Office Depot

Business Highlights Europe and the Middle-East
In 2010 Office Depot signs an agreement with Finnish Retailer Bruce Campbell Ltd Oy and obtains full ownership of AGE, a Swedish office supply company that is among the largest in the region. Mid-year the Company announces its intend to sell and license back of Office Depot Israel operations. At the same time it opens the second Alshaya store in Dubai and introduces B2B businesses in Kuwait and Dubai. The Company opens three new stores in France and announces its partnership with Casio in France to sell the Revolution video projector. In the Czech Republic Office Depot launched a new e-shop at www.officedepot.cz for entrepreneurs and small and medium-sized businesses (SMB). In Q4 the Office Depot concludes a partnership with Xerox to offer Managed Print Services throughout Germany. The partnership will be successfully expanded to other countries from Germany. The UK launched new radio ads to promote Viking as a destination for ink and toner supplies.

Green and Sustainability
In the UK Green Cargo Cycles were brought to live in March. Seven environmental friendly bikes in the central London area deliver packages to customers. In addition, a new battery recycling program in the UK/Ireland region is being introduced. The region receives the Gold Green Apple Award in recognition. Office Depot supported 3FM Serious Request Radio in The Netherlands in December. Together with Radio 3FM and the Dutch Red Cross several activities were organized to raise as much money as possible for the silent victims of HIV and aids. Office Depot supported them with a total amount of € 220.000. In Czech Republic and Slovakia the Company supported the “Trees for Life” program. Office Depot UK sponsored the “Best in Schools” award and launched a “Free Football for \Schools” campaign. The regional warehouse in Senlis, France was the first to obtain the important standard for health and safety compliance.

Awards and Recognitions
Office Depot was named a certified supplier by AREVA, a leader in nuclear energy. Dun & Bradstreet accredited Office Depot BV, Office Depot Europe BV and Office Depot International BV for their consistent D&B Rating 1 in July. The Company won the Global Innovation Award for Logistics School of Excellence, achieved Excellence through the People Award in Ireland and received a Royal Warrant identifying Office Depot as an official supplier to the Royal Household. Two Awards and a High Commendation were granted at the National Sales Awards as well as two BOSS awards in the environmental and technology categories of UK/Ireland. RWE, a leading supplier of energy in Europe, acknowledged Office Depot as its ‘Best Global Quality’ supplier during the RWE Supplier Day in November.

In 2008 Office Depot and Reliance Retail Limited entered into a joint venture to provide office products and services to business customers in India. It marks the entry of Office Depot into India, one of the top 15 office product markets in the world. To accelerate this rollout of our joint venture, Office Depot and Reliance also announced the acquisition of eOfficePlanet.
The same year Office Depot and bigboXX.com entered into a strategic alliance to provide office products and services to corporate customers in Hong Kong. Through this alliance, bigboXX.com will become Office Depot's dedicated partner in Hong Kong, enabling clients to use the Office Depot international network for their multi-country supply needs. Also in 2008 Office Depot and Netbizz Office Supplies entered into a strategic alliance to provide office products and services to corporate customers in Singapore.
During the summer of 2008 Office Depot acquired majority interest in AGE, a Swedish office supply company that is among the largest in the region. Office Depot and AGE have been strategic alliance partners since 2004. This marks the entry of the Office Depot brand in the Nordic market, adding 13 retail locations and a contract business to the Company’s global footprint. AGE was founded in 1947 and has steadily grown to become the top office supply company in the Stockholm region as well a leader in the small and medium business segment throughout Sweden.

At the end of 2007, the International Division operated, through wholly-owned or majority-owned entities, with a large number of retail stores in France, Japan, Hungary, Israel and South Korea. In addition, we participate under licensing and merchandize arrangements in almost 100 stores in South Korea and Thailand.

During 2006, we acquired a controlling interest in Best Office in South Korea and a majority stake in AsiaEC, one of the largest suppliers of office products and services in China.
Also in 2006, we increased our ownership interest to a majority stake in Office Depot Israel and acquired Papirius, one of the largest business-to-business suppliers of office products and services in Eastern Europe.

We further expanded our contract start-up business in 2003 with the acquisition of Guilbert, S.A. Guilbert operations and customers have been fully integrated into the Office Depot operations since the end of 2006. We are continuously assessing opportunities to expand our geographic footprint around the globe.

In 2000, we launched the Office Depot contract channel in the UK and subsequently expanded the channel to four additional countries.

The merger with Viking Office Products, a leading direct marketer of office products in Europe and Australia, took place in 1998. As from then the Company's International Division operates under both the Office Depot and Viking brand names. By end of year, the Company owned and operated stores in France, Colombia, Hungary, Israel, Japan, Mexico, Poland and Thailand through joint venture or international licensing agreements. Under the Viking Office Products brand, the Company has direct mail and delivery operations in Australia, Austria, Belgium, France, Germany, Ireland, Italy, Luxembourg, The Netherlands and the United Kingdom.

Since 1994, we have participated in a joint venture in Mexico. In recent years, this venture, Office Depot de Mexico, has grown in size and scope and now includes a large number of retail locations in Mexico, Costa Rica, El Salvador, Guatemala, Honduras, and Panama, as well as call centers and distribution centers to support the delivery business in certain areas. We provide services to the venture through management consultation, product selection, product sourcing and information technology services. Including company-owned operations, joint ventures, licensing and franchise agreements, we sell office products through many hundreds of retail stores outside North America.

Office Depot founded in 1986, is one of the world's largest sellers of office products
and an industry leader in every distribution channel, including stores, direct mail, contract delivery, the Internet and business-to-business electronic commerce. Office Depot has three business units: North American Retail Division, North American Business Solutions Division and International Division. Sales go through multiple channels, consisting of office supply stores, a contract sales force, internet sites, direct marketing catalogues and call centers, all supported by our network of cross docks, warehouses and delivery operations.