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NOTICE OF ANNUAL GENERAL MEETINGTHE COMMUNITY CO-OPERATIVE STORE (NURIOOTPA) LTD

Concise Annual Report

2014

THE COMMUNITY CO-OPERATIVE STORE (NURIOOTPA) LTD

Trading as The Co-op Heart of the Barossa 3 Murray St Nuriootpa 5355 Phone 08 8568 6000

www.barossa.coop

BOARD OF DIRECTORS

Phillip M. Schmaal MBA, DipCM,MAICD,ACIS,ACSA Chairman Audit Committee Chairman

John L CurnowDeputy Chairman

Stephen O’Loughlin BCom(VPM), AAPI,CPP Director

Guy H. Ewing DPharm, AICD Director

John Auld RDWM Director

Katherine A. Newland Director Audit Committee Member

Rebecca Tolhurst LLB(Hons), BCom Director

MANAGEMENT

Graeme A. Longmuir Chief Executive Officer

Barclay S. Watson CPA, MBA Chief Financial Officer

Lisa Brown Management Accountant

Sharon L. Hannaford AIPA Financial Accountant

Paul Amos DipHR, MAHRI People Relations

Robert S. Zander Information Services

NURIOOTPA FOODLAND

Kenneth C. Hodges DipRetailMan Manager

Graham J. Stocker Assistant Manager

Johnny De Duonni Fruit and Veg

Jason Kemsley Butcher Shop

Jacky R. Jensen Bakery

Position Vacant Service Delicatessan

Denise G. McPhee Grocery & Customer Service

Judy H. Whittaker Frozen & Dairy

BAROSSA MITRE 10 AND TRADE CENTRE

David Burgess Manager

BETTA HOME LIVING

Daniel Morgan Manager

ORCHARD LANE

Kathryn Kahl Manager

ROD & SPUR

Kathryn Kahl Manager

BAROSSA SPORTSPOWER & BAROSSA SURF

Paul A. Schupelius Manager

BAROSSA HOME LIVING

Wayne Hampel Manager

TOYWORLD & CHILDRENSWEAR

Jane Ziegeler Manager

Bankers – Bank of South Australia Auditor – Paul V. Jorgensen Partner of Kennedy & Co Chartered Accountants Insurance Broker – Aon Risk Services Limited Registered Office – 3 Murray Street, Nuriootpa, South Australia ABN 80 147 431 373 Website – www.barossa.coop Telephone (08) 8568 6000 Facsimile (08) 8568 6010 Registered under the Co-operatives Act 1997 Subsidiary Company - Heritage Stores Pty. Ltd. ACN 008 017 105 ABN 98 008 017 105

Notice of Annual General Meeting

CONCISE ANNUAL REPORT . page 1

Wednesday25June2014

BUSINESS

1.

2.

3.

4.

RetiringDirectorseligibleforre-election:

REBECCA TOLHURST Company Director 14 Waechters Road PENRICE SA 5353

STEPHEN JOHN O’LOUGHLIN Company Director 2 Gooden Drive NURIOOTPA SA 5355

JOHN AULD Company Director 10 Dean Street ANGASTON SA 5353

5. To fix the remuneration of the Board of Directors.

6. To transact any other business of which due notice is given.

By order of the Board of DirectorsBS WatsonChief Financial OfficerNuriootpa, South Australia 20 May 2014

THE CO-OPERATIVE RULES ALLOW VOTING IN PERSON ONLY

VOTING BY PROXY IS NOT PERMITTED

To confirm the minutes of the Annual General Meeting held 19 June 2013.

To receive and adopt the Board of Director’s Declaration, Statement of Comprehensive Income and Statement of Financial Position for The Community Co-operative Store (Nuriootpa) Limited Group for the 12 months ended January 2014.

To approve the rate of interest on Share Capital effective from 1 July 2014 as recommended by the Board of Directors.

To elect three Directors of the Co-operative. In accordance with the Rules, three Directors retire, Rebecca Tolhurst by rotation, and Stephen O’Loughlin and John Auld, appointed by the Board to fill casual vacancies. All have offered themselves and are eligible for re-election.

No other nominations have been received

Notice is hereby given that the Annual General Meeting of the Shareholders of The Community Co-operative Store (Nuriootpa)Limited will be held at the Barossa Mall, Nuriootpa on Wednesday 25 June 2014 at 7.30pm.


PHILLIP SCHMAAL Chairman of the BoardOn behalf of the Board, we are very proud to report that your Co-op again had a very strong year in what has been a difficult retail environment. The Co-op is celebrating its 70th year and all members can be very proud of our history and the achievements to date.

A strong and sustainable future where the Barossa and surrounding regions are assured of local retail services which are competitive and where local residents can

access and enjoy services on a par with those available in metropolitan areas will require:

• Sound investment by your Board in the infrastructure, staff and resources necessary for securing and laying the foundations for those futures services;

• The ongoing support and patronage of you, The Co-op’s members.

The Board and Management have also had a very strong focus over the past twelve months, and will continue to maintain a strong focus on ensuring we provide an environment which engenders and provides for the safety and wellbeing of our staff and customers alike.

TRADING - The Co-op’s gross revenue excluding GST grew 2.5% to $67.168m from solid performances in almost all divisions. This was above sales growth across the South Australian retail sector for the same period.

