Business Review 2015/ 1

BUSINESS REVIEW 2015 Business Review 2015/ 2 Business Review 2015/ 3

OUR MISSION EXPERT CARE

Wrist Ship Supply is the From offices around the globe world’s leading ship and all Wrist staff takes pride in offshore supplier of provisions making it easy for customers to and stores with a market share receive their supplies – where above 7%. and when requested – effi- ciently and at the best possible Wrist offers a global 24/7 price. service, including handling of owners’ goods, shipping, Our mission is to provide airfreight and related marine expert care to each ship and services that meet the demands offshore location. of international organisations as well as local businesses. Wrist branches Representative o ces

Haugesund Oslo Peterhead Aalborg Aberdeen Copenhagen Great Yarmouth Esbjerg Montreal London Vancouver Rotterdam Hamburg Den Helder Seattle Portland Marseille New York San Francisco / Oakland Piraeus Los Angeles Algeciras

Houston Jacksonville Las Palmas Guangzhou Corpus Christi Dubai Shenzhen Mobile New Orleans Manilla

Male Johor Bahru Singapore Business Review 2015/ 4 Business Review 2015/ 5 SIGNIFICANT STEPS

Net sales Operating margin (EBITDA) Return on invested capital DKKm (%) (%) Acquisition of Garrets to expand Provision Management services Wrist acquired Garrets International in January 2016, a leading provider of provision management services to over 1,000 ships worldwide. Merged with Wrist’s SeaStar subsidiary Garrets will strengthen the global proposition to customers, deploy more re- sources for the development of service tools for the crew, enhancing welfare on board. Leading Scottish offshore supplier acquired North Sea Stores, Aberdeen's oldest stores supplier, joined Wrist in May 2015. The experienced staff joined the Strachans operation in Aberdeen. Expanding newbuilding services During 2015, Wrist stepped-up initial de- liveries to shipyards, primarily in the Asian region, offering ship management companies and ship-owners the capabilities, infrastruc- ture, experience and competitive prices of the world’s largest ship and offshore provider. Dutch offshore supplier joined Wrist After more than 25 years of close coopera- tion, leading Dutch offshore supplier Den Helder Stores was acquired in November 2015 as another step in Wrist’s growth strat- egy, offering a global value proposition in both the offshore and shipping segments. Continued development of global infrastructure Wrist continued developing and improving its storage and warehousing infrastructure in order to increase the operational efficien- cy, including new facilities in Algeciras, Spain, in Corpus Christi in the Mexican Gulf and in Peterhead in Scotland, allowing for additional volumes and optimisation of processes. Business Review 2015/ 6 Business Review 2015/ 7

During 2015 Wrist further consol- idated its position as the world’s largest supplier to ships and offshore locations. Volumes and sales increased more than market growth We achieved a substantial growth in volumes supplied to ships, but saw decreased demand from the badly hit offshore market. Based on our constant focus on customer service, responsiveness to changes in customer demand and competitive sourcing a sub- stantial growth in our supplies to ships more than offset the nega- tive impact from the headwind in the offshore oil & gas industry. Actually, Group revenue increased by 1% in local currencies and even 10% in our reporting cur- rency, reaching DKK 3.7bn. ROBERT KLEDAL CEO Operating "We achieved a substantial growth profits increased in volumes supplied to ships, Due to improved efficiency in all aspects of our operations we but saw decreased demand from increased our gross profit rate from the badly hit offshore market." 24.1 percent in 2014 to 25.4 per- cent in 2015. The operating profit (EBITDA) advanced by 9% from DKK 209m in 2014 to DKK 228m Innovation in Further investments in 2015, and the operating margin remained at a healthy level of 6.2 service offerings in operational percent for 2015. Wrist continued to seek solu- capabilities tions that improve its range and infrastructure of service offerings. We intro- Business platform We continued developing our duced bundled services to ship expanded through global operational capabilities customers, including provision and infrastructure in order to acquisitions management and optimisation improve quality and respon- In order to expand our offering of the last mile logistics, ena- siveness in our customer service further and capture opportunities bling savings in the operations and at the same time to increase in the market, Wrist acquired budget of the ships. Another our operational efficiency. businesses in Aberdeen in the UK initiative was additional in- Development and improvement and Den Helder in the Nether- vestments in ‘Ice-Box’ contain- of storage and warehousing lands, both contributing positive- er inlets, a concept enabling facilities included new facilities ly to sales as well as earnings. stable temperature for several in Algeciras, Corpus Christi and January 2016 we were pleased to days without a power source, Peterhead, allowing for addition- announce our acquisition of Gar- introduced to customers in the al volumes as well as process rets International which provides North Sea, US Gulf and Middle flow optimisation. Enhanced provision management services to East. Further, we initiated the quality management systems SOLID PERFORMANCE more than 1,000 ships worldwide. implementation of a new and were implemented in more loca- Together with Wrist’s subsidiary more efficient procurement and tions, allowing e.g. higher levels SeaStar Management Garrets will stock management tool for ships of quality accreditation. Further, CONTINUED IN 2015 strengthen the global proposition operating on provision manage- in 2015 we initiated the roll out to customers and provide an en- ment contracts. hanced ability to support welfare of a new, global business support

on board as well as more resourc- system, building the platform for es for the development of service additional digitalised customer tools for the crew. and vendor solutions. Business Review 2015/ 8 Business Review 2015/ 9 THE SHIP AND OFFSHORE SUPPLY MARKET

