DO & CO AG — Interim / Quarterly Report 2016

Nov 17, 2016

DO & CO Aktiengesellschaft

First Half Year of 2016/2017

CONTENTS

	Key figures of the DO & CO Group in accordance with IFRS 1
	Group Management Report for the 1st Half Year of 2016/2017 2
1.	Business development 2
1.1.	Airline Catering 2
1.2.	International Event Catering 2
1.3.	Restaurants, Lounges & Hotel 3
2.	Outlook 3
3.	Consolidated statement of financial position 4
4.	Employees 4
5.	Opportunity and Risk Management 4
6.	DO & CO shares / investor relations 5
	Interim Consolidated Financial Statements for the 1st Half Year of 2016/2017 of
	DO & CO Aktiengesellschaft in accordance with IFRS (condensed) 9
1.	Consolidated statement of financial position as of 30 September 2016 10
2.	Consolidated income statement for the 1st Half Year of 2016/2017 11
3.	Consolidated statement of other comprehensive income 12
4.	Consolidated statement of cash flows 13
5.	Consolidated statement of changes in equity 14
	Notes to the consolidated financial statements for the 1st Half Year of 2016/2017
	(condensed) 15
1.	General information 15
1.1.	Basis 15
1.2.	Accounting and valuation methods 15
1.3.	Retrospective adjustments 16
1.4.	Scope of consolidation 16
1.5.	Seasonality 16
2.	Notes to the consolidated statement of financial position 17
2.1.	Property, plant and equipment 17
2.2.	Shareholders' equity 17
2.3.	Other current liabilities 17
3.	Comments on the consolidated income statement 18
3.1.	Amortisation/depreciation and impairments 18
3.2.	Income tax 18
3.3.	Earnings per share 18
4.	Additional disclosures 19
4.1.	Additional disclosures on financial instruments 19
4.2.	Segment reporting 20
4.3. 4.4.	Significant events after the reporting period (subsequent report) 21 Related party disclosures 21
	Glossary 22
	Statements by all Legal Representatives Pursuant to Section 87 (1) 3 of the Austrian
	Stock Exchange Act 23
	Report on the Review of the Condensed Interim Consolidated Financial Statements
	24

Key figures of the DO & CO Group in accordance with IFRS

The calculations of the key figures are explained in the Glossary of Key Figures.

		st Half Year 1 2016/2017	1st Half Year 2015/2016 1	2nd Quarter 2016/2017	2nd Quarter 2015/2016 1
Sales	m€	504.67	474.94	250.16	245.51
EBITDA	m€	50.37	48.28	27.43	27.14
EBITDA margin	%	10.0%	10.2%	11.0%	11.1%
EBIT	m€	32.76	32.16	18.32	18.99
EBIT margin	%	6.5%	6.8%	7.3%	7.7%
Profit before income tax	m€	30.57	30.62	16.82	16.90
Net result	m€	15.16	18.92	8.40	12.27
Net result margin	%	3.0%	4.0%	3.4%	5.0%
Employees		10,100	9,890	10,107	10,248
Equity 2	m€	258.87	240.88	258.87	240.88
Equity ratio 2	%	41.5%	39.6%	41.5%	39.6%
Net debt (net financial liabilities)	m€	-0.81	102.16	-0.81	102.16
Net debt to EBITDA		-0.01	1.15	-0.01	1.15
Net gearing	%	-0.3%	42.4%	-0.3%	42.4%
Working capital	m€	-2.40	6.59	-2.40	6.80
Cash flow from operating activities	m€	28.37	40.78	-4.95	22.10
Cash flow from investing ac tivities	m€	-34.60	-28.45	-11.77	-14.19
Free cash flow	m€	-6.23	12.33	-16.86	7.92
ROS	%	6.1%	6.4%	6.7%	6.9%

1 … 1st Half Year 2015/2016 adjusted (see Section 1.3. in the Notes)

2 … C alculation method changed over the previous year (see Glossary)

Key figures per share

		st Half Year 1	1st Half Year	2nd Quarter	2nd Quarter
		2016/2017	2015/2016 1	2016/2017	2015/2016 1
EBITDA per share	€	5.17	4.95	2.81	2.79
EBIT per share	€	3.36	3.30	1.88	1.95
Earnings per share	€	1.56	1.94	0.86	1.26
Equity per share (book entry) 2	€	21.23	20.50	21.23	20.50
High 3	€	107.60	96.92	81.30	96.92
Low 3	€	62.51	64.03	62.51	71.80
Price at the end of the period 3	€	72.77	72.50	72.77	72.50
Number of shares at the end of the period	TPie	9,744	9,744	9,744	9,744
Market capitalization at the end of the period	m€	709.07	706.44	709.07	706.44

1 … 1st Half Year 2015/2016 adjusted (see Section 1.3. in the Notes)

2 … Adjusted by equity attributable to non-controlling interest; calculation method changed over the previous year

3 … Closing price

Group Management Report for the 1st Half Year of 2016/2017

1. Business development

1.1. Airline Catering

With its unique, innovative and competitive product portfolio, the Airline Catering division generates the largest share of the DO & CO Group's sales (65%).

On a global scale, the DO & CO gourmet kitchens in New York, Chicago, London, Istanbul, Frankfurt, Munich, Milan, Malta, Warsaw, Kiev, Seoul, Vienna and other locations in Austria, Germany, Turkey and Poland are setting new standards in the premium segment of the airline catering business.

DO & CO's customer portfolio includes a large number of airlines. Among these airlines are prestigious customers such as: Turkish Airlines, British Airways, Emirates, Etihad Airways, Qatar Airways, Cathay Pacific, Austrian Airlines, Singapore Airlines, Air France, South African Airways, LOT Polish Airlines, Oman Air, Royal Air Maroc, Korean Air, EVA Air, Egypt Air, Gulf Air, China Airlines, NIKI, Pegasus Airlines and Asiana Airlines.

