1、 ANNUAL REPORT|For the 52-Week Period Ended March 31,2012As the storychanges,a new chapterunfolds.The Indigo MissionTo provide our customers with the most inspiring retail and digital environments in the world for books and life-enriching products and experiences.Indigo operates under the following
2、banners:IndigoBooks&Music,Chapters,The Worlds Biggest Bookstore,Coles,SmithBooks,Indigospirit,The Book Company,and chapters.indigo.ca.The Company employs approximately 6,500 people across the country.!ndigo EnrichYour Life,Chapters,!ndigo,Coles and indigo.ca are trade marks of Indigo Books&Music Inc
3、.Table of Contents2.Report of the CEO5.Managements Responsibility for Financial Reporting6.Managements Discussion and Analysis25.Independent Auditors Report26.Consolidated Financial Statements and Notes66.Corporate Governance Policies67.Executive Management and Board of Directors68.FiveYear Summary
4、of Financial Information69.Investor Information70.Transforming Lives One Book at a Time2Report of the CEOReport of the CEODear Shareholder,2011 was a year filled with both significant accomplishment and significant challenge.Ours is an industryundergoing massive transformation and by extension so ar
5、e we.When I wrote to you last I shared with you that we were focused on two major initiatives growing Kobo andreshaping our core retail business to thrive in the age of eReading.The following represents a summary of our progress in both areas.KoboIn January 2011,Kobo had approximately two million re
6、aders in over 100 countries.Over the course of thepast year we grew our market to seven million readers.In June 2011,we successfully introduced our third generation eReader,the Kobo Touch which was subsequently rated by the editors of Wired Magazine as thebest eReader in the world.Late in 2011,Indig