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- Auchan . com
2004 REPORT ON ACTIVITY CONTENTS 2004 STATEMENT Group notes. 4 EDITORIAL Persistence and growth. 2 ORGANISATION CHART 32 Auchan 2004 REPORT ON ACTIVITY HYPERMARKETS Giving themselves the resources for a long-term discount policy. 8 SUPERMARKETS Improving price positioning and the clarity of the product range. 18 IMMOCHAN Supporting the Auchan group in its development. 24 BANQUE ACCORD Offering financial products and services at competitive prices. 28 Free translation of a French language original. 2004 REPORT ON ACTIVITY Auchan 1 EDITORIAL In 2004 the Auchan Group reinforced its discount positioning and continued its policy of targeted growth. Persistence and growth, these two words highlight the policies and results for the year: in 2004, the Auchan group reinforced its discount positioning in the hypermarkets and supermarkets in all of the countries where it is established, and continued its policy of targeted growth. The turnover of the group, which has now reached 30 billion euros, rose by 4.7%. The contribution from abroad was a major factor in this rise, household consumption in France, Italy and Portugal being particularly sluggish. Despite an improvement in international results, the current net profit increased by only 2.6%, mainly due to the slowdown in European consumption and the impact of various regulatory measures on our margins in France. The Group share of net income for 2004, at 476 million euros, is less than that for 2003 which benefited from the significant claw-back of provisions. The cash flow, which measures the ability of the group to generate cash, increased by 7.8%. To summarise, in 2004 the group came out well in spite of this difficult climate. The business continued to expand through internal and external growth. As such, world-wide, 25 new hypermarkets and 13 supermarkets were opened. At the end of 2004, Auchan acquired the shares in the food-related activities of La Rinascente 346 631 12 30.0 hypermarkets (3) of which 309 are consolidated 2 Auchan supermarkets in 5 countries 2004 REPORT ON ACTIVITY countries (3) billion euros sales, net of value-added taxes (+4.7%) 40.5 billion euros banner sales including VAT (+5.1%) – 352 hypermarkets – 2,027 supermarkets and minimarkets 1,909 million euros EBITDA (operating income before goodwill amortisation, depreciation expense, income taxes and provisions, after employee profit sharing expense) (+1.0%) from its partner IFIL and signed an agreement for the sale of its activities in Argentina. The group is now clearly focused, mainly on the major markets of Western Europe, Central and Eastern Europe and Asia. Despite the significant acquisition made in Italy and the investment in internal growth, Auchan maintained a strong balance sheet with a level of borrowing that remained very reasonable, the gearing ratio (1) being 71%. We are approaching 2005 with an ever more customer-oriented strategic vision, and the improvement in their purchasing power. With teams that are becoming increasingly more professional and involved in playing out its social, commercial and economic plans, the business constantly ensures that it has a place in the life of the community. Aware of its economic responsibilities, it respects each environment and values the men and women whether they be customers, colleagues or partners. In March 2005, our commitment was rewarded in France by ASMEP (2). Such recognition of our efforts surely vindicates and increases the confidence that our family and employee shareholders, as well as our bondholders, have in the wisdom of their choice of investments. This award also acknowledges the vast amount of work achieved by the 155,000 employees of the business. I am aware that the coming two or three years may be tough and decisive and, in the knowledge that they will continue to face up to these challenges, I should like to take this public opportunity to express my heartfelt gratitude to them. CHRISTOPHE DUBRULLE, CHAIRMAN OF THE BOARD (1) Net debt / equity capital. (2) Association des moyennes enterprises patrimoniales (Association for Medium-sized Family Businesses). (3) Includes the Argentine activities sold to the San José group in the first half of 2005. 637 million euros Income from ordinary activities after taxes (+2.6%) 476 1,375 71 % million euros Group share of net income (– 17.2%) million euros income from operating activities excluding non-cash revenue and expense (+7.8%) debt/shareholder’s equity ratio (financial debts less cash and marketable securities) 155,000 employees (average workforce as full-time equivalent) 2004 REPORT ON ACTIVITY Auchan 3 2004 STATEMENT 977 13.3 million customers (till receipts) in the hypermarkets and supermarkets in 2004. billion items sold by the hypermarkets and supermarkets in 2004. Group notes A strengthened commercial dynamism With the exception of China, Russia and Spain, 2004 was marked by economic sluggishness in the majority of the countries where the group is present. In France and in Italy, as well as in Portugal and Taiwan, the stores had to face a slow-down in consumption and increasingly aggressive competition. Everywhere, the chains emphasised the discount policy, pursued for three years now, and retained their leading places in terms of price positioning. The customers appreciated the low-price initiatives, launched in particular in Italy, Spain and France and accompanied by strong promotional offers. Over the past year, the latter have been increasing in number, coming into the Group’s hypermarkets and supermarkets and purchasing a growing number of items. On the other hand, the value of the average basket has been following a downward trend. Work on refining the product ranges has continued, the objective being to meet the expectations of all customers. The ranges of deep discount and economy products have been strengthened, as have products carrying the Auchan brand. In a climate of weakening consumption, these confirm their success. 2004 saw the launch of Auchan products in China. Favouring partnerships with local SMEs, stores are also offering an increasingly wide selection of regional products, some of which are under their own brand, for example in Italy. Moreover, in France, Spain, Italy and Portugal, the chains are developing product ranges sourced from agricultural supply lines. Strict and prudent management Inseparable from the discount policy operated by the business, measures to reduce costs and optimise investments have continued to be applied. The prudent financial policy adopted by the Group has enabled it to retain its good rating level awarded by the rating agency Standard & Poor’s. At the end of 2004, the ratio of borrowing to shareholders’ equity was 71%. Pursuing its objective of diversification of its funding sources, at the end of 2004 the Group issued a syndicated loan for the sum of 1 billion euros. This operation, 4 Auchan 2004 REPORT ON ACTIVITY Intensification of the discount policy. involving 18 banks, served to refinance the existing credit lines in advance and at a lower cost. The Banque Accord also kept the marks awarded to it by Standard & Poor’s in 2002. For the 2nd consecutive year, it issued three debenture loans, for a total sum of 200 million euros. At the start of 2005, it signed a syndicated loan for 500 million euros, for the general funding of its requirements. A policy of empowerment and a constant quest for professionalism 2.55 million hours of training given in 2004. Issue of a syndicated loan for 1 billion euros. 97,000 employee shareholders holding 15.5% of the Group capital. In keeping with its values, the company encourages professional development among its employees through a strong policy of empowerment. Due to its greater closeness to its customers, the approach of decentralisation and strengthening of autonomy is contributing to improving business performance. A major operation to improve the professionalism of the workforce has been carried out. Training has continued to intensify, in particular with regard to e-learning, the search for opportunities for synergy and the creation of “hands-on” training workshops. In this way, 2.55 million hours of training have been provided within the four divisions, i.e. nearly 400,000 more than in 2003 (+18.4%). These investments helped to increase internal promotion, encouraged by the business. The fruits of these efforts to improve the professionalism of employees have been the gains in productivity that have contributed to the discount policy pursued by the business. New internal opinion polls to assess staff satisfaction and expectations have been carried out for the second time by Alcampo in Spain and Banque Accord in France. The voluntary policy in support of the integration of disabled persons was pursued in Europe and China, usually in partnership with specialised agencies. Finally, the Group has continued to encourage and expand shareholding by personnel. It is currently being studied for China, Russia and Italy. At the end of 2004, over 97,000 employees in six countries were shareholders through the Valauchan mutual trust fund and held 15.5% of the Group capital. A clear structure based on business divisions The new legal structure of the Group, which came into effect at the General Meeting of shareholders in May 2004, has enabled the definition of a clear and lasting structure based on businesses. The holding group, Groupe Auchan SA, henceforth covers the four trading sectors of the business: hypermarkets (Auchanhyper), supermarkets (ISMS or Auchansuper), Immochan and Banque Accord. In Italy, following the buy-out of the foodrelated activities of La Rinascente, the Sma supermarkets rejoined the ISMS supermarket division and the 51% holding in Italian shopping malls (G.C.I.) was integrated into the real estate business. Moreover, all of the import-export activities (International Commercial Agency,Trading company in China, liaison offices) were reorganised: optimisation of the processes of purchasing, supplies and logistics, from the production zones up to the shelves, enabled us to ensure the best prices for customers. IRTS, the international support services company created at the end of 2002 and held equally between Auchan and Casino, became fully operational. It developed new services aimed at suppliers: data sharing (selling of international statistics) and business plan (sharing of strategic objectives and definition of joint action plans). A targeted growth strategy In 2004, favouring expansion across Europe to Russia, China and Morocco, the Auchan Group continued its strategy of the last three years. A major operation of external growth was carried out in Italy and the policy of internal growth was strengthened. Globally, the number of integrated stores thus increased by 25 hypermarkets, of which 16 are consolidated, and by 13 supermarkets. The