KICI Annual report 2012 by Stichting KICI

A nnual Rep or t 20 12

Give everything you have got

Table of contents Executive Summary................................................................................................................................. 5 1. Mission, vision and strategy............................................................................................................... 7 1.1 Strengths and weaknesses of KICI – opportunities and threats................................................. 8 2. Governance and organization............................................................................................................. 2.1 Procedures and control............................................................................................................... 2.2 Cooperation with other organizations....................................................................................... 2.3 CBF-Keur.................................................................................................................................... 2.4 Keurmerk Goede Doelen............................................................................................................ 2.5 The Transparency award 2012....................................................................................................

11 11 12 13 13 13

3. Future vision....................................................................................................................................... 15 4. The Organization................................................................................................................................ 17 4.1 Personnel changes...................................................................................................................... 18 4.2 Absentees.................................................................................................................................. 18 4.3 Environment.............................................................................................................................. 18 4.4 ISO-certification........................................................................................................................ 20 4.5 Board......................................................................................................................................... 21 4.6 Letter of the chairman of the Supervisory Board...................................................................... 22 4.7 Supervisory Board KICI.............................................................................................................. 23 4.8 Organogram KICI per 1-1-2013.................................................................................................... 26 4.9 KICI BELGIUM bvba SO.............................................................................................................. 27 5. Stakeholders....................................................................................................................................... 29 5.1 Activities KICI 2012..................................................................................................................... 31 5.2 Means of communication.......................................................................................................... 33 5.3 Public Relations......................................................................................................................... 34 6. Collection............................................................................................................................................ 37 6.1 Door-to-door collection............................................................................................................... 40 6.2 Collection bins........................................................................................................................... 45

7. Fundraising.......................................................................................................................................... 49 7.1 Objectives of KICI’s own projects in Kenya................................................................................. 50 7.2 Evaluation and studying............................................................................................................. 52 7.3 100% impact.............................................................................................................................. 53 7.4 Return on investment................................................................................................................ 53 8. Donating............................................................................................................................................. 55 8.1 Projects in the Netherlands........................................................................................................ 58 8.2 Evaluation.................................................................................................................................. 59 8.3 KICI projects in Africa................................................................................................................ 60 9. Innovation........................................................................................................................................... 67 9.1 Textiles4Textiles........................................................................................................................ 67 9.2 TexSecond.................................................................................................................................. 69 9.3 Composite materials.................................................................................................................. 71 10. Abbreviated financial overview........................................................................................................ 75 10.1 Abbreviated financial report..................................................................................................... 75 10.2 Profit and loss statement 2012................................................................................................ 76 10.3 Multiple year profit and loss statements................................................................................. 79 10.4 Abbreviated cash flow statements.......................................................................................... 84 10.5 Collected kilograms and net profit........................................................................................... 85 10.6 Conclusion................................................................................................................................ 89 Accountability statement........................................................................................................................ 90 11. Annual accounts................................................................................................................................ 97 Colophon.................................................................................................................................................. 132

Executive Summary In 2012 the phrase â&#x20AC;&#x2DC;give everything you have gotâ&#x20AC;&#x2122; was relevant. It was also necessary to move the civilians to donate clothing for charity. However this caused the margins to be under pressure. The collected volumes of textile by KICI in 2012 was around the same level of 2011, however the efforts to collect the kilograms of textile was increased as well as the costs. The increase in the costs was mainly caused by the increased demand of municipalities for a (higher) remuneration for collection rights of textile. Another cause is the large investment in 2012 was to increase the visibility as well as the reachability of KICI therefore placing much more collection containers in 2012. Independent research shows that the citizins donate their clothing to give to charity and not to cover municipality expenses. The motivation for municipalities to demand a remuneration for the placement of the collection bins is understandable and doable. However that the municipalities chose collectors solely based on price is unfortunate. Due to the high market price for second hand clothing more parties are interested and enter the market, those parties generally do not take close care to the rules for national and international waste transportation. KICI ensures that the clothing collected by KICI is not processed, illegally, on the black market or by use of child labor. KICI has made important progress in 2012 in the foreign volumes. Through collection in countries such as Sweden and Belgium KICI is able to support charities and keep up with the innovation.

H.B. Markowski C.E.O. A.A.A. Jansen C.O.O.

tained, Ripped or s t ile collec t ion bin t h e K I CI t e x is t h e righ t place

ng re-weara ble? i h t o l c e h t Is g l ig h t This will brin d ay to som eoneâ&#x20AC;&#x2122;s

ing non re-weara ble? h t o l c e h t Is in t h e This ca n go ext iles sor t ing machine T 4 s e l i t x e T

s are t ra nsfor m ed into Used text ile source for new a va lua ble re much more c l ot h i n g a n d

1.â&#x20AC;&#x201A; Mission, vision and strategy has traditionally been a foundation that collects clothing, donated by citizens, and remarkets these donated apparels in sustainable manner hence making a profit which is donated to charities. In the current situation, as indicated in the executive summary, the donated clothing has a cost price in the municipalities. KICI sees this as an unwholesome development and therefore is focusing on sustainability and innovation. These areas of focus will add value to the KICI proposition and eventually support the earnings model of KICI. KICI wants to realize a higher revenue for non re-wearable* clothing because she acknowledges this specific segment is growing, the quality of the donated textile is slowly decreasing, the demands of the receiving parties are growing; this results into the decline in re-wearable textile. The KICI objective is to earn money to donate to charities. In addition KICI will enhance its own capital base and spread risks. KICI can no longer just rely on the income of collection activities. Therefore KICI is developing other activities to support the earnings model of KICI, activities include the sale of products that were created of recycled textile. This supports the earnings model of KICI as well as the environment: The optimal and high valued reuse of non re-wearable textile is sustainable. Moreover KICI is focusing on increasing the frequency of collecting grants and expanding the current collection activities.

*â&#x20AC;&#x201A; Non re-wearable textile and textile that is of such a deteriorating quality that the profit on this textile does not weigh up against the costs of transport abroad.

The annual budget and multiyear estimates are set after the approval of the Supervisory Board. The budget and estimates are periodically tested against the actual financial and market situation. The deviations are identified and explained, in case necessary the company policy will be amended midterm. Optionally KICI can investigate and analyze specific areas, such as innovation. The board and the Supervisory Board are in regular contact and often analyze if the midterm evaluation of the strategy should give cause to change the plans in the meantime.

1.1 Strengths and weaknesses of KICI – opportunities and threats Strengths

Weaknesses

- Innovation - Sustainability - Technical state of material - Service - Distinctive reporting - Response time in customized requests - Knowledge level of account managers - Network

- Price (small financial yield for municipalities) - Limited brand awareness - Ignorance of people with KICI’s own projects in Kenya - KICI does not have its own sorting company - Not enough social return projects - Not enough delegation of authority - Increasing need for empowerment

Opportunities

Threats

- Pop-up shops and exchange markets as alternative for street bins - Exploit the sustainability image - Cooperation with I:Collect - Expand the servicing aspects: do more, . offer more (i.e. clean up the mess around . the collection bins) - Bring the distinctive reports into the market - Expand and utilize the network - Market the knowledge of KICI through workshops, publications and presentations

- Economic recession, decrease in income of the street bins - Indifferent central and local governments - EVOA is barely maintained - Money hungry local governments - Public tenders on the basis of price - Charities are made subordinate - Dependency on external influences (world prices) - Current level of selling prices is at a historical high

For the purpose of KICI’s core activity, textile collection, KICI aims to have a high service level. Not just in the operational sense of the word, also administratively KICI has been known as a superb service provider for years. The number of complaints has declined in the past years and the quality of the collection bins are regularly check and improved if necessary.

The new market situation lacks a level playing field is a risk for KICI on which it handles various strategies. Among others the certification of the market parties involved is one of these. Moreover the law and regulations on collection textile needs to be clarified and controlled. KICI is closely involved on these two aspects. The consequence and risk of the lack in level playing field is the decline in ‘free kilograms, in other words the textile that does not require remuneration from municipalities or other beneficiaries. The implications of this decline are that KICI will have less money to donate to its own projects. The growing cause of concern is not merely impacted by the price developments of re-wearable clothing but the strong fluctuations in prices of non re-wearable clothing. Due to economic factors the price development for recycle material is whimsical. 70 60 50 40

Re-wearable

Non re-wearable

20 10 0

2006

2007

2008

2009

2010

2011

2012

Graph 1 Increase of the amount of non re-wearable textile over the last years.

The decrease in the amount of wearable clothing compared to the non-wearable clothing forces KICI to find solutions for the non-wearable clothing. KICI is leader in the market in finding these interesting solutions, specifically for large clothing brands it has solutions for the textile they have that is returned, overstock and company uniforms. Besides this KICI is researching new collection methods as KICI expects other collection channels will be used in the coming years. As mentioned, KICI is in various areas alert, aware of the current market situation and searching equal chances and principles to fine new sustainable solutions for the growing amounts of nonwearable textile, the certification of customers and the supply chain will be an important role. KICI also plays in on the trend of municipalities favoring parties that hold a ‘social component’. In other words, the possibility for a collector to create job opportunities within a municipality and provide them with a social return. KICI is developing models to be able to position themselves and support the municipalities better.

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2.â&#x20AC;&#x201A; Governance and organization The relevant company process have been described and recorded in the AO/IC handbook. This is the most important basis of testable control for the correctness of the relevant company information. In 2012 the described procedures were audited in the context of the ISO certification. This annual audit requires all the employees of KICI to critically evaluate the effectiveness of their current work activities and offers the opportunity to implement improvements. The described procedures also ensure the essential function segregation, clarity in responsibility and authorization levels of the employers. Monitoring of the result development takes places on a monthly basis through a detailed and elaborate management reports. In addition the status of current projects and new beneficiaries as well as grant requests is tuned with the development and availability for the objectives.

2.1â&#x20AC;&#x201A; Procedures and control KICI does not hold a procedure handbook on the planning and control cycles as solely a formal obligation. It is used to, where possible; improve the quality and effectiveness of company processes to ensure an optimal result to benefit the charities. KICI cooperates with BRG Accountants and Tax advisors. In consultation with and on request of the board of KICI the results are, periodically, critically assessed and advised on fiscal and prudency side. These measures meet the legal demands and obligations. KICI has 2 ISO certifications, an approved annual account and the CBF-Keur. Since 2011 BDO Audit & Assurance B.V. is the auditing accountant for KICI that takes care of the required approval statement on basis of their own investigation. The findings of the external accounts is recorded in the Management letter and discussed with the board and Supervisory Board. The statement is also a good instrument to improve the quality and effectiveness of the company processes.

2.2â&#x20AC;&#x201A; Cooperation with other organizations The cooperation KICI holds with its main beneficiary, the Dutch Red Cross, is a success mostly to gain brand recognition: citizens sometimes do not recognize KICI but they consider the Red Cross as the reason why they donate textile. In the meantime the textile collection through the Dutch Red Cross has been implemented. Through the network of the Dutch Red Cross they are able to contribute to the improvement of the market position of KICI. Furthermore the cooperation with the Fonds Gehandicaptensport (FGS) is entering into a new phase, one in which the clubs and associations will become more involved. An improvement area here is the communication. A direct relationship between the various associations and KICI will improve the situation. The past year quite a few collection bins were placed in various sport centers thanks to the mediation of FGS, however the collection hasnâ&#x20AC;&#x2122;t reached the full potential yet. KICI is initiating special promotions to increase the collected volume substantially.

The consortium Textiles4Textiles, of which KICI was a coordinator and secretary since 2009-2012, has achieved important work over the past year. The T4T sorting machine was successfully presented at a seminar in November 2012. Moreover the EU grant projects were successfully fulfilled. Unfortunately one of the participants and founders of this important project went belly up in 2012 therefore unable to receive the benefits of the success. .

Before the T4T sorting machine that can start selling in 2013, the machine needs to be optimized to increase the recognition of materials it can recognize pure fibers such as wool, acryl and cotton but needs to also recognize blends.

Presentation of the Textiles4Textiles-sorting machine during the ‘Closing the Loop’ Convention.

2.3 CBF-Keur In 2012 the retesting of the Centraal Bureau Fondsenwerving took place for the CBF-Keur. This was done on the basis of the renewed regulations of the CBF mark. KICI meets all the requirements of the CBF and can use the mark for the coming three years (until 1 July 2015).

2.4 Keurmerk Goede Doelen Keurmerk Goede Doelen annually retests the mark. KICI met all the requirements for the mark and can use this until the end of 2013.

2.5 The Transparency award 2012 Of course KICI has entered into the Transparency award with its 2011 annual report, the award can be given to social organizations that enter into fundraising activities in the Netherlands or that in other ways spend money and resources to social organizations or charities. Unfortunately KICI was not nominated, a number of improvements have been incorporated in the 2012 annual report.

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3.â&#x20AC;&#x201A; Future vision In 2013 the processing of non re-wearable clothing will gain more priority. The actual processing of textile fibers into new wearable clothing and other products made of composite material, are at the top of our list. Of course

will remain concerned with maintain the textile

collection in and outside of theÂ Netherlands, but not against every price! Ultimately the innovation activities are going to cost this year, however the turning point is coming close. The knowledge within the KICI organization and the co-creation with large clothing brands strengthens the process. KICI expects much in the coming year. Innovation . does not come with force, but sometimes testing the market with actual products is necessary to see an overall view. KICI is now actively doing this. The outcomes of this activity are difficult to establish however the board of KICI is hopeful. In recording the budgeted cost development, besides the volume and the price development of clothing collection, the possible cost and revenue of innovation and fundraising are of importance. The main threats are in achieving the budgeted collection levels; the risk is that (new) markets do not show the budgeted growth. In addition the current market conditions may lead to not realizing the budgeted selling prices, which is outside of the control of KICI. Another considerable risk is that municipalities are increasing their price for collection rights, for KICI this results into either losing the rights to collection in the municipality or increase theÂ cost of collection. The objective of KICI is to keep as many funds as possible for charity. In establishing the budget, using realistic figures, this is taking into account: as much funds as possible will go to charity. As said, the requirement of paying collection rights to municipalities is difficult, and impossible to estimate how this will influence the end result. The work activities regarding innovation, will be a priority the coming years, shall soon be covering the costs and be a positive contribution to the result of KICI. In the annual report an important milestone has been reached with the completion of the Texties4Textiles sorting machine.

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tes to KICI cont ribu world a sustaina ble

4. The Organization The office of KICI is located in The Hague, Colijnplein 20. The office is rented on the top floor of the office building and has been as ecologically equipped and sustainable as possible. The organization existed out of 21.7 fte’s in 2012. To empty and pick up the collected clothing KICI uses external transporters. The employees of KICI are from Dutch, Turkish, Iraqi, Surinam and Chinese origin. The total occupation in 2012 of KICI resulted into 14 men and 19 women, including the board and interns. The employees are generally well educated and fully equipped for their task. They are annually assessed on their operations; there are formal moments planned during the year to evaluate their development and guide where necessary. KICI is a small, active and flat organization; the internal communication lines are generally short. Decisions are made in agreement and in the best interest of the organization and KICI’s objectives. If so required coaching projects are initiated. In cooperation with the European Commission and her fund Social skills a workshop took place to enable employees to be able to better react to the fast changing social environment as a charity. During this workshop the full team received intense training to enhance their individual social skills, specifically aimed at improving the cooperation with various partners. This workshop resulted into remarkable results. In addition KICI supports the education of their employees for their area of expertise. . In consultation employees can attend seminars and workshops.

Core values of KICI - Idealism, a better world - Progress - Honesty, integrity, responsibility - Empowering

4.1 Personnel changes In 2012 three employees left the company: the project manager Research& Developments, employee of the financial administration and a secretary. In the meantime these vacancies are partly filled. A controller has been hired in the finance department; a new secretary has been hired on a part time basis. Moreover the Logistics department has been expanded with one fte, the commercial departments also grew with one fte. Both positions became vacant as a direct result of the expansion of work activities in the core business of KICI. Moreover an additional vacancy has arisen in the Project department; one fte is dedicated to the submission of funds for KICI’s own projects in Kenya, generating grants for charity projects and innovation projects.

4.2 Absentees The absentees with KICI in 2012 was 6,01%. This is substantially higher than the Dutch average which was 4,5% in 2012. In 2011 the absentees at KICI was 2,95%. This results from the prolonged sickbed of two employees who pushed the average up. Of course KICI is aiming to quickly integrate the sick employees back at work, together with the arbo. In the meantime both employees have, in good consultation, left KICI. Lastly KICI has integrated a new initiative for employees that have not been absent for half a year receive an additional vacation day.

4.3 Environment The total car fleet of KICI exists of cars with the A- and B- energy label. Since 2009 KICI has acquired the Honda Civic Hybrid as corporate car. This is designated for general use, and is specifically used to visit customers and suppliers. In 2012 one corporate car had to be replaced and a new company car was acquired for the coordinator of the Logistics department. With a mission to create a more righteous and sustainable world the C.E.O. chose the Toyota Prius as a new company car. This Prius Plug-in Hybrid has an extremely low exhaust and drives approximately 25 kilometers on electricity after which the Full Hybrid modus takes over. Hans Markowski is now able to visit the textile industry in his sustainable Prius. The number of business kilometers travelled (also flights and public transportation) are monitored as well as the energy usage, gas and water usage. An agreement has been made with Trees for All to compensate for the CO2 exhaust. Within the KICI organization there is much encouragement to use the bike or public transportation.

For the collection of the textile KICI cooperates with external transporters. One of these transportation companies, Van Bemmel Woerden B.V., replaced a Euro 3 car with a Euro 5 EEV-car. The used toners of printers and the copier are collected and offered to foundation AAP. Moreover the secretariat holds a separate collection bin for small electronic equipment, batteries and light bulbs. As soon as the bin is full this is donated to a collection area. Finally KICI also separates the paper and plastic from the regular waste. The monthly reporting for the municipalities that gave KICI the rights to collect clothing are done digitally as well as all other correspondence that does not require the regular mail. The promotions KICI was involved in the . past year are affiliated to its innovative objectives. An example is the co-signing of Green Deal, a sustainable initiative of the government and 13 other chain markets in . the textile collection industry. All parties . have as goal to decrease the portion of . textile in waste with 50% compared to 2011 . by 2015. Hans Markowski signs the ‘Green Deal’.

The Textiles4Textiles project was completed in 2012. The Textiles4Textiles sorting machine will be up and running in 2013.

On the ‘Keep it Clean’ day a KICI team hit the road during their lunch break to clean up the parking lot and the nearby mall. They came back with garbage bags back full of cigarette buds and other trash.

