annual report 2017 - amazon web...
TRANSCRIPT
Annual Report 2017The Greenery B.V.
Investing in a sustainable future
2 2017 Annual Report of The Greenery B.V.4 Footer
About this report This Annual Report presents the financial
results of and most important developments at
The Greenery B.V. in the year 2017.
The 2017 financial statements were signed
on 5 April 2018 by the Supervisory Board and
submitted for adoption to the General Meeting
of Shareholders of The Greenery B.V. on 10
April.
The consolidated financial statements have
been prepared in accordance with Dutch GAAP
and with Part 9, Book 2 of the Dutch Civil Code,
insofar as applicable.
This version is a translation of the original
Annual Report 2017, which is written in Dutch.
In the event of any discrepancies between the
two language versions, the Dutch text shall
prevail.
The annual report of The Greenery B.V. is also
available on the company's website: www.
thegreenery.com.
Concepts used in this annual report include the
following:
• The Greenery (the 'operating company')
• The Greenery as a whole, including all its
operating companies (‘The Greenery B.V.’,
'The Greenery Group', the ‘company’, the
‘enterprise’)
• The General Management of the company
('General Management')
• The Supervisory Board of the company
('Supervisory Board')
• Coöperatie Coforta U.A. (the ‘Cooperative’)
• The Management Board of Coöperatie
Coforta U.A. (the ‘Management Board’)
AT A GLANCE 4
Key statistics in 2017 4
Key figures 5
Highlights 2017 7
Foreword 9
REPORT OF THE MANAGEMENT BOARD 11
About The Greenery 12
Company profile 12
The context in which we operate 17
Strategy and value creation 20
Management Report 25
Progress on strategy and objectives in 2017 25
Business unit results 27
Corporate Social Responsibility (CSR) 31
Our employees 40
Financial performance 43
Outlook for 2018 47
Risk management 49
Responsibility statement 56
GOVERNANCE 57
Corporate governance 58
Report of the Supervisory Board 61
Composition of governing bodies 64
The Greenery B.V. General Management 65
The Greenery B.V. Supervisory Board 66
2017 FINANCIAL STATEMENTS 70
Contents
32017 Annual Report of The Greenery B.V.
Key statistics in 2017
50 Footer
45.3%Share of trade clients in revenue
47.2%Share of retail clients in revenue
419members
265products
EUR 1,003million net revenue
Export to
53 countries
Growers participating in GRASP:
100%Suppliers with IDH (Sustainable
Trade Initiative) certification:
70%
approx.1,000domestic and international fruit
& vegetable suppliers
12.5million net profit
39% increase compared to 2016
New strategy for 2017-2022
'Growing Together'
1,062employees (FTEs at year-end)
Sustainable chain optimisation
due to development and
integration of DCs, SAP and more
home-based transhipment
41% of growers hold the PlanetProof
certificate
4 2017 Annual Report of The Greenery B.V.
Key figures
in millions of euros, unless indicated otherwise
Total Continuing operations
2017 2016 2017 2016
Net revenue 1,003.2 1,024.9 1,002.6 1,006.9Fruit & Vegetable Trade 927.9 950.3 927.9 932.3
Logistical Services 70.5 69.8 70.5 69.8
Exploitation & Development 4.8 4.8 4.2 4.8
Gross contribution1 151.9 153.0 149.6 150.1
Personnel expenses - fixed 67.6 68.2 66.8 66.6
Personnel expenses - variable 27.4 25.3 27.4 25.1
Other operating expenses 40.2 41.5 38.4 39.0
EBITDA 16.7 18.0 17.0 19.4
Amortisation and depreciation 15.6 14.1 15.2 14.1
Impairments (0.3) 1.3 (0.3) 0.4
Operating profit 1.4 2.6 2.1 4.9
Interest income and expenses (3.9) (4.0)
Tax on result 3.7 (0.6)
Share of result of participating interest 11.3 11.0
Net result 12.5 9.0
Cash flowsCash flow from operating activities 10.0 8.1
Cash flow from investing activities 0.2 (8.9)
Cash flow from financing activities (7.3) 3.8
Equity and financingBalance sheet total 300.5 326.9
Invested capital2 193.9 201.3
Return on average invested capital 1.6% 1.6%
Interest-bearing loans (including members' loans) 68.9 79.9
Members' loans 52.5 56.2
Liabilities 194.3 231.9
Solvency (equity in % liabilities) 54.7% 41.0%
Capital baseShareholders' equity 106.2 95.1
Product funds 5.2 5.5
Provision for deferred tax liabilities 17.8 15.9
Mandatory members' loans (long term) 36.9 39.8
Pension provision (RJ271)3 8.4 8.7
Total capital base 174.5 165.0
Capital base as a percentage of total assets 58.1% 50.5%
Number of employeesFull-time equivalents as at 31 December 1,062 1,113 1,002 981
1 Net revenue minus cost of sales and subcontracted work
2 Fixed asserts and working capital
3 The (provisional) commitment to pension providers is included in the capital base. 52017 Annual Report of The Greenery B.V.
6 7Footer Footer
Highlights 2017
Launch of VersChat 31 August
Introduction of meal boxes at Jumbo6 November
The Greenery launches
operations in online retail
21 September
IntroduIntroduction of four-compartment tray for blueberries at
PLUS RetailDecember
Installation of 4,600 solar panels at the Barendrecht RD1 September
Introduction of the Fruit& Vegetables machine
20 October
Launch of GreenChain2 October
Sustainability
Cooperation
Sustainability
Sustainability
Innovation
Sustainability
Cooperation
Innovation
Innovation
Innovation
Innovation
Innovation
Cooperation
Cooperation
Cooperation
Sustainability
Cooperation
Innovation
Quality
Cooperation
Cooperation
BeeDeals consumer campaign
May
Asparagus promotion on Radio53813 April
Introduction of resealable top-seal packaging for soft fruit 6 February
Promotional campaign for greenhouse
vegetables at EDEKA8 May - 4 June
Sponsoring of King's Day breakfast27 April
Presentation of first PlanetProof certificate to grower Van Luijk28 March
Introduction of Verse Oogst fresh produce packs at PLUS Retail
26 June
Over 100,000 consumers gain inspiration during the Share
A Perfect Day event 30 June - 1 July
Opening of distribution centre for soft fruit in Breda1 April
Greenco wins Tomato Inspiration Award 10 February
Introduction of the Arabella super-
tasty strawberry6 June50th membership
anniversary of Ary van der Waal
30 March
Participation in the Rotterdam Marathon
9 April
The Greenery receives PlanetProof certificate1 June
6 2017 Annual Report of The Greenery B.V.
6 7Footer Footer
Highlights 2017
Launch of VersChat 31 August
Introduction of meal boxes at Jumbo6 November
The Greenery launches
operations in online retail
21 September
IntroduIntroduction of four-compartment tray for blueberries at
PLUS RetailDecember
Installation of 4,600 solar panels at the Barendrecht RD1 September
Introduction of the Fruit& Vegetables machine
20 October
Launch of GreenChain2 October
Sustainability
Cooperation
Sustainability
Sustainability
Innovation
Sustainability
Cooperation
Innovation
Innovation
Innovation
Innovation
Innovation
Cooperation
Cooperation
Cooperation
Sustainability
Cooperation
Innovation
Quality
Cooperation
Cooperation
BeeDeals consumer campaign
May
Asparagus promotion on Radio53813 April
Introduction of resealable top-seal packaging for soft fruit 6 February
Promotional campaign for greenhouse
vegetables at EDEKA8 May - 4 June
Sponsoring of King's Day breakfast27 April
Presentation of first PlanetProof certificate to grower Van Luijk28 March
Introduction of Verse Oogst fresh produce packs at PLUS Retail
26 June
Over 100,000 consumers gain inspiration during the Share
A Perfect Day event 30 June - 1 July
Opening of distribution centre for soft fruit in Breda1 April
Greenco wins Tomato Inspiration Award 10 February
Introduction of the Arabella super-
tasty strawberry6 June50th membership
anniversary of Ary van der Waal
30 March
Participation in the Rotterdam Marathon
9 April
The Greenery receives PlanetProof certificate1 June
72017 Annual Report of The Greenery B.V.
8 2017 Annual Report of The Greenery B.V.
Steven Martina, CEO of The Greenery and Gerard Pronk, chair of Coöperatie Coforta
ForewordBUILDING A SUSTAINABLE FUTURE
2017 saw The Greenery take steps towards a more
sustainable future in various arenas. The associated
costs precede the benefits. Once the groundwork is in
order, the newly formulated strategy for 2017-2022
can be rolled out successfully.
The Greenery aims to remain relevant moving forward.
This is possible by continuing to focus on our clients
and building a dynamic organisation on a stable
foundation, ensuring that tasty fruit and vegetables
remain accessible and affordable. In the process, the
Greenery contributes to a healthier society through
sustainable and safe growing methods, product
innovations, technological developments and
collaboration with supply chain partners.
A focus on the customer
The Greenery aims to grow by intensifying its focus on
clients by offering the right product/market
combinations at the right place and at the right time.
The ability to align our operations with demand more
efficiently, ensure the reliability of deliveries and
produce in a transparent and efficient manner
represents a licence to operate. Our new strategy -
focused on cooperation, quality, sustainability and
innovation - will offer the Greenery more capacity and
opportunities to develop in this direction, ensuring
that our fruit and vegetables become even more
accessible to consumers.
Retailers seek to offer distinctive ranges of fresh
produce. New concepts, products and applications
play a major role in this regard. Market research and
big data allow for better decision-making in The
Greenery's interactions with clients, and a more rapid
response to the latest trends and developments. Our
clients are also interested in building long-lasting
relationships. This benefits both parties - investments
tend to yield better results in the long term - and is
crucial to the growth of a volume business such as The
Greenery.
Collaboration with growers
In addition to increasing revenues and volumes, a
healthy profit margin is also important. This applies to
The Greenery as well as the growers who are members
of our shareholder, Coöperatie Coforta. The sector is
seeing a continuing trend towards the further
expansion of scale. Many growers face a choice
between investment or selling their activities and
discontinuing their business. We must remain
appealing in all areas, ensuring that growers want to
start working with us or maintain their existing
relationships with The Greenery. We are working hard
to ensure that this is the case. The emphasis is on
retaining existing growers and attracting new ones.
We must ensure they are motivated to work with The
Greenery and help us respond to new trends and
developments. Our joint efforts to expand volumes will
strengthen the basis of our operations.
Developments in the sector also necessitate further
adjustment and modernisation of the Cooperative. To
this end, Coöperatie Coforta underwent a major
change in 2017, abolishing its Members' Council and
establishing a General Meeting of Members. All
Coforta members have a voice in this meeting,
ensuring closer ties with and greater involvement of
our members. The following objectives are relevant in
this regard: encouraging entrepreneurship, delivering
more tailored solutions, market-oriented production
and the promotion of ownership. Efforts to make
membership more appealing and remove impediments
will also contribute to The Greenery's longer term
objectives. With this in mind, proposals are currently
being developed, and will be discussed with members
in 2018.
Financial
The reporting year 2017 got off to a difficult start, with
vegetables from Southern Europe in short supply due
to weather conditions. Although The Greenery
managed to keep servicing its clients successfully, this
did put pressure on profit margins. We invested heavily
in new (online) clients and programmes, but also in the
construction of new distribution centres, IT
infrastructures and digitisation. All these efforts will
guarantee that working with The Greenery becomes
more appealing to our growers and to our own
employees. The Greenery is focused on the sustainable
development of the organisation. Despite higher costs
92017 Annual Report of The Greenery B.V.
and the aforementioned investments, the year under
review saw positive financial results.
2018 and onwards
The past year saw numerous positive developments at
The Greenery. However, there is still much work to be
done. Our new strategy centres on the major
challenges and trends we must anticipate together.
The implementation of this strategy will be crucial,
requiring a different type of leadership and a flexible,
versatile and continually evolving organisation. The
shift from a supply-driven organisation to one capable
of rapidly responding to new opportunities will
necessitate different staff competences and skills,
which The Greenery is currently working to develop. As
of now, willingness to keep learning and remain open
to change will be the new constant. The Greenery
applies a customer-oriented approach in striving to
achieve its mission: adding value to fruit and
vegetables in collaboration with our growers, as we
remain focused on and show respect for the world
around us.
Steven Martina, CEO of The Greenery B.V.
Gerard Pronk, chair, Coöperatie Coforta U.A.
Barendrecht, 5 April 2018
10 2017 Annual Report of The Greenery B.V.
112017 Annual Report of The Greenery B.V.
The Greenery's Management Board hereby presents its
report for the financial year ending on 31 December 2017.
REPORT OF THEMANAGEMENT BOARD
About The Greenery
Deijkers - Bolijn partnership, pepper growers in Oud Gastel
The Greenery is an international fruit and vegetables company. Every day,The Greenery works with its growers, employees, clients and suppliers toallow consumers to enjoy natural, healthy and ultra-fresh fruit andvegetables.
COMPANY PROFILE
The Greenery is the international marketing & sales
organisation for fresh fruit and vegetables from the
Coforta growers' cooperative. Originally a Dutch
cooperative, Coöperatie Coforta's membership is also
open to a select group of international growers that
enable us to meet international clients' demand for
local produce and improve our cooperation with
international suppliers.
The Greenery acts as director of the chain, and focuses
on the interests of our clients. In this capacity, we
connect the supply and demand side, adding value to
each link of the chain. This involves a focus on
collaborations. The Greenery makes all the difference
for its clients, applying sustainable growing methods,
big data, continuous innovation and optimising the
quality of both products and services.
Through The Greenery, the members of Coforta supply
a complete and ultra-fresh assortment of fruit and
vegetables to supermarkets, wholesalers, caterers and
the processing industry. We also cooperate intensively
with our growers and partners from the Netherlands
and abroad in order to supply our products to clients
all year round. Our job is to ensure the efficient
management of our extensive product range, in terms
of both quality and quantity - and therein lies our
12 2017 Annual Report of The Greenery B.V.
expertise, both anticipating and responding to
society's needs.
Through long-term collaborations with our clients,
The Greenery is able to offer its growers prices in line
with the market as well as continuity of sales. We are
continuously on the look-out for innovative products
and packaging and shelf concepts on behalf of our
clients, using both our expertise and market research
in this effort. In addition, we maintain contacts with
end users through consumer panels, we translate
consumers' wishes into projects for seed companies
and we are represented in trade and sector
organisations. Intensive collaboration enables us to
connect all the links in our chain.
ORGANISATIONAL STRUCTURE
The Greenery Group has several business units,
subsidiaries and participating interests which
collectively contribute to the successful marketing of
fruit and vegetables. The interplay of the various
business units owes its strength to the fact that The
Greenery is represented, and makes a real difference,
in all links of the chain. The Greenery's existing
activities can be classified within three pillars: Fruit &
Vegetable Trade, Logistical Services and Exploitation &
Development.
FRUIT & VEGETABLE TRADE
Fruit & Vegetable Trade covers all business units and
subsidiaries whose primary activity is the sale of fruit
and vegetables.
The Greenery
In addition to its 419 members, The Greenery works
with approximately 50 other Dutch and 500
international growers to be able to provide a complete
range all year round, supplementing the Dutch
assortment with imported products. This focus on
continuity in every collaboration enables The Greenery
to supply more than 265 different products that meet
our clients' requirements and specifications every day.
This allows us to deliver and distribute a complete and
ultra-fresh assortment of fruit and vegetables all year
round to national and international supermarket
chains, wholesalers, caterers and the processing
industry. The Greenery offers its clients good quality
products at attractive prices, distinguishing itself in
the market through its wide variety of products and
services, close relationships with growers, knowledge
of the fresh produce market and focus on innovation
and food safety. For example, we help our clients to
optimise their fruit and vegetables shelf presentation.
Due to its excellent supply chain management, The
Organisational structure
53Footer
The Greenery Groep
Shared services
Supply ChainSourcing & Trade
Top fruit
Soft fruit
Greenhouse
vegetables
Rich soil produce
Mushrooms
Import (Hagé,
Dalice, España)
Supply Chain
Management
Retail Subsidiaries
Hollander
Barendrecht
Hoogsteder
Group
Wagenaar
Naturelle
(organic)
Marketing/
E-commerce
Dijco
Distribution
centres
Account
management
Organisatiestructuur
132017 Annual Report of The Greenery B.V.
Greenery can manage all flows of goods effectively
and make sure the right products are linked directly to
the right clients.
The Fruit & Vegetable Trade pillar includes activities by
the following companies and labels, in addition to The
Greenery itself:
Hagé International
Hagé International (Hagé) imports products from
abroad to supplement Dutch seasonal produce on
behalf of The Greenery Group. Hagé also imports fruit
and vegetables that cannot be produced in the
Netherlands. This involves cooperation with growers
from over 50 countries. Hagé International also
includes The Greenery España S.A., which focuses on
the trade of Spanish products, particularly citrus, soft
fruit and stone fruit.
Naturelle
Naturelle specialises in the purchase and sale of
organic fruit and vegetables, and obtains its products
from both Coforta growers and external suppliers.
Naturelle supplies an organic range to the retail
segment all year round. Besides supplying
supermarkets, Naturelle serves organic food shops and
food service wholesalers in the Netherlands and
elsewhere.
Dalice
Dalice Qingdao Trading Company ltd. Dalice is a
trading company established in Qingdao (China) which
mainly focuses on sourcing garlic and ginger for Hagé.
Dalice also offers strategic value in terms of selling
Dutch products on the Chinese market.
Supply Chain Management & Logistics
The Greenery has an automated logistics
infrastructure, combined with expanding
transhipment options. As a result of home-based
transhipment from the growers, our products can
reach the shelf right from the field or greenhouse
within a single day.
The Greenery's logistics companies and chain partners
serve all clients promptly and efficiently, both by truck
and worldwide by air. There is also the possibility to
combine third-party transport flows and those of The
Greenery to reduce the number of client deliveries,
reduce costs and lessen the environmental impact.
Hoogsteder Group
Hoogsteder Groenten en Fruit B.V. and its sister
companies (Hoogsteder Group) specialise in the sale of
fruit and vegetables in Southern Europe, the Middle
East, the USA and Japan. The group supplies almost all
retail chains in France and Italy, while in Spain the
focus has traditionally been on wholesale. In France,
Hoogsteder has the highest sales from the
Netherlands of all Dutch exporters. E.J. van den Berg &
Zonen B.V. (van den Berg) is a specialist company
focused on Switzerland and Austria. Greenery Produce
is focused on the Middle East, the USA and Japan. All
parts of Hoogsteder Group are specialists in their
respective fields and hold a significant market
position. Hoogsteder has its own logistics centre in
Bleiswijk.
Core values
Our employees are motivated by a set of shared basic values. Alongside our agreements with clients,
growers and other stakeholders, our core values help to make us the most trusted supplier of fruit and
vegetables. Our core values are:
ReliabilityWe do what we promise and we deliver high-quality and safe products in a reliable way.
ClarityWe make clear agreements and always operate within the law and our own standards and values.
DrivenWe are always committed to serving our growers and clients.
14 2017 Annual Report of The Greenery B.V.
JH Wagenaar
JH Wagenaar, a Dutch wholesaler in fresh produce,
occupies a prominent position in the market for fresh
staple products and rich soil products. In addition, the
company supplies products for industrial enterprises.
LOGISTICAL SERVICES
Logistical Services is the pillar for business units and
subsidiaries where commercial services qualify as the
primary activity. This pillar includes the following
companies:
Hollander Barendrecht
As a supply chain partner, Hollander is responsible for
all logistics associated with the entire refrigerated and
fresh assortment for PLUS Retail. Hollander also offers
PLUS and other clients added value through a variety
of improvement programmes, chain projects and
supply chain activities. From the state-of-the-art
distribution centre for fresh produce in Barendrecht
and with a fleet of 110 trucks, Hollander supplies
3,000 different products to 262 PLUS supermarkets
every day.
Dijco
Internationaal Transportbedrijf Dijco B.V. (Dijco)
arranges all inbound and outbound transport activities
on behalf of The Greenery. With its modern fleet of 50
Dijco trucks and around 100 chartered vehicles, the
company transports fresh produce from growers
directly to clients and to distribution centres (DCs) and
from DCs to clients in the Netherlands, Germany, the
United Kingdom, France and other EU Member States.
Dijco also transports packaging materials to growers
and has, for several decades, arranged the transport of
other consumer products and food labels as return
freight for a number of leading international
businesses.
Blue Sky Cargo
Trading under the name Blue Sky Cargo, Disselkoen
Airfreight B.V. is part of Hoogsteder Group. An
independent air-freight carrier, Blue Sky Cargo
specialises in the transportation of perishable goods
such as fruit, vegetables, flowers and plants. It
purchases air-freight space on a daily basis to
transport all shipments sold by Greenery Produce and
other units to overseas areas.
EXPLOITATION & DEVELOPMENT
Exploitation & Development covers all activities that
support the Greenery Group.
Greenery Vastgoed
Greenery Vastgoed operates the real estate owned by
The Greenery. As such, this unit is responsible for
internal leases of real estate and leases to third
parties. Greenery Vastgoed also facilitates all other
real estate activities on behalf of The Greenery. The
Greenery leases the following locations: the Retail DC,
packaging warehouse and head office in Barendrecht,
the Soft Fruit DC and packaging warehouse in Breda,
and the packaging warehouse and Tolpoort Office in
Logistics solutions
Growers Logistics
Import Logistics
Third parties Logistics
Logistics Packaging Retail
Logistics E-commerce
Distribution centre Distribution centre Consumer
152017 Annual Report of The Greenery B.V.
Wervershoof. The premises on most of the Klappolder
in Bleiswijk (including the DC, packaging warehouse,
Hoogsteder and Dijco) and the premises of Hollander
and Naturelle in Barendrecht are currently owned by
The Greenery.
Sweet Sensation
Via three companies - Goeie Peer, Licenced Varieties
Editors BV (LVE) and New Sensations BV - The Greenery
holds the licence for growing and marketing a unique
pear variety called ‘Rode Doyenne van Doorn’ (RDvD),
which is sold under the brand name Sweet Sensation.
Goeie Peer BV controls and operates the intellectual
property associated with the licence for the RDvD pear,
which is comprised of the management of its
cultivation worldwide and the issuance of sub-licences
for the associated brand names Sweet Sensation®
(retail) and Sweet Dored® (trade). LVE is responsible
for management and operational affairs. The RDvD
pear has licensees in ten countries, including the
Netherlands, Argentina and Chile.
PTLA (held for sale)
The Greenery is the owner of PTLA Holding
Participacões LTDA (PTLA), a mango production and
packaging company in Brazil. As mango production
does not qualify as a core activity, The Greenery is
34 Footer
Programme management Coordinator
Heleen van Delft
'A passion for the business is key. As far as I'm
concerned, it's all about quality. I have a real
interest in technology and supply chain
management and its human aspects. We also
devote a lot of attention to my own personal
development. My role here offers a great
opportunity to realise both my own personal
ambitions and those of The Greenery.'
looking for a buyer to take over this part of its
portfolio.
Euro Pool System (EPS)
The Greenery has an indirect interest (26%) in Euro
Pool System (EPS) through its holding company
Verpakkingsbedrijven B.V. EPS is the market leader in
reusable packaging in the European fresh fruit and
vegetables chain. The reusable crates have become
the standard in the chain for fresh and packaged
foodstuffs. In addition to being a shareholder, The
Greenery is also a buyer and supplies staff for
packaging material cleaning facilities in the
Netherlands. This ensures the availability of packaging
at all times, underlining The Greenery's role as director
of the chain.
16 2017 Annual Report of The Greenery B.V.
THE CONTEXT IN WHICH WE OPERATE
KEY SALES MARKETS
The Greenery is ranked 18th (2016: 15th) in the World
League of international enterprises in the global
horticultural and fresh produce sector, taking 3rd
place behind fellow Dutch companies Royal Flora
Holland and Dutch Flower Group. In the Netherlands,
The Greenery is trailed by Harvest House (28th). The
Greenery exports fruit and vegetables to 53 countries.
With its market share of close to 20%, (source:
Hillenraad 2017), The Greenery is a dominant force in
the Dutch fruit and vegetable market, and one of the
largest players (5th place) in the horticultural and
fresh produce sector (including flowers and seeds). The
Greenery generates over 60% of its revenues in its
domestic market (the Netherlands), with Germany in
second, the United Kingdom in third, and France in
fourth place.
Market share in key markets
Markets
Size of Fruit and
Vegetables market 1
The Greenery's
market share
2017 2016 2017 2016
The
Netherlands
EUR 3.4
billion
EUR 3.3
billion 18.9% 19.9%
Germany2
EUR 4.0
billion
EUR 3.4
billion 3.3% 4.1%
United2Kingdom
EUR 1.1
billion
EUR 1.0
billion 3.7% 5.0%
France2
EUR 0.6
billion
EUR 0.5
billion 7.1% 7.5%
1 For Germany, the United Kingdom and France this concerns the
volume of exports of fruit and vegetables from the
Netherlands.
2 Source: Eurostat − Volume and revenue of exports from the
Netherlands to this destination (including re-export)
Geographic spread
Fruit & Vegetable Trade
The Greenery
Hagé International
Naturelle
Hoogsteder Groep
Greenery Produce
Van den Berg
Wagenaar
TG
HI
N
HG
GP
VB
W
Logistical Services
Hollander
Dijco
Blue Sky Cargo
H
D
BS
Exploitation & Development
Goeie Peer
LVE
New Sensation
Greenery Vastgoed (Real Estate)
GS Greenery España
GI Greenery Italia
Greenery UK
D Dalice
Fruit & Vegetable Trade
Logistical Services
Exploitation & Development
Greenery France GF
Greenery DeutschlandGD
GP
LV
GV
NS
PTLALA
UK
172017 Annual Report of The Greenery B.V.
TRENDS AND DEVELOPMENTS
General
Across the globe, populations are growing and
prosperity is increasing. As a result, demand for food is
rising. However, volumes on the Dutch fruit and
vegetable market are only experiencing mild growth of
between 1-3% per year. This growth rate is mainly
attributable to growing exports to our neighbouring
countries. Prices and margins remain under pressure in
all links of the food production chain due to
overcapacity and competition from retailers, which
seek to buy products as close to the source as possible.
This is one of the factors fuelling ongoing optimisation
of the various production chains. Producers
increasingly supply their retail customers directly. As a
result, current wholesalers/exporters are migrating
towards logistical service providers.
The growing emphasis on greener food supply chains
reflects an important global trend: the reduction of
waste and use of plastic as a packaging material, and
the valorization of residual flows. A focus on food
safety, transparency and reliable deliveries are no
longer distinguishing factors. However, they do
represent a license to operate. The market for organic
products continues to grow globally, especially in
North America and Northern Europe.
The Greenery has clearly charted all these
developments, and addresses them through its
strategy for the coming years. In its role as director of
the chain, The Greenery works with all supply chain
partners to keep sustainably grown fruit and
vegetables accessible and affordable.
Retail
Fruit and vegetables remain an important category for
European retailers. This is due to both the relatively
high profit margins involved, and industry potential for
positioning on the basis of social values. 'Healthy' is
popular. Accessible, easy-to-prepare and tasty fruit
and vegetable products help to reinforce food retailers'
sustainable image. Supermarkets and discounters
continue to wield major purchasing power. Some 80%
of fruit and vegetables are now sold to consumers
through the retail channel. Special offers, promotional
campaigns, innovations and budget lines remained key
to supermarkets' efforts to set themselves apart from
the competition in 2017.
Technological developments have ushered in a new
phase in the retail sector. Although supermarkets, as a
retail sector, have already significantly exceeded pre-
crisis sales volumes and expect further solid growth
figures for 2018, the sector is facing considerable
challenges. Players focused on the aspect of
experience, competition from the non-food sector and
online channels are all raising the competitive bar.
Supermarket groups and consumers expect a full,
broad and comprehensive range of products
throughout the year: these products must be
distinctive and should reflect the trend towards fresh,
sustainably produced food.
The consumption of fruit and vegetables is becoming
increasingly popular, fuelled by the trend towards
conscious nutrition, health and lifestyle. This applies in
particular to prepared or pre-sliced and packaged fruit
and vegetables. With regard to the Dutch market,
added value is set to become more important than
budgetary considerations. Products or concepts that
genuinely add value in terms of innovation, health and
experience will be given more space on the shelves.
Supermarkets are also focusing on online ordering
combined with home delivery and pick-up options.
New market players such as Picnic, HelloFresh and
Amazon cater to consumers' growing demand for
convenience. The use of big data helps them predict
consumer purchasing behaviour with increasing
accuracy, allowing them to tailor their range of
products accordingly.
Fresh Produce Unit Manager at JumboSupermarkten
Klaas de Boer
'Collaboration is key at Jumbo. The age of buying
and developing everything ourselves is long past.
Above all, the fruit and vegetable supply chain
needs to be as efficient as possible. Our motto is:
"harvested today, delivered to the client
tomorrow". The Greenery helps us innovate and
develop solutions, which is of great strategic
value to us.'
18 2017 Annual Report of The Greenery B.V.
The Greenery expects further growth of the online
retail channel, and has expanded its focus from
traditional retail to new market entrants. The Greenery
itself has also gained experience in the online
distribution and sale of fruit and vegetables over the
past few years. The acquired knowledge and
experience has been applied to build an organisation
aimed at servicing online retailers.
Chain
The prices of unprepared products increasingly
depend on developments on the global market. The
chain is responding through further integration,
increase in scale and consolidation, which is fuelling
competition in areas such as pricing. On the other
hand, consumers and retailers demand specific
standards in terms of quality and sustainability
(organic). This is forcing the sector to intensify its
focus on sourcing and the reliable and adequate
supply of superior products.
To stand out from the competition, supply chain
partners must facilitate all parts of the chain. The
option of ordering via smartphones or tablets,
distribution (24/7 deliveries to the next link in the
chain) and data allowing for targeted responses to
customer needs are becoming determining factors,
while links that add little value will lose their place in
the chain.
In its capacity as director of the chain, The Greenery
plays an important role in harmonising supply with
market demand. With its client-oriented approach we
connect the necessary links and keep chain length to a
minimum. As a result, The Greenery can supply a full
range of fresh products at any moment throughout
the year.
Consumers
Consumer confidence is increasing as the economy
improves. However, consumers tend to focus on
optimal price-quality ratios when doing their daily
grocery shopping, and are only willing to pay more for
products that offer clear added value.
