XX month 2018	Specimen financial report 2017 De Middelgrote B.V. Statutory seat

Contents

Report to the board	4

Directors’ report	11

Directors’ report	12

Financial statements	13

Consolidated financial statements	14

Consolidated balance sheet as at 31 December 2017	15

Consolidated income statement for the year ended 31 December 2017	17

Consolidated cash flow statement for the year ended 31 December 2017	18

Notes to the consolidated balance sheet and income statement	21

Company financial statements	64

Balance sheet as at 31 December 2017	65

Income statement for the year ended 31 December 2017	66

Notes to the company balance sheet and income statement	67

Other information	78

Articles of association governing profit appropriation	79

Independent auditor’s report	80

Report to the board

Results

Development of income and expenses

As presented in the profit and loss account, the net result for 2017 amounts to € 0 (2016: € 0).

To provide insight in the development of the result for 2017, below an outline has been prepared based on the profit and loss account of 2017 compared to the profit and loss account of 2016. Income and expenses are expressed in thousands of euros and as a percentage of the net turnover.

2017	2016
€	%	€	%
Revenue	0	0,0	0	0,0
Cost of sales	0	0,0	0	0,0
Gross operating result	0	0,0	0	0,0
Selling expenses	0	0,0	0	0,0
General management expenses	0	0,0	0	0,0
Total operating expenses	0	0,0	0	0,0
Operating result	0	0,0	0	0,0
Movements in the value of investment properties	0	0,0	0	0,0
Amounts released from revaluation reserves	0	0,0	0	0,0
Income from securities	0	0,0	0	0,0
Interest income and similar income	0	0,0	0	0,0
Interest expenses and similar expenses	0	0,0	0	0,0
0	0,0	0	0,0
Result before tax	0	0,0	0	0,0
Income taxes	0	0,0	0	0,0
Share in profit/loss of participations	0	0,0	0	0,0
Result After tax	0	0,0	0	0,0
Result attributable to non-controlling interests	0	0,0	0	0,0

The profit/loss before taxation of 2017 compared to 2016 has increased/decreased/did not change.

The profit/loss before taxation of 2017 compared to 2016 can be presented as follows:

2017
€
The result has been positively influenced by:
Increase (income)	0
Decrease (expenses)	0
0
The result has been negatively influenced by:
Increase (expenses)	0
Decrease (income)	0
0
Increase/decrease/unchanged profit (loss) before taxation	0

Development of turnover and gross margin

Turnover
Year	Monetary value	Index 2011 = 100	Increase / decrease as compared to prior year	Gross margin as a percentage of turnover
€	%	%
2012	0	0	0,0	0,0
2013	0	0	0,0	0,0
2014	0	0	0,0	0,0
2015	0	0	0,0	0,0
2016	0	0	0,0	0,0
2017	0	0	0,0	0,0

Following, some items with regard to the paragraph ‘Results’ have been presented graphically.

Financial position

Below we provide an analysis of your company’s financial position. Note that the balance sheet items can fluctuate during the course of the year and the value as at the balance sheet date could deviate considerably from any randomly chosen date in the financial year. This might have influenced the impact on ratios had another date been selected.

A summary of the balance sheet as at December 31, 2017 in comparison with prior year is presented below:

31 December 2017 31 December 2016 € € € €
Assets Fixed assets 0 0 Inventories 0 0 Construction contracts 0 0 Accounts receivable 0 0 Securities 0 0 Cash at bank and in hand 0 0 0 0 Equity and liabilities Shareholders’ equity 0 0 Provisions 0 0 Long-term debts 0 0 Current liabilities 0 0 0 0

Working capital

A statement of the working capital has been prepared based on the above summary. Working capital is defined as all current assets less current liabilities. The amount of working capital provides information on the liquidity position of the company.

31 December 2017	31 December 2016	Movement
€	€	€
Inventories	0	0	0
Construction contracts	0	0	0
Accounts receivable	0	0	0
Securities	0	0	0
Cash at bank and in hand	0	0	0
Total current assets	0	0	0
Less: current liabilities	0	0	0
Working capital	0	0	0

Solvency

The solvency – defined as the ratio of the equity divided by the liabilities or, alternatively, the ratio of equity divided by the sum of equity and liabilities – shows the resilience of the company.

General principles for the solvency level are not available, as this depends on the nature of the company. The ratios presented below provide insight into the company’s solvency.

2017	2016	2015	2014
Ratio equity / sum of equity and liabilities	0,0	0,0	0,0	0,0
Ratio equity / liabilities	0,0	0,0	0,0	0,0

Liquidity

The liquidity – defined as the ratio of current assets divided by current liabilities – shows to what extent the company is able to settle its financial liabilities in the short term. The ratios presented below provide insight into the company’s liquidity.

2017	2016	2015	2014
Quick ratio
Ratio receivables, securities and cash / current liabilities	0,00	0,00	0,00	0,00
Current ratio
Ratio current assets / current liabilities	0,00	0,00	0,00	0,00

Earning capacity

The earning capacity of the liabilities indicates the rate of expenses compared to liabilities operative in the company. The ratios presented below provide insight into the company’s earning capacity.

2017	2016	2015	2014
Interest expenses / average liabilities	0,0	0,0	0,0	0,0

The earning capacity of the equity consists of an interest allowance for the use of the equity and an allowance for taking risks (entrepreneurs’ risk). The ratios presented below provide insight into the earning capacity of the equity in the company.

2017	2016	2015	2014
Result after taxation / average equity	0,0	0,0	0,0	0,0

Employees

2017	2016	2015	2014
€	€	€	€
Average net turnover per employee (net turnover / average number of employees)	0	0	0	0
Average personnel expenses per employee (personnel expenses / average number of employees)	0	0	0	0
2017	2016	2015	2014
%	%	%	%
Personnel expenses in % of net turnover	0	0	0	0

Fiscal position

Fiscal unity

Effective day/month/year, De Middelgrote B.V. is the head of/forms part of the fiscal unity for corporate income tax purposes with the following companies:

B.V. Q;

B.V. R;

Etc.

Effective day/month/year, the following companies are no longer part of the fiscal unity for corporate income tax purposes, of which De Middelgrote B.V. is part:

B.V. Q;

B.V. R;

Etc.

The other companies forming part of the fiscal unity for corporate income tax are charged as if they were separately liable for tax, taking into account an allocation of the benefits of the fiscal unity to the various companies.

The company forms part of the fiscal unity with ….. B.V. and is therefore not separately liable for income tax. The corporate income tax is calculated as if the company was separately liable for income tax and is offset against the current account with ….. B.V. Reference is made to the financial statements of ….. B.V. for the calculation of the tax liability of the fiscal unity.

Taxable amount and tax financial year

The taxable amount can be calculated as follows:

€	€
Result before taxation	0
Lower amortisation/depreciation for tax purposes	0
Non-deductible expenses for tax purposes	0
Capital disposal charge, 0,0% of € 000.000	0
0
0
Higher amortisation/depreciation for tax purposes	(0)
Share in profit/loss of participations	(0)
Investment allowance, 0,0% of € 0	(0)
(0)
Taxable amount	0

The taxation according to the profit and loss account can be calculated as follows:

€	€
0,0% of the taxable amount	0
Adjustments prior years	0
Movement in provision for deferred tax liabilities	0
0
Taxation according to the profit and loss account	0

Provision for deferred tax liabilities

Due to differences between the valuation principles in the financial statements and the valuation for tax purposes of the respective balance sheet items, a provision for deferred tax liabilities has been recognised in the financial statements.

The calculation of the provision as at year-end 2017 is as follows:

€
Valuation (name of item) according to the financial statements	0
Valuation (name of item) for tax purposes	0
Difference between commercial and fiscal valuation	0
Provision for deferred tax liabilities: 0,0% of € 0	0

Movements during the year

Liability/ receivable as at 1 January	Corporate income tax charge/gain for the year	Paid/ received during the year	Liability/ receivable per 31 December
€	€	€	€
2016	0	0	0	0
2017	0	0	0	0
0	0	0	0

The assessment imposed are final through 2014.

Tax losses carried forward

To be settled	Available for compensation until
€
2016	0	2023
2017	0	2024
0

These losses can be offset against expected future fiscal profits for a period of nine years and have been recognised on the balance sheet as a deferred income tax receivable, under the item Financial fixed assets.

Signing of the report to the board

We trust to have been of service. Should you have any questions or comments, we are available to provide a more detailed explanation.

Name, place, date

Directors’ report

Directors’ report

; refer to the following summary

Paragraphs 110a up to and including 112, of RJ 400 contain a detailed description and discussion of risks and uncertainties which the corporation may face (including risks of (derivative) financial instruments).

Place, date

Financial statements

Consolidated financial statements

Consolidated balance sheet as at 31 December 2017

(Before appropriation of result)

Assets	31 December 2017	31 December 2016
BMJ
Model B	(x 1,000)	Note	€	€	€	€

2:364-1 BW	Fixed assets
2:364-2 BW	Intangible fixed assets	6.	0	0
2:364-2 BW	Tangible fixed assets	7.	0	0
RJ 213	Investment properties	8.	0	0
2:364-2 BW	Financial fixed assets	9.	0	0
0	0
2:364-1 BW	Current assets
2:364-3 BW	Inventories	10.	0	0
RJ 221.406	Construction contracts	11.	0	0
2:364-3 BW	Receivables	12.	0	0
2:364-3 BW	Securities	13.	0	0
2:364-3 BW	Cash at banks and in hand	14.	0	0
0	0
0	0

Liabilities	31 December 2017	31 December 2016
(x 1,000)	Note	€	€	€	€

Group equity *)	16.
2:411-1 BW	Equity capital	0	0
2:411-2 BW	Non-controlling interest	17.	0	0
0	0
2:364-4 BW	Provisions	18.	0	0
2:364-4 BW	Non-current liabilities *)	19.	0	0
2:364-4 BW	Current liabilities	20.	0	0
0	0

240.305	*) The liable capital comprises group equity and subordinated loan(s), which are accounted for under non-current liabilities.
The liable capital as at 31 December 2017 amounts to € 0 (31 December 2016: € 0).

Consolidated income statement for the year ended
31 December 2017

2017	2016
BMJ
Model J	(x 1,000)	Note	€	€	€	€
2:379-3 BW	Gross operating result	0	0
2:377-4dBW	Selling expenses	0	0
2:377-4eBW	General management expenses	0	0
Total costs	0	0
Operating profit/(loss)	0	0
RJ 213.504	Movements in the value of investment properties	25.	0	0
RJ 240.407	Amounts released from revaluation reserves	0	0
2:377-4hBW	Proceeds from securities
2:377-4iBW	Financial income	26.
2:377-4kBW	Financial expense	26.	0	0
2:377-1aBW	Result before tax	0	0
2:377-1cBW	Tax on result	28.	0	0
RJ 214.307	Result from participations	27.	0	0
Result after tax	0	0
RJ 217.501	Result attributable to non-controlling interests	0	0
2:377-1dBW	Result after taxation	0	0

Consolidated cash flow statement for the year ended
31 December 2017

2017	2016
(x 1,000)	Note	€	€	€	€
RJ 360.209	Cash flow from operating activities
Operating profit/(loss)	0	0
RJ 360.212	Adjustments for:
Depreciation, amortisation and other impairments	0	0
Movement in provisions	0	0
0	0
RJ 360.212	Movements in working capital:
Inventories	10.	0	0
Construction contracts	11.	0	0
Receivables	12.	0	0
Securities	13.	0	0
Current liabilities (excluding borrowings)	20.	0	0
0	0
RJ 360.216	Cash generated from operations	0	0
RJ 360.213	Interest received	0	0
RJ 360.214	Corporate income tax paid	0	0
RJ 360.213	Interest paid	0	0
RJ 360.213	Dividend received	0	0
0	0
Net cash generated from operating activities	0	0

2017	2016
(x 1,000)	Note	€	€	€	€
RJ 360.217	Cash flow from investment activities
RJ 360.219	Acquisition of group companies	6.	0	0
Investments in intangible fixed assets	6.	0	0
Investments in tangible fixed assets	7.	0	0
Investments in investment properties	8.	0	0
RJ 360.219	Disposal of group companies	6.	0	0
Divestments in tangible fixed assets	7.	0	0
Divestments in investment properties	8.	0	0
Net cash generated from investment activities	0	0

2017	2016
(x 1,000)	Note	€	€	€	€
RJ 360.220	Cash flow from financing activities
Proceeds from issuance of shares	0	0
RJ 360.221	Dividends paid	0	0
Proceeds from borrowings	19.	0	0
Repayment on borrowings	19.	0	0
Net cash generated from financing activities	0	0
Net cash flows	0	0
RJ 360.203	Exchange gains/(losses) on cash at banks and in hand	0	0
Net increase/(decrease) in cash at banks and in hand	14.	0	0

The movement in cash at banks and in hand can be broken down as follows:

Balance as at 1 January	0	0
Movements during the financial year	0	0
Balance as at 31 December	0	0

Notes to the consolidated balance sheet and income statement

General notes
Activities
300.105	The activities of De Middelgrote B.V. and its group companies (‘the Group’) consist mainly of:
the production of and trade in electronic goods and computer components;
services in the area of IT processes and the implementation of software at third parties;
the development of tailor-made software on the instructions of third parties.
Sales take place both domestically and internationally, whereby the countries of the European Union are the most important markets.