EXPENSES - Total operating expenditure for the year rose by 3.5% compared to 4.8% expenditure growth in the previous period.

TRADING RESULT - The trading result (Net Profit before Appropriations to Members) remained consistent with the previous year at $1.709m (previous year $1.730m). Despite the increase in sales revenue, costs were impacted by higher building maintenance expenditures and increasingly inefficient energy consumption within our ageing supermarket. Other restructuring and systems development costs incurred during the year will provide the basis for efficiencies into the future. Depreciation and amortisation charges totalled some $877k.

It is also pleasing to note that despite increased price competitiveness across all retail markets our gross margin was maintained. More astute purchasing enabled the Co-op to increase member discounts whilst at the same time retaining gross margin percentage.

The Co-op continues to re-invest in the local community with sponsorships and other direct/indirect support to local residents and community groups increasing to $106K ($96k last year).


Chairman’s Report

CONCISE ANNUAL REPORT . page 2 CONCISE ANNUAL REPORT . page 3

Instant member rebates for the year grew 7.3%, totalling $1,188K compared to $1,107K in the previous year.

CASHFLOW&EXTERNALBORROWINGS-The Co-op continues to generate strong positive cash flows. Cash increased by some $786k over the reporting period after repayment of $1.000m in debt. With further debt repayments scheduled for this coming financial year The Co-op expects to be debt free by October 2014.

RESERVES-One of The Co-ops main strengths is its strong balance sheet. Reserves remained constant at $11.837m in 2013/14, and retained earnings increased from $16.269m to $17.044m.

The Board is heartened by the consolidated result and the future potential for the organisation.

InterestonShareCapitaleffectivefrom1July2013-At last year’s Annual General Meeting members adopted a change to the method of calculating the interest rate on share capital. This was changed to a floating rate set at 2.0% above the Reserve Bank official rate, and when varied, the rate paid on Share Capital will be updated within three working days. This method more fairly reflects the market and is fairer to both Members and The Co-op. The interest rate on share capital as at the end of this reporting period (31 January 2014) was 4.5%.

ShareCapital(ContributedEquity)&Shareholders’Funds-

Share capital increased a further 3.7% to $4.079m, due to new members signing on and the confidence of long-term investors placing money with The Co-op.

Our instant rebate (saving) scheme for our members has driven total members savings of $1.188m in 2013/14. The success of this scheme cannot be understated as it provides real savings immediately to our membership base.

DISTRIBUTIONTOSHAREHOLDERS

2014 2013

$ $

Interest on Share Capital 4.5% 214,651 242,179

Interest on Accumulated Rebate and Interest 3.5% 129,117 160,310

Rebate on Qualifying Purchases 1% /0.5% 385,658 376,237

$729,426 $778,726

MANAGEMENT&STAFF- I have previously stated that our greatest asset is our staff. I remain steadfast in that view. Whilst we may not have the capital base and resources of the larger national retailers, our staff and the service they provide to our customers – the overall shopping experience they provide to our customers – is our competitive advantage and what sets us apart. We continue to be one of the largest employers in the region and certainly the largest employer of youth within the region. On behalf of the Board, I want to thank our Management Team and all of our Staff for a sterling effort throughout the year. All staff can be very proud of what they have achieved.

DIRECTORS- The past year has seen both Cameron Ashmead and Peter Fuller retire from the Board after many years of loyal and committed service to The Co-op. We thank both gentlemen for their very significant contributions and professionalism and wish them well for the future as they focus on their own business ventures.

At the same time we welcome Stephen O’Loughlin and John Auld to the Board filling these casual vacancies and look forward to the experience and knowledge they will contribute.

The Board has embarked on establishing its own Board Performance Appraisal program and all Board members are now expected to maintain membership of the Australian Institute of Company Directors and to comply with related ongoing professional development standards.

I also wish to personally thank all the Directors for their contribution. The demands are high and it is pleasing to see local people with the relevant skills and expertise willing to take on these challenges.

THEFUTURE- As previously alluded to, the Board is heartened by the consolidated result and the future potential for the organisation. We have been working with Management and advancing through the various stages of the current strategic plan with significant progress already being made.

As also previously mentioned, The Co-op has been in existence for 70 years and was originally established to ensure people living in the Barossa region had access to a broad range of local retail services. Much has changed over those 70 years and as an organisation The Co-op like everyone else needs to adapt and change with the changing environment. To ensure our local communities continue to be vibrant and have access to appropriate retail services, that those services are competitive and of the highest quality, and that we provide increased employment opportunities for local people, particularly our youth , we have a responsibility to plan , invest, and lay the foundations for providing those services now and for future generations.

As a Board we look forward to working with our local communities in delivering those outcomes.

Phillip Schmaal

Chairman

Chairman’s Report (CONT)

CONCISE ANNUAL REPORT . page 5CONCISE ANNUAL REPORT . page 4


Board Members


Directors’ Report


Your directors present their report on The Co-op and its controlled entities for the financial year ended 31 January 2014.