As certain trends in the fruit and vegetable sector pick
up pace, their influence on revenues is becoming
increasingly clear. For instance, convenience products
such as meal boxes are seeing considerable growth.
Consumers are increasingly aware of the importance
of healthy nutrition. Food is becoming an evermore
important part of our lifestyle: 'You are what you eat'.
Consumers increasingly demand unique and authentic
products that will help them stand out and develop an
individual identity.
Consumers' requirements in terms of shops and
shopping have also fundamentally changed. Today's
consumers have less time and make clear choices
between offline, online, convenience, speed, pleasure
and experience. Catering to their needs effectively will
require a presence on and sales through multiple
channels (omni channel approach). At the same time,
consumers also increasingly value corporate social
responsibility and sustainability. Knowledge of
customers and their specific purchasing behaviour and
taste preferences is crucial, as is the ability to translate
this knowledge into new and relevant tailored
propositions.
The Greenery continually strives to gain insight into
consumer trends and preferences, applying trend
analyses and market and consumer research. The
insights gained through this process are applied to
develop new concepts and innovations that reflect
consumer preferences.
‘Fruit & Vegetable Machine’
In 2017, The Greenery carried out a large-scale
research project in order to provide insight into
the fruit and vegetable purchasing behavior of
Dutch consumers. We found out that, in the
Netherlands, we could use a creative nudge in
the right direction while planning dinner: no
less than 88% of the Dutch consumers
routinely determine at home what they will
purchase at the supermarket. Broccoli, green
beans and cauliflower are by far the most
popular vegetables.
The Greenery has therefore developed the
'Fruit&Vegetable Machine’
(GroenteFruitmachine) in order to inspire and
stimulate consumers to try other fruits and
vegetables for a change. In this playful way, the
weekly menu gets a fresh twist and routines
are broken.
192017 Annual Report of The Greenery B.V.
STRATEGY AND VALUE CREATION
With the help of its growers, The Greenery adds value to fresh fruit andvegetables. Indeed, that is our mission. In the process, The Greenery cancontribute to a healthier society through sustainable and safe growingmethods, product innovations, technological developments andcollaboration with supply chain partners.
POSITIONING
The Greenery Group provides its clients with a fresher
and more extensive range of fruit and vegetables than
any other trade organisation in the industry. We do so
by constantly optimising the chain, innovating our
products and services and ensuring that sustainability
is anchored in our operations.
GROWING TOGETHER; STRATEGY FOR2017–2022
The Greenery aims to grow together with its clients
and growers. We can achieve this by further increasing
our focus on the client, emphasising an integrated
approach to the supply chain, and adding maximum
value to our products and services: 'Growing Together'.
When it comes to fruit and vegetables, most added
value is created in the retail sector. The retail channel
offers The Greenery the greatest opportunities to add
value, partly through logistical and supply chain
solutions. As a result, The Greenery is focused on
optimally servicing this crucial channel. The Greenery
as director of the chain, offering an optimally efficient
process from grower to client.
AMBITIONS AND STRATEGICOBJECTIVES
The Greenery aims to evolve into the partner of choice
for retailers in the Netherlands and abroad. The focus
is on the Netherlands, Germany, the United Kingdom,
France and neighbouring European countries. Long-
term value creation on the basis of an efficient process
- from grower to client - is key (chain management).
This structural collaboration along with our
commercial focus ensure the continuity of sales and
willingness to invest on the growers' side, while
helping us to optimally meet clients' needs and add
value to products and services.
The past few years have seen The Greenery invest in
distribution centres, supplier stock locations and
employees. In order to finance these investments and
safeguard the continuity of its operations, The
Greenery has set itself the target of revenue growth
with the ambition of realising a healthy net profit. The
Greenery achieves growth by striving towards the
following objectives:
1. Demand-based production
Our client focus ensures that production is
increasingly aligned with demand. The Greenery plays
a crucial role in translating clients' wishes into
requirements for our growers. A situation where
growers grow the products that clients want will
ensure effective alignment between supply and
demand, while increasing efficiency throughout the
chain.
2. Focusing on added value for and byCoforta growers and suppliers
The Greenery provides products and services it can
valorize on the marketplace. Our focus on such added
value allows us to ensure the continued sale of The
Greenery's products. The Greenery is also working to
make membership of Coöperatie Coforta (our
shareholder) more attractive to growers. To this end,
The Greenery has reduced the term of new members'
loans from eight to four years. We will also offer our
growers a profit-related variable interest rate on these
loans. A new growers' portal offering new
functionalities and a modern interface was launched in
2017, helping to further improve the quality of our
cooperation.
3. Working together to strengthen our saleschannels
Approximately 80% of all European consumers buy
fruit and vegetables in supermarkets. The retail
channel offers direct access to consumers. It interlinks
20 2017 Annual Report of The Greenery B.V.
the entire chain of production, innovation, logistics,
marketing and consumers, and is where the majority
of value is added. For this reason, The Greenery applies
a retail-based strategy. In the coming years, The
Greenery will increase its share of retail customers by
delivering a broader and deeper range of products to
existing customers and developing a new home
market. The Greenery is also intensifying its
cooperation with subsidiaries in order to service
existing channels more effectively, capitalise on
opportunities and stay abreast of new developments.
The trade channel is complementary, and provides The
Greenery with sales opportunities for products that are
not sold through the retail channel. The specialised
trade sales teams are structured on the basis of
individual business units.
4. Towards a simpler and more sustainableprimary process
The Greenery strives to ensure modular processes and
differentiated service levels for its clients and growers.
This helps to reduce the complexity of our operations,
and involves the intensive use of IT systems. Effective
management can be facilitated by linking information
and making it accessible at the appropriate moment. A
continual focus on the added value of each process
step helps The Greenery minimise waste and ensure
the appropriate quality levels. The past five years have
seen major steps towards making our primary process
simpler and more sustainable, with growers
increasingly servicing our clients directly. This
contributes to the efficient utilisation of our
distribution centres and dramatically reduces the
number of transport movements. The number of
distribution centres will be reduced from eight to three
(from 105,000 m2 to approx. 60,000 m2).
Environmentally-friendly trucks are now the standard,
and sustainability has been incorporated into all day-
to-day processes.
5. Development of the organisation
The Greenery will invest in talented staff through the
establishment of a talent pool and focus on leadership
development. The shift from a task-oriented
organisation towards a result-oriented one requires
different leadership styles, a sense of responsibility
amongst our staff members and appropriate skills. The
Greenery will train and support its employees in this
process. The Greenery will also work to retain
knowledge for the organisation by applying a
structural approach to the succession of staff in key
positions.
STRATEGIC PILLARS
The Greenery's expansion strategy is based on four
pillars: cooperation, quality, innovation and
sustainability.
Cooperation
The Greenery adds value to fruit and vegetables
through cooperation with its clients, growers,
suppliers, partners and employees. Cooperation
involves the sharing of knowledge, experience and
information. This allows us to keep moving forward,
time and time again. Cooperation is key in an
evermore rapidly changing world.
Quality
Our products and services meet all applicable
requirements and - where possible - exceed our
clients' expectations. Quality is key to all The
Greenery's activities. Indeed, it is the basis for our
success. Quality ensures satisfied clients and lower
costs. To this end, The Greenery focuses on optimising
processes, for example by means of the Lean
methodology. We also minimise operations associated
with processes that do not add value. Furthermore, we
ensure optimal communication with our clients,
growers and suppliers.
Innovation
The Greenery focuses primarily on facilitating retail
customers by pro-actively anticipating their needs,
such as inventory forecasts and orders. The basic
innovation of primary processes through the
digitisation of trading activities and other measures is
also important in this regard. Our product innovations
are designed to get consumers eating more fruit and
vegetables.
Sustainability
Sustainability has been a key part of The Greenery's
strategy for years. Every step we take is based on
growing consideration for people and the
environment, and is aimed at creating a healthier
world, both today and for future generations. Our
sustainability policies are based on four key pillars:
Grower & Product, Logistics chain, Employees and
Society
212017 Annual Report of The Greenery B.V.
OUR STAKEHOLDERS
In building a healthier future, The Greenery is keen to
involve its principal stakeholders in its value creation
and supply chain optimisation strategy:
• Coforta members
• Other fruit and vegetable suppliers
• Retail and trade clients
• Consumers and society at large
• Employees
• Financial institutions
• Local authorities
• Sector organisations
Members
Coforta members are the source of all of The
Greenery's activities. Together with our growers, we
have broad expertise in the fields of cultivation,
products, packaging, food safety, logistics and
marketing. If the growers are successful, The Greenery
is successful. That is why The Greenery supports its
members in their efforts to pursue market-oriented,
innovative and sustainable cultivation and business
practices. The Greenery is working to build a solid pool
of committed Coforta growers by applying an
individual approach. The aim is to retain growers
capable of offering specific added value through
tailored relationship management strategies.
Fruit and vegetable suppliers
In addition to its 419 members, The Greenery also
works with other suppliers in the Netherlands and
abroad in order to provide a complete assortment of
fresh fruit, vegetables and mushrooms all year round.
Retail and trade clients
The Greenery ensures a solid long-term basis by
focusing on retail and supplying wholesalers and
exporters. Supplying trading companies offers
interesting sales opportunities and economies of scale,
allowing us to service the retail segment more
effectively and spread price risks. The company's
policy is to reduce the share of trade relative to retail
and increase efficiency through a digital platform.
Consumers and society at large
The main challenge facing the Dutch fruit and
vegetable sector is to increase fruit and vegetable
consumption in Europe. Organisations such as
Greenpeace and the Dutch Foundation for Nature
Conservation and Environmental Protection, and
consumer sentiment help to improve awareness of the
importance of sustainable fruit and vegetable
production methods. The collective goal is to create a
healthier and more sustainable society. That is one of
the most valuable of The Greenery's contributions to
society. It is crucial, therefore, to know what
consumers want. Based on our own research and
information gleaned from retailers, we develop
attractive new concepts and innovations.
In addition to the retail channel, the online channel is
playing an increasingly significant role. The Greenery is
making pro-active efforts to optimise our approach to
this channel, and is safeguarding its future position by:
• making products and packaging materials ‘online
proof’ based on relevant research;
• further increasing the sustainability of its primary
logistics process;
• securing food safety;
• offering convenience and ready-to-eat products.
22 2017 Annual Report of The Greenery B.V.
Employees
The Greenery's added value greatly depends on the
expertise, development, safety and health of our
employees. With this in mind, we carefully select our
staff members on the basis of their knowledge and the
skills they will need to carry out their tasks, today and
in the future. In this context, The Greenery nurtures a
corporate culture that encourages employees to feel
responsible for the results of the organisation as a
whole, and in which they collaborate as a matter of
course while fulfilling their duties independently.
Financial institutions
The financial resources and infrastructure made
available by financial institutions enable The Greenery
to make the payments required for its operational
management. In return, these institutions demand a
reasonable fee that is proportionate to the risk they
incur. The Greenery has an effective risk management
framework that allows it to keep its financing costs at
a relatively low level.
Local authorities
Through its activities, The Greenery contributes to the
economy in the regions where it operates. In doing so,
The Greenery complies with all applicable legislation
and regulations.
Sector organisations
The Greenery is affiliated with various industry sector
organisations - including GroentenFruitHuis, Federatie
Nederlandse Levensmiddelenindustrie (FLNI) and
Federatie Vruchtgroente Organisaties (FVO) - working
to promote the interests of businesses in the food
industry. The Greenery employees actively participate
in initiatives (working groups) by sector organisations
aimed at contributing to the development of the
sector and gathering knowledge.
THE VALUE CHAIN
In its capacity as director of the chain, The Greenery
strives to create sustainable value for its immediate
stakeholders and contribute to a healthier world. Our
new value chain - as depicted on the next page -
provides a broader context to The Greenery's long-
term value creation strategy.
External trends, developments, risks and opportunities
all affect our business model. The Greenery adds value
to fruit and vegetables for the consumer market
through the application of safe growing methods. In
the process, we also create value for our members.
232017 Annual Report of The Greenery B.V.
• Growing world population
• Increasing attention for health
• Technological developments
(e-commerce, robotisation and
nano technology)
• Climate trends
• Focus on sustainability
• Increases in scale, both on the
demand and supply sides
• Rise of local-for-local
TRENDS AND DEVELOPMENTS
OPPORTUNITIES AND RISKS
Mission & Vision (WHY)
Strategy (HOW)
Core activities (WHAT)
ProductsTotal volume (in kg) of traded products
Sales• Sales in key sales markets: NL, GE, UK, FR
and Asia, Middle East and USA
• Net revenue EUR 1 billion
Prices for members and suppliers in line with the market
Collaboration• New customers through the online retail
channel
• Development of new grower portal
• Participation in various sector
associations and working groups
Brands• The Greenery
• Naturelle
• Sweet Sensation
• Sweet and Sunny
• Tradizionale
• Everest
• Red Egg
• Zwerge
• Chica
• Dazzling Gold
• Verse Oogst
Innovations• Convenience products such as meal
packages and packaging concepts
• 'VersChat' chat robot and the
Fruit&Vegetable Machine
Logistic services• Opening of Soft Fruit DC
Sustainability• Ongoing PlanetProof certification
• More sustainable logistics chain through
reduction of CO2 emissions of DCs and
logistics activities, and use of solar
energy
By supplying fresh products,
The Greenery and its growers
contribute to a healthy society.
The Greenery strives to pay prices
for growers and suppliers that are
in line with the market.
The Greenery invests in its people
by investing in their health and
development.
The Greenery takes account of
people and the environment in
every step it takes. This is how
we contribute to a healthy world
- for people today and for future
generations.
The Greenery focuses on
innovation to be able to respond
to tomorrow's challenges and
continue adding value for
customers and consumers.
Via www.verseoogst.nl, The
Greenery provides inspiration to
over 850,000 consumers every
month in the form of recipes
and information about specific
products and growers.
OUTPUT OUTCOME
ORGANISATION
Member growers419 grower companies united in
Coöperatie Coforta
Suppliers1,000 grower and trade companies
from the Netherlands and abroad
ProductsOver 265 different types of fruit,
vegetables and mushrooms
Employees1,062 FTEs (at year-end)
DistributionLogistics infrastructure with three
state-of-the-art distribution
centres and in-house logistics for
transport by road and air.
Big dataContinuous chain, market and
consumer data collection and
analysis to ensure process
optimisation and innovation.
Intellectual capitalThrough legal predecessors, over
100 years of experience in the food
and agriculture sectors.
Sustainability
• 41% PlanetProof-certified growth
(formerly Milieukeur).
• Focus on sustainable use of
ground, water, energy, product
and climate.
INPUT
Core activities (WHAT)
• Supply chain management:
ensure a year-round,
complete range of
unprocessed fruit,
vegetables and mushrooms
geared to market demand
• Distribution: maximum
facilitation of transport,
packaging and storage
using our own logistics
facilities and state-of-the-
art DCs
• Quality & Environment:
assurance of the quality
and food safety of all our
products
• Commerce: specialised
market approach for
sales to retail and trade
segments
• Marketing & Innovation:
support through category
management, market
research, innovation and
concept development
Mission & Vision (WHY)
• With the help of its growers,
The Greenery adds value to
fresh fruit and vegetables.
• The Greenery contributes
to a healthy society through
the sustainable and safe
cultivation of tasty fruit
and vegetables, product
innovations, technological
developments and
collaboration within the
chain.
Strategy (HOW)
• Ensure demand-oriented
production
• Gear management
processes to ensure added
value for, and generated
by, Coforta growers and
suppliers
• Jointly strengthen sales
channels
• Streamline the primary
process and make it more
sustainable
• Development of the
organisation
+ Increasing consumption of fruit and vegetables
+ Importance of the fresh segment for retail
+ Know-how and experience of the Dutch horticultural sector
+ Increasing sustainability of the logistical chain
+ New cultivation methods
- Shortening the chain− Decline in demand for Dutch
products− Product availability− Climate trends− Ageing staff/management at
growers− New entrants
Value chain
24 2017 Annual Report of The Greenery B.V.
PROGRESS ON STRATEGY AND OBJECTIVES IN2017
For The Greenery, the 2017 reporting year was marked by variable marketconditions and a considerable focus on a sustainable future for theorganisation. The new strategy launched in 2017 will create a firmfoundation for the further development of the organisation.
The 2017 objectives included:
• obtaining approval for and (partially) implementing
the new strategy;
• expanding the retail strategy for existing and new
clients;
• retaining and further facilitating members;
• optimising collaboration among the business units;
• investing in the optimisation of logistics with new
distribution centres.
At the beginning of the reporting year, The Greenery
was faced with the poor availability of products from
Southern Europe, mainly Spain and Italy, due to the
changeable weather conditions. The limited supply
especially of leaf vegetables resulting from snowfall in
the region caused considerable price volatility.
Nevertheless, The Greenery was able to continue
serving its retail and other clients, although this did
create some pressure on the margin and partly on the
2017 financial result.
NEW STRATEGY
In 2017 The Greenery worked hard to launch the first
projects under the new strategy, ‘Growing Together’,
for 2017–2022 themed around demand-driven
production for clients. The Supervisory Board and the
General Meeting of Shareholders approved the new
strategy early in the second quarter of the year. In view
of The Greenery's positioning as supply chain director,
themes such as health trends, technology (digitisation,
robotisation, etc.), economies of scale and the rise of
e-commerce, play a prominent role in the
organisation's operations. Ample anticipatory
initiatives centring on those themes were undertaken
in the reporting year.
In 2017, in collaboration with Coforta, The Greenery
undertook various efforts with a view to the strategic
objective of making membership more attractive for
growers. With effect from 2017, the term of new
members' loans was reduced from eight to four years.
In addition, The Greenery will pay a profit-related
variable interest on these new loans. The new growers'
portal that was launched in 2017 will also be
conducive to collaboration. The portal is the central
link in communications and contact between The
Greenery and the growers regarding day-to-day
operations. With a user-friendly interface and a
flexible platform, the growers' portal has been
designed to accommodate the latest communication
devices, such as mobile telephones and tablets, and to
generate interest of new players.
One of the projects included in the strategic plan is to
set up an investment fund that will create new
opportunities, among other things, for more demand-
driven production. The Greenery initiated and
undertook the preparatory work. The aim is to create a
substantial fund together with external financiers.
Economies of scale, supply chain integration and the
need for sustainability and innovation in greenhouse
horticulture are forcing many growers to choose
whether to make significant investments or to
discontinue their business. This offers prime
opportunities for investors.
RETAIL
In 2017 The Greenery invested in collaboration and
projects with retailers across the entire supply chain,
including new product development. Examples include
meal boxes in response to the consumer's desire for
convenience, and individual packets that meet the
need for fruit and vegetables for lunch breaks or a
snack at school, in the office or at home. Consumers
are increasingly ordering online. We devoted
considerable efforts to the online ordering trend to
optimally support our clients. The Greenery aims to
increasingly reach consumers in its focus markets
through the shortest possible route, which requires
both a different organisation and a flexible approach.
The Greenery gained some experience of this
approach with the Verse Oogst (Fresh Produce) box. A
252017 Annual Report of The Greenery B.V.
sustainable relationship with and a feel for the client
are central to The Greenery remaining a relevant
player in the future.
OPTIMAL LOGISTICS
The reporting year saw a clear focus on the further
optimisation of the logistics chain, which is
fundamental to The Greenery's value creation model.
Against this background, the ongoing construction of
new distribution centres, which began in 2015, was a
significant activity in 2017. Completion of the DCs,
scheduled for the first quarter of 2019, will mark the
final stage in creation of a highly efficient logistics
chain.
However, due to the construction of the new
Barendrecht distribution centre in three phases, the
first of which was completed in September 2016, The
Greenery was temporarily faced with additional
logistics costs in 2017, as a number of retail activities
still needed to be carried out in Bleiswijk. This led to
the loss of productivity and to additional transport
movements. The new specialty soft fruit distribution
centre in Breda, which became operational at year-
end 2016, already helped boost productivity
considerably in the reporting year.
The objective is to maximise the use of home-based
transhipment so as to reduce the square metreage of
logistics space needed, and to allow for higher
stacking. In 2019 the total floor space in the
distribution centres will be reduced to around 60,000
m2 (2013: 105,000 m2). A streamlined and efficiently
organised flow of goods is crucial to The Greenery. The
volume of home-based transhipments in the
Netherlands amounted to 61% in 2017 (2016: 61.8%,
and 2013: 40%). At the same time, the number of
transport movements has seen a significant and
structural decrease due to the optimisation of the
goods flow and the reduction of inter-site transport.
This has helped to reduce CO2 emissions as has the
gradual renewal of the truck fleet. The new trucks use
the energy released when braking to cool the trailer. In
the third quarter of 2017 solar panels were installed on
the first 16,500 m2 of the roof the new Barendrecht
distribution centre, contributing to the sustainable
generation of energy. The new logistics premises due
to be constructed in Barendrecht will similarly feature
solar panels.
Fresh Produce Unit Manager at JumboSupermarkten
Klaas de Boer
'We set out Jumbo's sustainability ambitions
together with The Greenery. One example is our
shared ambition to increase the share of Dutch
fresh produce with PlanetProof certification at
Jumbo to 100% by the end of 2019.'
26 2017 Annual Report of The Greenery B.V.
BUSINESS UNIT RESULTS
The reporting structure of The Greenery Group reflects its various businessunits that focus on the Fruit & Vegetable Trade, Logistical Services andExploitation & Development respectively.
FRUIT & VEGETABLE TRADE
Soft fruit
In 2017 The Greenery recorded a higher volume and a
considerable increase in revenue from soft fruit as a
result of higher prices. The volumes of cherries,
raspberries and asparagus in particular increased
sharply whereas strawberry and blueberry volumes
remained stable. Asparagus crops benefited from the
favourable spring weather. Greenhouse strawberries
recorded normal seasonal production as opposed to
the low production recorded by field-grown
strawberries. The tasty Arabella strawberry from The
Greenery's own variety programme has secured its
position in the market. Programmes for new varieties
have been initiated.
There is a marked increase in soft fruit grown in so-
called cultivation tunnels; a cultivation method that
reduces the need for crop protection and makes crops
less vulnerable to precipitation. Moreover, cultivation
tunnels comply with the more stringent environmental
requirements and enable soft fruit to be sourced from
growers with PlanetProof certification. The number of
PlanetProof-certified soft fruit growers continued to
increase in 2017. The aim is to issue 50% of The
Greenery's soft fruit growers with a Planet Proof
certificate by the end of 2018.
In the years ahead larger volumes and supplies will be
guaranteed as a result of economies of scale and
commercial partnerships. This will also facilitate the
development of new varieties, bringing about an
increase in the number of retail clients. These
partnerships will look specifically at innovations in
smaller resealable as well as larger packaging which
creates less waste and promotes the consumption of
healthy fruit.
Top fruit
The year 2017 proved to be quite challenging for top
fruit growers. The top fruit harvest in autumn 2017
was lower than in previous years due to the spring
frost. Because a considerable share of the top fruit
harvest in 2017 is supplied and sold in 2018, the lower
harvest yield has affected members' supplies in 2018.
The total sales volume is therefore projected to
decrease in 2018.
The top fruit business unit recorded lower revenue in
2017. This was caused by the lower volume while
prices remained unchanged.
Sustainable cultivation (with PlanetProof certification)
is becoming ever more important, with good results
again achieved in this area in 2017. Together with
growers, the sales organisation and retailers we are
working on a sustainable future.
The number of club varieties in the product range is
rising, intensifying the fight for retail shelf space as
retailers increasingly want to stand out from the crowd
by offering a unique product. This opens up
opportunities for club varieties with unique
characteristics in terms of flavour and colour. The
Sweet Sensation pear is prime example that meets the
needs of retailers. The demand for the Sweet
Sensation pear outstrips the available volumes, which
results in good pricing.
Greenhouse vegetables
Greenhouse vegetables recorded a steady year in
2017. Prices were good early on in the season for crops
grown under artificial light. A poor spring and a
reasonable summer and autumn followed. Most
products generated positive returns as a result, with
aubergine and pepper crops as the positive outliers.
Courgette and cucumber growers recorded a good
start to the season which eventually developed
moderately. Although differences were recorded
between the various segments of tomato cultivation,
on the whole the year was good for growers. Bell
pepper cultivation was less favourable in 2017 than in
2016, but overall the year ended with favourable
results.
The retail strategy was further implemented in the
greenhouse vegetable segment by defining focus
clients and by making available the desired volume to
272017 Annual Report of The Greenery B.V.
serve them optimally. The supply chain was further
optimised by loading more direct and larger flows of
goods, organising processes efficiently, also from a
cost perspective, and focusing increasingly on market-
driven production.
In response to sustainable developments, The
Greenery increased the use of bio-based packaging,
issued growers with PlanetProof certification and
involved them in the energy transition project as part
of the new style of cultivation, encompassing the use
of geothermal energy, solar panels and energy
efficiency measures.
Mushrooms
The Mushrooms business unit recorded stable revenue
in 2017 with a slightly higher volume than the
previous year. The results came under some pressure,
mainly due to poor pricing in the summer period.
Local production is increasing in Europe. In addition,
The Greenery is facing international competition from
countries such as Poland,which supplies wholesale to
the United Kingdom and other markets. The
Mushrooms business unit is therefore placing greater
focus on the domestic market, where higher volumes
are being supplied to the retail segment. Therefore,
delivery reliability, optimum logistics and safety are of
crucial importance.
28 Footer
Tomato and organic vegetable grower
Dirk Pieter van der Meer
Meer Camp and Organic Brothers have various
quality marks for sustainable and organic
cultivation, including PlanetProof. 'Sustainability
is crucial for our licence to operate; alongside
care for the environment, sustainably employable
staff are indispensable. On top of that, it's
important to collaborate with mutual respect.
That's why we have chosen The Greenery.'
The Greenery also supplies to a limited number of e-
commerce businesses and is seeing a steady increase
in supplies to such businesses with specific
requirements in terms of content and packaging. The
Greenery responds to trends and preferences among
consumers who expect other mushroom varieties in
the product offering in addition to button mushrooms.
The sustainability efforts undertaken centred on
PlanetProof-certified growers and special packaging,
such as top seal and recyclable carton.
Rich soil produce
The Rich Soil Produce business unit recorded a slightly
lower volume in 2017 with varying and overall slightly
lower prices than in 2016. With higher production
levels at the beginning of the year and a warm
autumn, the produce, including broccoli, was supplied
to the market earlier than usual. The variable weather
conditions therefore affected the total volume.
Rich Soil Produce focuses primarily on the Dutch
market given that more locally grown produce is
available in markets abroad. In the Netherlands the
business unit focuses on supplying the retail segment
and ensuring the reliability and prompt availability of
products. In terms of exports, opportunities for
individual products are examined, again with a strong
focus on the retail segment. In addition, the efficient
organisation of the logistics chain remains a key
priority.
Sustainable cultivation is a marked trend, where the
priority lies on obtaining the PlanetProof quality mark,
zero-emissions cultivation and alternative methods of
cultivation, such as hydroponic lettuce production.
Imports
The start of 2017 was poor mainly due to a lower
product offering as a result of the changeable weather
conditions in Southern Europe. Consequently, The
Greenery was unable to offer balanced programmes in
spring. However, the overall volume achieved was
higher than in 2016. This was largely attributable to a
good summer with high volumes of stone fruit
(peaches and nectarines), melons, grapes, kiwis and
products from China.
The poor start to the season, the relocation of the
physical logistics infrastructure and the modification
of the ERP system more or less coincided. That is why
high priority was given to 'putting our house in order'
in 2017. This programme was successfully completed.
28 2017 Annual Report of The Greenery B.V.
'Convenience' and 'healthy' are visible trends in the
product range of the Imports business unit. The
avocado is a healthy product reflecting strong growth
and investments were made in marketing ready-to-eat
convenience products.
Biological
In terms of volume, revenue and margin, 2017 was a
difficult year for The Greenery/Naturelle. The year saw
a difficult start with limited product availability at the
beginning of the year due to the variable weather
conditions, which affected the whole of Europe. In
terms of sourcing, especially in the organic segment,
there is less flexibility and room to manoeuvre.
The main markets for Naturelle are the Netherlands,
Germany and Scandinavia. We have noted a favourable
development in the United Kingdom in recent years.
Vegetable fruits again constituted the largest product
category in 2017, followed by field produce, citrus and
exotics. Blueberries recorded strong growth figures;
this is one of the products on which we will intensify
our focus. The citrus category is another product
group that will receive additional attention.
Tomato sales in particular were difficult, which
affected pricing due to the increase in acreage in the
Netherlands and more locally grown crops in our focus
countries.
In the retail segment organic produce has meanwhile
become a 'must have' for retailers that want to stand
out from the crowd. This development means that
Naturelle will need to supply a year-round organic
product range, in which partnerships with growers and
retailers, and demand-driven production play a crucial
role. In order to respond to the needs of retailers and
consumers, other packaging types and varieties are
also being examined for organic produce. Naturelle is
additionally undertaking efforts to gather information
on what consumers want. These insights will be used
to tailor the supply chain more to their preferences.
Dalice
Dalice sales declined by 19%, partly due to to a far
larger supply of garlic from China, bringing fiercer
competition. With negative pricing increasing the
pressure on prices, revenue declined by 23% in 2017.
Deliveries within the group increased.
Hoogsteder Group
Hoogsteder Group recorded good results in the face of
challenging conditions in the various markets.
Both Hoogsteder Groenten en Fruit B.V. and Greenery
France reflected solid revenue growth, despite the
increased pressure on prices. The retail sales channels
in France, Italy and Spain continue to be the most
important sales segment. In 2017 the first steps were
taken to create an online platform for producers and
buyers in France.
Greenery Italia Srl recorded a good year in 2017 with a
substantial increase in volume, partly brought about
by new clients in the retail segment. Due to the fierce
competition on the Italian market the margin is
slightly under pressure.
Van den Berg, the supplier for the Swiss market, is
largely dependent on the volumes permitted on the
market by law - which were in line with expectations in
2017. Van den Berg has a strong position and a good
reputation in the market and focuses primarily on the
retail chain store segment.
Greenery Produce Overseas B.V. focuses on all overseas
territories and therefore is strongly reliant on cargo
flights. The higher airline charges have put pressure on
the margins.