Group consolidated its positions in Europe. In Italy, the Auchan Group bought out from the IFIL Group (its partner since 1997) its shares in the food activities of La Rinascente. Grouped within Società Italiana Distribuzione Moderna S.p.A, this comprises the Auchan hypermarkets, the Sma supermarkets, 50% of the d.i.y. (SIB S.p.A) and 51% of Gallerie Commerciali Italia S.p.A. Alongside this, in March 2005 Auchan and IFIL proceeded with the sale of the non food-related activities of UPIM and La Rinascente to a consortium composed of Investitori Associati SGR S.p.A, DB Real Estate Global Opportunities IB L.P, Pirelli Re S.p.A and the Borletti family. The operation is expected to be finalised between now and June 2005. In addition, expansion within the countries of Europe has continued to rely on sustained internal growth. Ten hypermarkets were opened, half in Western Europe and half in Central and Eastern Europe. As for the number of supermarkets, in Europe this grew by 72 stores: of these eight are integrated and 64 are franchised, in Italy and France. Supporting the expansion of the chains, Immochan and Banque Accord also increased their presence in Europe: the real estate subsidiary increased its number of shops by 300, the majority being in Italy, France and Russia. For its part, in France Banque Accord bought out the consumer credit activities of the Egg Bank and continued the roll-out of its charge cards, launching the Accord card in Hungary and the Auchan MasterCard in Italy. In Morocco, the parallel development of the two store formats was continued: a Marjane hypermarket, the 10th in the chain, and five Acima supermarkets were opened in the course of the year. In continental China, in the Shanghai and Beijing regions, Auchan accelerated its expansion by opening four stores, bringing to 11 the number of hypermarkets in the chain. In Taiwan, the number of hypermarkets was increased by two, bringing the number of stores to 19, 14 of which are consolidated. In Argentina, because of the limited prospects for expansion in a disrupted environment, the business was not in a position to ensure a competitive and profitable presence there over the long term. The Group took the decision to sell its three hypermarkets, together with their shopping malls and land reserves, to the international Spanish group San José. 25 hypermarkets and 13 supermarkets opened in 2004. A policy of sustained internal growth. A company committed to its environment The Company endeavours to build responsible commercial practices and, in 2004, developed its Code of Business Ethics, integrated into the large import vendor listing contracts. 175 social audits have been carried out since 1999, of which about 60 were in 2004, in about a dozen countries. 2005 will see an acceleration in this initiative: the number of audits will be doubled. Actions in support of environmental protection were intensified: integrated waste management, energy savings and the adoption of more environmentally-friendly carrierbags with a reduction in the number handed out (Auchan and Atac in France, Alcampo in Spain). Immochan defined an environmental quality charter for its commercial sites and is ensuring the optimal utilisation of natural resources. In wishing to play its role as a socially-aware company to the full, the Group is also leading actions of solidarity, at a local level on the initiative of the stores, nationally or in co-ordination between the chains. Auchan in France and Hungary, Marjane in Morocco, and Immochan produced their 2005 greetings card for the benefit of SOS Children’s Villages in Imzouren, a Moroccan village devastated during the earthquake of February 2004. After the tsunami, the Group similarly gave its support to the people of Sri Lanka, making an initial emergency relief contribution to the Red Cross to fund the setting up of a medical unit. Finally, the chains have continued their activities to support children and young people, especially in Spain, Italy, Poland, Portugal and France, through the Fondation Auchan pour la jeunesse (Auchan Youth Foundation). Around sixty social audits carried out in 2004. 2004 REPORT ON ACTIVITY Auchan 5 LOCATION The Auchan Group on 31 December 2004 • 346 hypermarkets of which 309 are consolidated • 631 supermarkets • 30 billion euros sales, net of VAT • 12 countries FRANCE 120 Auchan hypermarkets •including 3 Les Halles d’Auchan and 1 La Cave d’Auchan 14.5 billion euros consolidated turnover excluding tax 5 hypermarkets associated with the Schiever group 412 Atac supermarkets •of which 270 are integrated, 59 franchised and 83 associated with the Schiever group •120Immochan shopping centres Accord •2.26Banque million customers • 68,000 employees S PA I N Alcampo hypermarkets •3.145billion euros consolidated turnover excluding tax Sabeco supermarkets •and122 101 associated mini-markets •45 shopping centres Immochan PORTUGAL • 16 Jumbo hypermarkets Immochan •16 shopping centres Banque Accord •Crediplus • 5,500 employees Banque Accord •AccordFin • 18,000 employees LUXEMBOURG • 1 Auchan hypermarket Immochan •1 shopping centre • Average workforce as full-time equivalent. 6 Auchan 2004 REPORT ON ACTIVITY 650 employees I TA LY 40 hypermarkets •of which 39 are Auchan 2.8 billion euros consolidated turnover excluding tax(1) • 1,364 Sma and Cityper supermarkets of which 211 are integrated, 505 franchised and 648 associated 2.4 billion euros consolidated turnover excluding tax(1) • 149 Upim stores (2) and 18 La Rinascente stores(2) • 47 Bricocenter stores and 10 Leroy Merlin stores Gallerie Commerciali Italia •42 shopping centres (3) Banque Accord •Accord Italia • 24,000 employees C O N T I N E N TA L C H I N A • 11 Auchan hypermarkets Immochan •11 shopping centres • 4,800 employees POLAND TA I W A N M O R O C C O (4) • 10 Marjane hypermarkets • 16 Acima supermarkets Immochan • 10 shopping centres • 3,500 employees • • 12 Elea supermarkets Immochan •19 shopping centres 19 Auchan hypermarkets Banque Accord •Accord Finance • 3 Auchan hypermarkets • 700 employees (6) • 4,300 employees • 9,700 employees HUNGARY A R G E N T I N A (5) • 19 RT Mart & Apic hypermarkets Immochan •19 shopping centres RUSSIA • 9 Auchan hypermarkets Immochan •8 shopping centres • 6 Auchan hypermarkets Immochan •6 shopping centres Banque Accord •Accord Magyarorszàg • 6,500 employees • 4,500 employees (1) 100% turnover, consolidated at 50% over the major part of the year. (2) Sale in March 2005 of these activities to the consortium comprising Investitori Associati SGR S.p.A , DB Real Estate Global Opportunities IB L.P , Pirelli Re S.p.A and the Borletti family. Finalisation expected before 30 June 2005. (3) G.C.I. held at 51% by Immochan International and 49% by Simon Property Group. (4) The Group is present in Morocco through the Marjane subsidiaries (Société Cofarma renamed Marjane Holding in June 2004) and Acima, owned at 51% by ONA and at 49% by Auchan. (5) Sale of the Argentine activities during the first half of 2005 (6) Of which 14 are consolidated. 2004 REPORT ON ACTIVITY Auchan 7 HYPERMARKETS HYPER 8 Auchan 2004 REPORT ON ACTIVITY “In 2004, the discount policy pursued in every country began to bear fruit. In a sometimes unfavourable economic climate, our chains stood up well; they succeeded in raising their turnover and increasing their number of customers. The increase in the number of stores also continued, at a faster rate than during the previous year. Apart from an operation of external growth in Italy, 25 hypermarkets were opened during the course of the year. In every area, our policy relied on the strong empowerment and professionalisation of teams.” Christophe Dubrulle, Chairman and Managing Director MARKETS (1) Sale of Argentine activities during the first half of 2005. 23.6 billion euros of consolidated turnover excluding tax in 2004 12 25 countries(1) new hypermarkets in 2004 of which 16 are consolidated 346 117,000 79 % hypermarkets(1) (of which 309 are consolidated) on 31 December 2004 employees (average workforce as full-time equivalent) of the Group turnover achieved by the hypermarkets 2004 REPORT ON ACTIVITY Auchan 9 HYPERMARKETS 710 10 million customers (till receipts) in 2004. billion items sold by the hypermarkets in 2004. 25 hypermarkets opened in 2004. Dynamic expansion ■ In spite of a difficult economic and consumer climate, especially in the two most significant countries for the business, France and Italy, 2004 was a relatively satisfactory year for the hypermarkets division. On the increase, its turnover was 23.6 billion euros with some excellent performances in Spain, Central and Eastern Europe, China and Morocco. 94% of this was from Europe (62% of it achieved in France) and 6% from Asia and the other countries. This accounts for 79% of the Group turnover. ■ The year was marked by a major external growth operation in Italy, with the buy-out from the IFIL Group of its holding in the food-related activities of La Rinascente, which included in particular the 39 Auchan hypermarkets. The number was further increased, mainly through internal growth, by 25 hypermarkets, of which 16 are consolidated. Ten stores were opened in Europe, two of which were acquired in France to become Les Halles d’Auchan. Two Auchan hypermarkets were opened in Italy and one Jumbo in Portugal. With five more established, Poland (1), Hungary (1) and Russia (3), there are now 34 hypermarkets in these three countries. In continental China, Auchan reinforced its presence in Shanghai, where two stores were opened, and in Beijing with a 2nd hypermarket. An 11th store was also inaugurated in Nanking. In Taiwan, the Taitung store, previously under a management and supply contract, was bought up. A 19th store was opened, in Taipei, under a management and supply contract with RT Mart Taiwan. Marjane established its 10th Moroccan outlet, in Tetouan. ■ In every country, the drive to reduce the costs involved in investment and openings was continued, to provide the company with the long-term resources needed to maintain the discount policy it began three years ago. A discount strategy for the long term ■ The slow-down in consumption and the reduction in purchasing power, particularly in certain countries of the European Union, have obliged the chains to continue the efforts made over the last few years to follow an aggressive pricing policy. 10 Auchan 2004 REPORT ON ACTIVITY 62% of the divisional turnover achieved in France. 