Going concern

170.305	The equity of De Middelgrote B.V. amounts to € x negative as at 31 December 2017. It is financed in full with current liabilities/long-term debts, including current account funds provided by group entities / loans provided by banks / etc. The continuity of the company depends to a significant extent on the willingness of group entities / banks to continue these financing facilities. At present, no concrete commitments have yet been made in this respect by the group entities / banks. For this reason, there is an uncertain element of material importance based on which there could be reasonable doubt about the continuity of the activities of De Middelgrote B.V. as a whole. We expect that the cash flow will develop positively in the next few financial years as a result of the following measures we have already taken and the plans we have made:
……
……
170.302	Based on the conversations held with the group entities / banks in respect of our measures and plans, we expect that the financing facilities will be continued.
2:384-3 BW 170.105	The accounting principles applied to the valuation of assets and liabilities and the determination of results in these financial statements are based on the assumption of continuity of the company.
Registered office, legal form and registration number at the chamber of commerce
2:380b DCC 300.105	The registered and actual address of De Middelgrote B.V. is street name x, P.O. Box 0000, 0000 XX in Registered place of business and is registered at the chamber of commerce under number 00000000.
Group structure
2:379-3 BW	De Middelgrote B.V. is part of the XYZ group. The head of this group is XYZ Ltd of London. The financial statements of De Middelgrote B.V. are included in the consolidated financial statements of XYZ Ltd of London, UK.

140.2	Changes in accounting policies

145.3	Changes in accounting estimates

Estimates
2:362-1 BW	In applying the principles and policies for drawing up the financial statements, the directors of De Middelgrote B.V. make different estimates and judgments that may be essential to the amounts disclosed in the financial statements. If it is necessary in order to provide the transparency required under Book 2, article 362, paragraph 1, the nature of these estimates and judgments, including related assumptions, is disclosed in the notes to the relevant financial statement item.
2:362-6 BW 150.2	Correction of errors

Consolidation
2:406-1 BW 217.2 2:24a 2:24b BW	The consolidation includes the financial information of De Middelgrote B.V., its group companies and other entities in which it exercises control or whose central management it conducts. Group companies are entities in which De Middelgrote B.V. exercises direct or indirect control based on a shareholding of more than one half of the voting rights, or of which it has the authority to govern otherwise their financial and operating policies. Potential voting rights that can be exercised directly from the balance sheet date are also taken into account.
2:405 BW 217.3 217.4 2.411-2 BW	Group companies and other entities in which De Middelgrote B.V. exercises control or whose central management it conducts are consolidated in full. Participating interests in group equity and group result are disclosed separately. Participating interests over which no control can be exercised (associates) are not included in the consolidation.
2:409 BW 215.2	The Company’s interests in joint ventures are accounted for by proportionate consolidation. An entity qualifies as a joint venture if its participants exercise joint control under a collaborative agreement.
217.507 260.202 217.504	Intercompany transactions, profits and balances among group companies and other consolidated entities are eliminated, unless these results are realised through transactions with third parties. Unrealised losses on intercompany transactions are also eliminated, unless such a loss qualifies as an impairment. The accounting policies of group companies and other consolidated entities have been changed where necessary, in order to align them to the prevailing group accounting policies.

2:414 BW	The consolidated companies are listed below:
B.V. X, Assen, the Netherlands (100%)
B.V. Y, Meppel, the Netherlands (60%)
T B.V., Haarlem, the Netherlands (100%)
A N.V., Brussels, Belgium (100%)
B Ltd, Birmingham, United Kingdom (100%)
V.o.f. Z, Amsterdam, the Netherlands
215.206	Z V.o.f. of Amsterdam qualifies as a joint venture. Control in the partnership firm is exercised jointly with the other partner. The relative share of De Middelgrote B.V. in the assets, liabilities and result of V.o.f. Z is is proportionally recognized in the consolidation.
2:407-1a BW 217.304	Besides associates, a number of small majority shareholdings that are separately and jointly of negligible importance have been excluded from the consolidation.
2:407-1c BW 217.305	Disposal groups that are acquired solely held for disposal are not consolidated. These ‘held for disposal’ companies are recognised as securities as part of current assets, if, on the date of the acquisition, a sale within a year or within a short period thereafter is probable.
Section 402, Book 2 of the Dutch Civil Code
2:402 BW	Since the income statement for 2017 of De Middelgrote B.V. is included in the consolidated financial statements, an abridged income statement has been disclosed (in the company financial statements) in accordance with Section 402, Book 2 of the Dutch Civil Code.

OOB’s

Related parties
2:381-3 BW 330.201	All legal entities that can be controlled, jointly controlled or significantly influenced are considered to be a related party. Also entities which can control the Company are considered to be a related party. In addition, statutory directors, other key management of De Middelgrote B.V. or the ultimate parent company and close relatives are regarded as related parties.
Transactions with related parties are disclosed in the notes insofar as they are not transacted under normal market conditions. The nature, extent and other information is disclosed if this is necessary in order to provide the required insight.

Acquisition and disposal of group companies
216.105 216.202	Identifiable assets acquired and liabilities assumed in a business combination are recognised in the consolidated financial statements from the acquisition date, being the moment that control can be exercised over the acquired company.
216.203 2:389-7 BW 214.333 216.218 216.233	The acquisition price consists of the cash consideration, or equivalent, agreed for acquiring the company plus any directly attributable expenses. If the acquisition price exceeds the net amount of the fair value of the identifiable assets and liabilities, the excess is capitalised as goodwill under intangible assets. If the acquisition price is lower than the net amount of the fair value of the identifiable assets and liabilities, the difference (i.e. negative goodwill) is disclosed under accruals and deferred income (refer to the respective note).
Entities continue to be consolidated until they are sold; they are deconsolidated from the date that control ceases and if they are classified as groups held-for-disposal.
Accounting policies for the cash flow statement
360. 301 360.212 360.102 360.203 360.209 360.221 360.219 360.206 360.207	The cash flow statement has been prepared using the indirect method. The cash items disclosed in the cash flow statement comprise cash at banks and in hand except for deposits with a maturity longer than three months. Cash flows denominated in foreign currencies have been translated at average estimated exchange rates. Exchange differences affecting cash items are shown separately in the cash flow statement. Interest paid and received, dividends received and income taxes are included in cash from operating activities. Dividends paid are recognised as cash used in financing activities. The purchase consideration paid for the acquired group company has been recognised as cash used in investing activities where it was settled in cash. Any cash at banks and in hand in the acquired group company have been deducted from the purchase consideration. Transactions not resulting in inflow or outflow of cash, including finance leases, are not recognised in the cash flow statement. The value of the related asset and lease liability are disclosed in the notes to the balance sheet items. Payments of finance lease instalments qualify as repayments of borrowings under cash used in financing activities and as interest paid under cash generated from operating activities.

General accounting policies

General
2:362-10 BW	The financial statements are drawn up in accordance with the provisions of Title 9, Book 2 of the Dutch Civil Code and the firm pronouncements in the Dutch Accounting Standards, as published by the Dutch Accounting Standards Board (‘Raad voor de Jaarverslaggeving’).
2:384-1 BW 300.104	Assets and liabilities are generally valued at historical cost, production cost or at fair value at the time of acquisition. If no specific valuation principle has been stated, valuation is at historical cost. In the balance sheet, income statement and the cash flow statement, references are made to the notes.

Comparison with previous year
2:362-2 2:363-4 2:363-5 BW 140.202	The valuation principles and method of determining the result are the same as those used in the previous year, with the exception of the changes in accounting policies as set out in the relevant sections.
Foreign currency
Functional currency
2:362-7 BW 122.105	Items included in the financial statements of group companies are measured using the currency of the primary economic environment in which the respective group company operates (the functional currency). The consolidated financial statements are presented in euros, which is the functional and presentation currency of De Middelgrote B.V.
Transactions, receivables and liabilities
122.201	Transactions in foreign currencies are stated in the financial statements at the exchange rate of the functional currency on the transaction date.
122.203 122.207	Monetary assets and liabilities in foreign currencies are converted to the closing rate of the functional currency on the balance sheet date. The translation differences resulting from settlement and conversion are credited or charged to the income statement, unless hedge-accounting is applied.
122.203	Non-monetary assets valued at historical cost in a foreign currency are converted at the exchange rate on the transaction date.
122.203	Non-monetary assets valued at fair value in a foreign currency are converted at the exchange rate on the date on which the fair value was determined.
122.211	Translation differences on intragroup long-term loans that effectively constitute an increase or decrease in net investments in a foreign operation are directly recognised in equity as a component of the legal reserve for translation differences.
2:389-8 BW 122.217	Translation differences on foreign currency loans contracted to finance a net investment in a foreign operation are recognised in the legal reserve for currency translation differences if and when such loans effectively hedge the exchange rate exposure on that net investment in a foreign operation.
Group companies
122.302-a 122.302-b 122.310 122.302-c 122.404	Assets, liabilities, income and expenses of consolidated subsidiaries with a functional currency different from the presentation currency are translated at the closing rate of exchange prevailing at the balance sheet date. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of these subsidiaries and translated at the closing rate. Any resulting exchange differences are taken directly to the legal reserve for translation differences within equity.
Leasing
Financial leasing
292.118 292.201 292.204 292.206 292.207	The company leases some of the machinery, whereby it retains substantially all the risks and rewards of ownership of these assets. These assets are recognised on the balance sheet upon commencement of the lease contract at the lower of the fair value of the asset or the discounted value of the minimum lease payments. The lease instalments to be paid are divided into a repayment and an interest portion, using the annuity method. The liabilities under the lease, excluding the interest payments, are included under long-term debts. The interest component is included in the income statement for the duration of the contract on the basis of a fixed interest percentage of the average remaining redemption component. The assets are depreciated over the remaining economic life or, if shorter, the duration of the contract.

Operational leasing
292.210 292.211	The company may have lease contracts whereby a large part of the risks and rewards associated with ownership are not for the benefit of nor incurred by the company. The lease contracts are recognised as operational leasing. Lease payments are recorded on a straight-line basis, taking into account reimbursements received from the lessor, in the income statement for the duration of the contract.
Financial instruments
290.501 290.504	Securities included in financial and current assets are stated at fair value, if these are related to securities held for trading or if they relate to equity instruments not held for trading, as well as derivatives of which the underlying object is listed on a stock exchange. All other on-balance financial instruments are carried at (amortised) cost.
290.524	Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. If no fair value can be readily and reliably established, fair value is approximated by deriving it from the fair value of components or of a comparable financial instrument, or by approximating fair value using valuation models and valuation techniques. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, if available, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and/or option pricing models, making allowance for entity-specific inputs.
290.501 290.504	Derivatives are initially recognised in the balance sheet at fair value, the subsequent valuation of derivative financial instruments depends on whether or not the instrument is quoted in an open market. If the underlying object of the derivative financial instrument is listed on a stock exchange, it is valued at fair value. If the object is not quoted in an open market, it will be stated at cost or current value, if lower. Recognition of changes in the value of a derivative financial instrument is dependent on whether or not the instrument is designated as a hedging instrument to which hedge accounting is applied.
290.827	Derivatives embedded in a host contract (‘embedded derivatives’) are always separated from the host contract if:
no close relationship exists between the economic characteristics and risks of the derivative and the host contract; a separate instrument under the same conditions would satisfy the definition of a derivative.
290.603 290.614 290.615 290.616	De Middelgrote B.V. applies hedge accounting. The Company documents the relationship between hedging instruments and hedged items at the inception of the transaction. The Company also tests its assessment, both at hedge inception and on an ongoing basis, or whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. This can be done by comparing the critical characteristics of the hedge instrument with those of the hedged position, and/or by comparing the change in the fair value of the hedge instrument with the hedged position. If there is an indication of ineffectiveness, the company measures this potentially ineffective part by conducting a quantitative ineffectiveness analysis.

Derivatives quoted in an open market not designated as hedging instruments
290.504	These derivative financial instruments are stated at fair value. Changes in the fair value of these derivative instruments are recognised directly in the income statement.
Derivatives not quoted in an open market not designated as hedging instruments
290.504 290.501	These derivative financial instruments are stated at cost or current value, if lower, after initial recognition at fair value. If the fair value as at balance sheet date is lower than the cost of the derivative financial instrument, the difference is recognised in the income statement.