Airline Catering		st Half Year 1				2	nd Quarter
	2016/2017	2015/2016 1	Change	Change in %		2016/2017 2015/2016 1	Change	Change in %
Sales m€	328.08	326.13	1.95	0.6%	169.49	175.08	-5.59	-3.2%
EBITDA m€	38.10	38.67	-0.57	-1.5%	22.30	22.41	-0.11	-0.5%
Depreciation/amortisation m€	-12.76	-10.30	-2.46	-23.9%	-6.74	-5.22	-1.51	-29.0%
Impairment m€	-0.42	0.00	-0.42		0.00	0.00	0.00
EBIT m€	24.92	28.37	-3.45	-12.2%	15.56	17.19	-1.63	-9.5%
EBITDA margin %	11.6%	11.9%			13.2%	12.8%
EBIT margin %	7.6%	8.7%			9.2%	9.8%
Share of Group Sales %	65.0%	68.7%			67.8%	71.3%

1… 1st Half Year 2015/2016 adjusted (see Section 1.3. in the Notes)

Most locations reported an increase in sales, particularly those in the US and Germany. Austria, Italy and Poland remained stable. Business declined in Ukraine, mostly due to the loss of the most important client, which operates its own catering.

Turkey, one of the key markets of DO & CO, managed to grow by +4.4% in the country's currency (Turkish lira), which, however, due to the depreciation of the Turkish lira vis-à-vis the euro is reflected as a decrease in sales amounting to -2.7% in the DO & CO Group's income statement. Similarly, the British pound depreciated vis-à-vis the reporting currency, causing a decrease in sales of -4.8% while in local currency a sales increase of +8.2% is reported. The major part of the costs occurs in local currency; therefore the margins are not affected.

1.2. International Event Catering

International Event Catering			st Half Year 1			nd Quarter 2
		2016/2017	2015/2016	Change	Change in %	2016/2017	2015/2016	Change	Change in %
Sales	m€	92.95	65.10	27.85	42.8%	38.92	28.68	10.24	35.7%
EBITDA	m€	8.23	5.68	2.55	44.9%	2.91	2.63	0.29	10.9%
Depreciation/amortisation	m€	-2.65	-2.32	-0.34	-14.6%	-1.36	-1.20	-0.16	-13.3%
EBIT	m€	5.58	3.37	2.21	65.8%	1.55	1.43	0.13	8.9%
EBITDA margin	%	8.9%	8.7%			7.5%	9.2%
EBIT margin	%	6.0%	5.2%			4.0%	5.0%
Share of Group Sales	%	18.4%	13.7%			15.6%	11.7%

The substantial sales increase reported by this division was due to its activities during the European Football Championship UEFA EURO 2016. DO & CO, or specifically Hédiard Paris, operated as the hospitality production management company for one of the largest sports events ever to have taken place in Europe. At 51 games, DO & CO served its special culinary treats to over 110,000 VIP guests in nine cities and ten different stadiums.

During the second quarter of the current business year DO & CO acted as the culinary host for VIPs not only for the already described sports event but, i.a., also at:

• the Formula 1 grand prix races in Austria, the UK, Hungary, Germany, Belgium and Italy,
• the CHIO in Aachen,
• many football games at the Allianz Arena, the home of FC Bayern Munich and TSV 1860 Munich,
• activities at Munich's Olympic Park,
• the Beach Volleyball Grand Slam in Klagenfurt and Porec.

1.3. Restaurants, Lounges & Hotel

Restaurants, Lounges & Hotel		st Half Year 1			nd Quarter 2
	2016/2017	2015/2016	Change	Change in %	2016/2017	2015/2016	Change	Change in %
Sales m€	83.64	83.71	-0.07	-0.1%	41.74	41.75	-0.01	0.0%
EBITDA m€	4.04	3.93	0.11	2.8%	2.21	2.11	0.11	5.1%
Depreciation/amortisation m€	-1.76	-3.42	1.67	48.6%	-0.99	-1.65	0.66	40.2%
Impairment m€	-0.02	-0.08	0.06	76.0%	-0.02	-0.08	0.06	76.0%
EBIT m€	2.26	0.42	1.84	435.0%	1.21	0.37	0.83	225.1%
EBITDA margin %	4.8%	4.7%			5.3%	5.0%
EBIT margin %	2.7%	0.5%			2.9%	0.9%
Share of Group Sales %	16.6%	17.6%			16.7%	17.0%

The division generally reported managing a stable performance.

2. Outlook

In the first half of 2016/2017 business year, DO & CO, in spite of facing some difficult regional markets and negative effects from currency developments, was able to further increase both its sales and its earnings. It should be emphasised that the company's main focus is still on its sustainable business model with long-term positive margin developments.

Thanks to its highly diverse distribution channels, a widespread brand portfolio and activities in a large number of regions, DO & CO is in an excellent position to cope with a challenging market and continues to be confident of future growth prospects.

NEW LOCATIONS ARE SET UP IN LOS ANGELES AND PARIS

DO & CO continues on its course of expansion and will enter into further regions through two new gourmet kitchens in Los Angeles and Paris.

TURKEY

Regarding the engagement in Turkey, it should be noted that DO & CO has performed a comprehensive evaluation of its activities in Turkey and will continue these as planned. DO & CO is fully committed to its long-term projects in Turkey. Renewal of the contract with Turkish Airlines is currently being negotiated.

RETAIL & HENRY GOURMET SHOPS

In its retail business, at least eight new gourmet shops of the Henry brand will be opened in 2017; four of them in Vienna and four in London. A new addition will be a gourmet food delivery service starting next quarter.

AIRLINE LOUNGES

It is to be highlighted that DO & CO is scheduled to open its 30th airline lounge worldwide in Frankfurt on 1 December 2016.

NEW ACQUISITIONS

Same as in the previous quarters, DO & CO is evaluating potential targets for acquisition in various markets on an ongoing basis.

