Kici jaarverslag 2013 uk lr by Stichting KICI

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I would like to take you through this an nual repo rt.

Annual Report 2013

t a h w s i s i h “ T have to say” t he y Foreword ........................................................................................................

Objective, Policy and Strategy ................................................................ 7 1.1 Strengths and weaknesses – Opportunities and threats ................ 9 1.2 Risks / points for attention ............................................................ 10

Governance & organisation ..................................................................... 2.1 Procedures and control.................................................................... 2.2 CBF Quality Mark............................................................................. 2.3 Quality Mark for Charities ............................................................... 2.4 The 2013 Transparent Award ........................................................... 2.5 Cooperation with other organisations .............................................

Vision for the future ............................................................................... 19 3.1 Prospects for 2014 .......................................................................... 20

The organisation ..................................................................................... 4.1 Staff changes .................................................................................. 4.2 Sickness absence............................................................................. 4.3 Environment ................................................................................... 4.4 Customer satisfaction survey ......................................................... 4.5 ISO 9001-2008 ................................................................................ 4.6 ISO 14001 / environment ................................................................ 4.7 Ohsas 18001 .................................................................................... 4.8 KICI Quality Mark ............................................................................ 4.9 Board ............................................................................................... 4.10 Supervisory Board ........................................................................... 4.11 Organisational chart KICI as at 1 January 2014 ................................ 4.12 KICI BELGIUM b.v.b.a .......................................................................

23 24 24 24 25 26 26 27 28 29 30 34 35

Stakeholders ........................................................................................... 5.1 Name recognition ............................................................................ 5.2 Consumers ...................................................................................... 5.3 Municipalities .................................................................................. 5.4 Partners in the chain ....................................................................... 5.5 Beneficiaries.................................................................................... 5.6 Employees .......................................................................................

37 38 38 41 44 44 44

13 14 14 14 14 15

Collect ...................................................................................................... 47 6.1 Container collection ......................................................................... 48 6.2 Growth of collection volume ........................................................... 48 6.3 Situation on second-hand textile market ....................................... 49 6.4 Municipalities realise LAP² .............................................................. 49 6.5 Ministry of Infrastructure and the Environment ............................. 50 6.6 Door-to-door collection ................................................................... 52 6.7 Alternative channels ....................................................................... 52

Donate ..................................................................................................... 55 7.1 KICI’s Charities Policy ...................................................................... 56 7.2 Beneficiaries in 2013........................................................................ 58 7.3 KICI Projects in Kenya ..................................................................... 67 7.4 The development of the KICI Kenya projects in 2013 ...................... 68

8. Fundraising .............................................................................................. 73 8.1 Objectives of fundraising ................................................................ 74 8.2 Core values ...................................................................................... 75 9. Innovate .................................................................................................. 77 9.1 Objective of innovation ................................................................... 78 9.2 China ............................................................................................... 79 10.

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Abbreviated financial overview .............................................................. 80 10.1 Abbreviated financial report ........................................................... 81 10.2 Profit and Loss Account over 2013 .................................................. 82 10.3 Multiannual profit and loss account ................................................ 85 10.4 Abbreviated cash flow statement ................................................... 90 10.5 Collected kilos and net revenue ...................................................... 91 10.6 Conclusion ....................................................................................... 93

Accountability statement ............................................................................... 94 11. Annual accounts ...................................................................................... 100 Audit opinion BDO Audit & Assurance B.V. .................................................... 136

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Foreword Supervisory Board In 2013 the results of KICI can, in terms of revenue in cash and in volume, be called good despite the economic conditions and the decline of the market and margins. The total revenue for charity arrived at € 1,269,000. In 2012 this amounted to € 1,066,000.

In order to absorb the declining volumes of collected textile in the Netherlands ample energy was dedicated to the organisation of collection activities, inter alia in Belgium and Scandinavia. The Supervisory Board supports this strategy proposed by the Board and is following the results accurately. In the course of the year it became apparent that the activities in Belgium contribute insufficiently to the objectives of KICI. That is why it was decided to discontinue these activities as from 2014. In the course of 2013 investments were again made in collection channels other than municipalities. Despite the fact that the results hereof lag behind the expectations the Supervisory Board still agrees with the vision of the Board to further develop this. In 2013 the Board discussed the strategy of KICI with the Supervisory Board on multiple occasions. It was decided to opt for a growth strategy: • growth in collection; • further development of innovative profitable concepts to sustainably process nonwearable clothing in other useable products. Thus KICI remains fellow investor in the development of a machine that can perform automatic sorting on the basis of the fibre type.

As in the past years transparency remains a core element of KICI. There is proper insight into the income flows and the thereto pertaining efforts. In terms of the spending to charities account was rendered on the basis of established criteria. KICI also complies with the criteria for the CBF Quality Mark. Finally, tracking of the flow of goods takes place in the entire chain. The Supervisory Board realises that the market conditions in 2014 will continue putting pressure on the results of KICI. The pursued strategic direction is further evaluated in 2014 and, where required, strengthened. It goes without saying that we wish to thank everybody who made an effort to make the result of KICI possible.

Charles Gevers Chairman Supervisory Board

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Objective, Policy and Strategy Traditionally KICI is a charitable clothing collector. The clothing donated by citizens is marketed sustainably. The proceeds hereof are donated to charity by KICI. Apart from the strategy to collect as many kilos of textile as possible in different ways KICI also focuses on innovation. Finding sustainable innovative solutions for reuse of non-wearable textile equally represents a priority for KICI. The latter on account of the fact that in the last couple of years the percentage of non-wearable clothing has increased considerably.

g n i h t o l c e a bl r a e -w or new clothing or n o “ Nis used f < for a chair! Cool right?”

Annually KICI prepares a budget that is followed accurately. This regards quantification of the activities via financial indicators and of kilos of textile via volume indicators. For instance in 2013 we realised a revenue of € 5,951,000 (in 2012 this was € 5,117,000). Eventually this was € 215,000 lower than budgeted.

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The most important reason for this is that the number of collected kilos of textile was lower than budgeted, despite the fact that KICI marketed this at a higher average sales price: € 0.52 per kilo in 2013 compared to € 0.48 in 2012. Apart from the key indicators it was again possible in 2013 to reduce the total operational costs to € 5,926,000, € 387,000 lower than budgeted (€ 6,313,000). Clear steps forward were also taken in the area of innovation. The automated sorting machine developed with EU subsidy is now, after the necessary and fairly fundamental changes, properly operational: we look forward to the further commercialisation in 2014.

The objective to also become active beyond the national boundaries was partly successful. We processed much textile from Scandinavia however the activities in Belgium were discontinued as at 31 December 2013. Various efforts to win a tendering process in Germany were also unsuccessful. A management report and a financial report are issued on a monthly basis. They are compared with the budget, which is also available on a monthly basis. Differences are explained and, if so required, measures follow to adjust certain matters

1.1 Strengths and weaknesses

in the interim. In 2013 the Board and the Supervisory Board of KICI dedicated ample time, relatively speaking, to the formulation of the correct strategy for the years to come. In November 2013 the Supervisory Board decided to add an interim director to the team who was, inter alia, assigned the formulation and implementation of the strategy to be pursued. The position of KICI in the market is regularly scrutinised. Strengths and weaknesses, opportunities and threats are evaluated. At the moment the Management and the Board see the current positioning of KICI as follows:

Opportunities and threats

Strengths

Weaknesses

- Innovation - Sustainability - Technical state of material - Service - Distinguishing reporting - Reaction speed in case of customisation - Network - Transparency

- Price (results to very little financially for the municipality) - Little name recognition - (Still) very few social return projects - More empowerment required

Opportunities

Threats

- Fully utilise sustainability image - Elaborate service aspects: do more, offer more - Emphasise distinguishing reporting more expressly - Utilise and further expand network

- Economic decline, hence lower return street containers - Price-based tendering processes - Charitable components become of subordinate importance to municipalities - Dependence on external factors (world prices) - Current level of sales prices is historically high - Quality of collected textile deteriorates

1.2 Risks / points for attention Further to the first Risk Analysis (2010) in the last couple of years KICI took a number of steps to reduce or mitigate risks. The following improvements were, inter alia, implemented:

1. 2.

The bad debt risk was reduced by further expanding bank guarantees and/or security deposits.

Recently the return analysis has been set up for the monitoring of the collection fees that we need to pay to the municipality. This way it is clear what a municipality contributes to the result of KICI.

3. KICI looks for alternative income possibilities, e.g. the implementation of an in-house transfer or sorting installation, collection channels abroad and the generation of income from the non-wearable part of the collected (innovation).

4. In addition some process risks were reduced by improving the routing of the invoices and by, for instance, checking the name of the beneficiary and the thereto pertaining bank account number more effectively.

5. Since a couple of years KICI has been ISO certified. As a consequence the internal processes were further elaborated, improved and established. Handbooks were also prepared that are accessible to all the employees.

6. In the area of automation various improvements were implemented in the past years (passwords, back-up and recovery procedures). For the further improvement of the automation and the security thereof further steps were taken in the fall of 2013.

The new Risk Analysis prepared in 2013 focuses (however not exclusively) on the following points:

Risks / points for attention for the business and environmental survey Risks / points for attention that cannot or barely be influenced: - Limited upward price potential due to cheap new textile (the new and used price approach each other ever more). - Change of the exchange rate of the dollar; third world countries will purchase less in euros due to the low dollar exchange rate. - Riots and political events in the (export) third world countries. - Changed government policy to combine small municipalities, which can often lead to compulsory tendering processes (and therefore higher prices). Small, free municipalities will disappear to an increasing extent. - As carriers and buyers transport or purchase large quantities the termination of the operation by one of them can result in a problem for KICI. Risks / points for attention in respect of which action can be taken to reduce the risks: Problem - The fact that the quality of the collected clothing becomes ever more inferior. - Other applications required for the nonwearable part of the collected clothing (alternative applications are already being examined). - Attention for deficient debtors as also for the risk of non-compliance with the payment obligations by buyers of the buyers of KICI. - Long-term agreements / arrangements with municipalities or other institutions at a higher price.

- Large investments required in new branch of business (non-wearable part) to realise money / profit from the non-wearable clothing. - The credibility of KICI is very important. If KICI loses its credibility then it will collect considerably less clothing. - Vulnerability due to limited core activities (KICI only collects clothing). - Registration and archiving of permanent file.

Risks / points for attention for internal and external fraud possibilities After the various meetings with employees and the Board of KICI the following fraud possibilities became clear: - Drivers can agree on arrangements with sorting companies. - Undue payments can be made. - Staff can mutually agree on arrangements with suppliers (shared bonus in case of sales). - Clothing can be removed from containers and/or lorries unlawfully. - Staff can mutually agree on arrangements with clothing suppliers and possibly sell the clothing themselves. The Risk Analysis is updated periodically and is again on the agenda at the beginning of 2014.

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Governance & organisation All relevant business processes were described and established in an AO/IC handbook. This forms the most important basis for testable control on correctness of the relevant business data. In 2013 the described procedures were also tested within the framework of the ISO (9001 and 14001) certification. This annual test requests all employees at KICI to critically evaluate the effectiveness of the existing activities and offers the opportunity to implement improvements. The described procedures also safeguard the necessary separation of functions, clarity in responsibilities and authorities of the various employees.

2.1 Procedures and control Monitoring of the result development takes place on a monthly basis via extensive and detailed management reports. In this context the status of the current projects and newly allocated beneficiaries and subsidy applications are geared to the development of the space available for objectives. KICI does, for that matter, not consider a proper planning and control cycle and procedural handbook exclusively a formal obligation. We use this to, where possible, improve the quality and effectiveness of the business processes and thus to generate an optimal result for the charities. Periodically BRG Accountants en Belastingadviseurs critically assesses the results prepared internally and advises in the tax and commercial area. Also thanks to these measures KICI complies with all statutory requirements and obligations.

2.2 CBF Quality Mark

KICI basically holds the CBF Quality Mark until 1 July 2015. However in January 2012 the Regulations of the Central Fundraising Bureau (‘Centraal Bureau Fondsenwerving’ or ‘CBF’) were adjusted: an exception no longer applies to clothing collectors compared to other fundraisers in terms of the permitted percentage of fundraising costs in proportion to the fundraising proceeds. That is why well before this deadline KICI will enter into discussions with the CBF in order to find a solution for maintaining the Quality Mark.

2.3 Quality Mark for Charities

The Quality Mark for Charities annually organises a re-evaluation. KICI complied with the imposed requirements and we can use the Quality Mark again up to the end of 2014.

2.4 The 2013 Transparent Award

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It goes without saying that with its 2012 annual report KICI again participated in the Transparent Award, the award organised for social organisations that are engaged in fundraising amongst the Dutch public or that otherwise dedicate money and resources to a social or charitable objective. Unfortunately we were not nominated. The points for improvement were taken to heart. Since 2011 BDO Audit & Assurance B.V. has been the auditing accountant that provides for the desired and necessary unqualified

opinion on the basis of its audit. The findings of the external accountant are established in the draft audit opinion and discussed with the Board and the Supervisory Board. The opinion also forms a good instrument to improve the quality and effectiveness of business processes and to reduce fraud possibilities.

2.5 Cooperation with other organisations

Fund for Disabled Sports Periodic meetings also take place with the Fund for Disabled Sports (‘Fonds Gehandicaptensport’ or ‘FGS’). In 2013 we started direct contact between KICI and the many sports associations with a textile collection container. KICI made its best effort to, where necessary and possible, adjust the existing cooperation in order to improve the return and to maintain the satisfaction. The number of collected kilos increased by 21% compared to last year to 273,000 kilos.

Dutch Red Cross For many years cooperative arrangements have been in place with various charities. At the moment the relationship with the Dutch Red Cross (‘Nederlandse Rode Kruis’ or ‘NRK’) is the most important. Meetings at management level take place periodically about the possibilities of strengthening each other in publicity and the operation. Apart from the fact that the logo of the Dutch Red Cross adorns the green KICI container, there are activities at various other levels. The effectiveness is difficult to measure beforehand but at the moment a pilot is taking place in the course of which collection results of certain KICI containers with and without logo of the Dutch Red Cross are measured in time.

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As from 1 January 2014 Cees Breederveld took farewell from the Dutch Red Cross as general manager. We thank him for the pleasant cooperation and we wish his successor Mr Gijs de Vries all the best in his new position. At the end of 2014 the five-year agreement between KICI and the Dutch Red Cross expires. Meetings about a possible continuation will therefore take place as from mid-2014.

Missing Chapter Foundation (MCF) The Missing Chapter Foundation (MCF) is engaged in sustainability in a broad social and socio-economic context. The MCF believes that sustainability is more than jus a ‘green theme’. They cooperate with organisations that intend to give shape to this concept in an ethical, creative and innovative manner. The most important target group of the activities is represented by decision-makers in the public and private sector. They stimulate them to enter into discussions with children, young people and young professionals in order to expand and adjust their view of sustainability. Thus the MCF fulfils the role of ‘connector’ between generations. KICI and the MCF jointly approach large players in the textile sector in order to define sustainability in the textile sector in relation to specific themes and to, where possible, speed up the solution thereof. www.missingchapter.nl Kringloop Midden Holland and Wieland Textiles B.V. Cooperation is also in place with customers like Kringloop Midden Holland (KMH). In conjunction with Wieland Textiles B.V. good-quality clothing is sorted and delivered for the thrift shops of KMH. The cooperation with Wieland Textiles also extends to the area of innovation: KICI and Wieland expressed the ambition to ensure that the automated sorting machine works properly, however with a different detection unit and entirely new software and database.

Eventually, this was successful at the end of 2013 and both parties are very optimistic about the steps that can now be taken. Various large organisations have expressed their interest and the meetings are under way. www.kringloop.nl www.wielandtextiles.com Dove International, Kenya In 2013 the cooperation with Dove International in Kenya, a local foundation that has been our partner for many years, came to an end. Reason for this is that KICI decided to discontinue the activities with its own projects in Kenya. A start was made in 2013 and this will be concluded definitively in 2014. Spinners & Spinners Ltd., Kenya The cooperation with Spinners & Spinners Ltd. in Kenya will still remain active for a number of years. Spinners & Spinners is a textile manufacturer in Kenya that feels very strongly about CSR. Together with KICI this organisation did a lot of good for the local population of Ruiri, inter alia by realising projects for the improvement of the local road and school building. www.spinners.co.ke

Retourette B.V. and MVOBouw B.V. In 2013 the minority participations in the Netherlands of KICI in MVOBouw B.V. and Retourette B.V. did not contribute to the result but also requested little attention. www.retourette.nl www.isolatiemetisse.nl In the course of 2013 intensive discussions were held with a small carrier / collector in order to arrive at a structural cooperation and/or takeover. Eventually it was decided to break off these discussions as KICI feels that the payable goodwill is too high. KNIB B.V. In 2013 KNIB B.V., incorporated on 29 October 2013, of which KICI is the sole shareholder was not operational yet.

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Vision for the future Key objectives for 2014 In 2014 one of the key objectives will be to increase the volume of collected clothing as much as possible with a satisfactory margin and, if so requested, with deployment of social return projects. Another important point is the capitalisation of the investments that KICI has made in the area of innovation in the past years. In this respect in particular the processing of non-wearable textile and the relevant textile applications deserve attention. The ‘closing of the circle’ and therefore application of the circular economic model is very important to many of our meeting partners and is expanded further.

Objective hereof is to be able to continue donating as much as possible to charity and to turn non-wearable textile into a valuable raw material for new clothing.

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3.1 Prospects for 2014 From a financial perspective much will depend on the successful collection of more kilos of textile, the realised sales price of the same and the costs of the operation. The prospects for 2014 are that both the volume and the realisable market price of sold unsorted textile will be under pressure. In particular the latter development is a cause for concern; the increase of sales prices over many years really seems to come to an end. The current signals are already crystal-clear at the international level whilst the prices of Dutch origin still remain relatively high. It is, however, expected that they will stabilise or could even be subject to a decrease in the second half of 2014.

