Colruyt N : Consolidated annual information on the financial year 2022-23

PRESS RELEASE - 13 June 2023 17h45 CET - Regulated information - Inside information

Consolidated annual information on the financial year 2022/23

Revenue grows 7,7%

Market share increases to 31,0%

Lower operating result and net result

Halle, 13 June 2023

Jef Colruyt hands over day-to-day management to Stefan Goethaert

Colruyt Group informs that Executive Chairman Jef Colruyt will hand over the day-to-day management of the group to Stefan Goethaert as of 1 July 2023. He will become the new CEO of Colruyt Group.

Jef Colruyt remains Chairman of the Board of Directors of Colruyt Group.

Stefan Goethaert joined Colruyt Group in December 2012. After starting out in the logistics chain, he became director of Fine Food in September 2013 to later on, as from the beginning of 2019, also manage the Private Label and Retail Services business. Since April 2022, he has been COO Food Production, Business and Group Services. As a civil engineer, he started his career in the chemicals sector at Prayon where he managed the production sites in Belgium, France and the US, as operations director.

Jef Colruyt:"Stefan brings a solid international management experience, combined with the required leadership skills and a value-driven vision. Having worked in the group for 10 years, he has the necessary competence and a thorough knowledge of the various activities to further shape and realise Colruyt Group's strategy in a retail market that is in full evolution. The daily management and the future of Colruyt Group are in good hands with Stefan and his Management Committee."

Stefan Goethaert:"On behalf of Colruyt Group's management, I would like to thank Jef Colruyt for shaping the group for all these years into what it is today. Under Jef's visionary leadership, Colruyt Group was able to grow into a solid market leader in Belgium with ramifications in several countries, and into a pioneer in sustainable initiatives and technological innovations. Jef is known for his passion for people, value-driven entrepreneurship and sustainability. I and the entire Colruyt Group community are pleased to be able to continue to rely on his extensive knowledge and experience in his role as Chairman of the Board of Directors. Finally, I would like to personally thank Jef Colruyt for the trust placed in me, and I look forward to working together with the Management Committee and with all employees to put our best foot forward to serve our customers every day."

Consolidated annual information on the financial year 2022/23

pag. 1 / 32

https://www.colruytgroup.com/wps/portal/cg/en/home/investors

PRESS RELEASE - 13 June 2023 17h45 CET - Regulated information - Inside information

Headlines financial year 2022/23(1)

The financial year 2022/23 was marked by a challenging macroeconomic context with high inflation, substantial cost increases and a negative business and consumer confidence.

This context translates into a 7,7% increase of the Colruyt Group revenue (7,4% excluding fuels and 6,9% excluding fuels and Newpharma). The revenue increase is mainly driven by inflation, partially offset by lower volumes. The Belgian retail market is characterised by volume declines in food stores and high competitiveness. In this context, Colruyt Lowest Prices continues to consistently implement its lowest price strategy. This implies that Colruyt Group has not been able to fully pass on cost price inflation to the customer, bringing down the gross profit margin.

In addition, today's context causes Colruyt Group's operating expenses to increase markedly. This increase is mainly attributable to rising inflation, with a large impact on energy, transport costs and employee benefit expenses. The latter are heavily impacted by Belgium's automatic wage indexation system. The group succeeded in limiting the increase in operating expenses in part through an increased focus on cost control and (energy) efficiency.

Impairment charges rose by EUR 27 million to EUR 33 million. This is mainly due to the valuation of tangible and intangible fixed assets related to the loss-making operations of Dreamland and Dreambaby.

This results in a decrease of the group's operating profit and net result to, respectively, EUR 279 million (2,6% of revenue) and EUR 201 million (1,9% of revenue) in 2022/23.

In October 2022, Colruyt Group further increased its stake in Newpharma from 61 to 100%. Since then, Newpharma has been fully consolidated (period from October to December 2022). This has contributed to the consolidated revenue. The impact on the operating profit and the net result is limited.

Colruyt Group's investments amounted to EUR 463 million in the financial year 2022/23 (4,3% of revenue) and related mainly to new stores and the modernisation of existing stores, to the expansion of logistics capacity in Belgium and France, to innovation and digital transformation programmes, and to renewable energy and energy efficiency.

The combination of the above elements results in an increase of the net financial debt (excluding IFRS 16) to EUR 691 million compared to 31 March 2022 (EUR 523 million excluding IFRS 16).

CEO Jef Colruyt: "We look back on a challenging financial year that ended in a strong decrease in result. We intensified our efforts and increased our focus on operational cost control and efficiency, as well as cash management. Partly thanks to these efforts, the results declined less than initially feared in the financial year 2022/23. Together with our employees, who give their best day in day out, we as a group purposefully continue to work towards building a healthy, sustainable future. And - thanks to the successful issuance of our green retail bond in February 2023 - we also feel supported in this effort by investors. We maintain a critical mindset and adjust where needed, while always holding firm to our long-term strategy."

