Food Lion 2004 Annual Report Download

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Annual Report 2004 - LOCAL STRENGTH, GROUP EXPERTISE
LOCAL STRENGTH
GROUP EXPERTISE
ANNUAL REPORT 2004

Table of contents

  • Page 1
    Annual Report 2004 - LOCAL STRENGTH, GROUP EXPERTISE A N N UA L REPORT 2004 LOCAL STRENGTH GROUP EXPERTISE

  • Page 2
    ... food retailer w ith activities in nine countries on three continents at the end of 2004. Delhaize Group is listed on Euronext Brussels (ticker symbol: DELB) and the New York Stock Exchange (ticker symbol: DEG). At the end of 2004, Delhaize Group's sales netw ork consisted of 2,565 stores. In 2004...

  • Page 3
    ... 211 2002 2003 2004 334 387 410 FINANCIAL HIGHLIGHTS RESULTS OF OPERATIONS Sales Adjusted EBITDA (1) Operating profit Earnings before goodw ill and exceptionals (1) Net earnings Free cash flow (1) (EUR in millions except per share amounts) Change vs Prior Year 2004 2003 2002 2004 2003 17...

  • Page 4
    ... als in Raleigh and Charlotte, North Carolina, Food Lion w ill accelerate the program and renew tw o m arkets in 2005: Greensboro, North Carolina, and Baltim ore, M aryland. In Florida, w e w ill continue the conversion of Kash n' Karry stores to Sw eetbay Superm arket. Hannaford w ill integrate...

  • Page 5
    ... of Honorary Chairman and Chief Executive Offi cer. The Board of Directors also expressed its gratitude to Bill Ferguson, w ho retired in M ay 2004 after eleven years of loyal service and contribution as Board member of Food Lion, Delhaize America and Delhaize Group. In M ay 2004, the shareholders...

  • Page 6
    ... in three categories: supermarkets, proximity stores and specialty stores. Delhaize Belgium also operates a home delivery service. In 2004, Delhaize Belgium's sales of EUR 3.9 billion accounted for 21.5% of Group sales. 127 com pany-operated and 191 affi liated superm arkets Large food assortm ent...

  • Page 7
    ... 55 stores in south Georgia and north Florida Focused on m eat and produce Strong local brand nam e and custom er loyalty 204 proxim ity stores Focused on convenient fresh food and m eal solutions Selective assortm ent Neighborhood locations 130 com pany-operated or franchised stores Specialist...

  • Page 8
    6 DELHAIZE GROUP  ANNUAL REPORT 2004 Concept Leadership Executional Excellence 8 10 OUR STRATEGY: LEVERS FOR SUS DELHAIZE GROUP IS COMMITTED TO OFFERING A LOCALLY DIFFERENTIATED SHOPPING EXPERIENCE TO ITS CUSTOMERS IN EACH OF ITS MARKETS, TO DELIVERING SUPERIOR VALUE AND TO MAINTAINING ...

  • Page 9
    DELHAIZE GROUP  ANNUAL REPORT 2004 7 A Learning Company An Attractive Workplace Corporate Citizenship 12 12 14 TAINABLE, PROFITABLE GROWTH

  • Page 10
    ...DELHAIZE GROUP  ANNUAL REPORT 2004 CONCEPT LEADERSHIP BUILDING A CUSTOMERDRIVEN, DIFFERENTIATED MARKET POSITION WITH A UNIQUE COMBINATION OF STRENGTHS IN ASSORTMENT AND SHOPPING EXPERIENCE. THIS DIFFERENTIATION IS DEVELOPED ALONG THREE KEY AXES: PRODUCT AND SERVICE OFFERING, PRICING AND STORE...

  • Page 11
    ..., North Carolina market, building on the experience from the successful market renew al in Raleigh, North Carolina market in 2003. The company also opened its fi rst fi ve Bloom stores, taking convenience to the next level. In Florida, Delhaize Group opened its fi rst Sw eetbay Supermarket stores...