JH Wagenaar
Wagenaar saw a slight decline in volume in 2017
against 2016. This was caused by lower sales in
Eastern Europe in early 2017 coupled with an
oversupply of field and staple products in the last few
months the year. Good weather conditions in Germany
and Poland resulted in good harvests and
consequently lower prices and sufficient supplies. The
higher volumes of cucumbers for the industry
compensated for part of the decline in volume and
revenue. An expansion of the fresh produce segment
automation system (RPO) was successfully
implemented in 2017; as a result, insight and data
exchange between the various business units will
improve.
292017 Annual Report of The Greenery B.V.
LOGISTICAL SERVICES
Hollander Barendrecht
Hollander recorded a good year in 2017. Growth was
achieved as a result of the above-average growth of
Plus as well as a larger number of Sunday deliveries,
among other factors. Various initiatives aimed at
improving efficiency were completed. Furthermore,
follow-up action was taken to expand capacity to
improve service provision to PLUS and third parties. A
contact was signed with PLUS to expand service
provision regarding a crate sorting system that was
introduced in early 2018.
Blue Sky Cargo
The total revenue and result recorded by Blue Sky
Cargo in 2017 remained unchanged compared with
the previous year.
Dijco
Dijco transported higher volumes in 2017 compared
with the preceding year. Domestic volume increased
both within The Greenery Group and among external
clients. Volume transported abroad decreased slightly
due to The Greenery's lower export volume.
EXPLOITATION & DEVELOPMENT
Greenery Vastgoed B.V.
The new premises in Barendrecht for Crates and
Packaging and the EPS crate washing facility became
operative in 2017. Solar panels were installed on part
of the Retail Distribution Centre after summer.
Furthermore, following the demolition of the second
section of the Barendrecht Retail Distribution Centre,
construction of the new building commenced, which is
scheduled for completion in early 2018.
The land and buildings in De Lier were sold in mid-
2017.
Goeie Peer B.V. Licensed Varieties EditorsB.V./New Sensations B.V.
Goeie Peer B.V. recorded an improved operating result
in 2017, largely on account of the absence of
impairments, as was the case in 2016.
Licensed Varieties Editors B.V. recorded lower revenue
than in the previous year due to lower fruit royalties,
which were caused by disappointing harvest results in
Belgium, Italy and Slovenia. The entry frees for new
country participants had a favourable impact on
revenue. Operating costs remained stable.
New Sensations B.V. recorded lower revenue than 2016
due a decrease in the number of pear trees sold.
Despite the damage caused by frost in the spring of
2017, which brought about disappointing harvest
results in the autumn, and the storm damage suffered
just before harvesting, revenue from fruit royalties was
higher than in 2016 while operating costs were lower.
A programme for intensive supervision in cultivation
was introduced that should lead to improved
production figures in the long term. The aim of the
incentive plan, under which selected growers are
eligible for the partial pre-financing of the purchase of
trees and investments in hail protection nets, is to
boost tree-planting. The harvests in Argentina, Chile
and South Africa facilitate extension of the sales
season in Europe.
PTLA Produce and Trading Latin America(held for sale)
PTLA cultivates mangos in north-eastern Brazil for
export and delivery to The Greenery. For strategic
reasons, the organisation is available for sale. Local
consultants have been engaged to select buyers and
assist with the eventual sale.
PTLA recorded a decline in revenue in 2017 due to a
prolonged water shortage as a result of which not all
plots were able to be used for production. The
operating profit was positive due to a cost reduction
exercise.
30 2017 Annual Report of The Greenery B.V.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Consumers are willing to pay for value-added products. Moreover,awareness of the importance of good nutrition is growing, with healthyfood increasingly becoming part of an individual's lifestyle. Consumers areincreasingly demanding unique and authentic products and are attachinggreater importance to corporate social responsibility and sustainability.The organic varieties within the fruit and vegetable segment areflourishing. Together with its growers, suppliers, retail and other clientsThe Greenery is responding to these trends. By giving more considerationto people and the environment in every step we take, we help create ahealthier world, both today and for future generations.
ABOUT THIS REPORT
The auditor did not assess the reliability of the
information that concerns sustainability figures.
ASSURANCE OF SUSTAINABILITYPOLICY
In 2017 The Greenery worked hard on the new
strategy, ‘Growing Together’ for 2017–2022.
Sustainability policy is a key aspect of this strategy. In
2018, this will be set out in greater detail with more
specific objectives. The Greenery's outline objectives in
the area of sustainability for 2022 are as follows:
• 100% sustainable certification (social and
environmental)
• Maximum valorization of product streams (value
creation of waste in the best possible manner)
• Transparent communication with our environment
• Reduction of CO2 emissions
• Promoting the consumption of fruit and vegetables
• Ensuring employee safety, healthy and
development
The key aspects of our sustainability policy are as
follows:
• Sustainably feeding the world's growing population
based on quality, safety (a good working
environment for employees) and with a minimum
impact on nature.
• Good prices for our members and suppliers.
Under the management's guidance, our employees are
already implementing the company's sustainability
policy in everyday practice. Composed of the Sourcing,
CSR statement
'The Greenery's ambition is to make sustainably grown fruit and vegetables accessible and affordable to
everyone. Together with our growers and supply chain partners we contribute to a healthy and responsible
lifestyle among all age groups, while endeavouring to minimise our impact on the environment. We
therefore adhere to the Sustainable Development Goals adopted by the United Nations and the World
Health Organisation aimed at tackling poverty, inequality and climate change by 2030. In our new
sustainability strategy, which we plan to present in 2018, we will set out our plans for contributing to the
Sustainable Development Goals.
Steven Martina, CEO, The Greenery B.V.
312017 Annual Report of The Greenery B.V.
Quality and Environment, Logistics, Retail, Marketing
and HRM departments, the Sustainability steering
group will jointly set out the sustainability policy and
the objectives for 2022 and monitors achievement of
the objectives. Sustainability is a fixed item on the
agenda of management team meetings.
GENERAL DEVELOPMENTS
Our clients can rely on The Greenery to provide them
with fruit and vegetables that meet the highest
feasible quality standards, are safe and produced
within efficient and increasingly sustainable chains.
Substantial efforts were undertaken in this area in
2017 and will continue in 2018 anticipating future
developments.
PROGRESS ON SUSTAINABILITY IN2017 BY PILLAR
In order to enhance transparency we have integrated
the sustainability report into the annual report. Our
sustainability policy is underpinned by four pillars.
Sustainability has been an integrated part of our
business operations for years. At the end of 2015 we
formulated our current sustainability strategy for
2020, which sets out our ambitions in this regard. In
2018, our sustainability policy will be further
tightened and expanded, where necessary and new
sustainability objectives towards 2022 will be set.
Pillar 1: Growers and products
We encourage our growers and suppliers to operate as
sustainably as possible. Our growers' products have
been cultivated with respect for people and the
environment. All our members and suppliers are
certified according to the social responsibility
standards we have formulated, and they also work in
accordance with our food safety and environmental
standards.
The Greenery co-signed the Sustainable Trade
Initiative (Initiatief Duurzame Handel - IDH), with
various industry peers and buyers in the Netherlands.
This covenant is helping to increase the sustainability
of international trade chains. Our objective is to
purchase all our products in social risk countries
sustainably by 2020, and to ensure suppliers'
production methods comply with IDH-approved
standards.
Sustainability policy objectives 2020
52 Footer
Pillar 1:
GROWERS AND PRODUCTS
Our growers’ products are the result of
sustainable cultivation. All our members and
suppliers are certified according to social
responsibility standards selected by us, and
also work in accordance with our food safety
and environmental standards. We encourage
our growers and suppliers to ensure maximum
sustainability in their working practices.
Pillar 3:
EMPLOYEES
The Greenery treats all its employees in a
sustainable manner, promoting their safety,
health and development. We strive to ensure
that all our employees are fit, enjoy their work
and have the knowledge and skills they need to
perform their job.
Pillar 2:
LOGISTICS CHAIN
By 2020, our entire supply chain will be
sustainable. Logistics processes are central
to our business operations. By making
those processes even more efficient, we will
significantly support our sustainability policy,
for example through reduced CO2 emissions
and fuel consumption.
Pillar 4:
SOCIETY
We promote the consumption of fresh fruit and
vegetables in accordance with the standards
issued by the Netherlands Nutrition Centre,
in order to contribute to a healthier and more
sustainable society.
32 2017 Annual Report of The Greenery B.V.
The Greenery endeavours to provide guidance to its
suppliers abroad on these guidelines and will initiate
programmes with international suppliers to assist
them in meeting an approved standard.
Within The Greenery, various Food Chain Projects are
being established with partners in the chain (suppliers
of crop protection agents, cultivation consultants,
growers, sales companies and retailers) in order to
make the cultivation process more sustainable. Issues
such as the quality of surface waters and biodiversity
play an important role in this context.
We encourage our growers to operate as sustainably
as possible, for instance by publishing all our
sustainability initiatives on the Verse Oogst website to
provide clients and consumers with information on our
sustainable growers. For further details, see Verse
Oogst. In addition, we are working together with our
clients to create awareness for the sustainable working
methods used by our growers.
Pillar 2: Logistics chain
The Greenery continuously seeks to enhance the
sustainability of the supply chain. Logistics processes
are central to our business operations. We gear those
processes to our clients' needs at minimum costs and
with the smallest possible environmental impact. The
drive towards making those processes even more
efficient and investing in sustainable means of
production makes a valuable contribution to our
sustainability policy. This is reflected, for example, in
lower CO2 emissions , lower fuel consumption, less
waste and the smart utilisation of residual flows. The
following targets were achieved in 2017:
Performance indicators for the Logistics ChainTarget for
2020
Achieved
in 2017
Achieved
in 2016
Highest number of
certifications in
warehouses (BRC,
GMP, HACCP)
100% 100% 100%
Transport-related
CO2 emissions
(g/km)
tbd in
2018
868 887
Reduction of CO2
emissions from gas
and electricity at
DCs (kg)
-10%
relative
to 2016
2016
-2.6% -2.3%
Home-based
transhipment for
Dutch products
N/A 61.0% 61.8%
Reduction of CO2 emissions.Within the logistics chain we continuously apply
economically feasible initiatives aimed at reducing CO2
emissions. The new-build programme 'Building for the
future' was initiated in 2016, and we have put three
new distribution centres into operation since then.
Solar panels will be installed on these distribution
centres in phases. This has already been implemented
at the RDC where some 4,600 solar panels were
installed on a 16,500 m2-roof. The energy generated by
these panels will be used for technical installations,
reach trucks, cooling, etc. The projected average
annual production is 1,099,000 kWh, which is equal to
the average consumption of over 300 households.1.
Around 10% of our energy need will be generated by
our own solar panels by 2020.
The next phase will start mid-2018 when the Breda
distribution centre will be equipped with solar panels.
1 2-person household 2,950 KWh.
Performance indicators for growers and products
Target for 2020 Achieved in 2017 Achieved in 2016
GlobalGAP-certified members 2020 100% 100% 100%
GlobalGAP-certified suppliers 2020 100% 100% 100%
GlobalGAP Risk Assessment on Social Practice (GRASP)
certified members
100% 100% 100%
Suppliers in social risk countries certified in accordance with
the Sustainable Trade Initiative (IDH)
100% 70%1 70%1
Number of growers participating in Bee Deals by 2020 30 23 25
PlanetProof (total acreage in the Netherlands) 100% 41% 7%
1 This is the percentage of our suppliers that hold, or have take demonstrable steps to achieve, IDH certification.
332017 Annual Report of The Greenery B.V.
In addition to solar panels, investments will be made in
making operations more sustainable by:
• Investing in energy recovery systems in the Dijco
vehicle fleet;
• investing in modern, sustainable distribution
centres and cooling installations;
• researching whether road transport can be
replaced by more sustainable alternatives such as
train transport and inland shipping;
• further consolidating logistics operations;
• monitoring and minimising inter-site transport
between locations;
• conducting a feasibility study on the valorization of
residual streams.
Home-based transhipmentHome-based transhipment remained stable in 2017 at
61%, which is roughly the maximum feasible level
given our current grower database. We use home-
based transshipment whenever it has a positive effect
on supply chain costs or environment. This represents
a substantial reduction in transport movements, fuel
consumption and CO2 emissions, which implies lower
supply chain costs.
Commuting expenses and lease vehiclesOnly vehicles with an A, B or C label are contracted for
the lease vehicle fleet. We also promote the use of the
mobility budget rather than a lease vehicle so that
employees can individually decide whether to travel by
public transport, potentially combined with their
private car.
WasteIn 2017 the percentage of waste per kilogramme of
products delivered amounted to 1.9% (2016: 1.4%).
This increase was mainly caused by the fact that Hagé
waste flows were included in the reporting starting
2017. A further reduction of supply chain costs and
the volume of waste remains a key focus area. By
offering 'first-time right' training programmes –
derived from the Lean method – we make our
employees more aware of what they can do to help
reduce the waste volume. In this context, The Greenery
works closely with Milgro, a waster broker. In 2017 a
LEAN programme was implemented in Breda in which
employees received training on how to deal with the
various types of waste. The LEAN programme was also
implemented at Naturelle in the course of 2017.
PlanetProof
As from 2019, the PlanetProof quality mark (formerly 'Milieukeur') is expected to be a requirement for
growers who supply fruit and vegetable products to a large percentage of the Dutch retail segment. The
certificate helps growers demonstrate that they grow produce sustainably. There are requirements
relating to water, waste, energy and crop protection. The number of Dutch buyers and retailers who
require this quality mark is likely to increase, given the trend of offering fruit and vegetable products with
a sustainable, honest background, in response to growing demand for these products among consumers.
It is important that we provide our clients a total package of sustainable fresh, safe and healthy fruit,
vegetables and mushrooms every day. The Greenery considers it important to work with a wide range of
growers who already hold this quality mark and can supply products in the required quantities to meet
these client-specific requirements. This focus demonstrates that The Greenery is a trailblazer in supplying
sustainable, honest products to consumers.
The Greenery actively assists its growers in transitioning to PlanetProof. It recognises the added value of
PlanetProof and supports its growers in obtaining the quality mark. It is vital to properly inform growers
and provide them with the tools they need to implement a quality mark such as PlanetProof. The number
of growers within The Greenery who hold the PlanetProof quality mark is rapidly increasing: three-
quarters of Dutch growers who work with The Greenery are expected to hold certification by the end of
2018.
Besides assisting growers and promoting certification, together with industry peers, sector organisations,
interest groups and buyers The Greenery is also actively engaged in revising the PlanetProof guidelines.
This initiative aims to further clarify the guidelines and to achieve environmental gains while safeguarding
product quality and crop returns.
34 2017 Annual Report of The Greenery B.V.
In the context of the circular economy, in 2017 The
Greenery entered into a partnership with its waste
management supplier Milgro to start reusing and
processing fruit and vegetable waste into food for
insect farming. In addition, The Greenery has a
partnership with Verspillingsfabriek, which processes
rejected products from The Greenery into soups and
sauces. In 2017, 500 kilogrammes of rejected
tomatoes were reused for this purpose.
Another focus area for 2017 was the reduction of
packaging material. To that end, a study was carried
out to determine how a further reduction in packaging
materials can be achieved. This may include the use of
lighter versions of existing materials, or switching to
sustainable raw materials (such as bio-based
cardboard). In addition, we will critically examine the
need for packaging materials, as well as options to
replace them by biodegradable options.
Pillar 3: Employees
The Greenery adopts a sustainable approach towards
all its employees, promoting their safety, health and
development. Since long-term employability is in
everybody's interest, it is a shared responsibility of the
employer and the employee. Promoting awareness of
this fact is an important element of our employability
policy. We strive to ensure that all our employees are
fit, enjoy their work and have the knowledge and skills
they need to perform their job. For further details, see
the section entitled 'Our employees'.
Employee performance indicatorsTarget for
2022
Achieved
in 2017
Achieved
in 2016
Sickness absence 1 < 5.0% 5.7% 4.9%
1 Excluding maternity leave
With a view to reducing sickness absence in labour-
intensive locations within the distribution centres in
the future, the robotisation of production, focusing
mainly on heavy and repetitive work is currently being
trialled, focusing mainly on heavy and repetitive work.
The chapter covering 'Our employees' contains more
information on the various projects relating to the
health and fitness of our employees.
Priorities for 2018• An employee satisfaction survey will be held as part
of our efforts to improve the dialogue with
employees.
• Further promoting our employees' long-term
employability, for instance through initiatives
developed by a special steering group and through
pilot projects in the field of health.
Pillar 4: Society
The Greenery aims to contribute to a healthier society
by making fruit and vegetables accessible and
affordable. It is essential therefore to collect
information on and analyse trends and consumer
preferences and to develop concepts that tie in with
these trends. We also promote the consumption of
fruit and vegetables in accordance with the
Netherlands Nutrition Centre standards. The Greenery
aims to achieve this goal by implementing the
measures and initiatives listed below.
Social responsibility performance indicatorsTarget for
2022
Achieved in
2017
Achieved
in 2016
Promotional
activities
5 3 2
Monthly visitors
to verseoogst.nl
200,000 125,000 90,000
Number of
members of the
community
150,000 50,000 42,000
Innovations per
annum
10 5 3
In 2017 The Greenery launched a number of successful
innovations. The resealable top-seal packaging for
soft fruit was developed and produced in early 2017.
This has helped The Greenery reduce the use of plastic
and provided consumers with a practical solution for
carrying soft fruit. A range of fresh produce packages
was also developed. With these meal solutions we help
consumers conveniently prepare delicious meals using
fresh produce. The single-serve packaging for
blueberries responds to the trend towards various
eating moments during the day. Part of the packaging
can be broken off so that it can be taken to school,
work or the beach. The other parts can be stored in the
fridge.
352017 Annual Report of The Greenery B.V.
The Verse Oogst website recorded healthy growth in
2017. Consumers can find a wealth of information
relating to growers and their products on the website.
The number of website visitors and followers on social
media again increased. The reach of the platform
increased to over 850,000 consumers on a monthly
basis. To help consumers eat more fruit and
vegetables, Verse Oogst launched 'VersChat' (First
Produce Chat'), a smart chat robot that provides recipe
suggestions using emojis. The Fruit & Vegetable
Machine was also launched and helps consumers
compose their weekly menu in a playful manner. Every
season bloggers received a Fresh Produce Box packed
with seasonal products. The bloggers share their
experiences and recipes and teach followers about the
seasonal products.
Verse Oogst was represented at the ' Share A Perfect
Day' event and, in an inspiring presentation,
demonstrated to 100,000 visitors how easy it is to eat
more fruit and vegetables. Workshops were hosted
together with Isabel who works for the 'Hippe
Vegetariër' ('Hip Vegetarian'). The Greenery also
contributed to the National Apple Picking Day in 2017.
With monthly in-store demonstrations and give-away
promotional activities, such as the book promotion
with 'Dummy the Mummy', we promote the
consumption of fruit and vegetables through our retail
clients.
In developing new concepts, The Greenery explicitly
focuses on the consumer. The Greenery collects
information on eating patterns, needs and preferences
by conducting consumer surveys and through
trendwatching. The insights collected through Verse
Oogst are also used for this purpose. This information
Verse Oogst website 2017
• Over 125,000 monthly website visitors
• Over 50,000 fans on Facebook
• Reach of over 850,000 monthly consumers
• Third place in the vote for Website of the
year 2017.
Agriterra
In February 2017 Sander Dietvorst, site manager, RDC Retail, travelled to Nepal to provide expert advice to
two agricultural cooperatives. For this purpose, he worked with Agriterra, an organisation engaged in the
professionalisation of farmers and market gardeners worldwide. The cooperatives aim to enable all
growers to sell the produce and, in doing so, to strengthen their position. The cooperative expects to be
able to achieve better prices for growers. They receive assistance from Dutch agricultural experts for this
purpose. Sander is one of those experts. 'At The Greenery the members of the Cooperative operate large,
professional businesses. I visited a large grower in Nepal with one hectare of land; we're looking at a
completely different scale here. It's extremely rewarding to be able to share your knowledge and to
experience that you really make a difference to other people.'
Sander advised two cooperatives. An assessment was performed for the first to determine whether it
meets the requirements for a partnership with Agriterra. A joint action plan was drawn up for the
cooperative setting out specific matters. The second engagement involved developing a business plan for
a field produce cooperative. Their sincere appreciation for taking the time and the effort to help them
develop their business is something Sander will never forget. 'They are extremely grateful and hospitable. I
truly believe that they will starting working with the new ideas.'
36 2017 Annual Report of The Greenery B.V.
is used to develop concepts which are subsequently
tested by consumer panels.
To contribute to a healthier society, The Greenery
sponsors a variety of projects, such as the Rotterdam
Marathon, Clini Clowns, the Winter Spectacular and a
number of small-scale initiatives.
372017 Annual Report of The Greenery B.V.
64 65Footer Footer
Planet ProofBee DealsAs pollinators of food crops, bees are essential
in our food production system. They help
the growers by pollinating the flowers on the
fruit trees so that each flower can grow into a
delicious piece of fruit.
The brand name Bee Deals refers to
the various measures taken by
23 of The Greenery's growers
to create
an optimum living environment for bees.By changing the layout of their orchards,
the growers can encourage other natural
pollinators such as mason bees and
bumblebees.
In early 2017, The Greenery
introduced its resealable
topseal packaging for
soft fruit. In addition to
the convenience it offers
consumers, this packaging
is also better for the
environment as it uses less
plastic.
Resealable topseal
Via Planet Proof (previously Milieukeur),
gardeners, growers and others involved in the
production process realise goals including
cleaner air, fertile soil, improved water quality,
circular waste processing and recycling. These
joint efforts centre on five focus areas:
• Soil, landscape & biodiversity
• Water
• Energy
• Production & consumption
• Climate
With the Planet Proof quality seal, The
Greenery guarantees that the product in
question has been grown sustainably and with
respect for the environment. The Greenery
provides its growers with active guidance
throughout the Planet Proof certification
process.
The Greenery strives to see each and every one of its Dutch growers obtain the Planet Proof seal by the end of 2019.
In 2013, The Greenery signed
the Sustainable Trade Initiative
(Initiatief Duurzame Handel, or
IDH), a covenant that is helping
to increase the sustainability
of international supply chains.
Sustainable means suppliers'
production methods comply
with IDH-approved standards
70% of our suppliers have already earned IDH certification.
Consumers are always in
search of a convenient way to
eat a healthy diet. In order to
meet this need, The Greenery
has developed a range of soup
and meal boxes.
Delicious, fresh, quick and easy to prepare!
Meal boxes
Pick recipes with the chatbotA technological innovation
to help consumers choose
healthy foods. One emoji is all
it takes to dish up the perfect
recipe to suit any mood.
supply energy to all technical installations in
our retail distribution centre. We will further
expand the number of panels in 2018.
4,600 solar panels
teler keten medewerker samenleving
SUSTAINABILITY
The consumer is looking to enjoy healthy, honest and tasty products, straight from nature. Together with
its growers, suppliers and retail customers, the Greenery meets this demand. Our sustainability policy is
reflected in every link of the chain and is based on four cornerstones:
Renewal of our vehicle fleet is reducing CO2 emissions by 10%
The Greenery offers its employees tools and advice for a healthy lifestyle.
societyemployeeschaingrowers
38 2017 Annual Report of The Greenery B.V.
64 65Footer Footer
Planet ProofBee DealsAs pollinators of food crops, bees are essential
in our food production system. They help
the growers by pollinating the flowers on the
fruit trees so that each flower can grow into a
delicious piece of fruit.
The brand name Bee Deals refers to
the various measures taken by
23 of The Greenery's growers
to create
an optimum living environment for bees.By changing the layout of their orchards,
the growers can encourage other natural
pollinators such as mason bees and
bumblebees.
In early 2017, The Greenery
introduced its resealable
topseal packaging for
soft fruit. In addition to
the convenience it offers
consumers, this packaging
is also better for the
environment as it uses less
plastic.
Resealable topseal
Via Planet Proof (previously Milieukeur),
gardeners, growers and others involved in the
production process realise goals including
cleaner air, fertile soil, improved water quality,
circular waste processing and recycling. These
joint efforts centre on five focus areas:
• Soil, landscape & biodiversity
• Water
• Energy
• Production & consumption
• Climate
With the Planet Proof quality seal, The
Greenery guarantees that the product in
question has been grown sustainably and with
respect for the environment. The Greenery
provides its growers with active guidance
throughout the Planet Proof certification
process.
The Greenery strives to see each and every one of its Dutch growers obtain the Planet Proof seal by the end of 2019.
In 2013, The Greenery signed
the Sustainable Trade Initiative
(Initiatief Duurzame Handel, or
IDH), a covenant that is helping
to increase the sustainability
of international supply chains.
Sustainable means suppliers'
production methods comply
with IDH-approved standards
70% of our suppliers have already earned IDH certification.
Consumers are always in
search of a convenient way to
eat a healthy diet. In order to
meet this need, The Greenery
has developed a range of soup
and meal boxes.
Delicious, fresh, quick and easy to prepare!
Meal boxes
Pick recipes with the chatbotA technological innovation
to help consumers choose
healthy foods. One emoji is all
it takes to dish up the perfect
recipe to suit any mood.
supply energy to all technical installations in
our retail distribution centre. We will further
expand the number of panels in 2018.
4,600 solar panels
teler keten medewerker samenleving
SUSTAINABILITY
The consumer is looking to enjoy healthy, honest and tasty products, straight from nature. Together with
its growers, suppliers and retail customers, the Greenery meets this demand. Our sustainability policy is
reflected in every link of the chain and is based on four cornerstones:
Renewal of our vehicle fleet is reducing CO2 emissions by 10%
The Greenery offers its employees tools and advice for a healthy lifestyle.
societyemployeeschaingrowers
392017 Annual Report of The Greenery B.V.
OUR EMPLOYEES
Increasing the value of fruit and vegetables is a challenge that depends onpeople. As such, it requires a joint effort, which explains The Greenery'sambition to play a facilitating role. A great value has been placed oncollaboration, independence and expert knowledge, and we have workedover the course of 2017 to promote HR policy on many fronts within theframework of our new strategy, ‘Growing Together’.
DEVELOPMENTS IN 2017
Following several reorganisations in recent years, in
2017 The Greenery embarked on the path towards
organisational growth and development. We have
ambitious plans. More than in previous years, we
invested in the training, education and development of
our staff, and we will continue to do so in the years
ahead. We expect that thanks in part to these efforts,
we will be able to attract and retain high-quality
individuals to serve on the Board, management and in
other managerial positions under our Strategic Plan
for 2017-2022. We have adjusted our recruitment and
selection plans accordingly, including online
assessments for staff with higher professional
education diplomas who will become our future
leaders. We have also tightened our assessment cycle
in this regard,
with a view to turning The Greenery into a truly agile
and digital organisation which will require a different
set of skills from employees than previously. A
willingness to learn and to embrace change, flexibility
and collaboration are among the spearheads of this
approach. On the one hand, we expect this cultural
shift to provide a solid foundation for our organisation
while, on the other, we need it to support our
development into a more dynamic and effective
enterprise. Employees will increasingly be required to
be proactive and self-managing, and to be able to
respond flexibly to opportunities that arise in the near
and more distant future.
The Greenery intends to realise this cultural shift by
conducting talent development programmes centring
on leadership, for example. The training courses and
programmes are geared to the company's business
objectives, usually with tailored content. We engaged a
renowned training institute to develop a programme
specifically for a number of highly talented individuals.
It will remain crucial for The Greenery to have a highly
skilled workforce and to ensure the long-term
employability of individual staff members.
59Footer
Employees at Dutch businessesyear-end 2017, by business unit
Sourcing
Subsidiaries Staff and service units
Logistics Retail
68
543
250 Total: 1,020 employees
105
54
60 Footer
Employees at foreign businessesyear-end 2017, by country
United Kingdom
China Brazil1
1 Most of the employees in Brazil are flexible hires.
Spain Italy
58
7
4Total: 84
employees
60
40 2017 Annual Report of The Greenery B.V.
NEW CLA
Towards the end of the third quarter, the sector agreed
a new two-year Collective Labour Agreement (CLA)
with the trade unions, retroactive to 1 January 2017.
Key aspects of that CLA include a 3.75% salary
increase spread across the term of the CLA and a
partial retirement scheme for older employees
applicable from five years prior to state retirement
age. Employees who sign up for the scheme relinquish
their no-work days for older employees in exchange
for a reduction in working hours to 80% while
retaining 92.5% of their salary and 100% of their
pension accrual.
In addition, The Greenery has agreed with the trade
unions and the Works Council (OR) to take part in a
pilot to promote flexibility in work schedules.
Companies are invited to sign up and benefit from the
following scheduling options (subject to conditions):
increasing the number of Saturdays on which
employees are allowed to work from 26 to 35,
expanding the bandwidth for flexible working hours
from 32 to 44 hours and reducing the schedule
announcement period to 14 days. These measures are
proposed in response to the developments towards a
24-hour economy and extended opening hours of
retailers. The result is that work pressure is
increasingly shifting towards the weekends.
ABSENCE DUE TO ILLNESS AND LONG-TERM EMPLOYABILITY
The absence due to illness rate during the reporting
year was 5.7% (2016: 4.9%). We aim to reduce this rate
to below 5% by 2020. The target rate has been
adjusted upward due to our ageing workforce
combined with the incremental rise of the retirement
age and the physical strain of some of the work
involved.
Implementation of the long-term employability action
plan continued in 2017. Since long-term employability
is in everybody's interest, it is a shared responsibility of
the employer and the employee. Following up on the
pilot in 2016, investments were made in individual
coaching on lifestyle and behaviour, focusing on
themes such as coping with work pressure, the
importance of good health and stopping smoking.
Approximately 30 employees joined the coaching
programme, including office staff and people from the
various distribution centres. Their response has been
positive. One further objective is to create
'ambassadors' in the field of long-term employability.
Long-term employability is also linked to the BRAVO
(movement, smoking, alcohol, nutrition and
relaxation) concept, which was further implemented in
the course of the year. Launched in 2016, the pilot
aimed to help people stop smoking was followed up
with training sessions in the first and third quarters of
2017. We also encourage employees to take a
'lunchtime stroll'.
The Greenery promotes long-term employability
overall by stimulating the health and safety of
employees through prevention and research, including
periodic risk assessment and evaluations (RI&E), safety
walk-throughs, workplace studies and advice,
information and exercises. Employees at the various
sites are a particularly vulnerable group due to the
physical demands that their work entails. A job
rotation system has been introduced at a number of
sites to prevent the same employees from having to do
the same or the heaviest work all the time.
