UK and the Netherland s: consumer durables and food

atradiusmarketmonitor

market monitor

UK and the Netherlands: consumer durables and food

Ireland, Canada, India, Japan: consumer durables July 2011


Death of the High Street?

irst it was the out-of-town retail parks, with their ease of parking, big brand stores and discount prices. Now

the biggest threat to High Street retailers is online shopping – at least for some of the countries featured in this

month’s Market Monitor.

UK consumer durables retailers seem to be the most at risk within Western Europe, with growth in ‘e-commerce’ of

18% over the past year. But it isn’t just UK retailers that need to worry. In the Dutch electronics retail sector 20% of

all sales are already made online, with expectations that this could reach 50% in the next five years.

The reasons are pretty much the same as the earlier threat from out of town malls: consumer convenience and lower

prices. And while the economic situation across much of Europe remains uncertain, consumers are particularly cost

conscious.

That’s if they’re buying at all. In Ireland the toxic mix of government austerity measures and high unemployment is

discouraging many consumers from spending on anything but essentials. So clothing, electronics and furniture are all

feeling the pinch. And, just as in other markets, consumers are ‘logging-on’ to find bargains, with online sales up a

massive 39% year-on-year in 2010. Irish retailers’ anguish is compounded by the ‘upward only’ rental agreements

that they’re tied into.

Retailers are in a difficult situation. To survive, many will have to create an online presence for themselves, without

detracting from their own high street sales. However, it’s an issue that doesn’t seem to be worrying retailers in India,

where there is healthy growth across all segments, thanks in large part to rising household incomes, the easy

availability of financing and the opportunities for increased sales in rural areas.

Market Monitor reviews the state and prospects of the consumer durables retail sector in the UK, the Netherlands,

Ireland, Canada, India and Japan and the British and Dutch food sectors.

On the following pages, we indicate the general outlook for each sector featured using these ‘weather’

symbols:

F

Excellent Good Fair Gloomy Bleak


Outlook

UK: consumer durables

After a decrease in 2010, insolvencies rising again

It comes as no surprise that, given the recent economic malaise in the UK, the consumer durables sector has

experienced difficult trading conditions. The recovery remains sluggish and private consumption subdued - forecast to

grow by just 0.5% year-on-year in 2011 - due to budget cuts. Additionally the high level of inflation (consumer price

inflation standing at 4.5% in May) and low wage growth have produced the first year-on-year fall in disposable

income in 30 years. This is clearly having a dire effect on the High Street as consumers remain extremely cautious.

There were a number of high profile retail insolvencies during the recession. Default rates however significantly

declined in 2010 (see chart below).

Firstly, the sector profited from the fact that the British economy emerged from recession in 2010, although growth

levels remained low. Secondly, after more than 13,000 stores went out of business between 2008 and 2010, the

consequent reduction in competition across all retail sectors enabled many of the remaining stores to continue to trade

profitably throughout 2010, despite overall weak consumer demand. This shrinkage in the retail market is reflected in

sales floor developments over the past five years. While in the years before the recession there was substantial

growth in floor space, with the construction of new shopping centres at its highest level for many years, the recession

and resulting increase in insolvencies led to a sharp reduction in retail floor space in use in 2009 and 2010 (see chart

overleaf).

Retail Administrations - 2007-2010Source: Centre for Retail Research

0

10

20

30

40

50

60

2007 (12 months) 2008 (12 months) 2009 (12 months) 2010 (12 months)

Com

panies

Failin

g

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Stor

es A

ffected

Companies failingStores Affected



Source: Deloitte Analysis, Verdict Research 2010

So far in 2011 the still fragile nature of the recovery continues to negatively affect the fortunes of the British

consumer durables retail sector. This, combined with the fact that we have not had any great capacity fall-out across

subsectors, has meant that the number of insolvencies across consumer durables is again beginning to increase. There

have been close to twenty significant consumer durables failures already this year, suggesting that this year’s total

will exceed that of 2010.

On average, payments in the consumer durables retail industry take around 60 days. We have received an increased

number of notifications of non-payment from this sector throughout Q4 of 2010 and Q1 of 2011. That said, Q1 of the

year is always a difficult time for buyers in this sector and so we would expect to see an increase at that time.

Nevertheless, quarter-on-quarter there was an increase of more than 50%: clear evidence that trading is currently

difficult, with the largest rise in payment delays seen in the furniture retail subsector. Furniture in general has seen a

higher than average number of insolvencies, with extreme weather - snow before Christmas and a heat wave in March

– leading to a sharp decrease in footfall (the number of people visiting a shop or a chain of shops in a period of time).

Furniture retailers can absorb some of this, due to the variable structure of much of their cost base, but trading

conditions are increasingly difficult. We have already seen some insolvencies at the bottom end of the market and

they may become more widespread.

However, there are also many resilient companies in the sector The typical profile of a consumer durables retail enterprise failing in 2011 is that of a business that has been

performing poorly for some time and struggling against the tide of falling revenue and tightening margins. It will have

battled through the recession, but the desperately needed surge in the economy and growth in demand have not

materialised, and so they will eventually fail. Subsectors of particular concern at present are those offering ’big-

ticket‘ purchases such as furniture and domestic appliances. With continuing fragile confidence in the job market and



limited lending availability, both the willingness and wherewithal to go out and buy a £1,000 sofa or television have

receded. Businesses in the furniture and domestic appliance subsectors have a relatively high fixed cost base and

therefore lower revenues can very quickly cause difficulties. The increase in the number of insolvencies in these

subsectors is therefore not surprising.

On a positive note, many businesses in the sector are now placing greater emphasis on their working capital

management and in particular keeping a tighter rein on stocks. This has reduced companies’ exposure to short-term

cash crunches which can often be fatal. Nevertheless, the sector has been highly resilient, with fewer insolvencies

than had been forecast. The support offered to retailers by landlords, private equity investors and banks should also

not be underestimated. We therefore expect that, while there may be an increase in insolvencies, the performance of

many companies will be comparable to 2010 and these businesses will be well placed to grow in 2012.

Online shopping is becoming the biggest long-term threat to retail The biggest threat to traditional store-based retailers of consumer durables continues to be the increasing popularity

of online shopping. The UK is by far the most mature market for online retailing in Western Europe: according to the

statistics office ONS, online retailing now represents 10% of British retail and has grown by 18% over the course of

the last year. The most notable changes have been the rise in the range of products that people are willing to buy

online and the value of purchases that people are prepared to make, with significant growth in online sales of clothing

and big-ticket electric appliances.