290.913d	Derivatives carried at fair value and to which fair value or cash flow hedge-accounting is applied

Derivative financial instruments valued at cost for which cost price hedge-accounting is applied
290.633	In applying cost price hedge accounting, the initial recognition of, and the accounting policies for, the hedging instrument are dependent on the hedged item. This means that: when the hedged item is carried at cost, the derivative instrument is also carried at cost; as long as the hedged If the hedged item qualifies as a monetary item denominated in a foreign currency, the derivative instrument, where it has currency elements, is also stated at the spot rate at the balance sheet date.
290.633	If the derivative instrument has currency elements, the difference between the spot rate on the date the derivative instrument is contracted and the forward rate at which it will be settled is spread over the maturity of the derivative instrument.
290.635	The ineffective portion of the hedge is recognised directly in profit or loss.
290.639	The Company shall discontinue prospectively the cost price hedge accounting if:
the hedging instrument expires or is sold, terminated or exercised; the hedge no longer meets the criteria for hedge accounting;
290.913d	De Middelgrote B.V. applies cost price hedge accounting to interest rate swaps that ensure that certain liabilities with variable interest rates are converted into loans with fixed interest rates. The ineffective portion of the change in value of the interest rate swaps is recognised in profit or loss under the financial income and expense.
290.913d	De Middelgrote B.V. also uses cost price hedge accounting for its forward exchange contracts intended for future purchases in pounds sterling and sales in US dollars. Where appropriate, the gain or loss relating to the ineffective portion of the change in value of forward exchange contracts is recognised in the income statement within financial income and expense.

Net investment hedge of a foreign operation
290.640 290.913d	Foreign exchange differences on a loan denominated in a foreign currency that was contracted to fund or hedge a net investment in a foreign operation are recognised in the reserve for currency translation differences within equity. De Middelgrote B.V. uses hedge accounting for the loan denominated in pounds sterling that was contracted to fund the net investment in pounds sterling.

Derivatives held for hedging purposes should be valued at cost or fair value. It is permitted to apply one of these options by type of hedging relationship (for example, fair value hedge accounting for currency hedges on stock positions and cost price hedge accounting for hedging the interest rate risk on floating rate loans through interest rate derivatives) (RJ 290.511).

Accounting policies applied to the valuation of assets and liabilities
Intangible fixed assets
210.203 210.401 2:387-4 BW 121.401	Intangible fixed assets are stated at historical cost less amortisation. Impairments are taken into consideration; this is relevant in the event that the carrying amount of the asset (or of the cash-generating unit to which the asset belongs) is higher than its realisable value.
With regard to the determination as to whether an intangible fixed asset is subject to an impairment, please refer to note 3.5 “Impairment of fixed assets”.

Development costs
2:365-1b BW 210.221 210.224	Expenditure on development projects is capitalised as part of the production cost if it is likely from both a commercial and technical perspective that the project will be successful (i.e.: if it is likely that economic benefits will be realised) and the cost can be determined reliably. A legal reserve has been recognised within equity with regard to the recognised development costs for the capitalised amount. The amortisation of capitalised development costs commences at the time when the commercial production starts and takes place over the expected future useful life of the asset. Research costs are recognised in the income statement.
Concessions, licenses and intellectual property
2:365-1c BW 210.201 210.401	Costs of intangible assets other than those internally generated, including patents and licences, are valued at acquisition cost and amortised on a straight-line basis over their estimated future useful lives, with a maximum of 20 years.
Goodwill
2:265-1d BW 216.218	Goodwill resulting from acquisitions and calculated in accordance with section "Acquisition and disposal of group companies" is capitalised and amortised on a straight-line basis over the estimated economic life.

216:235	Negative goodwill is released in the income statement to the extent that charges and losses occur, if it is taken into account in the allocation of the acquisition and these charges and losses can be measured reliably. If expected charges and losses have not been taken into account, the negative goodwill is released based on the weighted average of the remaining life of the acquired amortisable assets. Insofar as the negative goodwill exceeds the fair value of the non-monetary assets identified, the surplus is recognised directly in the income statement.
Tangible fixed assets
212.301 212.302 212.402 212.434 2:387-4 BW 121.401	Land and buildings are valued at historical cost plus additional costs or production cost less straight-line depreciation based on the expected useful life. Land is not depreciated. Impairments expected on the balance sheet date are taken into account. With regard to the determination as to whether a tangible fixed asset is subject to an impairment, please refer to the relevant section.
212.301 212.302 212.402 212.233	Other tangible fixed assets are valued at historical cost or production cost including directly attributable costs, less straight-line depreciation based on the expected future life and impairments.

212.313 274.112	Subsidies on investments will be deducted from the historical cost price or production cost of the assets to which the subsidies relate.
212.435	For obligations to restore the asset after use (dismantling cost) a provision is recognised for the expected amount at the time of capitalisation. This amount is recognised as part of the carrying amount of the asset against which a provision is recognised for the full amount.
212.511	If land was purchased with buildings with the intention to demolish or remove these buildings and to construct new buildings any carrying amount of the buildings and any demolition costs should be included in the acquisition price of the land.
212.445 212.451 212.452	A provision for major maintenance has been created for the future costs of major maintenance to the buildings. The addition to the provision is determined based on the expected amount of the maintenance work and the intervals between the times when major maintenance work is carried out.

Investment properties
213.105 213.301 213.501 213.502 213.504 213.503	Investment properties are properties held to generate rental income, to achieve capital appreciation or both. Investment properties, including investment properties under construction, are valued initially at historical cost and subsequently at fair value. The details of this are, amongst others, based on the available market data and compiled by external appraisers. Changes in value of investment properties are included in the income statement. In addition, a revaluation reserve is recognised and charged against Other reserves. The revaluation reserve is recognised for the positive difference between the fair value and initial historical or production cost (excluding any depreciation or impairment costs) and after deduction of relevant (deferred) tax liabilities. Investment properties under construction for which the fair value cannot be determined reliably are valued at cost until such time as the fair value can be determined reliably.

214.602	Financial fixed assets
Participations
214.301 214.302	Participations (associates), over which significant influence can be exercised, are valued according to the net asset value method. In the event that 20% or more of the voting rights can be exercised, it may be assumed that there is significant influence.
214.307 2:389-2 BW	The net asset value is calculated in accordance with the accounting principles that apply for these financial statements; with regard to participations in which insufficient data is available for adopting these principles, the valuation principles of the respective participation are applied.
214.339	If the valuation of an associate based on the net asset value is negative, it will be stated at nil. If and insofar as De Middelgrote B.V. can be held fully or partially liable for the debts of the associate, or has the firm intention of enabling the participation to settle its debts, a provision is recognised for this.
214.309	Newly acquired associates are initially recognised on the basis of the fair value of their identifiable assets and liabilities at the acquisition date. For subsequent valuations, the principles that apply for these financial statements are used, with the values upon their initial recognition as the basis.
214.502	The amount by which the carrying amount of the associate has changed since the previous financial statements as a result of the net result achieved by the associate is recognised in the income statement.

214.304 214.504	Participations over which no significant influence can be exercised are valued at historical cost. The result represents the dividend declared in the reporting year, whereby dividend not distributed in cash is valued at fair value.
2:387-4 BW 121.401 121.402	In the event of an impairment loss, valuation takes place at the realisable value (see also section “Impairment of fixed assets"); an impairment is recognised and charged to the income statement.

Loans to associates
222.201 214.402 214.403	Receivables recognised under financial fixed assets are initially valued at the fair value less transaction cost (if material). These receivables are subsequently valued at amortised cost. For determining the value, any impairments are is taken into account.
Securities
226.201 214.404	The accounting principles for the other securities included under the financial fixed assets are equal to those applicable to securities included under the current assets. Reference is made to the paragraph Securities.
Deferred tax assets
272.306 272.403	Deferred tax assets are recognised for all deductible temporary differences between the value of the assets and liabilities under tax regulations on the one hand and the accounting policies used in these financial statements on the other, on the understanding that deferred tax assets are only recognised insofar as it is probable that future taxable profits will be available to offset the temporary differences and available tax losses.
272.401	The calculation of the deferred tax assets is based on the tax rates prevailing at the end of the reporting year or the rates applicable in future years, to the extent that they have already been enacted by law.
272.404	Deferred income taxes are recognised at nominal value.

Other receivables
222.303 222.201 222.202 290.537	Other receivables presented under financial assets include issued loans and other receivables as well as purchased loans that will be held to their maturity date. These receivables are initially measured at fair value and subsequently carried at amortised cost. If loans are issued at a discount or premium, the discount or premium is recognised through profit or loss over the maturities of the loans using the effective interest method. Also transaction costs are included in the initial valuation and recognised through profit or loss as part of the effective interest method. Impairment losses are deducted from amortised cost and expensed in the income statement.

Impairment of fixed assets
2:387-5 BW 121.202 121.304 121.201 2:387-5 BW	On each balance sheet date, the company assesses whether there are any indications that a fixed asset may be subject to impairment. If there are such indications, the realisable value of the asset is determined. If it is not possible to determine the realisable value of the individual asset, the realisable value of the cash-generating unit to which the asset belongs is determined. An impairment occurs when the carrying amount of an asset is higher than the realisable value; the realisable value is the higher of the realisable value and the value in use. An impairment loss is directly recognised in the income statement while the carrying amount of the asset concerned is concurrently reduced.
121.305 121.306 121.309	The realisable value is initially based on a binding sale agreement; if there is no such agreement, the realisable value is determined based on the active market, whereby usually the prevailing bid price is taken as market price. The costs deducted in determining net realizable value are based on the estimated costs that are directly attributable to the sale and are necessary to realize the sale. For the determination of the value in use, an estimate is made of the future net cash flows in the event of continued use of the asset / cash-generating unit; these cash flows are discounted, based on a discount rate of ...% (2016: ...%) . The discount rate does not reflect risks already taken into account in future cash flows.
2:387-5 BW 121.605 121.608	If it is established that an impairment that was recognised in the past no longer exists or has reduced, the increased carrying amount of the asset concerned is set no higher than the carrying amount that would have been determined if no impairment value adjustment for the asset concerned had been reported. An impairment of goodwill cannot be reversed.
121.102 290.533	The Company assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired. If any such evidence exists, the impairment loss is determined and recognised in the income statement
290.537	The amount of an impairment loss incurred on financial assets stated at amortised cost is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial recognition). If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss shall be reversed. The reversal shall not result in a carrying amount of the financial asset that exceeds what the amortised cost would have been had the impairment not been recognised at the date the impairment is reversed. The amount of the reversal shall be recognised through profit or loss.
290.537	If an impairment loss has been incurred on an investment in an equity instrument carried at cost, the amount of the impairment loss is measured as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. The impairment loss shall be reversed only if the evidence of impairment is objectively shown to have been removed.

Inventories
Inventories for own use and sales
220.301	Inventories (stocks) are valued at historical price or production cost based on the FIFO method (first in, first out) or lower realisable value.
220.302 2:388 BW	The historical cost or production cost consist of all costs relating to the acquisition or production and the costs incurred in order to bring the inventories to their current location and current condition. The production cost includes direct labour and fixed and variable production overheads, taking into account the costs of the operations office, the maintenance department and internal logistics.
220.323	The realisable value is the estimated sales price less directly attributable sales costs. In determining the realisable value the obsolescence of the inventories is taken into account.

The presentation of a revaluation reserve in the consolidated financial statements is not required pursuant to article 2:410 sub 1 Dutch Civil Code.

Construction contracts
221.407 221.409	Construction contracts commissioned by third parties comprises the balance of project costs realised, profit attributed, and if applicable, recognised losses and instalments already invoiced. Construction contracts are separately presented in the balance sheet under current assets. If it shows a credit balance, this will be presented under current liabilities.
221.312	Expenditure relating to project costs for work not yet performed is recognised under inventories.

Accounts receivable
222.201 222.202 222.201 222.203	Trade receivables are recognised initially at fair value and subsequently measured at amortised cost. If payment of the receivable is postponed under an extended payment deadline, fair value is measured on the basis of the discounted value of the expected revenues. Interest gains are recognised using the effective interest method. When a trade receivable is uncollectible, it is written off against the allowance account for trade receivables.

Securities
226.201	Securities are recognised initially at fair value. Securities can, for the subsequent valuation, be divided into securities that are held for trading and securities that are not held for trading, being equity instruments or bonds.
226.203	Securities which are held for trading are carried at fair value after initial recognition. Changes in the fair value are recognised directly in the income statement.
226.205 226.210 226.204	The equity instruments included under securities (not listed), which are not held for trading, are carried at cost. If the fair value of an individual security should drop below its cost price, the impairment is recognised in the income statement. The equity instruments included under securities that are listed, and which are not held for trading, are carried at fair value. An increase in value of these kind of securities is added to the revaluation reserve. When these securities are derecognised, the accumulated fair value adjustments previously recognised in the revaluation reserve are included in the income statement.
226.206	Purchased bonds which are not held for trading are stated at amortised cost. If the fair value of an individual security should drop below the amortised cost value, it is measured at its impaired value; any write-offs are disclosed in the income statement. With regard to interest-bearing securities, the interest gains are accounted for using the effective interest method.
226.201	Transaction costs are expensed in the income statement if these are related to financial assets carried at fair value through profit or loss.
226.201	Transaction costs related to securities carried at fair value with changes in equity, are recognised in the initial valuation. The transaction costs are presented in the income statement when the securities are sold to a third party.
226.201	Transaction costs related to securities that are carried at amortised cost are included in the initial valuation of the security.
226.301	Securities classified under the current assets have a maturity of less than twelve months.

Cash at banks and in hand
228.103 228.201	Cash at banks and in hand represent cash in hand, bank balances and deposits with terms of less than twelve months. Overdrafts at banks are recognised as part of debts to lending institutions under current liabilities. Cash at banks and in hand is carried at nominal value.
Equity
240.216 240.215	When De Middelgrote B.V. purchases treasury shares, the consideration paid is deducted from equity (other reserves) or any other reserve if the articles of association allow so) until the shares are cancelled or reissued. Where such shares are subsequently reissued, any consideration received is included in equity (other reserves or any other reserve). The consideration received will be added to the reserve from which earlier the purchase price has been deducted.
240.219	Incremental costs directly attributable to the purchase, sale and/or issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.