The key determinants of the ship negatively affect the offshore sec- Industry trends and offshore supply market are tor as more oil could put further Transparency and budget control the world fleet developments, pressure on oil prices. are key priorities for the custom- fleet composition and offshore ers, and in the current market oil and gas exploration and Customer demands ensuring optimum efficiency is installations. Wrist and other suppliers bring business-critical. In general, the The market continues its ex- together the interests of cus- interest for e-business compati- pansion, and an annual global tomers in the shipping and bility has increased as have re- market growth of 3 to 4 percent offshore industries on one side quests for quotations and orders is expected in the medium term. and manufacturers and onshore submitted electronically. In the short term the market is wholesalers on the other. The Thus, main trends affecting the expected to grow moderately due customers require consolidation supply industry include: to a negative growth in the off- of broad product ranges, a high shore sector, where especially the service level, and fast delivery • Shipping industry North Sea is experiencing layoffs within short and dynamic time consolidation and reduction in exploration limits, customised logistical • Stronger focus on expenditure. The prospect of the service solutions and e-business operational savings dry bulk market and the contain- offerings. The ability to consoli- er market is depressed after a date product deliveries, delivery • Professionalisation of prolonged period of overcapacity flexibility in logistics and handle procurement meaning that rates are at a low frequent changes in deliveries is • Digitalisation is increasing, level. The tanker market is the distinctive for ship suppliers. In requiring e.g. efficient sys- primary bright spot where rates addition, customers in general tem integration solutions were healthy for the better part of aim to reduce their operational 2015 and is expected to stay at a costs of the ships and bundled • More and more owners sustainable level in 2016. Market services, including provision are entering into provision growth is expected to be highest management and optimisation management and/or ship in the Asian ship supply market. of the last mile logistics, enables management agreements such optimisations. The past year also saw many • The recent decline in oil The key characteristics of uncertainties for world trade, as Ship management companies prices has stemmed down there is still turmoil in Syria and operate an increasing number the demand for drilling rigs – and current trends within – Iran, and the situation with Russia of vessels, and consolidation of and seismic, offshore sup- the shipping and offshore industry following the Crimea conflict with ship owners and managers is port and other specialised Ukraine have hindered the flow of progressing – in particular among vessels corresponds very well to Wrist’s business large corporate entities. Concur- goods in these regions. The effect • Increasing customer demand rently, high standards for suppli- model, focusing on the procurement in the short term and medium for certification (HACCP, ers emerge, and a professional term is still unknown. The recent ISO, etc.) and system inte- set-up to consistently source the best procurement and customer service agreement between Iran and the grations. United Nations, ending sanctions approach is required, just as the products at the most competitive prices during many years, could help needs for account management and being committed to continuously tanker and container rates but also as well as customer relationship management are growing. enhancing its customer service. Business Review 2015/ 10 Business Review 2015/ 11

Offer easily accessible services/organisation and efficient warehouse infrastructure.

Nurture relationships with a broad range of global and local vendors.

Build strong operational capabilities and business systems, facilitating the servicing of customers.

These are the three cornerstones of Wrist’s strategy, all being strengthened and developed continuously >

THE STRATEGY STRATEGY FOR

Martin Christiansen, Executive Vice President PROFITABLE GROWTH Søren Jørgensen, Executive Vice President, CCO Robert Kledal, CEO

Anders Skipper, Executive Vice President, CFO Business Review 2015/ 12 Business Review 2015/ 13

Sourcing and Warehousing procurement at located at major One-stop shop for Service oriented Cost and time wholesalers and shipping lanes or customers distribution efficient solutions manufacturers offshore hubs network to customers

The Wrist value chain serves to Mission and vision save costs and time for custom- ers, and the strategy meets the of excellence customers’ demand for a broad Wrist takes pride in making it product range, a high service lev- easy for customers to receive el, stock management, procure- their supplies, wherever and ment capabilities, delivery on whenever their need arises, effi- OUR WAY OF THINKING demand, fast and secure delivery, ciently and at the best possible customised logistics service con- price. The mission is encapsulat- cepts and e-business. ed in the statement: Expert Care to each Ship Wrist’s value chain & Offshore Location Complying with customer needs In the wake of challenging mar- is essential, and Wrist’s global key Values ket conditions for the shipping account management programme Vision industry in the recent years, the • Hard working and the geographical presence of growth of the business is a testi- We are recognised for • Customer orientation its offices support this strategic mony to Wrist’s ability to support making our customers’ • Winning attitude priority. In addition, Wrist aims customers’ quest for profitability life at sea better to further expand its geographical and to seize the potential for presence through acquisitions or making a genuinely positive greenfield start-ups. difference – to the benefit of not Prepared for only the customers’ bottom lines but also each individual seafarer. Expert Care the future Wrist appreciates that healthy, Wrist is focusing on the devel- content and productive people to each Ship & Offshore opment of global solutions that on board are crucial to the suc- increase efficiency by streamlin- cess of shipping companies. Location ing operations to save both time To live out its mission, Wrist’s and costs – without compromis- management and staff find ing on service quality. All Wrist inspiration and guidance in the branches meet customer demand company’s formulated vision: for proven quality procedures, and the company’s consolidated We are recognised for making Compentencies Brand promise high-volume procurement sup- our customers’ life at sea better • Key account management Wherever - whenever ports competitive prices. This vision is a shared ambition • Scope of offices • Global supplier Being the world’s largest ship for the way the entire Wrist • Global ERP/IT platform • Local excellence and offshore supplier, Wrist organisation is serving its cus- • Global supply chain • Expert care/crew care strives to stay ahead of market tomers. The priority of providing trends. every vessel and crew with the highest quality in service and products will remain the guiding star for all activities. Business Review 2015/ 14 Business Review 2015/ 15

