Provisional Laurus N.V. results for 2001

Net loss of € 442 million

2001 proved an exceptionally bad year for Laurus N.V. The net loss rose (especially during the second half) to € 442 million, compared with a loss of € 53 million in 2000. A loss was sustained in all countries.

- Net sales € 6.4 billion (unchanged)
- Operating result € 136 million negative (2000: € 114 million)
- Super De Boer and Edah recorded clearly positive results
- Result on ordinary activities after tax € 216 million negative (2000: € 50 million)
- After extraordinary result (loss of € 226 million) net loss: € 442 million
- ShareholdersÂ' equity € 176 million negative; € 400 million required

In broad terms the increase in the loss may be attributed to costs and operating losses associated with the (now suspended) conversion to a single new Konmar format in the Netherlands, very poor results in Spain and lower than expected results in Belgium, as well as a diminution in value of fixed assets and goodwill, especially in the Netherlands and Spain. The Dutch Super De Boer and Edah formats recorded a profit.

Extraordinary income and charges € 226 million (after tax)
Extraordinary income totalling € 101 million was recorded in 2001, compared with € 17 million the year before. The increase was due in particular to the release of provisions when the Konmar conversion operation was halted. In addition book profits were made on the disposal of parts of the company. Against this income there were extraordinary charges of € 304 million. In view of the loss-making activities in Spain, Belgium and the new Konmar-format in the Netherlands valuations were carried out and, where necessary, recalculations made in order to establish whether and to what extent there had been exceptional diminutions in the value of assets. On this basis exceptional diminutions in value of the purchased Groenwoudt goodwill (€ 90 million) and tangible fixed assets in Spain (€ 180 million) were taken as extraordinary charges. Furthermore a provision was formed for the closure of Basismarkt and for the costs of the conversion operation. As a consequence net extraordinary charges after corporation tax amount to € 226 million.

Negative shareholdersÂ' equity of € 176 million
As a result of the net loss of € 442 million in 2001, shareholdersÂ' equity has become negative.
Euronext Amsterdam has been informed on this situation.
Most of these developments, especially the situation in Spain, had already been taken into account during the negotiations with Casino and the banks which resulted in the Letter of Intent of 6 March 2002.
The guaranteed capital base (which includes the subordinated loan of € 150 million) amounts to negative € 3 million. In principle it has been agreed with the banks that the subordinated part of their loans will be increased from € 150 million to € 200 million so that there will once again be a positive guaranteed capital base.

No dividend for 2001
In connection with the loss recorded in 2001 and the negative shareholdersÂ' equity, no dividend will be declared for 2001.

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(source: Laurus)

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