G+W - Wahler Der Modemarkt GmbH

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Befreiender Konzernabschluss gem. § 291 HGB
zum Geschäftsjahr vom 01.01.2020 bis zum 31.12.2020

Zeeman Groep B.V.

Alphen aan den Rijn/Netherlands

BERICHT DER GESCHÄFTSLEITUNG

Der Tod von Jan Zeeman am 2. Juni 2020 hat uns schwer getroffen. Sein eigenwilliger Unternehmergeist hat uns dahin geführt, wo wir heute stehen. Er hat uns gezeigt, wie wichtig es ist, zuinig mit den Geschäftspartnern umzugehen und jeden in der Kette im Blick zu haben. Wir sind ihm dankbar für alles, was er möglich gemacht hat. Seine Ideen werden in unserem Betrieb fortleben.

In den vergangenen Jahren haben wir mit der Zeeman Groep B.V. (Zeeman) den Beweis erbracht, dass unsere Formel stark und immer noch aktuell ist. Das zeigte 2020 auch das autonome Wachstum unseres Umsatzes. Wir sind immer noch ein Familienbetrieb, der sich - mit einer klaren Strategie - langfristig orientiert. Wir organisieren alles so intelligent und effizient wie möglich und kaufen in großen Mengen ein. Unser Sortiment besteht aus Haushaltstextilien, Unterwäsche, Strümpfen und Strumpfhosen, Oberbekleidung für Damen, Herren und Kinder, Accessoires und nichttextilen Artikeln. Wir leiten das Unternehmen zentral von der Servicestelle in Alphen aan den Rijn aus und betreiben Filialen in sieben Ländern Westeuropas.

Das Vorstandsteam ist für die Leitung der Gesellschaft, die Strategie und den Einsatz von Ressourcen und Personal verantwortlich. Das Team leitet verschiedene operative Abteilungen: Einkauf, Verkauf, Marketing & E-Commerce, Logistik, Finanzen, HR, Immobilien und IT.

Strategie und Konzept

Wir orientieren uns an Kleidung und Textilien, die gut, günstig und nachhaltig produziert sind. Das ist eine enorme Herausforderung. Denn unser Offlinemarkt ist in den vergangenen Jahren aufgrund des veränderten Konsumverhaltens, darunter eine teilweise Verschiebung vom Laden zum Webshop, geschrumpft. Die Verbraucher sind so preisbewusst wie noch nie. Und ihr Konsumverhalten hat sich gewandelt.

In den letzten Jahren haben wir bewiesen, dass wir flexibel sind. Und richtig und energisch auf die Veränderungen im Markt reagieren können.

Filialen

Wir haben uns bewusst für ein Filialnetz, das nahe am Kunden ist, entschieden. Mehr noch, unsere Filialen sind zurzeit die Nummer 1 für uns neben der weiteren Entwicklung und Entfaltung unseres Webshops. Um ein optimales Ergebnis zu erzielen, überwachen wir unseren Filialbestand sorgfältig. Bei Bedarf entscheiden wir uns dafür, einen Laden zu renovieren, an einen anderen Standort zu verlegen oder zu schließen. Wir achten dabei auch auf die Logistik, ob die Miete erschwinglich ist und ob wir Mitarbeiter austauschen können. Nur so können wir unsere Preise niedrig halten und unsere Volumen weiter ausbauen. Außerdem setzen wir auch auf Expansion, vor allem in Spanien und Frankreich.

Marktposition

Die Konkurrenz schläft nicht. Wegen des sich wandelnden Marktes müssen unsere bisherigen Konkurrenten in Aktion treten. Außerdem haben wir es mit Marktneulingen zu tun. Auch im Niedrigpreissegment. Außerdem erleben wir, dass Supermarktketten und Non-Food-Discounter immer wieder Textilbasics anbieten.

In den vergangenen Jahren haben wir vieles unternommen, um unsere Marktposition zu stärken und auszubauen. So arbeiten wir fleißig daran, die Qualität unseres Angebots weiter zu verbessern, die Preise niedrig zu halten und unsere Kette nachhaltig zu gestalten. Außerdem ist es für uns wichtig, sowohl unsere Zielgruppe zu verbreitern als auch unsere Markenidentität weiter auszubauen. Um unsere Marktposition zu behaupten und auszubauen, müssen wir den Umsatz fortlaufend steigern. Das geschieht über autonomes Umsatzwachstum, Filialexpansion, Professionalisierung und den Ausbau des Webshops, Business-to-Business (Webshop) sowie andere Kanäle wie Online-Marktplätze.

Für Volumen sorgen

Zeeman ist und bleibt ein Volumen-Akteur. Nur so können wir weiterhin auf Dauer Artikel liefern, die gut, günstig und nachhaltig zugleich sind. Das erfordert eine gut organisierte Lieferkette mit einer hohen Umlaufgeschwindigkeit. Und das erfordert perfekt aufeinander abgestimmte Prozesse: vom Lieferanten bis zu den Filialen. Alles dreht sich darum, dass unser Angebot in den Filialen genau auf unsere Kunden abgestimmt ist. Deshalb muss Zeeman auch die Lieferkette weiterentwickeln. Zu ihrer Unterstützung werden wir ein neues Warehouse Management System (WMS) anschaffen und das Distributionszentrum mechanisieren, beides 2021, um so effizient wie möglich zu arbeiten, sodass sich die Verfügbarkeit in den Filialen und im Webshop verbessert und somit die Umlaufgeschwindigkeit nach oben klettert.

So war 2020

Nach einem Spitzenwert 2017 hat sich das Wachstumstempo in der Eurozone verlangsamt. Dieser Wachstumsverzögerung lagen die rückläufige Industrieproduktion, die amerikanische Handelspolitik gegenüber europäischen Produkten, der Brexit und u.a. die Demonstrationen in Frankreich zugrunde.

Zudem wurden wir im März 2020 mit dem Corona-Ausbruch konfrontiert, was sogar zu einer Rezession in der Eurozone geführt.

Die Wirtschaft ist in der Eurozone im Coronajahr 2020 um 6,8 Prozent geschrumpft. Lockdowns gegen die Verbreitung des Virus sorgten im Frühjahr noch für den stärksten jemals gemessenen Rückgang. Nach einer kräftigen Erholung aufgrund der Lockerungen im und nach dem Sommer setzte in den letzten drei Monaten des Jahres ein abermaliger Niedergang ein.

Das Statische Amt der Europäischen Union Eurostat meldet für das vierte Quartal einen Rückgang des Bruttoinlandsprodukts in den Euroländern um 0,7 Prozent gegenüber dem vorangegangenen Quartal. Auf Jahresbasis bedeutet das ein Rückgang von 5,1 Prozent. Hierbei handelt es sich um eine vorläufige Schätzung von Eurostat.

Im vierten Quartal zwang das starke Aufleben des Coronavirus viele Länder in der Eurozone zur Einführung strengerer Maßnahmen. Die wirtschaftliche Großmacht Deutschland schloss Mitte Dezember beispielsweise sämtliche Geschäfte, die andere Waren als die des täglichen Bedarfs anbieten, eine Maßnahme, die auch das Kabinett in den Niederlanden anordnete.

Die Wirtschaft ist 2020 in der Europäischen Union nach der ersten Schätzung von Eurostat insgesamt um 6,4 Prozent geschrumpft. Im vierten Quartal ergab sich gegenüber dem dritten Quartal ein Rückgang um 0,5 Prozent.

Auch Zeeman musste infolge der Covid-19-Pandemie 2020 einen Rückgang hinnehmen. Wir wurden in den einzelnen Ländern mit mehreren Lockdown-Phasen konfrontiert. Hier eine Übersicht:

	1. Lockdown	2. Lockdown
Belgien	17/3 - 11/5	November
Deutschland	17/3 - 10/4	16/12 - 7/03/2021
Frankreich	07/3 - 03/5	30/10 - 27/11
Luxemburg	17/3 - 11/5	26/12 - 10/01/2021
Niederlande		15/12 - Ende Februar 2021
Österreich	17/3 - 03/5	03/11 - 8/12, 25/12 - 7/02/21
Spanien	17/3 - 01/5	begrenzter Lockdown

Nach den Lockdownphasen haben wir immer wieder erfahren, dass der Umsatz extrem gut war. Das war eine Bestätigung unserer starken Marktposition und eine Bestätigung der Strategie, die wir vor Jahren eingeschlagen hatten.

In allen Ländern, in denen Zeeman aktiv ist, haben wir besser als der Markt abgeschnitten. Das Ergebnis: eine deutliche Erholung des autonomen Umsatzes. Autonomes Wachstum ist wichtig, um den Kostenanstieg in den vorhandenen Filialen aufzufangen. Dort konnten wir 2020 eine spürbare Verbesserung gegenüber 2019 verbuchen.

Frankreich und Spanien sind diejenigen Länder, auf die sich im Augenblick unser Expansionsfokus richtet. 2020 haben wir jedoch in beiden Ländern die geplante Expansion nicht verwirklichen können. Im Rahmen von Covid-19 mussten wir Maßnahmen treffen, um die negativen Auswirkungen auf das Ergebnis und den Cashflow möglichst zu begrenzen. Eine dieser Maßnahmen war eine Reduzierung des Investitionsbudgets. Andererseits war es wegen der Reisebeschränkungen nicht möglich, insbesondere in Spanien angemietete Läden umzubauen.

Sowohl in den Niederlanden als auch in Belgien hat der Webshop ein spürbares Wachstum erlebt, besonders in den Lockdownphasen.

Gute Ergebnisse

Sofort nach Ausbruch von Covid-19 und den angekündigten Lockdowns haben die Geschäftsleitung und das Management Maßnahmen geprüft, um die negativen Folgen auf das Ergebnis und den Cashflow möglichst begrenzen.

Damals wurden folgende Maßnahmen getroffen:

•	Wir haben einkaufsbeschränkende Maßnahmen getroffen. Das bedeutet konkret, dass wir - nach Rücksprache mit unseren Vertretern und Lieferanten - Orders aufgeschoben haben. Es kam kaum zu Stornierungen.
•	Wir hatten die Vorräte ohnehin schon scharf im Visier. Das haben wir noch etwas weiter gestrafft.
•	In mehreren Ländern wurden, sofern die Möglichkeit bestand, Hilfsgelder beantragt. Das betrifft NOW-1 in den Niederlanden und zeitlich befristetes Kurzarbeitergeld für Mitarbeiter außerhalb der Niederlande.
•	Das Investitionsbudget wurde um € 14 Millionen reduziert.
•	Es wurde beschlossen, keine Dividende und Bonuszahlungen für 2020 zu leisten.
•	Verschiedene Kosteneinsparungen wie ein befristeter und intelligenter Einstellungsstopp und eine Reduzierung des Marketing- & Kommunikationsbudgets.
•	Zu den Vermietern wurde Kontakt wegen des Aufschubs/der Anpassung von Teilen der Mietzahlungen aufgenommen.
•	In einigen Ländern haben wir sämtliche Regelungen zum Aufschub der Zahlungen der Umsatzsteuer, Lohnsteuer und Gesellschaftsteuer in Anspruch genommen.

Außerdem haben wir in allen Ländern im Einklang mit den dortigen Gesetzen und Vorschriften Sicherheits- und Hygienemaßnahmen getroffen.

