Food Lion 2013 Annual Report Download

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ANNUAL
REPORT
2013
TOGETHER THE BEST FOR LIFE

Table of contents

  • Page 1
    ANNUAL REPORT 2013 TOGETHER THE BEST FOR LIFE

  • Page 2
    ... FOOD RETAILER DELHAIZE GROUP HAS LEADING POSITIONS IN FOOD RETAILING IN KEY MARKETS. OUR OPERATING COMPANIES HAVE ACQUIRED THESE POSITIONS THROUGH DISTINCT GO-TO-MARKET STRATEGIES. THE GROUP IS COMMITTED TO OFFER ITS CUSTOMERS A LOCALLY DIFFERENTIATED SHOPPING EXPERIENCE, TO DELIVER SUPERIOR VALUE...

  • Page 3
    ... Vision and Values 42 Governance(1) 42 Corporate Governance 54 Remuneration Report 62 68 Risk Factors(1) Financial Statements(1) Information 11 Strategy 12 Growth 18 Efficiency 24 Sustainability 30 30 33 36 39 168 Shareholder 172 Glossary Review(1) Financial Review United States Belgium...

  • Page 4
    ...PERFORMANCE INDICATORS NUMBER OF ASSOCIATES 10% 23% â,¬ 669 mio FREE CASH FLOW 67% 160 883 FINANCE United States Belgium SEE and Indonesia OPERATING PROFIT (in millions of â,¬) 775 RESULTS +2% ASSOCIATES 11 415 12 13 REVENUES 24% 15% â,¬ 21.1 bln 61% United States Belgium SEE ASSOCIATES...

  • Page 5
    ...)(4) 2013 Results Revenues Underlying operating profit Operating profit Net profit from continuing operations Net profit (Group share) Free cash ï¬,ow (1) (â,¬ in millions except per share amounts) 2013 21 108 753 487 226 179 669 Change vs Prior Year 2011 19 519 902 775 465 472 -229 2012 20...

  • Page 6
    ...ANNUAL REPORT 2013 GROUP FROM CHANGES TO CHOICES Interview with the Chairman of the Board and the Chief Executive Officer FOR DELHAIZE GROUP, 2013 WILL UNDOUBTEDLY BE REMEMBERED AS A YEAR OF SIGNIFICANT CHANGE; CHANGE AT THE LEVEL OF THE GROUP'S OPERATING COMPANIES AS WELL AS ITS MANAGEMENT TEAM...

  • Page 7
    ... GROUP ANNUAL REPORT 2013 INTERVIEW 5 FM: I agree. The marketplace is definitely getting more crowded over the years. This means that a food retailer needs to be much more precise in positioning itself. For Delhaize Group, we need to ask ourselves questions like: who are our target customers...

  • Page 8
    ... an important year for Food Lion. We finished the rebranding work we started in 2011. Management and associates in the U.S. did an excellent job through five different phases and we see the results of their efforts clearly today in the performance of the Food Lion network. Comparable store THE...

  • Page 9
    ... growth rate was without any doubt in Romania where we increased the number of stores by a 103. In Indonesia we opened 15 new stores while most of our European operations gained market share in 2013. Also in Southeastern Europe, Delhaize Serbia started the construction of a new distribution center...

  • Page 10
    ... and Reid's) at the end of 2013, the U.S. is the largest market for Delhaize Group. Of total Group revenues, 61% came from the three U.S. banners operating along the East coast, covering 18 states. BRANDS KEY FIGURES NUMBER OF STORES OPERATING PROFIT (in millions of â,¬) 1 650 1 553 1 514...

  • Page 11
    ... is Delhaize Group's historical home market. At the end of 2013, Delhaize Group operated a multi-format network of 852 stores in Belgium and the Grand Duchy of Luxembourg. In 2013, Delhaize Belgium's revenues of â,¬5 071 million accounted for 24% of the Group total. Delhaize Group's Southeastern...

  • Page 12
    ... THE BEST OF DELHAIZE FOR LIFE. Together, we aspire to enrich the lives of our customers, associates, and the communities we serve in a sustainable way. Together, we offer assortments, products and services that are nutritious, healthy and safe, everyday, at prices all customers can afford. We...

  • Page 13
    ... We want to operate our business as responsible retailers for the customers and the communities we serve by offering sustainably sourced products and providing healthy food choices. Our stores provide a safe shopping and working environment for both customers and associates. see more on...

  • Page 14
    "CUSTOMERS ARE WITHOUT ANY DOUBT THE MOST IMPORTANT FOCUS OF THE COMPANY." Growth

  • Page 15
    ... our value proposition, when creating new private brand products and when recruiting new associates, our customers are always at the heart of these decisions. > 20 mio customers served every week 1 113 Food Lion stores repositioned + 2.4 % total network growth in 2013 103 new stores in Romania

  • Page 16
    ...with our customers. time-constrained, the click and collect service Delhaize Direct offers an online shopping experience with easy in-store pickup. Finally, for customers who may not be able to go to the store, Delhaize Belgium offers the Caddy Home service that delivers the ordered products to the...

  • Page 17
    ... added to offer customers freshly cut fruit. And although Hannaford focuses on value and does not want to position itself as a price only player, the company nevertheless made important strategic price investments in 2013 and communicated these to customers using in-store signage and other marketing...

  • Page 18
    .... In 2013, Delhaize Belgium introduced a new platform to further improve the performance of its click and collect service, Delhaize Direct. Marcus Spurrell, Delhaize Group Senior Vice President of Digital, explains why this is so important. "Because online is where our customers are going. As...

  • Page 19
    ... and Pittsburgh markets. In markets where Delhaize Group already has a solid store density, it is important to keep the existing portfolio in good shape. At the end of 2013, all 1 113 Food Lion stores have been revitalized as part of the Food Lion repositioning work, which began in mid-2011 and was...

  • Page 20
    "WE NEED TO STAY SIMPLE AND REDUCE COMPLEXITY." Efficiency

  • Page 21
    ... costs, it is also about making sure that customers have a convenient shopping experience with an easy check out and about enabling associates to perform at their best. This requires best-in-class execution at every level in the food retail value chain. â,¬ 669 mio free cash ï¬,ow generated in 2013...