The difficulty for high street retailers is that purely online businesses will have much lower overheads and can

therefore be extremely competitive on price. While many of the major high street retailers have their own

transactional websites, they do not want to cannibalise their own in-store revenues. Established retailers will

therefore look to drive the strength of their brand and engender loyalty through reward schemes. However, with

customers becoming increasingly price conscious, the success of these schemes is in some doubt. Market share lost to

online competition could potentially be a cause of real difficulty for retailers, as is already happening in the case of

consumer electronics: it is in this particular subsector that we expect online competition to have its greatest impact in

the foreseeable future.

The challenge for retailers is to ensure that whatever money is currently spent within their sector is spent in their own

stores. This however will lead to unprecedented levels of competition across all subsectors. With input cost inflation

continuing to be an issue, competing on price is a real challenge and therefore a retailer’s ability to differentiate its

offering in some other way is vital to maintaining market share. Those that can do that are likely to flourish while

those that can’t are in danger of failing.



The consumer durables underwriting team in the UK had foreseen that the first half of 2011 would be a very difficult

trading period for the sector. As with all sectors, cash flow is our key area of analysis but within that we focus

particularly on the business’s stock management and the financial structure of buyers. The consumer durables retail

sector is one where private equity has a higher than average presence, so understanding how the buyer services its

financing obligations is essential to accurately analysing the risk.

British consumer durables sector

Strengths Weaknesses • Base level of demand remains due to

replacement purchasing of big ticket items, e.g. replacing a broken washing machine

• Public still see shopping as leisure activity • Businesses that survived the recession are now

working at maximum efficiency • Significant interest from private equity in

investment in growth or turnaround strategies

• Weak consumer confidence and fragile labour market

• Cost inflation. e.g. cotton prices, drives price increases and reduce consumer demand

• Availability of lending from traditional channels such as banks is still restricted

• Store based retailers have high fixed overheads that suffer a great impact when revenue falls


UK: food

Resilient performance during the crisis

The UK food industry encompasses the complete value chain: from farmers to food manufacturers and both large and

small retailers. With consumer spending valued at £174 billion (�191 billion) in 2009, this sector is key to the British

economy. Food manufacture is also the UK’s single largest manufacturing sector with a turnover of £80 billion (�90

billion), contributing £23 billion (�26 billion) to GDP and employing 450,000 people: 14% of the total UK

manufacturing workforce.

Industry performance during the last three years has been resilient, despite the tough environment since the onset of

the credit crisis. Manufacturing output has held reasonably firm and rebounded quite quickly from the effects of the

recession. 2010 was a year of two distinct halves for the industry. With the pound recovering modestly against the

euro and energy and food commodity costs easing in the first half of the year, inflationary pressures lowered,

enabling many subsectors to restore reasonable levels of profitability and reinvestment. In the second half of the year,

inflationary pressures returned across the supply chain, resulting from a combination of increased demand from

emerging markets and poor agricultural output from key markets. Official data showed food inflation running at just

over 6% as the year closed: well ahead of the government’s target of 2%.

However, the relative weakness of the pound continued to make UK food and non-alcoholic drink products attractive

to overseas markets. Price was no doubt the biggest factor affecting 2010’s year-on-year export growth of 11.4%,

which translated into sales worth £10.8 billion (�12 billion). Including alcoholic drinks, total food and drink exports

were worth £16.1billion (�18 billion) in 2010: a 12.2% increase on 2009.


UK: food

Industry consolidation continues to gather momentum. In the second quarter of 2011 we have seen the acquisition of

Northern Foods by Boparan Holdings Ltd. And, before this, Constellation Brands partially withdrew from the UK and

Australia, selling their investments to Champ Private Equity.

Dairy

Increased global dairy output and falling demand from countries such as China and India caused a fall in prices during

2009. In response to this, the European Commission started buying stocks of skimmed milk powder and butter to

arrest declining prices, leading to a correction during the course of 2010. With more milk going into cheese production,

butter stocks are low and the wholesale price is up 25% year-on-year.

Dairy was the best performing export sector in 2010 with sales of £977 million (�1.1 billon), representing growth of

24.6% on the back of strong demand for butter and cheese from major EU countries and developed non-EU countries.

Moving into 2011, production costs have increased across the sector following some of the driest spring weather on

record, together with rising fuel and energy prices. Following a long stalemate in the supermarket milk price war,

Tesco has taken the initiative: raising the price of 4 pints by 19%. We expect a similar development among the other

key retailers, bringing some relief to processors.

Fruit and vegetables

The UK is a significant importer of produce from many overseas countries and the weakness of the pound, while

enabling moderate export growth in this category, meant that pricing was firm throughout 2010. Other challenges for

the industry included the volcanic ash disruption, causing logistical problems for many importers, and the increasing

emergence of the retailer direct model which has resulted in lost contracts for some importers and packers.

The recent dry spell has impacted cauliflower, pea and broccoli yields, as growers hold off further plantings because of

lack of moisture in the soil, resulting in some price rises. The other major issue in this subsector has been the outbreak

of e.coli in Germany. With Russia introducing an all out ban on all EU fresh vegetables, key producing countries such

as Spain and the Netherlands have been left with surplus stocks looking for a new outlet. Prices of Dutch cucumbers

were down by as much as 30% in the wake of the announcement, which will test the supermarkets commitment to

sourcing British produce.

Food manufacturing

Branded food manufacturers rolled up their sleeves and tightened their belt in 2010 in response to the industry

challenges. They regained market share following a woeful performance in 2009 when retailer-owned labels became

the choice of cash strapped consumers. Innovation, packet design and strong promotion succeeded in putting brands

back at the forefront of consumer choice in 2010 and this momentum has been maintained throughout the early part

of this year. We have met many of the leading food manufacturing groups in the last couple of months and noted a

consistent theme of balance sheet focus and cash management. These groups typically have scale, robust hedging

policies and leverage with the retailers, enabling them to maintain satisfactory profits despite facing cost inflation well

above the current consumer price inflation rate.


UK: food

Benign insolvency outlook remains, despite modest increase in 2011

Insolvency levels in the food sector were comparatively lower than in other major industries throughout most of the

economic downturn. However, while the recession is receding, we expect a modest increase in the number of food

sector insolvencies, a pattern that typically lags behind the wider market. While an increase was expected in 2010 on

the back of a combination of factors including supermarket price wars, extended credit term requests, rising input

costs, restrictive credit and late payments, food manufacturing related insolvencies actually fell by 8%.

