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Annual Report 2010 1

Respect for Entrepreneurship

Abridged 2010 Annual Report

2 FloraHolland Annual Report 2010 3

The cooperative flower auction exists by the grace of the entre

preneurship of its members. They are the ones who have been

implementing the cooperative idea for more than a century. Their

efforts have produced a marketing organization that has been

contributing to entrepreneurship in floriculture for almost one

hundred years.

Since FloraHolland exists for and is run by its members, respect for

entrepreneurship is the theme of this Annual Report. You will see the

photographs of five of our members. All of them are proud of their

business and their product. FloraHolland is, too; for entrepreneurship

is the foundation of the auction cooperative.

The cover photo is of Aad Vreugdenhil of Kwekerij Vreugdenberg,

Kalanchoe grower.

Respect for Entrepreneurship


Cooperative Board and Management Board

Foreword 7

About FloraHolland 8

A year of extremes 10

A cooperative for members 16

Unity and diversity 20

FloraHolland and CSR 26

Corporate Governance 32

Introduction to the Annual Accounts 36

Report of the Supervisory Board 41

Table of Contents

You have in front of you the summary of the 2010 Annual Report. FloraHolland’s full 2010 Annual Report, containing

the 2010 Annual Accounts, can be found at www.floraholland.com (in Dutch). FloraHolland has chosen to do so for

reasons of corporate social responsibility and sustainability, as well as for cost considerations.

Erik Persoon, Vice-ChairmanBernard Oosterom, Chairman

Else van den Beukel,

Board Member

Tom van der Houwen,

Board Member

Erik Leeuwaarden,

Financial Director

Gert van der Pligt,

Board Member

Cees de Wit,

Board Member

Mariëlle Ammerlaan, Secretary

Joris Elstgeest, Board Member Louis Bouman,

Board Member

Rens Buchwaldt, Director for

Logistics, Information Technology,

and Automation

Timo Huges, General Manager

Table of Contents

Annual Report 2010 76 FloraHolland

The first cooperative flower auction in the Netherlands was established at the end of 1911. This centennial

commemoration gives us pause to be proud and grateful. The cooperative principle connects us with earlier generations.

Back then, people worked together to strengthen the market position of their companies, and we continue to do so.

Indeed, FloraHolland is the result of their joint efforts. It is an organization that organizes marketplaces and a supply

chain infrastructure; offers commercial, logistic, administrative, and IT services; and acquires and disseminates

knowledge — all with one goal in mind: getting the highest possible price for the products of its members.

The recovery of the floriculture market was, compared with a poor 2009, better than expected. Nonetheless, for many

growers and traders, the recovery was insufficient for healthy business operations. The effects of circumstances involving

force majeure (weather and natural disasters) were also felt. Nonetheless, 2010 can enter the books as a good year for

FloraHolland. The export auctions are increasingly becoming a single marketplace thanks to synchronized auction times

and harmonized services and systems. Proper consultation broadened the degree of support for image auctioning and made

further implementation possible. By adopting different methods, FloraHolland Connect is connecting its specific market and

market segment knowledge better with particular products, concepts, and the market demands of growers and customers.

In this Annual Report the Cooperative Board and Management Board provide an account of their policy pursued in 2010.

Special attention is paid to corporate governance, risk management, and sustainability. Based on the core values of

courage, clarity, sustainability, and service, the cooperative basis continues to be implemented and still has a future.

This Report provides a picture of that.

Mariëlle Ammerlaan Timo Huges

Secretary General Manager

Cooperative past, cooperative future

Foreword

Foreword


FloraHolland is an open marketplace where growers can offer their flowers and

plants to buyers who export globally. FloraHolland is the world’s leading floriculture

knowledge centre.

Our members receive:

• 100% sales security

• 100% payment security

• a system of concentrated supply of and demand for a broad and deep assortment

• standardized and custom services

FloraHolland is committed to a sustainable future through healthy growth, its concern

for people and the environment, and the care it takes to maintain employment

opportunities.

The focus here is on:

• Both basic and custom services

• Reinforcing internationalization strategies (stimulation of production and sales)

• Modernizing sales through the auction clocks (virtualization)

• Intensifying direct sales

• Streamlining chain processes

• Improving quality

• Enriching the assortment

• Reinforcing the development of products and concepts

• Employee development

• Leading in employment practice

This is how the Dutch flower and plant industry is described globally. The Netherlands has a tremendous reputation

as a highquality producer and supplier of flowers and plants. The Dutch horticulture cluster, although not untouched

by the economic crisis, is considered to be a global leader. There is a good reason why Greenport Holland is the

thirdgreatest economic ‘mainport’ of the Netherlands.

Core values

FloraHolland is charting a clear

course. We are constantly working on

improving our services as expected

by our customers and which they

may demand of us. This is based on

a clear philosophy consisting of four

core values that give direction to our

actions. And in this light, customers

can hold up a mirror to us and hold

us accountable to them.

For 100 years FloraHolland has directed its services to all its suppliers and

buyers both nationally and internationally. Annually 12 billion flowers and plants

are purchased by approximately 3,000 customers. Ornamental plants have a

production value of € 4.9 billion and an export value of € 5.9 billion. A total of

€ 1.2 billion worth of ornamental plants are imported.

The horticulture industry as a whole is responsible for 21% of the surplus of

the Dutch balance of payments. Dutch breeding generates a broad and deep

assortment. While 75% of the turnover in cut flowers is produced on Dutch soil,

the remaining 25% is produced elsewhere and imported from — by now — sixty

other countries.

The Dutch floriculture industry, thanks to its global trade concentration,

determines the global standards regarding products, quality, and the

environment.

Product innovation and strict quality policies lead to high-quality and sustainably

produced flowers and plants. FloraHolland is involved in the chain-wide search

for logistics and e-business solutions. The FloraHolland marketplaces are linked

through a strong commercial, logistics, and ICT network.

The FloraHolland cooperative is the solid foundation underlying the collaboration

within the global floriculture chain.

Imposing

100% guaranteed

Global market leader with strong Dutch roots for 100 years

The Future

FloraHolland Cooperative

The cooperative flower auction FloraHolland offers growers and customers a network of six national and international

market places (Aalsmeer, Naaldwijk, Rijnsburg, Bleiswijk, Eelde, and Veiling Rhein-Maas), a national intermediary organization

(FloraHolland Connect) and an internationally active Import department. Veiling Rhein-Maas (Herongen, Germany) is a joint

venture between FloraHolland and Landgard. The cooperative numbers 5,000 members worldwide.

We make it possible for our members to receive the highest possible price for their flowers and plants at the lowest possible sales

costs. In order to reach our goal, we have organized a comprehensive network of marketplaces and distinguishing services.

Core values of FloraHolland

Providing services

By listening well and continuing to

ask questions, contributing relevant

ideas and resolving problems, we

contribute to the success of our

customers.

Courage

We dare to give our opinion,

innovate, take risks, and might make

mistakes in the process. When we

make ourselves vulnerable, we are

able to learn.

Clarity

We act with clarity and transparency,

are open to one explanation, make

choices, and explain why. We honor

agreements and call others to

account.

