The challenges of a different kind of company

1.2 Economic value, generated and distributed

1.2.1 Key figures

Given the need to meet tight family budgets, good prices come out tops. This has proved no obstacle to Eroski's growth. We have gained market share and grown at rates better than those of prior years, whilst reducing operating costs and consolidating on savings in the supply chain.

We continue to invest in the opening of new outlets and in generating a project portfolio. With these efforts we have, in addition to improving and renewing our sales and logistics networks, once again outstripped our competitors, achieving record levels in our portfolio of supermarket projects.

In 2006, our cash flow reached the sum of 403,247 thousand euros and investments grew by over 100% over the 2005-2006 period.

32,652 people make up Eroski, 8.5% more than in 2004. Additionally, 2005-2006 saw 477 new worker members joining us. As far as consumer members and friends of the Fundación Eroski are concerned, there are now 548,189 of us, 14% more than two years ago.

The good profits achieved confirm our proper management control of the company. In addition to financial compensation, Eroski's owners –we, the workers– gain the greatest professional satisfaction from the company's good results.

Key financial figures

Main figures (in thousands of euros)

	2005	Advance 2005	2006	Advance 2006
Consolidated sales	6.005.658	7,6%	6.414.517	6,08%
Consolidated results	143.374	10,4%	190.655	32,98%
Net investments	297.977	-16,6%	611.603	105,25%
Cash Flow	345.329	8,7%	403.247	6,77%
Equity	1.104.500	7.9%	1.211.903	9,72%
Operating expenses	1.998.810	8,4%	ND	ND

Business in Own Brand products

	2005	Avance 2005	2006	Avance 2006
% own-brand sales	28%	104,9%	29,16%	105%
No. permanent products *	1.994	12,6%	2.380	19,40%

* Calculated as OB products showing each year's sales, unblocked. Source: GBI

Employees

	2005	Advance 2005	2006	Advance 2006
Member-employees	12.415	3,4%	12.775	2,8%
Non-member employees	19.501	1,1%	19.876	1,9%

Consumer-members and friends of the Foundation

	2004	2005	Advance 2005	2006	Advance 2006
Partners/friends of the Foundation	481.275	515.226	7,1%	548.189	6,4%

Key figures

Sales area (m²)

	2004	2005	Advance 2005	2006	Advance 2006
Sales area (m2)	1.312.652	1.381.445	5,2%	1.442.828	4,4%

Commercial network 2006

	Openings	Total
EROSKI	5	84
EROSKI/center	22	481
EROSKI/city	2	65
EROSKI service stations and Super service stations	4	48
EROSKI/travel (includes Travel Air)	17	257
Forum Sport	4	42
If perfumeries	31	227
Abac	-	2
CASH RECORD	-	19
Food Service	-	3
Total in Spain	85	1.228
France	-	37
Total own network	85	1.265
Aliprox and other franchises	3	572
Total GROUP	88	1.837

Development of shopping centres and malls

Openings	2005	2006
No. own commercial outlets	5	20
Commercial surface area of 100% own shopping malls (m2)	153.269	98.555,50
Available premises	390	587