DO & CO AG — Interim / Quarterly Report 2017

Feb 16, 2017

DO & CO Aktiengesellschaft

First three quarters of 2016/2017 (unaudited)

CONTENTS

	Key Figures of the DO & CO Group in accordance with IFRS 1
	Group Management Report for the 1st to 3rd Quarter of 2016/2017 (unaudited) 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.	Headcount 4
5.	Share / investor relations 5
	Interim Consolidated Financial Statements for the 1st to 3rd Quarter of 2016/2017 of
	DO & CO Aktiengesellschaft in accordance with IFRS (unaudited/condensed) 9
1.	Consolidated statement of financial position as of 31 December 2016 (unaudited) 10
2.	Consolidated income statement for the 1st to 3rd Quarter 2016/2017 (unaudited) 11
3.	Consolidated statement of comprehensive income (unaudited) 12
4. 5.	Consolidated statement of cash flows (unaudited) 13 Consolidated statement of changes in equity (unaudited) 14
	Notes to the consolidated financial statements for the 1st to 3rd Quarter 2016/2017
	(unaudited/condensed) 15
1.	General information 15
1.1.	Basis 15
1.2.	Accounting and valuation methods 15
1.3.	Retrospective adjustments 16
1.4. 1.5.	Scope of consolidation 16 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.	Significant events after the reporting period (subsequent report) 21
4.4.	Related party disclosures 21
	Statements by the Management Board 22
	Glossary 23

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

The calculation of the key figures is explained in the Glossary of Key Figures.

		1. - 3. Quarter	1. - 3. Quarter	rd Quarter 3	3rd Quarter
		2016/2017	2015/2016 1	2016/2017	2015/2016 1
Sales	m€	737.08	710.53	232.41	235.59
EBITDA	m€	73.32	70.15	22.95	21.87
EBITDA margin	%	9.9%	9.9%	9.9%	9.3%
EBIT	m€	47.04	45.35	14.28	13.19
EBIT margin	%	6.4%	6.4%	6.1%	5.6%
Profit before income tax	m€	42.32	42.33	11.75	11.71
Net result	m€	21.09	24.19	5.94	5.27
Net result margin	%	2.9%	3.4%	2.6%	2.2%
Employees		9,888	9,775	9,466	9,545
Equity 2	m€	258.97	256.15	258.97	256.15
Equity ratio 2	%	42.6%	41.5%	42.6%	41.5%
Net debt (net financial liabilities)	m€	18.07	97.36	18.07	97.36
Net debt to EBITDA		0.19	1.06	0.19	1.06
Net gearing	%	7.0%	38.0%	7.0%	38.0%
Working capital	m€	21.15	-1.13	21.15	-1.13
Cash flow from operating activities	m€	21.38	67.49	-7.32	26.71
Cash flow from investing ac tivities	m€	-45.53	-49.65	-10.87	-21.20
Free cash flow	m€	-24.16	17.84	-18.19	5.51
ROS	%	5.7%	6.0%	5.1%	5.0%

1 … 1. - 3. Quarter 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

		1. - 3. Quarter	1. - 3. Quarter	rd Quarter 3	3rd Quarter
		2016/2017	2015/2016 1	2016/2017	2015/2016 1
EBITDA per share	€	7.52	7.20	2.36	2.24
EBIT per share	€	4.83	4.65	1.47	1.35
Earnings per share	€	2.16	2.48	0.61	0.54
Equity per share (book entry) 2	€	21.43	21.39	21.43	21.39
High 3	€	107.60	100.00	72.75	100.00
Low 3	€	53.03	64.03	53.03	73.62
Price at the end of the period 3	€	62.42	100.00	62.42	100.00
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€	608.22	974.40	608.22	974.40

1 … 1. - 3. Quarter 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 to 3rd Quarter of 2016/2017 (unaudited)