Overall, DO & CO's management is highly confident that it can continue its successful performance of the past years. A focus on innovation, superior product and service standards and excellently trained and committed staff provide the foundation for DO & CO to make the best possible use of all its growth potentials.

3. Consolidated statement of financial position

In the first half of the business year 2016/2017, current assets decreased by € 16.08m from € 332.69m to € 316.60m. This decrease is due to a decline in cash and cash equivalents.

The Group's equity amounts to € 258.87m as of 30 September 2016. The equity ratio thus is 41.5% as of 30 September 2016.

With the ending of the UEFA EURO 2016, the current provisions and liabilities report a decline by € 8.97m to € 183.92m in comparison with the reporting date 31 March 2016.

4. Employees

The average number of staff (full-time equivalent) in the first half of the business year 2016/2017 was 10,100 (PY: 9,890). This means an increase of 210 members of staff on the prior year, which is mainly due to an expansion of the business activities in Germany and Great Britain. Ukraine reports a reduction in the number of staff.

5. Opportunity and Risk Management

Key risks and risk management remained mainly unchanged in the first half of the business year 2016/2017. A detailed description is included in the Annual Financial Report of the business year 2015/2016. The material uncertainties affecting the results of the DO & CO Group in 2016 are still specific risks and developments in the airline industry which are mitigated by further diversification.

6. DO & CO shares / investor relations

Stock market overview

The result of the British Brexit referendum was the defining event in the first half of the business year 2016/2017 and led to increased uncertainty on the European stock markets.

The ATX rose from 2,270.38 points as of 31 March 2016 to 2,405.28 points on 30 September 2016 during the reporting period. This means an increase of 5.9%. The Istanbul Stock Exchange reported a negative development in the first half of the business year 2016/2017. The BIST 100, which is the Turkish leading index, fell from 83,268.04 to 76,488.38 points as of 30 September 2016 (-8.1%).

DO & CO share

After the share price had gained more than 50% on the Vienna Stock Exchange and 75% on the Istanbul Stock Exchange in the business year 2015/2016, DO & CO's share was subject to a decline in the first half of the business year 2016/2017.

On the Vienna Stock Exchange, DO & CO's share fell by 31.3% in the first half of the business year 2016/2017, reporting a closing rate of € 72.77 on 30 September 2016.

On the Istanbul Stock Exchange, DO & CO's share lost 28.4%, closing at TRY 241.90 on 30 September 2016.

Inclusion in the Austrian leading index ATX

As of 19 September 2016, DO & CO was included in the Austrian leading index ATX for the first time. The ATX is the most important Austrian share index and comprises the 20 most important listed Austrian companies, weighted by trading volume and free float capitalisation.

Trading volumes

The DO & CO share's trading volume has significantly increased on the prior year both in number of shares and measured in euros. The average daily trading volume of DO & CO shares on the Vienna Stock Exchange stood at € 1,300t in the first half of the business year 2016/2017. The average daily trading volume of DO & CO shares on the Istanbul Stock Exchange stood at € 745t in the first half of the business year 2016/2017. In consequence, the trading volume on the the Vienna Stock Exchange is above the trading volume on the Istanbul Stock Exchange. Taking the trading volumes of the two stock exchanges, they traded a daily average of € 2,045t or 26,165 shares.

	Vienna Stock Exchange		Istanbul Stock Exchange		Total
	st Half Year 1		1st Half Year		1st Half Year
	2016/2017	2015/2016	2016/2017	2015/2016	2016/2017	2015/2016
Volume in shares*	16,793	8,512	9,372	10,568	26,165	19,080
Turnover in €t*	1,300	668	745	844	2,045	1,512

*Daily average traded volume of the DO & CO shares

Dividend

The dividend of € 0.85 per dividend-bearing share approved at the 18th General Meeting of Shareholders for the business year 2015/2016, which took place on 21 July 2016, was paid out on 8 August 2016.

Share indices

		st Half Year 1	1st Half Year	2nd Quarter	2nd Quarter
		2016/2017	2015/2016	2016/2017	2015/2016
High 1	€	107.60	96.92	81.30	96.92
Low 1	€	62.51	64.03	62.51	71.80
Share price at the end of the period 1	€	72.77	72.50	72.77	72.50
Number of shares at the end of the period	TPie	9,744	9,744	9,744	9,744
Market capitalisation at the end of the period	m€	709.07	706.44	709.07	706.44

1 … Closing price

Shareholder structure of DO & CO Aktiengesellschaft

On 30 September 2016, 67.69% of the shares are in free float. The remaining share of 32.31% is held by the private foundation Attila Dogudan Privatstiftung. This figure includes a stake of 1.59% provided for management and staff participation.

Information on the DO & CO shares

ISIN Reuters Code Bloomberg Code Indices WKN Listed in	AT0000818802 DOCO.VI, DOCO.IS DOC AV, DOCO TI ATX, WBI, BIST 100 081880 Vienna, Istanbul
Currency	EUR, TRY

Financial calendar

16 February 2017 Results for the first three quarters of 2016/2017

Investor Relations

In the first half of the business year 2016/2017, the management of DO & CO Aktiengesellschaft held talks with numerous institutional investors and financial analysts. These talks took place in Austria and Turkey.

Analyses and reports involving DO & CO's share are currently published by ten international institutions:

• Kepler Cheuvreux
• Renaissance Capital
• Wood & Company
• Erste Bank
• HSBC
• Raiffeisen Centrobank
• İş Investment
• BGC Partners
• Ünlü & Co
• Garanti Securities

Analysts have an average price target of € 92.57 (status: 30 September 2016).

All published materials and information on DO & CO's share are posted under Investor Relations on the DO & CO website at www.doco.com.

