38812424 2017-07-24 2017-12-31 38812424 2017-07-24 2017-12-31 0 38812424 2017-07-24 2017-12-31 0 38812424 2017-07-24 2017-12-31 0 38812424 2017-07-24 2017-12-31 1 38812424 2017-12-31 38812424 2017-07-24 2017-12-31 0 38812424 2017-07-24 2017-12-31 0 38812424 2017-07-24 iso4217:DKK Færch Plast HoldCo ApS Rasmus Færchs Vej 1 7500 Holstebro Denmark 38812424 2018-05-31 Myriam Deltenre faerchplast.com 2017-07-24 2017-12-31 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">MANAGEMENT STATEMENT</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">The Executive Management and Board of Directors have today considered and adopted the Annual Report of Færch Plast Group A/S for the financial year 24 July – 31 December 2017.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">The Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards as adopted by the EU and additional requirements in the Danish Financial Statements Act and the Parent Company Financial Statements are prepared in accordance with the Danish Financial Statements Act. Management’s Review is prepared in accordance with the Danish Financial Statements Act.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the financial position at 31 December 2017 of the Group and the Company and of the results of the Group and Company operations and consolidated cash flows for the financial year 1 January - 31 December 2017.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">In our opinion, Management’s Review includes a true and fair account of the development in the operations and financial circumstances of the Group and the Company, of the results for the year and of the financial position of the Group and the Company as well as a description of the most significant risks and elements of uncertainty facing the Group and the Company.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">We recommend that the Annual Report be adopted at the Annual General Meeting.</td></tr></table> Holstebro 2018-05-31 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">INDEPENDENT AUDITOR’S REPORT</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">To the Shareholders of Færch Plast HoldCo</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Opinion</td></tr><tr><td colspan="1">In our opinion, the Consolidated Financial Statements give a true and fair view of the Group’s financial position at 31 December 2017 and of the results of the Group’s operations and cash flows for the financial year 24 July to 31 December 2017 in accordance with International Financial Reporting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act.</td></tr><tr><td colspan="1">Moreover, in our opinion, the Parent Company Financial Statements give a true and fair view of the Parent Company’s financial position at 31 December 2017 and of the results of the Parent Company’s operations for the financial year 24 July to 31 December 2017 in accordance with the Danish Financial Statements Act.</td></tr><tr><td colspan="1">We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of Færch Plast Group for the financial year 24 July - 31 December 2017, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies, for both the Group and the Parent Company, as well as statement of comprehensive income and cash flow statement for the Group (“financial statements”).</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Basis for Opinion</td></tr><tr><td colspan="1">We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) and the additional requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Statement on Management’s Review</td></tr><tr><td colspan="1">Management is responsible for Management’s Review.</td></tr><tr><td colspan="1">Our opinion on the financial statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon.</td></tr><tr><td colspan="1">In connection with our audit of the financial statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.</td></tr><tr><td colspan="1">Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financials Statements Act.</td></tr><tr><td colspan="1">Based on the work we have performed, in our view, Management’s Review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement in Management’s Review.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Management’s Responsibilities for the Financial Statements</td></tr><tr><td colspan="1">Management is responsible for the preparation of Consolidated Financial Statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act and for the preparation of Parent Company Financial Statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.</td></tr><tr><td colspan="1">In preparing the financial statements, Management is responsible for assessing the Group’s and the Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Auditor’s Responsibilities for the Audit of the Financial Statements</td></tr><tr><td colspan="1">Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.</td></tr><tr><td colspan="1">As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment and maintain professional skepticism throughout the audit. We also</td></tr><tr><td colspan="1">• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evi-dence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.