Colruyt N : Consolidated information on the first semester of financial year 2020/21

PRESS RELEASE - 15 December 2020 17h45 CET - Regulated information

Consolidated information on the first semester of the financial year 2020/21

Revenue grows 5,7%

Revenue and net result increase partly due to

specific effects

Halle, 15 December 2020

Introduction

Colruyt Group's current year result evolution was impacted by specific effects, which are briefly commented below.

Colruyt Group experienced diverse impacts of the COVID-19health crisis in the first semester of financial year 2020/21. The food stores handled higher volumes and thus fulfilled their essential role in the food chain. The non-food, foodservice and fuel distribution activities recorded revenue declines during the crisis.

At all its sites, the group has taken measures to ensure the continuity of the operations as well as the health and safety of its employees and customers. Colruyt Group also continues to fulfil its role in society, including by donating food and face masks.

All the employees of the group have, each in their own way, made a contribution in these unprecedented times. The Board of Directs wants to thank all employees once again for their exceptional team spirit, solidarity and flexibility.

At the end of May 2020, Colruyt Group transferred certain assets relating to Eoly's renewable wind energy activities into the energy holding Virya Energy. As a result of this transaction, Colruyt Group realised a one-off positive effect of EUR 31 million in financial year 2020/21. This transaction had no material impact on the cash flow statement.

Mid-2020, Colruyt Group acquired 100% of the shares of Joos Hybrid. Joos Hybrid provides companies with hybrid total solutions for document and communication management. In the first semester, Colruyt Group also increased its stake in Fraluc Group from 68% to over 96%. Fraluc Group includes the fashion retail chains ZEB, PointCarré, The Fashion Store and ZEB For Stars. As from August 2020, Joos Hybrid and Fraluc Group are fully consolidated, which has enhanced the revenue growth. The impact on the operating profit and the net result is limited.

Consolidated information on the first semester of the financial year 2020/21

page 1 / 25

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

PRESS RELEASE - 15 December 2020 17h45 CET - Regulated information

I. Consolidated key figures

	1/04/2020	1/04/2019
(in million EUR)	-	-	Variance
	30/09/2020 (1)	30/09/2019
Revenue	4.990	4.722	+5,7%
Gross profit	1.402	1.257	+11,5%
% of revenue	28,1%	26,6%
Operating cash flow (EBITDA)	468	411	+13,8%
% of revenue	9,4%	8,7%
Operating profit (EBIT)	311	265	+17,5%
% of revenue	6,2%	5,6%
Profit before tax	314	268	+17,0%
% of revenue	6,3%	5,7%
Profit for the period	246	194	+26,6%
% of revenue	4,9%	4,1%
Earnings per share (in EUR) (2)	1,81	1,41	+28,5%

1. The half-year results of 2020/21 were impacted by the COVID-19 crisis and by the full consolidation of Fraluc Group and Joos Hybrid (as from 1 August 2020).
2. The weighted average number of outstanding shares equalled 135.632.720 in the first semester of financial year 2020/21 versus 137.765.448 in the first semester of 2019/20.

1. Financial report

A. Consolidated income statement

Colruyt Group's revenue rose by 5,7% to nearly EUR 5 billion in the first semester of 2020/21. The fuel distribution activities of DATS 24 recorded a revenue decrease in 2020/21. Excluding petrol, revenue increased by 9,3%. The revenue growth was impacted by the COVID-19 crisis and by the full consolidation of Fraluc Group and Joos Hybrid.

The market share of Colruyt Group in Belgium (Colruyt Lowest Prices, OKay and Spar) declined to 31,7% in the first semester of 2020/21 (32,5% in the first half of 2019/20). Neighbourhood store concepts in particular experienced faster growth during the COVID-19 period, in part due to their greater number and therefore proximity.

The gross profit margin increased to 28,1% of revenue in 2020/21. Excluding petrol, the gross margin improved by 62 basis points. The margin increase mainly reflects lower promotional pressure at the start of the financial year (ban on promotions and discounts in Belgian supermarkets), miscellaneous product mix effects, operational improvements and the full consolidation of Fraluc Group and Joos Hybrid.

Net operating expenses climbed from 17,9% to 18,7% of revenue. The increase is mainly the result of COVID-19 and the group's ongoing investments in employees, house-brand products, distribution channels and change projects. In 2020/21, the percentage was also impacted by the revenue decrease of the fuel distribution activities and the full consolidation of Fraluc Group and Joos Hybrid.

Consolidated information on the first semester of the financial year 2020/21

page 2 / 25

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

PRESS RELEASE - 15 December 2020 17h45 CET - Regulated information

The COVID-19-related costs essentially cover the various measures that Colruyt Group has taken to ensure the health and safety of its employees and customers, as well as the additional benefits and days of leave that the group has granted to its employees as a token of gratitude for the efforts made. The food stores, logistics and production departments were reinforced with both internal and external employees.

At end-September 2020 Colruyt Group had 30.420 employees (full-time equivalents). The increase by 1.364 full-time equivalents compared to 31 March 2020 is partly due to the acquisition of Fraluc Group and Joos Hybrid.

Following the contribution of Eoly's renewable wind energy activities into the energy holding Virya Energy, a one-off positive effect of EUR 31 million was realised in the first semester of 2020/21.