For more information please contact:

Investor Relations Email: investor.relations@doco.com Interim Consolidated Financial Statements for the 1st Half Year of 2016/2017 of DO & CO Aktiengesellschaft in accordance with IFRS (condensed)

1. Consolidated statement of financial position as of 30 September 2016

	Assets in m€	30 Sep 2016	31 March 2016
Notes
	Intangible assets	62.28	66.30
2.1.	Property, plant and equipment	220.91	210.37
	Investment property	1.55	1.55
	Investments accounted for using the equity method	9.32	4.28
	Other non-current financial assets	2.83	3.26
	Income tax receivables	0.23	0.23
	Deferred tax assets	9.91	9.32
	Non-current assets	307.02	295.31
	Inventories	26.79	26.17
	Trade receivables	104.30	100.62
	Other current financial assets	12.31	10.10
	Income tax receivables	1.49	3.02
	Other current non- financial assets	17.71	20.87
	Cash and cash equivalents	154.01	171.91
	Current assets	316.60	332.69
	Total assets	623.62	628.00
	Shareholders' equity and liabilities in m€	30 Sep 2016	31 March 2016
Notes
	Nominal capital	19.49	19.49
	Capital reserves	70.51	70.51
	Retained earnings	131.99	112.03
	Other comprehensive income	-30.28	-25.87
	Special item from transactions with non-controlling	-0.03	-0.27
	interests
	Net result	15.16	28.25
	Equity attributable to the shareholders of DO & CO Aktiengesellschaft	206.83	204.13
	Non-controlling interests	52.04	50.24
2.2.	Shareholders´ equity	258.87	254.37
	Bond	148.62	148.47
	Other non-current financial liabilities	4.51	4.44
	Non-current provisions	22.13	22.44
	Deferred tax liabilities	5.58	5.38
	Non-current provisions and liabilities	180.83	180.74
	Current financial liabilities	36.68	33.29
	Trade payables	78.75	76.63
	Current provisions	44.42	40.81
	Income tax liabilities	7.58	9.18
2.3.	Other current liabilities	16.49	32.98
	Current provisions and liabilities	183.92	192.89
	Total shareholders' equity and liabilities	623.62	628.00

2. Consolidated income statement for the 1st Half Year of 2016/2017

Notes	in m€	st Half Year 1 2016/2017	1st Half Year 2015/2016 1	2nd Quarter 2016/2017	2nd Quarter 2015/2016 1
	Sales	504.67	474.94	250.16	245.51
	Other operating income	7.69	8.18	4.35	2.53
	Cost of materials	-219.41	-208.13	-106.61	-108.48
	Personnel expenses	-161.25	-154.20	-80.53	-77.80
	Other operating expenses	-79.62	-72.77	-38.84	-34.61
	Result of equity investments accounted	-1.71	0.27	-1.10	0.00
	for using the equity method
	EBITDA - Operating result before amortisation / depreciation	50.37	48.28	27.43	27.14
3.1.	Amortisation / depreciation and impairments	-17.61	-16.12	-9.10	-8.16
	EBIT - Operating result	32.76	32.16	18.32	18.99
	Financial income	1.17	2.70	0.57	0.66
	Financial expenses	-3.36	-4.23	-2.07	-2.75
	Financial result	-2.20	-1.54	-1.50	-2.09
	Profit before income tax	30.57	30.62	16.82	16.90
3.2.	Income tax	-8.83	-3.00	-5.37	-0.44
	Profit after income tax	21.74	27.62	11.45	16.46
	Thereof net profit attributable to non-controlling interests	-6.58	-8.70	-3.04	-4.19
	Thereof net profit attributable to shareholders of DO & CO Aktiengesellschaft (Net result)	15.16	18.92	8.40	12.27

		st Half Year 1 2016/2017	1st Half Year 2015/2016 1	2nd Quarter 2016/2017	2nd Quarter 2015/2016 1
	Net result in m€	15.16	18.92	8.40	12.27
	Number of shares at the end of the period (in Pie)	9,744,000	9,744,000	9,744,000	9,744,000
3.3.	Basic/diluted earnings per share (in €)	1.56	1.94	0.86	1.26

1… 1st Half Year 2015/2016 adjusted (see Section 1.3. in the Notes)

3. Consolidated statement of other comprehensive income

in m€	st Half Year 1 2016/2017	1st Half Year 2015/2016 1	2nd Quarter 2016/2017	2nd Quarter 2015/2016 1
Profit after income tax	21.74	27.62	11.45	16.46
Differences of currency translation	-6.97	-19.13	-6.94	-12.64
Income tax	-0.02	0.49	0.32	0.39
Total of items that will be reclassified subsequently to the income statement	-6.99	-18.64	-6.62	-12.25
Termination benefits and pension payments obligations	-0.08	-0.50	-0.08	-0.50
Income tax	0.02	0.10	0.02	0.10
Total of items that will not be reclassified subsequently to the income statement	-0.06	-0.40	-0.06	-0.40
Other comprehensive income after income tax	-7.05	-19.04	-6.68	-12.65
Total comprehensive income for the period	15.07	8.58	5.15	3.81
Thereof attributable to non-controlling interests	4.32	1.01	0.51	-1.19
Attributable to DO & CO Aktiengesellschaft (Total result)	10.75	7.57	4.64	5.00

1… 1st Half Year 2015/2016 adjusted (see Section 1.3. in the Notes)

