2017 AnnuAl REPORT - Camposol€¦ · Annual Report 2017 | 6 - 7 2 thE 20th AnnIvERsARy of CamPOsOL CAMPOSOL started in 1997 as a dream of transforming a desert into a large “green

2017

AnnuAl REPORT

InDEX1. Liability Statement ............................................................. 4

2. The 20th Anniversary of CAmpoSoL ....................... 6 3. mission, Vision & Value proposition .................... 10

4. our people ............................................................................. 124.1 Board of Directors 4.2 Management Team 4.3 Organizational Chart

5. Financial Results ................................................................. 20 5.1 Financial Overview 5.2 Allocation of Net Income 5.3 Internal Audit & Internal Control5.4 Key Investment Considerations 5.5 Financial Calendar5.6 External Auditors

6. Corporate Governance, Ethics & Social Responsibility........................................................ 26

7. Independent Auditor’s Report and Audited Financial Statements.................................... 32

Annual Report 2017 | 4 - 5

lIAbIlIty statement

This document contains truthful and sufficient information on the development of CAMPOSOL business during 2017. Notwithstanding the issuing party’s responsibility, the undersigning party is responsible for its contents according to the applicable provisions.

Likewise, it is worth mentioning that this document makes an outcome analysis of CAMPOSOL HOLDING PLC and SUBSIDIARIES, while the financial statements submitted only refer to CAMPOSOL S.A. as one of the subsidiaries.

Jorge Luis Ramirez RubioCEO

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Camposol Annual Report 2017 | 4 - 5


2 thE 20th AnnIvERsARy of CamPOsOL

CAMPOSOL started in 1997 as a dream of transforming a desert into a large “green sea”. The reality of this bleak region of Peru, La Libertad, was revolutionized by science, technology, and innovation based on a modern and sustainable agriculture, which merged with thousands of workers and their families, who stood to benefit from formal and dignified work, as well as opportunities for growth and a superior quality of life through participation in this grand project.Thanks to the Chavimochic irrigation project, to the venture of investors with a dream, and to the work of our people, CAMPOSOL has been growing, learning, diversifying, innovating, and constantly adapting to the needs of international markets, to continue to be a source of growth and development. Today, these activities have positioned it among the top world leaders in this industry.

During its first 10 years, CAMPOSOL was an agricultural company, concentrated in the cultivation of asparagus, destined to the European market through distributors. From 2007, with the purchase of the company, led by Group D&C (Dyer Coriat), CAMPOSOL changed course and is becoming to a world-class company, diversifying to grow, both in the products offered in the geographic locations of our fields and plants, as well as our international presence in the main markets of the world.

This way, in La Libertad and Piura, avocado, grapes, mangos, mandarins, and blueberries were crops in which we invested to offer a portfolio of diversified and attractive products for our customers and markets. Piura became our second

CAMPOSOL has been growing, learning, diversifying, innovating, and constantly adapting to the needs of international markets, to continue to be a source of growth and development. Today, these activities have positioned it among the top world leaders in this industry.

Annual Report 2017 | 6 - 7Camposol


base of operations. Then we internationalized and opened sales offices in Europe and the United States, establishing direct trade relations with major chains of supermarkets in the world.

Eventually, CAMPOSOL identified another opportunity for growth with its aquaculture division: Marinasol, which offers seafood, mainly shrimps, to international markets. Thus, CAMPOSOL has become a world-class company with two major divisions: CAMPOSOL Fruit & Vegetables, dedicated to the agro-industry; MARINASOL, dedicated to aquaculture; based on the platform of CAMPOSOL International, our division that operates abroad as the commercial arm of the company which allows us direct contact with our customers worldwide.

All this growth has also been accompanied by a process of internal maturity as a company. The implementation of processes, systems, technology, operational efficiency, continuous improvement, controls, high quality standards, and constant innovation are already part of the DNA and culture of CAMPOSOL. In addition, this growth also means opportunities for all employees of the company who can grow and expand their personal and professional horizons by contributing to their work progress and opportunities for the regions in which we operate and the communities of our environment.

Today, CAMPOSOL has no limits. Our vision of becoming the multinational Peruvian company to

offer healthy foods—with traceability and quality—under a sustainable and socially responsible model

to the families around the world, is ever closer.

The entrepreneurial vision of the Dyer Coriat (D & C) family has had much to do with the success of CAMPOSOL. Samuel Dyer Ampudia and Rosa Coriat Valera, its founders, with their five children, are outstanding and innovative entrepreneurs who have achieved this transformation of CAMPOSOL, and have projected the future scope of continuous growth in the short, medium, and long term. As a vanguard family business group, which is governed by professionalism, ethics, international best practices, and the highest standards of corporate governance and transparency in management, the Group has thus attained the confidence of international

financial markets that have enabled it to grow significantly.Today, CAMPOSOL has no limits. Our vision of becoming the multinational Peruvian company to offer healthy foods —with traceability and quality— under a sustainable and socially responsible model to the families around the world, is ever closer. Our incursions into trade offices in China, the innovative search and ongoing research to find great products to add to our portfolio, our increasingly close relationships with more than 17 of the most important supermarkets the world, and our arrival in more than 40 countries, is but a sign that the world is our pinnacle and we are destined to keep growing and fulfilling the successful, concrete realization of our dream: Stocking the tables of all the families of the world with the best quality food, while always acting with responsibility towards our people, our consumers, our communities and the environment.



MIssIonvIsIon & vAluE pRoposItIon

CAMPOSOL has shown a strong, proven trajectory of growth with a clear roadmap to deliver best-in-class results.

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missionProviding consumers worldwide, by way of our customers, with healthy food through differentiated products. This is achieved through operating excellence, innovation and the development of our people, which generates a positive and real impact on the wellbeing of the communities where we operate, creating sustainable value for our shareholders.

VisionBeing the preferred and state-of-the-art supplier of healthy and fresh food for families worldwide.

Value propositionCAMPOSOL has a unique value proposition recognized by the leading retailers worldwide. Its favorable location and infrastructure results in superior yields, lower agricultural risks, and ability to strategically time market entry. In the other hand, a strong R&D process that successfully identifies, develops and scales new products makes CAMPOSOL be at the forefront. Finally, CAMPOSOL has shown a strong, proven trajectory of growth with a clear roadmap to deliver best-in-class results.



ouR PeOPLe

4Mr. Dyer Coriat obtained his degree in Business Administration at University of Miami (Florida) with a specialization in Finance and Administration. He has a wide experience in the fishing industry; he initiated his career at Copeinca as Fleet Assistant and held subsequently various positions, including Fleet Manager, Operations Manager and CEO since 2002 to 2011. Mr. Dyer was appointed member of the Board of Directors of CAMPOSOL, an agro-industrial company of the Group, in 2008, a position which allowed him to contribute to the transformation of the company into a leading commercial organization that uses the principles of Corporate Governance and Social Responsibility. Since 2011, he is the Chairman of CAMPOSOL’s Board, as well as CEO of D&C Group. He was also CEO of CAMPOSOL from October 2011 to October 2015.

Samuel Dyer Coriat CHAIRMAN OF THE BOARD

Raúl Ubaldo Fernández DEPUTY CHAIRMAN

Mr. Fernández holds a master’s degree in Industrial Safety and Health and a bachelor’s of Science degree in Mechanical and Marine Engineering from the University of Buenos Aires, Argentina. He is considered a visionary leader, an accomplished executive and also an internationally recognized results-driven operations and technology expert. He brings 40 years of food industry experience, leading business units, new products and business development teams in multinational corporations. Lately, he has focused on developing and implementing revenue enhancing strategies for corporations involved in international food trading and commercialization. He is named in 11 patents regarding fresh food preservation, packaging and handling. He is a member of the CAMPOSOL Holding Ltd. board since November 2015.

piero Dyer Coriat DIRECTOR

Mr. Dyer Coriat obtained his master in Business Administration and bachelor in Mechanical Engineering of the University of Miami (Florida). He worked as technical and financial analyst for the new business division at D&C Group. He was General Manager at Apurimac Ferrum, an iron exploration project. He has been member of Copeinca ASA’s Board of Directors, as well as CFO, Research and Development manager and Chief Strategy Officer at CAMPOSOL. He is currently member of the CAMPOSOL’s Board of Directors.

4.1 BoARD oF DIRECToRS



Mrs. Graham is a business manager graduated from the Universidad del Pacífico, IBM Systems Engineer, and MBA from the Adolfo Ibáñez School of Management in Miami. She has advanced studies in management, corporate responsibility, and innovation at universities of Harvard, Georgetown, Monterrey, and Piura. She has been General Manager at IBM Colombia in 1999, General Manager at IBM Peru and Bolivia in 2011, and IBM Regional Strategy Manager in 2004. Mrs. Graham has been rector of the Universidad del Pacífico in 2007. She is currently an advisor in governance and member of the Board of Directors of Ferreycorp S.A., Interbank, and Nextel del Perú, as well as member of the Consultative Committee at APM Terminals and Chairwoman at Fundación Backus and WCD Peru (Women Corporate Directors).

Mr. Gómez has extensive international experience in the food industry and international trade. He is a PMA board member and past chair of the Institute of Asparagus and Vegetables. His previous experience includes management positions at Chiquita Brands International in the U.S.A., Costa Rica and Europe, and most recently as General Manager with headquarters in Florida. He was formerly Director of Corporate Banking Projects at Banco de Crédito del Perú and Project Manager at IBM Peru.

Sheyla Dyer Coriat DIRECTOR

Mrs. Dyer earned a bachelor´s degree in Business Administration at the University of Miami (Florida) in 1996. She is a senior executive with experience in international trade, operations and logistics at international companies. In 2014, she founded Comma, a Peruvian restaurant focused on healthy food. She is a member of CAMPOSOL Holding Ltd.’s board since November 2015.

William Dyer osorio DIRECTOR

Mr. Dyer Osorio has a degree in International Business Administration from the International University of Florida (Florida), with a specialization in Economics and a master’s degree in Business Administration from Thunderbird University, Arizona, and Tecnológico de Monterrey (Mexico). He has broad experience in the Peruvian fishing industry, and began his career at Copeinca as Plant Assistant and held different positions, including Warehouse Assistant, Procurement Assistant, Finance Assistant, Logistics Manager, and Raw Material Procurement Superintendent from 2002 to 2010. He currently serves as General Manager of Octopus Holding S.A.C. and Inka Comfort Hoteles del Peru SAC. Mr. Dyer is also member of the Board of Directors and shareholder of Aceros y Techos S.A., Galvanizadora Peruana S.A., and Octagon Holding S.A.C, companies from Duferco Swiss Group.

Susana Eléspuru Guerrero DIRECTOR

Mrs. Eléspuru became a member of CAMPOSOL’s Board of Directors in May 2014. She developed her career as senior executive, business consultant and search of executives for more than 30 years. She began her career at Procter & Gamble, where she was Deputy Corporate Chairwoman, Chairwoman of the Board of Directors, and General Manager for Peru, Ecuador and Bolivia. Ms. Eléspuru chaired Eléspuru Consultores, a company related to strategic management for multinational and local companies. She has wide experience in corporate governance, strategic planning, business competitiveness, and organizational development. She was chairwoman of IPAE from 2011 to 2013, chaired the CADE 2001, and led the Escuela de Empresarios of IPAE.

Carmen Rosa Graham Ayllón DIRECTOR

4.2 mAnAGEmEnT TEAm

Mr. Ramirez holds a bachelor’s degree in Business Administration with a specialization in Finance from the Loyola University (New Orleans, USA) and an MBA from ITESM (México) - ESPOL (Ecuador). He has vast international experience in Strategic Planning, Corporate Finance, Mergers & Acquisitions and International Affairs. Mr. Ramirez worked previously at Amanco Group and Mexichem (1995-2008) and held various positions in Ecuador, Costa Rica and Brazil, his last one being CFO for Latin America.He has also served as CFO at CAMPOSOL Holding Ltd. (2008-2013), Copeinca ASA (2012) and Grupo EFE (2014-2015).

Jorge Ramirez Rubio CEO

Mr. Morales is an agricultural engineer from the Universidad Nacional Agraria La Molina with a MBA from ESAN University. Mr. Morales has wide experience in the agro-industrial sector. He began his career at CAMPOSOL 15 years ago as Head of Parcel; he subsequently became Head of Farm and was appointed as Superintendent of New Areas in 2004, responsible for sowing 2,000 ha of asparagus. In 2009 he was promoted to Manager of New Crops and was responsible for managing 1,400 ha plantation of avocados, grapes and tangerines in La Libertad. Then, in 2011, he was appointed as Manager of the Asparagus Business Unit. Later in 2013, he took over the Blueberry Business Unit and at the end of 2013 was appointed Deputy CEO at CAMPOSOL, until 2014, when he was appointed CEO of CAMPOSOL Fruits & Vegetables

pedro Javier morales Garcés MANAGING DIRECTOR OF CAMPOSOL FRUITS & VEGETABLES

José Antonio Gómez BazánMANAGING DIRECTOR OF CAMPOSOL INTERNATIONAL



Mrs. Carnesella is an economist from the Universidad del Pacífico and has an MBA from the Universidad de Piura and post-graduate studies in communications and social responsibility at the Pontificia Universidad Católica del Peru and ESAN, respectively. She has served as counsellor to the Minister of Economy and Finance and the Minister of Energy and Mines, and Chairman of the Private Investment Promotion Commission. She was appointed Press & Communications Director of the Ministry of Foreign Affairs in Peru. She was the Image and Communications Manager at BBVA and also General Manager at the BBVA Foundation, as well as Corporate Image Manager at TIM Peru (now Claro).

Mr. Colichón holds a Bachelor’s Degree of Science in Business Administration from Baldwin Wallace College, Berea, Ohio, USA and an MBA degree specializing in finance and strategy from the Boston University, USA. He held the position of CFO of Graña & Montero for six years were he led the company’s debut in the local stock exchange (IPO), as well as the first future cash flow securitization bond that included partial credit guarantees from multilaterals. He also worked four years in Mckinsey & Co., globally managing projects in strategy, banking and mining operations. After that, he was appointed CFO of Grupo El Comercio, to then perform the same function in Grupo San Fernando, successfully leading IT initiatives specially related with ERP and Legacy systems reimplementation in both. He was finally appointed Chief Financial and Strategy Officer by Corporation PRIMAX where he successfully led the company’s debut in the BVL with the largest corporate bond placement in the local market.

Allan Cooper perales MANAGING DIRECTOR OF MARINASOL

Mr. Cooper holds a bachelor’s degree in Business Administration from the Universidad del Pacifico (Peru) and postgraduate studies in International Business (ESIC - Spain/ ESAN – Peru). He is also a certified business coach (International Coaching Community - England) with further studies in Leadership and Negotiation (Harvard Law School - USA). He is currently following his EMBA at Kellogg Business School - Northwestern University (USA). Mr. Cooper, has experience in strategic planning, project implementation, change management and developing business units in the produce and frozen foods Industry. He has worked at Camposol Foods for the last 5 years as Business Unit Director at Camposol Fruits & Vegetables (Lima, Peru) and as Business Development Director at Camposol Trading (Florida, USA). Before Camposol, he was formerly Sales Strategy Manager at Lan Airlines.

Andrés Colichon Sas CHIEF FINANCIAL OFFICER

Mr. Defilippi is an attorney graduated from the Pontificia Universidad Católica del Perú, has a degree in Human Resources Management from CENTRUM and the Universidad de Barcelona (Spain) with more than 20-year experience in Human Resources Management and has developed strategies and implemented programs for attracting, retaining and developing talent in companies such as Warner-Lambert Peru, Colgate Palmolive Peru, Mission Hills (Mexico), Yanbal International and Minsur. He has also led programs for talent management and employee engagement.