Ship Supply Provision Management

Global Reach

Offshore Supply

Global Transparency/ Assortment Reporting Tools Logistics, Owners' Goods & Warehousing

WRIST'S BUSINESS MODEL CUSTOMER FOCUS

Wrist is an experienced and Seafarers’ welfare supply support that operates and Wrist continuously strives to Provision in volume through the merger of recognised supplier of provision as an extension of their own strengthen this even further. Wrist Ship Supply’s subsidiary Wrist knows how important and stores to the shipping and business, optimising operational management SeaStar Management and Garrets seafarers are to its customers. The employees are instrumental offshore industries. The compa- efficiencies and vessel profitabili- Outsourcing of vessel provision- International in early 2016. Seafarers’ welfare is paramount, in unlocking growth potential in ny is constantly developing its ty. Wrist wants to understand the ing has increased significantly and Wrist works hard to ensure new geographical regions. The Garrets’ strategy is to assist business and capabilities, and with needs of each customer as far as during recent years. More and delivery of high-quality products operational capability to stream- clients in optimising their supply more than 60 years in the market, possible. more operators are looking to and services wherever the seafar- lining the procurement process patterns by guiding their vessels Wrist is today the world’s leading centralise their processes to a ers may be in the world. This is That is the objective in develop- and playing an active role in to use the most cost-efficient ship supplier with a market share single point of contact and are essential for them to stay healthy, ing the regional networks and ap- raising the level of crew nutrition ports during their voyage global- above 7%. looking for partners that can take pointing key account managers to enables Wrist to continuously ly. Through extensive knowledge, content and motivated, and it care of all their purchasing and Wrist’s principal activities are the provide a dedicated outsourced improve its service and create the business unit also guides the makes their lives at sea better. supply needs – globally. They sale and delivery of provision and service in important regions stronger partnerships. Customers’ vessels to generate the correct Wrist assumes responsibility wish to outsource processes as stores to ships, offshore locations where they need support – i.e. require effective management by product mix for their provision and goes beyond the primary a means of enhancing efficiency and selected adjacent markets. The global customer expertise com- specialist providers with technol- order, ensuring a nutritious and competitive parameters to make a and reducing overhead costs company supplies a broad range of bined with local supply chain ogy that can ensure budget trans- healthy menu plan for the crew difference. without impacting quality or the products, including deck, engine, knowledge and understanding. parency and planning control. on board in compliance with morale of their crews. electrical, cabin and bonded stores. Customers aim to work with a MLC 2006 requirements. Cus- The company also provides a total Global network, supplier that provides the scale, Garrets is a business unit within tomer focus is driving improve- service concept comprising the local excellence organisational resources, technol- Wrist, dedicated to the handling ments, increasing efficiencies and storing, surrender and transport of Through Wrist’s global key ac- ogy and infrastructure required of consumable budgets and streamlining customers’ procure- shipping customers’ own supplies count management organisation to deliver an end-to-end service. delivery of provisions and stores ment processes. and spare parts – often through a regional and local teams provide The worldwide network is essen- to ships all over the world. The general warehouse. customers with outsourced ship tial to meeting these demands, business unit more than doubled Business Review 2015/ 16 Business Review 2015/ 17

For each of our customers, Wrist is equal to the faces and voices of their Account Executive, their day-to-day point of contact for TOTAL 1170 new orders and the people who deliver goods and services to EMPLOYEES 2015 each ship or offshore location.

Behind the front staff an army of highly skilled staff secures that each and every order is handled professionally and efficiently 209 in order for Wrist to live up the customers’ expectations.

Wrist continues to develop and harness its people. Management seeks to ensure the organisation Asia and Middle East is equipped to attract, develop and retain the talent that is nec- essary for delivering on Wrist’s promise and for pursuing the 542 Group’s growth strategy.