Sustainability

We work on continuity for our

customers, are trustworthy, and take

responsibility. We are an involved

partner in our work on behalf of our

customers and society.

Over FloraHolland About FloraHolland

‘FloraHolland is the world’s leading floriculture knowledge centre’


A year of extremes There is no better word to summarize 2010 than ‘uncertain’.

This was reflected in the economic recovery, the market prices, and the prices of flowers and plants; it also applied to politics and society, as well as the confused public opinion which shifted from incident to incident. Even Mother Nature was uncertain: earthquakes, volcanic eruptions, floods, winter weather… we had everything in 2010. Not surprisingly, such a tempestuous year meant that it was also anything but calm for floriculture. And although there were uncertainty and concerns in our sector too, FloraHolland kept a steady course throughout.

Walter Zuiderwijk van Kwekerij Zuiderbaak in Honselersdijk, teler van tuinplanten.


2010 started in typical winter fashion,

but was accompanied by poor prices.

Prices later improved, especially when

an ash cloud from a volcanic eruption

in the spring made air traffic (and the

supply from our import countries)

impossible. While the cool summer

kept prices high, 2010 ended in winter

fashion. Consequently, auction turnover

did not grow with the previously fore-

cast nine per cent, but rather by barely

seven per cent. Still, flower and plant

consumption devel oped well, even if the

business market had not yet returned to

pre-crisis levels.

At the national level, previously started

trends continued. Growth in Germany,

also a strong market during the crisis,

held steady. The UK showed signs of

recovery after a disastrous 2009.

Exports to Eastern Europe grew twice

as fast as the average. In fact, Eastern

Europe is currently the growth market

par excellence for our floriculture. By

contrast, exports to France, Italy, and

Denmark were disappointing.

Some market recovery, but not enough

The growth figures were satisfying. In 2010, consumers continued to buy flowers

and plants, but not all product groups posted a positive result. The figures for

roses, lilies, and chrysanthemums were inadequate, and it appears that green

garden plants are out of favor. And all the while, business costs continue to rise.

Growers and traders are finding it more difficult to arrange proper financing for

their businesses. Banks are demanding more security and the low interest rate

seldom followed through to low financing charges. Foreign growers also had a

difficult year. In Colombia, production capacity declined by 20 per cent, and in

Ecuador by 10 per cent. There were stragglers in Israel, too. In Eastern Africa,

production capacity remained stable. As a result of these developments, the

share of import flowers in the turnover of FloraHolland

declined for the first time in years.

In light of these developments, respect for the entrepreneurship of growers and

traders is called for. By quickly anticipating changing circumstances, they keep

their businesses futureproof. Unfortunately, not all companies in the sector

were able to survive 2010.

Cooperative sales continue to form the basis for entrepreneurship in floriculture.

The cooperative’s members get the highest possible price from the market, where

businesses can find the entire supply. To keep that system strong, many commer

cial activities have been tightened up and improved. The continuing virtualization

of sales is bringing grower and end customer closer together. Some growers want

to be in contact with end customers and are increasingly connected with them

via webshops and through the design of shelving plans and concepts. New forms

of cooperation are being created — within and between growers’ associations, as

well as with exporters and end customers. In a spirit of respect for the role and

position of wholesalers, FloraHolland aims to arrive at optimum supply chain

results with growers and customers.

The virtualization of sales continues, including via webshops, while Remote Buying (KOA) is experiencing rapid growth. By the

end of 2010, roughly 2200 KOA systems had already been issued and some 40 per cent of the overall auction clock turnover

was being realized via KOA. The number of large trading companies that have their buyers make purchases in their own dealing

rooms (and no longer in the stands) is growing quickly, totaling roughly 40 companies at the end of 2010. Still, there were some

objections to the quick introduction of image auctioning. For that reason, a product group is only now being image auctioned

provided there is enough support among interested parties, the average reliability index of that product group has reached a

minimum threshold, and enough growers provide images with their product. In that regard, the uniform image database was a

positive step. At special workshops, growers were able to familiarize themselves with the opportunities of doing business digitally.

The auction clock has been strengthened in other ways besides. In Aalsmeer two old auction rooms were closed. The products

that had been auctioned there were moved to two existing auction rooms that had been renovated for that purpose. Eleven of

the 25 cut flower clocks are now used for image auctioning at the Aalsmeer, Naaldwijk and Rijnsburg export auctions. Projection

auctioning was introduced (early in 2011) at Bleiswijk and Eelde. At Veiling Rhein-Maas in Herongen, two image auction clocks

were added, making it possible to auction via eight clocks. Virtual sales via PlantConnect and FloraHolland e-Trade doubled and

the systems were upgraded further. Thanks to this virtual system, growers bring their product to the attention of traders and end

customers, the latter via links to webshops.

Two winters and an ash cloud

Veiling RheinMaas

A significant event for the EU region

around Venlo was the launch of the

auction Veiling Rhein-Maas, a collabo-

ration with the German Landgard sales

cooperative. Thanks to the merger of

the German (Herongen and Lüllingen)

and the Dutch (Venlo) auction clocks,

a strong clock auction was created in

Herongen. Veiling Rhein-Maas operates

largely with the auction systems of

FloraHolland. The decision to use these

systems meant a huge effort had to be

made to ensure Herongen had properly

functioning systems and sufficient

numbers of trolleys and enough

packaging in due time.

The creation of Veiling Rhein-Maas

was a complex process. Landgard and

FloraHolland have different visions of

their position in the market. Three

auctions in two countries had to be

brought together and, as always, the

collaboration has advantages and

disadvantages at the individual level.

Now, Veiling Rhein-Maas is able to prove

its worth with a strong product supply

in a strong market.

Continuing development of image auctioning

‘Achieving optimum supply chain results with growers and customers’

12 FloraHolland

A year of extremes A year of extremes


Growers also see the benefits of having a business relationship with FloraHolland at the international level. In 2010, FloraHolland

strengthened its position in the sales of import flowers. This was due in part to the acquisition of the TFA import auction. TFA’s

supply was integrated flawlessly into that of the export auctions and made a contribution to the strengthening of the market-

place. Later in the year FloraHolland took a minority interest in the import handling company BSZ, which resulted in greater

efficiency in product handling.

International suppliers focus their sales on FloraHolland thanks to the purchasing power of the auction clocks, the commercial

and logistic services, and the payment security provided by the cooperative. More and more international suppliers opt for

membership and request specific services appropriate for their supply and their market. The chain is interested in the tracking

& tracing systems offered by FloraHolland. These systems follow the entire path taken by the product — from the nursery abroad

to the auction in the Netherlands. In certain cases, international suppliers posed fundamental questions concerning the services.

These issues were discussed in 2010 and a relevant policy will have to be developed starting in 2011.

The three export auctions are increasingly forming a single marketplace. Many

buyers are already using them as such, certainly when buying in dealing rooms.

In 2010 that lead to further synchronization of the auction schedules and to

harmonization of the auction intervals. Together with the Concern Logistics

department, the export auctions developed a joint vision on logistics and customer

service. Uniformity is also being created in systems and logistical resources.

