the board of directors' report - Coop

ANNUAL AND SOCIAL REPORT2 11THE GREAT DIFFERENCE

InnovationInfluenceHonestyCOOPValuesCompassionDistinctivenessCONTENTSThe Board of Directors’ report 3Annual accounts and notes 15Company information and addresses 51

Ola H. StrandCEO Coop Norge ASMember number in Coop:600571 8315 312390Magne VathneDeputy ChairpersonMember number in Coop:600571 5090 601567Olav RønningenDirectorMember number in Coop:600571 2397 813304Tore Vea BerghageneEmployee RepresentativeMember number in Coop:600571 1354 573311Knut BergEmployee RepresentativeMember number in Coop:600571 1354 626407John BrattåkerDeputy Representative for the employeesMember number in Coop:600571 6220 254110Lisbeth Bull HusebyChairperson of the BoardMember number in Coop:600571 8315 497784Toril Opsal ThorpDirectorMember number in Coop:600571 1361 851536Wilhelm GjertsenDirectorMember number in Coop:600571 6044 194051THE BOARDOF DIRECTORS’REPORT3 COOP ANNUAL REPORT 2011 COOP ANNUAL REPORT 20114

THE BOARd OF DIRECTORS’ REPORTTHE BOARd OF DIRECTORS’ REPORT 2011THE ACTIVITY IN 2011Coop Norge SA is the consumers’ co-operative societies’ commonorganization and is owned by them. The organization hasvarying memberships and cooperative share capital. Coop inNorway has a federative structure in which Coop Norge SAis the secondary co-operative society and the consumers’ cooperativesocieties are the primary co-operative societies. CoopNorge SA has its head office in Oslo, and has the subsidiariesCoop Norge Handel AS, Coop Norge Eiendom AS (Property)and Smart Club AS. Coop Norge follows the development andadapts its activity to the applicable laws and regulations with thepurpose of creating values for its owners.Important events in 2011• Coop Norge Handel, the Group, achieved the best value creationin the Company’s history by 843 million NOK.• For a new warehouse in the Eastern part of the country (Østlandet),an agreement with the contractor GSE Norway ASwas signed as property developer. Towards the summer, theproperty Bergmoen AS was taken over and in the autumn, theconstruction work starts.• New membership record with 1.3 million members.• In total, Coop paid 656 million NOK in purchase return andmember discounts to our members in 2011.• Record turnover of in excess of 4.4 billion NOK for Coop NorgeHandel Faghandel.• New coffe roasting factory is decided established at Bergmoenin Ullensaker in the period 2012–2016.• 2011 has been a year characterized by increasingly tough competitionbetween the players in the grocery trade. Price warrelating to ”keyhole” market and ecological goods has beendemanding for resources and costs for the Company.• In co-operation with the Tesco owned company DunnhumbyLimited, Coop Norge Handel established the companyDunnhumby Norway AS. The company will work with customerinsight for Coop within groceries and the other trades that Coopis involved in.Coop Norway DistrictCoop Norge SA organizes its members, the co-operative societies,through four regional owner meetings/districts: Coop Norgedistrict Nord, Coop Norge district Midt-Norge, Coop Norge districtSør-Vest and Coop Norge district Østlandet. In addition to theannual meetings that are laid down in the articles of association,the districts held extraordinary general meetings during the autumnof 20111 to increase the market share and the profitability In Coopin general in parallel with gathering the organization around theconsciousness-raising process related to what actually constitutesCoop’s distinctive character.Coop ElectionTwelve co-operative societies have chosen a new model for elections(Coop Valg) in which the annual meetings take place in theshops and via the Internet. Most of the co-operative societies stillreport of increase in the number of votes compared to previouslywhen the elections were held in the annual meetings. The averageparticipation in the elections has increased from 0.5 percentin the circuit annual meetings to 8 percent after the introductionof Coop Valg. Voting in the shops contributes to diversity andspreading both when it comes to age and professions from bothsexes among those that are proposed for election for positions oftrust. In addition, it provides added value through making Coop’sdistinctive character and democratic system of governing visiblein the meeting with the customer and the members in the shops.Co-operative societies organized with regional councils have experiencedgreat success with election in the shops. In 2011, theopportunity has been provided for testing of elections in the shopseven in co-operative societies organized with circuit committees.The Consumers’ Co-operative SocietiesThe Co-operative Societies are independent legal entities and areresponsible for the operation of their own enterprises. Good and efficientoperations and professionalism is decisive in order to strengthenCoop’s position in the market. One of the main tasks of Coop Norgeis actively to contribute to safeguard sound business activity in theconsumers’ co-operative societies. This will be facilitated throughproactively influencing the co-operative societies to obtain the bestresults possible and at the same time put a heavy pressure on theco-operative societies with low profitability and development.The number of co-operative societies as at December 31 st 2011 is118. This represents a reduction from 127 co-operative societiesat the close of 2010 through eight mergers and two liquidations.The goal is still fewer and bigger, more robust co-operative societies.A more general marketing philosophy combined with reducedadministrative costs and further professionalism behind the focuson structural measures. Coop Norge works actively to establishtrust and confidence between relevant partier to mergers. ”TheProfitability Programme” has contributed positively to put structureon the agenda in all the regions.Mergers accomplished in 2011:• Coop Fauske SA – Coop Sambo SA (Coop Nordland SA)• Coop Porsanger SA – Coop Finnmark SA• Coop Varhaug SA – Coop Høyland and J¾ren SA• Coop Lofoten SA – Coop Nord SA• Coop Midt Troms SA – Coop Nord SA• Coop Lensvik SA – Coop Orkla Møre SA• Coop Sand SA – Coop Haugaland SA• Coop Romerike SA – Coop Øst SAAfter the turn of the year, Coop Kvalsund SA has merged withCoop Finnmark SA. As at March 15 th 2012, 116 co-operativesocieties are members in Coop Norge. All the merged societieshave had their byelaws approved in 2011.The Board holds the opinion that it is important that managers,employees and member elected representatives in Coop have thenecessary knowledge and competence to attend to their tasks inthe best possible manner. Therefore, great effort has been madeto increase the level of knowledge and competence among themember elected representatives and the co-operative societymanagers through the reporting year.The total gross profit for the co-operative societies was 7.3 billionNOK. This is 0.2 billion NOK better than in 2010. Measured inpercentage, the gross profit was reduced by 0.1 percent pointscompared to 2010. The operating result for the co-operative societiesended at 487 million NOK in total, 13 million NOK better than in2010. Net financial income is 98 million NOK lower than in 2010, sothat the result before tax was 526 million NOK for the co-operativesocieties in total. This is 111 million NOK lower than in 2010.Coop MemberCoop is owned by its members. The members share the profitfrom the activity in proportion to their purchase. Thus, an attractivemember programme in addition to attractive shops and goods arethe most important factors that Coop provides to its owners. Theinflux of members and the members’ use of the shops form thefoundation of the activity. The influx of members to Coop continuedat the same rate as in 2011.80,018 new consumers chose to become Coop members in 2011and the close of the year, the co-operative societies had 1,306,343members and owners. This represents a net growth of 49,090members in Coop. The Board holds the opinion that this showsthat the Coop membership is attractive and the introduction of theCoop MasterCard has proved to be a success. The card gives themembers two percent extra bonus on everything they purchase inCoop’s shops.Market surveys also show that Coop has the most attractiveand most frequently used membership cards in the Norwegianretail trade. This, in combination with new, modern and attractiveshops should give us good opportunities for further recruitmentof members.Our members made purchases for 31.2 billion NOK in our shops in2011. This is an Increase of more than 1 billion NOK from 2010. Inaverage, every member purchased goods worth 23,901 NOK in 2011.Paid out return on purchase/purchase bonus will be 483 millionNOK based on the use of the membership card in 2011. This isa decrease of 12.0 million NOK compared to 2010. The averagepurchase return is reduced from 1.72 in 2010 to 1.55 in 2011.In total, Coop paid out 656 million NOK in purchase return andmember discounts to our members in 2011.The composition of the membership advantages has been madeon the basis of the members’ requests. The total membershipadvantage from purchase return, member coups and externalpartners arrived at nearly one billion NOK.In 2011, Coop had co-operation agreements and member discountswith KappAhl, Esso, Statoil, NetCom, Smart Club andBestWestern. In total, the members have earned member discountswith the collaborating partners worth 173 million NOK. Thisis 15 percent higher than in 2010. In addition, we offer membershipadvantages related to Coop HotellKupp, Coop membershipand charge cards, Coop MasterCard and insurance products.The proportion of the members who used the membership cardin Coop increased by more than two percent points. There are arelatively large proportion of the members that are loyal to Coop’sshops. However, there is a great potential for increased turnoverby increasing the attractivity of the offers to the members. In total,our members have drawn their membership cards 98 million timesin the Coop shops in 2011.The traffic on Coop.no is steadily increasing; there are currentlymore than 800,000 visits per month and an increasingly greaterpart of this comes from mobile platforms. The service related toelectronic enrolment has contributed to the high influx of newmembers. About one million members have access to theiraccounts via Internet bank functionality.COOP AND THE MARKET 20112011 has been characterized by new marketing measures andinitiatives from all the players in the grocery trade, and in particularthe greatest players in the grocery trade have increased theirmarketing activity. Coop has succeeded with a lot of its campaignssuch as member coup, the Christmas campaign and not in theleast the summer campaign. Coop Prix has launched its uniquedeal concept and Coop Obs! Hypermarket its large volume purchaseconcept, both with great success.5 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 20116