4. Consolidated statement of cash flows

		st Half Year 1	1st Half Year
	in m€	2016/2017	2015/2016 1
	Profit before income tax	30.57	30.62
+	Depreciation / amortisation and impairments	17.61	16.12
-	Reversal of impairment loss	-0.01	-0.06
	-/+ Gains / losses from disposals of non-current assets	-0.01	-0.04
	+/- Gains / losses from associated companies measured at equity without cash effect	1.71	-0.25
	+/- Other non cash expense / income	-0.03	-1.13
	+/- Interests	2.24	1.83
	Gross cash flow	52.07	47.10
	-/+ Increase / decrease in inventories and other current assets	-3.17	-25.16
	+/- Increase / decrease in provisions	2.67	4.28
	+/- Increase / decrease in trade payables and other liabilities	-13.95	22.05
-	Income tax payments	-9.25	-7.49
	Cash flow from operating activities (net cash flow)	28.37	40.78
+	Income from disposals of property, plant and equipment	0.12	0.04
+	and intangible assets Payments received for the disposal of other financial assets	0.54	0.00
	Additions to property, plant and equipment and
-	investment property	-28.48	-29.65
-	Additions to intangible assets	-0.74	-0.15
-	Additions to associated companies measured at equity	-6.68	0.00
-	Additions to other financial assets	-0.92	-0.57
+	Dividends received	0.44	0.48
+	Interests received	1.13	1.39
	Cash flow from investing activities	-34.60	-28.45
-	Dividend payment to shareholders of DO & CO Aktiengesellschaft	-8.28	-11.69
-	Dividend payment to non-controlling interests	-2.28	-2.76
+	Cash proceeds from the increase of financial liabilities	0.06	0.18
-	Repayment of financial liabilities	-0.06	0.00
-	Interests paid	-0.01	-0.43
	Cash flow from financing activities	-10.56	-14.70
	Net increase/decrease in cash and cash equivalents	-16.81	-2.38
	Cash and cash equivalents at the beginning of the period	171.91	57.37
	Effects of exchange rate changes on cash and cash equivalents	-1.10	-4.19
	Decrease / increase of liquid funds due to changes of scope of consolidation	0.00	0.12
	Cash and cash equivalents at the end of the period	154.01	50.92
	Change in funds	-16.81	-2.38

1… 1st Half Year 2015/2016 adjusted (see Section 1.3. in the Notes)

5. Consolidated statement of changes in equity

	Equity of the shareholders of DO & CO Aktiengesellschaft
					Other comprehensive income
in m€	Nominal capital	Capital reserves	Retained earnings	Net result	Currency translation differences	Revaluation IAS 19	Special item from transac tions with non controlling interests	Total 201.42	Non-controlling interests	Total equity
As of 1 April 2015 1	19.49	70.51	93.36	35.11	-13.04	-2.21	-1.80		45.32	246.74
Dividend payments 2014/2015			-11.69					-11.69	-2.54	-14.23
Profit carried forward 2014/2015			35.11	-35.11				0.00		0.00
Total result				18.92	-11.17	-0.19		7.57	1.01	8.58
Transac tions with non-controlling interests							2.41	2.41	-2.62	-0.21
As of 30 September 2015	19.49	70.51	116.79	18.92	-24.21	-2.40	0.61	199.72	41.17	240.88
As of 1 April 2016	19.49	70.51	112.03	28.25	-24.50	-1.37	-0.27	204.13	50.24	254.37
Dividend payments 2015/2016			-8.28					-8.28	-2.28	-10.56
Profit carried forward 2015/2016			28.25	-28.25				0.00		0.00
Total result				15.16	-4.35	-0.06		10.75	4.32	15.07
Transac tions with non-controlling interests							0.24	0.24	-0.24	0.00
As of 30 September 2016	19.49	70.51	131.99	15.16	-28.85	-1.43	-0.03	206.83	52.04	258.87

1… 1 April 2015 adjusted (see Section 1.3. in the Notes)

Notes to the consolidated financial statements for the 1st Half Year of 2016/2017 (condensed)

1. General information

1.1. Basis

DO & CO Aktiengesellschaft (DO & CO, the Company), domiciled in 1010 Vienna, Stephansplatz 12, is the parent company of an international catering group. It conducts business in the three divisions Airline Catering, International Event Catering, and Restaurants, Lounges & Hotel.

The reporting date is 31 March.

The interim financial statements of all subsidiaries included in the consolidated financial statements were properly prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU that are effective for the business year 2016/2017, and in accordance with group-wide accounting principles set out by the parent company.

The interim consolidated financial statements as of 30 September 2016 were prepared in accordance with IAS 34 (Interim Financial Reporting). The interim consolidated financial statements do not contain all information and disclosures that are included in the financial statements, and should be read in connection with the consolidated financial statements as of 31 March 2016.

Unless otherwise stated, the interim consolidated financial statements were prepared in millions of euros (m€), figures in the notes are also given in millions of euros (m€). Both individual figures and total amounts represent the smallest rounding difference. When the reported individual figures are aggregated, slight differences to the reported total amounts may therefore arise.

1.2. Accounting and valuation methods

The accounting and valuation methods applied in the course of the preparation of these interim consolidated financial statements comply with those used in the consolidated financial statements as of 31 March 2016.

The new and/or amended standards and interpretations effective in the business year 2016/2017 have no material impact on the financial position, financial performance and results of the Group as presented in the interim consolidated financial statements.

For further information on the accounting and valuation methods applied as well as with regard to the new standards effective as of 1 April 2016 (standards to be applied mandatorily by DO & CO), we refer to the consolidated financial statements as of 31 March 2016 that form the basis of these condensed interim consolidated financial statements.

The preparation of the interim consolidated financial statements in accordance with generally accepted accounting and valuation methods requires assumptions and estimates to be made which have an effect on the amount and the presentation of the reported assets and liabilities, on the disclosed contingent assets and liabilities at the end of the interim reporting period, as well as on the income and expenses reported during the reporting period. Although these estimates are made to the best of our knowledge based on current transactions, the actual values may in the end deviate from these estimates.

1.3. Retrospective adjustments

Due to the retrospective inclusion of Oleander Group AG and its subsidiary Lasting Impressions Food Company Ltd in the business year 2015/2016 DO & CO adjusted the comparative information for the first half of the business year 2015/2016 accordingly. We refer to the further explanations in the consolidated financial statements as of 31 March 2016 under Section 3.2. in the Notes.

1.4. Scope of consolidation

In the first half of the business year 2016/2017, the following company was consolidated for the first time:

• Versilia Solutions Ltd. (at equity; 50%)

In accordance with the joint venture agreement entered into between DO & CO International Investments Ltd. and Versilia Group Holdings Ltd., DO & CO International Investments Ltd. undertook to grant a loan at a maximum of up to GBP 5.00m to the joint venture Versilia Solutions Ltd. for the expansion of the company's business activities. This obligation was not recognised in the consolidated financial statements.