  • Page 22
    20 DELHAIZE GROUP ANNUAL REPORT 2013 STRATEGY Strategy Efficiency Cost Management Before customers load their baskets with our products, those products have traveled a long way and experienced several transitions and transformations. Given the magnitude of the process it is important to ...

  • Page 23
    DELHAIZE GROUP ANNUAL REPORT 2013 EFFICIENCY 21 82 000 sqm additional distribution center capacity The Group applies the same logic to the hundreds of goods and services we need and use every day to run our business. In order to maximally benefit from our scale, Delhaize Group has created a ...

  • Page 24
    ... an integrated end-to-end Supply Chain package, centralizing all processes pertaining to the purchasing, ordering, delivering, and invoicing of goods. It enables organic growth for Delhaize in Europe through business innovation and IT integration. In 2013, the company reached important milestones in...

  • Page 25
    ... payment solution for our suppliers," said Mihai Spulber, Chief Financial Officer of Mega Image. In its search to find opportunities to better serve its customers Delhaize Belgium launched in 2013 its first mobile cash registers. This gives the opportunity for a supermarket to increase sales...

  • Page 26
    "WE BELIEVE THAT WE WILL BECOME A SUPERGOOD SUPERMARKET OPERATOR BY 2020." Sustainability

  • Page 27
    ... committing to building sustainability into our private brand products, to eliminating waste, to healthier living, and to a sense of diversity that reï¬,ects our values and communities. $ 1 mio savings target with the Zero Waste initiative at Hannaford 100 % sustainable fish at Delhaize Belgium...

  • Page 28
    ... for the company. Customers continue to award our private brand products with very high scores in both taste and quality. So it should be no surprise that Delhaize Group takes very good care of its private brand products. As was the case in previous years, Delhaize Group again worked hard in 2013 to...

  • Page 29
    DELHAIZE GROUP ANNUAL REPORT 2013 SUSTAINABILITY 27 nationwide partnership to reduce sodium in the U.S. food supply, now coordinates with more than 90 city and state health authorities and organizations. For the past three years, Delhaize America has worked with its private brand suppliers to ...

  • Page 30
    ... less waste, and making products available in smaller units or portions so less food is thrown in the trash. In Belgium, Delhaize works closely together with several social organizations, establishing food banks to donate the unmarketable but still safe and edible good products. Products that are no...

  • Page 31
    ...both new and mid-career hires to better understand the food retail sector at large through classroom session, store visits, and field trips. By giving them the space to develop themselves and at the same time keep a healthy work-life balance, Delhaize Group creates the conditions for its associates...

  • Page 32
    30 DELHAIZE GROUP ANNUAL REPORT 2013 REVIEW FINANCIAL REVIEW Income statement In 2013, Delhaize Group realized revenues of â,¬21.1 billion. This represents an increase of 0.6% at actual exchange rates or 2.6% at identical exchange rates. Organic revenue growth was 3.1%. The revenue performance ...

  • Page 33
    DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL REVIEW 31 GROUP SHARE IN NET PROFIT (IN MILLIONS OF â,¬) BASIC NET PROFIT (GROUP SHARE) (IN â,¬) CAPITAL EXPENDITURES (IN MILLIONS OF â,¬) NET DEBT (IN BILLIONS OF â,¬) 565 11 12 13 11 1.03 Underlying operating margin 104 12 1.77 179 13 ...

  • Page 34
    ...the end of 2012. Net debt decreased by â,¬599 million to â,¬1.5 billion mainly as a result of strong free cash ï¬,ow generation. At the end of 2013, Delhaize Group had total annual minimum operating lease commitments for 2014 of â,¬269 million, including â,¬21 million related to closed stores. These...

  • Page 35
    ... ANNUAL REPORT 2013 UNITED STATES 33 UNITED STATES DELHAIZE AMERICA DELIVERS THE HIGHEST CONTRIBUTION TO THE DELHAIZE GROUP REVENUES WITH MORE THAN 60% OF GROUP SALES. WITH ITS DIFFERENT BANNERS, THE COMPANY OFFERS ITS CUSTOMERS THREE DIFFERENT STORE FORMATS. IN 2013 DELHAIZE AMERICA OPERATES...

  • Page 36
    Review United States 100 % OF ALL FOOD LION STORES REPOSITIONNED + 2.0 % COMPARABLE STORES SALES GROWTH 1 514 stores IN 18 STATES REVENUES Other segments 39% $ 17.1 bio TOTAL REVENUES IN 2013 3.4 % OPERATING MARGIN USA 61% Hannaford Bottom Dollar Food Food Lion Harveys Sweetbay

  • Page 37
    DELHAIZE GROUP ANNUAL REPORT 2013 UNITED STATES 35 Performance For the full year 2013, Delhaize America generated revenues of $17.1 billion (â,¬12.9 billion), an increase of 1.9% over 2012 in local currency supported by comparable store sales growth of 2.0%. In 2013, the U.S. gross margin ...

  • Page 38
    ... GROUP ANNUAL REPORT 2013 REVIEW BELGIUM THE ROOTS OF DELHAIZE GROUP CAN BE FOUND IN BELGIUM WHERE DELHAIZE BELGIUM OPERATES A WIDE VARIETY OF COMPANY-OPERATED AND AFFILIATED STORE FORMATS INCLUDING SUPERMARKETS, PROXIMITY STORES, A SPECIALTY CHAIN LIKE TOM & CO AND THE DISCOUNT CONCEPT RED MARKET...

  • Page 39
    ... in 2013. Low-cost / low-price Supermarkets - Red Market Red Market discount food stores are newer concept stores that combine high quality products, private as well as national brands, new Supermarkets - Delhaize With 147 company-operated stores, Delhaize "Le Lion" is the leading supermarket...

  • Page 40
    ...its significant physical presence, Delhaize Belgium also operates e-commerce initiatives like Delhaize Direct, Delhaize Wineworld, and a home delivery service, Caddy Home. Delhaize Direct: Customers do their shopping online through a dedicated store website and collect their groceries at one of the...

  • Page 41
    ... consumer spending both seem to indicate that the tough years of 2010 and 2011 have been digested. Strategy Delhaize Group continues to believe in and stimulate the development of this region. This is why, in 2013, we started building a new distribution center in Serbia to reduce our Direct-Store...

