FloraHolland achieves € 5 million net result for 2004

FLORAHOLLAND / PRESS RELEASE

Satisfied with 2004, good start for 2005

FLORAHOLLAND, May 2, 2005. FloraHolland managing director Jacques Teelen is happy with the flower auction's performance last year and is optimistic about the future. "The years of stagnating sales appear to be behind us and we expect a slight sales increase of two to three percent this year," Mr Teelen said at a press conference today.

Market leader FloraHolland has achieved its budgeted result by operating on the basis of zero growth and a drastic cost management programme. With a net result of € 5 million, the auction therefore looks back on 2004 with satisfaction. In 2006, FloraHolland plans to lower commission to suppliers by 10 percent.
Although higher supply volumes had a positive effect on turnover, prices lagged behind and in the end growth in overall turnover was not achieved. FloraHolland achieved sales of € 1.9 billion in 2004, virtually the same as in 2003. The net result for 2004 was more than € 5 million.

FloraHolland has continued its investment programme in 2004, spending a total of nearly € 40 million, as a result of which it was able to considerably improve productivity in the logistical services area, for instance. It also spent a lot of money on expanding accommodation for clients. On top of that, a stringent cost management programme led to a reduction of general costs.

Strategic vision
In FloraHolland's vision, The Netherlands will remain the hub of world sales of ornamental flowers and plants. The auction clock will continue to play an essential role as an instrument to set prices, in spite of the fact that sales via this channel are growing at a slower rate. Sales growth will take place primarily in direct sales via the Intermediary Office of FloraHolland. The horticultural sector is seeing major expansion in the scale of individual operations, but this does have the effect of reducing the number of remaining enterprises.

FloraHolland is pleased that the Greenports were explicitly recognised in the Government Memorandums on Space and Mobility. The Greenports in The Netherlands have joined forces so business and government can come up with a single vision and a single agenda for sustainable horticulture in The Netherlands in the near future.

Faith
FloraHolland has a lot of faith in the future of the ornamental flower and plant group when it comes to market development, competitive strength, and the cooperative business model and production horticulture. In the area of consumer spending, FloraHolland expects long-term growth averaging three percent a year.

About FloraHolland
At FloraHolland, € 1.9 billion worth of ornamental plants and flowers are sold via auction clocks and mediation (contract sales). As market leader, it has five auction locations spread around the country. They are situated near flower and plant production areas, in Naaldwijk, Rijnsburg, Bleiswijk, Venlo and Eelde, and employ a total of nearly 3000 people.

FloraHolland achieves € 5 million net result for 2004

FLORAHOLLAND / PRESS RELEASE FloraHolland achieves € 5 million net result for 2004 Satisfied with 2004, good start for 2005 FLORAHOLLAND, May 2, 2005. FloraHolland managing director Jacques Teelen is happy with the flower auction's performance last year and is optimistic about the future. "The years of stagnating sales appear to be behind us and we expect a slight sales increase of two to three percent this year," Mr Teelen said at a press conference today. Market leader FloraHolland has achieved its budgeted result by operating on the basis of zero growth and a drastic cost management programme. With a net result of € 5 million, the auction therefore looks back on 2004 with satisfaction. In 2006, FloraHolland plans to lower commission to suppliers by 10 percent. Although higher supply volumes had a positive effect on turnover, prices lagged behind and in the end growth in overall turnover was not achieved. FloraHolland achieved sales of € 1.9 billion in 2004, virtually the same as in 2003. The net result for 2004 was more than € 5 million. FloraHolland has continued its investment programme in 2004, spending a total of nearly € 40 million, as a result of which it was able to considerably improve productivity in the logistical services area, for instance. It also spent a lot of money on expanding accommodation for clients. On top of that, a stringent cost management programme led to a reduction of general costs. Strategic vision In FloraHolland's vision, The Netherlands will remain the hub of world sales of ornamental flowers and plants. The auction clock will continue to play an essential role as an instrument to set prices, in spite of the fact that sales via this channel are growing at a slower rate. Sales growth will take place primarily in direct sales via the Intermediary Office of FloraHolland. The horticultural sector is seeing major expansion in the scale of individual operations, but this does have the effect of reducing the number of remaining enterprises. FloraHolland is pleased that the Greenports were explicitly recognised in the Government Memorandums on Space and Mobility. The Greenports in The Netherlands have joined forces so business and government can come up with a single vision and a single agenda for sustainable horticulture in The Netherlands in the near future. Faith FloraHolland has a lot of faith in the future of the ornamental flower and plant group when it comes to market development, competitive strength, and the cooperative business model and production horticulture. In the area of consumer spending, FloraHolland expects long-term growth averaging three percent a year. About FloraHolland At FloraHolland, € 1.9 billion worth of ornamental plants and flowers are sold via auction clocks and mediation (contract sales). As market leader, it has five auction locations spread around the country. They are situated near flower and plant production areas, in Naaldwijk, Rijnsburg, Bleiswijk, Venlo and Eelde, and employ a total of nearly 3000 people.