DIRECTORS The names of the directors in office at any time during, or since the end of, the year are: Ashmead, Cameron ASchmaal, Phillip MCurnow, JohnEwing, Guy HFuller, Peter ANewland, Katherine AClarke, Samuel DTolhurst, RebeccaO’Loughlin, StephenAuld, John Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

PRINCIPALACTIVITIES The principal activity of the Group is to provide outstanding and sustainable shopping choice and retail services to our Members and the Barossa community.

SHORTTERMOBJECTIVES • To be a retailer of choice • Provide value for money • Provide exceptional customer service • To be an employer of choice

LONGERTERMOBJECTIVES • To provide Members with a growing range of services and financial benefits • To be a generous and trusted leader in our region and in the wider Co-operative Community • To optimise our physical assets to provide a sustainable future.

WEWILLDOTHISBY • Providing customer service of the highest standards • Providing training to all of our staff • Establishing operational benchmarks • Developing our marketing strategy • Refreshing our brand • Actively promote the benefits of Membership • Work with local government to provide options for sustainable development

BusinessReviewOPERATINGRESULTS

The consolidated profit of the Group after providing for income tax and eliminating minority equity interests amounted to $775,663 (2013: $781,201).

Chairman (Resigned January 2014)Deputy Chairman (Appointed Chairman January 2014)Director (Appointed Deputy Chairman January 2014)DirectorDirector (Resigned June 2013)DirectorDirector (Resigned April 2013)DirectorDirector (Appointed August 2013)Director (Appointed February 2014)


RESULTSOFOPERATIONS/APPROPRIATIONSTOMEMBERS:

ECONOMICENTITY 2014 2013 $ $Net Sales Turnover (excluding GST) 67,168,297 65,513,599Operating Surplus for YearBefore Appropriations 1,709,074 1,730,263Appropriations to Members- Interest on Share Capital (214,651) (242,179)- Rebate on Qualifying Purchases (385,658) (376,237) 1,108,765 1,111,847Income Tax (333,102) (330,646)Net Profit from Ordinary Activities 775,663 781,201

SHARECAPITALMOVEMENTS: Balance Capital CapitalWithdrawnorNotice Balance 1/02/2013 Invested ofWithdrawalgiven 31/01/2014 $3,934,182 $309,156 $164,750 $4,078,588

OtherItemsSIGNIFICANTCHANGESINSTATEOFAFFAIRS No significant changes in the Group’s state of affairs occurred during the financial year.

AFTERBALANCEDAYEVENTSNo matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future financial years.

LIKELYDEVELOPMENTS The economic entity expects to maintain the present status and level of operations and hence there are no likely developments in the economic entity’s operations.

ENVIRONMENTALISSUESThe economic entity’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a State or Territory.

DIVIDENDSPAIDORRECOMMENDED No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends has been made.

WORKPLACEGENDEREQUALITYAGENCYThe Co-op complies with the requirements of the Workplace Gender Equality Act 2012, and has lodged its annual compliance report with the Workplace Gender Equality Agency. The report may be accessed at www.barossa.coop or http://search.wgea.gov.au

INFORMATIONONDIRECTORS

Ashmead,CameronA – Chairman Qualifications – B Comm, MBA, GAICD Experience – Chairman since June 2010, Board Member since 2005, Resigned January 2014 Number of Shares – 2,436

Schmaal,PhillipM – Deputy Chairman (Appointed Chairman January 2014) Qualifications – MBA, Dip CM, FIPA, MAICD, ACIS, AGIA Experience – Board Member since April 2011 Number of Shares – 143

Clarke,SamuelD – Director Qualifications – FCPA, B Comm Experience – Board Member Since April 2010, Resigned April 2013Number of Shares – 120

Ewing,GuyH – Director Qualifications – D Pharm, MAICDExperience – Board Member since June 2010 Number of Shares – 397

Fuller,PeterA – Director Qualifications – BA, Dip Ed, MPRIA Experience – Board Member since April 2000, Resigned June 2013 Number of Shares – 69

Curnow,JohnL – Director Qualifications – Business Manager Experience – Board Member Appointed 24/04/2013Number of Shares – 332

Newland,KatherineA–DirectorQualifications – Marketing ConsultantExperience – Board Member since April 2011Number of Shares – 179

Tolhurst,Rebecca – Director Qualifications – LLB(Hons), B Comm Experience – Board Member since March 2012 Number of Shares – 60

O’Loughlin,Stephen – Director Qualifications – B Com (VPM), AAPI CPP Experience – Board Member since August 2013 Number of Shares – 149

Auld,John – Director Qualifications – RDWM Experience – Board Member since February 2014 Number of Shares – 219


Directors’ Report (CONT)

OPTIONSNo options over issued shares or interests in The Co-op or a controlled entity were granted during or since the end of the financial year and there were no options outstanding at the end of the financial year.

DIRECTORS’BENEFITSNo Director since the end of the previous financial year has received or become entitled to receive a benefit by reason of a contract made by The Co-op or a related corporation with the member or with a firm of which he/she is a member, or with a company in which he/she has a substantial financial interest other than as shown in the group accounts or received as a fixed salary of a full-time employee. An exception to this are the normal professional service fees paid to Fuller Communications, a firm in which Mr P.A. Fuller, a Director of the Co-operative, is a Director.