  • Page 42
    ... needs of Romanian customers. For the first time since the launch of the new store format in 2010, Mega Image opened its first Shop & Go store outside of Bucharest. Bosnia and Herzegovina(2) Delhaize Group operates a network of 39 stores, making it one of the largest food retailers in Bosnia and...

  • Page 43
    DELHAIZE GROUP ANNUAL REPORT 2013 SOUTHEASTERN EUROPE 41 KEY FIGURES (AS OF DECEMBER 31, 2013) Bosnia ... % OF TOTAL SALES FROM SEE SEGMENT Greece, Romania, Serbia, Bulgaria & Bosnia-Herzegovina â,¬ 3.1 bio REVENUES (+ 5.1 %) + 103 NEW STORES IN ROMANIA Indonesia 23 % OF MARKET SHARE IN GREECE

  • Page 44
    ... of North Carolina 5. JACQUES DE VAUCLEROY (1961) Director since 2005 Member of the AXA Management Committee, CEO for the Northern, Central and Eastern Europe business Unit. CEO AXA Life & Saving and Health business line. Former Member Executive Board ING Group and CEO of ING Insurance Europe...

  • Page 45
    DELHAIZE GROUP ANNUAL REPORT 2013 CORPORATE GOVERNANCE 43 EXECUTIVE COMMITTEE (as of December 31, 2013) 12. FRANS MULLER (1961) President and CEO of Delhaize Group Master of Business Economics from Erasmus University, Rotterdam, The Netherlands Joined Delhaize Group in 2013 15. KOSTAS MACHERAS (...

  • Page 46
    ... Code, this Corporate Governance Statement focuses on factual information relating to the Company's corporate governance, including changes and other events that occurred in 2013 that impact the Company's corporate governance framework. The Board of Directors Mission of the Board of Directors...

  • Page 47
    ... Board of Directors. In 2013, the Board's activities included, among others: • Regular sessions with the CEO without other members of management • An annual strategic session on key strategic issues • Succession planning for the role of CEO and other members of Executive Committee • Review...

  • Page 48
    ...1981, he was named Marketing & Sales Manager at Masterfoods N.V. (Mars Inc.) for Belgium, the Netherlands, Germany and France. In 1986, he moved to Côte d'OrJacobs Suchard and five years later moved to Interbrew N.V. where he started as Executive Vice President before becoming CEO for Europe, Asia...

  • Page 49
    ...revenues and earnings press releases • Review of the effect of regulatory and accounting initiatives and any off-balance sheet structures on the financial statements • Review of changes, as applicable, in accounting principles and valuation rules • Review of the Internal Audit Plan • Review...

  • Page 50
    48 DELHAIZE GROUP ANNUAL REPORT 2013 CORPORATE GOVERNANCE • Review and evaluation of the lead partner of the independent auditor • Holding closed sessions (without the presence of management) with the independent external auditor, the Company's Chief Internal Audit Officer, and the Company's...

  • Page 51
    ... Performance Cash Plan. The grants under the Performance Cash Plan provide for cash payments to the beneficiaries at the end of a three-year period that are dependent on Company performance against Board-approved financial targets that are closely correlated to building long-term shareholder value...

  • Page 52
    ... Shareholders' Meeting held on May 26, 2011 approved a change in control clause set out in the â,¬600 million five-year revolving credit facility dated April 15, 2011 entered into among inter alias the Company, Delhaize America, LLC, Delhaize Griffin SA, Delhaize The Lion Coordination Center...

  • Page 53
    ... Our operating companies have acquired leading positions in food retailing through a distinct go-to-market strategy, benefiting from support functions at the global or regional level, whichever makes the most sense in terms of efficiency. Delhaize Group also has implemented policies and procedures...

  • Page 54
    ...of five years as from June 21, 2012. The Board of Directors has been authorized by the Company's shareholders to acquire up to 10% of the outstanding shares of the Company at a minimum unit price of â,¬1 and at a maximum unit price not higher than 20% above the highest closing stock market price of...

  • Page 55
    ... of Delhaize Group SA combined, which represented approximately 0.69% of the total number of outstanding shares of the Company as of that date. On December 31, 2013, the Company's Executive Committee owned as a group 729 772 stock options, warrants, performance stock units and restricted stock units...

  • Page 56
    ... companies. As stated in its Remuneration Policy, the Board of Directors has established financial targets for Company performance and individual targets aligned with the Company's strategy. Both the structure and the amount of compensation paid to Executive Management are reviewed on an annual...

  • Page 57
    DELHAIZE GROUP ANNUAL REPORT 2013 REMUNERATION REPORT 55 is to establish target compensation levels that, as a general rule, are at or around the median market level. The reference companies are those in the retail industry in Europe and the United States, as well as other comparably sized ...

  • Page 58
    ... the Executive Management team and reward shareholder value creation. In 2013, the Delhaize Group long-term incentive plan consisted of three components: • Stock options (in Europe) and warrants (in the U.S.); • Performance stock units (in the U.S.); and • Performance cash grants. For members...

  • Page 59
    ... stock units under its Delhaize America 2012 Restricted Stock Unit plan. The performance stock units are subject to cliff vesting after 3 years, Delhaize Group performance and employment by the Company at the time of vesting. In 2013, 32 359 performance stock units were granted to the Executive...

  • Page 60
    ... DELHAIZE GROUP ANNUAL REPORT 2013 CORPORATE GOVERNANCE Performance Cash Grant As of 2014, there will be no further grants under the Performance Cash Plan. Awards made to Executive Management related to the 2010 - 2012 performance period were paid in 2013, and awards made to Executive Management...

  • Page 61
    ... on the 2009-2011 LTI performance cash plan, and the pay-out in 2013 in based on the 2010-2012 LTI performance cash plan. Stock options/warrants and performance stock units granted The following table shows the number of stock options/warrants and performance stock units granted to the CEOs and the...

  • Page 62
    ... of the Delhaize Group CEO by the end of 2013, the Company established a retention program to maintain management stability and focus on the Company's business plans, with cash awards paid to participants, including certain members of the Executive Committee, if they are still employed on July...

  • Page 63
    DELHAIZE GROUP ANNUAL REPORT 2013 REMUNERATION REPORT 61 Communications and Sustainability. His employment agreement provides for a payment equal to twelve months of total cash compensation and benefits, in the event the Company terminates his employment agreement without cause or if terminated ...