</td></tr><tr><td colspan="1">• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Parent Company’s internal control.</td></tr><tr><td colspan="1">• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.</td></tr><tr><td colspan="1">• Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the Parent Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and the Parent Company to cease to continue as a going concern.</td></tr><tr><td colspan="1">• Evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view.</td></tr><tr><td colspan="1">• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.</td></tr><tr><td colspan="1">We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.</td></tr></table> Aarhus 2018-05-31 797600000 647000000 150600000 114000000 37800000 13500000 13200000 -18500000 -19400000 25600000 128800000 -122600000 3800000 -126400000 -14900000 -141300000 -141300000 297000000 204200000 53300000 -100000 23800000 301600000 5400000 83900000 1000000 5227200000 -5315500000 -5013900000 3690600000 -1300000 5095400000 81500000 39100000 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">SUSTAINABILITY GOVERNANCE STRUCTURE</td></tr><tr><td colspan="1">Faerch operates its business with responsibility, integrity and with a fundamental respect for human and labour rights, environmental and climate considerations, principles of anti-corruption and fair competition. Consistently, we support the principles in the UN Global Compact as well as OECD’s Principles of Corporate Governance and recognised best practice.</td></tr><tr><td colspan="1">Our effort on sustainability is embedded in the organisational behaviour through the roles and responsibilities, and is defined as the governance structure. It is based on four levels through which we contribute to the long-terms sustainable development.</td></tr><tr><td colspan="1">On executive management level, the guidance and direction for the comprehensive long-term work related to Faerch’s sustainable development is provided.</td></tr><tr><td colspan="1">On a business unit level, we secure resource allocation to enhance a continuous sustainable development in the individual business unit and report on non-financial data.</td></tr><tr><td colspan="1">On a regional level, we work with specific focus areas supporting our ambition levels and priorities. We see external stakeholder engagement, bringing external focus into the business, as a key element in achieving a continued sustainable growth and meeting our obligations to the society, our partners and employees.</td></tr><tr><td colspan="1">On a local level, we carry out concrete initiatives and improvements in the respective departments and working groups in line with the overall direction on sustainable development.</td></tr><tr><td colspan="1">By means of policies, standards, management systems, procedures, processes and risk management, we ensure that high business practice standards are upheld in each country we operate.</td></tr><tr><td colspan="1">The roles and responsibilities related to sustainable development in Faerch are defined and communicated in the ‘Sustainability Governance’.</td></tr><tr><td colspan="1">MATERIALITY</td></tr><tr><td colspan="1">Faerch’s materiality assessment reflects the areas creating impact on our business success and playing an important role for our stakeholders. Due to a significant growth combined with acquisitions the last two years, it is important for us to ensure that we are aware of and react to the changes in the external environment that can influence our business.</td></tr><tr><td colspan="1">Therefore, we revised our materiality assessment in 2016, based on specific parameters within economic, environmental, ethical and social issues. Different stakeholder groups were mapped based on stakeholder interest to Faerch and influence on our business. It was essential to embrace external stakeholder perspective, bringing it into our business and by this strengthen our sustainability agenda even further.</td></tr><tr><td colspan="1">In 2017, we experienced continued organic growth and kept integrating the recently acquired manufacturing sites under Faerch’s framework. Consequently, we reviewed our materiality assessment, linking our KPIs to investment decisions that support our sustainable business growth.</td></tr><tr><td colspan="1">Our key stakeholders are our customers, food producers (food packers), and non-governmental organisations. Additionally, end-users, employees and local communities play a significant role for the business and therefore, also considered important stakeholders to Faerch.</td></tr><tr><td colspan="1">FOCUS AREAS &amp; AMBITION LEVELS</td></tr><tr><td colspan="1">Faerch’s sustainability initiatives are based on the focus areas that have been defined through the materiality assessment.</td></tr><tr><td colspan="1">For each focus area, we have established a long-term level of ambition supported by our actions. Our ambition is to be the leader in Sustainable Packaging and Food Safety.</td></tr><tr><td colspan="1">For every focus area we have defined the KPIs supporting our long-term ambition and sustainable development.