  • Page 12
    ... PROFITABILITY BY REDUCING COSTS AND EXPENSES. Block sequencing: the distribution centers put products in blocks on the pallets in the same order as the products are put on the store shelves, resulting in a significant time gain in the stores. EXECUTION DRIVING SALES Customer satisfaction...

  • Page 13
    .... GROW ING PROFIT THROUGH EFFICIENCY In 2004, Food Lion and Kash n' Karry completed the rollout of PRISM , a margin and inventory management system customized from a similar system at Hannaford. Through item-level visibility on margin and inventory, the system allow s the companies to reduce shrink...

  • Page 14
    ...driver for excellent execution and associate motivation. Therefore, the companies of Delhaize Group offer their associates training on a w ide array of subjects: strategy, product know ledge, food safety, customer service, management, language and computer skills. Food Lion added several new courses...

  • Page 15
    ... REPORT 2004 13 COLLECTIVE LEARNING Delhaize Group w ants to leverage the experience and know ledge in its different operating companies by fostering collective learning and the exchange of best practices. Faced w ith the active hurricane season of 2004, Kash n' Karry benefi ted from Food Lion...

  • Page 16
    ...operating companies in 2004. Food Lion reduced its energy use by 122 million kilow att hours and w on several aw ards for its pioneering energy management, including the Energy Star Aw ard for Excellence for the third consecutive year. Efforts at Hannaford and Kash n' Karry resulted in annual energy...

  • Page 17
    DELHAIZE GROUP  ANNUAL REPORT 2004 15 CONCERN FOR PEOPLE Delhaize Group's concern for people goes beyond customers and associates. Its operating companies actively support the local communities in w hich they operate, contributing to programs for the reduction of hunger and poverty, and ...

  • Page 18
    16 DELHAIZE GROUP  ANNUAL REPORT 2004 Posted sales grow th of 3.9% in local currencies* Increased operating margin to a record Grew operating profit by 4.6% 15.2% in local currencies* BUSINESS AND FINANCIAL REVIEW OUR B USIN ESS IN 2004 * adjusted for 53rd sales w eek in the U.S. in 2003

  • Page 19
    DELHAIZE GROUP  ANNUAL REPORT 2004 17 Recorded net earnings of EUR million Realized free cash flow of EUR million Decreased net debt to equity ratio to 211.5 278.0 76.5%

  • Page 20
    18 DELHAIZE GROUP  ANNUAL REPORT 2004 2004 HIGHLIGHTS Completed second market renew al and launched Bloom at Food Lion Acquired Victory Super M arkets in the Northeast Launched Sw eetbay Supermarket in Florida Change 2004 2003 Number of stores* UNITED STATES In 2004, Delhaize Group's U.S. ...

  • Page 21
    ... of Kash n' Karry to Sw eetbay Supermarket Greensboro, North Carolina, and Baltimore, M aryland, in 2005. In 2004, Food Lion also opened fi ve pilot stores to test a new concept and brand name, taking convenience to the next level. Developed by a multifunctional cross-company team, the Bloom...

  • Page 22
    ...  ANNUAL REPORT 2004 system has reduced shipping errors at the distribution centers by 60%. A touch screen point of sale system is resulting in productivity improvements of 25% at the checkout, and a w eb-based self-service system allow s vendors to review invoice status online. KASH N' KARRY...

  • Page 23
    ... ANNUAL REPORT 2004 21 a Kash n' Karry including vastly expanded produce, meat, seafood, deli, w ine, specialty, international and frozen foods. Sw eetbay borrow ed many of the successful elements (design, systems, training, positioning, etc.) that are already employed by Hannaford and Delhaize...

  • Page 24
    ...  ANNUAL REPORT 2004 2004 HIGHLIGHTS Increased sales by 5.3% and net earnings by 8.4% Grew market share to 25.7% Opened fi rst company-operated supermarket in the GrandDuchy of Luxembourg Launched " 365" range of basic products Change 2004 2003 Number of stores BELGIUM In 2004, Delhaize...

