Schouw & Co. — Interim / Quarterly Report 2016

Aug 11, 2016

2016

Interim report 2016 first half

Company announcement No. 11/2016 11 August 2016 · 33 pages

Table of contents

2
3
7
2 1
2 2
2 3
2 4
2 5
3 3

Highlights

• Overall, Schouw & Co.'s businesses had a very good first six months of 2016.
• Consolidated revenue was up by 4% to DKK 6,148 million.
• EBIT improved by 23% to DKK 372 million.
• Strong cash flows from operating activities at DKK 482 million. Cash flow from investing activities amounting to DKK 888 million used for acquisitions and capacity expansion.
• BioMar, Fibertex Personal Care and Hydra/Specma all upgrade their full-year EBIT guidance. The other portfolio companies maintain their full-year revenue and EBIT forecasts.
• After the end of the reporting period, the associate Incuba Invest agreed to sell its ownership interest in Scandinavian Micro Biodevices. The transaction is expected to add about DKK 65 million to Schouw & Co.'s profit after tax.
• Schouw & Co. maintains its guidance of full-year 2016 revenue of approximately DKK 14.1 billion. EBIT guidance raised by DKK 35 million to the range of DKK 845-935 million.

Statement by Jens Bjerg Sørensen, President of Schouw & Co.:

"Schouw & Co. maintains the solid momentum we've had for the past several quarters. The operating profit of DKK 215 million in the second quarter and of DKK 372 million in the first half year are the best in Group history. The future looks bright, and I'm very pleased that we are able to raise our full-year guidance.

Our good results are partly driven by our recent acquisitions of the hydraulics business Specma and the EMS company GPV, both of which have now been fully consolidated. Another very important factor has been the highly efficient operations of our portfolio companies and their constant focus on making every penny count when you produce in such large volumes as we do.

We make substantial investments in our portfolio companies, in capacity, innovation and new activities, and we are very well positioned to generate profitable growth in the future."

This is a translation of Schouw & Co.'s Interim Report for the six months ended 30 June 2016. The original Danish text shall be controlling for all purposes, and in case of discrepancy, the Danish wording shall be applicable.

Financial highlights and key ratios

( ) GR OU P S UM MA RY DK K M IL LI ON	Q 2 20 16	Q 2 20 15	YT D 20 16	YT D 20 15	20 15 To tal
Re nd in ve nu e a co me
Re ve nu e	3, 37 3	3, 10 4	6, 14 8	5, 88 8	12 56 6 ,
( ) Op tin rof it b efo de cia tio EB IT DA era g p re pre n	31 9	24 7	57 5	49 4	1, 21 4
De cia tio nd im irm lo ent pre n a pa sse s	10 3	96	20 3	19 1	38 3
Op ( ) tin rof it EB IT era g p	21 5	15 1	37 2	30 3	83 1
Pro fit aft tax in iat d jo int ntu er ass oc es an ve res	33	28	47	47	86
Fin cia l it et an em s, n	-2	-18	-16	0	-46
Pro fit bef ta ore x	24 7	16 0	40 3	34 9	87 1
Pro fit for th eri od e p	19 3	12 7	30 9	25 1	64 5
Ca sh flo ws
Ca sh flo fro tin cti vit ies ws m op era g a	37 3	52	48 2	22 4	1, 17 1
Ca sh flo fro inv ing tiv itie est ws m ac s	-14 9	-10 6	-88 8	-18 4	-56 9
Of wh ich inv in p lan nd uip est nt ert t a me rop y, p eq
nt me	-14 8	-10 7	-29 3	-16 5	-35 4
Ca sh flo fro fin cin cti vit ies ws m an g a	-68 0	-17 9	-56 2	-11 6	-32 4
Ca sh flo fo r th eri od ws e p	-45 6	-23 3	-96 7	-76	27 8
In d c ita l a nd fin cin ste ve ap an g
Inv est ed ita l ex clu din ood wi ll ca p g g	5, 44 1	85 9 4,	5, 44 1	85 9 4,	46 4, 4
To tal set as s	02 6 11 ,	10 49 1 ,	02 6 11 ,	10 49 1 ,	10 6 51 ,
Wo rki ita l ng cap	1, 99 3	2, 01 3	1, 99 3	2, 01 3	1, 59 8
( ) Ne t in be ari de bt NI BD ter est ng	58 2	13 4	58 2	13 4	-51 1
Sh of uit ibu tab le t ha reh old of ttr are eq y a o s ers
Sc ho & Co uw	6, 73 6	6, 33 8	6, 73 6	6, 33 8	6, 65 6
No rol lin int ont sts n-c g ere	20	29	20	29	21
To tal uit eq y	6, 75 6	6, 36 6	6, 75 6	6, 36 6	6, 67 7
Fin cia l d ata an
( ) EB IT DA in % m arg	9.4	8.0	9.3	8.4	9.7
( ) EB IT in % ma rg	6.4	4.9	6.1	5.1	6.6
( % ) EB T m in arg	7.3	5.2	6.6	5.9	6.9
) ity ( % Re tur n o n e qu	10 .8	8.6	10 .8	8.6	10 .2
( ) Eq uit ati % y r o	61 .3	60 .7	61 .3	60 .7	63 .5
( ) RO IC clu din ood wi ll % ex g g	19 .1	17 .0	19 .1	17 .0	18 .3
( ) RO IC in clu din ood wi ll % g g	15 .6	14 .1	15 .6	14 .1	15 .1
NI BD / EB IT DA	0.4	0.1	0.4	0.1	-0. 4
Av be f e loy du rin the rio d g. n um r o mp ees g pe	4, 29 5	2, 39 9	3, 74 6	2, 33 8	2, 38 2

( ) GR OU P S UM MA RY DK K M IL LI ON	Q 2 20 16	Q 2 20 15	YT D 20 16	YT D 20 15	20 15 To tal
Pe ha da ta r s re
(o ) Ea rni ha f D KK 10 ngs pe r s re	8.1 0	5.4 3	13 .06	10 .72	27 .48
(o ) Dil d e ing sha f D KK 10 ute arn s p er re	8.0 8	5.4 1	13 .03	10 .69	27 .38
(o ) Ne alu sh f D KK 10 t a t v sse e p er are	28 3.7 6	26 8.6 2	28 3.7 6	26 8.6 2	28 2.1 0
Sh f p (o f D 10 ) ice d o eri od KK are pr , en	37 0.5 0	34 9.5 0	37 0.5 0	34 9.5 0	38 7.0 0
Pri ce/ net set lue as va	1.3 1	1.3 0	1.3 1	1.3 0	1.3 7
ita lisa tio Ma rke t c ap n	8, 79 5	8, 24 6	8, 79 5	8, 24 6	9, 13 1

Definitions of financial ratios

Earnings per share (EPS) and diluted earnings per share (EPS-D) are calculated in accordance with IAS 33. Other key ratios are calculated in accordance with "Recommendations and Ratios 2015" issued by the Danish Finance Society.

The financial ratios in the interim report are calculated in the following manner:

Re tur ity n o n e	Pro fit for th e la 12 nth xcl ud ing rol lin int st ont sts s e mo no n-c g ere
qu	Av ity lud ing rol lin int ont sts g. e qu exc no n-c g ere
RO IC clu din ood wi ll	EB IT A t he las t 1 2 m hs ont
ex g g	Av inv ed ita l ex clu din ood wi ll est g. cap g g
RO IC in clu din ood wi ll	EB IT A t he las t 1 2 m hs ont
g g	Av inv ed ita l in clu din dw ill est g. cap g g oo
uit ati	Eq uit nd of rio d y, e pe
Eq y r o	To tal lia bil itie nd uit nd of rio d s a eq y, e pe
NI BD / EB IT DA	NI BD d o f p eri od , en
	12 EB IT DA th e la st nth mo s
Ea rni ha EP S	fit for 12 ing lin int Pro th e la st nth xcl ud ont rol sts mo s e no n-c g ere
( ) ngs pe r s re	Av of s in cir ion mb sh lat era ge nu er are cu
( ) Dil d e sh EP S-D ute	Pro fit for th eri od lud ing rol lin int ont sts e p exc no n-c g ere
ing arn s p er are	Dil d a be f s ha in cir lat ion ute ve rag e n um r o res cu
Ne alu sh t a t v	Eq uit xcl ud ing rol lin int d o f p eri od ont sts y e no n-c g ere , en
sse e p er are	No . of sh xcl sh nd of rio d . tr are s e eas ury are s, e pe
Pri ce/ P/ net set lue NA V	Ma rke ita lisa tio nd of rio d t c ap n, e pe
( ) as va	Eq uit xcl ud ing rol lin int d o f p eri od ont sts y e no n-c g ere , en
Ma rke ita lisa tio t c ap n	Nu mb of sh sha sh ice x t er are s, e rea su ry res are pr , x

Interim report – first quarter of 2016

Financial performance

( ) DK K m illio n	Q 2 2 01 6	Q 2 2 01 5	Ch an	ge
Re ve nu e	3, 37 3	3, 10 4	26 9	9%
EB IT DA	31 9	24 7	72	29%
EB IT	21 5	15 1	64	42%
As iat etc soc es	33	28	6	20%
Pro fit bef ta ore x	24 7	16 0	87	54%
Ca sh flo w f tio rom op era ns	37 3	52	32 1	617 %

( ) DK K m illio n	D 2 01 6 YT	D 2 01 YT 5	Ch an	ge
Re ve nu e	6, 14 8	5, 88 8	26 0	4%
EB IT DA	57 5	49 4	81	16%
EB IT	37 2	30 3	70	23%
iat As etc soc es	47	47	1	1%
Pro fit bef ta ore x	40 3	34 9	54	15%
Ca sh flo w f tio rom op era ns	48 2	22 4	25 8 1	15%
Ne t in -be ari de bt ter est ng	58 2	13 4	44 8	-
Wo rki ita l ng cap	1, 99 3	2, 01 3	-20	-1%
RO IC cl. odw ill ex go	19 .1%	17 .0%	2.1 pp
RO IC in cl. odw ill go	15 .6%	14 .1%	1.5 pp

Overall, the Schouw & Co. businesses had a very good first six months of 2016. Consolidated revenue was up by 4% to DKK 6,148 million in H1 2016 from DKK 5,888 million in H1 2015. The revenue improvement conceals several opposing factors. BioMar lost revenue compared with the extraordinarily strong first half of 2015, but the setback was offset by a large revenue improvement in the hydraulics activities that was mostly due to the Specma acquisition and by the acquisition of GPV, which is consolidated effective from the second quarter of 2016. The two Fibertex businesses also reported revenue improvements.

EBIT was up by 23% from DKK 303 million in H1 2015 to DKK 372 million in H1 2016. All portfolio companies contributed to the improvement with

the exception of Fibertex Nonwovens, which recorded a minor drop in earnings.

The large associate Kramp is recognised in the consolidated financial statements under profit/loss after tax in associates at a 20% share of the profit in Kramp. The share of profit was recognised at DKK 40 million in H1 2016, compared with DKK 43 million in H1 2015.

The remaining associates and joint ventures contributed a combined profit of DKK 8 million after tax. While mainly deriving from the BioMar companies, the amount also includes Xergi, which as expected reported lower revenue in H1 2016 than in H1 2015, resulting in lower earnings close to break-even.

Consolidated net financial items were an expense of DKK 16 million in H1 2016, a DKK 16 million increase over H1 2015. The difference was mainly due to foreign exchange adjustments. In H1 2016, this item was a DKK 9 million loss, while in H1 2015 it was recognised at a DKK 14 million gain. When adjusted for this factor, net interest expenses were reduced by DKK 7 million.

Liquidity and capital resources

The consolidated operating activities generated a cash inflow of DKK 482 million in H1 2016, compared with DKK 224 million in H1 2015. Cash flows for investing activities amounted to DKK 888 million in H1 2016, primarily used for the acquisitions of Specma and GPV as well as for the purchase of property, plant and equipment by

BioMar and Fibertex Personal Care, against DKK 184 million in H1 2015.

Consolidated net interest-bearing debt, which amounted to DKK 134 million at 30 June 2015, had become a net deposit of DKK 511 million at 31 December 2015. At 30 June 2016, the Group had net interest-bearing debt of DKK 582 million, the significant change being mainly due to the acquisitions of Specma and GPV.

The Group's working capital fell slightly, from DKK 2,013 million at 30 June 2015 to DKK 1,993 million at 30 June 2016. The moderate reduction consisted of a large drop for BioMar that was offset by an increase relating mostly to the new acquisitions.

Special risks

The overall risk factors the Schouw & Co. Group faces are discussed in the 2015 Annual Report. The current assessment of special risks is largely unchanged from the assessment applied in the preparation of the 2015 Annual Report.

Interim report – first quarter of 2016

Portfolio company highlights

The following is a brief review of portfolio company performances in the six months to 30 June 2016. See the individual company reviews on the following pages for more information.

BIOMAR posted a large revenue decline relative to the first six months of 2015, when BioMar recorded extraordinarily high sales in Norway. Also causing the decline were reduced sales in Chile due to a natural phenomenon of severe algal blooms, which have since ended. EBIT improved despite the fall in revenue.

FIBERTEX PERSONAL CARE increased its revenue due to higher volume sales from the factory in Malaysia. EBIT also improved, in part due to a revenue improvement, better capacity utilisation and higher sales of value-added products.

FIBERTEX NONWOVENS improved its revenue through the positive effects of the acquisition of operations in Turkey in November 2015 and higher revenue from the other European production facilities. EBIT, while unchanged from H1 2015, consisted of stronger earnings from the factories in Europe and weaker results from South Africa and the USA.

HYDRA/SPECMA is reporting from a new and much higher level following the acquisition of Specma on 4 January 2016 with no basis for a year-on-year comparison of the combined company's revenue and EBIT. The former Hydra-Grene reported like-for-like improvements in both revenue and EBIT relative to H1 2015. Specma reported a revenue improvement and a slightly lower EBIT for the reporting period.