Guillermo Defilippi Rodriguez CENTRAL MANAGER OF HUMAN RESOURCES & DEVELOPMENT

Alejandro Arrieta pongo CENTRAL MANAGER OF LEGAL & CORPORATE AFFAIRS

Mr. Arrieta is an attorney graduated from the Universidad de Piura. He has previously worked as Senior Associate at Rodrigo, Elías & Medrano and Lazo, and De Romaña & Gagliuffi. His excellence and performance on these law firms has been recognized in the 2014 issue of the “The Legal 500 Latin America”, an international magazine specialized in the research of performance of law firms worldwide. He has also been counsellor at the Ministry of Economy and Finance (National Council for Competitiveness) and has worked as professor at the Faculty of Law in the Universidad de Piura and associate professor at the Faculty of Law in the Pontificia Universidad Católica del Perú. Mr. Arrieta has published research papers on different specialized magazines and newspapers. He currently participates as speaker in different programs.

miguel Ángel Jubal RossiSUPPLY CHAIN MANAGER

Mr. Jubal is a Transport Engineering from Catholic University of Valparaiso. He has more than 18 years of experience in logistics and operations. His last role was as Logistics Manager in VZ Logistics, in charge of giving support clients to export Reefer (fresh and frozen produce) and Dry cargoes. Previously, he was Comercial Manager in Suflenorsa Chile. Other companies in which he has been involved include Maritima Valparaiso, CSAV, Alimentos Daily Fresh, Propal Exportadora and Transportes San Pablo.

Francesca Carnesella Figuerola CENTRAL MANAGER OF MARKETING, COMMUNICATIONS AND SUSTAINABILITY



BOARDSamuel Dyer Coriat

INTERNAL AUDIT Tania Segovia

BU Avocado, Citrus Fruits and Grains

J. Quijano

BU Mangoe

and GrapeG. Miyashiro

UNArándanoR. Manzo

Country Business Management

ChinaL. Baanante

Plant Management

G. Aranda

CommercialE. Barsimantov

CEO CAMPOSOLJorge Ramirez

TRADING GENERAL MANAGEMENT

AdministrationM. Aranda

Strategic PlanningA. Orange

Comptroller’s DivisionM. Olivero

Information TechnologyVacant

Foreign TradeP. Venegas

Human DevelopmentN. Loyola

Corporate Communication M. Orellana

Projections and Offer Planning

A. Zuzunaga

Aricultural Projects Development

M. Polar

Operations Management

R. Zhou

IntensiveCultivationS. Cornejo

Semi IntensiveCultivationT. Torres

LarvaeLaboratoryJ. Luzardo

MaintenanceJ. Ocampo

GeneralAcountingF. Zavaleta

IMSE. Nestarez

Human Management

N. Poma

Fresh productsGatheringJ. Borrell

Office Manager


USAA. Maiman


EUS. Torres

Administration and FinanceK. Larsson

BUPrawns

W. Carlson

Payroll and ProcessesE. Cerdán

ADMINISTRATION AND FINANCE

A. Colichón

SUPPLY CHAIN

M. Jubal

Investor RelationsJ. Yesquén

HUMAN CAPITAL

G. Defilippi

LEGAL AND CORPORATE AFFAIRS

A. Arrieta

MARKETING, COMMUNICATIONY SUSTAINABILITY

F. Carnesella

OperationsJ. Arasti

Commercial ProcessedJ. Jares

LogisticsP. Lozada

IMS - I&DR. Enciso

Commercial FreshC. Lau

Human ManagementM. Merino

GENERAL MANAGEMENTFRUITS & VEGETABLES

J. Morales

MARINASOLGENERAL MANAGEMENT

A. Cooper J.A. Gómez

Operations Management

J. Morán

Office Management

S. Hess

SalesManagement

M. Sangio

Operations ManagementD. Sánchez

Office Management

I. Lantveld

Accounting Management

P. Vignolo

Accounting Management

J. Rivera

4.3 oRGAnIzATIonAL ChART



fInAncIAl ResULts

La Gross profit increased to USD 149.3 million (USD 97.0 million in 2016), which resulted in a gross margin of 40.5% compared to 35.1% in 2016. The main reasons for the increased gross profit and margin were the higher prices in avocado.

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5.1 Financial overview

In 2017, CAMPOSOL’s total sales amounted to USD 368.4 million (USD 276.7 million in 2016). The main reasons for the increased revenues for the full year 2017 were higher volumes of avocados to 42.5 thousand of MT (22.9 thousand of MT in 2016), blueberries 13.7 thousand of MT (10.9 thousand of MT in 2016) to and shrimp and other seafood products to 11.7 thousand of MT (8.9 thousand of MT in 2016), and the increase prices of avocados to 2.87 per net KG (2.33 in 2016).

Total Cost of Goods Sold was USD 219.1 million (USD 179.7 million in 2016), representing around 59.5% of total sales (64.9% in 2016).

Gross profit increased to USD 149.3 million (USD 97.0 million in 2016), which resulted in a gross margin of 40.5% compared to 35.1% in 2016. The main reasons for the increased gross profit and margin were the higher prices in avocado.

Administrative expenses increased from USD 26.6 million in 2016 to USD 32.8 million in 2017. The variation of USD 6.2 million is explained mainly by higher bonus to employees due to achieve of goals, salaries to employees and workers profit sharing that is a tax in Peru that a company has to distribute to their employees when it has a taxable income in a fiscal year.

Selling expenses increased from USD 27.6 million in 2016 to USD 34.7 million in 2017 due to higher volumes sold in 2017, 93.3 thousand MT versus 75.6 thousand MT in 2016.

In 2017, financial costs decreased to USD 20.2 million (USD 24.9 million in 2016). Such decrease is mainly explained by the reduction of our long term debt in USD 52.5 million at the beginning of 2017.

In 2017, profit amounted to USD 74.2 million compared to a loss of USD 10.5 million during the same period last year.EBITDA amounts to USD 125.5 million (USD 76.0 million in 2016).

During 2017, non-current assets increased to USD 387.5 million compared to USD 379.8 million at the end of 2016. Such increase as a consequence of the increase in property, plant, equipment and bearer plant.

Total inventories increased from USD 32.6 million at December 31st, 2016, to USD 37.3 million by the end of the fourth quarter of 2017. The variation of USD 4.8 million is explained mainly by the increase in volumes of blueberry.

Trade accounts receivable increased from USD 42.8 million at the end of 2016 to USD 49.1 million at the end of 2017, explained by higher collections to clients.

CamposolCamposol Annual Report 2017 | 20 - 21

Annual Report 2017 | 22 - 23CamposolCamposol

As of December 31st, 2017, trade accounts payables increased to USD 39.4 million at the end of 2017 from USD 37.7 million at the end of 2016.

As a result, the total working capital (accounts receivable + inventories - accounts payable) increased to USD 47.0 million at the end of 2017 from USD 37.7 million at the end of 2016. Current working capital as of December 31st, 2017 is 12.8% of sales (13.6%).

Total liabilities decreased to USD 300.4 million in 2017 compared to USD 367.2 million at the end of 2016.

The Company’s debt, gross of capitalized fees, decreased from USD 259.0 million at the end of 2016 to USD 181.6 million at the end of 2017, mainly due to the paid of USD 52.5 millions of senior unsecured notes and bank loans. The Company’s debt includes USD 147.5 million of senior secured notes at 10.5% (200.0), USD 19.3 million of working capital financing (40.9), USD 10.3 million of mid-term loan (15.0) and USD 4.5 million in leasing and other (3.1).

During 2017, the Company generated USD 101.2 million (70.5 million in 2016) in operations and invested USD -53.5 million (-22.6 million in 2016), in financing activities the Company paid USD -98.1 million (10.1 million in 2016), resulting in a net decrease in cash of USD -50.4 million (increase of 58.5 million in 2016). The Company ended the year with USD 34.3 million in cash (USD 84.7 million in 2016).

5.2 Allocation of net Income

The Board of Directors has proposed that the net profit of CAMPOSOL is attributable to retained result. The proposal reflects display the current accumulated profit or loss.

5.3 Internal Audit & Internal Control

The Company’s Internal Audit Management (“IA”) reports to the Board of Directors’ Audit Committee. Its mission is to evaluate the Company’s internal control system, by assisting to identify and minimize risks to achieve the Company’s main objectives and comply with its policies.

Internal Audit is entrusted with risk identification and assessment, mitigation controls and required action plans

to prevent risk occurrence or repetition, identification and evaluation of actions and events to optimize existing policies. The Company intends to maintain the Internal Audit function separate from the Compliance and Legal functions and is progressing towards enhancing the Compliance function with the assistance of specialized external counsel.

At present, the internal control process applied by Internal Audit consists primarily of the following stages: (i) identify

The Company’s debt, gross of capitalized fees, decreased from USD 259.0 million at the end of 2016 to USD 181.6 million at the end of 2017, mainly due to the paid of USD 52.5 millions of senior unsecured notes and bank loans.

the initial or inherent risk; (ii) categorize the risk; (iii) identify mitigation control measures; (iv) test and results of the control; (iv) categorize the control; and (v) determine the residual risk. An action plan is defined and further revised as needed, and its results allow the Company to categorize and control risks. To optimize the Company’s goal to develop a comprehensive Strategic Risk Plan, the Company has recently retained an external consultant to assist in this effort.

Internal Audit prepared an Annual Plan on Base: previous internal audit reports, contingencies (legal, tax, administrative, labor) with external and internal lawyers, Price Waterhouse Cooper audited financial statements, as well as CAPEX & OPEX budgets with the CFO and the Chief of budget.



5.4 Key Invesent Considerations

A combination of strong fundamentals, solid strategy, management capacity and corporate governance place in a unique position in the competitive landscape.

a) Strategic Location: The Peruvian Climatic Advantage. Due to its location in the Peruvian coastal desert plains, the crops are exposed to reduced variations of temperatures throughout the year, which supports higher yields.

Also, the Company can commercialize its products in windows in which there are lower volumes from traditional producer countries (counter-cycle).

b) Vertical Integration: CAMPOSOL is present in the entire value chain and has the flexibility to commercialize its products fresh, preserved or frozen.

c) Diversified product portfolio: CAMPOSOL produces five of the most important nontraditional export produce.

d) Global reach with World Class Customers: Products are sold by the leading retailers in Europe and USA. Low client concentration risk.

Due to its location in the Peruvian coastal desert plains, the crops are exposed to reduced

variations of temperatures throughout the year, which supports higher yields.

e) Future Strong Growth without additional planting investments: Only 46% of our blueberry hectares are fully matured, therefore, in the coming years, with the maturation of all the hectares, we expect a significant increase in volumes.

The US, which is the largest market for avocados, was fully open for Peruvian products in 2011 as the cold treatment was no longer required.

Strong competitive position versus local peers due to its scale.

5.5 Financial Calendar

22.02.2018 Results presentation Q4 2017




CamposolCamposol

5.6 External Auditors

The auditors, PricewaterhouseCoopers Limited (PwC) have expressed their willingness to continue in office.



6.1 Corporate Governance

CAMPOSOL is committed to the practice of sound corporate governance, which strengthens the confidence in the Company and contributes, as a result, to the best possible value for the shareholders, the workers, and all of its stakeholders. The objective of corporate governance is to regulate the division of roles between shareholders, the Board, and management in a more comprehensive way, even when compared to current legislation requirements.

6.2 Code of Ethics & Conduct

CAMPOSOL actively communicates and promotes its formal “Code of Ethics and Conduct” to strengthen ethical behavior at all levels of the Company and improve the control of the environment, thus making it a more stable and prosperous organization. In this sense, CAMPOSOL ‘s Code of Ethics and Conduct describes the way we work and behave with each of the stakeholders with whom we interact. Its content reflects our values and summarizes the fundamental beliefs of CAMPOSOL.

Moreover, the Company has various mechanisms for detecting potential irregular situations related to deviations from the Code of Ethics and CAMPOSOL’s internal regulations, including reviews of Internal Audit and External Audits, management oversight, and our Confidential Reporting System, or “Ethics Line.”

This system was developed in 2014 and is administered by a third party – in this case, the firm Ernst & Young – to ensure the anonymity of all allegations. Through this channel, all complaints are reviewed and have an approachability mechanism that ensures strict confidentiality regarding the identity of the person who reports a complaint, providing a retaliation-free workplace, which seeks to ensure that investigations are objective and receive the same standards of confidentiality.

coRpoRAtE GovERnAncE,

ethICs

& socIAl REsponsIbIlIty

6



prohibition of Child LaborCAMPOSOL prohibits child labor. Workers must be at least 18 years of age when hired. Child labor refers to any mental, physical, social or morally dangerous or harmful activity for children or any activity that directly interferes in their compulsory education needs defined as such by the equal authority as well as the highest international standards.

prohibition of Deprivation of Freedom and Forced Labor CAMPOSOL prohibits exploitation or any form of forced labor. CAMPOSOL shall neither require any deposits nor withhold original ID documents as a work condition. Likewise, the Company shall not subcontract suppliers or production facilities that force work to be conducted by workers under any exploitation or forced labor.

Safety and health at Work CAMPOSOL provides a safe, hygienic and healthy workplace and takes the necessary measures to prevent accidents and injuries that may arise, be related to, or take place during work or resulting from the Company s operations. CAMPOSOL has systems to detect, avoid, or respond to possible risks to the safety and health of its workers. Workers could refuse to conduct any unsafe work or any work that may risk their life.

Freedom of Association and Collective Bargaining CAMPOSOL respects the decisions of its workers and the right of association and collective bargaining. The Company does not interfere in any way in the establishment, operation, or administration of such organizations of workers, nor in collective bargaining activities.

non-DiscriminationCAMPOSOL prohibits discriminatory practices in contracting personnel and in their professional behavior due to race, color, religion, sex, age, physical capacities, nationality, or any other legally prohibited condition.

CamposolCamposol

According to our social responsibility policy, which is aligned with international standards such as ISO2600, SA 8000 and BSCI, among others, CAMPOSOL acts bestowing the following ethical criteria:

Disciplinary measuresCAMPOSOL must treat all its workers with dignity and respect. The use of corporal and/or psychological punishment, confinement, violent threats, or any other form of harassment or abuse is neither practiced nor tolerated.

Work ScheduleCAMPOSOL is responsible for guaranteeing its workers employment in accordance with the applicable laws and labor standards regarding the number of working hours and days. If there is any conflict between a statute and a mandatory industrial standard, CAMPOSOL must resolve this situation granting the standard providing the greater benefit for the worker. They must have at least one day off after a consecutive period of six working days.

SalaryCAMPOSOL must provide its workers with salaries and benefits that comply with the applicable laws and corresponding collective agreements, including those referring to the payment of overtime and other extra pay agreements.

SustainabilityCAMPOSOL developed an integral Social Responsibility Policy, with priority: its workers, and the communities, the proper use of its resources in all its operations, and especially emphasizing the use of water and energy.Environment

Environment CAMPOSOL conducts its operations under the applicable norms and its environmental commitments, which include the monitoring of emissions, management of sewage waters, environmental noise, and solid waste, among others; this allows us to mitigate our significant environmental impacts and helps to continually improve our environmental performance.



6.3 Social Responsibility

CAMPOSOL believes that to guarantee the sustainability of its business, it is essential to ensure that it operates in full compliance with ethical principles, respecting people and the environment. This guarantee is achieved by adhering to the social responsibility policy of our organization, in tandem with the principles and objectives of the UN World Global Compact, of which we are an active member since 2008.

As a result, the Company contemplates the triple result in all its decisions: economic, social, and environmental, and is transparent when sharing these aspects. Thus, CAMPOSOL publishes annual sustainability reports aligned with the GRI indicators, which are available on our web page: www.camposol.com.pe. The aim of this report is to reflect, in a transparent and systematic way, the main indicators that show the environmental and social

CamposolCamposol

CAMPOSOL believes that to guarantee the sustainability of its business, it is essential to ensure

that it operates in full compliance with ethical principles, respecting people and the environment.

performance of the Company, as well as the programs and activities we conduct regarding social responsibility each year.

Additionally, the Company strives to communicate and apply social responsibility principles and values to all processes, operations, and areas of the Company transversally, and endeavors to incorporate the contributions and comments of its stakeholders, which

leads the Company to regularly conduct investigative studies on the attitudes and perceptions of these groups to gain awareness of their opinions and perspectives regarding our performance, and to enable timely, adequate corrective measures if necessary.