  • Page 25
    ... from supply chain optimization and common packaging allowed the company to offer basic products of good quality at low prices. Customers are reacting enthusiastically to this new brand. value adding handling in the stores, freeing up time for customer service and other value-adding tasks. The...

  • Page 26
    ... close to Greek Nature" brand, premium-quality perishables labeled " AB Choice" and the organic " Green Leaf" non-food range. The " 365" brand was introduced with more than 100 items at year-end. The company enhanced the quality and range of its bakery and meat departments. In addition, supply chain...

  • Page 27
    ... and frozen home meal replacements. The introduction of a range of new types of bread and bakery products from the in-store baking stations boosted the sales of this category. The private label offering was extended signifi cantly, including more than 100 items of Delhaize Europe's " 365" brand of...

  • Page 28
    ...and Food Lion Thailand, sales in Asia grew by 4.6% (17.0% in local currency). Number of stores -32 Sales* 42 74 -33.3% Operating margin 135.6 203.3 PORTFOLIO MANAGEMENT In 2004, Delhaize Group divested its Thai operations. The Group concluded that the fi nancial and human resources required...

  • Page 29
    ... States accounted for 70.9% of the Group's total 2004 sales, Belgium for 21.5%, Southern and Central Europe for 6.8% and Asia for 0.8%. At Food Lion and Kash n' Karry, sales momentum improved due to successful sales initiatives and focused store remodeling programs. Hannaford and Delhaize Belgium...

  • Page 30
    ... rst quarter of 2004, Delhaize Group closed 34 Kash n' Karry stores and w rote-off the Kash n' Karry trade name in order to refocus Kash n' Karry on its core markets and to rebrand the remaining stores to the new banner name " Sw eetbay Supermarket." As a result, an exceptional pre-tax charge of EUR...

  • Page 31
    ..., North Carolina, market), tw o Hannaford stores and fi ve Kash n' Karry/ Sw eetbay Supermarket stores. In addition, thirteen Food Lion stores w ere converted to the Harveys' banner. In Belgium, seven company-operated supermarkets w ere Earnings before goodw ill and exceptionals of Delhaize Group...

  • Page 32
    ...million. These provisions relate primarily to store closing reserves in the U.S. (EUR 109.4 million), self-insurance reserves related to w orkers' compensation, general liability, vehicle accident and druggist claims (EUR 100.5 million) and pension liabilities at Hannaford, Delhaize Belgium and Alfa...

  • Page 33
    ... w ill be paid to acquire real estate assets. Cash Fresh is a profi table chain of 43 stores primarily in northeastern Belgium and recorded sales of EUR 209 million in fi scal year 2004. Cash Fresh represents a strong geographical and strategic fi t w ith Delhaize Belgium. Reconciliation of Net...

  • Page 34
    ... 2004, M oody's Investors Services, w hich has a Ba1 credit rat- Sales Operating profit Net earnings Earnings before goodw ill and exceptionals 8.5% 10.9% 10.1% 19.2% 7.2% 9.7% 10.4% 18.6% Interest Rate and Credit Risk Delhaize Group manages its debt and overall fi nancing strategies using...

  • Page 35
    ...w ere a discount rate of 4.50% and an expected rate of return on investments of 4.75%. In addition to the defi ned benefi t plan for its management associates described above, Delhaize Belgium started in 2004 a new group insurance program for all its associates, under w hich the employer and, from...

  • Page 36
    ... option exercises) and the stock option exercise price; • Under IFRS closed store related charges are based on expected settlement w hile Delhaize Group has recorded these provisions using a market value approach under Belgian GAAP; and • Certain restructuring costs associated w ith business...

  • Page 37
    ... The exceptional charge related to the change in accounting method for inventory from a retail method to average cost at Food Lion and Kash n' Karry in the second quarter of 2003, w ill be recorded as an adjustment to the opening 2003 balance sheet under IFRS. Changes in lease accounting w ill only...