1. Business development

1.1. Airline Catering

Airline Catering	1. - 3. Quarter				rd Quarter 3
			2016/2017 2015/2016 1	Change	Change in %		2016/2017 2015/2016 1	Change	Change in %
Sales	m€	476.55	482.17	-5.62	-1.2%	148.47	156.05	-7.57	-4.9%
EBITDA	m€	53.47	54.90	-1.43	-2.6%	15.38	16.23	-0.86	-5.3%
Depreciation/amortisation	m€	-19.23	-16.27	-2.96	-18.2%	-6.47	-5.97	-0.50	-8.4%
Impairment	m€	-0.42	0.00	-0.42		0.00	0.00	0.00
EBIT	m€	33.82	38.63	-4.81	-12.5%	8.90	10.26	-1.36	-13.3%
EBITDA margin	%	11.2%	11.4%			10.4%	10.4%
EBIT margin	%	7.1%	8.0%			6.0%	6.6%
Share of Group Sales	%	64.7%	67.9%			63.9%	66.2%

1… 1. -3. Quarter 2015/2016 adjusted (see Section 1.3. in the Notes)

The majority of the DO & CO locations reported a growth in sales in local currency, with the locations in the USA and Germany being particularly worth mentioning. Austria, Italy and Poland are stable. Business has declined in Ukraine, particularly due to the loss of the main customer who does its own catering.

In Turkey, one of the most important markets of DO & CO, sales increased when expressed in the local currency, the Turkish lira, by +3.5%. However, this increase is shown as a decline in sales of -4.8% in DO & CO's consolidated income statement because the Turkish lira has lost in value against the euro. The same development is reported for the British pound, since this currency also shows a loss in value against the euro. Instead of an increase in sales of +6.8% (local currency), sales declined due to this development by -7.9% (in euro). As the major part of costs is incurred in the respective local currencies, the margins remain largely unaffected.

1.2. International Event Catering

International Event Catering	1. - 3. Quarter				rd Quarter 3
		2016/2017	2015/2016	Change	Change in %	2016/2017	2015/2016	Change	Change in %
Sales	m€	130.08	100.09	30.00	30.0%	37.13	34.99	2.14	6.1%
EBITDA	m€	11.96	8.99	2.97	33.1%	3.73	3.30	0.42	12.7%
Depreciation/amortisation	m€	-3.94	-3.65	-0.29	-8.0%	-1.29	-1.34	0.05	3.5%
EBIT	m€	8.02	5.33	2.68	50.3%	2.44	1.97	0.47	23.7%
EBITDA margin	%	9.2%	9.0%			10.0%	9.4%
EBIT margin	%	6.2%	5.3%			6.6%	5.6%
Share of Group Sales	%	17.6%	14.1%			16.0%	14.8%

The strong sales increase in this division is due to the activities during the European Football Championship UEFA EURO 2016. DO & CO respectively Hédiard Paris was the hospitality production management company at one of the biggest sports events that has ever been hosted in Europe. More than 110,000 VIP guests in 9 cities and 10 different stadiums enjoyed culinary delights at 51 matches.

In addition to this major sports event, DO & CO served culinary delights to the VIP guests for example at the following events in the third quarter of the current business year:

• the Formula 1 Grands Prix in Malaysia, Japan, the USA, Mexico and Abu Dhabi,
• several football matches at the Allianz Arena, home of FC Bayern Munich and TSV 1860 Munich,
• and activities at the Olympic Park in Munich.

1.3. Restaurants, Lounges & Hotel

Restaurants, Lounges & Hotel	1. - 3. Quarter				rd Quarter 3
		2016/2017	2015/2016	Change	Change in %	2016/2017	2015/2016	Change	Change in %
Sales	m€	130.45	128.27	2.18	1.7%	46.81	44.56	2.25	5.1%
EBITDA	m€	7.89	6.27	1.62	25.9%	3.85	2.33	1.51	64.8%
Depreciation/amortisation	m€	-2.66	-4.80	2.14	44.5%	-0.90	-1.38	0.47	34.4%
Impairment	m€	-0.02	-0.08	0.06	75.5%	0.00	0.00	0.00	-111.1%
EBIT	m€	5.21	1.38	3.82	276.4%	2.94	0.96	1.98	206.6%
EBITDA margin	%	6.0%	4.9%			8.2%	5.2%
EBIT margin	%	4.0%	1.1%			6.3%	2.2%
Share of Group Sales	%	17.7%	18.1%			20.1%	18.9%

This division reports a significant increase in margins at a slight sales increase.