10 hypermarkets were opened in Europe. In France, in a difficult climate, the year saw the signing of the Sarkozy agreements on June 17, including in particular the lowering of prices of branded products by an average of 2%, half borne by the distributors and half by the producers. In all countries, the chains worked on improving their price image and reviewed their product ranges in order to offer a wider range of economy and deep discount products: their contribution to the turnover and to the number of items sold is increasing, confirmation of their success. ■ The promotional policy was intensified. The “low price” campaigns in Italy, Hungary, China and Morocco and the “1 euro” campaigns in the countries of the European Union were a hit with the customers. The number of initiatives to respond to customer expectations also multiplied. In France, “self-discount” sections were created: these are for the purchase of low price everyday products, especially in bulk, pick and mix or in very large package sizes. During 2005, they are in the process of being deployed in all of the stores. This “discount” strategy, clearly now a long term concept, has borne fruit: the number of customers grew more rapidly than in the previous year, whilst the number of items sold increased. At the same time, Auchan has made sure that it continues to offer a quality range, notably continuing its activities in the area of food safety. Empowered and professional teams ■ This year, there has been a major effort in terms Nearly 80% of employees received at least one training course in 2004. of team empowerment. In order to provide the best solutions for customers, the emphasis was on decentralisation of decision-making. Store managers, sector and section heads and employees were given as much autonomy as possible in managing their area of trade, and encouraged to use their initiative. This approach of “participatory management” will be extended in 2005. ■ A major area of the human resources policy, the expansion of training has improved the professionalism of the teams. During the course of the year, nearly 80% of employees attended at least one training course. In-store self-training was expanded and e-learning will be deployed in Italy in 2005, after getting underway in Poland, Spain, France and Portugal. The strong policy on internal promotion was maintained. The rate of this rose sharply in all of the chains, particularly in Italy (47%) and in Spain (37%). In order to reduce job insecurity, the chains favour permanent contracts. These account for 83% of the workforce, i.e. +2 points compared with 2003. With the noticeable reduction in absenteeism (–3.7%), the improvement in professionalism contributed significantly to the efficiency of the company, allowing it to reinforce its policy of low prices. ■ Internal employee opinion polls for each chain, on average every two years, enable us to identify areas for improvement and to move to concrete actions. In 2005, new surveys will be instigated in Italy, Taiwan and, for the 2nd time, in France. A sustainable business ■ The chains have continued to operate an active environmentally-friendly policy, in particular by working to reduce the impact of their activities. In 2004, action plans were launched in Spain and Portugal and the policies were reinforced in France. Certification of quality to the environmental standard ISO 14 001 was obtained for Csömör, the first Hungarian store and the 8th in the group to be thus certified. The close partnership with producers has continued. In Hungary, for example, Auchan is working with 1,000 local businesses, while in Portugal the chain is actively promoting the expansion of export of products from 120 suppliers. The role of socially-aware company is also being played out by the chains and stores with actions of solidarity aimed at disadvantaged persons and the young, for example in Portugal, Spain, Poland and, through the Auchan Youth Foundation, in France. FRANCE 120 Auchan hypermarkets ■ Slight growth in turnover in a climate of slowing consumption, disrupted by the entry into force of the Sarkozy agreements: average reduction by 2% of the prices of 3,000 major brand products, of which 1% borne by Auchan. Increase in the number of customers and in the number of items sold. ■ Work on prices intensified: ● Product ranges reviewed to meet the growing demand for deep discount and “economy” products. More than 150 listed “Budget Booster” products created in 2004. ● Lowering of prices on “economy”, “Budget Booster” and Auchan brand products. ● Start-up of “self-discount” sections where customers can serve themselves the desired quantity of everyday products at discount prices, in bulk. Deployment in progress in all of the stores in 2005. ● Aggressive promotional policy: “Over 1,000 products at 1 euro” and “Save 25% on brand products” operations. ■ Confirmed success of the Waaoh loyalty programme: 4.6 million customers carry the card. ■ Continuation of the policy of partnership with SMEs. Proposal to 613 of them to remove the “back margins” (“marges arrière”). Auchan again given an award by the Grès d’Or recognising the best initiatives for partnerships between SMEs of the Fédération des Entreprises et Entrepreneurs de France (FEEF – French Federation of Businesses and Entrepreneurs) and retail industry. ■ Launch of quality certification for fruit and vegetable platforms by SGS. 38 commitments to service duly checked and audited. ■ Creation of new services: ● On trial in three stores, “Minute tills”: a fast self checkout system, aimed at basket only customers. ● Banque Accord areas in eight stores. 14.5 billion euros turnover achieved in 2004 by the hypermarkets in France. ■ Acquisition of two stores in the Paris region: Opening of 2 Les Halles d’Auchan stores. Intermarché in Meaux and Champion in les Mureaux. Transfer to the “Les Halles d’Auchan” chain, the discount food distribution concept for the Group. Launch of self-discount sections. 4.6 million customers holding the Waaoh card. 2004 REPORT ON ACTIVITY Auchan 11 HYPERMARKETS ■ Refurbishment or extension of about ten stores, in Villeneuve d’Ascq and Louvroil (Nord), Biganos (Gironde), Montivilliers (Seine-Maritime), Pérols (Hérault), La Défense (Hauts-de-Seine), Schweighouse (Bas-Rhin), Toulouse (Haute-Garonne), Olivet (Loiret), Grasse (Alpes-Maritimes). ■ Integration of the IT and organisational systems into Auchan France, in order to reduce operating costs. ■ Continuation of efforts in the area of training: -17.4% in staff turnover and -8% absenteeism in 2004. +50% in disabled staff over 3 years. +24% compared with 2003, i.e. nearly 1 million hours given. 86% of employees attended at least one training course during the year. ■ Improvement in productivity: significant reduction in staff turnover (-17.4%) and absenteeism (–8%) which puts them at 10% and 7.9%. ■ 5,600 posts filled in 2004, of which 51% were by transformation from temporary to permanent contract and 500 managers recruited. ■ Internal promotion: nearly 30% of managers are former employees. ■ Establishment for each member of staff of a personal statement, a complete picture of their professional situation. ■ Acceleration of the policy of support for the employment of disabled persons: at the end of 2004, more than 1,900 disabled employees, i.e. +50% in three years. Signature, in February, of a partnership agreement for a period of two years with the Agefiph(1). ■ Creation of a sustainable development department, attached to the public relation department. 14.4% less carrier bags handed out at checkout. Joined Global Compact. Definition of 17 “sustainable development” indicators. ■ New undertakings to help the environment. Creation in all of the stores of “environment units” intended for the collection of carrier bags and batteries and “green check-out”, reserved for customers using solutions other than conventional carrier bags. Reduction by 14.4% in the number of carrier bags handed out at checkout in 2004. ■ Strong social commitments: ● 20 projects supported by the Auchan Youth Foundation in 2004. ● Launch of Braille labelling of more than 1,000 Auchan brand products rewarded by the first “Janus of health” presented by the French Design Institute and by the Alliances association. ● Support for the Red Cross after the Asian tsunami: payment of initial emergency aid of 50,000 euros and collection from staff and customers of 58,000 euros. ● Auchan partner and co-founder of the “heart and arteries” Foundation for research into and prevention of heart and arterial diseases. > www.auchan.fr (1) Association de gestion des fonds pour l’insertion professionnelle des personnes handicapées - Fund management association for the professional integration of disabled persons. 12 Auchan 2004 REPORT ON ACTIVITY LUXEMBOURG 1 Auchan hypermarket ■ Consumption still sluggish after the economic slowdown seen since 2003. Severe competition from the hard-discounters. ■ Voluntary pricing policy. Holding its place as the leader in terms of price positioning. Expansion of the deep discount product range and organisation of promotional operations. ■ Product ranges expanded: wider choice of deep discount items as well as national and top-of-the-range brands: organic, Italian and Portuguese products, with special “Products from the South” initiatives. ■ Work on stock management. New management tool for staple goods. ■ Participation in Téléthon, in partnership with the Lyon’s Club, as well as in Bazar International, a solidarity operation led by the foreign communities of the Grand Duchy. > www.auchan.lu SPAIN 45 Alcampo hypermarkets ■ Turnover increasing: Good performances by the stores despite the slight slowdown in consumption in the 2nd half of the year and the increasing intensity of competition, particularly in Vigo, Logroño and Madrid. ● Increase in the number of customers and in the number of items sold. ■ The discounting policy continued. ● At the end of 2004, reinforced position of the chain as the least expensive in the country, including in the face of the hard-discounters. ● Expansion of the range of deep discount products: 500 items created in 2004. ■ Widening of the range of Auchan brand products: 650 items created in 2004. ● ■ Reinforced approach to quality. “ISO 9001: 2000” certification obtained by the stores in Grenada and Motril. Eight hypermarkets certified by the end of 2004; objective, to achieve 100% certification of stores. ● Expansion of the range of products from supply lines: at the end of 2004, more than 80 Auchan Controlled Production products. ■ Launch of innovative and differentiating products: ● Trial of the “self checkout” system in the Leganés store (Madrid). ● Fixed line telephone service at a reduced price for the holders of the Alcampo card. ● “Works on the house” in partnership with Reparalia, leading company in the sector: house maintenance services carried out at the lowest prices. ● “Club Joven Team”, aimed at children from 11 to 15 years old. ● ■ Enlargement of the La Laguna shopping centre. ■ Opening of three filling stations in the Alcampo 3.1 billion euros turnover achieved in 2004 by the hypermarkets in Spain. Alcampo, No. 1 chain in Spain in terms of price positioning. 