GPV , Denmark's leading player in electronic manufacturing services (EMS), employs about 1,000 people and has production facilities in Denmark (Tarm and Aars) and in Bangkok, Thailand. The company was acquired by Schouw & Co. effective 1 April 2016 and is consolidated effective from the second quarter of 2016. GPV reported Q2 revenue in line with the second quarter of 2015. The company's EBIT improved when stated before adjustments resulting from the accounting treatment of the purchase price allocation, mainly due to stable exchange rates compared with a year earlier.

KRAMP , which is recognised as an associate, reported a further increase in revenue but with a minor decline in EBIT.

Schouw & Co. shares and treasury shares

Schouw & Co.'s share capital comprises 25,500,000 shares with a nominal value of DKK 10 each for a total nominal share capital of DKK 255,000,000. Each share carries one vote.

Schouw & Co.'s shares depreciated by 4% during the first six months of 2016, from DKK 387.00 at 31 December 2015 to DKK 370.50 at 30 June 2016. On 19 April 2016, the share price was reduced by a dividend payment of DKK 10 per share.

At 31 December 2015, the company held 1,906,130 treasury shares, equal to 7.48% of the share capital. In the first six months of 2016,

Schouw & Co. acquired 34,800 treasury shares at an aggregate price of DKK 13 million and used 180,000 treasury shares in connection with options exercised under the Group's share incentive scheme. As a result, the company currently holds 1,760,930 treasury shares, corresponding to 6.91% of the share capital.

The market value of the holding of treasury shares was DKK 652 million at 30 June 2016. The portfolio of treasury shares is recognised at DKK 0.

Events after the balance sheet date

After the end of the reporting period, Incuba Invest, which is recognised as an associate in the Schouw & Co. consolidated financial statements at an ownership interest of 49%, agreed to sell its shares in Scandinavian Micro Biodevices, a company producing point-of-care veterinary diagnostic products. Incuba Invest has held an ownership interest in Scandinavian Micro Biodevices since 2007.

The agreement is subject to customary conditions, and a small part of the purchase price will not be released until 18 months after closing, but the transaction is expected to increase Schouw & Co.'s consolidated 2016 profit after tax in associates and joint ventures by about DKK 65 million.

Other than as set out elsewhere in this interim report, Schouw & Co. is not aware of any other events occurring after 30 June 2016 which are expected to have a material impact on the Group's financial position or outlook.

Outlook

The companies of the Schouw & Co. Group are generally well-positioned and with the strength to compete in international markets, and the Group has adequate resources to facilitate the necessary business initiatives.

Europe remains bogged down by economic weakness and political challenges. However, the most recent changes, including the British decision to leave the EU and the current events in Turkey are not expected to have any material direct impact on the Group.

BIOMAR continues to expect challenging market conditions with a volume decline in the overall market in Chile, but is now reporting a stronger outlook for its European markets. As a result, BioMar raises its full-year earnings guidance.

FIBERTEX PERSONAL CARE maintains its forecast of a full-year revenue increase in 2016. The company has again upgraded its EBIT forecast, this time to close to the level of 2015 when a sharp drop in prices of raw materials towards the end of the year and unusually large, positive foreign exchange effects in the second half of the year produced extraordinarily good results.

FIBERTEX NONWOVENS expects its recent investments and acquisitions to contribute to the company's operations in 2016. The company continues to expect both revenue and EBIT improvements relative to 2015, although especially the South African operations are facing challenges in the current difficult market conditions.

HYDRA/SPECMA anticipates a flat global hydraulics market i 2016. The company is generating good sales to the wind turbine industry and the automotive segment, but is challenged in its other segments. Hydra/Specma retains its revenue guidance for the combined company and raises its full-year EBIT guidance.

GPV is consolidated effective from 1 April 2016. For the current nine-month period to 31 December 2016, GPV is expected to contribute revenue of DKK 600-650 million. A purchase price allocation was prepared in connection with the acquisition, which is expected to reduce FY 2016 EBIT by DKK 6 million but not to have any notable effect thereafter. EBIT for the nine-month period is expected to be DKK 35 million after adjustments from purchase price allocation.

The associate KRAMP maintains its guidance of a revenue improvement relative to 2015 and lowers its EBIT guidance to just below the level of 2015.

XERGI , which is recognised as a joint venture, expects to maintain a solid level of business activity in 2016, but not as high as in 2015. As always, the company is heavily dependent on the timing of its current projects, but in the current situation the company expects a much lower full-year EBIT in 2016 than in 2015.

Overall, Schouw & Co. maintains its guidance of consolidated full-year 2016 revenue of approximately DKK 14.1 billion. However, for several of the companies, revenue depends very much on prices of raw materials, and any fluctuations can

significantly change revenue without necessarily having any notable effect on earnings.

Schouw & Co. applies a profit forecast range for each individual business, and on aggregating these ranges, the Group raises its consolidated full-year 2016 EBIT guidance by DKK 35 million to the range of DKK 845-935 million from the previous forecast range of DKK 810-900 million.

Associates and joint ventures, which are recognised at a share of profit after tax, are now expected to contribute profit of DKK 140-150 million in 2016 including the effects of Incuba Invest's agreement to sell its shares in Scandinavian Micro Biodevices made after the end of the reporting period.

Consolidated financial items for 2016 are now expected to be an expense in the region of DKK 30 million, but the amount may be affected by possible unforeseen changes in foreign exchange rates.

RE VE NU E ( ) DK K m illi on	20 16 Aft Q 2 er	20 16 Aft Q 1 er	20 16 Or ig ina l	20 15 l act ua
Bio Ma r	c. 8 50 0 ,	8, 50 0 c.	c. 9 20 0 ,	8, 97 4
Fib Pe l C ert ex rso na are	1, 90 0 c.	1, 90 0 c.	c. 1 90 0 ,	1, 79 7
Fib No ert ex nw ove ns	c. 1 40 0 ,	1, 40 0 c.	c. 1 40 0 ,	1, 22 2
Hy dra / Sp ecm a	c. 1 70 0 ,	1, 70 0 c.	c. 1 70 0 ,	60 3
GP V	60 0-6 50	60 0-6 50	-	-
Oth er/ eli mi nat ion s	-	-	-	-30
To tal re ve nu e	14 .1b n	14 .1b n	.2b 14 n	12 56 6 ,
( ) Kra 10 0% mp	c. 5 40 0 ,	5, 40 0 c.	c. 5 4 ,	5, 12 6
EB IT	20 16	20 16	20 16	20 15

( ) DK K m illi on	Aft Q 2 er	Aft Q 1 er	Or ig ina l	l act ua
Bio Ma r	42 0-4 60	0-4 50 41	10 0 4 -45	44 7
Fib Pe l C ert ex rso na are	23 0-2 50	21 0-2 30	2 00 -22 0	25 3
Fib No ert ex nw ove ns	80 -90	80 -90	80 -90	76
1 Hy dra / Sp ecm a	10 0-1 20	90 -11 0	90 -11 0	78
2 GP V	c. 3 5	40 c.	-	-
Oth er	20 c. -	20 c. -	20 c. -	-23
To tal EB IT	84 5-9 35	81 0-9 00	7 60 -85 0	83 1
3 As iat etc soc es	14 0-1 50	75 -85	75 -85	86
Fin cia l it et an em s, n	30 c. -	35 c. -	35 c. -	-46
Pro fit be for e t ax	95 5-1 .05 5	85 0-9 50	8 00 -90 0	87 1
( ) Kra EB IT 10 0% mp	44 0-4 60	46 0-4 85	4 60 -48 5	47 4

Notes

1 After about DKK 25 million from Purchase Price Allocation 2 After about DKK 6 million from Purchase Price Allocation 3 Including the effects of the of shares in SMB

Roundings and presentation

The amounts appearing in this interim report have generally been rounded to one decimal place using standard rounding principles. Accordingly, some additions may not add up.

Accounting policies

The interim report is presented in accordance with IAS 34 "Interim financial reporting" as adopted by the EU and Danish disclosure requirements for consolidated and parent company financial statements of listed companies.

Schouw & Co. has implemented the standards and interpretations which are effective from 2016. None of those standards and interpretations have had an effect on recognition and measurement in 2016 or are expected to affect Schouw & Co.

See the consolidated financial statements and the parent company financial statements for 2015 for a full description of the accounting policies.

Judgments and estimates

The preparation of interim financial statements requires management to make accounting judgments and estimates that affect the application of accounting policies and recognised assets, liabilities, income and expenses. Actual results may differ from these judgments.

Financial calendar for 2016

10 November 2016 Release of Q3 2015 interim report 2016.

The company provides detailed information about contacts and times of conference calls held in connection with the release of its full-year and interim reports through company announcements and postings on its website, www.schouw.dk.

BioMar

BioMar is the world's third-largest manufacturer of quality feed for the fish farming industry. The group has traditionally divided its operations into three geographical regions: the North Sea (Norway and Scotland), the Americas (Chile and Costa Rica) and Continental Europe, but after completing an extensive strategy process in the first quarter of 2016, BioMar has now reorganised its operations into three new divisions: Salmon (Norway, Scotland and Chile) and two non-salmon divisions covering EMEA and Emerging Markets.

Financial performance

Volumes sold fell in the first six months of 2016 relative to the first half of 2015, when BioMar recorded extraordinarily high sales due to final shipments on older contracts in Norway. The decline was also due to reduced sales in Chile due to a natural phenomenon with severe algal blooms, which – although the blooms have since ended – had the detrimental effect of reducing fish stocks. In addition, production in Chile was shut down for three weeks during the second quarter due to a dispute between local fishermen and the authorities. On the other hand, EMEA non-salmon sales improved.

Realised revenue fell by 17% from DKK 4,139 million in H1 2015 to DKK 3,432 million in H1 2016. The decline was primarily due to lower volumes sold, but lower Norwegian krone and pound sterling rates against the Danish krone and slightly lower raw materials prices were also contributors to the downward trend.

Despite the revenue decline, EBIT improved to DKK 133 million from DKK 127 million in H1

1. The increase derived especially from EMEA non-salmon, with climatic conditions having been good for fish farming operations, but Norway also contributed through improved efficiency and a strengthened product portfolio. While, obviously, special conditions pushed the financial results in Chile down, the country remains an attractive and very important market for BioMar.

Working capital fell from DKK 1,260 million at 30 June 2015 to DKK 670 million at 30 June 2016. This large reduction was due to a drop in receivables and inventories and to an increase in supplier credit following a focused effort and greater use of supply chain financing. ROIC excluding goodwill improved to 26.0% at 30 June 2016 from 21.8% at 30 June 2015.

Business development

The salmon division had a good first half-year in Norway, as efficient operations and a strengthened product portfolio produced better-than-expected results. Negotiations for the important contracts for delivery in the second half-year ended, with the expected results.

The market in Chile was strongly affected by the severe algal blooms, which were also the cause of the dispute that arose between local fishermen and the authorities about compensation for losses and that led to blockades causing a detrimental effect on production in the second quarter.

In Chile, BioMar won back market share in the first six months of the year, but the aftermath of the algal blooms has engendered a great deal of uncertainty as to how overall volumes will evolve

during the rest of the year. It is already clear that the volume of farmed fish produced in 2016 will drop sharply, but on the other hand selling prices have now reached a level profitable for Chilean fish farmers.

EMEA non-salmon volumes were higher in the first six months of 2016 than in the year-before period, especially in southern Europe, where an incipient consolidation of the Greek fish farming industry has resulted in a more stable market and higher sales for BioMar.

In Turkey, BioMar successfully completed its initial commercial production at the new factory built in a 50/50 joint venture with Turkish company the Sagun Group. The factory will initially have an expandable capacity of about 50,000 tonnes of feed.

In China, BioMar is planning a greenfield project for a fish feed factory in a joint venture with Chinese feed manufacturer Tongwei. The new factory, scheduled for commissioning in the second half of 2017, will complement Tongwei's current production, which focuses on high-end feed and utilises BioMar's special expertise in this area.

In its crucial Norwegian market, BioMar is constructing a new production line at its existing factory in Karmøy. Expected to be operational in

BioMar

the second quarter of 2017, the new production line will have an annual capacity of 140,000 tonnes.

Outlook

BioMar maintains its guidance of full-year revenue of about DKK 8.5 billion. While the guidance is unchanged, the underlying customer and product mix has changed, with lower sales in Chile and higher sales in Europe. As always, revenue may be significantly affected by possible changes in raw materials prices, without that necessarily having any effect on earnings.

Driven by the stronger earnings expected in European markets, BioMar is raising its full-year EBIT guidance to the range of DKK 420-460 million from the previous forecast of DKK 410-450 million. As always, however, the actual full-year EBIT will depend very much on the high season in the second half of the year.