Revaluation reserve
2:390-5 BW 240.222	If revaluations have been recognised in the revaluation reserve after the deduction of relevant (deferred) tax liabilities, the gross result of the realised revaluations is recognised in the income statement. The corresponding release of the (deferred) tax liabilities is charged to the operating result as tax.

Non-controlling interest
217.501	Non-controlling interests in group equity are stated at the amount of the net interest in the net assets of group companies concerned.
217.508	Where the group company in question has an equity deficit, the negative value and any other losses are not allocated to the non-controlling interest, unless the non-controlling interest holders have a constructive obligation and are able to clear the losses. As soon as the group company manages to post an equity surplus, profits are allocated to the participating interest.
Provisions
General
252.301 271.315 271.316 252.503	Provisions are measured at the best estimate of the amount that is necessary to settle the obligation as per the balance sheet date. Provisions for pension are valued on the basis of actuarial principles. The other provisions are carried at the nominal value of the expenditure that is expected to be necessary in order to settle the obligation, unless stated otherwise.
252.311	If obligations are expected to be reimbursed by a third party, such reimbursement is included as an asset in the balance sheet if it is probable that such reimbursement will be received when the obligation is settled.

252.501	Pension provision
Dutch pension schemes
271.324	De Middelgrote B.V. has a number of pension schemes for its employees. The most important characteristics of these schemes are:
…
…

271.324	De Middelgrote B.V. has a number of pension schemes to which the provisions of the Dutch Pension Act (‘Pensioenwet’) are applicable. De Middelgrote B.V. pays premiums based on (legal) requirements, a contractual or voluntary basis to pension funds and insurance companies. Premiums are recognised as employee cost when they are due. Prepaid contributions are recognised as deferred assets if these lead to a refund or reduction of future payments. Contributions that are due but have not yet been paid are presented as liabilities.
271.313 271.314	For existing contractual terms (other than premiums to be paid) with the pension fund / insurance company or commitments to employees a provision or receivable is recognised. This provision/receivable includes:
the obligation of De Middelgrote B.V. to provide additional payments or recovery premiums due to a low coverage ratio of the pension fund;
additional pension entitlements arising from promised salary increases if a final pay pension is applicable;
unconditional indexation that is not yet funded;
surplus interest or profit sharing which is made available to De Middelgrote B.V. under the conditions of an insurance contract;
disadvantages of individual value transfers at the expense of De Middelgrote B.V.;
obligations to employees that are not insured through a pension fund.
271.315 271.316 271.317	The pension provision is valued at its best estimate. The obligation includes the present value of the expenditures that are probably required to settle. The present value factor is the current interest rate of high-quality corporate bonds. If the obligation is due within a year, the obligation is not discounted. Additions and withdrawals from the pension provision are recognised in the income statement.

252.501	Foreign pension plans
271.320	For foreign pension plans similar to the way in which the Dutch pension system is designed and operates, recognition and measurement of liabilities arising from these pension schemes are carried out in accordance with the valuation of the Dutch pension schemes.
271.321	For foreign pension schemes which are not similar to the way in which the Dutch pension system is designed and operates, a best estimate is made of the obligation as at the balance sheet date. The liability is determined using the Projected Unit Credit method, as used in IAS 19 and FAS 87/158.

252.501	Deferred tax liabilities
272.301 272.401	Deferred tax liabilities are recognised for temporary differences between the value of the assets and liabilities under tax regulations on the one hand and the book values applied in these financial statements on the other. The computation of the deferred tax liabilities is based on the tax rates prevailing at the end of the reporting year or the rates applicable in future years, to the extent that they have already been enacted by law.
272.318	Deferred income tax is provided on temporary differences arising on investments in group companies, associates and joint ventures, except where the timing of the reversal of the temporary difference is controlled by De Middelgrote B.V. and it is probably that the temporary difference will not reverse in the foreseeable future.
272.404	Deferred tax balances are valued at nominal value.

252.501	Provision for decommissioning obligations
252.426	If and when De Middelgrote B.V. should be liable for decommissioning costs based on its market share in any year, the Company will form a provision in that year for its share in the estimated decommissioning costs related to the market share of that year.
If and when the production or marketing of new products should result in a decommissioning obligation, De Middelgrote B.V. will form a provision at the moment of manufacture or marketing respectively of the products in question.
252.428	If the Company participates in a decommissioning fund and it makes payments to the fund for the purposes of reimbursing or settling the decommissioning obligations, it is established whether the payments result in settlement of the present (legal) obligation. The following two scenarios may apply:
if and when the payment does not result in settlement of its present (legal) obligation, the right to reimbursement from the fund is recognised as a separate asset in the balance sheet up to the entitlement to the assets in the decommissioning fund available for settlement of the obligation;
if and when the payment does result in settlement of the present (legal) obligation, the Company is no longer required to disclose it in the balance sheet.
215.501	Jubilee benefits
271.203	The provision for jubilee benefits is measured at the present value of expected benefits payable during employment. The calculation of the provision takes the expected future salary increases and the likely stay into account. The present value factor is the market rate of interest of high-quality corporate bonds of ...% (2016: y%).
215.501	Provision for major maintenance of buildings
252.421	A provision is recognised for expenditures incurred on major maintenance work on buildings in order to spread these costs over a number of financial years. The addition to the provision is determined based on the expected amount of the maintenance work and the intervals between the times when major maintenance work is carried out.
215.501 252.424	Provision for associates with negative net asset value

215.501	Provision for continued payment of wages during illness
271.205	The provision for continued payment of wages during illness is recognised for liabilities existing at the balance sheet date for continued payment of wages in the future to employees who, at the balance sheet date, are expected to be permanently unable to carry out work due to illness or occupational disability. Included in this provision are any possible severance payments due to these employees of the company. The provision for continued payment of wages during illness is recognized at the present value of the expected wage payments during employment.

Non-current liabilities (Long-term debts)
254.303 254.201 254.202	On initial recognition long-term debts are recognised at fair value. Transaction costs which can be directly attributed to the acquisition of the long-term debts are included in the initial recognition. After initial recognition long-term debts are recognised at the amortised cost price, being the amount received taking into account premiums or discounts and minus transaction costs.
The difference between stated book value and the mature redemption value is accounted for as interest cost in the income statement on the basis of the effective interest rate during the estimated term of the long-term debts.

Current liabilities
254.303 254.201 254.202	On initial recognition current liabilities are recognised at fair value. After initial recognition current liabilities are recognised at the amortised cost price, being the amount received, taking into account premiums or discounts, less transaction costs. This usually is the nominal value.

Principles for the determination of the result
General
2:362-5 BW 135.202 270.101 270.130	The result is the difference between the realisable value of the goods/services provided and the costs and other charges during the year. The results on transactions are recognised in the year in which they are realised.
Profit or loss is determined taking into account the recognition of unrealised changes in fair value of:
213.504	investment property;
226.2	securities included in current assets;
290.504	derivative financial instruments not designated as hedging instruments.

Revenue recognition

General
2:377-6 BW 270.201	Net turnover comprises the income from the supply of goods and services and realised income from construction contracts after deduction of discounts and such like and of taxes levied on the turnover.

Sales of goods
270.110	Revenues from the goods supplied are recognised when all significant risks and rewards in respect of the goods have been transferred to the buyer.
Sales of services
270.115 270.130	Revenues from the services rendered are recognised in proportion to the services delivered, based on the services rendered up to the balance sheet date in proportion to the total of services to be rendered.

Cost of sales
270.504 135.205	Cost of sales represents the direct and indirect expenses attributable to revenue, purchase expenses related to the goods sold, employee cost, depreciation charges for buildings and equipment, and other operating expenses that are attributable to cost of sales. Goodwill amortisation is also recognised within cost of sales.
Selling expenses and general and administrative expenses
270.504 135.205	Selling expenses and general and administrative expenses comprise costs chargeable to the year that are not directly attributable to the cost of the goods and services sold.
Other operating income
270.505 135.205	In other operating income results are recognized which are not directly linked to the supply of goods or services as part of the normal, non-incidental operations. The other operating income comprises of royalty income. Royalty income is recognised on an accrual basis in accordance with the substance of the relevant agreements.
Employee cost (employee benefits)
General
271.104	Employee costs (wages, salaries, social security contributions, etc.) are not presented as a separate item in the income statement. These costs are included in other components of the income statement, i.e. cost of sales, …… [add more as applicable]. For a specification, reference is made to the relevant note.
Short-term employee cost
271.202	Salaries, wages and social security contributions are charged to the income statement based on the terms of employment, where they are due to employees and the tax authorities respectively.
Pensions
271.307 271.306	De Middelgrote B.V. applies the liability approach for all pension schemes. The premium payable during the financial year is charged to the result. Changes in the pension provision are also charged to the result. Please also refer to the valuation principles for assets and liabilities, under Provision for pensions. Reference is also made to the relevant notes with respect to pension schemes of foreign subsidiaries.
Share-based payments
275.314 275.404 275.304	De Middelgrote B.V. operates a share option plan for its managing directors and employees, and a share-based bonus plan for senior management. The value of the employee services received in exchange for the grant of the options is recognised as an expense. The total amount to be expensed is determined by reference to the fair value of the options granted, excluding the impact of any non-market performance vesting conditions. Non-market performance vesting conditions are taken into account in determining the number of shares that is expected to vest unconditionally. During the vesting period, the total amount to be expensed is recorded on a straight-line basis in the income statement.
275.203 275.204	If the granted (options on) shares are settled in shares, the amount is recognised in the income statement and in equity. Receipts from the settlement of vested (options on) shares are added to equity.
275.205	When the granted (options on) shares are settled in cash, a liability is recognised instead of equity. At the end of each reporting period the fair value of the liability is remeasured. Changes in the fair value are recognised in the income statement.
275.504	The main features of the share option plan are as follows: … The main features of the share bonus plan are as follows: …

Amortisation of intangible fixed assets and depreciation of tangible fixed assets
Amortisation and depreciation costs are not presented as a separate item in the income statement. These costs have been recognised in other components of the income statement, i.e. cost of sales, …. [add more as applicable]. For a specification, reference is made to the relevant note.
210.401 212.417 212.434 213.503	Intangible assets, including goodwill, are amortised and tangible fixed assets are depreciated over their estimated useful lives as from the moment that they are ready for use. Land and investment property are not depreciated.
210.504 212.424	Future depreciation and amortisation is adjusted if there is a change in estimated future useful life.
212.506	Gains and losses from the occasional sale of property, plant or equipment are included in depreciation.

Exceptional items
270.404 2:377-7 BW 2:377-8 BW	Exceptional items are items of income and expense from the normal, non-incidental activities or transactions, but which need to be disclosed separately on the basis of the nature, size or incidental character of the item for reasons of analysis and comparability of the results. Also, income and expenses that should be allocated to another financial year are disclosed by the nature and amount.
Government grants
274.108 274.107	Operating subsidies are recorded as income in the income statement in the year in which the subsidised costs were incurred or income was lost or when there was a subsidised operating deficit. Income is recognised when it is probable that it will be received.
274.113	Subsidies related to investments in tangible fixed assets are deducted from the asset to which they relate and recorded in the income statement as part of the amortisation costs. Government taxes are recorded as expenses at the time all conditions with regard to the applicable government tax have been met.
Financial income and expense
Interest income and interest expenses
270.125 273.201	Interest income and expenses are recognised on a pro rata basis, taking account of the effective interest rate of the assets and liabilities to which they relate. In accounting for interest expenses, the recognised transaction expenses for loans received are taken into consideration.

Currency translation differences
122.207	Currency translation differences arising upon the settlement or conversion of monetary items are recognised in the income statement in the period that they are realised, unless hedge accounting is applied.
Dividends
270.125	Dividends to be received from participations and securities not carried at net asset value are recognised as soon as De Middelgrote B.V. has acquired the right to them.

Changes in value of financial instruments recognised at fair value
270.504	Changes in the value of the following financial instruments (for which no hedge-accounting is applied) are recognised directly in the income statement:
financial assets and liabilities that are held for trading;
derivatives with an underlying instrument that is quoted in an open market;
equity instruments that are quoted in an open market.
270.504	Decreases in value of financial instruments at fair value are recognised through profit or loss. Realised increases in the value of financial instruments at fair value initially recognised in equity are taken through profit or loss when the financial instruments are derecognised.
Amounts released from revaluation reserves
226.2	Realised increases in the value of the securities included in financial fixed assets or current assets are released to the income statement from the revaluation reserve upon realisation.
Capitalisation of interest charges
2:388-2 BW 273.204 273.207	Interest charges are capitalised during the manufacturing period of an asset, if it requires a significant amount of time to bring the asset into a condition for its use or sale. The interest to be capitalised is calculated based on the interest payable on loans specifically taken out for the manufacturing or based on the weighted interest rate of loans which cannot be explicitly attributed to the manufacturing of an asset, in proportion to the manufacturing expenses and period.
Income tax
272.502 272.504	Tax on the result is calculated based on the result before tax in the income statement, taking account of the losses available for set-off from previous financial years (to the extent that they have not already been included in the deferred tax assets) and exempt profit components and after the addition of non-deductible costs. Due account is also taken of changes which occur in the deferred tax assets and deferred tax liabilities in respect of changes in the applicable tax rate.
Result from participations (valued at net asset value)
214.502	The result is the amount by which the carrying amount of the participation has changed since the previous financial statements as a result of the earnings achieved by the participation to the extent that this can be attributed to De Middelgrote B.V.