To learn more about all our SR programs and news, audits and social certifications, please visit our web site: www.camposol.com.pe


7InDEpEnDEnt AuDItoR’s REpoRt and AuDItED fInAncIAl stAtEMEnts

Camposol

CAMPOSOL HOLDING PLC (FORMERLY CAMPOSOL HOLDING LIMITED) AND SUBSIDIARIES

ConSoLIDATED FInAnCIAL STATEmEnTS31 DECEmBER 2017

CONTENTS Pages

Consolidated statement of financial position 34 - 35Consolidated statement of comprehensive income (loss) 36 - 37Consolidated statement of changes in equity 38 - 39Consolidated statement of cash flows 40Notes to the consolidated financial statements 41 - 131

USD = United States dollarPEN = Sol€ = Euros

Independent Auditor’s Report and Audited financial statements 2017 | 32 - 33

Camposol


ConSoLIDATED STATEmEnT oF FInAnCIAL poSITIon (IN THOUSANDS OF U.S. DOLLARS)

CAmpoSoL hoLDInG pLC (FoRmERLY CAmpoSoL hoLDInG LImITED) AnD SUBSIDIARIES

At 31 December note 2017 2016 ASSETS non-CURREnT ASSETS Property, plant, equipment and bearer plant 6 376,366 370,755 Investments accounted for using the equity method 7 2,054 2,764 Intangible assets 8 4,907 3,694 Deferred tax assets 17 420 2,625 Other assets 2.28 3,780 - Total non-current assets 387,527 379,838 CURREnT ASSETS Prepaid expenses 806 988 Biological assets 9 94,113 68,063 Inventories 12 37,340 32,568 Other accounts receivable 13 10,411 9,280 Current tax assets - 6,750 Trade accounts receivable 14 49,123 42,799 Cash subject to restriction 15 1,285 - Cash and cash equivalents 15 34,271 84,700 227,349 245,148 Assets classified as held for sale 36 - 2,334 Total current assets 227,349 247,482 Total assets 614,876 627,320 Equity attributable to shareholders of the parent Share capital 16 388 513 Share premium 16 217,312 217,312 Treasury share reserves 16 825 825 Retained earnings 88,636 33,980 307,161 252,630 Non-controlling interest 16 7,285 7,468 Total equity 314,446 260,098 LIABILITIES non-CURREnT LIABILITIES Long - term debt 19 149,934 155,430 Deferred tax liabilities 17 45,985 46,255 Provisions 22 8,574 8,180 Total non-current liabilities 204,493 209,865

At 31 December note 2017 2016CURREnT LIABILITIES Current portion of long-term debt 19 12,407 62,761 Trade accounts payable 20 39,397 37,698 Other accounts payable 21 12,795 5,616 Current tax liabilities 4,699 1,613 Provisions 22 7,375 8,819 Bank loans 23 19,264 40,850 Total current liabilities 95,937 157,357 Total liabilities 300,430 367,222 Total equity and liabilities 614,876 627,320

The notes on pages from 41 to 131 are an integral part of these consolidated financial statements.

Camposol


For the year ended 31 December note 2017 2016 2015 ConTInUInG opERATIonS Revenue 25 368,440 276,691 236,637

Cost of sales: 26 Cost of sales (202,729) (157,625) (160,557)Depreciation of bearer plants (16,366) (19,578) (17,761)

Impaiment of fixed assets - (2,501) - Gross profit before adjustment for biological assets 149,345 96,987 58,319 Net gain arising from changes in fair value of biological assets 9 27,797 7,624 18,737 Gross profit after adjustment for biological assets 177,142 104,611 77,056 Selling expenses 27 (34,733) (27,582) (28,266)Administrative expenses 28 (32,828) (26,610) (24,904)Other income 30 1,177 4,440 9,152 Other expenses 30 (2,786) (17,782) (7,825)Net foreign exchange transactions losses (285) (2,455) (5,222)Operating profit 107,687 34,622 19,99 Share of (loss) profit of investments accounted for using the equity method 7 (390) 728 253 Financial income 31 110 174 13 Financial cost 31 (20,208) (24,865) (24,969)Profit (loss) before income tax 87,199 10,659 (4,712)Income tax expense 33 (12,087) (8,802) (4,204)Profit (loss) for the year from continuing operations (attributable to equity holders of the parent) 75,112 1,857 (8,916) DISConTInUED opERATIonS: Profit (loss) for the year from discontinued operations net of tax 36 (915) (12,394) (16,387)Profit (loss) for the year 74,197 (10,537) (25,303) oThER CompREhEnSIVE InComE (LoSS): Item that may be reclassified to profit or loss: Currency translation adjustment 276 (854) (5,862)Total comprehensive income (loss) for the year 74,473 (11,391) (31,165) pRoFIT (LoSS) ATTRIBUTABLE To: Owners of the parent 74,206 (10,054) (26,093)Non-controlling interest (9) (483) 790 74,197 (10,537) (25,303)

ConSoLIDATED STATEmEnT oF CompREhEnSIVE InComE (LoSS) (IN THOUSANDS OF U.S. DOLLARS)

For the year ended 31 December note 2017 2016 2015

pRoFIT (LoSS) ATTRIBUTABLE To oWnERS: Continuing operations 75,121 2,340 (9,706)Discontinued operations (915) (12,394) (16,387) 74,206 (10,054) (26,093) ToTAL CompREhEnSIVE InCoRmE (LoSS) FoR ThE YEAR ATTRIBUTABLE To: Owners of the parent 74,656 (11,141) (30,830)Non-controlling interests (183) (250) (335) 74,473 (11,391) (31,165)ToTAL CompREhEnSIVE InComE (LoSS) ATTRIBUTABLE To oWnERS oF ThE pAREnT ARISES FRom: Continuing operations 75,571 1,253 (14,443)Discontinued operations (915) (12,394) (16,387) 74,656 (11,141) (30,830)ToTAL CompREhEnSIVE LoSS ATTRIBUTABLE To non-ConTRoLLInG InTERESTS: Continuing operations (183) (250) (335)Discontinued operations - - - (183) (250) (335) BASIC AnD DILUTED EARnInGS (LoSSES) pER ShARE To ThE EqUITY hoLDERS oF pAREnT DURInG ThE YEAR (ExpRESSED In U.S. DoLLARS pER ShARE): From continuing operations 1.14 0.03 (0.14)From discontinuing operations (0.01) (0.19) (0.25)Basic and diluted earnings (losses) per ordinary share 38 1.13 (0.16) (0.39)

Items in other comprehensive income above are disclosed net of tax.



Camposol


Attributable to owners of the parent notes number of shares Share capital Share premium Treasuryshares reserves Retained earnings Total non-controlling interest Total equity BALAnCES AT 1 JAnUARY 2015 32,404 507 212,318 825 76,154 289,804 8,330 298,134 Adjustment - - - - (203) (203) - (203)Comprehensive income (loss): Loss for the year - - - - (26,093) (26,093) 790 (25,303)Other comprehensive income (loss): - Currency translation adjustment - - - - (4,737) (4,737) (1,125) (5,862)Total comprehensive income (loss) - - - - (30,830) (30,830) (335) (31,165)Transactions with owners: - - Dividends distribution - - - - - - (188) (188)Total transactions with owners - - - - - - (188) (188)Balances as of 31 December 2015 32,404 507 212,318 825 45,121 258,771 7,807 266,578 BALAnCES AT 1 JAnUARY 2016 32,404 507 212,318 825 45,121 258,771 7,807 266,578 Comprehensive income (loss): Loss for the year - - - - (10,054) (10,054) (483) (10,537)Other comprehensive income (loss): Currency translation adjustment - - - - (1,087) (1,087) 233 (854)Total comprehensive income (loss) - - - - (11,141) (11,141) (250) (11,391)Transactions with owners: Proceeds from issues of shares 16 521 6 4,994 - - 5,000 - 5,000 Dividends distribution - - - - - - (89) (89)Total transactions with owners 521 6 4,994 - - 5,000 (89) 4,911 Balances as of 31 December 2016 32,925 513 217,312 825 33,980 252,630 7,468 260,098 BALAnCES AT 1 JAnUARY 2017 32,925 513 217,312 825 33,980 252,630 7,468 260,098 Comprehensive income (loss): Profit for the year - - - - 74,206 74,206 (9) 74,197 Other comprehensive income (loss): Currency translation adjustment - - - - 450 450 (174) 276 Total comprehensive income (loss) - - - - 74,656 74,656 (183) 74,473 Transactions with owners: Effect of change in currency denomination of shares 16 - (125) - - - (125) - (125)Stock split 16 32,925 - - - - - - - Dividends distribution - - - - (20,000) (20,000) - (20,000)Total transactions with owners 32,925 (125) - - (20,000) (20,125) - (20,125)Balances as of 31 December 2017 65,850 388 217,312 825 88,636 307,161 7,285 314,446


ConSoLIDATED STATEmEnT oF ChAnGES In EqUITY (IN THOUSANDS OF U.S. DOLLARS)


Camposol


For the year ended 31 December note 2017 2016 2015

CASh FLoWS FRom opERATInG ACTIVITIES Cash receipts from customers 363,814 304,700 284,442Cash paid to suppliers and employees (250,744) (223,270) (231,930)Interest paid (20,305) (20,691) (23,564)Income tax paid (590) (398) (2,734)Custom duties refund collections 13 5,916 5,348 7,660 Other collections 3,076 4,834 - Other payments - - (1,587)Net cash generated from operating activities 32 101,167 70,523 32,287 CASh FLoWS FRom InVESTInG ACTIVITIES Transfer to/from cash subject to restriction (1,285) - 7,500 Purchases of property, plant and equipment 6 (23,405) (7,305) (11,921)Investment in bearer plants (27,223) (16,571) (11,183)Purchase of intangibles, excluding goodwill 8 (1,719) (892) (1,683)Proceeds from sale of property, plant and equipment 6 128 2,156 8,951 Net cash used in investing activities (53,504) (22,612) (8,336) CASh FLoWS FRom FInAnCInG ACTIVITIES Bank loans proceeds 23 88,240 102,650 128,383 Bank loans payments 23 (109,890) (97,920) (151,866)Increase of capital 16 - 5,000 - Payments of dividends 16 (20,000) - - Dividends paid to non controlling interest in subsidiaries 16 - (89) (188)Repurchase of bonds 19 - (5,663) - Transaction costs 19 (1,513) (5,381) - Long-term debt proceeds 19 - 15,000 - Payment of bonds 19 (46,947) - - Payments of long-term debt 19 (7,982) (3,455) (4,138)Net cash (used in) generated from financing activities (98,092) 10,142 (27,809) Net (decrease) increase in cash and cash equivalents (50,429) 58,053 (3,858)Cash and cash equivalents at beginning of year 84,700 26,647 30,505 Cash and cash equivalents at end of year 15 34,271 84,700 26,647 Non-cash transactions: Property, plant and equipment acquired under finance lease 19 - 63 - Purchase of a subsidiary paid with non-monetary asset 24 - 3,567 - Purchases of property, plant, equipment and investment in bearer plant through an increase in accounts payable 12,129 15,221 7,037 Purchases of intangibles through an increase in accounts payable 286 - -


oVERVIEW oF noTES To ThE ConSoLIDATED FInAnCIAL STATEmEnTS31 DECEMBER 2017

CONTENTS

Note1 General information2 Summary of significant accounting policies3 Financial risk management4 Critical accounting estimates and judgments5 Segment information6 Property, plant and equipment7 Investment in associate8 Intangible assets9 Biological assets10 Financial instruments by category11 Credit quality of financial assets12 Inventories13 Other accounts receivable14 Trade accounts receivable15 Cash and cash equivalents and cash subject to restriction16 Shareholders’ equity17 Deferred income tax18 Workers’ profit sharing19 Long-term debt20 Trade accounts payable21 Other accounts payable22 Provisions23 Bank loans24 Business combination25 Revenue26 Cost of sales27 Selling expenses28 Administrative expenses29 Personnel expenses30 Other income and expenses31 Financial income and costs32 Cash generated from operations33 Income tax expense34 Contingent liabilities35 Transactions with shareholders and other related parties36 Non-current assets held for sale and discontinued operations37 Commitments and guarantees38 Basic and diluted earnings per share39 Restrictions and parent company financial information40 Events after the reporting period

ConSoLIDATED STATEmEnT oF CASh FLoWS (IN THOUSANDS OF U.S. DOLLARS)

CAMPOSOL HOLDING PLC (FORMERLY CAMPOSOL HOLDING LIMITED) AND SUBSIDIARIES (IN THOUSANDS OF U.S. DOLLARS UNLESS OTHERWISE STATED) Camposol


1. GEnERAL InFoRmATIon

a) Business activities

Camposol Holding PLC (formerly Camposol Holding Limited) (hereinafter the Company), was incorporated in Cyprus on 9 July 2007, in accordance with the provisions of the Cyprus Companies Law, Cap. 113. On October 18, 2017, Camposol Holding Limited was converted to a public company limited by shares under Cyprus law with the name “Camposol Holding PLC”. Camposol Holding PLC and subsidiaries are hereinafter referred as the Group.

The Company through its subsidiaries is mainly engaged in investing in the agriculture business, shrimp farming and managing the export of agricultural products mainly to the United States and to the European Union.

The Company’s legal address is Kanika International Business Center, 6th Floor, Profiti Ilia No 4 Germasogeia, Limassol 4046, Cyprus.

As of 31 December 2017, 2016 and 2015, Generación del Pacífico Grupo S.L. is ultimate controlling party and has 82.59% of the shares of the Company. The remainder of the Company’s issued share capital in 2017, 2016 and 2015 is owned by certain members of the Dyer family. Generación del Pacifico Grupo SL is owned by the Dyer Coriat family but no individual member has ultimate control of the Company.

The subsidiaries and their activities are as follows:

Direct or indirect equity Country of interest as of 31 DecemberCompany principal activity incorporation 2017 2016

Camposol S.A. Agribusiness Peru 100% 100%Nor Agro Perú S.A.C. Farmland owner Peru 100% 100%Prodex S.A.C. Agriculture Peru - 100%Vegesol S.A. Agriculture Peru 100% 100%Marinasol S.A. Fish canning Peru - 100%Campoinca S.A. Farmland owner Peru 100% 100%-Muelles y Servicios Paita S.R.L. Farmland owner Peru 100% 100%Marinazul S.A. Shrimp farming Peru 99.99% 99.99%Domingo Rodas S.A. Shrimp farmland rental Peru 100% 100%Camarones S.A.C. Shrimp farmland rental Peru 100% 100%Inversiones Agrícolas Inmobiliarias S.A.C. Farmland owner Peru 99.99% 99.99%Corporación Refrigerados Iny S.A. Shrimp farming Peru 80% 80%Congelados y Frescos S.A.C. Seafood processing business Peru 100% 100%Marante Investment S.A. Holding Peru 100% 100%

Palmas Hill Investment S.A.C. Holding Peru 100% 100%Pesquera ABC S.A.C. Seafood processing business Peru 75% 75%Pacifico Azul S.A. Shrimp farmland rental Peru 100% 100%Camposol Europa S.L. Distribution Spain 100% 100%Camposol Fresh B.V. Distribution Netherlands 100% 100%Madoca Corp. Holding Peru 100% 100%Grainlens Limited Holding Peru 100% 100%Blacklocust S.A.C. Holding Peru 100% 100%Siboure Holding Limited Holding Peru 100% 100%Persea, Inc. Holding USA 100% 100%Camposol Fresh U.S.A., Inc. Distribution USA 100% 100%Camposol Specialties, Inc. Distribution USA 100% 100%Camposol Colombia S.A.S. Agriculture Colombia 100% -Camposol Foods Trading(Shangai) Co Ltd Distribution China 100% -Camposol Fresh Foods Trading Co Ltd. Distribution China 100% -

Camposol S.A. is one of the subsidiaries of the Group which is a Peruvian agribusiness corporation incorporated in the city of Lima on 31 January 1997. The legal address of Camposol S.A. is Avenida El Derby 250, Urbanización El Derby de Monterrico, Santiago de Surco, Lima, Peru; its operating and commercial office is located in Carretera Panamericana Norte Km.497.5, Chao, Viru, La Libertad, three production establishments or agricultural lands are located in Carretera Panamericana Norte Kms. 510, 512 and 527 in the department of La Libertad, Peru. In addition, Camposol S.A. operates one administrative office in the department of Piura.