  • Page 38
    ...20 1,564 (1) Estim ates based on planned openings and closings 2004 2003 2002 NUMBER OF ASSOCIATES AT YEAREND Full-time Part-time Full-time equivalent M ale Female Delhaize U.S. Delhaize Belgium Alfa-Beta Delvita M ega Image Super Indo Food Lion Thailand Shop N Save Total 62,087 75,824...

  • Page 39
    ... Result 25. Taxes and Deferred Taxation 26. Earnings Reconciliation 27. Consolidated Statement of Cash Flow s 28. Identic al Exchange Rates 29. Companies FINANCIALS REPORT OF THE STATUTORY AUDITOR RECONCILIATION OF BELGIAN GAAP TO US GAAP SUM M ARY STATUTORY ACCOUNTS OF DELHAIZE GROUP SA TEN...

  • Page 40
    ...176 25,834 Current assets Long-term receivables Other receivables Deferred taxation Inventories and w ork in progress Inventories Consumables Goods for resale Payments to account Short-term receivables Trade receivables Other receivables Short-term investments Treasury shares Other investments Cash...

  • Page 41
    ... ithin one year Current portion of long-term debts Financial liabilities Credit institutions Other borrow ings Trade creditors Suppliers Bills payable Payments received on account Liabilities for taxes, salaries and social security Income taxes Salaries and social security Other liabilities Accruals...

  • Page 42
    ... 2002 Operating income Sales Other operating income Operating expenses M erchandise and consumables Purchases Inventories and w ork in progress (increase -, decrease +) M iscellaneous goods and services Salaries, social security and pensions Depreciation and amounts w ritten off establishment costs...

  • Page 43
    ... interest Share in results of companies accounted for under the equity method Adjustments for Depreciation and amortization Amortization of debt issuance costs and securities premium/ discounts Provisions for losses on accounts receivable and inventory obsolescence Stock option expenses Income taxes...

  • Page 44
    42 DELHAIZE GROUP  ANNUAL REPORT 2004 CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY Cumulative Translation Adjustment and Other (note 1) (in thousands of EUR, except number of shares) Number of Shares Outstanding Capital Share Premium Account Revaluation Reserves Group ...

  • Page 45
    ... reorganization and store closing costs; • self-insurance reserves for w orkers' compensation, general liability, vehicle accident and druggist claims; • charges for w hich the company may be liable as a result of current litigation. Deferred taxes are calculated using the liability method on...

  • Page 46
    ... to the consolidated financial statements). Analysis of Establishment Costs (in thousands of EUR) M ai n changes duri ng 2003. Delhaize Group acquired Harveys, a chain that w as operating 43 supermarkets located in central and south Georgia and the Tallahassee, Florida area. Delhaize Group paid an...

  • Page 47
    DELHAIZE GROUP  ANNUAL REPORT 2004 45 3. Intangible Fixed Assets This account is primarily composed of intangible assets identified in the purchase price allocation of the Delhaize America share exchange, w hich took place in 2001, and the acquisition of Hannaford in 2000. Analysis of ...

  • Page 48
    ... buildings plant, machinery and equipment Delhaize Group Stores Ow nership (end of 2004) Ow ned Capital Leases Operating Leases Affiliated and Franchised Stores Ow ned by Their Operators or Directly Leased by Their Operators from a Third Party Total United States Belgium, Germany, Grand-Duchy of...

  • Page 49
    ... payments due on a portion of its long-term debt. 7. Capital and Share Premium Account During 2004, several capital increases occurred, follow ing the exercise of 1,044,004 w arrants by optionees under the Delhaize Group 2002 Stock Incentive Plan primarily targeted to U.S. management associates...

  • Page 50
    ... Hannaford defined benefit pension plan and the value of plan assets. The provisions at Corporate level mainly represent: • Self-insurance reserves at The Pride Reinsurance Company Ltd (Pride) amounting to EUR 100.5 million as of December 31, 2004. Delhaize Group's self-insurance reserves relate...