THE BOARd OF DIRECTORS’ REPORTThe year started with a rather low market growth, a lot due tothe repercussions of the international debt crisis in Europe, butthrough the year, it has improved slowly, but surely. The growthaccumulated for 2011 ended at 3.8 percent. In the same period,Coop’s grocery stores had a growth of 2.8 percent. The marketshare was 23.4 percent, which is a decrease of 0.3 percentfrom the year before. The growth in comparable shops (wherenew, liquidated and re-profiled shops have been excluded) was1.7 percent compared to a market growth of 2.5 percent. Thisis lower than expected. In addition, our competitors still have ahigher rate of new shops than us, a fact that also contributes toloss of market shares.Low price is still the only segment that wins market shares. Thegrowth was 8.6 percent, which entails that the share increases by2.3 percent points to nearly 55 percent. The growth in the segmentis partly driven by high rate of establishment of new shops,but also comparable shops have twice the growth as the othersegments. The supermarket segment is the segment that losesthe highest market share, where the share was reduced by 1.1percent points and ended at below 26 percent.Coop has started to see good results from the Company’sconcentration on private brands (PB) and recorded increasedconsumer confidence in our goods. Currently, Coop leads thedevelopment in this area and increases most in the market;Coop has 37 percent of the total growth in the PB segment inNorway. We continuously launch new great products and we haveworked with more than 80 new products that were launched onFebruary 1 st 2012.2011 was another good year for Coop Norge Handel Faghandel(Specialist trade), that is able to present record figures in severalareas. Coop Norge Handel Faghandel recorded a new all-timehigh turnover in 2011 amounting to 4.4 billion NOK to the shops.The most important and largest specialist trade area for Coop isconstruction materials. With its concentration on constructionmaterials and the chains Coop Obs! Bygg and Coop Extra Bygg,and the construction material concept Coop Byggmix, Coop hassucceeded in building a strong market position in the DIY marketin Norway. Coop’s construction material concepts are 100 percentdirected at the private market and is the leading player inthis segment.The market development for construction material chains in totalshow, according to the trade statistics from Virke, an increase of4.9 percent. The private market has had an increase of 2.6 percent,whereas the turnover related to professionals increased by6.8 percent. Coop’s total turnover related to construction materialsincreased by 5.5 percent in 2011, and thus strengthens itsposition as the leading player in the private market within buildingand construction.STRATEGYThe strategic plan for Coop in Norge was adopted in 2009,and this plan is leading for both the co-operative societiesand Coop Norge SA, the Group, the next few years. In Coop,the total of all these units’ strategies be combined by theadopted plan for Coop in Norge. In order to reach the goals inthe strategy plan for Coop in Norge, the important ”profitabilityProgramme” has been established. The programme has atwo-part content: increased profitability and increased growth.In 2011, the work related to this programme continues withequal effort. After having analysed and defined the opportunitiesto achieve organic growth and growth through establishingnew shops, we have now reached the Implementation phase.Simultaneously, measures have been initiated to increase theprofitability in both Coop Norge SA, the Group, and in the cooperativesocieties. The ”Profitability Programme” will be themost important priority also in 2012.RESULTS AND FINANCIAL POSITION– COOP NORGE, THE GROUPFor the accounting year 2011, Coop Norge SA, the Group, hada profit of 178 million NOK after tax (majority).The total balance in the Group as at December 31 st 2011 is13,845 million NOK, compared to 13,117 million NOK as atDecember 31 st 2010.In 2011, Coop Norge, the Group, had sales revenues at 28,785million NOK. This is an increase of 720 million NOK or 2.6 percent.The groceries turnover increased by 2.4 percent, whereasthe professional trades increased by 4.6 percent. The grossprofit for Coop Norge, the Group, for 2011 was 2,759 millionNOK, an increase from 2,686 million in 2010. The gross profitis unchanged in percentage of the turnover.The net financial result is considerably lower than expected, particularlyas a consequence of the development in the stock market.The interest rate level and the volume for management has beenas budgeted.Net finance in Coop Norge, the Group, was reduced from negative61 million NOK to negative 158 million NOK. The incomerelated to investments in subsidiaries and affiliated companieswas improved from negative 4 million NOK to positive 1 millionNOK. The financial income increased from 132 million NOK to141 million NOK, whereas the financial costs increased from189 million NOK to 299 million NOK.In Coop Norge SA, the financial income was reduced by 137million NOK, and the financial costs increased by 24 millionNOK. The result from the management in Coop Norge SAwas thus reduced by 61 million NOK and ended at 4 millionNOK in 2011.Coop Norge Handel ASIn 2011, Coop Norge Handel AS with its subsidiaries presentedthe best value creation ever in the history of the Company. The totalvalue creation was in total 843 million NOM in 2011. The valuecreation in Coop Norge Handel AS has been decisive to safeguardthat Coop Norge SA, the Group, in the period has been able torealize the terms of interaction the that co-operative societies enjoy.In 2011, Coop Norge Handel AS, the Group, had an operating resultof 287 million NOK and an annual profit/loss of 187 million NOK.Coop Norge Eiendom AS (Property)Coop Norge Eiendom AS (Property) has its head office in Mossand runs its operations through separate companies and in cooperationwith other property players. The main purpose of theactivity is to buy, develop and operate properties, first and foremostfor Coop’s trading activity in Norway.The property market has improved further in 2011 even if the pricesin the second hand market for commercial properties show a declininggrowth. New and extensive environmental requirements to constructionmake the investments in property still costly. Access to foreigncapital has become more expensive, and strict requirements are madebefore the financing of new projects. However, Coop Norge Eiendomexpects a higher level of activity relating to new projects in 2012.In 2011, Coop Norge Eiendom AS (Property), the Group, had anoperating result of 209 million NOK and an annual profit/loss of 87million NOK.Smart Club ASSmart Club AS suffered a considerable loss in 2011. The deficitis mainly due to weakened gross profit and failing turnover. In2012, Smart Club will further increase the measures that wereinitiated in 2011 with reference to strengthening the gross profit.Smart Club will continue developing the concept’s strengths inthe areas of groceries and specialist trade in the time to come.Smart Club AS strengthens its economy in that Coop Norge SAtransfers an adequate Group contribution.In 2011, Smart Club AS had an operating result of negative 98million NOK and an annual profit/loss of negative 76 million NOK.BALANCE, LIQUIDITY AND FINANCINGCoop Norge Eiendom AS (Property) has loans and drawing rights ofNOK 1,800 million NOK in the banks. The remaining financing ofCoop Norge Eiendom AS (Property) has been made by means of loanfrom Coop Norge SA. Coop Norge Handel AS does not have loanin the parent company and is financed by means of drawing rightsin the bank, whereas Smart Club AS does not have external loans,but all its financing from Coop Norge SA. Loans from Coop NorgeSA have been given at general market terms. At the close of 2011,Coop Norge SA had a bank overdraft facility of 250 million NOK. Atthe turn of the year, nothing has been drawn on the bank overdraft.As December 31 st 2011, Coop Norge SA had no other loans thatthe surplus liquidity that the co-operative societies are placing inplacement account in Coop Norge SA. At the turn of the year,this constitutes 1,307 million NOK. Short-term securities havebeen entered at market value in the company’s accounts. Financialinvestments constituted 1,650 million NOK in the parent companyat the turn of the year. In addition, 341 million NOK were depositedin free disposable bank accounts. Subsidiaries and affiliatedcompanies have been entered according to the equity methodand therefore included at the book value of the equity. It is theBoard’s opinion that the annual accounts provide a fair image ofthe activity and the results from the operations in Coop NorgeSA for 2011. In accordance with the Accounting Act and thegenerally accepted principles of accounting, the Board confirmsthat the assumptions for future operation are present. The annualaccounts are thus presented according to the principle suggestingthe continuation of the Company’s operations.Financial riskCoop Norge SA, the Group, has equity of 4,939 million NOK. Theequity constitutes 36 percent of a total balance of 13,845 millionNOK. Of the equity, 695 million NOK constitutes the committeddeposits from the owners. Of the total liabilities in the Group,8,906 million NOK constitutes placements and advance paymenton goods from the co-operatives amounting to 2,036 million NOK.The cash flow analysis show a negative cash flow in the Groupof 1,049 million NOK. Liquid means as at December 31 st 2011constitutes 618 million NOK. In addition, Coop Norge SA, theGroup, has unexploited drawing rights amounting to 774 millionNOK as at 31. December 31 st 2011. The Board assesses theequity as adequate for future investments in the Group. For furtherinformation about financial risk, please see note 2.Of fixed assets in the parent company, 2,587 are constituted byownership shares in Coop Norge Handel AS. This includes an addedvalue of 1,157 million NOK. The ownership share in Coop NorgeEiendom AS (Property) constitutes 1,592 million NOK of the balance.The ownership share in Smart Club AS constitutes 133 millionNOK of the balance.The main bulk of the properties in the company are propertiesthat are of strategic value for Coop, primarily related to the shopactivity. The majority of the leases that are related to the propertiesare long-term leases with the co-operative societies and theGroup company Smart Club. The risk of loss on accounts receivable,premises that are not let and breach on the part of tenantsis therefore lower than the normal situation when it comes toleasing to external customers.7 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 20118

THE BOARd OF DIRECTORS’ REPORTAccounts receivables on towards the co-operative societies constitute2,069 million NOK. Loans from the parent Company toaffiliated companies and subsidiaries constitute 708 million NOK.Coop Norge SA manages 1,650 million NOK in financial investmentsas at December 31 st 2011. The means have been investedin the bond and stock markets. The risk profile in the financemanagement is low.EMPLOYEESPersonnelAs at December 31 st 2011, Coop Norge SA, the Group, had2,564 employees, compared to 2,519 in 2010. At the close of2011, 858 women and 1,706 men are employed in Coop NorgeSA, the Group.The Board holds the opinion that it is important that managers,employees and member elected representatives in Coop have thenecessary knowledge and competence to attend to their tasks inthe best possible manner. Therefore, great effort has been madeto increase the level of knowledge and competence among themember elected representatives and the co-operative societymanagers through the reporting year.Work environmentCoop Norge SA is preoccupied with safeguarding that all employeesshould enjoy their workplace. During the course of the year,an employee survey was conducted in Coop Norge Eiendom andin Coop Norge SA. The survey measures the employees’ wellbeing, commitment, loyalty and experienced management. Inboth companies, the results were good, and showed progresssince the previous survey (2009). The employee survey that isconducted every other year in the Group forms an important partin the work related to HSE in the Group.In 2011, the absence due to illness in Coop Norge SA, the Groupwas 6.8 percent, compared to 5.9 percent in 2010.Through the company health service, Coop Norge SA has implementedpreventive measures against work related problems and illness.Survey of the total absence due to illness in 2011per company:COMPANY 2011 2010 CHANGECoop Norge SA, the Group 6,8 % 5,9 % + 0,9 %Coop Norge SA 2,9 % 3,1 % - 0,2 %Coop Norge Eiendom 4,2 % 3,4 % + 0,8 %Smart Club 6,3 % 8,8 % - 2,5 %Coop Norge Handel 7,1 % 6,8 % + 0,3 %Coop Norge Industri, the Group 7,1 % 4,9 % + 2,2 %Equality between men and womenEquality in Coop Norge SA, the Group, means that women andmen should have the same right and opportunities in and for work.The Agreement between HK/SAMFO confirms the importanceof continuing the work related to equality. Coop Norge SA, theGroup, has a wage system that is non-discriminatory.In the management development programmes in Coop NorgeHandel, the proportion of women is greater than the total proportionof women in Coop Norge Handel.In all elected bodies in Coop Norge SA, we strive for equalrepresentation of both sexes. The proportion of women in theannual meeting in Coop Norge is 42% compared to 46% in2010.Among the three members of the Control Committee,two are men, of which ones also the Chairperson. In the Boardof Directors of Coop Norge SA, 40% of the member electedrepresentatives is women. Since 2005, Coop Norge SA has hada female Chairperson of the Board. The position as Chairpersonof the Board in the co-operative societies is still dominated bymen. Of 117 Chairmen in 2011, we have had only 18 femaleChairmen, a proportion that constitutes 15% compared to 17%the previous year.Discrimination and accessibilityThe objective of the Act relating to discrimination is to promoteequality, secure equal opportunities and rights and prevent discriminationbecause of ethnicity, national origin, and descent, colourof skin, language, religion and outlook on life. The Group worksactively, goal-oriented and with a plan to promote the Act’s objectivewithin our enterprise. The activities include recruitment, wageand work conditions, promotions, opportunities for development,protection against harassment.The objective of the Act relating to discrimination and accessibilityis to promote equality and equal status, secure equal opportunitiesand rights to participation in society for all, independent ofany handicap and prevent discrimination because of functionaldisability. The Group has as its goal to be a workplace in whichdiscrimination does not occur because of functional disability. Wework actively and goal-oriented to design and prepare the physicalcircumstances so that the activity’s various functions may beexploited by as many as possible. It is assumed that no dangershould occur for the employee’s health and safety.Competence trainingConcentration on e-learning, in order to strengthen the competenceamong the managers and employees in our shops continue,and 45 training courses are available in the Competence Portal.Training within shop management that we provide in co-operationwith Handelshøyskolen BI is in demand by the co-operative societies.The demand in 2011 is no exception.Also in 2011, Coop Kompetanse has contributed considerably inmanagement training to support the processes related to the improvementin the co-operative societies and in Coop Norge Handel.ELECTED REPRESENTATIVESCompetence for the member elected representativesThe Chairperson programme, class 3, was completed in 2011with very positive feedback from the participants.Up to the present, 65 participants have completed the programmewhich is intended to strengthen the Chairmen and the Directorsso that they safeguard the future operations in a positive directionfor Coop.The organization department has completed a number of seminarsfor the Directors of the Boards, and guidance interviews with themember elected representatives in 2011. In addition, two meetingshave been held in the ”Forum for Chairmen of the Board”, whichis a network for the co-operative societies’ Chairmen.SOCIAL RESPONSIBILITYAs a large and visible player, owned by more than 1.3 millionmembers, social responsibility is an extensive and many-facetedarea for Coop. Through our activities, we influence on society -from the farmer in poor countries to children playing football inthe Norway Cup tournament. The Board holds the opinion that itis important that Coop manages its responsibility in a good manner– how we integrate social conditions, environmental concern,ethics, human rights and consumer considerations in our day today activities – to the best Interest of our customers and members– and of society at large.Environmentally friendly productsOne of the most important measures for Coop is to offer environmentallyfriendly products, and to prepare for a situation in whichour customers may be able to select more environmentally friendly.After a few years with diminish sales, it is therefore a pleasure tonote that both the turnover and the number of ecological productsincreased in 2011. The market for ecological products is small andinstable and the authorities’ goal of 15 percent ecological productionand consumption in 2020 seem to be difficult to reach. Whenit comes to environmentally approved products, the positive developmentwe have seen over the last few years continues. CoopÄnglamark is becoming more and more known and private brandsare an important contribution to drive the development further.Environmentally efficient operationsCost reduction through more efficient and more environmentallyfriendly operations forms a strong motivating force for Coop.Energy efficiency and thus reduced climate emissions throughthe project E-kutt has provided good results over several years andthis work will be further strengthened in the coming years. Oneexample is the establishment of an increasing number of shopswith CO2 as cooling medium. In this area, Coop is in the forefrontinternationally and the results indicate that a faster transfer toCO2 will be both environmentally and economically advantageous.In the area of waste, 2011 has provided considerable progressthrough joint, regional agreements for a number of Coop’s shops.Considerable savings, combined with better quality and control ofrecycling are proofs that this has been a correct measure.Coop is ”Norwegian Champion” in Swan labeled shops. This positionwill be strengthened and a growing number of Coop shopsare Swan labeled. Currently, we have 64 Swan labeled shops,out of 77 shops in Norway in total.Ethical tradeThe work related to ethical trade is complex, but neverthelessincreasingly important. Coop notes with satisfaction positive feedbackin the media with reference to our positions. Our ambitionis to give priority to areas in which we are able to contribute toconcrete improvements through tighter contact with the suppliers.Our visible membership in Initiativ for etisk handel (IEH (Initiativefor Ethical Trade)) is a prominent signal with respect to our commitmentin this field.Health and safe foodThe concentration on private brands entail increased follow-upwork of our suppliers to ensure that the production is performedIn accordance with our requirements. Increased proportion of localfood in Coop’s shops is a goal.To ensure safe food in the shops, quality audits of all shops wascompleted in 2011. Coop is involved in developing common guidelinesfor hygiene in the retail trade through the trade organizationDMF (Dagligvarehandelens miljøforum (The Grocery Trade’sEnvirnonmental Forum)). These guidelines are approved by theMattilsynet (The Norwegian Food Safety Authority).In 2011, we have seen increased attention related to potentialharmful effects of environmental poisons. This is an importantarea for Coop, and we have received a lot of acclaim for havingremoved parabens from our own private brand products manyyears ago.ReputationThe Board is content that Coop for several years has had and stillhas one of the business community’s best reputations. It is alsoa pleasure to note that the members in general are pleased withthe business and their membership. However, a good reputationand great member satisfaction is not the same that the customersand the members chooses to make their purchases at Coop’s.Therefore, the Board is preoccupied with increasing the loyaltyamong the members and other customers.9 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201110

