Annual Report

with sustainability reporting

2020/21

Together, we create sustainable added value through value-driven craftsmanship in retail

This Annual report is also available on colruytgroup.com/annualreport. Our corporate website also includes all press releases, extra stories and background information.

Halle, 11 June 2021

FINANCIAL YEAR 2020/21

Annual report presented by the Board of Directors to the Ordinary General Meeting of Shareholders

of 29 September 2021 and Independent auditor's report

The Dutch language version of the annual report is the only official version. Dit jaarverslag is ook verkrijgbaar in het Nederlands.

Ce rapport annuel est également disponible en français.

Intro

4 Word from the Chairman

6 Who are we?

12 Our vision on sustainability

18 Continuity, even during the pandemic

20 Management report

32 Key figures

Activities

41 Retail

80 Wholesale

87 Foodservice

90 Other activities

100 Group support activities

Corporate governance

117 Governance, supervision and management

122 Sustainable corporate governance

153 Share ownership and Colruyt shares

Corporate sustainability

163 SDG 2 - Zero hunger

166 SDG 3 - Good health and well-being

170 SDG 6 - Clean water and sanitation

173 SDG 7 - Affordable and clean energy

177 SDG 8 - Decent work and economic growth

184 SDG 12 - Responsible consumption and production

191 SDG 13 - Climate action

196 Our indicators

Financial report

  1. Consolidated income statement
  2. Consolidated statement of comprehensive income
  3. Consolidated statement of financial position
  4. Consolidated statement of cash flows
  5. Consolidated statement of changes in equity
  1. Management responsibility statement
  2. Independent auditor's report

223 Notes to the consolidated financial statements

287 Definitions

TABLE OF CONTENTS

3

Word from the Chairman

In the 2020/21 financial year, the global pandemic had an unprecedented and far- reaching impact on our group, affecting areas from sales to production, logistics and administration. Faced with a succession of rapidly changing events, measures and regulations,

we showed incredible flexibility, creativity and solidarity as a group. In a rapidly evolving context, we continually reinvented ourselves and made the best of the situation, together with our customers, suppliers and other partners.

I am particularly proud that we managed to continue to fulfil our social role at all times and to maintain the food supply, with as our utmost priority the safety of employees and customers.

Fortunately, we were able to create some bright spots. For instance, we rewarded the efforts

of sales employees with an extra day off on

2 January, when more than 500 stores remained closed. We offered temporary employment to more than two thousand employees from hard- hit sectors. We also distributed free sewing packages, with which people made facemasks for healthcare at home en masse. Then there was home delivery of shopping to healthcare workers, free hygiene packs for youth camps and removable grips for shopping carts. And Dreamland, which arranged for many children to meet Saint Nicholas virtually.

As a group we had a decent financial year overall. We saw our group revenue increase by 3,7%, while we achieved a net result of 4,2% of revenue. The coronavirus pandemic required substantial expenditure on safety and remuneration, for example, and had a far-reaching impact on

our activities. While fuel sales fell sharply, our neighbourhood stores and online sales grew strongly. Even in these exceptional times, Colruyt remained true to its Lowest Prices promise and protected customers' purchasing power. (1)

During the last financial year, it was often all hands on deck, but we remained focused on the

long-termperspective, with EUR 469 million worth of investments in stores, distribution centres, innovation and sustainability projects. After a brief pause, we resumed the renovation and expansion of our store estate, with 18 new stores and 24 reopenings. Fiets! was renamed Bike Republic and right away opened three new stores. Our online shopping service Collect&Go doubled its capacity and tested future-oriented services such as mobile pick-up points, home delivery and delivery by neighbourhood volunteers. We are constantly reinventing ourselves as a retailer, with the launch of brand- new concepts such as the 'Deals' platform, for true discount hunters.

Also with a view to the future, we took the difficult but necessary decision to stop non-food sales via the Collishop webshop completely. This is because sustainable growth in a highly competitive non-food market requires us to specialise further in our non-food activities. We will retain our network of 400 physical collection points for other online orders. All employees affected remained employed within the group.

In addition to this, we continued to strengthen our family company via (increased) stakes in clothing chain ZEB and data specialists Daltix

INTRO | Word from the Chairman • Who are we? • Our vision on sustainability • COVID-19 • Management report • Key figures

4

and WeConnectData, as well as the acquisition of document specialist Joos Hybrid. Every one of these transactions is part of our long-term strategy to offer our customers relevant solutions in all phases of their lives.

Sustainable entrepreneurship is and remains the common thread running through all our activities. As far as agriculture is concerned, we continue to support our local producers and their craftsmanship. We invested in additional farming land and obtained a permit for a sea farm in the North Sea. In all of this, we are committed,

  1. The federal government's decision to ban promotions and discounts temporarily in March and April 2020 led to a general price increase in Belgium. This temporary increase in market prices was therefore not driven by retailers. After the ban on promotions was lifted, prices gradually fell. Before, during and after the ban on promotions, Colruyt steadfastly continued to guarantee its customers the lowest price for every product. In fact, in February 2021, Colruyt's average price level was lower than before the start of the pandemic at the end of 2019.

together with Belgian partners and in all transparency, to bring about sustainable change.

Another priority is to provide our customers with maximum information, to make it easier for them to make more sustainable choices. I am therefore proud that we are the first Belgian retailer to roll out the Eco-Score.That label gives an idea of the ecological footprint of products and appears together with the Nutri-Scorefirstly on our digital channels and gradually on packaging as well. Under the banner of 'Step By Step', we constantly inspire the public to consume and live more sustainably. For instance, we distributed tens of thousands of free card games that are fun for the whole family and highlighted the sustainable aspects of our products in large- scale media campaigns.

Meanwhile, we continue to invest heavily in the production and distribution of renewable energy. DATS 24 now offers private customers green electricity directly. We continue to pioneer the production of green hydrogen and its use for heavy transport. We were the first retailer in Europe to test a 44-tonne hydrogen truck and will take the final investment decision for an industrial hydrogen production site this year. The consolidation of our energy activities in holding

company Virya Energy results in considerable economies of scale and greater strength.

As last year, this annual report contains our sustainability reporting, in a more concise version centred around the Sustainable Development Goals of the UN. The full stories can be found on our website colruytgroup.com.

In this incredibly challenging year, we 'challenged' ourselves as a group on several occasions.

We frequently made a virtue of necessity and managed to identify opportunities. For example, we worked out new arrangements for our office staff allowing room for working from home. Even in complex, uncertain circumstances, we kept working together and assumed our social responsibility. As safely as possible and to the best of our ability.

I want to express my sincerest thanks for this, once more, dear colleague, customer, supplier or partner. You can all continue to count on Colruyt Group.

Jef Colruyt

CEO Colruyt Group

INTRO | Word from the Chairman • Who are we? • Our vision on sustainability • COVID-19 • Management report • Key figures

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Colruyt SA published this content on 30 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2021 16:38:05 UTC.