In the last quarter of 2012 a new project was initiated specifically for textile collection and recycling in Kenya. A very ambitious project namely ‘Africa Collect Textiles’ (ACT). KICI is of the opinion that the circle of collection and sorting in the Netherlands and exported to Africa can be closed by collection in Africa. KICI is unique in this approach to textile and first in the market.

In Village Market, Nairobi, 4 textile collection bins have been placed.

4.4 ISO-certification Since the start of January 2011 KICI has been ISO-certified 9001:2008 (internal quality processes) and ISO-certified 14001 (environment). KICI was successfully recertified for the ISO certificate 9001:2008 (internal quality processes) on January 10th 2012. In 2013 the ISO-certificate 14001 (environment) will be recertified. In the meantime an employee has been educated as a Quality and Environment coordinator. The overall quality handbook is up-to-date, environmental achievements have been defined and a customer satisfaction survey took place in November 2012. The municipalities give KICI on average an 8 for the cooperation.

4.5 Board As of November 1st 2010 the board is made up out of Hans Markowski: C.E.O. and André Jansen: C.O.O. Together they are responsible for making and executing the recorded policy, both with their own focus areas. The board regulations is the framework within they operate. In this framework the decision making process has been recorded and the responsibilities of the board for each focus area. On a monthly basis the board meets to discuss and evaluate important cases and decisions are made. Which decisions require prior approval of the Supervisory Board has been statutory recorded. The Supervisory Board receives the minutes and decision list of the board meetings. Moreover in consultation with the Supervisory Board the board has recorded guidelines regarding the information provided to the Supervisory Board. In 2012 the board and Supervisory Board met six times; these meetings are characterized with an open and constructive attitude. Next to these meetings there are also meetings between the board and the chairman of the Supervisory Board. Hans Markowski held three other positions in 2012: board member of the association Vereniging Herwinning Textiel (VHT) and member of the Certification commission of the VHT. . In addition he is the manager of Textiles4Textiles for KICI. André Jansen did not take up any other positions. Friday April 27th 2012 Hans Markowski was awarded to ‘Ridder . in de Orde van Oranje Nassau’, in The Hague during the traditional ribbon ceremony prior to Queens day. During the ceremony the many achievement of Hans Markowski in the clothing collection industry were acknowledged. Hans Markowski knew how to create a professional foundation of KICI which resulted into the possibility of large donations to charity. Hans Markowski was royally . distinguished in 2012.

4.6 Letter of the chairman of the Supervisory Board KICI has had a very decent year in 2012, even though the financial and volume results were under pressure due to the economic environment. Despite the general decline in collected kilograms of textile and the stiff competition on collection rights in various municipalities KICI was able to maintain the level of collected textile to last year’s level. The total revenues for charity is € 1,207,161. KICI aims to increase the number of collection points (bins). By focusing during the collection process through for example shops, companies, schools and private parties . the aim is to collect more textile. Also the partnership of the Red Cross is contributing . to this strategy. KICI plays a role in the development of innovative concepts to process clothing that is no longer re-wearable into usable products. This provides the opportunity to fully utilize all the textile in the collection bin (also the non-wearable textile) linked to commercial innovation, the re usability of the clothing increases. For example by created new products such as countertops or jeans. In addition KICI is co investor in the development of a machine that sorts on the basis of fiber types. These fibers can then be used for new textile. Transparency remains a core value of KICI. A good insight has been shown on the income of textile and the relative commercial efforts for these. The donation of monies to charity is done based on set criteria. KICI and its customers meet the EVOA regulation (Europese Verorderning Overbrenging Afvalstoffen). Furthermore KICI has had the CBFKeur for many years as well as approved financial statements. In the entire chain there is a tracking element of the goods. The Supervisory Board realizes that the current market situation has changed and that the result of 2012 (and previous years) will be difficult to achieve in 2013. Of course a special thanks to everybody that has shown their efforts in realizing the result for KICI. Charles Gevers Chairman of the Supervisory Board

4.7 Supervisory Board KICI The Supervisory Board functions as an internal control department within KICI that is responsible for the following tasks: • Supervise and evaluate the policy of the board and the general course KICI is taking • An advising and consulting role for the board • Acting as the employer of the board • Appointing or firing members of the board • Control and veto rights on strategic important decisions as written in the statutes • Arranging its own proceedings • Accountability for the way the Supervisory Board interprets its role • Discharge of the board Supervising and consulting In 2012 the Supervisory Board has held regular meetings with the board to discuss general course of business and some specific developments within KICI. The supervising and consulting has been regarding the below indicated areas. • Annual report and annual accounts 2011 • Audit report of the external accountant • Budget and year plan 2013 • Trends in the market • Market position of KICI compared to other parties in the last five years • Possible participations • Collection contracts • Strategic Marketing Communication and PR plan • Logistics • Update status innovation incl. business plan • Social responsibility policy • Multiple year plans 2014 – 2016 Statutory approvals All statutory approvals have been decided on by the Supervisory Board, the annual report and accounts 2011, the budget and plan 2013 and the multiple year plan 2014 – 2016. Overleg met en advisering van het bestuur The consultation with the board took place during the meetings of the Supervisory board. The meetings are attended by the board of KICI. In addition there were frequent conversations with the board and Supervisory board outside of the general meetings. Per the request of the board some of the members of the Supervisory Board have given their advice on specific topics. In addition a separate meeting had been scheduled to brainstorm on the long term vision and strategy for KICI. The consultation between the board and the Supervisory Board has an open and constructive approach.

Evaluation of the results The Supervisory Board has assessed the results of KICI as well as the board as good. Financially the results are lower than budgeted, but especially thanks to the continued professional, commercial and innovative efforts of the foundation on a whole more kilograms of textile have been collected. This results into a substantial donation to carefully and responsible charities! The objectives for 2012, financial results, the collected volume, transparency in the chin and the cooperation with the Red Cross have been achieved. Important steps have been made in the recycling of clothing however the commercial effect is lagging. Per the Supervisory Boardâ&#x20AC;&#x2122;s request the external accountant has explained the financial situation to the Supervisory Board with the board present as well. Aspects such as control, payment traffic and fraud have been discussed and approved. As well as the company policy regarding provisions and investments. At the start of 2012 the board was formally evaluated by Supervisory Board. In 2012 an internal evaluation of the Supervisory Board took place. The results of all these evaluations have been recorded. In June 2012 Charles Meivogel has resigned its position as member of the Supervisory Board of KICI. Of course we thank Mr. Meivogel for his professional and constructive contribution as supervisory for KICI. Structure of the Supervisory Board In 2013 the Supervisory Board will actively search for a new candidate, in which the preference goes to someone in the industry. If it is deemed necessary the existing profile (dating from 2008) will be adjusted. Within the Supervisory Board a recruitment commission has been appointed. In 2012 it was also the formal resignation year of C.F.M Gevers (chairman), J. Tammel (vice â&#x20AC;&#x201C; chairman) and S.A. Hertzberger. However all three of these board members have indicated that they would like to remain in their position for another four years and have officially been appointed for another therm. The board is happy with this development. Schedule of resignation of the Supervisory Board Name

Position

Appointed

Reappointed Year of Resignation

Eligible for Reappointment

C.F.M. Gevers J. Tammel S.A. Hertzberger Ch.P. Meivogel P. de Vries C.G.M. Brockhoven

chairman vice chairman member of board member of board member of board member of board

21-4-2008 21-4-2008 21-4-2008 21-4-2008 21-4-2008 2011

2012 2012 2012 2012 2010 2012

2019

2016 2016 2016 2012 (juni) 2014 2015

Supervisory Board per 1-1-2013 Drs. ing. C.F.M. Gevers (52), chairman TenneT Holding B.V, Arnhem, corporate procurement Other positions Vice-chairman and secretary of the board of Borstkanker Vereniging Nederland Chairman Cliëntenraad Diakonessenhuis Utrecht/Zeist/Doorn J. Tammel (65), vice-chairman Other positions Member of Supervisory Board Stichting Zorgbeheer De Zellingen Chairman Supervisory Board Wijktheater Rotterdam Chairman foundation Capelse Sportfederatie Secretary foundation Behoud van het Beijerinckgemaal Mrs. dr. S.A. Hertzberger (61) Ahold Europa, Head Quality and Product sustainability Other positions Member Supervisory Board of the Nederlandse Raad voor Accreditatie Council member Raad voor Dieraangelegenheden Chairman Supervisory Board Fluxus Centrum voor de Kunsten, Zaandam Mr. P. de Vries (52) Senior Jurist/process manager Sight Other positions Member Gemeentelijke Rekenkamer Capelle a/d IJssel Board member Bedrijvenkring Spijksedijk Mr. C.G.M. Brockhoven MBM (51) Director Communication Enexis Other functions Board member foundation Cultural Creatives Nederland Wages Supervisory Board The members of the Supervisory Board receive remuneration for each attended meeting. The board has decided that per 2012 to increase the attendance for the Supervisory Board. This entail remuneration for the chairman and vice-chairman € 400 per meeting; the other members receive € 270 per meeting. In 2012 six meetings took place.

4.8 Organogram KICI per 1-1-2013

Supervisory Board (5)

Board (C.E.O. C.O.O.)

Secretary (1)

Financial department (1) Communication & PR (1) Support services (4)

Marketing (4)

Projects (2)

Logistics (3)

Innovation (2)

KICI BELGIUM bvba SO (1)

4.9â&#x20AC;&#x201A; KICI BELGIUM bvba SO June 27, 2012 was the official inception date of KICI BELGIUM bvba with a social purpose. . This is the entrance position for KICI on the Belgium market. KICI is the sole stockholder and . has appointed Anne Dulak as manager. KICI BELGIUM has as purpose the donation of moneys received through textile collection to projects with a general social, cultural and other socialÂ purpose. During the first year Belgium has set up the framework to further expand the organization. The first collection activities have been assured and contracts have been made with municipalities, and a cooperation agreement has been made with the Flemish Red Cross, . the implementation will take place in 2013. During the coming year an analysis will take place regarding the brand identity, if Belgium should create its own identity or of a KICI Benelux organization is more desired.

True or false?

Each year the Dutch throws too much clothing and textiles in the trash, a total of 140 million kilograms.

True

False

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5.â&#x20AC;&#x201A; Stakeholders In 2012 KICI has made important progress in the area of Marketing and Communication. A main part of the activities focused on increasing the brandÂ awareness of KICI: a professional textile collector, a donator to charity, as knowledge partner in the area of innovation with her stakeholders. Professional textile collector KICI has been active as a textile collector since 1975. Throughout the years the work processes have been professionalized. KICI wants to make the collection of textile as easy as possible for municipalities, but also for KICI. Therefore a clear communication channel has been created in 2012 for the municipalities. An example of this ease in doing business with KICI is the webpage for municipalities: all collection bins and important information per municipality is set up on one page. In addition KICI is now actively search for municipal officials at conferences and fairs. As a result KICI was present at an anniversary conference of the Vereniging van Nederlandse Gemeenten. KICI has set as goal for 2013 to enhance the communication channels to represent the strong characteristics of a professional textile collector. Donating to charities Since the inception of KICI in 1975 it was able to donate 30 million euro to charity. As the collection bin shows KICI is collecting textile for, among others, its main beneficiary the Dutch Red Cross. Besides the Red Cross there are many more charities to which KICI donates. Often these donations are given to either her small projects in Kenya as well as local beneficiaries in the municipality where the collection of textile took place. KICI has communicated this clearly to municipalities by using the flyer Investment in a sustainable future. On www.kici.nl more communication took place in 2012 regarding the supported charities than in previous years. KICI wants to continue this trend in 2013.

Knowledge partner on textile innovation KICI has been a leader in the market regarding textile innovation. Internally it has a department with teams dedicated to think and create new applications to reuse textile. It is important to show this knowledge to the market to enable new cooperation agreements to stimulate innovation. By using various communication means such as flyers, the booklet ‘Innovation’ etc. KICI has summarized what KICI is and does. In 2012 KICI has appeared in various publications as a knowledge partner on innovation. In 2013 KICI wants to continue this path. Besides increase brand awareness it has also been an objective to inform people on the possibilities of textile collection. Traditionally it was thought that only re-wearable clothing could be put in the collection bin. Nowadays KICI can make new textile of non re-wearable clothing therefore it is possible to donate all types of textile in the KICI collection bin, so also your ripped jeans, t-shirt with a stain that won’t go out or your old jacket with a hole. This asks for a change in the behavior of the clothing donators. The marketing and communication activities in 2012 were aimed to make people aware of this new development. Changing behavior is a difficult task to realize, which can only be realized by constantly repeating the same message under the target groups. In 2012 KICI has taken this message and consistently included this in all its external communication. KICI will continue to do so in 2013.

5.1 Activities KICI 2012 ReDENIM Fashion show Target group: municipalities, partners in the chain, consumers In cooperation with Enviu and CREM KICI initiated the ReDENIM competition. This competition brought attention to the usage of recycled fabrics and to stimulate the target group for non re-wearable textile. In the ReDENIM competition four groups of students of the Willem de Kooning Academie and Hogeschool Saxion, Enschede competed against each other for the best designer clothing used of denim fabric. The final products of the four groups were presented through a fashion show in the center of Rotterdam.

Apparel swap conference on festival Werfpop Target group: consumers Werfpop is an annual festival in Leiden with approximately 25.000 visitors. Bands such as ‘Kraantje Pappie’ and ‘De Staat’ perform on the festival. Another part of this festival is the information market. KICI was present on this market to inform the visitors of the possibilities with clothing; moreover visitors could trade their clothing for another piece of clothing.

Apparel swap conference on ministry Target group: Municipalities and consumers In light of the Day of Sustainability ‘De Vergroening’ organized a sustainability information market at the Ministry of Social affairs and Employment. KICI was the biggest attraction on the market together with Repair Café. Employees at the ministry could swap their clothing for another clothing piece. Industry conference Environment Target group: municipalities, partners in the chain For the second time KICI was present at the industry conference of Environment in the Brabanthallen, Den Bosch. This year KICI presented the newest innovations on textile recycling. KICI showed: two recycled chairs, a street sign, clothing of G-Star, all made out of the fibers from collected textile. VNG-conference Target group: municipality In 2012 the anniversary edition of the conference of the Vereniging Nederlandse Gemeenten (VNG) was held at the Malieveld in The Hague. KICI was present to inform policy staff and councilors on the possibilities regarding textile collection, donation and innovation. With special attention to innovation, products were shown that were completely made out of textile that would have otherwise be burned. Fashion2 Based on ‘Fashion², Give clothing a second life’ the first big Fashion² initiative started on May 7 th 2012, during the clothing collection month. During this campaign month Fashion² and partners from the textile chain, organized promotions to raise awareness for the reuse and recycling of clothing. At the central station of Leiden a remarkable ‘clothing store’ was designed with used textile of good quality and clothing of celebrities. People were able to grab whatever clothing they wanted when they hung their own used clothing on the clothing racks. Celebrities gave their clothing advice and helped passers; they could use the mobile fitting rooms and large mirrors. KICI, partner in Fashion² provided, among other, clothing of Diederik Samson. Bibi Breijman en Lydia Hampel . looking for something suitable.

5.2 Means of communication Flyer New products of old clothing Target group: all KICI has achieved much with textile recycling. By internally researching the applications of used textile into products that are worth more than a washing cloth, KICI was able to make big steps forward in 2012. As a result of the research in 2012 various prototypes have been finalized created fully from textile fibers. Flyer ‘Invest in a sustainable future’ Target group: municipalities, partners in the chain KICI donates approximately one million euro to charity annually. To provide transparency regarding the charities KICI supports and what donation possibilities are possible, KICI has created a flyer. In this flyer all the options of donating to charity are explained.

Knowledge booklet Innovation Target group: municipalities For the third edition in the series ‘What you should know…’ the general theme was Innovation. Since a few years KICI has an expertise department; a few engineers are developing new applications for non re-wearable textile. KICI has bundled the results of the research and bundled this in a knowledge book. Travelling exhibition Target group: citizens The travelling exhibition of KICI answers the important question as to why textile belongs in a textile collection bin and not the general waste. An explanation on the main reasons to separate textile for collection are shown in the exhibition. The exhibition is able to move to various municipalities and organizations. Municipal web pages Target group: municipalities One of the unique selling points of KICI is the service it offers to municipalities. To enhance the service KICI has created a webpage of the municipalities on the KICI website. This page displays relevant information regarding the municipality as well as textile collection; this includes a map displaying the collection bins per municipality. Municipalities can easily adopt this webpage to their own website.

Social media Target group: municipalities, partners in the chain, consumers, charities and fundraisers KICI has created its own online community in 2012 by using various social media tools such as Facebook, Twitter and LinkedIn. By communicating directly to the members of the online community you create ambassadors that are positively promoting KICI within their own network. The result of this is an increase in brand awareness of KICI. 2012 focused on creating and setting up the online community, 2013 will focus on the content discussed in the online community. Newsletter Target group: all Through the monthly digital newsletter KICI actively involved its partners in its activities and creates a network of ambassadors. Advertising Target group: municipalities KICI created a new look and message for the advertisements. Through various advertisements KICI wants to create awareness of its USP’s in the area of innovation and service provider for municipalities.

5.3 Public Relations The emphasis was put on free publicity in 2012 due to the limited PR Budget. This entails publicity for which KICI does not have to pay. Free publicity Target group: all The focus was put on free publicity in 2012 as a result KICI has been mentioned many times in the local and national press. The media attention arose from, among other things, the current discussions about municipalities demanding money in return for collection rights of textile. KICI was able to clearly state its viewpoint regarding collection of textile for charities on radio, TV and various local newspapers. • KICI has a freelance press officer available, through its communication department, which helps manuscript publications in the local media. • Through social media KICI was able to create a strong link to its activities and the current trending topics. • With activities of third parties that are an extension of the KICI activities, KICI attempts to be present with an exhibition stand or other presentation tool, where possible it places additional collection bins.

KICI informs citizens through the municipality’s information guides (a page with current information) and through the door-to-door paper (mentions the results of the door-to-door collection) In addition information such as where the textile collection bins are and what happens to their donations is to citizens available through the website, e-mail or phone. On a monthly basis KICI informs the municipalities on the collection results and maintain contact with the policy makers on current issues. Three KICI-account managers visit the responsible municipal officials on a regular basis. The board is in regular contact with the cooperation partners, at a minimum six times a year but often much frequently. The KICI- strategy in making contact with potential cooperation partners is to focus on the highest rank in the organization and create a network with as many relevant employees. At KICI there are no volunteers present due to the fact that the work involved in within KICI exceeds then what you can ask of a volunteer. The customer satisfaction procedure is embedded in the ISP 9001 – 2008, which ensure the optimal result. Annually KICI investigates the customer satisfaction of the customers of KICI’s products and services. From random samples taken on the visitors of the KICI booth on the conference ‘Recycling 2011’ it appears that the presence of KICI was much appreciated considering the charities supported. However his main interest of the visitors was the hardware and technical equipment used in the collection and processing the textile. KICI did not participate in 2012. In 2012 KICI participated on the fair ‘Milieu 2012’ for the last time. KICI’s booth was well visited, the quality appointments were mainly made through the KICI employees. The conclusion has been made that KICI is better off at a less technical fair for the coming years. All activities in 2012 have supported to a better brand recognition of KICI. The website was often visited.

