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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
4 FloraHolland Annual Report 2010 5
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
Annual Report 2010 98 FloraHolland
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’
10 FloraHolland Annual Report 2010 11
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.
12 FloraHolland Annual Report 2010 13
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
14 FloraHolland Annual Report 2010 15
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
Annual Report 2010 15
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
16 FloraHolland Annual Report 2010 17
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.
Annual Report 2010 1918 FloraHolland
‘...secure as
much supply
as possible via
membership...’
Annual Report 2010 19
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
20 FloraHolland Annual Report 2010 21
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
Annual Report 2010 23
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
Annual Report 2010 2524 FloraHolland
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
26 FloraHolland Annual Report 2010 27
FloraHollandand CSR
René van Kester van Fa. R. & A. van Kester is chrysantenteler.
Annual Report 2010 2928 FloraHolland
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,
30 FloraHolland Annual Report 2010 31
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
Annual Report 2010 3332 FloraHolland
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
Annual Report 2010 3534 FloraHolland
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.
Annual Report 2010 3736 FloraHolland
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
Annual Report 2010 3938 FloraHolland
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
Annual Report 2010 4140 FloraHolland
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
Annual Report 2010 4342 FloraHolland
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.
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