Umsatzentwicklung

Drei unserer vier Kerngruppen (Haushaltstextilien, Strümpfe und Strumpfhosen, Unterwäsche und Baby/Kinderkleidung) haben gut abgeschnitten Die Gruppe Strümpfe und Strumpfhosen hat nicht ganz zu gut abgeschnitten. Der Umsatz an Strümpfen und Strumpfhosen, insbesondere an Strumpfhosen, ist aufgrund der Covid-19-Maßnahmen zurückgefallen. Viele Menschen arbeiten von zu Hause aus, die Gastronomie ist geschlossen und es werden weniger Reisen unternommen. Deshalb werden viel weniger Strumpfhosen verkauft. Die Gruppe Accessoires hat durch den Verkauf der Masken außergewöhnlich gut abgeschnitten. Die Nichttextilgruppe zeigt sogar ein kleines Umsatzplus. Dieses Wachstum ist unter anderem einem geänderten Einkaufskonzept und einer neuen Einkäuferin zu verdanken, die für diese Gruppe zuständig ist. Außerdem wurden mehr Wohn- und Gartenaccessoires verkauft. Die Kunden versuchen, es sich in diesen schwierigen Zeiten zu Hause und drumherum gemütlicher zu machen. Außerdem konnten wir ein Wachstum beim Verkauf von Putzmitteln feststellen.

Wie schon in den vorangegangenen Jahren haben wir sehr viel Aufmerksamkeit darauf verwendet, unsere Tätigkeiten und Abläufe zu kontrollieren. Die Folge: sowohl quantitativ als auch qualitativ kontrollierbare Vorräte. Auch die Kosten hatten wir im Griff.

Der Verbraucherumsatz sank von € 768,6 Millionen 2019 auf € 740,1 Millionen 2020 (der Nettoumsatz sank von € 639,0 Millionen 2018 auf € 616,6 Millionen 2019). Der Umsatzrückgang ist vor allem das Ergebnis der Lockdowns. Das autonome Wachstum betrug 13,3% (also das Wachstum rein aus den bereits bestehenden Läden). Außerdem konnten wir ein hübsches Umsatzwachstum mit dem Webshop (+43,7%) verbuchen. Der Umsatz des Webshops betrug 2020 1,4% (2019 0,9%) des Gesamtumsatzes.

Leider konnte der Webshop-Umsatz vom Lockdown der Läden nur unzureichend profitieren. Der Logistik Service Provider (Isp), mit dem Zeeman arbeitet, verfügt nur über eine begrenzte Kapazität, sodass wir mit der Nachfrage nicht mithalten konnten. Deshalb wurde beschlossen, Mitte 2021 zu einem anderen Logistikanbieter zu wechseln.

All das hat 2020 zu einem Betriebsergebnis von € 27,4 Millionen und somit zu einem bedeutend höheren Ergebnis als 2019 mit € 20,1 Millionen geführt.

Der Nettogewinn betrug € 19,5 Millionen und fiel somit deutlicher höher als 2019 mit € 13,3 Millionen.

2020 wurden 39 Filialen eröffnet und 38 geschlossen. Ferner haben wir neun Filialen verlegt. 2020 wurden außerdem 60 Filialen renoviert. Somit lag die Anzahl Filialen Ende 2020 bei 1.279.

In den sieben Ländern, in denen wir aktiv sind, verteilten sich die Filialen folgendermaßen:

	2020	2019
Belgien	268	270
Deutschland	149	155
Frankreich	298	293
Luxemburg	12	12
Niederlande	468	490
Spanien	83	56
Österreich	1	2
Gesamt	1.279	1.278

Außer den physischen Läden haben wir einen Webshop in den Niederlanden und seit August 2017 auch in Belgien. Im April 2017 wurde eine neue Plattform für den Webshop errichtet. Anfang 2020 wurde er einer Nachbesserung unterzogen. Dort bieten wir nicht unsere komplette Kollektion an. Im Allgemeinen sind derzeit ungefähr 60% unseres Gesamtsortiments über unseren Webshop erhältlich.

Dieser Anteil wird in den kommenden Jahren erweitert, zudem werden weitere Länder hinzukommen.

Investitionen

Wir haben € 24,1 Millionen investiert. Das ist mit 2019 (€ 23,3 Millionen) vergleichbar. Mehr als die Hälfte der Investitionen betraf unsere Läden.

Finanzierung

Im Rahmen von Covid-19 haben wir 2020 eine Zusatzvereinbarung mit den Banken abgeschlossen. Hier die wichtigsten Änderungen gegenüber den laufenden Vereinbarungen:

•	einen ,Convenant Holiday' bis 31. Mai 2021.
•	ein ebitda-Mindestniveau von € 16 Millionen im vierten Quartal 2020.
•	eine Mindestliquidität von € 5 Millionen.
•	Verlängerung der Laufzeit der Vereinbarung bis 1. Juli 2022.
•	einmaliges Roll-over-Darlehen in Höhe von € 20 Millionen bis 1. Juli 2021.

2020 sind wir mit diesen Zusatzvereinbarungen sehr gut gefahren. Wir mussten die zusätzlichen € 20 Millionen Kredit nicht einmal in Anspruch nehmen und haben auch die Net Debt Leverage nicht überschritten.

Das Betriebskapital ist gegenüber 2020 um € 7,6 Millionen angewachsen. Dieser Zuwachs beruhte vor allem auf der Zunahme der Vorräte infolge des Lockdowns in Deutschland und den Niederlanden ab dem 16. Dezember 2020. Der Cashflow war 2020 positiv.

Konzernbilanz und Solvabilität

Die Bilanzsumme lag Ende 2020 um € 13,8 Millionen höher als Ende 2019.

	2020	2019
Bilanzsumme in € Mio.	231,3	217,5
Eigenkapital in € Mio.	128,5	99,3
Solvabilität in %	55,6%	45,6%

Personal und Organisation

2020 waren im Schnitt 8.771 Mitarbeiter bei uns beschäftigt (2019: 8.866), darunter im Schnitt 4.903 außerhalb der Niederlande (2019: 4.873). Auf der Grundlage eines Beschäftigungsverhältnisses in Vollzeit waren das 6.246 (2019: 6.067). Davon waren im Schnitt insgesamt 3.793 außerhalb der Niederlande beschäftigt (2019: 3.694). 90,1% waren Frauen, 9,9% Männer.

2014 haben wir in den Niederlanden - im Einklang mit dem Partizipations- und Integrationsgesetz - das Projekt C-Talent in Angriff genommen. Arbeitsmarktfernen Personen bieten wir eine passende Beschäftigung in unserer Organisation an. Ende 2020 bildet diese Gruppe 2,4% des gesamten Personalbestandes. Diesem Thema widmen wir uns auch in den anderen Ländern, in denen wir Filialen betreiben, große Aufmerksamkeit.

Unserer Geschäftsleitung gehören drei Männer und drei Frauen an. Der Vorstand besteht regulär aus zwei Personen (CEO und CFU). Ferner gehören dem Vorstand ein Einkaufsdirektor, ein Verkaufsdirektor, ein HRM-Direktor und seit Oktober 2020 ein Direktor für Marketing und E-Commerce an.

Dem Managementteam gehören acht Personen (darunter sechs Vorstandsmitglieder) an, wovon fünf Männer und drei Frauen sind. Die beiden Manager, die dem Managementteam angehören, sind für den Aufgabenbereich IT bzw. Supply Chain & Logistik zuständig.

Das gesamte Management von Zeeman besteht aus 40 Managern und Vorstandsmitgliedern, darunter 18 Frauen und 22 Männern.

Bei unserem Personalbeschaffungs- und Auswahlkonzept legen wir Wert auf Ausgewogenheit. Dabei achten wir auf Kompetenz, aber auch auf das Gleichgewicht zwischen Männern und Frauen. Im Aufsichtsrat sind drei Männer und eine Frau vertreten.

Der Krankenstand lag 2020 bei 7,06% im Vergleich zu 6,80% im Jahr 2019. Dem Anstieg liegt Covid-19 zugrunde.

Risiken und Unwägbarkeiten

Wir nehmen jährlich eine umfassende Risikoanalyse vor. Bei jedem Risiko bestimmen wir, ob wir ein bestimmtes Risiko versichern müssen, Maßnahmen ergreifen oder die bisherigen Initiativen für ausreichend erachten. Außerdem prüfen wir das Risiko eines Notfalles und dessen finanzielle Folgen. Auf dieser Grundlage setzen wir Prioritäten.

Das Versicherungsportfolio wurde vor mehreren Jahren einer Revision unterzogen. Wir haben nationale Policen in internationale umgewandelt. Das Ergebnis: eine optimale Risikodeckung zu niedrigeren Prämien. Wir kontrollieren jährlich, ob unser Versicherungsportfolio noch ausreicht und auf die neuen Versicherungsbedürfnisse abgestimmt ist. Dabei achten wir auch darauf, ob wir bestimmte Risiken ganz oder nur teilweise abdecken möchten.

In der heutigen digitalen Welt sind reibungslos funktionierende IT-Systeme unerlässlich. Außerdem werden unsere Prozesse immer komplexer. Wir haben beim Einkauf und Verkauf mit verschiedenen Ländern und einer großen Anzahl Transaktionen und Produkte zu tun. Im Laufe der Jahre haben wir deshalb viel in IT investiert. Dazu haben wir die IT-Risikoanalyse vorgenommen. Wir haben die meisten Punkte dieser Analyse selbst umgesetzt. Dazu gehören Backup-Vorrichtungen, eine Testumgebung, ein Connector (Servicebus), mit dem wir problemlos Anwendungen verknüpfen können, eine Notstromversorgung, Prozessbeschreibungen und Hackingtests. Um das Niveau zu beurteilen und unsere Zielvorgaben zu formulieren, greifen wir auf das ICT Maturity Model zurück. Dieses Modell ist auch Gegenstand des Audits des Wirtschaftsprüfers.

Im Rahmen der Datenschutz-Grundverordnung haben wir eine Arbeitsgruppe eingesetzt. Sie ist für die weitere Verbesserung unserer Informationssicherheit verantwortlich. IT-technisch wurde auf diesem Feld schon vieles geleistet. 2017 hat ein externer Berater eine Nullmessung im Rahmen der Datenschutz-Grundverordnung vorgenommen. Anhand dessen haben wir die notwendigen Schritte unternommen, um seit 25. Mai 2018 dem Gesetz zu genügen. So haben wir 2018 den Zeeman-Verhaltenskodexes Internet, E-Mail und Social Media eingeführt. Außerdem haben wir 2018 einen Compliance Officer eingestellt, der unter anderem für das Konzept im Rahmen der Datenschutz-Grundverordnung zuständig ist.

Die Risiken der Produkthaftung und des Markenrechts können beträchtlich sein. Denn wenn etwas passiert, sind die Auswirkungen oft enorm. Um die Risiken zu begrenzen, lassen wir sämtliche Produkte im Herkunftsland vom TÜV Rheinland, einem internationalen Akteur auf dem Gebiet der Qualität, Sicherheit, Gesundheit und Nachhaltigkeit, testen. Außerdem nehmen wir strukturell in speziell dafür eingerichteten Beratungsstrukturen (dem sogenannten, Product Council') sorgfältig alle gelieferten Muster unter die Lupe, um eine mögliche Verletzung des Markenrechts und Qualitätsprobleme zu vermeiden.