  • Page 64
    ... costs and tax rates could reduce consumer spending or change consumer purchasing habits. Weaker consumer spending can negatively impact profitability due to pressure on sales and margins. If labor cost and the cost of goods sold, which are the Group's primary operating costs, increase above retail...

  • Page 65
    ...pricing, purchasing, financing, advertising or promotional decisions made by these competitors. To the extent Delhaize Group reduces prices or increases expenses to support sales in the face of competition, its net income and cash generated from operations could be affected. Operational Risks Risk...

  • Page 66
    64 DELHAIZE GROUP ANNUAL REPORT 2013 RISK FACTORS In order to manage its identified and quantified market risks, Delhaize Group uses derivative financial instruments such as foreign exchange forward contracts, interest rate swaps, currency swaps and other derivative instruments. These fi...

  • Page 67
    ...lower (2012 and 2011: also â,¬4 million higher/lower with a rate shift of 17% and 22%, respectively). Due to the financing structure of the Group, such a change in the Euro/U.S. dollar exchange rate would have no impact on the equity of Delhaize Group. Pension Plan Risk Most operating companies of...

  • Page 68
    ...and by assessment of financial capacity in the insurance markets. The main risks covered by Delhaize Group's insurance programs are property, liability and health-care. The U.S. operations of Delhaize Group use self-insured retention programs for workers' compensation, general liability, automotive...

  • Page 69
    ... ANNUAL REPORT 2013 RISK FACTORS 67 others, zoning, land use, antitrust restrictions, work place safety, public health and safety, environmental protection, community right-to-know, information security and data protection, alcoholic beverage and tobacco sales and pharmaceutical sales. A number...

  • Page 70
    FINANCIAL STATEMENTS

  • Page 71
    ... Benefits 22. Income Taxes 23. Accrued Expenses 24. Expenses from Continuing Operations by Nature 25. Cost of Sales 26. Employee Benefit Expenses 27. Other Operating Income 28. Other Operating Expenses 29. Financial Result 30. Net Foreign Exchange Losses (Gains) 31. Earnings Per Share ("EPS") 32...

  • Page 72
    70 DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS Consolidated Balance Sheet Assets (in millions of â,¬) Note 6 7 8 9 36 11 12 22 10.2, 19 2013 2 959 732 3 973 100 24 8 21 71 1 41 7 930 2012(1) 3 189 848 4 314 116 28 11 19 89 61 50 8 725 1 391 632 21 93 - - 76 41 920 3 174 18 3 192 11 ...

  • Page 73
    ... Long-term debt - current portion Obligations under finance leases Derivative instruments Provisions Bank overdrafts Income taxes payable Accounts payable Accrued expenses Other current liabilities Liabilities associated with assets held for sale Total current liabilities Total liabilities Total...

  • Page 74
    72 DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS Consolidated Income Statement (in millions of â,¬) e Note 25 24, 25 27 27 24 24 28 28 1 29.1 2 29.2 36 36 22 22 3 5.3 Revenues Cost of sales Gross profit Gross margin Other operating income Selling, general and administrative expenses ...

  • Page 75
    ...Gain (loss) on cash flow hedge, net of tax Unrealized gain (loss) on financial assets available for sale Reclassification adjustment to net profit Tax (expense) benefit Unrealized gain (loss) on financial assets available for sale, net of tax Exchange gain (loss) on translation of foreign operations...

  • Page 76
    ...- - Net profit - - FINANCIAL STATEMENTS - - Total comprehensive income for the period Capital increases 336 909 - - - Call option on own equity instruments Treasury shares purchased - - - - - - 1 - - - - - - - - 1 - 1 Treasury shares sold upon exercise of employee stock...

  • Page 77
    ... shares sold upon exercise of employee stock options Excess tax benefit (deficiency) on employee stock options and restricted stock units Tax payment for restricted stock units vested (5) - - - 1 200 943 - (66) - 16 - 2 814 - - - (142) 3 677 - - - (8) - - - - DELHAIZE GROUP ANNUAL REPORT 2013...

  • Page 78
    ...) term deposits, net Sale and maturity (purchase) of other financial assets Settlement of derivatives instruments Net cash used in investing activities Cash flow before financing activities Financing activities Proceeds from the exercise of share warrants and stock options Purchase of call option on...

  • Page 79
    ...Brussels and on the New York Stock Exchange ("NYSE"), under the symbols "DELB" and "DEG" , respectively. The consolidated financial statements for the year ended December 31, 2013, as presented in this annual report, were prepared under the responsibility of the Board of Directors and authorized for...

  • Page 80
    ... income approach (e.g.: discounted cash-flow) and uses other techniques, like market approach, as supporting or benchmarking tool. 2.2 Initial Application of New, Revised or Amended IASB Pronouncements The accounting policies adopted are consistent with those of the previous financial year except...

  • Page 81
    ... has been included in the consolidated income statement - below operating profit - as "Share of results of joint venture equity accounted". If Super Indo had been accounted for using the proportional consolidation method in 2013, the revenue would have been higher by â,¬146 million. The transition...

  • Page 82
    80 DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS control ceases. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full. Non-controlling interests represent the portion of profit or loss...

  • Page 83
    ... are translated at the average daily exchange rate (i.e., the yearly average of exchange rates on each working day). ï,· ï,· The differences arising from the use of the average daily exchange rate for the income statement and the closing exchange rate for the balance sheet are recorded in the...

  • Page 84
    82 DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS Closing Rate (in â,¬) 1 USD 100 RON 100 RSD 100 ALL 100 IDR Country U.S. Romania Serbia Albania Indonesia 2013 0.725111 22.366361 0.872296 0.713267 0.005965 2012 0.757920 22.499719 0.879353 0.716384 0.007865 2011 0.772857 23.130479 0....

  • Page 85
    ... income statement. Residual values, useful lives and methods of depreciation are reviewed at each financial year-end and adjusted prospectively, if appropriate. Investment Property Investment property is defined as property (land or building - or part of a building - or both) held by Delhaize Group...

  • Page 86
    ... is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risk specific to the asset. As...

  • Page 87
    ...net of any fees received and discounted using the original effective interest rate, is at least 10 percent different from the discounted present value of the remaining cash flows of the original financial liability. If the exchange or modification is not accounted for as an extinguishment, any costs...