2. Outlook

With its diverse distribution possibilities, a rich brand portfolio as well as activities in various regions, DO & CO is very well positioned also for challenging market conditions and expects good development opportunities in the future as well.

NEW GOURMET KITCHENS TO COME IN LOS ANGELES AND PARIS

DO & CO will continue its expansion also in the future and open up further regions with two new gourmet kitchens in Los Angeles and Paris.

TURKEY

As regards the commitment in Turkey, it should be noted that DO & CO will continue its activities in Turkey as planned. DO & CO is fully committed to its long-term projects in Turkey. As regards renewal of the catering contract with Turkish Airlines, it is of interest to note that Turkish Airlines and Turkish DO & CO are negotiating the final wording of the contract, which is expected to be signed in the next few days.

RETAIL & HENRY GOURMET SHOPS

As regards Retail, at least eight new gourmet shops under the Henry brand will be opened in 2017, four each in Vienna and London.

NEW ACQUISITIONS

As in previous quarters, DO & CO continues to evaluate, on an ongoing basis, possible targets for acquisition in various markets.

DO & CO's management is 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 continue to provide the underpinnings for DO & CO to make the best possible use of its available growth potential.

3. Consolidated Statement of Financial Position

In the first three quarters of the business year 2016/2017, current assets decreased by € 25.94m from € 332.69m to € 306.74m. This is due to the decline in liquid funds.

Consolidated equity stands at € 258.97m as at 31 December 2016. The equity ratio thus is 42.6% as at 31 December 2016.

After the UEFA EURO 2016, current provisions and liabilities declined by € 23.95m to € 168.94m compared to the reporting date 31 March 2016.

4. Headcount

The average number of staff (full-time equivalent) was 9,888 in the first three quarters of the business year 2016/2017 (PY: 9,775). This means an increase of 114 members of staff on the prior year. This increase is mainly due to the expansion of business activities in Germany and Great Britain. Ukraine reports a decline in the number of staff.

5. Share / investor relations

Stock market overview

The result of the British Brexit referendum was the determining event in the first three quarters of the business year 2016/2017 and led to rising uncertainties on the European stock markets.

The ATX increased in the reporting period from 2,270.38 points as at 31 March 2016 to 2,618.43 points as at 30 December 2016. This means an increase of 15.3%. The Istanbul Stock Exchange reported a negative development in the first three quarters of the business year 2016/2017. The BIST 100, which is the Turkish leading index, fell from 83,268.04 to 78,138.66 points as at 30 December 2016 (-6.2%).

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 three quarters of the business year 2016/2017.

At the Vienna Stock Exchange, DO & CO's share fell by 41.1% in the first three quarters of the business year 2016/2017, reporting a closing rate of € 62.42 on 30 December 2016.

On the Istanbul Stock Exchange, DO & CO's share lost 31.0%, closing at TRY 233.20 on 30 December 2016.

Trading volumes

The trading volume of the DO & CO share has significantly increased on the previous year both in terms of number and in euro. The average daily trading volume of DO & CO shares on the Vienna Stock Exchange stood at € 1,350t in the first three quarters of the business year 2016/2017. The average daily trading volume of DO & CO shares on the Istanbul Stock Exchange stood at € 691t in the first three quarters of the business year 2016/2017. In consequence, the trading volume at the Vienna Stock Exchange exceeds the trading volume at the Istanbul Stock Exchange. Taking the trading volumes of the two stock exchanges, these stock exchanges traded a daily average of € 2,042t or 28,293 shares.

