    |                          |  |  | 1                                 |   |  |                  | 1   |   |        |  | 69  |       |  |  | 33  |   |  |  | 266  |  
|Total                                                                                                                                                                 |  |                       | 672  |   |                 |  | 38  |                          |  |  | 11                                |   |  |                  | 29  |   |        |  | 193 |       |  |  | 48  |   |  |  | 991  |  



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24 Provisions (continued)



Self-insurance program

Ahold is self-insured for certain potential losses, mainly relating to general liability, vehicle liability, workers compensation and property losses relating to
its subsidiaries. The maximum self-insurance retention per occurrence, including defense costs, is $2 million (2 million) for general liability, $5 million (5 million) for commercial vehicle liability, $5 million (5 million) for workers compensation, and $17.5 million (16 million) for property losses. Ahold purchased a stop-loss coverage of $50 million (46 million) for property losses to limit the aggregate
exposure for named windstorms through June 1, 2016. A portion of this risk is reinsured to third parties, see Note 15.

Measurement of the provision for
the self-insurance program requires significant estimates. These estimates and assumptions include an estimate of claims incurred but not yet reported, historical loss experience, projected loss development factors, estimated changes in claim
reporting patterns, claim settlement patterns, judicial decisions and legislation.

Loyalty programs

This provision relates to a third-party customer loyalty program in the Netherlands and reflects the estimated cost of benefits to which customers participating in the
loyalty program are entitled.

Claims and legal disputes

The Company is a party to a number of legal proceedings arising out of its business operations. Such legal proceedings are subject to inherent uncertainties. Management,
supported by internal and external legal counsel, where appropriate, determines whether it is more likely than not that an outflow of resources will be required to settle an obligation. If this is the case, the best estimate of the outflow of
resources is recognized.

Severance and termination benefits

This provision relates to payments to employees whose employment with the Company has ended, either as part of a restructuring or a voluntary separation plan. In 2015,
Ahold recognized restructuring-related severance provisions within Ahold USA totaling 31 million. These related to a reorganization of its support offices and an early retirement incentive
program for store employees in the Giant Landover division.



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24 Provisions (continued)



Onerous contracts

Onerous contract provisions mainly relate to unfavorable lease contracts and include the excess of the unavoidable costs of meeting the obligations under the contracts
over the benefits expected to be received under such contracts. Included in the balance of the provision as of January 3, 2016, were provisions of 65 million and 44 million in Ahold USA and the Czech Republic, respectively, for unfavorable lease contracts recognized as part of the A&P, SPAR and other past acquisitions as well as the remaining
provision relating to BI-LO and Brunos (see Note 34) of 19 million.

Other

Other provisions include asset retirement obligations, provisions for environmental risks, jubilee payments, and supplemental
medical benefits.



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25 Other non-current liabilities



|                                    |  |                |     |  |                  |  |     | 
|----------------------------------- |  | -------------- | --- |  | ---------------- |  | --- | 
| million                           |  | January 3,2016 |     |  | December 28,2014 | 
|Step rent accruals                  |  |                | 276 |  |                  |  | 234 | 
|Deferred income                     |  |                | 25  |  |                  |  | 26  | 
|Other                               |  |                | 17  |  |                  |  | 16  | 
|Total other non-current liabilities |  |                | 318 |  |                  |  | 276 | 

Step rent accruals relate to the equalization of rent payments from lease contracts with scheduled fixed rent increases throughout the
life of the contract.

Deferred income predominantly represents the non-current portions of deferred income on vendor allowances and deferred gains on sale and
leaseback transactions.

26 Other current financial liabilities



|                                                          |  |                |     |  |                  |  |     | 
|--------------------------------------------------------- |  | -------------- | --- |  | ---------------- |  | --- | 
| million                                                 |  | January 3,2016 |     |  | December 28,2014 | 
|Finance lease liabilities  current portion (see Note 22) |  |                | 110 |  |                  |  | 88  | 
|Interest payable                                          |  |                | 29  |  |                  |  | 26  | 
|Short-term borrowings                                     |  |                | 52  |  |                  |  | 47  | 
|Dividend cumulative preferred financing shares            |  |                | 22  |  |                  |  | 21  | 
|Reinsurance liabilities  current portion (see Note 15)   |  |                | 76  |  |                  |  | 65  | 
|Loans  current portion (see Note 21)                     |  |                | 31  |  |                  |  | 30  | 
|Other                                                     |  |                | 10  |  |                  |  | 3   | 
|Total other current financial liabilities                 |  |                | 330 |  |                  |  | 280 | 

Other in 2015 mainly includes multi-employer union pension withdrawal liabilities.

27 Other current liabilities



|                                       |  |                |       |  |                  |  |       | 
|-------------------------------------- |  | -------------- | ----- |  | ---------------- |  | ----- | 
| million                              |  | January 3,2016 |       |  | December 28,2014 | 
|Accrued expenses                       |  |                | 770   |  |                  |  | 607   | 
|Compensated absences                   |  |                | 297   |  |                  |  | 271   | 
|Payroll taxes, social security and VAT |  |                | 251   |  |                  |  | 262   | 
|Deferred income                        |  |                | 138   |  |                  |  | 28    | 
|Gift card and deposit liabilities      |  |                | 104   |  |                  |  | 87    | 
|Other                                  |  |                | 13    |  |                  |  | 14    | 
|Total other current liabilities        |  |                | 1,573 |  |                  |  | 1,269 | 

The deferred income balance at January 3, 2016 includes the unearned portion of premiums billed on January 1, 2016, related to
the Companys reinsurance treaty.



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28 Cash flow

The following table presents the reconciliation between the cash and cash equivalents as presented in the statement of cash flows and as presented on the balance sheet:



|                                                                                             |  |      |       |  |      |  |       |      |  |  |       |  
|-------------------------------------------------------------------------------------------- |  | ---- | ----- |  | ---- |  | ----- | ---- |  |  | ----- | -
| million                                                                                    |  | 2015 |       |  | 2014 |  |       | 2013 | 
|Cash and cash equivalents at the end of the year as presented in the statement of cash flows |  |      | 1,819 |  |      |  | 1,615 |      |  |  | 2,497 |  
|Restricted cash                                                                              |  |      | 7     |  |      |  | 9     |      |  |  | 4     |  
|Cash and cash equivalents related to discontinued operations                                 |  |      |      |  |      |  |      |      |  |  | (5    | )
|Cash and cash equivalents at the end of the year as presented on the balance sheet           |  |      | 1,826 |  |      |  | 1,624 |      |  |  | 2,496 |  



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28 Cash flow (continued)



The following table presents additional cash flow information:



|                                                                                                  |  |      |      |   |      |  |      |      |  |  |       |  
|------------------------------------------------------------------------------------------------- |  | ---- | ---- | - | ---- |  | ---- | ---- |  |  | ----- | -
| million                                                                                         |  | 2015 |      |   | 2014 |  |      | 2013 | 
|Non-cash investing activities                                                                     |  |      |      |   |      |  |      |      |  |  |       |  
|Accounts payable at year-end related to purchased non-current assets                              |  |      | 119  |   |      |  | 88   |      |  |  | 81    |  
|Assets acquired under finance leases from continuing operations                                   |  |      | 55   |   |      |  | 18   |      |  |  | 52    |  
|                                                                                                  |  |      |     
|Non-cash financing activities                                                                     |  |      |      |   |      |  |      |      |  |  |       |  
|Finance lease liabilities originated from continuing operations                                   |  |      | (55  | ) |      |  | (18  | )    |  |  | (52   | )
|                                                                                                  |  |      |     
|Acquisition of businesses                                                                         |  |      |      |   |      |  |      |      |  |  |       |  
|Total purchase consideration (seeNote 4)                                                          |  |      | (150 | ) |      |  | (210 | )    |  |  | (15   | )
|Assets given up                                                                                   |  |      |     |   |      |  |     |      |  |  | 6     |  
|Cash acquired                                                                                     |  |      |     |   |      |  | 18   |      |  |  |      |  
|Consideration payable                                                                             |  |      |     |   |      |  | 2    |      |  |  |      |  
|Acquisition of businesses, net of cash acquired                                                   |  |      | (150 | ) |      |  | (190 | )    |  |  | (9    | )
|                                                                                                  |  |      |     
|Divestments of businesses                                                                         |  |      |      |   |      |  |      |      |  |  |       |  
|U.S. Foodservice1                                                                                 |  |      |     |   |      |  | (248 | )    |  |  | (10   | )
|Proceeds from divestment of stores in the Netherlands                                             |  |      | 6    |   |      |  |     |      |  |  |      |  
|Proceeds from divestment of Slovakia                                                              |  |      |     |   |      |  | (34  | )    |  |  | (1    | )
|Proceeds from divestment of ICA                                                                   |  |      |     |   |      |  |     |      |  |  | 2,368 |  
|Net cash flows related to other past divestments                                                  |  |      | (6   | ) |      |  | (4   | )    |  |  | (5    | )
|Divestment of businesses                                                                          |  |      |     |   |      |  | (286 | )    |  |  | 2,352 |  
|Cash divested                                                                                     |  |      |     |   |      |  | (5   | )    |  |  |      |  
|Divestment of businesses, net of cash divested                                                    |  |      |     |   |      |  | (291 | )    |  |  | 2,352 |  
|                                                                                                  |  |      |     
|Reconciliation between results on divestments of discontinued operations and cash (paid) received |  |      |      |   |      |  |      |      |  |  |       |  
|Result on divestments of discontinued operations before income taxes                              |  |      | 3    |   |      |  | (222 | )    |  |  | 1,587 |  
|Net assets (liabilities) divested                                                                 |  |      | 6    |   |      |  | (21  | )    |  |  | 828   |  
|Changes in accounts receivable / payable and provisions  net                                     |  |      | (9   | ) |      |  | (43  | )    |  |  | (6    | )
|Loss on fair value less cost of disposal measurement                                              |  |      |     |   |      |  |     |      |  |  | 16    |  
|Currency exchange differences transferred from equity                                             |  |      |     |   |      |  |     |      |  |  | (82   | )
|Other items previously recognized in other comprehensive income                                   |  |      |     |   |      |  |     |      |  |  | 9     |  
|Divestment of businesses                                                                          |  |      |     |   |      |  | (286 | )    |  |  | 2,352 |  
|Cash divested                                                                                     |  |      |     |   |      |  | (5   | )    |  |  |      |  
|Divestment of businesses, net of cash divested                                                    |  |      |     |   |      |  | (291 | )    |  |  | 2,352 |  

1 The cash flows from U.S. Foodservice in 2014 include settlement of Waterbury litigation of
241 million and legal fees of 7 million (2013: 10 million).



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29 Earnings per share

The calculation of basic and diluted net income per share attributable to common shareholders is based on the following data:



|                                                                                              |  |      |     |  |      |  |     |      |  |  |       | 
|--------------------------------------------------------------------------------------------- |  | ---- | --- |  | ---- |  | --- | ---- |  |  | ----- | 
|                                                                                              |  | 2015 |     |  | 2014 |  |     | 2013 | 
|Earnings ( million)                                                                          |  |      |     |  |      |  |     |      |  |  |       | 
|Net income attributable to common shareholders for the purposes of basic earnings per share   |  |      | 852 |  |      |  | 594 |      |  |  | 2,537 | 
|Effect of dilutive potential common shares  reversal of preferred dividends from
earnings    |  |      | 23  |  |      |  | 22  |      |  |  | 25    | 
|Net income attributable to common shareholders for the purposes of diluted earnings per
share |  |      | 875 |  |      |  | 616 |      |  |  | 2,562 | 
|                                                                                              |  |      |    
|Number of shares (in millions)                                                                |  |      |     |  |      |  |     |      |  |  |       | 
|Weighted average number of common shares for the purposes of basic earnings per share         |  |      | 820 |  |      |  | 879 |      |  |  | 1,021 | 
|Effect of dilutive potential common shares:                                                   |  |      |     |  |      |  |     |      |  |  |       | 
|Share options and conditional shares                                                          |  |      | 12  |  |      |  | 11  |      |  |  | 13    | 
|Cumulative preferred financing shares                                                         |  |      | 25  |  |      |  | 34  |      |  |  | 38    | 
|Weighted average number of common shares for the purposes of diluted earnings per share       |  |      | 857 |  |      |  | 924 |      |  |  | 1,072 | 

The calculation of the basic and diluted income from continuing operations per share attributable to common shareholders is based on the
same number of shares as detailed above and the following earnings data:



|                                                                                                                      |  |      |     |   |      |  |     |      |  |  |     | 
|--------------------------------------------------------------------------------------------------------------------- |  | ---- | --- | - | ---- |  | --- | ---- |  |  | --- | 
| million                                                                                                             |  | 2015 |     |   | 2014 |  |     | 2013 | 
|Income from continuing operations                                                                                     |  |      | 849 |   |      |  | 791 |      |  |  | 805 | 
|Non-controlling interests                                                                                             |  |      | (1  | ) |      |  |    |      |  |  |    | 
|Income from continuing operations, attributable to common shareholders for the purposes of basic earnings per share   |  |      | 850 |   |      |  | 791 |      |  |  | 805 | 
|Effect of dilutive potential common shares  reversal of preferred dividends from
earnings                            |  |      | 23  |   |      |  | 22  |      |  |  | 25  | 
|Income from continuing operations, attributable to common shareholders for the purposes of diluted
earnings per share |  |      | 873 |   |      |  | 813 |      |  |  | 830 | 

Basic and diluted income per share from discontinued operations attributable to common shareholders amounted both to nil (2014: negative 0.22 basic and negative 0.21 diluted and 2013: 1.69 basic and 1.62 diluted). They are based on the income from discontinued operations attributable to common shareholders of 2 million (2014: loss of 197 million and 2013: income 1,732 million) and the denominators detailed above.



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30 Financial risk management and financial instruments

Financial risk management

The Treasury function
provides a centralized service to the Company for funding, foreign exchange, interest rate, liquidity and counterparty risk management. Treasury operates within a framework of policies and procedures that is reviewed regularly. The Treasury function
does not operate as a profit center and manages the financial risks that arise in relation to underlying business needs. Aholds Management Board has overall responsibility for the establishment and oversight of the Treasury risk management
framework. Aholds management reviews material changes to Treasury policies and receives information related to Treasury activities.

