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Business review 2009<br />
Supervisory Board report<br />
The Supervisory Board is responsible for advising and<br />
supervising the Executive Board of <strong>Refresco</strong> and overseeing<br />
the general company strategy, including the general course<br />
of affairs.<br />
In the execution of their duties the Supervisory Board is<br />
gui<strong>de</strong>d by the overall interest of <strong>Refresco</strong> and relevant<br />
interests of its stakehol<strong>de</strong>rs.<br />
A year of sustainable growth<br />
The year 2009 has been a challenging one for <strong>Refresco</strong>.<br />
Following the substantial acquisitions ma<strong>de</strong> in 2007, the<br />
volume grew by 8% with operational performance on<br />
target and integration of the acquired companies well on<br />
track. Although the economic downturn affected some of<br />
our Icelandic sharehol<strong>de</strong>rs the situation has stabilized and<br />
alternatives to safeguard the continuity of the company and<br />
support further growth were evaluated. In 2009 two major<br />
strategic steps in the further <strong>de</strong>velopment of the Group have<br />
been realized. One concerned the acquisition in the Benelux<br />
of the soft drink division of Bavaria. In Spain, a cooperation<br />
contract with Leche Pascual was agreed upon for their juice<br />
business. Both agreements were closed in April 2009. Other<br />
acquisition targets and projects have been approached and<br />
discussed in or<strong>de</strong>r to create further growth in 2010 and later.<br />
Supervision<br />
The Supervisory Board met frequently in 2009. The meetings<br />
covered routine operational matters and focused on levels of key<br />
resources and strategy implementation. In various meetings the<br />
Supervisory Board discussed the two inten<strong>de</strong>d <strong>de</strong>als and the<br />
integration of the companies within the organizational structure.<br />
The Chairman and CEO had regular contact throughout the year.<br />
In particular, upon the occurrence of the Icelandic financial crisis<br />
the Supervisory and Executive Boards held regular updates to<br />
discuss operational and financial issues.<br />
Subjects discussed during the year’s meetings inclu<strong>de</strong>d:<br />
The medium-term Buy & Build strategy<br />
Potential acquisition opportunities<br />
Senior management appointments and significant human<br />
resources matters<br />
Major capital investments<br />
Operating and financial performance of the subsidiaries<br />
Bank financing arrangements<br />
Budget for 2010<br />
Outlook for the years thereafter<br />
Business plan 2012<br />
Risk and control framework
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