We need to create more focus and formulate, implement and actually carry out the strategy more specifically. We will start this in 2014.

Baffles

The developments of the international market prices of unsorted and sorted textile will have a considerable impact on the ultimate operation of KICI. The signs do not bode well, our customers are ever more confronted with slower payers, more disputes with their buyers, higher import duties and exchange rate fluctuations. The further development and actual operation of the automated sorting machine will also form an important factor for the success of the year 2014 for KICI.

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The Organisation The office of KICI is housed on the top floor of an office building at theÂ Colijnplein 20 in The Hague. The design takes the environment into account, inter alia by using recycled floor covering and by installing aÂ waterless urinal. The LED lighting was donated to KICI. For the emptying of the containers and transport KICI has pleasantly worked with external carriers for many years.

In 2013 the organisation consisted of 19.9 FTE. In 2012 this amounted to 21.7 FTE. The employees at the KICI office are, in addition to Dutch, of Turkish, Iraqi, Surinamese and Chinese origin. In 2013 the average occupancy, including the Board and trainees:

In 2013 two employees went on maternity leave. The activities of KICI BELGIUM BVBA were discontinued at the end of 2013, the Commercial Manager / Business Manager left the employment as at 31 October 2013. This position is not filled again.

4.2 Sickness absence

9,9 men

10 women

All employees of KICI are annually assessed on their performance. Activities and responsibilities are, where required, adjusted. KICI is a small and flat organisation and the lines of communication are usually short. KICI enables its employees to participate in training that is relevant to their field of expertise. The employees of the Commercial Affairs Department participated in a threeday Professional Selling Skill training in December, which is expected to have again provided them with sufficient tools. Employees can in consultation participate in relevant seminars and workshops.

4.1 Staff changes In 2013 five employees took up employment. Three of them were employed on a temporary basis and also left the employment again in 2013. In addition two employees also left the employment (hence a total of five). These vacancies were partly filled. A position at the secretariat was filled differently in order that this employee can also support the Financial Department on a part-time basis.

The sickness absence over 2013 amounts to 5.51% compared to 6.01% in 2012. This is considerably higher than the Dutch average in 2013, which is about 4%. Reason for this higher percentage is the prolonged sickness of one of the employees. To reduce the sickness absence the Board established the stimulus that each employee who has not been absent on account of sickness for a period of six months receives one additional day off.

4.3 Environment The toners used for printers and copiers are collected in a collection box and offered to Van Klaveren for Foundation Aap. A separate collection box is also available at the secretariat for small electronic devices, batteries, energysaving and LED bulbs. As soon as the box is full it is handed in at a collection point. Paper and plastic are separated from the residual waste. Sending of the monthly reports for the municipalities where KICI collects and most of the invoices takes place digitally as much as possible. The same applies to other correspondence that does not necessarily need to be sent by post.

4.4 Customer satisfaction survey It follows from a survey amongst the contact persons at the KICI municipalities held in the fall of 2013, inter alia, that 74.1% of the customers are satisfied or even very satisfied with the contact with the account executive of the Foundation KICI. Last year this percentage was slightly lower, namely 62.7%. The majority is also satisfied with the reporting of the collected kilos of textile; 26% even indicate to be very satisfied with this. In general the customers are satisfied with the digital newsletter, the annual report and the website. In respect of the following aspects the most frequently occurring answer is satisfied or neutral: - number of kilos of textiles collected via the containers; - frequency of emptying of the container(s); - the number of locations of the container(s); - capacity of the container(s); - handling of full notifications and/or complaints (a score of very satisfied of 16.7% of the respondents!).

Clothing collection must remain of a charitable nature, most of the respondents agree with this (90%). This was the first time that this question was asked in the survey. A number of respondents did provide an explanation. These respondents wondered whether clothing collection can remain charitable in these times where municipalities need ever more money. In general the respondents were satisfied with or neutral about the general communication of KICI and the frequency thereof towards the citizens of the municipalities. A number of subject matters did come to the fore in respect of which KICI can still communicate better and more specifically. E.g.: ‘How to get more textile from the residual waste?’ ‘What happens with nonwearable textile?’, and ‘Can all textile waste indeed go into the textile container?’. On average the customers gave the cooperation a final score of 7.5. This is a slightly lower mark than last year, when we scored an 8. However, at the time there were 26 fewer respondents (59 in 2012 compared to 85 in 2013) who completed this question.

The way that KICI spends the proceeds of the collected textile to charity is for 90% known to the customers. In addition 77% of the customers is familiar with the innovative products. Both figures are approximately the same as for last year.

4.5 ISO 9001-2008

4.6 ISO 14001 / environment

In November 2013 KICI was again able to obtain the certificate for ISO 90012008, without any deviation. The new certificate is valid up to 2017. ISO 9001 is an international quality standard and obliges KICI to continuously improve the process management, quality policy and customer orientation.

Apart from ISO 9001-2008 a new certificate was also obtained for ISO 14001. This certificate implies that KICI visibly complies with improvement of the environment.

This varies from practical awareness, inter alia by separating waste at the source, by switching off the PCs, lights, heating or air conditioning after use, and the conscious deployment of mobility. The account executives of KICI also regulate the arrangements with customers as environmentally friendly as possible. The number of business kilometres (including flights and public transport) is registered as well as the energy, gas and water consumption. An agreement was concluded with Trees for All in order to compensate for the CO2 emission. Over 2013 578.25 tonnes of CO2 emission were compensated. Over 2012 this amounted to 517.75 tonnes of CO2.

4.7 Ohsas 18001 In November 2013 KICI obtained the Ohsas 18001 certificate, without annotations. This is the norm accepted worldwide for a

responsible working conditions management system. KICI feels very strongly about the health and safety of its own employees and of hired staff. Via this system possible hazards and risks can be identified and subsequently reduced or eliminated.

The climate (climate control in the office) appeared to be an important point for attention in the inventory amongst the employees. Where necessary improvements are implemented in order to optimise the climate. In addition, as from 2013 we annually hold a work pressure inventory amongst the employees and the outcome hereof is discussed at an individual level with the supervisor.

KICI spoke with, inter alios, a number of carriers in order to check how safety for the drivers on the road and in the workshop has been regulated there. Where necessary, points for improvement were provided in joint consultation. Internally a working conditions policy was set up containing, inter alia, clear rules about sickness absence, the policy regarding vulnerable groups, a code of conduct and rules for the company emergency response service.

4.8 KICI Quality Mark

On 30 October Marco van der Put (left) awards the KICI Quality Mark to Jan Kroon of BWaste International.

In 2013 KICI developed its own KICI Quality Mark for containers to make sure that textile is collected dry as much as possible. In practice it becomes apparent that a bit of water can still penetrate a textile container through welding seams and small cracks. This is not a problem for a bottle bank but it is for a textile container. Wet textile is worthless and cannot be reused. Meanwhile the KICI Quality Mark has been awarded five times to the largest and most important suppliers of collection containers for KICI. Hence this results in a considerable improvement of the collection return and therefore for the environment.

Ruud M. Conijn of Bauer receives the KICI Quality Mark from Wytze van der Zwan.

AndrĂŠ Jansen presents the certificate to Maris van der Maas of MCB Milieu & Techniek.

4.9 Board As from 1 November 2010 the Board of KICI is formed by Mr Hans Markowski; Chairman of the Board / General Manager and Mr André Jansen; Member of the Board / Operational Director. Together they are responsible for the analysis and the implementation of the established policy, each with their own areas of attention. Having regard to the strategic choices that the organisation is facing, in November 2013 an interim director was added to the team.

In 2013 Hans Markowski had three ancillary positions: member of the board of the industry association Textile Recycling Association (‘Vereniging Herwinning Textiel’ or ‘VHT’) and member of the Certification Committee of the VHT. In addition he is, on behalf of KICI, director of Textiles4Textiles B.V. André Jansen did not hold any ancillary positions.

Core values of KICI

, m s i l a e Id better wor ld a

s s e r g o 2. Pr r i t g y e t , n i , y t s e 3. Hon responsibility 4.

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4.10 Supervisory Board

Let’s start with an introductory round! Mr Drs Ing. C.F.M. Gevers (53), Chairman TenneT Holding B.V, Arnhem, Corporate Procurement Ancillary positions: Chairman of the Client Council of the Diakonessenhuis Utrecht/Zeist/Doorn

Mr P. de Vries, LL.M. (53) Senior Lawyer / Process Manager Sight Ancillary positions: Member of the Municipal Audit Office of Capelle a/d IJssel Board Member of the Bedrijvenkring Spijksedijk

Mr J. Tammel (66), Vice-Chairman Retired Ancillary positions: Member of the Supervisory Board of the Foundation Zorgbeheer De Zellingen Chairman of the Supervisory Board of the Wijktheater Rotterdam Chairman of the Foundation Capelse Sportfederatie Secretary of the Foundation Behoud van het Beijerinckgemaal

Mr Drs C.G.M. Brockhoven MBM (52) Communications Director Enexis Ancillary position: Board Member of the Foundation Erasmus Festival Brabant

Mrs Dr S.A. Hertzberger (62) Ahold Europe, Senior Director Product Integrity Topics Ancillary positions: Member of the Supervisory Board of the Dutch Accreditation Council Board Member of the Council on Animal Affairs Chairman of the Supervisory Board of Fluxus Centrum voor de Kunsten, Zaandam Editor-in-Chief of the VoedselVeiligheid/VMT magazine

Remuneration Supervisory Board The members of the Supervisory Board receive a fee for every attended meeting. This implies a fee of € 400 per meeting for the chairman and the vice-chairman; the other members receive € 270 per meeting. In 2013 a total of four regular meetings and a number of strategy sessions took place.

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F.l.t.r. (back) Mr P. de Vries, Mr J. Tammel and Mr C.F.M. Gevers, (front) Mr C.G.M. Brockhoven and Mrs S.A. Hertzberger.

Is this a temporary composition? In 2013 there have not been any changes in the composition of the Supervisory Board, which consists of five members. The planned recruitment of a new candidate, with a preference to someone with specific branch knowledge, is postponed until there is more clarity on board composition and strategy. Retirement schedule of the Supervisory Board Name

Position

Appointed

Reappointed

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

Chairman Vice-Chairman Member SB Member SB Member SB

21-4-2008 21-4-2008 21-4-2008 21-4-2008 14-06-2011

2012 2012 2012 2010

Year of resignation 2016 2016 2016 2014 2015

Eligible for reappointment

2015

What does the Supervisory Board do? The Supervisory Board is, in its capacity of internal supervisory organ, responsible for and encumbered with: - the supervision and the evaluation of the policy of the Board and the general course of affairs within KICI; - the function of advisor and sounding board for the Board; - the employment practices with regard to the members of the Board; - the appointment and dismissal of the members of the Board; - the interpretation of statutory supervision and approval rights and strategically important resolutions; - the regulation of its own activities; - the accountability in respect of the way that the Supervisory Board interprets its supervisory role; - the granting of discharge to the Board.

How often did a meeting take place? Four regular meetings and a number of separate sessions.

What was discussed in 2013? In 2013 the Supervisory Board held four regular meetings during which discussions took place with the Board regarding the general course of affairs and specific developments within KICI. The discussions and the advice regarded, inter alia, the following subject matters: - 2012 annual report and annual accounts; - audit opinion of the external accountant; - 2014 budget and annual plan; - trends in the market; - market position of KICI compared to other parties over the last five years; - possible participations; - collection agreements; - foreign activities; - strategy of KICI; - update on status of innovations, including business plan; - corporate social responsibility policy. Moreover, a number of separate sessions were organised to brainstorm about the longterm vision and the strategy of KICI.

What resolutions were adopted? All approval resolutions to be adopted according to the articles were adopted by the Supervisory Board, i.e. the 2012 annual accounts and annual report, the budget and the 2014 annual plan. The discussions with the Board took place in the meetings of the Supervisory Board. The members of the Board attended the meetings. Moreover, there were frequent interim discussions between the Chairman of the Board and the Chairman of the Supervisory Board. At the request of the Board some members of the Supervisory Board advised on a number of specific subject matters. The discussions between the Board and the Supervisory Board had an open and constructive character.

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How do matters really stand? The Supervisory Board assesses the results of KICI and its Board as good. Financially the results are lower than budgeted however still an improvement compared to 2012. Due to the efforts of the organisation as a whole the number of collected kilos is, indeed, lower than expected however higher than last year. This still results in a substantial contribution of money for carefully selected and responsible charities. The charities for 2013, financial results, the collected volume, transparency in the chain and cooperation with the Dutch Red Cross were partly realised. Important steps were again taken for the reuse of non-wearable clothing, however the commercial effect hereof is still lagging behind the expectations. The external accountant discussed, at the request of the Supervisory Board, the audit opinion and the management letter with the Supervisory Board in the presence of the Board. Matters such as control, payment traffic and fraud were discussed and were deemed to be in order. The policy pursued with regard to the reservations and investments was also discussed and approved.

4.11 Organisational chart KICI as at 1 January 2014

Supervisory Board (5)

Interim Director (1)

Board (2) (General Manager Operational Director)

Secretary (1)

Financial Administration (1) Marketing and PR (1) Overhead Services / Secretariat (4)

Commercial Affairs (5)

Projects (1)

Logistics (3)

Innovation (2)

4.12 KICI BELGIUM b.v.b.a On 27 June 2012 the official incorporation of KICI BELGIUM BVBA, a community interest company, took place. Thus KICI entered the Belgian market. Unfortunately we had to decide to discontinue all activities of KICI BELGIUM for strategic reasons as from 1 January 2014.In January 2014 all on-going activities are concluded.

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StakeÂ holders The textile industry is in full swing. Slowly ever more attention is paid to the separation and collection of textile, however this can still be improved. In 2013 135 million kilos of textile were still thrown away with the residual waste. KICI feels that it is important to keep indicating in the media that textile in general can be reused. Previously only good-quality clothing could be donated in the textile container. Nowadays clothing of a more inferior quality or household textile can also be recycled. The latter is far from generally known. Hence it was important to KICI to inform the whole of the Netherlands about this asÂ one of the first collectors in 2013.

5.2 Consumers

In 2012 KICI aimed at more name recognition. In 2013 this also continued. There is a difference between the brand value that KICI accrued within the textile sector and outside of it. Within the textile industry KICI is known as a professional and charitable collector. Outside of the textile industry people are less familiar with KICI. This basically regards consumers. Consumers decide to bring their textile to the nearest container. They do not, or barely, pay attention to the name of the organisation. As a consequence the name recognition of KICI is fairly low. In the last couple of years we aimed at enhancing the name recognition of KICI amongst all target groups by using free publicity and by participating in, for instance, various television programmes and social media. The effect hereof is that ever more people know their way to the website of KICI. Thus the name recognition of KICI increases gradually.

Consumers are an important target group for KICI to communicate with. Namely,

5.1 Name recognition

gains ever “ re recognition!” mo The target groups that KICI communicates with can roughly be classified as follows: - consumers, they actually donate the textile; - municipalities that KICI works with; - partners in the chain; - beneficiaries; - employees. For every target group KICI applied an appropriate approach.

the consumer makes sure that textile ends up in the textile containers. That is why KICI attaches

ample value to reaching and appealing to this group of people. To this end we use various types of media and activities including social media, media and clothing exchange fairs. Social media Where we used to call each other to have a conversation, nowadays this mostly takes place via social media. Time for KICI to actively anticipate this. For 2013 we developed a social media strategy. On the basis of a survey what target groups we want to approach with which social media a social media team was set up. Each team member is responsible for a substantive competence within KICI; collection, donation, innovation, general information and ISO related matters. The team members followed a training internally about how relevant content can be developed for Twitter and what posts have an effect on Facebook. In January KICI started with a beautiful baseline: here and there a lost Twitter follower followed but no Facebook friends. We can look back at a beautiful year for social media. Thanks to all the efforts of the employees KICI increased to 200 followers on Twitter and 250 Facebook ‘likes’.

After a year of twittering we can look back at good figures, however it became apparent to a part of the members of the social media team that twittering takes a lot of time. This resulted in a period without tweets. In 2014 the social media team is again put under the microscope and the number of members may perhaps be reduced slightly. Newspapers and TV In 2013 people know where to find KICI ever better. This can, inter alia, be seen in the number of visits to the website www.kici.nl. It can also clearly be seen when people look around in the media landscape. The media were all over the discussion where municipalities use textile collectors as cash cows. The newspaper ‘De Volkskrant’ dedicated an entire article to it. In addition KICI provided input for articles in the newspapers ‘Trouw’, ‘het Parool’ and ‘Metro Nieuws’ and for numerous free local newspapers. Nationally textile collection gains ever more popularity. A pleasant matter of secondary importance is that KICI also gains ever more popularity. For instance due to television programmes on various television stations. For instance, Sander Jongerius, product developer at KICI, created an item in association with the programme ‘Melk en Honing’ of the television station EO about the recycling of non-wearable textile. According to the viewing figures survey 333,000 people watched this episode. In the episode Sander and Anne-Mar followed and recycled an old piece of clothing into a new product. ‘Melk en Honing’, Anne-Mar Zwart and Sander Jongerius: the road of an old piece of clothing to a recycled product.

Hans Markow ski. t a k o o “L Excellent how he emphasises nce of textile collectio a t r o p m i n! ” t he

But the programme ‘Een Vandaag’, with a daily audience of one million viewers, also dedicated an item to textile collection. Hans Markowski spent a whole day with the editorial staff to create a nice item with the subject ‘What to do with your old clothing? In the waste bin, in the textile container, or handing it in at a shop?’. It is important for KICI to be discussed in programmes like this and to be able to explain what the importance of textile collection is and what the qualities of KICI are. Apart from the various television programmes KICI could also regularly be heard on the radio with radio stations like BNR Nieuwsradio. A press officer of KICI sends press releases to local and national newspapers to thus create more exposure for textile collection for charity.