	Vienna Stock Exchange		Istanbul Stock Exchange		Total
	1. - 3. Quarter		1. - 3. Quarter		1. - 3. Quarter
	2016/2017	2015/2016	2016/2017	2015/2016	2016/2017	2015/2016
Volume in shares*	18,958	8,436	9,335	11,337	28,293	19,773
Turnover in €t*	1,350	687	691	940	2,042	1,627

*Daily average traded volume of the DO & CO shares

Key figures per share

		1. - 3. Quarter	1. - 3. Quarter	rd Quarter 3	3rd Quarter
		2016/2017	2015/2016	2016/2017	2015/2016
High 1	€	107.60	100.00	72.75	100.00
Low 1	€	53.03	64.03	53.03	73.62
Share price at the end of the period 1	€	62.42	100.00	62.42	100.00
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€	608.22	974.40	608.22	974.40

1 … Closing price

Shareholder structure of DO & CO Aktiengesellschaft

As at the reporting date 31 December 2016, 67.69% of the shares were 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	AT0000818802 DOCO.VI, DOCO.IS
Bloomberg Code	DOC AV, DOCO TI
Indices	ATX, WBI, BIST 100
WKN	081880
Listed in	Vienna, Istanbul
Currency	EUR, TRY

Investor relations

In the first three quarters 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 € 77.84 (status: 30 December 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 to 3rd Quarter of 2016/2017 of DO & CO Aktiengesellschaft in accordance with IFRS (unaudited/condensed)

1. Consolidated statement of financial position as of 31 December 2016 (unaudited)

	Assets in m€	31 Dec 2016	31 March 2016
Notes	Intangible assets	60.30	66.30
2.1.	Property, plant and equipment	217.53	210.37
	Investment property	1.55	1.55
	Investments accounted for using the equity method	9.45	4.28
	Other non-current financial assets	3.18	3.26
	Income tax receivables	0.23	0.23
	Deferred tax assets	9.49	9.32
	Non-current assets	301.73	295.31
	Inventories	26.15	26.17
	Trade receivables	118.51	100.62
	Other current financial assets	10.89	10.10
	Income tax receivables	1.53	3.02
	Other current non- financial assets	14.15	20.87
	Cash and cash equivalents	135.51	171.91
	Current assets	306.74	332.69
	Total assets	608.48	628.00
Notes	Shareholders' equity and liabilities in m€	31 Dec 2016	31 March 2016
	Nominal capital	19.49	19.49
	Capital reserves	70.51	70.51
	Retained earnings	131.99	112.03
	Other comprehensive income	-34.07	-25.87
	Special item from transactions with non-controlling	-0.23	-0.27
	interests
	Net result	21.09	28.25
	Equity attributable to the shareholders of DO & CO Aktiengesellschaft	208.78	204.13
	Non-controlling interests	50.18	50.24
2.2.	Shareholders´ equity	258.97	254.37
	Bond	148.69	148.47
	Other non-current financial liabilities	4.85	4.44
	Non-current provisions	20.81	22.44
	Deferred tax liabilities	6.23	5.38
	Non-current provisions and liabilities	180.58	180.74
	Current financial liabilities	36.11	33.29
	Trade payables	77.35	84.92
	Current provisions	33.69	32.52
	Income tax liabilities	7.86	9.18
2.3.	Other current liabilities	13.93	32.98
	Current provisions and liabilities	168.94	192.89
	Total shareholders' equity and liabilities	608.48	628.00