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6. Collection In 2012 the volume of collected kilos of textile remained at the same level as in 2011: 10,6 million kilograms (compared to 10,8 million in 2011). This volume is lower than budgeted (13,5 million kilograms) however taking the current difficult economic situation this is a satisfactory result. The sale of new clothing in shops has drastically declined. More often the retailers are forced to close their doors due to an extreme decline in turnover. Surviving the recession with an average decline of sales of 10% (according to the CBS) is hardly possible. This trend has direct but delayed influence on the collection results: there are fewer textiles to donate. Moreover stimulating citizens to take excess textile to the textile container instead of the waste is difficult in economic difficult times. These reasons make KICI happy with the end result of KICI in 2012. The stickers of the Red Cross on the collection bins together with the innovative solutions KICI has developed for non re-wearable textile has caused a positive effect on the collection result. Specialized approach The separation of waste, such as textile, in counties that vary from size, population density and number, requires a specialized approach. High separation percentages in municipalities with the urbanity class 1 are a big challenge. The cities that KICI collects the highest volume of textile, such as Amsterdam and Rotterdam, this specialized approach has proven valuable. The separation percentage is on average higher in areas where KICI organizes the collection well. In 2012 KICI collected a million kilograms of textile in Amsterdam (certain neighborhoods of the city). The total of collected textile in Rotterdam (certain neighborhoods of the city) was half a million kilograms.

Realizing LAP² - objectives Many municipalities have, in cooperation with KICI, achieved the new LAP²-objective to collect seven kilograms of separated textile per citizen. Among the main textile collectors KICI is the only one that has realized the collection of seven kilograms per citizen in multiple municipalities. The bigger the part in separated collected textile, the less will end up in the waste bin that makes its way to the waste incineration. Burning textile with the general waste has many consequences for the environment. The CO2 exhaust of textile has a factor 5 compared to other materials. Just a few improvements in the separation of the collection result have a huge impact. Therefore it is a positive development that municipalities are more concerned about the textile fraction policy. Specifically in this small fraction there is a lot to gain for the environment. 888,533

1,000,000 750,000

480,132

500,000

381,270

350,466

250,000

271,465

243,283

240,754

196,985

188,826

183,774

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Chart 2 Top10 of KICI municipalities with the best collection results achieved in 2012.

Sheets, blankets and ripped or stained shirts – the textile collection bin is the right place As per July 2012 all types of textile are welcome in the KICI textile collection bins. Due to the usage of the automatic sorting machine pure mono fractions can be sorted of which new clothing or new products can be made. This change in the policy is announced by bright yellow stickers on the collection bins. The revenue of the textile still goes to charity.

Closed loop To recycle worn clothing into new clothing a huge number of the same fabric is required. These mono fractions are unraveled to fiber level and spun again. Previously the sorting of clothing based on composition and/or color was done manually. Due to the high wages in Europe it is difficult to compete with the new resources from Asia or Africa. To create a sustainable clothing industry in the Netherlands, KICI together with partners in the industry and a European subsidy, the Textiles4Textiles machine was developed. The machine can quickly process huge volume of pure fractions of textile for recycling.

The T4T-sorting machine can quickly process huge volume of pure fractions of textile for recycling.

Re-wearable textile One billion out of the entire world population have a two dollar a day income or less. Second hand clothing on local markets is often their only access to good quality clothing. Therefore these clothing will be shipped rather than recycled. Where this is not possible, recycling it the best option to maintain the resources and reduce the volumes of burned textile. 135 million textile ends up with the waste in the Netherlands alone. KICI wants this part of textile from the waste to the textile collection bin. Therefore KICI actively participates in the earlier mentioned Green Deal. Donating to charity A part of the collected textile is of such good quality that consumers in East-Europe and Africa are willing to buy this. The revenue made in the sale of the clothing KICI donates to charities in the Netherlands and abroad. Projects that contribute to a fairer and sustainable world can qualify for donations of the foundation. Donating textile to KICI always means profit for humankind and the environment. Except carpet this belongs with the bulky waste. All the other types of textile and footwear are welcome in the KICI containers.

6.1 Door-to-door collection Keep all the textile from the general waste The combination of sufficient door-to-door collections and creating possibilities for citizens to donate into a textile collection bin are of vital importance to get all the textile from the waste. If municipalities want to meet the LAP² – objective and collect a minimum of seven kilograms of separated textile per inhabitant, everybody should be given the opportunity to separate the textile, also the citizens that can’t reach the collection bins. Increased interest of the municipalities In 2012 KICI was able to increase the total amount of collected textile through door to door collection. Municipalities choose for expertise and experience; through the collection of KICI, a reliable partner, they are ensured to problem free collection and clear, timely reporting. Therefore more municipalities chose KICI as their textile collector. Showing people their own strength In economical difficult times are no longer self-evident, therefore more people require a push in the right direction. KICI has been working for many years with people that have a distance to the labor market, also in the door to door collection process. KICI guides them in spreading the collection bags with the end goal to flow into a permanent job. The donation of textile to KICI contributes to creating a more sustainable world. KICI also aims to perform its door-to-door collection activities without leaving an ecological footprint. 1,400,000 1,200,000 1,006,000

1,000,000 806,000

800,000 600,000

565,000

400,000 200,000 0

2010

2011

Chart 3 Collected door-to-door kilograms in 2010, 2011 and 2012.

2012

Revenue of the Collection Campaign for SOS Kinderdorpen In September 2012 people could hand in their old shoes with Schoenenreus and they would receive a discount on the new pair bought. The revenue of this campaign, in cooperation with KICI and Schoenenreus, was donated to SOS Kinderdorpen. This campaign was very popular. In November Monique Smit and Nina Jongerius accepted a check of € 8.000. This money will be used to realizing a safe house and good education of the children worldwide. KICI has collected all the donated shoes from the Schoenenreus entities. These shoes will be given a second chance as they are recycled into new products.

From the left to the right: André Jansen (KICI), . Monique Smit, Nina Jongerius (SOS Kinderdorpen).

Procurements In 2012 the market was characterized by many discussions regarding the right of municipalities to demand remuneration to textile collectors for the right of collection. The circumstances in the industry have hardened. Due to the fact that municipalities are demanding a high remuneration, charities have to bid against each other in procurements which as a result mean less money for the charity. In addition KICI is of the opinion that the regulation regarding the collection of textile, namely the EVOA, is frequently breached. Not at every cost? The collected textile requires to be sorted in the Netherlands by a certified sorting company, before it can export the textile fractions derived from the textile. KICI also needs to take responsibility for the consumption, in other words the non re-wearable textile needs to be sorted in the Netherlands. It is only then possible to have these subspecies can be an actual resource for useful applications. KICI finds it acceptable that municipalities demand remuneration for the costs they incur (for example rent for the underground containers). However finds it difficult to understand the municipalities provide the right to collect to the highest bidder, this stimulates the sale of unsorted textile. Because the cost of sorting in foreign countries is lower (due to wagesenvironment costs). Companies who do this have been able to pay higher prices to the municipalities in the Netherlands. KICI is not intending to change its processing of textile.

Municipalities have appointed KICI as collector because they are ensured that the processing takes place in the Netherlands, according to the EVOA -regulations. Progress Through knowledge sharing and education KICI wants to show that there is more to gain by the municipalities then merely the remuneration. Municipalities and KICI share a common goal: separate the textile from the waste. Eighty percent of the citizens that take the effort of separating their textile are not doing this with the sole purpose of helping the charity. The re-wearable clothing should go to countries needing cheaper clothing. Non re-wearable clothing should be recycled, preferably to a resource for new textile. This would be a great opportunity for municipalities to support these charity organizations that are making these kinds of revolutionary developments by giving the right to collect in their county. At the start of 2013 State Secretary Wilma Mansveld of Environment has given a signal: â&#x20AC;&#x2DC;Municipalities are fine to give a bill to the clothing collectors to pay for the costs made. However to settle other costs as well is crossing the line.â&#x20AC;&#x2122; KICI trusts that the municipalities consider the opinion of the State Secretary carefully and will not force charity organizations to look for new income in times of budgeting. Moreover this is not the reason that the citizens are donating the textile. Following this clear opinion of Wilma Mansveld and the cry of attention of various parties in the Tweede Kamer for this subject will hopefully result into a positive outcome and education of the State Secretary to the municipalities. On to a charity and innovative 2013 taking into consideration the EVOAÂ regulation. Changing society, alternative collection channels The society is changing so quickly at the moment that it can be considered a time of a system change. If charitable organization desire a role in the society in the future than they will need to change as well, and establish an even closer cooperation with its charities and other industry partners. KICI maintains monthly close contact to its main beneficiary, the Dutch Red Cross. Employees of both organizations are cooperating together to increase the collected volume of textile therewith increase the income.

Used jeans were also collected in two pop-up stores.

The second important partner of KICI is the Fonds Gehandicaptensport, for which KICI develops various activities to grow the cooperation, create attention for the brand and increase the collected volume of textile. KICI takes care of the collection of textile to benefit the Fonds Gehandicaptensport, and therefore place approximately 220 collection bins at sport clubs across the Netherlands in 2012. Together with the Fonds Gehandicaptensport a marketing and advertising campaign was set up and strategies were developed. In 2012 KICI, again took place in the annual ball for the gehandicaptensport (this year it was themed in the ‘Strength of Orange’) maintenance and expansion of the network. The citizens appear to be open to alternative collection channels. KICI is currently testing these, in cooperation with international partners such as I:Collect. This Swiss organization developed a unique concept with a ‘return program’ in shops: when handing over a voucher the consumer would get a discount on the price of new clothing. In this alternative manner of collection the consumer receives remuneration for the donated clothing. KICI aims to hold a multiple year cooperation agreement as exclusive agent for this system within the Benelux. The citizen/consumer demands the charitable organization an explicit guarantee for efficiency and effectiveness. Therefore KICI has tightened its charities policy in 2012.

6.2 Collection bins Developments with the KICI collection bins In 2012 KICI focused on improving the existing textile collection bins and developing new ones for both underground and above. • Underground collection bins: KICI gave bin maker Bammens the KICI-Keur as a result of the development of their new underground collection bin. This bin also keeps the clothing dry when it rains cats and dogs. (Qualitative improvement of used clothing). Other manufacturers are also developing underground collection . bins and will enter in 2013 into an audit to see if they can receive . the KICI-Keur as well. • Above ground collection bins KICI developed, together with manufacturer Bauer, a new textile collection bin according to a new principle. The collection bin is modular meaning it can be disassembled on location, therefore it is possible to transport more collection bins. Thanks to the modular character it is easy to adjust the collection bin to specific requirements. As a pilot KICI has developed anti-stick boards and mounts these onto the collection bin. Panels with a special designed surface structure should discourage pasting posters on the containers hence lower cleaning costs and a visually more appealing container. All the other

improvements KICI has implemented can be incorporated into this new collection bin. These applications ensure a minimal fraud percentage and a high level of quality of the clothing due to water proofing.

Latest KICI-bin with anti-graffiti panels.

Serious consequences of illegal import of heavy fireworks on a KICI-bin.

Vandalism New Year’s eve 2011-2012 Again KICI cooperated well with the municipalities during the firework period characterized by New Year’s. By closing the collection bins between Christmas and New Year’s the number of ruined collection bins decreased. The year before there were twelve notifications of burned down containers, this year this was only seven. This is remarkable considering the increase in total collection bins over the past year, on average 20%.

Did you know…?

50 percent of the collected textile can be worn again and 50 percent needs to be recycled.

Theft More often KICI is confronted with theft of collected textile. The well-known ‘fishing’ from the KICI collection bin is a current problem. With development of collection containers they are trying to avoid theft unfortunately the individuals that go fishing are becoming more inventive as well. On a regular occasion self-fabricated tools are found next to the collection bin used to fish for clothing. In 2012 the collected volume of textile through door-to-door collection rose with 25%; however this collection method is very theft sensitive, especially in the larger city. Individuals drive ahead of the KICI vehicle to collect the bags themselves. The increasing value of collected textile is motivating other to steal. An indication of the volume that will is affected by theft is 100-150 ton. Unfortunately the police have this problem low on their agenda and not often priority is being given. Complaints In 2012 KICI’s department logistics received 429 notifications, which is 44 times more than 2011 (385 notifications). The most important reasons for this increase in notifications are listed below. • A peak in the notifications took place in March as one of the drivers could not be take its route due to illness. As a result this gave temporary delays in servicing. In addition that month many containers were exchanged for new ones, this resulted into many detours. • Another increase in notifications was May; this was caused by various vacation days and the bad spring weather. • September showed an increase; two of our drivers had to change containers. In addition a new crane was introduced which led to two weeks of detours. KICI is well available for lodging complaints, mainly through the free 0800 number and the phone number of the office which automatically connects to voicemail when someone calls outside of working hours. A complaint form is available through www.kici.nl and info@kici.nl. Finally you can download the complaint procedure under the heading ‘Questions, notifications and complaints’. Of course KICI is putting effort into improving the response time to complaints. Beneficiaries In 2012 no complaints were recorded.

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7. Fundraising Financial donations Until 2012 the funds

received completely relied on the money

raised from clothing collection. Nowadays municipalities are often demanding a financial remuneration, this results into margins under pressure consequently the donation to charities is under pressure. Therefore KICI has been raising funds since mid-2012 to finance its own projects in Kenya. Strategy KICI developed a fundraising strategy and identified the various target groups. According to market research, at the moment, only one on every ten citizens is aware of what KICI does. Therefore the strategy is focused on major donators (private individuals and firms) from the KICI network, equity funds and subsidies. KICI aims to set up a strong frame work and expand from there. Simultaneously the Marketing and Communication department is working on increasing the brand awareness. This could benefit the fundraising in 2013.

Target group

Short term (june-december 2012)

Medium term (2013)

Long term (2014-2016)

Companies

Adopt overstock . and other goods

Co-creation

Expand relationships

Funds

Apply for grants

Cooperate and . apply for grants

Municipalities Offering projects

More social . return projects

Maintain relationships and customized expanding

Consumers

Binding of major sponsors (‘Friends of KICI’)

Organizing events to expand number of donors and increase brand awareness

Promote brand . awareness

Own h st rengt

7.1 Objectives of KICI’s own projects in Kenya Considering the current developments in the market, KICI expects less money will be available to donate to its own projects or other charities. Therefore KICI is helping its local partner in Nairobi, Dove International, to become independent by setting up its own profitable projects. The three different projects that KICI has set up in Nairobi and surroundings are part of this.

Youngsters gain work experience in a social Knitting Project.

Within the Knitting Projects about 200 youngsters have been educated.

The objective of KICI is conservative: financing (from KICI’s own network) of the third Knitting Project in Nairobi, with a minimum of € 25,000. KICI had started such employment projects with Dove International before, supporting the youngsters in Limuru and Karen. In these projects youngsters are gaining work experience as a social knitting company and simultaneously earn money. Within the Knitting Projects about 200 youngsters have been educated.

In 2013 KICI will continue to focus on supporting the following two new projects: The ‘CSR Workplace Program’ and ‘Africa Collects Textiles’ (ACT!) (Textile collection in Kenya).

KICI provides in collaboration with Work on Progress the training of CSR coach in Kenya.

The first project educates Kenyans to MVO coach; this contributes to the employment and sustainable undertakings in Kenya. The ACT! Project also is closely linked to the mission of KICI. The project has as goal to keep the ‘used textile’ of the streets and avoid it gets burned, so it can be used as new resource. Sustainable projects which at the same time will also create employment.

Recycling in Kenya, sustainable and stimulates the Employment.

7.2 Evaluation and studying It was more difficult than initially assumed in receiving subsidies for the Knitting Project. . Not because of the validity of the project but because KICI also functions as a fund. However thanks to a fund raising letter of the board to all the partners of KICI, such as customers and service providers, € 25,000 was collected. A remarkable result! This project will be set up in the first quarter of 2013 and mid-2013 the first trainings will commence. It is expected to be profitable within 8 to 9 months, and can be a positive contribution to the local partner Dove International. In 2013 KICI is searching for closer cooperation with funds. Requesting subsidies remains meaningful when focused on funding on national or international level. Subsidy possibilities are interesting for the sustainable and unique textile innovations of KICI. Many national and international funds have interest in supporting sustainable textile recycling.

As a result KICI received a subsidy of AgentschapNL in 2012 for its innovation activities. The ‘Recycle for Humanity-project’ is a good example in which KICI works together with TU Eindhoven and the Dutch Red Cross on the development of a shelter of shelter product of recycled textile that can be used during natural disasters or war. In 2013 KICI hopes to see the fruits of the various requests entered in 2012.

7.3 100% impact Responsibility, honesty and integrity are the characteristics of KICI. As KICI collects used textile to raise funds, it is of the utmost importance that every euro donated ends with those that need it the most. KICI pays the salary of the fund raiser through the income of textile collection, the fixed costs fall under the marketing and communication budget. Thanks to the profit of the clothing collection the received financial donations are 100% guaranteed for projects. KICI meets the requirement of the 75% norm in fundraising as acknowledged in the regulation of Centraal Burea Fondsenwerving (CBF). KICI conforms to the Dutch privacy regulations and the Code Wijffels, in other words the code of good governance with fund raising for charity organizations. The department fundraising and the board are supervising this. KICI respects, informs and thanks its donators and the other interested. At any time KICI uses proper methods and is genuine in fundraising.

7.4 Return on investment The costs of fundraising are relatively low at first instance primarily by working digitally and with social media. In comparison to 2011 the costs have increased due to the salary and education of a new employee. These investments were rewarded in 2012. KICI expects to realize a return on investment of which more charity projects can be initiated.

True or false?

The production of one kilogram of cotton costs about 11,000 liters of water.

