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- Auchan . com
2005 REPORT ON ACTIVITY CONTENTS 2 EDITORIAL 4 2005 STATEMENT Free translation of a French language original 6 LOCATION 8 HYPERMARKETS 18 SUPERMARKETS 24 IMMOCHAN 28 BANQUE ACCORD 32 ORGANISATION CHART Editorial In 2005, the Auchan Group achieved its objective for growth and profitability, except in France which had a difficult year. International growth was strong in 2005 but with a highly uneven distribution: moderate, even weak, in Western Europe but dynamic in Eastern Europe and China. The Group’s performances reflect these differentials and, as such, 2005 was a year of 365 654 11 €33,6 billion €41 billion hypermarkets of which 360 are consolidated supermarkets in 6 countries countries of revenue before tax (+10.6%) of revenue including tax, for the chains (+4.6% on a comparable basis) – 372 hypermarkets – 2,181 supermarkets and minimarkets 02 Auchan 2005 REPORT ON ACTIVITY contrasts: on the one hand between the mature markets, where the deflationary pressure increased even further due to lower spending on food and the pressure of competition, and developing markets and, on the other hand, between the retail sector and the banking and real estate sectors, which confirmed the solid nature of their contribution to the profits of the Group. Analysis of the results demonstrates the strong resilience of our Company. Owned by its original shareholders, the Mulliez family, together with its employees, Auchan understands how to make the most of this special aspect, enabling it to develop its strategies whilst enjoying a freedom that listed companies are sometimes denied and to build for the long term. In remaining faithful to our vision, we are making a day to day contribution to the purchasing power and quality of life of our ever-growing number of customers. The revenue before tax is 33.6 billion euros, a rise of +10.6% (+2.5% on a comparable basis), and the recurring operating income is running at 1.3 billion euros, a rise of +13.4% (+7.5% on a comparable basis). The EBITDA, at 2.1 billion euros, has risen by +12% (+3.6% on a comparable basis). The net income attributable to equity holders of the parent is 964 million euros (+44.6%). However, recalculating to allow for the significant surplus of 225 million euros made through the disposal of the clothing and DIY activities in Italy, its growth reached +10.5%. The Group achieved its objectives for growth and profitability, except in France which had a difficult year due to the sluggishness of consumption and the fall in the average price per item and the average trolley. In the latter country, moreover, the results were hit by the increased intensity of regulatory an competitive pressures; they were significantly down compared with 2004. We were able to partly offset this fall, on a comparable basis, thanks to the contribution from abroad, which rose to a significant extent. All of the sectors and countries covered by the Group worked together to achieve these results and to maintain the capacity of the Group for sustainable growth: reinforced discount policies, the search for new business dynamics, work on stock rotation, new structures such as was the case for Auchan France, even more drastic selection of investments, rigorous management applied within the various countries and business sectors covered by the Group. As a result, we have been able to maintain and even improve the financial equilibrium of the Group: our gearing is running at the very reasonable rate of 44%. In fact, Standard & Poor’s has maintained its good rating levels in 2005 for the Group and for 21 , 48 million €750 million Banque Accord. € The strategic choices to focus investments on a smaller number of countries are starting of EBITDA (+12.0%) (1) to demonstrate their soundness; this year, 45% of the turnover was achieved abroad. At the same time and more than ever, we have intensified our quest for marketing innovations, testing large numbers of new ideas, in order to thus feed our organic growth and provide a growing contribution to the progress of retail business. The strong reaffirmation and the continuation of participative management at all levels net income from continuing operations (+10.5%) of the business correspond to a genuine mindset widely shared by all of the teams. The diversity of the workforce, the call on their initiative and the trust placed in 964 million them are real assets for a creative business, focused on customer expectations. € This is equally a guarantee for social cohesion and economic efficiency, but also a factor Net income attributable to equity holders of the parent (+44.6%) of which M€ 225 surplus from disposals. in the personal development of the individuals in the workforce. It is this continuous search for harmonious growth, concerned for people and the environment, this economic and social project into which we are fully committed that 1,589 million makes and will make the Auchan Group a lasting business. € In 2006, the Group will benefit from the experience acquired through these new trials from cash flows from operations (+14.6%) of novel marketing formats and by the dynamism introduced by more participative management on the ground, but it must also face up to the deflationary trends in food consumption in Western Europe, to the continuation of ever more lively competition, to the increase in tariffs for some major international suppliers and to the unhelpful consequences of the regulatory environment in France. 44% 174,600 gearing ratio (2) I know that I will be able to rely on the 174,600 employees of the Company to get through these short term challenges and I would like to take the opportunity to thank them publicly for their daily and unwavering commitment to the service of our millions of customers. employees (average headcount, full time equivalent) CHRISTOPHE DUBRULLE Chairman of the Board (1) Recurring operating income before other recurring operating income and expenses, depreciation, amortisation and provisions. (2) Financial debts reduced by cash and cash equivalents plus or minus derivative financial instruments. 2005 REPORT ON ACTIVITY Auchan 03 2005 Statement 1.13 billion customers (till receipts) in the stores during 2005 Building a lasting business A strategic commitment for the long term For the second year running, the Company has had to face a difficult economic climate in several of the countries where it operates. Especially in France and Italy, the chains have come up against the problem of the rapid change in consumption patterns and a reduction in spending on food, not to mention increased competition. In addition, preparation in France of the new regulatory framework introduced by the loi Dutreil has heightened legal insecurity surrounding commercial relations. In this unsettled climate, the Group has continued the strategy that it set itself, being consistent with its vision, by operating an aggressive discount policy. This relies on the lowering of prices and a reinforcement of the range of deep discount products. In every country, it has been accompanied with a reduction in expenses and investment costs. Most of the chains succeeded in retaining their market shares and saw the number of customers and items sold continue to rise. The activities abroad also continued their rise in strength. In 2005 this accounted for more than 45% of the turnover for the Group. For their part, the real estate and banking divisions again recorded very good results this year. Everywhere, the chains are endeavouring to offer an appropriate range of products to meet the expectations of the customers. Over They have developed a large selection of Auchan brand products and, again, reinforced the deep discount ranges, “Budget Booster” in particular; in 2005, these were launched in Russia in the Auchan hypermarkets, as well as in Morocco in the Acima supermarkets. “Self-discount” areas have been created in the hypermarkets, particularly in France and in Spain. Banque Accord has maintained its discount positioning, by offering the cheapest bank cards, revolving credit and personal loans on the market. 1,000 The ranges of regional products have been extended through close partnerships with the SMEs. 55% of the revenue achieved in France integrated stores at the end of 2005 In order to match their distribution formats to the changes in consumption, the chains have continued to test new commercial ideas. Some of these began their deployment, such as, in France, the Halles d’Auchan and Au Marché Vrac. A non-listed family group, held at 85% by the Mulliez family and at 15% by the workforce. 04 Auchan 2005 REPORT ON ACTIVITY The commercial website Auchandirect opened a 3rd centre for the preparation of orders. Rigorous management and a solid financial structure To operate its discount policy in a sustainable manner, the Company is committed to rigorous management. The approach to the optimisation of investments and reduction in costs has been strengthened, contributing significantly to the profitability of the Company. Continuing the policy of diversification of its sources of funding, initiated in 2003, Groupe Auchan SA launched 2 bond issues for a total sum of 675 million euros. The prudent policy followed by the Group has enabled it to retain its Standard & Poor’s rating for the last three years: A for the long term and A1 for the short term. At the end of 2005, the gearing ratio was still contained at 44%. Banque Accord also carried out a new bond issue for a sum of 200 million euros, to fund its growth. At the beginning of 2005 it signed a syndicated loan for 500 million euros to fund its general requirements. Moreover, the banking subsidiary of the Group saw its Standard & Poor’s ratings confirmed (A- for the long term and A2 for the short term). A clear and lasting organisation based on business sector After having adopted, in 2004, a new and clear organisation based on business sectors, in 2005 the company continued the operational implementation of its four divisions: hypermarkets, supermarkets, real estate and banking. The synergies between the business sectors have been strengthened, thereby enabling the improved performances of the company through the optimisation of processes and the reduction of costs. These are operational in the fields of quality and purchasing and will be extended to IT activities at the beginning of 2006. Organisation around 4 business sectors. +19 hypermarkets and +23 supermarkets integrated. The service supplier structures The WWRE market place, of which Auchan is one of the founder members, merged with GNX to create Agentrics, bringing together 24 founder members. The international service support company for the global