Input cost inflation continues to weigh on the food sector despite some positive movements in key commodities. Raw

material costs are showing signs of easing but this is countered by rising fuel, energy and packaging costs. At the same

time, British consumers remain cautious despite the current economic recovery: worried about rising fuel prices and

job uncertainty as austerity measures begin to bite. With household debt remaining high, there is evidence that

consumers are cutting back on their food spending. This is borne out by May’s retail data, showing a 3.5% decline in

food expenditure. This is the biggest monthly decline in food sales since June 2008, following April’s unusually good

result thanks to the royal wedding and late Easter. We expect expenditure to stay broadly flat for the rest of 2011

while value will remain a key focus for the consumer and food groups will continue their high level of promotion.

With the insolvency situation remaining fairly benign, our overall underwriting approach will be positive through

2011 across all food/agriculture subsectors. We will however monitor progress through regular contact with buyers

and review of up to date management accounts where necessary.

British food sector

Strengths Weaknesses • Proven resilience during the current economic

cycle • Stable manufacturing output / demand • Generally good liquidity across the industry • Solid export performance fuelled by weakness

in the pound

• Variable weather creates volatility in supply • Trade deficit continues to grow • Large number of family-owned businesses with

low solvency levels due to profit extraction • Varying levels of producer price inflation


The Dutch economy improves, but consumers remain cautious The rebound of the Dutch economy gained momentum in Q1 of 2011, with 0.9% real GDP growth on the previous

quarter and 3.2% year-on-year, according to the National Statistics Office CBS. However, consumer growth over the

first months of 2011 has been modest (see chart below), and consumer confidence remains subdued, as price increases

for the coming year will outpace increases in disposable income, and consumers are therefore understandably cautious.

Furthermore, government cutbacks and raw material prices are expected to increase considerably, adding to business

and consumer concerns.

Domestic household consumption (volume adjusted for shopping-days)

Consumer durables retail is still in difficulty due to margin pressure caused by higher costs, and declining purchasing

power of consumers. That said, modest growth is projected for 2011 for the non-food retail sector, which is expected

to accelerate in 2012 (see chart below). However, it should be kept in mind that the recovery is fragile and can be

easily derailed by government cutbacks and lower purchasing power.

Dutch retail sales

Year 2011 % change 2011* %change 2012*

Total turnover retail trade NL (� billion)^ 81.1 1.1% 1.8%

Food 36.8 1.6% 2.1%

Non-food 44.3 0.7% 1,6%

Clothing and textile** 9.8 1.0% 2.0%

Shoes 2.0 2.0% 2.0%

Furniture 7.6 0.0% 2.5%

DIY 4.5 2.0% 1.5%

Electronics 5.2 0.0% 1.5%

Personal care *** 4.2 0.5% 1.5%

*estimations by ING/CBS May 2011 ** incl. textile supermarkets and fashion stores

*** drugstores and perfumeries ^excl. excluding cars and gas station

Source: ING/CBS

The Netherlands: consumer durables


Overview by segment: pressure on margins remains Textiles and clothing turnover experienced a precarious 2010 with periods of growth and decline which eventually

resulted in a small growth of 0.2%, thanks mainly to an improved second half of the year. Men’s clothing saw

moderate growth while women’s clothing remained stable. Children’s clothing remained below 2009 figures.

The first quarter of 2011 saw a 1.1% decline in growth for textiles and clothing. Full year 2011 growth for these

segments is expected to be 1% and 2% respectively. However, appreciation of the Yuan and wage increases in China

will lead to higher production costs. In the current economic climate, these price increases cannot all be passed on to

the consumer (and large retail chains have already indicated that they will not be doing so). This will result in an even

stronger focus on finding ways to cope with lower margins.

Turnover is increasingly generated through internet sales. Several retail chains have already opened up ‘web shop’

sites and these will probably gain in importance and popularity as their turnover growth has already shown. Figures

from the Dutch Trade organization for Retail (‘HBD’) and trade organization for internet shops (‘Thuiswinkel.org’)

show that e-commerce turnover in 2010 in clothing and shoes amounted to � 555 million, an increase of almost � 100

million compared to 2009.

As with clothing, footwear saw ‘ups and downs’ in 2010, with an overall decrease in turnover of 2%. Consumers are

buying fewer shoes while the number of customers remains static. However, the first 4 months of 2011 saw a

turnaround with reported growth, and this is forecast to continue with growth of 2% expected in both 2011 and 2012.

The furniture segment fares well when there is positive development in the housing market. Unfortunately, since that

market is currently performing poorly, so is furniture. Sales at the end of 2010 contracted 4.3%, particularly for those

heavily dependent on the housing market, such as flooring. The downward trajectory continued in Q1 of 2011, as

turnover contracted 1.7%. However, there are variations within this segment – some areas showing growth and others

decline. Consumers have become more price sensitive so that the middle and lower segments saw growth while the

higher segments fared less well. For 2011 furniture is expected to record flat growth followed by 2.5% growth in 2012.

Do-it-yourself stores (DIY) are also inextricably linked to the state of the housing market and the economy. Price

competition is severe and margins are low, but consumers’ focus on cost could prove advantageous in this segment.

DIY contracted 4.1% in 2010 but, in contrast to furniture, recovered during the first quarter of 2011: posting growth

of 2.4%. This can be explained by the fact that DIY is expanding its scope and in the process taking market share from

the furniture subsector. Although the housing market is still weak, forecasts for DIY are positive with expected

growth of 2% in 2011.

Electronics is a market characterized by consolidation, innovation, fierce competition (discounters) and high market

transparency. This segment saw market growth of 0.5% in 2010. Nonetheless, price pressure rose again as producers

were constantly competing with the introduction of new products. This has resulted in an oversupply of products and

outlets. A clear example of the latter is the bankruptcy of large retail store chain ‘It’s’.



Although turnover stabilised in Q1 of 2011 (down just 0.4%) pressure on prices continued. This led to higher sales

volumes being offset by lower prices: by the end of March 2011 prices had already dropped 6%.

In 2011 we don’t expect to see the introduction of more new products but rather the continued upgrades to existing

items such as smart phones (IPhone 4), blue-ray and tablets (Ipad 2, Android tablets). 3D televisions have yet to

prove themselves commercially so competition will continue to increase with the spread of imitations. E-commerce

will also play an increasingly important role as consumers look for the best deals. Already 20% of all sales in this

segment come from internet vendors and this is expected to increase further to 40-50% in the next 3-5 years.