	Q 2	Q 2	YT D	YT D	20 15
	20 16	20 15	20 16	20 15	To tal
( ) Vo lum 1, 00 0 t e	20 4	22 4	37 0	41 7	95 5
( ) Re DK K m illio ve nu e n	1, 90 0	2, 23 0	3, 43 2	4, 13 9	8, 97 4
f w hic h s alm rth - o on no	89 7	1, 00 3	1, 57 7	1, 93 8	4, 27 9
f w hic h s alm uth - o on so	36 7	68 7	85 8	1, 35 0	2, 52 6
f w hic h n lm - o on -sa on	63 6	54 0	99 7	85 1	2, 16 9

	Q 2 20 16	Q 2 20 15	YT D 20 16	YT D 20 15	20 15 To tal
IN CO ME ST AT EM EN T
Re ve nu e	89 9.8 1,	2, 23 0.4	3, 43 1.9	13 9.4 4,	8, 97 4.2
Gro fit ss pro	24 9.4	23 8.1	41 1.4	43 7.6	08 0.5 1,
EB IT DA	14 5.4	11 4.8	20 1.4	20 1.1	59 2.8
De cia tio nd im irm ent pre n a pa	34 .4	37 .0	68 .4	74 .0	14 6.1
( ) Op tin rof it EB IT era g p	11 1.0	77 .8	13 3.0	12 7.1	44 6.7
Pro fit aft fro d jo int tax ntu ass . an res er m ve	6.8	-0. 7	8.0	-0. 4	6.0
Fin cia l it et an em s, n	-3. 8	-8. 4	-3. 9	-6. 2	-53 .6
Pro fit be for e t ax	11 4.0	68 .7	13 7.1	12 0.5	39 9.1
Ta x f the rio d or pe	-33 .9	-16 .8	-44 .4	-52 .9	-13 1.9
Pro fit for th eri od e p	80 .2	51 .9	92 .7	67 .6	26 7.2
CA SH FL OW S
Ca sh flo fro tin cti vit ies ws m op era g a	20 2.1	-95 .8	17 7.3	-10 1.4	63 6.7
Ca sh flo fro inv ing tiv itie est ws m ac s	-70 .5	-29 .9	-14 9.7	-43 .1	-20 9.5
Ca sh flo fro m f ina ing tiv itie ws nc ac s	-21 6.2	-89 .5	-23 4.0	-30 .1	-62 1.7
BA LA NC E S HE ET
* Int ibl ts an g e a sse	39 8.9	37 4.8	39 8.9	37 4.8	40 9.7
Pro rty lan t a nd uip nt pe , p eq me Oth ent set	92 9.4 32 0.1	93 2.2 20 6.7	92 9.4 32 0.1	93 2.2 20 6.7	88 4.9 26 8.7
er no n-c urr as s Ca sh d c ash uiv ale nts	24 7.5	49 2.4	24 7.5	49 2.4	45 7.2
an eq Oth nt ets	2, 60 8.7	3, 22 7.8	2, 60 8.7	3, 22 7.8	2, 81 2.2
er cu rre ass To tal set	4, 50 4.6	5, 23 3.9	4, 50 4.6	5, 23 3.9	4, 83 2.7
as s
Eq uit y	1, 97 4.8	1, 92 8.9	1, 97 4.8	1, 92 8.9	2, 12 8.2
Int bea rin de bt st- ere g	56 3.7	1, 18 9.3	56 3.7	1, 18 9.3	59 7.7
Oth dit er cre ors	1, 96 6.1	2, 11 5.7	1, 96 6.1	2, 11 5.7	2, 10 6.8
To tal lia bil itie nd uit s a eq y	50 4.6 4,	23 3.9 5,	50 4.6 4,	23 3.9 5,	83 2.7 4,
Av mb of loy era ge nu er em p ees	87 7	90 1	88 5	90 5	89 7
FI NA NC IA L K EY FI GU RE S
EB IT DA in m arg	7.7 %	5.1 %	5.9 %	4.9 %	6.6 %
EB IT in ma rg	5.8 %	3.5 %	3.9 %	3.1 %	5.0 %
RO IC cl. odw ill ex go	26 .0%	21 .8%	26 .0%	21 .8%	22 .7%
RO IC in cl. odw ill go	18 .1%	16 .0%	18 .1%	16 .0%	16 .4%
Wo rki ita l ng cap	66 9.7 24	1, 26 0.0	66 9.7 24	1, 26 0.0	75 2.4
Ne t in ter est -be ari de bt ng	2.8	68 5.8	2.8	68 5.8	68 .7

* Excluding goodwill on consolidation in Schouw & Co. of DKK 430.2 million

Fibertex Personal Care

Fibertex Personal Care is one of the world's largest manufacturers of spunbond/spunmelt nonwoven fabrics for the personal care industry. The company's production facilities are in Denmark and Malaysia, and its products are key components in diapers, sanitary towels and incontinence products. Fibertex Personal Care is also a supplier of print products.

The company's operations are concentrated mainly in Europe and South-east Asia, with direct sales to major international producers of diapers and other hygiene products handled by in-house sales organisations.

Financial performance

Fibertex Personal Care generated revenue of DKK 892 million in H1 2016, compared with DKK 832 million in H1 2015. The 7% revenue improvement was mainly driven by higher sales volumes from the factory in Malaysia, but volume sales from Innowo Print were also a contributing factor.

EBIT for H1 2016 was DKK 132 million, compared with DKK 98 million in H1 2015. This 35% earnings improvement was mainly the result of higher-volume sales, higher capacity utilisation and an uptick in sales of value-added products. The earnings improvement also came on the back of upward-trending raw materials prices in Southeast Asia in the first half of 2016, something that normally depresses earnings. This was a different situation from the first half of 2015, when prices of raw materials in the region declined. In Europe, prices of raw materials in the first half of 2016

were comparable with levels of the year-before period.

Fibertex Personal Care increased its working capital from DKK 225 million at 30 June 2015 to DKK 272 million at 30 June 2016, partly because of the upturn in business activity. Based on the sharp improvement in LTM earnings, ROIC excluding goodwill improved, rising to 23.4% at 30 June 2016 from 15.8% at 30 June 2015.

Business development

In January 2016, Fibertex Personal Care announced plans to build another factory unit in Malaysia, which will increase the company's total output capacity in the country by about 20%. In this connection, a new factory unit will be built 25 km south of the existing factory at Nilai, outside Kuala Lumpur. The new production site may eventually have as many as four production lines and thus provide a base for possible future expansion.

Construction of the new factory building will begin in August 2016, and machinery installation is scheduled to start early in the second quarter of 2017. This will be Fibertex Personal Care's eighth production line and the company's fifth in Malaysia. Not only will it help grow capacity for the company's current product range, but it will also facilitate the production of state-of-the-art supersoft products, a category in very high demand in Asian markets. Representing an investment of approximately DKK 400 million, the new line is scheduled for commissioning in the third quarter of 2017.

One of the existing production lines in Denmark will be upgraded in the second half of 2016, in part to expand capacity and not least to boost the technology to the level already employed in Malaysia and enable Denmark to manufacture new, super-soft products as well. The upgrade will involve closing the line this autumn, but Fibertex Personal Care has been building inventories to compensate for the upcoming line shutdown. The upgrade project is scheduled for completion at the end of 2016, which will allow the Danish unit to offer its new products to the market in 2017.

In addition to establishing a new factory unit in Malaysia, Fibertex Personal Care plans to add print facilities to its existing plant. When completed, the extension will have room for two print lines. The first line has already been installed and is expected to be operational in the third quarter of 2016. Fibertex Personal Care will have to build up a market for this new service in South-east Asia, but there is already a great deal of interest, as printing on these lightweight materials is a speciality.

The company's print business is also being expanded: Innowo Print in Germany is increasing capacity by adding a new production line, which is expected to be operational in the first quarter of 2017. The expansion is driven by growing demand in Europe.

Fibertex Personal Care

Outlook

Fibertex Personal Care generated revenue as expected in the first half of 2016, but reported a healthy EBIT improvement. Healthy earnings are also expected in the second half of 2016, but it must be noted that one of the lines in Denmark will not be running for a part of the period. In terms of a comparison with last year's earnings, it should also be noted that EBIT for H2 2015 was supported by a plunge in raw materials prices towards the end of the year and by foreign exchange rate fluctuations, which had an unusually large favourable impact. The company estimates that these special factors lifted the 2015 EBIT by more than DKK 50 million.

Accordingly, Fibertex Personal Care maintains its full-year 2016 revenue guidance of about DKK 1.9 billion. As always, the full-year EBIT will depend very much on raw material price trends during the rest of the year, but, given the good start to the year, the company is raising its EBIT guidance to the DKK 230-250 million range (previously DKK 210-230 million).

	Q 2 20 16	Q 2 20 15	YT D 20 16	YT D 20 15	20 15 To tal
( Re DK K m il ve nu e
) lio n	43 3	40 4	89 2	83 2	79 1, 7
- f De ark rom nm	17 1	17 5	35 8	37 6	79 5
- f M ala ia rom ys	22 3	21 2	46 7	42 2	93 5
- f Ge rom rm any	39	17	67	34	67

	Q 2 20 16	Q 2 20 15	YT D 20 16	YT D 20 15	20 15 To tal
IN CO ME ST AT EM EN T
Re ve nu e	43 3.3	40 3.9	89 1.7	83 1.8	1, 79 7.2
Gro fit ss pro	80 .9	63 .8	20 5.3	15 7.8	38 1.8
EB IT DA	73 .8	69 .9	19 0.0	16 9.1	39 4.7
De cia tio nd im irm ent pre n a pa	29 .2	35 .6	58 .0	.3 71	2.2 14
Op ( ) tin rof it EB IT era g p	44 .7	34 .3	13 2.1	97 .8	25 2.5
Fin cia l it et an em s, n	-0. 9	-5. 0	-10 .3	-3. 8	-5. 5
Pro fit be for e t ax	43 .8	29 .3	12 1.8	94 .0	24 7.0
Ta x f the rio d or pe	-9. 9	-6. 2	-27 .8	-20 .8	-60 .0
Pro fit for th eri od e p	33 .9	23 .1	93 .9	73 .2	18 7.0
CA SH OW S FL
Ca sh flo fro tin cti vit ies ws m op era g a	50 .3	12 8.8	16 1.7	21 9.5	34 2.1
Ca sh flo fro inv ing tiv itie est ws m ac s	-47 .5	-8. 7	-11 3.0	-16 .3	-85 .3
Ca sh flo fro fin cin cti vit ies ws m an g a	-2. 1	-14 1.8	-34 .2	-19 7.7	-24 8.1
BA LA NC E S HE ET
Int ibl * ts an g e a sse	83 .4	66 .4	83 .4	66 .4	76 .3
Pro lan nd uip rty t a nt pe , p eq me	1, 08 1.2	1, 06 4.3	1, 08 1.2	1, 06 4.3	97 5.1
Oth ent set er no n-c urr as s	83 .8	11 9.9	83 .8	11 9.9	82 .0
Ca sh d c ash uiv ale nts an eq	44 .7	25 .3	44 .7	25 .3	27 .9
Oth nt ets er cu rre ass	50 1.6	49 8.7	50 1.6	49 8.7	54 2.9
To tal set as s	1, 79 4.7	1, 77 4.6	1, 79 4.7	1, 77 4.6	1, 70 4.2
Eq uit	84 2.8	73 7.5	84 2.8	73 7.5	78 6.2
y Int bea rin de bt st- ere g	57 4.1	58 5.6	57 4.1	58 5.6	51 1.2
Oth dit er cre ors	37 7.8	45 1.5	37 7.8	45 1.5	40 6.8
To tal lia bil itie nd uit s a eq y	1, 79 4.7	1, 77 4.6	1, 79 4.7	1, 77 4.6	1, 70 4.2
of Av mb loy era ge nu er em p ees	3 54	2 51	53 2	50 9	51 4
FI NA NC IA L K EY FI GU RE S
in EB IT DA m arg in EB IT	.0% 17 10 .3%	.3% 17 8.5 %	21 .3% 14 .8%	20 .3% 11 .8%	22 .0% 14 .1%
ma rg RO IC cl. odw ill	23 .4%	15 .8%	23 .4%	15 .8%	20 .7%
ex go RO IC in cl. odw ill	21 .7%	14 .7%	21 .7%	14 .7%	19 .2%
go Wo rki ita l	27 1.5	22 5.1	27 1.5	22 5.1	29 4.4
ng cap Ne t in -be ari de bt ter est ng	52 9.0	56 0.3	52 9.0	56 0.3	48 2.4

* Excluding goodwill on consolidation in Schouw & Co. of DKK 48.1 million

Fibertex Nonwovens

Fibertex Nonwovens is among Europe's leading manufacturers of nonwovens, i.e. non-woven textiles used for a number of different industrial purposes. The company's core markets are in Europe and North America and its secondary markets are in Africa.

Financial performance

Fibertex Nonwovens reported H1 2016 revenue of DKK 699 million, a 10% increase from DKK 634 million in H1 2015. The revenue improvement was driven both by the acquisition of operations in Turkey in November 2015 and by a revenue increase from the European production facilities, whereas the US facility reported a drop in revenue due to weaker sales in the first quarter. Revenue from the factory in South Africa also declined, due to the weak economic activity in South Africa and the surrounding countries.

H1 2016 EBIT was DKK 51 million, which was in line with the H1 2015 figure. The H1 2016 EBIT was based on healthy demand in the automotive segment and several other segments and on satisfactory capacity utilisation at its European factories. In addition, the acquisition in Turkey contributed to performance, thanks to a fair level of business activity in the first half of 2016. On the other hand, both the South African and the US operations reported lower year-on-year earnings.

Due to the increase in business activity, working capital increased to DKK 384 million at 30 June 2016, up from DKK 349 million at 30 June 2015. Based on slightly lower LTM earnings and the relatively higher average invested capital, ROIC ex cluding goodwill fell from 9.4% at 30 June 2015 to 7.1% at 30 June 2016.

Business development

Fibertex Nonwovens is reporting a generally posi tive performance in its core business areas for the first six months of 2016 based on a fair level of activity in the automotive industry in particular as well as an improved product mix and growing sales of advanced products. At the same time, product sales to the construction industry and in frastructure projects in Europe increased year-on year. Sales to the US market improved over the period, gradually improving the capacity utilisa tion, and this positive trend is expected to con tinue in the second half of 2016. Reduced market activity has weighed on demand in South Africa, as weak economic activity and low commodity prices have slowed infrastructure and mining pro jects. Instead, the South African factory is redi recting its attention to export markets with the support of the global sales organisation. In recent years, Fibertex Nonwovens has consoli ened its business platform. Fibertex Nonwovens has gradually expanded its output capacity for processed products through a technology upgrade of several production lines as part of its strategy to increase sales of value-added products and optimise capacity utilisation at all of its factories. Several more product lines will be upgraded during the rest of the year. In terms of development and innovation, the com- pany has built a solid portfolio of new projects, including products for the automotive and com- posite industries and for filtration and acoustic purposes, as well as products to be sold in new territories expected to offer growth opportunities. In order to develop along with its customers and capitalise on the future growth potential, Fibertex Nonwovens is expanding its output capacity in the Czech Republic by building a new production line, which is expected to be operational in the third quarter of 2016. Fibertex South Africa acquired an existing line for producing fibre in 2015 and has also invested in a new nonwoven production line scheduled to start up in the third quarter of 2016. This investment in South Africa is expected to boost the factory's production efficiency. Outlook For the remainder of 2016, Fibertex Nonwovens anticipates a relatively stable level of business ac- tivity in most segments and markets. However, Fi- bertex South Africa will remain challenged on its earnings performance due to the current eco- nomic difficulties in the region, but its perfor- mance is expected to improve as exports grow and the unit becomes more integrated with other Fibertex Nonwoven companies.

dated its position as a leading manufacturer of in dustrial nonwovens. The company has made a number of structural investments and strength-

Fibertex Nonwovens

Fibertex Nonwovens expects to increase its fullyear EBIT in 2016, with the aid of the production lines upgraded in 2015, the new capacity established in the Czech Republic and South Africa, and the acquisition in Turkey, which will take full effect in 2016. Given the structural investments made and the company's increased efforts to work the market, with the focus on growing sales of value-added products, Fibertex Nonwovens has built a solid platform from which to grow its future earnings.