THE BOARd OF DIRECTORS’ REPORTSPONSORSHIPS AND CULTURAL COMMITMENTCoop has as a goal that our sponsorships should be to the advantageof as many as possible of our 1.3 million members. Therefore,Coop is the general sponsor for Norway Cup – the world’slargest football tournament. Teams from all over Norway participatein the tournament and 250 of these teams receive a sponsorpackage from Coop with a new set of football sportswear andmiscellaneous equipment. Coop is also present at the Ekebergslettawith a large activity area for all the family.Within the area of health care, Coop co-operates with the Kreftforeningen(the Cancer Society). At one point or another, all of uswill be affected by cancer in some way or another, and in such asituation, it is good to know that more than six out of ten survivethe decease and that every third instance may be prevented. Butwe are not satisfied with that! Coop wants to contribute to saveeven more. Coop is the general sponsor the Rosa sløyfe (Pinkbow) and in October 2011, we set a new record and contributed1.4 million NOK to the fight against breast cancer.The Coop Juleaksjon (The Christmas Action) for the benefit ofthe Salvation Army also set a new record providing 2.1 millioncollected NOK during the course of December. Since compassionis one of Coop’s key values, it is therefore natural for Coop theconvert the value in practice by selling gift vouchers in our shops.The income to the Julegryta (The Christmas Pan) – constitutesimportant help to those who need it most in our society.2011 was also the year when the deposit machines for bottlesand cans in Coop’s shops installed to the so-called Considerationbutton. By selecting ”Give a little of yours”, you support Coop’sdevelopment work in co-operation with Norsk Folkehjelp (NorwegianPeople’s Aid).Samvirkemuseet (The Co-operative Museum)The Samvirkemuseet is visited every year by various organizationsand classes from the vicinity and by participants in courses andconferences from the co-operative societies and the Coop headoffice. The museum is also used for internal meetings and is wellsuited for building organization culture and promoting consciousnessof our co-operative values.In 2011, Samvirkemuseet attracted many visitors and experiencedgreat attendance on the cultural heritage day in September.The Samvirkemuseet was used as location for the shooting of a filmthat will be used for the marking of the Co-operative Year 2012.For many years, the Samvirkemuseet has received financial supportfrom the Bærum Local Council, but in 2011, the Local Councildecided to reduce its support to museums and cultural life asof 2012. It is therefore not certain whether the Samvirkemuseetwill receive support in 2012.The Board of Samvirkemuseet consisted of Odd Rune Andersen,Coop Norge SA, Marit Hemmingsen, Coop Nord and ToveRaastad Breien, Coop Østafjells with Reidar Stangenes, CoopInnlandet as deputy.Advokat Dehlis Fond (Lawyer Dehli’s Foundation)The foundation has as its objective to promote co-operativeinformation work. In 2011, the foundation supported the project”Jakten på vår egenart” (The Hunt for our Distinctive Character).Vitalization of our distinctive character is designed to support ourstrategic ambitions related to increased market shares and increasedprofitability.The Board did not receive proposals for candidates for AdvokatDehlis Pris in 2011, and in line with the byelaws, the prize was notawarded in 2011. The Board of Advokat Dehlis Fond consistedof Odd Rune Andersen, Coop Norge SA, Marit Hemmingsen,Coop Nord and Tove Raastad Breien, Coop Østafjells with ReidarStangenes, Coop Innlandet as deputy.IMPORTANT PARTNERSInternationallyInternational Co-operative Alliance (ICA)Coop Norge SA is member of the ICA which is the internationalcommon organization for co-operative enterprises. ICA is an independentinterest organization that unites, represents and servesco-operative enterprises all over the world. Coop Norge SA wasrepresented in the General Assembly 2011 which was organizedin Mexico.Cooperatives EuropeCooperatives Europe is the European branch of the global ICA.The General Secretaries in both ICA and Cooperatives Europevisited Norway in connection with the Samvirkefrokosten (TheCo-operative Breakfast) organized by the Samvirkesenteretin 2011.EuroCoopCoop Norge SA became member of EuroCoop in 2008. EuroCoopis an independent Interest organization for consumer co-operationsin Europe where the activity is directed at practical issuesaround business related co-operation, exchange of experiences,best practice and so on. Representatives from Coop Norge SA’sadministration have been elected in the organization’s governingbodies with sub-groups. In 2011, a decision to organize theGeneral Assembly 2011 in Norway with Coop Norge SA as hostwas taken.NationallyThe Norwegian Coopperative CentreCoop Norge SA is sitting with the other founding parties ofthe centre (NBBL, Landkreditt, Gjensidige, Norges Råfisklag,Norges Vel and Norsk Landbrukssamvirke) in the centre’sBoard. In 2011, the general manager resigned after only ashort period of employment. Until further notice, a new temporarygeneral manager of the centre has been appointed. Thecentre’s objective is to spread knowledge about the co-operativeas a form of enterprise. In 2011, the Samvirkefrokosten wasorganized with great attendance and positive feedback. Further,a number of training courses related to the Act relatingto Co-operatives has been organized all over the country. TheSamvirkesenteret also support a doctor scholarship holder whostudies co-operative law.OWNERSHIP GOVERNANCE AND COMPANY MANAGEMENTThe Board of Director’ workThe Board in Coop Norge SA has had 21 Board meetings andtreated 37 business related issues. The Board consists of eightDirectors. Of these, five have been elected by the Coop NorgeAnnual Meeting and three by the employees.Each Director is elected for two years. In 2011, Chairperson LisbethBull Husby and Director Wilhelm Gjertsen were re-elected, whereasTorill Opsal Thorp was elected as new Director for two years.The employee representatives Knut Berg, Tore Vea Berghageneand Helge Rygh, were all re-elected for two years in 2011. Inthe autumn of 2011, Helge Rygh resigned from the Board dueto health related problems. First deputy John Brattåker meets ona regular basis in the place of Helge Rygh until the next election.The Annual Meeting in Coop NorgeThe Annual Meeting in Coop Norge is the organization’s mostsenior body and consists of 55 representatives elected by CoopNorge District and 4 representatives elected by and from theemployees. Of these elected representatives, there are 34 menand 25 women.The most important task is to monitor that Coop Norge is managedin accordance with the general laws, Coop Norge’s byelaws andthe decisions that the Annual Meeting of Coop Norge makes. In2011, there have been two meetings that have considered 21issues compared to 34 issues the previous year.The Coop Norge Annual Meeting was held in Trondheim June15 th –16 th 2011.The Chairperson of the Coop Norge Annual Meetings in 2011 wasGrete Marie Eikebu from Coop Norge district Midt-Norge, whereasSølvi Jensen from Coop Norge district Nord was deputy Chairperson.SAMVIRKELAGENES GARANTIFOND ALSamvirkelagenes Garantifond is a co-operative society in whichCoop Norge is the sole owner. The objective of the foundationis to guarantee for loan deposits in co-operative societies thatare members of Coop Norge. The foundation is constituted ofthe return on the capital and the payment of the charge from theco-operative societies and Coop Norge. The foundation placesits means in the Norwegian bond market, mostly in bonds issuedby Norwegian public authorities. Samvirkelagenes Garantifondis not consolidated in the Coop Norge Group accounts. Thereason of that is that Coop Norge has not decisive influence ofthe company. The representatives from the co-operative societiesin Coop Norge’s Annual Meeting constitute the General Meetingfor the foundation. The foundation’s operational and financeincome was 34.4 million NOK. The result was positive with 31.3million NOK. The foundation’s equity is 468.1 million NOK, or99.9 percent of the total capital. The Board of the foundation iselected by the Annual Meeting for the Samvirkelagenes Garantifond.The Chairperson of the foundation’s Board is Lisbeth BullHuseby, whereas Nils-Edvard Olsen, Tove Raastad Breien andJohn Thunes constitute the rest of the Board. At the close ofthe year, Ola H. Strand was the general manager and a Directorof the Board. The Samvirkelagenes Garantifond is underthe inspection of the Finanstilsynet (The Financial SupervisoryAuthority of Norway).ALLOCATION OF THIS YEAR’S RESULT2.75% interest of the deposited committed capital 19 million NOKTo other equity159 million NOKOUTLOOKThe Board is confident that Coop will reach its strategic goals, witha particularly strong focus on profitability for growth. The demandingmarket situation continues into 2012 and will still sharpen thecompetition in the business further.The importance of standing out in a complicated media situationis continuously more difficult and will lead to several newmeasures for attracting the customer’s attention. The correctmeasures will require knowledge about the individual customer’sshopping habits and needs. Coop has therefore, in co-operationwith Dunnhumby Ltd, as one of the world’s most recognizedanalyst companies, established the company Dunnhumby NorwayAS. Dunnhumby brings along unique competence and advancedtools that Coop will make use of for further strengthening itsposition in the market.We still expect high rate of establishment of new shops in themarket, and the low price chains will continue setting up largershops with broader range of goods. The next few years, Coopplans to establish a record number of new shops all over thecountry. We are constructing a new, modern and fully automaticcentral warehouse, a new roasting factory and we plan to establisha new head office. All of these elements are important tomaintain Coop as a modern, efficient and future oriented organization.Through an offensive strategy and market approach,Coop will strengthen its position to be in the forefront of thedevelopment in the market.11 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201112

THE BOARd OF DIRECTORS’ REPORTContinuous restructuring and new growth are necessary elementsto be able to be a part of the market development, but the Boardalso points at the importance of growth in Coop in the years tocome. This growth must be sufficient to secure Coop’s positionas the country’s next to largest grocery player.The Board extends its gratitude to the Group’s employees,management, member representatives and members for the cooperationand effort to obtain good results. Coop is the resultof teamwork and without your help, we would not have beenwhere we are today. The Board acknowledges that we face greatchallenges, but we are confident to succeed in the work ahead.Oslo March 27 th 2012The Board of Coop Norge SALisbeth Bull Husby Magne Vathne Wilhelm GjertsenChairperson of the Board Deputy Chairperson DirectorOlav Rønningen Toril Opsal Thorp Tore Vea BerghageneDirector Director DirectorKnut Berg John Brattåker Ola H. StrandDirector Director CEO13 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201114

THE BOARd OF DIRECTORS’ REPORTAnnualaccounts andnotes15 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201116

Annual accounts and notesProfit and loss accountsBALANCE SHEETPARENT COMPANYTHE GROUPPARENT COMPANYTHE GROUP2010 2011 Note Amounts in millions NOK 2011 201027 573 28 312 Sales revenues 28 785 28 06525 897 26 565 Goods consumes 26 027 25 3701 676 1 746 Gross profit 2 759 2 6959 10 Other operating revenues 1 256 1 2001 685 1 757 5 Net operating revenues 4 015 3 89550 47 6, 8, 9 Cost employees 1 458 1 41955 55 14, 16 Depreciations and write-downs 306 2661 561 1 622 7, 10, 11 Other operating costs 1 851 1 8701 666 1 724 Total other operating expenses 3 614 3 55519 33 OPERATING PROFIT/LOSS 401 340169 167 4, 12, 15Revenues investments in subsidiaries andaffiliated companies1 (4)158 121 12 Financial revenues 141 132(93) (117) 12 Financial costs (299) (189)234 171 Total net financial items (61)253 204 PROFIT/LOSS BEFORE TAX 243 280(25) (26) 13 Tax on ordinary profit/loss (67) (66)228 178 ORDINARY PROFIT/LOSS AFTER TAX 176 214Minority (2) (14)2010 2011 Note Amounts in millions NOK 2011 2010123 87 13 Deferred tax advantage 105146 92 14 Other intangible assets 119 17617 16 16, 26 Tangible fixed assets 6 0683 989 4 312 3, 4, 15 Investments in shares and units 502 6331 230 755 9, 17, 24 Other long-term receivables 2355 506 5 262 Fixed assets 7 21720, 26 Stock 1 111 1 0022 087 2 204 10, 24, 26 Accounts receivable from customers/trade debtors 2 096163 256 24 Other short-term receivables 507628 1 650 18 Financial investments 6281 224 399 19 Bank deposits, cash in hand etc. 1 6664 103 4 508 Current assets 6 244 5 9009 608 9 770 TOTAL ASSETS 13 845 13 117695 695 21 Committed deposits 6954 047 4 200 Other equity 4 200 4 039Minority interests 1124 742 4 895 21 Equity 4 84719 22 9, 17 Pension commitments 1392 92 Other long-term liabilities 113112 114 Provisions for liabilities 126228 178THE MAJORITY’S SHARE OF THIS YEAR’SRESULT 178 22822, 26 Long- term liabilities 3 259 2 5411 283 1 389 1, 25 Deposits 1 389 1 283210 159 Transferred to equity 21017 19 Interest from co-operative share capital 17Minority interests (14)228 178 Total transfers 176 2142 287 2 424 24 Trade creditors 2 5398 5 13 Payable tax 11934 743 Advance payment from customers 730 935243 200 23, 24 Other short- term debt 8353 472 3 373 Short-term liabilities 4 3209 608 9 770 TOTAL EQUITY AND LIABILITIES 13 845 13 117OSLO, MARCH 27 TH 2012THE BOARD OF COOP NORGE ASLisbeth Bull HusbyCHAIRPERSON OF THE BOARDMagne VathneDEPUTY CHAIRPERSONWilhelm GjertsenDIRECTOROlav RønningenDIRECTOROla H. StrandCEOTore Vea BerghageneDIRECTORToril Opsal ThorpDIRECTORKnut BergDIRECTORJohn BrattåkerDIRECTOR17 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201118