In accordance with its
Treasury policies, Ahold uses derivative instruments solely for the purpose of hedging exposures. These exposures are mainly connected with the interest rate and currency risks arising from the Companys operations and its sources of finance.
Ahold does not enter into derivative financial instruments for speculative purposes. The transaction of derivative instruments is restricted to Treasury personnel only and Aholds Internal Control department reviews the Treasury internal
control environment regularly.

Relationships with credit rating agencies and monitoring of key credit ratios are also managed by the Treasury department.

Currency risk

Ahold operates internationally and is
exposed to foreign exchange risk arising from currency exposures, primarily with respect to the U.S. dollar. Since Aholds subsidiaries primarily purchase and sell in local currencies, the Companys exposure to exchange rate movements in
commercial operations is naturally limited. The Company is subject to foreign currency exchange risks due to exchange rate movements in connection with the translation of its foreign subsidiaries income, assets and liabilities into euros for
inclusion in its consolidated financial statements. Translation risk related to Aholds foreign subsidiaries, joint ventures and associates is not actively hedged.

To protect the value of future foreign currency cash flows, including loan and interest payments, lease payments, dividends and firm purchase commitments, and the value
of assets and liabilities denominated in foreign currency, Ahold seeks to mitigate its foreign currency exchange exposure by borrowing in local currency and entering into various financial instruments, including forward contracts and currency swaps.
It is Aholds policy to cover foreign exchange transaction exposure in relation to existing assets, liabilities and firm purchase commitments.

Foreign currency sensitivity analysis

Assuming the euro had strengthened (weakened) by 10% against the U.S. dollar compared to the
actual 2015 rate, with all other variables held constant, the hypothetical result on income before income taxes would have been a decrease (increase) of 6 million (2014: 6 million), as a result of foreign exchange losses on the translation of U.S. dollar-denominated cash and cash equivalents.

Interest rate risk

Aholds interest rate risk arises
primarily from its debt. To manage interest rate risk, Ahold has an interest rate management policy aimed at reducing volatility in its interest expense and maintaining a target percentage of its debt in fixed rate instruments. Aholds
financial position is largely fixed by long-term debt issues and the use of derivative financial instruments such as interest rate swaps and cross-currency interest rate swaps. As of January 3, 2016, after taking into account the effect of
interest rate swaps and cross-currency swaps, approximately 99% of Aholds interest bearing debt was at fixed rates of interest (2014: 98%).



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30 Financial risk management and financial instruments (continued)



Interest rate sensitivity analysis

The total interest expense recognized in the 2015 income statement related to the variable rates of long-term debt, net of swaps, amounted to 3 million (2014: 4 million). The Company estimates that with a possible increase (decrease) of U.S. dollar market interest rates of 25 basis
points with all other variables (including foreign exchange rates) held constant, this would result in a hypothetical effect on income before income taxes of a loss (gain) of nil (2014: nil). In addition, a hypothetical result relating to a possible
increase (decrease) of 25 basis points in the fair value of derivative hedges that do not qualify for hedge accounting would result in a loss of nil or a gain of 2 million, respectively
(2014: a loss of 2 million or a gain of 2 million, respectively).

The total interest income recognized in the 2015 income statement amounted to 5 million (2014: 6 million), mainly related to variable rate money market fund investments and deposits. The Company estimates that with a possible increase (decrease) of euro and U.S. dollar market interest
rates of 25 basis points with all other variables (including foreign exchange rates) held constant, this would result in a hypothetical effect on income before income taxes of a gain of
4 million or a loss of 4 million, respectively (2014: gain of
3 million or a loss of 3 million).

The cash flow
hedge reserve would be impacted by interest rate movements through the JPY cross-currency swap which qualified for cash flow hedge accounting. The impact of interest rate movements related to the bond and the swaps variable leg are not
reflected, as they offset each other. The impact of a 25-basis-point increase (25-basis-point decrease) in euro interest rates related to the remaining fair value exposure on the swaps fixed leg (caused by a shifted discount rate on the
swaps fixed EUR leg) is a gain of 15 million or a loss of 16 million (2014: gain of
17 million or a loss of 18 million).

The above
sensitivity analyses are for illustrative purposes only as, in practice, market rates rarely change in isolation from other factors that also affect Aholds financial position and results.

Credit risk

Ahold has no significant concentrations of
credit risk. Sales to retail customers are made in cash, checks and debit cards, or via major credit cards. Sales to franchisees are done on credit. The concentration of credit risk with respect to receivables is limited, as the Companys
customer base and vendor base are large and unrelated. As a result, management believes there is no further credit risk provision required in excess of the normal individual and collective impairment, based on an aging analysis performed as of
January 3, 2016. For further discussion on Aholds receivables, see Notes 15 and 17.

Derivative counterparties and cash
transactions are limited to high-credit-quality financial institutions products. Ahold invests in funds with a minimum rating of A- (Standard & Poors). With respect to credit risk, derivative contracts with counterparties are
entered into primarily under the standard terms and conditions of the International Swap and Derivatives Association. The counterparties have an externally validated investment grade credit rating. Ahold has policies that limit the amount of
counterparty credit exposure to any single financial institution or investment vehicle and continually monitors these exposures. The maximum exposure to credit risk is represented by the carrying amounts of the financial assets on the balance
sheet (refer to the table on fair values of financial instruments below in this note). The maximum exposure to a credit risk loss that Ahold would incur if financial institutions that are parties to the derivative instruments completely failed
to perform according to the terms of the contracts is 338 million as of January 3, 2016 (December 28, 2014: 311 million). Netting
agreements are in place with the financial counterparties that reduces the credit exposure (as of January 3, 2016, net exposure of 129 million).



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30 Financial risk management and financial instruments (continued)



Liquidity risk

Ahold manages its liquidity risk on a consolidated basis with cash provided from operating activities being the primary source of liquidity, in addition to debt and
equity issuances in the capital markets, committed and uncommitted credit facilities, letters of credit under credit facilities, and available cash. Ahold manages short-term liquidity based on projected cash flows over rolling periods of six months.
As of January 3, 2016, 984 million of our committed credit facility remained available for working capital and general corporate purposes and
2,354 million of cash balances (including short-term deposits and similar instruments) are available to manage the Companys liquidity.

Based on the current operating performance and liquidity position, the Company believes that cash provided by operating activities and available cash balances will be
sufficient for working capital, capital expenditures, interest payments, dividends and scheduled debt repayment requirements for the next 12 months and the foreseeable future.



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30 Financial risk management and financial instruments (continued)



The following tables summarize the expected maturity profile of the Companys financial
liabilities (including derivatives) as of January 3, 2016, and December 28, 2014, respectively, based on contractual undiscounted payments.

All financial
liabilities held at the reporting date, for which payments are already contractually agreed, have been included. Amounts in foreign currency have been translated using the reporting date closing rate. Cash flows arising from financial instruments
carrying variable interest payments have been calculated using the forward curve interest rates as of January 3, 2016, and December 28, 2014, respectively. Refer to Note 34 for the liquidity risk related to guarantees.

Year ended January 3, 2016



|                                                      |                    |  |        |              |  |  |                     |   |  |              |                        |   |       |  |        |   |  |  |        |  
|----------------------------------------------------- | ------------------ |  | ------ | ------------ |  |  | ------------------- | - |  | ------------ | ---------------------- | - | ----- |  | ------ | - |  |  | ------ | -
| million                                             |                    |  |        |              |  |  |                     |   |  |              | Contractual cash flows |  
|                                                      | Net carryingamount |  |        | Within 1year |  |  | Between1 and 5years |   |  | After5 years |                        |   | Total | 
|Non-derivative financial liabilities                  |                    |  |        |              |  |  |                     |   |  |              |                        |   |       |  |        |   |  |  |        |  
|Notes                                                 |                    |  | (1,144 | )            |  |  | (75                 | ) |  |              | (565                   | ) |       |  | (1,119 | ) |  |  | (1,759 | )
|Other loans                                           |                    |  | (3     | )            |  |  |                    |   |  |              | (2                     | ) |       |  | (2     | ) |  |  | (4     | )
|Financing obligations                                 |                    |  | (397   | )            |  |  | (52                 | ) |  |              | (194                   | ) |       |  | (217   | ) |  |  | (463   | )
|Mortgages payable                                     |                    |  | (9     | )            |  |  | (1                  | ) |  |              | (4                     | ) |       |  | (7     | ) |  |  | (12    | )
|Finance lease liabilities                             |                    |  | (1,400 | )            |  |  | (209                | ) |  |              | (790                   | ) |       |  | (1,110 | ) |  |  | (2,109 | )
|Cumulative preferred financing shares1                |                    |  | (497   | )            |  |  | (22                 | ) |  |              | (66                    | ) |       |  | (18    | ) |  |  | (106   | )
|Short-term borrowings                                 |                    |  | (52    | )            |  |  | (52                 | ) |  |              |                       |   |       |  |       |   |  |  | (52    | )
|Reinsurance liabilities                               |                    |  | (221   | )            |  |  | (78                 | ) |  |              | (128                   | ) |       |  | (22    | ) |  |  | (228   | )
|Accounts payable                                      |                    |  | (2,800 | )            |  |  | (2,800              | ) |  |              |                       |   |       |  |       |   |  |  | (2,800 | )
|Other                                                 |                    |  | (61    | )            |  |  | (16                 | ) |  |              | (7                     | ) |       |  | (56    | ) |  |  | (79    | )
|                                                      |                    |  |        |              | 
|Derivative financial liabilities                      |                    |  |        |              |  |  |                     |   |  |              |                        |   |       |  |        |   |  |  |        |  
|Cross-currency swaps and foreign currency derivatives |                    |  | (210   | )            |  |  | (18                 | ) |  |              | (69                    | ) |       |  | (202   | ) |  |  | (289   | )

1 Cumulative preferred financing shares have no maturity. For the purpose of the table above, the future dividend cash flows were
calculated until the coupon reset date of each of the four share-series (2016, 2018, 2020 and 2023). No liability redemption was assumed. Actual cash flows may differ, seeNote 22.



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30 Financial risk management and financial instruments (continued)



Year ended December 28, 2014



|                                                      |  |                    |        |   |                        |  |        |              |  |  |       |   |  |  |        |   |  |  |        |  
|----------------------------------------------------- |  | ------------------ | ------ | - | ---------------------- |  | ------ | ------------ |  |  | ----- | - |  |  | ------ | - |  |  | ------ | -
| million                                             |  | Net carryingamount |        |   | Contractual cash flows | 
|                                                      |  | Within1 year       |        |   | Between1 and 5years    |  |        | After5 years |  |  | Total |  
|Non-derivative financial liabilities                  |  |                    |        |   |                        |  |        |              |  |  |       |   |  |  |        |   |  |  |        |  
|Notes                                                 |  |                    | (1,040 | ) |                        |  | (68    | )            |  |  | (545  | ) |  |  | (1,051 | ) |  |  | (1,664 | )
|Other loans                                           |  |                    | (3     | ) |                        |  | (2     | )            |  |  | (1    | ) |  |  |       |   |  |  | (3     | )
|Financing obligations                                 |  |                    | (387   | ) |                        |  | (48    | )            |  |  | (181  | ) |  |  | (239   | ) |  |  | (468   | )
|Mortgages payable                                     |  |                    | (10    | ) |                        |  | (4     | )            |  |  | (6    | ) |  |  | (2     | ) |  |  | (12    | )
|Finance lease liabilities                             |  |                    | (1,213 | ) |                        |  | (179   | )            |  |  | (681  | ) |  |  | (1,003 | ) |  |  | (1,863 | )
|Cumulative preferred financing shares1                |  |                    | (497   | ) |                        |  | (21    | )            |  |  | (74   | ) |  |  | (32    | ) |  |  | (127   | )
|Short-term borrowings                                 |  |                    | (47    | ) |                        |  | (47    | )            |  |  |      |   |  |  |       |   |  |  | (47    | )
|Reinsurance liabilities                               |  |                    | (191   | ) |                        |  | (67    | )            |  |  | (110  | ) |  |  | (20    | ) |  |  | (197   | )
|Accounts payable                                      |  |                    | (2,655 | ) |                        |  | (2,655 | )            |  |  |      |   |  |  |       |   |  |  | (2,655 | )
|Other                                                 |  |                    | (43    | ) |                        |  | (1     | )            |  |  | (6    | ) |  |  | (52    | ) |  |  | (59    | )
|                                                      |  |                    |        |   |                       
|Derivative financial liabilities                      |  |                    |        |   |                        |  |        |              |  |  |       |   |  |  |        |   |  |  |        |  
|Cross-currency swaps and foreign currency derivatives |  |                    | (251   | ) |                        |  | (18    | )            |  |  | (70   | ) |  |  | (246   | ) |  |  | (334   | )

1 Cumulative preferred financing shares have no maturity. For the purpose of the table above, the future dividend cash flows were
calculated until the coupon reset date of each of the four share-series (2016, 2018, 2020 and 2023). No liability redemption was assumed.

Credit ratings

Maintaining investment grade
credit ratings is a cornerstone of the Companys strategy as they serve to lower the cost of funds and to facilitate access to a variety of lenders and markets. In August 2015, Moodys upgraded Aholds corporate credit rating to Baa2
with a stable outlook. In June 2009, Standard & Poors upgraded Aholds corporate credit rating to BBB with a stable outlook; since then, this rating has remained unchanged.

Capital risk management

The Companys
primary objective in terms of managing capital is the optimization of its debt and equity balances in order to sustain the future development of the business, maintain an investment grade credit rating and maximize shareholder value.

The Companys leverage is measured on the basis of net lease adjusted debt, which includes borrowings, cash and cash equivalents, short-term deposits and similar
instruments, equity, and the present value of the operating lease commitments. Ahold may balance its overall capital structure in a number of ways, including through the payment of dividends, capital repayment, new share issues and share buybacks
as well as the issuance of new debt or the redemption of existing debt.