Against this backdrop, Fibertex Nonwovens maintains its full-year 2016 guidance of revenue of about DKK 1.4 billion and EBIT in the range of DKK 80-90 million.

	Q 2 20 16	Q 2 20 15	YT D 20 16	YT D 20 15	20 15 To tal
( ) Re DK K m illio ve nu e n	36 2	32 8	69 9	63 4	1, 22 2
- f De ark rom nm	69	65	12 8	12 5	21 1
- f th e C h R rom zec ep	95	82	17 8	15 5	30 8
- f Fr rom an ce	13 0	12 9	26 3	25 1	49 0
- f he ot rom r	68	52	13 0	10 3	21 3

	Q 2 20 16	Q 2 20 15	YT D 20 16	YT D 20 15	20 15 To tal
IN CO ME ST AT EM EN T
Re ve nu e	36 1.8	32 8.1	69 9.5	63 3.9	1, 22 2.3
Gro fit ss pro	88 .0	79 .0	16 5.2	14 9.4	27 2.8
EB IT DA	48 .1	44 .1	91 .9	89 .2	15 3.2
De cia tio nd im irm ent pre n a pa	19 .0	19 .3	40 .4	37 .0	76 .8
( ) Op tin rof it EB IT era g p	29 .0	24 .8	51 .5	52 .2	76 .4
Pro fit aft fro oci tax ate er m ass s	0.0	0.0	0.0	-0. 6	-0. 7
Fin cia l it et an em s, n	-2. 1	-2. 7	-5. 3	-6. 5	-11 .7
Pro fit be for e t ax	27 .0	22 .1	46 .2	45 .1	64 .0
Ta x f the rio d or pe	-7. 5	8 -7.	-13 .9	-14 .5	-17 .1
Pro fit be for ntr oll ing in ter est e n on -co s	19 .5	.3 14	32 .2	30 .5	46 .9
lin int No ont rol sts n-c g ere	0.9	1.5	2.0	1.6	3.0
fit for eri Pro th od e p	20 .3	.8 15	34 .3	32 .2	49 .9
CA SH OW S FL
Ca flo fro tin cti vit ies sh ws m op era g a	45 .4	23 .1	.6 55	50 .6	97 .2
Ca sh flo fro inv ing tiv itie est ws m ac s	-25 .9	-65 .2	-47 .8	-12 0.6	-31 3.0
Ca sh flo fro m f ina ing tiv itie ws nc ac s	-33 .3	60 .2	9.0	11 5.4	21 6.0
BA LA NC E S HE ET Int ibl * ts an g e a sse Pro lan nd uip rty t a nt pe , p eq me Oth ent set er no n-c as s urr Ca sh d c ash uiv ale nts an eq Oth nt ets er cu rre ass	16 6.0 72 6.4 0.0 75 .3 59 7.8	15 7.7 61 7.4 0.0 10 4.1 52 4.3	16 6.0 72 6.4 0.0 75 .3 59 7.8	15 7.7 61 7.4 0.0 10 4.1 52 4.3	16 8.2 72 3.0 3.9 58 .8 54 9.5
To tal set as s	1, 56 5.5	1, 40 3.5	1, 56 5.5	1, 40 3.5	1, 50 3.4
Eq uit y	48 7.9	46 3.4	48 7.9	46 3.4	45 9.6
Int bea rin de bt st- ere g	80 5.8	69 6.9	80 5.8	69 6.9	79 3.2
Oth dit er cre ors	27 1.8	24 3.2	27 1.8	24 3.2	25 0.6
To tal lia bil itie nd uit s a eq y	1, 56 5.5	1, 40 3.5	1, 56 5.5	1, 40 3.5	1, 50 3.4
Av mb of loy era ge nu er em p ees	80 1	73 9	79 3	67 3	71 9
FI NA NC IA L K EY FI GU RE S
EB IT DA in m arg	.3% 13	.4% 13	.1% 13	.1% 14	.5% 12
IT in ma rg	8.0 %	7.6 %	% 7.4	8.2 %	6.2
EB RO IC cl. odw ill ex go	7.1 %	9.4 %	7.1 %	9.4 %	% 7.8 %
RO IC in cl. odw ill go Wo rki ita l ng cap	6.4 % 38 3.6	8.4 % 34 9.1	6.4 % 38 3.6	8.4 % 34 9.1	7.0 % 36 1.1

* Excluding goodwill on consolidation in Schouw & Co. of DKK 32.0 million

Hydra/Specma

Hydra/Specma is a specialised trading and engineering company whose core business is trading and producing hydraulic components and systems development for industry, as well as providing related consulting services. The company's core operations are in the Nordic region, and it serves customers in other parts of Europe and in selected business segments in overseas markets.

The Swedish hydraulics company Specma AB was acquired effective 4 January 2016 and is thus consolidated from the beginning of the year. Due to the consolidation, the reported numbers for 2016 are materially different from those of 2015.

Financial performance

Overall, Hydra/Specma had a good first six months of 2016, reporting strong business activity and realising combined revenue of DKK 919 million, compared with the former Hydra-Grene's H1 2015 revenue of DKK 299 million. Like-for-like revenue of the former Hydra-Grene improved by DKK 46 million, or 15%. The revenue improvement was driven mainly by increased sales to the wind turbine industry, but sales to other industry customers also improved.

By far most of the revenue increase derived from the acquisition of Specma, which generated slightly higher revenue in the first half of 2016 than in the year-before period. Sales improved in the automotive segment (lorries and buses), but fell sharply in the marine and mining sectors due to the current market downturn.

H1 2016 EBIT was DKK 59 million as compared with DKK 35 million for the former Hydra-Grene in H1 2015. Hydra-Grene's like-for-like EBIT improved by DKK 11 million, driven by the revenue increase and a changed product mix.

The rest of the EBIT derived from the acquisition of Specma, which realised a H1 2016 EBIT of DKK 26 million, a DKK 9 million fall from H1 2015. The EBIT decline was due to an increase in costs of materials and to costs of relocating production from Sweden to Specma's factory in Poland. DKK 12 million in depreciation charges resulting from the purchase price allocation also weighed on the H1 2016 EBIT.

The overall working capital increased from DKK 188 million at 30 June 2015 to DKK 490 million at 30 June 2016 as a natural effect of the Specma acquisition.

Due to the significant increase in invested capital and the relatively lower earnings of the acquired operations, ROIC excluding goodwill fell to 20.6% at 30 June 2016 from 23.8% at 30 June 2015. It should be noted that the acquired operations have been recognised only for the second half of the LTM period used to calculate ROIC.

Business development

Taking over Specma has given the combined company a strong base in the Nordic region and a strengthened platform for serving international customers. With its extensive hydraulics expertise, Hydra/Specma is able to serve both local customers in the Nordic market and strategic custom-

ers globally with its full range of services, span ning from new product development to supplying finished units. The initiatives introduced to accelerate the inte-

gration of Hydra-Grene and Specma are progress ing as planned. Work continues on achieving the immediate synergies, especially in procurement and cross-selling, and the potential for general op timisation and benchmarking is being investi gated. The integration process will duly consider the growth and optimisation strategies launched by both companies prior to the acquisition, and the entire organisation is working hard to provide constructive support to the joint synergy projects. The effort to develop the individual units contin-

ues. In the reporting period, Specma continued to relocate production from Sweden to its factory in Stargard Szczeciński, Poland.

Outlook

Basically, the global hydraulics market is ex pected to be flat in 2016. Hydra/Specma projects a continued upward trend in sales to the wind tur bine industry and the automotive segment and to selected areas within the OEM aftersales market. In contrast, the more cyclical segments, such as offshore, marine and mining are all set to remain challenged due to the lower prices of oil and other commodities.

Hydra/Specma

The combination of the two companies is expected to produce positive synergies over time, primarily through an optimisation of procurement and cross-selling, but natural integration costs will be incurred in the short term. In addition, the combination has improved the company's aggregate competitive strength and ability to pursue both local and international business opportunities.

Hydra/Specma maintains its guidance for fullyear 2016 revenue of about DKK 1.7 billion. The company raises its full-year EBIT forecast to the range of DKK 100-120 million (previously DKK 90-100 million) after amortisation and depreciation of about DKK 25 million due to purchase price allocation.

	Q 2 20 16	Q 2 20 15	YT D 20 16	YT D 20 15	20 15 To tal
IN CO ME ST AT EM EN T
Re ve nu e	46 6.1	0.5 15	91 9.0	29 9.0	60 2.9
Gro fit ss pro	11 5.5	50 .3	23 0.5	97 .8	20 6.1
EB IT DA	43 .5	22 .9	87 .8	42 .5	93 .2
De cia tio nd im irm ent pre n a pa	14 .2	3.9	28 .6	7.3	15 .1
( ) Op tin rof it EB IT era g p	29 .3	19 .0	59 .2	35 .2	78 .1
Fin cia l it et an em s, n	-0. 5	-1. 9	-3. 8	0.6	-0. 1
Pro fit be for e t ax	28 .7	17 .1	55 .4	35 .8	78 .0
Ta x f the rio d or pe	-6. 0	-4. 0	-11 .5	-8. 5	-18 .3
Pro fit be for oll ing in ntr ter est e n on -co s	22 .8	13 .1	43 .9	27 .3	59 .7
No rol lin int ont sts n-c g ere	-1. 0	0.0	-1. 4	0.0	0.0
Pro fit for th eri od e p	21 .8	13 .1	42 .6	27 .3	59 .7
CA SH FL OW S
Ca sh flo fro tin cti vit ies ws m op era g a	31 .4	-4. 8	40 .6	39 .5	66 .8
Ca sh flo fro inv ing tiv itie est ws m ac s	-14 .6	-3. 0	-50 3.0	-4. 6	-9. 8
Ca sh flo fro m f ina ing tiv itie ws nc ac s	-32 .7	3.5	50 0.8	-49 .1	-71 .3
BA LA NC E S HE ET
Int ibl ts an g e a sse	32 7.4	12 .3	32 7.4	12 .3	11 .7
Pro rty lan t a nd uip nt pe , p eq me	0.8 17	95 .6	0.8 17	95 .6	93 .7
Oth ent set er no n-c urr as s	4.6	0.0	4.6	0.0	0.3
Ca sh d c ash uiv ale nts an eq	45 .2	8.0	45 .2	8.0	7.8
Oth nt ets er cu rre ass	79 0.9	28 1.8	79 0.9	28 1.8	29 5.5
To tal set as s	1, 33 8.9	39 7.7	1, 33 8.9	39 7.7	40 9.0
Eq uit y	37 5.8	17 6.4	37 5.8	17 6.4	21 2.2
Int bea rin de bt st- ere g	60 3.2	11 4.9	60 3.2	11 4.9	86 .9
Oth dit er cre ors	35 9.9	10 6.4	35 9.9	10 6.4	10 9.9
lia bil itie uit To tal nd s a eq y	33 8.9 1,	39 7.7	33 8.9 1,	39 7.7	40 9.0
Av mb of loy era ge nu er em p ees	1, 01 2	23 7	99 9	24 0	24 1
FI NA NC IA L K EY FI GU RE S
EB IT DA in m	9.3 %	15 .2%	9.6 %	14 .2%	15 .5%
arg EB IT in ma rg	6.3 %	12 .6%	6.4 %	11 .8%	12 .9%
RO IC cl. odw ill ex go	20 .6%	23 .8%	20 .6%	23 .8%	28 .9%
RO IC in cl. odw ill go	18 .1%	23 .8%	18 .1%	23 .8%	28 .9%
Wo rki ita l ng cap	49 0.5	18 8.3	49 0.5	18 8.3	20 2.1
Ne t in ter est -be ari de bt ng	53 0.9	10 1.2	53 0.9	10 1.2	.2 77

GPV

GPV is Denmark's largest EMS (Electronic Manufacturing Services) company and a significant international player in its field. The company is a high-mix/low-medium volume manufacturer for the B2B market. GPV's core products are both electronics and mechatronics (combination of electronics and mechanical technology). Its customers are primarily major international businesses with a leading position in their particular field and typically headquartered in Europe or the United States.

GPV has production facilities in Denmark (Tarm and Aars) and in Bangkok, Thailand. The company was acquired by Schouw & Co. effective 1 April 2016 and is thus consolidated as of the second quarter. For ease of comparison, however, the financial highlights table contains H1 2015, H1 2016 and FY 2015 figures.

A relatively large minority shareholder of the Thai subsidiary was bought out as part of the acquisition. As a result, the balance sheet figures are not directly comparable and have been left out of the table.

Financial performance

GPV generated revenue of DKK 218 million in Q2 2016, compared with DKK 219 million in Q2 2015.

The Q2 2016 EBIT was DKK 7 million, compared with DKK 10 million in Q2 2015, but the 2016 numbers were affected by a DKK 7 million adjustment due to the purchase price allocation made in connection with the acquisition. This implies an improvement in the underlying earnings driven mainly by foreign exchange rates that were generally more stable than they were in the early part of 2015.

Working capital amounted to DKK 178 million, and ROIC excluding goodwill was 14.2% at 30 June 2016.

Business development

GPV sells its products to international customer units in large parts of the world. In the second quarter, the company shipped products to 31 countries.

The high-mix/low-medium volume segment of the technical electronics and mechatronics market is highly demanding in terms of testing skills and service excellence. During the past quarter, GPV has met customer requirements for high quality standards and reliability of supply, while also ensuring sufficient flexibility to allow market fluctuations experienced by the customers to be reflected in their purchases to a reasonable extent.