True

False

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e FGS h t r o f o ls … bu t a to suppor t m e h t g e n a bl i n led a t hle tes b a s i d e th

8.â&#x20AC;&#x201A; Donating

reuse, s t i m u l a t es d n a s d s f un oll ec t ing a nd n era te t ies, by c i v i t c K I CI g e a cl ot h i n g , ot h er K I CI c o l l ec t ed a mong y b e h t of if ia bl e socie t y. ke t i n g l e a n d j us t b a re m a r n i a t s u l iz e a s to rea

Policy charities In 2011 KICI developed its company policy on charities; this was created as there was a need to select projects to donate to on a standardized basis ensuring they support the

vision. As a result procedures have been set up meeting the

requirements of the Internationale Organisatie voor Standaardisatie (ISO). On an annual basis BDO Audit & Assurance B.V. is checking the ISO procedures and tests the legitimacy of donations; last year BDO approved the annual accounts of 2011. The policy relating to charities is supporting the mission of KICI to support sustainable social projects that focus on improving the social position of the less fortunate. KICI assess a project on the basis if the project will connect different groups and set them in movement, as well as sustainability and innovation. The aim is to support as many projects as possible that meet these criteria. In addition KICI ensures the charity has enough capacity to execute the projects. From experience it has shown that smaller foundations require different help from KICI than the larger foundation. KICI is an organization that can support charities in various manners such as sharing knowledge, using its network with goods or money. Projects that focus on improving the social position, increase social cohesion, and the coherence of a society. Off importance is that the various layers of a society remain in contact with each other therefore increase the opportunities for citizens and their independence. The main interest is improving the income position of the less fortunate. KICI is specifically supporting the projects for the less fortunate groups in the society. This regards people without economic independence and little chance on the labor market.

The Dutch Red Cross as main beneficiary KICI is proud to call the Dutch Red Cross its main beneficiary since 2009. With over 300 local departments and more than 35,000 volunteers the organization plays a vital role in the Dutch society. Examples of these social local activities are plenty such as providing first aid on events and offering social assistance to people in the neighborhood.

The Red Cross Leerdam department organized a fun day for the elderly and disabled.

The Red Cross is desperately needed abroad in war zones and natural disasters. The Red Cross helps in Syria and Africa. Moreover through the Prinses Margriet Fonds more focus is put on the preparation of people in case of natural disasters. Furthermore much money was raised through the glass house promotion (3FMSerious Request) for baby’s that need help to survive.

Handing over of a voucher for the ‘Prinses Margriet Fonds’ by André Jansen (KICI) . to Mrs. Mr. I. Brakman, chairman of the board of the Dutch Red Cross.

In 2012 the gross amount available for donation was € 1,065,761. Below the allocation of the donations, by theme, by category and destination.

24%

25%

Donations by theme Sustainability

Education Self reliance Liveability

44%

20%

25%

Donations by category Donated clothing to charity Main beneficiary

34%

21%

31%

Earmarked projects Other

Destination of the donations National International 69%

8.1â&#x20AC;&#x201A; Projects in the Netherlands Food bank Amsterdam KICI lets the customers of the Food bank Amsterdam once every two months choose and pick between the secondhand clothes for free. Beforehand the clothing is sorted by the certified sorting organization Lowie Tex in Amsterdam. The customers of the Food bank in Amsterdam are delighted with this opportunity as it gives them some financial breathing room. Unfortunately this project has some organizational issues, on one occasion the transporter of the clothing was left for a closed door at the food bank because there was no one present. During the first quarter of 2013 the activities will be evaluated. Ideals Compass Local sustainability is gaining importance KICI has started a cooperation with social entrepreneurs of Greenwish, the program Learn for a Sustainable Developement (LvDO) with the Dutch branch, a number of West-Brabant municipalities and the organization Gemeenten voor Duurzame Ontwikkeling. For each participating municipality a clear overview is made of organizations active in sustainability. Following this it is connected online and room is given to execute the local initiatives. This project commenced in the end of 2012 and is expected to be finalized in 2013. If this is successfully completed this can be expanded to other regions in the Netherlands.

At the workplace of a fashion label long-term unemployed women are put in their own strength, making them able to enter the labor market successfully.

Clothing dispensary project for job searchers In 2012 KICI, again, collected second hand business attire through the accountancy firm KPMG, for the Dress4Success project. This great initiative started in 2009. Dress4Success is created for those people with a distance to the labor market with the goal to support them during job interviews by receiving two pair of business attire for free. This increases the realization of a job as well as it stimulates their self-confidence. Unfortunately only one collection day took place at KPMG in 2012 and the volume of attire collected was disappointing. KICI and KPMG are evaluating this outcome to increase the result for 2013.

8.2 Evaluation Evaluation charity policy In 2012 the charity policy of KICI underwent an evaluation via testing the supported projects in 2011. One of the initiatives from this evaluation is informing the projects that don’t meet the KICI criteria, and guide them in how they can meet the criteria. The total amount available for charity was in 2011 € 1,163,728. The percentage of projects that met the criteria was 75% and the projects that didn’t was 25%. This has led to the decision that some of the projects that are currently support either need to meet the requirements or will not be supported in the future. The KICI charity policy has been tested in practice. More often KICI is confronted with sizeable charities that are not capable to indicate to which project the money donated will support. An assessment of the project in the charity policy is therefore not possible; in such cases the strategic value of supporting these charities will be analyzed. It is expected that KICI will have less means to support its own projects and charities considering the remuneration municipalities’ demand for textile collection rights. As a result of this commercialized development in the textile market KICI was forced to put the new requests for donations on hold in the fall of 2012. In the beginning of 2013 it is expected that the application procedure can resume.

8.3â&#x20AC;&#x201A; KICI projects in Africa Kenya strategy To streamline the activities in Kenya a new strategy was established in 2012. The important goal is: making its partner organization Dove International independent. At the same time the kind of projects that will be supported by charity will need to have a link to social entrepreneurship in the area of sustainability. In consultation with Dove International it was decided to focus on the execution of five projects. These are 1) the third Knitting Project, 2) . the CSR Workplace Program, 3) the Textile Collection project (ACT!), 4) the Textile and Entrepreneurship project, and 5) the Gitambaya Village project. In light of the co-financing KICI will start searching in 2013 for new partners and donators that will contribute to these projects either by their network, knowledge or money. Partner organization Dove International Dove International is a charity organization in Kenya. For the execution of charity projects KICI has been working together with Dove for many years. The organization behind these projects is in cooperation with three coordinators of Dove and six university trainees. Except for the coordinator of the Textile collection project all people involved have the Kenyan nationality. The trainees chosen for Dove International are done so in cooperation with the university in Nairobi and hold an underprivileged background. Within their area of expertise they contribute much in these projects. In exchange for their expertise KICI supports the students with the tuition for their education at the university.

Team Dove International: Tahnee Fraser, . Alex Musembi, Alex Mwaura, Carolyne Makheti, . Elmar Stroomer, Margaret Khasiala, Alice Wainaina.

Project 1: Knitting Project This project employees underprivileged Kenyan youngsters in a social company that . makes school uniforms, sweaters, pants, socks, hats and scarves. This project is executed in two locations, an orphanage and a school. Both locations are profitable, the profit goes to the respective orphanage and school. This supports their independence and continuity. The required knitting machines and the maintenance of such machines are financed by a partner in the second hand textile chain; the Kenyan weaving mill Spinners & Spinners. The areas of marketing, production, purchasing, accountancy and management much experience has been gained over the years. The experience can be well used for the third knitting project. The third project will be launched in 2013 by Dove; the profits generated will be used for Doveâ&#x20AC;&#x2122;s goals. The Knitting projects in Limuru and Karen are already . profitable and contribute to self-reliance.

Project 2: CSR (Corporate Sustainability & Responsibility) Workplace Program in Kenya Partners at the end of the secondhand textile chain requested to use the knowledge held on social responsible entrepreneurship in Africa. As a result KICI, the CSR-expert WorkonProgress B.V. and local partner organization Dove International launched a program in 2012 to teach companies in East-Africa to undertake socially responsible: the CSR Workplace Program (CSRÂ WPP). This method is innovative and realizes a new kind of development cooperation. Why CSR? Our generation creates worldwide problems by how we live our lives. Climate changes, air pollution and a lower water quality are important risks for the environment. As well as the economic volatility and social inequality is a result of our dealings. Companies and organizations can play an important role in the acknowledgement and tackling these problems. Those do not only provide a favor to the world, it has been proven that sustainable companies fare better in times of economic crisis, innovate more and are better prepared for the future. The P of Profit is not forgotten. A company is not just sustainable: it requires internal trust and involvement as well as external cooperation and positioning. Companies that are leading in social responsibility are ensuring a positive future. In 2012 twelve Kenyan CSR coaches have been trained. Starting this summer the coaches are selling the CSR WWP and implement this at local companies. The CSR WPP contains a number of CSR themes defined to East Africa: human capital, social integration, pollution, waste, health, diversity, mobility, water and a green office and energy. By integrating these themes into the business policy the CSR WPP stands for a turnaround in the company culture. This results into sustainable, social organizations.

In January 2013 the CSR WPP pilot projects of the start of the USIU University, the Sankara Hotel, a procedure of hygiene and cleaning products Diversey and the childrenâ&#x20AC;&#x2122;s hospital Gertrude Children Hospital.

Employees of Brand, Kenya, participated in the CSR-training in 2012.

Project 3: Textile collection in Kenya Many summer clothes of the Dutch and other Europeans end up in Africa where the clothing is completely worn out. Afterwards the clothing ends up at the garbage dump or on the street. The processing of waste is a huge problem in developing countries. The garbage dump or waste burning are not environmental friendly solutions. This can result into health problems for neighbors. The burning of textile waste causes high CO2 exhaust and other harmful fumes. Therefore KICI wants to contribute to improving the processing of textile waste and holds the entire textile chain accountable for possible damaging consequences: fabricators, retailers, second hand textile collectors, textile sorting organization, textile customers, consumers and even charities. KICI has been approached by a number of big international parties in the textile chain for a solution of the problem. Nowadays textile companies are held more accountable for what eventually happens to their products. The textile collection project which is coordinated together with I:CO KICI hopes to contribute to starting to close the loop in the textile chain and improve the sustainability in developing countries. Eventually the project goal is not just the collection of textile in Kenya but also processing this in a sustainable manner. The final goal is to recycle the collected textile in Africa to new products such as emergency blankets for the Red Cross or cute bags for local use. This also creates employment in Kenya and East Africa.

Textile collection in Kenya aims to collect all the excess in worn textile in the country, at a later stage also including other countries in East Africa. Kenyans can donate their textile in various places (schools, universities, churches, clothing markets and shopping malls) in exchange for a small financial remuneration which can result into a nice additional income. Shopping chain Nakumat in Kenya is the first partner of the ambitious project with about forty stores.

Presentation to the Environmental

A teacher challenges the students to come up with new Kenyan product

Design students at the Technical

concepts.

University of Kenya.

This project started in 2012 and over thousands of kilograms of textile has been collected. Dove hired a project leader to coordinate this project successfully. It is expected that, with the help of good partners, a collection and recycle structure can be implemented in 2013.

Elmar Stroomer (Dove International), . Hans Markowski (KICI), . Stephan Wiegand (I:Collect).

Project 4: Textile- and Entrepreneurial project Various clothing retailers donated clothing to KICI in 2012. The biggest donation came from the Marlies Dekkers Group. This made KICI, Dove, and especially the Kenyan women very happy. KICI shipped all the donated clothing to Kenya. The clothing was sorted and a market price per product was established. Following this process a few groups of women, led by four coordinators, sold the Marlies Dekkers in various regions of Kenya. The women can keep a part of the profit. The other profits are donated to women groups and various projects for women. Help for these women are very important because they generally have a subordinate position in the African society. KICI and Dove hope to move other organizations to donate their excess textile to this project. In 2012 approximately 60% of the total of Marlies Dekkers donated clothing was sold and it is expected that the rest will sell in the first quarter of 2013.

The four coordinators who led the womenâ&#x20AC;&#x2122;s groups who sold the clothes.

Did you knowâ&#x20AC;Ś?

Annually KICI collects 11 million kilograms of textile (Total volume in the Netherlands is about 80 million kilograms).

Project 5: Gitambaya village-project In cooperation with the Kenyan weaving mill Spinners & Spinners KICI revived the neighboring town Gitambaya. This cooperation has been in existence since 2008. In the village 10 kilometers of new, good roads have been build which contributes to activity, safety and liveliness of the village. In addition drink water facilities have been constructed as well as a little park. The trash and garbage that used to be left wandering around the streets are now picked up by youngsters from the village. In the meantime the primary and high schools have been renovated and expanded with new classrooms. Besides the classrooms the school has been expanded with a soccer field, a basketball court, a big multi-functional cafeteria, large kitchen, various drink water facilities, a library and a chemistry lab. The best part of these improvements are the better results the students have been getting. KICI believes in the strength of this project and the expectation is that this great cooperation will last for the coming years. Together with the municipality of Gitambaya, local population, schools, police and Spinners & Spinners hard work is being put in towards the development of the village.

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ot hing goes into t h e First t h e cl xt iles sor t ing machine Text iles4Te

REON FIBERIZAT I s This crea te t h e yarn...

tes ...which crea new pa nts!

Or we have resources...

...o f which new chairs ca n b e made

9. Innovation The innovation department of KICI has focused on researching new, high valued applications for the growing fibers of non-wearable clothing. The main focus is using the fiber created from non re-wearable clothing to recycle into new clothing. In this process it is important that the fibers can be turned into yarn of a certain length so it can be spun. During the current process long fibers are created as well as short fibers that cannot be used to spin new clothing. Finally there is also a left over mix of textile fibers that are not suitable for recycling at the moment. As a result the innovation department of

is focusing on TexSecond (recycling of clothing to new resources

for new clothing) and the processing of short textile fibers into composites.

9.1 Textiles4Textiles In 2012 the Textiles4Textiles project of which KICI was the coordinator officially ended. During this three year project, co-financed by the European Union, an automatic sorting machine has been developed together with various partners. This is an important development for textile recycling (especially post-consumer). The sorting of textile can be compared to sorting various plastics for recycling. Only after carefully sorting the textile it can be properly recycled. As coordinator of the project KICI was responsible for the communication between the EU and the partners involved in the project as well as providing management information. In August 2012 a package left our office to go to the EU which included all the reporting and some example products made from recycled clothing, such as the hooded sweater developed by Groenendijk corporate shoes and clothing one of the partners involved. As coordinator KICI has been invited multiple times by the EU to present the project as it is one of the practice-projects of the EU.

The news that the Netherlands had developed a machine to automatically sort textile on fibers and colors even reached the international Herald Tribune (The international New York Times). Sander Jongerius, product developer at KICI was able to elaborate much on the machine in the article. Other journals and websites, such as Ecotextile news, spend attention to the sorting machine. To conclude the project a big presentation was given during the Closing the Loop conference, November 2012. During this two day interactive conference the final day the sorting machine was officially presented to the audience at Wieland Textiles B.V. in Wormerveer. In 2013 the first sales of the sorting machine is expected to start in 2013 after extensive and prolonged testing. In case the machine is ready for production, he will be sold through a license of Valvan Baling Systems.

9.2â&#x20AC;&#x201A; TexSecond An interesting development from the above is the TexSecond project. KICI offers through TexSecond a transparent, certified and sustainable recycling project to fashion, retail and textile related companies. For all the textile waste, overstock, returns, samples, corporate clothing that normally would get burned TexSecond provides a solution. Through research and testing much progress has been made in 2012 on the recycling of postconsumer textile to new high valued yarn and fabric for jeans. KICIâ&#x20AC;&#x2122;s objective in 2012 to produce a high valued and quality cotton fiber has been achieved. . The first results of the test are satisfactory but our ambition is to get to an even higher percentage of recycled material to be processed into new clothing.

As a result more research and tests are on the agenda for 2013. The production of new substances of recycled cotton fibers are followed through research to the possibilities to recycle polyester fibers. A challenge in the recycling of jeans is the additive of lycra to the cotton.

Besides the collection of wearable clothing, KICI focuses with the TexSecond project on recycling the non-wearable clothing in a sustainable, transparent and certified manner. More fashion brands and warehouses are letting KICI process their overstock, returns and unsold stock. It is of importance to these organizations that their clothing doesn’t return to the market as this would undermine the brand. The incineration of the clothing as textile waste is often no longer a solution for these warehouses or fashion brands. The companies have the risk of damaging their reputation and the negative effects on the environment should be sufficient reason to investigate the possibilities for sustainable, transparent and certified manners to collect textile. Taking the responsibility for their own textile waste together with a sustainable message towards the end customers offers textile related companies a unique selling point. At a textile recycling company the textile is pulped. The composition of the pulped textile will eventually determine the end product of the textile. A high percentage of cotton can be used as for example thermo isolation for houses, such as Metisse®. (www.isolatiemetisse.nl) or as sound isolation such as baffles for swimming pools, music rooms etc. (vrk-isolatie.nl) or for the car industry. The purest fractions such as 100% wool, 100% acryl and 100% cotton could be used to create new yarn to spin to new fabrics. Sustainable advantages of KICI’s textile processing: - Non re-wearable textile does not end up in the incinerator therefore does not have a harmful effect on the environment - Transparency, control, certification and sustainability process - The company that offers their textile for processing receives a sustainability certificate of a certified textile recycling company - The costs of processing compared to incinerators remain the same - No damage will be done to the reputation of the company

9.3 Composite materials Composite is a collective noun for fibers enhanced with plastics. In these materials fibers are kept in their place by a plastic (polymer), the so called matrix. The fibers contribute for the biggest part of the strength products hold as the fibers strengthen the products. The matrix ensures that the fibers are kept in their place and protected from external forces (such as damp). In the world of composites sustainability is gaining importance. More and more these composites are made up out of materials that cause less harm to the environment, on the basis of naturally recycled resources. For example flax and hemp. KICI also enable the possibility to use textile fibers such as acryl, polyester and cotton. KICI is investigation much time and energy in the development of materials since the offered textile is often made from complex material mixes that make the recycling more difficult. A more important motivation is that the current recycling process break the fibers, as a result the fiber length decreases which makes the material not fit for spinning. By adjusting the fibers into composite materials the fiber’s durability are extended. Regarding the composite project KICI makes a distinction of two material types. In 2011 the first products were made of thermoset composites developed in cooperation with the NPSP composites, in other words the plastic is hardened from the fiber in a not reversible process. The product remains in the shape of which it was produced. In addition KICI has begun the development of thermo plastic fiber enhanced by plastic. This plastic can be remodeled by using heat (the warmth of the temperature is dependent of the nature of the plastic). KICI chose to develop thermo plastic composites from plastics made of a natural starch.

True or false?

The decreasing CO2-exhaust of 140 million of kilograms of textile waste equals to 200 families not using their car for the entire year.

