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www.nowaco.com

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NOWACO Group DKK million

NOWACO Group EUR million

2013 2014 2015 2016 2015 2016

Income statement

Revenue 2,176.5 2,477.1 2,935.0 2,738.3 393.5 367.8

Gross profit 111.3 125.7 153.2 151.5 20.5 20.3

Earnings before depr. and amortisation (EBITDA) 41.6 43.6 46.2 50.9 6.2 6.8

Depreciation and amortisation -0.6 -0.5 -0.6 -1.4 -0.1 -0.2

Earnings before interest and tax (EBIT) 41.0 43.1 45.6 49.5 6.1 6.6

Financial items, net 4.8 5.9 9.9 6.7 1.3 0.9

Earnings on ordinary activities before tax (EBT) 45.7 49.0 55.4 56.2 7.4 7.6

Profit for the year 34.4 37.0 43.0 43.8 5.8 5.9

Balance sheet

Non-current assets 52.9 41.7 62.2 61.6 8.3 8.3

Current assets 383.3 613.9 586.3 511.1 78.6 68.8

Total assets 436.2 655.6 648.5 572.7 86.9 77.1

Share capital 20.0 20.0 20.0 20.0 2.7 2.7

Retained earnings and proposed dividend 138.6 160.0 188.3 213.4 25.2 28.7

Total shareholders’ equity 158.6 180.0 208.3 233.4 27.9 31.4

Provisions - - - 0.8 - 0.1

Liabilities other than provisions 277.6 475.6 440.2 338.5 59.0 45.6

Total shareholders’ equity and liabilities 436.2 655.6 648.5 572.7 86.9 77.1

Cash flow statement

Cash flow, operating activities 36.2 -115.8 88.6 143.5 11.9 19.3

Cash flow, investing activities -1.2 -0.9 -3.0 -1.5 -0.4 -0.2

Free cash flow 35.0 -116.7 85.6 142.0 11.5 19.1

Cash flow, financing activities -15.0 -15.0 -15.0 -15.0 -2.0 -2.0

Total net cash flow 20.0 -131.7 70.6 127.0 9.5 17.1

Average number of employees 133 140 149 157 149 157

Key ratios (%)

Gross margin 5.1 5.1 5.2 5.5 5.2 5.5

EBIT margin 1.9 1.7 1.6 1.8 1.6 1.8

Net margin 1.6 1.5 1.5 1.6 1.5 1.6

Effective tax rate 24.7 24.5 22.5 22.1 22.5 22.1

Return on invested capital (ROIC) 9.3 7.9 7.1 8.5 7.1 8.5

Return on equity 23.1 20.5 22.1 19.8 22.1 19.8

Equity ratio 36.4 27.5 32.1 40.8 32.1 40.8

Financial highlights and key ratios

Earnings before tax DKK 56.2 million

Revenue DKK 2,738.3

million

Gross profit DKK 151.5

million

Equity DKK 233.4

million

Gross margin

5.5%

5

The 2016 financial year was characterized by a high level of activity and by very unstable markets. Compared to our 2015 record-high revenue, 2016 shows a decrease in revenue of 6.7%. This decrease is attributable to falling market prices in certain product categories and the changed composition of NOWACO’s product mix.

Our new foreign offices and business areas continued their positive development in 2016, thus making a significant contribution to the Group’s strong financial performance.

The year’s operations and profit developmentThe gross profit amounted to DKK 151.5 million in 2016, equal to a decrease of DKK 1.7 million, or 1.1%, compared to 2015. In 2016 the Group realized a gross profit margin of 5.5%, a significant in-crease on 2015, and generated a pre-tax profit of DKK 56.2 million, up DKK 0.8 million on 2015. The Supervisory Board considers the profit performance very satisfactory. Balance sheetThe balance sheet total of the NOWACO A/S Group amounted to DKK 572.7 million at 31 December 2016 against DKK 648.5 million at 31 December 2015.

Equity amounted to DKK 233.4 million at 31 December 2016 relative to DKK 208.3 million at 31 De-cember 2015. The Group’s solvency ratio was at a record-high level of 40.8% at 31 December 2016.