  • Page 88
    ...DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS ï,· naturally offsets the gain or loss arising on re-measuring the underlying instrument at the balance sheet exchange rate (see Note 19). These derivatives are mandatorily classified as held-for-trading and initially recognized at fair value...

  • Page 89
    .... Provisions are measured at balance shee t date at management's best estimate of the expenditures expected to be required to settle the obligation, discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risk specific to the liability...

  • Page 90
    ... are valued annually by independent qualified actuaries. For details, see Delhaize Group's other post-employment benefit plans in Note 21.2. Termination benefits: Are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange...

  • Page 91
    ...by the wholesale customer. As stated above, sales are recorded net of sales taxes, value-added taxes and discounts and incentives. These include discounts from regular retail prices for specific items and "buy -one, get-one-free"-type incentives that are offered to retail customers through the Group...

  • Page 92
    ...DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS Segment Reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (CODM), who is responsible for allocating resources and assessing performance of the operating...

  • Page 93
    ... reviewed its U.S. operating segments for similar economic characteristics and long-term financial performance using, for example, operating profit margin, gross margin and comparable store sales development as quantitative benchmarks and concluded aggregating them into the segment "United States...

  • Page 94
    ... The operating segments information for 2013, 2012 and 2011 is as follows: Year ended December 31, 2013 (in millions of â,¬) Revenues Cost of sales Gross profit Gross margin Other operating income Selling, general and administrative expenses Other operating expenses Operating profit (loss) Operating...

  • Page 95
    DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS 93 Year ended December 31, 2012 (in millions of â,¬) Revenues Cost of sales Gross profit Gross margin Other operating income Selling, general and administrative expenses Other operating expenses Operating profit (loss) Operating margin ...

  • Page 96
    94 DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS Year ended December 31, 2011 (in millions of â,¬) Revenues Cost of sales Gross profit Gross margin Other operating income Selling, general and administrative expenses Other operating expenses Operating profit (loss) Operating margin ...

  • Page 97
    ... Romania, make s Delhaize Group a leading retailer in Southeastern Europe. At acquisition date, Delta Maxi operated 485 stores and 7 distribution centers in five countries in Southeastern Europe. Delta Maxi was included into Delhaize Group's consolidated financial statements as of August 1, 2011 and...

  • Page 98
    96 DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS August 1, 2011 Acquisition Date Fair Values (in millions of â,¬) Provisional Fair Values(1) Final Fair Values Intangible assets Property, plant and equipment Investment property Financial assets Inventory Receivables Other assets Cash and...

  • Page 99
    DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS 97 Other 2011 acquisitions In addition, Delhaize Group entered into several small agreements acquiring several individual stores in various parts of the world. The total consideration transferred during 2011 for these transactions was â,¬16 ...

  • Page 100
    98 DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS 5. Divestitures, Disposal Group / Assets Held for Sale and Discontinued Operations 5.1 Divestitures In 2013, Delhaize Group converted several of its Belgian company-operated City stores into affiliated Proxy stores, operated by ...

  • Page 101
    ... Total cash flows In 2013, Delhaize Group recognized in "Other operating expenses" Sweetbay store closing charges of â,¬46 million, onerous lease contract charges, severance costs and impairment losses related to headquarter and distribution centers that are impacted by the planned sale to Bi-Lo...

  • Page 102
    ... which goodwill needs to be reviewed for impairment testing purposes. In 2011, Delhaize Group acquired 100% of the retail company Delta Maxi Group, operating in five countries in the Balkan area. During the first half of 2012, Delhaize Group completed the purchase price allocation of the Delta Maxi...

  • Page 103
    ... not exceed the long-term average growth rate for the supermarket retail business in the particular market in question and the long-term economic growth of the respective country. Operating margins are kept in line with longer term market assumptions. Delhaize Group uses pre-tax cash flows which are...

  • Page 104
    102 DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS Management believes that the assumptions used in the VIU calculations represent the best estimates of future development and is of the opinion that no reasonable possible change in any of the key assumptions mentioned above would cause ...

  • Page 105
    ... from the CGU Food Lion to assets held for sale. During 2012, the Group fully impaired the Albanian trade name (â,¬3 million), reflecting the measurement of the disposal group in accordance with IFRS 5, and included this impairment in "Result from discontinued operations (net of tax)" (see Note...

  • Page 106
    ... 31, 2011 Net carrying amount at December 31, 2011 Trade name assets are allocated to the following cash generating units: December 31, (in millions of â,¬) 2013 184 156 340 84 10 - 94 434 2012 196 163 359 151 14 - 165 524 2011 200 167 367 164 29 3 196 563 Food Lion Hannaford Delhaize America...

  • Page 107
    DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS 105 8. Property, Plant ...Total Property, Plant and Equipment 9 094 597 (389) 4 (147) (145) (14) 9 000 (4 389) (170) (567) (87) 357 94 71 5 (4 557) (129) 4 314 Cost at January 1, 2012 Additions Sales and disposals Acquisitions through business...

  • Page 108
    ...9 4 535 United States Belgium Southeastern Europe Corporate Total property, plant and equipment Depreciation expense is included in the following line items of the income statement: (in millions of â,¬) 2013 57 432 19 508 2012 57 464 46 567 2011 52 417 42 511 Cost of sales Selling, general and...

  • Page 109
    ... review resulted in the decision to close 146 underperforming stores in the first quarter of 2012. Consequently, the Group recorded in 2011 â,¬120 million impairment charges relating to 126 stores in the U.S. (113 Food Lion, 7 Bloom and 6 Bottom Dollar Food stores) and one distribution center...

  • Page 110
    ... weakening real estate market and the deteriorating state of the property for sale, making a sale within the foreseeable future unlikely, part of these properties (net book value of â,¬7 million) has been reclassified into investment property (see Note 5.2). At December 31, 2013, 2012 and 2011, the...

  • Page 111
    DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS 109 10. Categorization and Offsetting of Financial Instruments 10.1 Categorization Financial Assets by Class and Measurement Category December 31, 2013 Financial assets measured at amortized cost Financial assets measured at fair value ...

  • Page 112
    110 DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS December 31, 2011 Financial assets measured at amortized cost Financial assets measured at fair value Derivatives through profit or loss - - 57 - - - 1 - 58 Derivatives through equity Available for sale through equity 13 - - - 93 - - - ...