brands, IRTS, also developed new services intended for the SMEs, in order to help them to export to countries where the Group is established: 13 contracts were concluded with SMEs from 4 European countries. A gradual and controlled international growth Consolidating the policy followed for the last 4 years, in 2005 the Auchan Group continued to grow abroad, in Western Europe, in Central Europe and in Asia. This implantation strategy is enabling it to establish firm positions in the countries where it is present. The company is focused on its favoured mode of development – organic growth – and this year has not carried out any operation of external growth within its hypermarket and supermarket divisions. With an increase similar to previous years of about 40 stores – in 2005, an additional 19 hypermarkets and 23 supermarkets – the Group has passed the milestone of 1,000 integrated stores. At the end of the year, it comprised 365 hypermarkets, 360 of which are consolidated, and 654 supermarkets. The policy of internal growth of the company was also reflected in a programme of refurbishment and enlargement of 17 hypermarkets and about 30 supermarkets. Finally, the year saw the closure of operations that were running during 2004. In Argentina, the 3 stores were disposed of. In Italy, since the buyback from the IFIL Group of its shares in the food activities of La Rinascente, these are now nearly wholly owned by the Auchan Group. In parallel, the disposal of the non-food activities (Rinascente department stores and UPIM stores) and DIY (50% of SIB S.p.A) was finalised in the 1st half of 2005. Supporting the growth of the Group, the growth of the real estate and banking activities continued. Immochan opened about 60,000 m2 of premises in shopping malls. Banque Accord became established in a 7th country, Russia, and created its electronic banking division CardOps. In Portugal, the bank bought out the 49% of its Crediplus subsidiary held by Cofinoga. A constant policy towards human resources, encouraging social progress These training courses have underpinned the policy of empowerment pursued by the company. The involvement of the employees in initiatives for progress and the development of their autonomy have helped to strengthen the close relationship with the customer and to develop a relevant business in each catchment area. In total, 2.67 million hours of training were provided within the 4 divisions of the Group, i.e. nearly 120,000 hours more than in 2004. Faithful to its fundamental values, the company has continued to support social progress. Certain chains, such as Auchan Hungary, have set up social security schemes for the benefit of their employees. In France, Banque Accord in 2005 and then Auchan in January 2006 have signed the “Charter on Diversity”. The integration of disabled workers continued in all the European countries, as well as in China. For example, these represent 6.13% of the workforce of Atac, in France, which is 2 percentage points above the average for private companies. As soon as possible, the company aims at settling employee share ownership schemes in most of the countries where it is established. Already in place in 6 countries*, it is due to be launched in 2006 in Italy, within the hypermarkets division, and then in China within the next few years. In 2005, the number of employee shareholders passed the 100,000 mark. They hold nearly 15% of the capital of the Group through the Valauchan mutual investment fund. A policy of sustainable development Wherever it is established, the Company aspires to act in a responsible manner. Special attention is paid to the social conditions for the manufacture of products, through the carrying out of social audits. Environmental protection remains a priority: management of waste, “green tills”, energy savings and architectural integration are among the actions demonstrating the commitment of the company. Whether at a local or a national level, the chains of the Auchan Group fully play their role as supportive economic players. New actions have been undertaken to help young persons and children in particular. Banque Accord is putting great efforts into the battle against over indebtedness. * France, Spain, Portugal, Luxembourg, Poland and Hungary Within each sector, the success of the business depends on the quality of the teams. Playing a pivotal role in human resources policy, training remains a priority. It is fundamental in the countries where the Group has more recently become established. In Russia, for example, all employees received at least one training course during the year. 2.67 million hours of training provided. Rigorous management: gearing ratio of 44%. Over 100,000 employee shareholders. 2005 REPORT ON ACTIVITY Auchan 05 Location FRANCE SPAIN PORTUGAL 120 Auchan hypermarkets 46 Alcampo hypermarkets 17 Jumbo hypermarkets 123 Sabeco supermarkets and 112 associated minimarkets 17 shopping centres of which 8 are managed by Immochan 46 shopping centres of which 28 are managed by Immochan Crediplus of which 4 are Les Halles d’Auchan €14.4 billion consolidated revenue before tax 6 hypermarkets in the Auchan chain belonging to the Schiever Group 419 supermarkets 365 hypermarkets of which 360 are consolidated integrated (of which 272 are Atac), 59 franchised and 82 associated with the Schiever Group 120 shopping centres of which 102 are managed by Immochan 654 supermarkets €33.6 billion consolidated revenue before tax Banque Accord 2.4 million customers 68,900 employees ITALY 42 hypermarkets of which 41 are in the Auchan chain 1,492 Sma and Cityper supermarkets of which 218 are integrated, 542 franchised and 732 associated 11 countries 43 shopping centres managed by Gallerie Commerciali Italia(1) Banque Accord Accord Italia 18,500 employees MOROCCO(2) 12 Marjane hypermarkets 20 Acima supermarkets 12 shopping centres managed by Immochan in partnership with ONA 4,300 employees Average headcount, full time equivalent 06 Auchan 2005 REPORT ON ACTIVITY Banque Accord AccordFin 1.2 million customers 17,740 employees Banque Accord 6,200 employees The Auchan Group at December 31, 2005 LUXEMBOURG HUNGARY POLAND RUSSIA 1 Auchan hypermarket 10 Auchan hypermarkets 19 Auchan hypermarkets(3) 7 Auchan hypermarkets 1 shopping centre managed by Immochan 10 shopping centres of which 9 are managed by Immochan 14 Elea and A-tak supermarkets 1 Atak supermarket Banque Accord 19 shopping centres of which 15 are managed by Immochan 640 employees Accord Magyarorszàg 4,550 employees Banque Accord 7 shopping centres managed by Immochan Banque Accord BA Finans Accord Finance 8,400 employees 10,200 employees MAINLAND CHINA 13 Auchan hypermarkets(4) 13 shopping centres(4) managed by Immochan 59 RT Mart hypermarkets 6,300 employees TAIWAN 19 hypermarchés RT Mart 14 of which are consolidated 19 shopping centres managed by Immochan 4,700 employees (1) G.C.I. owned 51% by Immochan International and 49% by Simon Property Group. (2) The Group is present in Morocco through the subsidiaries Marjane and Acima, owned 51% by ONA and 49% by Auchan. (3) of which 16 wholly owned and 3 owned by Schiever Polska, a subsidiary owned 50% by Auchan and 50% by Schiever. (4) Partnership with Ruentex: 67.2% of Auchan hypermarkets and 32.8% of RT Mart hypermarkets held by the Auchan Group. 2005 REPORT ON ACTIVITY Auchan 07 Hypermarkets « 2005 has been a contrasting year for the hypermarkets division. It has been faced with a difficult environment in Western Europe, especially in France and in Italy, whilst at the same time benefiting from the steady rise in strength of its activities abroad. Everywhere, the priority for the chains has been to 26.2 billion € consolidated revenue before tax in 2005 (+8.0%) 11 countries 23 hypermarkets opened in 2005 365 hypermarkets (of which 360 were consolidated) at December 31, 2005 142,900 employees develop an appropriate product range, through the reinforcement of discount, commercial dynamism and adaptation to the local context. It has relied on a strong policy of raising the professional standards and empowerment of teams. » (average headcount, full time equivalent) Christophe Dubrulle, Chairman and General Manager of the revenue for the Group 78% Hypermarkets 854 million customers (till receipts) 93% of the revenue for the division achieved in Europe, of which 55% was in France Continuation of the discount policy In an economic environment differing according to the country, the hypermarkets division has had a relatively satisfactory year. Up by 8% (+1.2% against comparable stores), the revenue for the division came to 26.2 billion euros. Representing 78% of the revenue for the Group, the breakdown was 55% in France and 45% abroad. Europe still generated 93% of the revenue for the division. In France, it was a difficult year with a slight fall in revenue and a fall in the level of margin and profit. The main reasons for this somewhat disappointing performance were a distinct sluggishness in consumption, a smaller average trolley, the impact of the « Sarkozy agreements » and intensifying competitive pressures. Italy also experienced a difficult period because of the fall in consumption and in the amount of the average trolley. The growth of activities abroad, including in Spain, was able to offset the results in France and Italy. In order to offer products that meet the needs of all customers, the hypermarkets are developing broader ranges. These include an extended range of own brand products, Auchan and “Budget Booster”. The success of these with customers is confirmed, especially in France and in Italy where their market shares are growing. In all countries, the policy of improving the discount was based on building up the range of economy goods and on substantial lowering of prices. The average selling prices were reduced by more than 4% in France and in Italy. This voluntarist policy enabled the chains to maintain their good price positioning. A traditional strength of the company, the seasonal ranges also helped to give impetus to the business, particularly towards the end of the year. Bringing together basic low price products, especially sold in bulk or pick & mix, the “self-discount” areas continued to be deployed in France. This was initiated in Spain and Poland and will continue, in 2006, in Hungary and Italy. Product quality remains a priority. In Italy and France, for example, the chains are offering a still wider selection of regional products and those from the agricultural supply lines and have strengthened their activities with regard to food safety. While in Morocco Marjane developed local supply chains, in China a range of fresh vegetables coming Deployment of “self-discount” areas in 131 hypermarkets in 5 European countries. 