ANNUAL REPORT 2016 ANNUAL REPORT 2016 Contents CHAIRMAN´S ADDRESS ................................................................................................................................ 8 ADVANCING FOOD PROCESSING ............................................................................................................ 8 THE CHALLENGE ........................................................................................................................................ 8 THE OPPORTUNITIES ................................................................................................................................ 9 PROGRESS IN LINE WITH STRATEGY ..................................................................................................... 9 DISTRIBUTION OF PROFITS ..................................................................................................................... 9 CORPORATE RESPONSIBILITY .............................................................................................................. 10 POSITIONED FOR FUTURE VALUE CREATION .................................................................................... 10 CEO´S ADDRESS ......................................................................................................................................... 11 GREAT YEAR ............................................................................................................................................ 11 MAREL EXPANDS ITS MEAT OPERATIONS .......................................................................................... 11 ADVANCING FOOD PROCESSING .......................................................................................................... 12 EARNINGS PER SHARE INCREASED BY 34% ....................................................................................... 12 A FAST CHANGING AND DYNAMIC WORLD .......................................................................................... 13 UNITED TEAM STRIVING FOR EXCELLENCE ....................................................................................... 13 WHO WE ARE ............................................................................................................................................... 14 OUR VISION .............................................................................................................................................. 14 ONE COMPANY ......................................................................................................................................... 14 GLOBAL PRESENCE ................................................................................................................................ 14 ONE COMPANY SERVING THREE INDUSTRIES ................................................................................... 14 MAREL POULTRY ..................................................................................................................................... 14 MAREL MEAT ............................................................................................................................................ 14 MAREL FISH .............................................................................................................................................. 14 FINANCIAL PERFORMANCE ....................................................................................................................... 15 MAREL IN FIGURES .................................................................................................................................. 16 COMPARISON BETWEEN 2015 AND 2016 .......................................................................................... 16 FROM MAREL'S CONSOLIDATED ACCOUNTS ...................................................................................... 17 MAREL’S BUSINESS OPERATIONS ............................................................................................................ 21 GLOBAL SUPPLY CHAIN AND MANUFACTURING ................................................................................ 21 SALES ........................................................................................................................................................ 22 2 ANNUAL REPORT 2016 GLOBAL SERVICES .................................................................................................................................. 23 INNOVATION ............................................................................................................................................. 24 STRATEGY .................................................................................................................................................... 25 MAREL’S VISION ....................................................................................................................................... 25 A PERIOD OF STRONG GROWTH .......................................................................................................... 25 TURNING POINT ....................................................................................................................................... 25 AT-THE-CUSTOMER, FOR-THE-CUSTOMER ......................................................................................... 26 OUR MARKETS ............................................................................................................................................. 27 MAREL POULTRY ..................................................................................................................................... 27 MAREL MEAT ............................................................................................................................................ 27 MAREL FISH .............................................................................................................................................. 27 MAREL POULTRY ......................................................................................................................................... 28 LANDMARK PROJECT WITH HARIM ....................................................................................................... 28 STEADY STREAM OF INNOVATIVE SOLUTIONS .................................................................................. 29 SUSTAINABLE SOLUTIONS FOR THE FUTURE .................................................................................... 29 MAREL MEAT ................................................................................................................................................ 31 EXCELLENT YEAR FOR MAREL .............................................................................................................. 31 STEADY STREAM OF INNOVATIVE SOLUTIONS .................................................................................. 32 EMPHASIS ON SUSTAINABILITY ............................................................................................................ 33 MAREL FISH .................................................................................................................................................. 34 LANDMARK PROJECT WITH LEROY ...................................................................................................... 34 STEADY FLOW OF NEW SOLUTIONS .................................................................................................... 35 EMPHASIS ON SUSTAINABILITY ............................................................................................................ 35 SHARE PERFORMANCE .............................................................................................................................. 37 SHAREHOLDERS ...................................................................................................................................... 37 SHARE CAPITAL ....................................................................................................................................... 37 LIQUIDITY OF SHARES ............................................................................................................................ 38 DIVIDEND .................................................................................................................................................. 38 INVESTOR RELATIONS ............................................................................................................................... 40 PUBLICATION OF FINANCIAL INFORMATION ....................................................................................... 40 WEBSITE AND ANNUAL REPORT ........................................................................................................... 40 AUDBJORG OLAFSDOTTIR .................................................................................................................. 40 MAREL´S BOARD OF DIRECTORS ............................................................................................................. 41 3 ANNUAL REPORT 2016 CHAIRMAN OF THE BOARD ................................................................................................................. 41 ASTHILDUR MARGRET OTHARSDOTTIR............................................................................................... 41 EDUCATION ........................................................................................................................................... 41 ELECTED 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