2. Consolidated income statement for the 1st to 3rd Quarter 2016/2017 (unaudited)

		1. - 3. Quarter	1. - 3. Quarter	rd Quarter 3	3rd Quarter
Notes	in m€	2016/2017	2015/2016 1	2016/2017	2015/2016 1
	Sales	737.08	710.53	232.41	235.59
	Other operating income	12.31	12.89	4.62	4.71
	Cost of materials	-313.14	-311.68	-93.73	-103.55
	Personnel expenses	-240.61	-228.64	-79.36	-74.44
	Other operating expenses	-120.19	-113.18	-40.58	-40.41
	Result of equity investments accounted for using the equity method	-2.12	0.24	-0.41	-0.03
	EBITDA - Operating result before amortisation / depreciation	73.32	70.15	22.95	21.87
3.1.	Amortisation / depreciation and impairments	-26.28	-24.81	-8.67	-8.68
	EBIT - Operating result	47.04	45.35	14.28	13.19
	Financial income	1.66	2.71	0.49	0.01
	Financial expenses	-5.06	-5.72	-1.69	-1.49
	Other financial result	-1.33	0.00	-1.33	0.00
	Financial result	-4.73	-3.02	-2.53	-1.48
	Profit before income tax	42.32	42.33	11.75	11.71
3.2.	Income tax	-12.05	-5.38	-3.23	-2.38
	Profit after income tax	30.26	36.96	8.52	9.34
	Thereof net profit attributable to non-controlling interests	-9.17	-12.76	-2.59	-4.07
	Thereof net profit attributable to shareholders of DO & CO Aktiengesellschaft (Net result)	21.09	24.19	5.94	5.27
		1. - 3. Quarter	1. - 3. Quarter	rd Quarter 3	3rd Quarter
		2016/2017	2015/2016 1	2016/2017	2015/2016 1
	Net result in m€	21.09	24.19	5.94	5.27
	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 €)	2.16	2.48	0.61	0.54

1… 1st to 3rd Quarter 2015/2016 adjusted (see Section 1.3. in the Notes)

3. Consolidated statement of comprehensive income (unaudited)

in m€	1. - 3. Quarter 2016/2017	1. - 3. Quarter 2015/2016 1	rd Quarter 3 2016/2017	3rd Quarter 2015/2016 1
Profit after income tax	30.26	36.96	8.52	9.34
Differences of currency translation	-14.07	-12.91	-7.49	6.22
Income tax	-0.95	0.25	-0.92	-0.24
Total of items that will be reclassified subsequently to the income statement	-15.02	-12.67	-8.41	5.98
Termination benefits and pension payments obligations	-0.18	-0.55	-0.10	-0.06
Income tax	0.05	0.11	0.03	0.01
Total of items that will not be reclassified subsequently to the income statement	-0.13	-0.44	-0.08	-0.04
Other comprehensive income after income tax	-15.16	-13.11	-8.49	5.94
Total comprehensive income for the period	15.11	23.85	0.04	15.27
Thereof attributable to non-controlling interests	2.21	7.39	-2.11	6.38
Attributable to DO & CO Aktiengesellschaft (Total result)	12.90	16.46	2.15	8.89

1… 1st to 3rd Quarter 2015/2016 adjusted (see Section 1.3. in the Notes)

4. Consolidated statement of cash flows (unaudited)

2015/2016 1 in m€ 2016/2017 Profit before income tax 42.32 42.33 + Depreciation / amortisation and impairments 26.28 24.81 - Reversal of impairment loss -0.01 -0.04 -/+ Gains / losses from disposals of non-current assets -0.03 -0.69 +/- Gains / losses from associated companies measured at equity 2.12 -0.09 without cash effect +/- Other non cash expense / income 0.00 -0.94 +/- Interest result 3.44 3.15 Gross cash flow 74.11 68.53 -/+ Increase / decrease in inventories and other current assets -21.82 -16.31 +/- Increase / decrease in provisions 1.07 5.74 +/- Increase / decrease in trade payables and other liabilities -21.11 18.66 - Income tax payments -10.87 -9.13 Cash flow from operating activities (net cash flow) 21.38 67.49 Income from disposals of property, plant and equipment + 0.19 0.69 and intangible assets Payments received for the disposal of subsidiaries, -0.02 0.00 + less divested cash + Payments received for the disposal of investment property 0.00 -50.88 + Payments received for the disposal of other financial assets 0.69 0.00 Additions to property, plant and equipment and - -39.62 0.00 investment property - Additions to intangible assets -0.83 -0.63 - Additions to associated companies measured at equity -6.39 -0.48 - Additions to other financial assets -1.60 -1.57 + Dividends received 0.44 0.49 + Interests received 1.62 2.73 Cash flow from investing activities -45.53 -49.65 - Dividend payment to shareholders of DO & CO Aktiengesellschaft -8.28 -11.69 - Dividend payment to non-controlling interests -2.22 -2.76 + Cash proceeds from the increase of financial liabilities 0.21 1.03 - Repayment of financial liabilities -0.08 0.00 - Interests paid -0.24 -1.99 Cash flow from financing activities -10.61 -15.41 Net increase/decrease in cash and cash equivalents -34.75 2.43 Cash and cash equivalents at the beginning of the period 171.91 57.37 Effec ts of exchange rate changes on cash and cash equivalents (opening balance) -2.19 -2.93 Effec ts of exchange rate changes on cash and cash equivalents (movement) 0.54 0.03 Decrease / increase of liquid funds due to changes of scope of consolidation 0.00 0.00 Cash and cash equivalents at the end of the period 135.51 56.90		1. - 3. Quarter	1. - 3. Quarter
	Change in funds	-34.75	2.43