In addition, the Company has an associate, Empacadora de Frutos Tropicales S.A.C. which is engaged in the processing and commercialization of fresh fruit products (Note 7).

The acquisition of Congelados y Frescos S.A.C. took place during 2016 with a stock exchange of Santa Angela S.A. (Note 24); with this acquisition Congelados y Frescos S.A.C. now belongs to the Seafoods segment (Note 5).

On 17 December 2015, the Group signed a contract of sale in which transfers the ownership of its asparagus line of preserved products to a third party (Sociedad Agrícola Virú S.A.C.), and this was effective in January 2016.

In 2016, the Board decided to discontinue operations of Asparagus. By the end of 2016 the Group retired the crops of asparagus and ceased the production process and industrial activity of all the asparagus line; lands and other property, plant and equipment were transferred to other segments (mainly blueberry), and the personnel and management were retired. The results from operations of this segment is shown under discontinued operations in the consolidated statement of comprehensive income.



The subsidiaries Camposol Colombia S.A.S. (an entity that will be engaged in the production of fresh produce in the future), Camposol Foods Trading Shangai Co Ltd and Camposol Fresh Foods Trading Co Ltd. (commercial offices destined to distribution process) were incorporated in 2017.

The table below presents details of the owned agricultural land by the Group:

Area in hectares (has) Land Country / region 2017 2016

Mar Verde Peru / La Libertad 2,496 2,496Agricultor Peru / La Libertad 1,570 1,570Gloria Peru / La Libertad 1,018 1,018Agromás Peru / La Libertad 414 414Virú - San José Peru / La Libertad 313 313Compositan Peru / La Libertad 3,778 3,778Yakuy Minka Peru / La Libertad 2,761 2,761INAIN Peru / La Libertad 22 22Huangala - Terra Peru / Piura 2,549 2,549Santa Ana Peru / Piura 3,370 3,370Santa Anita Peru / Piura 128 128Santa Julia Peru / Piura 2,638 2,638La Merced Peru / Piura 884 884Ocoto Alto Peru / Piura 112 112Ocoto Bajo Peru / Piura 18 18Ica Peru / Icag 188 188Tumbes Peru / Tumbes 2,009 2,009Florida Colombia / Caldas 110 - Finca la Estrella Colombia / Caldas 12 - 24,390 24,268 The Group carries out its activities over the following planted areas:

Area in hectares (ha) 2017 2016

Avocados 2,655 2,653Blueberries 1,862 1,460Shrimp 988 1,003Others 1,086 1,006 6,591 6,122

b) Approval of the financial statements

The 2017 consolidated financial statements of the Group were approved by the Board of Directors’ Meeting held in the offices of the Company in Lima on April 17th, 2018.

2. SUmmARY oF SIGnIFICAnT ACCoUnTInG poLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of preparation

The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations issued by the IFRS Interpretations Committee (IFRIC) applicable to companies reporting under IFRS. The financial statements comply with IFRS as issued by the IASB.

The consolidated financial statements have been prepared under the historical cost convention, as modified by biological assets recognized at fair value, investment in associate recognized under the equity method accounting and assets of disposal group classified as held for sale recognised at the lower of their carrying amount and fair value less costs to sell. The financial statements are expressed in thousands of United States Dollars, unless otherwise stated.

At 31 December 2017 and 2016, the Group presented as discontinued operations asparagus and artichoke operations, since they met the criteria for the classification. The results from operations of these segments are shown under discontinued operations in the consolidated statement of comprehensive income. See Note 2.7 and Note 36.

Certain prior year information have been reclassified to conform with the current year presentation. The reclassifications were not material to the consolidated financial statements.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4.

2.2 Adoption of new and revised IFRSs

a) Standards, amendments and interpretations adopted by the group in 2017.During the current year the Group adopted all the new and revised International Financial Reporting Standards (IFRS) that are relevant to its operations and are effective for accounting periods beginning on 1 January 2017. This adoption did not have a material effect on the accounting policies of the group. The amendments to IAS 7 require disclosure of changes in liabilities arising from financial activities (See notes 19 and 23).

b) new standards, amendments and interpretations effective for financial statements of annual periods beginning on or after January 1, 2018, which have not been early adopted.• IFRS9, “Financial instruments”, addresses the classification, measurement and recognition of financial assets and

financial liabilities. The complete version of IFRS 9 was issued in July 2014. It replaces the guidance in IAS 39 on the classification and measurement of financial instruments.



IFRS 9 retains but simplifies the mixed model for the measurement of financial instruments of IAS 39 and establishes three major measurement categories for financial assets: amortized cost, fair value through other comprehensive income and fair value through profit or loss. The basis of classification depends on the entity’s business model and the contractual cash flow characteristics of the financial asset.

The standard introduces a new model for the recognition of impairment losses – the expected credit losses (ECL) model. There is a ‘three stage’ approach which is based on the change in credit quality of financial assets since initial recognition. In practice, the new rules mean that entities will have to record an immediate loss equal to the 12-month ECL on initial recognition of financial assets that are not credit impaired (or lifetime ECL for trade receivables). Where there has been a significant increase in credit risk, impairment is measured using lifetime ECL rather than 12-month ECL. The model includes operational simplifications for lease and trade receivables.

For financial liabilities there were no changes to classification and measurement except for the recognition of changes in own credit risk in other comprehensive income, for liabilities designated at fair value through profit or loss. IFRS 9 relaxes the requirements for hedge effectiveness. It requires an economic relationship between the hedged item and hedging instrument and for the ‘hedged ratio’ to be the same as the one management actually use for risk management purposes. Contemporaneous documentation is still required but is different to that currently prepared under IAS 39.

The standard is effective for accounting periods beginning on or after 1 January 2018.

The Group is currently evaluating the impact of this standard on the preparation of its account receivable measured at amortized cost; however the group does not expect the new guidance to have a significant impact on the classification and measurement on other financial assets since the group does not have debt instruments classified as available-for-sale, equity instruments classified as available-for-sale, equity investments measured at fair value through profit or loss and debt instruments classified as held-to-maturity.

There will be no impact on the group’s accounting for financial liabilities, as the new requirements only affect the accounting for financial liabilities that are designated at fair value through profit or loss and the group does not have any such liabilities. The derecognition rules have been transferred from IAS 39 Financial Instruments: Recognition and Measurement and have not been changed.

IFRS 9 relaxes the requirements for hedge effectiveness. It requires an economic relationship between the hedged item and hedging instrument and for the ‘hedged ratio’. Contemporaneous documentation is still required but is different to that currently prepared under IAS 39. There will be no impact on the Group’s financial statements since the Company does not have hedge accounting.

The Group has the expectation of applying the modified retrospective transition method to meet the IFRS 9 new requirements. The Group has conducted a preliminary quantitative assessment of the impacts of applying IFRS 9 and the expectation

is that there will be no material impact in accounts receivable resulting from the adoption of this standard.

• IFRS15,“Revenuefromcontractswithcustomers” It replaces IAS 18 “Revenue” and IAS 11 “Construction contracts” and the related interpretations. The new standard is

based on the principle that revenue is recognized when control of a good or service transfers to a customer - so the notion of control replaces the existing notion of risks and rewards.

A new five-step process must be applied before revenue can be recognized: (i) identify contracts with customers, (ii) identify the separate performance obligation, (iii) determine the transaction price of the contract, (iv) allocate the transaction price to each of the separate performance obligations; and (v) recognize the revenue as each performance obligation is satisfied.

The standard is effective for annual periods beginning on or after January 1, 2018.

At December 31, 2017, the Group has conducted qualitative assessment to identify impacts:

Determine the transaction price: The group grants some commercial discounts to customers. The Group will assess whether variable consideration under IFRS 15 should be recognized for this purpose.

Presentation requirements and disclosures: IFRS 15 establishes presentation and disclosure requirements that represent a significant change from current practice, and increases the volume of disclosures in the Group’s financial statements. Many of the disclosures required by IFRS 15 are completely new. The Group is evaluating the effects these new requirements will have on the systems, internal control, policies and procedures required to collect and disclose the information required.

The Group has the expectation of applying the modified retrospective transition method to meet the IFRS 15 new requirements.

The Group has conducted a preliminary quantitative assessment of the impacts of applying IFRS 15 and the expectation is that there will be no material impact resulting from the adoption of this standard.

• IFRS16“Leases” This standard replaces the current rules relating to the treatment of leases IAS 17 “Leases” and IFRIC 4 “Contracts may

contain a lease” and other related interpretations.

IFRS 16, “Leases” (IFRS 16) will have far-reaching consequences for lesees since it requires the recognition of almost all leases in the statement of financial position. The standard removes the distinction between finance and operating leases and requires lessees to recognize an asset representing its right of use of the leased asset and a liability for the obligation of future contractual payments, except for lease contracts of less than 12 months (considering in this determination the likelihood of contract extension) and low-value asset lease contracts.

In the cash flow statement, operating cash flows will be higher as cash payments for the principal portion of the lease liability are classified within financing activities. Only the part of the payments that reflects interest can continue to be presented as operating cash flows.

The accounting by lessors will not significantly change. Some differences may arise as a result of the new guidance on the definition of a lease. Under IFRS 16, a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Group is currently evaluating the impact of this standard on the preparation of its financial statements, however it’s not expected to have a significant impact to the financial statements since the Group does not maintain long-term or significant operating leases.



IFRS 16 is effective for financial periods beginning on or after January 1, 2019; early application is permitted provided IFRS 15 is also early adopted. The Group does not intend to adopt the standard before its effective date.

• IFRIC22,“Foreigncurrencytransactionsandadvanceconsideration” The new interpretation clarifies which date should be used for translation when a foreign currency transaction involves

an advance payment/receipt.

The interpretation provides guidance for when a single payment/receipt is made, as well as for situations where multiple payments/receipts are made: i) single payment/receipt; the date of the transaction, for the purpose of determining the exchange rate to use on initial recognition of the related item; ii) multiple payments/receipts; If there are multiple payments or receipts in advance of recognizing the related item, the entity should determine the date of the transaction for each payment or receipt.

The Group considers that the method currently applied is aligned to the requirements of IFRIC 22 and does not expect an impact to the financial statements.

This interpretation is effective for periods beginning on or after January 1, 2018.

• IFRIC23,“UncertaintyoverIncomeTaxTreatments” This Interpretation clarifies how to apply the recognition and measurement requirements in IAS 12 when there is

uncertainty over income tax treatments. In such a circumstance, an entity shall recognize and measure its current or deferred tax asset or liability applying the requirements in IAS 12 based on taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates determined applying this Interpretation.

The Group is currently evaluating the impact of this interpretation on the preparation of its financial statements.

This interpretation is effective for financial periods beginning on or after January 1, 2019; early application is permitted.

2.3 Consolidation

The consolidated financial statements include the assets, liabilities, results and cash flows of the Company and its subsidiaries detailed in Note 1-(a).

a) Subsidiaries Subsidiaries are all entities (including structured entities) over which the Group has control. The group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases.

The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a business is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities

assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognized amounts of acquiree’s identifiable net assets. The values estimated in the business combinations described in Note 24 were final and not preliminary values.

Acquisition-related costs are expensed as incurred The excess of the consideration transferred, any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill (note 2.8). If the total of consideration transferred, non-controlling interest recognized and previously held interest measured is less than the fair value of the net assets of the business acquired, these cases are defined as a bargain purchase, the difference is recognized directly in the consolidated statement of comprehensive income.

Inter-company transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform with the Group’s accounting policies.

b) Associates

Associates are all entities over which the group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognized at cost, and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the investee after the date of acquisition. The Group’s investment in associates includes goodwill identified on acquisition.

If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income is reclassified to profit or loss, where appropriate.

The Group’s share of post-acquisition profit or loss of an associate, is recognized in the consolidated statement of comprehensive income, and its share of post-acquisition movements in other comprehensive income of the associate is recognized in other comprehensive income of the Group with a corresponding adjustment to the carrying amount of the investment. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognize its share of further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group.

Dilution gains and losses arising from changes in the interest on investments in associates are recognized in the consolidated statement of comprehensive income. The carrying amount of equity-accounted investments in associates is tested for impairment in accordance with the policy described in Note 2.11.



2.4 Segment information

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources, assess performance of the operating segments and makes strategic decisions has been identified as the Board of Directors.

2.5 Foreign currency translation

a)FunctionalandpresentationcurrencyItems included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which each entity operates (‘the functional currency’). The consolidated financial statements are presented in US Dollars, which is the Group’s presentation currency.

b) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the consolidated statement of comprehensive income.

Foreign exchange gains and losses that relate to borrowings, cash and cash equivalents and other accounts are presented in the consolidated statement of comprehensive income within ‘net foreign exchange transactions losses’.

c) Group companies The results and financial position of all the Group entities (none of which has the currency of a hyper inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

(a) assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that consolidated statement of financial position;

(b) income and expenses for each income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions);

(c) equity balances, except for retained earnings, are translated at the historical exchange rates; and (d) all resulting exchange differences are recognized in other comprehensive income and included in retained earnings.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.

2.6 property, plant, equipment and bearer plant

Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Historical cost comprises the purchase price and any cost directly attributable to bringing the asset into working condition for its intended use. Cost of replacing part of the plant and equipment is recognized in the carrying amount of the plant and equipment if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amounts of replaced parts are derecognized.

The cost less the residual value of each item of property, plant and equipment is depreciated over its useful life.

Land is not depreciated. Depreciation is calculated using the straight-line method over the estimated useful life of individual assets, as follows:

Years

Buildings and other constructions Between 10 and 33Irrigation structure 70Plant and equipment Between 5 and 10Furniture and fixtures 10Other equipment Between 3 and 10Vehicles 5

Bearer Plant A bearer plant is a living plant that is used in producing or growing agricultural produce; is expected to be productive for more than one year; and has a remote probability they will be sold as agricultural produce, except for incidental scrap sales. The incidental scrap sales will not prevent a plant to meet the definition of bearer plant. The produce grown on bearer plants is a biological asset.

Upon the adoption of the amendments to IAS 16 and IAS 41 on January 1, 2015, the group measured bearer plants at deemed cost. Fair value was concluded to be equivalent to deemed cost upon adoption of the amendments.

Costs related to the planting and growth of bearer plants which include seedlings, sowing, irrigation, agrochemicals and fertilizers are capitalized up to the point of maturity. Administrative, selling and other expenses not related to the production of the bearer plants are expensed in the consolidated statement of comprehensive income.

The production plants that are in growing phase before maturity (permanent investment period) are recognized at historical costs and classified as bearer plants (immature), their growing phase before maturity takes from 6 to 36 months depending on the type of plant.

A bearer plant reaches maturity when it is in the location and condition necessary for it to be capable of bearing produce in the manner intended by management (after the permanent investment period ends). The permanent investment period is defined by Management as the plantation growth stage, which starts one day after the transplant to the plot until its first harvest.

At the point that the production plants reach maturity, they are reclassified to bearer plants (mature), and depreciation commences. Any subsequent costs are expensed unless they enhance the future economic benefits of the assets.



Bearer plants are depreciated under the straight-line method over their estimated useful lives. This method considers the actual curves of production which are basically linear over their estimated useful lives, as follows:

Years

Bearer plants:Avocado 18Mangoes 22Grapes 20Blueberries 10Tangerine 18Asparagus 10

Depreciation commences when assets are available for use as intended by Management.

The assets residual values and useful lives are reviewed, and adjusted prospectively if appropriate, at each financial year-end. At 31 December 2017, there were no changes resulting from the review.

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Management determined one year as substantial period of time. The capitalisation rate used to determine the amount of borrowing costs to be capitalised is the weighted average interest rate applicable to the entity’s general borrowings during the year.

An assets’ carrying amount is written-down immediately to its recoverable amount, if the asset’s carrying amount is greater than its estimated recoverable amount (Note 2.9).

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within ‘other income’ or ‘other expenses’, respectively, in the consolidated statement of comprehensive income.

2.7 Assets held for sale

Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell.

An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain or loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised at the date of derecognition.