  • Page 51
    ...taken into account) and related interest rates (before effect of interest rate sw aps) of Delhaize Group long-term debt : 2008 2009 Thereafter Fair value (in millions of USD) Notes, due 2006 Notes, due 2011 Debentures, due 2031 M edium term notes Debt securities, due 2007 Debt securities, due 2027...

  • Page 52
    ... are convertible by holders into ordinary shares of the Company at any time on or after June 10, 2004 and up to and including the date falling seven business days prior to April 30, 2009, unless previously redeemed, converted or purchased and cancelled. The conversion price w ill initially be EUR 57...

  • Page 53
    ... mortgages granted by Delhaize Belgium, Delhaize America and M ega Image: 30,356 In addition, Delhaize America has a credit facility of USD 350 million (approximately EUR 257.0 million), w hich is secured by certain inventories of its operating companies. Interest Rate Related Operations In 2001...

  • Page 54
    52 DELHAIZE GROUP  ANNUAL REPORT 2004 18. Geographical Overview Contribution of Operating Companies in 2004 (in millions of EUR) United States Belgium Southern and Central Europe Asia Corporate Total Sales Cost of goods sold Gross profit Gross margin Depreciation Amortization Salaries, ...

  • Page 55
    ...related to a tax refund at Delhaize America (1) At 2003 average exchange rates (2) Harveys sales do not include the sales of the Food Lion stores converted to Harveys (3) Excluding Harveys 20. Salaries (in millions of EUR) 2004 2003 United States Belgium Southern and Central Europe Asia Corporate...

  • Page 56
    ... due to a reduction of the Greek tax rate from 2005 on and a tax benefit of EUR 8.6 million recorded by Delhaize America for disqualified stock options. Tax Expenses by Country: (in millions of EUR) Statutory Rate 2004 Actual Rate 2003 Actual Rate United States Belgium Greece Others 38.0% 34.0% 35...

  • Page 57
    ... Delhaize Group generated free cash flow after dividend payments of EUR 278.0 million, compared to EUR 357.5 million in 2003. Free Cash Flow Reconciliation 2004 (in millions of EUR) 2003 Additions to long-term loans Stock options exercised, net of buyback ow n shares Investments in debt securities...

  • Page 58
    ..., s.r.o. Distra N.V. DZA Brands, LLC ENA S.A. Essex Realty Corp. FL Food Lion, Inc. Food Lion, LLC Golden Pow er 95 Com S.R.L. Hannabro, Co. Hannaford Bros., Co. Hannaford Licensing Corp. Hannaford Procurement Corp. Hannaford Trucking Company J.H. Harvey Co., LLC Kash n' Karry Food Stores, Inc. Rue...

  • Page 59
    ... Center* * * Delhaize The Lion Asia, Ltd.* * * Delhaize Siam, Ltd. Food Lion Thailand, Inc. Food Lion (Thailand), Ltd. Lion Garden Food Company Super Discount M arkets, Inc.* * * (* ) C.R.: Companies Register (* * ) Value-added tax registration number (* * * ) In liquidation Orange Park, Florida...

  • Page 60
    ...  ANNUAL REPORT 2004 REPORT OF THE STATUTORY AUDITOR ON THE CONSOLIDATED ACCOUNTS FOR THE YEAR ENDED 31 DECEM BER 2004 PRESENTED TO THE ORDINARY GENERAL M EETING OF DELHAIZE BROTHERS AND Co "THE LION" (DELHAIZE GROUP) S.A. To the shareholders, As required by law and the articles of association...

  • Page 61
    ... to acquire Hannaford common stock that w ere converted to options to acquire Delhaize America common stock. Under US GAAP , the value of these stock options is taken into account in the total estimated purchase price of Hannaford and the related goodw ill. Fi xed Asset Account i ng Share Exchange...

  • Page 62
    ... been established in accordance w ith applicable legal requirements and customary practices in each country. Benefits are generally based upon compensation and years of service. Delhaize Group accounts for pension plans for its U.S. subsidiaries under the provisions of SFAS 87, Employers' Accounting...