INDEMNIFICATIONOFOFFICERORAUDITORNo indemnities have been given or insurance premiums paid, during or since the end of the financial year, for any person who is or has been an officer or auditor of the economic entity with the exception of the following:

During the financial year, The Co-op paid a premium of $13,431 in respect of contracts insuring all the Directors and Officers of The Co-op under a management insurance policy.


Ashmead, Cameron A Clarke, Samuel D Curnow, John L Ewing, Guy HFuller, Peter ASchmaal, Phillip MTolhurst, RebeccaNewland, Katherine AO’Loughlin, Stephen Auld, John

COMMITTEE MEETINGS

DIRECTORS’ MEETINGS

AUDIT COMMITTEE

DIRECTORS

Number eligible

to attend

Number attended

Number eligible

to attend

Number attended

1138

115

111111

5-

103794

111010

5-

1131-2

11----

931-1

11----

During the financial year, 22 meetings of directors (including committees of directors) were held. Attendances by each director during the year were as follows:

PROCEEDINGSONBEHALFOFTHEECONOMICENTITYNo person has applied for leave of Court to bring proceedings on behalf of The Co-op or intervene in any proceedings to which The Co-op is a party for the purpose of taking responsibility on behalf of The Co-op for all or any part of those proceedings.

The Co-op was not a party to any such proceedings during the year.

Signed in accordance with a resolution of the Board of Directors:


Director Curnow, John L

Director Schmaal, Phillip M

Dated this 23rd day of April 2014

DIRECTORS’DECLARATIONThe directors of the company declare that:

1. The financial statements and notes, as set out on pages 14 to 19, are in accordance with the Corporations Act 2001 and:

a. comply with Accounting Standards, which, as stated in accounting policy note 1 to the financial statements, constitutes explicit and unreserved compliance with International Financial Reporting Standards (IFRS); and

b. give a true and fair view of the financial position as at 31 January 2014 and of the performance for the year ended on that date of the company and consolidated group.

2. In the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Directors’ Report (CONT)


Director Schmaal, Phillip M

Dated this 23rd day of April 2014

OURCUSTOMERS


CEO’s Report


GRAEME LONGMUIR Chief Executive OfficerI’m pleased to say that The Co-op has had a very successful year and continues to grow and evolve to meet the changing needs of our members and the community. There’s been a solid increase in members and a good increase in the number of customers coming to our stores. We continue to pursue our goal of being the best retailer in SA and the work behind the scenes in building resilience and efficiency into the business will ensure ongoing success and a long term sustainable future.

The support and loyalty from over 17,000 community members is greatly appreciated and gives The Co-op a unique competitive advantage that can never be taken for granted. We took a conscious position twelve months ago to create and drive our own future rather than dwell on the negatives that have been impacting our region. The membership has responded positively to the extra activity and excitement in and around The Co-op and it’s great to see the car parks full and The Co-op continuing to grow.

We’ve also made a decisive choice to reframe The Co-op in the market place and have formed important strategic alliances with key industry groups and businesses. Over the next few years we will be building on these alliances and others, to ensure the value of your membership continues to grow beyond solely providing exceptional retailing.

Operationally our strategic direction remains focussed on our customers’. The key areas we continue to build on are:

• Our Customers • Our Members • Our Community

• Our People • Our Stores

Customer transactions increased to over 1.2 million for the year. The average basket size has also increased. Our Co-opOnline business through the Foodland store has grown into a $2 million business and our online processes are now being replicated by independent retailers across Australia.

The store teams have been pursuing a deliberate phase of renewal, bringing in new ranges and ideas to stay on trend with the latest in retail. The focus on supporting local producers also continues and the open invitation remains in place for any local business to knock on our door to present their products.

• Our research work with the national co-operative body, BCCM (Business Council of Co-operative and Mutuals) will allow us to validate that $1.00 spent by you in your co-op, translates into a $1.50 invested directly into your community.

• Our alliance with Health Partners, SA’s leading health insurance fund has led to direct savings to members on their everyday cost of living and is the first of several agreements planned.

• Our involvement as the inaugural chair of the Industry Skills Regional Leaders Group will allow us to ensure industry across our community is working together for sustainable employment outcomes.

• Our future collaboration with UniSA’s Ehrenberg-Bass Institute will assist The Co-op in making valued decisions as a retailer and position your co-op as the industry leader in the field of retail marketing.

CEO’s Report (CONT)


OURMEMBERS

OURCOMMUNITY

OURPEOPLE

OURSTORES

Member-only instant rebates are discounts we give back to you as a member benefit every single day. Non-member shoppers do not get these extra discounts. They now total an additional $1.1 million a year being returned to members on top of your annual rebate. An increasing number of members are taking advantage of the 1,000’s of exclusive, member-only specials available each day across The Co-op.

With the Co-opConnect program we continue to communicate through the web sites, regular E-news, Twitter, Facebook, and the member’s desk in the mall. Feedback is always welcome and we are keen to keep making The Co-op more transparent and accessible to all of our members.

The Co-op sponsorship and donations program is helping an ever increasing number of organisations across the region. This is one of the fundamental differences a co-operative brings to a community and our giving back program has increased again this year by a further 15%.

The introduction of Co-opAdvantage will leverage the strength of 17,000 members to get deals better than you can get as an individual, on your key household budget items. The Health Partners alliance not only delivers substantial savings each year, the program also delivers a community benefit through free vision testing in primary schools and sponsorship of health events.

