Comm 1 5 eng 2007 7/31/07 12:39 PM Page 1 Etn. Fr. Colruyt Limited liability company Registered office: Wilgenveld Edingensesteenweg 196 B-1500 HALLE RPR Brussels VAT: BE 400.378.485 Enterprise number: 0400.378.485 Tel.: 02 360 10 40 Fax: 02 360 02 07 Internet: www.colruyt.be E-mail: [email protected] REPORTING PERIOD 2006/2007 ANNUAL REPORT presented to the Ordinary General Meeting of 19 September 2007 by the BOARD OF DIRECTORS and REPORT of the INDEPENDENT AUDITOR Halle, 22 june 2007 Dit jaarverslag is ook beschikbaar in het Nederlands Ce rapport annuel est également disponible en français. WorldReginfo - bc0f4e7d-7a13-40fc-81b3-52913fa63aa3 Comm 1 5 eng 2007 7/31/07 12:39 PM Page 2 Table of contents page GENERAL INFORMATION ON THE COLRUYT GROUP I . Directors, auditors and management 4 II . Corporate sustainable governance 6 A. Charter 6 B. Events during the reporting period 6 III . The Colruyt Group - Introduction to the Colruyt Group 10 1. General 10 2. Activities in France 11 3. Annual summary 2006/2007 – financial information 12 4. Prospects 14 5. Staff and trade union information 16 • Capital increase 16 • Profit sharing 16 • Employment 17 • Payroll cost – net pay – contributions to the Exchequer (Belgium) 18 IV . Shareholders – Colruyt shares 19 - Shareholders’ diary 19 - Dividend for the 2006/2007 reporting period 19 - Summary of shares 20 - Purchase of treasury shares 21 - Shareholder structure 21 - Ethibel 23 - Financial information on www.colruyt.be 23 V . Shared values of the Colruyt Group 24 1. Economic 24 2. Ecological 24 3. Social 26 A. Quality 26 B. Social projects 27 Belgium 27 Abroad 27 C. Staff 29 VI . Retail 30 1. Real estate 30 2. Colruyt stores 30 • Key facts on 31/03/2007 30 • Market share, Colruyt stores in Belgium 30 • Expansion of Colruyt store chain 31 • Subsidiaries working solely for retail in Belgium 31 • Previsions 31 • Lowest prices for every product 33 • Lowest costs 33 • Communication 33 • Cooking with Colruyt 34 • Red hotline 34 • New coffee roasting, wine bottling and rice packaging facilities in Ghislenghien 34 3. OKay - Bio-Planet 36 4. DreamLand 38 5. ColliShop 39 6. France: stores under own management 40 VII . Wholesale and Food service 41 1. Wholesale in Belgium 41 2. Wholesale in France 42 • Delivery to independent retailers 42 2 WorldReginfo - bc0f4e7d-7a13-40fc-81b3-52913fa63aa3 Comm 1 5 eng 2007 7/31/07 12:39 PM Page 3 Table of contents Page • Foodservice 44 VIII . Other activities of the Colruyt Group 44 1. DATS 24 44 2. Druco 45 3. Engineering activities (Createch Engineering, Dolmen IP) 45 IX. Unallocated corporate activities (Finco, Infoco, Premedia) 47 FINANCIAL REPORT X. Consolidated financial statements and notes 49 - Consolidated income statement 50 - Consolidated balance sheet 51 - Consolidated cash flow statement 52 - Consolidated statement of changes in equity 53 - Consolidated statement of total recognised income and expense 54 - Independent auditor’s report 54 - Notes to the consolidated financial statements 57 1. Basis of preparation 58 2. Financial Reporting Principles 59 3. Segment reporting 66 4. Revenue and gross profit 68 5. Other operating income and expense 69 6. Services and miscellaneous goods 69 7. Employee benefit expenses 70 8. Net financing income 70 9. Income tax expense 71 10. Goodwill 72 11. Other intangible assets 73 12. Property, plant and equipment 74 13. Investments in associates 75 14. Investments 75 15. Acquisitions and disposals of subsidiaries 76 16. Deferred tax assets and liabilities 78 17. Inventories 78 18. Trade and other receivables 78 19. Cash and cash equivalents 78 20. Changes in equity 79 21. Earnings per share 81 22. Provisions 81 23. Non-current benefits 83 24. Financial liabilities 83 25. Trade payables, employee remuneration and other liabilities 84 26. Operational lease agreements 84 27. Most significant risks 85 28. Off balance sheet rights and commitments 86 29. Contingencies 87 30. Dividends paid and proposed 88 31. Related parties 88 32. Events after the balance sheet date 89 33. Independent auditor's remuneration 89 34. List of consolidated companies 90 XI. Abbreviated annual accounts of Etn. Fr. Colruyt NV 93 - Abbreviated balance sheet 94 - Abbreviated income statement 95 - Profit appropriation 95 3 WorldReginfo - bc0f4e7d-7a13-40fc-81b3-52913fa63aa3 Comm 1 5 eng 2007 7/31/07 12:39 PM Page 4 I. Directors, auditors and management BOARD OF DIRECTORS Composition Representatives of the main shareholders, executive directors: Jef COLRUYT Director, Chairman (2010) Frans COLRUYT Director (2009) Representatives of the main shareholders, non-executive directors: François GILLET(*) Director (2008) – Senior manager with S.A. Sofina N.V. ANIMA Director (2008), permanently represented by Jef Colruyt N.V. HERBECO(*) Director (2009), permanently represented by Piet Colruyt N.V. FARIK Director (2009), permanently represented by Frans Colruyt Independent director BVBA DELVAUX TRANSFER(*) Director (from 15/7/2006), permanently represented by Willy Delvaux (2007) (*) member of the audit committee Secretary Jean de LEU de CECIL Secretary Independent auditor CVBA KLYNVELD PEAT