A uniform Remote Buying (KOA) system is planned for 2011. A new auction system

will be ready in 2013, as well as a uniform invoicing system. Uniform auction

trolleys will arrive at the end of 2012, and all business contacts of FloraHolland

have had a uniform customer number since the start of 2010. All this will enable

the virtual auctioning of particular product groups at the national level. Final

decisions on this matter will only be made after intensive consultations with

interested parties based on the effects to be anticipated on pricing and the

auction process. The goal is not to have the entire supply of those product groups

converge at one location — as it is growers themselves who determine where they

believe they can find the greatest purchasing power for their products — but

rather to improve pricing by creating a single pricing moment.

At regional auctions, managing

supply is elementary for realizing

good pricing. For that reason,

efforts are being made in Bleiswijk

to achieve demanddriven supply.

It becomes clear in daily contact

with buyers which products are

in demand or not. Based on that

knowledge, growers are then

approached to auction particular

products.

Market segments

FloraHolland Connect upgraded its organization by using market segments as its basic premise. The new approach arose in

part in response to intensive discussions with growers and customers. In order to put our members in the best conceivable

sales position, FloraHolland Connect — with the input of other commercial departments — is collecting relevant data from

the various market segments. With this data, they advise growers on their market approach in the short and long term. Staff

members are no longer connected to specific products, but rather are market specialists. They use all the information and

services of FloraHolland — from market information to shelving development. One of the areas where progress is being made

is learning to understand large-scale retail. For that reason, FloraHolland Connect is now more than ever a discussion partner

for retail companies — as a service provider and consultant, and not as a supplier.

Based on its segments approach, FloraHolland Connect created new services packages and made its facilities provisions

accessible to all members. A new information policy protects commercially sensitive information better against undesired use.

From a commercial point of view, FloraHolland focuses not only on large-scale retail. Whereas this is important, other sales

channels are also experiencing growth. The Netherlands has flowers and plants for every sales segment and FloraHolland

facilitates those sales.

Market plans

Market plans for roses, tulips, lilies, chrysanthemums, summer flowers, pot

orchids, and tree nursery products were drawn up. Growers and traders were

interviewed for the SWOT analysis for each product. Task forces of growers and

product marketing teams of auction people were created for the execution of

the market plans. FloraHolland also helped in preparing product promotion

campaigns: for summer flowers, lilies, tulips, and orchids.

Three export auctions, one marketplace


Ongoing internationalization

Demanddriven supply

14 FloraHolland

These seven market plans represent almost

of the total sales of FloraHolland.

60%

A year of extremes A year of extremes


FloraHolland is een coöperatie voor haar leden. Dat uitgangspunt krijgt de laatste jaren meer en meer gestalte in het beleid van bestuur en directie.

A cooperative for members

Jan van Rijssel van v.o.f. J.J. van Rijssel in Lisserbroek, broeier van tulpen.


‘...secure as

much supply

as possible via

membership...’


Members, nonmembers, and obligations

The introduction of the basic commission at the start of 2010 has made it possible to obtain an overview of what proportion

of the auction costs is earmarked for maintaining the auction system as such. Fundamental discussions were held in 2010

regarding other relevant member issues. FloraHolland is a members’ cooperative. Of the Dutch supply, more than 90 per

cent comes from its members. For the import supply, this percentage is roughly 60 per cent but growing. FloraHolland aims

to keep the marketplace strong and broad, as that is the best guarantee for optimum pricing. The auction aims to secure as

much supply as possible via membership. To that end, a new policy was formulated in 2010. The difference in the level of the

auction commission between members and nonmembers was increased. The fees for nonmembers take more into account

the extent to which suppliers commit to the cooperative sales and the regularity with which they supply it. Better monitor

ing is in place to prevent market disruptions due to supply by nonmembers. Members receive preferred access to services,

such as participation in trade fairs, concept development, and personalized sales. FloraHolland, however, still grants access

to nonmembers. Some suppliers simply cannot become a member due to their sales patterns or their corporate structure,

while their products might be a desirable supplement to the auction supply for customers.

While members of FloraHolland sell their products at the lowest imaginable costs via FloraHolland, they also have an

obligation to sell. FloraHolland has a policy to counteract NAT conduct (i.e. attempts to bypass the auction). Each year, a

group of suppliers (appointed at random) supplies FloraHolland with an audit certificate regarding their turnover. If, upon

comparison, it becomes evident that there are discrepancies with the auction administration, discussions will follow.

The Board may impose a retrospective commission on NAT sales on members. Previously, that commission amounted to

1.4 per cent (the amount of the basic commission) on the unreported turnover. But now, the Board may levy an additional

charge on the NAT sales and, if necessary, terminate membership. The aim of tightening this policy is to protect the

members that do comply with the regulations and to keep the marketplace strong.

Internationalization: what does it really mean?

Increasingly, the character of the

floriculture sector is becoming more

international. Some growers have a

business in both the Netherlands and

abroad, while other growers work

closely with domestic and foreign

customers and end customers. From

these developments, new challenges

ensue for the members and the

auction cooperative. For instance,

questions arise on the issue of

payment security, and regarding its

extent. Other questions arise regard-

ing growers or FloraHolland offering

extra financing facilities for custom-

ers and end customers.

Conceptually speaking, these topics

and others were discussed in 2010

with the Supervisory Board and the

regional boards. However, the main

basic premise continues to be that

FloraHolland will not become the

owner of the product. During 2011, a

consulting firm is conducting a pre-

liminary study that is meant to pro-

vide more clarity on the question of

how the cooperative can strengthen

the position of its members without

taking up positions regarding the

market itself.

Commitment by members is high on

the agenda of the Cooperative Board,

the Management Board, and the Super-

visory Board. And there were reasons

for that. In the course of 2010, both the

Cooperative Board and the Supervisory

Board discussed this matter. Moreover,

it became evident from signals received

from members that they do not always

feel they are heard well enough. Both the

Cooperative Board and the Management

Board take these signals seriously.

The fact that members are voicing their

criticisms is in line with a societal trend.

Citizens are expressing their opinions

about governments, institutions, and

companies more publicly than ever

before. In addition, for FloraHolland,

mutual differences between the members

have become greater. In the early days,

it was also the case that some members

had larger businesses and others smaller

ones. However, as the auction clock was

very nearly the sole means of making

sales, the cooperative was able to focus

on properly organizing the primary

process. As long as that was done well,

most members had no reason to complain.

Nowadays, various members employ a

range of instruments to make sales, and

the services provided must accordingly

be much broader in scope. For instance,

FloraHolland makes policy for growers

who sell their product solely at clock

auctions, as well as for members from

grower’s associations that want frequent

contact with their end customers. That

inevitably means that certain parts of a

policy are not equally effective or have

a positive effect for everyone. In such

cases, the discussion within the coopera-

tive revolves around not only how to run

the cooperative as well as possible, but

also how to limit certain negative effects

of policy for individual members. In the

present day, when people are quick to voice

their opinion, it should be no surprise that

these discussions arise. For this reason,

the members of both the Cooperative

Board and the Management Board are

heavily involved in consultations with the

cooperative’s members regarding the

preparation and implementation of policy

— in hundreds of personal conversations,

in consultation with the regional boards

and the FPCs (FloraHolland Product

Commissions), during regional meetings,

and at the General Members’ Meeting. In

the first few months of 2011, the potential

for increasing the commitment of mem-

bers was discussed. This might result in

an adjustment and intensification of the

current consultation structures. Resolu-

tions on this will be adopted later this year.