Annual accounts and notesCASH FLOW STATEMENTEQUITY BALANCEPARENT COMPANYTHE GROUPPARENT COMPANY2010 2011 Amounts in millions NOK 2011 2010252 204 Ordinary profit before tax 280(10) (8) Taxes paid in the period (20)55 55 Ordinary depreciations 316 3150 Down-writing of fixed assets (10) (49)(2) (3) Profit from sale of current assets (2)3 2 Pensions – difference (21) 1017 Loss on sale of shares, current 17(169) (167) Entered share of profit/loss subsidiary/affiliated company 723 Value adjustments financial current assets / currency 27129 123 Net cash flow from the this year’s operating activities 541Stock (84)112 (111) Changes trade debtors 169107 (27) Changes in accruals 10162 132 Changes trade creditors 228(630) (12) Changes in accruals (liabilities) (875)(220) 105 Net cash flow from operating activities (1) 242 80(80) Changes in short-term receivables (18)47 Changes short-term liabilities 42 3 Payments from sale of fixed assets 115(1) (4) Payments on investments in fixed assets (543)Payments from the sale of shares and units, external 121(17) Payments for investments in shares and units, internal (88)Payment from sale of subsidiary 21(200) Payment on investment in subsidiary (134) (43)(628) (1045) Payment on purchase of financial current assets, external (1049) (628)Other allocations for long-term liabilities(627) (1 295) Net cash flow from investment activities (2) (1 630) (978)1095 477 Changes in long-term receivables 26 (25)Changes long-term liabilities 442 1373(204) Changes in short-term liabilities co-operative societies (204)Changes in overdraft facilities (11)91 106 Changes in time restricted deposits 91Changes in minority interests 1513 (1) Changes in equity (1) 1364 6 Received group contribution(17) (19) Interest on committed capital (19) (17)Reclassification short-term liabilities to credit institutions (148)1 247 364 Net cash flow from financing activities (3)400 (825) Net change in liquid resources (1+2+3) (1 049) 404Amounts in millions NOKCommittedcapitalJointlyownedco-operativeshare capitalLegalreserveOtherequityMinorityinterestTotalEquity as at January 1 st 2011: 695 421 1 295 294 2 037 4 742Changes committed capital (1) (1)This years’ profit/loss 162 16 178Interests from the committedcapital(19) (19)Adjustments equity method (5) (5)Equity as at December 31 st 2011: 695 421 1 295 456 2 029 - 4 895THE GROUPAmounts in millions NOKFund forassessmentdifferencesCommittedcapitalJointlyownedco-operativeshare capitalLegalreserveFund forassessmentdifferencesOtherequityMinorityinterestTotalEquity as at January 1 st 2011: 695 421 1 295 2 323 112 4 847Transactions with owner(capital increase/reduction)(1) (66) (67)Changes deferred tax 8 8This years’ profit/loss 178 (2) 176Interests from the committedcapital(19) - (19)Adjustments equity method (5) (5)Equity as at December 31 st 2011: 695 421 1 295 - 2 485 44 4 939THE MINORITY INTERESTS CONSIST OF: 2011 2010Hadelandsparken AS - 1Norsk Bransjesenter AS 13 109Rosenlund AS 28Larønningen AS (1)Goman Valaker AS 3 2Goman Nord AS 1Minority interests under equity 44 112824 1 224 Liquid resources as at 1.1. 12621224 399 Liquid resources as at 31.12. 618 166619 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201120

Annual accounts and notesNOTES TO THE CONSOLIDATED ACCOUNTS 20111. ACCOUNTING PRINCIPLESGeneralThe Group Coop Norge consists of companies that operate withinretail trade, wholesale, property as well as Industrial productionof foods. The parent company in the Group is Coop Norge SA.The companies in the Group are detailed in note 3.Coop Norge SA is the common organization for the consumers’co-operative societies in Norway. Coop Norge A is owned by 117 cooperativesocieties that are Coop Norge SA’s members. A consumers’co-operative society is a company in which each member’s liabilityis limited to the committed capital and where the profit is distributedon the members in accordance with their purchase from the cooperativesociety (purchase bonus/purchase return). Coop Norge SAis a co-operative society. A co-operative society has as its objectiveto procure its members with suitable goods at competitive prices.Each co-operative society has paid in committed capital to CoopNorge SA. 25 percent of the purchase return from Coop NorgeSA is re-invested in increased committed capital. Thus, there isa difference in the individual co-operative society’s committedcapital in Coop Norge SA.The committed capital is not negotiable. If a member resigns, thecommitted capital is paid back. Thus, the owners have no opportunityto realize the values that the equity represents by means of sale.Beyond the nominal value, the committed capital only has valuethrough the advantages that the membership provides: purchasereturn, member offers, discounts, favourable interest rates and so on.Co-operative societies are not negotiable. This is a natural consequenceof the fact that the committed capital is not negotiable. Everyonethat agrees in the society’s objective and byelaws have a right tobecome members against paying the determined committed capital.The Board of Coop Norge SA has laid down guidelines as t howsurplus liquidity in Coop Norge SA may be placed in securitiesand/or bank deposits.In accordance with the Apport Agreement that was signedbetween the Parties that at the time of formation Coop NordenAB, the ”cost plus” model is employed. The ”cost plus” modelentails that Coop Norge SA purchases all goods from Coop NorgeHandel AS with a mark-up on the cost of the goods with a marginagreed in advance. Further, Coop Norge SA purchases all servicesthat are provided by Coop Norge Handel AS at cost price with theexception of particular items.The accounts have been prepared in accordance with the requirementsthat ensue from the Accounts Act with regulations, thegenerally accepted principles of accounting and the accountingstandards adopted by Norsk Regnskaps Stiftelse.Certain adjustments in the grouping of items in the accounts havebeen made compared to previous years.Consolidation principlesConsolidated companiesIn the Group, subsidiaries are defined as a company in whichCoop Norge SA has decisive influence by controlling more than50 percent of the votes, directly or indirectly.In the Group accounts, affiliated companies are companies inwhich Coop Norge SA has considerable influence through anownership share of 20–50 percent. These companies are consolidatedaccording to the equity method of accounting.Elimination of shares in subsidiariesIn the Group accounts, subsidiaries are consolidated according tothe acquisition method of accounting. In case of acquisition of acompany, the difference between the purchase sum related to theshares and the company’s total equity transferred to those of thecompany’s assets or liabilities that have added/subtracted value.Added/subtracted value is treated in Coop Norge’s accounts inaccordance with the company’s other assessment principles. Anyfurther remaining value is treated in the consolidated accountsas goodwill. Goodwill is depreciated in pace with the underlyingconditions, however with at least 10 percent per year.Elimination of internal transactionsAll significant transactions and inter-company balances between companiesthat are included in the consolidated accounts have beeneliminated. Minority interests have been specified as a separate entryafter ”Annual profit/loss” and as a separate entry in the balance sheetunder ”Equity”. Group internal profit in cases of sale of fixed assetsin the parent are reversed and treated as a deferred income entry.Acquisition of subsidiariesAcquired subsidiaries are entered in the Group accounts basedon the parent company’s acquisition cost. The acquisition cost isassigned to the real value of identifiable assets and liabilities in thesubsidiary that are entered in the Group accounts at real value atthe time of the acquisition. Any added value beyond what may beassigned to identifiable assets and liabilities are brought to the balanceas goodwill. Goodwill is treated as a residual and is broughtto the balance with the share that is observed in the acquisitiontransaction. Added value in the Group accounts is depreciatedover the acquired assets’ expected service life.Added values related to acquisitions have been entered withdeferred tax relative to the added value analysis.Conversion of foreign companiesOn consolidating foreign companies, the profit/loss accounts areconverted to NOK according to the average rate of exchange forthe accounting period, whereas the balance is converted accordingto the exchange rate on the balance day.ASSESSMENT AND CLASSIFICATION PRINCIPLESAssetsAssets intended for permanent ownership or use are classified asfixed assets. Assets that are related to the goods circulation are classifiedas current assets. Receivables are classified as current assetsif they are to be repaid during the course of one year after the dateof payment. For liabilities, analogous criteria are used as a basis.Current assets are assessed at the lowest of purchase value andreal value. Short-term liabilities in NOK are brought to the balanceat the nominal amount at the time of establishment.Fixed assets are assessed at acquisition cost. Fixed assets thatdepreciated are depreciated linearly over the expected service life.The fixed assets are written down to real value in case of reductionin value to the extent that the rules of accounting so require.Allocations are discounted down if the interest element is significant;i.e. normally seen if the allocation runs over more than five years.Sales income and net operating incomeEntering of income on sale of goods is made on delivery time.Services are entered as income at the rate of performance. Netoperating income is presented after deduction of discounts; valueadded tax, public contributions, if any, and consumption of goods.Ordinary sales discounts (co-operation discounts) as well as establishmentdiscounts are entered as deduction from sales income.Discounts and commissions from suppliers have been entered asdeductions on purchase of goods.Subsidiaries and affiliated companiesSubsidiaries, affiliated companies and jointly controlled enterprisesare assessed according to the equity method of accounting inthe company accounts. The proportion of the result is based onthe result after tax in the company one has invested in. From theshare of the result, deduction has been made for internal profit anddepreciations of added value, if any, that is due to the fact that thecost price of the shares was higher than the acquired share of theequity brought to the balance. In the parent company’s profit/lossaccounts, the share of the result is presented under financial items.TaxesThe tax costs in the profit/loss accounts include both payable taxesand changes in deferred tax. Deferred tax is calculated at 28 percenton the basis of the temporary differences that exist between theaccounting and tax related values, as well as any tax related loss tobe brought forward at the close of the accounting year. Tax increasingand tax reducing temporary differences are differences that haveoccurred in one period and that are reversed or may be reversed ina later period. Deferred tax and deferred tax advantage that may bebrought to the balance are entered as net in the balance.Intangible assetsIntangible assets are brought to the balance to the extent thecriteria for being brought to the balance are satisfied. The intangibleassets are depreciated linearly over the expected service life.Intangible assets consist of other rights and goodwill.Fixed assetsFixed assets are brought to the balance at historic cost price,reduced by linear depreciations and downwrites, if any. Depreciationsare classified in the profit/loss accounts as ordinary depreciations.The rates for calculating depreciations have been determinedon the basis of a level-headed assessment of the individual fixedasset’s economic life. Fixed assets that are considered as havingpermanently lower value than the value brought to the balance arewritten down. In case of sale or other realization of fixed assets,the profit has been entered as operating income and the loss asoperating cost.Leased fixed assets are brought to the balance as working capitalif the lease contract is assessed as financial.LeasesLeases in which the tenant does not have a material part ofthe risk are classified as operational leases. Payments relatedto operational leases (with the deduction for financial contribution/contributionfrom the Lessor, are entered in the profit/lossaccounts linearly over the lease period.Leases where the Group has the material risk and control are classifiedas financial leasing and are brought to the balance at real value.LoansLoans are classified as short-term liabilities provided an unconditionalright of deferring the payment of the debt for more thantwelve months from the day of the balance is present.Interest swap agreementsThe company employs interest swap agreements to manage itsrisk exposure for changes in the interest level. (Cash flow hedging).Interest swap agreements that fulfil the requirements of beingcash flow hedging instruments are not brought to the balance.Guarantee liabilityExpected expenses for future guarantee work related to sale/completed projects are entered as costs and entered as allocationunder short-term liabilities in the balance. The allocation is basedon historic figures for guarantees.Financial investmentsSecurities in the form of bonds, certificates and current assetinvestments are classified as financial investments and assessedat market value at the close of the year. Long-term shareholdingsare classified as long-term investments that are not treatedaccording to the equity method of accounting (see above) areassessed at purchase cost. Such shares are written down whenthe real value is considerably lower than the value brought tothe balance and the reduction in value is not considered to beof temporary character.21 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201122