The operating cash flow (EBITDA) amounted to 9,4% of revenue. Excluding the gain realised on the contribution of Eoly Energy, the EBITDA margin was 8,8% of revenue (8,7% in 2019/20). The gross margin increase was largely offset by higher operating expenses.

The depreciation, amortisation and impairment charges rose by EUR 11 million. The increase is mainly attributable to the full consolidation of Fraluc Group and Joos Hybrid (EUR 4 million) and to the continuous investments in stores, distribution centres and transformation programmes.

The operating profit (EBIT) totalled EUR 311 million in 2020/21 (6,2% of revenue). Excluding the gain realised on the contribution of Eoly Energy, the EBIT margin was 5,6% of revenue (5,6% in 2019/20).

As last year, the share in the result of investments amounted to about EUR 3 million. Virya Energy reported a result increase in the first six months of 2020/21. This increase was offset by lower results at Fraluc Group and Vendis Capital, mainly as a result of COVID-19. As of August 2020, Fraluc Group is fully consolidated and no longer accounted for as a joint venture using the equity method.

The effective tax rate amounted to 21,8% in the first semester. In 2020/21, the tax rate was impacted by the reform of the Belgian corporation tax, the investments in innovation and change projects and the contribution of Eoly Energy.

The profit for the period amounted to EUR 246 million (4,9% of revenue). Excluding the gain realised on the contribution of Eoly Energy, the net result equalled EUR 215 million or 4,3% of revenue (4,1% in 2019/20).

B. Income statement per segment

1. Retail

Revenue from the retail activities grew by 7,9% to EUR 4.187 million. The growth was impacted by the COVID-19 crisis and the full consolidation of Fraluc Group. Excluding Fraluc Group, the retail revenue improved by 7,1% in 2020/21. The retail activities accounted for 83,9% of the consolidated revenue in the first semester.

The COVID-19 health crisis hit Belgium, France and Luxembourg early 2020. This crisis resulted in significant revenue growth for the food stores in the first six months of 2020/21. From 1 April up to and including 10 May 2020, the non-food stores in Belgium were required to close.

Consolidated information on the first semester of the financial year 2020/21

page 3 / 25

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

PRESS RELEASE - 15 December 2020 17h45 CET - Regulated information

Revenue of Colruyt in Belgium and Luxembourg climbed 6,5%. Colruyt Lowest Prices continued to invest in the modernisation of the existing stores and opened two new stores. The COVID-19 crisis resulted in higher sales volumes, both offline and online.

Colruyt Lowest Prices delivers on its brand promise day after day by guaranteeing the lowest price for every product at every moment. Price reductions and promotions offered by competitors are immediately integrated in its sales prices. Colruyt Group conducts more than 100.000 price recordings a day in competitors' stores, in flyers and online.

OKay, Bio-Planetand Cru reported an aggregate revenue growth of 18,4%, essentially as a result of expansion and of volume gains during the COVID-19 crisis.

For more than 20 years, OKay has been the handy neighbourhood supermarket where customers can do their daily shopping quickly, cheaply and easily. During the first semester, three new stores were opened, including two OKay Compact city stores. OKay also continued the roll-out of its renewed OKay store concept in 2020/21.

Bio-Planet remains the group's pioneer in sustainability, organic products and healthy food. Bio-Planet is the only actor in Belgium that sells more than 6.000 organic and eco-friendly products. Bio-Planet wants to make conscious and healthy eating more accessible and continues to focus on local connections.

The Cru multi-experience markets in Overijse, Ghent and Antwerp target people with a passion for authentic, artisan and local products. Customer experience and craftsmanship are at the forefront. In this way, Cru pursued its efforts to drive revenue growth and improve operational efficiency in 2020/21.

Excluding petrol, the revenue of Colruyt in France rose by 7,0%. The revenue increase is mainly attributable to expansion and to organic growth, partly due to COVID-19. At Colruyt Prix-Qualité, customers can find everything they need for their weekly shop, with the ease of choice of a clearly laid out neighbourhood supermarket.

Colruyt Group will therefore continue to invest in its French retail activities: to enable further growth, the logistical capacity will be doubled in the years ahead. In 2021, a new distribution centre will be brought into operation near Nancy.

The fuel distribution activities of DATS 24 in France recorded a revenue decrease during the COVID-19 crisis. Petrol included, revenue declined by 0,8% in the first semester.

The non-foodretail revenue grew by 21,8% in the first semester of 2020/21.

The combined store revenue of Dreamland, Dreambaby and Fiets! declined by 3,7%, primarily as a result of the enforced non-food store closures from 1 April up to and including 10 May 2020. The non-food stores reopened their doors on 11 May, in compliance with the coronavirus requirements. The online revenue, which is included in the store format where the goods are collected, experienced strong revenue growth in 2020/21.

Colruyt Group increased its stake in Fraluc Group to 96,1%. As a result, Fraluc Group, the holding that includes the fashion retail chains ZEB, PointCarré, The Fashion Store and ZEB For Stars, is fully consolidated as of August 2020. The multi-brand chain comprises 114 stores in Belgium and one in France. The four store concepts are complementary, cover a large proportion of the fashion market and are aimed at wide target groups.

Colruyt Group continues to invest in and innovate its online store concepts and digital applications. Online sales of both food and non-food increased substantially in the first half of 2020/21, partly due to COVID-19.

Consolidated information on the first semester of the financial year 2020/21

page 4 / 25

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