In this connection, we conducted a study in 2017 into
the possibilities for using robots in the distribution
centres. Robotisation may offer a solution where
people perform physically demanding tasks, as it
allows for continuous operations while increasing
efficiency (robots allow higher stacking and can be
deployed for repetitive jobs) and reducing costs. This
will enhance the long-term employability of our
people. 2018 will see further efforts to promote this
development within The Greenery.
The measures and efforts aimed to guarantee a
healthy and safe work environment for our people are
described in the Arbo Care System.
61Footer
Gender split within our Dutch companiesyear-end 2017
Male Female
84%
Total: 1,020 employees
16%
412017 Annual Report of The Greenery B.V.
EMPLOYEE PARTICIPATION
The Greenery greatly values the opinions of its
employees. This is reflected in the excellent
relationship with the Works Council, with a
consultation session held every six weeks. The Works
Council represents all sections and layers of the
organisation, covering both our offices and the
distribution centres. The interest in and commitment
to the Works Council were reflected in works council
elections at various sites during the course of 2017.
This resulted in a new Works Council taking up office in
the fourth quarter of the year, including three new
representatives (a total of fifteen members).
The various sites of The Greenery each have their own
local works council, which discusses issues specifically
relevant to the site concerned, such as a proposed
change in the work schedule. Following discussion in
the local works council, proposals are submitted for
approval to the Works Council. The Works Council also
plays a role in matters concerning the company as a
whole, such as employee satisfaction surveys,
schedule adjustments, major investments and long-
term employability. The Works Council approaches
Management from a positive yet critical perspective
and performs its role in a pragmatic way.
30 Footer
Auction Affairs Manager, The Greenery
Ary van der Waal
'I've been working as an auctioneer at The
Greenery for 50 years. Despite the digitization of
the auction process, personal contacts with
buyers and colleagues remain as crucial as ever
for effective collaboration. We'll make further
improvements going forward thanks to a digital
alternative to the traditional auction process and
more opportunities for personal development.'
PARTICIPATION ACT
Within the context of the Participation Act
(Participatiewet), The Greenery employed 21 FTEs with
limited opportunities in the labour market (2016: 11).
Most of these people were employed at the
Barendrecht DC. Structured and regular tasks such as
packaging, sorting, labelling and loading/unloading
fruit and vegetables help these people improve their
chances on the labour market. Most of them are quite
enthusiastic and serve as an example to others.
In this way, The Greenery met the jobs agreement from
the Participation Act with due regard for its own social
responsibility. Our in-house employment agency
Olympia was nominated for the 1st Social Impact
Award in recognition of its efforts in this field. This
resulted from the huge and successful influx of
candidates recruited by Olympia and the Municipal
Social Services department under the Participation Act
and employed at The Greenery. Olympia owed its
nomination to its alignment with the core values
formulated by the Drechtsteden Social Services
Department: People-oriented, Innovative,
Collaborative.
TRAINEESHIPS
Effective 2018, The Greenery offers two-year
traineeships at higher professional education level,
enabling students to gain experience in the fields of
logistics planning and goods flow management, or as
team leaders at one of our operating companies.
CODE OF CONDUCT
The Greenery's employees are required to adhere to
the core values (Reliable, Driven and Clear) and work in
accordance with those values as laid down in the code
of conduct. In the event of any suspected abuse,
employees are free to report the issue anonymously
via the Speak Up reporting system. Their reports are
assessed by an independent investigator and followed
up as required. No reports were received through the
Speak Up system in 2017.
42 2017 Annual Report of The Greenery B.V.
FINANCIAL PERFORMANCE
• Net result up 38.9% to EUR 12.5 million• Revenue from continuing operations stabilised at EUR 1.0 billion• Gross contribution fell slightly; the gross margin remained virtually stable at 15.1%• Operating expenses and income from associates unchanged compared with 2016• Higher depreciation due to investments in sustainable future• Variable rate of interest paid on members' loans at 16.5%• Further balance sheet contraction through sale of real estate and redemption of members' loans• One-off tax benefit of EUR 2.4 million• The capital base increased from 50.5% to 58.1%
The upward trend in net result continued throughout
2017. The gross margin and operating expenses
stabilised, while the slight decrease in EBITDA caused
by the somewhat lower revenue was amply
compensated by a corporate income tax benefit.
For better insight, we have also prepared an overview
of net revenue, gross contribution, operating expenses
and EBITDA for all continuing operations.
Discontinued operations concern PTLA (held for sale),
several liquidation losses (North America and Poland)
and a number of non-operational one-off revenues
and costs relating to earlier financial years, with a total
negative EBITDA impact of EUR 0.3 million (2016: EUR
1.4 million).
NET REVENUE
In 2017, the share in revenue held by the Netherlands
and Rest of Europe increased at the expense of the
other geographical areas such as Germany and the
United Kingdom.
During the course of the year, weather conditions in
the Netherlands and other production countries
fuelled upward pricing pressures in many product
groups. This partially offset the lower volumes.
Net revenue by geographical area
x EUR million 2017 Share 2016 Share
Index relative
to 2016
The Netherlands 648.7 65% 654.3 63% -1%
Germany 130.6 13% 140.6 14% -7%
United Kingdom 41.5 4% 49.5 5% -16%
Rest of Europe 165.0 16% 154.2 15% 7%
Rest of the world 17.4 2% 26.3 3% -34%
Total net revenue 1,003.2 100% 1,024.9 100% -2%
Net revenue by category
x EUR million
Total Continuing operations
2017 2016 Index 2017 2016 Index
Fruit & Vegetable Trade 927.9 950.3 -2% 927.9 932.3 -1%
Logistical Services 70.5 69.8 1% 70.5 69.8 1%
Exploitation & Development 4.8 4.8 0% 4.2 4.8 -13%
Total net revenue 1,003.2 1,024.9 -2% 1,002.6 1,006.9 -1%
432017 Annual Report of The Greenery B.V.
The 0.4% revenue decrease compared to 2016 (based
on continuing operations) can be mainly attributed to
lower revenue from Exploitation & Development
which, in turn, was caused primarily by one-off
revenues and a decrease rental income due to the sale
of real estate.
EBITDA
In 2017, EBITDA amounted to EUR 16.7 million (2016:
EUR 18.0 million). This slight decrease of EUR 1.3
million compared with 2016 was entirely caused by the
lower gross contribution. This is slightly higher relative
to continuing operations (EUR 2.4 million) because the
balance of one-off and discontinued income and
expenses was slightly higher in 2016.
Overall, operating expenses stabilised at EUR 135.1
million; the operating expenses for continuing
operations likewise remained unchanged (EUR 130
million). The main factor behind the increase in
variable personnel expenses was the additional
staffing levels at the DCs, which can be largely
attributed to inefficiencies in ongoing construction
projects, necessitating work to be carried out at
multiple sites. The productivity figures for the newly
opened DC in Breda were up.
EBITDA
x EUR million
Total
Continuing
operations
2017 2016 2017 2016
Grosscontribution1 151.9 153.0 149.6 150.1
Personnel
expenses - fixed 67.6 68.2 66.8 66.6
Personnel
expenses -
variable 27.4 25.3 27.4 25.1
Other operating
expenses 40.2 41.5 38.4 39.0
EBITDA 16.7 18.0 17.0 19.4
1 Net revenue minus cost of sales and cost of outsourced work
and other external expenses
63Footer
Net revenue by geographical areain EUR million
The Netherlands
Rest of Europe Rest of the world
Germany United Kingdom
2017
1,003.2
2016
1,024.9
41.5 49.5165.0
154.217.4 26.3
130.6 140.6
648.7 654.3
62 Footer
Net revenue by categoryin EUR million
Fruit & Vegetable Trade
Exploitation & Development
Logistical Services
2017
1,003.24.8 4.8
70.5 69,8
927.9 950.3
2016
1,024.9
44 2017 Annual Report of The Greenery B.V.
OPERATING PROFIT
x EUR million
Total
Continuing
operations
2017 2016 2017 2016
EBITDA 16.7 18.0 17.0 19.4
Amortisation and
depreciation 15.6 14.1 15.2 14.1
Impairments (0.3) 1.3 (0.3) 0.4
Operating profit 1.4 2.6 2.1 4.9
At EUR 15.6 million, amortisation and depreciation
was approximately EUR 1.5 million higher than in
2016. This is a result of heavy investments in the new
sites in Barendrecht and Breda in 2016. Since the
relevant new DCs were taken into use in the second
half of 2016, they will be included for a full year in the
2017 figures.
Based on new insights, a previous write-down of fixed
assets was partly reversed (for EUR 0.3 million) in
2017.
INTEREST INCOME AND EXPENSES
x EUR million 2017 2016
Operating profit 1.4 2.6
Interest income and expenses (3.9) (4.0)
Tax on result 3.7 (0.6)
Share of result of participating
interests 11.3 11.0
Net result 12.5 9.0
Interest income and expenses amounted to EUR 3.9
million in 2017, which is more or less comparable to
the amount in 2016. The interest on members' loans
accounts for a considerable part of the financial
expense.
VARIABLE INTEREST PAYMENTS
For the first time in its history, The Greenery will pay a
variable (profit-related) interest on members' loans for
2017. The variable interest on members' loans in 2017
was approximately 16.5%. The associated interest
payable amounted to some EUR 0.6 million.
SHARE OF RESULTS OF PARTICIPATINGINTERESTS
The result of the non-consolidated share in Euro Pool
Systems (held indirectly via Houdstermaatschappij
Verpakkingsbedrijven B.V.), at EUR 11.3 million, was
virtually the same as in 2016 (EUR 11.0 million).
TAX ON RESULT
The figures for 2017 include a one-off tax gain of EUR
2.4 million.
NET RESULT
Net result amounted to EUR 12.5 million, which
represents an increase of 38.9% relative to 2016 (EUR
9.0 million). The slightly lower operating profit was
amply compensated by the one-off corporate income
tax benefit.
INVESTMENTS AND DISPOSALS
Total investments in 2017 amounted to EUR 8.5
million, compared with EUR 20.3 million in 2016,
which included investments at grower companies of
EUR 5 million. Due to the postponement of CMO grant
applications in 2017, no investments at grower
companies were made in that year.
The Greenery sold real estate in 2017, including its last
building at the former Westerlee (De Lier) action site,
which was sold to WDP in March. The proceeds from
these disposals amounted to EUR 8.2 million, resulting
in a recognised loss of EUR 1.8 million. In addition, The
Greenery sold a small part of its plot in Barendrecht.
BALANCE SHEET POSITION
Compared with 2016, the balance sheet total
decreased by EUR 26 million to EUR 300 million. On
the assets side, this is mainly attributable to a
decrease in fixed assets (owing to the sale of real
estate and depreciation) and in the receivable from
Coforta in connection with the settlement of CMO
grant applications. On the liabilities side, the decrease
was reflected in lower payables and other liabilities.
The decrease in liabilities is connected to the
postponement of CMO grant applications in 2017, as a
result of which no grower projects were added while
the year did see grower projects being settled.
452017 Annual Report of The Greenery B.V.
EQUITY AND FINANCING
Group equity increased by EUR 11.1 million, primarily
as a result of the positive net result (EUR 12.5 million).
During the course of 2017, the company utilised the
three-year financing agreement concluded with
Rabobank, Deutsche Bank and Rabo Factoring at the
end of 2016 and implemented in the first quarter of
2017. This financing agreement consists of a EUR 40
million accounts receivable financing facility, a EUR 20
million credit facility and a EUR 10 million guarantee
facility. On a yearly average, the company did not
utilise the available Supply Chain Finance facilities to
the same extent as in 2016, due to the higher costs
compared with other sources of finance.
Members' loans decreased, on average, in 2017.
Members' loans contracted in 2017 or later are subject
to a term of four years (compared with the eight-year
term that previously applied). The effect of this shorter
term will become evident with effect from 2021.
CAPITAL BASE
x EUR million 2017 2016
Equity capital 106.2 95.1
Product funds 5.2 5.5
Provisions for deferred tax
liabilities 17.8 15.9
Mandatory members' loans 36.9 39.8
Pension provision (RJ271) 8.4 8.7
Total capital base 174.5 165.0Capital base as a percentage of
total assets 58.1% 50.5%
The growth of the capital base (+ EUR 9.5 million) is
driven in particular by the higher equity (+ EUR 11.1
million) and a higher provision for deferred tax
liabilities (+ EUR 1.9 million) due to the creation of a
reinvestment reserve.
SOLVENCY
Solvency equalled 54.7% in 2017 (2016: 41.0%).
CASH FLOW
The cash flow from operating activities amounted to
EUR 10.0 million, compared with EUR 8.1 million in
2016. The most significant differences relative to last
year are in payables and other liabilities.
The cash flow from investing activities was EUR 0.2
million, compared with - EUR 8.9 million in 2016,
mainly on account of lower construction activity in
2017 than in 2016. The proceeds from disposals were
comparable to the amount for 2016.
46 2017 Annual Report of The Greenery B.V.
OUTLOOK FOR 2018
Due to the investments in recent years, The Greenery has been able toprogressively strengthen its foundations for a sustainable future. Theresults are positive and the company's balance sheet is satisfactory. Thecompany is now devoting much of its attention to the new strategy for2017–2022, 'Growing Together', with its special focus on the customer.
DEVELOPMENTS TO DATE
The new strategy, 'Growing Together', was approved in
2017 and is intended to achieve profitable revenue
growth, both organically and in the form of third-party
partnerships.
The company's initiatives aimed at increasing the
appeal of Coforta membership have led to the
introduction of a profit-related variable interest
payment on (mandatory) members' loans.
The real estate projects entailed one-off costs
(demolition costs and book losses), but despite these
costs the company saw its net result improve further in
2017, boosted in part by a corporate income tax
benefit.
OUTLOOK FOR 2018
The roll-out of the new strategy will require a great
deal of attention in the course of 2018. During this
process the company will focus in particular on the
following initiatives:
• more demand-oriented production;
• management processes aimed at stimulating
added value for Coforta growers;
• a joint effort to strengthen the sales channels;
• simplification and more attention to sustainability
of the primary process;
• and continued development of the organisation,
including efforts to ensure a suitable workforce.
To streamline these initiatives, a programme director
has been appointed who will support the various
project teams, in conjunction with the General
Management, in designing and implementing the
plans.
The strategy is aimed at growing the business by
putting the client centre stage. In 2018 we will
continue initiatives to optimise collaboration between
the various business units so as to safeguard optimum
customer service.
At the beginning of 2018, The Greenery signed an
agreement with the British company APS to intensify
collaboration focused on promoting the sales of Dutch
vegetable fruits on the British retail market. As part of
this partnership, The Greenery acquired a minority
interest in APS.
One of the plans is to set up an investment fund to
achieve sustainable economies of scale in the
greenhouse horticultural sector by providing risk-
bearing capital. The fund is expected to be available by
the end of 2018. However, The Greenery will depend
on external financiers to ensure the fund will have
sufficient financial scope and be able to operate
independently.
Another major challenge in 2018 is the finalisation of
investments in the logistics network, which will be
marked by the realisation of the final phase in new
construction for the DC in Barendrecht. These
investments will reduce the number of distribution
centres to three by early 2019, compared with the five
centres currently in use (2014: eight). This will involve
non-recurring costs, since the company's operations
will have to continue as normal during construction.
2018 will also see projects aimed at expanding the
company's commercial strength and coherence,
strictly within the context of the new strategy. We
expect to be able to reap the fruits of these efforts
from the end of 2018.
The results of a company in the agricultural sector will
always depend on uncertain and unpredictable
weather conditions. For this reason, Management
refrains from making a statement on the projected
results for 2018. In 2018, The Greenery will retain its
focus on generating optimum profitable revenue
growth and controlling costs. Management is aware
that a - modest - net result and associated free cash
472017 Annual Report of The Greenery B.V.
flow is necessary to ensure the continuity of the
company and will continue to highlight this as its
central objective.
FINANCING
The availability of sufficient funding − in the form of
working capital, for instance − is crucial for the
continuity of the enterprise. The facility concluded at
the end of 2016 has enabled The Greenery to finance
its growth plans.
In 2017, the company decided to temporarily
discontinue the EU's Common Market Organisation
(CMO) grant applications once again in 2018. This
means that The Greenery will not be able to apply for
CMO subsidies in 2018. The resulting lower cash inflow
has been factored into the budget for 2018. In 2018, it
will be decided whether to submit a new multi-year
strategy and 2019 annual plan for 2019 and beyond,
or to stop applying for CMO funds altogether.
LABOUR MARKET
Owing to increasing scarcity on the labour market, the
percentage of permanent staff relative to flexible staff
looks set to increase in 2018. However, the overall size
of the workforce is expected to remain more or less the
same. CLA arrangements will cause the total wage
costs to increase.
ROBOTISATION AND DIGITISATION
2018 will see continued efforts to implement
innovation, digitisation and robotisation projects.
While these projects are not expected to yield
immediate and significant staff reductions in 2018,
they do lay a foundation for more effective and
efficient operations in the future.
SUSTAINABILITY
The Greenery will draft a new sustainability strategy in
2018. The existing sustainability initiatives will be
continued in 2018 as part of that new strategy.
48 2017 Annual Report of The Greenery B.V.
RISK MANAGEMENT
Managing risks is crucial while realizing our strategic ambitions. Weanalyse and control risks that may jeopardise the realisation of ourobjectives in an integral way.
Integral risk management means that risk
management is based on a central vision and top-
down approach, and that there is a high degree of
certainty that material risks are managed
appropriately. 'Integral' also means that all relevant
risk areas are covered. The advantage of such an
integral risk management approach is that it enables
the company to respond fast and flexibly to critical
situations and the view all risk aspects from a variety
of non-central disciplines.
Risks can be classified according to potential impact.
Certain risks can even threaten the continued
existence of the organisation. Those existential risks
are mapped and controlled by mitigating them, or
taking out insurance to cover them, where possible.
RISK MANAGEMENT FRAMEWORK
For all employees within The Greenery, the risk
management framework is the model for organising
their own processes and work activities from the
perspective of risk management in a responsible and
effective way. This is effected through line
management and is primarily the responsibility of The
Greenery's management team.
In consultation with the Audit Committee, the General
Management of The Greenery has formulated a risk
management framework which describes the
integrated way in which The Greenery controls the
risks to which it is exposed. That risk management
framework serves as the basis for the organisation's
risk management structure.
The Greenery's risk management framework is derived
from the best practice COSO ERM model, but its
implementation is tailored to the specific context,
needs and vision of The Greenery.
The General Management are the owners of the risk
management framework and ensure that it is up to
date and communicated to the employees. The risk
management framework has been approved by the
Supervisory Board. In consultation with the
management team, the General Management carries
out a risk management framework review and update
at the central level at least once a year. The company
takes out insurance to cover unacceptable risks that
cannot be controlled through mitigation measures
within the corresponding business processes. The
insurance portfolio and the associated conditions are
evaluated periodically, in consultation with the
General Management.
The management framework test and update are used
as input for the evaluation of non-central guidelines.
Risk assessment is a recurring agenda item at
meetings of the General Management and
Management of The Greenery. In order to manage its
operational risks, The Greenery has taken preventive
measures (including the segregation of duties) and
measures aimed at detecting, recognising and
mitigating potential consequential damage.
RISK CULTURE
The Greenery encourages its employees to remain
alert to the risks typically associated with their tasks
and responsibilities. Every employee and responsible
person is expected to consider the risks and act to
control those risks in the performance of their duties.
Upon their employment, new employees are informed
about the code of conduct and other important
guidelines that make up part of the management
framework, such as the company's competition policy.
This knowledge is periodically updated through
training sessions. These aspects are also included in
management meetings and during evaluations. This
helps to maintain a corporate culture in which
employees are aware of the risks and it is absolutely
clear to everyone that any behaviour that oversteps
moral standards and any failure to observe the
guidelines will not be tolerated.
CONTROL ENVIRONMENT
The Supervisory Board and its Audit Committee are
integral elements of the control environment The
General Management reports on and renders account
for the design and operation of the risk management
framework to the Supervisory Board after preliminary
492017 Annual Report of The Greenery B.V.
discussion in the Audit Committee. Risks and risk
management come within the remit of the Audit
Committee, which meets four times each year in the
presence of the CFO, the internal auditor and the
external auditor. Based on input from the audit
reports, risk management regulations have been
tightened and translated into supplementary
measures.
Due to the integration of risk management into line
management activities, risks and risk management
measures have become a fixed component in the
periodic reporting cycle and have been assimilated
into the planning and control process.
RISK TOLERANCE
The Greenery's risk tolerance is set out in its mission,
vision and core values. To determine and respond to
risks, it is crucial to be able to identify undesirable
events and obstacles in relation to The Greenery's
objectives. First, we identify the risks that would
threaten the continued existence of the organisation.
These risks will have to be mitigated and insured
wherever possible.
The Greenery also faces various strategic, operational
and financial risks that are an inherent part of doing
business, but pose a threat to achieving its objectives.
Acceptance of a specific risk level is a necessary
condition for The Greenery to achieve its strategic,
operational and financial objectives. Risk tolerance
differs among the various risk categories, depending
on their contribution to the company's objectives.
Risk tolerance
Risk category
Risk
tolerance Notes
Strategic Moderate The Greenery is prepared to take moderate risks in striving to fulfil its strategic
ambitions as formulated in its business objectives. We always aim to find a healthy
balance between the sales function for members of Coöperatie Coforta (low risk
tolerance) and the commercial objectives of our trade activities (higher risk
tolerance).
Operational Low The Greenery focuses on preserving the continuity of supplies of fruit and vegetables
to its retail customers. We aim to manage the risks that could jeopardise this
continuity wherever possible. Risk tolerance here is low.
Financial Low Financial risks, including currency risks, interest rate risks and risks associated with
the availability of financial resources, are an inherent part of enterprise. The Greenery
aims to maintain its solid financial position so as to safeguard the continuity of its
commercial activities. Since assuming financial risks is not one of The Greenery's core
activities, the company endeavours to hedge those risks or insure them where
possible.
Compliance None The Greenery aims to comply with all applicable laws and regulations as well as client
requirements in a variety of fields, including (though not limited to) crop protection
agents, food safety, the environment, competition, corporate social responsibility
and sustainable enterprise.
50 2017 Annual Report of The Greenery B.V.
OVERVIEW OF THE PRINCIPAL RISKSAND THEIR POTENTIAL IMPACT
In consultation with operational management, the
General Management has identified the following
strategic and key operational risks and taken
mitigating measures to cover them. We use a risk
matrix as an aid in the assessment of these risks. The
matrix enables us to weigh up the risks based on an
estimate of the chance that a risk materialises and its
consequences for our ability to achieve our objectives.
The matrix includes all the most important risks, with
due regard for the mitigating measures taken.
55Footer
Risicomatrix
Negligible
Prob
abili
ty/F
requ
ency
Impact
Small Average Large Fatal
Very Large
Large
Average
Small
Very Small
1. Food safety and quality
2. Demand for sustainability
3. Supply continuity
4. Long-term availability of products
5. Newcomers / start-ups
6. Loss of clients
7. Dependence on automation
8. Concentration
9. Qualitative and quantitative staff levels
10. Compliance
11. Costs
1
3
2 6 7 9
4
8 11
10
5
512017 Annual Report of The Greenery B.V.
Strategic and operational risks
Risks Control measures
Food safety and qualityThe risk that cultivated products fail
to meet the required quality
standards, which could result in
stagnation in the sales of our
members' products
We use certification and inspection (in part by our own inspectors) to
safeguard food safety, based on a plan prepared by the Quality &
Environment department. In addition to inspections, the system
provides for the implementation of hygiene and detection measures.
Demand for sustainabilityThe risk of a decline in demand for
The Greenery's products among
buyers due to a lack of attention for
the sustainability of products,
cultivation methods and business
processes.
The Greenery uses certification (GRASP, Milieukeur etc.) to promote the
sustainability of its product range. In addition, the company takes
internal measures to make its own business processes more sustainable.
The results are measured and accounted for in a variety of reports,
including the annual report.
Supply continuityIf The Greenery is no longer able to
supply products of the required
quality and in the required volumes,
this entails risks. It is crucial,
therefore, to ensure that members
continue to meet the applicable
qualitative and quantitative
standards.
Members supply their products in a process known as contracted
purchasing. To safeguard product supplies, membership should offer
sufficient benefits, such as prices in line with the market, access to high-
profile clients, high-quality logistics and streamlined administrative
processes. Various initiatives have been taken to make membership
more attractive. In addition, efforts are being made to recruit new
members and to find suppliers who are prepared to supply on the basis
of a contract rather than market rates.
Long-term availability of productsThe risk that products are not
available, or not available in sufficient
quantities, in the long term will have
adverse consequences for sales,
revenue and profitability.
The control measures to ensure long-term availability of products are in
line with those taken to attract and retain members. Furthermore, we
actively manage opportunities for sourcing from contracted suppliers
alongside the sourcing from our members. By building permanent
relationships with clients, we are able to offer long-term perspectives to
both our members and to contracted suppliers.
Newcomers / start-upsThe risk of disruption of the
horticultural sector (sales market) as
a result of the activities of start-ups
using disruptive technological
innovations, causing stagnation in
supplies and/or sales of The
Greenery's products.
New developments and potential start-ups are monitored. In addition,
The Greenery examines opportunities to incorporate new technologies
in the chain.
Loss of clientsThe risk that the client focus in terms
of price, quantity and/or quality does
not sufficiently respond to client
wishes and requirements, resulting in
the loss of buyers and revenue.
In order to ensure that every client receives the right amount and type
of attention, the decision was made to employ a differentiated approach
to ensure focused client treatment on the basis of revenue, revenue
potential and size. Again, the reorganisation efforts focused on ensuring
optimal service for clients. At the beginning of 2016, a new
organisational structure was implemented with the aim of providing
optimal services for the various client groups. This new structure is
regularly reviewed and improvements are made where necessary.
52 2017 Annual Report of The Greenery B.V.
Strategic and operational risks (continued)
Risks Control measures
Dependence on automationThe risk of failure and disruption of
the system, potentially resulting in
loss of data and production delays.
The advancing automation of operational processes has resulted in an
increasing dependence on these systems, which means any disruption
will have a greater impact. The company has located its server park with
a specialised external party, and made specific agreements with that
party on system availability. Communication lines are duplicated and
fall-back scenarios are available where possible. Employees are trained
in the correct use of the systems.
ConcentrationThe progressive concentration on
both the supply and demand sides
poses a risk for The Greenery, as this
has a negative impact on its
negotiating position.
The Greenery is open to partnerships that can strengthen its position
and is actively examining possibilities to take steps in that direction. The
company is also developing strategic initiatives to promote growth.
Qualitative and quantitative stafflevelsTo ensure effective business
operations, The Greenery depends on
staff of the right quality and in the
right numbers.
High-quality recruitment and selection and an effective training and
assessment system are in place to ensure staffing levels remain up to
standard. Initiatives aimed at promoting long-term employability help
employees stay fit and productive for longer. In addition, The Greenery
also monitors working conditions to ensure maximum safety in the work
environment.
ComplianceViolation of laws and standards in the
area of crop protection agents and
food safety, but also in the area of
honest and ethical business practices,
forms a key risk for the company. This
is further complicated by the fact that
The Greenery is active in various
countries.
To prevent such violations, a process is in place that begins by ensuring
that all players in the chain are properly informed about the applicable
norms and regulations. Next, the quality assurance department
performs random tests to determine the extent to which the prescribed
standards are met. This involves close collaboration with clients and
reputable testing institutions or independent certifiers. Employees and
suppliers are trained in appropriate conduct and their compliance is
tested. The tracking-and-tracing system enables the company to
respond as soon as any irregularity is identified in the area of crop
protection or food safety, so as to limit the consequences as much as
possible.
CostsThe success of The Greenery depends
on the degree to which it is able to
operate at market-compatible costs.
This means that excessively high
costs form a risk.
In order to monitor the market conformity of costs, tariffs charged are
tested externally where possible. Indications that the costs are excessive
are investigated and, where necessary, the cost structure is adjusted.
532017 Annual Report of The Greenery B.V.
Financial risksThe key financial risks to which The Greenery is
exposed are market risk, liquidity risk and credit risk.
The market risk can be divided further into price risk,
interest rate risk and currency risk. Exposure to these
financial risks is subject to continuous and close
internal monitoring. To manage these risks, The
Greenery uses financial derivatives and other
instruments. Derivative are used only to hedge interest
rate and currency risks. The company does not take
any speculative positions.
Risks Control measures
Price riskThe Greenery runs a price risk on its
economic inventory. In addition, the
company trades in perishable
products whose value decreases over
time.
The Greenery has a well-designed ERP system for the effective management of all
goods flows by a team of Supply Chain staff members. They monitor stock positions
so as to ensure the most efficient and effective dispatch of goods from growers to
customers. This provides maximum safeguards to secure the economic value of
inventories.
Interest rate riskThe variation in interest rates has an
impact on the (direct) result.
The Greenery's interest rate policy is aimed at limiting the risk of interest costs rising
as a result of rising market interest rates. The current financing arrangement
assumes a floor of 0% as the reference interest rate. As long as the market interest
rate remains negative, The Greenery does not hedge any risks but as soon as it turns
positive the company will use an interest rate derivative to hedge the risk.
Currency riskThe Greenery runs the risk of
currency fluctuations with regard to
its purchasing and sales activities
abroad.
Currency risks associated with purchasing and sales activities in foreign currencies
are hedged using forward exchange transactions. The currency risk associated with
long-term commercial contracts is hedged at the moment the contract is signed,
where possible. In practice, currency risks are not always fully hedged due to
changes in delivery dates and volumes relative to the scheduled arrangements.
Liquidity riskThere is a risk that The Greenery
does not have access to the required
liquidity when needed.
The company aims to limit the liquidity risk by guaranteeing adequate availability of
an accounts receivable financing facility and a revolving credit facility with the
banking consortium of Deutsche Bank and Rabobank. This is conditional however
upon compliance with the financial obligations laid down in the documentation
accompanying the financing arrangement, which was able to meet all financing
needs in 2017. The Treasury department periodically determines the availability of
sufficient liquid assets in the medium and long term.