1. The headlines have been formulated based on the key figures and thus include DATS 24 NV. For a reconciliation between the key figures and the consolidated income statement (in which DATS 24 NV is presented as a discontinued operation), we refer to the annex 'Reconciliation of key figures and consolidated income statement'.

Consolidated annual information on the financial year 2022/23

pag. 2 / 32

https://www.colruytgroup.com/wps/portal/cg/en/home/investors

PRESS RELEASE - 13 June 2023 17h45 CET - Regulated information - Inside information

I. Financial report

A. Key figures(2)

	1/04/2022	1/04/2021
(in million EUR)	-	-	Variance
	31/03/2023	31/03/2022
Revenue	10.820	10.049	+7,7%
Gross profit	2.931	2.752	+6,5%
% of revenue	27,1%	27,4%
Operating cash flow (EBITDA)	685	741	-7,5%
% of revenue	6,3%	7,4%
Operating profit (EBIT)	279	375	-25,8%
% of revenue	2,6%	3,7%
Profit before tax	270	383	-29,5%
% of revenue	2,5%	3,8%
Profit for the financial year	201	288	-30,4%
% of revenue	1,9%	2,9%
Earnings per share (in EUR)(3)	1,57	2,16	-27,6%

1. The key figures are inclusive of DATS 24 NV. For a reconciliation between the key figures and the consolidated income statement (in which DATS 24 NV is presented as a discontinued operation), we refer to the annex 'Reconciliation of key figures and consolidated income statement'.
2. The weighted average number of outstanding shares equalled 127.967.641 in 2022/23 and 132.677.085 in 2021/22.

Colruyt Group's revenue rose by 7,7% to EUR 10,8 billion in 2022/23. Revenue was positively impacted by the revenue increase from the fuel distribution activities of DATS 24 (excluding petrol, revenue improved by 7,4%), the full consolidation of Roelandt Group and Newpharma and increased food inflation. On the other hand, revenue evolution was negatively affected by the declining volumes.

Colruyt Group's market share in Belgium (Colruyt Lowest Prices, Okay and Spar) rose to 31,0% in the financial year 2022/23 (30,8% in 2021/22). At the start of the financial year 2023/24, the market share maintains its upward trend.

The gross profit margin decreased to 27,1% of revenue. Excluding petrol, the gross margin declined by 40 basis points. The Belgian retail market remains highly competitive. As a retailer and as the market leader, Colruyt Group continues to fulfil its role in society, whereby customers can count on the group to help them stay on top of their household budgets. This implies that Colruyt Group has not been able to fully pass on cost price inflation to the customer.

Net operating expenses climbed from 20,0% to 20,8% of revenue. This significant increase is mainly attributable to rising inflation, with a large impact on energy costs, transport costs and employee benefit expenses. The latter are heavily impacted by the automatic wage indexation system in place in Belgium. In view of the current market conditions, Colruyt Group monitors to a maximum extent cost management and improvements in efficiency. The group succeeded in limiting the increase in operating expenses in part through an increased focus on cost control and (energy) efficiency. In addition, the group maintains its long-term focus and pursues its investments in sustainability and efficiency, digital transformation and innovation, employees and high-qualityhouse-brand products in a targeted manner.

Consolidated annual information on the financial year 2022/23

pag. 3 / 32

https://www.colruytgroup.com/wps/portal/cg/en/home/investors

PRESS RELEASE - 13 June 2023 17h45 CET - Regulated information - Inside information

The operating cash flow (EBITDA) reached 6,3% of revenue (7,4% in 2021/22).

The depreciation, amortisation and impairment charges rose by EUR 41 million. Depreciation and amortisation charges rose by EUR 15 million, mainly as a result of the continuous investments in stores, distribution and production centres and transformation programmes. Impairment charges rose by EUR 27 million to EUR 33 million. This is mainly due to the evaluation of tangible and intangible fixed assets related to the loss-making operations of Dreamland and Dreambaby.

The operating profit (EBIT) totalled EUR 279 million or 2,6% of revenue in 2022/23 (3,7% in 2021/22).

Taking into account an effective tax rate of 25,8%, the profit for the financial year amounted to EUR 201 million (1,9% of revenue), a decrease by 30,4% compared to 2021/22 (EUR 288 million or 2,9% of revenue).

The Board of Directors will propose a gross dividend of EUR 0,80 per share to the General Meeting of Shareholders.

B. Segment information

1. Retail

Revenue from the retail activities grew by 7,2% to EUR 8.750 million. The retail activities accounted for 80,9% of the consolidated revenue in 2022/23.

In a highly competitive market environment, food retail revenue increased by 6,6%. This increase is a result of food inflation and the full consolidation of Roelandt Group in January 2022, partially offset by volume declines in food stores.

As from this financial year, the online revenue of Dreamland and Dreambaby is reported in the non-food retail revenue section, regardless of which store realised the revenue. As a result, the related comparative figures have been reclassified.