  • Page 63
    ... increasing (decreasing) reported net income: Goodw ill and Other Intangible Assets Fixed asset accounting Lease accounting Pensions Foreign currency transactions Income taxes Directors' remuneration Derivate instruments Treasury shares Stock-based compensation Inventories Other items 211,453 171...

  • Page 64
    ... 2004 SUMMARY STATUTORY ACCOUNTS OF DELHAIZE GROUP SA The summarized annual statutory accounts of Delhaize Group SA are presented below. In accordance w ith the Belgian Company Code, the full annual accounts, the statutory Directors' report and the Statutory Auditor's report w ill be deposited...

  • Page 65
    ... GROUP  ANNUAL REPORT 2004 63 4) Summary Company Accounts of Delhaize Group SA (in thousands of EUR) 2004 2003 Balance Sheet ASSETS Fixed assets Establishment costs Intangible fixed assets Tangible fixed assets Financial fixed assets Current assets Long-term trade receivables Inventories and...

  • Page 66
    64 DELHAIZE GROUP  ANNUAL REPORT 2004 TENYEAR FINANCIAL OVERVIEW 2004 2003 2002 2001 Results of Operations Sales Operating profit Operating margin Income before taxes Income taxes Effective tax rate Net earnings Net margin 17,972 820 4.6% 367 (145) 39.5% 211 1.2% 18,820 809 4.3% 306 (131...

  • Page 67
    DELHAIZE GROUP  ANNUAL REPORT 2004 65 (EUR in millions, except per share amounts) 2000 1999 1998 1997 1996 1995 18,168 739 4.1% 402 (146) 36.3% 161 0.9% 14,310 648 4.5% 511 (190) 37.1% 170 1.2% 12,912 573 4.4% 455 (...

  • Page 68
    ...activities. The Company may carry out in Belgium or abroad all industrial, commercial, movable property, real estate or financial transactions that favor or expand directly or indirectly its industry and trade. It may acquire an interest, by any means w hatsoever, in all businesses, corporations, or...

  • Page 69
    ... share exchange w ith Delhaize Group. (4) Including the stock options granted under the 1996 Food Lion Plan and the 1988 and 1998 Hannaford Plan. Options and W arrants on Delhaize Group ADRs on Dec. 31, 2004 Outstanding Range of Exercise Prices (in USD) Number Outstanding Weighted Average Remaining...

  • Page 70
    ... the highest closing price of the Delhaize Group share on Euronext Brussels during the 20 trading days preceding the acquisition. In M ay 2004, the Board of Directors approved the repurchase of up to EUR 200 million of the Company's shares or ADRs from time to time in the open market, in compliance...

  • Page 71
    ... practicable after the Company electronically files such material w ith the SEC. ADRs of Delhaize Group are listed on the New York Stock Exchange under the symbol " DEG," and its reports and other information can be inspected and copied at the offices of the New York Stock Exchange, Inc., 20 Broad...

  • Page 72
    70 DELHAIZE GROUP  ANNUAL REPORT 2004 MANAGEMENT STRUCTURE (overview on December 31, 2004) Board of Directors Chief Executive Officer Executive Committee Communications Finance Global Procurement Human Resources Information Technology Legal Risk M anagement UNITED STATES Food Lion Hannaford ...

  • Page 73
    ... Executive Vice President, Human Resources, General Counsel M ichel Eeckhout Senior Vice President, Chief Information Officer Joyce W ilson-Sanford Senior Vice President, Strategic Organizational Development Johan De Lille Vice President, Controller Guy Elew aut Vice President, Investor Relations...

  • Page 74
    ... Executive Officer President and Chief Operating Officer Senior Vice President, Retail Operations Vice President, Human Resources Vice President, M erchandising Vice President, M arketing Chairman Deputy Chairman General M anager and member of the Board of Directors Executive Director, Supply Chain...

  • Page 75
    ... represented. At the scheduled meetings of the Board of Directors, the Chief Executive Officer presents a report on the results of the Company's operations and the most recent financial statements are discussed. The Chief Executive Officer develops the strategy of the Company w ith senior management...