Credit riskThe Greenery runs a credit risk when
a counterparty fails to meet its
obligations with regard to a financial
instrument or a contract with a
buyer, causing financial loss. The
Greenery is also exposed to credit
risk in connection with its business
activities (primarily trade
receivables) and in connection with
its financing activities, including
currency transactions and other
financial instruments.
Where possible, trade receivables are placed with a credit insurer. For uninsurable
trade receivables, we apply internal limits which are strictly monitored. The Greenery
also provides harvest advances on a limited scale and in exceptional cases, which are
paid back through the delivery of products. The concentration risk is limited as we
work with many different buyers. Since The Greenery uses supply chain finance
programmes for its major buyers, the concentration risk as a result of significant
customer receivables is less prevalent in this segment.
On the reporting date, the maximum exposure to credit risk amounts to the book
value of the receivables and cash and cash equivalents, as indicated in the respective
notes. The Greenery considers that the credit risk is low because a significant part of
its trade receivables are insured. The credit balances held at banks are all credit
balances at reputable banks. Receivables as a result of harvest advances involve a
higher risk, as these are dependent on weather and market conditions.
54 2017 Annual Report of The Greenery B.V.
RISKS THAT MATERIALISED IN 2017
In 2017, the following risks materialised:
1. Demand for sustainability: There is increasing
demand among retail customers for products with
specific sustainability certificates. To meet that
demand, in 2017 The greenery devoted a great
deal of attention to PlanetProof (formerly
'Milieukeur') certification of growers' supplies.
2. Qualitative and quantitative staff levels: improved
economic conditions have increased the pressure
on the labour market. As a result, The Greenery
has had to put in a greater effort than in previous
years to maintain the desired qualitative and
quantitative staff levels.
3. Currency risk: due to fluctuations in volume and
price in sales contracts it is not always possible to
make a reliable estimate of currency risks in
advance, and hedge them accordingly. As a result,
currency risk hedges on some contracts may be
incomplete, both in the sense of under and over-
hedging.
EMBEDDING OF RISK MANAGEMENT INTHE ORGANISATION
The Greenery completed the process of identifying
critical success factors in relation to its core processes.
The success factors and the associated risk
management measures have since been assigned to
the relevant line managers. Operational risk
management is focused on the management of the
quality of core processes, in such a way that the quality
requirements for products/services are achieved.
Line management is therefore co-responsible for
implementation of the risk management policy, and
renders account to the General Management on this
on a regular basis. Risk management is an integral part
of the regular reporting cycle and integrated into the
planning and control process.
The General Management reports on and renders
account for the design and operation of the risk
management framework to the Supervisory Board
after preliminary discussion in the Audit Committee.
To support both the General Management and the
Audit Committee in their efforts to assure the risk
management framework, an internal auditor was
appointed at the end of 2016 who is responsible for
ensuring proper, timely and high-quality audit
reporting to the General Management and the Audit
Committee in response to the audits that have been
performed, and for issuing advice on possible
measures to improve the risk management framework.
IMPROVEMENTS TO THE RISKMANAGEMENT FRAMEWORK
In 2018, The Greenery will further strengthen the
planned level of assurance and monitoring of
operational risks by demonstrating that it is in control.
Through the implementation of its audit plan, Internal
Audit monitors the effective operation of the internal
controls. In addition, controls that relate to the Tax
Control Framework will be drawn up by the Finance
department as a separate measure.
552017 Annual Report of The Greenery B.V.
RESPONSIBILITY STATEMENT
The General Management of The Greenery B.V. bears
final responsibility for controlling the risks associated
with the business objectives and the reliability of
external financial reporting. The General Management
also bears final responsibility for assessment of the
effectiveness of the control measures targeting those
risks.
Despite the embedded risk management and control
measures, there is no absolute certainty that errors,
losses, fraud or unlawful actions will be prevented.
Based on its review of the operation of internal
management and control measures of the company,
the General Management is of the opinion that those
measures, as at the end of the reporting year, were
sufficiently effective and provide reasonable assurance
that:
• the General Management is informed in good time
about the extent to which the strategic, operational
and financial goals of the company are achieved,
and
• the financial reporting is free from material
misstatements.
The full set of procedures relating to the internal
control systems and the resulting findings,
recommendations and measures has been discussed
with the Audit Committee, the Supervisory Board and
the independent auditor.
The members of the General Management of The
Greenery B.V. hereby declare, in accordance with
Section 5:25c(2)(c) of the Financial Supervision Act,
that to the best of their knowledge, the financial
statements give a true and fair view of the assets,
liabilities, financial position and profit or loss of The
Greenery B.V. and the companies included in the
consolidation, and that the annual report gives a true
and fair view of the position on 31 December 2017,
developments during the financial year of The
Greenery B.V. and the companies included in the
consolidation and that the material risks with which
The Greenery B.V. is confronted are described in the
annual report.
Barendrecht, 5 April 2018
The Greenery B.V. General Management
Steven Martina (CEO)
Philip Limvers (CFO)
56 2017 Annual Report of The Greenery B.V.
572017 Annual Report of The Greenery B.V.
GOVERNANCE
Corporate governanceBASIC PRINCIPLES
The governance structure within Coforta/The
Greenery is of the 'hourglass' model, in which the
Management Board of the Cooperative and the
General Meeting of Members constitute the most
senior body within the Cooperative, and with the
General Management and a Supervisory Board for the
company. A two-tier board structure is in place. The
Greenery’s Articles of Association incorporate a
derogation from law regarding the Supervisory Board
appointments procedure for two-tier board companies
in that the Supervisory Board is appointed by
cooptation. A covenant has been concluded with the
Works Council containing agreements on the
composition of the Supervisory Board, the
recommendation rights of the Works Council and the
appointment of members of the Supervisory Board.
The company's two-tier structure includes a statutory
General Management and a Supervisory Board. At
year-end 2017, the General Management comprised
two members.
At year-end 2017, the Supervisory Board comprised
six members. These are the four members of the
Cooperative’s Management Board and two 'external'
members.
SHAREHOLDING STRUCTURE
All shares in the capital of The Greenery B.V. are held
by Coöperatie Coforta U.A. The management and
supervisory structure of the two legal entities is
represented in the figure on the next page.
MANAGEMENT BOARD OF THECOOPERATIVE
The General Meeting of Members appoints the
Cooperative’s Management Board, which had four
members at the close of 2017, all of whom were
members of the Cooperative. The composition of the
Management Board reflects the best possible mix of
representatives from the Cooperative’s membership
based on product groups. The Management Board is
responsible for serving the interests of the
Cooperative’s members and the business conducted
by the Cooperative through The Greenery and its
subsidiaries.
THE GREENERY B.V. GENERALMANAGEMENT
Under the Articles of Association, the General
Management, which at the end of 2017 comprised two
directors, is responsible for managing The Greenery.
This includes formulating strategy and policy as well
as defining and achieving The Greenery’s objectives.
The General Management is accountable to the
Supervisory Board and to the General Meeting.
Under the Articles of Association, the directors are
appointed by the Supervisory Board for a four-year
term. The Supervisory Board determines the
remuneration and other terms of employment for the
General Management members in accordance with the
remuneration policy approved by the General Meeting.
REMUNERATION POLICY FOR THEGENERAL MANAGEMENT
The purpose of the remuneration policy is to attract,
motivate and retain experienced and qualified
directors for the General Management. The
remuneration structure for the General Management
aims to ensure an optimal balance between the short-
term results of the company and its long-term
objectives.
The total remuneration for statutory General
Management members is comprised of the following
components:
• a fixed basic salary;
• variable remuneration for performance in the short
term (one year);
• variable remuneration for performance in the long
term (three years);
• a pension plan;
• a travel expenses allowance.
Basic salary
Once a year, on the Selection Committee's
recommendation, the Supervisory Board determines
whether and, if so, the extent to which the basic salary
is to de adapted, with due regard for, among other
things, market developments and the company's
results.
58 2017 Annual Report of The Greenery B.V.
Variable remuneration for the short term
Statutory General Management members qualify for
an annual bonus depending on the extent to which
they achieve pre-determined targets concerning the
operating result, revenue, strategy etc. These targets
are set by the Supervisory Board at the beginning of
the reporting year. This largely performance-related
annual bonus can add a maximum of 30% to the basic
salary of the member concerned.
Variable remuneration for the long term
The remuneration for statutory General Management
members' long-term performance is geared to the
achievement of the targets set out in the Strategic
Plan and value creation over a period of three years.
The long-term bonus can increase the basic salary by a
maximum of 30%.
Pension plan
The General Management takes part in a pension plan
approximately half of the costs of which are borne by
the employer.
Travel expenses allowance
The General Management members are entitled to a
fixed allowance to compensate for the travel expenses
they incur.
Gender split
The Greenery strives for a balanced gender split within
the General Management. However, currently there is
a gender imbalance. In case a general management
vacancy will occur in the future, we will explicitly and
actively search for female candidates.
SUPERVISORY BOARD OFTHE GREENERY B.V.
The Supervisory Board supervises the policy pursued
by the General Management as well as general
developments within The Greenery and its associated
businesses. In performing its tasks, the Supervisory
Board aims to promote the interests of the company
and its stakeholders.
The Greenery is subject to a statutory two-tier regime,
which means that the Supervisory Board has been
accorded the powers specified in Book 2, Title 5, Part 6
of the Dutch Civil Code, including the appointment of
the General Management and the approval of General
Management resolutions defined by law.
Furthermore, certain General Management resolutions
defined in the Articles of Association require prior
Supervisory Board approval.
Composition and appointment
At year-end 2017, the Supervisory Board comprised
six members, including the four members of the
Legal structure
51Footer
Coöperatie Coforta U.A.
Members
Members' meeting
Management Board
General Meeting
Supervisory Board
General Management
The Greenery B.V.
Full ownership
592017 Annual Report of The Greenery B.V.
Cooperative’s Management Board and two Supervisory
Board members who are not members of the
Cooperative. The chair of the Supervisory Board is Mr
B.J. Feijtel; Mr G.W. Pronk is its vice-chair.
Supervisory Board committees
The Supervisory Board has established an Audit
Committee and a Selection Committee from among its
members.
Audit CommitteeAt year-end 2017, the members of the Audit
Committee were Messrs E.D. Drok (chair), G.W. Pronk
and T. van Noord. The Audit Committee is responsible
for advising and helping the Supervisory Board prepare
decisions on financial matters.
Selection CommitteeAt year-end 2017, the members of the Selection
Committee were Ms A.E. Ter Laak (chair) and Messrs
G.W. Pronk and B.J. Feijtel. The Selection Committee is
responsible for advising and helping the Supervisory
Board prepare decisions concerning the selection,
appointment and reappointment of directors and
Supervisory Board members.
GENERAL MEETING OFTHE GREENERY B.V.
In the company’s General Meeting, matters handled
include the adoption of The Greenery’s financial
statements and granting The Greenery’s management
discharge from liability in respect of the performance
of its duties. Furthermore, General Meeting approval is
required for certain resolutions adopted by The
Greenery’s General Management as described in the
Articles of Association, such as the adoption of the
strategic business plan and budget.
SHARE CAPITAL
The company has issued Class A shares and
cumulative Class B preference shares. All Class A and B
shares are held by the Cooperative, which means that
the Cooperative has complete control at the General
Meeting of Shareholders. During a General Meeting of
Shareholders, the Management Board of the
Cooperative exercises the voting rights attached to the
shares on behalf of the Cooperative.
60 2017 Annual Report of The Greenery B.V.
Report of theSupervisory BoardSUPERVISION AND ADVICE
2017 saw further efforts towards gearing The
Greenery to future challenges, including a new
strategy entitled 'Growing Together', which was
formulated with input from all staff members. The new
strategy sets the course towards success in the years
ahead.
SUPERVISORY BOARD ACTIVITIES
The Supervisory Board met ten times during the
reporting year, of which three times in the form of a
conference call. Meetings were held both in the
presence and in the absence of the General
Management. A number of meetings were held at the
offices of subsidiaries to enable the managing boards
and management of the subsidiary concerned to
inform the Supervisory Board about their activities,
plans and results.
Subjects on the Supervisory Board agenda included
the 'Growing Together' strategy for 2017-2022, the
translation of that strategy into specific OGSMs
(Objectives, Goals, Strategies and Measures), projects
arising from the strategy (investments and partnership
opportunities) and the Supervisory Board's
composition. Other important topics included the
2016 financial statements, the appointment of a new
auditor, developments in the result and the budget for
2018. In 2017, the Supervisory Board discussed its
composition in further detail and decided to reduce its
members to six, four of whom are also members of the
Management Board of Coöperatie Coforta. Under the
guidance of an independent party, the Supervisory
Board evaluated its own performance and held a
team-building session. In addition, the Supervisory
Board regulations and member profile were evaluated,
in response to changed working methods within the
organisation.
The chair and vice-chair represented the Supervisory
Board in meetings with the Works Council. Supervisory
Board members also maintained contacts with
members of the General Management, as well as with
the Works Council and management, outside official
meetings.
THE AUDIT COMMITTEE'S ACTIVITIES
The Audit Committee met four times in 2017 to
prepare for resolutions by the Supervisory Board on
the selection of a new auditor for the Group, the 2016
Annual Report and financial statements, the 2018
budget and other matters. Following the appointment
by the Supervisory Board of KPMG Accountants N.V. as
the new external auditor, the audit for 2017 was
prepared and the management letter was discussed
later in the year. In addition, the internal auditor
submitted the 2018 Audit Plan and the results (and
follow-up) of the internal audits performed in 2017
were discussed. Other important subjects for the Audit
Committee were IT security and risk management.
All Audit Committee meetings were attended by the
CFO and the internal auditor. Due to the change of
audit firm, not all the meetings were attended by the
external auditor.
THE SELECTION COMMITTEE'SACTIVITIES
The Selection Committee met five times during the
reporting year. The Committee's work on determining
the desired composition of the Supervisory Board
eventually resulted in a reduction in the number of
members. Other topics included the salary and bonus
system, succession planning and the talent promotion
programme. In addition, the Selection Committee
prepared the evaluation of the Supervisory Board and
its team-building session. The evaluation also covered
the division of tasks within the Supervisory Board,
which prompted a number of changes in the
composition of its various committees.
CHANGES IN THE COMPOSITION OFTHE SUPERVISORY BOARD
On 10 February 2017, Ms Peeters-Feskens joined the
Supervisory Board. Owing to his resignation as
Management Board member at Coöperatie Coforta
upon reaching the end of his last term of office, Mr
Hop resigned as a member of the Supervisory Board of
The Greenery on 28 March 2017. The Supervisory
Board would like to express its gratitude to Mr Hop for
the considerable involvement and dedication with
which he has served The Greenery.
612017 Annual Report of The Greenery B.V.
Effective 1 April, Mr Van Noord resigned from the
Selection Committee and Ms Ter Laak was appointed
chair as of the same date.
For further details, please see the biographies on page
66.
ANNUAL REPORT
The Supervisory Board has read The Greenery’s 2017
Annual Report, including the financial statements
consisting of the balance sheet as at 31 December
2017, the income statement for the year then ended
and the relevant notes. The financial statements,
audited by KPMG Accountants N.V., who issued an
unqualified audit opinion, were initially discussed by
the Supervisory Board’s Audit Committee and
subsequently by the full Supervisory Board along with
the General Management and the auditor. With due
observance of the report on the financial statements
drawn up by KPMG Accountants N.V. and the
unqualified audit opinion issued, by way of approval
the Supervisory Board members signed the financial
statements. The Supervisory Board also approved the
profit appropriation proposal presented by the General
Management.
The financial statements were submitted to the
General Meeting of Shareholders for consideration
and adoption. The Supervisory Board proposes that
the General Meeting adopt the financial statements,
agree to the intended profit appropriation and grant
the General Management discharge from liability in
respect of the policy conducted over the financial year
as well as the Supervisory Board for the supervision it
has carried out in this regard.
WORD OF THANKS
The Supervisory Board would like to thank General
Management, the management and all The Greenery’s
employees for their commitment and efforts
throughout the past review year.
Barendrecht, 5 April 2018
The Greenery B.V. Supervisory Board
62 2017 Annual Report of The Greenery B.V.
632017 Annual Report of The Greenery B.V.
Cabbage cultivation at Fa. N.A. van Langen in Heerhugowaard
64 2017 Annual Report of The Greenery B.V.64 Footer
COMPOSITIONOF GOVERNING BODIES
THE GREENERY B.V. GENERAL MANAGEMENT
Steven (S.A.) Martina (b. 1976)
Position: Chief Executive Officer (CEO)
Appointed on: 23 February 2016
Background: Economist and lawyer with extensive
experience in a range of commercial roles within
The Greenery.
Responsibilities: Sales, Sourcing, Supply Chain
Management & Logistics, Human Resources,
Marketing & Communication, Coöperatie Affairs,
CMO & Grants, Quality & Environment,
Programme Management, Strategy, Business
Development, Digitisation & Big Data,
Sustainability, Innovation
Ancillary positions: Non-executive Board Member
of Federatie Nederlandse Levensmiddelen
Industrie (FNLI), Member of the Jury for the Agnites
Vrolikprijs, Utrecht University
Philip (P.R.) Limvers (b. 1964)
Position: Chief Financial Officer (CFO)
Appointed on: 09 February 2015
Background: Business economist with over 25
years of experience in managerial positions at
companies in the Netherlands and abroad,
including Randstad, ICTS and G4S.
Responsibilities: Management Control and
Accounting, Financing and Cash Management,
Internal and External Reporting, Planning &
Control, ICT & Information Management, Legal
Affairs, Tax Affairs, Internal Audit, Real Estate &
Internal Support Services
652017 Annual Report of The Greenery B.V.
THE GREENERY B.V. SUPERVISORY BOARDComposition as at 1 March 2018
Bas (B.J.) Feijtel (b. 1967)
Position: Chair of the
Supervisory Board and
member of the Selection
Committee of The Greenery
B.V., and member of the
Management Board of
Coöperatie Coforta U.A.
Appointed to the Supervisory
Board on:
11 February 2009
Appointed as chair on:
17 December 2015
Profession: Fruit grower, 33
ha of pears
Background information: Mr
Feijtel has been active in
provincial politics and at
ZLTO. He has performed
supervisory roles at various
organisations, including
Rabobank, and currently at a
housing corporation. Bas
Feijtel is an agricultural
economist and owns a
modern fruit growing
business that specialises in
the cultivation and cold
storage of pears.
Gerard (G.W.) Pronk (b.
1960)
Position: Vice-chair of the
Supervisory Board and
member of the Audit and
Selection Committees of The
Greenery B.V., and chair of
the Management Board of
Coöperatie Coforta U.A.
Appointed to the Supervisory
Board on:
16 December 2014
Appointed as vice-chair on:
01 April 2015
Profession: Fruit grower, 22
ha of pears
Background information: Mr
Pronk has vast experience in
administrative positions. He
chaired the Product Advisory
Committee (PAC), served as
the local and principal
director of the Dutch Fruit
Growers' Organisation and
as an administrator within
the North Sea Pears alliance.
Mr Pronk grows, stores, sorts
and processes pears at his
own company and for 20
other growers in the same
region.
Theo (T.W.) van Noord (b.
1972)
Position: Member of the
Supervisory Board and the
Audit Committee of The
Greenery B.V., and vice-chair
of the Management Board of
Coöperatie Coforta U.A.
Appointed to the Supervisory
Board on:
28 March 2012
Profession: Tomato grower,
14 ha of greenhouses, partly
with artificial lighting. Also
owns a packing station.
Background information: Mr
Van Noord has vast
administrative experience.
He served as a Board
member of Trospartners
growers' association. In
addition to running his
tomato growing business, Mr
Van Noord runs a business
called Noordhuys Packing,
which provides retail packing
services for all its own
tomatoes and those grown
by third parties. Noordhuys
Packing also serves as an SSL
location that collaborates
closely with The Greenery.
66 2017 Annual Report of The Greenery B.V.
Eric (E.D.) Drok (b. 1960)
Position: Member of the
Supervisory Board and chair
of the Audit Committee of
The Greenery B.V.
Appointed to the Supervisory
Board on:
04 November 2015
Profession: Supervisory
Board member, non-
executive director and
corporate advisor in the
financial and retail sectors.
Background: Business
economist and corporate
lawyer with over 25 years'
experience in executive
positions in the Dutch and
international financial
sectors.
Nancy (N.) Peeters (b. 1975)
Position: Member of the
Supervisory Board of The
Greenery B.V. and member of
the Management Board of
Coöperatie Coforta U.A.
Appointed to the Supervisory
Board on:
18 February 2017
Profession: Soft-fruit grower,
2 ha of strawberries
Background information: Ms
Peeters gained experience as
a member of the Rabobank
Tilburg Members' Council
and in various roles in
associations. She and her
husband Jeroen have been
running De Goeije Kroon, a
strawberry nursery, since
2005, where they cultivate
strawberries in greenhouses
and as tray plants.
Anouk (A.E.) Ter Laak (b.
1966)
Position: Member of the
Supervisory Board and chair
of the Selection Committee
of The Greenery B.V.
Appointed to the Supervisory
Board on:
28 July 2016
Profession: CEO of SVZ
International, and member
of the Group Executive Board
of Royal Cosun, an agro-
industrial group with a
cooperative basis.
Background information: Ms
Ter Laak has over 25 years'
experience in various
strategic and management
roles in the Netherlands and
abroad in both the retail and
food service sectors.
672017 Annual Report of The Greenery B.V.
14 15Footer Footer
Gerard Pronk, Chairman of Coöperatie Coforta, and Steven Martina, CEO of The Greenery
2017 FINANCIAL STATEMENTSThe Greenery B.V.
68 2017 Annual Report of The Greenery B.V.
14 15Footer Footer
Gerard Pronk, Chairman of Coöperatie Coforta, and Steven Martina, CEO of The Greenery
2017 FINANCIAL STATEMENTSThe Greenery B.V.
692017 Annual Report of The Greenery B.V.
ContentsCONSOLIDATED FINANCIAL STATEMENTS 71
Consolidated balance sheet as at 31 December 2017 71
Consolidated income statement 2017 72
Consolidated statement of comprehensive income 2017 73
Consolidated cash flow statement 2017 74
GENERAL NOTES 75
Events after the balance sheet date 84
NOTES TO THE CONSOLIDATED BALANCE SHEET 85
NOTES TO THE CONSOLIDATED INCOME STATEMENT 97
COMPANY FINANCIAL STATEMENTS 100
Company balance sheet as at 31 December 2017 100
Company income statement 2017 101
NOTES TO THE COMPANY FINANCIAL STATEMENTS 102
Employees 108
Related-party transactions 108
List of subsidiaries and associates 109
OTHER INFORMATION 110
Articles of Association provisions governing profit appropriation 110
GLOSSARY OF TERMS AND ABBREVIATIONS 115
70 2017 Annual Report of The Greenery B.V.
CONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2017(before profit appropriation)
in thousands of euros Note 2017 2016
Assets
Fixed assetsIntangible fixed assets 13 13,551 15,738
Tangible fixed assets 14 125,912 145,126
Financial fixed assets 15 52,132 52,885
191,595 213,749Current assetsInventories 16 11,244 12,440
Trade and other receivables1 17 79,037 84,976
Cash and cash equivalents 18,574 15,779
108,855 113,195
Total assets 300,450 326,944
Liabilities
Group equity 19
Shareholders' equity 106,336 95,177
Minority interest (174) (129)
106,162 95,048Provisions and liablitiiesProvisions 20 31,088 32,876
Non-current liabilities1 21 58,801 66,413
Current liabilities and accruals1 22 104,399 132,607
194,288 231,896
Total liabilities 300,450 326,944
1 The 2016 figures are restated for comparison purposes only; these are explained under note 5
712017 Annual Report of The Greenery B.V.
CONSOLIDATED INCOME STATEMENT 2017
in thousands of euros Note 2017 2016
Net revenue1 25 1,003,152 1,024,895
Cost of sales1 808,479 827,795
Cost of outsourced work and other external costs 42,772 44,091
Wages and salaries 50,463 51,204
Social security charges 8,009 7,805
Pension costs 6,712 6,376
Amortisation and depreciation on (in)tangible fixed assets 26 15,566 14,119
Impairment/reversal of impairment of (in)tangible fixed assets 27 (320) 1,296
Other operating expenses 28 70,109 69,642
Total operating expenses 1,001,790 1,022,328
Operating profit 1,362 2,567
Interest income and similar income 29 344 144
Interest expenses and similar expenses 29 (4,275) (4,150)
Result before tax (2,569) (1,439)
Tax on result 30 3,663 (550)
Share of result of participating interests 19 11,325 11,000
Result after tax 12,419 9,011
Minority interests 64 (15)
Net result 12,483 8,996
1 The 2016 figures are restated for comparison purposes only; these are explained under note 5
72 2017 Annual Report of The Greenery B.V.
CONSOLIDATED STATEMENT OFCOMPREHENSIVE INCOME 2017
in thousands of euros Note 2017 2016
Net result 12,483 8,996
Movement in UK pension provision - (222)
Revaluation of property on sale - (1,715)
Translation differences on foreign operations 19 (1,267) 1,967
Other movements 19 (57) (813)
Total of items recognised directly in shareholders'equity (1,324) (783)
Total result of the legal entity 11,159 8,213
All movements are recognised directly in the equity of the legal entity as part of group equity.
732017 Annual Report of The Greenery B.V.
CONSOLIDATED CASH FLOW STATEMENT 2017According to the indirect method
in thousands of euros Note 2017 2016
Operating activitiesOperating result 1,362 2,567
Depreciation/amortisation 26 15,566 14,119
Impairment on (in)tangible fixed assets 27 (320) 1,296
Release of property, plant and equipment related EU grants (2,086) (2,181)
Results on sale of group companies 3 1,526
Book results on sales of fixed assets 1,824 (106)
Changes in provisions1 (4,604) (8,179)
Movement in stocks 1,102 (391)
Movement in trade receivables 1,640 10,796
Movement in other receivables1 13,719 (10,608)
Movement in trade creditors (16,602) 3,998
Movement in other liabilities (8,184) (4,894)
Operational cash flow 3,420 7,943Interest (paid)/received 29 (1,733) (2,122)
Corporate income tax (paid)/received 30 3,992 (3,717)
Dividend received 4,322 6,014
Cash flow from operating activities 10,001 8,118
Investing activitiesInvestments in intangible fixed assets 13 (1,152) (1,131)
Investments in tangible fixed assets 14 (7,122) (19,160)
Disposal of tangible fixed assets 14 8,226 9,120
Sales of group companies - 1,000
Acquisition of group companies (7) -
Repayment of borrowings 400 1,531
Loans granted (121) (266)
Cash flow from investing activities 224 (8,906)
Cash flow from operating and investing activities 10,225 (788)
Financing activitiesIncrease in bank loans and other loans 21 1,006 12,298
Repayment of borrowings 21 (2,716) (1,918)
Increase of borrowings from members 21 3,598 3,814
Repayment of borrowings from members 21 (8,849) (10,169)
Additions product funds 21 1,282 1,360
Withdrawals product funds 21 (1,609) (1,621)
Cash flow from financing activities (7,288) 3,764
Net cash flow 2,937 2,976Exchange and translation differences in cash and cash equivalents (142) (379)
Changes in cash and cash equivalents 2,795 2,597
Cash and cash equivalentsBalance as at 1 January 15,779 13,182
Movements 2,795 2,597
Balance as at 31 December 18,574 15,779
1 The 2016 figures are restated for comparison purposes only; these are explained under note 5
74 2017 Annual Report of The Greenery B.V.
General notesThe Greenery B.V. ('the company') was incorporated on 31 May 1996, hasits registered office in The Hague and is listed in the Trade Register of theChamber of Commerce in Rotterdam under number 16086757. CoöperatieCoforta U.A. ('the Cooperative'), having its registered office in The Hague,holds 100% of the shares in the company. The actual address of both thecompany and the Cooperative is Spoorwegemplacement 1 in Barendrecht.
The financial data of the company are included in the consolidated financial statements of Coöperatie Coforta
U.A, which are available at the Cooperative's office.
These financial statements relate to the year ended 31 December 2017. The amounts included in the notes are in
thousands of euros, unless stated otherwise.
1 Principal activitiesThe Greenery is a leading, international company
engaged in obtaining a full assortment of fruit,
vegetables and mushrooms from around the world and
supplying these fresh to its clients every day, all year
round. Its clients are mainly wholesalers and
supermarket chains in Europe. The company also
supplies caterers and industry. The Greenery B.V. has
subsidiaries and associates in 11 countries and its
policy and approach focus on market orientation, food
safety, sustainability, innovation and logistics
efficiency.
2 ContinuityThese financial statements have been prepared on a
going concern basis.
Developments in 2017The new strategy, 'Growing Together', was approved in
2017 and is intended to achieve profitable revenue
growth, both organically and in the form of third-party
partnerships.
The initiatives undertaken to make membership of
Coforta more attractive resulted in introducing a
profit-related variable interest rate on the mandatory
members' loans in addition to reducing the term of the
mandatory members' loan from eight to four years.
A new three-year financing agreement was concluded
with Deutsche Bank and Rabobank at the end of 2016.
The financing agreement consists of a EUR 40 million
accounts receivable financing facility, a EUR 20 million
credit facility and a EUR 10 million guarantee facility.
The new financing agreement creates a solid financial
basis not only because it meets The Greenery's current
financing requirements but also enables the company
to realise its growth plans. The Greenery fulfils the
conditions of the loan agreement covenant.
Outlook for 2018 and beyondThe roll-out of the new strategy will be a key theme in
2018. To streamline these initiatives, a programme
director has been appointed who will support the
various project teams, in conjunction with the General
Management, in designing and implementing the
plans. A number of projects aimed at further
improving profitability will also be implemented.
The strategy is based on growing the business by
putting the client centre stage. In 2018 we will
continue initiatives to optimise collaboration between
the various business units so as to safeguard optimum
customer service.
One of the plans includes setting up an investment
fund to achieve sustainable economies of scale in the
greenhouse horticultural sector by making available
risk-bearing capital. The fund is expected to be
launched by the end of 2018. However, The Greenery
will depend on external financiers to ensure the fund
will have sufficient financial scope and be able to
operate independently.