Clothing exchange fair KICI feels that it is important to bring to the attention of consumers that any clothing is still valuable. Hence also the clothing that has actually already been in your closet for years but that you are no longer wearing. That is why we are regularly present at events with a clothing exchange fair. One of the exchange fairs from 2013 was at the Waste Market in Gouda. Here people could look at and buy art made from waste, old furniture of the municipality was auctioned off and a fashion show was held with clothing made of waste. KICI anticipated this perfectly with a clothing exchange fair. Acting at these kinds of local festivals makes people aware of the textile containers and calls upon people to donate textile.

Important in the communication from KICI to all citizens is to communicate what they can donate in the textile container and to what charities the proceeds of the textile collection are donated. The clothing exchange fair at the Waste Market, Gouda.

5.3 Municipalities Municipalities, i.e. the relevant policy employees, are of course an important target group for KICI, perhaps even the most important. Eventually they select the textile collector that is appointed in their municipality. On the one hand to emphasise the qualities of KICI as a professional collector in the already existing cooperation. On the other hand to inform municipalities that do not work with KICI yet about its qualities and the possibility of cooperation. That is why we participated in activities during which KICI could present itself as a professional collector, e.g. the Municipal

Waste Congress and the NVRD Congress. KICI also developed a sustainable waiting room for the Ministry of Infrastructure and the Environment (IandE). Municipal Waste Congress In April 2013 the Association of Dutch Municipalities (‘Vereniging Nederlandse Gemeenten’ or ‘VNG’) organised the Municipal Waste Congress, the meeting place for professionals from the waste industry. KICI was present with an information stand and sufficient people to answer all the questions from the municipalities. As part of the congress programme KICI provided – in the person of Hans Markowski – a successful session in information about the EWSR regulations and the enforcement thereof.

Hans Markowski informs those attending the Municipal Waste Congress about the EWSR regulations.

NVRD Congress The annual NVRD Congress is an important congress that is visited by many representatives of municipalities. Like in 2012 KICI was present with a stand. This time it was decided to focus on innovation. For instance, the stand was decorated with several chairs and a desk with a top made of recycled textile. During the three-day congress municipal officials had the opportunity of trying the chairs and discovering what options KICI has to offer in terms of non-wearable textile.

Tour in the sorting centre KICI does not only provide for the textile collection for municipalities but also cooperates with umbrella organisations that are responsible for the textile collection at various municipalities. To provide them insight into what happens with the collected textile KICI organised several tours in one of the certified sorting centres. Various invitees of an umbrella organisation were taken to the sorting centre where they were given an extensive tour and extensive information about the road that collective textile passes after it has been donated in the container.

Sustainable waiting room KICI is a trendsetter in the area of textile innovation. The Innovation Department is continuously devising new applications for non-wearable textile. Meanwhile they have come so far that specific products can be shown. For instance, KICI decorated an entire waiting room that consists of several chairs, a coffee table and a hanging lamp that were all made of composite in the course of which textile served as a raw material. A nice idea for the town hall of a sustainable municipality! More about this on page 50.

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Cheque award Westvoorne Together with a municipality where KICI collects textile a choice for local support is possible. In that case the proceeds of the textile containers are dedicated to a local charity. One of the municipalities that opt for local support is the municipality of Westvoorne. Here the municipality and KICI annually award a cheque to various charities. This way KICI indicates that it does not exclusively operate on a large scale but also attaches ample value to small local initiatives. These kinds of activities show commitment to the municipalities and the charities.

Various invitees of an umbrella organisation were offered a tour in a certified sorting centre.

The municipality of Westvoorne and KICI award a cheque to two local charities. F.l.t.r.: Walter Hendriks (Child of Uganda), Marissa Chan-de Vries (KICI), Mr Van Lith (Alderman Westvoorne), Henk Visser (Hobby Workshop Westvoorne)

Advertisements and advertorials The account executives of KICI have personal contact with ‘waste’ policy employees. Apart from the personal visits KICI strengthens its position as a professional, charitable clothing collector by placing advertisements and advertorials in professional magazines like ‘GRAM’ and ‘Afval!’. These are the authoritative magazines in the area of waste that are read at every municipality.

5.4 Partners in the chain We understand partners in the chain as all partners with whom we cooperate throughout the textile chain. This implies both sorters and carriers and partners in the area of textile innovation. KICI offers customised communication for partners in the chain. The target group is very broad and regards, for instance, carriers or companies that KICI cooperates with in textile recycling. If so requested specific communication is prepared for and delivered to them.

The Dutch Red Cross The Dutch Red Cross has a considerable media span. This is important to KICI as its name recognition is many times smaller. Hence a large number of the KICI textile containers also include the logo of the Red Cross. Nationally the Red Cross has hundreds of divisions that work locally to support the community. Think about solitude amongst elderly or first aid. KICI regularly organises a collection action together with this kind of division. By default divisions are equipped with folders and flyers to promote textile collection. In addition KICI organises, together with the Red Cross, collection actions for primary education or for companies. For primary education a free teaching package is available that complies with the core objectives for education of the Ministry of Education, Culture and Science. For companies there are posters available and customised texts with which the company communicates the collection action.

5.5 Beneficiaries

5.6 Employees

In total KICI annually supports a large number of charities. The Dutch Red Cross is our main beneficiary. The communication with and the development of means of communication for the beneficiaries is usually a matter of customisation. In addition KICI supports beneficiaries via Facebook. For instance, we share pictures of a project or charity supported by KICI on the KICI Facebook page in order that all those involved receive additional exposure.

From time to time one of the employees gives a lunch presentation in order to keep colleagues informed of the developments on his or her specific area of expertise. The Board and the Management inform the employees during the monthly staff meetings about the state of affairs within the organisation.

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Collect In 2013 KICI collected 11,455,822 kilos of textile compared to 10,590,310 kilos in 2012. This is the highest volume ever, however less than initially budgeted for 2013 (12,500,000 kilos). Having regard to the market conditions still a result to be proud of. This considerable volume did not only originate from the Netherlands but also from Sweden, Finland, Belgium and Denmark.

KICI collects, inter alia, via the familiar green street containers provided with the logo of the Dutch Red Cross. The advance of the underground container continues, it becomes part of the street scene.

6.1 Container collection

6.2 Growth of collection volume

In the area of registration KICI started the examination and testing of the possibilities of the RFID technique. This technique makes it possible to register containers digitally, indicate the location, link the collection results of each individual container to this, and to generate user information. At the moment tests are carried out that result in the seamless implementation in the KICI system. As a consequence manual acts for various registrations are limited to a minimum. The chance of incorrect data is also avoided almost entirely.

Our partners the Dutch Red Cross and the Fund for Disabled Sports contributed considerably to the highest collection volume ever. Both via the containers placed in the name of our partners and the door-to-door collection that KICI carries out for them.

Better security on the KICI containers in combination with excellent cooperation with municipalities ensured that the number of containers destroyed during New Year’s Eve of 2013 was lower than the year before:

2013 – 2014

2012 – 2013

On a total of well over 1,500 active containers a very positive development.

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The growth in the collection volume of 2013 can partly also be attributed to the volumes that KICI was able to haul in at large fashion and textile retail organisations. Together with the activities in the Scandinavian countries this expanded the logistical network and made it more flexible both home and abroad. Hence 2013 was a beautiful year in which the Logistics Department was able to develop further. In 2014 the optimisation of service and the offer of flexible solutions are continued. In the Netherlands the carriers that KICI has been working with for many years picked up the collected kilos neatly again and delivered these to the sorting companies. The largest logistical challenge for 2013 could be found in picking up textile in the Scandinavian countries, especially in Sweden.

The Swedish Red Cross and KICI have built up a strong relationship in the course of which they jointly provided for a responsible way of collecting and processing textile. To this end twenty depots were opened in Sweden. Meanwhile the logistical lines with Sweden have been optimised to such degree that KICI was able to create a fixed logistical network here.

Municipalities of De Bilt and Nieuwkoop celebrated The municipality of De Bilt uses its best endeavours to preserve the charitable nature of clothing collection in order to continue supporting charities like the Red Cross, Fund for Disabled Sports, SOS Children’s Villages, and many other beautiful charities financially. A beautiful gesture, certainly in times when many municipalities implement cutbacks and actually want to receive a fee for the collection of textile. Thanks to municipalities like De Bilt it remains possible to support projects and charities and this is also the mission of KICI as a charitable clothing collector.

Another municipality that KICI is proud of is Nieuwkoop. This municipality has the highest number of collection locations per inhabitant and thus makes textile separation properly accessible to its citizens. Together with KICI the municipality of Nieuwkoop makes an effort to realise an optimal collection result. Moreover, charitable collection has been in place here for many years and that all deserves praise!

6.3 Situation on second-hand textile market

6.4 Municipalities realise LAP²

There is currently question of a saturated second-hand textile market where charitable and commercial collectors fight for the collection rights within a municipality. Last year the fee to be received per kilo was an important indicator for a municipality, however now ‘social return’ has also been added. The Dutch government expects ever more of municipalities in the area of the social domain. KICI increasingly has to deal with this and needs to anticipate this trend. We pursue to also continue promoting our mission under the current market conditions, as generating as much proceeds as possible for charity is our driving force. Moreover, meeting the need of social return of a municipality contributes to an important core value of KICI, namely empowering. Or, in other words, empowering people and groups in order that they can participate in society.

Both municipalities are rewarded by KICI with a donation of € 2,000 each. We count on it that a beautiful (local) charity is found for this. The cheque award takes place at the beginning of 2014.

Each cooperation with a municipality regards customisation. Each municipality has different needs and different messages that it intends to promote to the citizens. Higher collection and separation objectives (LAP², 7 kilos per inhabitant per year) contribute to a sustainable and environmentally friendly society: as little textile as possible in the residual waste, as little as possible to the incinerators, as little CO2 emission as possible! Namely, the CO2 emission of incinerated textile is many times higher than that of the other fractions and therefore forms a considerable environmental burden.

6.5 Ministry of Infrastructure and the Environment examines sustainable textile industry Secretary General Siebe Riedstra of the Ministry of Infrastructure and the Environment visited the certified sorting company Wieland Textiles B.V. in Wormerveer on Thursday 10 October. On behalf of the ministry he examined the possibilities for a more sustainable textile industry. During his visit KICI offered the highest official a waiting room to his ministry with chairs, a coffee table and a lamp manufactured from worn clothing. With this symbol for the expectant government in terms of innovations in the textile industry General Manager Hans Markowski thus requested the Secretary General to use a big ministerial sail in order to gain more speed in the conservation of the reuse of textile.

The requested support is well in line with the ambition of the government to accomplish the transition from a linear to a circular economy. The government programme ‘From Waste to Raw Material’ contains the ambition to support trendsetters. Wieland and KICI play an important role in the conservation of the textile industry, inter alia through the development of the first automated sorting machine on the basis of fibre composition and colour. A more efficient handling of textile fibres is in line with the objective of the ministry to make consumption patterns more sustainable. A more sustainable textile industry can moreover strengthen the competitiveness of the Netherlands.

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After his visit the Secretary General can create a good picture of the impressive amount of clothing that passes through Wieland on a daily basis and the possibilities of thus reducing the burden of our clothing on the environment. Manufacturers and consumers have been waiting for each other for years for manufacturing and buying more sustainably. The government

can accelerate this process considerably. The sustainable

A more efficient handling of textile fibres is in line with the aim of the ministry to make consumption patterns more sustainably.

chairs of Melle Koot, table and lamp of Graypants are exhibited at the ministry in order that other officials and visitors can experience the sophisticated applications for collected textile. Sitting in this kind of chair could perhaps result in the idea for a faster conservation of the textile industry.

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F.l.t.r.: Hans Bon (Wieland Textiles B.V.), Siebe Riedstra (I&M), Hans Markowski (KICI).

Maarten Milieu teaches in Schoonhoven On 12 December pupils at the primary school in Schoonhoven received their first lesson about waste from Maarten Milieu. The municipality received a donation for this from KICI of € 1,000. Together with Cyclus and the municipality we pursue a sustainable environment in which waste is collected and can serve as raw materials. In Schoonhoven KICI collects the wearable and recyclable textile. This way money is earned for charities, like the informative lessons of Maarten Milieu. By involving children in waste separation from a young age Cyclus, KICI and the municipality of Schoonhoven jointly work on a better environment.

F.l.t.r.: Rob Zilverberg, head of the Koningin Emmaschool, Maarten Milieu (Cyclus), Jill van der Wilk (KICI) and Alderman Matheij of the municipality of Schoonhoven.

6.6 Door-to-door collection The intensive targeting by KICI of the doorto-door collection channel was once again fruitful. An increase of no less than 20% of the collected volume compared to 2012 shows the considerable progression since 2011 in this collection channel.

6.7 Alternative channels However also actions of companies provide a considerable contribution to charity. In the month of June Run2Day collected old shoes from its customers. KICI picked them up with pleasure. The action Shoe2Care resulted in € 4,000 for the sports and games projects ‘Right To Play’. Right To Play is an international organisation that commits to the right of every child to do sports and play. By using the power of sports and games in areas that are affected by war, poverty and sickness children are taught important skills like cooperating and fair play. KICI is pleased to support Run2Day and Right To Play during their collection action. All collected shoes will have a new destination. Shoes that can still be used will go to developing countries, the shoes that can no longer be used to recycling processes. This way we are certain that everybody who donated his shoes contributed to a fair and sustainable world.

Lien Mol (employee) and Theo Mol (coordinator) of Dress for Success, Spijkenisse, can help many clients with their job applications with the beautiful clothing of KPMG.

Clothing collection action at KPMG Nederland In 2013 KICI also collected via KPMG Nederland, authoritative worldwide in audit, tax and advisory services, highly representative and neat clothing for Dress for Success. This beautiful initiative has been in place since 2006. Dress for Success makes sure that people at a distance to the labour market who are applying for a job again can pick out neat clothing and shoes twice free of charge. This increases the confidence during job applications and the chance of a job. In 2013 six establishments were donated a total of at least 1,570 pairs of neat shoes, pieces of clothing and sets. This is a fantastic result! www.kpmg.nl www.dressforsuccess.nl

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tch u D e h t y l l a u n n A “ Cross receives a fixed Red tribution of €125,000.-” con KICI is proud of the Dutch Red Cross as main beneficiary. Annually the Dutch Red Cross receives a fixed contribution of € 125,000. In addition KICI also supports a number of the 300 local divisions where more than 35,000 volunteers are active. The Dutch Red Cross fulfils an indispensable role in the Dutch society by helping people in difficulties. In the Netherlands this takes place by organising social local activities, close to people in their neighbourhood and by providing first aid at events. Abroad the help of the Red Cross is still required in war zones and in case of disasters. The Red Cross did good work in, inter alia, Syria, the Philippines, Colombia, Sudan and the Central African Republic. From the Princess Margriet Fund there is ever more attention for preparation of people for possible disasters. In addition, in 2013 a fantastically high amount of € 12,302,747 was collected via the 3FM Serious Request action (The Glass House) in Leeuwarden for children who die of diarrhoea. www.rodekruis.nl

Donate The more the better… Objective of KICI is to generate as much money as possible in order to donate this to charity. We have committed to this for almost 40 years. The level of the total payable amount depends on the amount of textile that is donated and collected and the costs that are required for, inter alia, the permission to place a container on the public road in municipalities and the emptying of the containers. In 2013 the Foundation KICI was able to pay out € 1,269,000 to national and international projects. Compared to 2012 this is € 203,000 more. A very nice result for which we truly wish to thank everybody who contributed.

7.1 KICIâ&#x20AC;&#x2122;s Charities Policy

The Charities Policy gives shape to our objective of supporting sustainable and social projects aimed at the improvement of the social position of less privileged groups with the objective of increasing the personal influence on the living conditions. KICI assesses a project on the degree that it connects and sets groups in motion as also on the degree of sustainability, finances, commerciality and innovation. The aim is to support projects that comply with these criteria. In addition the charity must also dispose of sufficient capacity to implement the project.

Smaller foundations are in need of different support than large foundations. We can support the charities in different ways, e.g. by sharing knowledge, by relying on our network, with goods or money. Projects to improve the social position increase the social cohesion, the connections in society. It is important that certain groups in society are and remain in contact with each other, this creates possibilities for people and thus forms the road to selfreliance. In this respect it is of utmost importance to stimulate the income position of less privileged. KICI expressly opts for the support of less privileged groups or initiatives in society. This is about people without economic independence, with limited opportunities on the labour market. All the more valuable if the initiative is aimed at conservation of production chains or stimulation of reuse.

In order to handle requests for support of projects efficiently KICI established a Charities Policy in 2011. To this end procedures were set up in accordance with the norms of the International Standardisation Organisation (ISO). The follow-up and compliance with these procedures is also provided by ISO. Annually the organisation BDO Audit & Assurance B.V. audits the assessment of legitimacy of donations.

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7.2 Beneficiaries in 2013 In 2013 the Foundation KICI was able to donate â&#x201A;Ź 1,269,000 to charity. Below an overview of the distribution per theme, category and destination.

29%

20%

15%

26%

25%

Sustainability Liveability Education Self-reliance

14% Spending per category

14%

57%

30%

Main beneficiary Earmarked projects Other projects Donated clothing charities

Spending per destination

70%

Spending per theme

National International

“A number of projects by ” d e t r o p p u s <

Duurzame Jonge 100 Also thanks to the donation of KICI to the Duurzame Jonge 100 (DJ100) this organisation organised the first edition of the DJ100 election ‘for young innovators and entrepreneurs in sustainability’. The result was more than 300 registrations, a beautiful list of 100 young trendsetters published in NRC Next and a sparkling event for sustainable young people and professionals from the business community. The DJ100 team is now working on a national network organisation for young professionals in sustainability. www.dj100.nl

The founders (f.l.t.r): Anne Walraven, Marjan Kloosterboer, Eva Gies, Talitha Muusse.

Fund for Disabled Sports Sport makes you physically and mentally stronger, gives you confidence and builds on relations. The Fund for Disabled Sports, as one team together with sponsors, sportspeople and supporters, makes it possible that everybody with a disability can do sports structurally as nobody can be sidelined. Based on solidarity. One sportsperson helps another. We will continue until this is a matter of course to everybody. That is why we, together with all the sponsors, sportspeople and supporters (our volunteers), stand behind the disabled sportspeople as one team.