  • Page 76
    ... States. Delhaize Group Board of Directors (As of December 31, 2004) Name Baron de Vaucleroy Baron Jacobs Pierre-Olivier Beckers Age (* ) Position Chairman* * * Director* * * President, Chief Executive Officer, and Director Director Director Director Director Director Director Director Director...

  • Page 77
    ... REPORT 2004 75 M r. Hugh G. Farrington (60). After a retail management career starting in 1968 at Hannaford, a U.S. subsidiary of Delhaize Group, M r. Farrington served as President and Chief Executive Officer of Hannaford from 1992 to 2001. In 2000, he w as appointed as Vice Chairman of Delhaize...

  • Page 78
    ... to assisting the Board in discharging its responsibilities relating to the compensation of the Company's executive officers, any incentive compensation plans and equity-based plans, and aw ards thereunder, and profit-sharing plans for the Company's associates, and other compensation issues. In 2004...

  • Page 79
    ...ANNUAL REPORT 2004 77 Comparison of NYSE Corporate Governance Rules Required to be follow ed by U.S. Domestic Issuers and the Corporate Governance Practices of Delhaize Group Delhaize Group, as a non-U.S. company listed on the New York Stock Exchange (" NYSE" ), is permitted to follow home country...

  • Page 80
    ...Delhaize 1 Group Executive, at no cost to the Executive, over a five-year period starting at the end of the second year after the aw ard. These shares can be sold by the Delhaize Group Executive at any time consistent w ith the guidelines and restrictions contained in the Company's trading policies...

  • Page 81
    ... the disclosure obligation must be addressed to the Banking, Finance and Insurance Commission w ithin the same period of time. The number of securities acquired by succession must only be disclosed thirty days after such succession has been accepted, under the benefit of inventory as the case may be...

  • Page 82
    ... SA as of that date. On December 31, 2004, the members of the Executive Committee of Delhaize Group SA ow ned as a group 797,521 stock options, w arrants and restricted stock over an equal number of existing or new ordinary shares or ADRs of the Company. The chart below sets forth the fees charged...

  • Page 83
    ... New York Stock Exchange (w w w.nyse.com). Detailed information on trading activity and share prices can also be found in the financial section of many new spapers. Alfa-Beta, Delhaize Group's operating company in Greece, is listed on the Athens Stock Exchange (w w w.ase.gr) under the symbol BASIK...

  • Page 84
    ... to the related conference call. See w w w.delhaizegroup.com for further details on dial-in numbers and w ebcast. Information for ADR Holders ADSs (American Depositary Shares), each representing one ordinary share of Delhaize Group, are traded on the New York Stock Exchange under the symbol DEG...

  • Page 85
    ...Association, special reports from the Board of Directors, publication of annual report, statutory accounts, dividend payment, number of outstanding shares and w arrants, and transparency notifications. Delhaize Group Investor Relations Department P .O. Box 1330 Salisbury, NC 28145-1330 United States...

  • Page 86
    ... by the weighted average number of shares outstanding during the period. Sales Sales includes the sale of goods and services to customers, including wholesale and affiliated customers, relating to the normal activity of the Company (the sale of groceries, health and beauty and pet products), net of...

  • Page 87
    ... 412 21 94 http://w w w.delhaizegroup.com Com panies Register: 0402 206 045 OPERATIONS United States FOOD LION P.O. Box 1330, 2110 Executive Drive Salisbury NC 28145-1330 - U.S.A. Tel: +1 704 633 82 50 Fax: +1 704 636 50 24 w w w.foodlion.com HANNAFORD 145 Pleasant Hill Road Scarborough - M E 04074...

  • Page 88
    ... food retail chain led to a pioneering network of Delhaize food stores in Belgium. This same quest also prompted the company to open the fi rst supermarket on the European continent in 1957. In the follow ing decades, the company joined w ith local teams in the U.S., Europe and Asia w ho shared...