10 Auchan 2005 REPORT ON ACTIVITY from the “Auchan Selection” suppliers was launched this year. In this sector, the chains are working closely with local SMEs. The determination of the chains, through a commercial strategy to which they are committed for the long term, has enabled the hypermarkets division yet again to achieve an increase in its number of customers and in the number of items sold. A policy of steady internal growth With 23 new stores opened and the enlargement of 17 in 2005, the hypermarkets division continued its policy of steady internal growth. More than 200,000 m2 of sales area has been created in this way during the course of the year. About a third of new store openings were on the European continent, comprising 7 stores, 3 of which were in Italy and 1 each in Spain, Portugal, Hungary and Russia. The Cinisello hypermarket in Italy was closed for refurbishment work. In France, La Cave in Coignières (78) changed for « Les Halles d’Auchan » chain and the Schiever Group opened its 6th store, with the Auchan chain, in Châtillon-sur-Seine (21). In mainland China, the Group inaugurated 2 Auchan hypermarkets in Ningbo and in Tianjin, as well as 12 RT Mart stores. In Morocco, 2 Marjane hypermarkets were opened in Meknès and in Derb Sultan (Casablanca). Finally, the disposal of the 3 Argentinian hypermarkets, announced in December 2004, was finalised at the end of the 1st quarter of 2005. Continuous improvement in professionalism A traditional pillar of the company, the professional development of employees is supported by a strong policy of empowerment. From the employee to the store manager, autonomy and decision making by each, within their remit, is encouraged. In Poland and in Russia, for example, the workers in the departments can become 15 hypermarkets enlarged and 7 opened in Europe. Strengthening of participative management. FRANCE www.auchan.fr 120 Auchan hypermarkets ■ Revenue of 14.4 billion euros before tax, slightly down in a difficult economic climate. Rise in pressure from Training, the key to the professionalism of teams, was reinforced in every country, being adapted to the local context of each. In order to support the policy of empowerment, the emphasis was put on management training. Following Western Europe and Poland, e-learning was launched in China in 2005. During the course of the year, almost 2.5 million hours of training were provided in the hypermarkets division, i.e. nearly 103,000 more than in 2004 (+4.3%). Internal promotion continued to be encouraged; on average this reached 30% by the end of 2005 and it was already achieving a good level in the countries where the Company has more recently become established, such as Poland where it had exceeded 35% at the end of 2005. Carried out regularly among staff, particularly in 2005, in France, in Taiwan and, for the first time, in Italy, internal opinion polls reflected a good level of satisfaction among the teams. In Portugal, Italy and France, the chains appeared in the highest ranks of classification of “companies where it is good to work”. The noticeable reduction in absenteeism and the low rate of staff turnover, generally lower than average for the profession, also demonstrate the confidence of the teams. Responsible chains Fully playing their role as part of a socially aware company, the chains have again undertaken actions of solidarity, helping children and young people. This has been the case in Portugal, for example, where 50,000 of them have been given assistance, in Spain, Italy and France, through the Fondation Auchan pour la jeunesse (Auchan Youth Fondation). Recognising the commitment of the company to the protection of the environment, certification to the ISO 14001 environmental standard was obtained by the stores in Santiago in Spain and Villebon and Fontenay in France. At the end of 2005, 11 hypermarkets were thus certified, of which 8 were in France, 2 in Spain and 1 in Hungary. 2.47 million hours of training (+ 4.3%). ■ New organisation, in order to bring together the general management of the stores – a level in the hierarchy was eliminated – to simplify the company and enable it to more smoothly whilst reducing operating costs. The tightened up general management comprises 5 operational departments and 5 functional departments. ■ Opening of the 4th food distribution discount store, Les Halles d’Auchan, in Coignières (78), replacing the trial store La Cave. ■ Refurbishment or enlargement of 11 stores: Aubière (63), Belfort (90), Bordeaux-Le-Lac (33), Gien (45), Hirson (02), Laxou (54), Maurepas (78), Melun (77), Perpignan (66), Saint-Quentin (02) and Villeneuve-d’Ascq (59). ■ Opening by the Schiever Group of the 6th hypermarket with the Auchan chain, in Châtillon-sur-Seine (21). ■ Take-up of a majority shareholding in the capital of Grosbill, Internet based consumer electronics chain. ■ Creation of an EDI (electronic data exchange) centre, in order to optimise and increase the reliability of data exchanged with suppliers. ■ Reinforcement of the policy on training and empowerment. More than 87% of employees attended at least one training course during the year. Participative management approach, through progress groups. ■ 2nd internal opinion poll involving the entire workforce: results showed improvement in most areas. 11 stores achieved ISO 14001 certification. FRANCE “segment experts”. The “participative management” approach is also reflected in the deployment of progress groups. competition, reduction in food consumption and unfavourable changes in the regulatory environment. Increase in number of visits and items sold, but fall in the average trolley. ■ Deep-rooted discount policy: average selling prices down by 4.3%. ● Overhaul of stock selections and continuation of the lowering of prices: in self-service food, – 3.2% on branded products and – 5.6% on the Auchan brand. ● Deployment of “self-discount” in 88 stores at the end of 2005. To be set up in 19 others in 2006. ● Success of new marketing campaigns, “1 euro” in particular. ■ 7.1 million customers holding the Waaoh loyalty card. ■ Partnership with SMEs: ● At the proposal of Auchan, nearly 200 SMEs had joined the “triple net” without back margin, by the end of 2005. ● Organisation of forums in North and in Normandy regions. 14.4 billion euros of revenue before tax, in 2005. 2005 REPORT ON ACTIVITY Auchan 11 Hypermarkets ■ Significant reduction in absenteeism and staff turnover. ■ Internal promotion on the increase: more than 30% of managers are former shop floor workers. ■ Signing of a new partnership agreement with the ANPE. The objective: to better satisfy the recruitment needs of the company, to diversify the methods of recruitment and to encourage occupational integration. ■ 52,300 employees: 4,678 taken on in 2005, 51% of which were through conversion from fixed term to permanent contracts. ■ Increasingly strong approach to encourage the employment of disabled persons: 1,892 disabled employees, 167 of whom were taken on in 2005, i.e. an employment rate of 5.14%. ■ Substantial new activities to support sustainable development: 1,159 Auchan brand products labelled in Braille. Strong commitments to help the environment: ● Obtaining of the ISO 14001 environmental standard certification by the stores in Villebon (91) and Fontenaysous-Bois (94). ● 51% reduction in the number of carrier bags handed out at the tills, i.e. 2.5 times better than the objective of 20%. At the end of 2005, 56 stores were “100% green tills”, no longer handing out single use plastic carrier bags. ● Eco-design approach; a reduction of packaging for Auchan and “Budget Booster” brand products by 2,300 tonnes over 2 years. ■ Continuation of activities run to assist under-privileged and young people: ● 22 projects supported by the Fondation Auchan pour la jeunesse (Auchan Youth Fondation). Partnership with the Adie* during Microcredit Week. ● Production of the 2006 greetings card in support of the Nastenka Foundation, in Russia, to accommodate and care for children suffering from cancer. ■ Auchan awarded the “Prize for excellence for commitment to society” as part of the “Grand Prix for family-owned companies” of the ASMEP and with the Special 1st Prize for Sustainable Development from the SITL (International Week for transport and logistics) for its activities in support of the development of river transport, with its transport partners Logiseine, Port de Lille and Rhône Saône Conteneur. ■ ■ ITALY www.auchan.it 41 Auchan hypermarkets ■ Maintaining rank as leader on price positioning for the chain, despite lively competition. Revenue in slight decline in a climate of economic recession and a consumer crisis. Stagnation in its number of customers and items sold. ● Reinforced ranges of deep discount products: 1,500 listed items of which 1,000 are “Budget Booster”. Strong growth in their sales. ● Average selling prices down by 4.1%. ● Creation of “self-discount” areas in Bergame and Fiumicino (Rome). To be set up in about twenty stores in 2006. ■ Enhancement of the fresh produce ranges. Expansion of ranges of products sourced from agricultural supply lines. ■ Success of the “Sma Auchan” range of 4,500 products. ■ Continuation of the policy on innovations and services. ● Second filling station for the Auchan chain, in partnership with the petroleum company Tamoil, in Curno (Bergame). In 2006, new filling stations planned for opening in Cuneo (Piedmont) and in Rescaldina (Lombardy). ● Creation of “jewellery sections” in 7 stores and “optician areas” in 4 stores. ■ Opening of 3 hypermarkets in Cesano Boscone (Lombardy), Volla (Naples) and Fiumicino (Rome). Closure of Cinisello (Milan) for enlargement. Extension of Sassari (Sardinia). ■ In 2006, opening of a hypermarket in Giugliano (Naples). ■ Finalisation of the logistics in Sicily: creation of a staple goods warehouse in Catania (Sicily). Opening of a frozen foods warehouse in Rome Santa Palomba. ■ Disposal of clothing activities (UPIM and La Rinascente chains) to a consortium comprising Investitori Associati SGR S.p.A., DB Estate Global Opportunities IB L.P, Pirelli Re S.p.A and the Borletti family. Disposal of DIY activities (50% of SIB S.p.A. – Leroy-Merlin and Bricocenter chains) to Leroy Merlin. 