8 hypermarkets certified "ISO 9001: 2000" in Spain. ■ Continuing to lead activities in support of disadvantaged people, children and the environment. ● Regular support for numerous foundations, such as IUVE, Aldeas Infantiles and, with the Rik & Rok club, Save the Children for its programme in support of children in hospital. ● Participation for the 5th consecutive year in the “Un Juguete, una ilusión” with the national radio station (RNE) and the Crecer Jugando Foundation. ■ 200 Auchan brand products labelled in braille. Objective: to extend the approach to all of the basic products in 2005. ■ New actions to help the environment. ● Integrated waste management plan in all of the stores. ● Adoption of transparent titanium-free carrier bags, better for the environment. ■ Promotion of fair trade, in partnership with Intermon Oxfam. > www.alcampo.es chain. ■ Creation of a staple goods hub, in the Barcelona province. ITALY ■ In 2005, transfer and enlargement of Castellon 39 Auchan hypermarkets and opening of a hypermarket in Albacete (Castilla La Mancha). ■ Reinforcement of actions to support the integration of disabled persons. With 2.4% of disabled employees, Alcampo is one of the only companies to exceed the minimum legal rate of 2%. ● Agreement with the Adecco Foundation to encourage the professional and social integration of disabled persons and female victims of domestic violence. ● Opening in Nalón of the 5th service station managed solely by disabled persons. Initiative developed with Sociberica, an agency specialising in the employment of disabled persons. ■ 2nd internal opinion poll. All employees surveyed. In 2005, launch of the 3rd poll. ■ 37% of section heads recruited through internal promotion. ■ In 2005, creation of “development of autonomy” progress groups. 2.8 billion euros turnover achieved in 2004 by the hypermarkets in Italy. ■ Good growth in turnover and acquisition of market shares. Increase in the number of customers and in the number of items sold. ● Success of the marketing offensive conducted for the last three years to improve price positioning: 35 stores out of 39 in 1st place in their customer catchment areas. ● Lowering of prices during the course of the year. ● Intensification of the promotional policy: renewal of the major campaigns such as “40 days” and launch of the first “Low Price” operations. ● Success of own-brand products: 1 product out of every 4 sold is a “Budget Booster” or Auchan brand product. Increasing turnover and widening of the range: 800 “Budget Booster” products and 4,400 Auchan products. ■ Promotion of regional products. ● Place provided for local products on the shelves. ● Promotional campaigns for products from Sicily, Sardinia and Tuscany and the attendance by Auchan and Sma at the “Expo dei Sapori” gastronomy and wine trade fair. ● Expansion of the “I Sapori delle regioni” product range. ● 2004 REPORT ON ACTIVITY Auchan 13 HYPERMARKETS Launch of the Auchan Mastercard Accord card in Italy. ■ Policy on innovations and services: Launch of the Auchan Mastercard Accord card. ● Success of the self checkout system, extended to 22 stores. ● Optician areas in 19 stores. The first “Gold” departments, in Turin and Cuneo. ● Trial of “bulk” purchase areas at Cinisello Balsamo (Milan) and a discount section at Casamassima (Bari) for the sale of remaindered products and stock clearance. ● ■ Buy-up from IFIL of its share in the food-related activities of La Rinascente, including in particular Buy-out from IFIL of the food division of La Rinascente in Italy. the 39 Auchan hypermarkets, now almost wholly owned by Auchan. ■ Opening of a hypermarket in Modugno (Bari) and of the 4th store of the chain in the Piedmont region, in Cuneo. ■ Extension of the Sassari store (Sardinia). ■ Creation of a warehouse in Melfi (Potenza) for the supply of staple goods to the stores in the centre and south of Italy. ■ Planned opening of three hypermarkets in 2005, in Cesano Boscone (Milan), Fiuminicino (Rome) and Vola (Naples). ■ Buy-up from IFIL of its share of the DIY activities of La Rinascente. ■ Agreement for the sale of the Upim stores and Opening of two hypermarkets in Italy. 14 Auchan the La Rinascente department stores signed on March 13, 2005, with the consortium consisting of Investitori Associati SGR S.p.A, DB Real Estate Global Opportunities IB L.P, Pirelli Re S.p.A and the Borletti family. Expected to be finalised before June 30, 2005. ■ In 2004, opening of seven Bricocenter stores, of which one is affiliated, and of one Leroy-Merlin. In 2005, planned inauguration of three Bricocenters. ■ 460 jobs created in opening the Modugno and Cuneo stores and the warehouse in Melfi. ■ Increased training. Over 150,000 hours provided, an increase of 34% compared with 2003. Launch of in-store e-learning. ■ Significant reduction in absenteeism (– 17%) and big increase in internal promotion: 47% of section heads by this route. 2004 REPORT ON ACTIVITY ■ Preparation for employee shareholder scheme. ■ In 2005, internal employee opinion poll. ■ Environmental policy: reduction in polluting emissions by optimisation of logistics and work in progress on decreasing the number of plastic bags handed out at the checkouts. Objective: – 10% in 2005. ■ For the second year running, great turnout of teams to support the Telethon: 810,000 euros raised. ■ Partnership with CTM AltroMercato, to offer a range of fair trade products. > www.auchan.it PORTUGAL 16 Jumbo hypermarkets ■ Increase in the number of customers despite a still difficult economic climate. Purchasing power down and increased pressure from the competition affecting some stores especially in Lisbon and Setubal. ■ Improvement in price positioning. The majority of the stores ranked 1st or 2nd in their customer catchment areas. Increased range of Budget Boosters and promotional offers. ■ New initiatives on food safety. ● Expansion of ranges of organic products (100 listings) and of supply lines “Vida Auchan” (50 listings). ● For fresh produce, the “Auchan seal of approval”, based on hygiene and traceability criteria awarded to 225 suppliers. ● Setting up of a health and safety committee in each store. ● Certification of fresh produce departments awarded by the SGS/ICS to Maia, the 2nd store to be certified along with Almada. ■ Support for the development of national exports: promotion of Portuguese products both in the stores and in the Auchan hypermarkets in Luxembourg and France. Close collaboration with 120 exporting suppliers. 34 Auchan hypermarkets in Poland, Hungary and Russia, 5 being opened in 2004. ■ Inauguration of the 16th Jumbo hypermarket ● Widening of the range of fresh products, particularly the fish counter and fruits. ● Confirmation of the success of the loyalty programme started in 2003. in Vila Real, in the north-east of the country. ■ Renovation of the store in Setubal. ■ Opening of five household goods shops next to the hypermarkets, under the Loja Box name, developed by Jumbo. ■ Opening of a store in Coimbra planned for 2005. ■ Opening in Walbrzyc of the 3rd hypermarket of Schiever Polska, a subsidiary owned at 50% ■ Over 152,000 hours of training dispensed. 76% of employees attended at least one training course during the year, i.e. 12% more than in 2003. ■ 200 jobs created through the opening of the Vila Real store. ■ Marked increase in internal promotion: 43.5% of section heads recruited by this route. ■ Policy on the integration of disabled persons continued. Auchan Portugal received an award from the Institute for Employment and Professional Development. Inauguration of the 16th Jumbo hypermarket in Portugal. by Auchan and 50% by Schiever. ■ Creation of Auchan service stations in three stores. ■ Roll-out of a new IT system (Range Listing Management) for central purchasing. ■ In 2005, opening of one store planned. ■ Intensive work on the stabilisation and professionalism of teams, notably through training: more than 244,000 hours provided. Expansion of e-learning. ■ Good rise in internal promotion: nearly 30% of section heads by this route. Two thirds of store managers are Polish. Objective: to reach 100% Polish managers. ■ Continuing actions of solidarity aimed at children: 40,000 children helped through 250 institutions. ■ Solidarity actions led by the stores, towards ■ Launch of an environmental action plan in all disadvantaged persons and children; financial assistance provided to orphanages. of the stores. 1,700 employees given awareness training. ■ More than 300 Auchan products given labels in braille. > www.auchan.pt HUNGARY 9 Auchan hypermarkets POLAND 19 Auchan hypermarkets ■ Continuation of the pricing policy in an economic climate that remained difficult: high inflation after the country joined the European Union and sluggish consumption despite a fall in the level of unemployment. ● Faced with the concentration of players and growing competition from the hard-discounters, Auchan was ranked 1st in terms of price positioning by the weekly Polityka and the daily Fakt. ● Expansion of deep discount products. ■ Position of the chain confirmed as the least expensive in the country, in a climate of falling Auchan Poland ranked 1st in terms of price positioning. consumption during the second half and heightened competition, especially in Budapest and Székesfehérvàr. ● Strong promotional offers: “Auchan days” providing special offers for one day, regular campaigns on sports items, etc. ● Success of deep discount products: growing share of turnover and number of items sold. ■ Roll-out of the Accord card, in all stores. ■ Working closely with more than 1,000 suppliers, local and regional. 2004 REPORT ON ACTIVITY Auchan 15 HYPERMARKETS Opening of a 9th hypermarket in Hungary, the 3rd in Budapest. Restructuring into divisions in Hungary. ■ Leading position strengthened in Budapest, with the opening of a 3rd store in the capital at Alberfalva; 7th establishment of the chain in the conurbation. ■ New organisation into divisions in order to bring the benefits of consistency and proximity between central services and the stores. ■ Opening of the first Auchan service station in Soroksar, with discount prices. Six stations planned for 2005. ■ At the end of 2005, planned opening of a 10th store in Solymar, to the north-west of Budapest, in order to strengthen the leading position of the chain. ■ Reinforcement of the empowerment policy. ■ 400 jobs created in Alberfalva. ■ 121,000 hours of training provided, i.e. +25% compared with 2003. Partnership with technical colleges for the training of butchers and bakers. ■ Award of ISO 14 001 environmental quality certification for the Csömör store. > www.auchan.hu RUSSIA 6 Auchan hypermarkets ■ Chain known for its low prices. ■ Despite a high level of inflation, consumption Nearly 3,000 jobs created in Russia. stimulated by the lowering of taxes. Auchan among the first chains to pass this on this reduction to its selling prices. ■ Close work with local suppliers. ■ Opening of three stores in Moscow: two hypermarkets on the outskirts –to the north-west, in Krasnogorsk, and to the north, in Khimki– the third in the urban zone to the south-east, in Marino. In Russia, 100% of employees attended at least one training course in 2004. ■ Creation of 3,000 jobs, notably for the opening of the three stores. ■ Expansion of training: 205,000 hours provided during the course of the year, i.e. nearly twice that of 2003. 