TABLE OF CONTENTS Business ..............................................................................................................................................................................................5 HKScan in brief..............................................................................................................................................................................5 Market areas............................................................................................................................................................................7 Operating environment .........................................................................................................................................................9 Graphs................................................................................................................................................................................... 13 CEO's review .............................................................................................................................................................................. 17 Strategy....................................................................................................................................................................................... 19 Corporate responsibility .............................................................................................................................................................. 22 Value chain ................................................................................................................................................................................. 23 Stakeholders............................................................................................................................................................................... 24 Corporate responsibility at HKScan ........................................................................................................................................ 27 Economic responsibility...................................................................................................................................................... 28 Social responsibility............................................................................................................................................................. 29 Animal health and welfare.................................................................................................................................................. 37 Environment ......................................................................................................................................................................... 39 Goals and improvements ................................................................................................................................................... 44 Financials ......................................................................................................................................................................................... 47 Report of the Board of Directors.............................................................................................................................................. 47 Five years in figures ................................................................................................................................................................... 56 Calculation of financial indicators...................................................................................................................................... 58 Financial statements.................................................................................................................................................................. 59 Consolidated income statement for 1 January–31 December ...................................................................................... 59 Consolidated statement of comprehensive income 1 January–31 December ........................................................... 62 Consolidated balance sheet at 31 December ................................................................................................................. 63 Consolidated cash flow statement .................................................................................................................................... 65 Statement of changes in consolidated equity ................................................................................................................. 67 Notes to the financial statements ...................................................................................................................................... 68 Notes to the income statement ................................................................................................................................... 83 1. Business segments.............................................................................................................................................. 83 This page is generated from HKScan's online annual report 2015. Please visit annualreport2015.hkscan.com for the full report. 2 2. Other operating income..................................................................................................................................... 86 3. Materials and services......................................................................................................................................... 87 4. Employee benefit expenses............................................................................................................................... 87 5. Depreciation and impairment ........................................................................................................................... 91 6. Other operating expenses ................................................................................................................................. 92 7. Financial income and expenses ........................................................................................................................ 93 8. Income taxes........................................................................................................................................................ 93 9. Earnings per share .............................................................................................................................................. 94 Notes to the balance sheet .......................................................................................................................................... 95 10. Intangible assets................................................................................................................................................ 95 11. Goodwill............................................................................................................................................................. 95 12. Tangible assets .................................................................................................................................................. 97 13. Business combinations..................................................................................................................................... 99 14. Shares in associates ........................................................................................................................................ 101 15. Financial assets and liabilities........................................................................................................................ 101 16. Deferred tax assets and liabilities ................................................................................................................. 103 17. Inventories ....................................................................................................................................................... 105 18. Trade and other current receivables............................................................................................................. 105 19. Cash and cash equivalents ............................................................................................................................ 107 20. Assets and liabilities of disposal group classified as held for sale ........................................................... 107 21. Notes relating to equity.................................................................................................................................. 108 22. Pension obligations......................................................................................................................................... 110 23. Provisions ......................................................................................................................................................... 111 24. Liabilities .......................................................................................................................................................... 112 25. Financial risk management ............................................................................................................................ 115 26. Fair values of financial assets and liabilities................................................................................................. 123 27. Other leases....................................................................................................................................................