12 Auchan 2005 REPORT ON ACTIVITY Opening of a 4th hypermarket in the Les Halles d’Auchan chain. Take-up of a major shareholding in the capital of Grosbill. ITALY FRANCE * Association for the right to economic initiative. Average selling prices down by 4.1% in 2005. ■ Reinforcement of the “Auchan Controlled Production ” range, coming from agricultural supply lines: more than 120 products, i.e. about 40 more than in 2004. ■ New services offered. Possibility of ordering textbooks on the site www.alcampo.es. “Alcampo Telecom” fixed line telephony at low prices. ■ Opening of the 46th Alcampo hypermarket in ■ Nearly 180,000 hours of training, i.e. +12% compared with 2004. Development of self-training in all stores. Training in crisis management. ■ Creation of progress groups, in every store. ■ Launch of a quarterly commercial counter bonus. ■ 10,000 employees. Low rate of staff turnover: less than 8%. ■ Almost 44% of section heads coming through internal promotion. ■ Good results from the first internal opinion poll. ■ Signing of agreements with the authorities, for the integration of disabled workers. ■ Launch of the employee share scheme planned for 2006. ■ Creation of “Eco-tills”, in Fiumicino (Rome), no longer handing out carrier bags and intended for customers using reusable bags. ■ Activities and awareness-raising on the problems of orphans throughout the world. Partnership with the “Amici dei Bambini”. 1% of sales of more than 200 Rik & Rok products paid to a family resource centre in Reggio Calabria. ■ Mobilisation in support of the Telethon: 870,000 euros raised. SPAIN www.alcampo.es 46 Alcampo hypermarkets ■ Good growth in revenue, despite the slowdown in Opening of 3 Auchan hypermarkets. SPAIN consumption in the 2nd half. Increase in number of customers and items sold. ■ Chain continuing to lead in price positioning in a climate of very lively competition. ● Creation of “self-discount” areas in 31 hypermarkets. Spreading to about forty stores in 2006. ● Success of the “1 euro” campaign, run on 2 occasions. Albacete, Castille la Manche. ■ Transfer of the Castellón store and launch of the second phase of extension of its shopping centre. ■ Enlargement of the Motril hypermarket. ■ Creation of new filling stations for the Alcampo chain, in Motril and, in 2006, in Albacete. ■ In 2006, opening of a hypermarket in Murcia. ■ Active policy supporting the integration of disabled persons: nearly 300 employees, i.e. 2.6% of the workforce, the legal rate being 2%. In Motril, opening of the 8th filling station managed entirely by disabled workers. ■ Deployment of e-learning and introduction of new training courses, in particular for managers. More than 211,000 hours provided, i.e. +30% compared with 2004. ■ Launch of more than 80 progress groups. Objective of rolling out to all stores in 2006. ■ 12,500 employees. ■ 35% of section heads coming through internal promotion. ■ Chain rewarded on several occasions for its strong commitments to society, particularly in support of disabled persons and children in difficulty. Regular support for numerous foundations, notably “Save the Children” and “Crecer Jugando”. Development of partnerships through the Rik & Rok club. ■ Almost 300 Auchan brand products labelled in Braille. ■ Promotion of fair trade, in partnership with Intermon Oxfam. Success of the Fair Trade Fortnight, run for the 2nd consecutive year. ■ Achievement of the ISO 14001 and EMAS* environmental quality certification* by the Santiago store. Establishment of green tills in Albacete, no longer handing out single-use plastic carrier bags: wider use of reusable bags. * Eco-Management and Audit Scheme. Opening of the 46th Alcampo hypermarket in Albacete. Opening of 31 “self-discount” areas. 2005 REPORT ON ACTIVITY Auchan 13 Hypermarkets PORTUGAL www.auchan.pt 17 Jumbo hypermarkets ■ Jumbo, leading chain in the hypermarkets sector in terms of increased revenue and gains in market share, in the face of rising competitive pressure and a slowdown in consumption. Well-established chain leader in price positioning, acknowledged through a study by the Treasury Minister as being the cheapest in the country. Seasonal and “low price” campaigns. Broadening of the economy goods range: more than 1,300 listed items. ■ Enhanced quality approach. ● For fresh produce, “Auchan stamp” based on hygiene and traceability criteria awarded to 320 suppliers, i.e. about a hundred more than in 2004. ● Certification of fresh produce departments awarded by SGS/ICS to Alfragide. Including Almada and Maia, 3 stores certified at the end of 2005. ● Extended range of “Vida Auchan” products coming from agricultural supply lines: 24 new items i.e. a total of 74 at the end of 2005. More than 100 organic products. ■ Support for the export of Portuguese products to the stores of the Group in France, Luxembourg, Italy and Spain: working closely with 150 suppliers. ■ Company recognised as socially responsible by the Portuguese government, for the 3rd year running. Involvement in child aid: 50,000 children supported through 250 institutions. ■ Environment action plan in each store. Implementation of indicators to measure progress. Awareness-raising campaign “Because the environment deserves better” involving employees and customers. ■ Nearly 350 Auchan brand products labelled in Braille. ■ ■ Opening of the 17th Jumbo hypermarket, in Coimbra. ■ Creation LUXEMBOURG www.auchan.lu 1 Auchan hypermarket ■ Reinforced position as the least expensive chain, in a climate of slowing consumption and stronger competition. Rise in number of customers for the 5th year running. ● Average selling prices down by 2.7%. ● Market share for deep discount products growing strongly. ● Success of the “1,000 cheapest products in Luxembourg” campaign. ■ Stock selections adapted to the expectations of the international communities present in the Grand Duchy. In 2006, reorganisation of the non-food areas. ■ 640 employees. of a first filling station, in Aveiro. ■ 173,000 hours of training, i.e. +14% compared with 14 Auchan 2005 REPORT ON ACTIVITY Opening of the 17th Jumbo hypermarket in Coimbra. 50,000 children helped through 250 institutions. LUXEMBOURG PORTUGAL 2004. Development of e-learning and launch of new training courses, notably on new technologies and for managers. ■ 6,100 employees. Falling rate of staff turnover: less than 8%. ■ Increase in internal promotion: 55% of section heads by this route. ■ Initiative in support of the integration of disabled workers. The least expensive chain in the Grand Duchy. HUNGARY www.auchan.hu 10 Auchan hypermarkets POLAND 19 Auchan hypermarkets ■ Auchan acknowledged as the leader on prices in all catchment areas, in the face of increasingly intense competition and a still low purchasing power, due in particular to the high rate of unemployment. ● Chain ranked 1 st on prices, notably by the economic weekly Polityka, for the 2nd consecutive year, and by the daily, Fakt. ■ “Self-discount” areas (“Bazarek Luz”) opened in 8 hypermarkets: sale of products in bulk, at very low prices. ■ Innovative seasonal campaigns: swimming pools and summer games, digital convergence, wines, major “Everything at 4 zlotys” discount campaigns etc. ■ Confirmed success of the “Skarbonka” loyalty card, after 2 years in existence. ■ In 2005, enlargement of Piaseczno. ■ During the 2 nd half of 2006, opening of a store in Rzeszow in the south-east of the country. ■ Policy of empowerment and improvement of professionalism. Creation of “hit squads” – working groups for the improvement of business performance. ● High rate of internal promotion. More than 35% of section heads through this route. Three quarters of store managers are Polish. ● More than 236,000 hours of training, i.e. 29 hours per employee. Roll-out of e-learning. ■ 9,400 employees. ● ■ Position confirmed as leader on prices, in a difficult climate: tightening of regulations, slowdown in consumption and intensified competition. ● Success of economy goods: nearly 600 listed items. “Low price” marketing campaigns. ● First “self-discount” sections in Dunakeszi and Solymár. Deployment in 3 other stores in 2006. ■ Food product range revised in order to adapt it to the expectations of customers. ■ Planned launch of Auchan brand products, in 2006. ■ Opening of the 10th Auchan hypermarket, in Solymár: strengthening positions to the north-west of Budapest. ■ Refurbishment and enlargement of Soroksar. Creation of a garden centre in Szigetszentmiklós. ■ Setting up of filling stations with discount prices in five stores. ■ More than 300 jobs created on the opening of Solymár, bringing the workforce up to 4,500 employees. Significant fall in staff turnover. ■ More than 126,000 hours of training provided (+4.7%) during the course of the year, i.e. 30 hours per worker, in particular on basic hypermarket skills. Partnership with a technical college for the training of butchers. Launch of the first progress groups. ■ Creation of a “health protection” plan aimed at employees. ■ New commitments in terms of sustainable development. More than 60% of paper and plastic waste recycled. Adoption of more environmentally friendly carrier bags and launch of reusable bags. ● Collaboration with the Ministry of Agriculture to develop a code of ethics between the various partners from producer to distributor. ● Involvement in activities of the Europrosperitas 2010 Foundation, encouraging sustainable development. ● Aid to the Red Cross, after the floods in the Nógrád region. ● Opening of 8 “self-discount” areas. More than 35% of section heads coming through internal promotion. HUNGARY POLAND ■ Creation of an export cell. Support for export by Polish SMEs to other countries where the Group is established. ■ Setting up of an ethics committee. Opening of the 10th Auchan hypermarket in Solymár (Budapest). 2005 REPORT ON ACTIVITY Auchan 15 Hypermarkets RUSSIA www.auchan.ru MAINLAND CHINA 7 Auchan hypermarkets 13 Auchan 59 RT Mart (1) ■ Strong discount positioning of the chain. Rise in selling prices well below inflation. ● Stock selections mainly comprising local economy goods. Launch in 2005 of a range of deep discount products manufactured in Russia. ● Success of seasonal campaigns. ■ Broadened range of fresh produce and highly developed approach to food safety. Strict quality controls. ■ First offers of credit, with Banque Accord. (1) hypermarkets hypermarkets ■ Auchan, the least expensive chain in its catchment areas, in a climate of rising competition. “Budget Booster” deep discount products much appreciated by customers. More than 800 listed items offered, i.e. more than double that of 2004. “Low price” marketing campaign: price reduction of 5% across the range, maintained after the campaign. ● Success of the seasonal departments, back to school and clothing in particular. ■ Development of Auchan brand products launched in 2004: more than 450 listed items. ■ Creation, in the store in Suzhou, of a range of fresh vegetables, “Auchan Sélection” coming from sustainable agriculture. Objective of extending the approach to other stores and to the meat and fruit departments, to reach 70 listed items by the end of 2006. ■ Wider selection in the car and DIY departments. ● ■ Opening of the 7th Auchan hypermarket in Moscow Altufievo. ■ Enlargement of the warehouse. ■ More than 266,000 hours of training provided, an increase of 30% compared with 2004, i.e. 30 hours per worker. Creation of a school for management teams and, for the employees responsible for a trade, a school for experts in that trade. ■ Building of the teams for store openings, bringing the workforce up to 8,400 employees. Appointment of the 1st Russian store manager. ■ Opening of 2 Auchan hypermarkets, in Ningbo (200 km to the south of Shanghai) and in Tianjin (130 km to the east of Beijing), and 12 RT Mart stores. ■ In 2006, opening of 4 Auchan hypermarkets, in the regions of Shanghai and Chengdu. ■ Involvement of the stores in activities to support children in difficulty. Production, with Auchan France, of the 2006 greetings card in support of the Nastenka Foundation, for children suffering from cancer. Nearly 23,000 euros paid to fund the care programmes. ■ Development and implementation of the Auchan China company vision. 