100% of employees trained during the year. ■ Employee shareholder scheme being studied. > www.auchan.ru 6 Auchan hypermarkets established in Moscow, of which 3 were inaugurated in 2004. 16 Auchan 2004 REPORT ON ACTIVITY 4 Auchan hypermarkets opened in China in 2004. CONTINENTAL CHINA 11 Auchan hypermarkets ■ Success of the discount policy. Reinforced position of the chain as the least expensive in all of the customer catchment areas. Rapid expansion of the range of “Budget Booster” products: more than 400 items listed. ■ Launch of Auchan brand products: 200 items listed. Objective to reach 500 by the end of 2005. ■ Acceleration of growth: opening of four hypermarkets. ● Strengthening of the position in Shanghai, with the setting up of two stores at Jiading and Minhang. ● Inaugurations in Nanking and of a 2nd store in Beijing (Kexing). ■ Deployment of the “Real Time” IT system in all stores, for stock management. ■ In 2005, inauguration in February of a hypermarket in Ningbo, 200 km to the south of Shanghai. Openings planned in Tianjin (150 km from Beijing) and Changzhou (150 km from Shanghai). ■ Creation of nearly 2,000 jobs, for the opening of the four new stores. ■ More than 234,000 hours of training provided (+72%), received by more than 85% of employees. ■ Internal promotion: all of the sector heads coming through internal promotion. Appointment of the first Chinese store manager, in Ningbo, opened in February 2005. 6 Chinese managers for 12 stores. ■ Initiative in support of the integration of disabled staff, in all of the stores. ■ Employee shareholder scheme being studied. ■ Local initiatives from the stores and partnership with the Red Cross, after the tsunami in South-east Asia. TAIW AN MOROCCO 19 RT Mart 10 Marjane* hypermarkets and APIC hypermarkets* ■ Chain ranked 1st in price positioning, in a climate of very lively competition. Success of deep discount products: 850 items listed, i.e. +40% compared with 2003. Objective: to reach 1,500 listed items by the end of 2005. ● In 2005, acceleration of the discount policy. Objective: to lower the prices of more than half of the products. ■ Reinforced policy on quality: ● Adoption of the international SGS and national CAS (Chinese Agricultural Standard) standards in all of the stores. ● Signing of a quality contract with suppliers. Audits conducted at 100% of suppliers. ● In 2005, launch of quality supply lines for fresh products. ■ Success of the loyalty programme: 95% of purchases made with the RT Mart card. ● Objective: reduce prices of over half of the products in 2005, in Taiwan. ■ Success of the pricing policy operated for the last two years. ● Increase in the number of customers. – Agressive promotional policy, with products being offered at prices between 10 and 30% lower than those of the competition. – Creation of a range of deep discount products, manufactured by about fifteen local businesses. ● Widening of the range of own-brand, Auchan and “Budget Booster” staple goods. ■ Reinforcement of the approach to quality. Plan to create supply lines for fruit, vegetables, fish and meat in 2005. ■ Inauguration of the 10th Marjane hypermarket, Opening of the 10th Marjane hypermarket, in Morocco. in Tetouan. ■ Three due to open in 2005: one in the spring in Meknès and the other two at the end of the year in Casablanca Derb Sultan and Hay Hassari. ■ Acquisition of the hypermarket in Taitung, previously under management and supply contract, with RT Mart. ■ Opening of a hypermarket in the Taipei city centre (CityLink) under management and supply contract, with RT Mart. ■ Refurbishment of the store in Bitan: range reviewed to favour nearby customers; expansion of sections for fresh produce and staple goods. ■ At the end of 2004, total of 23 stores: 14 fully owned, 5 under management and supply contract and 4 under central purchasing membership contract. ■ In 2005, transfer of the Apic store in Anping into the RT Mart chain. ■ Priority given to the stabilisation of teams and to training, notably for new management tools. ■ In 2005, launch of an internal employee opinion poll. * Of which 14 are consolidated. ■ Increase in training: Sharp rise in the number of hours of training provided during the year (+92%). 74% of employees received at least one training session. 130 checkout and section heads were trained during the year at the School for Managers, set up in 2003. ● Launch of the School for Leaders aimed at sector and department managers. Training and roll-out to begin in 2005. ● New partnerships with schools: ESCA, CIMADIS (International Centre for Supermarket Management), ISTA, etc. ■ 270 jobs created, mainly for the opening of the Marjane in Tetouan. ● +92% hours of training provided in Morocco in 2004. ■ Support for the SOS Children’s Villages along with other chains of the Auchan Group: funding for a project in Imzouran, a village devastated by the earthquake. ■ Involved in the national campaign for solidarity “unis pour aider les démunis” (united to help the destitute) to help those affected following the earthquake in Al Hoceima. * The Group is present in Morocco through its subsidiary Marjane (Société Cofarma renamed as Marjane holding in June 2004), owned at 51% by ONA and at 49% by Auchan. 2004 REPORT ON ACTIVITY Auchan 17 SUPERMARKETS SUPER 18 Auchan 2004 REPORT ON ACTIVITY “The turnover for the supermarkets division continued to rise in 2004. Our chains retained their market shares in a highly competitive climate. They continued to follow the policy instigated two years ago, namely to improve price positioning and to streamline the range of products offered. This thrust for change, initiated in collaboration with the employees of the business, in which we must combine continuous improvement with operational performance, will be an area for concerted effort in 2005. 2005 will also see the opening of our sixth country, Russia, with the creation of the Atak chain.” Benoist Cirotteau, Chairman and Managing Director MARKETS 5.6 billion euros of consolidated turnover excluding tax in 2004. 5 2,027 countries supermarkets (631 of which are integrated, 564 franchised and 832 associated) as at December 31, 2004 29,400 19 % employees (average workforce as full-time equivalent) of the turnover for the Group achieved by the supermarkets 2004 REPORT ON ACTIVITY Auchan 19 SUPERMARKETS From strength to strength in six countries ■ Following three years of strong growth, in 2004 the supermarkets division saw a slowdown in the rise of its turnover. Set against a difficult climate with a decline in consumption, especially in France, Italy and Poland, the Group’s chains managed to retain their market shares and achieved their objectives in terms of results. The number of visits and items sold also continued to rise. In 2004, the turnover for the division came to 5.6 billion euros and represented 19% of that for the Group. ■ The number of supermarkets rose by 77 outlets (13 integrated, 3 franchised, 61 associated). Six of these were opened in France and two in Spain. In Morocco, Acima maintained its opening rate at five stores per year. Development of the franchise sector continued in both France and Italy. In the latter, a new master franchising agreement affecting 156 outlets was concluded. Likewise, in Italy, following the Auchan Group’s buy-up of Ifil’s share in the food-related activities of the La Rinascente Group, the Sma and Cityper supermarkets, including the Punto Sma mini-markets (211 integrated, 505 franchised and 648 associated) transferred from the hypermarkets division to the ISMS supermarkets division. ■ The supermarkets division continued to expand, especially in countries where the Group’s hypermarkets are already present, and 2005 will see the opening of its first stores in Russia. The Atak chain will see the light of day in Moscow in this year. Consequently, the supermarkets of the Group will now be present in six countries, three of which were entered in the last four years. ■ Lastly, in 2004, the supermarkets division reinforced its approach to optimising investment costs, thereby enabling the chains to maintain an aggressive marketing approach. A streamlined product range at the lowest prices In 2005, the first Atak supermarkets will open in Russia. +13 integrated supermarkets, +3 franchised and +61 associated in 2004. Setting up of “hands-on” training workshops ■ In 2004, the supermarkets pursued their policy, begun and progress a year ago, of improving price positioning and reviewing groups. the product ranges. To affirm their desire to offer the lowest prices, the chains increased their promotional activities and carried out an aggressive policy. In France, for example, prices went down on average by 2%. In Spain, Sabeco cut prices for 500 Auchan-branded items and at Cityper, in Italy, around 1,000 products came down in price in the last quarter. The chains extended their ranges to meet 20 Auchan 2004 REPORT ON ACTIVITY the growing demand for own-brand and deep discount products, particularly in France, Italy and Poland. “Budget Boosters” are becoming increasingly successful. Currently available in supermarkets in France, Spain, Italy and Poland, in 2005 these will also be offered in Morocco. With a view to ensuring better clarity of the product ranges on the shelves, the work already underway to review and refine the product ranges has continued and will be major area of work for 2005. ■ New trials have been carried out by the chains to take into account customer expectations and to provide the feedback process with regard to the continuous improvement of the discount supermarket concept. In France, Spain and Italy, stores have taken a more discount position by “staging” and simplifying the product ranges. Sales areas devoted to “bulk” purchases have been created in some stores. This approach, using trials, will continue in 2005. This was the case for a shop under the Easy Marché name, which experimented with a simplified store layout, in Meung-sur-Loire, France, at the beginning of the year. ■ Lastly, the chains have sought to increase their proximity to customers, by continually providing them with innovative services. Product quality and food safety also remained a chief priority. Constantly improving professionalism and performance ■ The drive for change undertaken by the chains can only be set in motion with the collaboration of the employees of the business. In order to identify the best practices and define the areas for progress, the synergies between the chains have been reinforced. To increase autonomy and responsibility, the