1… 1st to 3rd Quarter 2015/2016 adjusted (see Section 1.3. in the Notes)

5. Consolidated statement of changes in equity (unaudited)

	Equity of the shareholders of DO & CO Aktiengesellschaft
in m€	Nominal capital	Capital reserves	Retained earnings	Net result	Other comprehensive income Currency translation differences	Revaluation IAS 19	Special item from transactions with non controlling interests	Total	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	201.42	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				24.19	-7.48	-0.25		16.46	7.39	23.85
Transac tions with non-controlling interests							2.27	2.27	-2.48	-0.21
As of 31 December 2015	19.49	70.51	116.78	24.19	-20.52	-2.46	0.47	208.46	47.69	256.15
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	-2.22	-10.50
Profit carried forward 2015/2016			28.25	-28.25				0.00		0.00
Total result				21.09	-8.06	-0.13		12.90	2.21	15.11
Transac tions with non-controlling interests							0.04	0.04	-0.04	0.00
As of 31 December 2016	19.49	70.51	131.99	21.09	-32.56	-1.50	-0.23	208.78	50.18	258.97

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

Notes to the consolidated financial statements for the 1st to 3rd Quarter 2016/2017 (unaudited/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 31 December 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.

The interim consolidated financial statements as of 31 December 2016 have neither been audited nor reviewed.

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

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

Following companies were liquidated and deconsolidated as of 31 December 2016:

• DO & CO Hospitality Management Poland Sp. z o.o. w likwidacji (previously fully consolidated, 100%)
• DO & CO Events Poland Sp. z o.o. w likwidacji (previously fully consolidated, 100%)

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 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 three quarters 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€	31 Dec 2016	31 March 2016
Advanced payments received on orders	1.20	2.81
Other liabilities	10.87	9.46
Deferred income	1.86	20.71
Total	13.93	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€	1. - 3. Quarter 2016/2017	1. - 3. Quarter 2015/2016	3rd Quarter 2016/2017	3rd Quarter 2015/2016
Amortisation and depreciation	-25.84	-24.72	-8.67	-8.68
Impairment	-0.44	-0.08	0.00	0.00
Total	-26.28	-24.81	-8.67	-8.68

3.1. Amortisation/depreciation and impairments

In the first three quarters 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€	1. - 3. Quarter 2016/2017	1. - 3. Quarter 2015/2016	3rd Quarter 2016/2017	3rd Quarter 2015/2016
Current taxes	-11.78	-7.49	-2.00	-0.93
Deferred taxes	-0.27	2.12	-1.22	-1.45
Total	-12.05	-5.38	-3.23	-2.38

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 three quarters of the business year 2015/2016. Further countries with higher tax rates contribute more substantial results in the first three quarters of the business year 2016/2017.