In developing the human re- sources and providing for the future, Wrist focuses strongly Europe on recruitment, talent devel- opment and graduate training 419 programmes. The purpose is to create and nurture a sustaina- ble talent pool with sufficient leadership potential to drive organic or acquisition growth and North America to develop new services or new market segments. Recruitment Wrist has developed a num- a significant amount of time to gral part of the job scope. ber of best practice models for discuss and design development In addition, Wrist offers talent recruitment, covering the entire opportunities for the talent pool development programmes for spectrum from the planning to in order to prepare for the transi- global sales and global procure- the on-boarding phase. Managers tion to the next leadership level ment activities. across the organisation can use the and/or to be part of the short or toolbox to enhance their recruit- long-term succession plan. ing experience by selecting from Graduate Wrist conducts a formal talent the wealth of tools, guides and programme development programme that samples that are available for each Wrist’s two-year Graduate Train- covers a wide range of topics, phase of the recruitment process. ing Programme continues its most noticeably strategy, busi- success. The current participants In addition, Wrist has various ness finance and leadership. The will complete the programme assessment tools which will help program runs over the course of early summer 2016. The next managers in the selection and 20 months, and the participants step will be matching skills, development of new talent by are assigned a number of team competencies and interests with ORGANISATION understanding and judging the projects of significant importance available opportunities – includ- compatibility between candidate to the Wrist business model. ing overseas assignments, where and job. This way they learn a holistic practicable. OUR PEOPLE approach to the solution of var- Talent development ious challenges. Wrist believes A new Graduate Training Pro- Talent development covers a strongly in learning by doing, gramme, targeting graduates in range of activities and aims, and managers are encouraged to geographies of significant interest chief being succession planning. identify opportunities for team to Wrist’s current and future busi- Wrist’s leadership team assigns members where the development ness footprint, is scheduled to of competencies becomes an inte- start in the autumn of 2016. Business Review 2015/ 18 Business Review 2015/ 19 Wrist is committed to carry out business in a sustainable way. In order to promote the long-term interests of Wrist and our stakeholders, we strive to maintain the highest legal and ethical standards in all business practices.

To promote and support the long- It is essential for Wrist that all to monitor compliance with the term interests of its important business is performed in respect anti-bribery policy. To limit the stakeholders as well as the Group of human and labour rights, risk of inappropriate behaviour itself, Wrist strives to comply for instance fair employment, the programme was extended in with high ethical standards in dissociation of forced or compul- 2015 to include procedures for all aspects of its business and sory labour and the use of child providing cash discounts in cash organisation. labour, freedom of association, sales and a procedure for cash the right to collective bargaining withdrawals. and freedom from discrimination. Business principles A whistleblowing system has been Employees must act accord- Wrist’s Business Principles developed in cooperation with ingly and the Wrist Business provide guidelines to increase a leading Danish law firm. The Principles are used as a point of transparency and describe the system offers employees a venue reference when cooperating with way the company and its staff for reporting observed or suspect- external stakeholders. must act whilst working towards ed violations of laws and policies the business objectives. Wrist supports a precautionary with no risk of retaliation. The The Business Principles are incor- approach to environmental whistleblowing system is awaiting porated in Wrist’s general business challenges for improved environ- approval by the Danish Data Pro- practices, and they reflect the mental performance and resource tection Agency and is expected to principles of the UN Global Com- utilisation in order to run own be introduced early 2016. pact and relevant regulation on operations as clean and efficient- anti-corruption, competition law ly as possible. Seafarers’ welfare and international trade sanctions. Wrist wishes to be recognised for The Business Principles guide and Compliance making our customers’ life at sea direct employees and managers in Wrist’s Compliance Programme better. essential matters such as: relates to all applicable rules and Consequently, the seafarer is an regulations and is tailored to Wrist • Relationships with everyday core target for Wrist. and its industry. For each of the authorities Life at sea may be tough due to topics the programme consists demanding working conditions • Transparency of a detailed written policy and and long hiring periods, meaning • Anti-trust, anti-corruption, training. The programme covers absence from families and friends and trade sanctions these topics: and in case of danger help is not • Anti-fraud and accuracy • International trade sanctions. close at hand. of accounting records • Anti-bribery rules and Wrist supports charity organisa- • Respect for generally rec- principles. tions helping seafarers, including ognised human and labour • Anti-trust rules/competition membership of ISWAN (Inter- rights and employment law. national Seafarers’ Welfare and practices – internationally Assistance Network), sponsoring and locally. The policies contain rules and reg- the 2015 ISWAN award “Seafarer ulations as well as practical advice The Business Principles are Centre of the Year”, supplying to the employees, and they are a codification of the ethical computers and other equipment to distributed to relevant employees COMMITMENT TO ETHICS standards representing the Wrist a new welfare centre in Rotterdam and followed-up by training. culture and they are an impor- run by The Danish Government’s tant step in the formulation and The Anti-Bribery Programme Seamen’s Service, donating to AND RESPONSIBILITY communication of Wrist’s ethical consists of a set of guidelines with “Seamen Aalborg”, and recog- position and policies. clear and specific rules for the nising crew members of vessels, giving and receiving of business Wrist’s Business Principles are that picked up large numbers of courtesies. It is supplemented available on www.wrist.com refugees in the Mediterranean. by a set of procedures designed Business Review 2015/ 20 Business Review 2015/ 21 OUR FINANCIAL PERFORMANCE FINANCIAL REVIEW