Non-current assets held for sale (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised.

Non-current assets classified as held for sale and the assets of a disposal group are presented separately from the other assets in the consolidated statement of financial position. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the consolidated statement of financial position. At 2015 the Group present as assets held for sale the assets related to the line of preserved asparagus and artichoke, and the assets from Agroindustrial Santa Angela as met the criteria. At 2016 the Group present as assets held for sale, mainly other immaterial remaining inventory of asparagus, which was sold in the first half of 2017. A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately in the statement of comprehensive income.

At December 31, 2016, the Group presented as discontinued operations asparagus and artichoke segments, since they met the criteria for the classification.

2.8 Intangible assets

SoftwareAcquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortized over their estimated useful lives of ten years.

Goodwill Goodwill is initially measured as the excess of the consideration transferred over the fair value of the net acquirer’s identifiable assets, liabilities, contingent liabilities and non-controlling interest at the date of acquisition. When the accounting for a business combination is not completed by the end of the reporting period in which the business combination took place, the Group reports provisional amounts for those items with valuation process still incomplete.

The net identifiable assets acquired and liabilities assumed accounted at provisional fair values at acquisition date may be retroactively adjusted to reflect additional information gathered on facts and circumstances existing at acquisition date which, if known, would have affected the measurement of the amounts originally recognized. The period allowed by IFRS 3 for the amendment of provisional amounts recognized should not exceed one year from the acquisition date.

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating-units, or groups of cash-generating-units, that is expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of the CGU which goodwill is allocated to is compared to the recoverable amount, which is the higher of value in use and the fair value less costs of disposal. Any impairment is recognized immediately as an expense and is not subsequently reversed.



2.9 Impairment of non-financial assets

Goodwill, intangible assets that have an indefinite useful life or intangible assets not ready to use are not subject to amortization and are tested annually for impairment. Assets that are subject to amortization and depreciation and other assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are largely independent cash inflows (cash-generating units). Prior impairments of non-financial assets (other than goodwill) are reviewed for possible reversal at each reporting date.

Fair value is the price received to sell an asset in an orderly transaction between market participants at measurement date. In assessing the value in use of an asset, its estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

2.10 Financial assets

Classification The Group classifies its financial assets in the category loans and receivables. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the end of the reporting period. These are classified as non-current assets. The Group’s loans and receivables comprise ‘trade accounts receivable’, ‘other accounts receivable’ and ‘cash and cash equivalents and cash subject to restriction’ in the consolidated statement of financial position (Notes 14, 13 and 15, respectively).

Recognition, derecognition and measurement Loans and receivables are initially recognized at fair value plus transaction costs and subsequently carried at amortized cost using the effective interest method. Loans and receivable are derecognized when the rights to receive cash flows from the assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership.

2.11 Impairment of financial assets

The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization, and where observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.

The amount of the loss of loans and receivables category is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognized in the consolidated income statement. If a loan or held-to-maturity investment has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. As a practical expedient, the Group may measure impairment on the basis of an instrument’s fair value using an observable market price.

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 recognized (such as an improvement in the debtor’s credit rating), the reversal of the previously recognized impairment loss is recognized in the consolidated statement of comprehensive income.

2.12 Biological assets

Produce grown on fruit bearer plants and living animals are biological assets.

Biological assets are growing produce on all bearer plants and living animals managed by the Group for sale. These are growing asparagus, avocados, mangoes, grapes, tangerines, blueberries and shrimps which are to be harvested as agricultural produce.

Biological assets are measured at fair value less costs to sell on initial recognition and at each statement of financial position date. The fair value of biological assets excludes the land and the bearer plant upon which the biological assets are harvested.

Costs to sell include all incremental costs directly attributable to the sale of the biological assets, excluding finance costs and income taxes. The fair value of a biological asset in its present location and condition is determined based on the present value of expected net cash flows from the biological asset discounted at a current market-determined pre-tax rate.

In determining the fair value of a biological asset based on the expected net discounted cash flows, the following factors have been taken into account:

i) The expected future sales price;ii) the cost expected to arise through the growth of the asset;iii) a pre-tax discount rate; andiv) volume produced.

The application of factors mentioned above requires the use of estimates and judgments by Management (Note 4).Expected future sale prices for all biological assets are determined by reference to observable data in the relevant market of the harvested produce. Costs expected to arise through the growth of the biological assets are estimated based on historical data.



The gain or loss arising from initial recognition of a biological asset at fair value less costs to sell and from a change in fair value less costs to sell of a biological asset is recognized in the consolidated statement of comprehensive income in the period in which they arise.

Agricultural produce harvested from the Group’s biological assets is initially measured at its fair value less costs to sell at the point of harvest. The fair value of agricultural produce is determined based on market prices. The cost of the agricultural produce included in inventories for subsequent sale is deemed to be the fair value of produce less costs to sell at the point of harvest in the local market.

2.13 Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the average cost method.

The cost of biological products is determined as the fair value less estimated point of sale costs at the time of harvest (Note 2.12).Net realizable value is the estimated sale price in the ordinary course of business, less estimated cost to place inventories in selling conditions and commercialization and distributions expenses. The cost of inventories may not be recovered if: i) the inventories are damaged or become wholly or partially obsolete; or ii) their selling prices decline or the estimated necessary costs to be incurred to produce their sale increase. In such circumstances, inventories are written-off to their net realizable value. The Group determines the provision for obsolescence as follows:

Fresh and frozen products 100% of cost at expirationPreserved products 50% of cost after 2 years

The provision for obsolescence is estimated on an item by item basis or for groups of items with similar characteristics (with same crop, market and similar other characteristics).

2.14 Trade accounts receivable

Trade accounts receivable are amounts due from customers for merchandise sold in the ordinary course of business. If collection is expected in one year or less, they are classified as current assets. If not, they are presented as non-current assets.

Trade accounts receivable are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.

A provision for impairment of trade receivables is estimated when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the invoice. The amount of the provision is the difference between the carrying amount and the present value of the recoverable amounts and this difference is recognized in the consolidated statement of comprehensive income in “other expenses”. Accounts receivable provided for are written-off when they are assessed as uncollectible.

2.15 Cash and cash equivalents

In the consolidated statement of cash flows, cash and cash equivalents includes cash at banks and in hand, deposits held at call with banks, short-term, highly liquid investments funds, that are readily convertible to known amounts of cash and which are

subject to an insignificant risk of changes in value with original maturities of three months or less. Cash and cash equivalents excludes cash subject to restriction, which are subject to regulatory restrictions and therefore are not available for general use by the other entities within the Group.

2.16 Share capital

Ordinary shares are classified as equity. Any excess received over the par value of issued shares is classified as share premium.

Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.

Where any Group company purchases the Company’s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs is deducted from equity attributable to the Company’s equity holders until the shares are cancelled or reissued. Where such shares are subsequently sold, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

2.17 Trade accounts payable

Trade accounts payable are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.

Trade accounts payable are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.

2.18 Bank loans and long-term debt

Bank loans and long-term debt are recognized initially at fair value, net of transaction costs incurred. Bank loans and long-term debt are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statement of comprehensive income over the period of the borrowing using the effective interest method.

Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down.

Long-term debt are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the consolidated statement of financial position date.

Bank loans for working capital uses are classified as current liabilities as the settlement of these liabilities are in the short-term.



2.19 Leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease.

The Group leases certain property, plant and equipment. Leases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the lease’s commencement at the lower of the fair value of the leased property and the present value of the minimum lease payments.

Each lease payment is allocated between the liability and finance charges. The corresponding rental obligations, net of finance charges, are included in long-term debt. The interest element of the finance cost is charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases are depreciated over the shorter of the useful life of the asset and the lease term.

When assets are leased out under a finance lease, the present value of the lease payments is recognized as a receivable. The difference between the gross receivable and the present value of the receivable is recognized as unearned finance income. The unearned finance income is recognized as income over the term of the lease on a straight-line basis.

2.20 Current and deferred income tax

Income tax expense for the period comprises current and deferred income tax. Income tax is recognized in the consolidated statement of comprehensive income, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case the income tax is also recognized in other comprehensive income or directly in equity, respectively.

The current income tax charge is calculated on the basis of the tax laws enacted at the consolidated statement of financial position date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not accounted for when it arises from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted at the date of the consolidated statement of financial position and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized.

Deferred income tax liabilities are provided on temporary differences arising on investments in associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Generally the Group is unable to control the reversal of the temporary difference for associates. Only where there is an agreement in place that gives the Group the ability to control the reversal of the temporary difference it is not recognized.

Deferred income tax assets are recognized on deductible temporary differences, only to the extent that is it is probable the temporary difference will reverse in the future and there is sufficient taxable profit available against which the temporary difference can be utilised.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

The Group did not recognize any deferred income tax liability for unremitted earnings from Peruvian subsidiaries to Cyprus companies, since there is no legal obligation to pay income tax to the tax authorities of Cyprus and Peru until dividends are distributed.

2.21 provisions

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures at fair value expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognized as interest expense.

2.22 Employee benefits

Workers’ profit sharing and other employee benefits In accordance with Peruvian Legislation, Peruvian entities of the Group are required to provide for workers’ profit sharing equivalent up to 10% (5% legal and up to 5% voluntary) of taxable income in Peru of each year. This amount is charged to the consolidated statement of comprehensive income (distributed among cost of sales, administrative expenses and selling expenses, as appropriate). This charge is a deductible expense for income tax purposes. Statutory bonuses -

The Peruvian Group Companies recognizes the expense in bonuses and the related liabilities under Peruvian legal tax regulations. Statutory bonuses consist of two (2) annual one-month salaries paid in July and December every year.



Employees’ severance indemnities Employees’ severance indemnities of Peruvian Group Companies personnel comprise indemnities determined under Peruvian laws and regulations and which has to be credited to bank accounts selected by employees in May and November every year. The annual employees’ severance indemnities equal one-month salary. The Group does not have obligations of additional payments once these annual deposits, to which each worker is entitled to, are made.

2.23 Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable, and represents amounts receivable for goods supplied, stated net of discounts, returns and value added taxes. The Group recognizes revenue when the amount of revenue can be reliably measured; when it is probable that future economic benefits will flow to the entity; and when specific criteria have been met for each of the group’s activities, as described below. The Group bases its estimate of return on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

The following specific recognition criteria must also be met before revenue is recognized:

a)Salesofgoods• TheGroup’sagro-industrialactivitiescomprisetheselling(exports)offresh,frozenandpreservedagriculturalproducts.

These sales are measured at the fair value of the consideration received or receivable, net of returns and allowances, trade and other discounts, and sales taxes, as applicable. Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, and there is no continuing management involvement with the goods. Transfers of risks and rewards vary depending on the individual terms of the contract of sale, so revenue recognition will be dependent on them, either on delivery or on dispatch.

Frozen and preserved exports are invoiced at a fixed price while fresh exports on a preliminary liquidation basis (provisionally priced). In the case of sales invoiced in a preliminary liquidation basis, the value of the provisionally priced fresh products is re-measured using Management’s best-estimated price that is expected to be settled with the customer. The selling price of fresh products can be measured reliably as these products are actively traded on international markets.

• Domesticsales.Revenueisrecognizedondelivery.

b)InterestincomeInterest income is recognized using the effective interest method.

2.24 Costs and expenses

Cost of sales corresponds to the cost of production of goods sold, and is recorded simultaneously with the recognition of revenue. Other costs and expenses are recognized on an accrual basis and recorded in the periods to which they are related. 2.25 Contingent liabilities and assets

Contingent liabilities are not recognized in the financial statements but disclosed in notes to the financial statements unless their occurrence is estimated as remote. Contingent assets are not recognized in the financial statements, unless virtually certain, and are disclosed only if their realization is assessed as probable.

2.26 Custom duties refunds

Custom duties refunds (drawback) correspond to a tax benefit granted by the Peruvian Government by means of which the Group is reimbursed for the custom duties paid on the importation of goods that are a component of the FOB value of exported products. The refund of these custom duties is credited to the cost of sales in the consolidated statement of comprehensive income when the Group has the right to claim the refund (when the export is completed).

2.27 non-controlling interest

The Group recognises non-controlling interests in an acquired entity either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets. This decision is made on an acquisition-by-acquisition basis. For its non-controlling interests, the Group elected to recognise the non-controlling interests at its proportionate share of the acquired net identifiable assets. See Note 2.3 for the Group’s accounting policies for business combinations.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of financial position.

2.28 Deferred offering costs

Deferred offering costs are capitalized and consist of direct and incremental fees and expenses incurred in connection with the anticipated sale of the Company’s equity securities including the legal, accounting, printing and other equity securities offering related costs. In the case that the equity securities offering is completed, these deferred offering costs will be reclassified to equity and recorded against the proceeds from the offering. The outstanding balance of deferred offering costs as of December 31, 2017 totaled $3,780, which are included in other non-current assets in the consolidated statement of financial position. As of December 31, 2016 the Company had not incurred such costs. In the case that the equity securities offering is considered abandoned or the equity instruments are not subsequently issued, the transaction costs should be recognized as an expense.

3. FInAnCIAL RISK mAnAGEmEnT

3.1 Financial risk factors

The Group’s activities expose it to risks arising from climatic changes and financing risks (including foreign exchange risk, fair value interest rate risk, cash flows interest rate risk and price risk), credit risk and liquidity risk.

The Group’s geographic spread of agricultural lands allows a high degree of mitigation against adverse climatic conditions such as droughts and temperature changes as result of climatic events. The Group has strong environmental policies and procedures in place to mitigate climatic risk.

The seasonal nature of the agricultural products of the Group requires a high level of cash flow in the second half of the year. The Group actively manages the working capital requirements and has sufficient credit facilities to meet the cash flow requirements.



a) Market riski) Foreign exchange risk

The Group’s entities operate locally and internationally and are exposed to foreign exchange risk arising from other currency exposures, primarily with respect to the Sol and Euros. The Group’s entities buy and sell its products and services and obtain funding for its working capital and investments mainly in its functional currency. Some costs are incurred in Sol and some sales are made in Euros. The Group does not carry out a hedging strategy with derivative financial instruments to cover its exchange risk.

As of 31 December 2017 and 2016, the Group had the following assets and liabilities in Sol (PEN) and Euros (€) (expressed in USD000):

2017 Total 2016 Total pEn € USD pEn € USD

Assets Cash and cash equivalents 3,403 1,585 4,988 1,213 2,156 3,369Trade and other accounts receivable 6,385 16,406 22,791 6,986 11,467 18,453 9,788 17,991 27,779 8,199) 13,623 21,822

Liabilities Accounts payable 26,468 1,539 28,007 14,007) 1,156 15,163(Liability) asset position, net (16,680) 16,452 (228) (5,808) 12,467 6,659

The remaining balance of cash and cash equivalents and trade and other accounts receivable amounting to USD 67,311 relates to balances denominated in United States Dollar (31 December 2016: USD114,957).

The remaining balance of liabilities, except for the deferred income tax, amounting to USD 226,438 relates to balances denominated principally in United States Dollar (31 December 2016: USD305,804).

The following table demonstrates the sensitivity to a reasonable possible change in Sol exchange rate and Euro exchange rate for twelve months against the US Dollar, with all other variables held constant, on the Group’s pre-tax profit:

Increase/ decrease Effect on profit Increase/ decrease Effect on profit pEn rate before tax € rate before tax

2017 +2% 333 +2% 329 -2% (333) -2% (329)2016 +8% 465 +8% 997 -8% (465) -8% (997)2015 +8% 190 +8% 1,298

-8% (190) -8% (1,298)

ii) Fair value interest rate risk and cash flows interest rate risk

Changes in interest rates impact primarily loans and long-term borrowings by changing either their fair value (fixed rate debt) or their future cash flows (variable rate debt).

Since all interest bearing loans and borrowings have a fixed interest rate, the Group is not exposed to cash flow interest rate risk.

