Colruyt : Statement of the Chairman at the General Meeting of Shareholders of Etn. Fr. Colruyt NV

PRESS RELEASE - Halle (Belgium) - 30 September 2020 - Regulated information - Insider information

Statement of the Chairman at the General Meeting of Shareholders

of Etn. Fr. Colruyt NV of 30 September 2020

Dear shareholders,

We have had an extraordinary financial year, featuring some notable achievements and innovations. Once again, we gave our best as a group, especially in the final weeks of the financial year, when COVID-19 changed everything.

In the challenging financial year 2019/20, we saw our group revenue increase to more than EUR 9,5 billion. The revenue growth was impacted by COVID-19, the difference in reporting period for the French companies and the integration of Fiets!. On a comparable basis, revenue growth amounted to 1,7% including petrol and to 1,4% excluding petrol.

Our retail formats in Belgium, France and Luxembourg managed to increase their combined customer base and revenue, in part as a result of the opening of 19 new stores and the renovation of some 20 stores. In Belgium, Colruyt Lowest Prices, OKay and Spar achieved a market share of 32,1%.

Our gross profit margin improved to 26,8% of group revenue. The Belgian retail market was marked by a challenging macroeconomic environment, fierce competition and fluctuating promotional pressure.

On a comparable basis, our operating expenses rose from 18,1% to 18,6% of revenue. This increase is the result of our ongoing investments in employees, distribution channels and change projects. In response to COVID-19, we made additional investments in the health and safety of our customers and employees and granted additional benefits to our employees.

The operating profit (EBIT) totalled EUR 511 million or 5,3% of revenue. The comparable EBIT margin amounted to 5,3% of revenue (5,3% in 2018/19).

We ended the financial year with a net profit of EUR 431 million. The result increase is mainly attributable to one-off effects. Excluding one-off effects, the comparable net profit amounted to EUR 380 million or 4,0% of revenue, as in 2018/19.

The net earnings per share amounted to EUR 3,14. We have proposed a gross dividend of EUR 1,35 per share to the General Meeting of Shareholders.

Retail accounted for 82,4% of our group revenue this year. Retail revenue grew by 1,5% to nearly EUR 7,9 billion. The comparable revenue growth amounted to 1,4%.

The COVID-19 crisis had diverse effects. Our food stores reported strong revenue growth, particularly in the month of March. Our non-food stores on the other hand closed as of 18 March and only reopened after the closing of the financial year, in May 2020. A large number of non-food staff and employees of the central services were willing to help out in our food stores as well as in our logistics and production departments.

In the financial year 2019/20 we continued our investments in the expansion and renovation of our stores. On 31 March 2020 we had 601 own stores in Belgium, France and Luxembourg, together representing a store surface of 743.000 square metres. As of financial year 2019/20 our store network also includes the specialist cycle shops of Fiets!.

The share of online revenue in the group revenue continued to expand thanks to our ongoing e-commerce investments and growing customer confidence. Our online revenue is primarily generated by Collect&Go, that has been the market leader in the Belgian online food market

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PRESS RELEASE - Halle (Belgium) - 30 September 2020 - Regulated information - Insider information

for 20 years. The shopping service already comprises over 290 collection points in Belgium, France and Luxembourg. To support further growth, Collect&Go will open a new e-commerce distribution centre in 2021.

The wholesale and foodservice activities together accounted for 10,1% of our group revenue. This segment's revenue grew by 1,1% to EUR 963 million. The growth was impacted by COVID-19 and the difference in reporting period for the French companies. The comparable revenue growth amounted to 1,7%.

Finally, the other activities accounted for 7,5% of our group revenue. The 3,0% revenue growth to EUR 721 million was mainly driven by the DATS 24 filling stations in Belgium. Excluding the effect of the volume declines during the COVID-19 lockdown, revenue improved by 5,3%. DATS 24 promotes greener mobility and continues to invest in alternative fuels such as natural gas (CNG), electricity and hydrogen.

In total we invested EUR 410 million over the last financial year in various areas including the construction and renovation of stores, new production facilities for Colruyt Group Fine Food, the sustainable refurbishment of distribution centres and offices and future-oriented transformation programmes.

We also continued our investments in e-commerce and the digital transition, to futureproof our retail activities. Collect&Go tested home delivery extensively and all Colruyt stores received smart electronic price labels. Customers were introduced to automatic product recognition at the till. And personal smartphones now make it easier for Colruyt store employees in their work, as well as in their contact with one another and with the customers.

To enable us to become self-reliant in our energy needs, Eoly continues to invest in sustainable energy projects, such as solar energy and cogeneration. At the end of 2019, we and our family majority shareholder Korys founded the new energy holding Virya Energy. For reasons of economies of scale and better knowledge sharing, we contributed Eoly's wind energy activities and our stake in Parkwind in this new holding. And via the new North Sea Wind cooperative we enable many citizens to participate in offshore green energy.

Sustainability remains the common thread running through everything we do, and we're very proud of that. As last year, we integrated our sustainability reporting in the annual report. The reporting is divided into 12 programmes, each with higher aims and many achievements.