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30 Financial risk management and financial instruments (continued)



Financial instruments

Fair values of financial instruments

The following table
presents the fair values of financial instruments, based on Aholds categories of financial instruments, including current portions, compared to the carrying amounts at which these instruments are included on the balance sheet:



|                                               |                |                 |        |           |  |  |                   |   |                |  |  |           |        |   |  |  |        |  
|---------------------------------------------- | -------------- | --------------- | ------ | --------- |  |  | ----------------- | - | -------------- |  |  | --------- | ------ | - |  |  | ------ | -
| million                                      |                | January 3, 2016 |        |           |  |  | December 28, 2014 |  
|                                               | Carryingamount |                 |        | Fairvalue |  |  |                   |   | Carryingamount |  |  | Fairvalue |       
|Loans receivable                               |                |                 | 42     |           |  |  | 49                |   |                |  |  |           | 42     |   |  |  | 50     |  
|Trade and other (non) current receivables      |                |                 | 832    |           |  |  | 832               |   |                |  |  |           | 731    |   |  |  | 731    |  
|Reinsurance assets                             |                |                 | 203    |           |  |  | 203               |   |                |  |  |           | 177    |   |  |  | 177    |  
|Total loans and receivables                    |                |                 | 1,077  |           |  |  | 1,084             |   |                |  |  |           | 950    |   |  |  | 958    |  
|Cash and cash equivalents                      |                |                 | 1,826  |           |  |  | 1,826             |   |                |  |  |           | 1,624  |   |  |  | 1,624  |  
|Short-term deposits and similar instruments    |                |                 | 528    |           |  |  | 528               |   |                |  |  |           | 262    |   |  |  | 262    |  
|Derivatives                                    |                |                 | 338    |           |  |  | 338               |   |                |  |  |           | 311    |   |  |  | 311    |  
|Available-for-sale                             |                |                 | 6      |           |  |  | 6                 |   |                |  |  |           | 5      |   |  |  | 5      |  
|Total financial assets                         |                |                 | 3,775  |           |  |  | 3,782             |   |                |  |  |           | 3,152  |   |  |  | 3,160  |  
|                                               |                |                 |        |           | 
|Notes                                          |                |                 | (1,144 | )         |  |  | (1,359            | ) |                |  |  |           | (1,040 | ) |  |  | (1,282 | )
|Other loans                                    |                |                 | (3     | )         |  |  | (3                | ) |                |  |  |           | (3     | ) |  |  | (3     | )
|Financing obligations                          |                |                 | (397   | )         |  |  | (395              | ) |                |  |  |           | (387   | ) |  |  | (391   | )
|Mortgages payable                              |                |                 | (9     | )         |  |  | (10               | ) |                |  |  |           | (10    | ) |  |  | (11    | )
|Finance lease liabilities                      |                |                 | (1,400 | )         |  |  | (1,798            | ) |                |  |  |           | (1,213 | ) |  |  | (1,574 | )
|Cumulative preferred financing shares          |                |                 | (497   | )         |  |  | (554              | ) |                |  |  |           | (497   | ) |  |  | (564   | )
|Dividend cumulative preferred financing shares |                |                 | (22    | )         |  |  | (22               | ) |                |  |  |           | (21    | ) |  |  | (21    | )
|Accounts payable                               |                |                 | (2,800 | )         |  |  | (2,800            | ) |                |  |  |           | (2,655 | ) |  |  | (2,655 | )
|Short-term borrowings                          |                |                 | (52    | )         |  |  | (52               | ) |                |  |  |           | (47    | ) |  |  | (47    | )
|Interest payable                               |                |                 | (29    | )         |  |  | (29               | ) |                |  |  |           | (26    | ) |  |  | (26    | )
|Reinsurance liabilities                        |                |                 | (221   | )         |  |  | (221              | ) |                |  |  |           | (191   | ) |  |  | (191   | )
|Other                                          |                |                 | (61    | )         |  |  | (71               | ) |                |  |  |           | (43    | ) |  |  | (51    | )
|Total non-derivative financial liabilities     |                |                 | (6,635 | )         |  |  | (7,314            | ) |                |  |  |           | (6,133 | ) |  |  | (6,816 | )
|Derivatives                                    |                |                 | (210   | )         |  |  | (210              | ) |                |  |  |           | (251   | ) |  |  | (251   | )
|Total financial liabilities                    |                |                 | (6,845 | )         |  |  | (7,524            | ) |                |  |  |           | (6,384 | ) |  |  | (7,067 | )



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30 Financial risk management and financial instruments (continued)



Of Aholds categories of financial instruments, only derivatives, assets available-for-sale
and reinsurance assets (liabilities) are measured and recognized on the balance sheet at fair value. These fair value measurements are categorized within Level 2 of the fair value hierarchy. The Company uses inputs other than quoted prices that are
observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). The fair value of derivative instruments is measured by using either a market or income approach (mainly present value techniques).
Foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates that match the maturity of the contracts. Interest rate swaps are measured at the present value of expected
future cash flows. Expected future cash flows are discounted by using the applicable yield curves derived from quoted interest rates.

The valuation of Aholds
derivative instruments is adjusted for the credit risk of the counterparty, called Credit Valuation Adjustment (CVA), and adjusted for Aholds own credit risk, called Debit Valuation Adjustment (DVA). The CVA / DVA
calculations have been added to the fair value of Aholds interest and cross-currency swaps. The valuation technique for the CVA / DVA calculation is based on relevant observable market inputs.

The carrying amount of receivables, cash and cash equivalents, accounts payable, short-term deposits and similar instruments, and other current financial assets and
liabilities approximate their fair values because of the short-term nature of these instruments and, for receivables, because of the fact that any recoverability loss is reflected in an impairment loss. The fair values of quoted borrowings are based
on year-end ask-market quoted prices. The fair value of other non-derivative financial assets and liabilities that are not traded in an active market are estimated using discounted cash flow analyses based on market rates prevailing at year-end. The
fair value of the cumulative preferred financing shares is measured as the present value of expected future cash flows. Such cash flows include the dividend payments and the payments of the nominal value plus paid in capital. Expected future cash
flows are discounted by using the yield curves derived from quoted interest rates and Credit Default Swap rates that match the maturity of the contracts. The conditions for redemption and conversion of the cumulative preferred financing shares are
disclosed in Note 22. The accrued interest is included in other current financial liabilities (see Note 26) and not in the carrying amounts of non-derivative financial assets and liabilities.

Short-term deposits and similar instruments (528 million) contain short-term liquid investments that are considered
part of Aholds cash management financial assets.

Derivatives

Fair values, notional amounts, maturities and the qualification of derivative financial instruments for accounting purposes are presented in the table below:



|                                                  |  |                     |  |                 |     |  |                |  |                   |   |  |            |     |  |                |  |  |  |     |  |  |  |      |   |  |  |     | 
|------------------------------------------------- |  | ------------------- |  | --------------- | --- |  | -------------- |  | ----------------- | - |  | ---------- | --- |  | -------------- |  |  |  | --- |  |  |  | ---- | - |  |  | --- | 
|                                                  |  |                     |  | January 3, 2016 |     |  |                |  | December 28, 2014 |  
|                                                  |  |                     |  | Fair value      |     |  | Notionalamount |  |                   |   |  | Fair value |     |  | Notionalamount | 
| million                                         |  | Maturity            |  | Assets          |     |  | Liabilities    |  |                   |   |  | Assets     |     |  | Liabilities    |  | 
|Forward foreign currency contracts1               |  | Within 1 year       |  |                 |    |  |                |  |                  |   |  |            | 83  |  |                |  |  |  | 1   |  |  |  | (1   | ) |  |  | 95  | 
|Cross-currency swap2                              |  | After 5 years       |  |                 |    |  |                |  | (210              | ) |  |            | 253 |  |                |  |  |  |    |  |  |  | (250 | ) |  |  | 225 | 
|Total cash flow hedges                            |  |                     |  |                 |    |  |                |  | (210              | ) |  |            | 336 |  |                |  |  |  | 1   |  |  |  | (251 | ) |  |  | 320 | 
|                                                  |  |                     |  |                 |     |  |                | 
|Interest rate swap3                               |  | Between 1 to5 years |  |                 | 29  |  |                |  |                  |   |  |            | 340 |  |                |  |  |  | 38  |  |  |  |     |   |  |  | 319 | 
|                                                  |  |                     |  |                 |     |  |                | 
|Cross-currency swap3,4                            |  | Between 1 to5 years |  |                 | 309 |  |                |  |                  |   |  |            | 340 |  |                |  |  |  | 272 |  |  |  |     |   |  |  | 319 | 
|Total derivatives  no hedge accounting treatment |  |                     |  |                 | 338 |  |                |  |                  |   |  |            | 340 |  |                |  |  |  | 310 |  |  |  |     |   |  |  | 319 | 
|Total derivative financial instruments            |  |                     |  |                 | 338 |  |                |  | (210              | ) |  |            | 676 |  |                |  |  |  | 311 |  |  |  | (251 | ) |  |  | 639 | 

1 Foreign currency forwards designated as cash flow hedges are used to hedge the future cash flows denominated in foreign currencies.

2 Cross-currency swap accounted for as a cash flow hedge used to hedge currency and cash flow risk on floating debt denominated in foreign currency, related to JPY 33,000
notes (see Note 21 for additional information).

3 Interest rate swap and cross-currency swap relate to the same notional amount of GBP 250 million.

4 As of January 3, 2016, the valuation of the GBP 250 cross-currency swap, related to the GBP 250 notes (see Note 21 for additional information) includes the
impact of the mark-to-market valuation of an embedded credit clause in the amount of nil. The volatility in the financial markets resulted in a gain of nil related to this credit clause in the year 2015
(1 million gain in 2014). Ahold is required under these swap contracts to redeem the U.S. dollar notional amount through semi-annual installments that commenced in September 2004. $314 million
has been paid down as of January 3, 2016.



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30 Financial risk management and financial instruments (continued)



Gains and losses recognized in cash flow hedging reserve in equity as of January 3, 2016,
primarily relate to the swap on the JPY 33,000 notes and will be released to the income statement over a period lasting until 2031.

31 Related party transactions

Compensation of key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company as a whole. The
Company considers all members of the Executive Committee (ExCo) and the Supervisory Board to be key management personnel as defined in IAS 24 Related parties. At the end of 2015, the ExCo consisted of the Management Board and four other
ExCo members.

The total compensation of key management personnel in 2015 amounts to 26,157 thousand
(2014: 16,456 thousand and 2013: 13,755 thousand). This includes an estimate of additional wage tax on severance payments due in
accordance with Dutch tax laws in the amount of 5.1 million (2014: 1.2 million and 2013: nil). The 2013 amount included a crisis
levy in the Netherlands of 758 thousand following the Budget Agreement 2013 Tax Measures Implementation Act that was extended in the 2014 Tax Plan. The crisis levy was 758 thousand for members of the ExCo and nil for the members of the Supervisory Board in 2013.



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31 Related party transactions (continued)



Employment contracts with individual Management Board members

Dick Boer

In 2015, the Company provided Dick Boer
with an annual base salary of 1,000,000, participation in the annual cash incentive plan and participation in the Companys equity-based long-term incentive plan (GRO  see Note
32). The at-target payout under the annual cash incentive plan is 100% of base salary and is capped at 150% in case of extraordinary performance. Unless Dick Boers employment agreement is otherwise terminated, he will be eligible for
reappointment at the annual General Meeting of Shareholders in April 2019. In the event that the Company terminates his employment agreement for reasons other than cause or because he is not reappointed by the shareholders, Dick Boer is entitled to
a severance payment equal to one years base salary. His employment agreement may be terminated by the Company with a notice period of 12 months and by Dick Boer with a notice period of six months. Dick Boer participates in Aholds
Dutch Pension Plan.

Jeff Carr

In 2015, the
Company provided Jeff Carr with an annual base salary of 666,000, participation in the annual cash incentive plan and participation in the Companys equity-based long-term incentive plan
(GRO  see Note 32). The at-target payout under the annual cash incentive plan is 100% of base salary and is capped at 150% in case of extraordinary performance. Furthermore, Jeff Carr receives a housing allowance of 7,000 net per month. Jeff Carr will be eligible for reappointment at the Extraordinary General Meeting of Shareholders on March 14, 2016. In the event that the Company terminates his employment
agreement for reasons other than cause or because he is not reappointed by the shareholders, Jeff Carr is entitled to a severance payment equal to one years base salary. His employment agreement may be terminated by the Company with a
notice period of 12 months and by Jeff Carr with a notice period of six months. Jeff Carr participates in Aholds Dutch Pension Plan.



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31 Related party transactions (continued)



James McCann

In 2015, the Company provided James McCann with an annual base salary of 666,000, participation in the annual cash
incentive plan and participation in the Companys equity-based long-term incentive plan (GRO  see Note 32). The at-target payout under the annual cash incentive plan is 100% of base salary and is capped at 150% in case of
extraordinary performance. Furthermore, James McCann receives a housing allowance of $10,000 net per month for his first term of four years. James McCann will be eligible for reappointment at the Extraordinary General Meeting of Shareholders on
March 14, 2016. In the event that the Company terminates his employment agreement for reasons other than cause or because he is not reappointed by the shareholders, James McCann is entitled to a severance payment equal to one years base
salary. His employment agreement may be terminated by the Company with a notice period of 12 months and by James McCann with a notice period of six months. James McCann participates in Aholds Dutch Pension Plan.

Lodewijk Hijmans van den Bergh

In 2015, the
Company provided Lodewijk Hijmans van den Bergh with an annual base salary of 544,000, participation in the annual cash incentive plan and participation in the Companys
equity-based long-term incentive plan (GRO  see Note 32). The at-target payout under the annual cash incentive plan is 100% of base salary and is capped at 150% in case of extraordinary performance. Lodewijk Hijmans van den Bergh
participated in Aholds Dutch Pension Plan. On March 1, 2015, Lodewijk Hijmans van den Bergh stepped down as Chief Corporate Governance Counsel. His employment relationship with Ahold was terminated on December 31, 2015.