Im Einzelhandel ist Betrug in den Läden ein gängiges Problem (sowohl intern als auch extern). Um dieses Risiko abzudecken, haben wir in den Läden eine straff organisiertes administrative Organisation und interne Kontrolle.

Außerdem gibt es ein Team aus acht Loss & Prevention Representatives, das unter anderem Filialbesuche macht und kontrolliert, ob die Regeln und Abläufe von allen eingehalten werden. 2019 haben wir ein neues BI Tool entwickelt und eingeführt, sodass die Loss & Prevention Representatives per Fernzugriff sämtliche Kassentransaktionen verfolgen und interpretieren können

Das Zinsrisiko wurde mit drei Zinscaps abgedeckt. Somit sind 60% des revolvierenden Teils abgedeckt. Die Zinscaps haben eine unterschiedliche Laufzeit. So wird das Risiko möglichst gestreut.

Das Kreditrisiko ist für Zeeman als Ladenunternehmen äußerst begrenzt. Das hängt damit zusammen, dass unsere Kunden gleich im Laden abrechnen.

Wir sind Währungsrisiken unterworfen, da wir in US$ (Fernost) und Renminbi (China) einkaufen. Diese Risiken decken wir ab, indem wir zum Zeitpunkt des Einkaufs Währungsterminverträge abschließen.

Wir überwachen fortlaufend unser Betriebskapital und reagieren auf Veränderungen und Entwicklungen.

Die Folgen von Covid-19 für unser Unternehmen 2021

Das Ausmaß und die Dauer der Pandemie bleiben unsicher. Die Impfungen laufen auf Hochtouren. Daher ist zu erwarten, dass sich die Lage zum Sommer 2021 bessern wird. Bis dahin sind wir noch etlichen Beschränkungen unterworfen. Derzeit stellt sich die Situation so dar:

	2. Lockdown	3. Lockdown	Click&Collect / Click&Meet
Belgien	November '20		29/03 - 23/04
Deutschland	16/12 - 07/03		07/03 - 17/04
Frankreich	30/10 - 27/11	03/04 - 01/05
Luxemburg	26/12 - 10/01
Niederlande	15/12 - 09/02/21		10/02/21 - 18/04/21
Österreich	25/12 - 7/02	01/04 -11/04
Spanien	begrenzter Lockdown	begrenzter Lockdown

Wie bereits in Abschnitt 26 (Ereignisse nach dem Bilanzdatum) im Nachhaltigkeitsbericht erläutert, haben der Covid-19-Ausbruch und die Maßnahmen, die aufgrund dessen von den Behörden zur Eindämmung des Virus getroffen wurden, 2021 bereits Folgen für unser Unternehmen gehabt.

Neben den bereits bekannten Auswirkungen führt die makroökonomische Unsicherheit zur Störung der wirtschaftlichen Aktivität, außerdem herrscht Unsicherheit über die eventuellen langfristigen Folgen für unsere Konzernaktivitäten. Das Ausmaß und die Dauer dieser Pandemie bleiben unsicher, werden sich aber aller Voraussicht nach auf unsere Ergebnisse auswirken. Unser finanzieller Puffer reicht aus, um diese Einflüsse auffangen zu können.

Wie schon 2020 haben wir uns auch Anfang 2021 gemeinsam mit Geschäftsleitung und Management die notwendigen Maßnahmen vorgenommen, um die negativen Auswirkungen auf das Ergebnis und den Cashflow möglichst zu begrenzen.

Es wurde beschlossen, NOW-4 nicht in Anspruch zu nehmen. Allerdings haben wir außerhalb der Niederlande die zeitlich befristeten Regelungen zum Kurzarbeitergeld in Anspruch genommen.

Wie bereits 2020 haben wir auch jetzt wieder das Investitionsbudget reduziert und zwar um € 12 Millionen (von € 54,4 Millionen auf € 42,2 Millionen).

Erwartungen und Aussichten

Das Budget 2021, das von der Geschäftsleitung aufgestellt und vom Aufsichtsrat gebilligt wurde, ist infolge Covid-19 überholt.

Wie bereits in Abschnitt 26 (Ereignisse nach dem Bilanzdatum) im Nachhaltigkeitsbericht erläutert, haben der Covid-19-Ausbruch und die Maßnahmen, die aufgrund dessen von den Behörden zur Eindämmung des Virus getroffen wurden, in den ersten fünf Monaten 2021 bereits Folgen für unser Unternehmen gehabt.

In den ersten fünf Monaten 2021 mussten wir einen Schwund der Einnahmen gegenüber dem Vergleichszeitraum 2019 hinnehmen. Da wir während der ersten fünf Monate 2020 ebenfalls mit Lockdowns, wenn auch ganz anderer Art, zu tun gehabt haben, ist ein Vergleich zwischen 2021 und 2020 nicht realistisch. Deshalb vergleichen wir 2021 mit 2019.

Der Konzern hatte für 2021 einen ehrgeizigen Investitionsplan (€ 54,4 Millionen), den wir für notwendig erachtet haben, um das Umsatzwachstum zu beschleunigen. In Anbetracht der Covid-19-Situation haben wir jedoch die Investitionen auf das Niveau der Verpflichtungen, die wir bis zum Lockdown in den verschiedenen Ländern eingegangen waren, heruntergefahren. Dadurch fällt das Investitionsniveau auf € 42,2 Millionen zurück. Im Vergleich zu den vorangegangenen Jahren ist das noch immer ein hohes Investitionsniveau. Anfang 2021 haben wir nämlich mit der Mechanisierung des Distributionszentrums (eine Investitionen in Höhe von€ 13,5 Millionen) begonnen. Dieses Projekt ist unerlässlich, um das Umsatzwachstum zu beschleunigen. Wir hegen keinerlei Pläne, den Personalbestand zu reduzieren. Allerdings haben wir bis auf Weiteres einen intelligenten Einstellungsstopp eingeführt. Nur die dringend notwendigen Stellen werden besetzt.

Nach und während der Umsatzerholung wird Zeeman die ausgesetzte Strategie so weitgehend fortführen. Allerdings wird das Tempo möglicherweise Verzögerungen erleiden.

Anfang 2021 haben wir wieder Gespräche mit den Banken aufgenommen, da vorherzusehen war, dass wir nach dem 31. Mai 2021 möglicherweise nicht alle Vereinbarungen erfüllen können. Zudem hatten wir 2020 eine Zusatzvereinbarung über die Höhe der EBITA für den Zeitraum vom 1. Oktober 2020 bis 31. März 2021 getroffen. Diese Vereinbarung haben wir, insbesondere durch den Lockdown in Deutschland und den Niederlanden in den Monaten Januar und Februar 2021, verfehlt.

Im April 2021 hatten wir eine Zusatzvereinbarung mit den Banken über folgende Ausgangspunkte getroffen:

•	einen ,Convenant Holiday' bis 31. Dezember 2021.
•	ein ebitda-Niveau für das zweite Quartal, das zweite + dritte Quartal und das zweite + dritte + vierte Quartal.
•	eine Mindestliquidität von € 5 Millionen.
•	einen positiven Cashflow im Mai und Juni 2021.
•	Verlängerung des Roll-over-Darlehens in Höhe von € 20 Millionen bis 1. Juli 2022.

Nachhaltigkeit

Covid-19: Der Mensch als Maß aller Dinge

Trotz des außergewöhnlichen Jahres haben wir unseren Fokus auf Nachhaltigkeit nicht aus dem Blick verloren. Im Gegenteil, er erschien uns wichtiger denn je. Das haben wir unter Beweis gestellt, indem wir an unseren Grundsätzen festgehalten haben. Obwohl wir vor zahlreichen Herausforderungen stehen, führen wir mit unseren Lieferanten, mit denen wir oft schon seit Jahrzehnten zusammenarbeiten, weiterhin einen transparenten Dialog. Die Lockdowns in unseren Produktionsländern haben sich auf unsere Partner ausgewirkt. In den Produktionsländern Indien und Bangladesch haben die Behörden die Mindestlöhne während des Lockdowns im April 2020 bis auf die Hälfte gekürzt. Daher hat Zeeman beschlossen, die Löhne der Arbeiter in diesen Ländern für unseren Produktionsanteil bei diesen Lieferanten zu kompensieren

Erster Brand Performance Check durch Fair Wear

Mit dem Beginn unserer Mitgliedschaft Ende 2019 hat die Zusammenarbeit mit der Nichtregierungsorganisation Fair Wear 2020 weiter Gestalt angenommen. Fair Wear ist uns dabei behilflich, eine positive Veränderung in der Fabrik zu erwirken. Fair Wear überwacht mit Hilfe eines ,Brand Performance Check' auch die Integration der Nachhaltigkeit in unsere Einkaufspraktiken. Wir erwarten für 2020 ein erfreuliches' Ergebnis und das ist ein guter Ausgangspunkt, um in den kommenden Jahren auf den höchsten Status als ,Leader' hinzuarbeiten.

Nachhaltige Einkaufspraktiken

2020 hatten wir unsere Lieferanten gebeten, uns nach der Art und Weise, wie wir mit ihnen zusammenarbeiten, zu beurteilen. Über einen anonymen Fragebogen haben sie ihre Meinung zu Themen wie Sampling, Preisverhandlungen und Planung geäußert. Die Ergebnisse dieser Befragung werden wir 2021 einsetzen, um unsere Einkaufspraktiken nachzubessern.

Roadmap Existenzlohn

Ein wichtiger Bestandteil unserer Roadmap Existenzlohn ist es, mehr Transparenz in die Situation bei unseren Lieferanten im Hinblick auf das Lohnniveau zu erhalten. Diese Daten haben wir mittlerweile bei 32% unserer Lieferanten erhoben. Das Ziel von 40% wurde somit nicht erreicht, da wir wegen der Covid-19-Pandemie weniger Fabriken als geplant einem Audit unterziehen konnten. Das Pilotprojekt Existenzlohn, das wir 2019 erfolgreich bei einem Lieferanten in Pakistan gestartet hatten, läuft weiterhin, außerdem arbeiten wir jetzt mit einem anderen niederländischen Einzelhändler an den Vorbereitungen für ein zweites Pilotprojekt in Indien zusammen. 2021 werden wir mit maßgeblichen Stakeholdern einen konkreten Maßnahmenkatalog erstellen, der als Ausgangspunkt bei der phasenweise Einführung eines Existenzlohns bei unseren Lieferanten dienen soll.

Roadmap Umweltbelastung durch Fabriken

2020 haben wir die Erfassung unserer Zulieferer fortgesetzt. Das betrifft Angaben zu Fabriken, in denen Kleidung und Textilien gewaschen, gefärbt oder bedruckt werden. Um die von uns ausgehende Umweltbelastung zu messen, haben wir einen neuen KPI formuliert, in dem wir festlegen, dass unsere Lieferanten eine Färberei/Wäscherei verwenden müssen, die auch über ein Klärsystem verfügt. 2020 waren das 80%, Ende 2021 sollten es 90% sein. Außerdem wurde ein Webinar für unsere Hersteller in China organisiert. Sie wurden von zwei Experten von Modint im verantwortungsvollen Gebrauch von Chemikalien geschult.