</td></tr><tr><td colspan="1">SUSTAINABILITY IN THE VALUE CHAIN</td></tr><tr><td colspan="1">As an international manufacturer of plastic packaging, we are aware that our activities have far-reaching environmental, social and economic impacts.</td></tr><tr><td colspan="1">The graphic below shows the major stages of our value chain and the main impacts that our activities create.</td></tr><tr><td colspan="1">To reduce any negative impacts, we have defined a set of actions on how we add value at each stage and deliver competitive advantages to our customers. We continue our effort towards embedding sustainability in our value chain, reducing our impacts and environmental footprint whenever possible.</td></tr><tr><td colspan="1">SUSTAINABLE DEVELOPMENT GOALS</td></tr><tr><td colspan="1">Introduction of the UN’s 2030 Sustainable Development Goals created a framework for addressing the issues and creating a plan of actions in the areas of critical importance for the global society. We see the role of businesses and industries in bringing own perception of the SDGs and supporting sustainable development.</td></tr><tr><td colspan="1">It is our commitment and task to impact the SDGs by making them operational and identifying future business opportunities. From the areas of importance determined by the materiality assessment, we consistently explore how we can support the SDGs linking them to the value chain and our business.</td></tr><tr><td colspan="1">SUPPORTING INTERNATIONAL STANDARDS</td></tr><tr><td colspan="1">Our progress and reporting on sustainability is based on the principles of the UN Declaration on Human rights, the ILO conventions and the UN Global Compact.</td></tr><tr><td colspan="1">Even though Faerch has not joined the UN Global Compact, it is our fundamental responsibility to follow its guidelines and recommendations in order to drive actions towards a sustainable future.</td></tr><tr><td colspan="1">The table on the next page illustrates the way we approach and implement the ten principles UN Global Compact.</td></tr><tr><td colspan="1">FROM RECYCLABILITY TO ACTUAL RECYCLING</td></tr><tr><td colspan="1">Our products are ready and designed for recyclability</td></tr><tr><td colspan="1">Being an important material in the food industry, plastic has become part of our everyday life throughout our household, workplace, transport etc. Lightweight, unbreakable, flexible, durable, verified and documented reliable in relation to food contact safety – these are the key advantages that make end-users adopt this material.</td></tr><tr><td colspan="1">As a responsible leading European manufacturer of plastic packaging for the food industry, it is our obligation to promote and enhance the advantages created for the end-users, delivering recyclable packaging.</td></tr><tr><td colspan="1">Today, over 70% of our produced volume within PET material is based on recyclability. It is part of the DNA and the way Faerch develop, design and produce innovative and high-quality packaging. With intensive investments in systems and technology, Faerch are committed to move from using recyclable material to actual recycling adapting the principles of a circular economy. By doing this, we strive to achieve a true closed loop.</td></tr><tr><td colspan="1">Towards a circular economy</td></tr><tr><td colspan="1">The journey started years ago when Faerch began to utilise recycled plastic in our recipes and products, including investments in the technology that can upgrade recycled plastic to food grade in the most efficient manner.</td></tr><tr><td colspan="1">The recycled plastic, rPET, mainly comes from soft drink bottles. The rPET is supplied to our facilities as flakes that are cleaned thoroughly and used as raw material in the production of new plastic packaging.</td></tr><tr><td colspan="1">Consequently, rPET became an integrated part of the manufacturing processes and has developed over the years. In 2008, the share of rPET in the produced PET packaging was 3%, it increased significantly reaching approximately 50% in 2012 and during the last three years (2015-2017) achieved almost 80% at a Group level. Our total consumption of rPET in 2016 was more than double the PET bottle collection volume in Denmark of the same year, according to ‘‘PET recycle survey West Europe 2016’’ by Wood Mackenzie, August 2017.</td></tr><tr><td colspan="1">No compromises on food contact safety</td></tr><tr><td colspan="1">Plastic packaging for the food industry is frequently questioned in terms of its impact on human health, and this occurs regardless of plastic origin. It is our believe that this apparent concern is due to lack of knowledge about the true effects of plastic on human health. We see it as our task to improve communication externally on what our products do to protect food and ensure high standards of food safety and quality in the plastic packaging itself.</td></tr><tr><td colspan="1">Each time a new product is designed, food safety is guaranteed by thorough investigations and tests conducted internally and by recognized third party laboratories. Subsequently, the products are tested and validated at our customers’ premises. This ensures compliance with legislation for food contact safety. Our results on reported cases of migration tests are documented and we are transparent about our effort.