IFRS IFRS DK GAAP DK GAAP DK GAAP Sales proved earnings whereas working quisition will strengthen Wrist’s DKK'000 and ratios 2015 2014 2013 2012 2011 capital increased to 8.5% of net presence in this niche market. Sales developed positively in Net Sales 3,674,577 3,347,343 3,032,383 2,858,159 2,447,000 sales compared to 8.2% in 2014. The acquisition was financed by all regions except Asia. The Gross profit 932,444 805,408 701,355 663,512 574,238 The group’s procurement strategies available cash and a new com- supplies to ships developed very to improve service and achieve mitted credit facility. Operating profit (EBITDA) 227,598 208,638 180,145 155,792 98,611 positively whereas supplies to more competitive pricing have Earnings befor interest and tax (EBIT) 190,092 210,753 125,431 104,594 57,000 offshore decreased due to less resulted in higher inventories. Expectations for 2016 Profit of financial items -51,572 -46,927 -20,277 -21,320 -21,000 activity in the offshore oil & gas industry. Net sales reached The shipping industry expects Profit for the year 104,555 130,091 75,900 60,893 21,691 Investments DKK 3,675m compared to DKK to face another challenging year 3,347m in 2014, an increase of Net investments amounted to in 2016 in most of the segments. Inventories 218,230 195,202 166,467 152,547 143,859 9.8%. Measured in the local cur- DKK 89m compared to DKK 33m Activity in the ship supply Trade receivables 574,949 549,142 469,425 530,020 491,546 rencies the growth was 1.0%. in 2014. Investments in software markets is dependent on ships in Total assets 1,717,337 1,522,820 1,289,874 1,261,368 1,163,000 and property, plant and equip- operation, and thus the growth ment aggregated DKK 53m in in global transports driven by the Shareholder's equity 463,204 337,218 231,692 271,338 204,607 Gross profit 2015 against DKK 77m in 2014. global economic growth. How- Gross profit amounted to DKK Investment capital including goodwill 883,302 755,504 690,723 680,000 622,000 The 2014 sales of assets of DKK ever, Wrist expects growth in 932m compared to DKK 805m Net interst-bearing debt (NIBD) 469,018 474,223 520,677 388,000 497,000 43m mainly relate to the previ- supplies to the shipping mar- in 2014, an increase of 15.8%. ously mentioned sale of a facility kets. The outlook in the offshore The gross profit ratio increased Acquisitiom etc of property, plant and in Singapore. sector is depressing due to the to 25.4% compared to 24.1% in equipment 37,495 49,516 81,883 23,206 17,934 continued low oil prices and 2014, supported by the group’s Cash flow from investing activities (CFFI 89,441 33,481 102,219 46,145 153,403 Financial position thus a lower demand for drilling continued focus on procurement. Cash flow from operating activities (CFFO) 143,245 135,860 103,002 209,911 38,000 At 31 December 2015, cash and rigs, seismic offshore support Operating profit cash equivalents totalled DKK and other specialized ships. Number of employees 1,167 1,105 981 948 939 186m, while undrawn credit The recent acquisitions have Operating profit (EBITDA) facilities amounted to DKK 70m. strenghtened the position in key amounted to DKK 228m com- Performance ratios (%) Accordingly, total available cash market segments and will, com- pared to DKK 209m in 2014, an Gross margin 25.4 24.1 23.1 23.2 23.5 and undrawn credit facilities bined with new green field estab- increase of 9.1%. The profit amounted to DKK 266m. Wrist lishments, underpin the strong Operating margin (EBITDA 6.2 6.2 5.9 5.5 4.0 margin stayed at 6.2%. has entered into a long-term com- market position of Wrist and the Return on invested capital 21.8 28.5 23.0 20.3 13.7 mitted financing agreement with strength of the business model. Equity ratio 26.1 45.7 30.2 25.6 11.2 Net profit and credit facilities enabling both The continued focus on develop- distribution current operations and planned ing a robust and stable logistics The figures stated for 2014 amd 2015 as well as the balance sheet items for 2013 have been prepared Profit for the year amounted to expansion. and technologic infrastructure, in accordance with IFRS. All other figures have been prepared in accordance with Danish Financial DKK 105m compared to DKK supported by financial resources, Statements Act. The effect of the change to IFRS is described in note 1. Net interest bearing debt amount- 130m in 2014, an increase of ed to DKK 469m at 31 December global presence, agility, as well 37%. The profit is satisfactory 2015 (DKK 474m at the end of as high quality of products and and above the expected level. 2014). The net interest bearing services, remain the mainstay of In 2014 net profit was affected debt as a ratio to like-for-like the business. by an income of DKK 33m from EBITDA improved to 2.1 in 2015 Overall, Wrist anticipates organic the sale a facility in Singapore. from 2.3 in 2014. growth in sales, benefitting from Adjusted for this special item net the strong market position and profit increased by 8.3%. Subsequent events the constant enhancements of Since the balance sheet date, the business model. For 2016, Cash flows Wrist acquired Garrets Interna- Wrist expects total sales of DKK Cash flow from operating activ- tional Ltd. – a global provider of 4.2-4.5bn and operating profit ities amounted to DKK 143m in provision management solutions (EBITDA) of DKK 270-290m. The 2015 against DKK 136m in 2014, to ship owners and ship man- basis for expectations are foreign an improvement on 5.4%. The agers. Garrets has yearly sales exchange rates similar to the flow improvement was due to im- above DKK 0.5bn and the ac- December 2015 rates. Business Review 2015/ 22 Business Review 2015/ 23