Over 20% of The Co-op employees now have a nationally recognised retail accreditation making us the biggest retail training organisation in the Barossa. This year 21 team members received a Diploma in Retail, 31 received a Certificate IV in Retail and 17 a Certificate III in Retail. Investing in our people and building their retail skills is an ongoing need. This will ensure The Co-op remains an employer of choice in South Australia well into the future.

The coming year will see some exciting announcements on how we can further future proof The Co-op and build a sustainable regional shopping centre of which all Barossan’s can be proud. The asset review has been completed, member research conducted and the 10 years strategic framework for future works has been put in place. These plans will be announced in a series of community consultation meetings on an ongoing basis before any work commences.

In the meantime we continue to invest heavily on improving the amenity and the shopping experience for our members and customers. Removing safety hazards and creating a safe shopping environment are a key focus.

Finally I’d personally like to acknowledge the outstanding team at The Co-op. Many members would have personally experienced the dedication of individual team members who regularly extend themselves beyond what is normally expected. I thank everyone in the team for an excellent trading result in a tough and dynamic retail environment. We have a very diverse and highly skilled Co-op team; over 350 team members who on a daily basis show a commitment to exceptional customer service that is unique in the retail world. I’m extremely proud how they just get on and make things happen. The team represents the face of The Co-op in such a friendly and positive manner every day. Well done to all.

We have an exciting year ahead and we can all look forward to the challenges and opportunities it will bring.

Graeme Longmuir Chief Executive Officer

Discussion and Analysis of the Financial Statements


FORTHEYEARENDED31JANUARY2014

INCOMESTATEMENT

BALANCESHEET

STATEMENTOFCASHFLOWS

The financial statements and disclosures in the concise financial report have been derived from the 2014 financial report of The Community Co-operative Store (Nuriootpa) Limited and Controlled Entities.

A copy of the full report and auditors report can be accessed via the Co-operative’s website www.barossa.coop or will be sent to any member, free of charge, upon request.

The discussion and analysis is provided to assist members in understanding the concise financial report. The discussion and analysis is based on The Community Co-operative Store (Nuriootpa) Limited and Controlled Entities financial statements and the information contained in the concise financial report has been derived from the full 2014 financial report of The Community Co-operative Store (Nuriootpa) Limited and Controlled Entities. Further discussion is found in the body of the Annual Report.

The consolidated profit of the Group after providing for income tax and eliminating minority equity interests amounted to $775,663 (2013:$781,201). Net sales revenue for the year is $67.1 million compared with $65.5 million for the previous year.

Net assets increased during the year by $920,069 to $32,960,532 representing a increase of 2.87%. This increase was mainly attributable to an increase in cash reserves and a decrease in borrowings and stock levels.

Return on equity (after tax) was 2.41% compared to 2.52% in the previous year.

Net cash provided by/(used in) operating, investing and financing activities was $786,441 in 2014 compared to $966,588 in the previous year. The major contributing factors were an decrease in receipts from customers and share capital for the year. In addition to this, there was a decrease in capital expenditure.

InformationonTheCommunityCo-operativeStore(Nuriootpa)LimitedandControlledEntitiesConciseFinancialReport


Statement ofComprehensive IncomeFORTHEYEARENDED31JANUARY2014

2014 2013

$ $

Revenue 67,168,297 65,513,599

Changes in inventories (254,885) 437,268

Cost of goods sold (49,177,524) (47,862,137))Employee benefits expense (10,472,798) (10,055,439)

Depreciation and amortisation expense (876,812) (872,664)

Other expenses (4,477,265) (5,105,775)

Finance costs (199,939) (324,589)

Profitfromordinary

activitiesbeforeappropriationstomembers 1,709,074 1,730,263

Rebates to members (385,658) (376,237)

Interest on share capital (214,651) (242,179)

Profitfromordinary

activitiesbefore

incometaxexpense 1,108,765 1,111,847

Income tax expense (333,102) (330,646)

Profitfortheyear 775,663 781,201

Othercomprehensiveincome: Impairment loss on revaluation of land and buildings - -

Othercomprehensiveincomefor theyear,netoftax - -

Totalcomprehensiveincomefortheyear 775,663 781,201


Statement ofFinancial Position


ASAT31JANUARY2014

2014 2013

$ $ASSETS CURRENT ASSETS Cash and cash equivalents 1,275,002 488,561

Trade and other receivables 1,462,067 1,282,241

Inventories 6,443,384 6,698,269

TOTAL CURRENT ASSETS 9,180,453 8,469,071

NON-CURRENT ASSETS Trade and other receivables 11,860 10,426

Financial assets 54,464 49,632

Property, plant and equipment 37,880,910 38,492,711

Deferred tax assets 379,061 363,143

TOTAL NON-CURRENT ASSETS 38,326,295 38,915,912

TOTAL ASSETS 47,506,748 47,384,983

LIABILITIES CURRENT LIABILITIES Trade and other payables 4,042,056 3,877,470

Borrowings 5,092,038 5,057,804

Current tax liabilities 156,233 208,081

Employee benefits 1,211,332 1,170,007

TOTAL CURRENT LIABILITIES 10,501,659 10,313,362

NON-CURRENT LIABILITIES Borrowings - 1,000,000

Deferred tax liabilities 3,965,517 3,963,853

Employee benefits 79,040 67,305

TOTAL NON-CURRENT LIABILITIES 4,044,557 5,031,158

TOTAL LIABILITIES 14,546,216 15,344,520

NET ASSETS 32,960,532 32,040,463

EQUITY Issued capital 4,078,588 3,934,182 Reserves 11,837,224 11,837,224 Retained earnings 17,044,720 16,269,057

