Retail developments in the Czech Republic since entry to EU a decade ago

JESPER LAURIDSEN CEO, Ahold Czech Republic March 18, 2014

Albert hold in the Czech Republic at a glance

Albert ´ s 3 promises to associates

One of the largest employers

• Albert, the Czech grocery operation of Ahold, employs around 13 000 associates • Albert operates 284 stores • Meets the needs of customers in all regions of the Czech Republic • Last week, we announced the acquisition of the 50 stores of Spar in the Czech Republic

Cooperation with local suppliers

• Products of Czech regional suppliers form the main part of our assortment • In total more than 2500 Czech & international suppliers and partners • The Albert chain, in line with its strategy, pays strong attention to the quality and freshness of food

Albert as a better place for a purchase

• Two formats — Supermarkets (1 000 sq.) — Compact stores (3 000 sq.) + big number of locations • Focus on wide choice of products of high quality standards • Friendly and communicative staff 2

Modern Retail in Central Europe

• Retail first privatized sector of the Czech economy (beginning of 90s). These days Czech retail sector one of the most developed and most modern of Europe • Retail pioneer for movement of goods, services & people across the borders • The retail has been helpful to: o

Cross country trade

o

Cultural understanding

o

Wider assortment and choice for customers

o

European Quality & Standards

o

Etc.

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Important & Integral part of retail society today

Highlights of the Czech Retail 11,1% contribution to the GDP The second biggest employer (16% with more then 0,5 million employees) Up to 16% of household consumption expenditure goes to retail Annual turnover for retail sales reached almost 52 billion EUR The investment since the 90s has reached 22 billion EUR International business one of the first and most significant investors in CR Support of regional suppliers and domestic producers Top in the European league in number of stores Social responsibility programs, modern technologies

Sources: INCOMA Gfk, EuroCommerce material „Shopping for Growth, CCCT CR

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Albert proud to be part of Czech retail Significant progress made in the retail sector. Important to keep the positive momentum.

Act on Significant Market Power Amendment of the Law on Food Others 5

THANK YOU!