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31 Related party transactions (continued)



Remuneration of the Management Board by member



|                                |             |                     |       |      |  |  |                       |  |  |                           |       |  |  |  |                           |  |  |           |  |  |                     |  |  |  |       |   |  |  |        | 
|------------------------------- | ----------- | ------------------- | ----- | ---- |  |  | --------------------- |  |  | ------------------------- | ----- |  |  |  | ------------------------- |  |  | --------- |  |  | ------------------- |  |  |  | ----- | - |  |  | ------ | 
| thousand                      |             | Direct remuneration |       |      |  |  | Deferred remuneration |  |  |                           |      
|                                | Base salary |                     |       | EIP2 |  |  | Other3,4              |  |  | Total direct
remuneration |       |  |  |  | Share-based
compensation5 |  |  | Pensions6 |  |  | Total
remuneration7 | 
|Dick Boer                       |             |                     |       |      |  |  |                       |  |  |                           |       |  |  |  |                           |  |  |           |  |  |                     |  |  |  |       |   |  |  |        | 
|2015                            |             |                     | 1,000 |      |  |  | 1,350                 |  |  |                           | 305   |  |  |  | 2,655                     |  |  |           |  |  | 1,607               |  |  |  | 67    |   |  |  | 4,329  | 
|2014                            |             |                     | 987   |      |  |  | 444                   |  |  |                           | 13    |  |  |  | 1,444                     |  |  |           |  |  | 1,214               |  |  |  | (125  | ) |  |  | 2,533  | 
|2013                            |             |                     | 975   |      |  |  | 868                   |  |  |                           | 12    |  |  |  | 1,855                     |  |  |           |  |  | 1,114               |  |  |  | 433   |   |  |  | 3,402  | 
|Jeff Carr                       |             |                     |       |      |  |  |                       |  |  |                           |       |  |  |  |                           |  |  |           |  |  |                     |  |  |  |       |   |  |  |        | 
|2015                            |             |                     | 666   |      |  |  | 899                   |  |  |                           | 307   |  |  |  | 1,872                     |  |  |           |  |  | 835                 |  |  |  | 29    |   |  |  | 2,736  | 
|2014                            |             |                     | 658   |      |  |  | 296                   |  |  |                           | 147   |  |  |  | 1,101                     |  |  |           |  |  | 678                 |  |  |  | 48    |   |  |  | 1,827  | 
|2013                            |             |                     | 615   |      |  |  | 547                   |  |  |                           | 154   |  |  |  | 1,316                     |  |  |           |  |  | 615                 |  |  |  | 257   |   |  |  | 2,188  | 
|James McCann                    |             |                     |       |      |  |  |                       |  |  |                           |       |  |  |  |                           |  |  |           |  |  |                     |  |  |  |       |   |  |  |        | 
|2015                            |             |                     | 666   |      |  |  | 899                   |  |  |                           | 1,176 |  |  |  | 2,741                     |  |  |           |  |  | 1,010               |  |  |  | 30    |   |  |  | 3,781  | 
|2014                            |             |                     | 658   |      |  |  | 296                   |  |  |                           | 1,213 |  |  |  | 2,167                     |  |  |           |  |  | 773                 |  |  |  | (39   | ) |  |  | 2,901  | 
|2013                            |             |                     | 650   |      |  |  | 579                   |  |  |                           | 414   |  |  |  | 1,643                     |  |  |           |  |  | 665                 |  |  |  | 239   |   |  |  | 2,547  | 
|Lodewijk Hijmans van den Bergh1 |             |                     |       |      |  |  |                       |  |  |                           |       |  |  |  |                           |  |  |           |  |  |                     |  |  |  |       |   |  |  |        | 
|2015                            |             |                     | 91    |      |  |  | 122                   |  |  |                           | 108   |  |  |  | 321                       |  |  |           |  |  | 190                 |  |  |  | 5     |   |  |  | 516    | 
|2014                            |             |                     | 544   |      |  |  | 245                   |  |  |                           | 1,654 |  |  |  | 2,443                     |  |  |           |  |  | 1,031               |  |  |  | (48   | ) |  |  | 3,426  | 
|2013                            |             |                     | 537   |      |  |  | 478                   |  |  |                           | 16    |  |  |  | 1,031                     |  |  |           |  |  | 545                 |  |  |  | 212   |   |  |  | 1,788  | 
|Total 2015                      |             |                     | 2,423 |      |  |  | 3,270                 |  |  |                           | 1,896 |  |  |  | 7,589                     |  |  |           |  |  | 3,642               |  |  |  | 131   |   |  |  | 11,362 | 
|Total 2014                      |             |                     | 2,847 |      |  |  | 1,281                 |  |  |                           | 3,027 |  |  |  | 7,155                     |  |  |           |  |  | 3,696               |  |  |  | (164  | ) |  |  | 10,687 | 
|Total 2013                      |             |                     | 2,777 |      |  |  | 2,472                 |  |  |                           | 596   |  |  |  | 5,845                     |  |  |           |  |  | 2,939               |  |  |  | 1,141 |   |  |  | 9,925  | 



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31 Related party transactions (continued)



Remuneration of the Executive Committee including Management Board

The table below specifies the remuneration of the ExCo, comprising the Management Board members as listed above and the additional ExCo members who were not
part of the Management Board.



|                          |  |      |        |  |      |  |        |      |  |  |        | 
|------------------------- |  | ---- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
| thousand                |  | 2015 |        |  | 2014 |  |        | 2013 | 
|Base salary               |  |      | 4,241  |  |      |  | 4,399  |      |  |  | 3,183  | 
|EIP2                      |  |      | 5,724  |  |      |  | 1,979  |      |  |  | 2,821  | 
|Other3                    |  |      | 4,672  |  |      |  | 3,837  |      |  |  | 865    | 
|Share-based compensation5 |  |      | 5,230  |  |      |  | 4,930  |      |  |  | 3,983  | 
|Pensions6                 |  |      | 302    |  |      |  | (747   | )    |  |  | 1,320  | 
|Total remuneration7       |  |      | 20,169 |  |      |  | 14,398 |      |  |  | 12,172 | 

1 Lodewijk Hijmans van den Bergh, Chief Corporate Governance Counsel and member of the Management Board and Executive Committee, stepped
down on March 1, 2015. His employment relationship with Ahold was terminated on December 31, 2015. Ahold agreed to pay his remuneration until the end of 2015, as well as a severance payment amounting to one years base salary (544,000), 2015 EIP and GRO. Outstanding shares under the GRO plan have vested over the term of employment in accordance with the applicable plan rules. An estimate of the remuneration costs relating
to the period after March 1, 2015, until December 31, 2015, was recognized in 2014 (Other 1,641,000 and Share-based compensation
434,000). Adjustments to the estimate of the remuneration costs as a result of the actual payments are included in 2015 (Other 85,000 and
Share-based compensation 100,000). An estimate of additional wage tax of 1.9 million (2014:
1.2 million) on severance payments due in accordance with Dutch tax laws, is excluded from Total remuneration as presented in the tables above.

2 ExCo Incentive Plan (EIP) represents accrued annual cash incentives to be paid in the following year based on an overall weighted EIP performance of 135%
versus 45% last year.

3 Other mainly includes gross allowances for net pension due to a pension plan amendment, tax compensation (tax equalization
charges for expatriates), allowances for housing expenses for certain individuals, relocation costs, international school fees, employers contributions to social security plans, benefits in kind such as tax advice, medical expenses, and the
associated tax gross up. Other also includes remuneration costs related to termination agreements. The increases in Other for the Management Board are further described under footnote 4 below.

4 The increase in Other for Dick Boer and Jeff Carr is primarily due to gross allowances for net pension due to a pension plan amendment (for details refer to
Note 23).For James McCann, increased gross allowances were offset by lower tax compensation. Included in Other for James McCann in 2015 is tax compensation of 805,000
(2014: 969,000), of which 83,000 relates to the 2014 tax year. Other for Lodewijk Hijmans van den Bergh is described under
footnote 1 above.

5 The fair value of each years grant is determined on the grant date and expensed on a straight-line basis over the vesting period. The
expense for 2015 reflects this years portion of the share grants over the previous five years (2011 to 2015). The share-based compensation expense also includes the expense related to the shares under the special purpose plan as described in
Note 32. Under this program 105,000 shares were granted in 2013 to ExCo members that were not part of the Management Board, of which 35,000 shares vested in 2015 (2014: 35,000 and 2013: 35,000). The total share-based compensation expense in
2015 for these ExCo members is 1,588,000 (2014: 1,234,000 and 2013: 1,044,000) of
which 46,000 (2014: 459,000 and 2013: 792,000) relates to the special purpose plan
and 1,542,000 (2014: 775,000 and 2013: 252,000) to the grants under the GRO program.

6 Pension costs are the total net periodic pension costs. During 2014, Ahold amended its pension plan in the Netherlands. For more details refer to Note 23.

7 On January 8, 2015, the Supervisory Board appointed Jan Ernst de Groot and on January 15, 2015, Wouter Kolk as members of the ExCo, effective
February 1, 2015. On January 15, 2015, it was announced that Sander van der Laan, CEO Albert Heijn and member of the ExCo, would step down on February 1, 2015. His employment relationship with Ahold was terminated on
September 30, 2015.



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31 Related party transactions (continued)



Remuneration of the Supervisory Board members



|                                         |  |      |     |  |      |  |     |      |  |  |     | 
|---------------------------------------- |  | ---- | --- |  | ---- |  | --- | ---- |  |  | --- | 
| thousand                               |  | 2015 |     |  | 2014 |  |     | 2013 | 
|Jan Hommen (appointed in 2013)           |  |      | 122 |  |      |  | 117 |      |  |  | 35  | 
|Mark McGrath (reappointed in 2012)       |  |      | 131 |  |      |  | 129 |      |  |  | 109 | 
|Stephanie Shern (reappointed in 2013)    |  |      | 127 |  |      |  | 118 |      |  |  | 98  | 
|Rob van den Bergh (reappointed in 2015)  |  |      | 127 |  |      |  | 128 |      |  |  | 104 | 
|Derk Doijer (reappointed in 2013)        |  |      | 116 |  |      |  | 108 |      |  |  | 100 | 
|Ben Noteboom (reappointed in 2013)       |  |      | 103 |  |      |  | 99  |      |  |  | 101 | 
|René Hooft Graafland (appointed in 2015) |  |      | 114 |  |      |  |    |      |  |  |    | 
|Judith Sprieser (resigned in July 2015)  |  |      | 63  |  |      |  | 126 |      |  |  | 112 | 
|René Dahan (resigned in October 2013)    |  |      |    |  |      |  |    |      |  |  | 87  | 
|Tom de Swaan (resigned in October 2013)  |  |      |    |  |      |  |    |      |  |  | 79  | 
|Total                                    |  |      | 903 |  |      |  | 825 |      |  |  | 825 | 

Shares and other interests in Ahold

As of January 3, 2016, Management Board members held the following shares and other interests in Ahold:



|                 |  |                                                        |         |  |                   |  |         |                   |  |  |         | 
|---------------- |  | ------------------------------------------------------ | ------- |  | ----------------- |  | ------- | ----------------- |  |  | ------- | 
|Number of shares |  | Common sharessubject to additionalholding requirement1 |         |  | Othercommonshares |  |         | Totalcommonshares | 
|Dick Boer        |  |                                                        | 66,715  |  |                   |  | 244,058 |                   |  |  | 310,773 | 
|Jeff Carr        |  |                                                        | 60,923  |  |                   |  | 9,230   |                   |  |  | 70,153  | 
|James McCann     |  |                                                        | 60,923  |  |                   |  | 101,538 |                   |  |  | 162,461 | 
|Total            |  |                                                        | 188,561 |  |                   |  | 354,826 |                   |  |  | 543,387 | 

1 In line with best practice II.2.5 of the Dutch Corporate Governance Code, shares granted and vested under the GRO program to Management
Board members should be retained for a period of at least five years after grant, except to finance tax payable at the vesting date, or at least until the end of a members employment with the Company, if this period is shorter.

As of January 3, 2016, Ben Noteboom held 16,615 Ahold common shares and Rob van den Bergh held 13,846 Ahold common shares. None of the other Supervisory Board
members held Ahold shares.

Ahold does not provide loans or advances to members of the Management Board or the Supervisory Board. There are no loans or advances
outstanding. Ahold does not issue guarantees to the benefit of members of the Management Board or the Supervisory Board. No such guarantees are outstanding.



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31 Related party transactions (continued)



Trading transactions

Ahold has entered into arrangements with a number of its subsidiaries and affiliated companies in the course of its business. These arrangements relate to service
transactions and financing agreements. Transactions were conducted at market prices.

During 2015, 2014 and 2013, the Company entered into the following transactions
with unconsolidated related parties:

For the year ended January 3, 2016



|                      |  |                         |    |  |                               |  |   |                                        |  |  |                                   |  |  |                               |   |  |  |  |    | 
|--------------------- |  | ----------------------- | -- |  | ----------------------------- |  | - | -------------------------------------- |  |  | --------------------------------- |  |  | ----------------------------- | - |  |  |  | -- | 
| million             |  | Sales torelated parties |    |  | Purchases fromrelated parties |  |   | Amounts receivablefrom
related parties |  |  | Amounts payable torelated parties |  |  | Commitments torelated parties |  
|Stationsdrogisterijen |  |                         | 17 |  |                               |  |  |                                        |  |  |                                  |  |  |                               | 6 |  |  |  |   | 
|JMR                   |  |                         | 5  |  |                               |  |  |                                        |  |  | 1                                 |  |  |                               |  |  |  |  |   | 
|Cathedral Commons     |  |                         |   |  |                               |  | 1 |                                        |  |  |                                  |  |  |                               |  |  |  |  | 26 | 
|Other                 |  |                         | 4  |  |                               |  | 3 |                                        |  |  | 11                                |  |  |                               |  |  |  |  | 16 | 
|Total                 |  |                         | 26 |  |                               |  | 4 |                                        |  |  | 12                                |  |  |                               | 6 |  |  |  | 42 | 

For the year ended December 28, 2014



|                      |  |                         |    |  |                               |  |   |                                        |  |  |                                   |  |  |                               |   |  |  |  |    | 
|--------------------- |  | ----------------------- | -- |  | ----------------------------- |  | - | -------------------------------------- |  |  | --------------------------------- |  |  | ----------------------------- | - |  |  |  | -- | 
| million             |  | Sales torelated parties |    |  | Purchases fromrelated parties |  |   | Amounts receivablefrom related parties |  |  | Amounts payable torelated parties |  |  | Commitments torelated parties |  
|Stationsdrogisterijen |  |                         | 16 |  |                               |  |  |                                        |  |  |                                  |  |  |                               | 5 |  |  |  |   | 
|JMR                   |  |                         | 5  |  |                               |  |  |                                        |  |  | 1                                 |  |  |                               |  |  |  |  |   | 
|Cathedral Commons     |  |                         |   |  |                               |  |  |                                        |  |  | 3                                 |  |  |                               |  |  |  |  | 24 | 
|Other                 |  |                         | 2  |  |                               |  | 2 |                                        |  |  | 12                                |  |  |                               | 2 |  |  |  | 17 | 
|Total                 |  |                         | 23 |  |                               |  | 2 |                                        |  |  | 16                                |  |  |                               | 7 |  |  |  | 41 | 