  • Page 113
    DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS 111 December 31, 2012 (in millions of â,¬) Note 11 19 19 11 19 19 Level 1 8 - - 93 - - 101 Level 2 3 61 - - - - 64 Level 3 Total 11 61 - 93 - - 165 Non-Current Available for sale - through equity Derivatives - through profit or loss ...

  • Page 114
    112 DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS December 31, 2012 Financial liabilities being part of a fair value hedge relationship 561 561 Financial liabilities measured at fair value Derivatives through profit or loss - - 10 - - 4 - 14 Derivatives through equity (in millions ...

  • Page 115
    DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS 113 December 31, 2012 (in millions of â,¬) Note 19 19 19 19 Level 1 - - - - - Level 2 10 - 4 - 14 December 31, 2011 Level 3 - - - - - Total 10 - 4 - 14 Non-Current Derivatives - through profit or loss Derivatives - through equity ...

  • Page 116
    ... in the balance sheet 1 40 101 19 161 Non-current Derivative financial assets Current Derivative financial assets Receivables Cash and cash equivalents Total Non-current Derivative financial liabilities Current Derivative financial liabilities Accounts payable Bank overdrafts Total 8 3 421 451...

  • Page 117
    ... in money market and investment funds (â,¬ 1 million at December 31, 2013) in order to satisfy future pension benefit payments for a limited number of employees, which however do not meet the definition of plan assets as per IAS 19. The maximum exposure to credit risk at the reporting date is...

  • Page 118
    ... been released during 2012. 13. Inventories Inventories predominantely represent goods for resale. In 2013, 2012 and 2011, Delhaize Group did not recognize any (or reverse any previously recognized) material write-downs of inventory in order to reflect decreases in anticipated selling prices below...

  • Page 119
    ...60 days. Trade receivables credit risk is managed by the individual operating entities and credit rating is continuously monitored either based on internal rating criteria or with the support of third party service providers and the requirement for an impairment is analyzed at each reporting date on...

  • Page 120
    ...store properties and equipment In 2012, Delhaize America terminated several finance lease agreements resulting from store closings. 16. Equity Issued capital There were 102 449 570, 101 921 498 and 101 892 190 Delhaize Group ordinary shares issued and fully paid at December 31, 2013, 2012 and 2011...

  • Page 121
    ...2000 Stock Incentive Plan and the Delhaize America 2002 Restricted Stock Unit Plan. Since the authorization of the Board in 2011, Delhaize Group SA and its affiliates acquired 613 924 Delhaize Group shares for an aggregate amount of â,¬28 million. As a consequence, at the end of 2013, the management...

  • Page 122
    ... the end of 2013 (2012: â,¬2 million; 2011: â,¬5 million). Capital Management Delhaize Group's objectives for managing capital are to safeguard the Group's ability to continue as a going concern and to maximize shareholder value, while maintaining investment grade credit rating, keeping sufficient...

  • Page 123
    ...of warrants issued under the Delhaize Group 2002 and 2012 Stock Incentive Plans, the Group may have to issue new ordinary shares, to which payment in 2014 of the 2013 dividend is entitled, between the date of adoption of the annual accounts by the Board of Directors and the date of their approval by...

  • Page 124
    ... DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS 18. Financial Liabilities 18.1 Long-term Debt Delhaize Group manages its debt and overall financing strategies using a combination of short, medium and long-term debt and interest rate and currency swaps. The Group finances its daily working...

  • Page 125
    ... & Poor's within 60 days of Delhaize Group´s public announcement of the occurrence of the change of control. Issuance of new Long-term Debts During 2013, Delhaize Group did not issue any long-term debts. In 2011, Delhaize Group completed the public offering of a 7-year 4.25% retail bond in Belgium...

  • Page 126
    ... to pay. Delhaize Group is managing its liquidity risk based on contractual maturities. The fair values of the long-term debt (excluding finance leases, see Note 18.3) have been determined using their quoted prices for which an active market exists (Level 1). The fair values of long-term debts...

  • Page 127
    ... the inter-bank offering rate at the borrowing date plus a pre-set margin, or based on market quotes from banks. In Europe, Delhaize Group had no outstanding short-term bank borrowings at the end of 2013 and 2012, compared to â,¬60 million at December 31, 2011, with an average interest rate of 2.95...

  • Page 128
    ... to stores under construction were approximately â,¬27 million. Provisions for â,¬113 million, â,¬107 million and â,¬46 million at December 31, 2013, 2012 and 2011, respectively, representing the discounted value of remaining lease payments, net of expected sublease income, for closed stores, were...

  • Page 129
    ... ANNUAL REPORT 2013 FINANCIAL STATEMENTS 127 Store Provisions" (see Note 20.1). The discount rate is based on the incremental borrowing rate for debt with similar terms to the lease at the time of the store closing. Delhaize Group as Lessor - Expected Finance and Operating Lease Income Delhaize...

  • Page 130
    128 DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS 18.5 Free cash flow Free cash flow is defined as cash flow before financing activities, investments in debt securities and term deposits and sale and maturity of debt securities and term deposits and can be summarized as follows: (in ...

  • Page 131
    ... fair value due to changes in market interest rates (see Note 18.1). In order to hedge that risk, Delhaize America, LLC swapped 100% of the proceeds to a EURIBOR 3-month floating rate for the 7-year term. The maturity dates of these interest rate swap arrangements ("hedging instrument") match those...

  • Page 132
    ... swaps outstanding at December 31, 2013. Changes in fair value of these swaps are recorded in "Finance costs" in the income statement: (in millions) Foreign Currency Swaps Amount Received from Bank at Trade Date, and to be Delivered to Bank at Expiration Date â,¬18 â,¬225 â,¬30 â,¬1 â,¬12 â,¬76...

  • Page 133
    ... GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS 131 20. Provisions December 31, (in millions of â,¬) Note 20.1 2013 94 19 2012 89 18 90 52 132 10 64 8 463 375 88 2011 37 9 89 54 93 3 73 10 368 292 76 Closed stores: Non-current Current Self-insurance: Non-current Current Pension benefit and...