FINANCIAL STATEMENTS FINANCIAL STATEMENTS CONSOLIDATED CASH FLOW INCOME STATEMENT

2015 2014 2015 2014 DKK'000 DK'000 DKK'000 DK'000 Net Sales 3,674,577 3,347,343 Profit before tax (EBT) 138,520 163,828 Amortisation, deporeciation and impaiment lossses 37,506 30,089 Cost of sales -2,742,133 -2,541,935 Working capital changes -9,799 3,775 Adjustmets for non-cash items 52,549 16,031 Gross profit 932,444 805,408 Cash flow from ordinary operating activities 218,776 213,723 Other external expenses -253,550 -221,800 Financial income 22,461 19,914 Staff Costs -452,531 -375,132 Financial expenses -68,629 -62,600 Other operating income 0 32,204 Income taxes refunded/paid -29,363 -35,177 Other operating expenses 1,235 162 Cash flow from operating activities (CFFO) 143,245 135,860 Depreciation, amortisation and impairment -37,506 -30,089

Acquisition etc of intangible assets -15,020 -27,382 Operating profit before interest and tax (EBIT) 190,092 210,753 Acquisition etc of property, plant and equipment -37,495 -49,516

Financial income 22,366 20,042 Sale of property, plant and equipment 2,694 43,200 Financial expenses -73,938 -66,969 Acquisition of enterprises -39,620 0 Disposal of enterprises 0 217 Profit before tax (EBT) 138,520 163,826 Cash flow investing activities (CFFI) -89,441 -33,481

Income tax -33,852 -33,712 Loans raised 39,617 82,200 Instalmenst on loeans etc -39,766 -87,312 Profit for the year 104,698 103,114 Dividend paid 0 -40,000

Other cash flows from financing activities 257 -2,593 Attributable to: Cash flows from financing activities 108 -47,705 Shareholders of Wrist Ship Supply A/S 104,555 130,091

Non-controlling interest 113 23 Cash flow for the year 53,912 54,673

Cash and cash equivalents at 1 January 132,169 77,214 Currency translation adjustments of cash and cash -171 282 equivalents Cash and cash equivalents at 31 December 185,911 132,169

The cash flow statement cannot be derived from the published financial information only. v

Business Review 2015/ 24 Business Review 2015/ 25

FINANCIAL STATEMENTS FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS STATEMENT OF COMPREHENSIVE INCOME

2015 2014 2015 2014 2015 2014 Assets DKK'000 DK'000 Liabilities and shareholder's equity DKK'000 DK'000 DKK'000 DK'000 Goodwill 380,728 322,155 Share capital 16,112 16,112 Profit of the year 104,668 130,114 Software 33,031 3,501 Foreign currency translation reserve 38,076 17,451 Intangible assets in development 11,732 29,859 Hedging reserves -1,676 -2,369 Other comprehensice income Intangible assets 425,491 355,515 Retained earnings 410,604 306,049 Items that can be reclassifies to the income Land and buildings 75,033 78,184 Shareholders' share of equity 463,116 337,243 statement when certain conditions are met: Fixtures and fittings, tools and equipment 105,891 95,246 Shareholders' of minority interests 88 -25 Exchamge differences, foreign entities 20,625 17,451 Leasehold improvements 18,892 15,796 Fair value adjustment for the year relating to hedging 905 -2,489 Prepayments for prorerty, plant Shareholders' equity 463,204 337,218 instruments and equitment 0 593 Tax relating to hedging instruments -212 498 Property, plant and equipment 199,815 189,819 Deferred tax 6,892 3,543 Provisions 7,672 6,491 Total comprehensive income 125,986 145,574 Investments in associates 0 0 Accrual for straight line lease expense 14,480 12,852 Deffered tax assets 16,047 22,686 Debt to mortgage credit institutions 2,998 3,271 Attributable to: Other non-current assets 16,047 22,686 Debt to credit institutions 489,688 477,768 Shareholders of Wrist Ship Supply A/S 125,873 145,551 Total non-current assets 641,353 568,020 Non-controlling interests 113 23 Leasing debt 34,117 38,212 125,986 145,574 Other debt 42 114 Inventories 218,230 195,202 Total non-current liabilities 555,890 542,251

Trade receiveables 574,949 549,142

Receivables from group enterprises 14,322 1,739 Instalment of non-current debt next year 91,673 54,006 Income tax receivable 1,467 3,532 Provisions 19 107 Other receivables 73,811 65,520 Debt to credit institutions 0 7,545 Prepayments 7,295 7,496 Trade creditors 379,303 384,155 Receivables 671,844 627,429 Debt to group enterprises 38,273 27,612 Corporate tax 7,185 13,868 Cash and cash equivalents 185,911 132,169 Other payables 175,668 152,170 Deffered income 6,122 3,886 Total current assets 1,075,984 954,800 Total current liabilities 698,243 643,351 Total assets 1,717,337 1,552,820