Financial instruments and risk management

Market risk
Currency risk
290.913a 290.913d	De Middelgrote B.V. mainly operates in the European Union. The currency risk for De Middelgrote B.V. largely concerns positions and future transactions in US dollars and pounds sterling. Management has determined, based on a risk assessment, that some of these currency risks need to be hedged. Forward exchange contracts are used for this purpose. Sales denominated in US dollars are hedged, as are forecasted purchases denominated in pounds sterling, to the extent that it is highly probable that the purchases will occur.
290.913a 290.913d	De Middelgrote B.V. also incurs currency risk on the net investment in the UK-based operation. This risk is covered through borrowings denominated in pounds sterling.
Price risk
290.922	De Middelgrote B.V. incurs risk regarding the valuation of securities disclosed under financial assets and securities within current assets. The Company manages market risk by stratifying the portfolio and imposing limits.
Interest rate and cash flow risk
290.918	De Middelgrote B.V. incurs interest rate risk on interest-bearing receivables (in particular those included in financial assets, securities and cash) and on interest-bearing non-current and current liabilities (including borrowings).
290.918	Where floating-interest loans and receivables are concerned, De Middelgrote B.V. incurs risk regarding future cash flows. In addition, De Middelgrote B.V. incurs risk on fixed-interest loans and receivables with respect to the fair value due to changes in the market rate of interest.
No financial derivatives for hedging of the interest rate risk are contracted with regard to the receivables.
290.913a 290.913d	De Middelgrote B.V. has contracted interest rate swaps for specific floating-interest liabilities (subordinated loans), consequently, it receives floating interest and pays fixed interest.
Credit risk
290.928	De Middelgrote B.V. does not have any significant concentrations of credit risk. Sales are made to customers that meet the Company’s credit rating. Goods and services are sold subject to payment deadlines ranging between eight and 60 days. A different payment period may apply to major supplies, in which case additional securities are demanded, including guarantees.
290.928	For banks and financial institutions only independently rated parties with a minimum rating of ‘A’ are accepted.
290.928	De Middelgrote B.V. has issued loans to participants and associates, as well as to shareholders. These counterparties do not have a history of non-performance.
Liquidity risk
290.918	De Middelgrote B.V. uses several banks in order to avail itself of a range of overdraft facilities. Where necessary, further securities will be furnished to the bank for available overdraft facilities.

Intangible fixed assets

Development costs	Concessions, licences and intellectual property	Goodwill	Total
(x 1,000)	€	€	€	€
Balance as at 1 January 2017
Historical costs	0	0	0	0
Cumulative impairment losses and amortisation	0	0	0	0
Book value	0	0	0	0
Movements
Investments	0	0	0	0
Disposals	0	0	0	0
New consolidations	0	0	0	0
Amortisation	0	0	0	0
Impairments	0	0	0	0
Amortisation of disposals	0	0	0	0
Balance	0	0	0	0
Balance as at 31 December 2017
Historical costs	0	0	0	0
Cumulative impairment losses and amortisation	0	0	0	0
Book value	0	0	0	0
Amortisation rates	0	0	0

An impairment amounting to € 0 is charged against the result of the financial year. This relates to the discontinuation of the development of a new product. The assets for which the impairment is charged against the income statement are part of the reported divisions The Netherlands and Trading Activities. The amount of the impairment is measured on the basis of cash flow forecasts. The method and most important assumptions applied are as follows:

…

Except for internally generated computer software and development costs, the other intangible fixed assets have been purchased or recognised as part of an acquisition.

Tangible fixed assets

Land and buildings	Plant and equipment	Other fixed assets	Assets under construction and prepayments ontangible fixed assets	Total
(x 1,000)	€	€	€	€	€
Balance as at 1 January 2017
Acquisition cost	0	0	0	0	0
Cumulative impairments and depreciation	0	0	0	0	0
Book values	0	0	0	0	0
Movements
Investments	0	0	0	0	0
Disposals	0	0	0	0	0
Depreciation	0	0	0	0	0
Impairment	0	0	0	0	0
Reversal of impairment	0	0	0	0	0
Depreciation on disposals	0	0	0	0	0
Balance	0	0	0	0	0
Balance as at 31 December 2017
Acquisition costs	0	0	0	0	0	0
Cumulative impairments and depreciation	0	0	0	0	0	0
0
Book value	0	0	0	0	0	0
Depreciation percentages	0	0	0	0	0

The prepayments on fixed assets included in the carrying amount as at 31 December 20162017 amount to € 0 (31 December 2016: € 0).

Land and buildings are collateral for the mortgage loan, as provided by X Bank. See also note …. in the Disclosure notes.

The impairment recognised under Land and buildings amounting to € 0 is the result of the disposal of the production activities of A N.V. in Brussels, Belgium. The assets for which the impairments are reflected in the income statement are part of the reported segments Other EU countries and Trading activities. The amount recognised as impairments is determined on the basis of the current value in an open market.

An amount of € 0 is released from Plant and equipment for the recognition of a provision for costs of repairs relating to the dismantling of machinery.

The following current values can be allocated to the tangible fixed assets:

31-12-20162017	31-12-2016
(x 1,000)	€	€
Land and buildings	0	0
Plant and equipment	0	0
Other fixed assets	0	0
0	0

These values are determined on the basis of regularly conducted value assessments by experts, and, if necessary, corrected for specific indexation figures for the years in which no value assessment was carried out.

The carrying amounts of assets under financial leasing, which are held without legal title by De Middelgrote B.V., are as follows:

31-12-2017	31-12-2016
(x 1,000)	€	€
Plant and equipment	0	0
Other fixed assets (computer equipment)	0	0
0	0

Investment property

Operative Investment property (in use)	Investment property under construction	Total
(x 1,000)	€	€	€
Book value as at 1 January 2017	0	0	0
Investments
- initial acquisition	0	0	0
- expenditure after initial recognition	0	0	0
Transfers	0	0	0
Exchange differences	0	0	0
Investments related to acquisitions	0	0	0
Other movements	0	0	0
Changes in fair value	0	0	0
Retirements and disposals	0	0	0
Book value as at 31 December 2017	0	0	0

All investment property is owned by the Group and held to realise rental income or for capital appreciation. This property is not used for the production process or for the delivery of goods and services or in any other own use.

The fair value of investment properties is determined by independent, professionally skilled external surveyors. The value at year-end is determined based on open-market value assessments, while taking account of the size, nature and use of the properties.

The sum of the revaluations of investment properties at balance sheet date amounted to € 0. In addition to the movement in fair value, the following amounts relating to investment properties are accounted for in the income statement:

2017	2016
(x 1,000)	€	€
Rental income	0	0
Operating expenses for assets generating rental income	0	0
Operating expenses for assets not generating rental income	0	0
0	0

The Group had the following contractual obligations with regard to investment property at the balance sheet date:

31-12-2017	31-12-2016
(x 1,000)	€	€
For acquisition, construction or development	0	0
For repairs, maintenance or improvements	0	0
0	0

Financial fixed assets

Movements in financial assets can be broken down as follows:

Associates	Loans to associates	Securities	Deferred tax assets	Other receivables	Total
(x 1,000)	€	€	€	€	€	€
Balance as at 1 January 20162017	0	0	0	0	0	0
Additions	0	0	0	0	0	0
Share of profit of associates	0	0	0	0	0	0
Currency translation effect	0	0	0	0	0	0
Dividend	0	0	0	0	0	0
Disposals	0	0	0	0	0	0
Balance as at 31 December 20162017	0	0	0	0	0	0

All receivables included in the financial assets fall due in more than one year.

Participating interests (Associates)

De Middelgrote B.V. has direct interests in the following associates:

Name registered office	Share in issued capital as percentage
Other associates, measured at net asset value
Q B.V., Deventer, the Netherlands	40
R B.V., Zwolle, the Netherlands	25

De Middelgrote B.V. is also partner in V.o.f. Z of Amsterdam. In this v.o.f. De Middelgrote B.V. is entitled to 50% of the profits.

Upon the acquisition of participation Q B.V., a reorganisation provision has been taken into account in the determination of the fair value of the liabilities.

Participation R B.V. has a negative value on the basis of equity accounting. Because De Middelgrote B.V. is not liable for the debts of this participation, no provision has been recognised. The part of the losses that is not recognised amounts to € 0 (2016: € 0).

These companies are also related companies based on the fact that significant influence can be exerted over the company and financial policies.

Receivables from associates

Receivables from associates include loans to Q B.V. and R B.V. amounting to € 0 (2016: € 0) and € 0 (2016: € 0) respectively, which have been agreed on an arm’s length basis. The fixed-interest loans, which are subject to an interest rate of 0.0% (2016: 0.0%), have a remaining duration of 0 year and 0 year, respectively. Nothing has been agreed in respect of repayment and securities.

Securities

Securities include a 17% interest in S B.V. as well as various minor interests in listed and unlisted companies. None of the interests qualify as held for trading. The Group cannot exercise any significant influence on their business and financial policies. The fair value of non-listed shares carried at cost price amounts to € 0
(2016: € 0) as at the balance sheet date.

Deferred tax assets

Recognised and deductible temporary differences and tax losses can be broken down as follows:

31-12-2017	31-12-2016
(x 1,000)	€	€
Deductible temporary differences	0	0
Deductible losses	0	0
Deductible temporary differences in respect of group companies, etc.	0	0
0	0

In respect of the unused deductible temporary differences and deductible losses of € 0 (2016: € 0), it is not (yet) probable that these may be utilised against future taxable profits or set off against other tax liabilities.

Other receivables

Other receivables include an arm’s length loan to a shareholder amounting to € 0 (2016: € 0). The fixed-interest loan is subject to an interest rate of 0.0%, and has a maturity of 0 year/years. Nothing has been agreed in respect of securities.

Inventories

31-12-2017	31-12-2016
(x 1,000)	€	€
Raw materials and consumables	0	0
Work in progress	0	0
Finished products and goods for resale	0	0
Prepayments on inventories	0	0
0	0

Inventories with a book value of € 0 are encumbered with an undisclosed pledge as security interest for the credit provision by the lender. See also note “Debts to lending institutions”.

Raw materials and consumables valued at a lower realisable value have a book value of € 0 as at the balance sheet date.

A write-down reversal on finished products has been made for an amount of € 0. This is the result of … (state circumstances and/or events).

If agricultural inventories are measured at actual cost, the following disclosures are required (RJ 220.508):
- a description of the method of determining net realizable value;
- The amount of the revaluation of inventories and / or the write-down of inventories charged to the revaluation reserve;
- The amount of revaluations recognized directly in the income statement (only possible if frequent market quotations are available);
- how the unrealized revaluations have been recognised

Construction contracts

For construction contracts not completed as at the balance sheet date, the accumulated net turnover amounts to € 0 (2016: € 0). The total of the advance payments received on construction contracts amounts to € 0 (2016: € 0) and is included in prepayments on orders under current liabilities. An amount of € 0 (2016: € 0) has been deducted by customers on progress billings.

Construction contracts and progress billings can be broken down as follows:

31-12-2017	31-12-2016
(x 1,000)	€	€
Projects with debit balance: Generated contract revenue -/- recognised losses and progress billings > 0	0	0
Projects with credit balance: Generated contract revenue -/- recognised losses and progress billings < 0	0	0
0	0

Construction contracts whereby progress billing exceeds contract revenue are recognised as a current liability.

Receivables

31-12-2017	31-12-2016
Total	Remaining term	Total	Remaining term
> 1 year	> 1 year
(x 1,000)	€	€	€	€
Trade debtors	0	0	0	0
Receivables from group companies	0	0	0	0
Receivables from participations and associates	0	0	0	0
Other receivables	0	0	0	0
Contributions due from shareholders	0	0	0	0
Prepayments	0	0	0	0
0	0	0	0

The fair value of the receivables approximates the carrying amount due to their short-term character and the fact that provisions for bad debt are recognised, where necessary.

Trade debtors

31-12-2017	31-12-2016
(x 1,000)	€	€
Trade debtors	0	0
Less: provision for bad debt	0	0
0	0

Trade debtors includes receivables for an amount of up to € 0 with a remaining maturity of more than one year.

Receivables from group companies

An interest rate of 0% (2016: 0%) per annum applies to the average intercompany balances. In respect of repayment and securities provided, no agreements have been made.

Other receivables

31-12-2017	31-12-2016
(x 1,000)	€	€
Loans receivable	0	0
Security deposits	0	0
Pension payments	0	0
Loans to staff	0	0
Loans to directors	0	0
Loans to supervisory directors	0	0
Loans to shareholders	0	0
Interest	0	0
Value added taxes	0	0
Corporate income taxes	0	0
0	0

The loans receivable are issued at an interest rate of 0% (2016: 0%).