In May 2016, GPV announced it was setting up an electronics production facility in Guadalajara, Mexico, in a move that will bring the company closer to the North American market. GPV intends to base its new Mexican operations on the GPV Business System to ensure that customers receive the same high level of excellence as GPV's other factories deliver.

The new factory site is a strategic location for GPV in terms of manufacturing and shipping in the three major time zones of Asia, Europe and the Americas. Expected to become operational in the first quarter of 2017, the new factory will enable GPV to share in its existing customers' growth in North America and to expand its share of the high-mix/low-medium volume technical electronics market.

In addition to setting up the new factory in Mexico, GPV plans include expanding its output capacity at the factory in Thailand in the autumn of 2016.

Operational excellence remains a major priority for GPV, as it allows the company to meet the market's requirements and demands for quality and efficiency. Accordingly, GPV will maintain its current focus on implementing flexible automation and robotics.

Outlook

The trend of outsourcing production in the sectors in which GPV finds its customers is expected to continue, as customers increasingly focus on their core skills. This approach allows OEM customers to cut back on their capital expenditure and inventories while still retaining access to flexibility and, through GPV, an outsourcing partner capable of handling their manufacturability analysis, complex production, test designs, testing and logistics.

GPV

The general market forecast for 2016 is for weaker market conditions in China and Russia, flat trends in Europe and improved conditions in the United States. GPV is not highly dependent on any individual customers, but is obviously affected by general market trends.

Based on business activity in the initial quarter under Schouw & Co. ownership, GPV expects to generate revenue of DKK 600-650 million in the 2016 financial year (nine months).

Full-year EBIT is expected to reach approximately DKK 40 million before adjustment as a result of purchase price allocation. In the second quarter of 2016, that adjustment amounted to DKK 7 million and related mainly to inventories. Going forward, the adjustment is expected to have a slightly positive effect with the full-year 2016 charge expected to be DKK 6 million. Accordingly, the company is guiding full-year EBIT of about DKK 35 million.

	Q 2 20 16	Q 2 20 15	YT D 20 16	YT D 20 15	20 15 To tal
IN CO ME ST AT EM EN T
Re ve nu e	21 8.0	21 9.3	42 7.1	42 4.4	85 4.5
Gro fit ss pro	39 .0	42 .2	82 .0	81 .7	17 3.2
EB IT DA	12 .7	16 .0	35 .1	36 .3	78 .5
De cia tio nd im irm ent pre n a pa	5.8	6.4	12 .1	12 .9	25 .3
( ) Op tin rof it EB IT era g p	6.9	9.6	23 .0	23 .4	53 .2
Fin cia l it et an em s, n	-2. 8	3.1	-4. 6	-14 .0	-20 .2
Pro fit be for e t ax	4.1	12 .7	18 .4	9.4	33 .0
Ta x f the rio d or pe	1.4	0.0	1.5	-1. 0	-1. 0
Pro fit be for ntr oll ing in ter est e n on -co s	5.5	12 .7	19 .9	8.4	32 .0
No ont rol lin int sts n-c g ere	0.0		0.0
Pro fit for th eri od e p	5.5		19 .9
CA SH OW S FL
Ca sh flo fro tin cti vit ies ws m op era g a	18 .0	-49 .2	47 .2	9.3	51 .3
Ca sh flo fro inv ing tiv itie est ws m ac s	-1. 7	-3. 4	-6. 1	-35 .7	-42 .8
Ca sh flo fro m f ina ing tiv itie ws nc ac s	-17 .1	16 .0	-25 .8	21 .5	-6. 5
BA LA NC E S HE ET
Int ibl ts an g e a sse	0.0		0.0
Pro lan nd uip rty t a nt pe , p eq me	18 6.7		18 6.7
Oth ent set er no n-c urr as s	13 .9		13 .9
Ca sh d c ash uiv ale nts an eq	28 .7		28 .7
Oth nt ets er cu rre ass	35 6.0		35 6.0
To tal set as s	58 5.3		58 5.3
uit Eq	2.6 11		2.6 11
y Int bea rin de bt st- ere	29 5.2		29 5.2
g Oth dit er cre ors	17 7.5		17 7.5
To tal lia bil itie nd uit s a eq y	58 5.3		58 5.3
Av mb of loy era ge nu er em p ees	1, 05 3		1, 04 8
FI NA NC IA L K EY FI GU RE S
EB IT DA in m arg	5.8 %	7.3 %	8.2 %	8.6 %	9.2 %
EB IT in ma rg	3.1 %	4.4 %	5.4 %	5.5 %	6.2 %
RO IC cl. odw ill ex go	14 .2%		14 .2%
RO IC in cl. odw ill go	.2% 14		.2% 14
rki ita Wo l ng cap	8.0 17		8.0 17
Ne t in -be ari de bt ter est ng	26 6.5		26 6.5

Kramp

Kramp is the leading supplier of spare parts and accessories to the agricultural sector in Europe.

Schouw & Co. merged its wholly owned subsidiary Grene with Dutch company Kramp in 2013 and now holds a 20% ownership interest in the continuing company.

Financial performance

Kramp had a good first six months of 2016, increasing revenue by 5% to DKK 2,818 million in H1 2016 from DKK 2,693 million in H1 2015, even with the farming industry under significant pressure in a number of markets.

The sales performance was broadly based on the European markets, as Kramp continues to draw support from the close partnerships it has built in recent years with leading agricultural machinery manufacturers such as AGCO and SDF.

EBIT declined from DKK 281 million in H1 2015 to DKK 269 million in H1 2016, primarily due to a slightly lower contribution margin and higher costs.

Schouw & Co. recognises Kramp as an associate at a 20% share of its profit as stated after tax. The recognised share of the profit for H1 2016 was DKK 40 million (H1 2015: DKK 43 million).

Working capital was up by 10%, from DKK 1,544 million at 30 June 2015 to DKK 1,697 million at 30 June 2016, and net interest-bearing debt increased from DKK 1,311 million at 30 June 2015 to DKK 1,406 million at 30 June 2016, after a dividend of DKK 246 million was paid to sharehold ers, of which Schouw & Co. received DKK 49 mil lion in December 2015.

Business development

The agricultural sector continues to face massive challenges throughout most of Europe, and farm ers are generally holding back on investment and maintenance. The downturn in sales of new machinery has rubbed off on component sales to manufacturers of agricultural machinery, but de-

mand for spare parts and accessories – the main component of Kramp's business – has now also begun to contract. Despite the challenges faced in agriculture, Kramp has managed to increase sales to a number of countries, and Kramp's assessment is that the group has taken market share in most markets. The markets are extremely competitive, but Kramp has a significant advantage from the strong and close partnerships it has built up with lead-

ing manufacturers of agricultural machinery. Intending to consolidate and fortify its market leading position, Kramp is planning substantial investment in 2016 and 2017 in both new and up graded warehouse facilities and IT solutions. Kramp's e-commerce platform is becoming an in creasingly essential part of the business, requiring ever-greater investment to expand the position Kramp has built up in recent years. The existing physical facilities were expanded in 2015, with large extensions to the central warehouses in Konin, Poland, and Poitiers, France. Further ca pacity expansion is expected in the upcoming period through a major investment programme. The new warehouse facilities will fulfil the needs aris- ing from the assortment increase that followed from the Kramp and Grene merger and the ex- pected business growth. Also, the new facilities will improve the quality of service and ensure added accessibility for Kramp's customers. Outlook Europe's agro industry continues to face several significant challenges, and, while they vary from market to market, they are all the result of eco- nomic and political conditions that are dampen- ing demand expectations. Kramp's expanded physical facilities and its com- petitive strength give it a strong market position. However, feeling the effects of the slowing de- mand, the group is lowering its full-year 2016 rev- enue guidance slightly and now expects to gener- ate full-year revenue at the low end of its previous forecast of approximately DKK 5.4 billion. Kramp intends to continue allocating additional resources to securing its market position in 2016, also by investing in IT and developing new plat- forms. Given the slightly lower revenue guidance, Kramp is reducing its full-year EBIT forecast to the range of DKK 440-460 million from the previ- ous forecast of DKK 460-485 million.

Kramp

As a result, Schouw & Co. now expects to recognise approximately DKK 65 million after estimated financial expenses and tax as its share of the profit for 2016 (previous forecast was DKK 65- 75 million). The amount will be recognised under profit/loss after tax in associates and joint ventures.

	Q 2 20 16	Q 2 20 15	YT D 20 16	YT D 20 15	20 15 To tal
CO ST IN ME AT EM EN T
Re ve nu e	52 1, 7.5	43 9.1 1,	2, 81 8.1	2, 69 3.1	12 6.4 5,
EB IT DA	20 1.8	20 1.3	33 8.3	34 4.6	60 4.0
De cia tio nd im irm ent pre n a pa	35 .0	32 .8	69 .5	64 .1	12 9.8
( ) Op tin rof it EB IT era g p	16 6.8	16 8.5	26 8.8	28 0.5	47 4.2
Fin cia l it et an em s, n	-19 .2	-11 .2	-32 .4	-19 .9	-47 .5
Pro fit be for e t ax	14 7.6	15 7.3	23 6.4	26 0.6	42 6.7
Ta x f the rio d or pe	-24 .6	-31 .1	-38 .3	-46 .7	-73 .8
Pro fit for th eri od e p	12 3.0	12 6.2	19 8.1	21 3.9	35 2.9
in S & Co Pro fit nis ed ch rec og ouw	24 .6	25 .2	39 .6	42 .8	70 .6
NC E S BA LA HE ET
No ent set n-c urr as s	03 4.9 1,	03 1, 4.4	03 4.9 1,	03 1, 4.4	04 4.3 1,
Cu nt ets rre ass	2, 18 1.1	2, 19 4.6	2, 18 1.1	2, 19 4.6	88 1.6 1,
To tal set as s	3, 21 6.0	3, 22 9.0	3, 21 6.0	3, 22 9.0	2, 92 5.9
Eq uit y	1, 31 5.3	1, 26 6.9	1, 31 5.3	1, 26 6.9	1, 13 0.2
Int bea rin de bt st- ere g	1, 40 6.2	1, 31 1.4	1, 40 6.2	1, 31 1.4	1, 41 8.9
Oth dit er cre ors	49 4.5	65 0.7	49 4.5	65 0.7	37 6.8
To tal lia bil itie nd uit s a eq y	3, 21 6.0	3, 22 9.0	3, 21 6.0	3, 22 9.0	2, 92 5.9
Av mb of loy era ge nu er em p ees	2, 72 6	2, 57 2	2, 66 8	2, 55 7	2, 57 4
FI NA NC IA L K EY FI GU RE S
EB IT DA in m arg	13 .2%	14 .0%	12 .0%	12 .8%	11 .8%
EB IT in ma rg	10 .9%	11 .7%	9.5 %	10 .4%	9.2 %
Wo rki ita l ng cap	1, 69 7.4	1, 54 3.9	1, 69 7.4	1, 54 3.9	1, 50 4.8
Ne t in -be ari de bt ter est ng	1, 40 6.2	1, 31 1.4	1, 40 6.2	1, 31 1.4	1, 41 8.9

All amounts in DKK million Interim Report – first half of 2016 Schouw & Co. 20

Statements of income and comprehensive income

No	te I tat t nc om e s em en	Q 2 20 16	Q 2 20 15	YT D 20 16	YT D 20 15	20 15 To tal
1	Re ve nu e	3, 37 2.5	3, 10 4.1	6, 8.1 14	88 7.9 5,	2, 56 1 5.7
	Co of st les sa	-2, 79 8.7	-2, 67 1.7	09 4.3 -5,	04 2.9 -5,	0, 61 9.8 -1
	Gr rof it os s p	3.8 57	43 2.4	05 3.8 1,	84 5.0	94 5.9 1,
	Oth tin inc er op era g om e	26 .1	2.6	33 .6	7.8	23 .9
	Dis trib uti ts on cos	-22 7.6	-17 5.1	-42 8.3	-33 9.5	-69 6.7
2	Ad mi nis tiv tra e e xp ens es	-15 7.0	-10 9.2	-28 6.9	-21 0.8	-44 1.8
	Oth tin er op era g e xp ens es	0.0	0.0	-0. 1	0.0	0.0
	( ) Op tin rof it EB IT era g p	21 5.3	15 0.7	37 2.1	30 2.5	83 1.3
	Pro fit aft in oci tax ate er ass s	32 .1	25 .2	48 .5	42 .3	74 .7
	Pro fit aft in jo int tax ntu er ve res	1.0	2.5	-1. 1	4.6	11 .5
	Fin cia l in an com e	11 .2	4.7	17 .5	28 .2	50 .2
	Fin cia l ex an pe nse s	-13 .1	-23 .0	-33 .7	-28 .4	-96 .6
	Pro fit be for e t ax	24 6.5	16 0.1	40 3.3	34 9.2	87 1.1
	Ta rof it x o n p	-53 .9	-33 .6	-94 .6	-98 .3	-22 6.3
	Pro fit for th eri od e p	19 2.6	12 6.5	30 8.7	25 0.9	64 4.8
	Att rib ble uta to
	Sh ho lde of Sc ho & Co are rs uw	19 2.4	12 8.0	30 9.4	25 2.5	64 7.8
	No ont rol lin int sts n-c g ere	0.2	-1. 5	-0. 7	-1. 6	-3. 0
	fit for Pro th eri od e p	19 2.6	12 6.5	30 8.7	25 0.9	64 4.8
8	( ) Ea rni ha DK K ngs pe r s re	8.1 0	5.4 3	13 .06	10 .72	27 .48
8	( ) Dil d e ing sh DK K ute arn s p er are	8.0 8	5.4 1	13 .03	10 .69	27 .38