Total liabilities 1,254,133 1,185,602 Total equity and liabilities 1,717,337 1,522,820 Business Review 2015/ 26 Business Review 2015/ 27 WORLD OF WRIST

MOBILE, USA Fax +1 510 444 7216 ALGECIRAS, SPAIN F-34200 Sète, France GUANGZHOU GARRETS INTERNATIONAL LTD. Group World Ship Supply E-mail [email protected] Wrist Europe Intership (Algeciras) S.L. Tel. +33 (0) 467 748 427 Middle East Wrist Guangzhou Singapore Pte. Ltd. Headquarters 5880 I-10 Industrial Parkway Avenida de la Union 8-10 Fax +33 (0) 467 744 045 DUBAI, UAE No. 1038 Mao Gang Road 30 Raffles Place, Theodore, AL 36582, USA SEATTLE, USA Poligono Industrial, Cortijo Real E-mail [email protected] Wrist Middle East (UAE) LLC. Huang Pu District Level 17 Chevron House, WRIST SHIP SUPPLY A/S Tel. +1 251 662 7474 West Coast Ship Supply 11206 Algeciras, Spain PETERHEAD, SCOTLAND Industrial Area No. 11, Street No. 8 Guangzhou, 510700, China Singapore 048622 Stigsborgvej 60 Fax +1 251 662 7470 6767 East Marginal Way South Tel. +34 956 675 078 STRACHANS LTD. P.O. Box 6846 Sharjah Tel. (IP) +45 9816 5833 Tlf. +65 680 962 91 DK-9400 Noerresundby, E-mail [email protected] Seattle, WA 98108, USA Fax +34 956 675 079 54 Windmill Street, Peterhead United Arab Emirates Email: [email protected] Fax +65 680 962 01 Tel. +45 98 13 72 77 Tel. +1 206 716 3001 E-mail [email protected] Aberdeenshire AB42 1UE, Scotland Tel. +971 6 535 1800 E-mail [email protected] Fax +45 98 16 58 33 MONTREAL, CANADA Fax +1 206 716 3000 Tel. +44 1779 485300 Fax +971 6 535 1801 E-mail [email protected] Karlo Corporation E-mail [email protected] DEN HELDER STORES Fax +44 1779 470632 E-mail [email protected] Representative Office J. A. AROCHA, S.L.U., SPAIN 10801 Boulevard Ray Lawson Den Helder Stores E-mail [email protected] Tel. +49 402 999 7190 Puerto de Las Palmas North America Anjou, QC, H1J 1M5, Canada VANCOUVER, CANADA Schrijnwerkersweg 13, Asia Mobile +49 172 984 9400 E-35008 Las Palmas, Gran Canaria, Tel. +1 514 255 5017 West Coast Office 1786 PC Den Helder ROTTERDAM, E-mail [email protected] Spain CORPUS CHRISTI, USA Fax +1 514 255 6888 8038 Glenwood Drive The THE NETHERLANDS JOHOR BAHRU, Tel. +34 928 47 56 52 World Ship Supply E-mail [email protected] Burnaby BC, V3N 5E9, Canada Tlf. +31 (0)223 635 587 Wrist-Kooyman Ship Supply B.V. Wrist Far East (Malaysia) Sdn. Bhd. GREECE Fax +34 928 47 56 82 102 Gilliam Street Tel. +1 604 205 5466 Fax +31 (0)223 660 210 Colombusstraat 2-10 103A, Jalan Bestari 1/5 Representative Office E-mail [email protected] Corpus Christi, TX 78409, USA NEW ORLEANS, USA Fax +1 604 343 1690 NL-3165 AD Rotterdam Taman Nusa Bestari Tel. +30 210 452 9479 Tel. +1 361 289 7380 World Ship Supply E-mail [email protected] ESBJERG, DENMARK Albrandswaard 79150 Nusajaya, Johor Bahru, Mobile +30 693 2769 653 MALE, THE MALDIVES Fax +1 361 289 7404 300 Plauche Street Jens Lysholdts Eftf. A/S Malaysia E-mail [email protected] Cosmopolitan Champa Brothers E-mail [email protected] Jefferson, LA 70123, USA Europe Fiskebrogade 8 THE NETHERLANDS Tel. +607 5571 159 Pvt Ltd. Tel. +1 504 586 0767 DK-6700 Esbjerg, Denmark Tel. +31 10 428 4300 (Wrist) Fax +607 557 1145 NORWAY Boduthakurufaanu Magu (CHP-6) M HOUSTON, USA Fax +1 504 586 0489 AALBORG, DENMARK Tel. +45 75 12 10 22 Tel. +31 10 753 6753 (Kooyman) E-mail [email protected] Representative Office K. Male, The Maldives Wrist USA (Houston), Inc. E-mail [email protected] Wrist Europe (Aalborg) A/S Fax +45 75 12 60 96 Fax +31 10 495 3966 Mobile +47 9017 2312 Tel. +960 331 0477 1485 East Sam Houston Parkway Stigsborgvej 60 E-mail [email protected] E-mail [email