For the year ended December 29, 2013



|                      |  |                         |    |  |                               |  |   |                                        |  |  |                                   |  |  |                               |   |  |  |  |    | 
|--------------------- |  | ----------------------- | -- |  | ----------------------------- |  | - | -------------------------------------- |  |  | --------------------------------- |  |  | ----------------------------- | - |  |  |  | -- | 
| million             |  | Sales torelated parties |    |  | Purchases fromrelated parties |  |   | Amounts receivablefrom related parties |  |  | Amounts payable torelated parties |  |  | Commitments torelated parties |  
|ICA                   |  |                         | 1  |  |                               |  |  |                                        |  |  |                                  |  |  |                               |  |  |  |  |   | 
|Stationsdrogisterijen |  |                         | 15 |  |                               |  |  |                                        |  |  |                                  |  |  |                               | 5 |  |  |  |   | 
|JMR                   |  |                         | 6  |  |                               |  |  |                                        |  |  | 2                                 |  |  |                               | 1 |  |  |  |   | 
|Cathedral Commons     |  |                         |   |  |                               |  |  |                                        |  |  | 3                                 |  |  |                               |  |  |  |  | 22 | 
|Other                 |  |                         | 2  |  |                               |  | 2 |                                        |  |  | 15                                |  |  |                               | 3 |  |  |  | 23 | 
|Total                 |  |                         | 24 |  |                               |  | 2 |                                        |  |  | 20                                |  |  |                               | 9 |  |  |  | 45 | 



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31 Related party transactions (continued)



These unconsolidated related parties consist of:



| |  | ICA, in which Ahold divested its interest in 2013. Sales to and purchases from ICA are presented for the period ended on March 27, 2013
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------



| |  | Stationsdrogisterijen C.V., a joint venture of Ahold in the health and beauty care retail business
|- |  | --------------------------------------------------------------------------------------------------



| |  | JMR, a joint venture of Ahold in the retail business (see Note 14)
|- |  | ------------------------------------------------------------------



| |  | Cathedral Commons Partners, LLC, a real estate joint venture of Ahold
|- |  | ---------------------------------------------------------------------



| |  | Other, which includes mainly real estate joint ventures in which Ahold has an interest, holding properties operated by Ahold and Loyalty Management Nederland B.V., an associate of Ahold that renders
services relating to the management of customer loyalty programs to certain Ahold subsidiaries in the Netherlands
|- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Furthermore, the Companys
post-employment benefit plans in the Netherlands and the United States are considered related parties. For more information on these plans, see Note 23.

32 Share-based compensation

In 2015, Aholds share-based compensation program consisted of a conditional
share grant program called Global Reward Opportunity (GRO). Total 2015 GRO share-based compensation expenses were 47 million (2014:
43 million and 2013: 43 million). Aholds share-based compensation programs are equity-settled.

The fair value of the shares granted under the GRO program in 2015 at grant date was 59 million, of which 5 million related to Management Board members. This fair value is expensed over the vesting period of the grants adjusted for expected annual forfeitures of 5% (2014: 5% and 2013: 5%), excluding
Management Board members. For the share-based compensation expenses allocable to the individual Management Board members, see Note 31.

GRO program

Main
characteristics

Under the 2006-2012 GRO program, Ahold shares were granted through a mid-term (three-year) and a long-term (five-year) program. The number of
shares granted depended on the at-target value, the annual incentive multiplier of the preceding year and the average share price for six months preceding the date of the grant. For participants other than the Management Board members, the mid-term
component of the program contained a matching share feature. For every five shares a participant holds for an additional two years after the vesting date, the participant will receive one additional share.

The shares were granted on the day after the annual General Meeting of Shareholders and vest on the day after the publication of Aholds full-year results in the
third year (three-year programs) or fifth year (five-year programs ) after the grant, provided the participant is still employed by Ahold. Shares granted to Management Board members vest on the day after the annual General Meeting of Shareholders in
the third year (mid-term component) or fifth year (long-term component) after the grant, subject to continued employment. Management Board members are not allowed to sell their shares within a period of five years from the grant date, except to
finance tax payable at the date of vesting.



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32 Share-based compensation (continued)



Under the 2006-2012 GRO program, the shares granted through the long-term component are subject to
a performance condition. The number of shares that will ultimately vest depends on Aholds performance compared to 11 other retail companies (refer to the Remuneration section for the composition of the peer group), measured over a
five-year period using Total Shareholder Return (TSR), which is the sum of share price growth and dividends paid. The table below indicates the percentage of conditional shares that could vest based on the ranking of Ahold within the peer group:



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32 Share-based compensation (continued)





|                           |  |   |     |   |   |  |     |   |  |  |     |   |  |   |     |   |   |  |    |   |  |  |    |   |  |   |    |   |    |  |    |    |  |  |    |   |  |  |    |   |  |  |     |   |  |  |   |  
|-------------------------- |  | - | --- | - | - |  | --- | - |  |  | --- | - |  | - | --- | - | - |  | -- | - |  |  | -- | - |  | - | -- | - | -- |  | -- | -- |  |  | -- | - |  |  | -- | - |  |  | --- | - |  |  | - | -
|2006-2012 GRO program rank |  | 1 |     |   | 2 |  |     | 3 |  |  | 4   |   |  | 5 |     |   | 6 |  |    | 7 |  |  | 8  |   |  | 9 |    |   | 10 |  |    | 11 |  |  | 12 |  
|Management Board           |  |   | 150 | % |   |  | 130 | % |  |  | 110 | % |  |   | 90  | % |   |  | 70 | % |  |  | 50 | % |  |   | 25 | % |    |  | 0  | %  |  |  | 0  | % |  |  | 0  | % |  |  | 0   | % |  |  | 0 | %
|Other participants         |  |   | 150 | % |   |  | 135 | % |  |  | 120 | % |  |   | 105 | % |   |  | 90 | % |  |  | 75 | % |  |   | 60 | % |    |  | 45 | %  |  |  | 30 | % |  |  | 15 | % |  |  | 7.5 | % |  |  | 0 | %

A revised GRO program was introduced as of the 2013 grant. Under the revised GRO program, shares are granted through a three-year program.
The program consists of three components: one with a performance hurdle at grant (conditional share grant) and two components with a performance hurdle at vesting (performance share grants). The size of the conditional share grant is subject to the
Executive Incentive Plan Multiplier of the preceding year for Management Board members and for other employees. Half of the performance share grant is linked to a three-year return on capital (RoC) target. Dependent on RoC performance, the number of
shares that eventually vest can range between 0% and a maximum of 150% of the number of shares granted. For the other half of the performance share grant, the performance at vesting is measured using the TSR ranking. The table below indicates the
percentage of shares with a TSR performance measure under the revised GRO program (2013, 2014 and 2015 GRO program) that could vest based on the ranking of Ahold within the peer group:



|                           |  |   |     |   |   |  |     |   |  |  |     |   |  |   |     |   |   |  |    |   |  |  |    |   |  |   |    |   |    |  |    |    |  |  |    |   |  |  |    |   |  |  |     |   |  |  |   |  
|-------------------------- |  | - | --- | - | - |  | --- | - |  |  | --- | - |  | - | --- | - | - |  | -- | - |  |  | -- | - |  | - | -- | - | -- |  | -- | -- |  |  | -- | - |  |  | -- | - |  |  | --- | - |  |  | - | -
|2013-2015 GRO program rank |  | 1 |     |   | 2 |  |     | 3 |  |  | 4   |   |  | 5 |     |   | 6 |  |    | 7 |  |  | 8  |   |  | 9 |    |   | 10 |  |    | 11 |  |  | 12 |  
|Vice President and up      |  |   | 175 | % |   |  | 150 | % |  |  | 125 | % |  |   | 100 | % |   |  | 75 | % |  |  | 50 | % |  |   | 0  | % |    |  | 0  | %  |  |  | 0  | % |  |  | 0  | % |  |  | 0   | % |  |  | 0 | %
|Other participants         |  |   | 150 | % |   |  | 135 | % |  |  | 120 | % |  |   | 105 | % |   |  | 90 | % |  |  | 75 | % |  |   | 60 | % |    |  | 45 | %  |  |  | 30 | % |  |  | 15 | % |  |  | 7.5 | % |  |  | 0 | %

As of the end of 2015, Ahold held the third position with respect to the 2011 share grant, the second position for the 2012 grant, the
fourth position for the 2013 grant, the third position for the 2014 grant and the third position for the 2015 grant. For the 2011 share grant, Aholds final TSR ranking was in the third position (110% for Management Board members and 120% for
other participants) and for the 2013 grant, it was in the fourth position (100% for Vice President and up and 105% for other participants). The positions with respect to the 2012, 2014 and 2015 share grants are not an indication of Aholds
final ranking at the end of the performance periods, nor do they provide any information related to the vesting of shares.

At the end of each reporting period, Ahold
revises its estimates of the number of shares that are expected to vest based on the non-market vesting conditions (RoC performance). Ahold recognizes the impact of the revision to original estimates, if any, in the income statement, with a
corresponding adjustment to equity. For the 2013 grant, the final percentage of number of shares dependent on RoC performance that will vest in 2016 is 60% (2014 estimate: 51%). At the end of 2015, the revised estimate of the number of shares in the
2014 grant that will vest in 2017 dependent on RoC performance, is 90%. The estimate for the 2015 grant is 100% of the shares dependent on RoC performance will vest in 2018.

Upon termination of employment due to retirement, disability or death, the same vesting conditions as described above apply. Upon termination of employment without cause
in certain circumstances (e.g., restructuring or divestment), a pro rata part of the granted shares will vest on the date of termination of employment. For the performance shares, the most recent performance results will be applied to calculate the
number of vested shares.

In addition, a limited number of shares were granted to other ExCo members and other employees in 2013, 2014 and 2015 under a special
purpose plan. This program consists of unconditional and conditional shares. The unconditional shares vest immediately on the award date. The conditional shares vest in two tranches. Half of the conditional shares vest on the day after the
publication of Aholds full-year results in the first year and half in the second year after the grant.



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32 Share-based compensation (continued)



The following table summarizes the status of the GRO program during 2015 for the individual
Management Board members and for all other employees in the aggregate.