Member commitment — an issue for now and later

A cooperative for members A cooperative for members


FloraHolland is increasingly becoming a single business. Commercially speaking, this is evident from auction and media-tion activities. Growth in unity is also apparent in logistics, facilities manage-ment, and financial matters.

Unity and diversity

Hendrik Hak van Kwekerij Vredebest in Waddinxveen, kweker van coniferen.

Jaarverslag 2010 2322 FloraHolland

Unification of the fleet of auction trolleys started to make good progress in 2010. Modification of the trolleys in Aalsmeer and

Naaldwijk is on schedule. At the end of March 2011, well over 82,000 trolleys had already been converted. Many adjustments to

the logistical systems (including the electric suspended railway system in Aalsmeer) have already been made. The project is on

schedule both time-wise and financially, and is expected to wind up on-budget. And this includes subsequently added improve-

ments to the trolleys. Preparations for another project involving logistical resources were completed in 2010. This project is to

produce cleaner packaging.

The Chip-It relabeling activities were controversial. Container Centralen, owner of the Danish trolleys, is planning to close the

pool of this logistical resource again so that each user contributes to payments for the maintenance of the trolleys and its

quality remains guaranteed. Opposition to these plans arose among groups of growers and buyers who are hesitant about the

extra costs and the extra work if they have to scan Danish containers and also have to have them scanned on delivery.

Since FloraHolland attaches value to maintaining the quality of Danish trolleys, a workable solution was sought — and found.

FloraHolland now indeed scans Danish trolleys and takes them in upon receipt of error messages but will, where necessary,

research the CC use of these suppliers. In that situation, misuse will be traced, but users who act in good faith will not be auto-

matically burdened with extra work or costs. Initial feedback concerning the relabeling activities at the start of 2011 indicates

that the solution that FloraHolland selected is indeed workable.

In 2010 the export locations, Aalsmeer, Naaldwijk, and Rijnsburg, made significant

progress in the area of cooperation. The hallmarks of this progress were synchro-

nized auction times, harmonized services, and simultaneous supply times, as well

as uniform logistical processing of product flows with identical fees and lead times

at all auctions via FloraHolland Connect. All this resonates with the conviction

that growers and customers must be treated the same way everywhere within

one company.

Logistical collaboration is also growing. A voice-directed distribution system was

developed for Naaldwijk and Bleiswijk and taken into service in Naaldwijk. In early

2011, it was taken into service in Bleiswijk as well, and it is currently being tested in

Rijnsburg. The new method is safer, reduces the training period for new employees

and reduces the number of delivery errors in the distribution process.

Throughout all this cooperation, the auctions also have their own responsibilities

towards the growers and traders. The locations pursue their own policies within

the framework of the general FloraHolland policy. For instance, Aalsmeer took

its lead from the other export auctions with a general entry check of flowers and

plants. This is undertaken with RFID hardware on the trolleys, which makes it

possible to track the product throughout the auction procedure. Aalsmeer was

also where the expansion of the refrigerated areas was begun — a project that

will be ready in 2012. In that regard, another FloraHolland standard is being

implemented: products are held in cold storage before they are auctioned.

Real estate: one policy in several locations

Developments involving real estate were positive. During the crisis year 2009, the box space vacancy rate had become

relatively high. Although a full recovery in the sector had certainly not yet occurred, the level of activity at trading companies

was once again increasing as a result of a growing demand for box space and lots. Since then the box space vacancy rate has

returned to normal levels. There were also positive developments at the various trade parks. At the end of 2010, the green light

could be given for the start of construction work at Aalsmeer Oost. Naaldwijk was the location for construction at Trade Park

Westland Venus and just before the year ended lots were acquired from the municipality of Westland for the development of

the next phase of Trade Park Westland, Mars.

The Pyramide Cash & Carry is being renovated both inside and outside. A new construction project was initiated at Flora Park

in Rijnsburg and other businesses have increased their processing space. In Eelde, the space for box holders was refurbished,

producing extra space that is now leased to one of the largest retail suppliers in the country. Further, a horticulture supply

business is preparing to relocate to the auction site of Eelde. Bleiswijk is continuing to grow more into a logistical junction for

suppliers of large retailers and is considering possibilities to improve the physical delivery of flowers and plants to the domestic

market by serving florists and garden centers more astutely. The possibilities for building a GreenRail terminal in Bleiswijk are

being examined. Such a terminal could contribute to improved, sustainable access to the Netherlands as a floriculture

distribution country.

The expectation is that in the next few years new trade accommodations could be developed at all locations. FloraHolland is

preparing itself for that possibility by, among other things, arranging for accurate zoning plans so that lots are available if trading

companies request them. The fact that the demand therefore is growing again reflects the trust placed in trading via the market-

places of FloraHolland. That trust underscores the strong purchasing power for flowers and plants at FloraHolland.

Cooperation


Concern for good logistical resources

more in commercial space was taken up at our market-places in 2010.’

‘40.000m2

‘Within a single company, growers and customers must be treated the same way everywhere’

Unity and diversity Unity and diversity


Changing the Netherlands as a flower supplying country logistically

Arriving at better prices and lower supply chain costs by strengthening

Dutch business as a whole — that is the goal of the logistics support centre

Tradepark Bremen, which was set up at the start of 2011. Tradepark Bremen

was created at the request of Florilog, the coordination body for chain logis

tics, in which businesses participate. Tradepark Bremen has two purposes:

the first is to help exporters to better serve the North German market by

taking the product to their customers. Products flow in massive volumes

to the logistics support centre and are then distributed in small amounts.

That saves money.

The second purpose is to provide better access for local (in this case, North

German) products to the Dutch auctions. Such products are currently only

trickling in to the auctions. Dutch buyers cannot buy them as things stand,

but they could if these products flowed in significant volumes to the Dutch

auctions. That would strengthen the supply and, consequently, the market

place. Logistically, FloraHolland is participating with supply chain partners

in projects that will make floriculture logistically more sustainable. Examples

of this are GreenRail, the transportation of plants over long distances by

train, and the Plant Shuttle, the utilization of boats for the supply of plants

from the Noordoostpolder to Aalsmeer. FloraHolland assists in analyzing the

chances of such projects, but generally leaves the actual implementation to

other parties.

Finances as a component of the cooperative

One of the foundations of cooperative sales is the payment security that the

auction offers its members. The importance of this payment security has

emerged from the fact that on average 2.5% of turnover of all companies is being

drained in the Netherlands because invoices are not paid. When viewed from this

perspective, the basic commission of 1.4% is a very good deal. New agreements

were made with banks and the Flower Nursery Products Wholesale Association

(VGB) to ensure this foundation remains strong.