  • Page 134
    132 DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS The following table presents a reconciliation of the number of closed stores included in the closed store provision: Number of Closed Stores Balance at January 1, 2011 Store closings added Stores sold/lease terminated Balance at December...

  • Page 135
    ...million in 2013, â,¬10 million in 2012 and â,¬9 million in 2011, respectively. ï,· In the U.S., Delhaize Group sponsors profit-sharing retirement plans covering all employees at Food Lion, Sweetbay, Hannaford and Harveys with one or more years of service. Profit-sharing contributions substantially...

  • Page 136
    ... minimum guarantee given by the insurance company. There are no asset ceiling restrictions. ï,· In the U.S., Delhaize Group operates several defined benefit pension plans. These plans are subject to the Employee Retirement Income Security Act of 1974 (ERISA). In line with ERISA, Delhaize America...

  • Page 137
    ...) Defined benefit liability Defined benefit asset Net defined benefit liability Weighted average assumptions used to determine benefit obligations: Discount rate Rate of compensation increase Rate of price inflation Interest crediting rate (only applicable for the Hannaford Cash Balance Plan) 157...

  • Page 138
    ... crediting rate (only applicable for the Hannaford Cash Balance Plan) 2013 Plans Outside of the United States 2012 Plans Outside of the United States 2011 Plans Outside of the United States (in millions of â,¬) United States Plans Total United States Plans Total United States Plans Total...

  • Page 139
    DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS 137 The weighted average duration of the plans outside the United States is 11.0 years (11.9 years in 2012 and 8.6 years in 2011). The timing of the benefit payments for these plans is as follows: (in millions of â,¬) 2014 2 2015 3 2016 4...

  • Page 140
    ...DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS 21.3 Share-Based Compensation Delhaize Group offers share-based incentives to certain members of its senior management: stock option plans for employees of its non-U.S. operating companies; warrant, restricted and performance stock unit plans...

  • Page 141
    ... vest after a service period of approximately 3½ years, the date at which all options become exercisable. Options expire seven years from the grant date. Delhaize Group stock options granted to employees of non-U.S. operating companies were as follows: Number of shares Underlying Award Issued...

  • Page 142
    ... of 2.60 years (2012: 2.80; 2011: 2.85). The weighted average fair values of stock options granted and assumptions used on the date of grant for their estimations were as follows: Dec. 2013 Share price (in â,¬) Expected dividend yield (%) Expected volatility (%) Risk-free interest rate (%) Expected...

  • Page 143
    ... "Delhaize Group 2002 Stock Incentive Plan" vest ratably over a three-year service period, are exercisable when they vest and expire ten years from the grant date. Sharebased awards granted to employees of U.S. operating companies under the various plans were as follows: Number of shares Underlying...

  • Page 144
    ... 2013 had a weighted average remaining contractual term of 2.85 years (2012: 3.60; 2011: 4.40). The fair values of stock options granted and assumptions used for their estimation were as follows: Nov. 2013 Share price (in $) Expected dividend yield (%) Expected volatility (%) Risk-free interest rate...

  • Page 145
    ... 2012, May 2012 and 2011 was $64.75, $39.62, $38.86 and $78.42, respectively, based on the share price at the grant date. Performance stock units In 2013, Delhaize Group granted performance stock units to U.S. operating entities Vice Presidents and above. Performance stock units are restricted stock...

  • Page 146
    144 DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS 22. Income Taxes The major components of income tax expense for 2013, 2012 and 2011 were: (in millions of â,¬) 2013 149 - - 2 (67) - (1) 2 (8)(3) 77 3 (20) (17) 60 2012 100 (57)(1) - 2 (46) 5 (6) 18 13(2) 29 8 (17) (9) 20 2011 96 5 (1)...

  • Page 147
    ... at December 31, 2012 Charge (credit) to equity for the year Charge (credit) to profit or loss for the year Effect of change in tax rates Divestiture Transfers (to) from other accounts Currency translation effect Net deferred tax liabilities at December 31, 2013 _____ (1) In 2012 and 2011, includes...

  • Page 148
    ... 2012 15 256 2 818 814 599 289 238 189 113 20 316 15 891 4 425 20 316 2011 14 005 2 621 759 540 276 201 161 121 18 684 14 586 4 098 18 684 Product cost, net of vendor allowances and cash discounts Employee benefits Supplies, services and utilities purchased Depreciation and amortization Operating...

  • Page 149
    ... rendered to wholesale customers Gains on sale of property, plant and equipment Gains on sale of businesses Other Total In 2013, Delhaize Group converted several of its Belgian company-operated City stores into affiliated Proxy stores operated by independent third parties, leading to a gain on...

  • Page 150
    ... as a result of the weakening real estate market and the deteriorating state of the property for sale. During 2011, the Group performed a review of its store portfolio and, as a result, recorded impairment losses for 126 stores and one distribution center in the U.S. (â,¬115 million in addition...

  • Page 151
    ...30. Net Foreign Exchange Losses (Gains) The exchange differences charged (credited) to the income statement, excluding the impact of hedge accounting and economic hedges, were as follows: (in millions of â,¬) Note 2013 - - 14 - 14 2012 1 (2) 12 (3) 8 2011 - 1 (10) (7) (16) Cost of sales Selling...

  • Page 152
    ... post -employment benefit plans for the benefit of employees of the Group. Payments made to these plans and receivables from and payables to these plans are disclosed in Note 21. Compensation of Directors The individual Directors' remuneration granted for the fiscal years 2013, 2012 and 2011 is set...

  • Page 153
    ... members of Executive Committee benefit from corporate pension plans, which vary regionally (see Note 21.1). Amounts represent the employer contributions for defined contribution plans and the employer service cost for defined benefit plans. (3) Other long-term benefits include the performance cash...

  • Page 154
    ... affecting several companies active in Belgium in the supply and retail sale of health and beauty products and other household goods. In 2012, the Auditor to the Belgian Competition Authority issued its investigation report. The investigation involves 11 suppliers and 7 retailers, including Delhaize...

  • Page 155
    ... Federal Trade Commission (FTC) to proceed with the sale of its Sweetbay, Harveys and Reid's operations to Bi-Lo (see Note 5.2). As part of the clearance, Bi-Lo agreed to divest 12 Delhaize America stores and Delhaize Group agreed to retain two other stores and convert them into the Food Lion banner...

