The unaudited pro forma information includes key historical data on the results of Ahold Delhaize and provides a comparative basis to facilitate assessment of the current performance of the combined company for illustrative purposes. The information, which may be subject to change, is presented in a format that is aligned with Ahold Delhaize’s future reporting structure and reporting segments.
The pro forma key historical data has been prepared assuming the merger became effective on the first day of Ahold’s 2015 financial year. Delhaize Group’s assets and liabilities have been accounted for at fair value, in accordance with IFRS 3, and calculated on the basis of values/data established on the date of merger completion, i.e. July 23, 2016. No adjustments were made for the difference in number of weeks per quarter. The reporting calendar will be aligned to 13 week quarters for all segments as of the first quarter of 2017.
The following main adjustments to the combined historical data were made to arrive at the pro forma information:
• Exclusion of the performance of remedy stores and other divestments
• Exclusion of merger transaction costs
• Inclusion of Purchase Price Allocation effects on Delhaize assets and liabilities, impacting depreciation and amortization, net interest expense and rent
• Alignment of Global Support Office functions and related costs
• Alignment of foreign exchange rates for consolidation of foreign group entities
Following provisional fair value adjustments were made to the Delhaize balance sheet:
• Property, Plant and Equipment increased by €0.8 billion
• Goodwill & non-amortizable intangibles increased by €5.2 billion, which includes €2.4 billion allocated to Ahold banners
• Other intangible assets increased by €0.9 billion
• Net debt increased by €0.7 billion to €2.7 billion