emphasis was placed on training, especially by means of making hands-on training workshops widely available. Aimed at training the staff on every aspect of their trade, these were extensively rolled out in France. This year, they were set up in Spain, for fruit and vegetable sections. In all, 62% of the staff in the supermarkets division received at least one training session in 2004. The year also witnessed the proliferation of progress and initiative groups. In France, Atac instigated an action for change involving all staff and committing them to develop their autonomy and responsibility. Social involvement ■ Every supermarket gets involved in the life of its local community. When emergencies arise the chains are also able to react quickly. This was the case for Acima, 13 new integrated supermarkets in 2004. when the earthquake struck in Morocco, and for Sabeco after the Asian tsunami. The chains provide financial assistance to organizations like the Red Cross and Oxfam as well as for events such as the Telethon, in which Sma, in Italy, was the official partner for the third year running. Atac and Sabeco are particularly involved in supporting the integration of the disabled into the workplace. In France, the agreement at company level was renewed for the period covering 2004-2006. Lastly, the chains make every effort to minimise the impact of their activity on the environment. In 2004, for example, Atac reduced by 7% the number of carrier bags handed out at the checkout. FRANCE 412 Atac supermarkets, of which 270 are integrated, 59 franchised and 83 associated with the Schiever Group ■ Steady turnover and gains in market shares, in a difficult climate of a slowdown in consumption and a price war. ■ Improvement in price positioning: Atac ranked 3rd in supermarket chains by the International Panel. ● Launch of the new marketing pitch: “Mon choix économies!”(I choose to save !) and campaigns on the theme of the increase in purchasing power. The drive to reduce prices, begun in 2003, has continued: – 2% on average over the year. ● Growing success of own brands, in particular with “Budget Boosters”. ● Deployment of “bulk purchase areas” in eight stores. Objective: to extend these to 50 stores in 2005. ● Trialling of a “super discount“ concept and a store under the Easy Marché name in Meung-sur-Loire (45). Streamlined product range and very low prices. ■ Action to encourage food safety. Formalisation and communication of the quality system, via the Intranet and “hands-on” training workshops. ■ Development of services: financial products with the Banque Accord, a selection of holidays with Voyages Auchan, a “post office” service trialled in one store. The loyalty card was demonstrably a success: close on 2,800,000 holders, i.e. +16% compared with 2003. Self-scanning system trialled in three stores. 40 % of the turnover for the supermarkets division achieved outside France. ■ 14 extra outlets of which six are integrated, five franchised and three associated. ■ Refurbishment programme continued: 11 stores extended in 2004. ■ In 2005, around twenty stores scheduled to be opened, half of these to be integrated and half franchised. Objective of extending the “bulk purchase” areas to 50 stores in 2005. ■ Increasing professionalism and empowerment ● The Cap 3 drive for change has continued and aims to increase autonomy in the teams, each becoming a true tradesman-entrepreneur. ● Progress and initiative groups set up to encourage the emergence of best practices that can be applied and put into operation immediately. ● Launch of “hands-on” training workshops for fruit & vegetables and fish. ■ Significant reduction in level of staff turnover (-37%). ■ Increase in apprenticeships: 376 apprenticeships in 2004. 376 apprentices ■ Renewal of the agreement to promote the employment in Atac, in 2004. of disabled persons, for the period covering 2004-2006. Committed to recruitment of 150 persons over three years. This objective was exceeded in 2004, with 66 people taken on. ■ New actions to help the environment: In 2004, there was 7% decrease in the number of carrier bags handed out at the checkout. In the new stores, these are no longer given out. ● Collection of used ink cartridges for the benefit of an association. Plans to extend this action in 2005. ● +30% in the number of used batteries collected. ■ Gifts of items to Food Banks, the Restos du Cœur (an organisation providing food for the homeless) and local associations. 50,000 euros in aid donated to the Red Cross following the Asian tsunami. ■ Customers and staff came together to support Handisport, which encourages sport for the disabled. Involved in funding the cost of travel for athletes taking part in the JO Paralympics in Athens, equipment was donated and training sessions funded. Atac was one of the top three sponsors for the international handisport tournament in Antony. ■ Selling of Auchan items under the Max Havelaar label. ● -7% carrier bags handed out by Atac at checkouts in 2004. > www.atac.fr 2004 REPORT ON ACTIVITY Auchan 21 SUPERMARKETS ITALY ■ In 2005, launch of a Rik & Rok initiative together with 1364 Sma and Cityper the Auchan hypermarkets to support the building of a centre for orphans. supermarkets of which 211 integrated, 505 franchised and 648 associated 1,000 prices lowered at Cityper between September and December. 2.4 billion euros turnover achieved in 2004 by the supermarkets in Italy. ■ Reinforcement of pricing policy, begun in May 2003: ● Prices held for the last quarter and prices cut on 1,000 products at Cityper between September and December. ● More ranges of deep discount products. ● Excellent price positioning. Sma ranked 1st in Rome and Cityper 1st in Brescia. ■ Turnover of 2.4 billion euros, consolidated at 50%. ■ New concepts tried out: ● ”Bulk” purchase areas in four Cityper stores. This service to be extended to other stores in 2005. ● Store trial on the “Superdiscount” concept in one Sma: reduced product range and simplified layout. ● The “Every day Low Price” trial in one Cityper store was continued. ● Self checkout system in two stores. ■ Promoting regional products. Along with Auchan, attended the ”Expo dei Sapori” trade fair for wine and gastronomy and developed the ”I Sapori delle Regioni” range. ■ Agreement with the Rome public transport company to sell tickets for public transport. ■ Buy-up from IFIL of its share in the food activities of the La Rinascente Group including, ISMS, the holding covering the supermarket activities, now owns 100% of the shares in Sma. in particular, 1,364 Sma and Cityper supermarkets, 211 of which are integrated and now almost wholly owned by the supermarkets division. ■ Two Cityper stores opened and two Sma stores closed. ■ Expansion of the franchise: ● Master Franchising agreement with the company ”Apulia Distribuzione S.r.l.” comprising 156 stores. ● Acquisition of SGD in Milan. ● 27 affiliated supermarkets opened. ■ Refurbishment or extension of seven stores. ■ Fives stores due to open in 2005: three Sma and two Cityper (integrated). In October 2005 a new fresh produce warehouse is due to be opened in Ancona. > www.smasupermercati.it > www.cityper.it SPAIN 223 stores of which 122 Sabeco supermarkets integrated and 101 minimarkets associated ■ Turnover on the increase. Rise in the number of customers and items sold. ● Marked improvement in price positioning and in the promotional policy. Success with marketing campaigns, in particular on the “anniversary” and for the “Chollos” (“super deal”) products. ● Trial of new discount concepts in three different store formats. ● Promotion of “Budget Boosters” and Auchan brand products on the shelves and in leaflets. Product ranges widened and 500 Auchan products down in price. ■ Creation of ethnic product sections to meet the growing demand. ■ Fresh produce initiative. Meat preparation section extended. The objective: to double production. ■ New services developed for customers: at the beginning of 2005, creation of the website www.sabeco.es, phone top-ups at the checkout, financial products in partnership with Banque Accord. ■ Proven success of the loyalty card. Almost 70% of purchases made in this way. ■ Two supermarkets opened in 2004, both integrated. ■ Refurbishment programme underway: seven stores modernised to begin with. ■ Deployment of new automated restocking system, trialled in 2003. ■ Launch of first “hands-on” training workshops in fresh produce: in-depth training for all store managers and heads of department in the fruit & vegetable section. ■ Preparing for employee shareholder scheme. ■ Sma was the official partner for the Telethon, and this for third year running. 827,000 euros were raised. In addition it was a partner chain in the “Nuit Blanche” [sleepless night] effort in Rome to raise funds for the homeless and in the “Fondazione italiana per cuore“ (Italian Heart Foundation) during International Heart Day. ■ An area dedicated to fair trade products in the Cityper stores. 22 Auchan 2004 REPORT ON ACTIVITY 211 Sma and Cityper integrated supermarkets, now almost wholly owned by the supermarkets division. 500 Auchan products down in price in Spain. ■ In partnership with the Adecco and Downs Syndrome MOROCCO foundations, support for the integration of the disabled into the business. 