Fixed rate borrowings of the Group are negotiated at market rates on a timely basis, in order to reduce the Group´s exposure to fair value interest rate risk. However, the Group is exposed to interest rate risk on fair value of its borrowings. The Group assumes this risk; therefore it does not carry out a hedging strategy with derivative financial instruments to cover its fair value interest rate risk. The fair value of borrowings is disclosed in Note 19.

iii) Price risk

The Group is exposed to the risk of price changes of fresh products. The Group assumes this risk and does not use hedge instruments to manage its price risks.

b) Credit risk Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract leading to a financial loss. The Group is exposed to credit risk on trade and other receivables and deposits in banks.

The maximum exposure to credit risk is the carrying amount of accounts receivable and its deposits in financial institutions (Note 14 and 15) as shown on the consolidated statement of financial position. Sales transactions are carried out with a number of different counterparties, which mitigates credit risk concentration. The Group seeks for external assistance to evaluate the rating of the possible new customer. With this information, a credit limit for the customer is set. Management makes efforts in building long-lasting relationships with customers (over 6 months). As of 31 December 2017 and 2016, no credit limits were exceeded during the reporting period, and Management does not expect significant losses from non-performance by these counterparties.

The accounts receivable from a single customer represent approximately 10.2 percent of the balance as of 31 December 2017 (18.0 percent as of 31 December 2016). All new transactions with this customer are being executed with letters of credit to mitigate credit risk exposure. These letters work as a guarantee for the Company in case of financial complications of the customer to assume its payment obligations.

In addition, the Group has a multimarket credit insurance coverage over the exports of fresh and preserved products in an aggregate amount up to USD 212,634 at 31 December 2017 (USD231,000 in 2016).

c) Liquidity riskThe Group has sufficient credit capacity to have access to credit lines with top-ranked financial institutions (institutions with no history of default and prestigious locally) under market terms. In addition, the Group develops new bank relationships in order to have adequate funding available at all times. However, with the current global political uncertainty there is a risk that banks may revise the terms of the lines of credit (short-term financing which might not be able to be refinanced). The Group assumes this risk.



On 2 February 2017, the Group made the maturity payment of its 9.875% Senior Secured Notes due in 2017 for USD46,947 and significant decrease of bank loans as a consequence of the higher liquidity generated in 2017 from the increase in the Company’s financial performance. As of 31 December 2017, lines of credit available but not used amount to USD42,755 (USD12,700 as of 31 December 2016).

The table below analyses the Group’s non-derivative financial liabilities and allocates them into relevant maturity groupings based on the remaining period at the date of the statement of financial position to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months (with the exception of borrowings) equal their carrying balances as the impact of discounting is not significant.

Between 1 Between 2 Within 1 year and 2 years and 6 years Total USD USD USD USD

31 December 2017Long - term debt 28,481 19,917 169,555 217,953Trade accounts payable 39,397 - - 39,397Other accounts payable (Note 10) 882 - - 882Bank loans 19,358 - - 19,358 88,118 19,917 169,555 277,590

31 December 2016 Long - term debt 72,027 21,584 189,466 283,077Trade accounts payable 37,698 - - 37,698Other accounts payable (Note 10) 1,113 - - 1,113Bank loans 40,980 - - 40,980 151,818 21,584 189,466 362,868

(*) Long - term debt and bank loans include interest to be accrued.

3.2 Capital risk management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

Consistent with others in the industry the Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including ‘current and non-current borrowings’ as shown in the consolidated statement of financial position), less cash and cash equivalents. Total capital is calculated as equity as shown in the consolidated statement of financial position plus net debt.

The Group’s strategy was to maintain the gearing ratio not to exceed 0.5. The gearing ratios were as follows:

At 31 December 2017 2016 USD USD

Bank loans (Note 23) 19,264 40,850Long - term debt (Note 19) 162,341 218,191Less cash and cash equivalents (Note 15) (34,271) (84,700)Net debt (a) 147,334 174,341

Total equity as per statement of financial position (b) 314,446 260,098Total capital as defined by management (a) + (b) 461,780 434,439

Gearing ratio (a) / (a) + (b) 0.32 0.40

At 2017 the decrease in the gearing ratio compared to 31 December 2016 is mainly due to the net effect of the payments of financial obligations and the increase in total equity due to profits for the year.

3.3 Fair value estimation

The carrying amount of trade accounts receivable and trade accounts payable are similar to their fair values, as the impact of discounting is not significant. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments. The information used by the Group to estimate the fair value is categorized in following levels:

- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).- Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is,

as prices) or indirectly (that is, derived from prices) (Level 2).- Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).

See Note 9 for disclosures of the measurement of biological assets.

As of 31 December 2017 and 2016, the Group does not maintain any other financial assets or liabilities measured at fair value since they are measured at amortized cost.



4. CRITICAL ACCoUnTInG ESTImATES AnD JUDGmEnTS

4.1 Critical accounting estimates and assumptions

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical accounting estimates made by management are continually evaluated and are based on historical experience and other factors, including expectation of future foreseeable events that are believed to be reasonable under the circumstances. Management performs sensitivity analysis as a way of determining the potential impact of the changes of estimates on the fair value of biological assets.

The most significant use of judgment is the estimation of the fair value of biological assets, including growing produce (asparagus, avocados, mangos, grapes and blueberries) and shrimps. The inputs to the valuation models are derived from observable market data where possible, but where observable market data are not available, judgment is required to establish fair values. The valuation of biological assets is described in more detail in Note 9.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Estimation of fair value of biological assets - notes 2.12 and 9. To assess the fair value of biological assets the Group takes into account the criteria set out in IAS 41 and IFRS 13, which requires that a biological asset should be measured at its fair value. The fair value indicated is determined by using the present value of net cash flows expected to be obtained from the assets. Determining the fair value of an asset requires the application of judgment to decide on the way in which biological asset will be recovered and assumptions to be used in its determination.

In this regard, in determining fair value, the Management uses estimates for plantation volumes, sales prices, weather conditions on expected yields, discount rate and cost per hectare. The changes in assumptions or estimates used in the calculations could influence the outcome thereof.

The model inputs involve estimates that are calculated for every growing produce to be harvested. The fair value has been determined in US dollars and the discounted net cash flows included in estimates of management consider a risk adjusted discount rate affected by the specific industry and market risks; therefore it represents the rate that a market participant would use. The Group uses a short-term discount rate for biological assets.

The Group carries out a sensitivity analysis of the biological assets taking into consideration volatility levels that would give rise to a material effect in profit before tax. The variables used in the determination of the fair values of the biological assets that may be subject to variance are: i) the forecast of revenue and costs, and ii) determination of the discount rate.

With respect to the revenue and costs forecasts, it should be noted that it has been determined based on the harvest and investment forecast for the next campaign, which Management considers their changes of estimates depend on quality

factors of the produce. These quality factors are monitored by Management through a detailed ongoing follow-up. With respect to the discount rate a sensitivity analysis has been performed by increasing/decreasing it by 5% as follows:

Increase/ decrease rate Effect on profit before tax USD

2017 +5% ( 847) -5% 8472016 +5% ( 320) -5% 3202015 +5% ( 244)

-5% 244

Sensitivity analysis for all other variables is included in Note 9.

Review of long lived assets carrying amounts and impairment charges - notes 6 and 8.The Group assesses annually whether a provision for impairment is required to be made under the accounting policy described in Note 2. This determination requires Management’s judgment in analyzing evidence of impairment as well as in determining value in use. For the latter, judgment is required in preparing the expected future cash flows, including forecasts of the Group’s future operation, forecasts of economic factors that may impact revenue and costs as well as in determining the discount rate to be applied to those cash flows.

Estimates used in determining the recoverable amount of avocado’s CGU relates to Management’s consideration of prior-years events in the market and operations, which affected production and prices of avocado negatively, resulted in a change in the Group’s strategy. These considerations were relevant to estimate the expected future cash flows and have been factored into the coming years. In 2016 an impairment was recognized in the goodwill (Note 8) for the change in the estimations of Management.

Estimation of income tax - notes 2.20, 17 and 33.Determination of the tax obligations and expenses requires interpretations of the applicable tax laws and regulations. The Group receives advice from its professional legal tax counsel before making any decision on tax matters. Even though Management considers its estimates are prudent and appropriate, differences of interpretation may arise with Tax Authorities that may require future tax adjustments. The Group recognizes liabilities for situations observed in preliminary tax audits based on estimates as to whether the payment of additional taxes is required. When the final tax result of these situations is different from the amounts that were initially recorded, the differences are charged to the current and deferred income tax assets and liabilities in the period in which this fact is determined. The Group performed sensitivity analysis on the possibility of inappropriate interpretations of tax law. In this it has assessed the probability of change of estimates to quantify its impact on the financial statements.



The following shows sales from continuing operations based on the country/area in which the customer is located.

2017 2016 2015 USD USD USD

Europe 137,706 98,647 113,692USA 153,206 130,373 84,674Asia 42,185 17,208 14,890Canada 13,736 7,544 2,522South America 17,544 20,631 20,144Other 4,063 2,288 715 368,440 276,691 236,637

The following table shows revenues, gross profit and profit (loss) after adjustment for biological assets by segment, from continuing operations, excluding the unallocated revenues and costs of products not reviewed separately by the CODM:

Blueberries Avocados Seafoods others Total USD USD USD USD USD 2017 Revenues 121,064 122,042 82,595 37,561 363,262Cost of sales (56,516) (55,647) (68,002) (33,079) (213,244)Gross profit before adjustment for biological assets 64,548 66,395 14,593 4,482 150,018Gain arising from changesin fair value of biological assets 1,617 24,601 950 629 27,797Gross profit after adjustment for biological assets by segment 66,165 90,996 15,543 5,111 177,815

2016 Revenues 100,202 53,413 70,173) 47,454 271,242Cost of sales (34,371) (39,745) (61,761) (38,473) (174,350)Gross profit before (Loss) gain arising from changesin fair value of biological assets (1,090) 7,207 200 1,307 7,624Gross profit after adjustment for biological assets by segment 64,741 20,875 8,612 10,288 104,516

2015 Revenues 48,071 53,678 57,156 68,433 227,338Cost of sales (14,469) (37,269) (56,279) (58,910) (166,927)Gross profit before adjustment for biological assets 33,624 16,409 877 9,523 60,411Gain (loss) arising from changesin fair value of biological assets 32,021 (8,740) 310 (4,854) 18,737Gross profit after adjustment for biological assets by segment 65,645) 7,669 1,187 4,669 79,148

Where the actual final outcome (on the judgment areas) differs by 10% from management’s estimates, the Group would need to:

Effect on income tax 2017 2016 USD USD

Decrease the income tax liability ( 302) ( 220)Increase the income tax liability 302) 220)

4.2 Critical judgments in applying the Group´s accounting policies

Determination of functional currency – (note 2.5).Management has determined the functional currency of the Group’s principal operating entities to be the US Dollar. These entities sell their products in international markets to customers in a number of countries and sales are influenced by a number of currencies. Most operating costs are incurred in Peru but many are invoiced in US Dollars and the price of some raw materials and supplies are influenced by the US Dollar. The borrowings and cash balances of these entities are held in US Dollars. Management has used its judgment to determine the functional currency, taking into account the secondary factors and concluded that the currency that most faithfully represents the economic environment and conditions of these entities is the United States Dollar.

Bearer plants (note 2.6 and 6).Critical judgement is applied when Management establishes when bearer plants are available for use, which is the end of the permanent investment period (point of maturity), and they are transferred to Bearer plants (mature) and depreciation commences. The permanent investment period starts one day after the transplant to the plot until the first harvest.

5. SEGmEnT InFoRmATIon

In 2017, the Group changed its organizational structure and the financial and other information provided to the Group’s Chief Operating Decision-Maker The Group’s Chief Operating Decision-Maker uses product information to manage resources and to identify those production lines, which may eventually cease to generate value for the Group, and based on that information, decisions are made to develop other production lines. As a result of the changes, the Group has four reportable segments namely blueberries, avocados, seafoods and others. The segment of others includes those products relevant to the business whose sales occur in months and seasons in which blueberries, avocados and shrimps generally do not export products, due to seasonality of the harvest. The segment information in these financial statements have been retrospectively restated to reflect the changes in the reportable segments made in 2017.

The four reportable operating segments are engaged in producing, processing and commercializing a number of agricultural products, presented in fresh and frozen, which are mainly exported to European markets and the United States of America.

All production and related assets are in Peru.



Following is a reconciliation of revenue from continuing operations of reportable segments with the total revenue from continuing operations of the Group:

2017 2016 2015 USD USD USD

Total revenue of reportable segments 363,262 271,242 227,338Unallocated revenue (i) 5,178 5,449 9,299Total revenue of the Group 368,440 276,691 236,637

(i) Unallocated items correspond to minor activities not reported to the chief operating decision maker, such as packaging and other minor services provided by the Company.

Following is a reconciliation of profit after adjustment for biological assets by segments with the profit after adjustment for biological assets from continuing operations:

2017 2016 2015 USD USD USD Profit after adjustment for biological assets by segments 177,815 104,516 79,148Unallocated revenue 5,178 5,449 9,299Unallocated cost of sales (5,851) (5,354) (11,391)Profit after adjustment for biological assets 177,142 104,611 77,056

Following is a reconciliation of total assets by segments with total assets:

31 December 2017 2016 USD USD

Total assets by segments 476,943 447,034Unallocated inventories 18,346 13,883Unallocated property, plant and equipment 12,625 10,564Unallocated intangible assets 4,812 3,599Investment in associate 2,054 2,764Deferred income tax 420 2,625Assets classified as held for sale - 2,334Prepaid expenses 806 988Other accounts receivable 14,191 9,280Current tax assets - 6,750Trade accounts receivable 49,123 42,799Cash subject to restriction 1,285 - Cash and cash equivalents 34,271 84,700Total assets 614,876 627,320

The following table shows assets by segment, excluding unallocated assets:

Blueberries Avocados Seafoods others Total USD USD USD USD USD

31 December 2017 Biological assets 40,717 38,596 8,888 5,912 94,113Goodwill - - 95 - 95Finished products 10,436 221 5,091 3,246 18,994Property, plant and equipment 100,037 128,838 71,715 63,151 363,741Total assets by segment 151,190 167,655 85,789 72,309 476,943Area (Has) 1,862 2,655 988 1,086 6,591Impairment of assets - - - - - Write-off of bearer plants - 7,781 - 6,114 13,895 31 December 2016 Biological assets 39,209 14,636 9,005 5,213 68,063Goodwill - - 95 - 95Finished products 7,139 562 5,210 5,774 18,685Property, plant and equipment 87,612 144,284 62,722 65,573 360,191Total assets by segment 133,960 159,482 77,032 76,560 447,034Area (Has) 1,460 2,653 1,003 1,006 6,122Impairment of assets - 10,137 - 836 10,973Write-off of bearer plants - - - - -

At 31 December 2017, no transactions between reportable segments are carried out. At 31 December 2016 there has been transfers of land, machinery and equipment from discontinued operations to blueberries segment of USD141.

Disclosure of segment profit measurement is made using the gross profit and profit and loss after adjustment for biological assets, which is used in assessing the performance of each segment.

Administrative expenses, selling expenses, other income and other expenses are not considered as expenses and income of the segments, and therefore are not allocated to any segment.

Unallocated revenues and cost of sales correspond to minor products not reported to the CODM. Total assets presented by segment include the asset information provided to the CODM, namely biological assets, goodwill, finished products inventory and property, plant and equipment.