Iljas Visker in action… Photo: Mathilde Dusol.

The Royal Dutch Football Association (‘KNVB’) and the Royal Dutch Lawn Tennis Federation (‘KNLTB’) and the Fund for Disabled Sports see to it, together with supporters and sports sponsors, that in the coming years more and more G football and wheelchair tennis is played on the Dutch football pitches and tennis courts. Together we also organise multiple G football days and tennis clinics for young G football players and wheelchair tennis players. This also takes place at some of the Dutch Premier League clubs. And G tennis players are invited to the matches of the World Wheelchair Tennis Tournament. Once a year all the professional football coaches train young G football players. Together with the sponsors, supporters, coaches, and volunteers we stand behind the disabled sportspeople as one team. Because we feel that nobody can be side-lined. www.fondsgehandicaptensport.nl

Foundation Millse Missie Vrienden, the local charity of the municipality of Mill and Saint Hubert The Foundation Millse Missie Vrienden has been active for 30 years to financially support its former townsman father Martien Konings, active in Congo. To this end it organises, inter alia, an annual cycling tour and it organises the clothing collection in Mill. The proceeds fully inure to the benefit of the work of father Martien Konings. Father Martien Konings, himself disabled, founded the ‘Centre Simama’ in Congo. In the course of the years many disabled people were offered help here. When father Martien was affected by a tropical virus in 1982 and he henceforth had to rely on a wheelchair it became twice as clear to him that a disabled person in Congo leads a ‘lost’ life. As a healthy Congolese already has great difficulty leading a dignified life it is absolutely impossible for a disabled person.

If the family cannot offer food and a bed – many healthy people do not even dispose of these basic necessities – then the only future is pining away slowly... In ‘Centre Simama’ people learn a profession despite their disability in order to thus earn their living independently. There is education for disabled, physiotherapy, occupational therapy, and the like. Education is also provided to mentally disabled children in accordance with an Indian principle that departs from the four basic forms (triangle, square, circle, and rectangle). The school for mentally disabled children is called Rafiki, which means ‘friend’. The educational vision is based on three pillars: equality (to the healthy fellow humans), participation (in society) and autonomy (self-reliance). www.centresimama.com

“ Rafiki means friend”

These two orthopaedics, also disabled, manufacture prosthetic devices of iron and personally tanned leather. A short time ago the Centre obtained an oven in which plastic prosthetic devices can be moulded.

Municipality of Leiden The municipality of Leiden has had a twinning arrangement with Juigalpa, capital of the department of Chontales in Nicaragua, for 25 years. Thanks to the donation of KICI (€ 26,284 in 2013) the Rehabilitation Centre for disabled children in Juigalpa is set up entirely. Daily dozens of disabled children from the vast surroundings of Juigalpa are treated to improve their physical limitations. In cooperation with the Rijnlands Revalidatie Centrum of Leiden the physiotherapists and occupational therapists of Juigalpa are trained to improve their professional skills. KICI has collected textile in Leiden for many years, it is very pleased to do so and happily supports the twinning arrangement with Juigalpa!

“V

i a ti v e ! ” t i n i y l e v o e ry l <

Dutch Red Cross, Leerdam Division Harry Stroeve, Treasurer Red Cross, Leerdam Division. ‘After we had used the KICI funds for the youth match last year, the Leerdam Division used the donation of KICI in 2013 for the necessary replacement of 43 coats of the volunteers who offer assistance. Total costs: € 5,253. In addition, in 2013 we organised an all-in boat tour for elderly on the Linge. With this boat tour we offered more than 100 elderly people a lovely day. Total costs of this day: € 2,450. Of course as a Division we also made our contribution, but the donation of KICI was important to make the replacement of the clothing and the boat tour possible.’

With the donation of the Foundation KICI the ‘Juigalpa Centro Regional de Rehabilitacion’ could be set up.

War Child Children do not belong in a war. Never. They are entitled to grow up in peace. To develop themselves in a healthy way, in a safe environment. To become who they want to be. Children who grow up to be balanced adults are later better able to prevent or solve conflicts. War Child supports children in conflict areas with psychosocial programmes. In order that they start building on a future that is ruled by peace.

Lebanon theatre

Musical dance, Congo

Photographer: Geert Snoeijer

Dutch Red Cross, Hoogeveen Division At the Hoogeveen Division the donation of KICI was partly used for a boat trip for inhabitants of Hoogeveen who do not or barely go out. Think about people in a wheelchair or people with highly reduced mobility. ‘In addition we purchased ten wheelchairs (second-hand) for the Division that we can use for the transport of the people and as training material for the volunteers.

Orange Babies Orange Babies, a foundation with the main objective of helping pregnant women with HIV and their babies in Africa and offering support to children infected with the virus or who are dealing with it directly, is active in three countries: South Africa, Zambia and Namibia. The donation of KICI of € 13,504.10 was spent on two fantastic projects, namely: 1. Prevention Mother To Child Transmission (PMTCT) This project has the objective of reducing the chance of HIV transmission from HIV positive pregnant women to their children. In addition the intention is to prevent through information programmes that young HIV negative mothers contract HIV. The latter is also known as ‘Keep the negatives negative’.

Finally a part was used for our Tuinscala project. On an evening between Saint Nicholas and Christmas we will take the same target group to Tuinscala where they can do their Christmas shopping. Result: approximately 70 very happy looking guests per activity. They immediately indicate that they look forward to doing this again next year’, according to Mr Molendijk of the Dutch Red Cross, Hoogeveen Division.

t a h t d r a e h “ I Mopani district t he is very rural”

Facilitation of medical care, food, education, and daily support for HIV infected or HIV affected babies and children is of key importance. www.orangebabies.nl The team (nurses + doctor) daily sets out in the Mopani district, a very rural area, and offers HIV counselling and testing. It is very important that people are tested on HIV in a timely manner in order that they can receive the correct treatment in time. 2. Care for Orphans and Vulnerable Children (OVC) Facilitation of medical care, food, education, and daily support for HIV infected or HIV affected babies and children.

Jantje Beton In 2013 Jantje Beton renovated, together with children and many volunteers,

play areas and play districts

ated play areas v o n e R â&#x20AC;&#x153; hallenge children c to be more activeâ&#x20AC;? <

in order that children are challenged to be more active. Exactly because freely playing outside and moving is essential to a healthy development, Jantje Beton stimulates municipalities and professionals to also do this at various locations in the country and in particular to involve children in it! In addition Jantje Beton organises the Jantje Beton Lottery and Collection for schools and youth clubs. This way children collect money to increase the joy of playing outside in their own neighbourhood.

Tens of thousands of children can take advantage of the renovated play areas, nicer play squares and the routes through their neighbourhood that were set up in a more child-friendly manner. Thanks to the organisation of the Jantje Beton Collection and Lottery well over 1,600 sports and youth associations and about 800 schools were able to organise outdoor play activities. Or were able to renovate play areas in their own neighbourhood with the collected money.

In 2013 it was, thanks to the donation of KICI, possible to have seven ‘Repair Cafés’. The ‘Repair Cafés’ attracted about 350 visitors who had about 100 repairs performed. Each time a fixed group of 11 volunteers set to work enthusiastically. In addition hard work was carried out to further develop the De Koppel into a Vecht Valley experience centre. This now has clear outlines. There is a cooperative arrangement in place between five so called Carnation Points in the Vecht Valley, of which the De Koppel is one. An activity programme is set up in association with local entrepreneurs and organisations and there is a plan for adjustment of the current location. The Koppel Vechtival was first held in June 2013 and attracted approximately 400 visitors. This will be an annual event for Vecht Valley experience. www.dekoppel.com

Repair Café, each time a fixed group of 11 volunteers sets to work enthusiastically.

“ Thanks to you my hoover is working again!”

Foundation De Koppel, the local charity of the municipality of Hardenberg Nature activity centre De Koppel pursues preservation and, where possible, advancement of flora and fauna in the municipality of Hardenberg. To give shape to this objective the De Koppel has four functions: activity centre, educational centre, cooperation centre and knowledge centre.

Kanodemo at the Vechtival, in the background the new lock at the De Koppel.

In December 2013 an amount of € 12,277.80 was dedicated to fourteen projects. One of these projects is the Watoto Foundation Tanzania, a foundation that offers former street children in Tanzania a 4-year internal technical training.

t e a r w supply e h t r o F “ of a hotel complex w a s d r ille d e l o h e r o b a lcanic stones” o v h g u o r h t <

Uden Worldwide In 2013 KICI also supported the local objective of the municipality of Uden. Uden Worldwide has a total of 25 partners. They are inhabitants of the municipality of Uden who represent a foundation in a third world country. Once a year they can submit a request to the Fund for Small-Scale Projects of UWW for the financial support of a project. The donation of UWW must serve one or more millennium objectives and the spending must be accounted for afterwards by means of a report of the receiver.

With financial support the fluorine concentration of the water from the borehole in the Kiboko Lodge was reduced to 0.5 mg/l. and it is now potable water.

7.3 KICI projects in Kenya In 2012 a strategy was pursued with the guiding principle to make the activities of KICI in Kenya independent and to connect the traditional charity work to social business practices related to sustainability. In 2013 KICI performed four existing projects. This regards: 1. Third Knitting Project; 2. CSR Workplace Programme; 3. Textile Collection Project ACT!; 4. Gitambaya Village Project. In 2012 KICI also carried out the Textile & Entrepreneur Project. In 2013 this was concluded due to the exceptionally high import duties in Kenya for the container with clothing for the charity. KICI regrets this development and keeps focussing on the further expansion of the independence of the other four projects. Partner organisation Dove International Dove International (a local NGO) and KICI have been involved in the implementation of most of the charity projects in Kenya for many years. In the summer of 2013 KICI and

DOVE decided to reduce the cooperation and to eventually discontinue the same. The two most important reasons for this are described below. The first reason was that the current projects of KICI in Kenya focus on socially sustainable business practices. This is essentially different from the original mission and objectives of DOVE, which actually stands for more empowerment of, basically, women in society. The body that controls the charities in Kenya also pointed out to DOVE International that not all the projects were in line with the mission and objectives. The second reason was that all projects indicated to go for independence. For the independence of CSR WPP and ACT! it was better to set up separate companies. For the Knitting Project it was better to continue as its own foundation. This has meanwhile been realised. We would, however, like to emphasise that the many years of cooperation with DOVE did help many underprivileged Kenyans towards a better future.

The third Knitting Project in Kenya.

7.4 The development of the KICI Kenya projects in 2013 1. Third Knitting Project In this project underprivileged Kenyan youngsters worked in a small social company that manufactures school uniforms, sweaters, trousers, socks, caps, and shawls. The project was carried out before at an orphanage and at a school in Kenya. The projects are profitable and the profit inures directly to the orphanage and the school, respectively, and therefore make a direct contribution to the selfreliance and the continuity.

uction... d o r t n i “ A n e m p lo y e e s a t t h e Thekshop in Kitengela” wo r

They mostly make school uniforms, learn a trade and earn money.

In 2013 KICI first incorporated a new foundation to enhance the independence. The name is ‘Knitting Projects Foundation’. In May 2013 KICI started a third Knitting Project in Kitengela. Meanwhile the procedures in the area of marketing, production, procurement, bookkeeping and management have been implemented. The team consists of 18 underprivileged Kenyans who have duties in the area of production, marketing and administration. They all work hard to turn the project into a success. In December 2013 many orders were hauled in as the schools are starting again. KICI expects that the project will be entirely self-reliant as from March 2014. When the project is demonstrably profitable then KICI will consider making a number of other investments in the scaling up.

am e T R S C “ Thien Kenya” < 2. Corporate Sustainability Responsibility Workplace Programme (CSR WPP) Partners at the end of the second-hand textile chain presented the request to use knowledge about socially responsible business practices in Africa. That is why in 2012 KICI, SCR expert WorkonProgress B.V. and local partner organisation Dove International started a programme to teach companies in Eastern Africa about socially responsible business practices: the CSR Workplace Programme (CSR WPP). This method is innovative and realises a modern form of development cooperation. In 2013 KICI carried out CSR WPP pilots at the USIU University, the Sankara Hotel, the manufacturer of hygiene and cleaning products Diversey and the children’s hospital Gertrude Children’s Hospital. During the first quarter of 2013 many new valuable insights were gained from the implementation of the programme. An example hereof is that the training has been geared more to the daily work practice in order that participants and trainers were able to better translate this to the theory.

2013 results Additional training was provided for the CSR WPP coaches and valuable experiences were gained by providing the training on the basis of five themes. A special ISO26000 training was provided. ISO26000 is also implemented in the CSR WPP. A local organisation was set up and the fees for the CSR WPP services to be supplied were established. A first version of a business plan was prepared for rollout of the CSR WPP. Future clients and partners were listed. One of the possible cooperation partners is CSR Netherlands. CSR Netherlands is examining possibilities to set up CSR Kenya and that is why a roundtable meeting with potential partners, including KICI, was organised at the Dutch embassy in Kenya. Together it is now examined to give the CSR WPP a place in CSR Kenya.

3. ACT!l Ltd. independent Much of the summer clothing worn by the Dutch and Europeans ends up in Africa. After having been worn again the clothing ends up at a dumping site or on the street. Waste processing is a big problem in developing countries. Waste dumping or incineration are not environmentally friendly solutions for this. Neighbours will probably suffer from health issues. Incineration of textile waste results in higher CO2 emission and hazardous smoke. KICI wants to contribute to better processing of the textile waste and holds the entire chain responsible for possible adverse effects: manufacturers, retailers, second-hand textile collectors, textile sorting organisations, textile buyers, consumers, and even charities. A number of larger international parties in the chain approached KICI to formulate a solution for the problem. After all, clothing companies are held responsible for what ultimately happens with their products.

Mid-2013 a private limited company was incorporated in Kenya with the name Africa Collect Textiles LTD (ACT!). The ultimate objective of the project is not just the collection of textile in the whole of Kenya but also further sustainable handling and processing of the same. The aim is to recycle textile collected in Africa into new products, e.g. emergency blankets for the Red Cross, building materials or nice bags for local use. This creates employment, a scarce commodity in Kenya and Eastern Africa. The results of KICIâ&#x20AC;&#x2122;s Innovation Department can be implemented immediately.

In the first week most of the collection containers already contained 80 kilos.

In 2012 KICI, represented locally by E. Stroomer, started the implementation of a textile collection and recycling programme in Kenya, the worldâ&#x20AC;&#x2122;s largest buyer of worn textile. With the textile collection project KICI hopes to contribute to the start of a closed loop in the clothing chain and to stimulate sustainability in developing countries.

Seven collection containers were placed at several locations. The already placed collection containers appear to be successful, in the first week most already contained 80 kilos. The collected items are sorted and sold to five different merchants who can earn their living with it. Non-wearable textile is sold to a company

< make n e v e y e â&#x20AC;&#x153; Th ted iron sheets of textil e ga u r r o c How cool is that!?â&#x20AC;? that spins yarn for (emergency) blankets. In addition ACT! started with the processing of textile in corrugated iron sheets, tiles, vases, and trays. Meanwhile different prototypes have become a fact. In the coming year ACT! intends to increase the number of collection containers to 50. The project has proven itself on a small scale, but can only have a real impact and generate money for charities (!) when collection takes place at a larger scale. In the coming period ACT! continues independently and that is why it is looking for new investors. More information is available on: www.africacollecttextiles.com

4. Gitambaya Village Project In association with the Kenyan spinning / weaving company Spinners & Spinners from Ruiru KICI renovated the village Gitambaya in Kenya situated in its vicinity. This cooperation has been in place since 2008. In 2013 at least four kilometres of new, good roads were constructed, which contributes to the activity, safety, and liveliness of the village. In 2013 multiple potable water facilities and a small park were also constructed. Even the waste that would first simply be thrown on the street is now neatly picked up by youngsters from the village. In 2013 a new school building was constructed. It is three floors high and has 12 new classrooms. In previous years the school was expanded with a football pitch, a basketball field, a large multifunctional canteen, a good kitchen, various potable water points, a library, and a chemistry classroom.

The most wonderful thing is that the results of the children improved significantly. KICI believes in the power of this project and expects that in the coming years this beautiful cooperation will certainly remain in place. Together with the municipal council of Gitambaya, the local population, schools, police, and Spinners & Spinners we work hard on the further development of the village.

Fundraising Up to 2012 the funds of the foundation all originated from the clothing collection. As municipalities request a financial compensation for the permission to collect textile ever more often the margin, and therefore the support to charities, is under pressure. That is why since mid-2012 KICI has also been collecting financial donations for its own projects in Kenya.

8.1 Objectives of fundraising

1. To raise at least € 15,000 for the third Knitting Project via donors within its own KICI network. KICI realised this objective by raising no less than € 15,254 for the Knitting Project. The largest donors are good cooperation partners of KICI, e.g. Wieland Textiles B.V., BRG Foundation and the municipality of Amsterdam East.

In 2013 KICI has the following objectives for fundraising:

2. To recruit as many onceonly and fixed donors as possible. In 2013 KICI received a donation from fewer than twenty private donors. Seventeen hereof were once-only and one is fixed. This is a very meagre result.

To obtain a WBSO RDA subsidy for the Innovation Department via the PNO organisation from the NL Agency.

In association with fellow textile collector Humana KICI submitted a request to the National Postcode Lottery for a

The good news is that the WBSO subsidy was granted. This was very important for the possibility of conducting research and new applications for the textile recycling. In 2013 this totalled € 31,959. KICI could immediately deduct this amount from the payable income tax. Thanks to a subsidy item carried forward from 2012 the amount withdrawn in 2013 amounts to € 38,455.

communications proposal in order to accomplish that more people would donate textile in the Netherlands. The latter will

provide for a better environment because this way as little textile as possible will end up in residual waste. At the beginning of 2014 we were unfortunately informed that the National Postcode Lottery will not support this beautiful project financially.