|                       |  |                                     |        |  |          |  |        |         |  |  |            |  |  |                               |       |  |                           |  |        |                           |  |  |                                            |  |  |  |         |  |  |  |       | 
|---------------------- |  | ----------------------------------- | ------ |  | -------- |  | ------ | ------- |  |  | ---------- |  |  | ----------------------------- | ----- |  | ------------------------- |  | ------ | ------------------------- |  |  | ------------------------------------------ |  |  |  | ------- |  |  |  | ----- | 
|                       |  | Outstanding at thebeginning of
2015 |        |  | Granted1 |  |        | Vested2 |  |  | Forfeited3 |  |  | Outstanding atthe end of 2015 |       |  | Minimum
number of shares4 |  |        | Maximum
number of shares5 |  |  | Fair value per
share at the grant date () | 
|Dick Boer              |  |                                     |        |  |          |  |        |         |  |  |            |  |  |                               |       |  |                           |  |        |                           |  |  |                                            |  |  |  |         |  |  |  |       | 
|Five-year 2010 grant   |  |                                     | 33,671 |  |          |  |       |         |  |  | 30,304     |  |  |                               | 3,367 |  |                           |  |       |                           |  |  |                                           |  |  |  |        |  |  |  | 7.29  | 
|Five-year 2011 grant   |  |                                     | 65,965 |  |          |  |       |         |  |  |           |  |  |                               |      |  |                           |  | 65,965 |                           |  |  |                                           |  |  |  | 98,947  |  |  |  | 6.00  | 
|Three-year 2012 grant  |  |                                     | 73,026 |  |          |  |       |         |  |  | 73,026     |  |  |                               |      |  |                           |  |       |                           |  |  |                                           |  |  |  |        |  |  |  | 9.23  | 
|Five-year 2012 grant   |  |                                     | 73,026 |  |          |  |       |         |  |  |           |  |  |                               |      |  |                           |  | 73,026 |                           |  |  |                                           |  |  |  | 109,539 |  |  |  | 7.81  | 
|2013 TSR grant         |  |                                     | 63,221 |  |          |  |       |         |  |  |           |  |  |                               |      |  |                           |  | 63,221 |                           |  |  |                                           |  |  |  | 110,636 |  |  |  | 7.76  | 
|2013 RoC grant         |  |                                     | 63,221 |  |          |  |       |         |  |  |           |  |  |                               |      |  |                           |  | 63,221 |                           |  |  |                                           |  |  |  | 94,831  |  |  |  | 10.52 | 
|2013 Conditional grant |  |                                     | 25,757 |  |          |  |       |         |  |  |           |  |  |                               |      |  |                           |  | 25,757 |                           |  |  | 25,757                                     |  |  |  | 25,757  |  |  |  | 10.52 | 
|2014 TSR grant         |  |                                     | 49,844 |  |          |  |       |         |  |  |           |  |  |                               |      |  |                           |  | 49,844 |                           |  |  |                                           |  |  |  | 87,227  |  |  |  | 11.20 | 
|2014 RoC grant         |  |                                     | 49,844 |  |          |  |       |         |  |  |           |  |  |                               |      |  |                           |  | 49,844 |                           |  |  |                                           |  |  |  | 74,766  |  |  |  | 12.40 | 
|2014 Conditional grant |  |                                     | 32,860 |  |          |  |       |         |  |  |           |  |  |                               |      |  |                           |  | 32,860 |                           |  |  | 32,860                                     |  |  |  | 32,860  |  |  |  | 12.40 | 
|2015 TSR grant         |  |                                     |       |  |          |  | 54,336 |         |  |  |           |  |  |                               |      |  |                           |  | 54,336 |                           |  |  |                                           |  |  |  | 95,088  |  |  |  | 14.66 | 
|2015 RoC grant         |  |                                     |       |  |          |  | 54,336 |         |  |  |           |  |  |                               |      |  |                           |  | 54,336 |                           |  |  |                                           |  |  |  | 81,504  |  |  |  | 18.14 | 
|2015 Conditional grant |  |                                     |       |  |          |  | 14,383 |         |  |  |           |  |  |                               |      |  |                           |  | 14,383 |                           |  |  | 14,383                                     |  |  |  | 14,383  |  |  |  | 18.14 | 
|Jeff Carr              |  |                                     |        |  |          |  |        |         |  |  |            |  |  |                               |       |  |                           |  |        |                           |  |  |                                            |  |  |  |         |  |  |  |       | 
|Five-year 2011 grant   |  |                                     | 50,388 |  |          |  |       |         |  |  |           |  |  |                               |      |  |                           |  | 50,388 |                           |  |  |                                           |  |  |  | 75,582  |  |  |  | 5.80  | 
|Three-year 2012 grant  |  |                                     | 45,405 |  |          |  |       |         |  |  | 45,405     |  |  |                               |      |  |                           |  |       |                           |  |  |                                           |  |  |  |        |  |  |  | 9.23  | 
|Five-year 2012 grant   |  |                                     | 45,405 |  |          |  |       |         |  |  |           |  |  |                               |      |  |                           |  | 45,405 |                           |  |  |                                           |  |  |  | 68,107  |  |  |  | 7.81  | 
|2013 TSR grant         |  |                                     | 29,539 |  |          |  |       |         |  |  |           |  |  |                               |      |  |                           |  | 29,539 |                           |  |  |                                           |  |  |  | 51,693  |  |  |  | 7.76  | 
|2013 RoC grant         |  |                                     | 29,539 |  |          |  |       |         |  |  |           |  |  |                               |      |  |                           |  | 29,539 |                           |  |  |                                           |  |  |  | 44,308  |  |  |  | 10.52 | 
|2013 Conditional grant |  |                                     | 16,247 |  |          |  |       |         |  |  |           |  |  |                               |      |  |                           |  | 16,247 |                           |  |  | 16,247                                     |  |  |  | 16,247  |  |  |  | 10.52 | 
|2014 TSR grant         |  |                                     | 24,614 |  |          |  |       |         |  |  |           |  |  |                               |      |  |                           |  | 24,614 |                           |  |  |                                           |  |  |  | 43,074  |  |  |  | 11.20 | 
|2014 RoC grant         |  |                                     | 24,614 |  |          |  |       |         |  |  |           |  |  |                               |      |  |                           |  | 24,614 |                           |  |  |                                           |  |  |  | 36,921  |  |  |  | 12.40 | 
|2014 Conditional grant |  |                                     | 21,907 |  |          |  |       |         |  |  |           |  |  |                               |      |  |                           |  | 21,907 |                           |  |  | 21,907                                     |  |  |  | 21,907  |  |  |  | 12.40 | 
|2015 TSR grant         |  |                                     |       |  |          |  | 21,309 |         |  |  |           |  |  |                               |      |  |                           |  | 21,309 |                           |  |  |                                           |  |  |  | 37,290  |  |  |  | 14.66 | 
|2015 RoC grant         |  |                                     |       |  |          |  | 21,309 |         |  |  |           |  |  |                               |      |  |                           |  | 21,309 |                           |  |  |                                           |  |  |  | 31,964  |  |  |  | 18.14 | 
|2015 Conditional grant |  |                                     |       |  |          |  | 9,589  |         |  |  |           |  |  |                               |      |  |                           |  | 9,589  |                           |  |  | 9,589                                      |  |  |  | 9,589   |  |  |  | 18.14 | 



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32 Share-based compensation (continued)



|                                  |  |                                     |           |  |          |  |         |         |  |  |            |  |  |                               |         |  |                           |  |           |                           |  |  |                                            |  |  |  |           |  |  |  |       | 
|--------------------------------- |  | ----------------------------------- | --------- |  | -------- |  | ------- | ------- |  |  | ---------- |  |  | ----------------------------- | ------- |  | ------------------------- |  | --------- | ------------------------- |  |  | ------------------------------------------ |  |  |  | --------- |  |  |  | ----- | 
|                                  |  | Outstanding at thebeginning of 2015 |           |  | Granted1 |  |         | Vested2 |  |  | Forfeited3 |  |  | Outstanding at theend of 2015 |         |  | Minimum
number of shares4 |  |           | Maximum
number of shares5 |  |  | Fair value per
share at the grant date () | 
|Lodewijk Hijmans van den Bergh6   |  |                                     |           |  |          |  |         |         |  |  |            |  |  |                               |         |  |                           |  |           |                           |  |  |                                            |  |  |  |           |  |  |  |       | 
|Five-year 2010 grant              |  |                                     | 30,472    |  |          |  |        |         |  |  | 27,425     |  |  |                               | 3,047   |  |                           |  |          |                           |  |  |                                           |  |  |  |          |  |  |  | 7.29  | 
|Five-year 2011 grant              |  |                                     | 34,902    |  |          |  | 3,278   |         |  |  | 36,058     |  |  |                               | 2,122   |  |                           |  |          |                           |  |  |                                           |  |  |  |          |  |  |  | 6.00  | 
|Three-year 2012 grant             |  |                                     | 40,108    |  |          |  |        |         |  |  | 40,108     |  |  |                               |        |  |                           |  |          |                           |  |  |                                           |  |  |  |          |  |  |  | 9.23  | 
|Five-year 2012 grant              |  |                                     | 40,108    |  |          |  | 8,904   |         |  |  | 38,584     |  |  |                               | 10,428  |  |                           |  |          |                           |  |  |                                           |  |  |  |          |  |  |  | 7.81  | 
|2013 TSR grant                    |  |                                     | 25,817    |  |          |  |        |         |  |  | 23,207     |  |  |                               | 2,610   |  |                           |  |          |                           |  |  |                                           |  |  |  |          |  |  |  | 7.76  | 
|2013 RoC grant                    |  |                                     | 25,817    |  |          |  |        |         |  |  | 8,702      |  |  |                               | 17,115  |  |                           |  |          |                           |  |  |                                           |  |  |  |          |  |  |  | 10.52 | 
|2013 Conditional grant            |  |                                     | 14,200    |  |          |  |        |         |  |  | 12,764     |  |  |                               | 1,436   |  |                           |  |          |                           |  |  |                                           |  |  |  |          |  |  |  | 10.52 | 
|2014 TSR grant                    |  |                                     | 20,354    |  |          |  | 2,887   |         |  |  | 14,435     |  |  |                               | 8,806   |  |                           |  |          |                           |  |  |                                           |  |  |  |          |  |  |  | 11.20 | 
|2014 RoC grant                    |  |                                     | 20,354    |  |          |  |        |         |  |  | 7,656      |  |  |                               | 12,698  |  |                           |  |          |                           |  |  |                                           |  |  |  |          |  |  |  | 12.40 | 
|2014 Conditional grant            |  |                                     | 18,115    |  |          |  |        |         |  |  | 10,278     |  |  |                               | 7,837   |  |                           |  |          |                           |  |  |                                           |  |  |  |          |  |  |  | 12.40 | 
|2015 TSR grant                    |  |                                     |          |  |          |  | 18,429  |         |  |  | 5,131      |  |  |                               | 13,298  |  |                           |  |          |                           |  |  |                                           |  |  |  |          |  |  |  | 14.66 | 
|2015 RoC grant                    |  |                                     |          |  |          |  | 17,403  |         |  |  | 3,275      |  |  |                               | 14,128  |  |                           |  |          |                           |  |  |                                           |  |  |  |          |  |  |  | 18.14 | 
|2015 Conditional grant            |  |                                     |          |  |          |  | 7,832   |         |  |  | 1,847      |  |  |                               | 5,985   |  |                           |  |          |                           |  |  |                                           |  |  |  |          |  |  |  | 18.14 | 
|James McCann                      |  |                                     |           |  |          |  |         |         |  |  |            |  |  |                               |         |  |                           |  |           |                           |  |  |                                            |  |  |  |           |  |  |  |       | 
|Five-year 2011 grant              |  |                                     | 50,388    |  |          |  |        |         |  |  |           |  |  |                               |        |  |                           |  | 50,388    |                           |  |  |                                           |  |  |  | 75,582    |  |  |  | 5.80  | 
|Three-year 2012 grant             |  |                                     | 45,405    |  |          |  |        |         |  |  | 45,405     |  |  |                               |        |  |                           |  |          |                           |  |  |                                           |  |  |  |          |  |  |  | 9.23  | 
|Five-year 2012 grant              |  |                                     | 45,405    |  |          |  |        |         |  |  |           |  |  |                               |        |  |                           |  | 45,405    |                           |  |  |                                           |  |  |  | 68,107    |  |  |  | 7.81  | 
|2013 TSR grant                    |  |                                     | 42,147    |  |          |  |        |         |  |  |           |  |  |                               |        |  |                           |  | 42,147    |                           |  |  |                                           |  |  |  | 73,757    |  |  |  | 7.76  | 
|2013 RoC grant                    |  |                                     | 42,147    |  |          |  |        |         |  |  |           |  |  |                               |        |  |                           |  | 42,147    |                           |  |  |                                           |  |  |  | 63,220    |  |  |  | 10.52 | 
|2013 Conditional grant            |  |                                     | 17,171    |  |          |  |        |         |  |  |           |  |  |                               |        |  |                           |  | 17,171    |                           |  |  | 17,171                                     |  |  |  | 17,171    |  |  |  | 10.52 | 
|2014 TSR grant                    |  |                                     | 33,229    |  |          |  |        |         |  |  |           |  |  |                               |        |  |                           |  | 33,229    |                           |  |  |                                           |  |  |  | 58,150    |  |  |  | 11.20 | 
|2014 RoC grant                    |  |                                     | 33,229    |  |          |  |        |         |  |  |           |  |  |                               |        |  |                           |  | 33,229    |                           |  |  |                                           |  |  |  | 49,843    |  |  |  | 12.40 | 
|2014 Conditional grant            |  |                                     | 21,907    |  |          |  |        |         |  |  |           |  |  |                               |        |  |                           |  | 21,907    |                           |  |  | 21,907                                     |  |  |  | 21,907    |  |  |  | 12.40 | 
|2015 TSR grant                    |  |                                     |          |  |          |  | 28,766  |         |  |  |           |  |  |                               |        |  |                           |  | 28,766    |                           |  |  |                                           |  |  |  | 50,340    |  |  |  | 14.66 | 
|2015 RoC grant                    |  |                                     |          |  |          |  | 28,766  |         |  |  |           |  |  |                               |        |  |                           |  | 28,766    |                           |  |  |                                           |  |  |  | 43,149    |  |  |  | 18.14 | 
|2015 Conditional grant            |  |                                     |          |  |          |  | 9,589   |         |  |  |           |  |  |                               |        |  |                           |  | 9,589     |                           |  |  | 9,589                                      |  |  |  | 9,589     |  |  |  | 18.14 | 
|Subtotal Management Board members |  |                                     | 1,419,368 |  |          |  | 301,116 |         |  |  | 423,610    |  |  |                               | 102,877 |  |                           |  | 1,193,997 |                           |  |  | 169,410                                    |  |  |  | 1,793,035 |  |  |  |       | 

1 Represents the number of shares originally granted for the 2015 grant. For the five-year 2011 grant and 2014 TSR grant, the number of
shares allocated in 2015 for Lodewijk Hijmans van den Bergh represents the additional number of shares allocated based on the TSR rankings of the related grants.

2
The vesting date of the five-year 2010 grant and the three-year 2012 grant was on April 16, 2015. The Euronext closing share price was 19.37 on April 16, 2015.

3 For the five-year 2010 grant, the number of shares forfeited in 2015 represents the forfeited number of shares based on the final TSR ranking.



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32 Share-based compensation (continued)



4 For the conditional shares under the 2013-2015 GRO program, the minimum number of shares that
could potentially vest equals the number of outstanding shares. For the five-year grants, the minimum number of shares that could potentially vest would be nil if Aholds ranking was eight or lower. For the 2013-2015 TSR grants, the minimum
number of shares that could potentially vest would be nil if Aholds ranking was seventh or lower. For the 2013-2015 RoC grants, the minimum number of shares that could potentially vest equals nil (as explained in the section Main
characteristics above).

5 For the conditional shares under the 2013-2015 GRO program, the maximum number of shares that could potentially vest equals the number of
outstanding shares. For the five-year grants, the maximum number of shares that could potentially vest equals 150% of outstanding shares if Aholds ranking is one. For the 2013-2015 TSR grants, the maximum number of shares that could
potentially vest equals 175% of outstanding shares if Aholds ranking is one. For the 2013-2015 RoC grants, the maximum number of shares that could potentially vest equals 150% of outstanding shares (as explained in the section Main
characteristics above).