In January 2020, we became the first Belgian retailer to stop offering plastic bags for fruit and vegetables. As hoped, customers are now well used to our reusable versions, of which we have given out more than 15 million for free. We are assigning more and more house brand products a Nutri-Score, to make it easier for consumers to compare products. And we are currently reviewing how we can calculate the environmental footprint of products in more detail and share this information with the consumer. As far as agriculture is concerned, we remain committed to Belgian connections, craftsmanship and more transparent supply chains, both in our classic role as a retailer and in direct partnership with producers. Innovation is never far away either: the first plants from our innovative vertical farm went on sale at Bio-Planet: basil with a tiny ecological footprint.

I hereby also call on our politicians to put sustainability at the heart of the policy and to start from a solid long-term vision that benefits the generations to come. For investing in ambitious climate objectives is a moral duty and can contribute considerably to the economic recovery.

I also want to urge the policy-makers to work on improving government efficiency, with administrative simplification as a basic pillar.

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PRESS RELEASE - Halle (Belgium) - 30 September 2020 - Regulated information - Insider information

Also, focus efforts on modernising work organisation and a shift of the tax system. Only then will we be able to continue creating maximum Belgian added value in a rapidly changing international economy.

Finally, I want to underline the need to make real choices and be transparent about them. In this way, we as a society will be better prepared for the challenges ahead.

In financial year 2020/21, Colruyt Group is experiencing diverse impacts as a result of the COVID-19 health crisis. The group has implemented measures at all its sites to protect the health and safety of all those present and to ensure the continuity of the operations. These measures are being monitored regularly and adjusted as needed based on the latest information available. Costs related to the measures introduced will be reflected in the income statement of the financial year 2020/21. The non-food stores of the group reopened on 11 May 2020.

Given the uncertainty caused by the COVID-19 health crisis, Colruyt Group is unable to make any statements regarding expected macroeconomic, competitive or other trends. The group will continue to closely monitor relevant trends in market conditions and in customer behaviour and will decide on an appropriate response where needed.

Colruyt Group expects the consolidated net result of the financial year 2020/21 to at least match last year's net result (EUR 380 million excluding one-off effects). The group points out that the uncertainty caused by the COVID-19 health crisis may impact the 2020/21 result outlook.

This outlook excludes the one-off gain (estimated at EUR 30 million) that Colruyt Group expects from the contribution of Eoly's renewable wind energy activities into the energy holding Virya Energy.

Colruyt Group expects the recent transactions (increase of the stake in Fraluc Group and acquisition of Joos Hybrid) and the discontinuation of non-food sales through the Collishop website to have no material impact on the net result of financial year 2020/21.

Colruyt Group will maintain its long-term focus and continue to consistently implement its long-term strategy. Colruyt Group will pursue its investments in employees, efficiency, innovation, sustainability and change projects, while maintaining its focus on cost control.

Colruyt Lowest Prices will continue to consistently implement its lowest prices strategy and guarantees its customers the lowest price for each article at each moment.

In recent months, COVID-19 posed major challenges not only for our stores, but also for our production and distribution centres and central services. I am particularly proud that we have managed to continue to fulfil our social role. We secured the food supply, safely, for customers and employees. In addition, we launched many extra initiatives for sectors such as the healthcare sector.

All of this was only possible thanks to exceptional team spirit, solidarity and flexibility. Never before have I seen the word 'together' from our mission statement put into practice more effectively. The only suitable response to this is a sincere Thank You. For the dedication of every employee, the patience and trust of customers, the efforts of partners. What will always stay with me is how much courage and strength the group has shown in its optimism. This experience strengthens my confidence for the coming financial year. Whatever the 'new normal' may be.

Jef Colruyt

Chairman of the Board of Directors

Colruyt Group

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PRESS RELEASE - Halle (Belgium) - 30 September 2020 - Regulated information - Insider information

About Colruyt Group

Colruyt Group operates in the food and non-food distribution sector in Belgium, France and Luxembourg with approximately 600 own stores and 580 affiliated stores. In Belgium, this includes Colruyt, OKay, Bio-Planet, Cru, Dreamland, Dreambaby, Fiets! and the affiliated stores Spar and Spar Compact. In France, in addition to Colruyt stores, there are also affiliated Coccinelle, Coccimarket and Panier Sympa stores. The group is also actively involved in the foodservice business (supply of food products to hospitals, company canteens and catering businesses) in Belgium via Solucious. The other activities comprise the sale of fuel in Belgium (DATS 24), printing and document management solutions (Symeta) and the production of green energy (Eoly). The group employs over 30.000 employees and recorded a EUR 9,5 billion revenue in 2019/20. Colruyt is listed on Euronext Brussels (COLR) under ISIN code BE0974256852.

Risks relating to forecasts

Statements by Colruyt Group included in this press release, along with references to this press release in other written or verbal statements of the group which refer to future expectations with regard to activities, events and strategic developments of Colruyt Group, are predictions and as such contain risks and uncertainties. The information communicated relates to information available at the present time, which can differ from the final results. Factors that can generate a variation between expectation and reality are: changes in the micro- or macroeconomic context, changing market situations, changing competitive climate, unfavourable decisions with regard to the building and/or extension of new or existing stores, procurement problems with suppliers, as well as all other factors that can impact the group's result. Colruyt Group does not make any commitments with respect to future reporting that might have an influence on the group's result or which could bring about a deviation from the forecasts included in this press release or in other group communication, whether written or oral.

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