protected] MANILLA, PHILIPPINES E-mail [email protected] Fax +960 331 0458 South, Suite 100 NEW YORK, USA P.O. Box 215 19th Floor, Times Plaza Build., E-mail [email protected] Pasadena, TX 77503, USA East Coast Ship Supply LLC DK-9400 Noerresundby, Denmark GREAT YARMOUTH, UK SKAGEN, DENMARK United Nations Ave.cor. Taft Avenue THE PHILIPPINES Tel. +1 281 817 2060 755 Central Avenue, Unit 1 Tel. +45 9813 7277 STRACHANS LTD. Wrist Europe (Skagen) Ermite, Manilla Representative Office SAGA SHIPPING A/S, DENMARK Fax +1 281 817 2090 New Providence, NJ 07974, USA Fax +45 9816 5833 Admiralty Road, Great Yarmouth, Vestre Strandvej 6 Philippines Tel. + 63 917 325 2158 Auktionsvej 10 E-mail [email protected] Tel. +1 732 205 9790 E-mail [email protected] Norfolk NR30 3PU, DK-9990 Skagen, Denmark Mobile + 63 939 921 3090 P.O. Box 48 Fax +1 908 286 1130 Tel. +44 1493 850337 Tel: +45 98 44 13 33 SHENZHEN E-mail [email protected] DK-9990 Skagen, Denmark JACKSONVILLE / SAVANNAH, USA E-mail [email protected] AARHUS, DENMARK Fax +44 1493 85 1143 Fax +45 98 44 30 12 Wrist (Shenzhen) Trading Tel. +45 98 44 33 11 World Ship Supply Sophus E. Johnsen & Co. A/S E-mail [email protected] E-mail [email protected] Company Limited Fax. +45 98 45 00 29 5415 Longleaf St. Other Group PORTLAND, USA Soeren Frichs Vej 38 k, 1.sal Room 216, Block D, Wei Bai Fu E-mail saga@saga·shipping.dk Jacksonville, FL 32209, USA West Coast Ship Supply DK-8230 Aabyhoej, Denmark HAUGESUND, NORWAY Mansion, Rong Cun, Industrial entities Tel. +1 904 768 1015 1705 NE Argyle Street Tel. +45 86 12 26 66 Wrist Europe (Norway) AS Zone, Gong Yuan South Road, WRIST MARINE LOGISTICS, Fax +1 904 768 1016 D.S.C. TRADING LTD., DENMARK Portland, OR 97211, USA Fax +45 86 19 42 09 Kvitsoygaten 4 Shekou, Shenzhen, 518067, China AALBORG E-mail [email protected] Kanalholmen 1 Tel. +1 503 224 9950 E-mail [email protected] N-5537 Haugesund, Norway Tel. +86 18 92 37 58 608 Stigsborgvej 60 DK-2650 Hvidovre, Denmark Fax +1 503 224 9905 Tel. +47 52 85 66 90 E-mail [email protected] P.O. Box 215 LONG BEACH / LOS ANGELES, USA Tel. +45 39 29 55 33 E-mail [email protected] ABERDEEN, SCOTLAND Fax +47 52 85 66 91 DK-9400 Noerresundby, Denmark West Coast Ship Supply Fax +45 39 29 55 44 Strachans Ltd. E-mail [email protected] SINGAPORE Tel. +45 98 13 72 77 2835 Ana Street E-mail [email protected] SAN FRANCISCO / OAKLAND, USA Greenwell Road East Tullos Wrist Far East (Singapore) Pte. Ltd. Fax +45 98 16 58 33 Rancho Dominguez, CA 90221, USA West Coast Ship Supply Aberdeen AB12 3AX, Scotland MARSEILLE, FRANCE 24, Tuas West Road E-mail [email protected] Tel. +1 562 435 5245 GARRETS INTERNATIONAL A/S 1611 17th St. Tel. +44 1224 897767 Wrist Europe (Marseille) SAS Singapore 638381 Fax +1 562 599 4316 Stigsborgvej 60, Oakland, CA 94607, USA Fax +44 1224 890121 Z.I. Eaux Blanches, Tel. +65 6318 0000 WRIST MARINE LOGISTICS, E-mail [email protected] DK-9400 Noerresundby, Denmark Tel. +1 510 444 7200 E-mail [email protected] 1124, Avenue des Eaux Blanches Fax +65 6897 7340 COPENHAGEN Tel. +45 72 19 00 91 E-mail [email protected] Kanalholmen 1 Fax +45 98 64 84 05 DK-2650 Hvidovre, Denmark E-mail [email protected] Representative Tel. +45 99 31 84 00 Fax +45 98 14 21 35 GARRETS INTERNATIONAL LTD. offices E-mail [email protected] Stewards House ASIA St. Edwards Court, London Road, Representative Office Romford, Essex RM7 9QD, Tel. +65 6318 0088 United Kingdom Mobile +65 9677 5005 Tlf. +44 (0)1708 740 400 E-mail [email protected] Fax +44 (0)1708 768 444 E-mail [email protected]

Business Review 2015/ 28

Wrist Ship Supply www.wrist.com