Annual accounts and notesPOWER HEDGINGIn 2011, Coop Norge Handel, the Group, had a power consumptionof about 70 GWh. In order to make the basis for predictability in theelectricity rates, a great proportion of the consumption is hedged3. COMPANIES IN THE GROUPSubsidiariesOwnership shareCoop Norge Industri AS, Oslo 100 %Coop Norge Kaffe AS, Oslo 100 %AS Margarinfabrikken Norge, Oslo 100 %A/S Røra Fabrikker, Inderøy 100 %Gomanbakeren Holding AS, Sandnes 100 %Goman-Bakeriet AS Hønefoss, Hønefoss 100 %Goman-Bakeriet AS Jæren, Figgjo 100 %Goman-Bakeriet AS Oslo, Oslo 100 %Goman-Bakeriet AS Nord-Trøndelag, Verdal 100 %Goman Bakeriet AS Sørlandet, Kristiansand S 100 %Goman Bakeriet AS Trondheim, Trondheim 100 %Goman Bakeriet AS Østfold, Rolvsøy 100 %Goman Valaker AS, Søvik 50 %Rognaldsen Bakeri AS, Lindås 50 %Goman Nord AS, Tromsø 85 %Smart Club Gourmet AS, Oslo 100 %NAF Trading A/S, Brøndby, Denmark 47,5 %Hvebergsmoen Potetpakkeri AS, Grinder 23,9 %Coop Norge Stavanger Eiendom AS, Oslo 100 %Coop Norge Grorud Eiendom AS, Oslo 100 %Coop Norge Hamar Eiendom AS, Oslo 100 %Coop Norge Bergmoen Eiendom AS, Oslo 100 %Affiliated companiesOwnership shareCoop Trading A/S, Albertslund, Denmark 25 %Takecargo AS, Lysaker 32 %Joh.Weydahl AS, Oslo 45 %Dagligvareleverandørenes Miljøforum AS, Oslo 25,0 %Coop Norden Bygg Inköp AB, Solna, Sweden 50,0 %through financial contracts. In 2011, hedging was made for 76 percentof the consumption, whereas for 2012, hedging has been madefor 65 percent of the consumption. The profit in 2011 compared tothe prices at the Nord-Pool was around 2.2 million NOK.As at December 31 st 2011, Coop Norge, the Group, consists of the following 100 percent owned companies in addition to Coop Norge SAwhich is the parent company:Coop Norge Eiendom ASSubsidiaries andaffiliated companies,listed below:COOP NORGE HANDEL, THE GROUPCoop Norge SASmart Club ASCOOP NORGE EIENDOM, THE GROUPSubsidiariesCoop Norge Handel ASSubsidiaries andaffiliated companies,listed below:Ownership shareHundskinnveien 100 AS, Moss 100 %Meierikvartalet AS, Moss 100 %Anton Jensens Gate 2 AS, Moss 100 %Jessheim Vest Eiendom AS, Moss 100 %Tangerud Eiendom AS, Moss 100 %Coop Ellingsrud Eiendom AS, Moss 100 %Hensmoen Eiendom AS, Moss 100 %Larønningen Eiendom AS 75 %Årdalssenteret AS, Moss 100 %Coop Eiendom Forvaltning AS, Moss 100 %Moss Parkering AS, Moss 100 %Grønnland Brygge AS, Moss 100 %Coop Innlandet Eiendom AS, Moss 100 %Nordic Retail Park, Moss 100 %Region Øst Eiendom AS, Moss 100 %Coop Raufoss Kjøpesenter AS, Moss 100 %Bondelia Eiendom AS, Moss 100 %Kvartal 15 Gjøvik AS, Moss 100 %Longum Park AS, Moss 100 %Jernbanegata Lillestrøm AS, Moss 100 %Pustutveien 6-14 AS, Moss 100 %Brånås AS, Moss 100 %Jonsten Råde AS, Moss 100 %Smalvollveien 65 Eiendom AS, Moss 100 %Smalvollveien 64 ANS, Moss 99 %Smalvollveien 62 AS, Moss 100 %Lilletuneveien 3 AS, Moss 100 %Morstongveien 47 AS, Moss 100 %Rosenlund Bydelssenter AS, Kristiansund 60 %Hadelandsparken AS, Moss 100 %Hadelandsporten AS, Moss 100 %SubsidiariesOwnership shareCoop Østafjells Eiendom AS, Moss 100 %Beitostølen AS, Moss 100 %Stølstunet AS, Øystre Slidre 50 %Granstunet Eiendom AS, Gran 50 %Granstunet Parkering AS, Gran 100 %Coop Romerike Eiendom AS, Moss 100 %Sentrumsbygget Nes AS, Moss 100 %Sentrumsbygget Nes ANS, Moss 99 %Jernbanegaten 6 Kongsvinger AS, Moss 100 %Bjerkesenteret AS, Moss 100 %Norsk Bransjesenter AS, Moss 100 %Nordmørsenteret AS, Moss 100 %Breiviksenteret AS , Moss 100 %Askim Næringspark KS, Moss 100 %Askim Næringspark Invest AS, Moss 100 %Mo Handelspark AS, Moss 80 %Mo Handelspark I AS, Moss 100 %Mo Handelspark II AS, Moss 100 %Stoa Holding AS, Moss 70 %Stoa Bransjesenter AS, Moss 100 %Hangaren Lade AS, Moss 100 %Kilen Handelspark AS, Kristiansund 40 %Tolvkanten AS, Kristiansund 100 %Kilen Syd AS, Kristiansund 100 %Reservatveien 2 C AS, Kristiansund 100 %Reservatveien 6 AS, Kristiansund 100 %Reservatveien 10 AS, Kristiansund 100 %Namsos Handelspark AS, Asker 25 %Trio Eiendoms Invest AS, Tromsø 40 %Mosjøen Handelspark AS, Moss 100 %Nordlysparken AS, Harstad 50 %Mo Sentrumsutvikling AS, Mo i Rana 40 %Fauske Handelspark AS, Tromsø 100 %Coop Øst Eiendom AS, Moss 100 %Nittedalsgt ANS, Sarpsborg 99 %Romsåsveien 6 AS, Oslo 100 %Grønnland Næringseiendom AS, Moss 100 %CØE Selskap 1 AS, Moss 100 %Affiliated companiesOwnership shareCoop Vestfold and Telemark Eiendom AS, Moss 50 %Merdeveien 4 AS, Moss 100 %Storgt. 137 AS, Moss 100 %Larønningen Eiendom AS, Moss 25 %Holmejordet Stavern AS, Moss 100 %Jernbanegt. 3 Porsgrunn AS, Moss 100 %Gran Handelspark AS, Gran 50 %Verftsgata 7 AS, Namsos 50 %Innlandsporten AS, Stange 25 %Affiliated companiesOwnership shareStrandparken Utvikling AS, Kristiansund 40 %Strandparken Holding AS, Hammerfest 50 %Strandparken Eiendom AS, Hammerfest 100 %Strandparken Handel AS, Hammerfest 100 %Strandparken Hotell AS, Hammerfest 100 %Strandparken Kontor AS, Hammerfest 100 %Strandparken Parkering AS, Hammerfest 100 %Åsane Utvikling AS, Kristiansund 25 %Åsane Nord AS, Kristiansund 100 %åsane Eiendomsinvest AS, Kristiansund 100 %Åsane Bransjesenter AS, Kristiansund 100 %Coop Åsane Eiendom AS, Kristiansund 100 %Ruggevik Næringspark AS, Harstad 50 %Alta Handelspark AS, Moss 50 %Kvassnessveien 3 and 5 AS, Bergen 50 %Coop Oppdal Eiendom AS, Moss 50 %Taverna Alvdal AS, Alvdal 29 %Nøsthaugen Eiendom II AS, Kristiansund 40 %Botnkrona Eiendom AS, Kristiansund 50 %IEU Møbel Invest AS, Gjøvik 50 %IEU Mjøsen Eiendom Nord AS, Lillehammer 100 %Lofot-Sentret AS, Leknes 24 %Coop Øst Etablering AS, Moss 50 %Stasjonen Eiendom AS, Ålgård 33 %Skyttarveien Invest AS, Ålgård 100 %Coop Vest Eigedom AS, Moss 50 %Coop Vest Eigedom Øyrane AS, Moss 100 %Coop Vest Eigedom Ulsteinvik AS, Moss 100 %Coop Vest Eigedom Nordfjordeid AS, Moss 100 %Citus AS, Førde 50 %Kallerud Handelspark AS, Moss 45 %Lena Handelspark AS, Moss 100 %Haugesundsgata Eiendom AS, Moss 50 %Amco Eiendom AS, Surnadal 50 %Amfi Bygg Fauske AS, Surnadal 100 %Amfi Bygg Svolvær AS, Surnadal 66,7 %BB-Senteret Årnes, Surnadal 100 %Elverum Senterdrift Eiendom AS, Surnadal 100 %Råholtsenteret AS, Surnadal 100 %Sogningen Storsenter AS, Surnadal 100 %Ørsta Kjøpesenter AS, Surnadal 80 %Amco Bygg Nærbø AS, Surnadal 50 %Amfi Bygg Nærbø AS, Surnadal 50 %Dølastugu Eiendom AS, Surnadal 50 %Coop Rørvik Eiendom AS, Surnadal 50 %SAMVIRKELAGENES GARANTIFOND ALThe Samvirkelagenes Garantifond AL is neither treated as a subsidiary,nor as an affiliated company because Coop Norge SA has only one outof eight votes in spite of a 100% ownership share. See separate statementafter note 27.25 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201126

Annual accounts and notes4. Changes in the Group 5. AREAS OF ACTIVITYThe activity takes place for the major part in Norway.The following changes have taken place in Coop Norge SA, the Group, with reference to Coop Norge Handel, the Group andSmart Club AS. For changes in Coop Norge Eiendom, the Group, see separate statement below.Coop Norge Handel, the GroupThe following changes have taken place in 2011:AcquisitionCompany name Acquisition date Ownership share Type of companyCoop Norge Bergmoen Eiendom AS 24.6.2011 100 % SubsidiaryHvebergsmoen Potetpakkeri AS 30.9.2011 23,9% Affiliated companyEstablishmentsCompany name Establishment date Ownership share Type of companyGoman Nord AS 30.8.2011 100 % Subsidiary5. THE virksomhetsområderGROUP2010 Amounts in millions NOKGoods supply/wholesale Retail tradePropertybusinessOther/elimination The GroupBusiness figuresOperating income 29 132 1 325 413 (1 605) 29 265of which internal 1 537 68 (1 605)Operating profit/loss 273 (82) 141 (32) 340Assets/LiabilitiesSegment assets 14 527 436 4 917 (6 763) 13 117Total assets 14 527 436 4 917 (6 763) 13 117Segment Liabilities 8 560 299 3 366 (3 955) 8 270Coop Norge Eiendom, the GroupCoop Norge Eiendom has as its objective to acquire, develop, operate and sell on commercial properties, first and foremost forCoop’s trading activity in Norway. On rolling the portfolio of properties, a number of companies and shares will be sold and newones will be acquired. The following changes have taken place in 2011:Total Liabilities 8 560 299 3 366 (3 955) 8 270InvestmentsOperational investments 1) 200 40 323 - 563Depreciations and down-writing 176 32 26 32 266AcquisitionCompany name Acquisition date Ownership share Type of companyHadelandsparken AS 1.7.2011 34,0 % After the acquisition, this has becomea wholly owned subsidiaryStasjonen Eiendom AS 19.10.2011 33,3 % Affiliated companySmalvollveien 62 AS 15.11.2011 100 % SubsidiaryNorsk Bransjesenter AS 23.11.2011 34,0 % After the acquisition, this has becomea wholly owned subsidiarySmalvollveien 64 ANS 1.12.2011 100 % SubsidiaryRuggevik Næringssenter AS 22.12.2011 20,0 % Affiliated companyEstablishmentsCompany name Establishment date Ownership share Type of companyCoop Øst Etablering AS 25.3.2011 50,0 % Tilknyttet selskapSaleCompany name Sales date Ownership share Type of companyFinansgruppen Eiendom AS 24.2.2011 33,3 % Tilknyttet selskapKallerud Handelspark AS 1.3.2011 55,0 % Fra datterselskap til tilknyttet selskapHaugesundsgata Eiendom AS 1.11.2011 50,0 % Fra datterselskap til tilknyttet selskapLiquidationsCompany name Liquidation date Ownership share Type of companySmart Råde KS 30.6.2011 100 % Datterselskap2011 Amounts in millions NOKGoods supply/wholesale Retail tradePropertybusinessOther/elimination The GroupBusiness figuresOperating income 29 981 1 291 408 (1 637) 30 042of which internal 1 572 - 65 (1 637)Operating profit/loss 319 (96) 183 (32) 401Assets/LiabilitiesSegment assets 15 371 429 4 731 (6 686) 13 845Total assets 15 371 429 4 731 (6 686) 13 845Segment Liabilities 9 042 296 3 099 (3 531) 8 906Total Liabilities 9 042 296 3 099 (3 531) 8 906InvestmentsOperational investments 1) 311 9 302 - 622Depreciations and down-writing 173 35 65 32 3061)Investments in fixed assets do not include influx through acquisition of activity, hereunder goodwill.Mergers/demergersAskim Næringspark AS and Askim Produksjonspark AS; Parent -subsidiary merger.Siv Eigedom AS, that has changed its name to Coop Vest Eigedom AS, has changed from being a subsidiary to being an affiliatedcompany as a consequence of the merger with Nord-Sunn Eigedomsselskap AS.27 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201128

Annual accounts and notes6. PERSONNEL COSTS8. REMUNERATION TO THE BOARD, REPRESENTATIVES, THE CEO AND THE SENIOR MANAGEMENTPARENT COMPANYTHE GROUPCoop Norge SA2010 2011 Amounts in millions NOK 2011 201033 29 Wages, remunerations and more 1 101 1 0606 5 Employers’ national insurance contribution 160 1569 9 Pension costs 84 112Amounts in thousands NOK 2011 2010The Audit Committee 95 113The Annual Meeting 271 574The Board 1 633 1 4562 5 Other contributions 113 9050 47 Personnel costs 1 458 1 41930 29 Average number of man-labour years 2 137 2 267The CEOWages 3 900 3 630Actuary calculated pension costs *) 3 621 3 2827. AUDITPayment in kind 607 264Total 8 128 7 176PARENT COMPANYTHE GROUP2010 2011 Amounts in thousands NOK 2011 2010540 513 Statutory audit 3 883 3 803218 81 Attestation 348 435Total 10 127 9 319*)Service Cost is calculated before employers’ national insurance contribution.277 142 Tax and charges related assistance 370 552650 860 Other services 1 412 1 1981 685 1 596 Total 6 013 5 988Remuneration to leading personnelThe Group management and the CEO are members of the pension schemethat applies to the whole Group. For employees with defined benefit pensionscheme, this provides a total pension included the national insurance’scontributions at around 66 percent of the wages up to 12 times the nationalinsurance’s basic amount. For employees with defined contribution pensionscheme, an annual savings amount is paid in on the basis of the wage upto 12 times the national insurance’s basic amount. An operational pensionscheme that secures pension on the basis of wages in excess of 12 times thenational insurance’s basic amount has been established.The retirement age for the CEO is 62 years of age. In the period from 62years until 67 years, an early retirement pension of 66% of the wages is paid.The CEO has also a termination payment agreement for two years in case ofdismissal on the part of the company.The total remuneration paid to the members of the Group management:Total number of membersAmount9 22 2319. PENSION COMMITMENTSThe Group’s pension commitments show the employee’s earned rightsto future pension. The company has both define benefit and definedcontribution pension schemes. In a defined contribution pensionscheme, the company pays an annual deposit based on the employee’swage, whereas in a defined benefit pension scheme, the company isresponsible for securing the employee a determined pension amountrelative to the end wage and the calculated national insurance.Defined contribution pension schemeAll the companies in Coop Norge, the Group, have established adefined contribution pension scheme for their employees. Companieswith defined benefit pension schemes closed their schemes for newmembers as at December 31 st 2007.Defined benefit pension schemeThe defined benefit pension scheme includes funds based benefitschemes for employees who chose to maintain the defined benefitpension scheme at the closing time December 31 st 2007 and benefitschemes that are covered over the company’s operations. Definedbenefit schemes covered over the operations include contractual pensionschemes such as for example uninsured pension for wages beyond12 times the national Insurance basic amount (12G).The ”old AFP” scheme was dismantled in 2010 and the commitmentswith the appurtenant estimate deviation have been considered in theNRS calculation. There is a remaining allocation to cover the company’sown risk to the national insurance for the AFP pensioners who haveused the opportunity until December 31 st 2010. In addition, allocationshave been made for premiums belonging to the sane scheme to be paidto the LO/NHO scheme in the period 2011-2015 amounting to 17 millionNOK. The amount is included in the pension means under otherlong-term receivables (Note 17). The remaining net pension commitmentsas at December 31 st 2011 constitute 11 million NOK.Assumptions defined benefit pensionThe Group adheres to the recommendations issued by Norsk Regnskapsstiftelse.Bothe pension schemes satisfy the requirements to mandatory service pension.29 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201130