16 Auchan 2005 REPORT ON ACTIVITY Launch of a range of “Budget Booster” deep discount products. Opening of a 7th hypermarket in Moscow. CHINA RUSSIA ■ Almost 277,000 hours of training provided, a rise of +18% compared with 2004, i.e. 48 hours per worker. Launch of e-learning; roll-out planned for 2006. Setting up of progress groups. ■ At the end of 2005, workforce increased by +15% through store openings. 6,300 employees in the Auchan hypermarkets. ■ Establishment of partnerships with schools and universities, by each Auchan hypermarket. Opening of 2 Auchan hypermarkets, in Ningbo and in Tianjin and of 12 RT Mart stores. Creation of a fresh product range, “Auchan Sélection”. ■ Chain recognised by the authorities for its strong policy in support of the integration of disabled workers. share scheme under consideration. ■ Employee ■ Actions for the protection of the environment: MOROCCO 12 Marjane (3) hypermarkets recycling of 100% of packaging waste. (1) Partnership with Ruentex: 67.2% of Auchan hypermarkets and 32.8% of RT Mart hypermarkets held by the Auchan Group. TAIWAN 19 RT Mart hypermarkets (2) ■ Discount policy, on all products, in a very competitive climate. Original marketing campaigns and a broader selection of deep discount products: more than 1,500 listed items, i.e. +80% compared with 2004. ■ Refurbishment of the store in Anping. Change from Apic to RT Mart chain. ■ Renovation and expansion of the Neihu 1 shopping mall, in Taipei. ■ At the end of 2005, a total of 23 stores integrated and affiliated: 14 RT Mart fully owned and 5 under management and supply contract, 3 Save & Safe and 1 Tuntex under central purchasing membership contract. ■ Work on the improvement of professionalism and the stabilisation of teams. Introduction of a progress bonus, a profit-sharing scheme calculated on the basis of the improvements in turnover and cash-flow. ● Creation of an internal bakery training college. ● New partnerships established with professional schools. ● In 2006, setting up of the first progress groups. ■ 4,700 employees. Falling staff turnover. ■ First internal opinion poll carried out among the staff. ■ Approach to encourage the integration of disabled employees: number of workers up by +15%, above legal requirements. ● ■ Good performances in the face of intensified competition. Rise in number of customers and items sold. ■ Overhaul of stock selections and creation of a range of “economy goods” manufactured in Morocco: 50 listed items, mainly foods, sold at 10 to 15% cheaper that the bottom-of-the-range branded products. ■ Success of the “10-15 dirhams” campaign. ■ Greater emphasis on heavier discounting adopted by the Derb Sultan store. ■ Enhanced quality approach: awareness raising and training of teams on food safety. Launch of monthly horizontal audits. Creation of local supply chains for fruit and vegetables and beef, with a quality specification stipulating the benchmark standards for the methods of production. ■ Opening of 2 Marjane hypermarkets, in Meknès and in Derb Sultan (Casablanca). Expansion of Hay Riad. ■ New import warehouse Staple and non food items, in partnership with Acima. ■ In 2006, 2 store openings planned, in Marrakech and in Hay Hassani . ■ Creation of 600 jobs for the openings, bringing the workforce up to 3,300 employees. ■ Close partnership with Moroccan SMEs. Local supply chains and support for exports: Morocco Fortnight organised in the Auchan hypermarkets in France. ■ 7% reduction in energy consumption. ■ Continuation of actions on solidarity. Support for the creation of a community centre beside Derb Sultan. (3) The Auchan Group is present in Morocco through its Marjane subsidiary, held 51% by the ONA and 49% by Auchan. 1,500 deep discount products: + 80% compared with 2004. MOROCCO TAIWAN (2) of which 14 are consolidated. Opening of the largest hypermarket in Morocco, in Derb Sultan (Casablanca). 2005 REPORT ON ACTIVITY Auchan 17 Supermarkets « Whilst it has had to face a difficult economic situation in Europe, particularly in France and Italy, the supermarkets division showed a good resilience and has retained its market shares. By pursuing our marketing trials approach, we have built on our business, through innovation and high 6.7 billion € of consolidated revenue before tax in 2005 6 countries 2,181 supermarkets (of which 654 are integrated, 601 franchised and 926 associated) as at 31 December 2005 29,150 employees (average headcount, full time equivalent) performance to best meet the expectations of our customers. Finally, this year we have established ourselves in a 6th country, Russia, with the first Atak supermarket in Moscow. » Benoist Cirotteau, Chairman and General Manager 20% of the revenue for the Group Supermarkets 23 additional integrated supermarkets in 2005 50% of the revenue for the supermarkets division achieved abroad Seeking growth and innovation In 2005, the whole of the European food distribution industry, including the hard discounters, suffered, as in the previous year, from an unfavourable economic situation. In this difficult context, especially in France and Italy, the supermarkets division succeeded in retaining its markets shares and saw its number of customers continue to increase. The growth in sales abroad, notably in Spain and in Morocco, helped to offset the fall in revenue seen in France and Italy. In 2005, the revenue for the division came to 6.7 billion euros. This account for 20% of the Group revenue. The number of supermarkets grew by 154 sales outlets (23 integrated, 37 franchised and 94 associated). It includes 16 additional integrated stores in Western Europe: 8 in France, 7 in Italy and 1 in Spain. The refurbishment programme was continued in these 3 countries: it involved 19 supermarkets in France and 8 in Spain, and was begun in Italy. The growth of the franchise continued, notably in Italy where the total was increased by about 40 stores. The year was marked by the opening up of a 6th country for the establishment of the division, Russia, where the 1st store of the Atak discount chain was unveiled in Moscow in October. The A-tak chain was also trialled in Poland, in 2 stores in Warsaw. Moreover, an Elea supermarket was opened in Gdynia. Finally, Acima opened 4 stores in Morocco and now has a total of 20. At the end of 2005, the supermarkets division had a total of 2,181 stores in 6 countries, of which 654 were integrated, 601 franchised and 926 associated. A simple range to meet the needs of every customer In 2005, the supermarkets division continued its aggressive and innovative marketing policy, endeavouring to develop simple product ranges, covering the essential needs of all customers, whatever their purchasing power. Opening of a 1st Atak in Russia. 20 Auchan 2005 REPORT ON ACTIVITY The chains strengthened their discount positioning and carried out new price reductions. These were accompanied by low price marketing campaigns, for example “For 2 or 4 zlotys” in Elea. The new slogan adopted in Spain, “Sabeco precios bajos, bajos” (“Sabeco, low, low prices”) and the campaigns such as “Integral refund” in France and “Birthday” in Italy, with a 20% reduction on the till receipt, demonstrate the aggressive pricing policy of the chains. Over the year, average selling prices were reduced by more than 4% in France and 2.5% in Italy. In all of the European countries, the deep discount product ranges were extended and accounted for an increasing proportion of sales. This year a range of “Budget Booster” economy goods was launched in Morocco. Work on the refining of stock ranges enabled the development of a streamlined product range to meet the expectations of customers. Within all of the chains, it is adapted to the local context and includes a wide selection of regional products. In order to enhance the close relationship with customers, innovative new services were created. A strong point of the chains, the fresh foods sections were extended. Product quality remains a priority. A policy of marketing trials The policy of marketing trials, initiated in 2004, was continued. The trials conducted included reduced stock selections, range of bulk-buy products, and new chains. In France, a dozen Atac supermarkets reviewed their stock selections to give priority to own brand products, and “Maxi discount” sales areas were created in about fifty stores. The Simply Market format, offering optimised selections of products at the lowest price, in a colour-coded and carefully designed environment, was trialled in Italy and then in France and, from the beginning of 2006, in Spain. Other chains, such as Easymarché in France and A-tak in Poland were trialled, at one or more sales outlets. +154 supermarkets in 2005: 23 integrated, 37 franchised and 94 associated. Policy of marketing trials. Teams of retail entrepreneurs With the ambition of creating teams of professional employees, true “retail –entrepreneurs”, the Company continued its strong policy of empowerment. In all of the chains, training continued to increase, primarily on skills, through the hands-on workshops. These were set up in Morocco in 2005 and have been deployed in other countries. In France, more than 1,000 fruit and vegetable workers and 250 seafood workers have been trained in this way. The emphasis has also been placed on training for management. In France in particular, Atac continued its “Cap 3” approach, aimed at building a common management culture, for greater empowerment and autonomy. In 2005, a total of almost 190,000 hours of training were provided, within the supermarkets division, i.e. 17,000 more than in 2004 (+10%). To continuously improve the business and to build a closer relationship with customers, the policy of participative management was also reflected in the roll-out of progress