8.2 Core values Responsibility, honesty, and integrity are typical of KICI. As KICI collects both used clothing and money it is important to guarantee that every donated euro truly ends up entirely with those who need it. KICI paid the salary of the fundraiser from the income of the textile collection, the fixed costs fall under the marketing and communications budget. Thanks to the proceeds of the clothing collection the received financial donations are therefore entirely dedicated to charities. KICI can guarantee this to its donors. In terms of the fundraising (in money) KICI thus complies with the 75% norm for raising donations as established in the new regulations of the Central Fundraising Bureau.

As at 1 March 2012 KICI hired a fundraiser to generate additional financing for its own projects and to be less dependent on the sale of second-hand textile. Due to the independence of several projects fundraising no longer appears to be necessary. That is why at the end of December 2013 KICI discontinued this manner of fundraising and the employment of the Project & Fundraising Officer was terminated. It does, however, remain possible for private individuals to make a project contribution to these independent projects via the website of KICI.

KICI conforms to the Dutch privacy legislation and the Wijffels Code, or rather the Good Governance Code for fundraising charity organisations. The Board supervises this. KICI respects, informs and thanks its donors and other stakeholders. KICI will at all times use sound methods and is sincere when fundraising.

k i e l m u y o y jeans? o d w o “ H ade from old jea ns!” M

Innovate The Innovation Department makes a distinction between the nonwearable and the wearable part of the clothing and/or textile. ‘Non-wearable’ textile includes: 1. Clothing and/or household textile that is physically or commercially no longer suitable to be reused as clothing and/or household textile. 2. Clothing that originates from fashion brands, that was returned to shops or old unsold collections that can be marketed as reusable clothing. 3. Clothing with company names and/or logos that cannot be marketed as reusable clothing.

9.1 Objective of innovation The objective is to examine for non-wearable textile how this textile flow can be recycled even better in order that this textile can again be used as a high-quality raw material / material. KICI aims to return non-wearable textile, a fraction that is actual residual waste, to the market in different products. This includes:

1. 2. 3. 4.

The production of high-quality textile fibres. Textile fibres that can, in co-creation with buyers, be spun into new yarn for new fabrics for these buyers. The development of new material, which can be referred to as composite material. The material new to be developed should have the features of a textile fibre reinforced plastic (TFRP, Textile Fibre Reinforced Plastics).

Non-wearable textile Via various projects we examine and test how and where non-wearable textile can be recycled into products with a quality higher than currently the case with the best return. Examples are: - Denim recycle project: making new jeans from old jeans. - Retail collection routes to recycle the collected textile into high-quality textile fibres that are again spun into yarn. - Looking for recycling options for company clothing of organisations in the course of which attention should be paid to the removal of company names and company logos, or rendering the same unrecognisable. - Participation in a company in which the software and NIR unit are sold. - Produce bulbs from thermal hardeners that are made of a newly developed non-woven mat of textile fibres. - Further development of the thermoplastics. The base is available, where we were able to produce a stable fibre reinforced plastic that can also be reproduced. - Research regarding the possibility of a new entity that can sell both thermo hardeners and thermoplastics. - Seeking to apply the gained knowledge in the course of which KICI can in time recover the investments.

During the process for the recycling of the raw materials from the textile waste it is important that the clothing and the textile can be sorted automatically on pure fractions. Then there are realistic technical options to have the recycled textile raw materials return as new yarns and fabrics for new clothing.

In 2012 and 2013 Hans Markowski and Marc Fredriksz made work visits to China to examine the possibilities for

cooperation in the area of textile waste processing and

the recycling of valuable raw materials from non-wearable textile. At the invitation of the VHT a Chinese delegation came to Europe this year. The delegation consisted of people from the business community (raw materials management with interfaces in the area of recycling), embassy employees and government officials. During their stay in the Netherlands they visited KICI and Wieland Textiles B.V. In China they focus less on the collection of clothing and textile for reuse and much more on the recycling of raw materials from textile waste. Research regarding mechanical recycling and chemical recycling is carried out by universities in Beijing and Shanghai.

In 2013 the most important steps were taken in the direction of the recycling of textile raw materials for new fabrics and clothing. With all the data and calculation models KICI prepared a business plan. It follows from the business plan that setting up a separate textile waste processing company offers a better alternative than the current processing of non-wearable textile and textile waste, both in the commercial area and in the area of sustainability.

9.2 China

g of n i l c y c e r e â&#x20AC;&#x153; Th w materials from ra waste is also textile ortant in China!â&#x20AC;? p m i y r ve Table / desk top made of recycled textile.

10.

Abbreviated financial overview 7.45

â&#x201A;Ź

â&#x201A;Ź 967 0.5 6

1,521

5 10%

General The 2013 annual accounts were, as in previous years, prepared in accordance with Directive 650 (revised in 2011) Fundraising Institutions and approved by the external accountant BDO Audit & Assurance B.V. BRG Accountants & Belastingadviseurs B.V. provided for the tax support. The annual accounts are included integrally in this annual report. The result of KICI BELGIUM BVBA has been included as a separate item. (NB: The annual accounts of KICI BELGIUM BVBA were included in an unconsolidated manner.) KNIB B.V., incorporated on 29 October 2013, of which KICI is the sole shareholder, was not operational yet in 2013. The applied accounting policies were unchanged compared to 2012. Anticipating the integral financial report a brief presentation with a number of analyses and explanatory notes.

10.1 Abbreviated financial report ASSETS (*â&#x201A;Ź1,000)

2013

2012

Tangible fixed assets Financial fixed assets Receivables Liquid assets

478 4 557 1,875

572 4 529 1,215

2,913

2,321

Liabilities (*â&#x201A;Ź1,000)

2013

2012

Reserves and funds Short-term debts

1,126 1,787

1,026 1,294

2,913

2,321

Table 1: Abbreviated financial report balance sheet

10.2 Profit and Loss Account over 2013 (*â&#x201A;Ź1,000)

actual 2013

budget 2013

actual 2012

5,951 75

6,166 147

5,117 41

6,026

6,313

5,158

Expenses: Available for objective

1,493

1,555

1,207

Net available for objective * Added continuity reserve

1,369 (100)

1,330 -

1,166 (100)

Expenditure to charities Objective implementation costs

1,269 224

1,330 225

1,066 141

1,493

1,555

1,207

4,053 380

4,386 373

3,415 436

5,926

6,313

5,058

Surplus before tax Corporation tax

100 -

- -

100 -

Surplus after tax

100

Income: Income from own fundraising Income from non-traditional fundraising

Costs of fundraising Management and administration costs

Table 2: Abbreviated financial report profit and loss account

*) The net amount available for the objective is taken as the starting point for calculating the amount to be paid per kilo. A possible endowment to the continuity reserve will be excluded from this calculation.

Variance analysis including financial and non-financial key indicators The income over 2013 was considerably lower than budgeted however considerably higher than over 2012. Higher sales prices in 2013 and an increased collection volume (also thanks to kilos from Scandinavia) resulted in a revenue of € 5,951,000. A nice increase of € 834,000 (16%) compared to 2012. The costs for the raising of income are lower than the 2013 budget, but also considerably higher than in the previous financial year. This is particularly caused by losses on participations (€ 169,000) and by considerably increased costs for collection fees that KICI paid to municipalities and other collection channels (an increase of € 324,000). The advisory fees were € 44,000 higher than estimated (inter alia costs for research and development of new applications for non-wearable textile). The salary and pension costs were € 154,000 higher than budgeted. On the one hand because the budget did not include a thirteenth month’s salary (€ 81,000). On the other hand because of non-budgeted costs for the settlement of agreements (€ 44,000). The effect of higher pension premiums amounted to approximately € 9,000. The national insurance contributions appeared to be € 10,000 higher than budgeted. Positive variations compared to the budget were the logistical costs of carriers: € 387,000 lower than budgeted. The collection volume lagged no less than 1,000 tonnes behind the budget, which had a direct effect on the total costs of carriers. The ‘Other general costs’ item (including unforeseen) was € 126,000 lower than budgeted. This is basically caused by the release of reservations for development abroad and the provision for doubtful debts (total release € 118,000) and some released items from 2012. The ‘Other general / unforeseen’ item was € 46,000 higher than last year. Release of various reservations (in 2012 approximately € 80,000, in 2013 approximately € 18,000) is, to an important extent, responsible for this variation.

Below a number of key indicators Solvability: reserves and funds / total capital 2013 € 1,126 / € 2,913 x 100% = 39 % 2012 € 1,026 / € 2,320 x 100% = 44 % 2011 € 926 / € 2,461 x 100% = 38 % 2010 € 926 / € 2,785 x 100% = 33 % 2009 € 926 / € 3,332 x 100% = 28 % Solvability indicates to what extent a company can comply with the financial obligations vis-à-vis providers of borrowed capital with the help of all assets. Current ratio: receivables and liquid assets / short-term liabilities 2013 € 557 + € 1,875 / € 1,787 = 1.36 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 Current ratio is a key indicator to measure the financial condition, and specifically the liquidity, of a company. It indicates the extent to which the providers of the short-term liabilities can be paid from the current assets. It follows from the overview above that the current ratio improved slightly and is well sufficient to pay the short-term liabilities. Collection of kilos In 2013 KICI collected an average of 8,009 kilos per container in municipalities. In 2012 this amounted to 8,762 kilos. Hence a decrease per container of 753 kilos compared to 2012. Consumers appear to part less quickly from their clothing. The percentage of wearable clothing shows a downward trend. That is also why KICI keeps investing in research and development of new applications of non-wearable textile. Municipal collection Volume collected (x kilo’s) Number of containers Average volume per container (x kilo’s)

Table 3: Container averages

2011

2012

2013

8,179,000 892 9,169

7,746,000 884 8,762

7,673,000 958 8,009

Risk analysis In 2010 a three-year ‘Risk Management’ cycle was set up. Hence in 2013 an extensive risk analysis took place. Capital formation in relation to risks The amount of the continuity reserve can, in pursuance of the PBO regulations, amount to that which is within reason required for the continuity of the foreseen activities for the benefit of the objective of the institution (= an open norm). KICI annually assesses by what amount the continuity reserve can, in consideration of the PBO norm, be increased. Up to and including the 2013 annual accounts the policy regarding the function and the scope of the real spendable income of KICI was aimed at spending the entire realised profit on the objective. However, having regard to the changed market and economic conditions, in 2013 KICI also, like in 2012, increased its continuity reserve. In 2013 € 100,000 was added to the continuity reserve, as at 31 December 2013 this now amounts to € 1,126,208. Reference is made to the annual accounts, pages 102 and 107.

10.3 Multiannual profit and loss account Apart from the already mentioned abbreviated financial report a multiannual profit and loss account of the past five years has been included. (*€1,000)

2009

2010

2011

2012

2013

Sum of Income

3,760

4,174

4,860

5,158

6,026

937 96

1,086 120

1,164 145

1,066 141

1,269 224

Available for the objective

1,033

1,206

1,309

1,207

1,493

Costs of fundraising Management and administration costs

2,611 112

2,640 311

3,202 348

3,415 436

4,053 380

Surplus before tax Corporation tax

18 18

2 2

100 -

Surplus after tax

100

Expenditure to charities Objective implementation costs

Table 4: Multiannual profit and loss account

The implementation costs of the objective were calculated on the basis of the guidelines of the Fundraising Institutions Association. Due to internal shifts of duties the ultimate allocation in 2013 is considerably higher than in 2012. Apart from the aforementioned profit and loss account over the last five years we present a ten-year overview containing the number of kilos, the sum of the income and the amount paid out to charities. 2004 2005 2006 2007 2008 2009 Kilo’s Income from own fundraising Expenditure to charities Net turnover per kilo

2010

2011

2012

2013

x1,000 7,190 7,463 8,450 9,229 9,488 9,473 10,055 10,836 10,590 11,456 x€1,000 2,262 2,556 2,892 3,376 3,732 3,760 4,174 4,828 5,117 5,951 x€1,000 114 397 729 1,144 885 937 1,086 1,164 1,066 1,269 € 0.315 0.342 0.342 0.366 0.393 0.397 0.415 0.446 0.484 0.520

Table 5: Ten-year overview

12.000 10.000

Kilo’s (x 1.000)

8.000

Income from own fundraising (x € 1.000)

6.000

Expenditure to charities (x € 1.000)

4.000 2.000 0

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Figure 1. Ten-year overview

It follows from this overview and graph that in ten years’ time the collection volume increased from 7.1 million kilos in 2004 to 11.5 million kilos in 2013. Moreover, the income increased from € 2.3 million in 2004 to € 5.9 million in 2013. Up to and including 2007 the sales prices were relatively low. Hence in those years a relatively low amount was paid out to charity. As from 2007 there is a clear upward trend in the sales price and in the number of collected kilos. Also as a result thereof KICI could pay € 1.27 million to charity over 2013. This is € 0.12 per kilo of collected textile. In 2012 this was still € 0.11 per kilo. The outcome of the 2013 financial year can therefore be called positive.

The profit and loss account is included in the following graph (x â&#x201A;Ź 1,000). 6.000 5.000 4.000

Management and administration Available for objectives

3.000

Costs of fundraising Income

2.000 1.000 0

2009

2010

2011

2012

2013

Figure 2. Profit and loss account

The Fundraising Institutions Association annually requests us to report a number of key indicators. The amount available for the objective improved compared to 2012. The costs of own fundraising increased in 2013, both in euros and in terms of percentages, compared to 2012: available for the objective / total income * 100% = 24.8% (2012: 23.4%). Costs own fundraising / income own fundraising * 100% = 67.3% (2012: 66.7%).

Below the statement of own fundraising costs over 2013, the 2013 budget and the realisation in 2012 are shown. On pages 131 and 132 of the annual accounts the most important differences between realisation, budget and previous year are explained. actual 2013

budget 2013

actual 2012

Salaries/Social security expenses Pension expenses Other personnel expenses Municipalities’ collection levy Logistics third parties – transporters Logistics third parties – other Depreciations Maintenance containers Car expenses Housing expenses Office expenses Taxes and fees Commercial- and publicity expenses Counsel expenses Other general expenses Project innovation Interest income Bank charges Incidental assets Result from shares/depreciation claim

625 152 107 537 1,362 34 181 145 49 65 102 45 115 164 186 33 (22) 4 169

480 143 151 525 1,749 5 158 152 45 66 121 83 148 120 312 94 (18) 53

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

Total expenses own fundraising

4,053

4,386

3,415

Table 6: Own fundraising costs

Multiannual estimate The financial annual report includes the 2014 budget and the 2015-2017 multiannual estimate. The amount available for the objective in 2014 is expected to amount to € 1,206,000. KICI is concerned about the future development. The years 2014-2017 show a gradual decline from € 1,206,000 in 2014 to no less than € 714,000 in 2017. The expected development of strongly increasing payable collection fees is the cause of this (from € 635,000 in 2014 to € 1,684,000 in 2017!).

Management and administration costs In the 2013 financial annual accounts we refer to (as in 2012) ‘management and administration costs’ in accordance with the revised Directive 650 Fundraising Institutions of the Dutch Accounting Standards Board. In order to further increase the transparency and to facilitate comparisons with other foundations as from 2010 KICI follows the cost allocation recommendation Management and Administration of the Fundraising Institutions Association. Below the specification of the management and administration costs allocated on the basis of the recommendation of the Fundraising Institutions Association is provided.

Supervisory Board Board and management team General secretariat Finance, planning & control ICT Housing and facilities Human Resources Personnel costs (direct and indirect costs and hiring expenses) - Administration costs, including human resources - Accountants costs Legal costs Communication Donors Project administrations

actual 2013

budget 2012

actual 2012

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

14,795 123,526 70,843 77,680 16,379 21,012 -

12,000 123,400 70,500 77,600 15,300 21,000 -

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

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

21,464 19,650 5,000 10,000 -

15,000 23,000 5,000 10,000 -

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

380,349

372,800

436,107

Table 7: Management and administration costs

KICI follows the allocation basis of the Fundraising Institutions Association. The relevant norm is that the management and administration costs can amount to at most 10% of the revenue. For 2013 the realised percentage is: € 380,349 / € 5,951,120 * 100% = 6.4%. The management and administration costs thus remained under the norm of 10%. The cost allocation of the Board and the Management is 50% as, apart from management and administration costs, direct efforts are required for the objective and fundraising.

10.4 Abbreviated cash flow statement The cash flow statement is an overview of: • the cash available in a reporting period; • the use made of said cash. KICI thus intends to provide insight into the financing of the activities. The abbreviated cash flow statement below was prepared in accordance with the so called indirect method. Received and paid interest were included under the cash flow from operational activities. 2013

2012

Result

100

Adjustments for: depreciation of tangible fixed assets (decrease in) provisions change in working capital

181 465

193 (401)

Cash flow from operational activities Cash flow from investment activities

746 (86)

(108) (93)

Decrease in) funds Funds as per 1st January

660 1,215

(201) 1,416

Funds as per 31st December

1,875

1,215

(x € 1,000)

Table 8: Cash flow overview

Analysis of the cash flow Higher items of amounts still payable at the end of the year and a slight increase in the receivable amounts compared to 2012 provide for an increase of the cash of € 660,000 in 2013. A higher amount is in particular payable to the creditors. This increase is incidental and includes, inter alia, some non-regular items, e.g. advisory fees, costs of the interim director, and also includes a pension premium payment deferred under protest. The item still payable to charities is almost € 200,000 higher than last year. The still payable amounts are, as usual, all paid out at the beginning of 2014. The liquid assets as at 31 December 2013 are not invested on account of the entire avoidance of investment risks. KICI keeps balances on three savings accounts. The balance of the liquid assets as at the end of 2013 amounts to € 1,875,000.

