Food Lion 2010 Annual Report Download - page 99

Delhaize Group - Annual Report 2010 95
SUPPLEMENTARY INFORMATION HISTORICAL FINANCIAL OVERVIEW CERTIFICATION OF RESPONSIBLE
PERSONS REPORT OF THE STATUTORY AUDITOR SUMMARY STATUTORY ACCOUNTS OF DELHAIZE GROUP SA
The fair values of the identifiable assets and liabilities of Knauf Center Schmëtt SA and Knauff Center Pommerlach SA as of the date of acquisi-
tion can be summarized as follows:
(in millions of EUR) Acquisition Date Fair Value
Property, plant and equipment 2
Inventories 2
Receivables and other assets 5
9
Non-current liabilities (1)
Accounts payable (3)
Net assets 5
Goodwill arising on acquisition 20
Total consideration transferred 25
Both entities previously prepared financial statements under Luxembourg Generally Accepted Accounting Principles (“Lux GAAP”) and conse-
quently the carrying values of the assets and liabilities just before the acquisition have not been disclosed in the summary table above due to
the fact that it would be impracticable to establish and / or estimate IFRS compliant amounts.
Transaction costs are negligible and the total consideration transferred of EUR 25 million represents the total net cash outflow.
The goodwill of EUR 20 million reflects the direct access Delhaize Group now has to the strong customer base and location of the stores oper-
ated by the two entities and the reduced operating costs due to the full integration into Delhaize Group’s operated sales network.
The consolidated financial statements of Delhaize Group include the revenues of Knauf Center Schmëtt SA and Knauf Center Pommerlach SA
of EUR 56 million and net profit of EUR 2 million for the full year.
Acquisition of four Prodas supermarkets
On July 7, 2009, Delhaize Group acquired in an asset deal, through its fully-owned subsidiary Mega Image, four stores operating under the
“Prodas” brand in Bucharest, for an amount of EUR 6 million (transaction costs are negligible). These supermarkets have been integrated into
Delhaize Group’s Romanian subsidiary Mega Image. The fair value of the acquired property, plant and equipment and inventory amounted to
EUR 0.1 million. Goodwill of EUR 6 million has been recognized at Mega Image and represents buying and sales synergies.
The consolidated financial statements include the revenues of the acquired stores of EUR 3 million and net profit of EUR 0.5 million for the six
months from acquisition date.
The carrying values of assets and liabilities just before the acquisition as well as the estimated full year’s impact on Delhaize Group’s con-
solidated result have not been disclosed here, as the selling entity applied Romanian Generally Accepted Accounting Principles (“Romanian
GAAP”) and it would have been impracticable to establish and / or estimate IFRS compliant amounts.
Acquisition of Koryfi SA
On November 23, 2009, Delhaize Group acquired, through its subsidiary Alfa Beta Vassilopoulos S.A. (“Alfa Beta”), 100% of the shares and
voting rights of the Greek unlisted retailer Koryfi SA. Eleven stores, of which two are owned, and a distribution center were taken over for a
consideration of EUR 7 million. One of the stores was closed end 2009 and one mid 2010 and the 9 other stores were converted to Alfa Beta
stores before the end of 2010.
The final acquisition date fair values of the identified assets and liabilities of Koryfi SA can be summarized as follows:
(in millions of EUR) Acquisition Date Fair Value
Intangible assets 1
Property, plant and equipment 3
Inventories 3
Receivables and other assets 1
8
Non-current liabilities (1)
Short-term borrowings (2)
Accounts payable (6)
Other current liabilities (1)
Net assets (2)
Goodwill arising on acquisition 9
Total consideration transferred 7
The fair values of the identifiable assets and liabilities of Koryfi S.A. in the 2009 consolidated financial statements were recognized on a provi-
sional basis. No material adjustments were done in 2010.
Transaction costs are negligible and the total consideration transferred of EUR 7 million represents the total net cash outflow. The final goodwill
of EUR 9 million is attributed to location-related advantages, as it reinforces Alfa Beta’s position in the North-eastern part of Greece, as well as
to the acquisition of the customer base of the Koryfi stores.