  • Page 156
    154 DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS Ownership interest in % 2013 Delhaize The Lion America, LLC Delhaize The Lion Coordination Center S.A. Delhaize "The Lion" Nederland B.V. Delhaize US Holding, Inc. Delhome SA Delimmo SA Dofalex SCSA(4) DZA Brands, LLC Ela d.o.o. Kotor(3) ...

  • Page 157
    ... 2013 33 57 2 41 2012 38 54 2 35 2011 32 52 2 31 Balance Sheet Non-current assets Current assets Non-current liabilities Current liabilities Statement of Comprehensive Income Profit before taxes and discontinued operations Net profit from continuing operations Other comprehensive income Total...

  • Page 158
    ...Revenues Gross profit Gross margin Selling, general and administrative expenses as a percentage of revenues Operating profit (loss) Operating margin Net profit (loss) from continuing operations Group share in net profit (loss) Group share in net profit (loss) per share: Basic Diluted 2011 Full Year...

  • Page 159
    DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS 157 Number of Stores (at year-end) 2013 United States Belgium and G.D. Luxembourg Greece Romania Indonesia Serbia Bosnia and Herzegovina Bulgaria Subtotal Divested and Discontinued Operations Czech Republic Slovakia Germany Albania Montenegro...

  • Page 160
    ..., and the revenues generated by the 11 stores (8 Food Lion and 3 Bottom Dollar Food) that were closed early 2013. Results at Identical Exchange Rates (in millions of â,¬, except per share amounts) 2013 At Actual Rates Effect of Exchange Rates 430 15 8 7 0.07 0.07 16 2012 At Identical Rates 21 538...

  • Page 161
    DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS 159 Historical Financial Overview RESULTS (in millions of â,¬) Revenues Operating profit Net financial expenses Income tax expense Net profit from continuing operations Net profit (Group share) Free cash flow(1) FINANCIAL POSITION (in ...

  • Page 162
    160 DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS Certification of Responsible Persons The undersigned, Frans Muller, President and Chief Executive Officer of Delhaize Group, and Pierre Bouchut, Chief Financial Officer of Delhaize Group, confirm that to the best of their knowledge: a) ...

  • Page 163
    ... financial statements of Delhaize Brothers and Co "The Lion" (Delhaize Group) SA give a true and fair view of the group's net equity and financial position as of December 31, 2013, and of its results and its cash flows for the year then ended, in accordance with International Financial Reporting...

  • Page 164
    162 DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS Report on other legal and regulatory requirements The board of directors is responsible for the preparation and the content of the directors' report on the consolidated financial statements. In the framework of our mandate, our ...

  • Page 165
    ... are stated at an amount equal to the fraction of deferred payments provided for in the contract representing the capital value. Depreciation rates are applied on a straight-line basis at the rates admissible for tax purposes: Land Buildings Distribution centers Equipment for intensive use...

  • Page 166
    ... interest rate risks and foreign currency exchange risks relating to borrowings. Call options are used to manage the exposure in relation to the exercise of the stock options granted to the entitled employees of Delhaize Group SA/NV. The purchased call options are recognized on the balance sheet at...

  • Page 167
    ... 45 9 594 Shareholders' equity Capital Share premium Distributable reserves Other reserves Profit carried forward Provisions and deferred taxation Financial liabilities After one year Within one year Trade creditors Other liabilities After one year Within one year Accruals and deferred income Total...

  • Page 168
    ... under the Delhaize Group 2002 Stock Incentive Plan, the Company might have to issue new ordinary shares, to which coupon no. 52 entitling the holder to the payment of the 2013 dividend is attached, between the date of adoption of the annual accounts by the Board of Directors and the date of their...

  • Page 169
    DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS 167 Share Capital (December 31, 2013) (in thousands of â,¬) Number of Shares Share capital Shares in issue At the end of the previous year Issue of new shares At the end of the financial year Analysis of share capital Class of shares ...

  • Page 170
    ...A S O N D SHARE PRICE CAN BE FOUND ON THE WEBSITES OF DELHAIZE GROUP (WWW.DELHAIZEGROUP.COM), NYSE EURONEXT BRUSSELS (WWW. EURONEXT.COM) AND THE NEW YORK STOCK EXCHANGE (WWW.NYSE.COM). Share Performance in 2013 DETAILED INFORMATION ON TRADING On December 31, 2013, the closing price of Delhaize Group...

  • Page 171
    ... the conference call and the webcast. Dividend In March 2014, the Board of Directors adopted a new dividend policy, paying out 35% of underlying Group share in net profit. At the Ordinary Shareholders' Meeting to be held on May 22, 2014, the Board of Directors will therefore propose the payment of...

  • Page 172
    ... Company's website. Consultation of Documents The public documents concerning Delhaize Group can be consulted at the registered office (rue Osseghem/Osseghemtraat 53, 1080 Brussels - Belgium) or at the Corporate Support Office (Square Marie Curie 40, 1070 Brussels - Belgium). In the United States...

  • Page 173
    ...Gazette and on the Company website. 42.8 % share price increase on Euronext Brussels INFORMATION DELHAIZE GROUP SHARE 2013 Share price (in â,¬) Price: year-end average (close) highest (intraday) lowest (intraday) Annual return Delhaize Group share(1) Evolution Belgian All Shares Return index 43.20...

  • Page 174
    ... share in net profit. Enterprise value Market capitalization plus net debt. Free cash ï¬,ow Cash ï¬,ow before financing activities, investment in debt securities and sale and maturity of debt securities. Company-operated store A store operated directly by Delhaize Group. Gross margin Gross...

  • Page 175
    DELHAIZE GROUP ANNUAL REPORT 2013 GLOSSARY 173 Net financial expenses Finance costs less income from investments. Selling, general and administrative expenses Selling, general and administrative expenses include store operating expenses, costs incurred for activities which serve securing sales,...

  • Page 176
    COMPANY INFORMATION Registered Office: Delhaize Group SA rue Osseghemstraat 53 1080 Brussels Belgium Tel: +32 2 412 21 11 - Fax: +32 2 412 21 94 OPERATIONS United States FOOD LION - BOTTOM DOLLAR FOOD P.O. Box 1330, 2110 Executive Drive Salisbury - NC 28145-1330 U.S.A. Tel : +1 704 633 8250 www....