Other receivables includes receivables from shareholders of up to an amount of € 0 (2016: € 0), as well as loans and prepayments to directors, amounting to € 0 (2016: € 0).

Of the loans issued to directors an amount of € 0 (2016: € 0) is subject to an interest rate of 0%, while € 0 (2016: € 0) is issued interest-free.

The remaining maturity amounts to 0 and 0 year(s) respectively. These loans have to be repaid by the relevant director at the latest by the year in which he steps down.

Loans for an amount of € 0 (2016: € 0) were issued to supervisory directors. All loans were issued interest-free. The remaining maturity varies from 0 to 0 years. No repayments were made during the financial year.

An amount of € 0 was repaid by the directors on their loans during the financial year.

Securities

31-12-2017	31-12-2016
(x 1,000)	€	€
Listed securities	0	0
Unlisted securities	0	0
0	0

The cost price of the listed securities (frequently quoted) amounts to € 0 per 31 December 2017 (2016: € 0). This is a difference of € 0 compared to the carrying value. The impact on result and equity is as follows: ………….

The fair value of unlisted securities, which are carried at cost price, amounts to € 0 (2016: € 0).

The securities are at the free disposal of the Company.

Cash at banks and in hand

Cash at banks and in hand include deposits to the amount of € 0 with maturities of up to 0 months. Of cash at banks and in hand, € 0 is not at the Company’s free disposal, including a guarantee account to the amount of € 0.

Notes to the cash flow statement

In 2017, group company X was acquired. In relation to this, shares were issued at a value of € 0. This is not included in the cash flow statement since only payments in cash are reflected. The cash available in the acquired group company of € 0 is deducted from the purchase price. In 2018, no further payments are made with regard to the acquisition of this group company.

Under the investments in tangible fixed assets only the investments are included for which in 2017 cash was paid. In addition, investments have been made by means of financial leasing at a value of € 0 which is not shown in the cash flow statement. At the same time, the amount of € 0 for long-term debt on account of financial leasing as included in the balance sheet has not been included in the cash flow statement. Of the total investments of € 0 an amount of approximately € 0 is considered as expansion investments.

Group equity

The shareholders’ equity is detailed in the notes to the company financial statements.

Non-controlling interest

Movements in the non-controlling interest can be broken down as follows:

2017	2016
(x 1,000)	€	€
Balance as at 1 January	0	0
New consolidation	0	0
Result for the financial year	0	0
Dividend	0	0
Exchange differences	0	0
Balance as at 31 December	0	0

Provisions

The movements in provisions is as follows:

Pension provision	Deferred tax liabilities	Other provisions	Total
(x 1,000)	€	€	€	€
Balance as at 1 January 2017	0	0	0	0
Additions	0	0	0	0
0	0	0	0
Release	0	0	0	0
Withdrawal	0	0	0	0
Balance as at 31 December 2017	0	0	0	0

An amount of € 0 of the provisions can be classified as non-current (longer than one year).

Pensions

In the financial statements, provisions are recognised for unfunded liabilities as at the balance sheet date under an administration agreement(s) and unfunded commitments to employees as at the balance sheet date.

The provisions are based on actuarial calculations, of which the most important actuarial principles are:

Discount rate of 0% (2016: 0%)

Mortality / life table ….. (2016: x)

Other important principles and assumption which are applied to these pension provisions are ......

The pension provisions can be analysed as follows:

31-12-2017	31-12-2016
(x 1,000)	€	€
Provisions for:
Unfunded pension entitlements	0	0
Obligation of supplementary pension payment (at nominal value)	0	0
0	0

The movements in the pension provisions can be broken down as follows:

2017	2016
(x 1,000)	€
Balance as at 1 January 2017	0	0
Addition	0	0
0	0
Utilisation	0	0
Release	0	0
Balance as at 31 December 2017	0	0

Because of the recovery plan of the pension administrator, additional pension payments of € 0 need to be made in the coming x year(s). For this purpose, an additional pension liability is accounted for in the income statement. Future pension premiums will [increase by x%/decrease by x%/remain the same].

.

Pension costs amounted in total to € 0 (2016: € 0). Of this total € 0 (2016: € 0) was recognised as cost of sales, € 0 (2016: € 0) as selling expenses and € 0 (2016: € 0) as general and administrative expenses.

Deferred tax liability

Deferred tax liabilities are recognised for the taxable temporary differences between the tax base and the accounting base of tangible fixed assets and construction contracts.

The Group has taxable temporary differences with regard to group companies, associates and joint ventures for an amount of € 0 (2016: € 0). These temporary differences are not recognised as the Group is not able to control the timing of the reversal of the temporary difference, and it is probable that the temporary difference will not be reversed in the foreseeable future.

In 2017, € 0 (2016: € 0) in income tax was recognised directly in equity for recoverable costs in relation to the issue of shares.

Other provisions

The provision for disposal charges is intended for the coverage of future disposal charges, on the basis of De Middelgrote B.V.’s market share. As at 31 December 2017, the provision amounts to € 0 (2016: € 0).

The provision for jubilee benefits, recognised for the expected jubilee payments during employment, amounts to € 0 (2016: € 0) as at 31 December 2017.

The provision for major maintenance is intended for the coverage of future costs for major maintenance to the company’s buildings and amounts to € 0 (2016: € 0) as at the end of the financial year.

Furthermore, a provision has been formed for the liabilities existing on the balance sheet date in respect of future commitments to continue to pay remunerations to personnel who, on the balance sheet date, are not expected to be able to perform work duties because of illness or occupational disability. This provision amounts to € 0 (2016: € 0) as at the balance sheet date.

Non-current liabilities

Balance as at 31-12-2017	Repayment obligation 2018	Remaining maturity > 1 year	Remaining maturity > 5 years
(x 1,000)	€	€	€	€
Subordinated loans	0	0	0	0
Convertible loan	0	0	0	0
Debts to lending institutions	0	0	0	0
Financial lease obligations	0	0	0	0
0	0	0	0

Repayment obligations falling due within 12 months from the end of the financial year, as set out above, are included in current liabilities.

The (average) contractual dates for resetting interest or repayment dates (if earlier) and effective interest rates of the aforementioned non-current liabilities are as follows:

Interest reset date	Repayment date	Effective interest rate
%
Subordinated loans	mm.20xx	0
Convertible bond	mm.20xx	0
Debts to lending institutions	mm.20xx	0
Financial lease obligations	mm.20xx	0

All loans are denominated in euros, except for a loan of £ 0 (€ 0) which is denominated in pounds sterling.

Subordinated loans

The subordinated loan has been subordinated to all of the Company’s other existing and future debts. The interest on the loan is fixed and amounts to x% (2016: x %). Repayment will take place after 10 years. The fair value of the subordinated loan is € 0 (2016: € 0).

Convertible bond

This xx-year loan bears an interest of 0% and is redeemable in full on 1 January 20xx. On this date, the bonds can be exchanged, at the discretion of the bond holders, for shares at a rate of 0%.

The convertible bond qualifies as a hybrid financial instrument. The holders’ right to acquire shares in De Middelgrote B.V. is not disclosed separately.

If this had been the case, € 0 would have been recognised directly through equity upon the share issue. This amount is calculated as the sum of the amount received, less the carrying amount of the loan, taking into account future interest and repayments at market rates for a comparable transaction. If separately disclosed, the effective interest rate on the loan would have been 0% (2016: 0%). The fair value of this loan is € 0 (2016: € 0).

For details on outstanding option rights, please refer to the paragraph “Share options and shares granted to staff”.

Debts to lending institutions

X Bank has issued a mortgage loan of € 0 with a remaining maturity of 20 years. The interest rate on this loan is variable and amounts to 0%. Land and buildings have been pledged as securities for this loan. The fair value of borrowings is € 0 (2016: € 0). The interest risk arising from the variable interest rate on this loan is fixed by an interest swap (see paragraph Financial Instruments).

Furthermore, this item includes a private loan. The interest rate is floating and the average rate was 0% in 2017 (2016: 0%). The remaining term is 0 years; an amount of € 0 is repaid annually.

Financial lease obligations

The financial lease obligations can be specified as follows:

Present value	Nominal value
31 -12-2017	31 -12-2016	31-12-2017	31 -12-2016
(x 1,000)	€	€	€	€
Liabilities < 1 year	0	0	0	0
Liabilities > 1 and < 5 years	0	0	0	0
Liabilities > 5 years	0	0	0	0
0	0	0	0
Less: future interest	0	0
0	0	0	0

The average interest rate is 0%. The amount recognised in the income statement as conditional lease payments amounts to € 0 (2016: € 0).

Current liabilities

31-12-2017	31-12-2016
(x 1,000)	€	€
Debts to lending institutions	0	0
Repayment obligations on loans	0	0
Financial lease obligations	0	0
Debts to suppliers and trade creditors	0	0
Accounts payable to group companies	0	0
Tax and social insurance premiums	0	0
Other liabilities, accruals and deferred income	0	0
0	0

All current liabilities fall due in less than one year. The fair value of the current liabilities approximates the book value due to their short-term character.

Current liabilities include the repayment obligation on the mortgage loan to X bank for the next 12 months.

Debts to lending institutions

This item is a loan on current account; the maximum of the loan amounts to € 0. An undisclosed pledge serves as security on trade debtors and inventories. The interest is variable and amounted to 0% on average in 2017 (2016: 0%).

Payables to group companies

An interest rate of 0% (2016: 0%) is applicable to the average intercompany balances. In respect of repayment and securities, no agreements have been made.

Tax and social insurance premiums

31-12-2017	31-12-2016
€	€
Value added tax	0	0
Wage tax	0	0
Social security premiums	0	0
Corporate income tax	0	0
0	0

Corporate income tax can be broken down as follows:

Total	2017	2016
€	€	€
Payable as at 1 January	0	0	0
Payable for financial year	0	0	0
Total	0	0	0
Paid in 2017	0	0	0
Payable as at 31 December	0	0	0

Assets and liabilities not recognised in balance sheet (Contingent liabilities and assets)

Conditional assets and obligations

The group entities are severally and jointly liable to the lending institutions.

De Middelgrote B.V. is partner in V.o.f. Z in Amsterdam and as such in full severally liable for this general partnership’s debts in full.

(Multiyear) financial obligations

Contingent liabilities arising from the purchase of machinery amounts to € 0 (2016: € 0).

Liabilities in British pounds in respect of the purchase of raw materials and consumables not recognised in the balance sheet amount to € 0 (2016: € 0). The liabilities are due to expire on 31 December 20xx.

Operational leasing

The obligations from operational leases at the end of the reporting period can be specified as follows:

(x 1,000)	€
Obligations to pay:
Within one year	0
Between one and five years	0
After five years	0
Total	0

The total of the expected future minimum sub-lease revenue to be received in respect of non-(early) terminable sub-leases amounts to € 0.

Fiscal unity

For corporate income tax and value added tax purposes, De Middelgrote B.V. and Q B.V are a fiscal unity. Pursuant to the Collection of State Taxes Act, the company and its subsidiary are both severally and jointly liable for the tax payable by the combination.

In the financial statements of Q B.V., tax expenses are calculated on the basis of the commercial result realised by Q B.V. De Middelgrote B.V. and Q B.V. settle these expenses through their intercompany (current) accounts.

Liabilities not recognised

De Middelgrote B.V. has received a claim from a customer for incorrectly assembled products. The Company disputes the claim. At present, the customer has initiated legal proceedings. The board is of the opinion that it is not likely that the claim will be accepted and therefore no provision has been recognised. The related legal fees are recognised in the income statement.

Option rights

The option right relates to the purchase of business premises.

Net turnover

2017	2016
(x 1,000)	€	€
The Netherlands	0	0
Other EU countries	0	0
Other European countries	0	0
Other countries	0	0
0	0

The breakdown of revenue by category is as follows:

2017	2016
(x 1,000)	€	€
Trade activities	0	0
Professional services and consultancy	0	0
Income from construction contracts on behalf of third parties	0	0
0	0

Wages and salaries

2017	2016
(x 1,000)	€	€
Wages and salaries	0	0
Costs with respect to share (option) plans	0	0
Social security charges	0	0
Pension contributions	0	0
Other employee costs	0	0
0	0

The above employee cost is included in cost of sales, selling expenses and general and administrative expenses, depending on the activities of the employees in question.

To the extent that the costs with respect to share (option) plans relate to directors, the costs are included under Directors’ remuneration.

Amortisation/depreciation and impairment on intangible and tangible fixed assets

Cost of sales, selling expenses and general and administrative expenses include amortisation, depreciation and impairment of assets. These can be broken down as follows:

2017	2016
(x 1,000)	€	€
Amortisation of intangible fixed assets	0	0
Impairment on intangible fixed assets	0	0
Depreciation of tangible fixed assets	0	0
Impairment on tangible fixed assets	0	0
Reversal of impairment on inventories	0	0
0	0

Exceptional items

Of the ‘…’ expenses, an amount of € 0 relates to exceptional items. This amount can be broken down as follows:

2017	2016
(x 1,000)	€	€
Additional wage tax assessment	0	0
Claim relating to….	0	0
0	0

The additional income tax relates to income tax for 2016. The claim of € 0 was paid in 2017, because of a .......