</td></tr><tr><td colspan="1">Going further than legislation requires</td></tr><tr><td colspan="1">Faerch has decided to go even further than legislation requires, as we want to maintain our leading position in methods, procedures and product recipes designed to protect food and ensure high product standards. Therefore, we increased the focus on non-intentionally added substances (NIAS). NIAS are chemical compounds that are present in a material, for instance as a result of chemical reactions, which have not been added intentionally to the final products during the production process.</td></tr><tr><td colspan="1">In 2015, Faerch defined a test method and set up a testing scheme on NIAS. In 2017, we developed the procedures and introduced the KPIs in order to report internally on NIAS tests. The twelve tests performed in 2017 showed no breaches of the established limits.</td></tr><tr><td colspan="1">Faerch follows closely the international development of NIAS investigation methods and consider these methods the most appropriate approach to mitigate concerns related to food contact safety.</td></tr><tr><td colspan="1">We understand and acknowledge that it may by difficult for consumers to distinguish between different types of plastic packaging and with what purpose the packaging is designed, as the tray on the shelf does not reveal its content or origin. By overall and specific analysis, performed systematically, Faerch strive to handle this situation by testing our trays for wider areas of applications than the trays were originally intended.</td></tr><tr><td colspan="1">Bringing plastics recyclability to the next level Working further with product innovation, we kept investigating how Faerch in the long-term can deliver Cradle-to-Cradle flow. Our idea was to replace soft drink bottles with our own product, where recycled plastic rPET can be produced from plastic trays.</td></tr><tr><td colspan="1">In 2014, in collaboration with the supermarket chains Marks &amp; Spencer and Sainsbury’s and other industrial players, Faerch initiated a project in Great Britain with the purpose of increasing the number of plastic trays (CPET) that can be identified and sorted in the mixed household waste.</td></tr><tr><td colspan="1">Our contribution to this project was the development of a tray with a special colour pigment (black ID) that can be detected amongst household waste. Even though the tray appears black to a human eye, it is actually blue when being detected by recyclable equipment. When the trays are sorted from the waste, they can be cleaned and reprocessed in such a way that is approved for further application in food industry. Lars Gade Hansen, Group CEO of Faerch, says: “We ensure our trays can be sorted. In this way, the tray has become a resource, which can be used in a new life cycle.”</td></tr><tr><td colspan="1">In 2015, continuing our search to achieve a fully developed solution, we engaged in cooperation with the private organisation ‘Eco Emballages’. The organisation is wellknown by the French authorities for sorting black PP plastic, which is primarily used for fresh meat and ready meals applications. With our solution, it was possible to detect the black trays using near-infrared radiation (NIR technology) in a sorting plant, similar to the project in Great Britain, and reuse the trays by utilising them as raw material.</td></tr><tr><td colspan="1">In 2016, we performed a number of tests at the sorting plants in France. The sorting sensors detected 100% of the trays with black ID as a coloured tray as well as a mono PP material.</td></tr><tr><td colspan="1">In 2017, a ‘real’ life test was successfully conducted in France involving industrial food producers and anticipating a new long-term plastic packaging sorting evolution. Today, the sorting systems in France cover the area of approximately 15 million French citizens. We are aiming to double the coverage in 2018.</td></tr><tr><td colspan="1">The industry is moving on</td></tr><tr><td colspan="1">At the end of 2017, one of the recycling organisations in Europe announced the introduction of a new MIR sorting technology capable of recycling all types of PET trays on a large scale from the middle of 2018. Even though black sorting systems have been available for some years, this is the first larger commercial installation, and we consider this a major break-through in the transition towards a circular economy.</td></tr><tr><td colspan="1">Faerch is committed to support and promote this development. However, we cannot do this alone, it should be done with partners and stakeholders. To a substantial degree, the progress of embedding in a circular economy requires a political decision and encouragement towards achieving greater recyclability on a national level. Lars Gade Hansen, Group CEO of Faerch, adds: “We have the knowhow, systems and technology to make it possible and recognize our responsibility to address the sustainability agenda and to practice this in our daily operations.”