Outlook for 2017We faced many challenges on the global markets during 2016 and expect 2017 to be just as chal-lenging. Management foresees great potential in new markets and aims to build on our strong busi-ness relations with customers and suppliers and the Group’s robust capital position. Thus, satisfac-tory growth is expected on most markets in 2017. Against this background, activities and profits are anticipated to surpass the 2016 level in 2017.

Management’s review 2016

The Group’s equity ratio stood at a record high 40.8% at 31 December 2016.

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Global market - strong partner

The financial strength of NOWACO ensure a full commitment and trustworthy

behavior towards any business partner.

2016 was characterized by market turbulence, regional crises, military conflicts and major chal-lenges with veterinarian regulation and import bans. Despite these market conditions NOWACO managed to keep the business activities at a high level and even to expand within important busi-ness areas.

In 2016 we opened five new offices around the world. We strongly believe that our global expansion over the last years has provided us with a platform for maintaining NOWACO’s business activities at a high level, at the same time as being a driver for future growth.

The global volatility in recent years has had a huge impact on sales in the individual markets. In our experience changes in local conditions influence sales dramatically. For that reason NOWACO will continue the strategy of having a local presence with experienced people who have the detailed knowledge required to manoeuvre successfully under these market conditions.

NOWACO delivers value for money to our numerous business relations and business partners when such dramatic changes or difficult situations occur in the market. NOWACO is active in around 120 countries, and this comprehensive knowledge gives us a unique advantage in handling the global challenges that influence the food business.

As a result of NOWACO’s 45-years history, we have furthermore developed strong in-house exper-tise within shipping, logistics, document handling and specific veterinarian requirements. And our local product specialists around the world can inspect the goods and ensure compliance with customer demands.

The financial strength of NOWACO ensures that we are always fully committed to the job and that our business partners can rely on us.

For all the above reasons we are confident that NOWACO is a ”safe bet” when choosing a partner in the frozen food stuff industry. There are no indications that the global uncertainty will be reduced in the years to come; on the contrary we expect that the rapidly arising regional crises and market changes will lead to further growth for NOWACO in the years ahead.

98

NOWACO Group DKK ‘000

NOWACO GroupEUR ‘000

2016 2015 2016 2015

Revenue 2,738,310 2,935,048 367,785 393,512

Cost of sales -2,586,811 -2,781,883 -347,437 -372,977

Gross profit 151,499 153,165 20,348 20,535

Other external expenses -44,459 -51,644 -5,971 -6,924

Staff expenses -56,195 -55,315 -7,548 -7,416

Earnings before depreciation and amortisation (EBITDA) 50,845 46,206 6,829 6,195

Depreciation and amortisation -1.392 -621 -187 -83

Earnings before interest and tax (EBIT) 49,453 45,585 6,642 6,112

Financial income 11,021 15,299 1,480 2,051

Financial expenses -4,287 -5,441 -576 -729

Earnings on ordinary activities before tax (EBT) 56,187 55,443 7,547 7,434

Tax on earnings on ordinary activities -12,403 -12,480 -1,666 -1,673

Profit for the year 43,784 42,963 5,881 5,761

Income statement - for the year ended 31 December 2016

Jens NørgaardState Authorised Public Accountant

Statement by the Supervisory Board and Executive Board on the Annual Report

The Supervisory Board and Exe-cutive Board have today conside-red and adopted the Annual Report of NOWACO A/S for 2016.The Annual Report has been

Aalborg, 22 March 2017Executive Board

Preben K. NielsenManaging Director / CEO

Katja Nowak NielsenDirector / COO

Peter Fisker OlesenDirector / COO

Tom Leth JensenDirector / COO

Supervisory Board

Per SøndergaardChairman

Juttine Nielsen Peter TerkelsenJens MøllerDeputy Chairman

Independent auditors’ report

The accompanying summary annual accounts, which comprise the summary balance sheet as at 31 December 2016, the summary profit and loss account, the sum-mary cash flow statement for the year then ended, are derived from the audited annual accounts of NOWACO A/S for the year ended 31 December 2016. We expressed an unmodified audit opinion on those annual accounts in our re-port dated 22 March 2017. Those annual accounts, and the summa-ry annual accounts, do not reflect