Transparenz bleibt unverändert wichtig

Wir verwenden immer mehr nachhaltige Baumwolle, deren Herkunft bereits bekannt ist. Aber beim Anteil herkömmlicher Baumwolle wissen wir das noch nicht. Da Baumwolle aus Risikogebieten wie Westchina und Südindien stammt, in denen immer noch Kinderarbeit und Arbeit unter Zwang vorkommen, haben wir die folgenden KPIs formuliert:

Der Prozentanteil Baumwolle an unserem gesamten Baumwollverbrauch, von dem die Zulieferer bekannt sind, sodass die Herkunft nachverfolgbar ist, sollte Ende 2021 70% betragen.

Immer nachhaltigeres Sortiment

Unser Ziel, dass 25% unserer Kleidungs- und Textilkollektion bis 2020 aus nachhaltiger Baumwolle besteht, haben wir mit 42% bei Weitem erreicht. Ende 2021 wollen wir die 50% erreichen. Wenn wir uns den Gesamtanteil des gesamten nachhaltigen Materials ansehen, lag er 2020 bei 29% Unser Ziel für 2021 liegt bei 35%.

Zirkuläre Wirtschaft

Auch für Zeeman ist die Entwicklung von einer linearen zur zirkulären Wirtschaft wichtig. Das möchten wir mit folgenden Aktivitäten erreichen: Seit Juni 2021 finden die Kunden in sechs Zeeman-Filialen ein abwechslungsreiches Angebot an Second-Hand-Kleidung unter der Bezeichnung ,resale'. Diese Kategorie besteht aus Baby, Kinder- und Damenkleidung allerhand Marken. In diesen sechs Filialen kann auch gebrauchte Kleidung abgegeben werden und zwar nicht nur Zeeman-Kleidung, sondern auch Kleidung anderer Marken ist willkommen.

Das Pilotprojekt wurde in Zusammenarbeit mit der Organisation ,Het Goed` initiiert, die mehr als 25 Kleiderkaufhäuser in den Niederlanden und außerdem fünf Textilsortierzentren hat. Gute Kleidung wird zu neuem Leben erweckt und Kleidung, die nicht mehr getragen wird, recycelt. Mit einigen Partnern in der Recyclingkette wollen wir in den Niederlanden einen Kreislaufartikel aus ,Postconsumer waste´ herstellen lassen.

Nominierung zum Sustainable Retailer des Jahres

Wir wurden gemeinsam mit Fairphone und Mud Jeans von einer Fachjury als Sustainable Retailer des Jahres nominiert. Mud Jeans hat diese Kür zu Recht für sich entschieden.

E.J.E.V. Mares (C.E.O.)

A.W.M. van Bolderen (C.F.O.)

Financial Report 2020

Zeeman Groep B.V. De Schans 15, 2405XX Alphen aan den Rijn. Commercial Register No. 28047313

Contents

Directors' report

Financial Statements

Consolidated financial statements

Consolidated balance sheet as at 31 December 2020

Consolidated income statement for the year ended 31 December 2020

Consolidated cash flow Statement for the year ended 31. December 2020

Notes to the Consolidated balance sheet and income Statement

Company financial statements

Balance sheet as at 31 December 2020

Income statement for the year ended 31 December 2020

Notes to the Company balance sheet and income Statement

Other information

Articles of association governing profit appropriation

Independent auditor's report

Directors' report

The directors' report is available at the head office of Zeeman Groep B.V.

Financial statements

Consolidated financial statements

Consolidated balance sheet as at 31 December 2020

(Before appropriation of result)

(€ '000)		31-12-20	31-12-19
	Note
Assets
Fixed assets
Intangible fixed assets	5	7.611	5.507
Tangible fixed assets	6	71.622	68.820
Financial fixed assets	7	1.266	1.534
		80.499	75.861
Current assets
Inventories	8	126.005	118.747
Receivables	9	8.635	7.651
Cash at banks and in hand	10	16.164	15.209
		150.804	141.607
Total assets		231.303	217.468
(€ '000)		31-12-20	31-12-19
	Note
Shareholders' Equity and Liabilities
Group equity
Shareholders' Equity	11	128.488	99.269
Provisions	12	990	1.029
Current liabilities	13	101.825	117.170
Total Shareholders' equity and liabilities		231.303	217.468

Consolidated income statement for the year ended 31 December 2020

(€ '000)		2020	2019
	Note(s)
Net turnover	16	616.645	639.052
Cost of sales		-318.204	-325.597
Gross profit		298.441	313.455
Selling expenses	17 - 20	-243.396	-262.833
General management expenses	17 - 20	-27.639	-30.545
Total costs		-271.035	-293.378
Operating profit		27.406	20.077
Financial income and expense	21	-1.381	-1.782
Result before tax		26.025	18.295
Tax on result	24	-6.521	-5.076
Result after tax		19.504	13.219
Attributable to:
Owners of Zeeman Groep B.V.		19.504	13.219
Other comprehensive income/(expense)
Items that will not be reclassified to profit and loss
(net of taks)

(€ '000)		2020	2019
	Note(s)
Foreign currency translation differences		-285	94
Total comprehensive income/(expense)		19.219	13.313
Attributable to:
Owners of Zeeman Groep B.V.		19.219	13.313

Consolidated cash flow statement for the year ended 31 December 2020

(€ '000)		2020	2019
	Note
Cash flow from operating activities
Operating profit		27.406	20.077
Adjustments for:
Amortization of intangible fixed assets	5	1.971	1.427
Depreciation of tangible fixed assets	6	16.523	16.528
Accelerated depreciation due to disposal	18	730	1.131
		19.224	19.086
Movements in working capital:
Inventories	8	-7.258	-7.369
Receivables	9	-2.009	-71
Current liabilities	13	1.704	12.012
		-7.563	4.572
Cash generated from operations		39.067	43.735
Interest received	21	0	0
Corporate income tax received		2.208	714
Interest paid	21	-1.518	-1.736
Corporate income tax paid		-4.796	-5.010
		-4.106	-6.032
Net cash generated from operating activities		34.961	37.703
Cash flow used in investment activities
Investments intangible fixed assets	5	-4.075	-2.991
Investments tangible fixed assets	6	-20.055	-20.333
Net cash generated from investment activities		-24.130	-23.324
Cash flow used in financing activities
Dividends paid	30	0	-6.505
Movement in debts to lending institutions	13	-20.000	-3.000
Movement in share premium account		10.000	0
Net cash generated from financing activities		-10.000	-9.505
Net cash flows		831	4.874

Consolidated cash flow statement for the year ended 31 December 2020

(€ '000)		2020	2019
	Note
Exchange gains/(losses) on cash at banks and in hand	21	178	-39
Net increase in cash at bank and in hand		1.009	4.835
The movements in cash at banks and in hand can be broken down as follows:
Balance as at 1 January		13.235	8.400
Movements during the financial year		1.009	4.835
Balance as at 31 December		14.244	13.235

Due to it's permanent character the bankoverdraft and debts to lending institutions (note 13) are not presented as cash at banks. As a consequence the movements in bankoverdrafts are presented as movements in current liabilities and the movements in debts to lending institutions are presented as cash flow from financing activities.

If the bankoverdraft and debts to lending institutions would be presented as cash at banks the movements can be broken down as follows:

Balance as at 1 January	-36.765	-44.600
Movements during the financial year	21.009	7.835
Balance as at 31 December	-15.756	-36.765

Notes to the consolidated balance sheet and income statement

1 General notes

1.1 Activities

The activities of Zeeman Groep B.V. and its group companies ('Zeeman Groep') consist mainly of trade in retail businesses in the domain of Household Textile, Underwear, Leg wear, Baby/Children's clothing, Ladies clothing, Male clothing, Accessories, Life style and Non-Textile. Sales take place both domestically and internationally.

1.2 Implications of COVID-19 on our business

As explained in paragraph 26 (Events after the balance sheet date) in the financial statements the Covid-19 outbreak and the measures by various governments, in consequence taken to the virus to contain, already had an impact on our business. In 2020 we have faced various lockdowns. However after the lockdown periods the turnover was excellent so that part of the lost turnover could be recovered. In the end our 2020 result exceeds 2019. In the first five months of 2021 we are again faced with lockdown and click&meet measures. Considering the current vaccination programs in the various countries it is expected that Covid-19 will be under control around the summer of 2021.

In addition to the effects already known, macroeconomic uncertainty will distort economic activity. In 2020 our brand has proven to be strong. After the lockdown periods our turnover was excellent. Our LFL growth was 13,3% in 2020. During the first 3 months of 2021 the LFL turnover was 5,4%. This growth was negatively effected by Click&Meet in Germany and The Netherlands. The scale and duration of this pandemic remain uncertain, but is expected to impact our results. However our financial buffers are sufficient to absorb these influences.

The main risks arising from the uncertain situation regarding Covid-19 are:

•	Supply chain: The majority of our merchandise is purchased in the Far East and Turkey. Supply stagnates in a number of areas. In particular, part of production in Turkey has been stopped as a result of stagnating demand, mainly from third parties. We can compensate for this by moving purchases to other countries.
•	Turnover: In Germany and The Netherlands local government decided for a 'lockdown' as of mid-December 2020 till the end of February 2021. In March 2021 both countries decided not to reopen but accept Click&Meet. France decided for a lockdown of 4 weeks as of 3 April 2021. Belgium decided for Click&Meet for 4 weeks as of 23 March 2021. We expect that we can only realise 50% of our normal turnover during the Click&Meet period.
•	Stocks and margins : As a result of a significant drop in turnover, we had to intervene in the regular supply of goods. Some orders have been cancelled and many orders were postponed to the second half of the year. We noticed in this process we get a lot of cooperation from our suppliers under long-term relationships with Zeeman in which we always fulfilled our commitments within the agreed deadlines, even during this crisis. In this way, our stocks remain at the same level, both quantitatively and qualitatively, so that the margins remain intact.
•	Government assistance measures: In order to mitigate the COVID-19 outbreak on our liquidity and results we use all schemes offered by each government in the various countries.
•	Unemployment benefits have been applied for and obtained for the employees.
•	In The Netherlands Zeeman applied for the NOW-1 subsidy. Based on the loss in turnover during the period of 1 March 2020 till 31 May 2020 in comparison with the turnover in the same period in 2019, Zeeman is entitled to a subsidy of € 5,3 million. As results were developing very positively after the first lockdowns, the Supervisory Board and the Shareholder considered repayment in full of Now-1 subsidy. However considering the developments as of the 1 November 2020 meaning the second lockdown in Belgium and France and the lockdown as of mid December 2020 in Germany and The Netherlands, which lasted till the end of February 2021, followed by Click&Meet and Click&Collect measurements, it was decided not to repay the NOW-1. It was also decided not to apply for NOW-4 although the developments in 2021 give a valid reason to do so.
•	Profitability: The drop in turnover is very significant but the loss in revenues can be largely set off by the governmental aid and any other taken cost cutting measures.
•	Financing and liquidity: As can be read in paragraph 14 of the financial statements, Zeeman has bank facilities of up to € 160 million. We can bear the effects of Covid-19 within these banking facilities . However, it is expected that the covenants, that underlie this funding, will be partially exceeded. We entered into early discussions with the banks about this and received a waiver with a term until December 31. 2021.
•	Internal control: Zeeman is an organization that is centrally managed from the head office in Alphen aan den Rijn. Abroad we mainly have sales staff and field staff. Temporary unemployment benefit has been applied for employees abroad. Only the Sales leaders are still fully employed and the Region Managers for 1 day a week until the 'lockdown' in the country concerned is withdrawn. The sales and field staff work remotely as they normally do. The shops are open in The Netherlands. We request customers to use debet/credit cards for payment, as much as possible. That is also done en masse. As a result, the risk of fraud in the store is minimal . Service office employees work at home en masse. For some functions it is less efficient to work from home. In addition, in some areas there is less work as a result of shop closings abroad. On average, about 20 % of all employees are present in the Service Office. This mainly concerns employees of HR, Controlling and Administration and 1 or 2 board members. Furthermore, various communication lines have been set up in order to provide information to all employees as well as for consultation. This keeps the bond within the company strong.