Another major challenge in 2018 is the finalisation of
investments in the logistical network, which will be
marked by the realisation of the final phase in new
construction for the DC in Barendrecht. These
investments will reduce the number of distribution
centres to three by early 2019, compared with the five
centres currently in use (and eight in 2014). This will
involve non-recurring costs, since the company's
752017 Annual Report of The Greenery B.V.
operations will have to continue as normal during
construction. 2018 will also see projects aimed at
expanding the company's commercial strength and
coherence, strictly within the context of the new
strategy. We expect to be able to reap the fruits of
these efforts from the end of 2017.
On the advice of The Greenery's General Management,
the Management Board of Coöperatie Coforta decided
to postpone CMO grant applications yet again in 2018
given that aspects of the new national strategy were
still unclear. The lack of CMO funds has been taken
into consideration in the 2018 budget. Whether a new
operational plan will be prepared and submitted for
2019 and subsequent years will be reviewed in 2018.
Management has prepared a liquidity forecast to
assess whether the company will be able to meet its
commitments in and after 2018. To that end, it has
prepared assumptions regarding volume and price
developments, operating expenses, working capital
and potential risks. These assumptions are updated on
an ongoing basis. Based on the outlook for 2018,
Management believes that the covenants of the loan
agreement will be fulfilled in 2018.
Based on the liquidity forecast, Management expects
to have sufficient financial resources to continue to
meet its obligations. Hence, it has applied the 'going
concern' assumption in preparing the financial
statements.
3 DisposalsTwo non-active companies were dissolved in the
course of the reporting year.
4 Basis of consolidation
Consolidation methodThe items in the consolidated financial statements
have been prepared in accordance with the group's
uniform accounting policies. The mutual
shareholdings, liabilities, receivables and transactions
have been eliminated from the consolidated financial
statements. The results on mutual transactions
between group companies have also been eliminated.
In a transaction in which the selling group company is
not wholly owned by the equity holder, elimination
from the group net income is allocated pro rata to the
minority interest based on the share of the minority
interest in the selling company. The group companies
are fully consolidated, with minority interests
disclosed separately in group equity. If the losses
attributable to the minority interest exceed the
minority interest in shareholders' equity of the
consolidated company, the difference as well as any
further losses are charged in full to the majority
shareholder, unless and to the extent that the majority
shareholding has an obligation and is in a position to
absorb the losses. Minority shares are deducted from
group net income and stated separately as the final
item in the consolidated income statement.
Consolidation baseThe consolidated financial statements comprise the
financial statements of the company and its group
subsidiaries, other group companies and other legal
entities over which dominant control is exercised or
over which central leadership exists.
Subsidiaries are participating interests in which the
company (and/or one or more of its subsidiaries) can
exercise more than half of the voting rights at the
General Meeting, or can appoint or dismiss more than
half of the General Management members or
Supervisory Board members.
Group companies are participating interests in which
the company has a majority interest, or over which it
can exercise controlling influence in another manner.
To determine whether controlling influence exists,
financial instruments containing potential voting
rights that can be exercised such that the company will
have more or less influence are taken into account.
Newly acquired associates are included in the
consolidation from the time at which controlling
influence can be exercised. Divested associates are
included in the consolidation until the time at which
such influence has ended.
For a list of the consolidated group companies, please
refer to the List of subsidiaries and associates(see
page 109).
5 Basis of preparation of thefinancial statements
The consolidated financial statements of the company
form part of the financial statements drawn up
pursuant to the company's Articles of Association and
have been prepared in accordance with the statutory
provisions of Part 9 of Book 2 of the Dutch Civil Code.
The financial data of the company are included in the
consolidated financial statements and, in accordance
with Section 402 of Book 2 of the Dutch Civil Code, the
company income statement has therefore been drawn
up in an abridged form. It only states the share in the
results of associates after tax and other income after
tax.
76 2017 Annual Report of The Greenery B.V.
The figures for 2016 have been reclassified to enable
comparison with the 2017 figures. The reclassified
figures are as follows:
• Product funds amounting to EUR 5.5 million at
year-end 2016 are stated under non-current
liabilities and are not recognised as a separate item.
• The corporate income tax stated under current
assets amounting to EUR 235,000 at year-end
2016 had been previously been stated on a net
basis together with turnover tax under current
liabilities. On the company balance sheet, this
reclassification amounts to EUR 6,1 million.
• The provision for anniversaries amounting to EUR
2.0 million at year-end 2016 is stated under other
provisions instead of under the pension provision.
• At year-end 2016 a provision amounting to EUR
13.6 million was formed in the company financial
statements for associates with a negative net asset
value, which had previously been stated as a
negative amount under the item associates under
financial fixed assets.
• The long-term component of the operating
contributions to growers amounting to EUR 9.2
million has been reclassified from other current
liabilities to accruals under long-term liabilities in
the comparative figures.
• The commission charged on purchases amounting
to EUR 4.8 million has been reclassified from net
revenue to cost of sales in the comparative figures.
• The movement in provisions in the cash flow
statement comprises a reclassification of EUR 2.1
million that had previously been recognised under
movement in working capital.
An asset is recognised in the balance sheet when it is
probable that the future economic benefits will flow to
the entity and the asset has a cost or value that can be
measured reliably. Assets that do not meet this
accounting definition are not recognised in the
balance sheet but are classified as off-balance sheet
assets.
A liability is recognised in the balance sheet when it is
probable that an outflow of resources embodying
economic benefits will result from the settlement of a
present obligation and the amount at which the
settlement will take place can be measured reliably.
Liabilities are also understood to include provisions.
Liabilities that do not meet this accounting definition
are not recognised in the balance sheet but are
recognised as off-balance sheet liabilities.
An asset or liability included in the balance sheet
remains on the balance sheet if a transaction does not
lead to a material change in the economic reality of
the asset or the liability. Nor do such transactions lead
to the recognition of results. The assessment of
whether there is a material change in the economic
reality is based on the economic benefits and risks that
are likely to occur in practice, and not on the benefits
and risks that are not reasonably expected to occur.
An asset or liability is derecognised if a transaction
leads to all or almost all rights to the economic
benefits and all or almost all risks relating to the asset
or the liability being transferred to a third party. The
results of the transaction are in that case taken
directly to the income statement, with due regard for
any provisions that should be formed in connection
with the transaction.
If the representation of the economic reality leads to
the inclusion of assets of which the legal entity is not
the legal owner, this fact is stated.
Income is recognised in the income statement when
an increase in the economic potential, related to an
increase in an asset or a decrease in a liability has
taken place, the amount of which can be measured
reliably. Expenditure is recognised when a decrease in
the economic potential, related to a decrease in an
asset or an increase in a liability has taken place, the
amount of which can be measured reliably.
Use of estimatesIn line with generally accepted accounting principles,
the preparation of the financial statements requires
that Management forms opinions and makes
estimates and assumptions that have an impact on the
amounts stated in the financial statements. The actual
figures may differ from these estimates. The estimates
and the underlying assumptions are regularly
reviewed. Revisions of estimates are recognised in the
period in which the estimate was revised if the revision
only has consequences for that period, and in future
periods if the revision also has consequences for
future periods
Impairment of assetsA regular review is carried out (at least at each balance
sheet date) to determine whether there are any
indications that the book value of the qualifying assets
is subject to impairment losses. If there are any such
indications, an estimate is made of the realisable value
of the asset. The realisable value is the higher of the
value in use and the net realisable value. If it is not
possible to estimate the realisable value of an
individual asset, the realisable value is measured of the
cash-generating unit to which the asset belongs.
772017 Annual Report of The Greenery B.V.
If the book value is higher than the realisable value, an
impairment loss is taken to the result. If a cash-
generating unit has an impairment loss, the loss is
initially allocated to the goodwill that is allocated to
the cash-generating unit. Any residual loss is allocated
to the unit's other assets in proportion to their book
values.
Furthermore, a review is carried out at every balance
sheet date to determine whether there is any
indication that an impairment loss recognised in prior
years has decreased. If there is any such indication, the
realisable value of the particular asset (or cash-
generating unit) is estimated.
An impairment loss recognised earlier is reversed only
if the estimates used to determine the realisable value
have changed since the recognition of the latest
impairment loss. In that case the book value of the
asset (or cash-generating unit) is increased to the
estimated realisable value, but no higher than the
book value that would have been determined (after
depreciation) if in prior years no impairment for the
asset (or cash-generating unit) had been recognised.
A goodwill impairment loss is not reversed in a
subsequent period.
6 Changes in accounting policies andchanges in accounting estimates
There were no changes in accounting policies nor in
accounting estimates in the 2017 financial year.
7 Financial instrumentsFinancial instruments refer to both primary financial
instruments, such as receivables and liabilities, and to
financial derivatives. Please refer to the treatment per
balance sheet item for the accounting policies relating
to the primary financial instruments.
The company's policy is aimed at reducing the risks to
an acceptable level, where possible. This includes
managing credit risks (mainly debtor risks), liquidity
risks and cash flow risks (foreign exchange and interest
rate risk). The credit risk is largely insured with a credit
insurer. Foreign exchange positions are largely covered
by forward exchange transactions.
Hedging instruments at costFinancial instruments that serve to hedge risks and
whose underlying securities are not publicly listed, or
for which no hedge accounting is applied, are stated at
cost or market value, whichever is the lowest.
Netting of financial instrumentsA financial asset and a financial liability are netted if
the entity has a reliable legal instrument for settling
the financial asset and the financial liability on a net
basis and firmly intends to realise the asset and settle
the liability simultaneously.
In the event of a transfer of a financial asset that does
not qualify for elimination from the balance sheet, the
asset transferred and the associated liability are not
set off against each other.
8 Accounting policies for foreigncurrency translation
Receivables, liabilities and commitments in foreign
currencies are translated at the exchange rates
prevailing at the balance sheet date. The exchange
differences resulting from translation at the balance
sheet date are taken to the balance sheet and income
statement in the period in which they occur. This
excludes exchange differences on monetary items that
are included in a net investment in a foreign operation
(see below).
Foreign currency transactions in the reporting period
are recognised in the financial statements at the
exchange rate prevailing at the transaction date.
The assets and liabilities included in the net
investment in a foreign operation are translated to the
functional currency at the exchange rate prevailing at
the balance sheet date. The revenues and costs of
such foreign operations are translated to the
functional currency at the exchange rate prevailing on
the transaction date. Translation differences are
recognised in the currency translation differences
reserve in equity.
If a foreign activity is sold, wholly or in part, the
cumulative amount relating to the sale is transferred
from the currency translation differences reserve to
the general reserves.
9 Accounting policies for assets andliabilities
Intangible fixed assetsIntangible fixed assets are included in the balance
sheet when it is probable that the future benefits
embodied in the asset will accrue to the entity and the
costs of the asset can be measured reliably.
Intangible fixed assets are stated at the cost of
acquisition or production, less accumulated
amortisation and impairments.
78 2017 Annual Report of The Greenery B.V.
The subsequent expenditures for an intangible fixed
asset either purchased or self-produced are added to
the cost of acquisition or production if it is probable
that the expenditures will lead to an increase in the
expected future economic benefits, and the
expenditures and the allocation of the asset can be
reliably measured. If the capitalisation conditions have
not been met, the expenditures are recognised as
costs in the income statement.
The accounting policies relating to the determination
and recognition of impairments are included under
Impairments of fixed assets.
Goodwill is defined as the positive difference between
the acquisition price of the associates (including the
transactions costs relating directly to the acquisition)
and the group's interest in the net fair value of the
identifiable assets and liabilities of the associate
acquired, less the accumulated amortisation and
impairments. Goodwill generated internally is not
capitalised.
Capitalised positive goodwill is amortised according to
the straight line method over the estimated useful life,
which is 20 years.
In the event of the entire or partial sale of an associate,
the positive goodwill allocated to the part sold is
proportionally written down (if the event of capitalised
goodwill) and taken to the book result.
Intangible fixed assets other than goodwill, such as
licences, concessions and permits, are stated at
purchase price, less accumulated amortisation and
impairments. They are capitalised upon being taken
into use and amortised based on the expected useful
life (in most cases 20 years). Intangible fixed assets
relating to the purchase and implementation of
software are amortised over an expected useful life of
five years. An impairment analysis is carried out in the
event of any indications that could lead to possible
readjustment of the valuation. Prepayments on
intangible fixed assets are stated at acquisition or
production cost. Prepayments on intangible fixed
assets are not amortised.
Tangible fixed assetsTangible fixed assets are included in the balance sheet
if it is probable that the future performance units
related to the asset will be attributed to the entity and
the costs of the asset can be measured reliably.
Buildings and landThe depreciation of buildings is based on the expected
useful life of the building. Land is not depreciated. In
2016, the replacement value was changed to current
cost for the valuation of buildings and land.
A further refinement of RJ Statement 2 2017 'Current
Cost' offers the option of applying historical cost. Due
to this change in the rules, The Greenery has chosen to
state buildings and land at historical cost rather than
current cost. The book value at the end of the 2015
financial year is taken as the basis, and historical cost
is subsequently assumed.
This change in accounting policy has no impact on
equity at the beginning of the financial year in which it
was applied. The effect on the result is additional
depreciation of EUR 0.4 million net in 2016. The
depreciation of buildings is based on the expected
useful life of the building.
Land is not depreciated.
Other tangible fixed assetsMachinery and equipment, other property, plant and
equipment and fixed assets under construction and
prepayments on tangible fixed assets are stated at
cost, less accumulated depreciation and impairments.
The cost of the assets described comprises the
acquisition or production cost and other necessary
costs for delivering the assets to their location in the
required condition for the envisaged use. The cost of
the assets produced for the entity's own account
comprises the acquisition costs of the raw and
auxiliary materials and other costs that can be
allocated directly to production.
The production cost is a reasonable part of the indirect
costs and the interest on liabilities for the period that
can be allocated to the production of the assets.
The asset is depreciated from the moment it is made
available and the EUR grants received (CMO) are
deducted from the value. Depreciation is calculated as
a percentage of the purchase price including any
residual value using the straight line method based on
useful life. Tangible fixed operating assets under
construction as well as prepayments on tangible fixed
asses are not depreciated. Depreciation ends upon the
decommissioning or disposal of assets.
792017 Annual Report of The Greenery B.V.
The following percentages are used:
Industrial buildings 3-10
Machinery and equipment 10-20
Other property, plant and equipment 10-20
Maintenance expenditure is only capitalised if it
extends the useful of the object and/or leads to future
object-related performance units. If this expenditure
does not meet the capitalisation conditions, it is taken
directly to the income statement.
Decommissioned assets are valued at book value or
the net realisable value, whichever is lower.
Financial fixed assetsAssociates in which significant influence can be
exercised over commercial and financial policy are
valued at net asset value according to the equity
method. If valuation at net asset value is not
practicable because the information required for this
purpose cannot be obtained, the associate is valued
according to disclosed net equity. In determining
whether there is an associate in which the company
exercises significant influence on the commercial and
financial policy, all the actual circumstances and
contractual relationships (including any potential
voting rights) are taken into account.
The net asset value is determined in accordance with
the company's accounting policies.
Associates with a negative net asset value are valued
at nil. This valuation includes long-term receivables
from associates that should in fact be regarded as part
of the net investment. This mainly concerns loans
settlement of which is neither scheduled nor probable
in the near future.
A share in the profit of the associate in later years is
recognised only if and to the extent that the
accumulated share not recognised in the loss has been
recovered. Where the company has either wholly or
partially guaranteed debts payable by the relevant
associate, a provision has been formed which is
primarily charged to receivables from this associate
and the remainder to the other provisions. The amount
of the provision equals the remaining share in the
losses incurred by the associate or the expected
payments to be made by the company on behalf of
these associates.
The receivables from and loans to associates as well as
other receivables are initially recognised at fair value,
plus the directly allocable transactions costs. The
receivables are subsequently recognised at amortised
cost based on the effective interest method, less the
provisions deemed necessary.
StocksInventories are carried at the lower of cost or net
realisable value, less any provisions for obsolescence.
The cost comprises the cost of acquisition or
production, plus other costs for bringing the
inventories into their present condition. The net
realisable value of the inventory is based on the fair
market value. The cost price method applied to the
inventory is the average purchase price method.
The packaging inventory is stated at the refundable
amount, unless held on consignment.
ReceivablesReceivables are initially recognised at fair value and
subsequently at amortised cost, less any provisions for
doubtful debts deemed necessary. These provisions
are determined on the basis of an individual
assessment of the receivable. If there are no
premiums, discounts and transaction costs, the
amortised cost is taken as equal to the nominal value
of the receivable.
Liquid assetsCash and cash equivalents are valued at nominal
value. The portion of cash and cash equivalents not
freely disposable is specified in greater detail in note
18.
Equity capitalFinancial instruments regarded as equity instruments
based on the economic reality are stated under
shareholders' equity. Distributions to holders of these
instruments are deducted from equity net of any
related benefits arising from profits tax.
Financial instruments regarded as a financial liability
based on the economic reality are stated under
liabilities. Interest, dividends, income and expenses
relating to these financial instruments are recognised
as income or expenses in the income statement.
Share premiumThe amounts higher than the nominal share capital
contributed by the shareholders are recognised as
share premium. The share premium reserve was
created in 1996 upon contribution in kind against the
issuance of Class A shares.
80 2017 Annual Report of The Greenery B.V.
Revaluation reserveThe revaluation reserve that was formed in the past
was based on the individual asset and is no higher
than the difference between the book value based on
historical cost and the book value based on current
cost. The realised revaluation (relating to depreciation
of the asset) is deducted from the revaluation reserve.
Value adjustments to the particular asset, not being
normal depreciation, are deducted from the
revaluation reserve.
If an asset is sold, any existing revaluation reserve
relating to the asset is released to the other reserves. A
deduction for deferred tax liabilities, calculated at the
current tax rate, has been taken into account in
determining the revaluation reserve.
Minority interestsMinority interests are valued at the proportional share
of third parties in the net value of the assets and
liabilities, based on the company's accounting policies.
Provisions
GeneralA provision is included in the balance sheet when there
is:
• a legally enforceable or constructive obligation
arising from a past event
• which can be reliably estimated, and
• it is probable that an outflow of resources will be
required to settle the obligation.
Rights and obligations arising from the same
agreement are not included in the balance sheet if and
insofar as neither the company nor the other party has
delivered performance. Inclusion in the balance sheet
occurs when the performance and consideration to be
received or delivered are not, or no longer, in
equilibrium and this has negative consequences for
the entity.
Provisions are recognised at the nominal value of the
best estimate of the expected expenditure required to
settle the liabilities and losses.
Pension provisionsPension provisions are valued in accordance with the
Dutch Guidelines for Annual Reporting, Guideline
271.3 'Employee Benefits - Pensions'.
Pension plans in the NetherlandsPension commitments arising from the Dutch pension
plans are valued according to the 'liability towards the
pension administrator' principle. This approach
recognises the contributions payable to the pension
administrator as an expense in the income statement
in the relevant period.
If the contributions due have not yet been paid at the
balance sheet date, a liability is recognised. If the
contributions already paid exceed the payable
contributions at the balance sheet date, an accrual is
recognised (under current assets) to account for any
repayment by the fund or set-off against contributions
payable in the future.
The administration agreement specifies circumstances
in which other liabilities may arise in addition to the
payment of the annual contributions payable to the
pension administrator. These additional liabilities,
including liabilities arising from recovery plans of the
pension administrator, will lead to charges for the
group and will be recognised in the balance sheet as a
provision.
The pension provision included in the balance sheet
only covers the unconditional liabilities regarding
entitlements accrued as at the balance sheet date
arising from expected future salary increases and
payable by the company.
The valuation of this liability is the best estimate of the
amounts needed to settle the liability at the balance
sheet date. If the effect of the time value of money is
material, the liability will be valued at its present value.
Discounting will be applied based on interest rates
applicable to premium corporate bonds.
Additions to and releases from the liabilities are taken
to the income statement.
Pension plans outside the NetherlandsPension plans in countries outside the Netherlands
that are comparable to the way in which the pension
system in the Netherlands is organised and operates
are treated in the same way as pension plans in the
Netherlands.
Liabilities arising under pension plans outside the
Netherlands that are not comparable to the way the
pension system in the Netherlands is organised are
valued on the basis of a generally accepted actuarial
valuation method in the Netherlands which is in line
with the ‘commitment to the employee’ principle. This
means that the liability is valued based on the best
estimate of the amounts needed to settle the liabilities
in question at the balance sheet date.
812017 Annual Report of The Greenery B.V.
Other long-term employee benefitsOther long-term employee benefits comprise
emoluments that form part of the remuneration
package, such as work anniversary bonuses,
temporary leave, etc. with a long-term character.
Entitlement to these benefits is earned. The liability is
valued based on the best estimate of the amounts
needed to settle the liabilities in question at the
balance sheet date.
Deferred tax liabilitiesA provision is formed for future tax liabilities resulting
from timing differences between the valuation of
assets and liabilities for financial reporting and for tax
purposes.
This provision is reduced by the tax amounts that may
be carried forward for future set-off, to the extent that
is probable that future taxable profits will be available
for set-off.
Deferred tax assets are reviewed at every reporting
date and reduced to the extent that it is no longer
probable that the related tax benefit will be realised.
A deferred tax liability is recognised for taxable
temporary differences relating to group companies
unless the entity is in a position to determine the date
at which the temporary difference will reverse and it is
probable that the temporary difference will not be
settled in the foreseeable future.
Where temporary differences relating to group
companies can be set off, a deferred tax asset is only
recognised to the extent that it is probable that the
temporary difference will reverse in the foreseeable
future and that taxable profit will be available against
which the temporary difference will be utilised.
The provision is carried at its non-discounted value on
the basis of the prevailing tax rate, with the exception
of land held for strategic purposes, to which a rate of
20% applies.
Restructuring provisionA restructuring provision is formed if a detailed
restructuring plan has been formalised at the balance
sheet date and has given rise to the legitimate
expectation among those who will be affected by the
reorganisation no later than at the preparation date of
the financial statements that the plan will be
implemented. A legitimate expectation exists if
implementation of the reorganisation has
commenced, or if the main aspects have been
announced to those who will be affected.
The necessary costs unrelated to the continuing
operations of the entity are included in the
restructuring provision. The provision is valued at
nominal value.
Other provisionsExcept where stated otherwise, any other provisions
are valued at the nominal value of the expenditure
expected to be necessary to settle the obligations in
question.
Provisions on account of claims, disputes and legalproceedingsThis provision is formed if it is probable that a court
will rule against the company in legal proceedings. The
provision is the best estimate of the amount required
to settle the obligation, and includes the costs of the
legal proceedings.
Provision for onerous contractsThe provision for onerous contracts comprises the
negative difference between the expected benefits to
be derived by the entity from the performance to be
delivered after the balance sheet date and the
unavoidable costs of fulfilling the obligations. The
unavoidable costs are the costs that must at least be
incurred to get out of the agreement, being the lower
of the costs of fulfilling the obligations, on the one
hand, and the payments or penalties for not fulfilling
the obligations, on the other.
Earn-out provisionAn earn-out obligation arises from an agreement to
acquire pear varieties, including trademark rights,
related contracts and other activities. The earn-out
obligation is based on the projected income from fruit
and tree royalties. A provision has been formed for this
purpose, which is reviewed on an annual basis.
Long-term liabilitiesThe long-term liabilities are initially recognised at fair
value. At that moment the fair value is equal to the
amortised cost. The subsequent non-current liabilities
are recognised at amortised cost. If there are no
premiums, discounts or transaction costs, the
amortised cost is taken as equal to the nominal value
of the liability.
Product funds consist of levies raised on growers.
Product funds are carried at nominal value and may
only be used to defray the cost of commercial
activities such as promotions, product research and
care systems, after consultation with growers'
representatives.
82 2017 Annual Report of The Greenery B.V.
10 Accounting policies fordetermining the result
Net revenue
Sale of goodsProceeds from the sale of goods are recognised in the
net revenue at the fair value of the payment received
or receivable, net of goods returned and
compensation, trade and volume discounts. Proceeds
from the sale of goods are recognised in the income
statement when the principal risks and benefits of
ownership have been transferred to the buyer, the
amount of the proceeds can be reliably measured,
collection of the amount owed is probable, the related
costs or any goods returned can be reliably estimated
and there is no continuing involvement with the
goods.
The transfer of risks and benefits varies according to
the terms and conditions of the sales contract
concerned. For general sales of fruit and vegetables,
transfer takes place upon delivery and upon invoicing.
For commission-based sales, transfer takes place upon
selling all the products and invoicing. In the event of
transportation, transfer takes place upon
transportation of the shipment and invoicing
accordingly.
Commission on sales having the nature of commission
business, for which The Greenery receives a fixed
percentage as income, is treated in the same manner
as net revenue. Operating grants (CMO) are taken to
the income statement in the year in which the
subsidised expenditure is recognised under the Fruit &
Vegetables Trade segment (see note 25).
Cost of subcontracted work and otherexternal costsThis item includes the costs incurred for operating
income, to the extent that these costs have been
charged by third parties and do not qualify as costs of
raw and auxiliary materials. All costs are determined in
accordance with the above accounting policies and are
allocated to the reporting year to which they relate.
Employee benefitsEmployee benefits are recognised as an expense in the
income statement in the period in which the work is
performed, and to the extent not yet paid, as a liability
in the balance sheet. If the amounts already paid
exceed the benefits payable, the excess amount is
recognised as an accrual (under current assets) to
account for any repayment by employees or
settlement with future payments by the company.
The expected expenses associated with benefits
involving the accrual of rights and bonuses are taken
into account during employment. An expected
allowance arising from bonus payments is recognised
if the obligation to pay the allowance arose at or prior
to the balance sheet date and the liabilities can be
reliably estimated. Additions to and releases from
liabilities are taken to the income statement.
LeasingThe entity may conclude financial and operating
leases. A lease, where the benefits and risks attached
to ownership of the leased object are transferred in full
or almost in full to the lessee, are classified as a
financial lease. All other leases are classified as
operating leases. The substance rather than the legal
form of the transaction determines the lease
classification. Classification of the lease takes place at
the time it is entered into.
Financial leasesIf the entity acts as the lessee in a financial lease, the
object leased (and the associated debt) is recognised
at fair value in the balance sheet upon
commencement of the lease period, or at the present
value of the minimum lease payments, if this lower.
Both values are determined at the time the lease is
entered into. The implicit interest rate is used to
calculate the present value. If the implicit interest rate
cannot be practicably determined, the incremental
borrowing rate is used. The initial direct costs are
included upon initial recognition of the object lease.
The lease payments are subsequently required to be
divided into interest expenses and repayment of the
outstanding liability. The interest expenses must be
allocated to each period during the lease period so as
to achieve a constant periodic interest rate for the
remaining net liability relating to the financial lease.
Operating leasesIf the entity acts as the lessee in an operating lease,
the object leased is not capitalised. Lease payments
and fees regarding operating leases are taken or
charged to the income statement evenly over the lease
period, unless another imputation system is more
representative of the pattern of the benefits to be
derived from the object leased.
Government subsidiesOperating subsidies are taken to the income
statement of the year to which the subsidised
expenditure is charged, or the year in which the yield
was lost or the operating deficit occurred. The
amounts received in advance (both short and long
832017 Annual Report of The Greenery B.V.
term) are recognised under accruals and deferred
income. Investment subsidies are deducted from the
invested amount. The amounts received in advance
(both short and long-term) are recognised under
accruals and deferred income and are systematically
recognised in the income statement during the useful
life of the assets.
Interest receivable and similar income andinterest payable and similar chargesInterest income is recognised in the period to which it
relates, taking account of the effective interest rate of
the particular asset item. Interest payable and similar
charges are recognised in the period to which they
relate.
The additional costs attached to the use of more than
the usual supplier credit are recognised as an interest
expense.
TaxesTaxes are included in the income statement, except to
the extent that they relate to items recognised directly
in equity, in which case tax is recognised in equity.
The current tax for the financial year is the tax that is
expected to be paid on the taxable profit for the
financial year, based on the tax rates set at the
reporting date or on which a firm decision has been
taken at the reporting date, and any adjustments of
the tax payable for prior years.
Share of results of associatesThe results of associates in which the company
exercises significant influence over the commercial
and financial policy are recognised in proportion to the
company's share of the results of these associates. The
results are determined on the basis of the company's
applicable accounting policies.
The results of associates acquired or divested in the
course of the financial year are recognised in group net
income from the time of acquisition or until the time
of disposal.
Determination of fair valueThe fair value of a financial instrument is the amount
for which an asset could be exchanged or a liability
settled between knowledgeable parties in an arm's
length transaction.
The fair value of unlisted financial instruments is
determined by discounting the expected cash flows at
a discount rate which is the same as the applicable
risk-free interest rate for the residual life plus credit
and liquidity margins.
Related partiesRelated-party transactions (seenotes 24 and 45 for
the identified related parties) are disclosed if they have
not been entered into under usual market conditions.
The nature and size of these transactions and other
information that is needed to provide insight are
disclosed.
11 Basis of preparation of theconsolidated cash flow statement
The cash flow statement has been prepared using the
indirect method. In general, the cash flow statement
reflects the movements in the consolidated balance
sheet, with separate presentation under cash flow
from investing activities in the case of the acquisition
or sale of consolidated associates, of the acquired net
asset value, less cash and cash equivalents, and
increased by any goodwill paid. Exchange rate
movements are eliminated from balance sheet
movements, as they do not represent cash flows. Partly
for the above two reasons, the movements in the cash
flow statement cannot always be directly derived from
the movements in the related balance sheet items.
Cash flows in foreign currency are translated at an
average exchange rate. Currency exchange differences
on cash are recognised separately in the cash flow
statement. Profits tax and interest are stated under
cash flow from operating activities. Dividends received
are stated under cash flow from operating activities.
12 Events after the balance sheet dateNo events are stated in the financial statements that
provide further information on the actual situation as
at the balance sheet.
84 2017 Annual Report of The Greenery B.V.