They reconfirm the existing scheme regarding non-reverse entries (preventing pay-

ments made by buyers for delivered flowers and plants being undone). Nearly 100%

of Flora Holland’s buyers have now submitted such a non-reverse entry declaration.

In part as a result of a stringent debtor policy, the amount of bad debts is not worth

mentioning. FloraHolland is also, for that matter, working on good financial ratios.

This is required to ensure that the standing of the auction among financiers is kept

strong. The risk-bearing capital (equity plus liquidity levy) already meets the set

standard. This issue does not entail problems because investments also remained

within this cash flow in 2010. This is the reason why 50% of the liquidity levy credit

entry for 2009 could be paid out directly to members in 2010. The auction, however,

does wish to ensure that the operating profit stays in the company. This is necessary.

Since the crisis, the banks have been using stricter standards for the equity amount.

This is the reason why FloraHolland wants to raise the equity to 25 or 30% of the

balance total. A step in this direction was again taken in 2010 due to a good result.

A number of comments can be made

concerning automation:

1. In 2010 positive steps were taken in

setting up a new auction system for

the export auctions. This project

is set for completion in 2013. As a

precursor to this, the introduction

of a uniform system for Remote

Buying (KOA) is planned for 2011.

This is, of course, a complex

project consisting of numerous

sub-projects. In fact, the auction

systems that have been going their

own separate ways over the past

century must now converge under

a single system. A central image

bank for product pictures was

completed over the course of 2010.

Currently, there is a single method

for sending in and managing

pictures for all FloraHolland

auction clocks where growers’

images are projected. If so desired,

FloraHolland can also make these

pictures available to customers.

2. Many savings have been generated

in telephony by introducing digital

systems and phasing out existing

telephone switchboards. FloraHol-

land’s telephone traffic now runs

through its own data network and

no longer over the grid.

3. ICT is increasingly becoming

important for all parties in the

supply chain. More and more

companies are doing business

together 24/7 (for instance, via

webshops). ICT systems and ICT

support must keep pace with this

trend. Moreover, the floriculture

Building and maintaining ICT

Employees: keep coming into bloom!

Employees are the decisive factor

with regard to the extent in which

FloraHolland is valued by its

members and customers.

FloraHolland wants its employees to

be appropriately equipped for their

task and wishes to ensure that they

can be broadly deployed. This is the

reason why much attention is paid

to development and employability.

A literacy process contributes

towards the reduction of illiteracy

(often concealed by people).

FloraHolland carried an extensive

survey during the course of 2010

regarding their work perception and

satisfaction. The survey has shown

that many employees are pleased

with the independence with which

they can work and with the way the

work with colleagues. Employees see

a need for improvement with regard

to issues such as commitment,

customer focus and efficiency.

The results of the survey have in part

led to the Bloei! (Bloom!) program.

This contributes courage, clarity,

sustainability and service towards

the required behavior based on

FloraHolland’s key values. Members

and customers should be able to

notice these in the coming months.

Large groups of employees have

already become familiar with this

program. The importance of carefully

listening to the customer and

acting in his or her interests are

being pointed out during meetings

based on a vision related to

FloraHolland’s services in a changing

world — where the objective is to

ensure FloraHolland really becomes

an excellent service provider.

chain is increasingly becoming its

own network in ICT terms. What

one party does influences the work

of another. If the Remote Buying

(KOA) system does not work, that

is not only a problem for the

auction, but also for many buyers.

In order to anticipate those

challenges, technical management

is required. That is why consulta-

tions between locations, as well as

between FloraHolland and other

supply chain partners, are critical.

FloraHolland strives to direct that

technical management and has

made agreements with important

software suppliers on standards

and releases of new software.

‘...increasing the equity to between 25 and 30 per cent of the balance sheet total...’

Unity and diversity Unity and diversity


FloraHollandand CSR

René van Kester van Fa. R. & A. van Kester is chrysantenteler.


TrainingFloraHolland offers an extensive program of internal training courses.

This ensures that employees can develop and adjust to the changing require-

ments on the labor market. Many logistics employees, for example, have been

able to follow a senior secondary vocational training course. Lessons in

Dutch are also provided to people whose Dutch is not yet up to scratch.

CharitiesFloraHolland has managed to raise a considerable amount for Dutch

Cancer Society and the Roparun foundation (care for people with cancer)

by participating in and fundraising for the “Ride for the Roses” and the

“Roparun”. In addition, local and regional charities have also been

supported.

Sustainable and socially responsibleFloraHolland combines corporate social responsibility with a healthy operational management.This means that attention is paid to people, the environment and social issues. Below, a few examples are given of corporate social responsibility.

EnergyFloraHolland aims to use the lowest level of energy possible. An energy control system has been developed to achieve this,

which has been used to implement optimizations with regard to lighting, ventilation and heating at various places. The use of

LED lighting is one of the ways in which savings can be attained with regard to energy and it also limits the light emission to

the surrounding area.

Exploration licenses for geothermal energy have been applied for at the two largest locations. A business case has been put

together in Naaldwijk that not only shows positive environmental effects but also a potential positive cost-benefit ratio.

By pumping hot water from a depth of four kilometers to the surface, not only the Auction Complex but also a few greenhouse

horticulture companies and a small residential area can be heated.

A survey into the reuse of green waste streams as raw material for biodigestion is starting up at Aalsmeer.

Sustainable transportationFloraHolland has an active role with regard to transportation management

and logistics:

• Auction activities will be adjusted based on rush-hour scenarios where possible;

• The application of collective transportation in the supply will be stimulated;

• The objective will be to have an optimum loading degree with regard to collective

transportation;

• The deployment of long heavy vehicles will be stimulated;

• A survey is currently being carried out into making ‘inter-auction’ traffic and the

international logistics chain more efficient;

• FloraHolland initiates and supports transportation by sea, inland waterways and rail;

• FloraHolland participates in pilots and research to promote the use of non-fossil fuels.

Restricting emissionsFloraHolland is working on a program to limit diesel engine emissions at the locations. The buildings have been set up in

environmental zones in which only trucks with a soot filter with Euro 4 and 5 engines are allowed. In addition, the number of

external shipment options is being expanded. Parked truck cooling takes place using electricity so that the truck engines can

be switched off.

FloraHolland and CSR FloraHolland and CSR

Raised for the Roparun foundation:

€ 46.286,

Raised for Ride for the Roses:

€ 233.200,


Towards a sustainable chainFloraHolland looks further

than the link it forms itself

as a chain partner. It is

important that flowers and

plants are produced with

social responsibility for

consumers and society. This

means that all links in the

chain must contribute. Many

initiatives have been taken

in this area within the sector.

Many of these initiatives

have been developed with or

by FloraHolland.

Some appealing examples

are given in the diagram

below, broken down according

to their link in the chain.

Activities

Programs

MPS Auction MPS Trade Greenport Logistiek

Schoon Vervoerd

Continuous effort

to reduce energy

requirements

Reducing emissions.