Size matters, as shown by Philips, which dramatically scaled back its television division, transferring its television

operations into a 30/70 joint venture with Chinese monitor maker TPV Technology Ltd as part of a long-term joint

venture. Philips simply cannot compete with its Asian rivals because of its limited size in the market. Electronics sales

are expected to remain flat in 2011. Improvement however is projected for 2012 when growth of 1.5% is expected.

The personal care sector seems to have remained fairly stable throughout 2010 and has continued to do so during the

first quarter of 2011. Cosmetics – particularly those targeted at men - and biological/natural products will be among

the growth areas. This segment is characterized by a few large chains and so price competition is fierce and margins

remain under pressure due to increased promotional activity. Competition with supermarkets also remains strong and

for 2011 and 2012 growth of 0.5 and 1.5% respectively is projected.

More insolvencies in the first three months of 2011 In the main, most retail trade consists of small and medium sized enterprises (SME). Solvency is on average 21%,

which is reasonable although low compared to other sectors. Liquidity is mainly down to higher stocks while cash is

locked up, and may therefore weaken as unsold stocks become obsolete. Compared to other industries the sales

process is rapid. That means that debtor and creditor days are generally low, payments are made on cash rather than a

credit basis and the frequency of stock turnaround is high. In view of the economic uncertainties (falling demand,

lower consumer expenditure) liquidity and solvency may deteriorate again in the future.

After three successive quarters in which the number of business failures declined, the number of insolvencies in the

retail sector increased significantly (up 25%) in Q1 of 2011, compared to the previous quarter. However, there was a

slight decrease in the number of insolvencies year-on-year. We expect business failures to rise further, especially in

the electronics retail subsector due to the increasing role of e-commerce, as some chains are unable to adjust to this

change in the pattern of purchasing in time.



In view of the general, albeit modest growth in most sectors, we see options to expand and/or provide cover – but

strictly on a case by case basis, as this growth is fragile. Attention will need to be paid to the continuing pressure on

margins and the liquidity situation in the sector. Due to the well known suppliers that we insure, we often have

access to extra information and buyers are more willing to share preliminary information with us.

While we perceive the personal care subsector as quite resilient, a more cautious approach is needed when it comes to

the segments most affected by the economic downturn – i.e. furniture and DIY - as both depend heavily on the

housing market, and electronics.

Dutch consumer durables sector

Strengths Weaknesses

• In general, the sector is liquid and solvent and companies are able to absorb setbacks

• Strong competition and pressure on margins • Some shops / chains will miss the shift to

e-commerce, which may lead to higher bankruptcies in sector

• The recovery is still fragile, and setbacks cannot be excluded

Belgium: retail



Big increase in exports

The food and agriculture sectors are closely related and characterized by a great variety of subsectors in industry

(dairy, meat processing, animal feed, biscuit/snacks/sweets), wholesale (fruit & vegetables, meat, food service,

flowers and plants) and retail (supermarkets and fresh specialist shops). The Dutch economy grew 1.7% last year,

driven mainly by exports: especially to Germany. With public spending power still somewhat limited, there is only a

slight increase in consumer spending expected in 2011 and 2012.

The value of exports of vegetables grew by more than 17% in 2010 as a result of increasing prices (around 11%) and

higher volume (around 4%). The export value of fruit increased last year as well, by 11%, also driven by price and

volume: 4.5% and 6% respectively. In general, worldwide food prices keep rising and the general expectation is that

they will continue to increase significantly. The price of meat, for instance, is expected to rise by 30% over the next

ten years.

Fruits and vegetables: pressure continues on market position of large agricultural cooperatives

The intensified global competition and increased differences between growers’ technical and financial strengths call

for strategic reorientation of the cooperative organizations. The greatest threat to the mushroom industry, for

example, comes from Poland, with the Polish share of the European mushroom market increasing in the past five

years from 18% to 25% and Dutch growers losing their leading position.

The main greenhouse vegetables produced in the Netherlands are tomatoes, bell peppers and cucumbers. This sector is

export-oriented (85%) as Germany and the UK have limited greenhouse production. During the summer months, the

Netherlands normally have a large share of the European market, while for the full year European market share is less

than 15%.

Mid-term opportunities

Retailers are now focusing on the fruit/vegetables subsector, looking for opportunities to closely cooperate with

growers to provide customers with high quality and organic products, as this presents an opening to gain a strong

position in the market. High quality and organic products are increasingly a key factor in customers’ decision to buy

fruit and vegetables and this trend will probably continue in future years.

Eastern Europe, especially Russia, is still a potentially interesting market for Dutch growers to expand their export

market share although, due to the E. coli crisis, the export market is currently under pressure, as is described below.

Besides the Eastern European market, there are opportunities for Dutch growers to gain export market share in Asia.

However, strict regulations within China, for instance, to imported fruit and vegetables, make it hard for importers to

gain market share there.

The Netherlands: food


…and short-term threats

Currently the fruits and vegetable sector is under pressure because of the E. coli crisis which hit Dutch vegetable

producers at the peak of their harvest season. The impact is profound, especially for Dutch producers and traders of

cucumbers, tomatoes, lettuce and peppers, as Germany is by far the most important trading partner, with more than

50% of these Dutch vegetables exported to its largest neighbour. Russia is also an important trading partner,

accounting for more than 7% of export share. Many key countries for Dutch vegetable exports followed Germany’s

ban, such as Russia, the Middle East, USA and Canada. Currently only Russia is still imposing this ban.

The real consequences of the crisis for the Dutch fruits and vegetables subsector will become visible only in the

coming months, but already the financial position of some growers has been negatively impacted as almost a month’s

supply of their peak season harvest is worthless. Because of this sector’s importance to the economy, the Dutch

government is providing support by providing temporary financial relief and subsidies to the affected companies.

Meat

The major trade sectors are beef, calves, pigs and poultry, with 75% of meat production destined for export. Total

domestic meat consumption in 2010 was stable compared to 2009. 58% of meat is distributed via supermarkets, 35%

is sold by the catering industry and 7% through specialist retail butchers. The share of pre-packed meat in the

household market increased from 72.4% in 2000 to 91.0% in 2009. Production in the meat sector is driven mainly by

the pork and poultry sector and this has been stable over the last three years. However, beef production decreased a

little in 2010 as a result of the bankruptcy of one of the largest slaughter houses in the Netherlands.