6. pRopERTY, pLAnT AnD EqUIpmEnT

Building Furniture, and other plant and fixtures and Bearer plants Bearer plants Construction Land construction equipment equipment Vehicles (mature) (immature) in progress Total USD USD USD USD USD USD USD USD USD

Year ended 31 December 2015 (*)Opening net book amount 60,316) 57,572 42,646 10,115 1,603) 215,451) 2,007 21,850 411,560Additions 3,708 - 7,658 2,637 104 - 10,147 5,887 30,141Transfers of bearer plants - - - - - 9,676 (9,676) - -Transfers of other assets - 11,633 - - - - 10,734 (22,367) -Adjustments - (22) (302) (30) 42 - - - 292Disposals (323) (1,140) (80) (93) - - - - (1,636)Write off - (1,871) - - - (376) - 587 (2,834)Transferred to disposal group classified as held for sale (3,567) - (1,751) - - - - - (5,318)Impairment charge - - (619) - - (6,216) - - (6,835)Exchanges differences (1,460) (1,486) (700) (233) 24 - - (194) (4,049)Depreciation charge - (3,152) (6,946) (1,682) (360) (27,290) - - (39,430)Closing net book amount 58,674 62,674) 39,450 10,727 1,320 191,245 13,212 4,589 381,891

At 31 December 2015 (*)Cost 58,674 82,317 78,788 19,035 4,496 224,751 13,212 4,589 485,862Accumulated impairment - - (619) - - (6,216) - - (6,835)Accumulated depreciation - (19,643) (38,719) (8,308) (3,176) (27,290) - - (97,136)Net book amount 58,674 62,674 39,450 10,727 1,320 191,245 13,212 4,589 381,891

Year ended 31 December 2016 (*)Opening net book amount 58,674 62,674 39,450 10,727 1,320 191,245 13,212 4,589 381,891Additions - 4 2,590 1,040 153 - 6,675 18,048 28,510Transfers of bearer plants - - - - - 16,273 (16,273) - -Transfers of other assets 332 3,783 - 4,100 - - - (8,215) - Adjustments - - - - 10 987 - - 997Disposals (344) - - (495) - - - - (839)Write off - (3,514) (526) - - (3,212) - (54) (7,306)Transferred to disposal group classified as held for sale - - (2,164) - - - - - (2,164)Impairment charge - - (617) - - (1,884) - - (2,501)Acquisition of subsidiaries 1,425 2,255 2,825 29 7 - - 10 6,551Exchanges differences 337 480 827 312 27 - - 1,350 3,333Depreciation charge - (3,779) (7,301) (1,706) (230) (24,701) - - (37,717)Closing net book amount 60,424 61,903 35,084 14,007 1,287 178,708 3,614 15,728 370,755

The following table shows revenues and gross profit by customer from continuing operations:

major 10 major 11 to 20 major 21 to 28 other customers customers customers customers Total USD USD USD USD USD

Year 2017Revenues 154,334 50,374 27,156 136,576 368,440Gross profit 73,722 24,781 11,184 39,658 149,345



Gross profit by type of produce from continuing operations for the year ended 31 December is as follows:

2017 2016 2015 Cost of Gross Cost of Gross Cost of Gross Revenue sales profit Revenue sales profit Revenue sales profit USD USD USD USD USD USD USD USD USD

Fresh 262,531 (126,677) 135,854) 179,611 (87,559) 92,052) 139,123 (73,757) 65,366)Preserved 109 (178) (69) 2,620 (3,328) (708) 18,363 (20,215) (1,852)Frozen 101,640 (87,182) (14,458) 87,793 (82,731) 5,062) 74,775 (75,508) (733)Others 4,160 (5,058) (898) 6,667 (6,086) 581) 4,376 (8,838) (4,462) 368,440 (219,095) 149,345) 276,691 (179,704) 96,987) 236,637 (178,318) 58,319)



For the year ended 31 December 2017 loss on write-off of property, plant and equipment (not included bearer plants) amounts to USD327 (loss of USD4,094 as of 31 December 2016). For the year ended 31 December 2016 loss on disposals of property, plant and equipment amounts to USD746 (Note 30).

a) The carrying amount of property, plant and equipment acquired under finance leases is as follows:


Building and other constructions 2,405 3,679 Plant and equipment 3,746 5,049 Furniture, fixtures and equipment 558 747 Vehicles 27 127 6,736 9,602

The payments of these obligations are secured with the assets acquired under the lease contracts.

b) As of 31 December 2017 and 2016 property, plant and equipment are insured up to a value of USD80,000. Management believes that this policy is consistent with international practices in the industry and takes into account the risk of eventual losses due to the nature of the assets.

c) The total depreciation for the year 2017 includes USD 1,939 (USD1,828 in 2016 and USD1,450 in 2015) that corresponds to the depreciation of the fair value of acquired assets in business combinations.

d) The allocation of the depreciation charge is as follows:

2017 2016 2015 USD USD USD

Cost of sales (Note 26) 11,882 9,816 6,526 Depreciation of continued bearer plant (Note 26) 16,366 19,578 17,761 Depreciation of discontinued bearer plant (Note 36) - 5,123 9,529 Administrative expenses (Note 28) 700 633 881 Depreciation of discontinued equipment (Note 36) - 2,567 4,733 28,948 37,717 39,430

e) Bank borrowings are secured by fixed assets with a total amount of USD65,467 in 2017 (USD77,752 in 2016).

Bearer plant During 2017 and 2016, the Company prepared 6,591 and 6,122 hectares land for cultivation, respectively (6,612 hectares in 2015); and during 2017 planted 484 hectares, primarily in blueberry ( write off from 769 hectares during 2016 and write off 333 hectares during 2015).

Building Furniture, and other plant and fixtures and Bearer plants Bearer plants Construction Land construction equipment equipment Vehicles (mature) (immature) in progress Total USD USD USD USD USD USD USD USD USD

At 31 December 2016 (*)Cost 60,424 85,948 89,210 19,726 4,388 238,799 3,614 15,728 517,837Accumulated impairment - - (1,236) - - (8,100) - - (9,336)Accumulated depreciation - (24,045) (52,890) (5,719) (3,101) (51,991) - - (137,746)Net book amount 60,424 61,903 35,084 14,007 1,287 178,708 3,614 15,728 370,755

Year ended 31 December 2017Opening net book amount 60,424 61,903 35,084 14,007 1,287 178,708 3,614 15,728 370,755Additions 414 2,336 5,806 1,096 331 - 11,671 25,882 47,536Transfers of bearer plants - - - - - 12,047 (12,047) - - Transfers of other assets - 5,116 4,056 1,334 142 - 9,870 (20,518) - Write off - - (247) (65) (15) (13,895) - - (14,222)Exchanges differences 417 441 231 39 2 - - 115 1,245Depreciation charge - (3,911) (6,939) (1,473) (259) (16,366) - - (28,948)Closing net book amount 61,255 65,885 37,991 14,938 1,488 160,494 13,108 21,207 376,366

At 31 December 2017Cost 61,255 94,163 98,291 22,086 4,777 230,561 13,108 21,207 545,448Accumulated impairment - - (1,236) - - (8,100) - - (9,336)Accumulated depreciation - (28,278) (59,064) (7,148) (3,289) (61,967) - - (159,746)Net book amount 61,255 65,885 37,991 14,938 1,488 160,494 13,108 21,207 376,366

(*) Certain revisions have been made to correct the movements between categories of property, plant and equipment for the years ended December 31, 2016 and 2015. There were no changes to the opening or ending balances for 2015 or any impact on depreciation and amortization for both years. The Company has evaluated the effects of these misclassifications within the notes to the consolidated financial statements and concluded that none are material.



The summarized financial information at 100% for this associated company as follows:

At 31 December 2017 2016 2015 USD USD USD

Total assets 9,341 9,641 8,460Total liabilities 3,474 2,732 3,370Total revenue 4,731 7,086 6,125Profit for the year 455 2,560 1,799Total equity 5,867 6,910 5,090

8. InTAnGIBLE ASSETS

The movement of the cost and the accumulated amortization of intangibles assets is as follows:

Goodwill Software other Total USD USD USD USD

Year ended 31 December 2015Opening net book amount 11,950 2,478 100 14,528Additions - 1,683 - 1,683Impairment charge (3,478) - - (3,478)Amortization charge - (548) (100) (648)Closing net book amount 8,472 3,613 - 12,085 As at 31 December 2015Cost 11,950 6,698 396 19,044Accumulated impairment (3,478) - - (3,478)Accumulated amortization - (3,085) (396) (3,481)Net book amount 8,472 3,613 - 12,085

Year ended 31 December 2016Opening net book amount 8,472 3,613 - 12,085Additions 95 712 - 807Exchange differences - (3) - (3)Impairment charge (8,472) - - (8,472)Amortization charge - (723) - (723)Closing net book amount 95 3,599 - 3,694

The depreciation charge for the bearer plant in 2017 amounts to USD 16,366 (USD24,701 for 2016 and USD27,290 for 2015). The decrease in the depreciation charge is mainly explained by the write-offs of avocado bearer plants in 2017.

Bearer plant additions in 2017 are related to investments in blueberry, tangerine and avocado (blueberry and grapes in 2016 and 2015). Write-offs in 2017 are related mainly to avocado and grape bearer plants, based on decision by management to replace plantations in order to increase yields in future harvests. Write-offs in 2016 correspond to asparagus for discontinued operations, and in 2015 correspond to write-off of tangerine and asparagus.

The allocation of the write off bearer plant is as follow:

2017 2016 2015 USD USD USD

Write-off continued bearer plant (Note 26) 13,895 - 330Write-off discontinued bearer plant (Note 36) - 3,212 46 13,895 3,212 376

7. InVESTmEnT In ASSoCIATE

% share in % share in % share in 2017 the capital 2016 the capital 2015 the capital USD % USD USD %

Empacadora de Frutos Tropicales S.A.C 2,054 35.00 2,764 40.00 2,036 40.00

On 18 July 2017 the Company reduced its participation to 35.00% in Empacadora de Frutos through a share exchange with Marinazul.

On 30 September 2006 the Company participated in the incorporation of Empacadora de Frutos Tropicales S.A.C (Empafrut), a Peruvian company engaged in the processing and commercialization of fresh fruit products, mainly mangos. The cost of the investment amounted to USD600. Empafrut is not a listed entity.

The Group’s share in the 2017 loss of this company amounted to USD390 (income of USD728 in 2016 and USD253 in 2015) which are shown separately in the consolidated statement of comprehensive income.



Goodwill Software other Total USD USD USD USD

As at 31 December 2016Cost 12,045 7,407 396 19,848Accumulated impairment (11,950) - - (11,950)Accumulated amortization - (3,808) (396) (4,204)Net book amount 95 3,599 - 3,694

Year ended 31 December 2017Opening net book amount 95 3,599 - 3,694Additions - 2,005 - 2,005Exchange differences - 31 - 31Amortization charge - (823) - (823)Closing net book amount 95 4,812 - 4,907

As at 31 December 2017Cost 12,045 9,443 396 21,884Accumulated impairment (11,950) - - (11,950)Accumulated amortization - (4,631 (396) (5,027)Net book amount 95 4,812 - 4,907

The amortization of software was charged to administrative expenses (Note 28) by USD754 (USD712 in 2016 and USD537 in 2015) and to cost of sales by USD69 for 2017 (USD11 in 2016 and 2015) in the consolidated statement of comprehensive income.

Goodwill The impairment charge in asparagus CGU arose following the decision in November 2015 of not to continue producing preserved asparagus. Management discontinued the asparagus line of business in 2016 in order to focus on other products and lines of business. With effect from the first week of December 2016 asparagus is no longer being planted or grown.

Impairment tests on goodwill The carrying amount of asparagus segment has been reduced to its recoverable amount through recognition of an impairment loss against goodwill and other assets in 2015 for USD10,313. This loss has been included in the statement of comprehensive income in discontinued operations (Note 36).

The amount impaired was distributed as follows: 2015 Asparagus USD

Goodwill (Discontinued operations Note 36) 3,478Bearer plants (Discontinued operations Note 36) 6,216Plant and equipment (Discontinued operations Note 36) 619 10,313

An impairment test on goodwill of avocado CGU was performed by comparing the recoverable amount of the cash-generating unit (value in use for 2016 and 2015) and their carrying amount (including goodwill). To estimate the value in use, the Group has used the following assumptions:

• ProjectionsarebasedontheGroup’sforecastsapprovedbymanagement.

• 5-yearterm(7-yearin2015)ofcashflowshasbeenusedinthecalculation,astheforecastedcashflowscanbebasedonreasonable and reliable assumptions. Management changed in 2016 the forecasted cash flows term from 7 to 5, because management believes that all relevant assumptions that affect the projections can be factored in the 5 years terms and the perpetuity. The change from using the 7-year term to a 5-year term did not have a material impact.

• Projectionsdonotincludecashinflowsoroutflowsfromfinancingactivities.

• Futurecashflowsarerealpre-tax.

• Theriskadjustedrateisaffectedbythespecificindustryandmarketrisks;thereforeitrepresentstheratethatamarketparticipant would use.

• In2015and2016GoodwillofUS8,472ismainlyallocatedtothecash-generatingunitofavocado.

• Cashflowsprojectionscomprisetheentirecashflowsexpectedtobegeneratedinthenormalcourseofbusiness,includingthe cash flows that relate to biological assets. All relevant non-current assets have been allocated to the CGU.

• TheCGUofavocadocorrespondstothesmallest identifiablegroupofassets,capabletogeneratecashflows infavorof the Group. These assets are related to the production and processing as follows: Bearer Plants, lands, machinery and equipment, industrial plant, biological assets, irrigations structure.

• Perpetuitycash-flowsforavocadofor2016and2015periodareextrapolatedusingtheestimatedgrowthratesof0%.Thegrowth rate does not exceed the long-term average growth rate for the industry in which the CGU operates.

The key assumptions used for value in use calculations for avocado CGU are as follows:

At 31 December 2016 2015

Compound annual growth rate (%) (3) 13Budgeted gross margin (%) 48 56Export prices (USD) 1.6 1.6Risk adjusted rate (%) 13.8 12.5Recoverable amount of the CGU 167,984 -

The annual growth rate corresponds to the average growth rate in revenue of the initial five year (seven-year in 2015). In 2016 this assumption decreased compared to 2015 because of the results of unexpected climatic conditions occurred during the last months of 2016 which reduced and delayed the production as well as increased maintenance costs that change the estimations of Management regarding to prices and production.



Management identified the recoverable amount is below the carrying amount of the CGU that leads to an impairment in the CGU. The recoverable amount corresponds to the Value in use of the CGU.

The impairment of the avocado CGU in 2016 occurred as a result of unexpected climatic conditions which reduced and delayed the production as well as increased maintenance costs for bearer plants during the year. These events affected the value in use model by including the risk of higher costs as well as decreasing the volume to be harvested in next year.

Management recognized an impairment in avocado CGU of USD10,973 in 2016 in the consolidated statement of comprehensive income as follows:

2016 Avocados USD

Goodwill (Other expenses Note 30) 8,472Bearer plants (Cost of sales Note 26) 1,884Plant and equipment (Cost of sales Note 26) 617 10,973

Compound annual growth rate, budgeted gross margin, export prices and risk adjusted rate disclosure above corresponds to the initial five-year (seven-year in 2015) avocado.

These assumptions have been used for the analysis of each CGU within the operating segment.

Management determined budgeted gross margin based on past performance and its expectations of market development. The average growth rates used are consistent with the actual performance in the avocado CGU and with the forecasts included in industry reports.

Export prices are the average in the initial five-year period for avocado. Management determined budgeted export prices based on past performance, current industry trends and its expectations of market development.

The risk adjusted rates used are pre-tax and reflect specific risks relating to the relevant operating segment.

Sensitivity analysis Management performs a sensitivity analysis to assess the impact of changes in the assumptions used in the valuation model. In this respect, during 2016 the risk adjusted rate used by the Group was 13.8%.

Budgeted compound annual growth (Avocados CGU) Year Variation Impairment 2015 10% -

prices (Avocados CGU) Year Variation Impairment 2015 10% 13,689

Budgeted Gross margin(Avocados CGU) Year Variation Impairment

2015 5% 3,563

Yields (Avocados CGU) Year Variation Impairment

2015 5% -

9. BIoLoGICAL ASSETS

The Group measures the value of biological assets using the expected cash flows for the production of each of them. The cash flows included in the projections are discounted at the risk adjusted rates between the range of 9.37% and 10.11% over different products.