groups. Following France and Poland, these were launched this year in Spain. The integration of disabled persons remains, moreover, a strong area of focus, particularly in Spain and France. Supportive chains Responsible economic players, the chains have carried out new actions of solidarity, at a local as well as at a national level. Whether in the form of financial support or food donations, they regularly provide assistance to bodies and associations. In Italy, the Sma chain was again involved in helping orphans and was, for the 4th year running, an official partner for the Telethon. In France, Atac renewed its partnership with the ADIE*, taking part in Microcredit Week and producing its 2006 greetings card for the benefit of the association. Actions to protect the environment were also continued. In France, for example, 80% of Atac supermarkets no longer hand out disposable carrier bags. 190,000 hours of training provided (+ 10%). FRANCE * Association for the right to economic initiative. FRANCE www.atac.fr 419 supermarkets 278 integrated (of which 272 are Atac), 59 franchised and 82 associated with the Schiever group ■ Slight fall in revenue in a difficult climate with stagnation in consumption and unfavourable changes in the regulatory environment. Stability of market share; rise in its number of customers and in the number of items sold. ■ 20 th anniversary of the Atac chain. Strengthened discount positioning. ● Enhancement of the deep discount ranges: strong growth in their sales. ● Average selling prices lower by more than 4%. ● Success of the marketing campaigns “20 years of Atac”, “Integral refund”, “Cheapest back to school in France” etc. ■ Policy of marketing trials: ● Discount chains: Simply Market, Easy Marché, Fredi, Eurobounta. ● “Maxi discount” sales areas, in about fifteen stores: simple packaging, bulk packs, staple products and unbranded foods presented in their original packaging. ● In about a dozen stores, optimised and streamlined range of goods: priority to own brand, Auchan and deep discount products. ■ Promotion of the non–food seasonal range. ■ New loyalty card: opportunity to collect euros in a “kitty” and personalised promotional offers. ■ 8 additional integrated sales outlets. ■ Continuation of the renovation programme: 19 stores enlarged or refurbished in 2005. ■ New information system for the management of stock flows. ■ In 2006, opening of about 20 stores planned. ■ Strong initiatives for the improvement of professionalism. ● Approach known as “Cap 3”: common management culture, in order to reinforce empowerment and autonomy. ● Hands-on training workshops, primarily on fresh products: more than 1,000 workers trained on fruit and vegetables and 250 on seafood; begun for bread, cakes and pastries. ● Initiative and progress groups: sharing of good practices to improve the business. ● Development of training, in particular for managers and for new recruits. Almost 100,000 hours provided, i.e. + 8%. ■ Partnership with the ANPE to develop the method of recruitment based on competencies. ■ 13,600 employees. ■ Continuation of the policy for the integration of disabled workers, through the Handicap Atac programme: 6.13% of workers, i.e. more than 2 percentage points above the average for private companies. Awareness raising of teams. Average selling prices lower by more than 4%. Nearly 1,000 fruit and vegetable employees trained through the ”hands-on” training workshops. 2005 REPORT ON ACTIVITY Auchan 21 Supermarkets ■ Extensive environmental approach: ■ 4th year as a partner in the Telethon: 730,000 euros 80% of stores no longer handing out carrier bags. Cardboard and plastic recycling. More than 40 tonnes of batteries collected (+10%). ● Investment to encourage architectural integration when opening or refurbishing stores. ■ New actions on solidarity, at local and national levels. Food donations, support for the Handisport federation. Partnership with the ADIE*: participation in Microcredit Week and production of the 2006 greetings card for the benefit of the association. raised. ■ Events and awareness-raising on the problems of orphans throughout the world. Partnership with the Friends of Children (Amici dei Bambini). 1% of sales of more than 200 Rik & Rok products paid to a family resource centre in Reggio Calabria. ■ Extension of the fair trade products range. ● ● * Association for the right to economic initiative. www.smasupermercati.it ITALY www.cityper.it 1,492 supermarkets of which 218 integrated Sma and Cityper(1), 542 franchised and 732 associated. ■ Aggressive pricing policy, in a difficult climate of sluggish consumption and price wars. Stable revenue. Average selling prices lower by 2.5%. “Birthday” campaign, with a 20% reduction on the till receipt. ● More than 600 listed deep discount items: increase in revenue and number of items sold. ● Trial of a new supermarket discount format, “Every day low prices”, in the Simply Market chain: rationalisation of the range of staple goods and conventional fresh products. Emphasis placed on deep discounts and own brands. 9 Sma supermarkets transferred into the chain and 6 stores opened. ● Bulk concept trialled since 2004, rolled out in 8 Cityper stores. ■ Development of product ranges coming from agricultural supply lines. ● ■ Opening of 6 Simply Market stores and one Cityper. 37 additional stores franchised. ■ Refurbishment and expansion of 2 stores. ■ Creation of a chilled products warehouse in Offagna (Ancona). Expansion of the warehouse in Palma Torrazze (Catania) and of the chilled products warehouse in Rome. ■ In 2006, planned opening of 5 integrated supermarkets. (1) 161 Sma, 15 Simply Market, 42 Cityper. SPAIN www.sabeco.es 235 stores of which 123 integrated Sabeco supermarkets and 112 associated minimarkets. ■ Stable revenue in the face of intense competition. Stronger positioning on discount. ● New slogan Sabeco precios bajos, bajos (Sabeco, low, low prices). ● Trial of a discount concept in Lerida and, at the beginning of 2006, of the Simply Market format. ■ Building up of the fresh products sections. Hot food point in the bakery in 50 stores. Expansion of the fresh and cooked meats sections. ■ Product range adapted to each catchment area, including regional products. ■ 5 supermarkets opened and 3 bought out. Closure of 7 sales outlets. Opening of 6 stores and expansion of 7 planned for 2006. ■ Continuation of the refurbishment programme: 8 stores modernised. ■ Opening of a new distribution centre in Miranda de Ebro to supply 51 stores in the north of the country. ■ Rollout of the order proposal system. ■ Extension of new hands-on training workshops for fresh meats, fish and bakery. New training courses. ■ Creation of the 1st progress groups. ■ 5,250 employees. ■ Partnership with Fundosa and the ONCE for the integration of disabled workers. ■ Agreement with the government of Aragon for the training and integration of young people. ■ Reinforcement of training. +51% of hours provided compared with 2004. New training modules (customer service, management, training for trainers, crisis management). Hands-on training workshops for fresh meat, cooked meats and cheese. ■ 8,500 employees. ■ Partnership, in Rome, with the “Comunità Capodarco” association, for the integration of disabled young people into the workforce. notably through supporting the activities of the Red Cross, Intermon Oxfam and the IUVE Foundation. Agreement with the Women’s Institute to provide employment to female victims of domestic violence. 22 Auchan 2005 REPORT ON ACTIVITY Average selling prices Opening of lower by 2.5%. 7 integrated stores. SPAIN ■ Assistance given to under-privileged persons; ● ITALY ● New slogan “Sabeco, low, low prices”. Buyout of 3 supermarkets in Zaragoza. RUSSIA 1 Atak supermarket ■ Opening of the first Atak supermarket in Moscow Kluchevaya. Discount positioning and priority given to the range of staple commodities. ■ 65 people recruited. POLAND MOROCCO 14 supermarkets 20 Acima supermarkets of which 12 Elea and 2 A-tak. (2) ■ Acima consistently the number 1 supermarket chain, on price positioning. Low price marketing ■ Active pricing policy, in a climate of stronger competition. ● Low price campaigns, “for 2 and 4 zlotys”, selling in bulk. Deep discount ranges reinforced: nearly 900 listed items, more than half of which are the “Budget Booster” brand. ● Trialling of a local discount format with the A-tak chain: simplified product range and emphasis on fresh produce, perfumery and services. ■ Priority given to the fresh food departments and expansion of the range of regional products. Strong commitments to quality: awareness-raising of teams about food safety. ■ Innovative services: bank withdrawal, Lotto, opportunity to pay bills for telephone, water, electricity etc. at the till. campaigns and creation of a range of “Budget Booster” deep discount products manufactured by local companies. ■ New initiatives on food safety: increase in the number of audits on fresh products and creation of hygiene and safety committees. ■ Rapid expansion of the chain: ● 20 supermarkets opened in 4 years, 4 of which were in 2005, in Témara (Rabat), Massira (Marrakech), Hjajma (Casablanca) and Tangiers. ● In 2006, 6 planned store openings: 4 in Casablanca, 1 in Meknès and 1 in Fez. ■ Creation of a warehouse for staple products, in Casablanca. ■ Opening of an Elea in Gdynia and of 2 discount stores of the A-tak chain, in Warsaw. Closure of the Elea store in Bielsko Biala. ■ 3 store openings planned for 2006: 2 Elea and trialling of an A-tak, in the provinces. ■ Creation, with the hypermarkets of Auchan Poland, of the first logistical structures, for staple products and for promotional campaigns. In 2006, launch of the supply chain for fresh products. ■ 250 jobs created in 2005, bringing the workforce to 1,025 employees. ■ Emphasis on training: more than 27,000 hours provided, i.e. 25 hours per employee. ● First hands-on training workshops on fresh meats, tills and, beginning in 2006, on fruit and vegetables. ● Internal training programmes intended for store managers and section heads. ■ 81% of staff given training in 2005. New training courses for managers. employees. ■ Continuation of the progress groups approach, for fresh meats, fruits and vegetables, logistics. Mobilisation on general cost reduction. ■ Support provided to several charitable organisations, ■ 750 in particular to help handicapped children. (2) The Group is present in Morocco through its subsidiary Acima, held 51% by the ONA and 49% by Auchan. Opening of the first Atak supermarket, in Moscow. MOROCCO Trial of the A-tak chain. RUSSIA POLAND ■ Participation by stores in the Food Bank day of action. 20 Acima supermarkets opened in 5 years, 4 of which were in 2005. Creation of a “Budget Booster” deep discount products range. 