</td></tr><tr><td colspan="1">Our way to influence</td></tr><tr><td colspan="1">Creating a change takes time and requires relentless efforts. Faerch are aware of this. Therefore, in 2017, we dedicated a lot of effort and resources for our solutions, and by means of evidence-based approaches, we exhibited far-reaching efficiency with plastics recyclability, and the importance of black plastic and black colourants necessary to manage the carbon colour stream. .</td></tr><tr><td colspan="1">We talk about the need for these solutions and our ambitions to be the leader in the use of recycled plastic, approaching a number of recycling industry organisations with the message to promote, stimulate and increase the levels of plastics recycling. This is the way Faerch suggest to proceed and the approach to a sustainable solution.</td></tr><tr><td colspan="1">Faerch has initiated in dialogues with several nonprofit organisations, suppliers, waste management organisations and other associations on the improvement of plastics recycling and establishing next-generation technologies to generate high levels of green energy. Faerch believe that through awareness and commitment we can achieve our common ambition to deliver innovative solutions that ensure 100% product recyclability across our business.</td></tr><tr><td colspan="1">Challenges to be solved</td></tr><tr><td colspan="1">IIt is our expectation that the European Strategy for Plastics in a Circular Economy will support the transformation of plastic products in Europe and add value to the market and plastics industry. We consider the need for the right strategy with the clear aim to ensure 100% product recyclability across our industry. We acknowledge this task and as European market leader in plastic packaging for the food industry, Faerch are committed and will support and actively contribute to the success of the strategy.</td></tr><tr><td colspan="1">However, we should not forget the countries that are outside of Europe, where plastic waste management and its impact remains an immense challenge. There, we still have an unsolved task of building a new mentality and behaviour to move away from throwaway culture.</td></tr><tr><td colspan="1">Another challenge causing growing public concern is the increasing quantities of plastic waste ending up in the oceans and generating significant economic and environmental damage. Even though plastic waste entering the oceans from Europe represents a small proportion of global marine litter, Faerch have committed to the best practices taking the first step to ensure that plastic materials, which flows through our facilities, are handled carefully, and do not end up in the oceans.</td></tr><tr><td colspan="1">In 2017, at the Danish factory, we initiated an internal project under the ‘Operation Clean Sweep’ programme with the purpose of ensuring zero plastic pellet loss and, by this, to contribute to the clean marine environment. In 2018, we will promote the ‘Operation Clean Sweep’ programme across all our factories with a target to implement this initiative by the end of 2018.</td></tr><tr><td colspan="1">A true closed loop is about making a difference</td></tr><tr><td colspan="1">Consumers should expect food suppliers to make sustainable environmental choices, not only in terms of food content, but also in terms of packaging. Sustainability creates preconditions to make proper choices, leading consumers to “feel good” about their purchase, and creating a unique selling proposition for the food industry.</td></tr><tr><td colspan="1">It is Faerchs commitment to raise the standard of sustainable food packaging. In all decisions, we are committed to make a difference applying the principles of a true closed loop by taking ownership and responsibility on actual recycling.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Gender distribution among the members of the Board of Directors</td></tr><tr><td colspan="1">According to the protocol of the board meeting of 22 August 2013, it was decided that within a period of 4 years, the Board of Directors will endeavor to ensure that the underrepresented gender will constitute 40 % of the shareholder-elected board members. Furthermore, on the board meeting of 22 August 2013 a policy of gender equality was approved. The disclosed policy is now fully implemented and ensures equal career opportunities for women and men in Faerch.</td></tr><tr><td colspan="1">Færch Plast Group A/S have chosen only to report consolidated for subsidairies which individually are required to report on the underrepresented gender in accordance with section 99b of the Danish Financial Statements Act due to their obligation to report under reporting class large C.</td></tr><tr><td colspan="1">The above mentioned limitation leads to that only Færch Plast A/S is to be included. Færch Plast A/S has set a target for the underrepresented gender on its Board of Directors. The current status is zero as the owners of Færch Plast A/S did not find it nessecary to make changes in 2017.