Beef

Dutch beef is highly valued, thanks to its reputation for nutritional quality and controlled production processes.

Tracking and tracing methods and independent quality inspections allow meat to be traced from the point of sale back

to its source. After a big increase in the number of cows slaughtered in 2009 (181,000 tonnes), the number dropped to

its normal level of 165,000 tonnes in 2010.

Calves

The Netherlands is a major international exporter of veal. The number of calves slaughtered in 2010 remained stable

compared to 2009, at 232,000 tonnes. 90% of calf production is exported to Italy, Germany and France.

Pigs

More than half of all meat consumption consists of pig meat products. Since 2009, all pig farms in the Netherlands

have been monitored for the use of prohibited substances and residues of veterinary medicine. The number of

specialist slaughter houses killing more than 25,000 animals a year has gradually declined, from 27 in 1995 to 18 in

2009, with the total pig population declining during that period from 14 to 12 million. The volume of pigs slaughtered

remained fairly stable in 2010 (at 1.3 million tonnes) compared to 2009. The main export markets for the pig industry

are Germany, Italy, Greece and the UK.



Poultry

In 2009, consumption of chicken amounted to 16 kg per capita, reaching an historic record for the poultry industry.

Poultry slaughtering increased slightly in 2010 (800,000 tonnes) compared to 2009 (789.000 tonnes).

Uncertain outlook due to E. coli The agriculture and food sectors are driven by household spending. According to analysts’ average forecasts, the

overall grocery retail sector will grow by only 1.5% this year as consumer spending in the Netherlands has not fully

recovered from the economic downturn. In the past decade, supermarkets have recorded average growth of 3.5% and

in early 2011 the supermarket sector launched huge promotional campaigns, fuelling doubts that the whole

production and marketing chain can pass on higher commodity prices this year.

The number of insolvencies in agriculture in Q1 of 2011 levelled off compared to the previous quarter. 44 agriculture

companies went bankrupt (43 in Q4 of 2010), 27 of these being growers in the vegetable, flower and/or mushroom

industry.

Number of insolvencies in the agriculture sector (incl. sole proprietorships)

The outlook for agriculture is currently uncertain because of the EHEC virus. It’s likely that some growers will be hit

hard by the impact of the crisis and we will therefore monitor the situation closely to assess the impact on the

finances of Dutch growers. With trading conditions remaining challenging, we will continue to closely monitor the

food industry, especially smaller-sized trading companies.

Supermarkets and speciality stores: the competition gets fiercer Supermarkets ended 2010 on a positive note with an annual growth rate of 1.2%. However, this growth was

considerably lower than in previous years and mainly the result of promotions. 2010 saw restructuring in the market,

with new players, continuing acquisitions and integration, as in the case of the takeover of the Super de Boer chain by

Jumbo and C1000, with the gradual phasing out of the Super de Boer brand. This kind of activity is expected to

continue in 2011, with more concentration and even fiercer competition. That competition has been further



heightened by medium sized purchasing syndicates within the industry growing in strength and levelling the ‘playing

field’. Against this background of intense competition and a battle for market share, the supermarkets cannot pass all

of their rising food costs on to the consumer - and thus margins remain under pressure. The supermarkets have been

forced to increase promotional sales in the fruit and vegetables segment from 14.7% to 16.4% of total turnover in

2010, and this is expected to rise to 20% this year. As in earlier years, the revenue lost through this aggressive

competition between supermarkets and retail speciality shops is expected to be around 4% this year. While the main

route to growth is by gaining market share from other chains, supermarkets can relieve some of the pressure by

creating new segments (such as that for organic food), by offering more convenience food and by expanding their

selection of non-food products.

In 2011 turnover growth is expected to reach 2% because of rising food prices (for instance, at the beginning of the

year potato prices rose by almost 40%). Indeed, the positive signs of growth in the first four months of this year (up

2.1%) can be clearly attributed to these rising prices, as they were accompanied by a drop in volumes sold. For 2012, a

growth of 2.5% is forecast (see chart below).

Dutch food retail sales

Year 2011 % change 2011* % change 2012*

Total turnover retail trade: Food (� billion) 36.8 1.6% 2.1%

Supermarkets 32.0 2.0% 2.5%

Speciality stores 4.8 -1% -0.5%

*estimations by ING/CBS May 2011

Source: ING/CBS

Many speciality stores were hit by consumer restraint during the economic crisis, while their main competition - fast-

food outlets, supermarkets and restaurants - recorded growth. Restaurants have become serious contenders by

broadening their range and offering better deals for consumers. Additionally, the ongoing trend of consolidation in

the supermarket sector, resulting in stronger purchasing syndicates, will continue to put pressure on these stores.

Despite this, there are still opportunities for the specialists. With the growing demand for healthy, organic and fair

food products, they can focus on high quality and exclusivity combined with convenience. In the short-term we still

expect the number of food speciality stores to continue to fall, but eventually this will lead to a stronger sector as the

weaker players fall by the wayside. 2011 and 2012 will show a decline in turnover of 1% and 0.5% respectively.

Dutch food sector

Strengths Weaknesses • Strong international market position • Shift to high quality and organic products

• Fiercer international and domestic competition • Vegetable subsector hit by E. coli • Higher producer prices



The downward trend continues The Irish retail market for consumer durable goods is suffering from the continued deterioration of the economy.

Added to an extreme lack of consumer confidence across the board, retailers are under considerable pressure as the

government’s austerity measures discourage consumers from spending money unless they have to. Recent Central

Bank figures show that household savings in February 2011 stood at �93.2 billion as consumers continue to save

rather than spend. Unemployment remains high with no significant improvement likely in the short term. For the first

time in three years, the European Central Bank (ECB) raised interest rates in April, with the effect of further

dampening consumer confidence and spending. The ECB refuse to rule out further increases and, with lenders passing

on the expense to their customers, this will only heighten consumers’ reluctance to spend on discretionary items.

Source: www.insolvencyjournal.ie

Moreover, the ongoing issues of ‘upward only’ rental agreements and high staff costs are putting operators in this

sector under considerable pressure. A survey in March by Retail Excellence Ireland [REI] showed that, of the 3,600

stores questioned, 68% had been refused a rent reduction.