Sustainable Building

Separate waste

processing

Water reuse

Plugs for truck cooling

LED light use

Biomass deployment

Down hole drilling/

geothermal energy

Multiple space use

Sustainable purchasing

Reducing transportation

requirements

Biodegradable packaging

material

Increasing the loading

degree

Improved chain control

Promoting

environmentally-friendly

modalities

Reducing emissions.

Multimodal

transportation: rail,

inland navigation, sea

Alternative fuels

Containerization and

conditioning

Collective transportation:

efficient collection at the

nurseries

Clustering in sales areas

Purchase of sustainable

products

Breeding/ propagation

Retail tradeProduction Sales Trade Logistics Consumer

FloraHolland and CSR FloraHolland and CSR

TTI Green Genetics

Creation of varieties

that require less water,

light and crop protection

resources

Creation of varieties that

have a longer shelf life/

are easier to ship

Bio-based economy

What does FloraHolland do?FloraHolland is investigating the possibilities of applying geothermal heat in Naaldwijk. FloraHolland’s own buildings and possibly

also other buildings may be heated with water that is pumped up from deeper sand layers (two to four kilometers deep).

FloraHolland is investing new opportunities to collect waste separately in Aalsmeer.

FloraHolland has assisted in organizing the boat shipment of houseplants over water from the Noordoostpolder to Aalsmeer for

one of its growers.

FloraHolland has set up a pilot together with chain partners in which pot plants have been shipped to traders in Italy by train.

A number of exporters are now shipping by train at their own expense.

FloraHolland is investigating together with its chain partners the options to ensure that the transportation between its auction

locations is more effective so that fewer truck movements are required.

Reduced use of fossil

fuels

Reducing emissions

(CO2, light, water, crop

protection resources)

Energy delivery by the

horticulture industry

CHP: generation of

energy and heat from

natural gas

Geothermal heat

Cold/heat storage

Biomass application

OCAP: reception and

transportation

CO2 of the Port of

Rotterdam based on

cultivation areas

Provide insight to

consumers on environ-

mentally-friendly and

social context

Sustainable purchasing

Carbon footprint

Water footprint

FFP Fair

Flowers Fair Plants

Floriculture Environ-

mental Program (MPS)

Het Nieuwe Telen

Greenhouse as Energy

Source

Sustainable Barometer

Florists


Corporate Governance

The General Members’ Meeting, the Supervisory Board, the Board, the Regional Board and management are the bodies that

play a role within FloraHolland with regard to corporate governance. The Supervisory Board, the Board and management have

paid attention several times to the issue of corporate governance in 2010. The topics discussed included member commitment

and the role of the Regional Boards.

Being a cooperative, FloraHolland is not legally obliged to follow the Dutch corporate governance code. It has, however,

decided to act in the spirit of the corporate governance code, and FloraHolland observes some of its best-practice pointers.

The nature of the cooperative structure contributes towards transparency, member commitment and healthy supervision

relationships between the cooperative’s bodies within this context.

FloraHolland has a balanced distribution of responsibility between its board

structures. In addition, there is a clear supervisory structure for each of the

administrative bodies.

The General Members’ Meeting consists of the members of the cooperative and it

appoints the Board and the Supervisory Board. It also approves large investments

and the financial statements. Members’ voting rights are based on their accrued

member capital during their years of membership. Member capital within this

context is based on turnover achieved in the past.

The cooperative is managed by a Board with nine members and is accountable to

the General Members’ Meeting. The Board has delegated the daily management

of the organization to management through the Management Regulations, but

retains ultimate responsibility. The company comprises five locations and various

group departments including FloraHolland Connect and Import. Management is

formed by three management members including a General Manager. Twenty-six

FloraHolland Product Committees act as advisory bodies for management.

A Supervisory Board that, made up of six individuals, supervises the Board and

management on behalf of members. Of the Supervisory Board members who also

have an advisory role, three are appointed from amongst members.

FloraHolland believes that trans-

parency and involving its members

in the control of the FloraHolland

cooperative are of great importance.

Members, for example, can participate

through the Board, the Supervisory

Board, and the General Members’

Meetings. The Regional Boards form

an important link between the Board

and Management on the one hand

and the members on the other. They

act as sounding-boards for the Board

for policy, provide advice, and have an

important function in detecting and

reflecting. FloraHolland has fifteen

regions: thirteen in the Netherlands,

one in Israel and one in Belgium.

Each region has its own regional

management consisting of seven

members. They form a reflection of

the businesses that are members of

FloraHolland within that region.

The Regional Boards discuss strategic

issues and policy developments at a

point in time when they can still be

influenced.

Individual members can make their

contribution with regard to strategic

subjects and policy development at

the regional meetings.

FloraHolland aims to maintain a trans-

parent remuneration policy. The Board

determines the remuneration of manage-

ment, the Supervisory Board the remu-

neration of the Board, and the regional

chairpersons the remuneration of the

Supervisory Board members. The remu-

neration of Board and Supervisory Board

members is based on the remuneration at

comparable cooperatives. The Nationale

Coöperatieve Raad voor land- en tuin-

bouw (NCR; National Cooperative Council

for Agriculture and Horticulture) investi-

gates remuneration at larger cooperatives

on an annual basis. FloraHolland verifies

the remuneration of the Board and

Supervisory Board using this benchmark.

Board and Supervisory Board members

receive a fixed annual payment.

Members of the Executive Board have

a pension plan and Incapacity for Work

insurance.

A severance plan applies to them that

depends on the number of service years

but does not concern more than two

annual payments.

The Hay method is followed as is the case

at many companies when determining the

level of the position and the remuneration

of management members.

Management remuneration has a fixed

and a variable component. The variable

component is determined by the Board on

a number of agreed criteria. The variable

component amount to no more than 30%

of the salary of the General Manager and

20% of the other directors.

In addition to the salary, management

members have the same employee

benefits as other FloraHolland employees.

General

Responsibilities and supervisionMember commitment and transparency

Board, Supervisory Board and management reward policy

9 board members, 6 Supervisory Board members,15 Regional Boards, 26 FPCs, 310 administratively-involved

members

Corporate Governance Corporate Governance


The Board and management held two extensive risk management sessions in

2010. Three new risks were identified during these sessions:

• Not being able to cater for market requirements due to the set-up of the

current organization.

• Reduced support for policy as a result of changing collective behavior of suppliers.

• Movement away from the marketplace due to loss of support among buyers

and stakeholders.

In addition, additional measures were implemented in 2010 to control the risks

specified in 2009:

• The effects of the financial crisis were compensated for through cost and

investment reduction. In combination with a positive turnover development,

these measures have led to good operating result in 2010.

• The risks “Increase of direct import”, “Retail, buyer and grower economy

of scale” and “Reduction of sales in countries with significant exchange

fluctuations” were identified in 2009. FloraHolland obtained more insight into

developments in 2010 by drawing up reports for the Board and management.

• This ensures that FloraHolland can cater better and faster for these

developments if required.

• Risks relating to bad debt have been reduced by obtaining more securities

from buyers. The security policy for debtors was redefined in 2010.

• An annual assessment of the strategy and decision-taking process during

the board conference contributes towards appropriate strategy and

decision-taking.