10.5 Collected kilos and net revenue 12.000 10.000 8.000

Income in Euro’s Collection goods in kilo’s

6.000 4.000 2.000 0

2009

2010

2011

2012

2013

Figure 3. Collected kilos and net revenue

Collected kilos of worn clothing In 2013 the collected volume increased compared to 2012. In 2014 KICI again focuses on the collection of as many kilos of textile as possible. The net revenue per kilo increased and increased more than the number of collected kilos. The number of kilos increased by 8.3% compared to the previous year. The revenue increased by no less than 16% compared to 2012.

Collected kilo's Net turnover Average sales price per kilo

x 1,000 x € 1,000

2009

2010

2011

2012

2013

9,473 3,760 € 0.397

10,055 4,232 € 0.421

10,836 4,828 € 0.443

10,590 5,117 € 0.484

11,456 5,951 € 0.520

Table 9: Development of net revenue / sales price

The increased proceeds were realised due to a better average sales price per collected kilo. Above a representation is shown of the growth in the average sales price over the past five years. In total the sales price grew by € 0.123 per kilo between 2009 and 2013: an increase of 31%. The development of the market prices was, for that matter, experiencing ever more pressure in the last months of 2013. € 0,530 € 0,510 € 0,490 € 0,470

Average sales price per kilo

€ 0,450 € 0,430 € 0,410 € 0,390

2009

2010

Figure 4. Average sales price per kilo

2011

2012

2013

10.6 Conclusion The relatively favourable result in 2013 does not imply that the attention for the improvement of the ratio between the costs of the own organisation (costs of realising income) and the income to be realised declines. A balanced growth in revenue and costs also remains the focus in the years to come. The amount paid out to charities in 2013, almost € 1.3 million (2012: almost € 1.1 million), represents € 0.12 per kilo of collected clothing (2012: € 0.11 per kilo). The fact that cost control remains of utmost importance follows from, inter alia, the increasing costs that KICI needs to incur for obtaining collection rights for textile collection at municipalities. It is expected that this amount increases by approximately € 1 million between 2014 and 2017. This increase eventually entirely cancels out the free space (amount that remains after payment of earmarked projects and fixed beneficiaries). An alarming development as a result of which KICI will, even more than before, need to look for alternative, new sales channels and the realisation of innovative solutions for, for instance, the subtypes or non-wearable textile. Also when looking for new sales possibilities KICI continues examining the results critically. This is one of the most important reasons why we decided to discontinue the further development of the Belgian market – after a run-up period of almost two years – as at 31 December 2013. The ultimate collection result depends strongly on the loss or actually the gain of (municipal) clients and the increasing costs for the collection. That is why KICI continues focussing on maintaining and, where possible, improving the result in order to keep generating sufficient funds for the charities, also in the long term.

collect

donate

innovate

Accountability statement KICI Clothing Collection has been in possession of the CBF Quality Mark since 2001 (as the first textile collector) and endorses the principles of the Central Fundraising Bureau as central guiding principles for the structure and the strategy of its organisation. All in line with the Good Governance Code for Charities (Wijffels Code) from 2005. 1. Separated functions: supervision, management and execution The executory and supervisory duties are clearly separated from each other. The Board is responsible for the management and executory duties, in addition there is a supervisory organ. On 1 January 2013 the KICI Board consisted of two natural persons and the Supervisory Board of five natural persons. A recruitment committee was set up for the recruitment of a sixth member. S/he must comply with the prepared profile sketch for members of the Supervisory Board and, preferably, dispose of specific industry knowledge. The latter in order to optimise the composition of the Supervisory Board.

Board members: • Interim Director Bas Holvast, in particular encumbered with strategic choices (as from 6 November 2013) • Hans Markowski, Chairman of the Board / General Manager, responsible for the Finance, Projects, Innovation and Staff portfolios • André Jansen, Member of the Board / Operational Director, final responsibility for the commercial affairs with regard to the collection of textile, for marketing / PR and logistics The Board Regulations, prepared and approved by the Supervisory Board, serve as an operational framework. This establishes how important resolutions are adopted and who is responsible for what area of attention. A formal board meeting takes place and resolutions are adopted and established on a monthly basis. The articles determine what resolutions require the prior approval of the Supervisory Board.

The Supervisory Board periodically receives the list of resolutions of the board meetings. The Supervisory Board and the Board met four times in 2013 for regular meetings; prior consultation took place between the Board, the Chairman and the Vice-Chairman of the Supervisory Board. In addition a number of separate sessions were organised to brainstorm about the long-term vision and the strategy of KICI. The Supervisory Board resolved to add an interim director to the team as from 6 November 2013. In 2013 Hans Markowski held three ancillary positions: board member of the industry association Textile Recycling Association (‘Vereniging Herwinning Textiel’ or ‘VHT’) and member of the Certification Committee of the VHT. In addition he was, on behalf of KICI, director of Textiles4Textiles B.V. André Jansen did not hold any ancillary positions. Evaluation Board and Supervisory Board The Chairman and the Vice-Chairman of the Supervisory Board evaluate with the Board once a year. In 2013 evaluation also took place mutually by the members of the Supervisory Board. The results of both evaluations were established in writing.

2. Optimal spending of the resources In the Multiannual Policy and the Annual Plans KICI defines its objectives in the various areas that apply to the same, including fundraising, spending and innovation. Per department these plans are further translated into activities to be carried out in the relevant year. Costs KICI continuously pursues optimal spending of the resources. For instance, the collection costs of textile should remain as low as possible whilst at the same time national coverage is required. In 2013 it was possible to act efficiently with the external carrier base of KICI. Apart from transport costs KICI also had to deal with the deployment of operating assets, e.g. the textile containers. For additional placements or replacements KICI requests quotes from several suppliers (comparison of price/quality ratio). In addition there are the costs for the organisation itself, the office lease, the salaries and the company cars. In terms of the remuneration of the Board KICI follows the guidelines of the Fundraising Institutions Association (‘Vereniging Fondsenwervende Instellingen’ or ‘VFI’).

Total remuneration directors and management Name

Employment Nature Hours Part-time percentage Period

H.B. Markowski chairman

A.A.A. Jansen member

B. Holvast director

Indefinite 40 hours per week 100% Month

Interim 24 hours per week 60% Month

Remuneration Annual income Gross wage / salary / fee Contribution medical expenses insurance Contribution working-time reduction Holiday allowance Variable / thirteenth month

€ € € € €

93,167 3,112 2,077 8,794 15,526

Total annual income

€

National insurance contribution (employer's part) Taxable allowances / additions Net pension costs (employer's part)

€ € € € €

23,477 -

153,760

€

23,477

€

8,838

€

1,649 30,091

€ €

1,524 21,979

€ €

€

38,213

€

32,341

€

Total remuneration 2013

€

160,889

€

186,101

€

23,477

Total remuneration 2012

€

160,295

€

112,896

€

€ € € € €

132,954 6,618 14,188

122,676

€

6,473

€ €

Total other costs and allowances

What else is there? At the beginning of 2012 the Central Fundraising Bureau (‘Centraal Bureau Fondsenwerving’ or ‘CBF’) published the new version (18) of the CBF Quality Mark Regulations. The cancellation of the specific article for clothing collectors in the regulations implies that KICI could not spend more than 25% of the fundraising income on fundraising costs, according to the norm that applies to the ‘regular’ fundraisers. However unlike the regular fundraisers textile collectors, and therefore also KICI, incur relatively high costs for the collection of textile. During the reassessment in 2012 KICI was granted an exemption in respect of the relevant 25% norm by the Central Fundraising Bureau up to November 2014. Despite the developments in the market, in 2013 KICI was still able to pay out € 1,269,000 to charity.

3. Handling stakeholders KICI feels that it is important to develop and maintain an optimal relationship with the various groups of stakeholders. To this end we provide, inter alia, as much up to date information as possible via social media, the KICI website (www.kici.nl), the annual report, news messages, policy communications, and short films. If so desired, the monthly newsletter is sent. Who are these stakeholders? Citizens who donate clothing via textile containers, door-to-door collection actions or company or school actions. Via the freephone 0800 number or by email citizens ask their questions, make a suggestion or report something. Possible complaints are received via the freephone number or via the complaint form on the website. The site also provides information about the complaints procedure. Municipalities and companies where KICI collects textile The account executives of the relevant three districts have contact with their contact persons at the municipalities by telephone or by email. If so desired an appointment is scheduled. A cheque award for the benefit of a local charity, for instance, always takes place in person on location. These are nice contact moments in the course of which the local press is usually also present.

Buyers of textile and other partners with whom KICI cooperates in innovation routes KICI invests amply in research and innovation and the possibility of closing the circle. There is very regular personal contact with these innovation partners, both about on-going matters and about the possibility of further developing transparency and sustainability. In the last couple of years discussions also took place with the Textiles4Textiles consortium (www.textiles4textiles.eu) about the development of the Textiles4Textiles sorting machine. At the end of 2012 this project, partly financed with money from the EU, was completed. In 2013 the automated sorting machine was, after additionally required further development and adjustment of important elements, deployed for the automatic and optimal sorting of all sorts of non-wearable textile.

KICIâ&#x20AC;&#x2122;s own employees The employees of KICI are fully committed to organising everything as optimally and efficiently as possible and to raising as much money as possible for charity. The processes were established in ISO procedures and the AO/IC handbook. Annually the employees have a performance review and an assessment interview. All employees also prepared a personal development pan (PDP) in association with their supervisor. In the course of the year the various departments organise internal lunch presentations in order that everybody within the organisation is informed of the latest developments.

Suppliers The external carriers are indispensable for the high-quality supply of the services to the municipalities. KICI has been working with the current transport companies for many years and of course there is daily contact by telephone between them and the Logistics Department. Beneficiaries KICI developed a clear procedure for the beneficiaries / projects that receive resources from KICI with specific reporting moments in order that the beneficiary knows what the situation is and what is expected of the same. Where possible, a KICI employee personally hands over a cheque.

11.

100

Annual accounts

Balance sheet as at 31 December 2013 After processing result 31.12.2013

31.12.2012

155,657 321,980 477,637

169,941 402,459 572,400

4,166 4,166

499,140 9,927 47,782 556,849

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

1,874,590

1,214,925

2,913,243

2,320,589

ASSETS (â&#x201A;Ź) * Tangible fixed assets Operating assets Directly in use for objective

Financial fixed assets Other participations

Receivables Trade receivables Participants and undertakings participated in Other receivables, prepayments and accrued income

Liquid assets

1) 2)

5) 6)

* For explanatory notes with numbers 1 up to and including 7 reference is made to pages 110 ff.

101

LIABILITIES (â&#x201A;Ź)â&#x20AC;&#x201A; * Reserves and funds Reserves Continuity reserve Special-purpose reserve Revaluation reserve Other reserves

31.12.2013

31.12.2012

1,126,208 1,126,208

1,026,208 1,026,208

1,126,208

1,026,208

328,719 111,887 670,513 675,916 1,787,035

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

2,913,243

2,320,589

1.36 39%

1.35 44%

Funds

Short-term debts Trade creditors Taxes and national insurance premiums Payment obligation charities Other debts, accruals and deferred income

9) 10) 11) 12)

Ratios Current ratio: receivables and liquid assets / short-term debts Solvability: reserves and funds / total capital

* For explanatory notes with numbers 8, 9, 10 and 12 reference is made to pages 116 and 117. For explanatory notes with number 11 reference is made to pages 121 ff.

102

2013 Profit and Loss Account ** (€)

actual 2013

budget 2013

actual 2012

5,951,131 75,255

6,166,300 147,000

5,117,193 40,760

13)

6,026,386

6,313,300

5,157,953

14)

1,368,889 (100,000)

1,329,700 -

1,165,761 (100,000)

1,268,889 * 223,693

1,329,700 224,900

1,065,761 141,400

1,492,582

1,554,600

1,207,161

Income: Income from own fundraising Income from non-traditional fundraising / donations Sum of the income Expenditure: Available for objective Net available for objective Addition continuity reserve Payments charities Implementation costs of objective (partly passed on salary costs board and employees)

Raising of income Costs own fundraising

15)

4,053,455

4,385,900

3,414,685

Management and administration Management and administration costs

16)

380,349

372,800

436,107

5,926,386

6,313,300

5,057,953

Surplus before taxes Corporation tax

100,000 -

Surplus after taxes

100,000

Sum of the operating expenditure

*) Is minus addition to continuity reserve € 100,000 The amount ‘Net available for objective’ is used as the starting point for the calculation of the amount payable per kilo. Possible dotation to the continuity reserve is not taken into account in this calculation. **) For explanatory notes with numbers 13 up to and including 16 reference is made to pages 120 ff.

103

Explanatory notes cost apportionment and cash flow overview Explanatory notes cost apportionment Designated use

Earmarked projects Fixed beneficiary Free space projects Donated clothing Salaries / national insurance Pension costs Other employee expenses Municipal collection fee Logistics third parties - carriers Logistics third parties - other Depreciations -/- book result Maintenance costs containers Car expenses Accommodation costs Office expenses Taxes and duties Advertising and publicity costs Advisory fees Board expenses Other general expenses Innovation projects Interest income Bank charges Incidental income Result participation / write-down receivables participation Total

Objective A) 707,015 125,000 312,781 * 224,093 223,693

Costs own fundraising

625,189 151,729 107,210 537,469 1,361,640 34,410 181,004 145,127 48,524 65,464 101,710 45,042 114,990 163,977 185,858 33,258 (22,451) 3,929

Man. & adm. B)

272,049

21,012 16,379 9,990 5,010 14,795 41,114

169,376

1,592,582

4,053,455

380,349

Total 2013

Budget 2013

Total 2012

707,015 125,000 312,781 224,093 1,120,927 ** 151,729 ** 107,210 537,469 ** 1,361,640 ** 34,410 ** 181,004 ** 145,127 ** 48,524 ** 86,476 118,089 45,042 124,980 ** 168,987 ** 14,795 226,972 ** 33,258 ** (22,451) 3,929 - ** 169,376 **

841,550 125,000 244,210 118,948 976,800 142,500 151,200 525,000 1,749,100 5,000 158,200 152,000 45,000 86,800 136,100 83,000 157,500 125,000 12,000 349,800 94,000 (18,000) 52,600

404,181 125,000 272,211 264,369 1,002,606 106,043 122,910 212,654 1,273,474 24,890 189,035 170,322 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

6,026,382

6,313,308 -

5,057,953

Amounts between ( ) regard operating income. A) â&#x20AC;&#x153;the objective of KICI is to look after social interests, both in and outside of the Netherlands and moreover all that which can, either directly or indirectly, be related or conducive to the same, all in the broadest sense of the word.â&#x20AC;? (specifications on pages 123 up to and including 126). B) For the benefit of insight into the scope and composition of the costs of the own organisation a specification is provided of the costs of own fundraising. The management and administration costs are processed in conformity with the recommendation of the VFI and are specified separately on page 130. *) includes addition of â&#x201A;Ź 100,000 to the continuity reserve. **) reference is made to further explanatory notes with these items on pages 131 en 132.

104

Cash flow overview (â&#x201A;Ź)

current financial year

previous financial year

Cash flow from operational activities Result

100,000

Restatements for: depreciations tangible fixed assets (decrease) provision

181,000 -

192,956 -

(27,751) 492,654 745,903

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

(86,237) (86,237)

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

(Decrease) cash Cash as at 1 January

659,665 1,214,925

(200,954) 1,415,879

Cash as at 31 December

1,874,590

1,214,925

Movements in operating capital: decrease stocks decrease receivables (decrease) / increase short-term debts

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

105

Explanatory notes with the result sale used goods actual 2013

budget 2013

actual 2012

5,951 75 6,026

6,166 135 6,301

5,117 5,117

11,456 11,456

12,500 12,500

10,531 59 10,590

11,456

13,500

10,590

OVERVIEW GROSS INCOME (amounts x € 1,000) Net revenue Income from own fundraising Revenue collection Revenue services Total GOODS MOVEMENT (quantities x 1,000 kilos) Collections: * container collection * alternative collection

Deliveries:

CBF CALCULATION Average market price p/kg Advancing average market price p/kg Net proceeds total average in original state p/kg Advancing average net proceeds p/kg Advancing average net proceeds p/kg divided by advancing average net market price p/kg in % (1)

€ € € €

0.52 0.48 0.13 0.12

25%

€ € € €

0.48 0.44 0 .1 1 0 .1 1

25%

1) Over 2013 KICI realised payments to charities equal to 25% of the income from own fundraising. Effective from 1 January 2012 the CBF formulated the requirement to pay at least 75% from the income from own fundraising to charity. However, this is infeasible for clothing collectors due to the high collection costs (transport costs and fees of municipalities). Upon the reassessment in 2012 the request of KICI for an exemption in respect of this requirement was granted and the CBF extended the CBF Quality Mark up to 1 July 2015.

106

General explanatory notes Objective and activities The Stichting Kleding Inzameling Charitatieve Instellingen – Foundation Clothing Collection Charities (KICI) was incorporated on 28 February 1975 and is established in The Hague. The objective of the Foundation is as follows: “to look after social interests both in and outside of the Netherlands and moreover all that which can, either directly or indirectly, be related or conducive to the same, all in the broadest sense of the word.” Reserves and funds The amount of the continuity reserve can, pursuant to PBO regulations, amount to that which is within reason required for the continuity of the foreseen activities for the benefit of the objective of the foundation (= an open norm). Annually KICI balances by what amount the continuity reserve can, in consideration of the PBO regulations, be increased. Up to an including the 2013 annual accounts the policy regarding the function and the scope of the real spendable income of KICI is aimed at spending the entire realised profit to the objective. However, having regard to the market and economic conditions, KICI decided to also in 2013, like in 2012, increase its continuity reserve. In the light of the objective of KICI pursuant to the articles, all the funds that are raised through fundraising are basically paid out to charities. In the last couple of years a wide range of organisations and projects received a financial contribution from KICI. As from 2009 the new main beneficiary is the Dutch Red Cross. Tax liability KICI is liable to pay corporation tax. In this context KICI relies on article 9a paragraph 1 under a of the Dutch Corporation Tax Act 1969. In 2013 KICI pays, apart from the dotation to the continuity reserve in consideration of the PBO regulations in terms of capital formation, the entire result to charities. Hence KICI is not liable to pay corporation tax over 2013.