The consumer durables retail sector is extremely competitive – and, with price as the priority, consumer loyalty is

non-existent. Sales or ‘special offers’ are an almost permanent feature of the clothing, electrical and furniture

subsectors. Since 2008, retail sales in Ireland have shown a worrying trend and, while a brief respite was seen in mid

2009, the general downward trend cannot be ignored (see chart below).

Source: CSO

Ireland: consumer durables


The retail sale index for April 2011, published by the Central Statistics Office, serves to support Atradius’ negative

outlook for this market.

Source: CSO

This index relates solely to the volume of retail sales, excluding the effects of pricing. The decrease of 3.9% to April

2011 includes motor sales but, when motor sales are removed, this drops to 5%. Unfortunately it seems likely that this

trend will deteriorate further as the government’s scrappage scheme ends on 30th June 2011 (as has been the case

when similar schemes in other countries have ended).

On average, payments in the consumer durables industry take 60 days. Payment delays have risen, and we expect a

further worsening in the coming months, with retailers finding their cash flow under increased pressure due to

dwindling profits. For a large majority of retail buyers, negative working capital movements are becoming increasingly

common, with cash reserves eroded, leaving the retailer sitting on higher levels of stock which may become obsolete.

While clothing retailers operate on a purely cash basis, electrical, furniture and motor retailers have higher levels of

debtors and accruals as they tend to offer credit terms to their customers. They will find it increasingly difficult to

obtain timely payments – if at all - as consumers concentrate on paying for life’s essentials.

Insolvencies will continue to increase in 2011 Retail in Ireland is one of the sectors most affected by insolvencies, and has been in the top four poor performers for

the past two years (see chart below).

Ireland: business insolvencies (as of June 1st 2011)

Source: www.insolvencyjournal.ie



In 2010 there was a 41.6% year-on-year increase in the number of retail companies placed into the formal insolvency

process, and 12% of all business failures in Ireland in 2010 occurred in this sector. So far in 2011, the average number

of business insolvencies per sector has been 68 while, at 95, retail is 39.7% above the average. For the whole of 2011,

we expect a further year-on-year deterioration, with more shops closing due to dwindling sales and high operating

costs.

The outlook remains grim for the whole sector Unfortunately, the short-term outlook for the consumer durables retail sector as a whole is not positive, and the

difficult economic environment shows no sign of stabilising in the foreseeable future. Additional ‘stealth’ taxes in the

form of carbon, water and property levies are to be introduced in 2012 and this will further deter consumer spending.

These taxes are in addition to the further � 2.5 billion in austerity measures due to be announced in the December

budget.

Research by Visa Europe indicates that Irish consumers spent some � 2.96 billion on online purchases in 2010: a 39%

year-on-year increase. Such figures show that consumers feel that they can get better deals online than by shopping

with local retailers. It is unlikely that this trend will reverse in the short to medium term and retailers will need to

devise more innovative ways of attracting consumers back onto the high street.

Clothing retail

This market has shrunk by over 20% in value since 2007. The main problem for retailers is the cost of running a shop,

which has hardly fallen in comparison with other expenses due to ‘upward only’ rents, property service charges, local

authority charges and staff costs. The simple fact remains that people are not spending and retailers have yet to find a

way of reversing this situation.

Motor retail

The industry has been buoyed by the government-assisted scrappage scheme. As this comes to an end, we expect a

further decline in the sector. While the end of the scheme means that used car prices will no longer be devalued -

encouraging those who could not participate in the scheme to return to the market - we do not expect these volumes

to match those generated by the scrappage scheme.

Electrical goods

As with clothing, electrical retailers have been hit badly by the recession. The collapse of the property market has also

served to further damage their trade in brown and white goods. The further austerity measures and levies to be

introduced for 2012 will only tighten household incomes further, contributing to ongoing problems for this segment.

Furniture

This sector has suffered greatly from falling sales, staff losses and closures. As with electrical retailers, it has relied on

sales related to both the ‘new build’ and refurbishment market. A further disadvantage is that, unlike other retail



sectors, there is no market for ‘spare parts’ and the purchase of new furniture is seen by Irish consumers as a luxury -

and one they can currently do without.

Given the continued poor performance of buyers in this volatile market, we expect the sector to remain high risk for a

considerable time. From the company accounts that we analyse, we can see that companies in consumer durables

retail are suffering from poor working capital positions coupled with contracting turnover. Therefore our underwriting

policy remains very cautious for the time being.

Irish consumer durables retail sector

Strengths Weaknesses • Financially, those companies with limited/no

debt and sound working capital especially with regard to stock monitoring and control are best placed to cope with the prevailing conditions

• Lack of economic certainty resulting in frugal consumer spending

• Increased government taxes etc. are attacking consumers’ discretionary spend

• Upward only rent reviews and other costs to retailers are forcing them out of business

• Competition from online retailers is resulting in dropping shop visits



Consumer spending sustained by household lending

Canada’s real gross domestic product (GDP) grew 1.0% on the previous quarter in Q1 of 2011, following a 0.8%

increase in Q4 of 2010. Final domestic demand rose 0.6%. Consumer spending on goods and services remained

virtually unchanged, after increasing 1.1% in the previous quarter, with purchases of durable goods decreasing 1.4%

and non-durable goods 0.4%. However, in Q4 of 2010 purchases of durable goods increased 2.9%, far exceeding the

third quarter growth of 0.6%.

Spending on furniture, furnishings, household equipment and maintenance declined by 0.6% in Q1 - the third fall in

four quarters. Financing activity also slowed in the first quarter, with the easing of consumer credit borrowing

paralleling the softening of consumer spending on durable goods. Business inventories built up too, after a small

accumulation in the fourth quarter of 2010. Business inventory levels have been on an upward trend since the fourth

quarter of 2009, in line with increased sales volumes. Durable goods held by wholesalers and retailers accounted for

most of the inventory accumulation in the first quarter.

Consumer spending has remained buoyed by household lending encouraged by low interest rates, the general trend of

rising house prices and good economic growth prospects. While the pace at which household debt is growing slowed

in 2010 and into 2011, household debt levels still reached a record high of Canadian-$ 1.5 trillion in the first quarter.

Despite warnings from economists and Canada’s central bank, consumers continue to borrow at a faster rate than their

wages are growing - a potential vulnerability in the country's otherwise healthy looking economy. According to

Statistics Canada, the quarterly ratio of household credit debt, including mortgages and consumer loans, to disposable

income reached 147.3% in the period January to March 2011, up from 146.2% in the previous quarter.