Annual accounts and notesPARENT COMPANYTHE GROUP10. LOSS ON RECEIVABLES2010 2011 Amounts in millions NOK 2011 2010DEFINED CONTRIBUTION PENSION SCHEMES1 1 Entered deposits 27 327 9 Number of members 1831 17725% / 8% 5% / 8% Percentage of wage 2G-6G / 6G-12G 5% / 8% 5% / 8%DEFINED BENEFIT PENSION SCHEMES33 32 Number secured in the defined benefit pension scheme 1964 2 14510 12 Of which pensioners 1159 1 264COMPOSITION OF NET PENSION COSTS6 5 Present value of this year’s pension earnings 39 323 3 Interest cost on pension commitments 47 53(2) (2) Expected return on pension means (49) (49)- 0 Administration costs 4 -8 9 Net pension costs pursuant to NRS 50 681 Other pension costs 82 1128 9 Total pension costs 82 112COMPOSITION OF NET PENSION COMMITMENTS AS ATDECEMBER 31 ST76 78 Gross pension commitments 1 134 1 139(41) (43) Pension means (994) (959)35 35 Net pension commitments 140 180(17) (14) Deviations from the assumption not included in the profit/loss accounts (150) (171)19 21 Net pension commitments brought to the balance (Overfinancing) (9) 10- - Uninsured pension commitments outside of NRS 2 319 21 Net pension commitments brought to the balance (Overfinancing) (8) 13CALCULATION ASSUMPTIONS 2011 2010Discount interest 3,90% 4,2%Return on pension means 4,50% 5,0%Provisions for bad debts are calculated to cover foreseeable loss on accounts receivables, other short-term and long-term receivables.PARENT COMPANYTHE GROUP2010 2011 Amounts in millions NOK 2011 20101 Established loss 2 24- (14) Provisions for bad debts (13) 2119 - Reversal of previously allocated loss (0) (90)(39) - Net influx Group accounts 0 25(20) (13) Loss on receivables (11) (19)40 20 Provisions for bad debts as at January 1 st 18 70-20 (14) Changes provisions for bad debts (11) (45)20 6 Provisions for bad debts as at December 31 st 7 25Neither the parent company or the Group has any significant credit risk related to one or several counterparts that may be considered to be a groupbecause of similarities in the credit risk. The Group has guidelines in order to safeguard that sale that sale only is made to customers that have hadno significant problems with payment earlier.11. OTHER OPERATING COSTSPARENT COMPANYTHE GROUP2010 2011 Amounts in millions NOK 2011 201018 1 Rent premises, energy and other costs related to premises 171 2622 1 Rent machines, furnishings and entered acquisitions 81 80- - Freight costs 472 43214 19 Marketing costs 701 7011 523 1 563 Costs related to wholesale activity in Coop Norge Handel - -3 38 Other operating costs 426 3951 561 1 622 Total 1 851 1 870Wage regulation 3,50% 3,5%G regulation 3,75% 3,8%Pension regulation 0,40% 0,9%VOLUNTARY RESIGNATIONS/TURNOVEREmployees under the age of 45 2,0 % 2,0 %Employees over the age of 46 0,0 % 0,0 %31 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201132

Annual accounts and notes12. finansielle poster13. taxesPARENT COMPANYTHE GROUPPARENT COMPANYTHE GROUP2010 2011 Amounts in millions NOK 2011 2010169 167 Results from subsidiaries and affiliated companies 1 (4)88 39 Interest income from subsidiaries4 4 Interest income from affiliated companies 8 103 7 Interest income from co-operative societies 7 313 66 Interest income from others 97 3150 6 Return on investment portfolio 7 55- 0 Other financial income 24 33158 121 Total financial income 141 1322010 2011 Million NOK 2011 2010THIS YEAR’S TAX COSTPayable tax 4 3- 0 Too much (too little) allocated last year 1(18) (15) Tax effect of received Group contribution35 36 Changes in deferred tax 57 568 5 Capital tax 5 825 26 Tax costs 67 66CALCULATION OF THIS YEAR’S PAYABLE TAX252 204 Result before tax costs 243 2804 5 Interest costs to subsidiaries45 50 Interest costs to co-operative societies 50 4524 19 Interest costs others including interest swap deals 183 10719 40 Loss on investment portfolio 61 191 2 Other finance costs 6 1893 117 Total finance costs 299 189(169) (167) Share of the result from DS and TS (27) 7(23) 38 Permanent differences (33) (83)(65) (7) Changes temporary differences (48) (156)66 55 Received Group contribution(61) (122) Changes in loss to be brought forward (121) (37)- - Basis payable tax 14 12- - Tax 28% of which 4 3234 171 Total net finance (158) (61)8 5 Capital tax 5 88 5 Total payable tax in the balance sheet 9 11SPECIFICATION OF THE BASIS FOR DEFERRED TAX3 (22) Fixed assets 293 235(19) (5) Short-term receivables (10) (27)Stock (118) (94)(20) (22) Provisions for commitments (9)80 64 Profit and loss accounts 68 76(224) (188) Allocations according to the generally accepted principles for accounting (216) (296)(9) (9) Unexploited payment on share dividend (9) (9)(250) (128) Tax related loss (158) (279)- - Elimination of temporary differences 28(439) (310) Basis for calculation of deferred tax (151) (376)(123) (87) Deferred tax advantage in the balance sheet (42) (105)Influx/exit from the Group *) 56(439) (310) Total tax reducing temporary differences (151) (320)35 36 Changes deferred tax 47 51THE CHANGE OF DEFERRED TAX CONSISTS OF35 36 Deferred tax on ordinary result 57 56- - Changes deferred tax on items brought to the balance (8) (10)- - Deferred tax effect entered directly against equity (9) 11- - Influx the Group 7 (6)35 36 Changes deferred tax 47 51*) Temporary differences as per January 1st 2011 on bought/sold company in 2011.Payable tax in the Group as the sum of payable tax in the company accounts.33 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201134

Annual accounts and notes14.INTANGIBLE ASSETSPARENT COMPANYOther right Goodwill TotalTHE GROUPIntangible rights(Amounts in millions NOK) Other right *) Goodwill Total- 280 280 Acquisition cost as at January 1 st 15 308 323Changes in the composition of the Group- - Influx 1 1- - - Exit/reclassification (3) (3)- 280 280 Acquisition cost as at December 31 st 15 306 321- (187) (187)- 92 92Accumulated depreciations as atDecember 31 st(3) (198) (202)Value brought to the balance as atDecember 31 st 11 108 1190 54 54 This year’s depreciations (0) 58 585–10 years Expected economic service life 30 year 5–10 yearsLineær Depreciation plan Lineær Lineær*)Other rights consist of lease rights in Meierikvartalet AS that are depreciated over 30 years.15. INVESTMENTS IN SHARES AND UNITSSubsidiaries and affiliated companies have been included in accordance with the equity method in the parent company’s accounts. Reference ismade to the description of the accounting principles above. Below, this year’s changes in book value for subsidiaries and affiliated companies asa consequence of the equity method are shown.SharecapitalPARENT COMPANYOwnershippartSUBSIDIARIES IN THE PARENT COMPANYAmounts in millions NOKOwnershipshareOriginalcost priceas atJanuary 1 st2011Valueas atJanuary1 st 2011Influx2011Exit2011Shareof theresultas atDecember31 st2011Depreciations/downwritingaddedvalueGroupcontribution/DividendTHE GROUPValuebrought tothe balance (Amounts in millions NOK) Value brought to the balance965 100 % 4 312 Subsidiaries -- - Affiliated companies (CNE/CNH) 494- - Other shares 8965 4 312 Investments in shares and units as atDecember 31 st 2011OtheradjustmentsValueas atDecember31 stCoop Norge Eiendom AS 100 % 1 063 1 441 - - 87 64 1 592Coop Norge Handel 100 % 2 529 2 411 200 - 187 (32) (175) (4) 2 587 1 157Smart Club AS 100 % 169 137 - - (76) 72 133Investments in subsidiaries 3 761 3 989 200 - 198 (32) (39) (4) 4 312 1 1572011502RestaddedvalueAFFILIATED COMPANIESAmounts in millions NOKOwnershipshareValue as atJanuary 1 st2011Influx2011Exit2011Share ofthe resultas atDecember31 st 2011Depreciations/downwritingaddedvalueGroupcontribution/DividendOtheradjustmentsValue asat December31 st2011FinansGruppen Eiendom AS 136,3 235,6 (235,6) -Coop Vest Eigedom AS, fraDS til TS48,1 18,1 66,3Innlandsporten AS 0,1 (0,2) (0,2) (0,4)Haugesundsgata Eiendom ASfra DS til TS- 0,9 0,2 1,0Stoa Holding AS 5,0 3,7 (3,7) -Kallerud Handelspark AS, fraDS til TS- - 6,8 (0,1) 6,6Coop Øst Etablering AS - - 25,0 0,4 25,4Rosenlund Bydelsenter AS fraTS til DS30,8 18,1 (18,1) -Strandparken Utvikling AS 6,3 4,8 (0,6) 4,2Mo Handelspark AS 6,9 6,3 (6,3) -Åsane Utvikling AS 6,5 3,6 (0,8) 2,8Ruggevik Næringspark AS 2,0 1,9 2,0 (0,2) 3,6Alta Handelspark AS 1,0 1,0 (0,0) 1,0Kvassnesveien 3 and 5 AS 7,2 6,3 (0,4) 6,0Nøsthaugen Eiendom 2 AS 10,2 10,2 (0,2) 10,1Larønningen Eiendom AS 2,1 1,2 (1,2) -Coop Oppdal Eiendom AS 1,0 0,6 (0,1) 0,5Lofotsenteret AS 10,0 10,1 0,2 9,9RestaddedvalueAmco Eiendom AS 223,8 218,1 8,6 1,1 227,8 (22,0)Coop Vestfold and TelemarkEiendom AS17,5 10,1 16,0 (2,2) 23,9IEU Møbel Invest AS 7,5 9,1 1,5 10,6Gran Handelspark AS 1,0 0,8 (0,3) 0,4Verftsgata 7 AS 1,5 1,5 (0,5) 1,0Botnkrona AS 0,5 1,4 0,4 1,8Stasjonen Eiendom AS - - 22,0 0,0 22,0Kilen Handelspark AS 0,0 (6,8) (2,1) (8,9)Rosenlund Bydelsenter AS fra15,9 17,3 (17,3) -TS til DSNamsos Handelspark III AS 0,0 (0,0) (0,0) (0,1)Trio Eiendomsinvest AS 0,4 (0,8) 2,9 2,2Granstunet Eiendom AS 26,6 28,1 2,2 (0,5) (1,0) 28,8 18,9Stølstunet AS 18,3 - - -Coop Trading AS 39,2 37,9 1,0 (0,1) 38,4 (12,8)NAF Trading AS - 2,4 0,2 (1,7) 0,9TakeCargo AS 4,8 - 0,3 0,7Joh. Weydahl AS 5,0 0,8 - (1,0) 0,0Hvebergsmoen Potetpakkeri AS 7,1 0,3 7,4Total affiliated companies 587 623 104 (259) 28 (0) (1) (2) 494 (16)35 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201136

Annual accounts and notes16. FIXED ASSETSPARENT COMPANYTHE GROUPProperties,buildings andother real estateOperationschattels, furnishings,means oftransportation Total Amounts in millions NOKProperties, buildings andother real estateMachinesandinstallationsOperations chattels, furnishings,means of transportationBuildingsunderconstructionTotal21 20 41 Acquisition cost as at January 1 st 6 449 603 847 430 8 330- - - Changes in the composition of the Group 223 (20) 2031 1 Influx 424 37 23 136 620- Exit (24) (68) (10) (1) (103)- Reclassification 40 (15) 19 (44) -21 21 42 Acquisition cost as at December 31 st 7 112 557 879 501 9 049(7) (19) (26) Accumulated depreciations as at December 31 st (1 069) (427) (614) (5) (2 115)- - - Accumulated down-writes as at December 31 st (131) (5) (37) (52) (226)14 2 16 Book value as at December 31 st 5 912 124 228 444 6 708(0) (1) (1) This year’s depreciations on fixed assets (138) (33) (86) (258)This year’s depreciations on intangible assets (note 14) - - - (58)(0) (1) (1) Total this year’s depreciations (138) (33) (86) - (316)This year’s down-writes/reversing of down-writes 10 - - - 10- - - Total this year’s down-writes and reversing of down-writes 10 - - - 10The company employs linear depreciations for all fixed assets.The economic service life for fixed assets is calculated at:15–50 years Buildings 15–50 yearsMachines and installations3–10 years3–10 years Chattels, furniture and equipment 3–10 yearsLease commitments regarding current assets not brought to the balance:1 1 Annual rent related to current assets not brought to the balance 66 20 30 11637 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201138