General principles for the preparation of the annual accounts General The annual accounts are prepared in accordance with Directive 650 (revised 2011) Fundraising Institutions. The valuation of assets and liabilities and the determination of the result take place on the basis of historical cost. Unless the relevant principle for the specific balance sheet item indicates otherwise, the assets and liabilities are included at nominal value. Income and expenditure are allocated to the year to which they are related. Profit is only included to the extent that it was realised on the date of the balance sheet. Losses that originate from before the end of the reporting year, are taken into account if they were known before the preparation of the annual accounts.

107

Comparison with last year The applied accounting policies have remained unchanged compared to the previous year. The annual accounts were prepared in accordance with Directive 650 (revised 2011). The figures for 2012 were, where required, reclassified in order to enable comparability with 2013.

Accounting principles for assets and liabilities Tangible fixed assets The tangible fixed assets are valued at acquisition cost or manufacturing cost, minus the cumulative depreciations. The depreciations are based on the expected economic lifecycle and are calculated on the basis of a fixed percentage of the acquisition cost or manufacturing cost, taking a possible residual value into account. Financial fixed assets The unconsolidated participations in which significant influence is exercised on the business and financial policy are valued at the net asset value, however not lower than nil. This net asset value is calculated on the basis of the principles of KICI. In case of a negative net asset value a provision is formed, which in case of MVOBouw B.V. (33.33%) and KICI BELGIUM BVBA (100%) was formed at the expense of the current account receivable and/or the funds lent. The provision will in case of MVOBouw B.V. and KICI BELGIUM BVBA amount to at most the level of the current account and/or the funds lent. Participations in which no significant influence is exercised on the business and financial policy, are valued at acquisition cost and, where applicable, upon deduction of special downward value adjustments. This is the case with Retourette B.V. (5%), where the paid goodwill was written off due to continuing losses. The company Textiles4Textiles B.V. newly incorporated in 2011 (16.16%) was included at acquisition cost. Receivables The receivables are valued at nominal value, upon deduction of the provisions deemed necessary for the bad debt risk. These provisions are determined on the basis of individual assessment of the receivables. Principles of the cash flow overview The cash flow overview is prepared in accordance with the indirect method. In the layout the cash flow, which consists of the surplus after taxes plus the depreciation costs, is presented separately. Other assets and liabilities Unless indicated otherwise, assets and liabilities are included at the nominal value.

108

Estimates When preparing the annual accounts the board should make, in accordance with generally applicable principles, certain estimates and assumptions that are also decisive for the included amounts. The actual results can differ from these estimates.

Principles for determination of the result Income from own fundraising Income from own fundraising is understood as the proceeds of the goods delivered and the services supplied in the reporting year minus discounts and the taxes levied over the revenue. Proceeds of goods are included upon delivery. The implementation costs of these goods are allocated to the same period. Proceeds of services are included in proportion to the supply of the services. The implementation costs of these services are allocated to the same period. Pension costs The foundation has a pension scheme for its available (basic and excess scheme) in the course of which the pension benefits are based on the average salary. This pension scheme was placed with the sectoral pension fund SPNG Pension Fund. The premiums payable over the financial year are recorded as costs. A provision is included for premiums not paid as at the date of the balance sheet yet. As these obligations are of a shortterm nature they are valued at the nominal value. The risks of salary developments, price indexation, investment return on the fund capital may result in future adjustments of the annual contributions to the pension fund. These risks are not expressed in a provision included in the balance sheet. In case of a deficit at the sectoral pension fund the foundation is not held to pay additional contributions other than higher future premiums. Taxes The corporation tax is calculated at the applicable rate over the tax result of the financial year. Share in the result of unconsolidated undertakings As result of participations in which significant influence is exercised on the business and financial policy the share in the result of these participations allocable to the company is included after deduction of the relevant taxes. In case of participations in which no significant influence is exercised on the business and financial policy the dividend is qualified as result. For explanatory notes with the processing of the result of the participations we refer to page 112, Explanatory Notes Financial Assets.

109

EXPLANATORY NOTES BALANCE SHEET ASSETS Tangible fixed assets (â&#x201A;Ź) 1 )â&#x20AC;&#x201A; Operating assets The progress overview of the operating assets is as follows:

As at 01/01/2013 Acquisition cost Cumulative depreciations Movements financial year 2013 Investments Acquisition value disinvestments Cumulative depreciation disinvestments Depreciations

As at 31/12/2013 Acquisition cost Cumulative depreciations

Depreciation percentages

110

Means of carriage

Office inventory / equipment

Total

180,071 (52,777) 127,294

229,054 (186,407) 42,647

409,125 (239,184) 169,941

16,000 (36,548) (20,548)

20,237 (13,973) 6,264

36,237 (50,521) (14,284)

196,071 (89,325) 106,746

249,291 (200,380) 48,911

445,362 (289,705) 155,657

20%

EXPLANATORY NOTES BALANCE SHEET (CONTINUED) 2 ) Directly in use for objective The progress overview of the assets directly in use for the objective is as follows: Number of (Roll) Containers As at 01/01/2013 Acquisition cost Cumulative depreciations

Containers

Roll containers and fences

Total

1367

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

21,020 (21,020)

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

1407

50,000 (130,479) (80,479)

1407

1,781,193 (1,459,213) 321,980

21,020 (21,020) -

1,802,213 (1,480,233) 321,980

20%

Movements financial year 2013 Investments Acquisition cost disinvestments Cumulative depreciation disinvestments Depreciations

As at 31/12/2013 *) Acquisition cost Cumulative depreciations

Depreciation percentages

*) As at 31 December 2013 there are 163 containers in stock.

111

EXPLANATORY NOTES BALANCE SHEET (CONTINUED) Financial fixed assets 3 ) Other participations

31.12.2013

31.12.2012

1,250 2,916 -

4,166

Retourette B.V. MVOBouw B.V. KICI BELGIUM BVBA Textiles4Textiles B.V. KNIB B.V.

Textiles KICI BELGIUM 4Textiles B.V. BVBA As at 1 January 2013 Provision as at 1 January 2013 Acquisitions Result participation 2013 Depreciation current account and funds lent Special downward value adjustments as at 31 December 2013 As at 31 December 2013 Provision as at 31 December 2013

(59,798) 59,798 -

MVOBouw B.V.

Retourette B.V.

KNIB B.V.

Total

1,250 1,250 -

(151,296) 155,462 4,166 (169,376) 169,376

2,916 2,916 -

(164,352) 164,352

(95,664) 95,664 (5,024) 5,024

2,916 2,916

(224,150) 224,150 -

(100,688) 100,688 -

1,250 1,250

- (320,672) - 324,838 4,166

MVOBouw B.V. (trade name VRK Isolatie) MVOBouw B.V. in Tilburg was incorporated on 15 December 2009. KICI acquired a share of 33 1/3% upon the incorporation of the company. The nominal share capital as at 31 December 2013 amounts to € 18,000. MVOBouw B.V. is valued at net asset value, however not lower than nil. At the end of 2013 the share of KICI in the share capital of MVOBouw B.V. is € 9,664 negative. A provision is kept for the share in the negative equity capital. The provision was primarily formed at the expense of the current account receivable and funds lent to MVOBouw B.V., originally for a total amount of € 105,494. Effective as from 01/01/2013 the board of KICI decided not to lend any further funds to MVOBouw B.V.

112

Retourette B.V. On 15 December 2009 a considerable interest of 1,250 shares at € 1 (i.e. 5.0%) was acquired at acquisition price of in total € 75,000 in the shares of Retourette B.V. in Zeewolde. This is a strategic participation in an organisation that focuses on recycling, intake, and handling waste, packages and residual products environmentally friendly. The nominal share capital as at 31 December 2013 amounts to € 23,000. KICI BELGIUM BVBA On 1 April 2012 a 100% subsidiary, KICI BELGIUM BVBA, was incorporated. KICI Netherlands paid a share capital of € 20,000. KICI BELGIUM is valued at net asset value, however not lower than nil. In the course of 2013 the expectations with regard to the growth and development were adjusted and it was decided to for the time being discontinue the activities in Belgium. The result of KICI BELGIUM in 2013 amounted to € 164,352 negative. This includes a created provision of € 15,000 for the benefit of possible costs with regard to the settlement of activities. At the end of 2013 the share of KICI in the equity capital of KICI BELGIUM amounts to € 224,150 negative. A provision is kept for the share in the negative equity capital. The provision was primarily created at the expense of the current account and the funds lent to KICI BELGIUM, originally for a total amount of € 231,333. Textiles4Textiles B.V. On 23 November 2011 an interest of 2,916 shares at € 1 (i.e. 16.6%) was acquired at an acquisition price of in total € 2,916. The annual accounts over 2013 are not ready yet, however considering the interest of KICI, the participation is valued at acquisition cost. KNIB B.V. On 29 October 2013 KNIB B.V. was incorporated. The Foundation KICI is the sole shareholder. Issued and subscribed capital amounts to € 1. KNIB B.V. was not operational as at 31 December. Financial and/or contractual obligations were not concluded.

113

EXPLANATORY NOTES BALANCE SHEET (CONTINUED) Receivables (€) 4 ) Trade receivables Trade receivables Provision for bad debts

5 ) Participants and undertakings participated in Funds lent KICI BELGIUM BVBA Current account KICI BELGIUM BVBA. Current account T4T B.V. Current account Retourette B.V. Current account KNIB B.V.

31.12.2013

31.12.2012

499,140 499,140

415,096 415,096

31.12.2013

31.12.2012

1,262 5,921 1,928 816 9,927

27,282 1,221 816 29,319

In conformity with the loan agreement 5% interest is charged over the funds lent to MVOBouw B.V. as from 1 January 2012. Repayment of the loan will ultimately take place on 31 December 2015. Arrangements were agreed on in terms of securities. Balance of the loan as at 31-12-2013 amounts to € 105,494. This loan was written off entirely as there is question of uncertainty whether the receivable is received back. Effective as from 01/01/2013 the board of KICI decided not to lend any further funds to MVOBouw B.V. In conformity with the loan agreement 5% interest is charged over the funds lent to KICI BELGIUM BVBA as from 1 January 2013. Repayment of the loan will ultimately take place on 31 December 2015. Arrangements were agreed on in terms of securities. Balance of the loan and current account as at 31-12-2013 amounts to € 231,333. An amount equal to the negative net asset value of KICI BELGIUM was deducted from this loan. Interest is not calculated over the current account balance of T4T B.V. and Retourette B.V. Nothing has been stipulated (yet) in terms of repayment and securities. KNIB B.V. is not operational yet. There are no mutual receivables / debts as at 31/12/2013.

114

31.12.2013

31.12.2012

34,848 8,873 4,061 47,782

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

7 ) Liquid assets

31.12.2013

31.12.2012

Rabobank; current account Rabobank; savings account Triodos Bank; return account Cash Suspense account items

409,308 1,211,061 254,249 42 (70) 1,874,590

6 ) Other receivables, prepayments and accrued income Prepaid costs Receivable bank interest Security deposits Receivable subsidy Funds lent to staff Other

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

*) This amount is related to a subsidy received regarding the EU project, T4T. This amount was paid to the other partners of this project in January 2013.

For an amount of € 19,189 (in 2012: € 18,888) the liquid assets are not freely available to the foundation. The nature of the bank guarantee regards the lease of the building at the Colijnplein 20 in The Hague. The security deposits received from buyers € 178,500 (in 2012: € 137,000) should neither be qualified as real spendable income.

115

EXPLANATORY NOTES BALANCE SHEET (CONTINUED) LIABILITIES RESERVES AND FUNDS (â&#x201A;Ź) 8 ) Continuity reserve

31.12.2013

31.12.2012

Start reporting year Addition / withdrawal Result financial year End reporting year

1,026,208 100,000 1,126,208

926,208 100,000 1,026,208

Other reserves Start reporting year Addition / withdrawal Result financial year End reporting year

1,126,208

1,026,208

Total reserves and funds

Having regard to the deteriorated market conditions and the economic situation in the Netherlands and in the rest of the world KICI decided to also increase its continuity reserve in 2013, like in 2012, in order to thus be able to better deal with possible setbacks in the future. The addition to this reserve will not be at the expense of the ultimate amount Net available for objective per kilo (reference is also made to the calculation on page 127).

116

SHORT-TERM DEBTS (â&#x201A;Ź) 9 ) Trade creditors Suppliers

31.12.2013

31.12.2012

328,719

133,423

The increase compared to 2012 is incidental and comprises, inter alia, some non-regular items, e.g. advisory fees and costs interim director. This also includes a pension premium payment deferred under protest.

10 ) Taxes and national insurance premiums Income tax / national insurance premiums Turnover tax Corporation tax

12 ) Other debts, accruals and deferred income Pension premiums Publicity costs Accountant and administration costs Holiday allowance and holidays Jubilee fund Received security deposits Payable net salary Payable employee expenses Automation costs Advisory fees Tax, rent and duties municipalities Credit notes to be sent regarding wet and dirty Other accruals

31.12.2013

31.12.2012

83,141 28,746 111,887

40,465 28,551 69,016

31.12.2013

31.12.2012

15,000 18,000 82,865 20,000 178,500 * 71,481 30,000 10,000 35,218 40,000 174,852 675,916

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

*) Regards security deposits received from buyers. Excludes bank guarantees of buyers for a total of â&#x201A;Ź 118,000. The received security deposits are not qualified as freely available liquid assets.

117

Liabilities not included in the balance sheet Multiannual financial obligation: For the lease of the office building a lease agreement was concluded up to 31 January 2015. The agreement includes an option for KICI to renew the agreement by five years. For 2014 the indexed annual rent amounts to approximately € 56,000. For the office building this implies € 104 per m². Lease agreement was terminated. Arrangements with fixed beneficiaries: As from 2009 the new main beneficiary is the Dutch Red Cross, annually a fixed amount of € 125,000 is paid out. The agreement comes to an end on 31 December 2014. Effective as from 2013 a fixed contribution of € 10,000 will be paid out to the Fund for Disabled Sports. The agreement applies to 2013 and 2014.

118

119

EXPLANATORY NOTES PROFIT AND LOSS ACCOUNT INCOME (€) 13 ) Sum of the income

Clothing collection (municipal) Collected in kg. of which for third parties

actual 2013

budget 2013

actual 2012

11,455,822 -

12,500,000 -

10,531,059 -

Average price per kg.

€

0.52

Proceeds in euro

€

5,951,131

€ 6,166,300

€ 5,090,709

59,251 -

Clothing collection (non-municipal) Collected in kg. of which for third parties

€

0.49

€

0.48

Average price per kg.

€

0.45

Proceeds in euro

€

26,484

€ € € € €

15,255 60,000 75,255

€ € € € €

22,260

Income from non-traditional fundraising / donations Received contributions Knitting Project Kenya Received management fees KICI BELGIUM BVBA Received contribution for Start Clothing Collection Kenya Other contributions, without specific destination

120

12,000 12,000

18,500 40,760

EXPENSES (€) Available for objective

Number

12.003 12.021 12.039 12.007 12.020 12.006 12.004 12.015 12.035 12.038 12.020A 12.029 12.020 12.049 12.005B 12.005C 12.010 12.019 12.018 12.017 12.037 12.001 12.005 12.008 12.011 12.012B 12.013 12.014 12.016 12.023

Description

Projects 2012 Earmarked projects Stg. De Koppel Stg. Afvalservice West Stg. House of Denim Stg. Collusie Spinners Trust Stg. Uden Wereldwijd Stg. Kennemerland - Oost Europa Municipality of Leiden - Twinning Arrangement Fund for Disabled Sports Stg. vanHarte Stg. War Child Human Bridge Sweden Stg. Kledingbank Wageningen 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 TBD with municipality TBD with municipality TBD with municipality TBD with municipality of Westvoorne TBD with municipality of Gennep TBD with municipality of Krimpenerwaard TBD with municipality of Beesel TBD with municipality of Hulst TBD with municipal champion NPSP Subtotal earmarked projects 2012

Payable 31.12.12

Paid 2013

7,621 50,248 5,000 1,837 20,000 9,683 2,720 27,891

15,070 200 4,462 1,059 96 16,687 5,874

5,874 4,397 3,264 1,431 23,856

8,000 5,000 9,044 14,026 4,924

15,439 1,923

2,604 2,500 4,000

274,731

Release 2013

11) Spec. Balance Payable 31.12.13

121

EXPLANATORY NOTES PROFIT AND LOSS ACCOUNT (CONTINUED) Number

Description

12.051 12.072 12.057 12.067 12.069 12.046 12.044 12.058 12.059 12.060 12.063 12.068 12.070 06.85 12.030 12.061 12.066 12.047

122

Payable 31.12.12

Paid 2013

Release 2013

Payable 31.12.13

DOVE International Stg. House of Denim Stg. Lundazi Adoptieplan Groepsbeschikking Christelijk Gereformeerde Kerken Goodwill Group Foundation Stg. Orange Babies Stg. War Child Stg. SOS Children's Villages Netherlands Fund for Disabled Sports Stg. Koepel Nationale Kledingbanken DOVE International - Knitting Project Stichting Ebenezer Stg. Leontien.nl Foundation TBD The Dutch Red Cross Association Culturelle de l’amitié Belgo-Turque Hilal Hilfsorganisation E.V. Stg. Jantje Beton Reallocation project 11.084, return in 2012

48,038 5,000 1,005 1,000

5,000 16,213 16,450 3,300

15,267 4,668

25,000

1,000 5,000 3,914 33,223 2,500

5,000 6,335 (9,100)

Subtotal other projects 2012

188,813

Subtotal projects 2012

463.543

Number

Description

Payable 31.12.12

Release 2013

11) Spec. Balance Payable 31.12.13

Approved 2013

Paid 2013

22,627

129,103 2,000 7,525 3,531

3,531

129,103 2,000 7,525 -

164,786

3,531

175,476 7,604 6,618

125,000 3,594 -

50,476 4,011 6,618

6,618 4,787 2,361 1,887 1,887

207,238

128,594

26,284

20,000 13,504 23,476 3,500 5,075

20,000 -

13,504 23,476 3,500 5,075

91,840

20,000

Projects 2013 Earmarked projects

13.013 13.015 13.024 13.035 13.036A

Sustainability Natuur Milieu Educatiecentrum Maassluis Stg. Afvalservice West Stg. Repair Café Stg. De Koppel Stg. Aarde-Werk -