• ICT faults and failures (virtualization, dependency on ICT systems, etc.)

are given considerable attention in large automation projects.

• The ash cloud issue gave reason to further reexamine a number of processes.

The Board has final responsibility for risk control at FloraHolland. Risk control takes place at all levels in the organization.

Interest and currency risks are, whenever possible, covered by deploying financial instruments with regard to financial issues.

The treasury team in which the Financial Director has a seat is in charge of controlling liquidity and credit risks.

Price risks with regard to purchasing energy are limited by the energy team. The control of price risks related to the

purchase of aluminum is given the required attention in the One Uniform Stacking Trolley project. Risks related to real

estate transactions are dealt with in the Real Estate working group.

Risks are also controlled as much as possible in the carrying-out of daily procedure. Operational risks such as accidents

and emergencies are covered by the Company Emergency Response Team (CERT) organization and the Company’s Fire

Department (in Aalsmeer and Naaldwijk). Current company emergency plans are also available and the insurance portfolio

is managed actively.

Crisis management training is given at the locations on an annual basis as an addition to the above.

Internal risk control and control systems

Control of specific financial risks

Control of specific operational risks

Control of specific risks at FloraHolland

‘Risk control takes place at all levels in the organization.’

Corporate Governance Corporate Governance

Planning and administration cycleThe Board and management pay great attention to strategy and policy development with members and customers of the

cooperative. A correctly implemented and processed strategy and policy development process helps limit business risks. The

strategy is translated into a long-term policy plan in the FloraHolland administration cycle. The annual plans and budgets are

subsequently drawn up based on this long-term policy plan. The realized results are regularly compared with the budgets and

accountability for this is arranged through reports and analyses to the Board and Supervisory Board. Budgets will be adjusted

during the year if required. This was, for example, the case in 2009 as a result of the financial crisis.

Risk management cycleAll business units go through the full risk management cycle each year including the Board and management to ensure that a

good picture is retained of business risks. The most important business risks are inventoried, given control measures and safe-

guarded with this annual cycle. The organization is supervised by the Risk Management expertise group within this context.

This Expertise Group consists of specialists from different business disciplines and reports to FloraHolland management.

The external auditorThe Ernst & Young firm of chartered accountants audits the financial statements. The Supervisory Board reappointed

Ernst & Young for a period of three years in 2010.

AIA departmentThe Administrative Organization, Internal Control and Automation (AIA) department is involved in setting up internal control

processes by carrying out risk inventories and analyses, making recommendations about the set-up of the administrative

organization and performing audits. It works closely together with the external auditor within this context. AIA also coordinates

and monitors the follow-up of recommendations from the internal management letter and the management letter of

the external auditor.

Process risk modelEvery FloraHolland business unit has a process risk model as an instrument for controlling financial process risks. The

processes with related financial risks and the extent of the control are specified in this model. The process risk models are

actively managed.

Internal management letterAn internal management letter was drawn up for the first time at FloraHolland in 2010. This ensures that internal control

shortcomings can be determined and that recommendations can be made for improvements. The findings in the internal

management letter are based on the found shortcomings in the process risk models.

EDP auditsThe importance of automation with regard to FloraHolland business processes is extensive. FloraHolland, therefore,

draws up a substantiated audit plan each year. The audits are performed by FloraHolland itself and by Ernst & Young.


Guide to the annual accounts

GeneralThe sales in 2010 amounted to

E 4,130 million (2009: E 3,861

million), which represents an

increase of 7%, of which 6% price

and 1% supplied quantities. Revenues

have, however, dropped despite these

higher sales, but this is mainly due

to lower rates. The operational result

remained steady because costs also

dropped.

A good result was remaining under

the line of E 12.3 million (2009: E 5.7

million) this year due to good holding

results and no special liabilities.

Exports rose by 5.4% mainly to

Central and Eastern Europe and to

the key countries, namely Belgium,

Germany and the United Kingdom.

RevenueThe revenue for 2010 amounts to

E 377.9 million (2009: E 379.2

million). The commission revenue

rose in line with sales while taking

into account a lowering of the basic

commission in 2010 by 0.1% to 1.4%.

The revenue from levies is lower in

2010 because fewer lots and trolleys

have been supplied and, in addition,

the lot levy has been lowered in

Naaldwijk and Rijnsburg. The other

revenue is especially lower due to

lower rental income from packaging

and Danish containers.

FeesThe salary expenditure for 2010 slightly

dropped to E 186.6 million despite

a price effect of approximately 2%

(2009: E 186,9 million). The number of

full-time jobs (FTEs) shrank in 2010 to

3,279 FTEs at the end of 2010 (at the

end of 2009: 3,386 FTEs), mainly as a

result of employees who transferred to

the Veiling Rhein-Maas joint venture.

Labor hiring costs (mainly temporary

logistics workers) amounted to E 18.8

million in 2010 (2009: E 17.4 million).

The general costs for 2010 dropped by

E 0.3 million to E 84.5 million (2009:

E 84.8 million), mainly due to cost

control and because additional facilities

were not required.

Depreciation expenditure rose in 2010

to E 77.5 million (2009: E 75.0 million)

due to the commissioning of a few large

investments (see “Fixed assets and

investments”) and due to additional

downward revaluation of assets for a

total of E 4.3 million (2009: E 2.5

million). The additional downward

revaluation mainly concerns trolleys

that cannot be modified.

Interest charges for 2010 dropped due

to the low short-term interest rate.

Overall, costs dropped from E 367.6

million in 2009 to E 366 million in 2010.

Result from holdingsThe contribution from holdings to

the result for 2010 of FloraHolland

amounts to E 3.0 million (2009:

E 0.4 million) mainly due to the

sale of land.

Introduction to the Annual Accounts Introduction to the Annual Accounts

Profit and loss account

2010 2009

Revenue

Commission 90.8 87.3 4.0%

Levies 109.1 113.0 -3.5%

Other revenue 178.0 178.9 -0.5%

Total revenue 377.9 379.2 -0.3%

Fees

Salary expenditure 186.6 186,9 -0.2%

General expenditure 84.5 84.8 -0.4%

Depreciations 77.5 75.0 3.3%

Interest costs 17.4 20.9 -16.7%

Total expenditure 366.0 367.6 -0.4%

Operational result 11.9 11.6

Exceptional costs 0.0 -4.0

Pretax result 11.9 7.6

Holding result 3.0 0.4

Corporation tax -2.6 -2.3

Result after tax 12.3 5.7


Introduction to the Annual Accounts Introduction to the Annual Accounts

Balance sheet

Equity position summary: (x € 1 million)

31122010 31122009

Assets

Fixed assets 855.5 861,2

Current assets 85.7 62.3

Total 941.2 923.5

Liabilities

General reserve 137.6 136.1

Profit-sharing reserve 55.9 56.7

Legal and other reserves 9.5 8.3

Result for accounting year 12.3 5.7

Equity 215.3 206.8

Members’ and suppliers’ loans 224.9 235.8

Riskbearing equity 440.2 442.6

Provisions 14.0 19.7

Other long-term debts 109.8 115.9

Current debts 377.2 345.3

Total 941.2 923.5

Ratios

Solvency ratio 22.9% 22.4%

Risk-bearing equity ratio 46.8% 47.9%

Fixed assets and investmentsFixed assets decreased by € 5.7

million up to a book value of € 855.5

million at the end of 2010. The balance

of investments and disinvestments

in 2010 is € 75.0 million. Significant

investments 2010 concern uniform

stacking trolleys, investments in

buildings including fire safety and

sound barrier, auction clock systems,

internal transportation resources,

ICT and multi-use packaging. The

disinvestments mainly concern the

Venlo site assets.