Co reh siv e i mp en nc om e	Q 2 20 16	Q 2 20 15	YT D 20 16	YT D 20 15	20 15 To tal
Ite th be cla ssi fie d t he fit d at o t ms can re pro an
los tat ent s s em :
Ex cha ad jus of fo rei bsi dia ate tm ent ng e r gn su r
ies	13 .9	-10 1.8	-25 .2	19 2.3	10 4.7
He dg ing in ise d str ent um s r eco gn	23 .6	-7. 5	7.2	-4. 4	3.0
He dg ing in sfe d t of str ent s t ost um ran rre o c
les sa	0.0	0.0	-0. 8	0.3	0.3
He dg ing in str ent s t sfe d t o f ina ials um ran rre nc	0.2	1.1	0.5	1.7	7.0
Oth nsi inc e f he nd er com pre ve om rom as s. a
jo int ntu ve res	-0. 2	4.8	-1. 5	-0. 7	9 -7.
Oth adj uit ust nt er me on eq y	-4. 5	1.0	-4. 7	1.3	-0. 3
Ta the he nsi inc x o n o r c om pre ve om e	-5. 3	2.0	-1. 1	0.9	-2. 9
Ot he he ive in af ter ta r c om pre ns co me x	27 .7	-10 0.4	-25 .6	19 1.4	10 3.9
Pro fit for th eri od e p	19 2.6	12 6.5	30 8.7	25 0.9	64 4.8
To tal ise d c he ive in re co gn om pre ns co me	22 0.3	26 .1	28 3.1	44 2.3	74 8.7
Att rib ble uta to
Sh ho lde of Sc ho & Co are rs uw	21 9.9	26 .6	28 3.7	44 2.9	75 6.4
No ont rol lin int sts n-c g ere	0.4	-0. 5	-0. 6	-0. 6	-7. 7
To tal ise d c he ive in re co gn om pre ns co me	22 0.3	26 .1	28 3.1	2.3 44	8.7 74

Balance sheet · assets and liabilities

As te set s	30 / 6 20 16	31 / 12 20 15	30 / 6 20 15	31 / 12 20 14
Go odw ill	1, 15 0.6	1, 00 6.1	99 8.7	97 0.5
Co let ed dev elo oje ent cts mp pm pr	29 .4	0.0	11 .5	12 .1
De lop jec in p nt ts ve me pro rog res s	2.3	0.0	18 .7	18 .4
Oth int ibl ts er an g e a sse	30 3.6	16 9.9	92 .4	93 .9
In ibl tan ets g e a ss	1, 48 5.9	1, 17 6.0	1, 12 1.3	1, 09 4.9
La nd d b uil din an gs	1, 44 5.6	1, 26 0.2	1, 25 3.0	1, 26 2.5
Pla d m hin nt an ac ery	1, 14 8.4	1, 15 2.3	1, 19 1.6	1, 25 1.9
Oth fixt ls a nd uip too nt er ure s, eq me	10 2.2	65 .4	95 .2	69 .6
As nd tio set nst tc. s u er co ruc n, e	49 9.1	29 8.3	27 0.2	13 1.0
Pro lan nd uip rty t a nt pe , p eq me	3, 19 5.3	2, 77 6.2	2, 81 0.0	2, 71 5.0
Eq uit inv in oci est nts ate y me ass s	61 7.2	57 0.3	59 3.1	56 1.7
Eq uit inv in jo int est nts ntu y me ve res	11 9.3	10 9.1	68 .4	64 .3
Se riti cu es	11 5.7	83 .9	12 5.2	11 5.0
fer De red ta x	31 .2	18 .1	47 .7	.9 51
cei Re ble va s	17 0.8	17 7.7	13 7.2	14 4.1
Ot he nt ts r n on -cu rre as se	1, 05 4.2	95 9.1	97 1.6	93 7.0
To tal t a ets no n-c urr en ss	5, 73 5.4	4, 91 1.3	4, 90 2.9	4, 74 6.9
Inv ent ori es	97 3.7 1,	43 1, 5.1	65 7.2 1,	1, 44 7.5
Re cei ble va s	2, 84 7.7	2, 2.7 75	2, 85 6.9	2, 59 2.1
In eiv ab le e t com ax rec	27 .5	5.9	2.1	8.4
Se riti cu es	0.0	0.1	0.1	0.1
Ca sh d c ash uiv ale nts an eq	44 1.5	1, 41 0.7	1, 07 1.8	1, 08 7.1
To tal nt set cu rre as s	5, 29 0.4	5, 60 4.5	5, 58 8.1	5, 13 5.2
To tal set as s	11 02 5.8 ,	10 51 5.8 ,	10 49 1.0 ,	9, 88 2.1

No	Lia bil itie nd uit te s a eq y	30 / 6 20 16	31 / 12 20 15	30 / 6 20 15	31 / 12 20 14
6	Sh ita l	25 5.0	25 5.0	25 5.0	25
	are ca p He dg tio e t ran sac n r ese rve	-6. 8	-12 .4	-21 .1	5.0 -20 .0
	Ex cha dju stm ent e a re ser ve	23 7.8	26 3.1	34 5.0	15 3.7
	ng Re tai ned rni ea ng s	6, 25 0.2	5, 89 5.1	5, 75 8.8	5, 47 8.2
	Pro ed div ide nd pos	0.0	25 5.0	0.0	20 4.0
	Sh of uit ibu tab le the ttr to t c are eq y a pa ren om pa ny	6, 73 6.2	6, 65 5.8	6, 33 7.7	6, 07 0.9
	No rol lin int ont sts n-c g ere	20 .1	20 .7	28 .5	2.9
	To tal uit eq y	6, 75 6.3	6, 67 6.5	6, 36 6.2	6, 07 3.8
	De fer red ta x	20 2.7	14 7.9	14 3.4	15 1.3
	Pe nsi nd sim ilar lia bil itie on s a s	10 8.6	10 6.3	11 2.3	11 3.1
5	Cre dit in sti ion tut s	39 4.1	68 6.6	76 1.6	85 8.4
	No t li ab ilit ies n-c urr en	70 5.4	94 0.8	1, 01 7.3	1, 12 2.8
5	Cu rtio f n nt nt de bt rre po n o on -cu rre	16 5.5	19 0.6	20 1.7	23 8.1
5	Cre dit in sti ion tut s	54 7.2	10 9.4	26 4.3	77 .6
	Tra de ab les d o the ble pay an r p aya s	2, 81 1.0	2, 56 7.1	2, 48 0.6	2, 23 8.6
	In e t com ax	40 .4	31 .4	16 0.9	13 1.2
	Cu lia bil itie nt rre s	3, 56 4.1	2, 89 8.5	3, 10 7.5	2, 68 5.5
	To tal lia bil itie s	4, 26 9.5	3, 83 9.3	4, 12 4.8	3, 80 8.3
	To tal lia bil itie nd uit s a eq y	11 02 5.8 ,	10 51 5.8 ,	10 49 1.0 ,	9, 88 2.1

Notes without reference 7 & 9.

Cash flow statement

No te	Q 2 20 16	Q 2 20 15	YT D 20 16	YT D 20 15	20 15 To tal
Pro fit bef ta ore x Ad jus fo ing ite of tm ent rat r o pe ms a no n h n atu et cas re, c.:	24 6.5	16 0.1	40 3.3	34 9.2	87 1.1
De cia tio nd im irm lo ent pre n a pa sse s	10 3.3	96 .4	20 2.5	19 1.0	38 3.0
Oth tin ite t er op era g ms , ne	0.8	-16 .6	-37 .4	26 .0	72 .9
Pro vis ion s	-0. 4	0.7	-0. 3	0.5	0.6
( ) a Pro fit/ los fte x in iat d r ta s as soc es an
jo int ntu ve res	-33 .1	-27 .7	-47 .4	-46 .9	-86 .2
Fin cia l in an com e	-11 .2	-4. 7	-17 .5	-28 .2	-50 .2
Fin cia l ex an pe nse s	13 .1	23 .0	33 .7	28 .4	96 .6
Ca flo fr sh tin cti vit ies be ws om op era g a
for in rki ita ha l e c ng es wo ng ca p	31 9.0	23 1.2	53 6.9	52 0.0	1, 28 7.8
Ch in rki ita l an ges wo ng cap	10 9.1	-15 0.7	49 .5	-22 7.0	19 8.1
Ca flo fr tin cti vit ies sh ws om op era g a	42 8.1	80 .5	58 6.4	29 3.0	1, 48 5.9
Int st inc ive d ere om e r ece	4.0	0.2	.3 11	14 .5	29 .4
Int id st ere exp ens es pa	-9. 0	-14 .0	-21 .3	-28 .4	-53 .6
Ca sh flo fr din tiv itie ws om or ary ac s	42 3.1	66 .7	57 6.4	27 9.1	1, 46 1.7
aid In ta co me x p	-50 .6	-14 .5	-94 .4	.2 -55	-29 0.5
Ca flo fr tin cti vit ies sh ws om op era g a	37 2.5	52 .2	48 2.0	22 3.9	1.2 1, 17
Pu rch of int ibl ts ase an g e a sse	-0. 2	-0. 5	9 -1.	-0. 9	-61 .9
Pu rch of ert lan t a nd uip nt ase pr op y, p eq me	-14 7.7	-10 6.6	-29 2.9	-16 4.8	-35 4.4
Sa le o f p lan nd uip ert t a nt rop y, p eq me	0.4	0.0	0.5	0.3	16 .2
4 Ac isit ion of ise ter qu en pr s	14 .1	0.0	-55 1.0	-19 .5	-12 4.7
Ac isit ion of nd jo int ntu qu as s. a ve res	-13 .3	0.0	-13 .3	0.0	-36 .7
Re cei ved div ide nd fro oci ate m ass s	0.0	0.0	0.8	0.0	49 .2
Ad dit ion s/ dis als of he r fi ial ot pos na nc as
set s	-2. 2	0.9	-29 .7	0.4	-57 .0
Ca sh flo fr in sti tiv itie ws om ve ng ac s	-14 8.9	-10 6.2	-88 7.5	-18 4.5	-56 9.3

te	Q 2 20 16	Q 2 20 15	YT D 20 16	YT D 20 15	20 15 To tal
De bt fin cin an g:
Re of lia bil itie nt ent pay me no n-c urr s Pro ds fro inc ing fi ent cee m urr no n-c urr	-14 3.6	-10 2.0	-17 1.5	-18 9.8	-27 5.6
nci al lia bil itie na s	7.3	35 .3	23 .3	48 .5	70 .2
(re ) o In f b k o rdr aft nt cre ase pay me an ve s	-29 2.9	62 .1	-20 3.6	19 1.0	46 .3
Sh ho lde are rs: Ca ita l co ibu tio c. b ol ntr et ntr p ns, y n on -co
lin int sts g ere	0.0	14 .1	0.0	14 .1	14 .9
Div ide nd id pa	-23 7.7	-18 8.8	-23 7.7	-18 8.8	-18 8.8
Pu rch /sa le o f tr sh et ase eas ury are s, n	-13 .1	0.0	27 .8	9.4	9.4
Ca sh flo fr fin cin cti vit ies ws om an g a	-68 0.0	-17 9.3	-56 1.7	-11 5.6	-32 3.6
Ca sh flo fo r th eri od ws e p	-45 6.4	-23 3.3	-96 7.2	-76 .2	27 8.3
Ca sh d c ash uiv ale 1 Ja nts at an eq n.	89 2.5	1, 33 6.9	1, 41 0.7	1, 08 7.1	1, 08 7.1
Va lue ad jus of sh d c h e iva tm ent ca an as qu
len ts	5.4	-31 .8	-2. 0	60 .9	45 .3
Ca sh d c h e iva len 30 Ju ts at an as qu ne	44 1.5	1, 07 1.8	44 1.5	1, 07 1.8	1, 41 0.7

Statement of changes in equity

	Sh ital are ca p	He dge ctio tra nsa n res erv e	Exc han ge adj ust nt me res erv e	Ret ain ed nin ear gs	Pro ed pos div ide nd	Tot al	No rol ling ont n-c inte ts res	To tal uity eq
Equ ity 1 J 20 15 at anu ary	255 .0	-20 .0	15 3.7	5,4 78. 2	20 4.0	6,0 70. 9	2.9	6,0 73. 8
Oth hen siv e in er c om pre com e
dju of for eig idia ries Ex cha rat stm ent ubs nge e a n s	0.0	0.0	19 1.3	0.0	0.0	19 1.3	1.0	19 2.3
Va lue ad j. o f he dg ing ins ise d tru nts me rec ogn	0.0	-4. 4	0.0	0.0	0.0	-4. 4	0.0	-4. 4
H edg ing ins nsf ed of sal tru nts tra to c ost me err es	0.0	0.3	0.0	0.0	0.0	0.3	0.0	0.3
H edg ing ins tru nts tra nsf ed to f ina nci als me err	0.0	1.7	0.0	0.0	0.0	1.7	0.0	1.7
Ot her reh ive inc e fr iate nd JVs co mp ens om om as soc s a	0.0	0.0	0.0	-0. 7	0.0	-0. 7	0.0	-0. 7
Ot her ad jus tm ent uity on eq	0.0	0.0	0.0	1.3	0.0	1.3	0.0	1.3
Ta the reh ive inc x o n o r co mp ens om e	0.0	1.3	0.0	-0. 4	0.0	0.9	0.0	0.9
Pr ofit for the riod pe	0.0	0.0	0.0	25 2.5	0.0	25 2.5	-1. 6	250 .9
Tot al r ise d c hen siv e in eco gn om pre com e	0.0	-1. 1	19 1.3	25 2.7	0.0	44 2.9	-0. 6	44 2.3
Tra ctio wit h th nsa ns e o wn ers
Sh -ba sed ent t are pa ym , ne	0.0	0.0	0.0	3.3	0.0	3.3	0.0	3.3
D ivid end dis trib d ute	0.0	0.0	0.0	15 .2	-20 4.0	-18 8.8	0.0	-18 8.8
on/ f no Ad diti dis al o ont rol ling int sts pos n-c ere	0.0	0.0	0.0	0.0	0.0	0.0	26 .2	26 .2
Tr sh s b ht/s old eas ury are oug	0.0	0.0	0.0	9.4	0.0	9.4	0.0	9.4
ctio wit Tra h t he nsa ns ow ner s	0.0	0.0	0.0	27. 9	-20 4.0	-17 6.1	26 .2	-14 9.9
Equ ity 30 Ju 201 5 at ne	255 .0	-21 .1	34 5.0	5,7 58. 8	0.0	6,3 37. 7	28 .5	6,3 66. 2
Equ ity 1 J 20 16 at anu ary	255 .0	-12 .4	26 3.1	5,8 95. 1	25 5.0	6,6 55. 8	20 .7	6,6 76. 5
Oth hen siv e in er c om pre com e
Ex cha rat dju stm ent of for eig ubs idia ries nge e a n s	0.0	0.0	-25 .3	0.0	0.0	-25 .3	0.1	-25 .2
Va lue ad j. o f he dg ing ins ise d tru nts me rec ogn	0.0	7.2	0.0	0.0	0.0	7.2	0.0	7.2
H edg ing ins nsf ed of sal tru nts tra to c ost me err es	0.0	-0. 8	0.0	0.0	0.0	-0. 8	0.0	-0. 8
H edg ing ins tru nts tra nsf ed to f ina nci als me err	0.0	0.5	0.0	0.0	0.0	0.5	0.0	0.5
Ot her reh ive inc e fr iate nd JVs co mp ens om om as soc s a	0.0	0.0	0.0	-1. 5	0.0	-1. 5	0.0	-1. 5
Ot her ad jus tm ent uity on eq	0.0	0.0	0.0	-4. 7	0.0	-4. 7	0.0	-4. 7
Ta the reh ive inc x o n o r co mp ens om e	0.0	-1. 3	0.0	0.2	0.0	-1. 1	0.0	-1. 1
Pr ofit for the riod pe	0.0	0.0	0.0	30 9.4	0.0	30 9.4	-0. 7	30 8.7
Tot al r ise d c hen siv e in eco gn om pre com e	0.0	5.6	-25 .3	30 3.4	0.0	28 3.7	-0. 6	28 3.1
Tra ctio wit h th nsa ns e o wn ers
Sh -ba sed ent t are pa ym , ne	0.0	0.0	0.0	4.5	0.0	4.5	0.0	4.5
Ta har e-b d p ent x o n s ase aym	0.0	0.0	0.0	2.1	0.0	2.1	0.0	2.1
D ivid end dis trib ute d	0.0	0.0	0.0	3 17.	-25 5.0	-23 7.7	0.0	-23 7.7
Tr sh s b ht/s old eas ury are oug	0.0	0.0	0.0	27. 8	0.0	27. 8	0.0	27. 8
ctio wit Tra h t he nsa ns ow ner s	0.0	0.0	0.0	51 .7	-25 5.0	-20 3.3	0.0	-20 3.3
Equ ity 30 Ju 201 6 at ne	255 .0	-6. 8	23 7.8	6,2 50. 2	0.0	6,7 36. 2	20 .1	6,7 56. 3