13.022 13.014 13.036C 13.036D 13.039 13.043 013.040C 013.040B

Liveability The Dutch Red Cross The Dutch Red Cross Hoogeveen The Dutch Red Cross Leidschendam The Dutch Red Cross Voorburg The Dutch Red Cross Leerdam The Dutch Red Cross Zaligheden Muziekvereniging Ons Genoegen Muziekvereniging De Volharding -

13.008 13.045 13.048 13.051 13.020 13.042

Education Municipality of Leiden - Twinning Arrangement Spinners Trust Stg. War Child Stg. Jantje Beton Koos de Vuilnisman Bloemendaal Terre des Hommes -

161,255

78,645

71,840

123

EXPLANATORY NOTES PROFIT AND LOSS ACCOUNT (CONTINUED) Number

Description

13.009 13.002 13.002A 13.018 13.023 13.037 13.054 13.047 13.050 013.040A

Self-reliance Stg. Kennemerland-Oost Europa Millse Missievrienden Stg. Lundazi Adoptieplan Stg. Aarde-Werk Fund for Disabled Sports Stg. Uden Wereldwijd Spinners Trust Knitting Project Foundation Stg. Orange Babies Stg. Vrienden van Haïti

Payable 31.12.12

TBD with municipality Together with a number of municipalities KICI will further establish the projects to be supported at the beginning of 2014. Subtotal earmarked projects

124

Approved 2013

Paid 2013

9,056 11,568 6,916 1,296 42,897 8,987 87,500 122,469 20,192 1,258

4,938 21,413 87,500 117,469 -

312,138

231,319

56,013

832,015

383,444

Release 2013

Payable 31.12.13

9,056 6,631 6,916 1,296 21,484 8,987 5,000 20,192 1,258 -

80,819

56,013

448,572

Number

13.063 13.070 13.072 13.073 13.075 13.086

Description

Payable 31.12.12

Sustainability Stg. Big Mamma - DJ 100 Municipality of Schoonhoven Stg. House of Denim Coöperatieve Circle Economy U.A.I.O Missing Chapter Foundation Stg. Partnership Verkiezing -

13.068 13.083 13.040 13.071 13.080 13.087 13.093

Liveability Föreningen Emmaus Björka The Dutch Red Cross Stg. Vrienden van Haïti Finnish Red Cross Humanity House Stg. Buddy Netwerk Stg. Nelis -

13.064 13.067 13.078 13.077 13.084 13.092 13.094

Education Stg. Right to Play Plan Nederland Stg. SEED Support NL Stg. Ebenezer Project SRS Bena Sportsworth Foundation Jazi Foundation -

Approved 2013

Paid 2013

Release 2013

Payable 31.12.13

9,000 1,000 40,000 15,000

3,000 -

6,000 1,000 40,000

17,500 6,000

88,500

3,000

8,611 5,000 630 2,970 7,000 5,000 2,837

8,611 5,000 -

32,048

13,611

4,000 80 5,000 7,000 7,000 5,000 2,000

4,000 80 -

30,080

4,080

15,000

85,500

630 2,970 7,000 5,000 2,837 -

18,437

5,000 7,000 7,000 5,000 2,000 -

26,000

125

EXPLANATORY NOTES PROFIT AND LOSS ACCOUNT (CONTINUED) Number

13.060 13.062 13.062B 13.066 13.065 13.076 13.081 13.085 13.088 13.090 13.091 13.095

Description

Payable 31.12.12

Approved 2013

Paid 2013

11,153 2,000 7,500 1,500 5,000 5,000 7,000 4,000 4,000

9,850 2,000 7,500 1,500 5,000 -

1,303 5,000 7,000 4,000 4,000

5,000 5,000 1,000

58,153

25,850

4,000

212,781

46,541

166,240

224,093

168,392

1,268,889

598,376

Self-reliance Fund for Disabled Sports Stg. Orange Babies Stg. Orange Babies Stg. Orange Babies Amsterdam Noord Stg. Vrouwen & Arbeidsmarkt I Did Slow Fashion Movement Goodwill Group Foundation Stg. Dienstencentrum Gered Gereedschap Stg. de Blije Kei Stg. Chicos de los Andes Stg. Ninos Unidos Peruanos -

13.074

TBD with municipality Municipal champion

Subtotal other projects (= minus € 100,000 addition to continuity reserve) Donated clothing to charity

126

Release 2013

Payable 31.12.13

32,303 4,000

55,702

11) 670,513

Basis for support contracting parties:

2013

2012

Gross amount available for objective Implementation costs objective

1,592,582 (223,693)

1,307,162 (141,400)

*) Net amount available for objective Minus earmarked projects Minus donated clothing to charity Main beneficiary

1,368,889 (707,015) (224,093) (125,000)

1,165,762 (404,181) (264,369) (125,000)

**) Net amount available for payment

312,781

372,212

11,455,822

10,590,310

Total number of collected kilos

Per kilo Gross available for objective Per kilo Net available for objective Per kilo Net available for payment

€ € €

0.14 € 0.12 € 0.03 €

0.12 0.11 0.04

*) When determining the amount Net available for objective per kilo the movement Equity Capital, addition to the continuity reserve, is not taken into account. **) Amounts include the addition to the continuity reserve. Both in 2012 and in 2013 this dotation amounted to € 100,000.

127

EXPLANATORY NOTES PROFIT AND LOSS ACCOUNT (CONTINUED) RAISING INCOME 15 )â&#x20AC;&#x201A; Costs own fundraising The specification of the costs own fundraising after allocation is as follows: actual 2013

budget 2013

actual 2012

Salaries / national insurance Pension costs Other employee expenses Municipal collection fee Logistics third parties - carriers Logistics third parties - other Depreciations -/- book result Maintenance costs containers Car expenses Accommodation costs Office expenses Taxes and duties Advertising and publicity costs Advisory fees Other general expenses Innovation projects Interest income Bank charges Incidental income Result participation / write-down receivables participation

625,189 151,729 107,210 537,469 1,361,640 34,410 181,004 145,127 48,524 65,464 101,710 45,042 114,990 163,977 185,858 33,258 (22,451) 3,929 169,376

480,400 142,500 151,200 525,000 1,749,100 5,000 158,200 152,000 45,000 65,800 120,800 83,000 147,500 120,000 311,800 94,000 (18,000) 52,600

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 28,281 118,488 (15,129) 2,132 (93,106) 126,171

Total cost own fundraising

4,053,455

4,385,900

3,414,685

Explanatory notes with the most important variations between the actual result, the 2013 budget and the 2012 realised results are available on page 130. For the benefit of insight into the scope and composition of the costs of the own organisation a specification is provided of the costs of own fundraising. The management and administration costs are processed in conformity with the recommendation of the VFI. These costs are specified on page 130. The costs included under management and administration were deducted from the aforementioned items.

128

Average number of employees in FTE

2013

Budget

2012

19.9

18.5

21.7

H.B. Markowski chairman

A.A.A. Jansen member

B. Holvast director

Indefinite 40 hours per week 100% Month

Interim 24 hours per week 60% Month

Total remuneration directors, management and supervisory directors Name

Employment Nature Hours Part-time percentage Period Remuneration Annual income Gross wage / salary / fee Contribution medical expenses insurance Contribution working-time reduction Holiday allowance Variable / thirteenth month

€ € € € €

93,167 3,112 2,077 8,794 15,526

Total annual income

€

National insurance contribution (employer's part) Taxable allowances / additions Net pension costs (employer's part)

€ € € € €

23,477 -

153,760

€

23,477

€

8,838

€

1,649 30,091

€ €

1,524 21,979

€ €

€

38,213

€

32,341

€

Total remuneration 2013

€

160,889

€

186,101

€

23,477

Total remuneration 2012

€

160,295

€

112,896

€

€ € € € €

132,954 6,618 14,188

122,676

€

6,473

€ €

Total other costs and allowances

1) KICI paid the 13th month over 2012 and 2013 at the expense of 2013. 2) Includes the severance for settlement of the agreement as at 2013 due to termination. 3) As at 06-11-2013 the composition of the board changed. Mr B. Holvast was added to the team as interim director. The allowances paid in 2013 were included under the item general costs. The supervisory board uses the recommendation ‘remuneration directors of charities’ established in the members’ meeting of the VFI at the end of 2005 for the determination of the remuneration of the directors of KICI. This calculation method, in which a number of elements of the position of the director / manager are described and weighted, is assessed periodically and, where required, adjustments are made. This assessment took place in 2011. It was established that the remuneration of the board of KICI can be deemed appropriate considering the scope and seriousness of the position.

129

EXPLANATORY NOTES PROFIT AND LOSS ACCOUNT (CONTINUED) Procedure appointment board and supervisory board Both the supervisory board and the board of KICI have regulations in which various matters are established and described. The procedures with regard to appointment, suspension and dismissal of directors and/or members of the supervisory board are also expressly mentioned herein.

MANAGEMENT AND ADMINISTRATION Management and administration

Supervisory board 100% Board and management 50% General secretariat 100% Finance, planning and control 100% ICT pro rato Accommodation and facilities pro rato - Administration costs, including human resources 100% - Accountant fees 100% Legal expenses fixed amount Communications fixed amount

actual 2013

budget 2013

actual 2012

14,795 123,526 70,843 77,680 16,379 21,012 21,464 19,650 5,000 10,000

12,000 123,400 70,500 77,600 15,300 21,000 15,000 23,000 5,000 10,000

11,338 148,150 31,100 87,200 12,404 18,791 85,849 26,275 5,000 10,000

380,349

372,800

436,107

For the benefit of insight into the scope and composition of the costs of the own organisation a specification is provided of the costs of own fundraising. The management and administration costs are processed in conformity with the recommendation of the VFI. Explanatory notes with the most important variations between the 2013 actual result, the 2013 budget and the 2012 realised result Earmarked projects In the item earmarked projects an increase (303k) can be observed compared to 2012. The ultimate amount available for the objective was reduced strongly as a result of the increase of municipal collection fees. In 2012 collection fees amounted to 213k. In 2013 this amounted to 537k. An increase of 324k. KICI expects that this trends continues further. As a consequence the ultimate room for other projects will be under further pressure.

130

Available for objective The amount available for the objective is lower than budgeted however considerably higher than last year. In 2013 the collected volume lagged 1,044 tonnes behind the budget. The variation compared to 2012 is basically caused by higher average proceeds per kilo, namely € 0.52 in 2013 (€ 0.48 in 2012). When determining the amount Net available for objective per kilo the addition to the continuity reserve is not taken into account. For 2013 this implies that € 0.12 per kilo can be paid out. In 2012 this was € 0.11 per kilo (reference is also made to page 127). Donated clothing In 2013 approximately 224k of donated clothing was realised. In 2012 this was 264k. Salaries / national insurance contributions / pensions The item salaries / national insurance contributions and pensions increased slightly compared to last year. Despite a decrease of the number of FTE from 21.7 to 19.9 (including trainees). In 2012 no less than 83k was passed on to SBOS and T4T projects. In addition this can be attributed to an increase in pension costs (46k) and the payment of severance. Municipal collection fee The fact that ever more often municipalities impose a fee to collect is a trend that is translated in the increase compared to 2012 (324k). This increase includes the donations that were paid to the Swedish Red Cross (108k in 2013; in 2012 nil). Logistics third parties - carriers The costs for logistics third parties (carriers) are lower than budgeted and higher than last year. The decrease of the costs compared to the budget is explained by the lower volume of collected clothing (1,044 tonnes less than budgeted). Logistics third parties - other The costs for logistics third parties - other are much higher than budgeted. This regards Other transport and Logistical costs that were included under Logistics third parties - carriers in the 2013 budget. Depreciations The depreciations decreased compared to last year and are higher than budgeted. Most important reason for this overstepping is an incorrect estimate of this item for the 2013 budget. Maintenance costs containers The maintenance costs containers are lower than budgeted and lower than in 2012. The decrease compared to 2012 is basically caused by reclassifications of costs under logistics third parties - other. Car expenses The car expenses increased compared to last year. In 2013 one car was purchased.

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EXPLANATORY NOTES PROFIT AND LOSS ACCOUNT (CONTINUED) Advertising and publicity costs The costs are lower than last year and lower than budgeted. This is also caused by the adjustment of the policy implemented in 2012 and the thereto pertaining budget. Advisory fees The advisory fees are considerably higher than last year. In 2013 advice of third parties was frequently relied on. These costs basically regard lawyerâ&#x20AC;&#x2122;s fees, support and advice by accountants and tax advisers and notarial expenses. Other general costs The general costs increased considerably compared to last year and are considerably lower than budgeted (118k). The variation with 2012 is caused by the fact that in 2012 due to a release of the reserves approximately 80k inured to the benefit of the result. In 2013 the release was approximately 18k. The reservations included in the budget for start-up costs abroad and bad debts could be released. Innovation projects This item includes the costs for innovation projects, e.g. T4T, Textiles4Life and in addition research regarding the possibilities for the non-wearable part of the collected textile. At the end of 2012 the final settlement of the EU subsidy regarding the T4T project was received. A reservation was included for the further scaling-up of the automated sorting machine. A part thereof was used in 2013. The remainder will be used in 2014. In 2013 a salary cost subsidy was received for the innovation projects that KICI carries out. This regarded an S&O salary cost subsidy, almost 32k. Result participations This regards the negative result over 2013 of KICI BELGIUM BVBA (164k), in addition KICI created a provision for the current account receivable on MVOBouw B.V. (5k).

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2014 BUDGET AND 2015-2017 MULTIANNUAL ESTIMATE actual 2013

budget 2014

estimate 2015

estimate 2016

estimate 2017

6,011 15 (1,493) (4,053) (380)

6,204 36 (1,206) (4,525) (508)

7,033 42 (1,132) (5,419) (523)

7,316 48 (968) (5,857) (539)

7,611 54 (714) (6,396) (555)

Surplus before taxes

100

Available for objective * payments made to contracting parties * earmarked projects * other payments to charities ** * donated clothing * implementations costs objective

125 707 213 224 224

135 398 412 11 251

135 367 361 11 258

135 339 217 11 266

135 313 (19) 11 274

1,493

1,206

1,132

968

714

(x € 1,000) Fundraising Result sale used goods * net revenue * received donations * available for objective * costs own fundraising * management and administration costs

Total available for objective *

*) Alle inzamelvergoedingen, ook indien uitgekeerd aan ANBI begunstigden, worden als kosten geregistreerd. **) De naar verwachting jaarlijks stijgende inzamelvergoedingen zal uiteindelijk de vrije ruimte volledig doen verdampen. In 2017 zelfs negatief.

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2014 BUDGET AND 2015-2017 MULTIANNUAL ESTIMATE (CONTINUED) (x € 1,000) Costs own fundraising Salaries / national insurance contributions Pension costs Other employee expenses Collection fees Logistics third parties - carriers Logistics third parties - other Depreciations Maintenance costs containers Car expenses Accommodation costs Office expenses Taxes and duties Advertising and publicity costs Advisory fees Other general costs Projects Interest income Bank charges Incidental income Result participation / write-off receivables participation

actual 2013

budget 2014

estimate 2015

estimate 2016

estimate 2017

625 152 107 537 1,362 34 181 145 49 65 102 45 115 164 186 33 (22) 4 169

491 191 126 635 1,327 31 167 160 52 55 112 56 153 151 249 95 (5) 60

501 195 139 1,085 1,637 32 191 165 54 57 116 58 157 156 251 (15) (5) 30

511 199 142 1,383 1,745 33 162 170 55 59 119 59 162 160 253 (3) (5) 30

521 203 145 1,684 1,845 34 107 175 57 60 123 61 167 165 255 139 (5) 30

4,053

4,107

4,802

5,234

5,766

*) All collection fees, also if paid to PBO beneficiaries, are recorded as costs. **) The collection fees are expected to increase annually and will ultimately cancel out the free room entirely. In 2017 even negative.

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(x â&#x201A;ŹÂ 1,000) Management and administration costs Supervisory board Board and management General secretariat Finance, planning and control ICT Accommodation and facilities Human resources Employee expenses (direct and indirect costs and hiring costs) - Administration costs, including human resources - Accountant costs Legal expenses Communications Donors etc. Project administrations

actual 2013

budget 2014

estimate 2015

estimate 2016

estimate 2017

15 124 71 78 16 21 -

18 144 133 102 23 23 -

19 149 137 105 24 23 -

19 153 141 109 25 24 -

20 158 145 112 25 25 -

20 5 10 -

35 5 10 -

36 5 10 -

37 5 11 -

38 5 11 -

380

508

523

539

555

135

136

137

Colophon Text Board and employees of the Foundation KICI Final editing H.B. Markowski, General Manager Photography With cooperation of ACT! Kenya, Centre Simama, the Fund for Disabled Sports (photographer: Mathilde Dusol), DJ100, DressforSucces Spijkenisse, Municipality of Leiden, Marlous Pelser, the Dutch Red Cross, Jantje Beton (photographer: Michiel Wijnbergh), Orange Babies, Foundation De Koppel, War Child (photographer: Geert Snoeijer). Concept, design and realisation Zelv, Eindhoven Foundation KICI Clothing Collection Charities (KICI) is registered in the trade register of the Chamber of Commerce under number 41152499.

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Stichting Kledinginzameling Charitatieve Instellingen â&#x20AC;&#x201C; Foundation Clothing Collection Charities (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 Quality Mark is awarded to fundraising organisations that collect money for charity in a responsible manner. The quality mark offers you a guarantee that your money or goods will end up at the right place. In 2001 KICI was the first clothing collector in the Netherlands to be awarded the CBF Quality Mark.