6 In accordance with the GRO plan rules and his separation agreement (also refer to Note 31) a pro rata part of the outstanding shares
for Lodewijk Hijmans van den Bergh vested on the date of termination of employment (December 31, 2015). The granted number of shares represents the additional number of shares allocated based on the TSR ranking. For the 2015 grant the number of
shares allocated represents the number of shares originally granted for the 2015 grant.



|                                  |  |                                     |            |  |            |  |           |         |  |  |           |  |  |                               |           |  |  |  |            | 
|--------------------------------- |  | ----------------------------------- | ---------- |  | ---------- |  | --------- | ------- |  |  | --------- |  |  | ----------------------------- | --------- |  |  |  | ---------- | 
|                                  |  | Outstanding at thebeginning of 2015 |            |  | Granted1,3 |  |           | Vested2 |  |  | Forfeited |  |  | Outstanding at theend of 2015 |          
|Other employees                   |  |                                     |            |  |            |  |           |         |  |  |           |  |  |                               |           |  |  |  |            | 
|2010 grant                        |  |                                     | 1,134,601  |  |            |  | 103,845   |         |  |  | 1,228,454 |  |  |                               | 9,992     |  |  |  |           | 
|2011 grant                        |  |                                     | 2,164,108  |  |            |  | 14,930    |         |  |  | 145,747   |  |  |                               | 97,989    |  |  |  | 1,935,302  | 
|2012 grant                        |  |                                     | 4,920,518  |  |            |  | 22,240    |         |  |  | 2,659,211 |  |  |                               | 168,934   |  |  |  | 2,114,613  | 
|2013 grant4                       |  |                                     | 3,973,069  |  |            |  | 31,244    |         |  |  | 205,183   |  |  |                               | 271,561   |  |  |  | 3,527,569  | 
|2014 grant5                       |  |                                     | 3,352,984  |  |            |  | 146,288   |         |  |  | 97,774    |  |  |                               | 289,247   |  |  |  | 3,112,251  | 
|2015 grant6                       |  |                                     |           |  |            |  | 3,224,687 |         |  |  | 36,457    |  |  |                               | 217,588   |  |  |  | 2,970,642  | 
|Subtotal Management Board members |  |                                     | 1,419,368  |  |            |  | 301,116   |         |  |  | 423,610   |  |  |                               | 102,877   |  |  |  | 1,193,997  | 
|Total number of shares            |  |                                     | 16,964,648 |  |            |  | 3,844,350 |         |  |  | 4,796,436 |  |  |                               | 1,158,188 |  |  |  | 14,854,374 | 

1 For the five-year 2010 grant, the number of shares allocated in 2015 represents the additional number of shares allocated based on the
final TSR ranking and the actual number of matching shares related to the 2010 grant. For the 2011-2014 grants the numbers represent the additional number of shares allocated for partial vestings as a result of the TSR ranking. For the 2013 and 2014
grants, the number also includes additional shares granted in 2015. For the 2015 grant, the number of shares allocated represents the number of shares originally granted for the 2015 grant.

2 The vesting date of the five-year 2010 grant, the matching shares related to the 2010 grant and the three-year 2012 grant was February 27, 2015. The Euronext
closing share price was 16.77 on February 27, 2015.

3 The grant date fair value of the matching shares is
expensed over the five-year vesting period. This table presents the matching shares as awarded in the year of vesting. The total number of matching shares granted up to and outstanding at the end of the 2015 is 219,328 (2014: 169,496).

4 The 2013 grant includes the special purpose plan as described above. Under this program, 123,000 shares were granted in 2013, of which 41,000 vested in 2013, 41,000 in
2014 and 41,000 in 2015.

5 The 2014 grant includes the special purpose plan as described above. Under this program, 21,000 shares were granted in 2014, of which
7,000 vested in 2014, 7,000 vested in 2015 and 3,000 canceled in 2015. At the end of 2015, 4,000 shares under this program were outstanding and will vest in 2016.

6
The 2015 grant includes the special purpose plan as described above. Under this program, 61,200 shares were granted in 2015, of which 20,400 vested in the same year. At the end of 2015, 40,800 shares under this program were outstanding, of which
20,400 will vest in 2016 and 20,400 in 2017.



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32 Share-based compensation (continued)



Valuation model and input variables

The weighted average fair value of the shares granted in 2015, for all eligible participants including Management Board members, amounted to 18.15, 15.71 and 18.17 per share for the conditional shares, TSR performance shares
and RoC performance shares, respectively (2014: 12.41, 11.80 and 12.41,
respectively) (2013: 10.66, 8.72 and 10.64, respectively). The fair values of the
conditional shares and the RoC performance shares are based on the Black-Scholes model. The fair values of the TSR performance shares are determined using a Monte Carlo simulation model, which considers the likelihood of Aholds TSR ending at
various ranks as well as the expected share price at each rank. The most important assumptions used in the valuations of the fair values were as follows:



|                                  |  |      |       |    |      |  |       |      |  |  |       |  
|--------------------------------- |  | ---- | ----- | -- | ---- |  | ----- | ---- |  |  | ----- | -
|                                  |  | 2015 |       |    | 2014 |  |       | 2013 | 
|Opening share price at grant date |  |      | 19.65 |    |      |  | 13.96 |      |  |  | 11.95 |  
|Risk-free interest rate           |  |      | (0.2  | )% |      |  | 0.4   | %    |  |  | 0.3   | %
|Volatility                        |  |      | 18.5  | %  |      |  | 19.3  | %    |  |  | 17.6  | %
|Assumed dividend yield            |  |      | 2.7   | %  |      |  | 3.9   | %    |  |  | 4.2   | %

Expected volatility has been determined based on historical volatilities for a period of three years.

33 Operating leases

Ahold as lessee

Ahold leases a significant number of its stores, as well as distribution centers, offices and other assets, under
operating lease arrangements. The aggregate amounts of Aholds minimum lease commitments payable to third parties under non-cancelable operating lease contracts are as follows:



|                           |  |                |       |  |                  |  |       |                  |  |  |       | 
|-------------------------- |  | -------------- | ----- |  | ---------------- |  | ----- | ---------------- |  |  | ----- | 
| million                  |  | January 3,2016 |       |  | December 28,2014 |  |       | December 29,2013 | 
|Within one year            |  |                | 842   |  |                  |  | 768   |                  |  |  | 687   | 
|Between one and five years |  |                | 2,704 |  |                  |  | 2,457 |                  |  |  | 2,155 | 
|After five years           |  |                | 2,594 |  |                  |  | 2,564 |                  |  |  | 2,409 | 
|Total                      |  |                | 6,140 |  |                  |  | 5,789 |                  |  |  | 5,251 | 

Certain store leases provide for contingent additional rentals based on a percentage of sales and consumer price indices. Substantially
all of the store leases have renewal options for additional terms. None of Aholds leases impose restrictions on Aholds ability to pay dividends, incur additional debt or enter into additional leasing arrangements. The annual costs of
Aholds operating leases from continuing operations, net of sublease income, are as follows:



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33 Operating leases (continued)





|                   |  |      |      |   |      |  |      |      |  |  |      |  
|------------------ |  | ---- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | -
| million          |  | 2015 |      |   | 2014 |  |      | 2013 | 
|Minimum rentals    |  |      | 823  |   |      |  | 690  |      |  |  | 705  |  
|Contingent rentals |  |      | 17   |   |      |  | 20   |      |  |  | 21   |  
|Sublease income    |  |      | (128 | ) |      |  | (113 | )    |  |  | (111 | )
|Total              |  |      | 712  |   |      |  | 597  |      |  |  | 615  |  

During the fourth quarter of 2013, Ahold closed six stores and three gas stations in the New Hampshire area. In the annual costs relating
to minimum rentals for 2013, costs are included for the provision to cover the lease exposure for the closed locations.

In addition to the operating lease
commitments disclosed above, Ahold has signed lease agreements for properties under development of which it has not yet taken possession. The total future minimum lease payments for these agreements amount to approximately 109 million (2014: 195 million and 2013: 184 million). These lease contracts are
subject to conditions precedent to the rent commencement date.

Ahold as lessor

Ahold rents out its investment properties (mainly retail units in shopping centers containing an Ahold store) and also (partially) subleases various other properties that
are leased by Ahold under operating leases. The aggregate amounts of the related future minimum lease and sublease payments receivable under non-cancelable lease contracts are as follows:



|                           |  |                |       |  |                  |  |       |                  |  |  |       | 
|-------------------------- |  | -------------- | ----- |  | ---------------- |  | ----- | ---------------- |  |  | ----- | 
| million                  |  | January 3,2016 |       |  | December 28,2014 |  |       | December 29,2013 | 
|Within one year            |  |                | 213   |  |                  |  | 197   |                  |  |  | 180   | 
|Between one and five years |  |                | 554   |  |                  |  | 514   |                  |  |  | 474   | 
|After five years           |  |                | 322   |  |                  |  | 323   |                  |  |  | 353   | 
|Total                      |  |                | 1,089 |  |                  |  | 1,034 |                  |  |  | 1,007 | 

The total contingent rental income recognized during the year on all leases where Ahold is the lessor was 2 million (2014: 2 million and 2013: 2 million).

34 Commitments and contingencies

Capital investment commitments

As of
January 3, 2016, Ahold had outstanding capital investment commitments for property, plant and equipment and investment property, and for intangible assets of approximately 228 million
and 9 million, respectively (December 28, 2014: 119 million and
8 million, respectively). Aholds share in the capital investment commitments of its unconsolidated joint venture JMR amounted to
5 million as of January 3, 2016 (December 28, 2014: 6 million).



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34 Commitments and contingencies (continued)



Purchase commitments

Ahold enters into purchase commitments with vendors in the ordinary course of business. Ahold has purchase contracts with some vendors for varying terms that require
Ahold to buy services and predetermined volumes of goods and goods not-for-resale at fixed prices. As of January 3, 2016, the Companys purchase commitments were approximately
821 million (December 28, 2014: 859 million). Not included in the purchase commitments are those purchase contracts for which Ahold
has received advance vendor allowances, such as up-front signing payments in consideration of its purchase commitments. These contracts generally may be terminated without satisfying the purchase commitments upon the repayment of the unearned
portions of the advance vendor allowances. The unearned portion of these advance vendor allowances is recorded as a liability on the balance sheet.



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34 Commitments and contingencies (continued)



Contingent liabilities

Guarantees

Guarantees to third parties issued by Ahold
can be summarized as follows:



|                                             |  |                |     |  |                  |  |     | 
|-------------------------------------------- |  | -------------- | --- |  | ---------------- |  | --- | 
| million                                    |  | January 3,2016 |     |  | December 28,2014 | 
|Lease guarantees                             |  |                | 495 |  |                  |  | 499 | 
|Lease guarantees backed by letters of credit |  |                | 68  |  |                  |  | 68  | 
|Corporate and buyback guarantees             |  |                | 36  |  |                  |  | 34  | 
|Total                                        |  |                | 599 |  |                  |  | 601 | 

The amounts included in the table above are the maximum undiscounted amounts the Group could be forced to settle under the arrangement for
the full guaranteed amount, if that amount is claimed by the counterparty to the guarantee. As part of the divestment of U.S. Foodservice in 2007, Ahold received an irrevocable standby letter of credit for $216 million (163 million), which was reduced to $73 million (68 million) as of January 3, 2016 (2014: $83 million (68 million)).

Ahold is contingently liable for leases that have been assigned to third parties in connection with
facility closings and asset disposals. Ahold could be required to assume the financial obligations under these leases if any of the assignees are unable to fulfill their lease obligations. The lease guarantees are based on the nominal value of
future minimum lease payments of the assigned leases, which extend through 2040. The amounts of the lease guarantees exclude the cost of common area maintenance and real estate taxes; such amounts may vary in time, per region, and per property. Of
the 495 million in the undiscounted lease guarantees, 223 million relates to the BI-LO / Brunos divestment and 169 million to the Tops divestment. On a discounted basis the lease guarantees amount to 437 million and 434 million as of January 3, 2016, and December 28, 2014, respectively.

On February 5, 2009, and
March 23, 2009, Brunos Supermarkets, LLC and BI-LO, LLC, respectively, filed for protection under Chapter 11 of the U.S. Bankruptcy Code (the filings). As a result of the filings, Ahold has made an assessment of its potential obligations
under the lease guarantees based upon the remaining initial term of each lease, an assessment of the possibility that Ahold would have to pay under a guarantee and any potential remedies that Ahold may have to limit future lease payments.
Consequently, in 2009, Ahold recognized provisions of 109 million and related tax benefit offsets of 47 million within results on
divestments.

On May 12, 2010, the reorganized BI-LO exited bankruptcy protection and BI-LO assumed 149 operating locations that are guaranteed by Ahold. During
the BI-LO bankruptcy, BI-LO rejected a total of 16 leases which are guaranteed by Ahold and Ahold also took assignment of 12 other BI-LO leases with Ahold guarantees. Based on the foregoing developments, Ahold recognized a reduction of 23 million in its provision, after tax, within results on divestments in the first half of 2010. Since the end of the second quarter of 2010, Ahold has entered into settlements with a number
of landlords relating to leases of former BI-LO or Brunos stores that are guaranteed by Ahold.

At the end of 2015, the remaining provision relating to BI-LO
and Brunos was 19 million (2014: 24 million) with a related tax benefit offset of
8 million (2014: 10 million). This amount represents Aholds best estimate of the discounted aggregate amount of the remaining
lease obligations and associated charges, net of known mitigation offsets, which could result in cash outflows for Ahold under the various lease guarantees. Ahold continues to monitor any developments and pursue its mitigation efforts with respect
to these lease guarantee liabilities.



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34 Commitments and contingencies (continued)



Ahold has provided corporate guarantees to certain suppliers of Aholds franchisees or
non-consolidated entities. Ahold would be required to perform under the guarantee if the franchisee or non-consolidated entity failed to meet its financial obligations, as described in the guarantee. Buyback guarantees relate to Aholds
commitment to repurchase stores or inventory from certain franchisees at predetermined prices. The buyback guarantees reflect the maximum committed repurchase value under the guarantees. The last of the corporate and buyback guarantees expire in
2023.

Representations and warranties as part of the sale of Aholds operations

Ahold has provided, in the relevant sales agreements, certain customary representations and warranties including, but not limited to, completeness of books and records,
title to assets, schedule of material contracts and arrangements, litigation, permits, labor matters, and employee benefits and taxes. These representations and warranties will generally terminate, depending on their specific features, a number of
years after the date of the relevant transaction completion date.



|                                |  |              |                       |  |                          |   |         |  |  |  |    | 
|------------------------------- |  | ------------ | --------------------- |  | ------------------------ | - | ------- |  |  |  | -- | 
|                                |  | Closing date |                       |  | Contingent liability cap |  
|                                |  |              | Local currencymillion |  |                          |  | million | 
|Disco1                          |  |              | November 1, 2004      |  |                          |   | 15     |  |  |  | 15 | 
|BI-LO / Brunos                 |  |              | January 31, 2005      |  |                          |   | $33     |  |  |  | 30 | 
|Tops Markets                    |  |              | December 3, 2007      |  |                          |   | $70     |  |  |  | 64 | 
|Tops Wilson Farms / Sugarcreek |  |              | December 3, 2007      |  |                          |   | $5      |  |  |  | 5  | 

1 Ahold assesses the likelihood to be liable up to the amount of the contingent liability cap to be remote. The cap does not include
Aholds indemnification obligation relating to the litigation described below.