2005 REPORT ON ACTIVITY Auchan 23 Immochan « 2005 was another year of sustained growth for Immochan. 60,000 m2 of commercial premises were opened in our shopping malls and the setting up of dedicated Immochan subsidiaries in each country, begun last year, is in the process of being finalised. Everywhere, the growth in our activities has been 307 shopping centres in the Group, of which 257 are managed by Immochan 250 employees (average headcount, full time equivalent) in 11 countries 1.1 million m2 of shopping malls of which dependent on strong human contributions. Training and the sharing of expertise have contributed significantly to improving the professionalism in each of our four skills areas as property developer, marketer, manager and investor. » 41% Vianney Mulliez, Chairman abroad are in France and 59% Immochan Sustained growth of activity 60,000 m 2 of commercial premises created in malls in 2005 +500 new leases in the shopping malls in 2005 Reached the 300 million euros mark for revenue in 2005, of which 52% was in France 4 skills areas: property developer, marketer, manager, investor The real estate subsidiary of the Auchan Group and one of the leading European companies for developing, owning and operating shopping centres, Immochan has had another year of sustained growth. The creation of the holding company Immochan International, in 2004, was followed by the setting up, in every country, of dedicated and adapted legal and managerial structures. In this way, the company Immochan Hungary was created in 2005. The reorganisation of the real estate division of the Group will be completed in 2006, with the creation of Immochan companies in Poland and in Portugal. In a highly dynamic market climate, Immochan recorded very good results for 2005 and remains a key element in the profitability of the Group. In all countries, the rates of vacant premises in the shopping malls stayed at a very low level (5% on average), particularly in Portugal, Italy and Poland where they came close to 2%. In Europe, 20% of all leases were renewed during the year. The development of activities abroad was continued. During the course of the year, 60,000 m2 of commercial premises were created in shopping malls, in particular 45,000 m2 in Europe, mainly in Italy, Hungary and Russia, where a shopping centre was opened in each of these three countries, and 13,000 m2 in Asia, where 2 Auchan shopping centres were inaugurated in China. At the end of 2005, the share of revenue from abroad came to 48%. The development of business parks has also continued, notably in France, where 50 middle-sized outlets were opened. It was started in Poland and in Hungary, where it will continue in 2006. At the end of 2005, the Group had a total of 307 shopping centres, 257 of which are managed by Immochan. A policy for the development of high quality shopping centres The priority for Immochan is to develop high quality and user friendly shopping centres, true life spaces where every customer feels good. Visible throughout their visit to the shopping centre, the visual identity created two years ago has Creation of the dedicated Immochan subsidiary in Hungary in 2005, then in Portugal and in Poland in 2006. 26 Auchan 2005 REPORT ON ACTIVITY been rolled out to about twenty shopping centres in France. It has also been partially deployed in Poland and in Hungary. In order to monitor the quality of the shopping centres, analytical tools are regularly used, such as Qualicentre, rolled out in France in 2005. From access and parking to the facilities and services offered, about 300 aspects are checked, 4 times per year. This external audit makes it possible to identify aspects for improvement and to measure progress. The mix of shops itself is decided on the basis of each catchment area. Key partners, the chains are bringing their expertise together with that of Immochan to provide, together, a range relevant and appropriate to the local situation. In order to build steady relations with them, Immochan is also continuously listening to the retailers operating in its shopping malls, through a “flash satisfaction” survey, initiated in 2005. Adopting a sustainable development approach, Immochan is committed to optimising the use of natural resources and to blending each shopping centre into its environment. The real estate subsidiary works on their architectural integration, by encouraging the use of local materials and by placing an emphasis on green spaces. In 2005, for example, the expansion and renovation of the Quentin de la Tour shopping centre (Saint-Quentin – 02), in France, was the subject of architectural and landscaping specifications to achieve effective harmony of the building and its parking areas within their environment. To emphasise their local roots, baked clay bricks were used and more than 4,000 shrubs were planted. Teams of recognised experts The growth of the real estate activity is accompanied in every country by significant investment in the teams. Training courses have been created in order to extend skills through the transfer of expertise abroad. After the formalisation of a reference system, performance criteria have been defined and good practices have been identified. These have been made available to all, through new tools, in particular via the IT systems that were rolled out in all countries in 2005. 5 shopping centres opened and 8 expanded in 2005. Rate of vacant premises in shopping malls at less than 5%. CENTRAL AND EASTERN EUROPE FRANCE www.immochan.com www.immochan.com 120 shopping centres 36 shopping centres of which 102 are managed by Immochan of which 31 are managed by Immochan ■ Finalisation of the reorganisation of Immochan France into skills areas. Reinforcement of property development and operational teams. Extension of training. ■ Renovation and enlargement of 5 shopping centres: Saint Sébastien (44), Bordeaux Le Lac (33), Saint-Quentin (02), Illkirch (67) and Laxou (54). More than 3,000 m2 created in shopping malls during the course of the year. ■ Creation of the company Immochan Hungary. ■ Development of retail parks on the Auchan sites: opening of 3 Decathlon stores in Budapest, of a DIY centre in Csömör and of a household electrical appliances centre in Dunakeszi. Plan for a strip mall (open air, out-of-town retail park) in Dunakeszi at the beginning of 2006. ■ Creation of 19 shops upon the opening of Solymár. ■ Very low rate of vacant premises in Poland. ■ Nearly 2,800 leases in shopping malls and 370 on retail parks, at the end of 2005. ■ More than 75,000 m2 of commercial premises authorised in 2005, on the business parks and in shopping malls. Plan for the creation of a “Furniture City” in Melun (77), in partnership with Ségécé: 31,000 m2 of premises specialising in fittings for the home. ■ Rolling out of the visual identity created 2 years ago: ■ Work on the improvement of professionalism and on the consolidation of the teams. ■ Development of retail parks on the Auchan sites: establishment of specialist centres in Wroclaw, Bialystok and Zory. In 2006, opening of a strip mall in Bielsko Biala. ■ In 2006, creation of the company Immochan Poland during the 1st half and renewal of 40% of the leases in the shopping malls. Opening of a shopping centre in Rzeszow. ■ Creation of 72 shops in Russia, upon the opening of Auchan Moscow Altufievo. Reinforcement of teams in terms of property development skills. adopted by 18 shopping centres by the end of 2005. MOROCCO www.immochan.com WESTERN EUROPE www.immochan.com 12 shopping centres 107 shopping centres managed by Immochan, in partnership with ONA of which 80 are managed by Immochan ■ Gallerie commerciali Italia (G.C.I.)*: leadership in the commercial real estate market in Italy. 43 shopping centres managed: nearly 300,000 m2 of commercial premises in malls. ■ Reinforcement of the teams. ■ Creation of 56 shops when the shopping centre was opened in Cesano Boscone (Milan). ■ Plans for the opening of regional shopping centres, notably in Giugliano (Naples) in 2006. ■ In Spain, expansion of the La Laguna mall (Tenerife). Doubling in size to reach 9,600 m2. ■ Creation of about 40 shops upon the opening of the hypermarkets in Marjane in Meknès and Derb Sultan (Casablanca). ASIA www.immochan.com 32 shopping centres managed by Immochan ■ 60 shops created in China during the course of the year: opening of malls in Ningbo and Tianjin, expansion of Wuxi. 390 shops in total at the end of 2005. ■ In Taiwan, expansion of the mall in Neihu 1 (Taipei): ■ Creation of the company Immochan Portugal, during the 13 shops created. 1st half of 2006. Very low rate of vacant premises. * G.C.I. held 51% by Immochan International and 49% by Simon Property Group. 45,000 m2 of commercial premises created in shopping malls in Europe and 13,000 m2 in Asia. Finalisation of the skills reference system and extension of training. 2005 REPORT ON ACTIVITY Auchan 27 Banque Accord « 2005 was a very good year for Banque Accord. Our net banking income rose by 27%, our net income by 42% and our outstanding credits by 20%. The total amount paid with Banque Accord cards was also on the increase by 20%. The year was notable for the integration of the Egg France activities and the repurchase of the shares in our subsidiary in Portugal from Cofinoga. 