True

False

Mushrooms and street signs KICI is leading the discovery to the possibilities of worn textile. We have performed extensive testing on the effect of synthetic textile when it is heated and pressed together. This results into hard plates. This plate is sound proofing and can be produced in various levels of thickness and hardness. KICI came up with the solution to create street signs and mushrooms from these plates. The possibilities are infinite.

f produc ts made Exa mples o hardened ma teria l o m r e h t m o fr The Melle Koot chair The interior designer Melle Koot has been developing since 2003 an own style of waste, residual material and natural resources. By placing sustainability in production, housing, energy minimization and transportation of its company, Melle Koot was the first interior designer with the mark for Cradle to Cradle. The chair that he developed together with KICI shows that you can reuse resources very tasteful.

The first results of thermoplastic fibers enhanced with plastic in the shape of a shoehorn and a coat hanger.

In 2012 KICI executed the first tests in cooperation with Design consultant MMD; these were very positive. During the first tests an existing mold was used: eventually it was decided to create two products by itself in a more complex shape. During the second test some points of improvement came apparent. As a result the final product ended up with a qualitative high value and stronger. KICI will continue with the developments and improvements of the thermo plastic composites and hopes to start production in 2013.

2012 RESULT IN

€ 1.2 Mil joen Less clot hing

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10. Abbreviated financial overview General The financial report 2012 is, as in previous years, approved by an external accountant and prepared according to the guideline 650 (revised in 2011) Fund raising organizations. KICI’s tax support will be provided by BRG Accountants & Belastingsadviseurs B.V. starting 2011. Also this year the financial accounts have been integrated in the annual report. The applied principles regarding appreciation and result have remained unchanged compared to the previous year. Below you will find the financial highlights of KICI with explanations following the integral financial report.

10.1 Abbreviated financial report ASSETS (*€1,000)

2012

2011

Material fixed assets Financial fixed assets Accounts Receivables Cash

572 4 529 1,215

675 1 369 1,416

2,321

2,461

LIABILITIES (*€1,000)

2012

2011

Reserves and funds Short term debts

1,026 1,294

926 1,535

2,321

2,461

Table 1: Summarized financial report balance sheet

10.2 Profit and loss statement 2012 (*€1,000)

actual 2012

budgeted 2012

actual 2011

5,117 41

6,027 24

4,828 32

5,158

6,051

4,860

Expenses: Available for targets

1,207

1,352

1,309

Recruitment of profit Control and administration

3,415 436

4,349 347

3,202 348

5,058

6,048

4,859

Surplus before taxes Corporate tax

100 -

3 -

2 2

Surplus after taxes

100

Profit: Profit from its own fundraising Profit from non-traditional fundraising

Table 2: Abbreviated financials P/L

Gap analysis including financial and non-financial indicators The profit over 2012 was significantly lower than budgeted yet slightly higher than 2011. Higher sales prices in 2012 compensated the number of collected kilograms. This caused the increase of profit from own fundraising with € 289.000 to a total of € 5.117.000 (an increase of 6%). The expenses from fundraising are lower than budgeted in 2012, however significantly higher than the previous year. This is mainly caused by the losses on participations (€ 91.000) and the high increase in expenses for collection rights in municipalities (an increase of € 136.000). As well as the consultancy costs increased € 74.000 and the salary and pension costs increased (€ 39.000). Positive gaps compared to 2011 were realized in the area of logistics. In 2011 a big renovation project regarding the collection bins resulted into an additional € 113.000 of costs which resulted into a total of € 308.000. In 2012 the maintenance and other logistic costs resulted in € 195.000 which was caused by an incidental benefit by the free fall of a reserve created for projects in 2005 and 2006. This release is added to equity to strengthen the solvability.

Below a number of indicators Solvability: reserves and funds / total equity 2012: € 1,026 x € 2,320 x 100% = 44 % 2011: € 926 x € 2,461 x 100% = 38 % 2010: € 926 x € 2,785 x 100% = 33 % 2009: € 926 x € 3,332 x 100% = 28 % 2008: € 922 x € 3,300 x 100% = 28 % The solvability indicated the ability of a company to fulfill its financial obligations to the suppliers of equity by using their assets. The higher the percentage the better. From the above overview it is shown that the solvability has increased over the year. This has been a conscious decision. Current ratio: accounts receivables and cash / short term debt 2012: € 529 + € 1,215 / € 1,294 = 1.35 2011: € 369 + € 1,416 / € 1,535 = 1.16 2010: € 365 + € 2,219 / € 1,859 = 1.39 2009: € 478 + € 2,498 / € 1,599 = 1.86 2008: € 465 + € 2,568 / € 1,528 = 1.98 The current ratio is an indicator to measure the financial situation, specifically the liquidity, . of a company. It indicates the ability to pay the short term debt of the company from the current assets. From the above overview it can be seen that the ratio has slightly improved and there is enough room to pay the short term debt. The increase of the current ratio is mostly caused by the hold off on any big investments in the past year. Collected kilograms In 2012 on average 8,895 kilograms of textile was collected in the collection bins. In 2011 this was 9,339 kilograms of textile. This is a decrease of 437 kilograms per container compared to 2011. This development corresponds with the current consumer behavior: ‘Delaying the purchase of new products’ as a result they are less likely to donate their old clothing. Municipality collection Volume collected (x kilograms) Number of containers Average volume per container (x kilograms)

2010

2011

2012

8,959,000 993 9,022

9,264,000 992 9,339

8,753,000 984 8,895

Table 3: Average volume per container

Municipal Collection/KMH It is of importance to KICI that the quality of the collected clothing is good, very important is that it is dry. Moreover KICI sees the percentage of wearable second hand clothing becoming smaller. This is one of the reasons that KICI is investing in its own KICI quality label for underground collection bins and new applications of non re-wearable textile. Risk analysis In the end of 2010 the board of KICI has executed an elaborate risk analysis. This analysis has been receiving positive feedback from an external accountant in the beginning of 2011. In the extension of this the board is considering a three year ‘Risk Management’ or ‘Risk Control’ cycle. In addition the board reports to the Supervisory board in 2011, 2012 and 2013 of the measures they undertook to decrease the highlighted risks. The first progress report of the board in the middle of 2011 received positive feedback from the Supervisory board. To conclude the board will request the external account to provide feedback on the progress reports. In the end of 2013 the board will perform another elaborate risk analysis. Equity creation in relation to risks According to the requirements of the CBF and the VFI the amount in the continuity provision can be one and a half times the fixed costs. KICI’s fixed costs were € 1,400.000 in 2012. The board of KICI considers it relevant to strengthen the continuity provision in these times. In 2012 € 100,000 has been added to the continuity provision which now totals to € 1,026,208 per the 31st of December 2012. Please see the annual accounts, page 99 and 112.

10.3 Multiple year profit and loss statements Besides the earlier mentioned summarized financial report a multiple year statement of the profit and loss accounts over the past five years has been created. (*€1,000)

2008

2009

2010

2011

2012

Sum of profit

3,732

3,760

4,174

4,860

5,158

Donated to charity Execution costs for the objectives

885 78

937 96

1,086 120

1,164 145

1,066 141

Available for objectives

963

1,033

1,206

1,309

1,207

2,658 108

2,611 112

2,640 311

3,202 348

3,415 436

Surplus before taxes Corporate tax

3 -

18 18

2 2

100 -

Surplus after taxes

100

Costs of fundraising Cost of control and administration

Table 4: Multiple year statement

The execution costs for objectives are calculated according to the guidelines of the VFI. Due to internal restructuring of tasks the final allocation in 2012 is a little lower than 2011. Besides the above mentioned profit and lost statements over the past five years we present an overview of the past ten years mentioning the number of kilograms of textile collected, the sum of the profit and the amount donated to charity. 2003 2004 2005 2006 2007 2008 2009

2010

2011

2012

Kilograms x1,000 6,535 7,190 7,463 8,450 9,229 9,488 9,473 10,055 10,836 10,590 Profit from own fundraising x€1,000 2,102 2,262 2,556 2,892 3,376 3,732 3,760 4,171 4,717 5,117 Donation to charities x€1,000 231 114 397 729 1,144 885 937 1,086 1,164 1,066 Average sales price per kilogram € 0.322 0.315 0.342 0.342 0.366 0.393 0.397 0.415 0.446 0.484 Table 5: Ten year overview

12,000 10,000

Kilograms (x 1,000)

8,000

Profit from own fundraising (x € 1,000)

6,000 4,000

Donation to charities (x € 1,000)

2,000 0

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Figure 1. Ten year overview

From the overview and graph it can be seen that in the past 10 years the collected volume of textile has increased from 6.5 million kilograms in 2003 to 10.5 million kilograms in 2012. In addition the profit from its own fundraising has increased from € 2,1 million in 2003 tot € 5,1 million in 2012. Due to the fact that the sales prices from 2003 until 2006 were relatively low the donation to charities was lower as well. Starting 2007 a clear improving trend has prevailed regarding the selling price as well as the collected kilograms of textile therefore the amount donated to charities almost reaches the € 1.1 million in 2012. KICI has become a stronger foundation over the past year consequently the contribution to charities have been substantial. Innovation regarding the reuse of subspecies and regarding collection models and means we are highly recognized by, among others, the ISO certification the organization has become more professional. KICI has an enthusiastic team and is known in the clothing collection industry as a sustainable collector with the CBF mark and an approved accountancy statement. KICI is ready for the future. The results of the financial year 2012 are positive. The amount donated to charities and project was almost € 1.1 million. This is approximately € 0.11 per kilogram collected textile. In 2011 this was € 0.12.

The profit and loss statements are displayed in the below graph (x € 1,000). 6,000 5,000 4,000

Costs control and administration Available for objectives

3,000

Costs from own fundraising Profit from own fundraising

2,000 1,000 0

2008

2009

2010

2011

2012

Figure 2. The profit and loss statements

The CBF requests some financial indicators on an annual basis. The below indicators have worsened in 2012 compared to the previous year. The amount available for its objectives has decreased compared to 2011. The costs of own fundraising have both in euros as in percentages increased in 2012 compared to the previous year. The profit and loss statement can be viewed by knowing two indicators: • Available for objectives / total profit * 100% = 23.4% (2011: 26.9%) • Costs from own fundraising / profit from own fundraising * 100% = 66.7% (2011: 66.3%) This shows that despite the good results of KICI in 2012 the financial indicators were not as good as in 2011.

In the below profit and loss statement has included the costs from own fundraising, the budget of 2012 and the realized result in 2011. From page 124 until 126 of the annual accounts the most important gaps between realized and budgeted and the previous years explained. actual 2012

budget 2012

realized 2011

Salaries/Social burdens Pension costs Other personnel costs Costs of collection rights in municipalities Logistics third party – transporters Logistics third party – other Write offs Maintenance costs collection bins Car expenses Housing expenses Office expenses Taxes and fees Advertisement and PR expenses Consultancy expenses Management costs Other general expenses Projects innovation Interest profit Bank expenses Incidental profit Result participations / impairment claims

595 106 123 213 1,273 25 189 170 42 59 99 67 161 126 27 119 (15) 2 (93) 126

718 137 114 184 2,004 103 161 59 60 69 103 58 192 75 12 216 115 (18)

570 92 126 77 1,270 61 134 247 25 72 95 56 126 51 4 68 116 (21)

(3)

2 35

Total cost from own fundraising

3,415

4,349

3,205

Table 6: Costs from own fundraising

Multiannual estimate In the financial report the budget of 2013 as well as the multiannual estimate 2014-2016 has been included. The budget of 2013 estimates that there will be approximately € 2,080,000 will be available for objectives in 2013. The years 2012-2016 show a sharp increase to even € 3.6 million available for objectives in 2016. Naturally this is subject to the expected grow in the collected kilograms of textile and the prospect the selling prices will be realized in the coming years. This is caused by the intended alteration of the booking method. Starting January 2012 municipalities, by law, have an ANBI status. On the basis of this ANBI status the remuneration KICI gives the municipality can be recognized as a donation. In determining the budget of 2013 and the future years KICI has recognized the amount of remuneration to municipalities as donations. .

This amounts to € 525,000 in 2013. The exact implementation of this system change will take place over the course of 2013. Costs control and administration In the financial report of 2012, similar to the financial report of 2011, the costs of control and administration are following the revised 650 fundraising guidelines of the board of reporting. Since 2010 the recommendation of cost allocation of Control and Administration follows the Vereniging Fundrasing Instellingen (VFI) guidelines this enables enhancing the transparency and makes the comparison of other foundations easier. The below was composed according to these guidelines.

Supervisory Board Board General Secretariat Finance, planning & control ICT Housing and facilities Personnel Personnel cost (direct and indirect costs and costs of hiring) - Administration costs, including HR - Accountancy costs Legal costs Communication Donators etc. Project administration

actual 2012

budget 2012

realized 2011

100% 50% 100% 100% per ratio per ratio per ratio

11,338 148,150 31,100 87,200 12,404 18,791 -

12,000 143,000 32,600 40,700 10,700 15,000 -

3,690 137,241 23,000 39,795 6,970 17,994 -

100% 100% fixed price fixed price n.a. n.a.

85,849 26,275 5,000 10,000 -

56,000 22,000 5,000 10,000 -

82,496 21,427 5,000 10,000 -

436,107

347,000

347,613

Table 7: Costs control and administration

KICI follows the allocation foundation of the VFI. The guideline provided is that the costs for control and administration are at a maximum of 10% of the turnover. The realized percentage in 2012 is € 436,107/€ 5,117,195 * 100% = 8.5%. This indicates that the costs of control and administration stayed below the 10% guideline which makes them acceptable. The cost allocation of the board is 50% because besides the costs of control and administration there are also direct efforts achieved for the objectives and fundraising. The allocation of finance, planning and control is higher than expected which is caused by a new controller starting in 2012.

10.4 Abbreviated cash flow statements The cash flow statements are an overview of the cash that was made available in the reporting period and the usage of the cash. The goal is to provide insight in the financing of the activities. The abbreviated cash flow overview has been composed below according to the so called indirect method. Received and paid interest has been recorded as operational activities. 2012

2011

100

Alterations for: write offs fixed assets (decline) provisions changes in the working capital

193 (401)

154 (329)

Cash flow from operational activities Cash flow from investment activities

(108) (93)

(174) (629)

(Decline) cash Cash per 1 January

(201) 1,416

(803) 2,219

Cash per 31 December

1,215

1,416

(x € 1,000) Result

Table 8: Cash flow statements

Analysis of the cash flow statements The decline of the cash to € 201,000 in 2012 is mainly caused due to lower debts and a high outstanding amount compared to last year, specifically the large amount outstanding with debtors. The increase in outstanding is because more debtors are more strict in applying the 30 day payment terms. Previously these amounts were received much earlier than the 30 days. However at the moment all the outstanding amounts per 31 December 2012 have been received. The cash position per 31 December 2012 is not invested to avoid the investment risks. The funds are stored in three saving accounts. The balance of the funds in the end of 2012 is € 1,215,000.

10.5 Collected kilograms and net profit 12,000 10,000 8,000

Profits in € Collected kilograms

6,000 4,000 2,000 0

2008

2009

2010

2011

2012

Figure 3. Collected kilograms and net profit

Collected kilograms of worn clothing The collected volume has slightly decreased in 2012 compared to 2011. Considering the general social and economic development in 2012 KICI thinks this is proof that the additional efforts of the employees and those involved have been rewarded with the result. In 2013 KICI will also focus on collected as many kilograms of textile as possible. The net profit per kilogram has increased: the turnover has increased more than the collected kilograms of textile. The total kilograms collected decreased with 2.3% compared to previous years while the average sales price increased with 9%. As a result the turnover increased with 6% compared to last year.

Collected kilograms Net profit Average sales price per kilogram

x 1,000 x € 1,000

2008

2009

2010

2011

2012

9,488 3,732 € 0.393

9,473 3,760 € 0.397

10,055 4,232 € 0.421

10,836 4,828 € 0.443

10,590 5,117 € 0.484

Table 9: Development net profit/average sales price per kilogram

The increased revenues have been realized by an improved average sales price for the collected kilogram. In the below graph the evolvement of the average sales price over the past five years is displayed. In total the sales price has grown with € 0.091 per kilogram between 2008 and 2012, this is an increase of 23.1%. € 0.490 € 0.470 € 0.450

Average sales price per kilogram

€ 0.430 € 0.410 € 0.390

2008

2009

2010

2011

2012

Figure 4. Average sales price per kilogram

Did you know…?

The Netherlands has the first T4T sor ting machine in the world? This machine sor ts each second a piece of clothing based on fiber composition and in the future also by color.

KICI is the first charity clothing collector that is in the possession of the CBF-Keur since 2001 this mark guarantees the citizens that the expenses made are proportionate to the realized profit that will be donated to charity. KICI appreciates the CBF-Keur as does the municipalities that gave KICI collection rights; in some municipalities the mark is required. In 2005 the CBF and important charity clothing collectors held a meeting to discuss the ’25 percent’ requirement. With this requirement the CBF – through a separate article in its regulations – set a level of minimum revenues need to go to charity, which could not be less than 25% of the profit from its own fund raising. In 2008-2009 this 25% requirement was, against the wish of KICI, lowered to a 10% requirement. The requirement was based on the average over the past three years. Especially due to external factors it was almost impossible for the charity collectors to follow this requirement. In 2006 as well as 2005 it was agreed with the CBF that the 10 per cent requirement was a temporary solution after which the situation would be reassessed in 2007. In the end it was decided to maintain the 10 percent requirement. With great pleasure KICI can say it has met the original CBF 25 percent requirement until 2011. In 2011 the CBF decided to amend its policy and took out article 4.6, the specific article for charity clothing collectors, from the CBF-Keur regulation. Starting January 2012 the new regulation (version 18) became effective. This entails that the CBF no longer makes a distinction between the various ways of fundraising and also clothing collectors need to meet the same rules as (not clothing collectors) fundraising institutions. The requirement is that no more than 25% from the profit from own fundraising can be spend on costs to raise the funds. On July 1st 2012 the KICI CBF-Keur expired and a reassessment took place based on the new regulations. Considering the fact that KICI is not an ‘ordinary’ fundraiser but has relatively high costs for collection (collection bins and transport) an exemption was requested for the 25% requirement. The CBF has not responded but the CBF mark has been extended until July 1st 2015.