3.3. Earnings per share

	1. - 3. Quarter	1. - 3. Quarter	rd Quarter 3	3rd Quarter
	2016/2017	2015/2016	2016/2017	2015/2016
Net result in m€	21.09	24.19	5.94	5.27
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 €)	2.16	2.48	0.61	0.54

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€	31 December 2016	IAS 39	Fair Value	Level
Other non-current financial assets1
	3.18
Shares in affiliated companies	0.20	AfS
Securities	0.21	AfS
Loans	0.98	LaR
Other	1.80	LaR
Trade receivables	118.51	LaR
Other current financial assets	10.89
Other current assets	10.89	LaR
Cash and cash equivalents	135.51	AfS
Total assets	268.10
Bond	148.69	FLAC	161.22	1
Other non-current financial liabilities	4.85	FLAC	4.29	3
Current financial liabilities	36.11	FLAC
Trade payables	77.35	FLAC
Total liabilities	267.00

		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	84.92	FLAC
Total liabilities	271.13

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 three quarters of the business year 2016/2017 and the first three quarters of the business year 2015/2016 is as follows:

1. - 3. Quarter 2016/2017		Airline Catering	International Event Catering	Restaurants, Lounges & Hotel	Total
Sales	m€	476.55	130.08	130.45	737.08
EBITDA	m€	53.47	11.96	7.89	73.32
Depreciation/amortisation	m€	-19.23	-3.94	-2.66	-25.84
Impairment	m€	-0.42	0.00	-0.02	-0.44
EBIT	m€	33.82	8.02	5.21	47.04
EBITDA margin	%	11.2%	9.2%	6.0%	9.9%
EBIT margin	%	7.1%	6.2%	4.0%	6.4%
Share of Group Sales	%	64.7%	17.6%	17.7%	100.0%
Total investments	m€	26.69	1.69	12.80	41.19

1. - 3. Quarter 2015/2016		Airline Catering	International Event Catering	Restaurants, Lounges & Hotel	Total
Sales	m€	482.17	100.09	128.27	710.53
EBITDA	m€	54.90	8.99	6.27	70.15
Depreciation/amortisation	m€	-16.27	-3.65	-4.80	-24.72
Impairment	m€	0.00	0.00	-0.08	-0.08
EBIT	m€	38.63	5.33	1.38	45.35
EBITDA margin	%	11.4%	9.0%	4.9%	9.9%
EBIT margin	%	8.0%	5.3%	1.1%	6.4%
Share of Group Sales	%	67.9%	14.1%	18.1%	100.0%
Total investments	m€	36.91	3.06	13.26	53.23

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:

1. - 3. Quarter 2016/2017		USA	Germany	Austria	Turkey	Other Countries	Total
Sales	m€	67.90	99.12	154.04	250.78	165.23	737.08
Share of Group Sales	%	9.2%	13.4%	20.9%	34.0%	22.4%	100.0%
1. - 3. Quarter 2015/2016		USA	Germany	Austria	Turkey	Other Countries	Total
Sales	m€	64.38	87.39	145.92	266.86	145.98	710.53
Share of Group Sales	%	9.1%	12.3%	20.5%	37.6%	20.5%	100.0%

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

31 December 2016		USA	Germany	Austria	Turkey	Other Countries	Total
Non-current assets	m €	41.30	32.49	33.64	99.89	84.69	292.02
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 31 December 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.

	1. - 3. Quarter 2016/2017				1. - 3. Quarter 2015/2016
	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	0.24	0.51	0.46	0.03	0.32	1.48	0.55
Supplies received and services rendered	4.82	8.75	0.06	1.60	3.49	7.91	0.20	1.47

			31 December 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	0.04	1.07	0.63	0.95	0.00	1.14	0.52
Payables	0.05	1.51	0.02	0.23	0.36	1.79	0.01	0.15
Granted loans	0.00	0.00	3.57	0.00	0.00	0.00	1.40	0.00

Statements by the Management Board

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 nine 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 three months of the business year.