On average, payments in the Canadian consumer durables industry take 60 days, with no sign of deterioration as

economic performance and consumer confidence are both robust (see chart below). One downside risk is that of rising

interest rates as this could hurt indebted households and limit future sales of consumer durables.

According to Bankruptcy Canada, business insolvencies for the 12 months to 30 April 2011 decreased 22.2% year-on-

year. A reduction in the number of insolvencies among the transportation and warehousing; retail trade; construction;

Canada: consumer durables


manufacturing; professional, scientific and technical services; and accommodation and food services sectors largely

contributed to this decrease. The consumer durables sector’s default/insolvency rate is on a par with that of other

Canadian industries. However, we have seen more insolvencies in the appliance and furniture manufacturing

subsectors, which were already in trouble before the economic crisis because of cheaper foreign competition.

A more volatile performance in 2011 The consumer durables sector is expected to have a rougher ride this year as a result of the cautious uneasiness of

many consumers. While the macroeconomic figures show a continued improvement on 2008 and 2009, some

consumers are wary that increasing interest rates, coupled with a persistently strong Canadian dollar and weak

recovery in primary export markets, could push Canada into another economic downturn. Companies in the consumer

durables sector are therefore expected to remain vigilant and avoid stocking high inventory levels.

As the manufacture of consumer durables was already in decline a decade ago, with appliance and furniture

manufacture already outsourced to cheaper cost markets, our underwriting stance remains cautious. In contrast, the

wholesale and retail of consumer durables is a segment where we can most readily offer cover. That said, companies in

these segments fall into two main categories: either large and well established, so that the financial information we

require is readily available, or speciality operators filling a niche role, in which case information gathering may be

more difficult.

Canadian consumer durables sector

Strengths Weaknesses • Strong Canadian economic fundamentals • Low interest rates • Improved unemployment rate

• Currency appreciation causing supply/pricing issues

• Weak (slowly recovering) exports • High tax burden

Canada: consumer durables


Japan: consumer durables

Consumer durables retail suffers from consumer restraint

In 2010, led by the government’s economic stimulus measures such as the ’eco-point‘ programme and ’eco-

car‘ subsidies (designed to stimulate sales of energy-saving products), consumer spending increased in the related

sectors. According to the Japanese government, its JPY 693 billion ’eco-point‘ programme is estimated to have

produced JPY 5 trillion of economic spillover effects. Insolvencies decreased, especially in the domestic appliance

sector, as a result of these stimulus packages (see charts below).

Retail industry (food and non-food) – Number of bankruptcies and debt amounts

0

200

400

600

800

1000

1200

1400

1600

1800

2005 2006 2007 2008 2009 2010

Year

Num

ber

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

millio

n J

PY

Number

Debts (million JPY)

Source: Teikoku Databank

Retail Industry – Number of bankruptcies by subsector in 2010

Subsector Number % of total % y-o-y change

Apparel 292 21.7 0.0

Food 304 22.6 -7.0

Automobile 164 12.2 -16.8

Domestic Appliances 61 4.5 -19.7

Others 522 38.9 -17.7

Total 1526 100.0 -12.0




However, with the ending of these stimuli - ‘eco-car’ subsidies in September 2010 and ‘eco-point’ in March 2011 -

and the earthquake and tsunami of 11 March, consumer spending has decreased and many retailers are now facing a

difficult business situation.

The overall conditions for consumer durables wholesalers is similar to that of retailers, because of the difficult

economic situation in Japan. In 2010, the number of bankruptcies decreased in most subsectors, but increased in the

Jewellery/Precious Metal sector, reflecting the tough trading environment.

Wholesale industry – Number of bankruptcies and debt amounts

0

500

1000

1500

2000

2500

2008 2009 2010

Fiscal Year (Apr-Mar)

Numbe

r

0

200,000

400,000

600,000

800,000

1,000,000

million J

PY

Number

Debts (million JPY)


Wholesale Industry – Number of bankruptcies by subsector

FY 2010*

Subsector Number % of total % y-o-y change

Various products 20 0.2 -9.1%

Textile 301 2.6 -5.0%

Food 309 2.7 -7.5%

Machinery 321 2.8 -16.0%

Automobile/Auto part 42 0.4 5.0%

Wood/Construction Material 149 1.3 -31.0%

Furniture/Fixture 79 0.7 -24.0%

Jewellery/Precious Metal 47 0.4 38.2%

Others 368 3.2 -19.1%

Total 1636 100.0 -14.1%

*April 2010 – March 2011




Slight improvement in consumer confidence

In its monthly economic assessment in June 2011, Japan’s government revised upwards its forecast for the first time

in four months, stating that the economy shows signs of improvement, helped by a recovery in manufacturing output

and supply chains since the 11 March disaster. Forecasts for industrial production, exports and consumption were also

more optimistic, as supply constraints have eased, although overall economic activity is still low. Japan's seasonally

adjusted Consumer Confidence Survey Index bounced back in May from April’s two-year low, although the index is

still low compared to pre-quake figures. Among the four sub-indexes, willingness to buy durable goods shows the

best improvement, as the mood of self-restraint (jishuku) among the Japanese public – to show their solidarity with

the earthquake victims - is beginning to lift.

Despite the still difficult situation, we are not expecting any payment delays in the consumer durables segment, as the

Japanese market in general is characterized by good payment behaviour. However, following March’s disaster, we

expect a slight increase in insolvencies due to continuing low consumer spending and no sign of a strong short-term

economic rebound.

In the supermarket and department store segment, a modest recovery is expected as a result of improved operational

efficiency. An increasing number of companies are expanding into other Asian markets, intensifying competition

overseas. Many wholesalers are also seeking opportunities overseas as domestic demand has peaked. In general, the

export of consumer durables is becoming an important source of income for Japanese producers because of the

economic stagnation and subdued spending at home. The growing number of middle income consumers in developing

markets - particularly in China and Southeast Asia - is proving a profitable outlet for Japan’s consumer durables. The

domestic appliance segment will however continue to suffer from decreasing sales as a result of the conclusion of

the ’eco-point’ programme, underlining the need for a rethink of business strategy.

Japanese consumer durables sector

Strengths Weaknesses • High quality products • Good payment behaviour

• Sluggish domestic demand • Negative impact of the March 11 disaster


India: consumer durables

A fast growing market across all segments India’s economy is expected to grow by around 8% annually in the next decade, making it one of the fastest growing

major economies in the world. India’s per capita income has been rising for the last 20 years, and this trend is

expected to continue. Economic growth will be supported by private and public spending on infrastructure (e.g. rural

electrification) and education as well as continued growth in tourism.