Other disclosure notes to the income statement

Government subsidies

The Company has recognised the following government subsidies in 20162017:
Subsidy with regard to research and development (‘WBSO’) for the amount of € 0. The subsidy has been deducted from other employee costs.
Subsidy for education (‘ESF’) for the amount of € 0. The subsidy has been deducted from other employee cost.
Subsidy of € 0 for the investment in ecologically sound machines to achieve a reduction of the emission of greenhouse gases. The subsidy is deducted from the carrying amount of the investment.

Changes in value of investment properties

2017	2016
(x 1,000)	€	€
Operative investment properties (in use)	0	0
Investment properties under construction	0	0
0	0

Financial income and expense

2017	2016
(x 1,000)	€	€
Income from fixed asset investments and securities	0	0
Interest and similar income	0	0
Revaluation of financial fixed assets and securities under current assets	0	0
Interest and similar expenses	0	0
Exchange differences	0	0
0	0

During the financial year, an amount of € 0 is capitalised as interest expenses (2016: € 0_.

Result of participations

The result of associates, measured at net asset value, was as follows:

2017	2016
(x 1,000)	€	€
Result of participation in Q B.V.	0	0
Result of participation in R B.V.	0	0
0	0

Tax on result

The tax on the result from ordinary business activities, amounting to € 0, can be specified as follows:

2017	2016
(x 1,000)	€	€
Result before tax	0	0
Deferred corporate income tax	0	0
Corporate income tax current financial year	0	0
Corporate income tax previous financial years	0	0
Tax on result	0	0

The tax effects as a result of the general partnership are for the account of the Group in proportion to the share in the general partnership.

Related parties

The Group has concluded an exclusive licence contract for an advanced computer production process with R B.V. of Zwolle. The licence fees of € 0 paid in 2017 are recognised as cost of sales. At 31 December 2017, an amount of € was still outstanding because of rights to be transferred, recognised under current liabilities.

Furthermore, the Group has contracted some advisory services from XYZ Ltd, London (UK) (head of the XYZ group). These advisory services are charged at cost plus no fee. In 2017, the cost of these advisory services amounted to € 0 (2016: € 0).

In addition, Medium-sized/Large Company B.V. has issued loans to shareholders, directors and supervisory directors. Reference is made to the note ‘Other receivables and accrued income’. For further information about the remuneration of directors and supervisory directors, reference is made to the note ‘Remuneration of directors and supervisory directors’ in the company financial statements.

Average number of employees

During 2017, 0 employees were employed on a full-time basis (2016: 0). Of these employees, 0 were employed outside the Netherlands (2016: 0).

The average number of employees of proportionally consolidated companies was 0 in 2017 (2016: 0).

2017	2016
Production	0	0
Sales	0	0
Support	0	0
Other	0	0
Total number of employees	0	0

The wages and salaries, social security charges and pension charges were as follows:

2017	2016
(x 1.000)	€	€
Wages and salaries	0	0
Social security charges	0	0
Pension charges	0	0
0	0

Financial instruments

Financial instruments carried at fair value

The table below shows financial instruments stating their fair value and changes in value recognised directly either through the revaluation reserve or through profit or loss, and changes in value charged directly to the freely distributable reserves.

Fair value	Recognised through revaluation reserve	Recognised through profit or loss	Charged to distri-butable reserves
(x 1,000)	€	€	€	€
Financial fixed assets
Securities	0	0	0	0
Current assets
Securities	0	0	0	0
Derivative financial instruments
Forward exchange contracts	0	0	0	0
Interest rate swaps	0	0	0	0

The fair value of listed securities is based on current bid prices. Unlisted securities, as well as derivative financial instruments, are measured using externally calculated valuations, taking account of the term of the contracts and the underlying exchange rates of foreign currencies and relevant market interest rates.

Financial fixed assets

Securities included in financial assets comprise a 17% interest in S B.V. De Middelgrote B.V. does not have significant influence over that company. The fair value of this interest cannot be measured with sufficient reliability within a reasonable period. A fair value would have to be based largely on realised profits and cash flows, for instance by using a profit/earnings ratio or a calculation of net present value, allowing for future discounted cash flows.

Securities

Unlisted securities included in current assets involve among other things outstanding debentures. Their fair value has been determined based on interest rates, periods to maturity and the credit risk incurred by comparable issuing bodies. As a result of acquiring the debentures at a premium above face value, the effective interest rate is 0.0%, i.e. 0.0% lower than the nominal rate.

Derivative financial instruments

Forward exchange contracts are used to hedge US dollar denominated receivables and expected purchases in pounds sterling. The forward exchange contracts consist of several contracts, amounting to $ 0 in the aggregate and maturing no later than six months after the balance sheet date.

In order to hedge expected purchase obligations in pounds sterling, forward exchange contracts have been contracted that mature 12 months after the balance sheet date at the latest in the amount of £ 0. The fair value of these contracts is € 0 (carrying amount: nil), which is included in the table above.

The interest rate swap involves the mortgage-backed loan of € 0. This interest rate swap is used to convert the floating interest rate on this loan into a fixed rate on the basis of EURIBOR + 0% (0.0% as at 31 December 2016). The notional amount and the maturity of the interest rate swap equal the amount and the maturity of the mortgage-backed loan.

If the hedging instrument is subject to an accumulated negative change in value and the hedge relationship is not fully effective, the non-effective part of the change in value is recognised through the income statement.

The accumulated changes in the fair value of the derivative financial instruments to which hedge accounting is applied, can be broken down as follows:

Changes in value in effective part of hedge relationship	Changes in value in ineffective part of hedge relationship	Of which through profit and loss
(x 1,000)	€	€	€
Forward exchange contracts	0	0	0
Interest rate swaps	0	0	0
0	0	0

Financial instruments carried at (amortised) cost price

The table below shows financial instruments of which the fair value differs from cost.

31 December 2017	31 December 2016
Fair value	Carrying amount	Fair value	Carrying amount
(x 1,000)	€	€	€	€
Financial fixed assets
Receivables from participations	0	0	0	0
Securities	0	0	0	0
Other receivables – loan to shareholder	0	0	0	0
Non-current liabilities
Subordinated loan	0	0	0	0
Convertible bond	0	0	0	0
Debts to lending institutions	0	0	0	0
Financial lease obligations	0	0	0	0

Research and development costs

Research and development costs is recognised in the income statement for an amount of € 0 (2016: € 0). This amount includes amortisation of the capitalised development expenditure.

Share based payments

Share options granted

During the financial year, 0 options were granted, of which 0 to managing directors, 0 to supervisory directors and 0 to other employees.

These options span a period of 0 years and cannot be exercised during the first 0 years. Each option entitles the holder to one ordinary share. The exercise price of each option is € 0. In 2017, 0 share options were issued. The fair value of the options was based on the following elements:

market price;

the option valuation model and the used data;

if and how market conditions have been used in the determination of the fair value.

The related expenses for the Group of € 0 are recognised under salaries and wages.

Shares granted

As part of the bonus plan, the supervisory board has approved the granting of shares to the Group’s senior management. These bonus shares are acquired by the Company and passed on to the employees in question. The costs associated with this plan have been determined using the fair value, based on the following elements:

market price;

the option valuation model and the used data;

if and how market conditions have been used in the determination of the fair value.

The costs amount to € 0 and have been charged through profit or loss. Where bonus shares were granted to managing directors, these have been included as part of executive compensation.

Share options exercised

A total of 0 share options were exercised during the year. These options entitled the holders to 0 ordinary shares, 0 of which were issued during the year and 0 of which had been repurchased by the Company previously. The average market price upon exercise of the option rights was € 0. In addition, in March 201x, 0 new shares were issued to holders of option rights at an exercise price of € 0 per share.

The movements in share options outstanding in 2017 can be specified as follows:

Managing directors	Super-visory directors	Employees	Total
Outstanding as at 1 January 2017	0	0	0	0
Options granted	0	0	0	0
Options expired	0	0	0	0
Options exercised	0	0	0	0
Outstanding as at 31 December 2017	0	0	0	0

Of the share options outstanding as at 31 December 2017, x options are not hedged (2016: x). For the hedged options, an average price of € 0 (2016: € 0) was paid.

The movements in share options outstanding for managing directors in 2017 can be specified as follows:

Director 1	Director 2	Director 3	Total
Outstanding as at 1 January 2017	0	0	0	0
Options granted	0	0	0	0
Options expired	0	0	0	0
Options exercised	0	0	0	0
Outstanding as at 31 December 2017	0	0	0	0

The movements in share options outstanding for supervisory directors in 2017 can be specified as follows:

Super-visory director 1	Super-visory director 2	Super-visory director 3	Total
Outstanding as at 1 January 2017	0	0	0	0
Options granted	0	0	0	0
Options expired	0	0	0	0
Options exercised	0	0	0	0
Outstanding as at 31 December 2017	0	0	0	0

The movements in share options outstanding for employees in 2017 can be specified as follows:

Employee 1	Employee 2	Employee 3	Total
Outstanding as at 1 January 2017	0	0	0	0
Options granted	0	0	0	0
Options expired	0	0	0	0
Options exercised	0	0	0	0
Outstanding as at 31 December 2017	0	0	0	0

As at 31 December 2017 the share options outstanding can be specified as follows:

Managing directors	Supervisory directors	Employees	Total
Exercise price and term per share option
0.00 (term to 0x/0x/0x)	0	0	0	0
Outstanding as at 31 December 2017	0	0	0	0

As at 31 December 2017 the share options outstanding for directors can be specified as follows:

Director 1	Director 2	Director 3	Total
Exercise price and term per share option
0.00 (term to 0x/0x/0x)	0	0	0	0
0.00 (term to 0x/0x/0x)	0	0	0	0
Outstanding as at 31 December 2017	0	0	0	0

As at 31 December 2017 the share options outstanding for supervisory directors can be specified as follows:

Supervisory director 1	Supervisory director 2	Supervisory director 3	Total
Exercise price and term per share option
0.00 (term to 0x/0x/0x)	0	0	0	0
0.00 (term to 0x/0x/0x)	0	0	0	0
0.00 (term to 0x/0x/0x)	0	0	0	0
Outstanding as at 31 December 2017	0	0	0	0

As at 31 December 2017 the share options outstanding for employees can be specified as follows:

Employee 1	Employee 2	Employee 3	Total
Exercise price and term per share option
0.00 (term to 0x/0x/0x)	0	0	0	0
0.00 (term to 0x/0x/0x)	0	0	0	0
0.00 (term to 0x/0x/0x)	0	0	0	0
Outstanding as at 31 December 2017	0	0	0	0

The share options not exercised at the year-end entitle their holders to 0 ordinary shares of € 0 nominal each.

The option rights granted are subject to the following key conditions:

-	...
-	...
-	...

De Middelgrote B.V. aims to meet 0% of its obligations by virtue of the granted option rights by purchasing treasury shares and the other 0% of these obligations by issuing new shares. As at 31 December 2017 [number] shares have been bought for this purpose (2016: [number]). On average € 0 was paid for these shares (2016: € 0).

Other share options rights

Apart from the share option scheme for employees the Company granted the following option rights.

Convertible bond

De Middelgrote B.V. issued a convertible bond in 199x (refer to note ....).

The conditions for conversion include the following pre-requisites in relation to conversion and financing:

-	...
-	...
-	...

As per xx June 200x, the holders of the convertible bond have the right to convert to ordinary shares for a price of € 0 per share, which could potentially result in the issue of 0 ordinary shares. Where the market price is lower than the exercise price, the holders of the convertible bond have the right to redemption of 0% of the bond against nominal value.

As at 31 December 2017 there are 0 convertible bonds outstanding. There are no changes in these as compared to the prior year.

Should a conversion to shares take place, then 0 new ordinary shares in De Middelgrote B.V. will be issued.

Other option rights

Other option rights concern those granted to the owners of an acquired group company. In 201x, 0 of such option rights were granted, each giving right to one ordinary share. The exercise price is € 0 per option. The option term is from 1 June 201x until 1 June 201x. During 2017, there were no changes in these outstanding option rights compared to the prior year.

Subsequent events

The production activities of ‘…..’B.V. were sold in March 2018. No further losses were identified as a result of the impairment losses recognised as at 31 December 2017. The total net sales proceeds (net of discontinuation costs) amounted to € 0.

In February 2018, own shares were issued for an amount of € 0.