Notes to the consolidated balance sheet(in thousands of euros)
13 Intangible fixed assets
in thousands of euros 2017 2016
Goodwill 5,769 7,034
Other intangible fixed assets 7,782 8,704
Net book value as at 31 December 13,551 15,738
Goodwill
in thousands of euros 2017 2016
Net book value as at 1 January 7,034 8,625Depreciation (1,282) (1,658)
Other movements 17 67
Net book value as at 31 December 5,769 7,034
Accumulated cost 34,722 34,722
Accumulated depreciation and impairments (28,953) (27,688)
Net book value as at 31 December 5,769 7,034
Other intangible fixed assets
in thousands of euros 2017 2016
Net book value as at 1 January 8,704 9,627Investments 1,254 1,131
Depreciation (2,910) (2,140)
Impairments/reversal of impairments 320 (416)
Other movements 414 502
Net book value as at 31 December 7,782 8,704
Accumulated cost 21,963 19,757
Accumulated depreciation and impairments (14,181) (11,053)
Net book value as at 31 December 7,782 8,704
Mainly pear-growing rights and associated licensing rights are capitalised under other intangible fixed assets. In
January 2012, the company acquired the shares of New Sensations B.V. and Goeie Peer B.V., a company that holds
the cultivation rights to the Rode Doyenne Van Doorn pear variety, as well as the licensing rights to the Uta pear
variety. An impairment in 2016 pertains to the pear-growing companies. It is based on the future sales of trees,
and gross/net harvest figures. In 2017 the assumptions for determining the WACC were changed and part of the
impairment was reversed. The investments mainly relate to external costs for the purchase, development and
implementation of SAP 6.0 for the import organisation. The book value of the purchase, development and
implementation of software at the balance sheet date stated under other intangible fixed assets amount to EUR
5.1 million (2016: EUR 5.9 million).
852017 Annual Report of The Greenery B.V.
The other movements comprise transfers of tangible fixed assets.
14 Tangible fixed assetsThe cost, accumulated revaluation, accumulated depreciation and net book values as at 31 December 2017 were
as follows:
in thousands of euros
Land and
buildings
Machinery and
equipment
Other fixed
operating assets
Operating assets
under construction Idle assets Total
Balance as at 1 January 2017Purchase price 80,633 33,830 36,705 3,126 6,176 160,470
Accumulated depreciation (35,713) (21,277) (29,596) - - (86,586)
Accumulated revaluation 79,370 - - - - 79,370
Accumulated depreciation
revaluation (8,128) - - - - (8,128)
Carrying amount 116,162 12,553 7,109 3,126 6,176 145,126
Movements -Investments 271 684 4,621 1,651 - 7,227
Disposals (9,542) (255) (252) - (6,012) (16,061)
Depreciation (4,041) (5,267) (2,066) - - (11,374)
Transfers (6,477) 8,836 236 (2,595) - -
Other changes (180) 1,379 (123) (82) - 994
Total movements (19,969) 5,377 2,416 (1,026) (6,012) (19,214)
Balance as at 31 December2017Purchase price 69,351 42,908 39,777 2,100 164 154,300
Accumulated depreciation (32,462) (24,978) (30,252) - - (87,692)
Accumulated revaluation 67,175 - - - - 67,175
Accumulated depreciation
revaluation (7,871) - - - - (7,871)
Carrying amount 96,193 17,930 9,525 2,100 164 125,912
In 2017, the company finalised a number of transactions concerning the sale of land and buildings in Barendrecht
which are recognised under disposals. Part of the Retail DC was completed in 2017. In 2017 EUR 6.0 million of the
assets decommissioned at the end of 2016 were disinvested. Buildings and machinery include assets not used in
the production process rented out to third parties and therefore qualify for classification as investment property.
However, in view of their limited number, they are included under buildings and land.
All the real estate in Bleiswijk was pledged as mortgage collateral for the new financing agreement at the end of
2016. For more information on the financing arrangement, see note 22 Current Liabilities, Collateral.
Of the investments, EUR 0.7 million was effected through financial lease commitments recognised under other
equipment. The financial lease commitments are recognised under long-term liabilities.
The book value as at 31 December 2017 includes EUR 9.2 million relating to investments at the grower companies
of members of the Cooperative. Other movements include the release of EU grants received.
The accumulated unrealised revaluation amounted to EUR 59 million as at 31 December 2017 (2016: EUR 71
million). A provision was formed for deferred tax on this amount. Realisation of the revaluation is recognised in
equity.
86 2017 Annual Report of The Greenery B.V.
15 Financial fixed assets
in thousands of euros 2017 2016
Participating interests 49,543 42,532
Other long-term receivables 2,573 2,852
Amounts receivable from shareholders 16 7,501
Total 52,132 52,885
Associates
in thousands of euros 2017 2016
Carrying value as at 1 January 42,532 37,544Share in result of participating interests 11,325 11,000
Dividends received (4,322) (6,011)
Other movements 8 (1)
Carrying value as at 31 December 49,543 42,532
For more details on associates, see note 47 List of subsidiaries and associates.
Other long-term receivables
in thousands of euros 2017 2016
Carrying value as at 1 January 2,852 4,117Impairments (46) (430)
Loans granted 9 193
Release of provision 112 73
Loan redemption (354) (478)
Transfers - (623)
Carrying value as at 31 December 2,573 2,852
In connection with the sale of real estate in Bleiswijk, Houweling Klappolder B.V. was granted a suspension of
payment in 2015 regarding a part of the purchase price, which was converted into a loan of EUR 2.5 million, with a
3.5% interest rate and a term of 10 years and 2.5 months.
In 2013, a loan was granted to the minority holding Inova Fruit B.V. In view of the negative net asset value of Inova
Fruit B.V. a provision of EUR 1.0 million was formed for the possibility of impairment. A repayment of EUR 112,000
was made on this subordinated loan in 2017. The interest on the loan is 2.543%.
Receivable from shareholdersFor more information on the receivable from the shareholder concerning the financing of the repurchase of
depositary receipts of the Cooperative, please refer to the disclosures under current assets.
872017 Annual Report of The Greenery B.V.
16 Stocks
in thousands of euros 2017 2016
Goods for sale 6,849 6,887
Packaging 4,395 5,553
Total 11,244 12,440
The inventories include a provision for obsolescence of EUR 1.1 million (2016: EUR 1.3 million). mainly for
unsaleable packaging.
17 Receivables and accruals
in thousands of euros 2017 2016
Trade receivables 53,859 55,533
Amounts receivable from shareholders 12,768 14,499
Corporate income tax receivable 1,568 235
Other receivables 3,450 3,010
Prepayments and accrued income 7,392 11,699
Total 79,037 84,976
Trade receivablesTrade receivables include a provision for impairment of EUR 0.8 million (2016: EUR 0.9 million). Trade receivables
serve as collateral for the financing agreement.
Receivable from shareholderThe Cooperative holds the entire share capital of the company. The Cooperative has issued depositary receipts for
Class B shares to its members, all of which were repurchased in 2016.
To finance the repurchase of depositary receipts, Hagé International granted a loan of EUR 8.2 million (2016: EUR
7.5 million) at a profit-related interest rate of 8%. The loan was issued for an indefinite period from 1 January
2009. The shareholder has expressed the intention to redeem the loan in 2018 and it has therefore been included
under current assets.
The remaining amount of the receivable from the shareholder comprises the EU grant received (EUR 0.5 million)
and other advances.
Other receivablesOther receivables mainly comprise amounts receivable from suppliers, advances provided and prepayments. All
receivables fall due within one year.
Prepayments and accrued incomePrepayments and accrued income mainly comprise sales to be invoiced, packaging bonuses and deposits.
88 2017 Annual Report of The Greenery B.V.
18 Liquid assets
in duizenden euro's 2017 2016
Cash at banks 16,610 15,738
Petty cash 8 15
Other cash equivalents 1,956 26
Totaal 18,574 15,779
Cash and cash equivalents are valued at nominal value. Cash and cash equivalents denominated in foreign
currency are converted into the functional currency at the exchange rate prevailing at the balance sheet date
based on the closing rate published by De Nederlandsche Bank (DNB). This item includes cash and cash
equivalents that are not freely disposable. This concerns a short-term deposit to guarantee rental commitments
that will be released in January 2018. These are recognised under other receivables.
In 2017 the company banks where cash pools within the group have been arranged changed from ABN AMRO and
ING to Deutsche Bank and Rabobank. Due to the change in company banks, the netting methodology was
changed from notional pooling to zero balancing. Debit bank balances within the cash pools are recognised under
Amounts owed to bank and are financed through revolving credit facilities and an asset-based finance facility.
Current account debit balances under the asset-based finance system are guaranteed by accounts receivable
pledging. The current account balance on the asset-based finance system was positive as at 31 December 2017.
Cash and cash equivalents that have not been credited to the current account statement of the asset-based
finance system at the balance sheet date but are at the disposal of The Greenery are stated separately under
Other cash and cash equivalents.
There are no cash and cash equivalents in the entity which are not expected to be freely disposable for a period
exceeding 12 months and therefore no cash and cash equivalents are classified as financial fixed assets.
The bank accounts serve as collateral for the financing agreement.
19 Group equityThe movements in group equity are as follows:
in thousands of euros
Shareholders'
equity Minority interest Group equity
Book value as at 1 January 2017 95,177 (129) 95,048
Result for the year 12,483 (64) 12,419
Currency exchange differences (1,267) - (1,267)
Other movements (57) 19 (38)
Comprehensive income for 2017 11,159 (45) 11,114
Book value as at 31 December 2017 106,336 (174) 106,162
The minority interest is the consolidated subsidiary Dalice Qingdao Trading Company Ltd., 30% of the shares of
which are held by a company outside the Group.
Please see note 38 Shareholders' equity, to the company balance sheet for a breakdown of Shareholders' equity.
892017 Annual Report of The Greenery B.V.
20 ProvisionsThe provisions are as follows:
in thousands of euros 2017 2016
Pension provision 8,502 8,935
Deferred tax liabilities 17,763 15,903
Other provisions 4,823 8,038
Book value as at 31 December 31,088 32,876
The breakdown of provisions into short-term (less than one year), long-term (more than one year) and more than
five years is as follows:
in thousands of euros < 1 year
1 year > < 5
year > 5 year
Total
2017
Pension provision 305 960 7,237 8,502
Deferred tax liabilities 2,107 5,620 10,036 17,763
Other provisions 966 2,153 1,704 4,823
Total provisions 3,378 8,733 18,977 31,088
The movements in provisions are as follows:
in thousands of euros
Pension
provision
Deferred tax
liabilities
Other
provisions Total
Balance as at 1 January 2016 6,885 17,527 16,223 40,635Provisions used during the year (19) (1,981) (5,877) (7,877)
Provisions made during the year 2,661 357 1,635 4,653
Provisions reversed during the year (504) - (3,235) (3,739)
Other movements (88) - (708) (796)
Balance as at 1 January 2017 8,935 15,903 8,038 32,876Provisions used during the year (19) (4,343) (2,236) (6,598)
Provisions made during the year 340 6,203 2,554 9,097
Provisions reversed during the year (391) - (3,051) (3,442)
Other movements (363) - (482) (845)
Balance as at 31 December 2017 8,502 17,763 4,823 31,088
Pension provisionThe group contributes to a number of defined benefit pension plans in the Netherlands and the UK, as well as to a
number of defined contribution plans in the Netherlands and other countries.
Dutch pension provisionThe basic pension plan for Dutch employees is administered either by Stichting Bedrijfspensioenfonds voor de
Agrarische en Voedselvoorzieningshandel (Bpf AVH) or Pensioenfonds Vervoer. Aegon administers a
supplementary pension plan for employees in the Netherlands, which is a defined contribution plan. The
employee pension plan administered by the two above industry-wide pension funds is a defined average earnings
benefit plan with conditional indexation. The indexation of pension benefits depends on the financial position of
the pension funds. The contribution payable to the pension administrator is recognised as an expense in the
90 2017 Annual Report of The Greenery B.V.
income statement, and where the payable contribution has not yet been paid to the pension administrator, it is
included as a liability on the balance sheet. The employer has no obligation to make additional contributions in
the case of underfunding of the industry-wide pension funds other than paying any future higher contributions.
For this reason, the contributions made during the pension input period are taken to the result in that period.
The pension plan rules of the old pension plans administered by Aegon and Centraal Beheer include an
unconditional obligation to grant indexation to members. A provision for this commitment of EUR 1.6 million
(2016: EUR 1.3 million) is included in the balance sheet. The main assumptions on which the calculation of these
provisions is based are stated in the table below.
2017 2016
Inflation rate 1.6% 1.5%
Discount rate 2.1% 2.0%
Future life expectancy CBS2014 CBS2014
The old pension plans administered by Aegon include an obligation to pay warranty expenses for the deposit. This
obligation is calculated based on the value of the deposit and a capital cost fee. A provision for this obligation of
EUR 1.8 million (2016: EUR 1.7 million) is included in the balance sheet.
At 31 December 2017, the provisional coverage ratio amounts to 97.4% for the Stichting Bedrijfspensioenfonds
voor de Agrarische en Voedselvoorzieningshandel (Bpf AVH) and to 107.3% for Pensioenfonds Vervoer. At
31 December 2016, the coverage ratio of the Aegon deposit for old pension plans amounted to 111.4%.
Foreign pension provisionThe pension plan for employees in the UK administered under the Personal Pension Plan is a defined contribution
plan where 7% of the basic salary is transferred to a pension insurer chosen by the employee.
In addition, there is a pension fund for former employees. This is a closed pension scheme under own
management in which The Greenery UK Ltd. is responsible for any underfunding.
The calculations for the UK pension fund are based on actuarial assumptions in which future liabilities are
discounted to present value using a discount rate, including inflation. Based on the present value of the assets in
the UK pension fund versus the present value of the liability, the net amount of underfunding in the pension fund
is EUR 5.1 million (2016: EUR 5.7 million), a provision for which is included in the balance sheet. This provision
relates to a Greenery UK Ltd. liability. A recovery plan provides for monthly contributions to the pension fund to
strengthen its position. The expected pension costs in 2018 comprise the contributions under the recovery plan
amounting to EUR 0.4 million.
The calculation of the pension provision for the UK pension fund is based on the following main assumptions:
2017 2016
Inflation rate 3.4% 3.5%
Discount rate 2.5% 2.7%
Future life expectancy S2NXA
CMI2016
S2NXA
CMI2015
Provision for deferred tax liabilitiesThe provision for deferred tax liabilities relates chiefly to the revaluation of property, plant and equipment, the
revaluation reserve and a pension-related deferred tax asset.
912017 Annual Report of The Greenery B.V.
The deferral increased due to the reinvestment reserve formed for the assets sold in 2015. The decrease in the
course of the year is mainly attributable to use of the reinvestment reserve.
Other provisionsThe other provisions are as follows:
in thousands of euros 2017 2016
Restructuring provision - 405
Provision for legal claims - 302
Provision for work anniversaries 1,365 2,003
Provision for conditional earn-out obligation 1,083 971
Other provisions 2,375 4,357
Book value as at 31 December 4,823 8,038
In 2012 NFG Holding B.V. and Goeie Peer B.V. concluded a transaction in which NFG sold pear varieties, including
trademark rights, related contracts and activities, to Goeie Peer. An earn-out provision was calculated based on
the projected income from fruit and tree royalties. A provision was formed for this purpose amounting to EUR 1.1
million at year-end 2017.
The other provisions mainly comprise an onerous lease amounting to EUR 1.7 million (2016: EUR 0.8 million) and
a provision for EU grant-related claims amounting to EUR 0.5 million (2016: EUR 3.2 million). The decrease in the
provision for EU grant-related claims in 2017 is mainly due to the final decisions received on the current objection
procedures. This resulted in the repayment of a grant to the Netherlands Enterprise Agency (RVO) and in the
release of amounts reserved for these projects.
21 Non-current liabilities
in thousands of euros 2017 2016
Mandatory members' loans 36,855 39,829
Product funds 5,209 5,536
Financial lease obligations 1,994 2,032
Other loans 8,372 9,791
Accrued liabilities 6,371 9,225
Total 58,801 66,413
Mandatory members' loansThe mandatory members’ loan is based on the liquidity levy, which is calculated in proportion to the value of the
goods supplied. At the end of the year, the levy is converted into a mandatory members' loan with a four-year
term (2016: (eight years and one day) with a commencement date of 31 December and an expiry date of
1 January. The short-term component of the mandatory members' loans amounting to EUR 6.8 million (2016: EUR
8.6 million). The interest on mandatory members' loans is added to the principal amount unless a request for
payment of the interest is received by 31 March. The interest rate on mandatory members' loans is fixed annually
based on EURIBOR plus a mark-up. In 2017, the rates on the various loans ranged from 2.10% to 3.85%.
In addition, voluntary members' loans totalled EUR 8.8 million as at 31 December 2017 (2016: (EUR 7.7 million)
bearing interest rates from 2.10% to 3.50%. Voluntary members' loans, which are due every year between
1 January and 31 March, are recognised as current liabilities.
92 2017 Annual Report of The Greenery B.V.
The members' loans maturing on 1 January 2018 amounting to EUR 6.8 million are recognised under current
liabilities. The interest paid on the short-term component of these loans ranged between 3.30% and 4.70% in
2017. Mandatory members' loans maturing within one year are recognised as current liabilities, including the
accrued interest. The portion of these members' loans due after five years is EUR 8.3 million (2016: EUR 11.9
million). The interest accrued and payable on the mandatory and voluntary members' loans is classified as
subordinated capital as at 31 December of the financial year. The members' loans are subordinated to the bank
loans.
Product funds
in thousands of euros 2017 2016
Book value as at 1 January 5,536 5,797Withdrawals (1,609) (1,622)
Additions 1,255 1,332
Interest 27 29
Book value as at 31 December 5,209 5,536
By their nature, product funds are subordinated.
The interest rate is based on the one-month EURIBOR rate plus a 0.5% mark-up.
Financial leaseIn 2017, the company entered into financial lease commitments for vehicles, which are recognised under tangible
fixed assets. The leases have a term of five years and the interest rate included in the lease ranges from 2.79% to
3.75%. The lease instalments due within one year amount to EUR 0.5 million and are recognised under current
liabilities.
Other loansThese loans are granted mostly by members of the Cooperative to finance capital expenditure by the company on
their behalf. In 2017 the interest on these loans amounted to 0.00% (2016: 0.06%), depending on the effective
date and term. The debt due and payable after five years is EUR 1.1 million (2016: EUR 1.7 million).
Financial risks
Price riskThe Greenery runs a price risk on its economic inventory. In addition, the company trades in perishable products
whose value, in principle, decreases over time. The Greenery has a well-designed ERP system for the effective
management of inventories and price risks.
Interest rate riskThe variation in interest rates has an impact on the (direct) result. The interest rate policy is aimed at reducing the
risk entails periodically assessing hedge effectiveness and using hedge accounting for hedges.
Currency riskThe Greenery runs the risk of currency fluctuations with regard to its purchasing and sales activities abroad. The
net currency position, which is determined on the basis of the accounts receivable position, the accounts payable
position and bank balances, is hedged periodically.
Liquidity riskThere is a risk that The Greenery does not have access to the required liquidity when needed. The company aims
to limit liquidity risk by guaranteeing availability of an accounts receivable financing facility to support
operational activities and to meet its financial obligations. Accounts receivable financing in 2017 met the full
932017 Annual Report of The Greenery B.V.
financing requirement, also because The Greenery sold real estate in that year so as to build up a financial buffer
to absorb shortfalls. This buffer can also be used if, due to higher market prices or volume, the working capital
increases.
Credit riskThe Greenery runs a credit risk when a counterparty fails to meet its obligations with regard to a financial
instrument or a contract with a buyer, causing financial loss. The Greenery is also exposed to credit risk in
connection with its business activities (primarily trade receivables) and in connection with its financing activities,
including currency transactions and other financial instruments.
Where possible, the trade receivables are placed with a credit insurer. For uninsurable trade receivables, we apply
internal limits which are strictly monitored. The Greenery also provides harvest advances on a limited scale and in
exceptional cases, which are paid back through the delivery of products. The concentration risk is limited as we
work with many different buyers. For the largest of them, we apply supply chain finance programmes to rule out
concentration risk in these relationships.
On the reporting date, the maximum exposure to credit risk amounts to the book value of the receivables and
cash and cash equivalents, as indicated in the respective notes. The Greenery considers that the credit risk is low
because a significant part of its trade receivables are insured. The credit balances held at banks are all credit
balances at reputable banks. Receivables as a result of harvest advances involve a higher risk, as these are
dependent on weather and market conditions.
22 Current liabilities
in thousands of euros 2017 2016
Debts to credit institutions 183 -
Financial lease obligations 557 312
Trade creditors 46,105 62,949
Accounts payable to Growers 11,601 11,178
Mandatory members' loans 6,813 8,670
Voluntary members' loans 8,867 7,690
Other loans < 1 year - 6,013
Taxes and social security contributions 3,652 2,595
Pension liabilities 1,011 1,691
Personnel related liabilities 5,002 6,058
Turnover bonusses 3,938 4,193
Other liabilities 9,051 8,581
Accruals and deferred income 7,619 12,677
Total 104,399 132,607
The other liabilities mainly comprise operating allowances to be paid to growers and other costs to be paid.
All current liabilities fall due within one year.
94 2017 Annual Report of The Greenery B.V.
Taxes and social security contributions to be paid
in duizenden euro's 2017 2016
Wage tax 2,112 1,024
Value-added tax 275 794
Social security contributions 1,146 562
Other 119 215
Totaal 3,652 2,595
CollateralThe new financing arrangement with Deutsche Bank and Rabobank was implemented in the first quarter of 2017.
This financing arrangement consists of an accounts receivable financing facility totalling EUR 40 million with an
interest mark-up at the EURIBOR rate plus an availability commission of 0.30% a revolving EUR 20 million credit
facility with an interest mark-up at the EURIBOR rate and an unused line fee of 0.50%. In addition, a EUR 10
million guarantee facility was arranged. The credit agreement expires on 22 December 2019, with the option of
extension by one year for no more than two times.
Real estate in Bleiswijk and the related insurances were provided as mortgage collateral for the financing
agreement. Furthermore, bank accounts, accounts receivable and credit insurance were pledged as collateral.
23 Off-balance sheet commitments
in thousands of euros 2017 2016
Guarantees and securities 3,675 4,602
Capital expenditure commitments 4,642 716
Lease and rental commitments 71,067 77,641
Other commitments 5,223 5,302
Total 84,607 88,261
The breakdown of off-balance sheet commitments into short-term (less than one year), long-term (more than
one year) and more than five years is as follows:
in thousands of euros < 1 year
1 year > < 5
year > 5 year
Total
2017
Guarantees and securities - - 3,675 3,675
Capital expenditure commitments 4,642 - - 4,642
Lease and rental commitments 7,799 18,575 44,693 71,067
Other commitments 5,223 - - 5,223
Total 17,664 18,575 48,368 84,607
The guarantees and security/collateral issued to secure the guarantee facility are mainly for real estate, trailers
and payment guarantees. The probability of calling on the guarantee depends on the fulfilment of the obligations
by the entity. In view of the solvency level and the scope of the financing arrangement, a claim under the
guarantees described is unlikely to be submitted by the beneficiaries of the guarantees in 2018.
The amount included in the capital expenditure commitments comprises EUR 0.4 million in ICT-related
investments and EUR 1.8 million in moveable property.
952017 Annual Report of The Greenery B.V.
Of the amount of lease and rental commitments, EUR 65.7 million comprises real estate rentals (2016: EUR 70.4
million) and EUR 5.3 million rolling stock (2016: EUR 7.2 million).
All lease commitments are operating lease commitments. The costs recognised in the income statement for the
current financial year relating to the lease and rental commitments included in the above table amount to EUR 5.7
million.
The amount stated under other commitments primarily comprises ICT-related contractual commitments.
24 Related-party transactionsRelated-party transactions are those where a relationship exists between the company and a natural person or an
entity associated with the company, such as relationships between the company and its associates, the
shareholders, the board members and officers serving in key positions. Transactions are taken to mean a transfer
of resources, services or obligations, irrespective of whether an amount is charged.
In 2017, the company entered into transactions with its associates Europool System B.V. and Inova Fruit B.V. These
transactions were conducted at arm's length.
In 2013, a subordinated finance facility was provided to Inova Fruit B.V., an associate, at a fair market interest rate.
In 2017, EUR 112,000 was repaid.
In accordance with Dutch accounting guideline RJ 330, the members of the company's Supervisory Board qualify
as related parties. Please see note 45 to the company financial statements for details of the remuneration of
these Supervisory Board members
In the course of the financial year, transactions were concluded with companies whose Supervisory Boards
included members that are either a board members and/or shareholders. The terms and conditions under which
these transactions were conducted do not vary from similar transactions with other companies. In the course of
the financial year, a company of which a Supervisory Board member is a board member and/or a shareholder was
granted an advance for cultivation purposes in the form of a short-term EUR 0.5 million loan, which is stated
under current assets. The interest on the loan is 3.5%.
96 2017 Annual Report of The Greenery B.V.
Notes to the consolidated income statement
25 Net revenue
Geographic spread
in thousands of euros 2017 2016
Geographic spreadThe Netherlands 648,679 654,206
Germany 130,641 140,648
United Kingdom 41,514 49,498
Rest of Europe 165,017 154,246
Rest of the world 17,301 26,297
Total 1,003,152 1,024,895
Segmentation by category
in thousands of euros 2017 2016
Segmentation by categoryFruit and vegetables 927,916 950,236
Logistical services 70,450 69,817
Exploitation & trade development 4,786 4,842
Total 1,003,152 1,024,895
Logistical services and Exploitation & DevelopmentThis item covers income from logistics services, transport, rental and other operating income that includes an
amount of EUR 4.8 million (2016: EUR 3.1 million) in EU grants and a loss on the sale of real estate of EUR 1.8
million.
26 Depreciation and amortisation of tangible and intangible fixed assets
in thousands of euros 2017 2016
Intangible fixed assets (4,192) (3,798)
Tangible fixed assets (11,374) (10,321)
Total (15,566) (14,119)
27 Impairments of tangible fixed assetsNo impairments occurred in 2017.
An impairment that occurred in 2016 was partially recovered in 2017. For further details, see note 13 Intangible
fixed assets.
972017 Annual Report of The Greenery B.V.
28 Other operating expenses
Fees for the procedures performed by the external auditorPlease refer to the Coöperatie Coforta U.A. financial statements for the fees for the external auditor's procedures
taken to the result for the financial year.
29 Financial income and expensesFinancial income and expenses mainly relate to interest income and expenses. The balance of interest paid to and
interest received from related parties is EUR 23,000 (2016: EUR 25,000).
30 TaxesThe company and most of its wholly-owned subsidiaries in the Netherlands constitute a tax group. Corporate
income tax is recognised for each of the companies for the amount that would be payable by the company
concerned as an independent tax-paying enterprise, taking account of the tax facilities applicable to that
company.
The weighted average applicable tax rate is 25%, which is based on the income before tax in the various tax
jurisdictions. The tax gain in the 2017 income statement amounts to EUR 3.7 million, or 142.6% of the income
before tax. The 2017 tax gain is mainly caused by the untaxed gain regarding the termination of the activities of a
North American subsidiary.
The amount of non-activated losses whereby no tax liability is determined at the balance sheet date is equal to
EUR 3.1 million ( 2016: EUR 3.3 million).
The numerical reconciliation between the applicable and the effective rate is shown below:
Corporate tax
in thousands of euros Gross profit in EUR in %
2017Result before tax (2,569) 642 25.0%
Permanent differences 1,124 (281) -10.9%
(1,445) 361 14.1%
Non-capitalised losses of foreign group companies 6 0.2%
Non-taxable result 2,422 94.3%
Adjustments to tax returns in previous years 608 23.7%
Miscellaneous 266 10.4%
Taxes on income as shown in the income statement 2017 3,663 142.6%
2016Result before tax (1,439) 359 25.0%
Permanent differences 1,248 (312) -21.7%
(191) 47 3.3%
Non-capitalised losses of foreign group companies (570) -39.6%
Adjustments to tax returns in previous years (19) -1.3%
Miscellaneous (8) -0.6%
Taxes on income as shown in the income statement 2016 (550) -38.2%
The permanent differences mostly comprise non-deductible amortisation of goodwill.
98 2017 Annual Report of The Greenery B.V.
31 Employees
number of FTEs employed at year-end 2017 2016
Board/MT/offices 317 322
Logistics services 588 644
Transportation and other 157 146
Total 1,062 1,113
The average number of FTEs with permanent employment contracts during 2017 amounted to 1,085 (2016:
1,165).
The average number of temporary staff in FTEs amounted to 649 (2016: 623).
The number of employees in the Netherlands amounted to 978 (2016: 955) and there were 84 employees abroad
(2016: 158) based on FTEs at year-end, excluding trainees, temporary workers and interim staff.
992017 Annual Report of The Greenery B.V.
Company financial statements
COMPANY BALANCE SHEET AS AT 31 DECEMBER2017(before profit appropriation)
in thousands of euros Note 2017 2016
Assets
Fixed assetsIntangible fixed assets 33 6,996 8,321
Tangible fixed assets 34 22,230 22,575
Financial fixed assets1 35 161,278 161,103
190,504 191,999Current assetsInventories 36 10,341 11,050
Trade and other receivables1 37 82,564 110,131
Cash and cash equivalents 8,144 8,035
101,049 129,216
Total assets 291,553 321,215
Liabilities
Shareholders' equity 38
Share capital 61,262 61,262
Share premium 834 834
Revaluation reserve 44,478 54,752
Other legal reserves 46,461 39,241
Other reserves (59,182) (69,908)
Unappropriated profit 12,483 8,996
106,336 95,177Provisions and liabilitiesProvisions 39 32,297 39,696
Non-current liabilities 40 55,706 63,798
Current liabilities 41 97,214 122,544
185,217 226,038
Total liabilities 291,553 321,215
1 The 2016 figures are restated for comparison purposes only; these are explained under note 5
100 2017 Annual Report of The Greenery B.V.
COMPANY INCOME STATEMENT 2017
in thousands of euros 2017 2016
Share of result of participating interests, after tax 28,044 24,169
Other income and expenses, after tax (15,561) (15,173)
Net result 12,483 8,996
1012017 Annual Report of The Greenery B.V.
Notes to the company financial statements
32 GeneralThe company financial statements form an integral part of the 2017 financial statements drawn up pursuant to
the company's Articles of Association. The financial data of the company are included in the consolidated
financial statements.
The financial statements have been prepared in accordance with the provisions of Part 9 of Book 2 of the Dutch
Civil Code.
The accounting policies applied in the company financial statements are the same as those applied in the
consolidated financial statements. Please see the notes to the consolidated financial statements for these
accounting policies, excluding the accounting policies stated below.
Financial instruments are stated in the company financial statements on the basis of their legal form.