COVID-19 is expected to have consequences for the Zeeman group, but these will not be significant. So continuity is not up for debate.

Expectations and prospects

The 2021 budget as drawn up by the Management Board and approved by the Supervisory Board is partly obsolete as a result of Covid-19. As explained in section 26 (subsequent events) in the financial statements, the Covid-19 outbreak and resulting measures, taken by various governments, to contain the virus, have already affected our business in the first four months of 2021. We have experienced a decline in revenues and a € 7,2 million lower profitability for the first 4 months of 2021 compared to the same period in 2020. The group had an ambitious investment plan (€ 54.4 million) for 2021, which we considered necessary to accelerate sales growth. However, given the Covid-19 outbreak, we have reduced investments to the level of the commitments that we have entered into until the 'lockdown' in the various countries . As a result, the investment level drops to € 42,2 million . We have no plans to reduce the workforce. However we introduced, till further notice, an 'intelligent vacancy stop'. Only the most necessary vacancies are filled. After and during the recovery of the turnover, Zeeman will continue to pursue the strategy as far as possible. Only the pace at which this may be delayed.

Whilst uncertain, we do not believe, however, that the impact of the COVID-19 virus would have a material adverse effect on our financial condition or liquidity.

1.3 Registered office, legal form and registration number at the chamber of commerce

The registered and actual address of Zeeman Groep B.V. is De Schans 15, 2405XX in Alphen aan den Rijn and registered at the chamber of commerce under number 28047313.

1.4 Group structure

Zeeman Groep B.V. is the head of the group. The shares of Zeeman Groep B.V. are held by Kalamaris B.V., Kalamaris II B.V. and Vinke Amsterdam B.V.

1.5 Consolidation

The consolidation includes the financial information of Zeeman Groep B.V. and it's group companies in which it exercises control or whose central management it conducts. The group companies in which Zeeman Groep B.V. exercises control or whose central management it conducts are consolidated in full.

Intercompany transactions, profits and balances among group companies and other consolidated entities are eliminated, unless these results are realised through transactions with third parties. Unrealised losses on intercompany transactions are also eliminated, unless such a loss qualifies as an impairment. The accounting policies of group companies and other consolidated entities have been changed where necessary, in order to align them to the prevailing group accounting policies.

The consolidated companies are listed below:

	ZEEMAN textielSupers B.V., Alphen aan den Rijn, the Netherlands (100%)
	ZEEMAN textielSupers N.V., Merksem, Belgium (100%)
	Zeeman textielSupers GmbH, Kleve, Germany (100%)
	G+W Wahler der Modemarkt GmbH, Kleve, Germany (100%)
	Zeeman textielSupers S.a r.l, Paris, France (100%)
	Zeeman textielSupers S.à r.l, Esch-sur-Alzette, Luxembourg (100%)
	ZEEMAN textielSupers, SLU, Barcelona, Spain (100%)
	ZEEMAN textielSupers GmbH, Wien, Austria (100%)
	Profitex Import Export Company Ltd, Hong Kong (100%)
	Romanee Ltd, Hong Kong (100%)

1.6 Section 402, Book 2 of the Dutch Civil Code

Since the income statement for 2020 of Zeeman Groep B.V. is included in the consolidated financial statements, an abridged income statement has been disclosed (in the company financial statements) in accordance with Section 402, Book 2 of the Dutch Civil Code.

1.7 Related parties

All legal entities that can be controlled, jointly controlled or significantly influenced are considered to be a related party. Also entities which can control the Company are considered to be a related party. In addition, statutory directors, other key management of Zeeman Group or the ultimate parent company and close relatives are regarded as related parties.

Transactions with related parties are disclosed in the notes insofar as they are not transacted under normal market conditions. The nature, extent and other information is disclosed if this is necessary in order to provide the required insight.

1.8 Acquisition and disposal of group companies

Identifiable assets acquired and liabilities assumed in a business combination are recognized in the consolidated financial statements from the acquisition date, being the moment that control can be exercised over the acquired company.

Entities continue to be consolidated until they are sold, they are deconsolidated from the date that control ceases.

1.9 Accounting policies for the cash flow statement

The cash flow statement has been prepared using the indirect method. The cash items disclosed in the cash flow statement comprise cash at banks and in hand. Cash flows denominated in foreign currencies have been translated at average estimated exchange rates. Exchange differences affecting cash items are shown separately in the cash flow statement. Interest paid and received, dividend received and income taxes are included in cash from operating activities. Dividends paid are recognized as cash used in financing activities.

Transactions not resulting in inflow or outflow of cash are not recognized in the cash flow statement.

1.10 Judgements, estimates and uncertainties

In applying the principles and policies for drawing up the financial statements, the directors of Zeeman Groep B.V. make different estimates and judgments that may be essential to the amounts disclosed in the financial statements. If it is necessary in order to provide the transparency required under Book 2, article 362, paragraph 1, the nature of these estimates and judgments, including assumptions related to the uncertainties, is disclosed in the notes to the relevant financial statement item.

2 Accounting policies applied to the valuation of assets and liabilities

2.1 General

The financial statements are drawn up in accordance with the provisions of Title 9, Book 2 of the Dutch Civil Code and the firm pronouncements in the Dutch Accounting Standards, as published by the Dutch Accounting Standards Board ('Raad voor de Jaarverslaggeving').

Assets and liabilities are generally valued at historical cost, production cost or at fair value at the time of acquisition. If no specific valuation principle has been stated, valuation is at historical cost. In the balance sheet, income statement and the cash flow statement, references are made to the notes.

2.2 Comparison with previous year

The valuation principles and method of determining the result are the same as those used in the previous year.

2.3 Foreign currency

Functional currency

Items included in the financial statements of group companies are measured using the currency of the primary economic environment in which the respective group company operates (the functional currency). The consolidated financial statements are presented in euros, which is the functional and presentation currency of Zeeman Groep.

Transactions, receivables and liabilities

Transactions in foreign currencies are stated in the financial statements at the exchange rate of the functional currency on the transaction date.

Monetary assets and liabilities in foreign currencies are converted to the closing rate of the functional currency on the balance sheet date.

The translation differences resulting from settlement and conversion are credited or charged to the income statement, unless hedge -accounting is applied.

Non-monetary assets valued at historical cost in a foreign currency are converted at the exchange rate on the transaction date.

Group companies

Assets and liabilities of consolidated subsidiaries with a functional currency different from the presentation currency are translated at the rate of exchange prevailing at the balance sheet date; income and expenses are translated at average exchange rates during the financial year. Any resulting exchange differences are taken directly to the legal reserve for translation differences within equity.

2.4 Operational lease

The company may have lease contracts whereby a large part of the risks and rewards associated with ownership are not for the benefit of nor incurred by the company. The lease contracts are recognized as operational leasing. Lease payments are recorded on a straight-line basis, taking into account reimbursements received from the lessor, in the income statement for the duration of the contract.

2.5 Intangible fixed assets

Intangible fixed assets are stated at historical cost less amortization. Impairments are taken into account; this is relevant in the event that the carrying amount of the asset (or of the cash-generating unit to which the asset belongs) is higher than its realizable value.

With regard to the determination as to whether an intangible fixed asset is subject to an impairment, please refer to note 2.8 "Impairment of fixed assets".

2.6 Tangible fixed assets

Tangible fixed assets are valued at historical cost or production cost including directly attributable costs, less straight-line depreciation based on the expected future life and impairments. With regard to the determination as to whether a tangible fixed asset is subject to an impairment, please refer to note 2.8 "Impairment of fixed assets".

For the recognition of cost of repairs and for major maintenance of property, plant and equipment, the component approach is used.

2.7 Financial fixed assets

Deferred tax assets

Deferred tax assets are recognized for all deductible temporary differences between the value of the assets and liabilities under tax regulations on the one hand and the accounting policies used in these financial statements on the other, on the understanding that deferred tax assets are only recognized insofar as it is probable that future taxable profits will be available to offset the temporary differences and available tax losses.

The calculation of the deferred tax assets is based on the tax rates prevailing at the end of the reporting year or the rates applicable in future years, to the extent that they have already been enacted by law.

Deferred income taxes are recognized at nominal value.

2.8 Impairment of fixed assets

On each balance sheet date, the company assesses whether there are any indications that a fixed asset may be subject to impairment. If there are such indications, the realizable value of the asset is determined. If it is not possible to determine the realizable value of the individual asset, the realizable value of the cash-generating unit to which the asset belongs is determined.

An impairment occurs when the book value of an asset is higher than the realizable value; the realizable value is the highest of the realizable value and the value in use. An impairment loss is directly recognized in the income statement while the carrying amount of the asset concerned is concurrently reduced.

If it is established that an impairment that was recognized in the past no longer exists or has reduced, the increased carrying amount of the asset concerned is set no higher than the carrying amount that would have been determined if no impairment value adjustment for the asset concerned had been reported.

2.9 Inventories

Inventories (stocks) are valued at historical price based on the average cost price of the last two years or lower realizable value.

The historical cost consists of all costs relating to the acquisition and the costs incurred in order to bring the inventories to their current location and current condition.

The realizable value is the estimated sales price less directly attributable sales costs. In determining the realizable value the obsolescence of the inventories is taken into account.

2.10 Receivables

Receivables are recognized initially at fair value and subsequently measured at amortized cost. If payment of the receivable is postponed under an extended payment deadline, fair value is measured on the basis of the discounted value of the expected revenues. Interest gains are recognized using the effective interest method. When a trade receivable is uncollectible, it is written off against the allowance account for receivables.

2.11 Cash at banks and in hand

Cash at banks and in hand represent cash in hand (in the stores), bank balances and deposits with terms of less than twelve months. Overdrafts at banks are recognized as part of debts to lending institutions under current liabilities. Cash at banks and in hand is carried at nominal value.

2.12 Provisions

General

Provisions are recognized for legally enforceable or constructive obligations that exist at the balance sheet date, and for which it is probable that an outflow of resources will be required and a reliable estimate can be made. Provisions are measured at the best estimate of the amount that is necessary to settle the obligation as per the balance sheet date. The provisions are carried at the nominal value of expenditure that is expected to be necessary in order to settle the obligation, unless stated otherwise.

Deferred tax liabilities

Deferred tax liabilities are recognized for temporary differences between the value of the assets and liabilities under tax regulations on the one hand and the book values applied in these financial statements on the other. The computation of the deferred tax liabilities is based on tax rates prevailing at the end of the reporting year or the rates applicable in future years, to the extent that they have already been enacted by law.

Deferred tax balances are valued at nominal value.