</td></tr><tr><td colspan="1">Gender distribution on manager level 2017</td></tr><tr><td colspan="1">In 2017, due to the structural reorganisation of our company with a subsequent split into the ‘Region ‘Continental Europe’ and the ‘Region UK &amp; Ireland’, we reviewed the approach to report on gender proportion on manager level. The data are measured and available from 2017, where we report on gender proportion totally for all managers in Faerch group merging ‘Senior Manager’ and ‘Manager’ into one reporting category.</td></tr><tr><td colspan="1">Policy and initiatives to ensure more women in management</td></tr><tr><td colspan="1">Faerch wants to ensure equal opportunities for women and men, valuing and respecting individual differences. The competitive advantage lies in continuing to develop a culture where all employees have the opportunity to realise their full potential. The company’s policy to ensure more female managers will guide its efforts to increase the number of women at management level. The policy aims to improve the representation of women in management at Faerch in general, in accordance with Danish Financial Statements Act § 99b.</td></tr><tr><td colspan="1">We want to develop potential female managers who are already in managerial positions at Faerch and to select more women with the potential to obtain a management position. This is being done to ensure an increase in the share of women in management at Faerch</td></tr><tr><td colspan="1">- To ensure that all aspects of Faerch’s personnel policy promote women’s and men’s equal career opportunities, including in connection with the company’s hiring procedures, recruitment and parental leave conditions.</td></tr><tr><td colspan="1">- To ensure, as far as possible, that there are both female and male candidates in both internal and external recruitment.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">GOVERNANCE</td></tr><tr><td colspan="1">We take on responsibility</td></tr><tr><td colspan="1">Faerch Plast Group is an international organization, which endeavors to act as a proper and responsible company through internal and external policies.</td></tr><tr><td colspan="1">Training in fair competition and anti-corruption</td></tr><tr><td colspan="1">Faerch Plast actively supports international anticorruption and anti-competitive efforts and is dedicated to upholding the highest standards of integrity and business ethics among our employees and business partners.</td></tr><tr><td colspan="1">Faerch Plast has a zero tolerance for corruption and anticompetitive activities.</td></tr><tr><td colspan="1">By implementing guidelines, policies, e-learning and conducting on-site training for executives, managers, sale and procurement departments etc., Faerch Plast works seriously with inappropriate business conduct.</td></tr><tr><td colspan="1">In 2017, 18 employees were trained in anti-corruption and fair competition - against 118 employees in 2016.</td></tr><tr><td colspan="1">The training of employees is often done in smaller groups of 5-10 employees in order to obtain a good face-to-face dialogue. The training enables our employees to execute business negotiations, attend meetings and social event with knowledge and understanding of basic competition law and anti-corruption law in order to protect themselves but also to protect the reputation of Faerch Plast.</td></tr><tr><td colspan="1">In the second quarter of 2018, Group Legal will give the UK organisation on-site training in Faerch Plast’s policies and internal guidelines within fair competition and anticorruption. In addition, the same employees must also pass the e-learning module in anti-corruption.</td></tr><tr><td colspan="1">A good relationship with our suppliers</td></tr><tr><td colspan="1">Faerch Plast values long-term supplier relationships based on a trusting collaboration. As part of this collaboration, written expectations towards the suppliers has been established in a ‘Supplier Code of Conduct’. The ‘Supplier Code of Conduct’ reflects the ten principles of the UN Global Compact, which covers human rights, labour rights, the environment and anti-corruption.</td></tr><tr><td colspan="1">Faerch Plast’s ‘Supplier Code of Conduct’ has been accepted and signed by all of raw material suppliers as well as the majority of the machine suppliers, IT suppliers and toolmakers.</td></tr><tr><td colspan="1">By the end of 2017, 475 suppliers in total has accepted and signed the ‘Supplier Code of Conduct’</td></tr></table> Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup Revisionspåtegning Myriam Deltenre Director Myriam Deltenre Chairman PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Claus Lindholm Jacobsen State Authorised Public Accountant mne23328 Lars Østergaard State Authorised Public Accountant mne26806 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 2723200000 1275900000 1753000000 5752200000 435800000 966800000 288400000 50000000 1740900000 5500000 7498500000 301800000 435900000 17300000 12200000 33700000 374700000 1175600000 8674100000 14000000 -14900000 1265700000 1264800000 3954600000 1764400000 831000000 6550000000 351500000 268500000 70000000 162700000 6600000 859400000 7409300000 8674100000 120600000 Profitloss before tax -122600000 Proceeds from capital increase 1406100000 0