1.5. Seasonality

Airline Catering and International Event Catering are subject to critical fluctuations in business volume. Whereas increased flight and passenger numbers are of significant importance for airline customers particularly in the first and second quarter of the business year due to the holiday and charter season, the changing dates for major sporting events are key in International Event Catering.

2. Notes to the consolidated statement of financial position

2.1. Property, plant and equipment

In the first half of the business year 2016/2017, DO & CO recognised impairment for property, plant and equipment in the amount of € 0.44m. This impairment is allocated mainly to the Airline Catering division in Ukraine and results from a decline in expected sales. It is reported in the consolidated income statement under amortisation/depreciation and impairments.

2.2. Shareholders' equity

By resolution of the 18th General Meeting of Shareholders of DO & CO Aktiengesellschaft held on 21 July 2016, a dividend of € 0.85 per dividend-bearing share for the business year 2015/2016 was approved. The dividend was paid out on 8 August 2016.

2.3. Other current liabilities

in m€	30 Sep 2016	31 March 2016
Advanced payments received on orders	0.21	2.81
Other liabilities	12.16	9.46
Deferred income	4.12	20.71
Total	16.49	32.98

The decrease of "deferred income" as compared to the prior year's reporting date is mainly due to the ending of the UEFA EURO 2016 in France. This project was completed in the second quarter of the business year 2016/2017.

3. Comments on the consolidated income statement

in m€	st Half Year 1 2016/2017	st Half Year 1 2015/2016	nd Quarter 2 2016/2017	nd Quarter 2 2015/2016
Amortisation and depreciation	-17.17	-16.04	-9.08	-8.07
Impairment	-0.44	-0.08	-0.02	-0.08
Total	-17.61	-16.12	-9.10	-8.16

3.1. Amortisation/depreciation and impairments

In the first half of the business year 2016/2017, DO & CO recognised impairment for property, plant and equipment in the amount of € 0.44m. This impairment is mainly allocated to the Airline Catering division in Ukraine and results from a decline in expected sales.

3.2. Income tax

in m€	st Half Year 1 2016/2017	st Half Year 1 2015/2016	nd Quarter 2 2016/2017	nd Quarter 2 2015/2016
Current taxes	-9.78	-6.56	-5.79	-3.01
Deferred taxes	0.95	3.56	0.42	2.57
Total	-8.83	-3.00	-5.37	-0.44

The low tax ratio in the prior year results from the one-off effect of capitalising deferred tax assets on loss carry-forwards in the first half of the business year 2015/2016. Further countries with higher tax rates contribute more substantial results in the first half of the business year 2016/2017.

3.3. Earnings per share

	st Half Year 1 2016/2017	1st Half Year 2015/2016	nd Quarter 2 2016/2017	nd Quarter 2 2015/2016
Net result in m€	15.16	18.92	8.40	12.27
Number of shares at the end of the period (in Pie)	9,744,000	9,744,000	9,744,000	9,744,000
Basic/diluted earnings per share (in €)	1.56	1.94	0.86	1.26

4. Additional disclosures

4.1. Additional disclosures on financial instruments

The carrying amounts of the financial instruments, classified in measurement categories pursuant to IAS 39, and the fair values allocated to classes are presented in the table below:

		Measure
		ment
		category
	Carrying amount	according to
in m€	30 Sep 2016	IAS 39	Fair Value	Level
Other non-current financial assets1	2.83
Shares in affiliated companies	0.20	AfS
Securities	0.21	AfS
Loans	0.56	LaR
Other	1.85	LaR
Trade receivables	104.30	LaR
Other current financial assets	12.31
Other current assets	12.31	LaR
Cash and cash equivalents	154.01	AfS
Total assets	273.44
Bond	148.62	FLAC	162.80	1
Other non-current financial liabilities	4.51	FLAC	4.05	3
Current financial liabilities	36.68	FLAC
Trade payables	78.75	FLAC
Total liabilities	268.56

		Measure
		ment
		category
	Carrying amount	according to
in m€	31 March 2016	IAS 39	Fair Value	Level
Other non-current financial assets1	3.26
Shares in affiliated companies	0.17	AfS
Securities	0.25	AfS
Loans	0.01	LaR
Other	2.84	LaR
Trade receivables	100.62	LaR
Other current financial assets	10.10
Other current assets	10.10	LaR
Cash and cash equivalents	171.91	AfS
Total assets	285.89
Bond	148.47	FLAC	159.75	1
Other non-current financial liabilities	4.44	FLAC	4.33	3
Current financial liabilities	33.29	FLAC
Trade payables	76.63	FLAC
Total liabilities	262.84

1… Measured at cost pursuant to IAS 39

LaR: Loans and Receivables; AfS: Available-for-Sale Financial Assets; HfT: Held for Trading; FLAC: Financial Liabilities at Amortised Cost.

With regard to cash and cash equivalents, trade receivables as well as other current and noncurrent financial assets, the carrying amounts represent an adequate estimate of the fair values as the remaining maturities are short. The same applies to trade payables, other liabilities and current financial liabilities. The fair value is not disclosed in accordance with the exemption provision set forth under IFRS 7.29(a).

No changes in the accounting and valuation method applied to the financial instruments have occurred in the interim reporting period compared to the financial statements as of 31 March 2016.