Distribution of the resultThe Board will propose to the

General Members’ Meeting to keep

the net result of € 12.3 million within

the cooperative and to add part of it

to the participation reserve and the

rest of it to the general reserve.

The addition to the participation

reserve assumes a payment of 1.5%

on the outstanding balance and an

addition of 7.0% of the members’

commission paid.

RatiosThe funding policy focused on

ensuring that the solvency and the

risk-bearing equity came and/or

were kept between the 25-30%

and 40-45%, respectively, range.

EUR3.5 million was paid in

participation reserves in 2010.

Despite this payment, solvency

rose at the end of 2010 by 0.5%

to 22.9%.

The healthy position of the risk-

bearing equity ensures that half

(€ 19.0 million) of the € 38 million

liquidity levy retained in 2010 could

be reimbursed to members and,

therefore, the risk-bearing equity

ratio is 46.8%.

The Board,

Addition to the general reserves 6.1

Credit to the participation reserve:

Credit due to the received commission in 2010 7.0% 5.3

For the position at the end of 2010 1.5% 0.9

Total result after taxes 12.3

(x € 1 million)

B.C. Oosterom

Chairman

H.P.S. Persoon

Vice-chairwoman

M.P.E. Ammerlaan

Secretary

Aalsmeer, 28 April 2011

C.A.M de Wit

Board member

Th.J. van der Houwen

Board member

L.G.M. Bouman

Board member

E.D. van den Beukel

Board member

J. Elstgeest

Board member

G. van der Pligt

Board member


There was one change in the composition of the Supervisory Board in 2010. Mr Jan Andreae was appointed to take the

place of Mr Abel Slippens, who left the Supervisory Board of his own accord. Mr Jos ten Have and Mr Aad van der Knaap

were reappointed for a new term on the Supervisory Board. Member commitment and other issues were discussed during

the meeting of the Supervisory Board, as well as in consultation with the Board and management. The Supervisory Board

emphasizes the importance of having a good relationship between the auction and members, and has also urged that attention

be paid to good communication and the decision-making structure. This topic will be given renewed attention in 2011.

The Supervisory Board has issued a positive opinion regarding the Board’s decision to reassess FloraHolland’s financial structure.

The solvency standard has been increased to 25 to 30% within this context. The standard for the risk-bearing equity will remain

the same (40 to 45%). The profit objective for the company has been increased from 10 to 15 million euros per year.

The Supervisory Board has taken note of a number of significant developments and initiatives such as the development of

Veiling Rhein-Maas, the takeover and integration of TFA, the Chip-It (CC) operation and the development of Tradepark

Bremen and Aalsmeer Oost. The Supervisory Board has above all paid much attention to the cooperation with the Board and

management, especially within the framework of the relationship between the Board, management and members. To conclude,

the Supervisory Board has sought information and has contributed with ideas towards how to go about internationalization,

direct flows and the follow-on process to this, under the management of the Roland Berger agency. The Supervisory Board is of

the opinion that the Board and management must deal with the proper subjects in an adequate manner. The Supervisory Board

has, however, emphasized the urgency of a number of topics and has insisted on speed: this in view of the many changes within

and outside the floriculture sector.

As per usual, the Supervisory Board has also discussed its own operations over 2010. The Supervisory Board is of the opinion

that it is composed in a balanced manner and that it operates and functions as a team appropriately.

AdviceThe Supervisory Board has taken note of the FloraHolland financial statements for 2010 that the Board has drawn up and

the auditor has audited. These financial statements consists of the balance sheet as on 31 December 2010 and the profit

and loss account for the 2010 fiscal year with explanatory note.

The Supervisory Board agrees with the financial statements drawn up and has, therefore, signed them. The proposal is

made to the General Members’ Meeting that the financial statements for 2010 be adopted, that the Board be discharged

for the policy it has pursued during the 2010 fiscal year, and that the Supervisory Board be discharged for the supervision

that it has exercised therein.

The Supervisory Board members wish to express their appreciation to the Board, management and employees for the results

attained and the method in which the company has performed during 2010.

The Supervisory Board

F.C.W. Briët H. Benjamins

Chairman

A.L.J. van der Knaap J.G.W. Batist

J.W.M. ten Have J.G. Andreae

Aalsmeer, 28 April 2011

Report of the Supervisory Board

Report of the Supervisory Board Report of the Supervisory Board


AcknowledgementsText: Public Relations Dept.

Production: Public Relations Dept.

Concept and design: 707 Brand Communications B.V.

Photography: Bert Theunissen (portraits),

Public Relations Dept.

Print: True Colours

© 2011 FloraHolland

Acknowledgements

The printing process for this annual report meets the strictest of requirements in the area of the environment and health. This annual report is printed on FSC-certified paper.

Meerjarenoverzicht (kengetallen) 2010 2009 2008 2007

Sales (x € 1 million) 4,130 3,861 4,074 4,063

Revenue (x € 1 million) 378 382 391 387

Total casts (x € 1 million) 366 368 381 368

- Salary expenditure (x € 1 million) 187 187 191 186

- General costs (x € 1 million) 84 85 101 94

- Depreciations & interest (x € 1 million) 95 96 89 88

Operational result

(before exceptional expenditure/liabilities) (x € 1 million) 11.9 11.6 9.2 18.6

Result before tax (x € 1 million) 11.9 7.6 5.5 3.4

Balance sheet total (x € 1 miljoen) 941 924 953 972

Net investments (x € 1 million) 75 41 82 91

Solvency (%) 22.9 22.4 21.6 21.1

Risk-bearing equity (%) 46.8 47.9 47.4 45.1

Cost-covering commission (netto in %)* 4.1 4.6 4.6 5.1

Personnel (FTE’s ultimo) 3,279 3,386 3,555 3,611

Absenteeism due to illness (in %) 4.9 5.1 5.4 5.5

Activity indices/prices

- Lots (x 1.000) 6,615 6,823 6,968 6,957

- Items (x 1.000.000) 12,449 12,322 12,469 12,320

- Logistics transactions (x 1.000) 29,953 30,596 30,681 29,820

- Trolleys (x1.000) 8,583 8,865 8,682 8,728

Average flower price (€) 0.21 0.20 0.22 0.23

Average houseplant price (€) 1.53 1.49 1.53 1.53

Average garden plant price (€) 0.90 0.86 0.78 0.76

* Growers’ levies minus the result before tax divided by sales.

AalsmeerLegmeerdijk 313

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Duitsland

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