1 SEGMENT REPORTING

		Fib ert ex	Fib ert ex
Tot al r ble s Y TD 20 16 rta ent epo se gm	Bio Ma r	Per al C son are	No nw ove ns	Hy dra /Sp ecm a	GP V	Tot al
Ext al r ern eve nue	3,4 31. 9	879 .7	69 5.9	91 9.0	217 .9	6,1 44. 4
Int ra- gro up rev enu e	0.0	12 .0	3.6	0.0	0.1	15. 7
Seg nt r me eve nue	3,4 31. 9	89 1.7	69 9.5	91 9.0	218 .0	6,1 60. 1
Dep iati and im irm ent rec on pa	68. 4	58 .0	40 .4	28 .6	5.8	201 .2
EB IT	133 .0	13 2.1	51 .5	59 .2	6.9	382 .7
Seg nt a ts me sse	4,9 34. 8	1,8 42. 8	1,5 97. 5	1,3 38. 9	58 5.3	10, 299 .3
Inc lud ing odw ill go	779 .3	99 .1	12 1.3	150 .9	0.0	1,1 50. 6
Equ ity inv in oci nd jo int est nts ate tur me ass s a ven es	100 .4	0.0	0.0	2.5	0.0	102 .9
Seg nt l iab iliti me es	2,5 29. 8	95 1.9	1,0 6 77.	96 3.1	2.6 47	5,9 95. 0
Wo rkin ital g c ap	669 .7	271 .5	38 3.6	49 0.5	178 .0	1,9 93. 3
NI BD	242 .8	529 .0	730 .5	53 0.9	26 6.5	2,2 99. 7
Cas h fl s fr ting tivi ties ow om op era ac	177 .3	16 1.7	55 .6	40 .6	18 .0	453 .2
Cas h fl s fr inv est ing tivi ties ow om ac	-14 9.7	-11 3.0	-47 .8	-50 3.0	-1. 7	-81 5.2
Cas h fl s fr fin ing tivi ties ow om anc ac	-23 4.0	-34 .2	9.0	50 0.8	-17 .1	224 .5
Cap ital ditu re * ex pen	107 .9	3.3 11	.8 47	43 1.5	6.2	706 .7
Ave ber of loy rag e n um em p ees	885	53 2	79 3	99 9	52 6	3,7 35

		Fib ert ex	Fib ert ex
Tot al r ble s Y TD 20 15 rta ent epo se gm	Bio Ma r	Per al C son are	No nw ove ns	Hy dra	GP V	Tot al
Ext al r ern eve nue	4,1 39. 4	81 5.6	63 0.0	29 9.0	-	5,8 84. 0
Int ra- gro up rev enu e	0.0	16 .2	3.9	0.0	-	20. 1
Seg nt r me eve nue	4,1 39. 4	83 1.8	63 3.9	29 9.0	-	5,9 04. 1
Dep iati and im irm ent rec on pa	74. 0	71. 3	37 .0	7.3	-	189 .6
EB IT	127 .1	97 .8	52 .2	35 .2	-	312 .3
Seg nt a ts me sse	5,6 64. 1	1,8 22. 7	1,4 35. 5	39 7.7	-	9,3 20. 0
Inc lud ing odw ill go	778 .0	99 .1	12 1.7	0.0	-	998 .8
Equ ity inv in oci nd jo int est nts ate tur me ass s a ven es	42. 1	0.0	0.0	0.0	-	42. 1
Seg nt l iab iliti es me	3,3 05. 0	1,0 37. 1	94 0.1	22 1.3	-	03. 5,5 5
Wo rkin ital g c ap	1,2 60. 0	225 .1	34 9.1	188 .3	-	2,0 22. 5
NI BD	685 .8	56 0.3	59 2.8	10 1.2	-	1,9 40. 1
Cas h fl s fr ting tivi ties ow om op era ac	-10 1.4	219 .5	50 .6	39 .5	-	208 .2
Cas h fl s fr inv est ing tivi ties ow om ac	-43 .1	-16 .3	-12 0.6	-4. 6	-	-18 4.6
Cas h fl s fr fin ing tivi ties ow om anc ac	-30 .1	-19 7.7	11 5.4	-49 .1	-	-16 1.5
Cap ital ditu re * ex pen	43. 1	16 .6	10 1.1	4.6	-	165 .4
Ave ber of loy rag e n um em p ees	905	50 9	67 3	24 0	-	2,3 27

* Capital expenditure consists of additions of intangible assets and property, plant and equipment, including additions on acquisition

1 SEGMENT REPORTING (CONTINUED)

Schouw & Co. is an industrial conglomerate consisting of a number of sub-groups operating in various industries and independently of the other sub-groups. The group management monitors the financial developments of all material sub-groups on a regular basis. Based on management control and financial management, Schouw & Co. has identified five reporting segments, which are BioMar, Fibertex Personal Care, Fibertex Nonwovens, Hydra/Specma and GPV. GPV forms a new segment effective from 1 April 2016, although the company currently does not meet the size requirements that Schouw & Co. has previously applied as a criterion for its reporting segments.

Included in the reporting segments are revaluations of assets and liabilities made in connection with Schouw & Co.'s acquisition of the segment in question and consolidated goodwill arising as a result of the acquisition. The operational impact of depreciation/amortisation and write-downs on the above revaluations or goodwill is also included in the profit or loss presented for each reporting segment.

All inter-segment transactions were made on an arm's length basis.

Reconciliation of consolidated revenue, EBIT, assets and liabilities

YT D 2 01 6	Gro up rev en ue	EB IT	As set s	Lia bil itie s
Re rtin nts po g s eg me	6, 16 0.1	38 2.7	10 29 9.3 ,	5, 99 5.0
No ing ort ent n-r ep se gm s	3.8	2.1	17 2.0	62 .2
Th nt e p are com pa ny	3.3	-12 .7	7, 25 7.6	52 1.4
Gro eli mi ion nat et up c.	-19 .1	0.0	-6, 70 3.1	-2, 30 9.1
To tal	6, 14 8.1	37 2.1	11 02 5.8 ,	4, 26 9.5

YT D 2 01 5	Gro up rev en ue	EB IT	As set s	Lia bil itie s
Re rtin nts po g s eg me	90 5, 4.1	31 2.3	9, 32 0.0	50 3.5 5,
No ing ort ent n-r ep se gm s	3.7	1.9	19 9.5	45 .0
Th nt e p are com pa ny	2.7	-11 .7	6, 45 6.3	11 8.5
Gro eli mi ion nat et up c.	-22 .6	0.0	-5, 48 4.8	-1, 54 2.2
To tal	5, 88 7.9	30 2.5	10 49 1.0 ,	4, 12 4.8

The data on revenue by geography are based on customers' geographical location. The specification shows individual countries that account for more than 5% of the Group in terms of revenue or assets. As Schouw & Co.'s consolidated revenue is generated in some 100 different countries, a very large proportion of the revenue derives from the 'Other' category.

Revenue by country:

Revenue by segments:

2 COSTS

Share-based payment: Share option programme

The company maintains an incentive programme for the Management and senior managers, including the executive management of subsidiaries. The programme entitles participants to acquire shares in Schouw & Co. at a price based on the officially quoted price at around the time of grant plus a premium (2016 allocation: 3% p.a.) from the date of grant until the date of exercise.

Ou din tio tst an g o p ns	Ma ent nag em	Ot he r	To tal
Gra d in 20 12 nte	40 00 0 ,	0	40 00 0 ,
Gra 20 13 nte d in	40 00 0 ,	00 0 44 ,	84 00 0 ,
Gra 20 nte d in 14	00 0 55 ,	0, 00 0 15	20 00 0 5,
Gra d in 20 15 nte	55 00 0 ,	17 2, 00 0	22 7, 00 0
Ou din tio in al 31 De mb tst tot at an g o p ns ce er
20 15	19 0, 00 0	36 6, 00 0	55 6, 00 0
Gra d in 20 16 nte	55 00 0 ,	19 9, 00 0	25 4, 00 0
( ) Ex ise d fro he sh tio d in 20 12 m t nte erc are op ns gra	-40 00 0 ,	0	-40 00 0 ,
( ) Ex ise d fro he sh tio d in 20 13 m t nte erc are op ns gra	0	-44 00 0 ,	-44 00 0 ,
( ) Ex ise d fro he sh tio d in 20 14 m t nte erc are op ns gra	0	-96 00 0 ,	-96 00 0 ,
Ou din tio in al 30 Ju 20 16 tst tot at an g o p ns ne	20 5, 00 0	42 5, 00 0	63 0, 00 0

	Ex ise d f Ex erc rom	ise d f Ex erc rom	ise d f erc rom
Op tio rci sed in 20 16 ns exe :	20 14 ant gr	20 13 ant gr	20 12 nt gra
Ex ise d n be f s ha erc um r o res	96 00 0 ,	44 00 0 ,	40 00 0 ,
Av rci ice in DK K era ge exe se pr	27 2.9 9	19 9.2 7	14 8.3 0
Av sh ice in DK K o rci era ge are pr n e xe se	40 1.1 6	40 1.6 8	40 0.0 0
Gro 's c ash eds in DK K m illio up pr oce n	26 .2	8.8	5.9

The expected volatility is calculated as 12 months' historical volatility based on average prices. If the optionholders have not exercised their share options within the period specified, the share options will lapse without any compensation to the holders. Exercise of the share options is subject to the holders being in continuing employment during the above-mentioned periods. If the share option holder leaves the company's employ before a share option vests, the holder may in some cases have a right to exercise the share options early during a four-week period following Schouw & Co.'s next following profit announcement. In the event of early exercise, the number of share options will be reduced proportionately.

The following assumptions were applied in calculating the fair value of outstanding share options at the date of grant:

Pre tio for th e f air lue su mp ns va :	20 16 nt gra	20 15 nt gra	20 14 ant gr	20 13 ant gr
Ex ted lat ilit pec vo y	31 .50 %	27 .62 %	26 .12 %	25 .36 %
Ex ted te pec rm	48 ths m	48 ths m	48 ths m	48 ths m
Mo div ide d p sh ** st ent rec er are	DK K 8	DK K 6	DK K 5	DK K 4
Ris k-f int st rat ree ere e	0.1 0%	0.0 0%	0.6 5%	0.6 2%
Oth inf ati ard ing th tio er orm on reg e o p ns:
K * Str ike ice in DK pr	45 0.8 8	37 9.5 0	29 7.5 0	21 1.6 3
n Fa ir v alu e in DK K p tio er op	69 65 ,	40 .99	30 .87	20 .19
ir v e in in illio ** Fa alu to tal DK K m ns	17 .7	9.3	6.9	4.4
Ca n b rci sed fro e e xe m	Ma rch 20 19	Ma rch 20 17	Ma rch 20 16	Ma rch 20 15
Ca n b rci sed to e e xe	Ma rch 20 20	Ma rch 20 19	Ma rch 20 18	Ma rch 20 17

*) On exercise after four years (at the latest possible date) **) At the date of grant

3 RECEIVABLES - CURRENT

	30 / 6 2 01 6	30 / 6 2 01 5
Tra de eiv ab les rec	2, 57 8.3	2, 66 5.6
Oth eiv ab les nt er cu rre rec	23 1.5	18 0.9
Ac als d d efe d in cru an rre co me	37 .9	10 .4
Re iva ble t ce s c urr en	2, 84 7.7	2, 85 6.9

Trade receivables by portfolio company:

	( ) Du e b day etw ee n s
30 / 6 2 01 6	No t d ue	1-3 0	31 -90	>9 1	To tal
Tra de eiv ab les sid d t o b e im ire d t c rec no on ere pa	2, 15 7.6	23 1.9	84 .4	15 .1	2, 48 9.0
Tra de eiv ab les in div idu all d t o b e im rec y a sse sse
ire d pa	19 .7	31 .9	26 .2	19 6.6	27 4.4
Tra de eiv ab les in tot al rec	2, 17 7.3	26 3.8	11 0.6	21 1.7	2, 76 3.4
irm iva Im ent lo n t rad ble pa sse s o e r ece s	-10 .3	-2. 0	-3. 5	-16 9.3	-18 5.1
iva Tra de ble et re ce s n	2, 16 7.0	26 1.8	10 7.1	42 .4	2, 8.3 57
Pro rtio f th l re cei ble hic h is ted e t ota po n o va s w ex pec
be tle d to set					93 .3%
Im irm ent nta pa pe rce ge	0.5 %	0.8 %	3.2 %	80 .0%	6.7 %
		Du e b	( day etw ee n	) s
30 / 6 2 01 5	No t d ue	1-3 0	31 -90	>9 1	To tal
Tra de eiv ab les sid d t o b e im ire d t c rec no on ere pa	2, 15 2.4	19 3.5	95 .0	42 .4	2, 48 3.3
Tra de eiv ab les in div idu all d t o b e im rec y a sse sse
ire d pa	63 .6	41 .7	43 .8	23 2.4	38 1.5
Tra de eiv ab les in tot al rec	2, 21 6.0	23 5.2	13 8.8	27 4.8	2, 86 4.8
Im irm ent lo n t rad iva ble pa sse s o e r ece s	-1. 1	-1. 1	-10 .6	-18 6.4	-19 9.2
Tra de iva ble et re ce s n	2, 21 4.9	23 4.1	12 8.2	88 .4	2, 66 5.6
Pro rtio f th l re cei ble hic h is ted e t ota va s w po n o ex pec
be tle d to set					93 .0%

	30 / 6 2 01 6	30 / 6 2 01 5
Im irm t lo ad eiv ab les tr pa en ss es on e r ec
Im irm lo t 1 Ja ent pa sse s a nu ary	-20 6.8	-18 1.9
Ex cha dju stm ent ng e a s	0.0	-3. 2
Ad dit ion uis itio s o n c om pa ny acq ns	6 -1.	0.0
d im irm Re ent lo ve rse pa sse s	1.5	0.1
Im irm lo s f the rio d ent pa sse or pe	-17 .3	-15 .4
Re alis ed los s	39 .1	1.2
Im irm t lo pa en ss es	-18 5.1	-19 9.2

A total of 9.9% (2015: 13.3%) of receivables at the balance sheet date were impaired to a greater or lesser extent. There is a continual follow-up on overdue debtors.

4 ACQUISITIONS

	Sp ec ma	GP V	30 / 6 2 01 6	30 / 6 2 01 6
Int ibl ts an g e a sse	17 7.7	0.0	17 7.7	4.7
Pro lan nd uip rty t a nt pe , p eq me	76 .5	18 6.9	26 3.4	52 .9
Fin cia l as set an s	4.2	3.7	7.9	0.0
Inv ent ori es	23 5.5	18 7.7	42 3.2	21 .4
cei Re ble va s	20 4.0	9.3 14	35 3.3	18 .0
Ta t x a sse	0.8	10 .8	11 .6	0.0
Ca sh d c ash uiv ale nts an eq	60 .9	28 .9	89 .8	0.5
Cre dit in sti ion tut s	-14 0.6	-30 8.0	-44 8.6	-16 .2
De fer red ta x	-54 .1	-1. 5	-55 .6	0.0
Pro vis ion s	-4. 3	0.0	-4. 3	0.0
Tra de ab les pay	-99 .6	-97 .6	-19 7.2	-17 .1
Oth lia bil itie er s	-74 .1	-62 .1	-13 6.2	-17 .2
Ne ire d t a ets ss ac qu	38 6.9	98 .1	48 5.0	47 .0
Of wh ich ino rity int sts m ere	0.0	0.0	0.0	-12 .2
Cu of of nt lue ig ina l sh uit rre va or are eq y	0.0	0.0	0.0	-12 .1
ill Ba dw	0.0	0.0	0.0	-2. 7
Go odw ill	15 5.8	0.0	15 5.8	0.0
Co st	54 2.7	98 .1	64 0.8	20 .0
Of wh ich sh d c ash uiv ale nts ca an eq	-60 .9	-28 .9	-89 .8	-0. 5
Ca sh tal t to cos	48 1.8	69 .2	55 1.0	19 .5

The Group acquired Specma AB, a hydraulics business based in Sweden, on 4 January 2016 for a cash consideration of DKK 481.8 million.

Specma specialises in the production and sales of hydraulics systems and components for local and international OEM customers. Headquartered in Gothenburg, Sweden, Specma generated revenue of DKK 1.1 billion in 2015. The company employs 750 people, most of whom are based in Sweden but it also has a significant presence in Finland, the UK, China and Poland. Specma operates two independent business areas: a Global division that serves major international OEM customers and a Nordic division that serves a number of local OEM and aftermarket customers in Sweden and Finland.

The transaction has made Hydra/Specma the largest player in specialist hydraulics technology in the Nordic region, and the company serves OEM customers as well as the wind power, marine and offshore sectors.

In connection with the purchase price allocation relating to the acquisition of Specma, goodwill was calculated at DKK 155.8 million. Goodwill represents the value of labour, new customers, synergies and deferred tax on those assets.

The acquisition of Specma involved acquisition costs of DKK 3.7 million. Most of the acquisition costs were recognised as administrative expenses in the financial statements for 2015.

Effective 1 April 2016, the Group acquired GPV for a cash consideration of DKK 69.2 million.

GPV is Denmark's largest EMS (Electronic Manufacturing Services) company and manufactures lowvolume specialist electronics and advanced mechanics components with a high degree of flexibility, selling its products to currently some 300 international customers.

A preliminary purchase price allocation prepared on the acquisition of GPV has led to a write-down of buildings at the company's Thai production unit and other minor revaluations. Goodwill has been calculated at DKK 0. Transaction costs incurred in connection with the acquisition of GPV amount to DKK 4.6 million, of which DKK 3.6 million was recognised as administrative expenses in the 2015 financial statements.

Had GPV been recognised as from 1 January 2016, revenue would have been DKK 209 million higher and the full-year EBIT would have been DKK 14 million higher.

5 INTEREST-BEARING DEBT

Percentage breakdown of interest-bearing debt by currency:

Consolidated interest-bearing debt since 2011:

The weighted average effective rate of interest at 30 June 2016 was 2.9% (30 June 2015: 3.0%).

6 SHARE CAPITAL

Tre sh asu ry are s	Nu mb of sh er are s	Co in D KK illio st m n	Pe of sh nta rce ge are ita l cap
1 J 20 15 an ua ry	2, 00 9, 93 3	34 9.7	7.8 8%
Mo in H1 20 15 nts ve me
Sh tio are op n p rog ram me	-17 7, 00 0	-21 .5	-0. 69 %
Ad dit ion s	73 19 7 ,	23 .8	0.2 9%
30 Ju 20 15 ne	1, 90 6, 13 0	35 2.0	7.4 8%
Mo in H2 20 15 nts ve me No ne
31 De mb 20 15 ce er	1, 90 6, 13 0	35 2.0	7.4 8%
Mo in Q 2 2 01 6 nts ve me Sh tio are op n p rog ram me	-18 0, 00 0	-21 .7	% -0. 71
Ad dit ion s	34 80 0 ,	13 .1	0.1 4%
30 20 16 Ju ne	76 0, 93 0 1,	34 3.4	6.9 1%

The share capital consists of 25,500,000 shares with a nominal value of DKK 10 each. All shares rank equally. The share capital is fully paid up.

Schouw & Co. has been authorised by the shareholders in general meeting to acquire up to 5,100,000 treasury shares, equal to 20.0% of the share capital. The authorisation is valid until 1 April 2021.

The company acquires treasury shares for allocation to the Group's share option programmes.

A total of 180,000 shares held in treasury were used in connection with options exercised in 2016. The shares had an aggregate fair value of DKK 72.2 million at the time of exercise.

The Group's holding of treasury shares had a market value of DKK 652.4 million at 30 June 2016.

The share capital has remained unchanged in the past five years.

7 FAIR VALUE OF CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES

30/6 2016 31/12 2016 30/6 2015

Fin cia l a ets an ss De riv ati fin cia l in o h ed fut sh flo str ent s t ve an um ge ure ca ws –
lev el 2	24 .2	10 .6	3.8
Se riti red fa ir v alu le l 3 at cu es me asu e – ve	11 5.7	84 .0	12 5.3
Fin cia l li ab ilit ies an De riv ati fin cia l in o h ed fut sh flo str ent s t ve an um ge ure ca ws –
lev el 2	30 .6	16 .8	29 .3

Securities measured at fair value through other comprehensive income – level 3 amounted to DKK 84.0 million at the beginning of the year. The change for the reporting period was due to a capital injection in Salmones Austral of DKK 30.4 million, an addition of other securities of DKK 2.5 million, foreign exchange adjustments of DKK –0.8 million and impairment losses of DKK 0.4 million. Due to the capital injection, the ownership interest in Salmones Austral was increased from 13.6% to 18.4%.

The Group uses interest rate swaps and forward currency contracts to hedge fluctuations in interest rate levels and foreign exchange rates. Forward exchange contracts and interest rate swaps are valued using generally accepted valuation techniques based on relevant observable swap curves and exchange rates. The fair values applied are calculated mainly by external sources on the basis of discounted future cash flows.

The fair value of derivative financial instruments is calculated by way of valuation models such as discounted cash flow models. Anticipated cash flows for individual contracts are based on observable market data such as yield curves and exchange rates. In addition, fair values are based on nonobservable market data, including exchange rate volatilities, or correlations between yield curve, exchange rates and credit risks. Non-observable market data account for an insignificant part of the fair value of the derivative financial instruments at the end of the reporting period.

Fair value hierarchy

• Level 1 Listed shares, stated at market value of shareholding No items are currently classified at this level.
• Level 2 Financial instruments valued by external credit institutions using generally accepted valuation techniques on the basis of observable data.
• Level 3 Unlisted shares, stated at estimated value.

8EARNINGS PER SHARE (DKK)

	Q 2 2 01 6	Q 2 2 01 5	D 2 01 6 YT	D 2 01 YT 5
Sh of th rof it f the rio d a ibu ttr ta are e p or pe
ble sh ho lde of Sc ho & Co to are rs uw	19 2.4	12 8.0	30 9.4	25 2.5
of Av mb sh era ge nu er are s	25 50 0, 00 0 ,	25 50 0, 00 0 ,	25 50 0, 00 0 ,	25 50 0, 00 0 ,
Av mb of sh tre era ge nu er asu ry are s	-1, 74 6, 04 2	-1, 90 6, 13 0	-1, 80 4, 15 2	-1, 94 3, 73 0
Av mb of din ha tst era ge nu er ou an g s res	23 75 3, 95 8 ,	23 59 3, 87 0 ,	23 69 5, 84 8 ,	23 55 6, 27 0 ,
Av dil uti eff of din ect tst era ge ve ou an g
sh tio are op ns	45 21 8 ,	87 69 2 ,	47 18 0 ,	71 31 1 ,
Dil d a be f o din ute uts tan ve rag e n um r o g
sh are s	23 79 9, 6 17 ,	23 68 56 2 1, ,	23 3, 02 8 74 ,	23 62 58 7, 1 ,
Ea rni ha of DK K 1 0 ngs pe r s re	8.1 0	5.4 3	13 .06	10 .72
Dil d e ing sh of DK K 1 0 ute arn s p are er	8.0 8	5.4 1	13 .03	10 .69

9 RELATED PARTY TRANSACTIONS

Under Danish legislation, Givesco A/S, Svinget 24, DK-7323 Give, members of the Board of Directors, the Management Board and senior management as well as their family members are considered to be related parties. Related parties also comprise companies in which the individuals mentioned above have material interests. Related parties also comprise subsidiaries, joint arrangements and associates, in which Schouw & Co. has control, significant influence or joint control of as well as members of the boards of directors, management boards and senior management of those companies.

Management's share option programmes are set out in note 2.

	YT D 2 01 6	YT D 2 01 5
Jo int Ve ntu res :
Du rin the fin cia l ye th e G ive d c ltin fee f g an ar, rou p r ece on su g s o	0.0	0.2
As iat soc es:
Du rin the fin cia l ye th e G ive d m fe f ent g an ar, rou p r ece an ag em e o
e G Du rin the fin cia l ye th old ods of g an ar, rou p s go	19 .3	2.7
e G Du rin the fin cia l ye th bo th ods of g an ar, rou p ug go	0.4	1.4
e G Du rin the fin cia l ye th ive d in ter est in f g an ar, rou p r ece com e o	0.1	0.3
At 30 ju the Gr had eiv ab le o f ne ou p a rec	28 .4	10 .2
At 30 ju the Gr had de bt of ne ou p	0.0	0.1
Du rin the fin cia l ye th e G ive d d ivid ds of g an ar, rou p r ece en	0.8	0.0

Other than as set out above, no transactions were made during the year with related parties.

Management statement

The Board of Directors and Executive Management today considered and approved the interim report for the period 1 January to 30 June 2016.

The interim report, which has been neither audited nor reviewed by the company's auditors, was prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the EU and Danish disclosure requirements for listed companies.

In our opinion, the interim financial statements give a true and fair view of the Group's assets and liabilities and financial position at 30 June 2016 and of the results of the Group's operations and cash flows for the period 1 January to 30 June 2016.

Furthermore, in our opinion the management's report includes a fair review of the development and performance of the business, the results for the period and the Group's financial position in general and describes the principal risks and uncertainties that it faces.

Aarhus, 11 August 2016

Aktieselskabet Schouw & Co.

Chr. Filtenborgs Plads 1 DK-8000 Aarhus C, Denmark T +45 86 11 22 22 www.schouw.dk schouw@schouw.dk Company reg. (CVR) no 63965812

Jens Bjerg Sørensen Peter Kjær President

Board of Directors

Jørn Ankær Thomsen Jørgen Wisborg Erling Eskildsen Chairman Deputy Chairman

Niels Kristian Agner Kjeld Johannesen Agnete Raaschou-Nielsen