Participating interests in group companies where significant influence is exercised on the commercial and
financial policy are carried at net asset value, but no lower than nil. The net asset value is determined in
accordance with the company's accounting policies. For further information, see the accounting policy for
financial fixed assets in the consolidated financial statements.
The income from associates represents the company's share in the profit or loss for the financial year of the
company concerned from the time it became part of the group.
33 Intangible fixed assets
in duizenden euro's 2017 2016
Goodwill 2,753 3,180
Other intangible fixed assets 4,243 5,141
Boekwaarde 31 december 6,996 8,321
Goodwill
in thousands of euros 2017 2016
Carrying value as at 1 January 3,180 3,557Adjustment of capitalised goodwill 16 66
Depreciation and impairments (443) (443)
Carrying value as at 31 December 2,753 3,180
Accumulated cost 8,200 8,200
Accumulated depreciation and impairments (5,447) (5,020)
Carrying value as at 31 December 2,753 3,180
102 2017 Annual Report of The Greenery B.V.
Other intangible fixed assets
in thousands of euros 2017 2016
Carrying value as at 1 January 5,141 5,643Investments 1,051 730
Depreciation (2,363) (1,734)
Other movements 414 502
Carrying value as at 31 December 4,243 5,141
Accumulated cost 12,817 10,813
Accumulated depreciation and impairments (8,574) (5,672)
Carrying value as at 31 December 4,243 5,141
The other intangible fixed assets comprise external costs for the purchase, development and implementation of
software.
34 Tangible fixed assetsCost, accumulated revaluation, accumulated depreciation and net book values as at 31 December 2017 are
shown below:
in thousands of euros Buildings and land
Machinery and
equipment
Other tangible fixed
assets
Tangible fixed assets
in progress Total
Balance as at 1 January 2017Purchase price (7,101) 17,048 11,260 2,684 23,891
Accumulated depreciation 17,433 (8,633) (10,116) - (1,316)
Carrying value 10,332 8,415 1,144 2,684 22,575
MovementsInvestments 196 501 601 2,067 3,365
Disposals (202) (255) (35) - (492)
Transfers (6,477) 8,836 234 (2,593) -
Depreciation (710) (3,592) (571) - (4,873)
Other movements 441 1,407 (111) (82) 1,655
Movements 2017 (6,752) 6,897 118 (608) (345)
Balance as at 31 December 2017Purchase price (12,788) 26,138 12,585 2,076 28,011
Accumulated depreciation 16,368 (10,826) (11,323) - (5,781)
Carrying value 3,580 15,312 1,262 2,076 22,230
The EU grants received corresponding to the investments recognised under other group companies are included
under buildings and land.
The investments mainly comprise the new Retail DC and are recognised under tangible fixed assets in progress.
The other movements comprise a transfer to intangible fixed assets and a release from the EU grants received.
1032017 Annual Report of The Greenery B.V.
35 Financial fixed assets
in thousands of euros
Minority
interests
Receivables from
group
companies Associates
Other
receivables Total
Carrying value as at 1 January 2017 73,858 44,564 42,623 58 161,103Loans granted - 16 112 - 128
Redemption - (12,674) (24) (58) (12,756)
Share of result of participating interests 16,710 - 11,334 - 28,044
Dividend received (2,890) - (4,322) - (7,212)
Provision (5,337) - - - (5,337)
Other movements (2,692) - - - (2,692)
Carrying value as at 31 December 2017 79,649 31,906 49,723 - 161,278
For more details on non-consolidated participating interests, see note 47 List of subsidiaries and associates.
SubsidiariesThe amount stated under other movements mainly comprises the currency translation differences reserve for
associates in connection with PTLA.
Receivables from group companiesThe amount recognised under redemption relates mainly to the sale of real estate by Greenery Vastgoed B.V. The
interest on this receivable is 0%.
Non-consolidated participating interestsOver the course of 2017, an amount of EUR 4.3 million in dividend was received from EPS through
Houdstermaatschappij Verpakkingsbedrijven B.V.
36 Stocks
in thousands of euros 2017 2016
Goods for sale 6,186 5,743
Packaging 4,155 5,307
Total 10,341 11,050
The inventories include a provision for obsolescence of EUR 1.1 million (2016: EUR 1.3 million). mainly for
unsaleable packaging.
37 Receivables and accruals
in thousands of euros 2017 2016
Trade receivables 38,536 42,610
Amounts receivable from group companies 31,559 40,780
Amounts receivable from shareholders 4,595 14,499
Corporate income tax receivable 3,946 6,063
Other receivables, prepayments and accrued income 3,928 6,179
Total 82,564 110,131
104 2017 Annual Report of The Greenery B.V.
Trade receivables include a provision for doubtful debts of EUR 0.3 million (2016: EUR 0.2 million).
The interest on amounts receivable from group companies is based on one-month EURIBOR plus a mark-up. The
interest on amounts receivable from shareholders is set at 0%.
All receivables fall due within one year.
38 Shareholders' equity
in thousands of euros
Share
capital
Share
premium
Revaluation
reserve
Other legal
reserves
Other
reserves
Unapropria
ted profit Total
Net value as at 1 January 2017 61,262 834 54,752 39,241 (69,908) 8,996 95,177Revaluation realised with regard to
disposals and depreciation - - - - 8,996 (8,996) -
Movements in legal reserves for
associates - - (10,274) - 10,274 - -
Result appropriation of previous
financial year - - - (4,322) 4,322 - -
Addition to the reserve of
associates - - - 11,334 (11,334) - -
Result for the year - - - - - 12,483 12,483
Other movements - - - 1,475 (1,532) - (57)
Currency exchange differences - - - (1,267) - - (1,267)
Net value as at 31 December 2017 61,262 834 44,478 46,461 (59,182) 12,483 106,336
Paid-up and called-up capitalThe authorised share capital amounts to EUR 90,769,000 and consists of 400,000 Class A and 400,000 Class B
shares, both with a nominal value of EUR 113.45.
The paid-up and called up share capital consists of 281,000 Class A shares and 259,000 cumulative preference
Class B shares both with a nominal value of EUR 113.45.
Share premiumThe amounts contributed by the shareholders in excess of the nominal share capital are recognised as share
premium. The share premium reserve was created in 1996 upon the contribution in kind against the issuance of
Class A shares.
Revaluation reserveThe revaluation reserve records changes in the value of tangible fixed assets of Greenery Vastgoed B.V. previously
carried at current value. Realisation of the revaluation reserve is recognised through equity.
Other legal reservesThe legal reserve includes a reserve for associates which relates to the net asset value of unconsolidated
investments. Translation differences arising from the conversion of the functional currency used by foreign
operations to the presentation currency used by the parent company are also recognised in the legal reserve. If an
associate is sold, the cumulative translation differences relating to the associate are transferred to the general
reserve and recognised under other movements.
1052017 Annual Report of The Greenery B.V.
The movements in these reserves are as follows:
in thousands of euros
Reserve of
associates
Currency
translation
reserve
Other legal
reserves
Net book value as at 1 January 2017 42,528 (3,287) 39,241Movement of legal reserve for associates (4,322) - (4,322)
Grants to the reserve of associates 11,334 - 11,334
Other movements - 1,475 1,475
Currency exchange differences - (1,267) (1,267)
Net book value as at 31 December 2017 49,540 (3,079) 46,461
Proposed profit appropriationA proposal has been made to the General Meeting to add the profit of EUR 12,483,000 recorded in 2017 to equity.
This proposal has not yet been incorporated in the financial statements.
39 ProvisionsThe provisions are as follows:
in thousands of euros 2017 2016
Pension provision 3,372 3,051
Deferred tax liabilities 18,768 17,047
Provision subsidiaries 8,251 13,588
Other provisions 1,906 6,010
Balance as at 31 December 32,297 39,696
Movements in pensions, deferred tax liabilities and other provisions were as follows:
in thousands of euros
Pension
provision
Deferred tax
liabilities
Provision
subsidiaries
Other
provisions Total
Balance as at 1 January 2016 2,976 18,279 10,359 13,197 44,811Provisions used during the year (19) (1,589) - (4,170) (5,778)
Provisions made during the year 557 357 3,229 467 4,610
Provisions reversed during the year (464) - - (2,860) (3,324)
Other movements 1 - - (624) (623)
Balance as at 1 January 2017 3,051 17,047 13,588 6,010 39,696Provisions used during the year (19) (4,343) (5,337) (1,279) (10,978)
Provisions made during the year 340 6,064 - 685 7,089
Provisions reversed during the year - - - (2,866) (2,866)
Other movements - - - (644) (644)
Net value as at 31 December 2017 3,372 18,768 8,251 1,906 32,297
The provision for associates relates to associates with a negative net asset value.
The provision for anniversaries accounts for EUR 1.4 million of the other provisions.
For further information, please see the notes to the consolidated balance sheet.
106 2017 Annual Report of The Greenery B.V.
40 Non-current liabilitiesNon-current liabilities consist of mandatory members' loans totalling EUR 36.9 million (2016: EUR 39.8 million),
growers' loans totalling EUR 7.3 million (2016: EUR 9.2 million), accruals relating to the operating budget for
growers totalling EUR 6.4 million (2016: EUR 9.3 million) and the product funds totalling EUR 5.2 million (2016:
EUR 5.5 million). For further information, please refer to note 21 to the consolidated balance sheet.
Information on financial instrumentsFor further information on financial instruments, please refer to the notes to the consolidated balance sheet.
41 Current liabilities
in thousands of euros 2017 2016
Debts to credit institutions - 6,750
Trade creditors 34,928 50,913
Accounts payable to Growers 11,601 11,178
Group companies 13,392 14,644
Mandatory members' loans 6,813 8,670
Voluntary members' loans 8,867 7,690
Taxes and social security contributions 3,664 1,586
Pension liabilities 951 1,629
Personnel related liabilities 3,573 4,579
Turnover bonusses 3,315 3,485
Other liabilities 6,772 7,305
Accruals and deferred income 3,338 4,115
Total 97,214 122,544
All current liabilities fall due within one year.
The other liabilities mainly comprise operating allowances to be paid to growers and other costs due.
42 Off-balance sheet liabilitiesOn behalf of the majority of the Dutch group companies included in the consolidation, the equity holder issued
guarantees as referred to in Book 2, Section 403 of the Dutch Civil Code. Pursuant to those guarantees, the equity
holder is jointly and severally liable for debts arising from legal acts performed by those group companies
amounting to EUR 4.5 million at the balance sheet date.
1072017 Annual Report of The Greenery B.V.
The Greenery B.V. has issued a 403 statement for the subsidiaries below:
Subsidiaries
Disselkoen Airfreight B.V.
E. van den Berg & Zonen B.V.
Greenery Holding B.V.
Greenery OG Barendrecht I B.V.
Greenery Produce B.V.
Greenery Specials Groep B.V.
Greenery Vastgoed B.V.
Hagé International B.V.
Hollander Barendrecht B.V.
Hoogsteder Groenten en Fruit B.V.
Internationaal Transportbedrijf Dijco B.V.
J.H. Wagenaar B.V.
Jover Beheer B.V.
43 Fiscal unitThe shareholder constitutes a fiscal unit for corporate income tax and turnover tax purposes with the vast
majority of its Dutch subsidiaries and, as such, is jointly and severally liable for the tax liability of the tax group as
a whole. The other companies that form part of the tax group are charged corporate income tax as though they
were independent taxpayers.
The corporate income tax is recharged or allocated within the fiscal unit.
44 EmployeesA specification of personnel expenses is shown below:
in duizenden euro's 2017 2016
Wages and salaries 31,644 32,713
Social security premiums 4,990 4,886
Pension costs 4,688 4,647
Other personnel costs 1,796 2,466
Totaal 43,118 44,712
The average number of FTEs with permanent employment contracts during 2017 amounted to 633 (2016: 646).
The average number of temporary staff in FTEs at year-end 2017 amounted to 380 (2016: 348).
45 Related-party transactionsSee note 24 Related party transactions in the consolidated financial statements for details.
46 Remuneration of the members of the Board and Supervisory BoardThe total amount charged to the company for the remuneration of current and former General Management
members, including pensions, in 2017 was EUR 0.8 million (2016: EUR 0.8 million), and for the Supervisory Board
in 2017: EUR 0.2 million (2016: EUR 0.2 million).
108 2017 Annual Report of The Greenery B.V.
47 List of subsidiaries and associatesAs at 31 December 2017 the most significant subsidiaries and associates included the companies listed below. A
full list of subsidiaries and associates has been filed with the Chamber of Commerce in Rotterdam.
Subsidiaries Registered office Share in capital (%)
Hollander Barendrecht B.V.1 Barendrecht 100
Disselkoen Airfreight B.V.1 De Lier 100
Greenery Produce B.V.1 Barendrecht 100
E. van den Berg&Zonen B.V.1 Barendrecht 100
Hagé International B.V.1 Barendrecht 100
Dalice Qingdao Trading Company Ltd. Hong Kong 70
Hoogsteder Groenten en Fruit B.V.1 Utrecht 100
Greenery UK Ltd. Huntingdon (GBR) 100
Greenery España S.A. Carlet Valencia (ESP) 100
Internationaal Transportbedrijf Dijco B.V.1 Delft 100
J.H. Wagenaar B.V.1 Zwaagdijk 100
Greenery Italia Srl. Verona (ITA) 100
Greenery Vastgoed B.V.1 Den Haag 100
Greenery Produce Holding B.V.1 Barendrecht 100
PTLA Holding Participacões LTDA Beberibe (BRA) 100
AssociatesHoudstermaatschappij Verpakkingen B.V. Zoetermeer 78.572
Inova Fruit B.V. Geldermalsen 49.50
Branches Location CountryThe Greenery B.V. Breda Nederland
Bleiswijk Nederland
1 Part of the fiscal unit of The Greenery B.V.
2 There is no dominant control on the basis of the provisions of the articles of association.
Barendrecht, 5 April 2018
General Management Supervisory BoardS.A. Martina (CEO) B.J. Feijtel (chair)
P.R. Philip Limvers (CFO) G.W. Pronk (vice-chair)
E.D. Drok
T.W. van Noord
A.E. Ter Laak
N. Peeters
1092017 Annual Report of The Greenery B.V.
Other information
Articles of Association provisions governing profit appropriationUnder Article 38 of the Articles of Association, the profit is appropriated as follows:
Article 38 Profit1. With respect to each class of Shares, a dividend reserve is held for the benefit of the holders of those Shares,
which reserve shall be identified by the same letter as the associated Shares.
2. From the profit generated in the most recent full financial year, the dividend reserve maintained on behalf of
the holders of Class B cumulative preference Shares shall, if possible, be increased by the percentage stated
below of the nominal amount paid up on the Class B cumulative preference Shares. If, in any year, the profit
does not allow the addition referred to in the previous sentence to be effected, or only in part, the deficit shall
be added to the dividend reserve maintained on behalf of the holders of Class B cumulative preference
Shares and taken off the profit of subsequent years.
3. From the profit that remains after application of Article 38.2, if and to the extent permitted by such
remaining profit, each of the dividend reserves shall be increased by an amount that equals the percentage
stated below of the relevant dividend reserve as at the end of the financial year. If the amount of a dividend
reserve has varied over the course of a financial year, the addition from the profit shall be calculated over the
average reserve for that year. To determine the amount of the addition from the profit, the dividend reserve is
increased by the amount by which it is to be supplemented pursuant to the second sentence of Article 38.8.
The percentage referred to in Article 38.2 and in this paragraph equals the interest rate percentage
applicable at the end of the financial year concerned to a government loan with a term to be determined by
the General Meeting, plus one per cent.
4. Any profit that remains following the addition from the profit in accordance with Article 38.3 shall be at the
disposal of the meeting of holders of ordinary Class A Shares, which shall be free to add all or part of the
remaining profit to the Distributable Reserves.
5. Any profit not reserved in accordance with Article 38.4 by the meeting of holders of ordinary Class A Shares
shall be added to the dividend reserve which is maintained on behalf of the holders of ordinary Class A
Shares.
6. The General Meeting shall only be able to cancel all or part of a dividend reserve on behalf of the holders of a
particular class of Shares upon a proposal to that effect by the Holders of that class of Shares, subject to the
provisions of Article 38.9. In that case, the amount cancelled shall be distributed to the holders of shares of
that particular class in proportion to the paid-up nominal amount of their Shares of that class.
7. The General Meeting shall be free at all times to make additions to the dividend reserves of a particular class
at the expense of the Distributable Reserves. The addition shall be effected in such a way that each of the
dividend reserves shall benefit from it in proportion to the nominal amounts paid up on the Shares of that
class, without prejudice to the provisions of Article 38.8, second sentence.
8. The General Meeting shall cancel all or part of a dividend reserve for the purpose of offsetting incurred
losses. If a dividend reserve has been used to offset a loss, no dividend shall be distributed other than
through cancellation of a dividend reserve in the manner referred to in Article 38.6, nor shall any reservation
or addition to another dividend reserve be effected, as long as the amount withdrawn in order to offset the
loss has not been added to that dividend reserve. Exceptions to this rule are possible if unanimously endorsed
by the General Meeting. If the amount used to offset a loss was withdrawn from more than one dividend
reserve, an addition to the relevant reserves shall be made as referred to in the second sentence of Article
38.7, in proportion to the withdrawals.
9. Additions or distributions from the profit shall not exceed the amount of the Distributable Reserves. A
decision seeking to make distributions will have no consequences until such time as the General
Management has granted approval. The General Management refuses to grant approval only if it is aware or
is expected to foresee that the Company will be unable to continue to pay its due and payable debts following
distribution. The provisions of Book 2, Section 261 of the Dutch Civil Code apply if the Company is unable to
pay its due and payable debts following distribution.
10. Additions or distributions from the profit shall not be effected until after adoption of the financial statements
that demonstrate their justification.
110 2017 Annual Report of The Greenery B.V.
11. The General Meeting may decide to provide an interim addition or distribution from the profit, with due
regard for the provisions of Article 38.9.
12. Subject to the provisions, mutatis mutandis, of Article 38.9, the General Meeting may decide to effect
distributions from a non-statutory reserve.
13. The Shareholder's distribution claim shall lapse after five years.
1112017 Annual Report of The Greenery B.V.
Independent auditor’s reportTo: the General Meeting and the Supervisory Board of The Greenery B.V.
REPORT ON THE ACCOMPANYING FINANCIAL STATEMENTS
Our opinionWe have audited the financial statements 2017 of the The Greenery B.V., based in Barendrecht.
In our opinion the accompanying financial statements give a true and fair view of the financial position of The
Greenery B.V. as at 31 December 2017 and of its result for 2017 in accordance with Part 9 of Book 2 of the Dutch
Civil Code.
The financial statements comprise:
1. the consolidated and company balance sheet as at 31 December 2017;
2. the consolidated and company income statement for 2017;
3. the notes comprising a summary of the accounting policies and other explanatory information.
Basis for our opinionWe conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our
responsibilities under those standards are further described in the ‘Our responsibilities for the audit of the
financial statements’ section of our report.
We are independent of The Greenery B.V. in accordance with the Wet toezicht accountantsorganisaties (Wta,
Audit firms supervision act), the ‘Verordening inzake de onafhankelijkheid van accountants bij assurance-
opdrachten’ (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and
other relevant independence regulations in the Netherlands. Furthermore, we have complied with the
‘Verordening gedrags- en beroepsregels accountants’ (VGBA, Dutch Code of Ethics).
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
REPORT ON THE OTHER INFORMATION INCLUDED IN THE ANNUAL REPORT
In addition to the financial statements and our auditor’s report thereon, the annual report contains other
information that consists of:
• key statistics in 2017, key figures, highlights 2017 and foreword;
• report of the management board;
• governance, including the report of the Supervisory Board;
• other information pursuant to Part 9 of Book 2 of the Dutch Civil Code.
Based on the following procedures performed, we conclude that the other information:
• is consistent with the financial statements and does not contain material misstatements;
• contains the information as required by Part 9 of Book 2 of the Dutch Civil Code.
We have read the other information. Based on our knowledge and understanding obtained through our audit of
the financial statements or otherwise, we have considered whether the other information contains material
misstatements.
By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil Code and
the Dutch Standard 720. The scope of the procedures performed is less than the scope of those performed in our
audit of the financial statements.
The management board is responsible for the preparation of the other information, including the report of the
management board and other information in accordance with Part 9 of Book 2 of the Dutch Civil Code.
112 2017 Annual Report of The Greenery B.V.
DESCRIPTION OF RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS
Responsibilities of management board and the Supervisory Board for the financial statementsThe management board is responsible for the preparation and fair presentation of the financial statements in
accordance with Part 9 of Book 2 of the Dutch Civil Code. Furthermore, the management board is responsible for
such internal control as the management board determine is necessary to enable the preparation of the financial
statements that are free from material misstatement, whether due to errors or fraud.
As part of the preparation of the financial statements, the management board is responsible for assessing the
company’s ability to continue as a going concern. Based on the financial reporting framework mentioned, the
management board should prepare the financial statements using the going concern basis of accounting unless
the management board either intend to liquidate the Company or to cease operations, or has no realistic
alternative but to do so. the management board should disclose events and circumstances that may cast
significant doubt on the company’s ability to continue as a going concern in the financial statements.
The Supervisory Board is responsible for overseeing the company’s financial reporting process.
Our responsibilities for the audit of the financial statementsOur objective is to plan and perform the audit assignment in a manner that allows us to obtain sufficient and
appropriate audit evidence for our opinion.
Our audit has been performed with a high, but not absolute, level of assurance, which means we may not have
detected all material errors and fraud during our audit.
Misstatements can arise from fraud or errors and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of the financial
statements. The materiality affects the nature, timing and extent of our audit procedures and the evaluation of
the effect of identified misstatements on our opinion.
We have exercised professional judgement and have maintained professional scepticism throughout the audit, in
accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit
included e.g.:
• identifying and assessing the risks of material misstatement of the financial statements, whether due to errors
or fraud, designing and performing audit procedures responsive to those risks, and obtaining audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from errors, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control;
• obtaining an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Company’s internal control;
• evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the management board;
• concluding on the appropriateness of management’s use of the going concern basis of accounting and based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the company ceasing to continue as a going concern;
• evaluating the overall presentation, structure and content of the financial statements, including the
disclosures; and
• evaluating whether the financial statements represent the underlying transactions and events in a manner
that achieves fair presentation.
1132017 Annual Report of The Greenery B.V.
Because we are ultimately responsible for the opinion, we are also responsible for directing, supervising and
performing the group audit. In this respect we have determined the nature and extent of the audit procedures to
be carried out for group entities. Decisive were the size and/or the risk profile of the group entities or operations.
On this basis, we selected group entities for which an audit or review had to be carried out on the complete set of
financial information or specific items.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant findings in internal control that we
identify during our audit.
Eindhoven, 5 April 2018
KPMG Accountants N.V.
M.H.C.J. Regouw RA
114 2017 Annual Report of The Greenery B.V.
Glossary of Terms and AbbreviationsAGFThe Dutch abbreviation for potatoes, fruit and
vegetables or fresh produce.
Bee DealsThe brand name Bee Deals refers to the various
measures taken by The Greenery's growers to create
an optimum living environment for bees.
BiodiversityBiodiversity is the balance in the variety of plant and
animal life. Organic cultivation and a wide variety of
fruit and vegetables offer insects, including bees, a
wide range of food to choose from.
BiologicalThe cultivation of crops in soil using only natural and
auxiliary materials and organic crop protection. The
product specialists of the Naturelle product unit offer
organic fruit, vegetables and mushrooms from the
Netherlands and abroad. The main products within
this product unit are tomatoes, cucumbers, peppers,
aubergines, cauliflower, broccoli and mushrooms, but
our entire range of fruit and vegetables is available as
organic produce.
Gross contributionNet revenue minus cost of sales and subcontracted
work
Category managementThe strategic management of product groups on a
cooperative basis aimed at determining the optimum
composition of the category to maximise consumer
value.
PackagesIndividual packaging units.
CO2
The chemical formula for carbon dioxide. CO2
emissions are mainly generated by burning fossil fuels.
Examples are heating, gas and electricity.
DCDistribution centre.
Sustainable development goalsThe sustainable development goals (SDGs) are 17
global goals for sustainable development for the
2015-2030 period adopted by the 193 United Nations
Member States. The sustainable development goals
aim to end extreme poverty, fight inequality and
injustice and stop climate change. They apply to all
countries and to all people.
Sustainable cultivationHealthy cultivation is sustainable cultivation. What is
good for the natural environment, is good for
mankind.
EBITDAEarnings Before Interest, Taxes, Depreciation and
Amortisation.
FTEFull-time equivalent; an FTE represents one full-time
job in an organisation.
Fruit royaltyA payment made for club varieties for the use of
intellectual property rights for the fruit trees and their
products to which grower's and/or trademark rights
are attached.
Packaging warehouseA warehouse where all packaging material and crates
in which fruit and vegetables are packed and
transported are stored and, where relevant, washed
(packaging washing plant).
Greenhouse vegetablesGreenhouse vegetables refer to all vegetables grown in
greenhouses, ranging from volume produce to
exclusive specialty produce, such as tomatoes,
cucumbers, peppers, courgettes, aubergines and
chillies. In cooperation with our growers, we also
produce special varieties based on consumer demand.
Snack vegetables, such as small tomatoes, cucumbers
and peppers in handy packaging are a prime example.
GlobalG.A.P.Global Good Agricultural Practice, an international
scheme which sets standards for food safety, hygiene,
working conditions, tracking & tracing and
sustainability for fruit and vegetable producers.
CMO (Common Market Organisation)The European Union Member States promote the
development of agriculture and horticulture based on
1152017 Annual Report of The Greenery B.V.
a common EU policy. There is a Common Market
Organisation for the fruit and vegetables sector (Fruit
and Vegetables CMO). Recognised producer
organisations in the fruit and vegetables sector are
eligible for CMO grants.
GRASP (GlobalG.A.P. Risk Assessment onSocial Practice)A voluntary assessment in addition to the GlobalG.A.P.
audit concerning social and ethical circumstances at
the Global G.A.P. certified company.
GRIThe Global Reporting Initiative is the international
guideline for sustainability reporting.
Growing TogetherThe new strategy adopted by The Greenery for
2017-2020. The Greenery aims to grow together with
its clients and growers. We can achieve this by further
increasing our focus on the client, emphasising an
integrated approach to the supply chain, and adding
maximum value to our products and services: 'Growing
Together'. This strategy is underpinned by four pillars:
collaboration, quality, innovation and sustainability.
Top fruitAll varieties of apples and pears are classified as top
fruit. The Greenery invests in the Junami apple club
variety and in Sweet Sensation pears.
IDHThe Dutch abbreviation for the Sustainable Trade
Initiative of Dutch supermarkets and trading
companies.
ImportsThe Greenery imports exotic fruit, citrus fruit and
subtropical fruit all year round just as all other
products that do not grow in the Netherlands in
certain periods. Under the Hagé International brand
name we source produce directly from growers and
producers across the globe.
Supply chain managerAs the supply chain manager, The Greenery manages
its logistics chain. The supply chain manager's primary
task is to ensure optimum synchronisation of the
various links in the supply chain.
LEANA management method aimed at improving the
efficiency of working methods. The LEAN method is
used primarily to develop a customer-focused, flexible
way of working and to eliminate wastage as far as
possible.
CSR (corporate social responsibility)Business practice aimed at economic performance
(profit) with respect for social aspects (people) within
ecological parameters (planet).
Participation ActThe aim of the Participation Act (Participatiewet) is to
enable as many people as possible with or without an
occupational impairment to find work. The act
replaces the Work and Social Assistance Act (Wwb),
the Sheltered Employment Act (WSW) and a large part
of the Work and Employment Support (Young Disabled
Persons) Act (Wajong).
PlanetProof (formerly 'Milieukeur')PlanetProof is a quality mark for fruit, vegetables,
flowers, plants, trees and flower bulbs grown on the
basis of more sustainable cultivation methods.
PlanetProof requires farmers and market gardeners to
go the extra mile to achieve cleaner air, fertile soil,
good water quality and boost nature in agriculture.
Re-exportProduce which is imported from an overseas territory
and subsequently re-exported.
RJDutch Annual Reporting Guidelines
SAPSysteme, Anwendungen und Produkte in der
Datenverarbeitung, an integrated information and
control system in which business processes are
documented and managed.
SolvencyThe debt to equity ratio.
SourcingPurchasing activities aimed a securing the supply of
products to be purchased, with a focus on the longer
term. Sourcing involves conducting market research
on purchasing and seeking alternative sources.
Staple productsProducts that are usually lifted and cut in large
volumes at the end of the season and subsequently
stored in a cool storage facility.
116 2017 Annual Report of The Greenery B.V.
Supply Chain Management (SCM)Integrated supply chain management, based on
process improvement and collaboration with supply
chain partners to create improved and more efficient
functionality.
Home-based transhipmentLoading and transporting produce directly from the
grower to the customer without the intervention of
one of The Greenery's distribution centres.
Verse Oogstwww.verseoogst.nl is the online platform of The
Greenery's growers where consumers can find
extensive information about fruit, vegetables and
mushrooms. Verse Oogst provides complete product
information and the most delicious recipes for
preparing products offered.
Rich soil produceOur rich soil produce includes all lettuce varieties as
well as leafy vegetables, cabbages, root vegetables,
tuber vegetables and stem vegetables. Staple products
such as white and red cabbage are included in the
product range.
Seed companiesThe parties that process or refine seeds to influence
certain characteristics of fruit and vegetables.
Soft fruitSoft includes strawberries and a full range of stone
fruit and woody small fruit such as cherries, rhubarb,
peaches, plums, red currants, blueberries, blackberries
and raspberries. Asparagus also falls into the Soft Fruit
product category.
Sickness absenceAbsence from work due to sickness or another
disorder.
1172017 Annual Report of The Greenery B.V.
68 Footer
MORE INFORMATIONWe would be pleased to receive any questions, comments or suggestions at the following address:
The Greenery B.V.
Spoorwegemplacement 1, Barendrecht, The Netherlands
P.O. Box 79, 2990 AB Barendrecht, The Netherlands
Telephone: +31 (0)180 65 59 11
E-mail: [email protected]
www.thegreenery.com
This Annual Report is a translation of the Dutch Annual Report, which is the official version.
Please note that in case of discrepancies, the Dutch version will prevail.