10.6 Conclusion The costs from the own organization of KICI (costs fund raising) and the costs for control and administration remain a topic of continuously controlling, evaluating and adjusting. Due to the disappointing costs from own fundraising the eventual turnover growth in 2012 (6%) not equal to the increase of total costs (8.4%). A result that requires serious attention for the coming year. In 2013 KICI wants to create a balanced growth in turnover and costs as it has done in the previous years. The amount that has been donated to charity is almost € 1.1 million in 2012 (2011 this was € 1.2 million) which represents € 0.11 per kilogram of collected clothing. Controlling the costs remains of great importance. This is very important for the costs that need to be made to obtain the collection rights of textile collection in municipalities. The requested remunerations by the municipalities are used for general means and not to lower the waste taxes or local charities. Therefore a substantial less amount remains left to donate to charity and the initial motivations for citizens to donate the clothing to charity are being surpassed. KICI sees a growing interest and necessity in realizing innovative solutions for subspecies or in other words non-wearable textile. Therefore KICI aims to further develop the cooperation with innovation partners in the corporate world (specifically the clothing industry) and sorting companies. The loss of (municipality) clients or the acquisitions of new clients have an immense impact on the end result. Cooperating with organizations such as the Dutch Red Cross, Fonds Gehandicatpensport and I:Co are of great importance for developing new channels of collection. KICI will continue all that is possible to maintain their results and if possible improve, in these difficult market conditions.

Accountability statement KICI clothing collection has been in the possession of the CBF-Keur (as first textile collector) since 2001 and agrees with the principles of the CBF as central indicators for the structure and strategy of its organization. In line with the code of good conduct for charities (Code Wijffels) from 2005. 1. Separated functions: supervise, management and execution The executing and supervising tasks have clearly been separated the board is responsible for the management and execution tasks, besides them there is a supervisory body. On January 1st 2012 the KICI board existed out of two persons and the Supervisory Board out of six persons. June 2012 sir C. Meivogel resigned and the members of the Supervisory Board were reduced to five; they are actively searching for a sixth member. The new candidate will have to meet the profile created by the Supervisory Board and preferably have knowledge and experience of the industry. This could optimize the composition of the Supervisory Board. In the meeting of the Supervisory Board a recruitment committee has been appointed. Board members are: Hans Markowski, chairman of the board / C.E.O.. responsible for the department Finance, Projects and Innovation André Jansen, boardmember / C.O.O.. the end responsible for the commercial business in relation to the collection of textile, the marketing/PR and logistics. In the end of 2012 a reshuffling took place and HR has been assigned to the chairman of the board. KICI’s board members are in cooperation with each other the end responsible for the organization. The regulations of the board, created and approved by the Supervisory Board, functions as the operational framework. Within the framework the decision process has been recorded and the responsibility roles for the various departments. On a monthly basis there is a board meeting, during the meeting decisions are made and recorded. In the statutes it has been recorded which decisions require approval of the Supervisory Board.

The Supervisory Board receives on a regular basis the decisions made in the board meetings. In 2010 the board, in consultation with the Supervisory Board, has created the guidelines on information sharing to the Supervisory Board. The board and the Supervisory Board met six times in 2012; consultation prior to meetings also took place between the two boards. Hans Markowski held three other positions in 2012: board member of the association Vereniging Herwinning Textiel (VHT) and member of the Certification committee of the VHT. In addition he is also board member for Textiles4Textiles B.V. where he represents KICI. AndrĂŠ Jansen did not hold other positions. Evaluation board and Supervisory Board The chairman of the Supervisory Board and the vice-chairman evaluate once a year with the board. In April 2012 the members of the Supervisory Board were also evaluated within the board. The results of the evaluations have been recorded.

2.â&#x20AC;&#x201A; Optimal spending of means In the multiannual policy and the annual plans KICI names its objectives on the various areas such as fundraising, spending and innovation. Each department translates these objectives in the required activities that need to be executed to meet the objectives. Costs KICI aims to continuously optimize the spending of its means. The collection costs of textile should be kept as low as possible, while on the other side nationwide coverage is required. In 2012 the external transportation file of KICI has been efficiently executed. In addition to the transportation expenses KICI also had to consider the usage of corporate means for example the collection bins. To place or replace the collection bins KICI asks for offers at various suppliers (comparing price/quality). In addition there are costs for the own organization, renting the office, salaries and corporate cars. To determining the salaries of the board KICI follows the guidelines of the Vereniging Fondsenwervende Instellingen (VFI). In 2011 the salaries of the board have been tested and . are according to regular market conditions.

Total wages board Name

Employment terms Sort Hours Part-time percentage Period

H.B. Markowski chairman

A.A.A. Jansen board member

Indefinitely 40 hours a week 100% Month

Salaries Annual income Gross salary Contribution ZKV Contribution ATV Holiday fee * Km. Remuneration until July 2012

€ € € € €

93,167 3,149 2,077 7,564 5,886

€ € € € €

€ 6,618 -

Total annual income

€

111,843

€

91,746

SV burdens (employer) Taxable allowances/additions Net Pension costs (employer)

€ € €

6,390 5,606 36,455

€ € €

8,919 1,645 10,587

Total other costs and remunerations

€

48,452

€

21,150

Total salary 2012

€

160,295

€

112,896

Total salary 2011

€

160,503

€

113,979

* KICI has provided a car to both board members. Mr. Markowski since 01/08/2012. . Mr. Jansen during 2012.

85,129

What is left? Regarding the donations made to charities it is important to note that for five consecutive years (2007-2011) KICI was the only charity clothing collector that was able to stay well above the set 10% requirement for clothing collectors according to the CBF. A matter of fact KICI was able to maintain the original requirement of 25%. The higher this percentage the more effective the clothing collector handles the donated textile. In other words: the higher the percentage the more is left for charity. At the start of 2012 the CBF has published a revised version (18) of the regulations of the CBF-Keur. Deleting the specific article relating to clothing collectors entailed that KICI, as well as the other clothing collectors are not allowed to spend more than 25% of the profit on costs for fundraising. However, contrary to the regular fundraisers, KICI has relatively higher costs for the collection of textile. When KICI was retested in 2012 it has received exemption for the 25% requirement. The amount KICI spends on donations has become under pressure in 2012. This is caused by municipalities demanding remuneration for the rights of collection; this is at the expense of theÂ charity. Criteria for donations The policy regarding donating to charities have been recorded in the KICI Charity Policy 2010. . The target groups and criteria for donating have been thoroughly described. KICI strictly follows the conditions recorded in the reporting criteria. With its own projects in Kenya a work visit takes place twice a year: the findings and results . are evaluated, the processes and execution are controlled by an employee of Dove International, the KICI cooperation partner in Kenya. Regarding the spending by KICI to Dove it can be noted that KICI aims to have Dove be selfsupporting in the short term.

3. Handling stakeholders KICI considers it important to develop and maintain an optimal relationship with the various groups of stakeholders. Therefore as much recent information is being published on the KICI website (www.kici.nl), such as the annual report, news clippings, policy notifications and short movies. They can also sign up for the monthly newsletter if desired. In 2012 social media has been incorporated into the website. Who are the stakeholders? Citizens that donate clothing through collection bins, door-to-door collection or corporate and school campaigns Through the free 0800 number or by sending an email citizens can ask questions, provide feedback or make notifications. Potential complaints can be lodge through the free phone number or the complaints form on the website. The site also provides more information on the complaints procedure. Municipalities and companies where KICI collects textile KICI has regular phone contact with these stakeholders as well as regular visits. Giving a check to charity is an example that happens locally with the charity by the concerning account manager. These are great moments of contact where often the local press is present. As a source of knowledge and consultant KICI has published three informative reports on textile collection, collection bins and textile recycling: these publications have been sent to all municipalities. These books are also available upon request. Customers of textile and other partners KICI cooperates with in innovation projects KICI invests much in research and innovation. On regular occasions there is personal contact with the stakeholders regarding current issues as well as the possibility to further develop transparency and sustainability. - KICI cooperates with G-Star and other partners: fiberized jeans are spun into new yarn, after which the recycled fibers are being combined with organic cotton, produced without pesticide. In such recycle procedures where new jeans can be created there is considerable water savings. KICI aims to develop and expand sustainable cooperation agreements with large clothing brands. KICI has increased in this area and has high expectations for the future. - In the past years there have been many consultations with Textiles4Textiles. . (www.textiles4textiles.eu) on the developments of the Textiles4Textiles sorting machine. This project was finalized in the end of 2012. In 2013 the machine will be able to, after further improvements, automatically and optimally sort all kinds of textile - Periodically there are meetings with VRK-Isolatie, this is an organization that came into existence following a cooperation agreement between KICI, Vernooy Secondhand and the French Le Relais. These three parties had been searching for various possibilities to process non re-wearable second hand textile for many years. In 2005 the French cooperation Le Relais started the development of high valued isolation material which eventually

developed into the product Metisse®. Following the success of the product in France it is also available on the Dutch market. (www.isolatiemetisse.nl). - Another product is made out of 85% recycled textile is the ‘Eco Baffle’. This sound absorbent plate can be used for pools, gym, offices etc. to improve the acoustic. (www.vrk-isolatie.nl). - To support KICI’s sustainability principle it also visits the customers of customers, and stimulates them to develop and implement sustainability criteria. Suppliers There is regular contact between KICI and the suppliers of the KICI services (the KICI transporters are key in executing qualitative good service to municipalities). To maintain close communication KICI’s department logistics keeps daily phone contact. Beneficiaries To support the beneficiaries/projects that receive donations from KICI, a clear procedure was developed that consisted of regular reporting therefore the beneficiary knows what is going on and what is expected from him. Where possible a KICI employee hands out checks personally. KICI’s own employees The employees of KICI are fully committed to run the business as optima land efficiently as possible and collect as many means for charity as possible. The processes are recorded in ISO procedures and the AO/IC handbook. Annually the employees have an end year review and assessment interview. Moreover each employee has, in consultation with their manager a personal development plan (POP). Over the course of the year internal lunch presentations from different departments take place, this ensures everybody within KICI is aware of the latest developments.

lot hing t hrough c g n i t c e l l o C nd a l terna t ive cha n nels a l a n o i t n e v n co

ERS T RANSPORT ara ble Sor t re-we e-wearble r n o n d n a t e x t il e

to Tra nspor t or t ing cer t if ied s c o m p a ny

SA LE

COST deduc t ion o f r e t f a t i f o Pr d o n a t ed expenses is t y to charit y in its ent ire

CHARIT Y

11. Annual accounts Balance per 31 December 2012 After processing result 31.12.2012

31.12.2011

169,941 402,459 572,400

132,298 542,590 674,888

4,166 4,166

1,250 1,250

415,096 29,319 84,683 529,098

268,606 8,154 92,567 369,327

1,214,925

1,415,879

2,320,589

2,461,344

ASSETS (€) * Tangible fixed assets Corporate means Directly in use for objectives

Financial fixed assets Other participations

Accounts receivables Debtors Participations Other receivables and prepayments

Cash

1) 2)

5) 6)

* For an explanation on the numbers 1 until 7 we would like to refer to page 106 and more.

LIABILITIES (â&#x201A;Ź)â&#x20AC;&#x201A; * Provision and funds Provisions Continuity provision Assignment provisions Revaluation provision Other provision

Funds

Short term liabilities Debts to suppliers and trade credits Taxes and premium from social insurances Payment obligations to charities Other debts and liabilities

9) 10) 11)

Ratios Current ratio: accounts receivables and cash / short term liabilities Solvability: provisions and funds / total equity

* For an explanation on the numbers 8,9 and 11 we would like to refer to page 112 and 113.. For an explanation on number 10 please refer to 115 and more.

31.12.2012

31.12.2011

1,026,208 1,026,208

926,208 926,208

1,026,208

926,208

133,423 69,016 472,644 619,298 1,294,381

272,954 76,461 531,681 654,040 1,535,136

2,320,589

2,461,344

1.35 44%

1.16 38%

Profit and Loss statement 2012â&#x20AC;&#x201A; ** (â&#x201A;Ź)

actual 2012

budgeted 2012

actual 2011

5,117,193 40,760

6,026,500 24,000

4,828,385 32,000

12)

5,157,953

6,050,500

4,860,385

13)

1,065,761 141,400

1,209,900 141,800

1,163,728 145,320

1,207,161

1,351,700

1,309,048

Profit: Profit from own fundraising Profit from non-traditional fundraising/donations Sum of profit Expenses: Available for targets Donations to charity Execution costs for objectives (partially including the salary costs of board and employees)

Fundraising profit Costs from own fundraising

14)

3,414,685

4,349,000

3,202,064

Control and administration Costs of control and administration

16)

436,107

347,000

347,613

5,057,953

6,047,700

4,858,725

Surplus before taxes Corporate tax

100,000 -

2,800 -

1,660 1,660

Surplus after taxes

100,000

2,800

Sum of operating expenses

** For an explanation of number 12 until 16 we refer to page 114 and further.

Explanation cost division and cash flow statements Explanation cost division Assigned

Objective Costs from own A) Fundraising

Earmarked projects Fixed beneficiary Free room for projects Donated clothing Salaries/social burdens 141,400 Pension costs Other personnel costs Remuneration collection . rights municipalities Logistics third parties – transporters Logistics third parties – other Write offs/book profit Costs of Maintenance . collection bins Car expenses Housing expenses Office expenses Taxes and fees Advertisement and PR expenses Consultancy expenses Board expenses Other general expenses Projects innovation Interest profit Bank expenses Incidental profit Result participation/impairment participations

404,181 125,000 272,211 264,369 141,400

Total

1,207,161

594,756 106,043 122,910 212,654

Man. & adm. B)

266,450

1,273,474 24,890 189,035 170,322 42,229 59,039 98,800 67,166 160,885 125,645 27,281 119,488 (15,129) 2,132 (93,106) 126,171

3,414,685

18,791 12,404 10,000 5,000 11,338 112,124

436,107

Total 2012

Budget 2012

Total 2011

548,770 125,000 273,600 262,530 1,076,300 137,000 114,500 184,000

398,567 125,000 465,209 174,952 915,847 91,531 126,437 76,796

1,273,474 * 2,004,100 103,000 24,890 * 160,600 189,035 * 58,900 170,322 *

1,269,177 61,138 134,435 246,622

404,181 125,000 272,211 264,369 1,002,606 * 106,043 * 122,910 212,654 *

42,229 * 77,830 111,204 67,166 170,885 * 130,645 * 11,338 139,405 * 119,488 * (15,129) 2,132 (93,106) * 126,171 *

5,057,953

60,500 84,100 113,400 58,400 202,000 80,000 12,000 294,500 115,300 (18,000) (2,800)

24,747 89,972 102,300 56,354 136,488 56,097 3,690 171,774 115,555 (20,919) 1,954 35,002

6,047,700 - 4,858,725

Amounts in ( ) regard company profits. A) ‘The objective of KICI is to look after the social interest both in the Netherlands and abroad as it may directly . or sideways be connected or conducive, all in the broadest sense of the word.’ B) For the purpose of providing insight in the size and composition from the costs of own organization . a specification of the costs is provided on page 122. The costs of control and administration are recorded . according to the recommendation of the VFI and have been separately specified on page 124. *) for further explanations of these expenses we refer to page 125.

100

Cash flow statements (â&#x201A;Ź)

current financial year

previous financial year

Cash flow statements from operational activities Result

100,000

Adjustments for write offs off: tangible fixed assets (decrease) provision

192,956 -

154,435 -

(159,771) (240,755) (107,570)

(4,778) (323,770) (174,113)

(2,916) (91,121) 653 (93,384)

(703,727) 75,000 (628,727)

(Decrease) cash Cash per 1 January

(200,954) 1,415,879

(802,840) 2,218,719

Cash per 31 December

1,214,925

1,415,879

Changes in working captial: decrease inventories decrease accounts receivables (decrease) / increase short term debts

Cash flow from investment activities Investments in financial fixed assets Investments in tangible fixed assets Divestments in financial fixed assets Divestments in tangible fixed assets

101

Explanation on the result sales second hand goods actual 2012

budgeted 2012

actual 2011

5,117 5,117

5,998 29 6,027

4,734 94 4,828

10,531 59 10,590

13,451 49 13,500

10,784 52 10,836

10,590

13,500

10,836

OVERVIEW GROSS INCOME (amounts x €. 1,000) Net turnover Profit from own fundraising Turnover collection Turnover service Total GOODS MOVEMENT (amounts x 1,000 kilo) Collection: * collection bins * alternative collection

Total:

CBF-CALCULATION Average market price p/kg Moving average market price p/kg Net profit total average in original state p/kg Moving average net profit p/kg Moving average net profit p/kg divided by moving average net market price p/kg in % (1)

€ € € €

0.484 0.438 0.114 0.110

25%

€ € € €

0.446 0.420 0.107 0.105

25%

1) In 2012 KICI has realized the donation to charity of 25% of the profit from own fundraising. The 25% KICI is donating to charity is significantly higher than other clothing collectors. The CBF has, since January 2012, changed the requirement to donate 75% from profit out of own fundraising to charity. However for clothing collectors this is not doable due to the relatively higher collection costs (transportation costs and remuneration to municipalities). Therefore KICI received exemption from this requirement. During the test in 2012 KICI by the CBF KICI’s CBF mark was extended until July 1st 2015.

102

General explanation Objectives and activities KICI was founded February 28th 1975 and is located in The Hague. The objective of the foundation is as follows: ‘the objective of KICI is to look after the social interest both in the Netherlands and abroad as it may directly or sideways be connected or conducive, all in the broadest sense of the word.’ Provision and funds The amount of the continuity provision can be one and a half times the fixed costs according to the guidelines of the CBF and the ANBI regulations. In the future KICI can decide to increase the continuity provision. Starting 2012 a charity organization is limited in adding to its own equity. As long as it does not contradict the objective of KICI this can be done without it being taxed. Until and including the financial accounts of 2012 the policy on function and size of the disposable assets focused on donating the entire profit made to charities. However considering the changed market and economic circumstances KICI has increased her continuity provision. In light of the statutory objectives of KICI all monies raised with fundraising are donated to charity in principle. A broad group of organizations and projects have received a financial contribution of KICI in the past year. As of 2009 the Dutch Red Cross is KICI’s main beneficiary. Tax liabilities Regarding the corporate tax obligation KICI calls on article 9 member 1 letter H of the law on corporate tax in 1969. In 2012 KICI donates the entire net result to charity wherefore there is no obligation for corporate tax.

General foundations for the compilation of the annual accounts General The annual accounts have been compiled according the Richtlijn 650 (revised in 2011) for fundraising organizations. The appreciation of the assets and liabilities and the net result are done on the basis of historical costs. Unless the concerning foundation for a specific balance entry is different, all assets and liabilities are against nominal values. Profit and expenses are allocated to the year it is related to. Profits are only recorded if they have been realized. Losses that have been made in the end of the reporting year are recorded if they have become apparent before the compilation of the annual accounts. Comparison last year The foundations appreciations of the results of the annual accounts are the same as the previous year. The annual account is compiled according to the Richtlijn 650 (revised 2011).