Vienna, 16 February 2017

The Management Board:

Chairman of the Management Board Member of the Management Board

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

Glossary

				1. - 3. Quarter 2016/2017	1. - 3. Quarter 2015/2016 1		rd Quarter 3 2016/2017		rd Quarter 3 2015/2016 1
EBITDA margin in %	EBITDA External sales	m€ m€	73.32 737.08	9.9%	9.9%	m€ m€	22.95 232.41	9.9%	9.3%
EBIT margin in %	EBIT External sales	m€ m€	47.04 737.08	6.4%	6.4%	m€ m€	14.28 232.41	6.1%	5.6%
Return on Sales in %	Profit before income tax External sales	m€ m€	42.32 737.08	5.7%	6.0%	m€ m€	11.75 232.41	5.1%	5.0%
Adjusted equity2 in m€	+ Shareholders´ equity - (proposed) dividend payment	m€ m€	258.97 0.00	258.97	256.15	m€ m€	258.97 0.00	258.97	256.15
Equity ratio2 in %	Adjusted equity Total capital	m€ m€	258.97 608.48	42.6%	41.5%	m€ m€	258.97 608.48	42.6%	41.5%
Return on equity (ROE) in %	Profit after income taxes (Q4 2015/2016 till Q3 2016/2017) 3 Ø adjusted equity 4	m€ m€	38.00 254.76	14.9%	19.1%	m€ m€	38.00 254.76	14.9%	19.1%
Debt (financial liabilities) in m€	+ Bond + Other non-current financial liabilities + Current loans	m€ m€ m€	148.69 4.85 0.04	153.58	154.10	m€ m€ m€	148.69 4.85 0.04	153.58	154.10
Net debt (net financial liabilities) in m€	+ Debt - Cash and cash equivalents	m€ m€	153.58 135.51	18.07	97.36	m€ m€	153.58 135.51	18.07	97.36
Net debt to EBITDA	Net debt EBITDA (Q4 2015/2016 till Q3 2016/2017) 3	m€ m€	18.07 95.85	0.19	1.06	m€ m€	18.07 95.85	0.19	1.06
Net gearing in %	Net debt Adjusted equity	m€ m€	18.07 258.97	7.0%	38.0%	m€ m€	18.07 258.97	7.0%	38.0%
Surplus cash in m€	+ Cash and cash equivalents - 2% of sales (Q4 2015/2016 till Q3 2016/2017) 3	m€ m€	135.51 18.86	116.65	38.57	m€ m€	135.51 18.86	116.65	38.57
Working capital in m€	+ Current assets - Current provisions and liabilities - Surplus cash - Assets held for sale	m€ m€ m€ m€	306.74 168.94 116.65 0.00	21.15	-1.13	m€ m€ m€ m€	306.74 168.94 116.65 0.00	21.15	-1.13
Free cash flow in m€	+ Cash flow from operating activities + Cash flow from investing activities	m€ m€	21.38 -45.53	-24.16	17.84	m€ m€	-7.32 -10.87	-18.19	5.51
EPS (Earnings per Share) in €	Net result Number of shares	m€ Mpie	21.09 9.74	2.16	2.48	m€ Mpie	5.94 9.74	0.61	0.54
Price/Earnings ratio	Share price at the end of the period EPS (Q4 2015/2016 till Q3 2016/2017) 3	€ €	62.42 2.58	24.18	32.24	€ €	62.42 2.58	24.18	32.24
Tax ratio in %	Income tax Profit before income tax	m€ m€	12.05 42.32	28.5%	12.7%	m€ m€	3.23 11.75	27.5%	20.3%
Adjusted EBIT in m€	EBIT - Rent income from investment property + Cost from investment property	m€ m€ m€	47.04 0.00 0.00	47.05	44.26	m€ m€ m€	14.28 0.00 0.00	14.28	13.01
Capital employed in m€	+ Adjusted equity + Non-current provisions and liabilities - Cash and cash equivalents - Investment property	m€ m€ m€ m€	258.97 180.58 135.51 1.55	302.48	380.45	m€ m€ m€ m€	258.97 180.58 135.51 1.55	302.48	380.45
Return on capital employed (ROCE) in %	Adjusted EBIT (Q4 2015/2016 till Q3 2016/2017) 3 Ø Capital employed 4	m€ m€	57.70 294.88	19.6%	18.9%	m€ m€	57.70 294.88	19.6%	18.9%

1 … 1. - 3. Quarter 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