4.2. Segment reporting

Segment reporting by division for the first half of the business year 2016/2017 and the first half of the business year 2015/2016 is as follows:

		Airline	International	Restaurants,
st Half Year 1		Catering	Event	Lounges	Total
2016/2017			Catering	& Hotel
Sales	m€	328.08	92.95	83.64	504.67
EBITDA	m€	38.10	8.23	4.04	50.37
Depreciation/amortisation	m€	-12.76	-2.65	-1.76	-17.17
Impairment	m€	-0.42	0.00	-0.02	-0.44
EBIT	m€	24.92	5.58	2.26	32.76
EBITDA margin	%	11.6%	8.9%	4.8%	10.0%
EBIT margin	%	7.6%	6.0%	2.7%	6.5%
Share of Group Sales	%	65.0%	18.4%	16.6%	100.0%
Total investments	m€	19.60	1.39	8.91	29.89

st Half Year 1 2015/2016		Airline Catering	International Event Catering	Restaurants, Lounges & Hotel	Total
Sales	m€	326.13	65.10	83.71	474.94
EBITDA	m€	38.67	5.68	3.93	48.28
Depreciation/amortisation	m€	-10.30	-2.32	-3.42	-16.04
Impairment	m€	0.00	0.00	-0.08	-0.08
EBIT	m€	28.37	3.37	0.42	32.16
EBITDA margin	%	11.9%	8.7%	4.7%	10.2%
EBIT margin	%	8.7%	5.2%	0.5%	6.8%
Share of Group Sales	%	68.7%	13.7%	17.6%	100.0%
Total investments	m€	23.00	2.27	6.25	31.52

Both earnings figures, EBIT and EBITDA, are of relevance for the management with regard to control. Management predominantly focuses on EBIT in respect of resource allocation; EBIT therefore is the segment result within the meaning of IFRS 8. The values used for segment reporting comply with the accounting and valuation methods applied in the IFRS consolidated financial statements. The operating result (EBIT) is reported as segment result. The transfer prices are defined in line with the OECD Guidelines.

External sales of the DO & CO Group can be broken down by geographical regions as follows:

st Half Year 1 2016/2017		USA	Germany	Austria	Turkey	Other Countries	Total
Sales	m€	45.68	63.04	106.31	173.60	116.04	504.67
Share of Group Sales	%	9.1%	12.5%	21.1%	34.4%	23.0%	100.0%
st Half Year 1 2015/2016		USA	Germany	Austria	Turkey	Other Countries	Total
Sales	m€	42.64	56.01	100.24	181.89	94.16	474.94
Share of Group Sales	%	9.0%	11.8%	21.1%	38.3%	19.8%	100.0%

Non-current assets pursuant to IFRS 8 by geographical regions (excl. income tax receivables and deferred taxes) as of 30 September 2016 and 31 March 2016 are presented below:

30 Sep 2016		USA	Germany	Austria	Turkey	Other Countries	Total
Non-current assets	m €	37.92	32.74	34.44	108.26	83.54	296.89
31 March 2016		USA	Germany	Austria	Turkey	Other Countries	Total
Non-current assets	m€	37.21	34.47	35.54	100.34	78.20	285.76

4.3. Significant events after the reporting period (subsequent report)

No significant events or developments occurred after 30 September 2016 that would be of importance with regard to the Group's financial situation and performance.

4.4. Related party disclosures

In the course of its ordinary business activities, DO & CO Aktiengesellschaft directly or indirectly maintains business relations with unconsolidated subsidiaries, joint ventures and associated companies.

Related parties mainly comprise members of the Management Board and the Supervisory Board or entities that are in the sphere of influence of members of the Management Board or Supervisory Board.

All business relations with related parties are carried out at arm's length conditions.

	st Half Year 2016/2017 1				st Half Year 2015/2016 1
	Other related	Associated Joint Non-consolidated Other related			Associated	Joint	Non-consolidated
in m€	party	companies	ventures	subsidiaries	party	companies ventures		subsidiaries
Performed deliveries and services	0.00	0.06	0.43	0.32	0.03	0.05	0.68	0.84
Supplies received and services rendered	3.40	5.44	0.05	1.18	2.40	5.35 0.00		1.21

	30 Sep 2016				31 March 2016
	Other related	Associated	Joint	Non- consolidated	Other related Associated Joint			Non-consolidated
in m€	party	companies	ventures	subsidiaries	party	companies	ventures	subsidiaries
Receivables	0.95	0.02	1.33	0.58	0.95	0.00	1.14	0.52
Payables	0.26	1.72	0.06	0.21	0.36	1.79	0.01	0.15
Granted loans	0.00	0.00	3.04	0.00	0.00	0.00	1.40	0.00