Annual accounts and notes17. OTHER LONG-TERM RECEIVEABLESPARENT COMPANYTHE GROUP2010 2011 Amount in million NOK 2011 2010RESPONSIBLE LOANS TO78 82 Affiliated companies, interest bearing 118 7835 35 Co-operative societies, interest bearing 35 35- - Other companies, interest bearing -113 117 Total responsible loans 153 113LONG-TERM RECEIVABLES ON1 117 626 Subsidiaries, interest bearing - -Affiliated companies, interest bearing 44 9615 12 Co-operative societies, interest bearing 12 15Other companies/organizations, interest bearing 14 11Other companies/organizations, interest free 15- - Pension means 8 -1 132 638 Total 78 137(15) - Share of provisions for bad debts - (15)1 117 638 Total long-term receivables 78 1221 230 755 Other long-term receivables 231 23518. FINANCIAL INVESTMENTSBondsPARENT COMPANYDebtorCreditinstitutionsInterestFacevalue/AcquisitioncostMarketvaluebroughtto thebalance asat December31 st2011 InterestFacevalue/AcquisitioncostMarket valuebrought tothe balanceas atDecember 31 st3,8 % 10 10 3,3 % 10 10Bank/forsikring 4,6 % 269 266 3,7 % 172 172Industri 4,7 % 41 39 5,2 % 47 43Eiendom 5,5 % 11 10 4,5 % 20 19Bank deposits andcertificates 1 155 1 155 207 207Mutual funds 31 27 31 31Current shares 170 143 160 147Total 1 687 1 650 647 6282010Bonds19. BANK DEPOSITS, CASHPARENT COMPANYTHE GROUP2010 2011 Amount in million NOK 2011 201033 58 Tied up means 62 371 191 341 Other bank deposits 556 1 6291 224 399 Total bank deposits, cash and similar 618 1 666Coop Norge SA, Coop Norge Handel, the Group and Cop Norge Eiendom AS had unexploited drawing rights on 250, 504 and20 million NOK respectively as at December 31 st 2011.Coop Norge Handel AS has put up a guarantee of 61 million NOK on towards the Oslo Kemnerkontor for the employees’ tax deductions.20. GOODSTHE GROUPPARENT COMPANYDebtorInterestFacevalue/AcquisitioncostMarket valuebrought tothe balanceas atDecember 31 st2011 InterestFacevalue/AcquisitioncostTHE GROUPMarket valuebrought to thebalance as atDecember 31 st2010Creditinstitutions 3,8 % 10 10 3,3 % 10 10Bank/insurancecompanies 4,6 % 269 266 3,7 % 172 172Industry 4,7 % 41 39 5,2 % 47 43Property 5,5 % 11 10 4,5 % 20 19Bank deposits and certificates 1 155 1 155 207 207Mutual funds 31 27 31 31Current shares 170 143 160 147Total 1 687 1 650 647 6282010 2011 Amounts in millions NOK 2011 2010- - Purchased raw materials 80 63- - Finished goods 27 26- - Purchased commercial goods 1 004 914- - Total goods 1 111 1 00239 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201140

Annual accounts and notes21. EQUITY IN THE PARENT COMPANYThe share capital in Coop Norge SA consists of the committed deposits from the member co-operative societies. The co-operative societies’liability on towards Coop Norge SA’s commitments is limited to the co-operative share capitalThe company may distribute purchase return to the members within the framework of defensible equity and the byelaws’ provisions limited up tothe annual profit after deduction of mandatory funds allocations.Within the same framework, the company may distribute Group contributions to the member co-operative societies and enterprises in CoopNorge SA, the Group.For 2011, Coop Norge SA has received 39 million NOK in net Group contribution from Coop Norge Handel AS.The gross Group contribution was 55 million NOK.THE LARGEST OWNERS OF COOP NORGE SAAmounts in millions NOK Share of the committed Capital in percentage Number of membersCoop Øst SA 114 16,4 % 235 158TRONDOS SA 56 8,1 % 116 754Coop Orkla Møre SA 46 6,6 % 73 986Coop Nord SA 44 6,3 % 78 412Coop Innlandet SA 34 4,9 % 55 904Coop Hordaland SA 34 4,9 % 88 090Coop Vest SA 33 4,8 % 44 622Coop Økonom SA 29 4,2 % 53 873Coop Vestfold and Telemark SA 28 4,0 % 71 325Forbrukersamvirket Sør SA 24 3,5 % 65 065Coop Nordland SA 21 3,1 % 41 048Coop Haugaland SA 20 2,9 % 47 392Coop Helgeland SA 17 2,5 % 23 012Coop Finnmark SA 17 2,4 % 21 834Coop Vestviken SA 16 2,4 % 29 280Coop Høyland and Jæren SA 16 2,3 % 36 027Coop Østafjells SA 15 2,1 % 23 557Coop Inn-Trøndelag SA 15 2,1 % 19 670Coop Steinkjer SA 14 2,0 % 19 573Coop Oppdal SA 12 1,8 % 19 30920 largest owners 606 87,3 % 1 163 891All of Coop Norge’s 117 owners as at December 31 st 2011 695 100 % 1 306 34322. LONG-TERM LIABILITIES OWED TO CREDIT INSTITUTIONSTHE GROUPAmounts in millions NOK 2011 2010AverageAverageAmountinterestrateTerm later than5 years AmountinterestrateTerm later than 5yearsDNB 2 543 4,1 % 888 1 950 3,6 % 963Fokus Bank 25 5,0 % 25 3,5 % -Handelsbanken 52 4,0 % - 3,5 % 6Nordea Bank 414 4,1 % 248 431 3,5 % 216SpareBank 1 191 5,1 % 150 110 3,5 % 77Others 34 0,0 % 25 0,0 % -Total long-term debt as at December 31 st 3 259 1 286 2 541 1 261INTEREST SWAP AGREEMENTSInterest swap agreements secure companies in Coop Norge SA, the Group a fixed interest rate and predictability for parts of their long-termdebts. For the parent company, the requirement is the opposite and one swaps short-term interest rates- The debt portfolio’s interest term profileis created through the choice an interest structure related to the companies’ loans and by employing interest swap agreements.In the table below, the market value of these agreements is shown if they were realized as at December 31 st 2011. Because of a lower interestlevel than agreed, the market value is negative. Interest swap agreements that fulfil the requirements of being cash flow hedging instruments arenot brought to the balance.PARENT COMPANYAmounts in millions NOKSecured debtamount Term Book valueMarket value as atDecember 31 st 2011Interest swap agreement 1 250 3.9.2003–30.9.2013 - (11)Total 250 - (11)KONSERNAmounts in millions NOKSecured debtamount Term Book valueMarket value as atDecember 31 st 2011Interest swap agreement 1 250 30.09.2003–30.09.2013 - (11)Interest swap agreement 2 330 23.09.2011–23.12.2013 - (8)Interest swap agreement 3 400 19.01.2009–21.01.2019 - (1)Interest swap agreement 4 150 23.12.2011–27.12.2019 - (5)Interest swap agreement 5 200 23.12.2011–23.12.2013 - (3)Interest swap agreement 6 30 11.10.2005–15.10.2012 - -Interest swap agreement 7 32 20.12.2005–30.11.2012 - -Interest swap agreement 8 30 15.10.2010–18.07.2013 - (2)Interest swap agreement 9 96 03.11.2015–15.10.2016 - (1)Total 1 518 - (31)41 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201142

Annual accounts and notes23. ANNEN KORTSIKTIG GJELDPARENT COMPANYTHE GROUP25. CLOSE-STANDING PARTIESPARENT COMPANY2010 2011 Amounts in millions NOK 2011 2010- Overdraft facilities 114 4 Public charges 180 1536 3 Deferred entry of income 3 664 30 Accrued discounts and market support to co-operative societies 30 64114 136 Accrued costs related to the operation 616 56317 19 Accrued interests of the committed capital 19 1737 8 Other short-term debt 62 20243 200 Total 910 835Coop Norge SA is the co-operative societies’ common organization and was owned by 117 co-operatives as at December 31 st 2011.Transaction with the co-operative societies are thus to be considered as close-standing parties and are presented specifically below.Amounts in millions NOK and the transactions are stated aggregated 2011 2010PROFIT/LOSS ACCOUNTS ITEMSSales revenues (note 5) – co-operative societies 27 480 26 717Rent (note 5) – co-operative societies 80 152Interest income co-operative societies (note 12) 7 3Interest costs co-operative societies (note 12) 50 45Total 27 617 26 91724. GROUP RECEIVABLES AND LIABILITIESPARENT COMPANYGroup differences are included in the following amounts:receivablesMillion NOK 2011 2010Long-term receivables (note 17) 626 1 117Accounts receivables (note 10) 96 91Other short-term receivables 20 19Group contribution 55 6LIABILITIESOther short-term liabilities 20 27Trade creditors 2 412 2 276Group contribution - 6BALANCE ITEMSLoans/responsible loans co-operative societies (note 17) 47 50Accounts receivables co-operative societies 2 069 1 982Advance payment on goods to co-operative societies 730 934Loans/deposits from co-operative societies 1 307 1 210Total balance sheet 4 153 4 176Material transactions with close-standing parties:• Coop Norge SA has at December 31 st 2011 extended a loan of 35 million NOK to Coop Øst SA. This is unchanged from 2007.• Coop Norge SA has at December 31 st 2011 extended a drawing right to Coop Øst SA of 12 million NOK, which as at December 31 st 2011was fully exploited.43 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201144

Annual accounts and notes26. ASSETS PLEDGED AS SECURITY AND GUARANTEESPARENT COMPANYTHE GROUP2010 2011 Amounts in millions NOK 2011 2010ASSETS PLEDGED AS SECURITY- - Secured long-term liabilities 2 426 2 132- - Secured overdraft facilities - 323- - Total assets pledged as security 2 426 2 455- - Property/chattels 2 548 2 006- - Stock 2 2- - Accounts receivable 23 137- - Total book value on secured assets 2 573 2 145GARANTIER57 77 Guarantee purchase return and rent 125 57100 100 Guarantee in connection with the power co-operation 100 100157 177 Commitments in connection with co-operative societies 225 15746 35 Guarantee for rent and tax deductions 108 46Guarantees in connection with loans, rent and projects 14 111- 115 Suretyship for loans 116Amount guaranteed for loans in subsidiaries 488 459Surety in real estate for employees - 10046 150 Commitments in connection with subsidiaries 726 717Guarantee for tax deductions and conditions related to the operations - 58- - Guarantee commitments rent, loan in appurtenant projects 31 129- - Suretyship for loans/interests to affiliated companies 325 30Surety in real estate relating to affiliated companies - 250- - Commitments in connection with affiliated companies and other 356 46727. EVENTS AFTER THE BALANCE DAY AND COMMITMENTS NOT BROUGHT TO THE BALANCENo events have occurred after the balance day December 31 st 2011 that bear any significance on the assessment of the company’s and theGroup’s position and the result of the economic activity.The company/Group is not involved in disputes and court proceedings of importance that may bring about negative influences on the company’s/Group’s results.SAMVIRKELAGENES GARANTIFOND ALSamvirkelagenes Garantifond AL is owned by Coop Norge Distrikt and Coop Norge SA. Coop Norge Distrikt are entities in Coop Norge SA andthus Coop Norge SA is 100% owner of the fund. However, Coop Norge SA has not decisive influence in the Board of the Garantifondet.Figures from Samvirkelagenes Garantifond’s accountsSAMVIRKELAGENES GARANTIFOND ALPROFIT AND LOSS ACCOUNTSAmounts in millions NOK 2011 2010Membership fees from the co-operative societiesInterest income from bonds 15,4 15,1Interest income Coop Norge SA, the deposits department 16,5 16,3Capital gain bonds 0,5 0,5Capital loss bonds 2,9 2,8Total operating income -0,9 -0,2Operating costs 34,4 34,5Wages and other personnel costsOther operating costs 0,8Loss on guarantees 0,0 0,5Total operating costs 2,3 37,7Operating result 3,1 38,2This year’s profit/loss 31,3 -3,7Årets over/-underskudd 31,3 -3,7203 327 Total 1 307 1 341BALANCE SHEETFixed assetsÅsane Utvikling AS, the Group: Coop Norge Eiendom AS (Property) has committed to prorate to pay the Interests for å loan of a total of 100million NOK. Coop Norge Eiendom AS (Property) is 25% owner in the Group.Norsk Bransjesenter AS has signed an agreement related to guaranteed residual value for a property in Fredericia on towards SG Finans Denmark.The guarantee runs to 2017 and the guaranteed residual value is estimated to 35 million NOK.Coop Øst SA: Guarantee for external trade creditors. Applies to external creditors and costs related to electricity, telephone, wages, holiday pay,rents, insurances and similar running ordinary operational costs. As at December 31 st 2011, the amount is 71.8 million NOK. The guarantee hasbeen pledged by Coop Norge SA and is a part of the agreement relating to co-operation between Coop Norge SA and Coop Øst SA.Coop Norge Handel AS: Guarantee pledged in connection with the construction of a new warehouse at Bergmoen. The guarantee amounts to114.6 million NOK and is pledged by Coop Norge SA.Bonds 458,9 437,4Current assetsCoop Norge SA, the deposits department (Liquid means) 5,2 1,9Earned, not paid in interests 4,2 4,7Total current assets 9,4 6,6Total assets 468,4 444,0Liabilities and equityEquity 468,1 436,8LiabilitiesAccrued, not paid loss - 6,6Other short-term liabilities 0,3 0,7Total liabilities and equity 468,4 444,045 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201146