16 Acima* supermarkets ■ Supported the activities of the Red Cross and IUVE (an international network of youth organisations) ■ Subsequent to the Asian tsunami, gifts from the company itself and collections from staff and customers were donated to Intermon Oxfam. Launch of “Budget Boosters” in Morocco in 2005. > www.sabeco.es POLAND 12 Elea supermarkets ■ Acima ranked 1st in supermarket chains and 2nd after Marjane, in terms of price positioning. Ranges of deep discount products extended: launch of “Budget Boosters” in 2005. ■ Work on the range of foods offered: review of the ranges of staple goods; sections expanded for fresh produce, poultry and meat, this being much valued by the customers. ■ Promotion of household electrical goods with the creation of a section for these in the Fez store and organisation of promotional events with free credit, three times a year. ■ The rate of openings kept steady: five stores ■ High impact on prices. “Low prices” and aggressive policy operations in each customer catchment area. Increase in the range of deep discount products offered: 850 items listed including more than 330 “Budget Boosters”, i.e. +35% compared with 2003. ■ Overheads reduced by means of progress groups identifying best practices. ■ Strengthening of measures aimed at promoting food safety. Acima stores opened at a rate of 5 per year. ■ 250 jobs created in 2004. ■ Partnership with CIMADIS (International Centre for Supermarket Management) ■ An Elea store scheduled to open in 2005 in Gdynia and trial of a new concept of discount store in a smaller format, under the Atak name in Warsaw. ■ Roll-out of substantial training programmes, followed by over 95% of the workforce. inaugurated in El Jadida, Safi, Beni Mellal and Casablanca (El Fida and Sidi Othmane). ■ Five openings scheduled for 2005: in Rabat Temara, Marrakesh, Meknes and two in Casablanca. A warehouse was built in Casablanca. ■ Actions to support the under-privileged: In 2005, trial of an Atak discount concept in Warsaw. support for the Mohammed V Foundation, which benefits the destitute and gives food aid to those affected by the earthquake in Al Hoceima. Actions carried out in partnership with Unicef. * In Morocco, the Group is represented through its subsidiary Acima, owned at 51% by ONA and at 49% by Auchan 2004 REPORT ON ACTIVITY Auchan 23 IMMOCHAN IMMO 24 Auchan 2004 REPORT ON ACTIVITY “2004 was a memorable year for our real-estate business. It saw the creation of the holding company Immochan International and of its first subsidiaries. Supporting the expansion of the Auchan Group in various countries, they spread Immochan’s expertise in its four areas of activity, namely property development, marketing, management and investment. Our ambition is to create and develop leading, flagship shopping centres on all of our sites. We expect the division to grow steadily.” Vianney Mulliez, Chairman CHAN 297 230 1.07 shopping centres employees in 11 countries (average workforce as full-time equivalent) million m2 of rented space in shopping malls 2004 REPORT ON ACTIVITY Auchan 25 IMMOCHAN 400 52.4 % Over new shops opened in the shopping malls in 2004. of rental income collected in France and 47.6% elsewhere in the world. The real-estate business increasing in strength ■ Since the creation of the Auchan Group, its real estate subsidiary Immochan has been supporting its growth through its activities of property development, marketing, management and investment in its commercial sites. Once the legal restructuring of the Group into four business divisions was finalised in 2004, the holding company - Immochan International was created. This was followed by the setting up of a new organisation with the deployment in each country of the appropriate legal and management structures. Already in place in 2004 in France, Italy, Spain and Luxembourg, there are plans for these in 2005 for Poland, Hungary and then Portugal. Consisting of local teams and with due regard to the specific nature of each country, they manage and develop the real-estate business as an autonomous company recognised as having its own identity. ■ In 2004 Immochan experienced another year of sustained growth. For Italy, the year was noteworthy for the acquisition from the IFIL Group of its share in the Società Italiana Distribuzione Moderna S.p.A. Immochan International therefore now owns 51% of Gallerie Commerciali Italia S.p.A, the umbrella company for the shopping mall activities businesses. The Simon Property Group, its partner since 2003, owns 49% of it. In addition, Immochan opened over 400 businesses in shopping malls. More than half of these were in the shopping centres inaugurated during the year, in particular in Russia, Italy and China. In the latter country, the target threshold of 300 shops was crossed. Refurbishment and extension of the existing shopping centres in Spain, Italy and, above all, in France, also enabled the creation of nearly 120 businesses. Business parks continue to be developed, notably in France. At the end of 2004, the real-estate division of the Auchan Group boasted a total of 297 shopping centres around the world. Preparation of a directory of best practices for each business. Leading shopping centres that are flagships Acquisition from the IFIL Group of its share of the shopping mall activities (G.C.I.). 297 shopping centres worldwide. Shared expertise ■ Developing the real-estate business relies on a major effort to empower and improve professionalism of the teams. In order to promote excellence in each of our four areas of activity in commercial real estate – development, marketing, management and investment, best practices have been identified and formalised in the form of a directory, and training modules devised. In enabling sharing and transfer of this expertise to the countries, 26 Auchan 2004 REPORT ON ACTIVITY these synergies are contributing to the continuous improvement of performance. In the countries where the commercial real estate venture is still new, Immochan is working in close collaboration with its business partners. In Hungary, for example, suggestions for training sessions have been put forward using a professional training body, to familiarise staff with retail practice in shopping malls. Definition of a charter on environmental quality. ■ Immochan has set itself the objective of developing, on all of its sites, shopping centres that are leaders in the field and flagships in terms of quality. These are areas where commerce and lifestyle, come together, user-friendly yet business-orientated. Their aim is to become the favourite destinations of their customers. From the time they park their cars until they leave, the new visual identity designed in 2003 guides them on they way. It was deployed in around twelve shopping centres in France, like in Pôle Europe (Mont-Saint-Martin – Meurthe-et-Moselle) and in Noyelles-Godault (Pas-deCalais) which has become the largest shopping centre to the north of Paris. This signage system has been partially deployed in Poland and in Hungary. ■ In touch with the needs of its commercial partners, Immochan has collaborated with them to create the most attractive sites in the market, enabling them to achieve the best possible economic and commercial results. In accommodating and developing new commercial concepts, Immochan is also demonstrating its capacity for innovation and its desire to offer an ever increasing range of services and businesses. ■ Immochan is a major urban developer and actively courts its role as a responsible negotiator with local authorities, by supporting these in their plans for town and trade. The real estate subsidiary, together with the chains within the Group, has adopted a policy of sustainable development by optimising the use of natural resources and by ensuring that its shopping centres have a well-established position in their local environment. Architectural integration also remains a priority and a charter on environmental quality has been drawn up. In 2004, in Noyelles-Godault (France), 25 hectares of parkland were landscaped as part of the extension of the shopping centre. In Cuneo (Italy), the planting in the car park forms a green “curtain” to lessen the impact of the buildings, and the undulating profile of the façade is reminiscent of the neighbouring hills of Bisalta and Monviso. FRANCE ■ Creation of Immochan Spain. Scheduled extension 120 shopping centres of the shopping mall in Tenerife in 2005. ■ Reinforcement of the teams in Portugal. Creation of Immochan Portugal, for 2005. ■ Refurbishment and extension of the shopping centres Central and Eastern Europe in Noyelles-Godault (Pas-de-Calais), Trignac (LoireAtlantique), Saint-Cyr-sur-Loire (Indre-et-Loire), Petite-Forêt (Nord) and, at the start of 2005, of Saint-Sébastien-sur-Loire (Loire-Atlantique). In these five shopping centres, the new visual identity designed in 2003 was rolled out and adopted by about a dozen of the sites at the end of 2004. ● Creation of 71 new businesses in shopping malls, equivalent to an extra 14,000 m2. ● By the end of 2004 there were 320 specialist areas in the business parks. ■ Awarded the prize for the best renovation-extension by the CNCC (National Council for Shopping Centres), and this for the 3rd year running. This was presented at the Maison-Neuve shopping centre in Brétigny (Essonne). ■ For 2005, restructuring of the teams into businesses and renovation or extension of the shopping centres in Laxou (Meurthe-et-Moselle), Le Fayet (Aisne), Bordeaux – Le Lac (Gironde), Illkirch (Bas-Rhin), etc. ■ Creation of around sixty businesses in shopping malls in Russia, when three centres opened in Krasnogorsk, Khimki and Marino. The real estate team reinforced. ■ In Poland, launch of the plans for strip malls (open-air shopping centres). Significant reduction in business vacancy rate for shopping malls. Establishment of the first Decathlon outside Warsaw, on the Auchan site in Wroclaw. For 2005, creation of the company Immochan Poland. ■ In Hungary launch of the plans for strip malls in Dunakeszi and Soroksar. For 2005, creation of Immochan Hungary. Opening, on the sites of the Auchan hypermarkets, of three Decathlon stores in Budapest and one Bricostore in Csömör. ■ In Poland, Hungary and Russia, over 1,200 businesses held in shopping malls, via the subsidiaries of Immochan International, at the end of 2004. Nearly 1,200 businesses across the whole of Poland, Hungary and Russia at the end of 2004. In 2005, Immochan companies will be set up in Poland and Hungary. Morocco INTERNATIONAL 177 shopping centres ■ Creation of 14 businesses with the opening of the shopping mall in Tetouan. Asia Western Europe ■ Galleria Commerciali Italia (G.C.I.): accelerated development. Acquisition from the IFIL Group of its share in the Società Italiana Distribuzione Moderna S.p.A, which includes 51% of the Gallerie Commerciali Italia S.p.A: G.C.I is now owned at 51% by Immochan and at 49% by the Simon Property Group. ● More than 120 businesses created as part of the opening of the shopping centres in Modugno (Bari) and Cuneo, and the extensions in San Rocco Al Porto (Lombardy) and Sassari Predda Niedda (Sardinia). ● By the end of 2004 there were over 1,300 shops. ● In 2005, opening of Cesano Boscone (Milan). ● ■ Nearly 90 shops created in China during 2004, in Shanghai Minhang, Shanghai Jiading and Beijing Kexing. By the end of 2004, over 300 shops held in shopping malls of the 11 Auchan hypermarkets. At the start of 2005, opening of the malls in Nanjing and Ningbo, with a total of 70 shops. More openings planned for the end of the year. Over 300 shops in China at the end of 2004. > www.immochan.com 2004 REPORT ON ACTIVITY Auchan 27 BANQUE ACCORD BANQUE 28 Auchan 2004 REPORT ON ACTIVITY “2004 was an excellent year for Banque Accord, confirming the success of the last five years. Our net banking income rose by more than 15%, our operating income by 25% and our Group share of net income by 29%. The turnover paid through Banque Accord cards in the chains exceeded 5.1 billion euros, up by 18%. 