India’s consumer durables market was valued at around US$ 33 billion in 2010, with electronic products (computing

devices, mobile handsets and audiovisual products) accounting for almost 76%. The growth in the overall economy

has led to higher disposable incomes and has generated demand. Additionally, a shift has been seen in demand where

end users buy a product at the limit of, or even beyond, their buying capacity as a symbol of social status: with

increasing sales of smart phones, gaming devices (X Box & Nintendo) etc. The growth in tourism has led to growth in

the hotel sector, again contributing to increased demand for LCD TVs and computers.

In a nutshell, growth in the consumer durables sectors is supported by the following factors:

- 45% of India’s population is under 25 years of age

- current under-penetration in rural areas

- multiple brands

- growing household income and easy finance options

- the move from joint to nuclear families

- lower prices due to competition and appetite for hi-tech models.

Indian Durable Industry - Segments

38%

19%

19%

7%

6%

5%

2%

1%1% 1%

1%

MobilePhones/TelecommunicationComputer & Peripherals

Audio/Video & Equipments

Domestic Appliances

Air Conditioners

Industrial Electric &ElectronicsRefrigrators

Electric Fans

Sewing Machines

Washing Machines

Watches & Clocks

As at December 2010

Source: CII



India’s market in consumer electronic devices (computing devices, mobile handsets and audio/video products) is

projected to reach around US$ 30 billion in 2011, compared to US$ 25 billion in 2010. By 2015, with spending on

consumer electronic devices projected to achieve an overall compound annual growth rate (CAGR) of 12%, it is

expected to reach US$ 52.6 billion, with the key segments including low-cost mobile handsets, colour TVs, set-top

boxes and notebook computers. The booming economy and strong local stock market performance helped to account

for the improved consumer sentiment, with flat-panel TV sets, blue-ray players and digital cameras also among top

selling items.

Mobile phones

Mobile handsets accounted for 32% of consumer electronics spending in 2010. The market will continue to grow

robustly due to a projected increase in mobile subscriber penetration - from an estimated 85% in 2011 to 128% by

2015 - as well as falling handset prices. Total Indian market handset sales are expected to approach 235 million units

in 2015. Vendors are likely to increase their focus on semi-urban and rural customers, with penetration in rural areas

currently estimated at less than 15%, far below the national level. The main product segment will be low-cost phones,

but smart phones and touch screen models are also a strong growth area, with Indian and multinational vendors

competing to offer phones with perceived high-end features at affordable prices.

Computers

Indian domestic market PC penetration is currently around 2%. Computer hardware CAGR for the period 2010-2014

is expected to be around 15%.

Audio/Video

India’s domestic video, audio and gaming device market is expected to grow to a value of US$ 19.5 billion in 2014.

Television remains the core product in this category - LCD TV sales grew by almost 100% in 2009 and were projected

to reach around 2.5 million units in 2010. LED TV sets are an emerging growth driver in the LCD segment, thanks to

falling prices.

Others (refrigerators/washing machines/microwaves and ACs)

According to the Electronics and Appliances Manufacturers Association (CEAMA), the penetration level of many

appliances such as refrigerators, washing machines, microwaves and air conditioners, is still very low. This segment

grew by around 13% in 2010 and is expected to grow by 15% - 20% in 2011.

Strong competitive environment remains

Global companies such as Samsung, LG, Nokia, Sony, and Philips have an equity base supported by their parent

organisations but haven’t so far sought to list locally in India despite their market share. Other home-grown

companies such as Videocon, MIRC Electronics, Titan Industries and Blue Star are all listed companies and included in

the Consumer Durable Index at the Bombay Stock Exchange.



Typical of any industry, net operating margins differ from company to company and product to product, and are

driven by product features and brand name. Usually, net operating margins range from 5% to10%. Overall, the larger

players (national and international) are financially well managed with sufficient liquidity and solvability in place.

All the local and international companies have production lines based in India to cater for domestic demand and to

export to neighbouring markets including Nepal, UAE, Sri Lanka and Bangladesh. Production is managed purely on

the basis of demand as there is no order-specific production. However, large distributors have annual targets decided

in advance with manufacturers - based on past performance and company projections.

The market is very competitive, which means that growth at the micro level will be a challenge. Existing players will

have to create different strategies and position themselves accordingly. Companies have to offer unique selling points

in terms of product features, pricing and financing options to maintain sales growth. Additionally, the Indian

distribution network is diffuse and widespread, with multiple small dealers selling the same brands. Many vendors

responded to growing competition from local brands across all segments by repositioning themselves to compete for

lower-income demographics, as much of India’s projected growth will be driven by increasing demand from India’s

relatively underpenetrated rural areas. However, there will also be opportunities to sell premium products.

Of late, market consolidation has not been much in evidence, but in the past companies such as Videocon have picked

up brands locally: such as Akai, Sansui, Toshiba, Hyundai, Electrolux and Kelvinator. In terms of collaboration, Mirc

Electronics (Brand: Onida) use panels made by Samsung or Sharp for its LCD range (X Peria).

On average, payments in the Indian consumer durables sector take 60 days. Given market growth, we are not

expecting any major failures in this sector.

Indian consumer durables sector

Strengths Weaknesses • Sales driven by easy financing options/need

for quality products • Companies with good equity base and good

solvency • Global parenting, e.g. Sony, LG & Nokia in India • High marketing spend, brand recall is high

• Large grey market for illegal products • Extensive distribution network, dealers may

not have sufficient liquidity all the time • Cheap imports from China and other Southeast

Asian countries • Intensifying competition due to the presence of

a large number of players.


Atradius Copyright 2011 The information contained in this report is provided for information purposes only. The information is not intended as a recommendation as to particular transactions, investments or strategies in any way to any reader of the report. Readers of the information contained in this report must make their own independent decisions, commercial or otherwise regarding the information provided. While we have made every attempt to ensure that the information contained in this report has been obtained from reliable sources, Atradius is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in this report is provided ’as is’, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied. In no event will Atradius, its related partnerships or corporations, or the partners, agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this report or for any consequential, special or similar damages, even if advised of the possibility of such damages.

Atradius Credit Insurance N.V

Postbus 8982 1006 JD Amsterdam

David Ricardostraat 1 1066 JS Amsterdam

www.atradius.com

Date post:	08-Feb-2022
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

UK and the Netherland s: consumer durables and food

Documents