The most significant sales of operations are described below. In addition,
specific, limited representations and warranties exist for certain of Aholds smaller divestments in 2004, 2005, 2007, 2012, 2013 and 2014. The aggregate impact of a claim under such representations and warranties is not expected to be
material.

Bradlees

In 1992, Stop &
Shop spun off Bradlees Stores, Inc. (Bradlees) as a public company (the Bradlees Spin-off). In connection with the Bradlees Spin-off, Stop & Shop assigned to Bradlees certain commercial real property leases. Pursuant to a 1995
reorganization of Bradlees and a subsequent wind-down and liquidation of Bradlees following a bankruptcy protection filing in 2000 (collectively, the Bradlees Bankruptcies), a number of such real property leases were assumed and assigned to third
parties. Pursuant to applicable law, Stop & Shop may be contingently liable to landlords under certain of the leases assigned in connection with the Bradlees Spin-off and subsequently assumed and assigned to third parties in connection with
the Bradlees Bankruptcies.

Disco

Ahold is
required to indemnify the buyers of Disco S.A. (Disco) and Disco for certain claims made by alleged creditors of certain Uruguayan and other banks. For additional information, see the Uruguayan litigation described in the Legal proceedings
section of this Note. Aholds indemnification obligation relating to this litigation is not capped at a certain amount nor restricted to a certain time period.



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34 Commitments and contingencies (continued)



BI-LO / Brunos

In connection with the sale of BI-LO and Brunos, Ahold may be contingently liable to landlords under guarantees of some 200 BI-LO or Brunos operating or
finance leases that existed at the time of the sale in the event of a future default by the tenant under such leases. As a result of the bankruptcy filings by BI-LO and Brunos during 2009, a provision was recognized in 2009. BI-LO exited
bankruptcy in May 2010 and the Company has re-evaluated its estimate of liability. For more information, refer to the Guarantees section of this Note.

Tops Markets, LLC

In connection with the sale of Tops in 2007, Ahold has certain post-closing indemnification obligations under the
sale agreement that the Company believes are customary for transactions of this nature. Ahold retained certain liabilities in the sale, including contingent liability for 45 leases that carry Ahold guarantees. Additionally, Ahold retained
liabilities related to stores previously sold, including guarantees on five Tops stores in eastern New York state, as well as liabilities related to the Tops convenience stores and the stores in northeast Ohio as outlined under Tops convenience
stores.

Tops convenience stores

Pursuant to
applicable law, Tops may be contingently liable to landlords under 186 leases assigned in connection with the sale of the Tops Wilson Farms and Sugarcreek convenience stores in the event of a future default by the tenant under such leases.
Ahold may be contingently liable to landlords under the guarantees of 77 of these leases in the same event.

Tops northeast Ohio stores

Tops closed all of its locations in northeast Ohio prior to year-end 2006. As of January 1, 2016, 33 of the total 55 closed locations in northeast Ohio
have been sold or are now subleased or partially subleased. An additional 19 leases have been terminated. Three stores continue to be marketed. In connection with the store sales, Tops and Ahold have certain post-closing indemnification obligations
under the sale agreements, which Ahold believes are customary for transactions of this nature. Pursuant to applicable law, Ahold may be contingently liable to landlords under guarantees of 14 of such leases in the event of a future default by the
tenant under such leases. If Ahold is able to assign the leases for the remaining northeast Ohio stores, then pursuant to applicable law, Ahold also may be contingently liable to landlords under guarantees of certain of such remaining leases in the
event of a future default by the tenant under such leases.

Income tax



Because Ahold operates in a number of countries, its income is subject to taxation in differing
jurisdictions and at differing tax rates. Significant judgment is required in determining the consolidated income tax position. We seek to organize our affairs in a sustainable manner, taking into account the applicable regulations of the
jurisdictions in which we operate. As a result of Aholds multi-jurisdictional operations, it is exposed to a number of different tax risks including, but not limited to, changes in tax laws or interpretations of such tax laws. The authorities
in the jurisdictions where Ahold operates may review the Companys tax returns and may disagree with the positions taken in those returns. While the ultimate outcome of such reviews is not certain, Ahold has considered the merits of
its filing positions in its overall evaluation of potential tax liabilities and believes it has adequate liabilities recorded in its consolidated financial statements for exposures on these matters. Based on its evaluation of the potential tax
liabilities and the merits of Aholds filing positions, it is unlikely that potential tax exposures over and above the amounts currently recorded as liabilities in its consolidated financial statements will be material to its financial
condition or future results of operations.



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34 Commitments and contingencies (continued)



Legal proceedings

Ahold and certain of its former or current subsidiaries are involved in a number of legal proceedings, which include litigation as a result of divestments, tax,
employment, and other litigation and inquiries. The legal proceedings discussed below, whether pending, threatened or unasserted, if decided adversely or settled, may result in liability material to Aholds financial condition, results of
operations or cash flows. Ahold may enter into discussions regarding settlement of these and other proceedings, and may enter into settlement agreements, if it believes settlement is in the best interests of Aholds shareholders. In accordance
with IAS 37 Provisions, Contingent Liabilities, and Contingent Assets, Ahold has recognized provisions with respect to these proceedings, where appropriate, which are reflected on its balance sheet.

Albert Heijn Franchising

The Vereniging Albert Heijn
Franchisenemers (an association of Albert Heijn franchisees or VAHFR) has asserted claims against an Ahold subsidiary, Albert Heijn Franchising BV (AHF), for the years 2008 through 2012, the alleged value of which in aggregate exceeds 200 million. AHF and the VAHFR have for a number of years had ongoing discussions about the resolution of certain cost items under individual franchise agreements. On December 24, 2014, AHF and
other legal entities within the Ahold Group of companies received a writ in which VAHFR and 239 individual claimants would initiate proceedings as of April 15, 2015, before the District Court of Haarlem with respect to these discussions. While
repeating the previous quantification of the total value of their claims for the period 2008-2012, and that unspecified amounts for the years 2013 and 2014 should be added, VAHFR and the individual claimants did not specify or seek
payment for any specific amount by the defendants in the litigation. In May 2015, the Ahold subsidiaries filed their statement of defense. In October 2015, the claimants filed a statement of reply, and in January 2016 Ahold subsidiaries filed a
statement of rejoinder.

AHF believes that the position of the VAHFR and individual claimants as expressed in the writ of summons lacks substance and is without
merit. AHF and its affiliates will vigorously defend their interests in the legal proceedings. The claims period covers the years 2008 and 2009, even though these years have already been settled. While it cannot be ruled out that individual
franchisees have claims for the years 2010-2015, such claims have not been specifically and individually asserted let alone confirmed as valid based on an analysis on merit and amounts involved. Notwithstanding the foregoing, the years from 2010
onwards are still to be settled. Ahold has an existing provision of 25.1 million with regard to the settlement of costs with individual franchisees for the entire period up to and
including 2015.

VEB (Vereniging voor Effectenbezitters) (Dutch association of retail shareholders)

In a series of letters to Ahold, the first of which was dated May 20, 2015, the VEB (Vereniging voor Effectenbezitters), a Dutch association of retail shareholders,
has accused Ahold of being one day late in disclosing its discussions with Delhaize regarding a potential business combination and has reserved the right to sue Ahold for damages. In its replies, the latest of which dated July 31, 2015, Ahold
has stated that it has acted in accordance with all applicable disclosure obligations, and will defend itself against any allegations to the contrary.

Uruguayan litigation

Ahold, together with Disco and Disco Ahold International Holdings N.V. (DAIH), is a party to legal proceedings in one
lawsuit in Uruguay related to Aholds 2002 acquisition of Velox Retail Holdings shares in the capital of DAIH. The two other related lawsuits in Uruguay have been finally decided in favor of Ahold in 2013. The damages alleged by the
plaintiffs, alleged creditors of certain Uruguayan and other banks, amount to approximately $62 million (57 million) plus interest and costs. As part of the sale of Disco to Cencosud in 2004,
Ahold indemnified Cencosud and Disco against the outcome of these legal proceedings. The proceedings in the one remaining lawsuit are ongoing. Ahold continues to believe that the plaintiffs claims are without merit and will continue to
vigorously oppose such claims.

Other legal proceedings

In addition to the legal proceedings described previously in this Note, Ahold and its former or current subsidiaries are parties to a number of other legal proceedings
arising out of their business operations. Ahold believes that the ultimate resolution of these other proceedings will not, in the aggregate, have a material adverse effect on Aholds financial position, results of operations or cash flows.
Such other legal proceedings, however, are subject to inherent uncertainties and the outcome of individual matters is unpredictable. It is possible that Ahold could be required to make expenditures, in excess of established provisions, in
amounts that cannot reasonably be estimated.



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35 Merger with Delhaize

On June 24, 2015, Ahold and Delhaize announced their intention to combine their businesses through a merger of equals. Pursuant to the merger proposal, Delhaize
shareholders are to receive 4.75 Ahold ordinary shares for each issued and outstanding Delhaize ordinary share. The transaction is expected to be completed in mid-2016, following regulatory clearances, associate consultation procedures and
shareholder approval.

In connection with the proposed merger with Delhaize, it is proposed to return in aggregate approximately 1.0 billion to the holders of ordinary shares by executing a capital repayment and reverse stock split prior to completion of the proposed merger. The capital repayment and reverse stock split are
subject to (i) approval by the Extraordinary General Meeting of Shareholders of Ahold on March 14, 2016, and the holder of the Ahold cumulative preferred financing shares, (ii) the customary filings with the Trade Register and the
two-month creditor objection period as described in Section 2:100 of the Dutch Civil Code in connection with this capital repayment, and (iii) after the end of the two-month creditor objection period, the proposed merger with Delhaize
being likely to be effected.

Based on the estimated number of shares in the capital of Ahold and the capital of Delhaize that will be outstanding immediately prior
to the consummation of the merger, Ahold estimates that, upon the consummation of the merger and the capital return of approximately 1.0 billion to Ahold shareholders through a capital return
and a reverse stock split, current Ahold shareholders and holders of Aholds American Depository Shares will, directly or indirectly, hold approximately 61% and former Delhaize shareholders and holders of Delhaizes American Depository
Shares will, directly or indirectly, hold approximately 39% of the outstanding ordinary shares in the capital of the combined company.

On February 1, 2016,
Ahold announced that it has called an Extraordinary General Meeting of Shareholders (EGM) for March 14, 2016, at which its shareholders will consider and vote on, among other proposals, the proposal to approve the capital repayment and reverse
stock split and the intended merger.

36 Subsequent events

There have been no significant subsequent events.



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37 List of subsidiaries, joint ventures and associates

The following are Aholds significant subsidiaries, joint ventures and associates as of January 3, 2016:

Consolidated subsidiaries

Unless otherwise
indicated, these are, directly or indirectly, wholly or virtually wholly-owned subsidiaries. Subsidiaries not important to providing an insight into the Ahold group as required under Dutch law are omitted from this list. With respect to the separate
financial statements of the Dutch legal entities included in the consolidation, the Company availed itself of the exemption laid down in section 403, subsection 1 of Book 2 of the Dutch Civil Code. Pursuant to said section 403, Ahold has assumed
joint and several liabilities for the debts arising out of the legal acts of a number of subsidiaries in the Netherlands, which form part of the consolidation. The names of the subsidiaries for which Ahold has issued 403 declarations are open for
inspection at the trade register as managed by the Netherlands Chamber of Commerce.

Retail trade Europe

Albert Heijn B.V., Zaandam, the Netherlands

Albert Heijn Franchising B.V., Zaandam,
the Netherlands

Gall & Gall B.V., Zaandam, the Netherlands

Etos B.V.,
Zaandam, the Netherlands

bol.com B.V., Utrecht, the Netherlands

AHOLD Czech
Republic a.s., Prague, Czech Republic

Albert Heijn België N.V., Schoten, Belgium

Ahold Germany GmbH, Mettmann, Germany

Retail trade United
States

The Stop & Shop Supermarket Company LLC, Boston, Massachusetts

Giant Food Stores LLC, Carlisle, Pennsylvania

Giant of Maryland LLC, Landover,
Maryland

Peapod LLC, Skokie, Illinois



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37 List of subsidiaries, joint ventures and associates (continued)



Other

Ahold Coffee Company B.V., Zaandam, the Netherlands

Ahold Europe Real
Estate & Construction B.V., Zaandam, the Netherlands

Ahold Finance Company N.V., Zug, Switzerland

Ahold Financial Services LLC, Carlisle, Pennsylvania, United States

Ahold Finance
U.S.A. LLC, Zaandam, the Netherlands

Ahold Insurance N.V., Willemstad, Curaçao

Ahold International Sàrl, Zug, Switzerland

Ahold Information Services Inc.,
Greenville, South Carolina, United States

Ahold Lease U.S.A. Inc., Boston, Massachusetts, United States

Ahold Licensing Sàrl, Geneva, Switzerland

Ahold Nederland B.V., Zaandam, the
Netherlands

Ahold U.S.A. Inc., Boston, Massachusetts, United States

American
Sales Company LLC, Lancaster, New York, United States

CUW B.V., Willemstad, Curaçao

MAC Risk Management Inc., Boston, Massachusetts, United States

The MollyAnna Company,
Montpelier, Vermont, United States

Joint ventures and associates (unconsolidated)

JMR  Gestão de Empresas de Retalho, SGPS, S.A., Lisbon, Portugal (49% owned by Aholds subsidiary Ahold International Sàrl)

Jerónimo Martins Retail Services S.A., Klosters, Switzerland (49% owned by Aholds subsidiary Ahold International Sàrl)



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SIGNATURES

The
registrant hereby certifies that it meets all requirements for filing on Form 20-F and that the registrant has duly caused and authorized the undersigned to sign this annual report on its behalf.

Date: March 2, 2016



| |  |  |                                | 
| |  |  | ------------------------------ | 
| |  |  | KONINKLIJKE AHOLD N.V.         | 
| | 
| |  |  | /s/ Dick Boer                  | 
| |  |  | Name: Dick Boer                | 
| |  |  | Title: Chief Executive Officer | 
| | 
| |  |  | /s/ Jeff Carr                  | 
| |  |  | Name: Jeff Carr                | 
| |  |  | Title: Chief Financial Officer | 





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EXHIBIT INDEX

12.01 CEO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act

12.02
CFO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act

13.01 CEO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act

13.02 CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act