Annual accounts and notesTo the annual meeting in Coop Norge SA Conclusion In our opinion, the annual accounts have been prepared in accordance with the provisions and regulations and provide a fair presentation of the Company and the Group Coop Norge SA’s financial position as per December 31 st 2011 and of its results and cash flows for the accounting year that was concluded as per this date in accordance with the provisions of the Accounting Act and the generally accepted accounting principles in Norway. AUDITOR’ REPORT Statement about the annual accounts We have audited the annual accounts for Coop Norge SA, which consists of the Company accounts, showing a profit of 178 million NOK, and the Group accounts, showing a profit of 176 million NOK. The Company accounts and the Group accounts consist of balance sheet as per December 31 st 2011, profit/loss accounts and cash flow statement for the annual accounts ending on this date, and a description of the principal accounting principles and other information in the notes. The Board of Directors’ responsibility for the annual accounts The Board of Directors and the CEO are responsible for preparing the annual accounts and for ensuring that it presents a fair image in accordance with the provisions of the Accounting Act and the generally accepted accounting principles in Norway, and for such internal control that the Board finds necessary to facilitate the preparation of annual accounts that do not contain material misrepresentation, neither as a consequence of irregularities or errors. The auditor’s responsibility and duty Our responsibility is to state our opinion about these annual accounts on the background of our audit. We have conducted our audit in accordance with applicable law, regulations and the generally accepted auditing standards in Norway, hereunder International Standards on Auditing. The auditing standards require us to live up to ethical requirements and that we plan and conduct the audit in order to obtain adequate security to determine that the annual accounts are free from material misrepresentation. Statement of other circumstances Conclusion about the annual report Based on our audit of the annual accounts as described above, we hold the opinion that the information provided in the annual report about the annual accounts, the assumption as to continued operation and the proposal for the application of the profit are consistent with the annual accounts and in accordance with the applicable laws and regulations. Conclusion about registration and documentation Based on our audit of the annual accounts as described above and the control procedures we have deemed necessary in accordance with the international standards for attestation engagements (ISAE) 3000 “Attestasjonsoppdrag som ikke er revisjon eller forenklet revisorkontroll av historisk finansiell informasjon” (Attestation engagements that are not audits or simplified auditing checks of historical financial information), we hold the opinion that the management has fulfilled its duty to safeguard proper and clear registration and documentation of the Company’s accounting information in accordance with applicable law and the generally accepted accounting practice in Norway. Oslo, March 27 th 2012 BDO AS Bente Slettan Partner-­‐ Certified public accountant An audit entails the performance of auditing procedures to collect auditing proof of the amounts and the information contained in the annual accounts. The procedures that are chosen depend on the assessment of the auditor, hereunder assessment of the risk of safeguarding that the annual accounts do not contain material misinformation, whether such misinformation is caused by irregularities or errors. In such risk assessment, the auditor considers the internal control that is relevant for the Company’s preparation of annual accounts that present fairly the financial status of the Company. The objective is to design auditing procedures that are appropriate according to the circumstances, but not to express any views as to the efficiency of the Company’s internal control. An audit also includes an assessment of whether the accounting principles that have been employed are appropriate and whether the accounting estimates prepared by the management are fair, as well as an assessment of the total presentation of the annual accounts. In our opinion, the collected auditing proof is adequate and appropriate as a basis for our conclusion. 47 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201148

Annual accounts and notesTHE AUDIT COMMITTEE’S REPORT FOR 2011COOP IN NORGETHE CO-OPERATIVE SOCIETIES’ RESULTS 2011The Audit Committee has carried out its work in accordance with section19 of the Byelaws.The Audit Committee has been provided access to the documents andthe information that have been required.The Audit Committee has reviewed all the protocols/minutes andnecessary documents in Coop Norge, the Group for 2011. We have notuncovered any indications to prove that any dispositions in breach of theapplicable laws and byelaws.The accounts and the annual report for 2011 have been reviewed withthe accountant and the Audit Committee endorses the AccountantsReport.The Audit Committee therefore holds the opinion that the operations inCoop Norge SA is in accordance with the general laws, byelaws anddecisions of the annual meeting.At the close of 2011, there are 117 co-operative societies that aremembers in Coop.The co-operative societies have had an increase in turnover of 2.8 percentin 2011. The total turnover for 2011 was 37,597 million NOK.The operating profit/loss for the co-operative societies in total was reducedfrom 500 to 487 million NOK. Measured in percentage of the turnover, theoperating result is down by 0.1 percent points compared to last year.Net finance is 38 million NOK in 2011. This is a reduction from137 million NOK in 2010.The result before tax is 526 million NOK, compared to 637 million NOKlast year. Measured in percentage of the turnover, the result is down by0.3 percent points compared to last year.During the course of 2011, Coop has received 49.090 new membersand in total, there are 1,306,343 members in Coop at the close of 2011.In total, the members have earned 656 million NOK in purchase return/purchase bonus in Coop’s shops and member discounts from cooperatingpartners, compared to 642 million NOK last year.Oslo, April 12 th 2012PROFIT/LOSS ACCOUNTSTHE CO-OPERATIVE SOCIETIES IN TOTALCOOP IN TOTAL2011 2010 2009 * Amounts in millions NOK 2011 2010 2009 *37 597 36 562 36 007 SALES REVENUES 39 082 37 910 37 237John Egil HoldenChairpersonKnut EideDeputy ChairpersonInger S. ØvergaardMember7 345 7 149 7 019 Gross profit 9 741 9 412 9 192956 1023 900 Other income 2022 2125 19748 301 8 172 7 919 Net operating income 11 763 11 537 11 1674 472 4 369 4 334 Personnel costs 5 931 5 788 5 7333 347 3 378 3 202 Other operating costs 4 919 4 981 4 8707 819 7 747 7 536 Operating costs 10 849 10 769 10 6035 75 100 Other items 5 75 100487 500 483 OPERATING PROFIT/LOSS 918 843 66481 67 96 Investment affiliated companies 82 63 94(43) 70 70 Financial items (201) 6 53526 637 650 RESULT BEFORE TAX 799 912 881*Reworked with reference to purchase return49 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201150

COMPANY INFORMATION AND ADDRESSESCoop Norge SABusiness registry number:936 560 288 MVAHead office:Kirkegata 4, 0153 OsloPostal address:P. o. Box 1173 Sentrum,0107 OsloTelephone: 22 89 95 95Telefax: 22 41 14 42THE GROUP MANAGEMENTCEOOla H. StrandTelephone: 22 89 92 90Economy, Finance andCo-operative societyDevelopmentDirector Ove B. HaupbergTelephone: 22 89 98 50OrganizationDirector Odd Rune AndersenTelephone: 22 89 97 15Information, socialresponsibility and businesspolicyDirector Bjørn V. KløvstadTelephone: 22 89 99 38HR and competenceDirector Vuokko HasselTelephone: 22 89 99 34Coop Norge Handel ASCEOSvein T. FanebustTelephone: 22 89 99 34Coop Norge Eiendom AS(Property)CEORoy K. MeyerTelephone: 970 21 441SecretariatAdministration secretarySilja BergeTelephone: 22 89 99 27Legal departmentLawyer Kjetil BullTelephone: 22 89 99 04Group strategy anddevelopmentDirector Nina M. SkramstadTelephone: 22 89 99 93SUBSIDIARIESCoop Norge Handel ASP. O. Box 21 Haugenstua,0915 OsloOffice address:Østre Aker vei 264, 0977Oslo, entrance from HaavardMartinsens vei.Telephone: 22 89 95 95Telefax: 22 89 97 45Chairperson of the Board:Ola H. StrandDeputy Chairperson: Tore KlovningDirector: Anne Berg BehringDirector: Torbjørn SkeiDirector: Svein RøtnesDirector: Ada KristoffersenDirector: Terje LøkkeDirector: Ove B. HaupbergCEOSvein T. FanebustTelephone: 22 89 95 95Administration secretaryMarit WibeTelephone: 22 89 76 26Marketing ManagerGeir Jostein Dyngeseth,Telephone: 22 89 99 52Director Purchase and productrangeTor Helge GundersenTelephone: 22 89 94 56Director logisticsHalvor NassvikTelephone: 22 89 76 77Manager chain operationsTore TjomslandTelephone: 22 89 98 32Director financeMerete Egelund ValderhaugTelephone: 22 89 76 06IT ManagerPer Haakon VestbyTelephone: 22 89 97 25DirectorTrond SolliTelephone: 22 89 99 59Director, region WestEldar FrøystadTelephone: 51 88 76 28Director, region EastBent O. AamotsmoTelephone: 22 89 94 21Director, region Middle and NorthRoger NyengTelephone: 72 90 15 80Director specialist tradeGeir Inge StokkeTelephone: 971 71 910CEO Coop Norge IndustriTorgeir SveineTelephone: 22 89 93 25Coop Norge Eiendom AS(Property)P. O. Box 128, 1501 MossOffice address: Henrik Gernersgate14 ,1530 MossTelephone: 69 20 42 60Telefax: 69 20 42 61Chairperson of the Board:Ola H. StrandDeputy Chairperson:Kjell Olav PettersenDirector: Ove B. HaupbergDirector: Lars Weyer-LarsenDirector: Svein T. FanebustDirector: Morten Erik StulenCEORoy K. MeyerTelephone: 970 21 441Finance directorEspen LieTelephone: 952 06 747Property directorSvein W. NilsenTelephone: 917 99 711Development directorDag Børge HustadTelephone: 995 90 055Smart Club ASP. O. Box 200 Bryn, 0611 OsloOffice address: Smalvollveien 650667 OsloTelephone: 04 100Telefax: 22 90 88 99Chairperson of the Board:Ola H. StrandDeputy Chairperson:Njål StokkenesDirector: Øystein KahrsDirector: Olav RønningenDirector: Ove B. HaupbergDirector: Chris CarlssonDirector: Lars FossumDirector: Iren GamreActing CEORoger Nyeng,Telephone: 905 98 613Deputy CEOand concept manager SpecialisttradeJan Arve KaldheimTelephone: 410 04 818CFO Tommy LieTelephone: 402 87 756Concept manager GroceriesKnut Arne HansenTelephone: 922 29 688Project Manager ITHarry KnappskogTelephone: 410 40 873Operations Manager CoopprofilesRune BjugnTelephone: 982 83 054MarkedssjefPer Olav AndersenTelephone: 410 40 106wholly ownedcompanies underCoop Norge Handel ASCoop Norge StavangerEiendom ASP. O. Box 21 Haugenstua,0915 OsloOffice address: Østre Aker vei264, entrance fromHaavard Martinsens vei.Telephone: 22 89 95 95Telefax: 22 89 97 45Coop Norge GrorudEiendom ASP. O. Box 21 Haugenstua,0915 OsloOffice address:Østre Aker vei 264,entrance from HaavardMartinsens vei.Telephone: 22 89 95 95Telefax: 22 89 97 45Coop Norge HamarEiendom ASP. O. Box 21 Haugenstua,0915 OsloOffice address:Østre Aker vei 264,entrance fromHaavard Martinsens vei.Telephone: 22 89 95 95Telefax: 22 89 97 45Coop Norge BergmoenEiendom ASP. O. Box 21 Haugenstua,0915 OsloOffice address:Østre Aker vei 264,entrance fromHaavard Martinsens vei.Telephone: 22 89 95 95Telefax: 22 89 97 45Coop Norge Industri ASP. O. Box 21 Haugenstua,0915 OsloOffice address:Østre Aker vei 264,entrance fromHaavard Martinsens vei.Telephone: 22 89 95 95Telefax: 22 89 97 45Affiliated companiesthrough Coop NorgeHandel ASCoop Trading A/S, Albertslund,Denmark (25 %)Coop Norden Bygg Inköp AB,Solna, Sweden (50 %)Dagligvarehandelens MiljøforumAS, Oslo (25 %)Takecargo AS, Lysaker(32,02 %)Joh. Weydahl AS, Oslo (45 %)Affiliated companiesunder Coop NorgeEiendom ASAmCo Eiendom AS (50%)Øravegen 4, 6650 SurnadalTelephone: 71 65 75 42Telefax: 71 65 75 01Annual meeting COOPNORGE2011/2012ØstlandetCoop ØstAase LømoLiv ValstrandTorill JohnsenTom AndersenAnne Marie Roer LangakerPer Magnus MæhleKjell LøkkeChristina M. B. RingCoop Vestfold and TelemarkBjørn NorliAnne Berg BehringTinny BjerkøenCoop InnlandetRandi TorpEgil NysætherCoop VestvikenNjål StokkenesInge Hilde KitterødCoop ØstafjellsTove Raastad BreienCoop TesamErik SchjærinSør-VestForbrukersamvirket SørJohn ThunesBjørn E. SelandAnita I. KallhovdCoop ØkonomKari W. NordvikOle HetlandCoop HaugalandTore KlovningInger Elise N. KolstøCoop HordalandGeir Atle DallandGunvor DjønneØystein KahrsNorunn A. RykkenCoop VestTrudi VågeneGeir Arvid EspeMadla HandelslagAnders StorakerCoop FinnøyErling EggebøCoop GjesdalHilde HamarslandCoop Høyland and JærenSigrunn U. StangelandMidt-NorgeTrondosTorbjørn SkeiEldar HernesBørge TingstadLiv UlstadSiri GerhardsenCoop Orkla MøreBjørn KrokdalGrete Marie EikebuArild SørlienCoop OppdalMorten Erik StulenCoop Inn-TrøndelagUnni StorstadCoop SteinkjerAslak TillerCoop RørosMette OlsenCoop KolvereidGudmund HaugNordCoop NordSølvi JensenKjell Olav PettersenOdd E. JørgensenCoop NordlandLars Arve JakobsenAnne RørvikCoop HelgelandSigmunn SandheiCoop Sør-HelgelandJan Olav OsenCoop FinnmarkJan H. PettersenEmployees at Coop NorgekonsernDag SchøyenBali BjerkeThor Eivind RognmoKai Tore Hoel51 COOP ANNUAL REPORT 2011COOP ANNUAL REPORT 201152

Coop Norge SA Information and public relations | P O Box 1173 Sentrum 0171 Oslo, NorwayVisiting address Kirkegata 4, 0153 Oslo, Norway | Telephone 0047 22 89 95 95 | Telefax 0047 22 41 14 42 | E-mail info@coop.noDesign and illustration Fete typer | Production RK Grafisk as Printed on environmentally friendly paperNumber printed 1000 eks. | Original photo: CoopThe Annual Report is also available in its entirety on www.coop.noApril 2012