Company financial statements

Balance sheet as at 31 December 2017

(Before appropriation of result)

BMJ	Assets	31 December 2017	31 December 2016
Model B	(x 1,000)	Note	€	€	€	€

2:364-1 BW	Fixed assets
2:364-2 BW	Intangible fixed assets	36.	0	0
2:364-2 BW	Financial fixed assets	37.	0	0
0	0
2:364-1 BW	Current assets
2:364-3 BW	Receivables	38.	0	0
2:364-3 BW	Cash at banks and in hand	39.	0	0
0	0
0	0
Liabilities

2:364-4 BW	Equity	40.
2:373-1aBW	Share capital	41.	0	0
2:373-1bBW	Share premium account
2:373-1cBW	Revaluation reserve	42.	0	0
240.229	Currency translation reserve	43.	0	0
2:373-1dBW	Other legal reserves	44.	0	0
2:373-1fBW	Other reserves	45.	0	0
0	0
2:373-1gBW	Result after taxation	0	0
160 appx 2	- preference dividend	0	0
- contribution to legal reserve	0	0
2:373-1gBW	Undistributed profit	0	0
0	0
2:364-4 BW	Provisions	47.	0	0
2:364-4 BW	Current liabilities	48.	0	0
0	0

Income statement for the year ended 31 December 2017

2017	2016
BMJ
Model E	(x 1,000)	€	€	€	€
2:402 BW	Share of result of participations	0	0
Income from operations after income tax	0	0
Result after taxation	0	0

Notes to the company balance sheet and income statement

General note

General

The company financial statements have been prepared in accordance with the statutory provisions of Title 9, Book 2 of the Dutch Civil Code and the firm pronouncements in the Dutch Accounting Standards as issued by the Dutch Accounting Standards Board.

The accounting policies for the company financial statements and the consolidated financial statements are the same. Group companies are stated at net asset value in accordance with note (…) to the consolidated financial statements.

For the accounting policies for the company balance sheet and income statement, reference is made to the notes to the consolidated balance sheet and income statement.

Intangible fixed assets

Movements in intangible fixed assets can be broken down as follows:

Development costs	Goodwill	Total
(x 1,000)	€	€	€
Balance as at 1 January 2017
Historical costs	0	0	0
Cumulative impairment losses and amortisation	0	0	0
Book value	0	0	0
Movements
Investments	0	0	0
Disposals	0	0	0
Amortisation of intangible fixed assets	0	0	0
Amortisation of disposals	0	0	0
Balance	0	0	0
Balance as at 31 December 2017
Cost or production cost	0	0	0
Cumulative impairment and amortisation	0	0	0
Book value	0	0	0
Amortisation rates	0	0

For more detailed information, reference is made to the consolidated financial statements.

Financial fixed assets

Movements in financial assets can be broken down as follows:

Partici-pations	Loans to partici-pations	Securities	Other receivables	Total
(x 1,000)	€	€	€	€	€
Balance as at 1 January 2017	0	0	0	0	0
Additions	0	0	0	0	0
Result from participations	0	0	0	0	0
Currency translation effect	0	0	0	0	0
Dividend	0	0	0	0	0
Disposals	0	0	0	0	0
Impairments	0	0	0	0	0
Balance as at 31 December 2017	0	0	0	0	0

The value of the wholly-owned participation in X B.V. of Assen included in this item was set at nil as at year-end 2017 (year-end 2016: nil). De Middelgrote B.V. has not given a liability undertaking or any other guarantee for this company. The equity deficit of X B.V. amounted to € 0 as at 31 December 2017 (31 December 2016: a surplus of € 0). The participation incurred a loss of € 0 for 2017.

De Middelgrote B.V. has direct interests in the following participations:

Name, registered office	Share in issued capital as %
Fully consolidated
B.V. X, Assen, the Netherlands	100.00
B.V. Y, Meppel, the Netherlands	60.00
T B.V., Haarlem, the Netherlands	100.00
A N.V., Brussels, Belgium	100.00
B Ltd., Birmingham, United Kingdom	100.00
Proportionally consolidated
V.o.f. Z, Amsterdam, the Netherlands	50.00
Other participations, measured at net asset value
Q B.V., Deventer, the Netherlands	40.00
R B.V., Zwolle, the Netherlands	25.00
Other non-participating interests
S B.V., Rotterdam, the Netherlands	17.00

Receivables

31-12-2017	31-12-2016
(x 1,000)	€	€
Receivables from group companies	0	0
Receivables from participations and participating interests	0	0
Taxes and social security contributions	0	0
Other receivables and accrued income	0	0
0	0

The fair value of the accounts receivable approximates the carrying amount, given the current character of the receivables and the fact that provisions for bad debt are recognised, where necessary.

Receivables from group companies

The average intercompany balances bear interest at 0% per annum (2016: 0%). Nothing has been agreed in respect of repayment and securities.

Other receivables and accrued income

31-12-2017	31-12-2016
(x 1,000)	€	€
Loans receivable from shareholders	0	0
Loans receivable from directors	0	0
Loans receivable from supervisory directors	0	0
Other loans receivable	0	0
Pensions	0	0
Interest	0	0
Prepayments and accrued income	0	0
0	0

Other receivables includes receivables from shareholders of up to an amount of € 0 (2016: € 0), as well as loans and prepayments to directors, amounting to € 0 (2016: € 0).

Of the loans issued to directors an amount of € 0 (2016: € 0) is subject to an interest rate of 0%, while € 0 (2016: € 0) is issued interest-free.

The remaining maturity amounts to 0 and 0 year(s) respectively. These loans have to be repaid by the relevant director at the latest by the year in which he steps down.

Loans for an amount of € 0 (2016: € 0) were issued to supervisory directors. All loans were issued interest-free. The remaining maturity varies from 0 to 0 years. No repayments were made during the financial year.

An amount of € 0 was repaid by the directors on their loans during the financial year.

Cash at banks and in hand

Cash at banks and in hand include deposits to the amount of € 0 with maturities of up to 0 months. Of cash at banks and in hand, € 0 is not at the Company’s free disposal, including a guarantee account to the amount of € 0.

Equity

Share capital	Share premium	Revaluation reserves	Other legal reserves
(x 1,000)	€	€	€	€
Balance as at 1 January 2017	0	0	0	0
Movements
Profit appropriation	0	0	0	0
Distribution of dividend	0	0	0	0
Result for financial year	0	0	0	0
Granted share (option) plans	0	0	0	0
Exercised share (option) plans	0	0	0	0
Other movements	0	0	0	0
Balance as at 31 December 2017	0	0	0	0

Other reserves	Undistributed result	Total
(x 1,000)	€	€	€
Balance as at 1 January 2017	0	0	0
Movements
Profit appropriation	0	0	0
Distribution of dividend	0	0	0
Result for financial year	0	0	0
Granted share (option) plans	0	0	0
Exercised share (option) plans	0	0	0
Other movements	0	0	0
Balance as at 31 December 2017	0	0	0

Share capital

The authorised share capital of De Middelgrote B.V. amounts to €0, divided into 0 preference shares of €0 and 0 ordinary shares of € 0. Issued share capital consists of 0 preference shares and 0 ordinary shares.

In 2017, no shares were issued.

Revaluation reserves

As a result of the changes in accounting policies in 2016, revaluation reserves are maintained for the following unrealised revaluations:

Value increases of assets for which movements in value are recognised in the income statement and for which there are no regular frequent market prices. This category applies to investment property, non-listed securities included in current assets and non-listed derivative financial instruments.

Value increases of financial instruments for which value increases are taken directly to equity. This category applies to securities included in financial assets.

1. No frequent market quotation	2. Directly to equity	3. Hedge	Total
(x 1,000)	€	€	€	€
Balance as at 31 December 2016	0	0	0	0
Change in accounting policy	0	0	0	0
Tax effect on change in accounting policy	0	0	0	0
Balance as at 1 January 2017	0	0	0	0
Revaluations realised through:
income statement	0	0	0	0
other reserves	0	0	0	0
hedged item	0	0	0	0
Tax effects	0	0	0	0
Revaluation recognised through:
other reserves	0	0	0	0
change in valuation of financial instruments	0	0	0	0
change in valuation of hedging instrument	0	0	0	0
Tax effects	0	0	0	0
Balance as at 31 December 2017	0	0	0	0

Currency translation reserve

The currency translation reserve is recognised in connection with participations denominated in foreign currencies.

2017	2016
(x 1,000)	€	€
Balance as at 1 January	0	0
Addition	0	0
Utilisation	0	0
Balance as at 31 December	0	0

Other legal reserves

The legal reserves are recognised in connection with the following:

Capitalised development costs of € 0 (2016: € 0).

Undistributable reserve for positive results from associates and direct increases in value amounting to € 0 (2016: € 0).

Capitalised development costs	Reserve for participations	Total
(x 1,000)	€	€	€
Balance as at 1 January	0	0	0
Addition	0	0	0
Utilisation	0	0	0
Balance as at 31 December	0	0	0

Other reserves

2017	2016
(x 1,000)	€	€
Balance as at 1 January	0	0
Profit appropriation (undistributed result of previous financial year)	0	0
Distribution of dividend	0	0
Balance as at 31 December	0	0

Proposed appropriation of result

Following the appropriation of result proposed by the board of directors and pursuant to article 0 of the articles of association, an amount of € 0 of the profit for 2017 will be distributed to the holders of preference shares. The proposal for the remaining profit is to add € 0 to the other reserves (or to place the remainder at the disposal of the Annual general Meeting).

It is proposed to distribute the profit of € 0 as follows:

(x 1,000)	€
Distribution to holders of preference shares	0
Addition to legal reserves	0
Addition to other reserves	0
At the disposal of the Annual General Meeting (dividend)	0
Net profit	0

Differences in equity and profit/(loss) between the company and consolidated financial statements0

The difference between equity according to the company balance sheet and equity according to the consolidated balance sheet is due to the fact that the consolidated participating interest ... B.V. has a negative net asset value but is carried at nil in the company balance sheet. No declaration of liability or other securities have been provided for this company.

Movements in the difference between the company and consolidated equity and profit/(loss) in the financial year are as follows:

Difference in equity

2017
(x 1,000)	€
Equity according to consolidated financial statements	0
Add: negative net asset value of consolidated participating interests	0
Add: unrealised accumulated intercompany gains/(losses)	0
Less: provisions for participations (associates)	0
Equity according to company financial statements	0

Difference in result

2017
(x 1,000)	€
Profit/(loss) according to consolidated financial statements	0
Movements in negative net asset value of consolidated participating interests	0
Movements in unrealised accumulated intercompany gains/(losses)	0
Profit/(loss) according to consolidated financial statements	0
Profit/(loss) according to company financial statements	0

Provisions

31-12-2017	31-12-2016
(x 1,000)	€	€
Deferred taxes	0	0
Participations (associates)	0	0
0	0
Deferred taxes	Associates	Total
(x 1,000)	€	€	€
Balance as at 1 January 2017	0	0	0
Addition	0	0	0
0	0	0
Release	0	0	0
Utilisation	0	0	0
Balance as at 31 December 2017	0	0	0

An amount of € 0 of provisions can be classified as non-current (longer than one year).

The provision for participations relates to the Company’s share in the equity deficit of T B.V. of Haarlem, since the Company has assumed liability for the debts of T B.V.

Current liabilities

31-12-2017	31-12-2016
(x 1,000)	€	€
Debts to lending institutions	0	0
Payables to group companies	0	0
Other liabilities, accruals and deferred income	0	0
0	0

All current liabilities have a remaining term of maturity of less than one year. The fair value of current liabilities approximates the carrying amount, because of their short-term character.

Debts to lending institutions

The maximum overdraft on current account amounts to € 0.

Payables to group companies

An interest rate of 0% (2016: 0%) per annum applies to the average intercompany balances. In respect of repayment and securities provided, no agreements have been made.

Contingent liabilities

Conditional obligations

The Company and its group companies are jointly and severally liable for the bank overdrafts.

De Middelgrote B.V. is a partner in Z V.o.f., Amsterdam and is jointly and severally liable for all the debts of the general partnership.

Declaration of liability

The Company has issued a declaration of joint and several liability as referred to in section 403, book 2 of the Dutch Civil Code in respect of one of its consolidated participations. The declaration concerns T B.V. of Haarlem.

OOB’s

Fiscal unity

For corporate income tax purposes, De Middelgrote B.V. and Q B.V are a fiscal unity. Pursuant to the Collection of State Taxes Act, the company and its subsidiary are both severally and jointly liable for the tax payable by the combination.

In the financial statements of Q B.V., tax expenses are calculated on the basis of the commercial result realised by Q B.V. De Middelgrote B.V. and Q B.V. settle these expenses through their intercompany accounts.

Arrangements not included in the balance sheet

Average number of employees

During 2017, 0 employees were employed on a full-time basis (2016: 0). Of these employees, 0 were employed outside the Netherlands (2016: 0).

Directors’ remuneration

20162017	2016
(x 1,000)	€	€
Current and former directors	0	0
Current and former supervisory directors	0	0
0	0

The directors’ remuneration includes periodically paid remuneration, such as salaries, holiday allowance and social premiums, remuneration to be paid after a certain term, such as pensions, allowances on termination of employment, profit sharing, transitional benefits in so far as related to directors, bonus payments and granted shares (refer to note …), to the extent that these items were charged to the Company and all subsidiaries of the Company.

Events after balance sheet date

For the disclosure of the events after balance sheet date refer to note 39 "Events after balance sheet date" in the consolidated financial statements.

Statutory seat, XX Month 2018

De Middelgrote B.V.

Board of directors	Supervisory Board
E.F.	A.B.

Other information

Articles of association governing profit appropriation

Article X of the articles of association states the following regarding profit appropriation:

The articles of association show , that the annual profit obtained is at the free disposal of the general meeting. The holders of preference shares are entitled to a dividend distribution of 0% on the shares held by them, if and insofar as the annual profit is adequate.

2016201720162017

Independent auditor’s report