Other provisions

The other provisions are valued at nominal value.

2.13 Current liabilities

On initial recognition current liabilities are recognized at fair value. After initial recognition current liabilities are recognized at the amortized cost price, being the amount received, taking into account premiums or discounts, less transactions costs. This usually is the nominal value.

2.14 Financial instruments

Zeeman Groep applies cost price hedge accounting to interest rate caps that ensure that certain liabilities with variable interest rates are converted into loans with fixed interest rates. The ineffective portion of the change in value of the interest rate cap is recognized in profit or loss under the financial income and expenses.

Zeeman Groep also uses cost price hedge accounting for its forward exchange rate contracts intended for future purchases in US dollars and CNYs. Where appropriate, the gain or loss relating to the ineffective portion of the change in value of forward exchange contracts is recognized in the income statement within financial income and expenses.

In applying cost price hedge accounting, the initial recognition of, and the accounting policies for, the hedging instrument are dependent on the hedged item, which has the following implications:

•	If the hedged item is recognized at cost in the balance sheet, the derivative instrument is also stated at cost.
•	As long as the hedged item is not yet recognized in the balance sheet, the hedging instrument is not remeasured. This applies, for instance, to hedging currency risks on future transactions.
•	If the hedged item qualifies as a monetary item denominated in a foreign currency, the derivative instrument, where it has currency elements, is also stated at the spot rate at the balance sheet date.

If the derivative instrument has currency elements, the difference between the spot rate on the date the derivative instrument is contracted and the forward rate at which it will be settled is spread over the maturity of the derivative instrument.

3 Principles for the determination of the result

3.1 General

The result is the difference between the realizable value of the goods provided and the costs and other charges during the year. The results on transactions are recognized in the year in which they are realized.

3.2 Revenue recognition

Net turnover comprises the income from the supply of goods after deduction of discounts and such like and of taxes levied on the turnover and after elimination of the transactions within Zeeman Groep.

Revenues are recognized when all significant risks and rewards in respect of the goods have been transferred to the buyer.

3.3 Cost of sales

Cost of sales of the goods attributable to the revenue consists of historical costs reduced with the received discounts plus the direct attributable internal and external costs of purchasing, supply and storage, such as warehouse and expedition costs and the cost of the purchasing department. In the cost of sales the obsolescence of the inventories to lower realizable value is also taken into account.

3.4 Selling expenses

Selling expenses represents all costs directly related to the sales-, promotion-, and advertising activities.

3.5 Rental costs

In general rental costs are recognized in the results in the applicable period. Rental discounts are stipulated at the start of new rental contracts. These discounts are negotiated as a bridge for the renovation period and the growth of the new store. These rental discounts are directly included in the result and are not spread over the term of the rental contracts to which the rental discount relates.

During Covid-19 discounts were granted by the landlords. These discounts were also recognised in the results in the applicable period.

3.6 General management expenses

This includes all related costs, within the business, that are not directly attributable to cost of the goods sold or cost of sales and that can't be recognized under the financial income and expenses.

Amortization/depreciation costs are not presented as a separate item in the income statement. These costs have been recognized in other components of the income statement, i.e. cost of sales, selling expenses and general management expenses.

3.7 Employee cost (employee benefits)

General

Employee costs (wages, salaries, social security contributions, etc.) are not presented as a separate item in the income statement. These costs are included in other components of the income statement, i.e. cost of sales, selling expenses and general management expenses. For a specification, reference is made to the relevant note.

Short-term employee costs

Salaries, wages and social security contributions are charged to the income statement based on the terms of employment, where they are due to employees and the tax authorities respectively.

Pensions

Zeeman Groep pays premiums based on legal, contractual requirements and backservice to pension funds and insurance companies. Apart from the payment of premiums and backservice Zeeman Groep has no further obligations under these pension schemes. Premiums and backservice are recognized as employee costs when they are due.

The premium payable during the financial year is charged to the result. Zeeman Groep has a number of pension schemes for its employees, including pension fund industry. In case of a deficit at the pension fund industry, Zeeman Groep has no obligation to make additional contributions, other than possibly higher future premiums. For a number of employees, Zeeman Groep has an excedent pension scheme.

3.8 Amortization of intangible and depreciation of tangible fixed assets

Amortisation and depreciation costs are not presented as a separate item in the income statement. These costs have been recognized in other components of the income statement, i.e. cost of sales, selling expenses and general management expenses. For a specification, reference is made to the relevant note.

Intangible fixed assets are amortized and tangible fixed assets are depreciated over their estimated useful lives as from the moment they are ready for use.

Future depreciation and amortisation is adjusted if there is a change in estimated future useful life.

Gains and losses from the occasional sale of tangible fixed assets are included in depreciation.

3.9 (Government) subsidies

Operating subsidies are recorded as income in the income statement in the year in which the subsidized costs were incurred or income was lost or when there was a subsidized operating deficit. Income is recognized when it is probable that it will be received.

Subsidies related to investments in tangible fixed assets are deducted from the asset to which they relate and recorded in the income statement as part of the depreciation costs.

Most of the subsidies relate to wage subsidies.

3.10 Financial income and expense

Interest income and interest expenses

Interest income and expenses are recognized on a pro rata basis, taking account of the effective interest rate of the assets and liabilities to which they relate. In accounting for interest expenses, the recognized transaction expenses for loans received are taken into consideration. Interest income and expenses and bank costs are recognized under financial income and expenses.

Currency translation differences

Currency translation differences arising upon the settlement or conversion of monetary items are recognized in the income statement in the period that they are realized, unless hedge-accounting is applied.

3.11 Income tax

Tax on the result is calculated based on the result before tax in the income statement, taking account of the losses available for setoff from previous financial years (to the extent that they have not already been included in the deferred tax assets) and exempt profit components and after the addition of non-deductible costs. Due account is also taken of changes which occur in the deferred tax assets and deferred tax liabilities in respect of changes in the applicable tax rate.

4 Financial instruments and risk management

4.1 Price risk

Currency risk

Zeeman Groep buys its commodities for a major part in the Far East. With respect to sales Zeeman Groep purely operates in the European Union. The currency risk for Zeeman Groep largely concerns positions and future transactions in US dollars and in CNY's. Management has determined, based on a risk assessment, that most of these currency risks need to be hedged. Forward exchange contracts are used for this purpose.

Interest rate and cash flow risk

Zeeman Groep incurs interest rate risk on current liabilities (exclusive debt to financial institutions). Zeeman Groep has contracted interest rate swaps for specific floating-interest liabilities (to banks). Consequently, it receives floating interest and pays fixed interest. The extent and maturity of these derivatives is linked to the extent and maturity of the hedged positions.

4.2 Credit risk

Zeeman Groep does not have any significant concentrations of credit risk. Since most sales take place in its own shops, where the customer directly pays with cash or debit card. The rent receivables at the end of 2020 amount to € 286K (2019 € 4K).

4.3 Liquidity risk

Zeeman Groep does have a total credit facility at the end of 2020 of € 160 million

(2019 € 140 million). The facility is across two banks (ING Bank N.V. and ABN AMRO Bank N.V.) to diminish the liquidity risk. The maturity of € 160 million of the total facility is until 1 July 2022.

5 Intangible fixed assets

Movements in intangible fixed assets can be broken down as follows:

	Software	Rental rights	Total
	€ 0,00	€ '000	€ '000
Balance as at 1 January 2020
Historical costs	17.889	1.814	19.703
Cumulative amortization	-12.826	-1.370	-14.196
Book value	5.063	444	5.507
Movements
Investments	4.052	23	4.075
Disposals	0	-25	-25
Amortization	-1.908	-63	-1.971
Amortization on disposals	0	25	25
Balance	2.144	-40	2.104
Balance as at 31 December 2020
Historical costs	21.941	1.812	23.753
Cumulative amortization	-14.734	-1.408	-16.142
Book value	7.207	404	7.611

The amortization period is 5 years.

6 Tangible fixed assets

Movements in tangible fixed assets can be broken down as follows:

	Buildings	Renovations, hardware, furniture & fittings	Vehicles	Total
	€ '000	€ '000	€ '000	€ '000
Balance as at 1 January 2020
Historical costs	308	266.058	14.042	280.408
Cumulative depreciation	-132	-201.465	-9.991	-211.588
Book value	176	64.593	4.051	68.820
Movements
Investments	0	16.962	3.093	20.055
Disposals	0	-6.091	-1.251	-7.342
Depreciation	-7	-14.972	-1.544	-16.523
Depreciation on disposals	0	5.433	1.179	6.612
Balance	-7	1.332	1.477	2.802
Balance as at 31 December 2020
Historical costs	308	276.929	15.884	293.121
Cumulative depreciation	-139	-211.004	-10.356	-221.499
Book value	169	65.925	5.528	71.622

The used depreciation periods are:

Buildings	33 1/3 years
Renovations	10 years
Furniture & fittings	5 years
Vehicles and hardware	5 years

At the end of each year the store portfolio is evaluated in respect of possible impairment. If the recoverable amount or an asset, of the cash generating unit (a store) to which it belongs, is lower than the carrying amount, an impairment loss will be taken. At the end of 2020 and of 2019 no impairment loss was taken.

7 Financial fixed assets

Financial fixed assets entirely relate to deferred tax assets. One of the German entities has a tax loss carried forward which can be set off against future tax profits.

Movements in deferred tax assets can be broken down as follows:

	2020	2019
	€ '000	€ '000
Balance as at 1 January	1.534	1.932
Utilisation	-268	-398
Balance as at 31 December	1.266	1.534

Annually an amount of approximately € 270K can be compensated.

8 Inventories

	31-12-20	31-12-19
	€ '000	€ '000
Trade goods	94.127	92.237
Goods in transit	34.360	28.396
Provision for obsolescence	-2.482	-1.886
	126.005	118.747

The write down of the inventories to a lower realizable value can be broken down as follows:

	2020	2019
	€ '000	€ '000
Balance as at 1 January	1.886	3.418
Addition	596	0
	2.482	3.418
Utilisation	0	0
Release	0	-1.532

	2020	2019
	€ '000	€ '000
Balance as at 31 December	2.482	1.886

Inventories valued at a lower realizable value have a book value of € 5.991K at the balance sheet date.

9 Receivables

	31-12-20	31-12-19
	€ '000	€ '000
Trade debtors	424	39
Other receivables and accrued assets	8.211	7.612
	8.635	7.651

The fair value of the receivables approximates the carrying amount due to their short-term character and the fact that provisions for bad debts are recognized, where necessary.

Other receivables and accrued assets

	31-12-20	31-12-19
	€ '000	€ '000
Prepaid costs	1.284	1.097
Security deposits	2.801	2.500
Corporate income tax	1.533	2.463
Other receivables	2.593	1.552
	8.211	7.612

10 Cash at banks and in hand

Cash at banks and in hand can be broken down as follows:

	31-12-20	31-12-19
	€ '000	€ '000
Cash in hand	9.238	7.225
Cash at banks	6.926	7.984
	16.164	15.209

All the cash at banks and in hand are at the free disposal of the company.

11 Group equity

The shareholders' equity is detailed in the notes to the company financial statements.

12 Provisions

The provisions exclusively relate to the deferred tax liability.

Zeeman Groep has taxable temporary differences with regard to the provision for obsolescence of the inventories (fiscal by the Mitex method) for an amount of € 925K (2019: € 837K).