Revenue of Colruyt Lowest Prices in Belgium and Luxembourgincreased by 6,9% for the reasons mentioned above. Colruyt Lowest Prices continues to consistently implement its lowest prices strategy and delivers on its commitment to its customers day after day. This implies that Colruyt Group has not been able to fully pass on cost price inflation to the customer.

During the financial year 2022/23, eleven stores were renewed and five new Colruyt stores opened, one of which is located in Luxembourg.

Colruyt Lowest Prices once again won several prizes this year. It was presented with the Best Brands Award 2023 in the Best Retail Food Brand category and ranked first in the GfK summer and winter reports in 2022.

Okay, Bio-Planetand Crureported an aggregate revenue growth of 2,4%. Revenue is impacted by price inflation, which is partly offset by volume declines.

As a neighbourhood discounter, Okay continues to commit to providing a quick, cheap and easy shopping experience. Okay's store network expanded with three stores in the financial year 2022/23, while the renewed store concept was rolled out in several stores. In addition, a second Okay Direct was opened, which targets an audience that wants to shop faster, also outside traditional opening hours and on Sundays.

Okay was voted best store chain in the category Convenience in 2022/23.

Consolidated annual information on the financial year 2022/23

pag. 4 / 32

https://www.colruytgroup.com/wps/portal/cg/en/home/investors

PRESS RELEASE - 13 June 2023 17h45 CET - Regulated information - Inside information

Bio-Planet remains a pioneer in sustainability with a large range of organic, eco-friendly and local products and healthy food. In the past financial year, the energy crisis and inflation caused a contraction of the organic market, resulting in a revenue decrease. During the financial year 2022/23, two new stores featuring a renewed store concept opened their doors, one in St. Denijs- Westrem and one in Tournai.

At the end of September 2022, Cru opened its fourth market on the Eylenbosch site in Dilbeek. A passion for tasty artisan products and customer experience combined with craftsmanship remain at the forefront for the Cru multi-experience markets. In the meantime, they pursue their efforts to improve operational efficiency.

The revenue of Colruyt in France(including the fuel distribution activities of DATS 24 in France) rose by 10,5%. Excluding petrol, the revenue of Colruyt in France increased by 9,3%. The French retail market is also facing high food inflation and volumes that are under pressure. Three new stores opened in France during the financial year 2022/23. Colruyt Prix-Qualité is a clearly laid- out neighbourhood supermarket, where customers can find everything they need for their daily and weekly shop.

Colruyt Group will continue to make targeted investments in its French retail activities by opening new stores, renewing existing stores and doubling the logistics capacity in the years ahead.

Non-foodretail revenue increased by 15,5% compared to last year and comprises the store revenue and online revenue of Dreamland, Dreambaby, Bike Republic, The Fashion Society and Jims. Since October 2022, Newpharma has also been fully consolidated (period from October to December 2022). As from this financial year, the online revenue of Dreamland and Dreambaby is also reported in the non-food retail revenue section, regardless of which store realised the revenue. As a result, the related comparative figures have been reclassified.

Despite their leading market positions, Dreamland and Dreambabyare experiencing decreasing volumes with a substantial negative impact on their profitability. This is the result of the challenging markets in which both non-food activities operate and is strengthened by the current macroeconomic environment. Over the past months, several corrective measures have been taken to allow Dreamland and Dreambaby to consolidate their market position and become profitable in a sustainable way. The online assortment of Dreamland has been reviewed recently, as have the delivery rates for online orders. Colruyt Group believes additional measures are necessary for Dreamland and Dreambaby to progress towards a healthy, sustainable future. In April 2023, the management informed the works council of its intention to restructure Dreamland and Dreambaby (which together form one technical business unit). The execution of this plan would have an impact on the employment whereby the Procedure Renault with regard to collective redundancies would be applied.

In addition, Colruyt Group has reached a principle agreement with ToyChamp whereby ToyChamp would obtain 75% of the shares of Dreamland and thus gain control over Dreamland. Upon completion of the transaction, Dreamland would no longer be fully consolidated in the consolidated figures of Colruyt Group.

The revenue of Bike Republic, The Fashion Society and Jimsgrew strongly in 2022/23 by, respectively, 84,6%, 14,5% and 66,4%.

Bike Republic expanded its store estate with no fewer than six stores and is a leading player in its respective market.

The Fashion Society, the holding that comprises the fashion chains Zeb, PointCarré and The Fashion Store, expanded its store estate with five stores.

Jims has 34 fitness centres (30 in Belgium and four in Luxembourg) and also offers group exercise classes and digital coaching. In the first half of the year, a new Jims fitness opened in Kuurne. In the second half of the year, six Oxygen Fitness gyms were acquired and a new Jims was opened in Kirchberg (Luxembourg).

Consolidated annual information on the financial year 2022/23

pag. 5 / 32

https://www.colruytgroup.com/wps/portal/cg/en/home/investors