103

Foundations for appreciation of assets and liabilities Tangible fixed assets The tangible fixed assets are appreciated to the cost price less cumulative depreciations. The depreciation is based on the expected economic life which is calculated on a fixed percentage of the cost price taking into consideration any residual value. Financial fixed assets The participations of which influence can be exercised on the business and financial policy, are valued for their net equity value, but cannot be lower than zero. The net equity value is calculated on the basis of KICIâ&#x20AC;&#x2122;s foundations. With a negative equity value a provision is created, which in the case of MVOBouw B.V. (33.33%) and KICI BELGIUM BVBA (100%) is created for the accounts receivables and or loans. The provision will in the case of MVOBouw B.V. and KICI BELGIUM BVBA will be no higher than the accounts receivable and/or loan. Participations in which no influence can be exercised on their business and financial policy are valued for the cost price and, if applicable, less any depreciation. This is the case with Retourette B.V. (5%), the goodwill has been depreciated following the losses over the previous year. The new incorporated organization Textitles4Textitles B.V. (16.16%) has been recorded against cost price. Accounts receivables The accounts receivables are valued against nominal value, minus any necessary provision for the risk if it regards doubtful debt. These provisions are determined on the basis of individual assessment of the accounts receivables. Other assets and liabilities Unless otherwise mentioned all assets and liabilities are stated for their nominal values.

104

Foundations for determination of the result Profit from own fundraising Profit from own fundraising refers to the result of the delivered goods and services in this financial year less discounts and taxes. The turnover of delivered goods is recorded at delivery. The execution costs of these goods are allocated to the same period. Profits recorded under services are recorded in proportion to when the services were performed. The execution costs of these services are allocated to the same period. Pension costs KICI has a pension plan for its employees (basic and escedent plan) the plan is based on the average salary. These pension plans are agreed with the pension fund SPNG Pensioenfonds. The premium dues for these plans are recorded as costs on the balance sheet; the premiums that have not been paid are recorded in a provision. Considering the short term nature of these obligations they are recorded against nominal value. The risks of salary development, price index, investments return on the funds equity may lead to adjustments in the future. These risks are not taken into consideration in the provision. In case there is a shortage for the companyâ&#x20AC;&#x2122;s pension funds KICI has no obligations to pay additional contributions other than possible higher premiums in the future. Taxes Corporate tax is calculated against the tariff over the fiscal result of the financial year. Shares in the result of non-consumed participations As result of participations on which meaningful influence can be exercised on the business and financial policy, the amount that is the future result for the partner is recorded less any applicable taxes. The participation on which no meaningful influence can be exercises on their business or financial policy, the dividends is recorded as result. For an explanation on the processing of the result of participations we refer to page 108, explanation financial assets.

105

EXPLANATION BALANCE SHEET ASSETS Tangible fixed assets (€) 1 ) Corporate assets The movement overview of corporate means is as follows: Office inventory / equipment

Total

118,443 (27,285) 91,158

210,422 (169,282) 41,140

328,865 (196,567) 132,298

72,489 (10,861) 10,208 (35,700) 36,136

18,632 (17,125) 1,507

91,121 (10,861) 10,208 (52,825) 37,643

180,071 (52,777) 127,294

229,054 (186,407) 42,647

409,125 (239,184) 169,941

20%

Transport Per 01/01/2012 Acquisition value Cumulative write offs Mutations financial year 2012 Investments Acquisition value divestments Cumulative write offs divestments Write off

Per 31/12/2012 Acquisition value Cumulative write offs

Write off percentage

106

EXPLANATION BALANCE SHEET (CONTINUED) 2 ) Directly in use for objective The movement overview of the assets directly in use for the objective is as follows: Number (Role) collection bins Per 01/01/2012 Acquisition value Cumulative write offs

1365

Total

1,731,193 (1,188,603) 542,590

21,020 (21,020)

1,752,213 (1,209,623) 542,590

1365

(140,131) (140,131)

1365

1,731,193 (1,328,734) 402,459

21,020 (21,020) -

1,752,213 (1,349,754) 402,459

20%

Mutations financial year 2012 Investments Acquisition value investments Cumulative write offs divestments Write offs

Per 31/12/2012 *) Acquisition value Cumulative write offs

Write off percentage

Collection bins

Role collection bins and fences

*) Per December 31st 2012 there are 107 collection bins in inventory, these are reserved for placement in 2013.

107

EXPLANATION BALANCE SHEET (CONTINUED) Financial fixed assets 31.12.2012

31.12.2011

1,250 2,916

1,250 -

4,166

1,250

MVOBouw B.V.

Retourette B.V.

Total

3 )â&#x20AC;&#x201A; Other participations Retourette B.V. MVOBouw B.V. KICI BELGIUM BVBA Textiles4Textiles B.V.

Textiles KICI BELGIUM 4Textiles B.V. BVBA Per January 1st 2012 Provisions per January 1st 2012 Purchases Result participations 2012 Write off account receivables and loans Special depreciations . per 31 December 2012 Position at 31 December 2012 Provision per 31 December 2012

108

2,916 -

20,000 (79,798) 59,798 -

(54,097) 54,097 (41,567) 41,567 -

1,250 1,250 -

(52,847) 54,097 1,250 22,916 (121,365) 101,365 -

2,916 2,916

(59,798) 59,798 -

(95,664) 95,664 -

1,250 1,250

(151,296) 155,462 4,166

MVOBouw B.V. (trading name VRK Isolatie) MVOBouw B.V. founded on December 15th 2009 located in Tilburg. KICI has 33 1/3% shares which were acquired during the incorporation of the partnership. The nominal share capital per December 31 2012 is € 18,000. MVOBouw B.V. is valued on the net equity value, however cannot be lower than zero. KICI’s part in the own equity position of MVOBouw B.V. is negative € 95,664 in the end of 2012. This part in the negative equity is recorded in the provision accounts receivable and loan under MVOBouw B.V., originally budgeted at € 100,470. Starting 01/01/2013 KICI has decided to no longer provide MVOBouw B.V. with means. Retourette B.V. On December 15th 2009 KICI undertook a significant interest in the shares of Retourette B.V. te Zeewolde of 1.250 shares ad € 1 (which is 5,0%) against a cost price of € 75,000. This is a strategic participation in a promising, renewed organization that commits itself to recycling, intake and environmental friendly process waste wrappers and rest products. The nominal share capital per 31 December 2012 amounts to € 23,000. Retourette B.V. is appreciated on the cost price, however due to startup losses it has been decided to write off the good will in 2010. Therefore Retourette is valued at the nominal value. KICI BELGIUM BVBA SO On April 1st 2012 KICI founded a 100% subsidiary KICI BELGIUM BVBA. KICI Netherland provided a shareholder capital base of € 20,000. The realized loss in the first year of € 79,798 was expected. KICI BELGIUM is valued on the net equity value however cannot be lower than zero. The coming years it is expected to see a slow growth in turnover and market share as well as an improvement on return. The part of KICI in the own equity of KICI Belgium is negative € 59,798 in the end of 2012. KICI has recorded a provision for its part in the negative equity. However the provision is primarily created for the loan to KICI BELGIUM of € 81,159. Textiles4Textiles B.V. On November 23rd 2011 KICI took an interest in Textiles4Texitiles by 2,916 shares per € 1 (equals 16.16%) for a cost price of € 2,916. The annual accounts over 2012 have not been finalized however considering the interest of KICI the participation will be valued on cost price.

109

EXPLANATION BALANCE SHEET (CONTINUED) Accounts receivables (€) 4 ) Debtors Debtors Provision for doubtful debtors

31.12.2012

31.12.2011

415,096 415,096

268,606 268,606

The increase of debtors is mainly caused by the fact that debtors are more strictly using their 30 days payment terms, previously invoices were paid well within the 30 day payment terms. Currently there are no outstanding invoices from 2012.

5 ) Participations and corporation in which shares are held Loan MVOBouw B.V. Loan KICI BELGIUM BVBA Accounts receivable MVOBouw B.V. Accounts receivable KICI BELGIUM BVBA Accounts receivable T4T B.V. Accounts receivable Retourette B.V.

31.12.2012

31.12.2011

7,338 816 8,154

27,282 1,221 816 29,319

The loan to MVOBouw B.V. is, according to the loan agreement, charged with 5% interest starting January 1st 2012. Redemption of the loan will be done, at the latest, December 31st 2015. There are securities in place as well. The balance of the loan is € 100,470 per 31-12-2012. This loan has been written off as there is insecurity if these receivables will be paid. Starting 01/01/2013 KICI has decided to no longer provide MVOBouw B.V. with means. The loan provided to KICI BELGIUM BVBA will receive 5% interest per January 1st 2013 as is agreed in the loan agreement. Redemption of the loan is at the latest December 31st 2015. Securities have been agreed. The balance of the loan is € 87,080 per 31-12-2012. The loan has been less of the negative equity value of KICI BELGIUM. The outstanding balances from the participations are not charged with 5% interest. Regarding redemption and securities no agreements are in place (yet).

110

6 ) Other accounts receivables and prepayments Prepayment invoices Prepaid costs To be received bank interest Deposits To be received subsidy Loan staff Other

7 ) Cash Rabobank; current account Rabobank; savings account Triodos Bank, return account Cash Cross checking

31.12.2012

31.12.2011

46,156 11,759 5,411 18,000 3,250 107 84,683

20,490 21,929 20,769 5,061 24,318 92,567

31.12.2012

31.12.2011

373,334 902,314 251,547 218 (312,488) 1,214,925

502,368 565,125 348,334 52 1,415,879

The amount mentioned under cross checking refers to a received subsidy regarding the EU project, T4T. This amount has been received by the other partners of the project in January 2013. The amount of € 18,888 (2011: € 18,574) is not available for cash free to allocate. The nature of the bank guarantee regards the rental agreement of the office located at Colijnplein 20 in The Hague.

111

EXPLANATION BALANCE SHEET (CONTINUED) LIABILITIES Provisions and funds (€) 8 ) Continuity provision 31.12.2012

31.12.2011

926,208 100,000 1,026,208

770,419 155,789 926,208

Assigned provisions *) This regards the provision for financing the assets for objective Start of financial year Additions / withdrawals End of financial year

155,789 (155,789) -

Other provisions Start of financial year Additions / withdrawals Result financial year End of financial year

1,026,208

926,208

Start of financial year Additions / withdrawals Result financial year End of financial year

Total provisions and funds

* The assigned provision contains the provision for financing to benefit the objective. It regards the equity used for clothing collection bins in various locations in the Netherlands. The obligation to create an assigned provision for financing assets with own equity has expired. Therefore the assigned provision has been added to the continuity provision.

Taking into consideration the worsening market conditions and economic situation in the Netherlands and the rest of the world KICI has decided to increase its continuity provision to cope with possible setbacks.

112

SHORT TERM LIABILITIES (€) 9 ) Taxes and premium for social insurance

Salary taxes/ premiums for social insurance Sales tax Corporate income tax

31.12.2012

31.12.2011

40,465 28,551 69,016

50,674 6,253 19,534 76,461

31.12.2012

31.12.2011

11 ) Other debts and accrued liabilities

Pension premium Publicity costs Accountancy and administration costs Holiday fee and vacation days Anniversary fund Received deposits Payable net wages Payable personnel costs Automation costs Consultancy fees Taxes, rent and remuneration for municipalities To be send credits regarding wet and dirt Other

15,000 15,000 40,000 77,855 15,000 137,000 835 18,000 5,000 40,000 56,447 7,450 191,711 619,298

10,000 23,000 37,830 105,604 10,000 137,000 * 36,000 3,089 50,000 66,726 7,450 167,341 654,040

*) Including bank guarantees worth € 115.000 received from customers.

Obligations not included in the balance sheet Multiannual financial obligations: KICI has entered into a rental agreement for the office building until January 31st 2015. The agreement provides the option of KICI to extend the contract with five years. The indicated rent for the office in 2013 is approximately € 55,000. This entails that it is € 104 per m2 for the office that is being rented. The rental agreement regarding the storage unit will end mid-2013. Agreements with fixed beneficiaries: Since 2009 the Dutch Red Cross is the new main beneficiary of KICI, annually a fixed amount of € 125.000 is donated to them. This agreement ends December 31st 2014. Starting 2013 the Fonds Gehandicaptensport will received a fixed annual donation of € 10,000; this agreement is for 2013 and 2014.

113

EXPLANATION OF THE PROFIT AND LOSS STATEMENT PROFIT (€) 12 ) Sum of profit

Clothing collection (municipal) Collected in kilograms for third parties

actual 2012

budgeted 2012

actual 2011

10,531,059 -

13,451,000 -

10,784,270 -

Average price per kilogram

€

Turnover in euro

€ 5,090,709

€ 6,002,000

€ 4,789,591

59,251 -

49,000 -

52,133 -

Clothing collection (non-municipal) Collected in kilograms for third parties

0.483

€

0.446

€

0.444

Average price per kilogram

€

0.447

€

0.500

€

0.744

Turnover in euro

€

26,484

€

24,500

€

38,794

€ € € €

22,260 18,500 40,760

€ € € €

24,000 24,000

€ € € €

32,000 32,000

Profit from non-traditional fundraising/Donations Received contribution of the Knitting Project Kenya Received contribution for the startup of the clothing line in Kenya Other contributions without specific destination

Total collected kilograms of textile

10,590,310

13,500,000

10,836,403

To conclude: Total net turnover (from own fundraising) Nontraditional fundraising/donations Total turnover

€ 5,117,193 € 40,760 € 5,157,953

€ 6,026,500 € 24,000 € 6,050,500

€ 4,828,385 € 32,000 € 4,860,385

Average price per kilogram (net turnover/total collected kilograms)

€

114

0.484

0.447

0.446

EXPENSES (€) Available for objective

Number

Description

05 en 06 06.85

Provision homeless Dress for Success/Food banks 1)

To be paid 31.12.11

13) Spec. P&L Approved 2012

56,748 40,337 97,085

Paid in 2012

Free Fall 2012

10) Spec. Balance To be paid 31.12.12

11,479 (7,500)

45,269 47,837

3,979

93,106

1 ) The donation to Dress for Success/ Food banks is done by donating clothing and booking the logistic costs. . In 2012 it was decided to let these provisions free fall. Nowadays these costs are taken as donation to both organizations. This will be recorded in the year of donation.

Subtotal projects 2005 - 2006

97,085

3,979

93,106

Projects 2011

11.002

11.003 11.004 11.006A 11.006B 11.006C 11.007 11.006F 11.007 11.008 11.009A 11.009B 11.011 11.012A 11.012B 11.012C

Earmarked projects Vereniging Initiatief Voor Ontwikkelingssamenwerking Diemen Stg. De Koppel Stg. Kennemerland-Oost Europa Stg. Milieu Dichterbij The Dutch Red Cross Leidschendam The Dutch Red Cross . Voorburg Welzijn oud en jong Leidschendam-Voorburg Stg. Present Den Haag Stg. Uden Wereldwijd Stg. Collusie Stg. Mariette’s Child Care KICI Knitting Project The Dutch Red Cross . Leerdam Stg. Old Tafo scholenproject Ghana Stg. Gemiva-SVG-Groep Historische Vereniging . Westelijk Voorne

5,000

7,386 2,218 3,501 6,109

6,109

2,750

2,750 10,063 3,892 7,000 7,789 4,981

2,554 1,250 1,000

115

EXPLANATION OF THE PROFIT AND LOSS STATEMENT (CONTINUED) Number

Description

11.013A

Stg. Thuis en toekomst . voor Sri Lanka Stg. Gesp Vereniging Nederlands Cultuurlandschap Stg. Christelijke Zorgboederij Krimpenerwaard Stg. Instandhouding Kleine Landschapselementen in Limburg Municipality Leiden - Stedenband The Dutch Red Cross . Bladel The Dutch Red Cross . Hoogeveen Stg. Kledingbank Wageningen Municipality voor Duurzame Ontwikkeling Knitting Project The Dutch Red Cross . Hoogeveen The Dutch Red Cross . Bladel Stg. Koepel Nationale Kledingbanken Stg. Voedselbank . Gooi & Omstreken Stg. Bondeko Stg. Vrienden van Chiromo Ichthus kerk Fonds Gehandicaptensport Stg. VanHarte The Dutch Red Cross War Child

11.013B 11.013C 11.014 11.015 11.056 11.057 11.058 11.059 11.023 11.090 11.091A 11.091B 11.091C 11.080 11.060 11.061 11.028 11.024B 11.052B 11.062 11.063

To be paid 31.12.11

Approved 2012

Paid in 2012

Free Fall 2012

To be paid 31.12.12

5,000

6,923 3,750

2,609

3,060

26,987 760

2,800

4,029 39,396

2,000

934

759

307

3,000

1,000 1,000 140 2,563 100 32,911 402

214,782

11.081

Other projects Environment Repair CafĂŠ

5,000

11.044 11.069 11.055 11.074

Education Right to Play SOS Kinderdorpen Belgium War Child Stg. Hoedje van Papier

1,831 5,000 1,500 5,000

116

Number

Description

11.079 11.084A 11.084B 11.084 11.085 11.087 11.092

Stg.Fight Cancer Stg. Unu Pikin Pink Ribbon Suriname Returns receive in 2012 SOZ Fonds Ubuntu Theatre Organisation Stg. House of Denim

11.031 11.053 11.066 11.067 11.070 11.072 11.075 11.080 11.083 11.088

11.038 11.092 11.054 11.052 11.071 11.073

11.033 11.076 11.077 11.078 11.048 11.065 11.082

Self Reliance Samenwerkende Hulp Organisaties Net4Kids Aid Foundation Stg. Ontmoeting met Buitenlandse Vrouwen Stg. Hilal Stg. Be More Orange Babies Polen Project Lesna Foundation Gered Gereedschap Afripads Stg. 4 Life Livability Fonds Gehandicaptensport Stg. de Nieuwe Waterweg Turks Islamitische Culturele Stichting Den Haag Stg. VanHarte Stg. De Blije Kei Jantje Beton Welfare Boodschappen Begeleidingsdienst The Dutch Red Cross . Groningen The Dutch Red Cross . Voorne/Putten/Rozenburg The Dutch Red Cross . Westervoort/Duiven/GroessenLoo The Dutch Red Cross KWF Kankerbestrijding Stg. Buddy Netwerk