Per LaursenState Authorised Public Accountant

Aalborg, 22 March 2017Redmark CVR-No.: 29442789

prepared in compliance with the Danish Financial Statements Act. We consider the accounting poli-cies applied to be appropriate, and, in our opinion, the Annual Report gives a true and fair view of the Group’s and the Compa-ny’s financial position at 31 De-

cember 2016, and of the results of the Group’s and the Compa-ny’s operations and consolidated cash flows for the financial year 1 January - 31 December 2016.We recommend that the Annual Report be adopted at the Annual General Meeting.

the effects of events that occurred subsequent to the date of our report on those annual accounts. The summary annual accounts do not contain all the disclosures required by the Danish Financial Statements Act. Reading the sum-mary annual accounts, therefore, is not a substitute for reading the audited annual accounts of NOWACO A/S. Management’s Responsibility for

the Summary Annual Accounts Management is responsible for

the preparation of a summary of the audited annual accounts in ac-cordance with the Danish Finan-cial Statements Act. Auditor’s Responsibility

Our responsibility is to express an opinion on the summary an-nual accounts based on our pro-cedures, which were conducted in accordance with International Standard on Auditing (ISA) 810, “Engagements to Report on Sum-mary Financial Statements”. Opinion

In our opinion, the summary annual accounts derived from the audited annual accounts of NOWACO A/S for the year ended 31 December 2016 are consistent, in all material respects, with those annual accounts, in accor-dance with the Danish Financial Statements Act.

Katja Nowak Nielsen

Peter H. TuureFinancial Director / CFO

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Balance sheetBalance sheet

NOWACO Group DKK ‘000

NOWACO GroupEUR ‘000

31/12/2016 31/12/2015 31/12/2016 31/12/2015

Assets

Non-current assets

Intangible assets

Software 2,925 1,911 393 256

2,925 1,911 393 256

Property, plant and equipment

Other fixtures and fittings, tools and equipment 2,286 3,234 307 433

2,286 3,234 307 433

Financial assets

Other receivables 56,422 57,031 7,589 7,642

56,422 57,031 7,589 7,642

Total non-current assets 61,633 62,176 8,290 8,331

Current assets

Inventories 75,396 84,903 10,142 11,377

Receivables

Trade receivables 392,057 468,285 52,736 62,752

Other receivables 4,556 2,364 613 317

Prepayments 1,215 1,947 163 261

Deferred tax 744 81 100 11

Corporate income tax 2,711 4,613 365 618

401,283 477,290 53,977 63,959

Cash and cash equivalents 34,463 24,155 4,636 3,237

Total current assets 511,142 586,348 68,754 78,573

Total assets 572,775 648,524 77,044 86,904

NOWACO Group DKK ‘000

NOWACO GroupEUR ‘000

31/12/2016 31/12/2015 31/12/2016 31/12/2015

Shareholders’ equity and liabilities

Shareholders’ equity

Share capital 20,000 20,000 2,690 2,680

Retained earnings 198,440 173,314 26,692 23,225

Proposed dividend for the financial year 15,000 15,000 2,018 2,010

Total shareholders’ equity 233,440 208,314 31,400 27,915

Provisions

Provision for deferred tax 810 0 109 0

Total provisions 810 0 109 0

Liabilities other than provisions

Short-term liabilities

Credit institutions 95,287 212,427 12,817 28,465

Trade payables 155,806 117,225 20,957 15,709

Debts to related companies 50,500 80,000 6,793 10,720

Prepayments from customers 24,362 15,171 3,277 2,033

Corporate income tax 109 326 15 44

Other payables 12,461 15,061 1,676 2,018

Total liabilities other than provisions 338,525 440,210 45,535 58,989

Total shareholders’ equity and liabilities 572,775 648,524 77,044 86,904

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Cash flow statement - for the year ended 31 December 2016

NOWACO Group DKK ‘000

NOWACO GroupEUR ‘000

2016 2015 2016 2015

Revenue 2,738,310 2,935,048 367,785 393,512

Cost of operating activities -2,687,465 -2,888,842 -360,956 -387,317

Cash flow, operating activities before change in working capital 50,845 46,206 6,829 6,195

Change in inventories 10,057 26,204 1,351 3,531

Change in receivables 75,359 8,952 10,122 1,218

Change in trade payables and other payables, etc. 14,766 13,640 1,983 1,848

Cash flow, operating activities 151,027 95,002 20,285 12,792

Net financial items 6,734 9,858 904 1,322

Other financing, exchange-rate adjustment taken to shareholders’ equity, etc.