Glossary

		1	st Half Year 2016/2017	st Half Year 1 2015/2016 1		nd Quarter 2 2016/2017		nd Quarter 2 2015/2016 1
EBITDA margin in %	EBITDA External sales	m€ 50.37 m€ 504.67	10.0%	10.2%	m€ m€	27.43 250.16	11.0%	11.1%
EBIT margin in %	EBIT External sales	m€ 32.76 m€ 504.67	6.5%	6.8%	m€ m€	18.32 250.16	7.3%	7.7%
Return on Sales in %	Profit before income tax External sales	m€ 30.57 m€ 504.67	6.1%	6.4%	m€ m€	16.82 250.16	6.7%	6.9%
Adjusted equity2 in m€	+ Shareholders´ equity - (proposed) dividend payment	m€ 258.87 m€ 0.00	258.87	240.88	m€ m€	258.87 0.00	258.87	240.88
Equity ratio2 in %	Adjusted equity Total capital	m€ 258.87 m€ 623.62	41.5%	39.6%	m€ m€	258.87 623.62	41.5%	39.6%
Return on equity (ROE) in %	Profit after income taxes (HY2 previous year + HY1 current year) 3 Ø adjusted equity 4	m€ 38.81 m€ 251.14	15.5%	18.8%	m€ m€	38.81 251.14	15.5%	18.8%
Debt (financial liabilities) in m€	+ Bond + Other non-current financial liabilities + Current loans	m€ 148.62 m€ 4.51 m€ 0.07	153.19	153.08	m€ m€ m€	148.62 4.51 0.07	153.19	153.08
Net debt (net financial liabilities) in m€	+ Debt - Cash and cash equivalents	m€ 153.19 m€ 154.01	-0.81	102.16	m€ m€	153.19 154.01	-0.81	102.16
Net debt to EBITDA	Net debt EBITDA (HY2 previous year + HY1 current year) 3	m€ -0.81 m€ 94.77	-0.01	1.15	m€ m€	-0.81 94.77	-0.01	1.15
Net gearing in %	Net debt Adjusted equity	m€ -0.81 m€ 258.87	-0.3%	42.4%	m€ m€	-0.81 258.87	-0.3%	42.4%
Surplus cash in m€	+ Cash and cash equivalents - 2% of sales (HY2 previous year + HY1 current year) 3	m€ 154.01 m€ 18.92	135.08	33.42	m€ m€	154.01 18.92	135.08	33.42
Working capital in m€	+ Current assets - Current provisions and liabilities - Surplus cash	m€ 316.60 m€ 183.92 m€ 135.08	-2.40	6.80	m€ m€ m€	316.60 183.92 135.08	-2.40	6.80
Free cash flow in m€	+ Cash flow from operating ac tivities + Cash flow from investing activities	m€ 28.37 m€ -34.60	-6.23	12.33	m€ m€	-4.95 -11.77	-16.86	7.92
EPS (Earnings per Share) in €	Net result Number of shares	m€ 15.16 Mpie 9.74	1.56	1.94	m€ Mpie	8.40 9.74	0.86	1.26
Price/Earnings ratio	Share price at the end of the period EPS (HY2 previous year + HY1 current year) 3	€ 72.77 € 2.51	28.96	24.88	€ €	72.77 2.51	28.96	24.88
Tax ratio in %	Income tax Profit before income tax	m€ 8.83 m€ 30.57	28.9%	9.8%	m€ m€	5.37 16.82	32.0%	2.6%
Adjusted EBIT in m€	EBIT - Rent income from investment property + Cost from investment property	m€ 32.76 m€ 0.00 m€ 0.00	32.77	31.25	m€ m€ m€	18.32 0.00 0.00	18.32	18.53
Capital employed in m€	+ Adjusted equity + Non-current provisions and liabilities - Cash and cash equivalents - Investment property	m€ 258.87 m€ 180.83 m€ 154.01 m€ 1.55	284.15	315.65	m€ m€ m€ m€	258.87 180.83 154.01 1.55	284.15	315.65
Return on capital employed (ROCE) in %	Adjusted EBIT (HY2 previous year + HY1 current year) 3 Ø Capital employed 4	m€ 56.43 m€ 297.51	19.0%	20.6%	m€ m€	56.43 297.51	19.0%	20.6%

1 … 1s t Half Year 2015/2016 adjusted (see Section 1.3. in the Notes)

2 … Calculation method changed over the previous year

3 … Calculated as the sum total of the past four quarters

4 … Calculated as the average amount by the end of the past four quarters and the amount at the beginning of the period under review

Statements by all Legal Representatives Pursuant to Section 87 (1) 3 of the Austrian Stock Exchange Act

We herewith certify to the best of our knowledge:

1. that the condensed interim consolidated financial statements of DO & CO Aktiengesellschaft prepared in conformity with the relevant accounting standards provide a fair presentation of the Group's assets and liabilities, financial situation and results of operations;

2. that the interim management report for the Group provides a fair presentation of the Group's assets and liabilities, financial situation and results of its operations with regard to the significant events during the first six months of the business year and their impact on the condensed interim consolidated financial statements, and with regard to the main risks and uncertainties concerning the remaining six months of the business year, and with regard to the main business transactions that are subject to disclosure and conducted with related parties.

Vienna, 17 November 2016

The Management Board:

Chairman of the Management Board Member of the Management Board

Attila DOGUDAN m.p. Gottfried NEUMEISTER m.p.

Report on the Review of the Condensed Interim Consolidated Financial Statements

Introduction

We have reviewed the accompanying condensed interim consolidated financial statements of DO & CO Aktiengesellschaft, Vienna, for the period from 1 April 2016 to 30 September 2016. The condensed interim consolidated financial statements comprise the consolidated statement of financial position as of 30 September 2016, the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of cash flows and the consolidated statement of changes in equity for the period from 1 April 2016 to 30 September 2016 and the condensed notes, which comprise a condensed presentation of material accounting principles and other explanatory notes.

The Company's management is responsible for the preparation of these condensed interim consolidated financial statements in accordance with IFRS for interim reporting as adopted by the EU. Our responsibility is to give a review summary on these condensed interim consolidated financial statements based on our review.

Scope of the review

We have performed the review in accordance with the relevant expert opinions and standards, in particular KFS/PG 11 "Guidelines for the review of financial statements" and the International Standard on Review Engagements (ISRE) 2410 "Review of Interim Financial Information by the Independent Auditor of the Entity." The review of interim financial statements includes interviews, primarily with persons responsible for finance and accounting, and analytical assessments and other surveys. A review is significantly less in scope than an audit and requires less evidence, and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit and that the financial statements are free from material misstatement. Accordingly, we do not express an audit opinion.

Review summary

Based on our review, no matters have come to our attention that cause us to presume that the accompanying condensed interim consolidated financial statements have not been prepared, in all material respects, in accordance with the IFRS for interim reporting as adopted by the EU.

Statement on the group management report for the half-year and on the statement of the legal representatives pursuant to Sec. 87 Austrian Stock Exchange Act

We have read the group management report for the half-year as of 30 September 2016 of DO & CO Aktiengesellschaft, Vienna, and made an assessment as to whether it does not show any obvious inconsistencies with the condensed interim consolidated financial statements. In our opinion, the group management report for the half-year does not contain any obvious inconsistencies with the condensed interim consolidated financial statements.

The half-year financial report contains the statement of the legal representatives required by Sec. 87 (1) No. 3 Austrian Stock Exchange Act.

Vienna, 17 November 2016

PKF CENTURION WIRTSCHAFTSPRÜFUNGSGESELLSCHAFT MBH

Mag. Günther Prindl, m.p. Dr. Andreas Staribacher, m.p. Austrian Certified Public Accountant Austrian Certified Public Accountant