Zeeman Groep also makes use of the facility of arbitrary depreciation. At the end of 2020 the amount of this taxable temporary difference is € 65K (2019: € 192K).

Movements in the deferred tax liabilities can be broken down as follows:

	2020	2019
	€ '000	€ '000
Balance as at 1 January	1.029	1.226
Addition	0	0
Utilisation	0	0
Release	-39	-197
Balance as at 31 December	990	1.029

The provisions can be specified as follows (€'000):

	31-12-20	31-12-19
Liabilities < 1 year	974	975
Liabilities > 1 year and < 5 years	16	54
Liabilities > 5 years	0	0

13 Current liabilities

	31-12-20	31-12-19
	€ '000	€ '000
Debts to lending institutions	30.000	50.000
Bank overdraft	1.920	1.974
Debts to suppliers and trade creditors	21.670	24.779
Turnover tax	16.550	10.342
Wage tax and social security charges	2.268	4.324
Pension contributions	1.219	1.062
Others taxes	949	815
Corporate income tax	3.819	1.115
Holiday allowance and holiday provision	10.193	11.184
Other liabilities and accrued liabilities	13.237	11.575
	101.825	117.170

All current liabilities fall due in less than one year. The fair value of the current liabilities approximates the book value due to their short-term character.

The interest rate charged on the bank debts is based on 1-month Euribor. The variable interest expenses are partly converted into fixed interest expenses through interest rate cap contracts. See section 23 for additional information.

14 Bank facilities

The bank provides a total credit facility of € 160 million under joint and several liability of Zeeman Groep and its participations. The facility consists of a committed credit facility of € 115 million and a direct terminable current-account facility up to € 45 million. € 160 million of the total facility have been renewed for the period to 1 July 2022.

The condition for the provided credit facility is that immovable property and assets are not encumbered with a mortgage, a lien or other security except to the extent it results from ordinary activities (negative pledge) and if this does take place, it is equal in rank to the security which is set for the other lending institutions (pari passu).

On behalf of the credit facility there are for € 913K granted to bank guarantees (2019 € 1.473K), of which € 304K (2019: € 886K) relates to the customs depot.

The interest rate charged on the bank debts is based on 1-month Euribor.

A number of covenants applies to the provided credit facility to Zeeman Groep. Zeeman has complied with these requirements at the end of 2020.

	Covenant	2020	2019
Interest coverage ratio	> 4,0	29,9	22,5
Total Net Leverage	< 2,5	0,3	0,9
Solvency ratio	> 25%	54,0%	45,5%

15 Assets and liabilities not recognized in the balance sheet

Operational leasing

The liabilities under the long-term rental agreements for the accommodation of the stores and the head office are not recognized in the balance sheet. These agreements are generally signed for a period of five to ten years.

The rental liabilities can be specified as follows (€'000):

	31-12-20	31-12-19
Liabilities < 1 year	61.458	62.906
Liabilities > 1 year and ≤ 5 years	87.862	105.016
Liabilities > 5 years	14.804	18.313

During the year 2020 an amount of € 64,0 million of the rental expenses was recognized in the income statement (2019: € 64,1 million).

Fiscal unity

For tax purposes, Zeeman Group B.V. and ZEEMAN textielSupers B.V. are a fiscal unity. Pursuant to the Collection of State Taxes Act, the company and its subsidiary are both severally and jointly liable for the tax payable by the combination.

16 Net turnover

	2020	2019
	€ '000	€ '000
The Netherlands	235.961	235.504
Other EU countries	380.684	403.548

2020	2019
€ '000	€'000
616.645	639.052

Net turnover is 100% realized by sale of goods.

17 Wages and salaries

	2020	2019
	€ '000	€ '000
Wages and salaries	135.920	136.604
Wage subsidies	-12.934	-5.185
Social security charges	22.164	23.704
Pension contributions	7.375	7.578
	152.525	162.701

The above employee cost is included in cost of sales, selling expenses and general and administrative expenses, depending on the activities of the employees in question.

See section 19 for additional information concerning subsidies.

18 Amortization on intangible fixed assets and depreciation on tangible fixed assets

Cost of sales, selling expenses and general and administrative expenses include amortization of intangible fixed assets and depreciation of tangible fixed assets. These can be broken down as follows:

Depreciation and amortization

	2020	2019
	€ '000	€ '000
Intangible fixed assets (section 5)	1.971	1.427
Tangible fixed assets (section 6)	16.523	16.528
Accelerated amortization and depreciation	730	1.131
	19.224	19.086

19 Government subsidies

The Company has recognized the following government subsidies in 2020:

	2020	2019
	€ '000	€ '000
NOW - 1	5.258	0
Covid-19 wage subsidies France and Luxemburg	3.745	0
Other subsidies	3.931	5.158
	12.934	5.158

20 Audit fees

The following audit fees were expensed in the income statement in the reporting period:

	2020 The Netherlands	2020 Other countries	2019 The Netherlands	2019 Other countries
	€ '000	€ '000	€ '000	€ '000
Audit of the financial statements	255	92	270	120
Other audit services	80	0	43	0
Total audit fees	335	92	313	120

The fees listed above relate to the procedures applies to the company and its consolidated group entities by accounting firms and independent auditors as referred to in Section 1, subsection 1 of the Audit Firms Supervision Act ('Wet toezicht accountantsorganisaties - Wta') as well as by Dutch and foreign-based accounting firms, including their tax services and advisory groups.

These fees relate to the audit of the 2020 financial statements, regardless of whether the work was performed during the financial year.

21 Financial income and expenses

	2020	2019
	€ '000	€ '000
Interest and similar income	0	0
Interest and similar expenses	-1.559	-1.743
Exchange differences	178	-39
	-1.381	-1.782

22 Average number of employees

During 2020, 6.246 employees were employed on a full-time basis (2019: 6.067). Of these employees, were 3.793 employed outside the Netherlands (2019: 3.694).

	2020	2019
	€ '000	€ '000
Sales	5.498	5.586
Support Office, Distribution Centre and Expedition	748	481
Total number of employees	6.246	6.067

23 Financial instruments

Derivative financial instruments

Forward exchange contracts are used to hedge US Dollars and CNY for expected purchases. The forward exchange contracts consist of several contracts, amounting to $ 33,7 million in the aggregate (converted € 28,4 million) and CNY 242,4 million (converted € 29,8 million) and maturing no later than twelve months after the balance sheet date.

The fair value of the forward exchange contracts at the balance sheet date is -/- € 679K.

The interest rate charged on the bank debts is based on 1-month Euribor. The variable interest expenses are mainly converted into fixed interest expenses through interest rate cap contracts.

At the end of 2020 there were three interest rate caps:

―	€ 15 million with a maturity date of 1 October 2022;
―	€ 20 million with a maturity date of 1 October 2023;
―	€ 25 million with a maturity date of 1 March 2025;

The fair value of the interest rate cap contracts at the balance sheet date is € 14 K.

On 31 December 2020 and 31 December 2019, there was no ineffective part.

24 Tax on result

The tax on the result form ordinary business activities, amounting to € -6.521K, can be specified as follows:

	2020	2019
	€'000	€'000
Result before tax	26.025	18.295
Deferred corporate income tax	0	0
Corporate income tax current financial year	-6.454	-5.182
Corporate income tax previous financial years	-67	106
Tax on result	-6.521	-5.076
Effective tax rate	25,1%	27,7%
Applicable tax rate	25,4%	27,4%

The applicable tax rate is based on the proportion of the contribution to the result by the group companies and the tax rate applicable in the respective countries.

The effective tax rate is in line with the applicable tax rate.

25 Directors' remuneration

As at 31 December 2020 the executive board consisted of two persons (31/12/2019: 2).

The directors' remuneration for 2020 was in total € 1.036K (2019: € 1.124K).

The directors' remuneration includes salaries, bonus payments and pension contributions.

In the past years the directors' remunerations were based on cash flow in the financial year. This year we changed this to costs charged to the results of the financial year. The comparable figures were adjusted in conformity.

As at 31 December 2020 the supervisory board consisted of four persons (31/12/19: 5). The remuneration of the supervisory directors is in total € 160K (2019: € 137K).

The supervisory directors' remuneration includes periodically paid remuneration for their advice.

26 Events after the balance sheet date

It has been a year now after the COVID-19 outbreak early 2020. Currently the various governments are taking all measures to contain the virus. All inhabitants of the various countries are being vaccinated. It is expected that the pandemic will be under control around the summer of 2021. In the meanwhile the number of people infected with Covid-19 going up and down and consequently the measures taken by the various governments are going up and down. This also effected our results during the first 5 months of 2021.

We have taken a number of measures to monitor and prevent the effects of COVID-19 virus such as safety and health measures for our people (like social distancing and working from home) and securing the supply of materials and goods that are essential to our business activities.

We will continue to follow the various national institutes policies and advice and in parallel will do our utmost to continue our operations in the best and safest way possible without jeopardizing the health of our people.

We also refer to 1.2 (Implications of COVID-19 on our business).

Company financial statements

Balance sheet as at 31 December 2020

(Before appropriation of result)

(€ '000)		31-12-2020	31-12-2019
Assets	Note
Fixed assets
Financial fixed assets	28	85.032	66.319
		85.032	66.319
Current assets
Receivables	29	47.189	33.978
		47.189	33.978
Total assets		132.221	100.297

(€ '000)		31-12-2020	31-12-2019
Shareholders' Equity and liabilities	Note
Shareholders' Equity
Share capital	30	14	14
Legal reserves		4	5
Share premium account		17.803	7.803
Currency translation reserve	31	-717	-432
Other reserves	32	91.880	78.660
Result after taxation	33	19.504	13.219
		128.488	99.269
Current liabilities	34	3.733	1.028
Total Shareholders' Equity and liabilities		132.221	100.297

Income statement for the year ended 31 December 2020

(€ '000)		2020	2019
	Note
Share of result of participations	28	18.998	12.957
Income from operations after corporation tax	35	506	262
Result after taxation		19.504	13.219

Notes to the company balance sheet and income statement

27 General

The company financial statements have been prepared in accordance with the statutory provisions of Title 9, Book 2 of the Dutch Civil Code and the firm pronouncements in the Dutch Accounting Standards as issued by the Dutch Accounting Standards Board.

The accounting policies for the company financial statements and the consolidated financial statements are the same.

For the accounting policies for the company balance sheet and income statement, reference is made to the notes to the consolidated balance sheet and income statement (pages 10 to 23).

Participations

Participations (associates), over which significant influence can be exercised, are valued according to the net asset value method. In the event that 20% or more of the voting rights can be exercised, it may be assumed that there is significant influence.

The net asset value is calculated in accordance with the accounting principles that apply for these financial statements.

If the valuation of an associate based on the net asset value is negative, it will be stated at nil. If and insofar as Zeeman Groep B.V. can be held fully or partially liable for the debts of the associate, or has the firm intention of enabling the participation to settle its debts, a provision is recognized for this.

Newly acquired associates are initially recognized on the basis of the fair value of their identifiable assets and liabilities at the acquisition date. For subsequent valuations, the principles that apply for these financial statements are used, with the values upon their initial recognition as the basis.

The amount by which the carrying amount of the associate has changed since the previous financial statements as a result of the net result achieved by the associate is recognized in the income statement.