Totalequityattributabletoequity

holdersofthecompany 32,960,532 32,040,463 TOTAL EQUITY 32,960,532 32,040,463


2014 2013

$ $

Revenue 67,168,297 65,513,599

Changes in inventories (254,885) 437,268

Cost of goods sold (49,177,524) (47,862,137))Employee benefits expense (10,472,798) (10,055,439)

Depreciation and amortisation expense (876,812) (872,664)

Other expenses (4,477,265) (5,105,775)

Finance costs (199,939) (324,589)

Profitfromordinary

activitiesbeforeappropriationstomembers 1,709,074 1,730,263

Rebates to members (385,658) (376,237)

Interest on share capital (214,651) (242,179)

Profitfromordinary

activitiesbefore

incometaxexpense 1,108,765 1,111,847

Income tax expense (333,102) (330,646)

Profitfortheyear 775,663 781,201

Othercomprehensiveincome: Impairment loss on revaluation of land and buildings - -

Othercomprehensiveincomefor theyear,netoftax - -

Totalcomprehensiveincomefortheyear 775,663 781,201


Statement ofChanges in Equity


2013 Asset Capital Ordinary Retained Realisation Profits Shares Earnings Reserve Reserve Total

$ $ $ $ $

Balanceat31January2012 3,576,592 15,487,856 10,804,681 1,032,543 30,901,672 Profit attributable to members of the parent entity - 781,201 - - 781,201

Total other comprehensive income for the year - - - - -

Transactionswithownersintheircapacityasowners Shares issued during the year 467,018 - - - 467,018 Shares bought back during the year (109,428) - - - (109,428)

Subtotal 357,590 781,201 - - 1,138,791

Balanceat31January2013 3,934,182 16,269,057 10,804,681 1,032,543 32,040,463


$ $ $ $ $



Transactionswithownersintheircapacityasowners

Shares issued during the year 309,156 - - - 309,156

Shares bought back during the year (164,750) - - - (164,750)

Subtotal 144,406 775,663 - - 920,069





$ $ $ $ $



Transactionswithownersintheircapacityasowners Shares issued during the year 467,018 - - - 467,018 Shares bought back during the year (109,428) - - - (109,428)

Subtotal 357,590 781,201 - - 1,138,791



$ $ $ $ $



Transactionswithownersintheircapacityasowners

Shares issued during the year 309,156 - - - 309,156

Shares bought back during the year (164,750) - - - (164,750)

Subtotal 144,406 775,663 - - 920,069



Statement ofCash FlowsFORTHEYEARENDED31JANUARY2014

2014 2013

$ $

CASHFLOWSFROM

OPERATINGACTIVITIES: Receipts from customers 66,984,592 65,796,646 Payments to suppliers and employees (63,957,256) (62,389,041) Borrowing costs (385,658) (376,237) Interest received 18,761 12,197 Appropriations to members (414,590) (566,768) Income tax paid (399,205) (151,833) Net cash provided by (used in) operating activities 1,846,644 2,324,964

CASHFLOWSFROM

INVESTINGACTIVITIES: Proceeds from sale of plant and equipment 1,208 8,500 Purchase of property, plant and equipment (266,219) (404,350) Redemption / (Purchase) of investments (6,265) 52,788 Net cash used by investing activities (271,276) (343,062)

CASHFLOWSFROM

FINANCINGACTIVITIES: Proceeds from issue of shares 211,073 284,686 Repayment of borrowings (1,000,000) (1,300,000) Net cash used by financing activities (788,927) (1,015,314) Net increase (decrease) in cash and cash equivalents held 786,441 966,588 Cash and cash equivalents at beginning of year 488,561 (478,027) Cash and cash equivalents at end of financial year 1,275,002 488,561


Notes to the Financial Statements


2014 2013

$ $

CASHFLOWSFROM

OPERATINGACTIVITIES: Receipts from customers 66,984,592 65,796,646 Payments to suppliers and employees (63,957,256) (62,389,041) Borrowing costs (385,658) (376,237) Interest received 18,761 12,197 Appropriations to members (414,590) (566,768) Income tax paid (399,205) (151,833) Net cash provided by (used in) operating activities 1,846,644 2,324,964

CASHFLOWSFROM

INVESTINGACTIVITIES: Proceeds from sale of plant and equipment 1,208 8,500 Purchase of property, plant and equipment (266,219) (404,350) Redemption / (Purchase) of investments (6,265) 52,788 Net cash used by investing activities (271,276) (343,062)

CASHFLOWSFROM

FINANCINGACTIVITIES: Proceeds from issue of shares 211,073 284,686 Repayment of borrowings (1,000,000) (1,300,000) Net cash used by financing activities (788,927) (1,015,314) Net increase (decrease) in cash and cash equivalents held 786,441 966,588 Cash and cash equivalents at beginning of year 488,561 (478,027) Cash and cash equivalents at end of financial year 1,275,002 488,561

NOTESFORTHEYEARENDED31JANUARY2014

Note1:Basisofpreparation

The Concise financial report has been prepared in accordance with Accounting Standard AASB 1039: Concise Financial Reports and the Corporations Act 2001.