2004 saw the buying up of the Egg activities in France and the continued roll-out of credit and personal loan cards in all of the countries. In 2005, Banque Accord will continue to expand in Europe where the 4 million customer target threshold will be exceeded.” Jérôme Guillemard, Chairman ACCORD 3.855 800 million customers 2.26 million of these in France employees (average workforce as full-time equivalent), 670 of these in France 5,1 billion euros of turnover paid by cards managed by Banque Accord (+18% compared with 2003) 2004 REPORT ON ACTIVITY Auchan 29 BANQUE ACCORD Sustainable performance ■ The 2004 results for the Banque Accord follow the pattern of the rise in performance seen over the last five years. The operating income rose by 25% to 39 million euros and the Net Banking Income by 15%. These good figures are explained by a business in full growth but also by careful management of the cost of risk. In this context, the contribution to the results by Portugal and Spain are on the increase. ■ The turnover paid through Banque Accord cards has continued to rise significantly: up by 18% in comparison with 2003, it reached 5.1 billion euros. Banque Accord gained more than 450,000 new customers over the course of the year, of which 73,000 were Egg customers, bringing the total to 3.855 million in Europe. ■ In France, the year was notable for the acquisition of the consumer credit activities of the Egg Bank, covering almost 73,000 customers and 205 million euros of credits outstanding. ■ After the Banque Accord Visa card, the first Visa card for hypermarkets seeing the light of day in 2003, the bank issued its Visa Premier and Accord MasterCard cards in Italy. In Hungary, following an initial trial in the Dunakeszi store, Accord Magyarorszàg launched its card in all of the Auchan hypermarkets. During 2005, Banque Accord will continue its expansion in new countries: Italy, Poland and Hungary, and will develop the activity it acquired from Egg in France. 450,000 new customers. Buy-up of the credit card and personal loan activities of the Egg Bank (France). Internationalisation, external growth: many new employees Increased market resources ■ In continuing its policy of diversifying its funding sources, Banque Accord carried out three bond issues. With a total sum of 200 million euros, these bring the overall total of issues placed with institutional investors in 2003 and 2004 to 350 million euros. At the beginning of 2005, a syndicated loan of 500 million euros was launched to provide funds for its general business purposes. Easily accessible financial services and products at the lowest cost ■ Banque Accord a subsidiary of Auchan and, by tradition, customer-focused, set itself the target of being the least expensive provider of financial services and products in the marketplace. 30 Auchan 2004 REPORT ON ACTIVITY Personal credit and bank cards in France and Italy, in addition to personal loans in Spain, Italy and France, are offered at the lowest prices. In France, the revolving credit rates, cheaper than the market, have been revised downwards on a regular basis since 2003. Rates for the Banque Accord Visa Classique and Visa Premier cards themselves are up to two or three times lower than usual prices. ■ In order to be still closer to the customers and to offer them credit, as well as savings and insurance products, during the same opening hours as the stores, the bank, in France, has opened eight “Banque Accord areas”, in the Auchan hypermarkets themselves or in its shopping malls. In 2005, Banque Accord plans to focus on its savings and insurance activities through these new types of outlet. ■ Another aspect of its commercial policy, the Banque Accord and Egg cards are the only ones to pay money to the holders in the form of “cash back”. In terms of Egg alone, more than 3 million euros should be paid out in the manner of this “cash back” in 2004. Objective: to be the least expensive in the market for financial products and services. ■ The reorganisation of the bank, put in place in 2003 to handle its expansion, was fully vindicated in 2004. Two years after an initial survey, Banque Accord successfully carried out a second opinion poll of its employees. ■ The company’s internal growth in all of its countries and the process of takeover of Egg France needing sustained support (training, management, project management), Banque Accord invested heavily in these areas. In 2004, almost 4% of the payroll was devoted to training teams. In France, all of the managers were invited to decide together the value of their business. This work is the opening chapter for a management training exercise to be carried out over several years. Also in France, activity on the Tours and Paris Egg France sites continued. Almost 90 Egg employees were integrated in accordance with the public undertaking at the time of the buy-up. +15 % in net banking income for 2004. FRANCE ■ Historic threshold of the billion euros outstanding credits crossed. ■ Buy-up of the credit card and personal loan activities of Egg France (205 million euros in outstanding credits, 73,000 customers) and takeover of the Tours and Paris sites. ■ Development of financial products at discount prices: ● Success of personal loans at competitive prices (operation 2.90% in the Autumn). ● Launch of the Banque Accord Visa Premier card. ■ Opening of in-store banking areas in eight hypermarkets. ■ Banque Accord cards now accepted in all Boulanger stores. ■ Actions of solidarity: partnership with Unicef to fund a reconstruction project in South-east Asia. Increased support for Astrée, an association combating social exclusion, with a national mail-shot initiative. In 2005, Banque Accord was the national partner for the National Microcredit Week with ADIE*. * Association pour le Droit à l’Initiative Economique (Economic Initiative and MicroCredit Promotion Association). +13.5 % rise in the number of customers ■ Launch of the MasterCard Accord card, the first co-branded banker’s card for Banque Accord, which is equally a credit and loyalty card. ■ Selling of personal loans in-store by Accord staff. +25 % in operating income Launch of the Visa Premier card in France and the MasterCard Accord card in Italy. SPAIN ■ Marked increase in personal loans, an activity now carried out by AccordFin. Creation of a reduced price, fixed line telephone service for Alcampo card holders. ■ Steady rise in popularity of the Leroy Merlin personal credit card. ■ 748,000 cards and 998,000 customers at the end of December. POLAND ■ Divestment of Accord Polska and creation of Accord Finance with Lukas Bank (Groupe Sofinco). Successful migration of the active customers to the new portfolio. ■ High level of customer recruitment over the second half of the year, with the launch of personal loans through direct marketing. Change of partner and restart of the activity in Poland. PORTUGAL ■ Very strong commercial activity: a 15% rise in the number of customers, launch of the Leroy Merlin personal credit card, arrival of the Jumbo Card (Auchan) in the Box stores. ■ Successful launch of the internet site www.crediplus.pt. ■ At the end of 2004, the option to acquire the 49% held by Cofinoga was exercised to assume 100% control of Crediplus at the end of 2005. Takeover of outstanding revolving personal loans formerly borne by the partner. ITALY ■ Marked rise in traditional credit activity HUNGARY ■ Approval and launch of the subsidiary in partnership with Magyar Cetelem Bank, the Hungarian leader in consumer credit. ■ Roll-out of the Accord card in all of the stores. ■ Start of traditional credit activity. Deployment of the Accord card in all the Hungarian hypermarkets. > www.banque-accord.com > www.banque-accord.fr > www.cartaccord.it > www.crediplus.pt > www.swiataccord.pl > www.accord.hu > www.accordfin.es in the hypermarkets. ■ Successful launch of the transaction site www.cartaccord.it. 2004 REPORT ON ACTIVITY Auchan 31 ORGANISATION CHART Legal Organisation Chart SUPERVISORY BOARD Operational Organisation Chart Hypermarkets GÉRARD MULLIEZ, CHAIRMAN CHRISTOPHE DUBRULLE Chairman and Managing Director JEAN-BERNARD GUILLEBERT, VICE-CHAIMAN HENRI MATHIAS, Support Services Group THIERRY MULLIEZ, VICE-CHAIRMAN XAVIER DE MÉZERAC Finance – Management Group DANIEL BACROT VIANNEY MULLIEZ Development Group FRANÇOIS LECLERCQ ARNAUD MULLIEZ LOUIS MULLIEZ PHILIPPE SAUDO Human Resources Group BENOIST CIROTTEAU Supermarkets JÉRÔME GUILLEMARD VIANNEY MULLIEZ WESTERN EUROPE FRANCE ARNAUD MULLIEZ, Chairman HENRI MATHIAS, Vice-Chairman PHILIPPE BAROUKH, Managing Director LUXEMBOURG PHILIPPE BAROUKH, Chairman FRANÇOIS REMY, Managing Director SPAIN FRANCIS LEPOUTRE, Chairman PATRICK COIGNARD, Managing Director PORTUGAL FRANCIS LEPOUTRE, Chairman EDUARDO IGREJAS, Managing Director BOARD OF DIRECTORS CHRISTOPHE DUBRULLE, CHAIRMAN COUNTRY MANAGERS BENOIST CIROTTEAU Chairman and Managing Director PHILIPPE DELALANDE Finance – Management COUNTRY MANAGERS FRANCE BENOIST CIROTTEAU, Chairman DENIS SIMON, Managing Director SPAIN MIGUEL GANUZA, Chairman OLIVIER TANGUY, Managing Director ITALY BENOÎT LHEUREUX, Deputy Director ANTONELLO SINIGAGLIA, Managing Director POLOGNE DENIS SIMON, Chairman YVES LIERLEY, Managing Director Banque Accord COUNTRY MANAGERS JÉRÔME GUILLEMARD Chairman JEAN-PIERRE VIBOUD, Managing Director BANQUE ACCORD, France DAMIEN GUERMONPREZ Managing Director FRANCK DUPREZ, Managing Director ACCORDFIN, Spain NICOLAS DREYFUS Finance DENIS MARDON, Managing Director CREDIPLUS, Portugal PHILIPPE JOIE, Managing Director ACCORD FINANCE, Poland BENOÎT LIAGRE, Managing Director ACCORD ITALIA, Italy BRIGITTE GALLIEZ, Managing Director ACCORD MAGYARORSZÀG, Hungary 32 Auchan 2004 REPORT ON ACTIVITY ITALIE • HYPERMARKETS BENOÎT LHEUREUX, Chairman and Deputy Director PATRICK ESPASA, Managing Director • D.I.Y. VINCENT GENTIL, Managing Director SIB – Leroy Merlin MARCO MONTEMERLO, Managing Director SIB – Bricocenter CENTRAL AND EASTERN EUROPE POLAND PHILIPPE SAUDO, Chairman FRANÇOIS COLOMBIÉ, Managing Director HUNGARY JEAN MAILLY, Chairman JEAN-PAUL FILLIAT, Managing Director RUSSIA JEAN MAILLY, Chairman PATRICK LONGUET, Managing Director AFRICA MOROCCO TAJEDDINE GUENNOUNI, Chairman of the Board of Directors of Marjane Holding PHILIPPE LE GRIGNOU, Managing Director ASIA CONTINENTAL CHINA CHRISTIAN CLERC-BATUT, Chairman BRUNO MERCIER, Managing Director TAIWAN CHRISTIAN CLERC-BATUT, Chairman KAUFMAN WEI, Managing Director MOROCCO NOUREDDINE BENMAKHLOUF Chairman of the Board of Directors of Acima GILBERT INFANTÈS, Managing Director Immochan International COUNTRY MANAGERS VIANNEY MULLIEZ Chairman HERVÉ MOTTE, Managing Director IMMOCHAN, France ÉRIC DELEPLANQUE Managing Director EDOARDO FAVRO, Managing Director GALLERIE COMMERCIALI ITALIA (G.C.I.), Italy VIANNEY DUMAS Finance VALENTIN SERRANO, Managing Director IMMOCHAN (at July 1st, 2005), Spain MARIO COSTA, Managing Director, Portugal ANDRÉ-PAUL LECLERCQ, Managing Director, Poland MICHEL CHAIZE, Managing Director, Hungary 2004 REPORT ON ACTIVITY Auchan 33 Design and production : - May 2005 Photos: Auchan, Philippe Dureuil, ORC-Antoine Meysonnier, Dominique Coulier, Claude Waeghemacker. Communication Department – 92, rue Réaumur – 75002 Paris – France Tel.: +33 (0)1 58 65 08 08 – Fax: +33 (0)1 58 65 08 15 – www.auchan.com
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