Subtotal projects 2011

To be paid 31.12.11

Approved 2012

Paid in 2012

Free Fall 2012

To be paid 31.12.12

9,100

5,346 14,000 1,000 11,338 5,000 20,000

5,346 14,000 1,000 (9,100) 11,338 5,000 20,000

5,000 10,000 3,000

5,000 5,000 1,500 2,800 10,000 15,000 5,000

10,000 8,000 10,000

10,000 5,000 5,000

2,000 2,000

2,000

15,500 1,000 10,000

219,815

210,715

9,100

434,597

425,497

9,100

117

EXPLANATION OF THE PROFIT AND LOSS STATEMENT (CONTINUED) Number

Description

To be paid 31.12.11

Approved 2012

Paid in 2012

Free Fall 2012

To be paid 31.12.12

125,000

29,000

3,999 7,621 50,248 5,000

3,999 -

7,621 50,248 5,000

95,868

32,999

62,869

3,797 20,000 9,683

1,960 -

1,837 20,000 9,683

33,480

1,960

31,520

10,220 29,091 75,000 15,070 200 4,462 1,059 96

7,500 1,200 75,000

2,720 27,891 15,070 200 4,462 1,059 96

135,198

83,700

51,498

Projecten 2012

12.048

12.040 12.005A 12.003 12.021 12.039

12.007 12.022 12.006

12.004 12.015 12.036 12.035 12.038 12.044 12.029 12.020

118

Main beneficiaries The Dutch Red Cross Earmarked projects Theme: Sustainability Municipalities voor Duurzame Ontwikkeling Stg. Aarde-Werk Stg. De Koppel Stg. Afvalservice West Stg. House of Denim

Theme: Education Stg. Collusie Spinners Trust Stg. Uden Wereldwijd

Theme: Self Reliance Stg. Kennemerland-Oost Europa Municipality Leiden - Stedenband Dove International Fonds Gehandicaptensport Stg. VanHarte Stg. War Child Human Bridge Sweden Stg. Kledingbank Wageningen

Number

12.050 12.012A 12.049 12.005B 12.005C 12.010 12.019 12.018 12.017 12.037

Description

To be paid 31.12.11

Theme: Livability Swedish Red Cross Stg. Kinderboerderij Gennep The Dutch Red Cross The Dutch Red Cross Leidschendam The Dutch Red Cross . Voorburg The Dutch Red Cross . Leerdam The Dutch Red Cross . Zaligheden The Dutch Red Cross . Hoogeveen Natuur Milieu Educatiecentrum Maassluis Stg. Rotterdams Wijktheater

Approved 2012

Paid in 2012

10,313 477 16,687 5,874

10,313 477

12.001 12.005 12.008 12.011 12.012B 12.013 12.014 12.016 12.023

Sub total earmarked projects

Donated clothing to charity

16,687 5,874 5,874

4,397

3,264

1,431

23,856

8,000

8,000 10,790

69,383

5,000 9,044 14,026 4,924 15,439 1,923 2,604 2,500 4,000

To be paid 31.12.12

5,874

80,174 To still be assigned charity in consultation with municipalities t.b.d. with municipality t.b.d. with municipality t.b.d. with municipality t.b.d. with municipality t.b.d. with municipality t.b.d. with municipality t.b.d. with municipality t.b.d. with municipality t.b.d. with municipalityâ&#x20AC;&#x2122;s champion

Free Fall 2012

5,000 9,044 14,026 4,924 15,439 1,923 2,604 2,500 4,000

59,460

404,181

129,449

264,369

59,460 -

274,731

119

EXPLANATION OF THE PROFIT AND LOSS STATEMENT (CONTINUED) Number

Description

12.051 12.052

Other Projects Theme: Sustainability DOVE International Coรถperatieve Circle Economy U.A.I.O Stg. House of Denim

12.072

12.031

12.053 12.057 12.067 12.069 12.046 12.044

2011 12.058 12.056 12.059 12.060 12.063 12.068 12.070 06.85

120

Theme: Education Federatie van Idealistisch Democratische Turkse Organisaties Nederland Stg. Right to Play Stg. Lundazi Adoptieplan Groepsbeschikking Christelijk Gereformeerde Kerken Goodwill Group Foundation Stg. Orange Babies Stg. War Child

Theme: Self reliance Boodschappen Begeleidingsdienst Stg. SOS Kinderdorpen Nederland Stg. Kinderen Kankervrij Fonds Gehandicaptensport Stg. Koepel Nationale Kledingbanken DOVE International - . Knitting Project Stichting Ebenezer Stg. Leontien.nl Foundation To be determined

To be paid 31.12.11

Approved 2012

Paid in 2012

Free Fall 2012

To be paid 31.12.12

73,038 15,000

25,000 15,000

48,038 -

5,000

93,038

40,000

53,038

2,000

2,548 1,005 1,000

2,548 -

1,005 1,000

5,000 16,213 16,450

44,216

4,548

39,668

89 11,300 1,000 20,208 4,668

89 8,000 1,000 4,941 -

3,300 15,267 4,668

25,000

1,000 5,000 3,914

72,179

14,030

58,149

Number

12.030 12.032 12.061 12.066 12.047

Description

To be paid 31.12.11

Theme: Livability The Dutch Red Cross Johan Cruyff Foundation Association Culturelle . de l’amitié Belgo-Turque Hilal Hilfsorganisation E.V. Stg. Jantje Beton

Redistribution project 11.084, restitution in 2012

Approved 2012

Paid in 2012

Free Fall 2012

To be paid 31.12.12

55,043 3,000 2,500

21,820 3,000 -

33,223 2,500

5,000 6,335

71,878

24,820

47,058

(9,100)

Sub total other projects

272,211

83,398

(9,100)

197,913

Sub total projects 2012

1,065,761

602,217

(9,100)

472,644

531,682

1,065,761

1,031,693

93,106

472,644

2012

2011

Available for objective Execution costs for objective

1,207,161 (141,400)

1,309,048 (145,320)

Gross amount available for donation Less earmarked projects Less donated clothing to charity Main beneficiary

1,065,761 (404,181) (264,369) (125,000)

1,163,728 (398,567) (174,952) (125,000)

272,211

465,209

10,590,310

10,836,403

Basis for beneficiary contracts:

Net amount available for donation Total collected kilograms of textile Per kilogram available for objective Per kilogram gross available for objective Per kilogram net available for objective

€ € €

0.11 € 0.10 € 0.03 €

0.12 0.11 0.04

121

EXPLANATION OF THE PROFIT AND LOSS STATEMENT (CONTINUED) FUNDRAISING 14 ) Costs from own fundraising The clarification on costs from own fundraising can be found below: actual 2012

budgeted 2012

actual 2011

Salaries/ social burdens Pension costs Other personnel costs Remuneration for collection rights in municipalities Logistics third parties – transporters Logistics third parties – other Write offs/ result Maintenance costs collection bins Car expenses Housing expenses Office expenses Taxes and fees Advertisement and PR costs Consultancy costs Board expenses Other general costs Projects innovation Interest profit Bank costs Incidental profit Result participations / write offs participations

594,756 106,043 122,910 212,654 1,273,474 24,890 189,035 170,322 42,229 59,039 98,800 67,166 160,885 125,645 27,281 119,488 (15,129) 2,132 (93,106) 126,171

718,000 137,000 114,500 184,000 2,004,100 103,000 160,600 58,900 60,500 69,200 102,800 58,400 192,000 75,000 12,000 216,500 115,300 (18,000)

570,491 91,531 126,437 76,796 1,269,177 61,138 134,435 246,622 24,747 71,978 95,330 56,354 126,488 51,097 3,690 67,851 115,555 (20,919)

(2,800)

1,954 35,002

Total costs own fundraising

3,414,685

4,361,000

3,205,754

An explanation of the main differences between the actual result, budget 2012 and the realized result of 2011 can be found on page 124. For the purpose of providing insight in the size and composition of the costs from own organization there is a specification on costs from own fundraising. The costs of control and administration are processed according to the recommendation of the VFI, These costs are specified on page 124. The costs that fall under control and administration have been taken from the above entries.

122

Average employees

2012

budgeted

2011

21.7

20.0

18.1

Total Salary board members and supervisors Name

Employment terms Sort Hours Part-time percentage Period

H.B. Markowski chairman

A.A.A. Jansen board member

Indefinitely 40 hours a week 100% Month

Salaries Annual income Gross salary Contribution ZKV Contribution ATV Holiday fee * Km. Remuneration until July 2012

€ € € € €

93,167 3,149 2,077 7,564 5,886

€ € € € €

€ 6,618 -

Total annual income

€

111,843

€

91,746

SV burdens (employer) Taxable allowances/additions Net Pension costs (employer)

€ € €

6,390 5,606 36,455

€ € €

8,919 1,645 10,587

Total other costs and remunerations

€

48,452

€

21,150

Total salary 2012

€

160,295

€

112,896

Total salary 2011

€

160,503

€

113,979

85,129

* KICI has provided corporate cars to both board members, Mr. Markowski has a new car from 01/08/2012. . Mr. Jansen has had the corporate car for the entire year. The Supervisory Board uses the regulation ‘awards for board members of charities’ that was created in the VFI 2005 to establish the rewards for the KICI board, This calculation method in which various elements of a board member is described and weighted is periodically tested and if required necessary amended, In 2011 this test took place which concluded that the current awards provided to the board are fitting to the job description,

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EXPLANATION OF THE PROFIT AND LOSS STATEMENT (CONTINUED) Procedure appointment board and Supervisory Board. Both the Supervisory Board as the board of KICI has regulations in which various aspects have been described and recorded, The procedures regarding the appointment, suspension and resignation of board members/ members of the Supervisory Board are explicitly mentioned in these regulations.

CONTROL AND ADMINISTRATION Control and administration

Supervisory Board Board General Secretary Finance, Planning & Control ICT Housing and facilities HR Personnel costs (direct and indirect costs and hiring costs) -â&#x20AC;&#x201A; Administration costs, including HR -â&#x20AC;&#x201A; Accountancy costs Legal costs Communication Donators etc. Project administrations

actual 2012

budgeted 2012

actual 2011

100% 50% 100% 100% per ratio per ratio per ratio

11,338 148,150 31,100 87,200 12,404 18,791 -

12,000 143,000 32,600 40,700 10,700 15,000 -

3,690 137,241 23,000 39,795 6,970 17,994 -

100% 100% fixed price fixed price n.a. n.a.

85,849 26,275 5,000 10,000 -

56,000 22,000 5,000 10,000 -

82,496 21,427 5,000 10,000 -

436,107

347,000

347,613

For the purpose of providing sufficient insight in the size and composition of the costs of own organization there is a specification made regarding the costs of own fundraising. The costs of control and administration are processed according to the recommendations from the VFI. Explanation of the most important discrepancies between actual result 2012, budgeted 2012 and realized result 2011 Earmarked projects The earmarked projects show an increase compared to 2011 however the amounts are lower than budgeted for 2012. The increase was caused by the fact that more municipalities are requesting higher remunerations to KICI for the collection rights, These contributions can go to a charity appointed by the municipality.

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Free to spend projects The disposable room is lower than budgeted and compared to the previous year, This is mainly caused by the lower result compared to 2011 of approximately 100k, besides that KICI had to set more money apart for the remuneration to municipalities and other charities of approximately 175k, this resulted into approximately 175k lower than budgeted. Donated clothing The donated clothing has increased because KICI raised and donated more clothing to projects. Salaries / social burdens / pensions The salaries/social burdens and pensions have increased compared to the previous year, This is caused by an increase in FTEâ&#x20AC;&#x2122;s from 18,1 to 21.7. In 2012 KICI received some salary subsidies for innovation projects that KICI has executed, The subsidy received from the European Union was approximately 80k. Remuneration for collection rights in municipalities This has shown a significant increase compared to 2011, More municipalities are requesting remuneration for collection rights in their community. This increase is a direct consequence from the acquisition of collection contracts of the VAOP in 2011. Logistics third parties - transporters The costs for logistics third party (transporters) are significantly lower than budgeted and almost equal to the previous year. The decrease of costs compared to the budget is explained by the lower than anticipated collection of textile. Compared to 2011 the costs were almost the same, the lower kilograms of textile the higher the price for a collected kilogram of textile. Logistics third parties - other The costs for logistics third party (other) are evidently lower than budgeted and last year. . The difference is caused by the fact that the movement of collection bins was assigned to this entry in 2011. Write offs The write offs have increased compared to 2011 and the budget. The increase can be explained by the big number of (additional) invested collection bins in 2011. Maintenance costs collection bins The maintenance costs of the collection bins are higher than estimated but lower than 2011, The decline compared to 2011 is mainly caused by the renovation project for collection bins was completed in 2011. Optimizing the turnover per collection bins led to the relocation of the bins in 2012, therefore the costs were higher than initially anticipated.

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EXPLANATION OF THE PROFIT AND LOSS STATEMENT (CONTINUED) Car expenses The car expenses have increased compared to the previous year. This is caused by the investment of three corporate cars in 2012. Advertisement and PR costs The costs are higher than the previous year whilst lower than budgeted, The actual costs of 2012 are a result of a modification in policy which took place in 2012, The increase compared to 2011 is originating from the concept to increase the brand name of KICI, A cooperation agreement has been made with Zelv to enable to possibility for as much free publicity as possible. Consultancy costs The consultancy costs are significantly higher than the previous year, In 2012 the advice of third parties was called upon frequently. These costs are specifically costs of lawyers, support and advice of accountants, tax advisors and notary cost. Other general costs The general expenses have decreased compared to the previous year and the budget, The decrease compared to 2011 is mainly caused by lower travel expenses and representation expenses. The decrease compared to the budget is a direct consequence from the free fall of provisions and funds from 2011. Projects innovation This entry displays the costs for innovative projects such as the T4T, Textiles4Life and other research costs for finding different applications for non-wearable textile, In the end of 2012 the final subsidy for the T4T project from the EU was received. For further advancements of the machine provisions have been incorporated in the financial accounts 2012. Incidental profit KICI has decided in 2012 to let the provision, for homeless and dress for success of 2005 and 2006, fall free to benefit the result of 2012 and donated this to charities. Result participations This regards the negative result of MVOBouw B.V. (€ 41,567) and KICI BELGIUM BVBA (€ 79,798) in 2012, In addition KICI created a provision for the accounts receivables of MVOBouw B.V. (€ 4,806).

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BUDGET 2013 AND MULTIANNUAL ESTIMATES 2014 - 2016 (x € 1,000)

actual 2012

budgeted 2013

estimated 2014

estimated 2015

estimated 2016

Fundraising Result for the sale of used goods * net turnover * received donations * available for objective * costs from own fundraising * costs control and administration

5,117 41 (1,207) (3,415) (436)

6,301 12 (2,080) (3,860) (373)

6,672 30 (2,534) (3,784) (384)

7,426 36 (3,075) (3,991) (396)

8,219 48 (3,660) (4,199) (408)

Surplus before taxes

100

Available for objective * donations to fixed contracts * earmarked projects * other donations to charity * donated clothing * execution costs for objective

125 404 272 264 141

125 966 645 119 225

125 1,223 937 17 232

250 1,408 1,159 20 239

250 1,602 1,540 23 246

2,080

2,534

3,075

3,660

Total available for objective

1,207 *

* As of 2013, the municipal collection fees are ranked among earmarked projects and donations to fixed contracts. Partly because of this shift, the amount ‘available for objectives’ increases more than proportionally from 2013. The ‘remuneration for collection rights municipalities’ is therefore shown as nil.

Did you know…?

KICI created a KICI-quality label for waterproof, underground containers in order to improve the quality of clothing, the so-called ‘KICI-Keur’.

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BUDGET 2013 AND MULTIANNUAL ESTIMATES 2014 - 2016 (CONTINUED) (x € 1,000) Costs from own fundraising Salaries/social burdens Pension costs Other personnel costs Logistics third party – transporters Logistics third party – other Remuneration for collection . rights municipalities Write offs Maintenance costs collection bins Car expenses Housing costs Office costs Taxes and fees Advertisement and PR costs Consultancy costs Other general costs Projects Interest profit Bank costs Incidental profit Result participations / write off participations

actual 2012

budgeted 2013

estimated 2014

estimated 2015

estimated 2016

595 106 123 1,273 25 213

480 142 151 1,749 5 -

495 147 156 1,800 5 -

510 151 161 1,968 5 -

520 154 165 2,144 5 -

189 170 42 59 99 67 161 126 27 119 (15) 2 (93) 126

158 152 45 66 121 83 147 120 312 94 (18) 53

181 157 46 68 124 85 152 124 316 (21) (51)

215 161 48 70 128 88 156 127 321 (18) (101)

246 166 49 72 132 91 161 131 324 (10) (150)

3,415

3,860

3,784

3,991

4,199

* As of 2013, the municipal collection fees are ranked among earmarked projects and donations to fixed contracts. Partly because of this shift, the amount ‘available for objectives’ increases more than proportionally from 2013. The remuneration for collection rights municipalities’ is therefore shown as nil.

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(x â&#x201A;ŹÂ 1,000) Costs control and administration Supervisory Board Board General Secretary Finance, planning & control ICT Housing and facilities HR Personnel costs (direct and indirect costs and hiring costs) - Administration costs, . Including HR - Accountancy costs Legal costs Communication Donators etc. Project administrations

actual 2012

budgeted 2013

estimated 2014

estimated 2015

estimated 2016

11 148 31 87 12 19 86

12 123 71 78 15 21 15

12 127 73 80 16 22 15

13 131 75 82 16 22 16

13 135 77 85 17 23 16

26 5 10 -

23 5 10 -

24 5 10 -

24 5 11 -

25 5 11 -

436

373

384

396

408

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Goedkeurende accountantsverklaring BDO Audit & Assurance B.V.

130

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Colophon Text Management and employees KICI Foundation Final editing H.B. Markowski, chairman Photography M.m.v. Bauer SĂźdlohn, Maurits Bong, Fashion2, Fonds Gehandicaptensport, . Idealen Kompas, Marlous Pelser, het Nederlandse Rode Kruis, Loesje Praktijken, . Maarten van Renssen, Marius Roos en WielandÂ Textiles B.V. Concept, design and realization Zelv, Eindhoven Stichting Kledinginzameling Charitatieve Instellingen is registered in the . commercial register of the Chamber of Commerce under number 41152499.

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Stichting Kledinginzameling Charitatieve Instellingen (KICI) Colijnplein 20, 2555 HA The Hague, The Netherlands Tel. +31 70 3830 306, Fax +31 70 3851 550, info@kici.nl www.kici.nl

The CBF-Keur is awarded to fundraising organizations that raise money in a responsible way for charity. The label provides a guarantee that your money or goods are delivered effectively. KICI was in 2001 the first clothing collector who received the CBF-Keur.