The financial statements, specific disclosures and other information in the concise financial report is derived from and is consistent with the full financial report of The Community Co-operative Store (Nuriootpa) Limited. The concise financial report cannot be expected to provide as detailed an understanding of the financial performance, financial position and financing and investing activities of The Community Co-operative Store (Nuriootpa) Limited as the full financial report.

The financial report of The Community Co-operative Store (Nuriootpa) Limited complies with all Australian equivalents to International Financial Reporting Standards (AIFRS) in their entirety. The presentation currency used in this concise report is Australian dollars.Note2:Eventssubsequenttobalancedate

No matters or circumstances have arisen since the end of the financial year, which significantly affected the operations of the Co-operative, the results of those operations or the state of affairs of the Co-operative in the subsequent financial year.

IMPORTANTNOTICETOMEMBERS

The Co-op has been advised by the Australian Tax Office (ATO) that any interest paid to members is now reportable. Where no Tax File Number is provided tax is to be withheld from all interest payments (currently at 46.5%)

Note: There is no obligation to provide your TFN, however if you do not provide one, tax will be withheld from your interest payments. Tax withheld and any interest paid will be reported to the ATO


Independent Audit Report

The accompanying concise financial report of The Community Co-operative Store (Nuriootpa) Limited, which comprises the statement of financial position as at 24 April 2013, and the income statement, and statement of cash flows for the year ended that date and related notes, derived from the audited financial report of The Community Co-operative Store (Nuriootpa) Limited for the year ended 24 April 2014, as well as discussion and analysis. The concise financial report does not contain all the disclosures required by the Australian Accounting Standards.

The directors of the co-operative are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards AASB 1039: Concise Financial Reports (including Australian Accounting Interpretations), statutory and other requirements. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the concise financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Our responsibility is to express an opinion on the concise financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the concise financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Co-operative’s preparation and fair presentation of the concise financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the concise financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

REPORTONTHEFINANCIALREPORT-

DIRECTORS’RESPONSIBILITYFORTHEFINANCIALREPORT-

AUDITOR’SRESPONSIBILITY-


In conducting our review, we have complied with the independence requirements of the Co-operatives Act 1997. We confirm that the independence declaration required by the Corporations Act 2001, provided to the directors of The Community Co-operative Store (Nuriootpa) Limited would be in the same terms if provided to the directors as at the date of this auditor’s report.

In our opinion the financial report of The Community Co-operative Store (Nuriootpa) Limited is in accordance with the Co-operatives Act (SA) 1997, including:

(a) giving a true and fair view of the co-operative’s financial position as at 31 January 2014 and of its performance for the year ended on that date; and

(b) complying with Australian Accounting Standards (including the Australian Accounting Interpretations).

Kennedy&CoCharteredAccountants

Paul Victor Jorgensen FCA

Auditor, Managing Partner

Unley, South Australia

Date 23 April 2014

INDEPENDENCE-

AUDITOR’SOPINION-


The Co-op continues to launch innovative programs designed to enhance the long term sustainability of The Co-op and to maximise the co-operative advantage. Several new programs have been launched this year and existing ones added to.

One of our most important programs and now into its second year. Co-opSafe is all about looking out for your fellow work mate. It’s a significant cultural change program that will enable The Co-op to build an improved culture of mutual co-operation whilst at the same time meeting all of its WHS legislative requirements.

The Co-op philosophy of Concern for Community is the guiding value behind Co-opSustain where we have partnered with Zero Waste SA and some of our key local suppliers to improve the environmental sustainability of our activities. Measuring our energy, water and waste usage and identifying opportunities for improvement will see financial and environmental benefits for generations to come.

Maintaining controls over the expenses to ensure each store runs efficiently and maximises its potential is what Co-opShine is all about. This program relates to everything you don’t see. It’s about continually improving our systems and process. Efficient gains are already being seen in Foodland with a warehousing review and the implementation of automatic reordering.

As a Co-op member you can save up to $500 on your annual health insurance bills. Together with Health Partners we have formed an alliance to give benefits back to you as well as the community. Visit our website on how to get more information on this exciting program. The aim is to launch several more programs along these lines that will assist the average member reduce their cost of living.

Giving Back


safe

sustain

shine

advantage

CONCISE ANNUAL REPORT . page 23CONCISE ANNUAL REPORT . page 22

This project has been developed in conjunction with Foundation Barossa. The Co-op is building an independent corpus of funds that each year will allow a retail scholarship to be awarded to qualifying Barossa based retailers that are not employees of The Co-op. The purpose of the Fellowship is to build retailing skills for years to come that add value to the Barossa overall.