4.3 million customers of which 2.4 million are in France 1,000 employees (average headcount, full time equivalent) of which 760 are in France We have also launched in our 7th country, Russia, and signed new partnership agreements in Hungary, Spain, Italy and France. For us, 2006 will be the year of electronic banking, with the takeoff of our specialist CardOps division, new chains conquests and the launch of an activity in China. » Jérôme Guillemard, Chairman 6.2 billion € paid with the cards operated by Banque Accord (+20% compared with 2004) Banque Accord Durable performances For the 6th consecutive year, in 2005 Banque Accord maintained its two-figure growth and continued its development of products, chains and countries. The operating income rose by 34.9% to 52.5 million euros and the Net Banking Income by 27%. refinancing of bilateral loans and the improved availability of liquid assets. The banking subsidiary of the Group gained confirmation of its Standard & Poor’s ratings (A- for the long term and A2 for the short term). Up by 20% compared with 2004, the total amount paid with the cards reached 6.2 billion euros. Continuing its progress, the number of customers came to 4.3 million card holders, 2.4 million of whom are in France and 1.2 million in Spain. This performance has been achieved thanks to the innovative recruitment campaigns and to the development of partnerships with the chains. A bank close to its customers and accessible to the greatest possible number The mission of Banque Accord is to make access to financial products and services more democratic. In every country, in 2005 it has continued with its objective of being the least expensive bank on the market. In a strongly competitive climate, its bank cards, as much in France as in Italy and, soon, in Hungary and in Poland, remain the most competitive on the market, as are its revolving rates and rates for personal loans. Banque Accord France launched several campaigns for personal loans at single rates of 2.60% and 2.90%, as well as a new life assurance product, Accord Avenir. +450,000 To support the growth of Auchan, Banque Accord has created its Russian subsidiary: BA Finans. The first financial product was offered in two Auchan hypermarkets and a card will complete the range in 2006. Banque Accord also repurchased its shares in Crediplus from Cofinoga and now holds 100% of its Portuguese subsidiary. +27 % The year 2005 saw the creation of a new electronic banking division, Cardops, which will enable the volumes of transactions to be massed together, thereby achieving economies of scale. Each subsidiary will thus be able to benefit from the expertise developed in France. In order to build on its close relationship with its customers, Banque Accord is developing banking areas within the hypermarkets or their shopping malls. After France, in 2006 it will be opening its first areas in Poland and Spain. The growth of the bank is, furthermore, reflected in the launch of new direct brands of credit and personal loan. After the takeover of its card and credit activities at the end of 2004, in 2005 Egg France took up the name Oney.fr. In Portugal, the Lyberdade brand was created. A company open to all new customers net banking income +42 % net income Finally, new partnerships have been developed with the chains: Cityper and Leroy-Merlin in Italy, Norauto, GrosBill.com and Electro Dépôt in France, Décathlon in Hungary and Spain, Aki in Spain and Portugal. To fund its growth, in September Banque Accord carried out a new bond issue for a sum of 200 million euros. In addition, at the beginning of the year it signed a syndicated load for 500 million euros with eight banks to fund the general needs of the company, including the Creation, with Finansbank, of the subsidiary BA Finans, in Russia. 30 Auchan 2005 REPORT ON ACTIVITY In 2005, the integration of a proportion of the workforce of Egg France, in France, and the growth abroad enabled Banque Accord to pass the 1,000 employees mark, of whom 600 have been taken on in the last five years. This rapid expansion of the business has represented significant investment in human resources, particularly in relation to career management, training and the detection of potential. The emphasis has been most especially on management training: in France, a set of management benchmarks has been created. The investment of the business in its teams is shown equally by an active policy in favour of diversity in its recruitment policy and in internal promotion. In France, the workforce brings together about 760 employees of 17 nationalities. This strong commitment by Banque Accord 100% ownership of Crediplus in Portugal. Launch of new direct brands: Oney.fr in France and Lyberdade in Portugal. was formalised in 2005 by the signing of the “Charter on Diversity” with the Alliances association. Buoyed by the values of the Auchan Group, whose mission is to give purchasing power to the greatest possible number of people, Banque Accord is endeavouring to make access to consumption possible for everyone. In France, it took part in the “Portable computer for 1 euro per day” and “Driving licence for 1 euro per day”, campaigns initiated by the Government. In addition, acting as a responsible economic player, the company joined forces in the battle against overindebtedness. A partnership was signed with the “Fédération Française des Associations Cresus” (French Federation of Cresus Associations) which combats overindebtedness. Another illustration of the policy of Banque Accord towards sustainable development in society was its involvement in France in Microcredit Week, organised by the Adie*. In 2006, Banque Accord will fund the free phone number for the association and will create a free Visa card aimed at unemployed members creating new businesses. PORTUGAL www.crediplus.pt ■ Rise of more than 9% in its number of customers. Repurchase from Cofinoga of its share (49%) in Crediplus, now wholly owned by Banque Accord. ■ Doubling of the workforce. 130 employees (+55%). ■ Launch to the general public of the direct brand Lyberdade and of a new insurance product. ■ Signing of a partnership with Aki. ■ ITALY www.cartaccord.it ■ New partnerships with the chains: Accord Card issued in Cityper stores and trial of a personal credit card for Leroy Merlin. ■ Deployment of the personal loan in Auchan hypermarkets. POLAND www.swiataccord.pl ■ Opening www.banque-accord.fr FRANCE www.oney.fr ■ 2.4 million customers. Creation of the direct brand, Oney.fr, to replace Egg France. ■ Banque Accord areas in 8 Auchan hypermarkets. ■ Launch of a new life assurance product, “Accord Avenir”. ■ New partnerships with chains: Norauto, GrosBill.com, Electro Dépôt and Mutant, a subsidiary of the April Group. ■ Almost 120 employees taken on In 2005. ■ www.banque-accord.fr, 7 th ranked French banking website according to Médiamétrie (December 2005) on the basis of the number of single hits. ■ Strong social commitments: ● Partnership with the French Federation of Cresus Associations to combat overindebtedness. ● Banque Accord national partner in Microcredit Week organised by the Adie(1). ● Signing of the ”Charter on Diversity“. ■ SPAIN www.accordfin.es million customers. with the Décathlon and test launch in 8 Aki stores. ■ Expansion of services linked to the card: card protection insurance and Internet telephony product. ■ Launch of the revolving personal loan. ■ Opening of 3 financial areas in Alcampo. ■ 1.2 ■ Partnership Creation of CardOps, the electronic banking division of Banque Accord. of Accord areas in 3 Auchan hypermarkets. of the Internet site www.swiataccord.pl. ■ Launch of the personal loan and, in 2006, of the Visa Auchan Bank Card. ■ Creation HUNGARY www.accord.hu ■ Partnership with Décathlon. ■ Initiation of the personal loan activity. Three new products: additional revolving, personal loan and cash loan(2). of the Accord desk in an Auchan hypermarket. ■ In 2006, launch of the Auchan MasterCard bank card. ■ Trial RUSSIA of BA Finans, in partnership with Finansbank. First offer of credit, in the stores in Khimki and Altufievo. ■ Creation CHINA ■ Opening of a representative office in Shanghai. (1) Association for the right to economic initiative. (2) Personal loan for a small sum granted in 30 minutes in the store. Signing of new partnership agreements in Europe with Décathlon, Norauto and Cityper. 2005 REPORT ON ACTIVITY Auchan 31 Organisation chart Legal organisation chart Operational organisation chart - April 2006 SUPERVISORY BOARD HYPERMARKETS GÉRARD MULLIEZ FOUNDER, CHAIRMAN, until June 6th 2006* VIANNEY MULLIEZ CHAIRMAN, after June 6th 2006* JEAN-BERNARD GUILLEBERT VICE-CHAIRMAN THIERRY MULLIEZ VICE-CHAIRMAN DANIEL BACROT FRANÇOIS LECLERCQ CHRISTOPHE DUBRULLE Chairman and General Manager XAVIER DE MÉZERAC Group Finance JEAN-ANDRÉ LAFFITTE Group Management Control HENRI MATHIAS Group Support Services VIANNEY MULLIEZ Group Development PHILIPPE SAUDO Group Human Resources COUNTRY BOARDS WESTERN EUROPE FRANCE ARNAUD MULLIEZ, Chairman HENRI MATHIAS, Vice-Chairman PHILIPPE BAROUKH, General Manager LUXEMBOURG PHILIPPE BAROUKH, Chairman FRANÇOIS REMY, General Manager SPAIN FRANCIS LEPOUTRE, Chairman PATRICK COIGNARD, General Manager ARNAUD MULLIEZ LOUIS MULLIEZ BOARD OF DIRECTORS CHRISTOPHE DUBRULLE CHAIRMAN BENOIST CIROTTEAU SUPERMARKETS BENOIST CIROTTEAU Chairman and General Manager PHILIPPE DELALANDE Finance JÉRÔME GUILLEMARD BANQUE ACCORD JÉRÔME GUILLEMARD Chairman DAMIEN GUERMONPREZ General Manager NICOLAS DREYFUS Finance IMMOCHAN INTERNATIONAL VIANNEY MULLIEZ Chairman ERIC DELEPLANQUE General Manager * Subject to the approval of the supervisory board 32 Auchan 2005 REPORT ON ACTIVITY VIANNEY DUMAS Finance COUNTRY BOARDS FRANCE BENOIST CIROTTEAU, Chairman DENIS SIMON, General Manager SPAIN MIGUEL GANUZA, Chairman OLIVIER TANGUY, General Manager COUNTRY BOARDS FRANCE JEAN-PIERRE VIBOUD, General Manager, Banque Accord SPAIN THIERRY VINUALEZ, General Manager, Accordfin COUNTRY BOARDS FRANCE HERVÉ MOTTE, General Manager, Immochan France SPAIN VALENTIN SERRANO, General Manager, Immochan Spain PORTUGAL FRANCIS LEPOUTRE, Chairman EDUARDO IGREJAS, General Manager HUNGARY JEAN MAILLY, Chairman JEAN-PAUL FILLIAT, General Manager ITALY BENOÎT LHEUREUX, Chairman, Managing Director PATRICK ESPASA, General Manager RUSSIA JEAN MAILLY, Chairman PATRICK LONGUET, General Manager AFRICA CENTRAL AND EASTERN EUROPE POLAND PHILIPPE SAUDO, Chairman FRANÇOIS COLOMBIÉ, General Manager MOROCCO TAJEDDINE GUENNOUNI, Chairman of the Board of Marjane Holding PHILIPPE LE GRIGNOU, General Manager ITALY BENOIST CIROTTEAU, Chairman, BENOÎT LHEUREUX, Managing Director ANTONELLO SINIGAGLIA, General Manager POLAND DENIS SIMON, Chairman YVES LIERLEY, General Manager PORTUGAL DENIS MARDON, General Manager, Crediplus POLAND DENIS VANBESELAERE, General Manager, Accord Finance ITALY BENOÎT LIAGRE, General Manager, Accord Italia HUNGARY BRIGITTE GALLIEZ, General Manager, Accord Magyarorszàg ITALY HANS MAUTNER, Chairman G.C.I.* BENOÎT LHEUREUX, Managing Director, G.C.I.* EDOARDO FAVRO, General Manager G.C.I.* PORTUGAL MARIO COSTA, General Manager, Immochan Portugal RUSSIA PHILIPPE DELALANDE, Chairman ALEC PICAPER, General Manager ASIA MAINLAND CHINA AUCHAN CHRISTIAN CLERC-BATUT, Chairman BRUNO MERCIER, General Manager RT MART PETER HUANG, General Manager CHRISTIAN CLERC-BATUT, Director TAIWAN CHRISTIAN CLERC-BATUT, Chairman KAUFMAN WEI, General Manager MOROCCO NOUREDDINE BENMAKHLOUF, Chairman of the Board of Acima GILBERT INFANTÈS, General Manager RUSSIA JULIEN CAILLEAU, General Manager, BA Finans HUNGARY MICHEL CHAIZE, General Manager, Immochan Hungary POLAND ANDRÉ-PAUL LECLERCQ, General Manager, Immochan Poland * Gallerie Commerciali Italia. 2005 REPORT ON ACTIVITY Auchan 33 - May 2006. Redaction: Communication department - Design and production: Photos: Auchan, P. Gueritot, R. Courtemanche, S. Dhote, G. Piat, C. Waeghemacker. Communication department in charge of sustainable development 92, rue Réaumur – 75002 Paris Tel. : +33 (0) 1 58 65 08 08 – Fax : +33 (0) 1 58 65 08 15 – www.auchan.com
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