-4,972 618 -668 83

Corporate income tax paid -9,290 -16,887 -1,248 -2,264

Net cash flow, operating activities 143,499 88,591 19,274 11,933

Acquisition of intangible assets -1,787 -1,787 -240 -240

Acquisition of property, plant and equipment -538 -1,952 -72 -262

Sale of property, plant and equipment 870 708 117 95

Cash flow, investing activities -1,455 -3,031 -195 -407

Free cash flow 142,044 85,560 19,079 11,526

Shareholders:

Dividends paid -15,000 -15,000 -2,015 -2,011

Cash flow, financing activities -15,000 -15,000 -2,015 -2,011

Net cash flow, from operating, investing and financing activities

127,044 70,560 17,063 9,515

Cash and cash equivalents and bank loans at 1 January -188,272 -258,832 -25,228 -34,743

Unrealized currency adjustments 404 0 -16 0

Cash and cash equivalents and bank loans at 31 December 2016

-60,824 -188,272 -8,181 -25,228

Breakdown of cash and cash equivalents and bank loans at 31 December:

Cash and cash, equivalents 34,463 24,155 4,636 3,237

Bank loans -95,287 -212,427 -12,817 -28,465

Cash and cash equivalents and bank loans at 31 December 2016

-60,824 -188,272 -8,181 -25,228

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NOWACO A/SPrinsensgade 15 ∙ P.O. Box 40 ∙ DK-9100 Aalborg ∙ DenmarkPhone: +45 9630 8080 ∙ Fax: +45 9630 8090 ∙ nowaco@nowaco.com ∙ www.nowaco.comLinkedin: www.linkedin.com/company/nowaco-as

NOWACO is represented at several of the world’s leading food exhibi-tions throughout the year. Here we meet our customers and establish new business relations with some of the world’s suppliers of food and foodstuffs.

In 2017 we have ex-panded our exhibition program further. Please see here our exhibition programme for 2017.

Brussels, Belgium

25 - 27 April 2017

Guadalajara, Mexico

7 - 9 March 2017

Ho Chi Minh City, Vietnam

25 - 27 April 2017

Milano, Italy

8 - 11 May 2017

Seoul, Korea

16 - 19 May 2017

Dubai, UAE

26 February - 2 March 2017

Cologne, Germany

7 - 11 October 2017

Shanghai, China

17 - 19 May 2017

Jakarta, Indonesia

5 - 8 April 2017

NOWACO world mapNOWACO is part of the TiKa Holding Group

TiKa Holding A/S holds a 92.0% stake in NOWACO A/S. The remaining shareholders are members of the management group.

In addition to investing in the food business, TiKa Holding A/S invests in property, property development, portfolio business and securities.

The total equity for TiKa Holding A/S is more than DKK 800 million.

Parent companyTiKa Holding A/SAalborg, Denmark

Trading

Property Property development

Portfolio business

NOWACO A/S, Aalborg - 92.0% ownership

Other investments

- Prinsensgade 11 A/S,

Aalborg - 50%

- Prinsensgade Aalborg A/S,

Aalborg - 50%

- Athene Group A/S,

Aalborg - 50%

- AG-1 A/S,

Aalborg - 28%

- Athene Schwandorf Imm.

Gmbh - 40%

- Mellem Broerne I/S,

Nr. Sundby - 50%

- Lille Manhattan I/S,

Aalborg - 50%

- Discovery Rejsebureau A/S,

Hellerup - 10%

- LD Equity 2 and 3 K/S

- Axcel lV

- Systemteknik A/S - 30%

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