This flagship project continues to give back to our community through our most important point of difference, our people. Whether it is assisting the main street gardeners through to supporting the Blazeaid effort with recovery from the Eden Valley fires, our people are passionate about assisting our community and Giving Back.

fellowship

care

Sporting Clubs Nuriootpa Football Club Barossa Valley Golf Club Tanunda Football Club Angaston Football Club Sedan Cambrai Football Netball Club Nuriootpa Netball Club Nuriootpa Tennis Club Tanunda Netball Club Barossa Tigers Junior Basketball Club Kapunda Netball ClubTanunda Cricket Club Light Pass Cricket Club Eudunda Robertstown Netball Club Barossa United Junior Soccer Club Nurioopta Hockey Club Freeling Football Club Juniors Schools and Associations Foundation Barossa Education TrustNuriootpa Futures Association Nuriootpa Town DayBarossa & Light Riding for the Disabled Hand in hand Family Centre (Lutheran Community Care) Barossa Enterprises Inc Nurioopta High School Disability Unit Barossa Pathways to Employment Expo Tanunda Town Band Barossa Men’s ShedKapunda Scout & Guide Support Group Nuriootpa Town Band Barossa Food IncBarossa Food IncNuriootpa High SchoolFaith Lutheran College Friends of the Barossa Library Inc Tanunda Lutheran School Barossa & District Pipe Band Other Donations Gift Vouchers awarded during the year up to Rental assistance to benevolent organisations

Benefits of Membership Rebates on Purchases for Year ended 31 January 2014 Interest on Funds Invested in your Co-operative Member Instant Rebates given in the year


Donations & Sponsorships 2014

$5,000 $1,600 $1,300 $1,300 $1,000 $500 $500 $500 $500 $500 $500 $400 $300 $300 $300 $300 $14,800 $10,000 $5,000 $1,500 $1,000 $1,000 $1,000 $1,000 $1,000 $750 $650 $630 $600 $550 $550 $500 $500 $500

$500$500

$27,730

$18,000 $45,000

$385,658$343,768

$1,188,000

NOTICE OF ANNUAL GENERAL MEETINGTHE COMMUNITY CO-OPERATIVE STORE (NURIOOTPA) LTD

Concise Annual Report

2014

THE COMMUNITY CO-OPERATIVE STORE (NURIOOTPA) LTD

Trading as The Co-op Heart of the Barossa 3 Murray St Nuriootpa 5355 Phone 08 8568 6000

www.barossa.coop

The CO-OP has donated gift vouchers to:Vintage Documentary Immanuel Lutheran School The Child’s Place Aust Fund Barossa 4WD Club Inc Springton Primary School International Children’s Care (ICC) Barossa Kapunda Primary School Nuriootpa Tennis Club The Compassionate Friends (SA) Inc Nuriootpa Community Children’s Centre Nuriootpa High School Vintage Festival Parade Nuriootpa Primary School Barossa 8-Ball Association Barossa Valley Floral Designers Club Angaston Kindergarten Barossa Carriages Rotary Club of Barossa Valley Anzac Day Breakfast Swan Reach Progress Association The Barossa Schools Aust Business Week Freeling Playgroup Sedan Hotel Greenock Primary School Marananga Brass Band Cancer Council SA - Biggest Morning Tea Springton Fair Tanunda Lutheran Home Swan Reach Area School Cambodia Mission Lutheran Community Care Open Day The Thomas Goodfellow Memorial Assistance Fund Petanque Junior Representative Kapunda Show Cookery Prize Angaston Netball Club Cross Roads Family Learning Centre Angaston Men’s Club Barossa & Light Table Tennis Assoc Inc Tanunda Hockey Club Barossa Pony Club St John’s Lutheran School Tanunda Lutheran School Seppetsfield Road Business Alliance Funday Sunday Eudunda & Dist Agri & Horticultural Society Inc Tanunda Primary School Ride to Conquer Cancer Seppeltsfield Winery Social Club Barossa Light & Gawler Football Assoc Umpires Barossa Valley Calisthenics Club Angaston Christmas Party Kapunda Music and Arts Festival BL&G Senior Colt Footballer of the Year Faith Lutheran College Silent Auction Nuriootpa High School Barossa Valley Hockey Association Freeling Primary School and Preschool Longest Lutheran Lunch Cambrai Area School Kapunda Scouts Relay for Life Team Nuriootpa High School Kitchen Garden Tarlee Primary School Tanunda Sub Branch RSL Eudunda Area School Angaston Tennis Club 200km Ride to Conquer Cancer Bike Ride Barossa Food Inc Mt Pleasant & District Sportsperson of the Year Robertstown Bowling Club BYTE Back Yard Theatre Ensemble St Jakobi Lutheran School Cancer Council SA - Girls Night In Kapunda High School The Royal Elec & Mech Engineers Assoc Social Club Cambrai Area School Xmas Raffle Friends of Mt Pleasant Hospital Moculta SALA Group Kapunda Musical Society Good Shepherd Lutheran School Angaston Bowling Club Eudunda Community, Business & Tourism Committee Nuriootpa Bowling Club The Vines Retirement Estate Social Committee Angaston Primary School Tanunda Cricket Club Barossa Valley Community Kids Fringe in Barossa Make A Wish Valley Hot Rodders St Petri Lutheran Church Centacare Youth Homelessness Service Lyndoch Tennis Club Inc Keyneton Concert for Fire Relief

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