MARWICK GOERDELER – company auditors represented by Ludo RUYSEN (2007) and Jo VANDERBRUGGEN (2007). Appointments Reappointment of the independent director The term of office of as an independent director of BVBA Delvaux Transfer, represented by Willy Delvaux, is expiring. The Board of Directors proposes that it be reappointed as a director for a further 4 years ending after the 2011 Annual Meeting. Reappointment of the independent auditor The term of office of CVBA KLYNVELD PEAT MARWICK GOERDELER – Company Auditors, represented by Ludo Ruyssen (00949) and Jo Vanderbruggen (01207), is expiring. The Board of Directors proposes that the independent auditor be reappointed for a 3-year period until after the 2010 General Meeting. Honorary director Leo DESCHUYTENEER Honorary Director DIRECTIE 1. Colruyt Group Management Jef COLRUYT Chairman Luc ROGGE General Manager Colruyt, OKay and Bio-Planet Dries COLPAERT General Manager Pro à Pro Distribution (France) Johan GEEROMS General Manager of DreamLand Frans COLRUYT General Manager of SPAR Wim BIESEMANS Finance Manager Colruyt Group Tony VERLINDEN Personnel and Administration Manager Jean de LEU de CECIL Secretary 4 WorldReginfo - bc0f4e7d-7a13-40fc-81b3-52913fa63aa3 Comm 1 5 eng 2007 7/31/07 12:39 PM Page 5 I. Directors, auditors and management 2. Future Board Jef COLRUYT Chairman 2.1 Support Services Wim BIESEMANS Finance Manager Colruyt Group Tony VERLINDEN Personnel and Administration manager Philip CATTRYSSE Manager IT division (Infoco) Filip VAN LANDEGHEM Assistant Manager, Prospecting, Estates and DATS Erik VAN HUYCHEM Manager, Premedia and Druco 2.2 Colruyt, OKay and Bio-Planet Luc ROGGE General Manager Colruyt, OKay and Bio-Planet Dirk DEPOORTER Purchasing Manager Johan VANDENBOSSCHE Manager Logistics and Production divisions Koen BAETENS Manager, Buildings and Technical Team Colruyt (BTTC) Chris VAN WETTERE Commercial Manager OKay Jean-Pierre ROELANDS Commercial Manager Colruyt Marc VANDEVELDE Sales Manager Claude ROMAIN Sales Manager Erik PAPPAERT Sales Manager Christian BOURG Sales Manager Jan PRINSEN Sales Manager Fresh Products André VANDENBOSSCHE Sales Manager Meat and Vlevico Karel MATTHIJS Sales Manager Non-food 2.4 DreamLand Johan GEEROMS General Manager DreamLand Martine PAUWELS Assistant Manager DreamLand 2.5 SPAR Frans COLRUYT General Manager SPAR Jean-François STEVENS Sales Manager Geert HANSSENS Merchandising and Logistics Manager Giosino CORNACCHIA Marketing and Expansion Manager Louis CHABERT Purchasing Manager 2.7 Pro à Pro Distribution (Frankrijk) Dries COLPAERT General Manager Pro à Pro Distribution Laurent FRANSIOLI Finance and Administration Manager Pro à Pro Wim COLRUYT IT Manager Pro à Pro Jean-Claude LEROY Operations Manager ,Purchasing RHD (Restauration hors domicile) Claude COCHET Manager Commercial and Export RHD Pascal DUBOIS Manager “Grands comptes” RHD Gilles POINSOT Manager Company Operated stores GMS (Grandes et moyennes surfaces) Emmanuel MALLET Manager Affiliates GMS Pascal CONDEMINE Manager Fresh Products, Purchasing, Marketing, IT GMS 5 WorldReginfo - bc0f4e7d-7a13-40fc-81b3-52913fa63aa3 Comm 6 15 eng 2007 7/31/07 12:41 PM Page 6 II. Corporate Sustainable Governance A. Charter 1. General Meetings: 2. Board of Directors: the recommendations of the Belgian Corporate Governance Code for pub- The Annual General Meeting of • Composition: licly quoted companies is justified, Shareholders takes place at the com- The composition of the Board of given the history of the Colruyt Group pany’s registered office at 16:00 on Directors is the result of the company’s and the desire of the reference share- the third Wednesday of September. share structure, where the family holders to entrust the leadership of If that date is a public holiday, the shareholders, supported by N.V. the Management Team to one of meeting will be held on the following Sofina, are reference shareholders. As them. working day. is apparent from past history, the fa- mily shareholders provide for the sta- • Functioning of the Board of bility and continuity of the company Directors: and thereby serve the interests of all The Board of Directors meets every shareholders. quarter to a set schedule. The meet- They opt to appoint as directors a li- ings are held in the second half of mited number of representatives with September, December, March and various backgrounds, broad experi- June. ence and a sound knowledge of the Where necessary intermediate meet- business. The directors form a small ings are held to discuss specific topics team with the requisite flexibility and or make decisions where time is of efficiency to adapt itself to the events the essence. and opportunities of the market at any The Board of Directors can only pass time. resolutions validly if at least half of its All General Meetings shall be called as The articles of association lay down no members are present or represented. provided by law. rules on the appointment of the direc- All resolutions of the Board of The Board of Directors and the statu- tors and the renewal of their man- Directors are passed by a simple tory auditor may call a General dates.