Result from participations (valued at net asset value)

The result is the amount by which the carrying amount of the participation has changed since the previous financial statements as a result of the earnings achieved by the participation to the extent that this can be attributed to Zeeman Groep B.V.

28 Financial fixed assets

Financial fixed assets are exclusively participations.

The movements in participations can be broken down as follows:

	2020	2019
	€ '000	€ '000
Balance as at 1 January	66.319	73.268
Result of result of participations	18.998	12.957
Currency translation effect	-285	94
Dividend	0	-20.000
Balance as at 31 December	85.032	66.319

List of participations:

The participations in which Zeeman Groep B.V. has direct interests are mentioned in section 1.5 of the notes to the consolidated balance sheet and income statement.

29 Receivables

	31-12-20	31-12-19
	€ '000	€ '000
Receivables from group companies	47.189	33.978
	47.189	33.978

The fair value of the receivables approximates the carrying amount, given the current character of the receivables and the fact that provisions for bad debt are recognized, where necessary.

The average intercompany balances bear interest at 1,78% per year (2019: 1,73%).

Nothing has been agreed in respect of repayment and securities.

30 Share capital

The authorized share capital of Zeeman Groep amounts to € 45.000, divided into 4.300.000 ordinary shares and 200.000 A shares of € 0,01 nominal. Issued share capital consists of 1.263.000 ordinary shares and 157.800 A shares.

31 Currency translation reserves

The currency translation reserve is recognised in connection with participations denominated in foreign currencies

	2020	2019
	€ '000	€ '000
Balance as at 1 January	-432	-526
Movements	-285	94
Balance as at 31 December	-717	-432

32 Other reserves

	2020	2019
	€ '000	€ '000
Balance as at 1 January	78.660	72.153
Profit appropriation (undistributed result of previous year)	13.219	13.012
Distribution of dividend	0	-6.505
Other movements	1	0
Balance as at 31 December	91.880	78.660

33 Proposed appropriation of the result

Appropriation of profits 2019

In accordance with the decision of the general meeting of shareholders the net profit is added in full to the other reserves.

Proposed appropriation of profits 2020

The board of directors proposes to distribute an amount of 50% of the net profit as a dividend. The other 50% will be added to the other reserves. The proposed appropriation of the result of 2020 is not as such reflected in the balance sheet.

34 Current liabilities

	31-12-20	31-12-19
	€ '000	€ '000
Corporate income tax	3.733	1.028
	3.733	1.028

35 Income from operations after corporation tax

The company's result after taxation in the company financial statements consist of only interest expenses.

36 Average number of employees

During 2020, 2 employees were employed on a full-time basis (2020: 2). Both were employed in the Netherlands.

37 Contingent liabilities

Conditional obligations

The Company and its group companies are jointly and severally liable for the bank overdrafts.

Declaration of liability

The Company has issued a declaration of joint and several liability as referred to in section 403, book 2 of the Dutch Civil Code in respect of one of its consolidated participations. The declaration concerns ZEEMAN textielSupers B.V. of Alphen aan den Rijn.

Liability by a fiscal unity

For tax purposes Zeeman Groep B.V. and ZEEMAN textielSupers B.V. are a fiscal unity. Pursuant to the Collection of State Taxes Act, the company and its subsidiaries are both severally and jointly liable for the tax payable by the combination.

38 Events after balance sheet date

For the disclosure of the events after the balance sheet date refer to note 26 "Events after the balance sheet date" in the consolidated financial statements.

39 Directors' remuneration

For the disclosure of the directors'remuneration refer to note 25 "Directors' remuneration" in the consolidated financial statements.

Alphen aan den Rijn, 27 May 2021

Board of directors,

E.J.E.V. Mares (CEO)

A.W.M. van Bolderen (CFO)

Supervisory Board,

B. Roetert, chairman

T.A. Rövekamp, deputy chairman

P. Saman

T.A.J. Burmanje

Other information

Articles of association governing profit appropriation

Article 27 of the articles of association states the following regarding profit appropriation:

The articles of association show, that the annual profit obtained is at the free disposal of the general meeting. The holders of preference shares are not entitled to a dividend distribution.

However according to the agreement with the banks dividends can only be paid when the Solvency is higher than 25% and the 12 months rolling free Cash Flow is positive, and will also remain positive after the relevant dividend has been paid.

Considering the Covid-19 pandamic the Supervisory Board and Shareholders have decided not to declare any dividend over the year 2020.

Independent auditor's report

To: the general meeting and the supervisory board of Zeeman Groep B.V.

Report on the financial statements 2020

Our opinion

In our opinion, the financial statements of Zeeman Groep B.V. ('the Company') give a true and fair view of the financial position of the Company and the Group (the company together with its subsidiaries) as at 31 December 2020, and of its result for the year then ended in accordance with Part 9 of Book 2 of the Dutch Civil Code.

What we have audited

We have audited the accompanying financial statements 2020 of Zeeman Groep B.V., Alphen aan den Rijn. The financial statements include the consolidated financial statements of the Group and the company financial statements.

The financial statements comprise:

•	the consolidated and company balance sheet as at 31 December 2020;
•	the consolidated and company income statement for the year then ended; and
•	the notes, comprising the accounting policies and other explanatory information.

The financial reporting framework applied in the preparation of the financial statements is Part 9 of Book 2 of the Dutch Civil Code.

The basis for our opinion

We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. We have further described our responsibilities under those standards in the section 'Our responsibilities for the audit of the financial statements' of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of Zeeman Groep B.V. in accordance with the 'Wet toezicht accountantsorganisaties' (Wta, Audit firms supervision act), the 'Verordening inzake de onafhankelijkheid van accountants bij assuranceopdrachten' (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore, we have complied with the 'Verordening gedrags- en beroepsregels accountants' (VGBA, Dutch Code of Ethics).

Report on the other information included in the financial report

In addition to the financial statements and our auditor's report thereon, the financial report contains other information that consists of:

•	the directors' report;
•	the other information pursuant to Part 9 of Book 2 of the Dutch Civil Code.

Based on the procedures performed as set out below, we conclude that the other information:

•	is consistent with the financial statements and does not contain material misstatements;
•	contains the information that is required by Part 9 of Book 2 of the Dutch Civil Code.

We have read the other information. Based on our knowledge and understanding obtained in our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements.

By performing our procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil Code and the Dutch Standard 720. The scope of such procedures was substantially less than the scope of those performed in our audit of the financial statements.

The board of directors is responsible for the preparation of the other information, including the directors' report and the other information in accordance with Part 9 of Book 2 of the Dutch Civil Code.

Responsibilities for the financial statements and the audit

Responsibilities of the board of directors and the supervisory board for the financial statements

The board of directors is responsible for:

•	the preparation and fair presentation of the financial statements in accordance with Part 9 of Book 2 of the Dutch Civil Code; and for
•	such internal control as the board of directors determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

As part of the preparation of the financial statements, the board of directors is responsible for assessing the Company's ability to continue as a going concern. Based on the financial reporting framework mentioned, the board of directors should prepare the financial statements using the going-concern basis of accounting unless the board of directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The board of directors should disclose events and circumstances that may cast significant doubt on the Company's ability to continue as a going concern in the financial statements.

The supervisory board is responsible for overseeing the Company's financial reporting process.

Our responsibilities for the audit of the financial statements

Our responsibility is to plan and perform an audit engagement in a manner that allows us to obtain sufficient and appropriate audit evidence to provide a basis for our opinion. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high but not absolute level of assurance, which makes it possible that we may not detect all material misstatements. Misstatements may arise due to fraud or error. They are considered to be material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

Materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our opinion.

A more detailed description of our responsibilities is set out in the appendix to our report.

Rotterdam, 27 May 2021

PricewaterhouseCoopers Accountants N.V.

Original has been signed by J.A.M. Schrama RA

Appendix to our auditor's report on the financial statements 2020 of Zeeman Groep B.V.

In addition to what is included in our auditor's report, we have further set out in this appendix our responsibilities for the audit of the financial statements and explained what an audit involves.

The auditor's responsibilities for the audit of the financial statements

We have exercised professional judgement and have maintained professional scepticism throughout the audit in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit consisted, among other things of the following:

•	Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the intentional override of internal control.
•	Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
•	Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board of directors.
•	Concluding on the appropriateness of the board of directors' use of the going-concern basis of accounting, and based on the audit evidence obtained, concluding whether a material uncertainty exists related to events and/or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report and are made in the context of our opinion on the financial statements as a whole. However, future events or conditions may cause the Company to cease to continue as a going concern.
•	Evaluating the overall presentation, structure and content of the financial statements, including the disclosures, and evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Considering our ultimate responsibility for the opinion on the consolidated financial statements, we are responsible for the direction, supervision and performance of the group audit. In this context, we have determined the nature and extent of the audit procedures for components of the Group to ensure that we performed enough work to be able to give an opinion on the financial statements as a whole. Determining factors are the geographic structure of the Group, the significance and/or risk profile of group entities or activities, the accounting processes and controls, and the industry in which the Group operates. On this basis, we selected group entities for which an audit or review of financial information or specific balances was considered necessary.

We communicate with the supervisory board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Amtsgericht Kleve HR B 2624

§ 264 Abs. 3, 264b HGB zum Geschäfstjahr vom 01.01.2020 bis zum 31.12.2020

Beschluss de Gesellschaftversammlung der G+W Wahler der Modemarkt GmbH

Beschluss der Gesellschafterversammlung

Unter Verzicht auf die Einhaltung alle gesetzlichen oder gesellschaftverträglichen Form- und Fristvorschriften hinsichtlich Einberufung und Ankündigung halten wir eine Gesellschafterversammlung der Zeeman textielSupers GmbH ab und beschliessen wie folgt:

Wir stimmen zu, dass die G+W Wahler der Modemarkt GmbH für den Jahresabschluss zum 31.12.2020 von den Erleichterungen des § 264 Abs.3 HGB Gebrauch macht, wonach die Vorschriften dieses Unterabschnitts,und des Dritten und Vierten Unteradbschnitts dises Abschnitts nicht anzuwenden sind.

Die Unterzeichnenden erklären sodann die Gesellschafterversammlung für beendet.

G+W Wahler der Modemarkt GmbH	Zeeman Groep B.V.
Erik Jan Mares (Geschäftsführer)	Erik Jan Mares (C.E.O.)
Albert van Bolderen (Geschäftsführer)	Albert van Bolderen (C.F.O.)

Kleve, 27.05.2021

Zeeman Groep B.V., Alphen aan den Rijn, Die Niederlande

Eingetragen im Handelsregister des Amtsgericht Den Haag, Die Niederlande, unter der Gesellschaftsnummer 28074313.

Die Zeeman Groep B.V. ist the ultimate Muttergesellschaft der Zeeman textielSupers GmbH.

Verlustübernahmevereinbarung

Zeeman Groep B.V. verpflichtet sich, jeden zum Ende des Geschäfstjahre 2020 eventuell entstehende Jahresfehlbetrag der Zeeman textielSupers GmbH im rahmen einer freiwilligen Verlustübernahme entsprechend § 302 AktG auszugleichen

Kleve, 27.05.2021

Zeeman Groep B.V.

Erik Jan Mares, C.E.O.

Albert van Bolderen, C.F.O.

Geschäftsführung

E.J. Mares ; A.W.M. van Bolderen