The movement for the period in the fair value of biological assets is as follows:

Additions and opening balance deductions Closing balance market market Final Area value Area value Area balance has USD has USD has USD

31 December 2017Avocados 2,653 14,636 2 23,960 2,655 38,596Mangos 448 2,469 114 (1,997) 562 472Grapes 391 668 (193) 2,276 198 2,944Tangerines 167 2,076 159 420 326 2,496Blueberries 1,460 39,209 402 1,508 1,862 40,717Shrimp 1,003 9,005 (15) (117) 988 8,888 6,122 68,063 469 26,050 6,591 94,113



Additions and opening balance deductions Closing balance market market Final Area value Area value Area balance has USD has USD has USD

31 December 2016Asparagus 1,261 1,550 (1,261) (1,550) - - Avocados 2,655 6,970 (2) 7,666 2,653 14,636Mangos 450 1,573 (2) 896 448 2,469Grapes 327 1,356 64 (688) 391 668Tangerines 145 2,697 22 (621) 167 2,076Blueberries 1,050 40,766 410 (1,557) 1,460 39,20Shrimp 724 5,714 279 3,291 1,003 9,005 6,612 60,626 (490) 7,437 6,122 68,063

31 December 2015Asparagus 1,922 - (661) 1,550 1,261 1,550Avocados 2,653 13,986 2 (7,016) 2,655 6,970Mangos 527 2,933 (77) (1,360) 450 1,573Grapes 451 5,534 (126) (4,178) 325 1,356Tangerines 102 1,868 44 829 146 2,697Blueberries 566 7,913 485 32,853 1,051 40,766Shrimp 1,050 8,307 (326) (2,593) 724 5,714 7,271 40,541 (659) 20,085 6,612 60,626

The main assumptions used to estimate the fair values of the biological assets were as follows:

Asparagus:- 0 producing plots in 2016 in Mar Verde, Agricultor, and Sincromax (34 plots in 2015)- Each harvest cycle lasts 6 months for 2016 and 2015. - Risk adjusted rate of 0% for 2016 (10.22% for 2015). In 2016, Asparagus segment was discontinued. - The harvest period is mainly during the months of January to March.

Avocados:- 53 plots in Agromás, Marverde, Frusol, Terra, Agricultor and Yakuy Minka. (55 plots in 2016 and 57 plots in 2015).- Every harvest cycle lasts 1 year for 2017, 2016 and 2015.- Risk adjusted rate of 10.11% for 2017 (9.59% for 2016 and 10.22% for 2015).- The harvest period is mainly during the months of April to August.

mangos: - 11 plots in Atypsa, Balfass and Dunas (9 plots in 2016 and 16 plots in 2015). - Every harvest cycle lasts 1 year for 2017,2016 and 2015.- Risk adjusted rate of 9.56% for 2017 (9.04 % for 2016 and 9.63 % for 2015).- The harvest period is mainly during January to March.

Grapes: - 8 plots in Agroalegre (12 plots in 2016 and 20 plots in 2015). - Each harvest cycle last 1 year for 2017, 2016 and 2015.- Risk adjusted rate of 10.85% for 2017 (10.33% for 2016 and 11.0% for 2015).- The harvest period is mainly during the months of November and December.

Blueberries:- 37 plots in Agromas, Marverde, Gloria, Agricultor, Oro azul and Yakuy Minka (29 plots in 2016 and 31 plots in 2015). - Each harvest cycle last 1 year for 2017, 2016 and 2015.- Risk adjusted rate of 9.37 % for 2017 (8.86% for 2016 and 9.44% for 2015).- The harvest period is during all the year.

Tangerines: - 10 plots in Yakuy Minka (6 plots in 2016 and 2015).- Each harvest cycle last 1 year for 2017, 2016 and 2015.- Risk adjusted rate of 10.11% for 2017 (9.59% for 2016 and 10.22% for 2015).- The harvest period is mainly during the months of June to August.

Shrimps: - 275 shrimp farms that cover an area of Shrimp farms that cover an area of 988 Has for 2017 (204 shrimp farms and 1,003

Has for 2016 and 724 Has for 2015).- Each has a useful life between 180 and 200 days, for 2017, 2016 and 2015.- Each harvest cycle of shrimps lasts approximately 25 weeks, including preparation, maintenance, and harvest for 2017,

2016 and 2015.- Risk adjusted rate of 9.74% for 2017 (9.22% for 2016 and 9.83% for 2015).- The harvest period is during all the year.

The following table demonstrates the sensitivity to a reasonably possible change in the projected volume production, with all other variables held constant, on the Group’s pre-tax profit:

Increase/decrease Effect on profitproduction before tax USD 2017+2% 3,051-2% (3,051)2016+2% 2,011-2% (2,011)2015+2% 2,383-2% (2,383)



The following table demonstrates the sensitivity to a reasonably possible change in the projected prices for each biological asset, with all other variables held constant, on the Group’s pre-tax profit:

Increase/decrease Effect on profitprices before tax USD 2017+2% 3,685-2% (3,685)2016+2% 2,819-2% (2,819)2015+2% 2,183-2% (2,183)

The following table demonstrates the sensitivity to a reasonably possible change in the projected maintenance costs of growing and harvesting, with all other variables held constant, on the Group’s pre-tax profit:

Increase/decrease Effect on profitcosts before tax USD 2017+2% (1,588)-2% 1,5882016+2% (1,038)-2% 1,0382015+2% (793)-2% 793

The reconciliation in the fair value of the biological assets within level 3 of the hierarchy is as follows:

Asparagus Avocados mangos Shrimp Grapes Tangerines Blueberries Total USD USD USD USD USD USD USD USD31 December 2017Initial balance of fair value - 14,636 2,469 9,005 668 2,076 39,209 68,063Harvest - (17,257) (1,981) (51,850) (4,113) (1,331) (15,202) (91,734)Price change - 16,732 (12) (7) 2,608 (141) 563 19,743Change in fair value due to biological transformation - 7,869 (2,441) 957 47 568 1,054 8,054Increase due to purchases - 16,616 2,437 50,783 3,734 1,324 15,093 89,987Final balance of fair value - 38,596 472 8,888 2,944 2,496 40,717 94,113

Total gains or losses for theyear included in profit or lossfor assets held at the end of the reporting period, under netgain arising from changes infair value of biological assets - 24,601 (2,453) 950 2,655 427 1,617 27,797

31 December 2016Initial balance of fair value 1,550 6,970 1,573 5,714 1,356 2,697 40,766 60,626Harvest (10,358) (14,540) (3,272) (35,714) (8,062) (1,244) (6,618) (79,808)Price change (1,550) 72 (557) 987 (1,240) 229 17,877 15,818Change in fair value due tobiological transformation 7,889 7,139 2,115 (787) 1,583 (827) (18,967) (1,855)Increase due to purchases 2,469 14,995 2,610 38,805 7,031 1,221 6,151 73,282Final balance of fair value - 14,636 2,469 9,005 668 2,076 39,209 68,063 Total gains or losses for theyear included in profit or lossfor assets held at the end of the reporting period, under netgain arising from changes infair value of biological assets 6,339 7,211 1,558 200 343 (598) (1,090) 13,963

31 December 2015Initial balance of fair value - 13,986 2,933 8,307 5,534 1,868 7,913 40,541Harvest (7,847) (12,713) (2,777) (24,280) (7,140) (1,152) (2,679) (58,588)Price change 2,597 1,853 (121) (4,322) (759) (399) (465) (1,616)Change in fair value due tobiological transformation (4,576) (10,593) (1,179) 4,632 (1,637) (759) 32,486 18,374Increase due to purchases 11,376 14,437 2,717 21,377 5,358 3,139 3,511 61,915Final balance of fair value 1,550 6,970 1,573 5,714 1,356 2,697 40,766 60,626

Total gains or losses for theYear included in profit or lossfor assets held at the end of the reporting period, under netgain arising from changes infair value of biological assets (1,979) (8,740) (1,300) 310 (2,396) (1,158) 32,021 16,758



Avocados 38,596 14,636 6,970 Discounted Crop yield - tonnes 3.7 – 18.2 (16.3) The higher the crop yield, produce cashflows Perhectare peryear thehigherthefairvalue

Avocados average 31.12.2017 (1,449) The higher the market price, price 31.12.2016 (940) the higher the fair value 31.12.2015 (936) per tonne

Discounted rate 31.12.17 (10.11%) The higher the discount rate 31.12.16 (9.59%) the lower the fair value 31.12.15 (10.22%)

Mangos 472 2,469 1,573 Discounted Crop yield - tonnes 2.9 – 34 (20.5) The higher the crop yield, produce cashflows Perhectare peryear thehigherthefairvalue

Mangoes average 31.12.2017 (416) The higher the market price, price 31.12.2016 (417) the higher the fair value 31.12.2015 (565) per tonne

Discounted rate 31.12.17 (9.56%) The higher the discount rate 31.12.16 (9.04%) the lower the fair value 31.12.15 (9.63%)

Shrimp 8,888 9,005 5,714 Discounted Crop yield - tonnes 1.6 – 39 (14.1) The higher the crop yield,produce cashflows Perhectare peryear thehigherthefairvalue

Shrimp average 31.12.2017 (4,954) The higher the market price, price 31.12.2016 (4,960) the higher the fair value 31.12.2015 (4,554) Per tonne

Discounted rate 31.12.17 (9.74%) The higher the discount rate, 31.12.16 (9.22%) the lower the fair value 31.12.15 (10.82%)

Grapes 2,944 668 1,356 Discounted Crop yield - tonnes 11.9 – 24.6 (23.6) The higher the crop yield, produce cashflows Perhectare peryear thehigherthefairvalue

Grapes average 31.12.2017 (1,593) The higher the market price, price 31.12.2016 (1,265) the higher the fair value 31.12.2015 (1,291) per tonne


Tangerines 2,496 2,076 2,697 Discounted Crop yield - tonnes 17 - 75 (61.9) The higher the crop yield, produce cashflows Perhectare peryear thehigherthefairvalue

Tangerine average 31.12.2017 (697) The higher the market price, price 31.12.2016 (726) the higher the fair value 31.12.2015 (683) per tonne


Blueberries 40,717 39,209 40,766 Discounted Crop yield - tonnes 7.9 – 16.8 (11.7) The higher the crop yield,produce cashflows Perhectare peryear thehigherthefairvalue

Blueberry average 31.12.2017 (5,876) The higher the market price, price 31.12.2016 (5,830) the higher the fair value 31.12.2015 (4,529) per tonne

Discounted rate 31.12.17 (9.37%) The higher the discount rate, 31.12.16 (8.86%) the lower the fair value 31.12.15 (9.44%) 94,113 68,063 60,626

Change in fair value of biological assets related to asparagus is presented as discontinued operations (Note 36).

2017 2016 2015 USD USD USD Net gain (loss) arising from change in fairvalue of biological assets from:Continuing operations 27,797 7,624 18,737)Discontinued operations - 6,339 (1,979)Net gain arising from change in fair value of biological assets 27,797 13,963 16,758)

Valuation processes of the Group

The Group’s finance department includes a team that performs the valuations of biological assets required for financial reporting purposes, including level 3 fair values.

This team reports directly to the chief financial officer (CFO) and the audit committee (AC).

Discussions of valuation processes and results are held between the CFO, AC and the valuation team at least once every quarter, in line with the Group’s quarterly reporting dates.

Valuation inputs for biological assets correspond to level 3 of the hierarchy defined in Note 3.3. There were no transfers between any levels during the year.

The following unobservable inputs were used to measure the Group’s biological assets:

Asparagus - - 1,550 Discounted Crop yield - tonnes 2.8 – 9.2 (6.4) The higher the crop yield,produce cashflows Perhectare(white) peryear thehigherthefairvalue Crop yield - tonnes 1.3 - 6.8 (4.1) The higher the crop yield, Per hectare (green) per year the higher the fair value White asparagus 31.12.17 ( - ) The higher the market price, average price 31.12.16 ( - ) the higher the fair value 31.12.15 (1,571 - 1,401) per tonne Green asparagus 31.12.17 ( - ) The higher the market price, average price 31.12.16 ( - ) the higher the fair value 31.12.15 (1,571 – 1,401) per tonne Discounted rate 31.12.17 (0%) The higher the discount rate 31.12.16 (0%) The higher the discount rate 31.12.15 (10.22%) The lower the fair value

Relathionship of unobservable inputs to fair value

Unobservable inputs

Valuation technique

2017 USD

2016 USD

2015 USD

Fair value at 31 December

Description

Range of unobservable inputs (probability-weighted average)

Relathionship of unobservable inputs to fair value

Unobservable inputs

Valuation technique

2017 USD

2016 USD

2015 USD

Fair value at 31 December

Description

Range of unobservable inputs (probability-weighted average)



11. CREDIT qUALITY oF FInAnCIAL ASSETS

The Group assesses the credit quality of its accounts receivable by reference to historical information about the counterpar-ties’ default rates as follows:


Trade accounts receivableNew customers (less than 6 months as a customer) 4,528 1,598Existing customers (more than 6 months)without non-compliance experience in the past 43,340 35,380Existing customers (more than 6 months) withsome non-compliance experience in the past 1,255 5,821 49,123 42,799

Other accounts receivableNew customers (less than 6 months as a customer) 150 - Existing customers (more than 6 months)without non-compliance experience in the past 1,825 2,984Existing customers (more than 6 months) withsome non-compliance experience in the past 651 - 2,626 2,984See credit quality of deposits in banks in Note 15.

10. FInAnCIAL InSTRUmEnTS BY CATEGoRY

Financial assets as per the statement of financial position as of 31 December 2017, and 2016 are as follows:

At 31 December 2017 2016 USD USD Loans and receivables:Trade accounts receivable (Note 14) 49,123 42,799Other accounts receivable(excluding prepayments and statutory obligations) (Note 13) 2,626 2,984Cash and cash equivalents (Note 15) 35,556 84,700 87,305 130,483

Financial liabilities as per the consolidated financial position as of 31 December 2017 and 2016 are as follow: At 31 December 2017 2016 USD USD Other financial liabilitiesTrade accounts payable (Note 20) 39,397 37,698Other accounts payable (excluding statutory liabilities and non-financial liabilities) (Note 21) 882 1,113Bank loans (Note 23) 19,264 40,850Long-term debt (Note 19) 162,341 218,191 221,884 297,852




Movement in the provision for obsolescence of inventories: Opening balance (6,588) (8,560) (2,817)Additions (360) (4,337) (4,969)Net realizable value reversal (impairment) 1,049 1,906 (2,482)Write-off (Note 32) 1,477 4,393 1,710Reclassifications (24) (10) (2)Balance at the end of the year (4,446) (6,588) (8,560)

The additions correspond mainly to impaired supplies and net realizable value impairment is related to finished products (Note 26). The additions from continued operations recognized in other expenses (Note 30 and 32) amounts to USD360 (2016: USD3,576 and for 2015: USD3,665 ) (Notes 30 and 32).

13. oThER ACCoUnTS RECEIVABLE


Value added tax (IGV in Perú) 5,247 5,190Custom duties refund (Drawback in Perú) 378 897Due from employees 192 169Prepayments to suppliers 2,158 209Rental of the pepper plant 378 378Loans to third parties 1,044 1,286Related companies (Note 35) 46 74Receivables from government health entity 235 284Claims to third parties 529 825Services rendered to third parties 1,693 1,786Other 491 (434) 12,391 11,532Less: Provision for impairment of other accounts receivable (1,980) (2,252) 10,411 (9,280)

Loans to third parties corresponds to loans granted to minor farmers, that Camposol makes to incentivize the agro in the region. These loans are short term and are not guaranteed.

12. InVEnToRIES At 31 December 2017 2016 USD USD

Finished products:- Shrimp 5,091 5,210- Avocados 221 562- Mangos 1,751 3,481- Grapes 1,495 1,843- Blueberries 10,436 7,139- Peppers - 450Product in process 1,032 279Supplies 13,878 10,662Packs 3,613 4,945Seeds, seedlings and others 3,822 3,438In-transit raw material and supplies 445 1,088Other 2 59 41,786 39,156Provision for obsolescence of inventories (4,446) (6,588) 37,340 32,568

Finished products by type of produce for the year ended 31 December is as follows:


Fresh 12,560 10,623Preserved - 289Frozen 6,434 7,773 18,994 18,685

As of 30 December 2017 inventories are free of any pledges as guarantee on liabilities; as of 31 December 2016 inventories guaranteed bank loans.

The cost of inventories of continued operations recognized as expense and included in the cost of sales amounted to USD126,146 (2016: USD104,424 and for 2015: USD114,604) (Note 26).

The cost of inventories of discontinued operations recognized as expense and included in the cost of sales amounted to USD 2,334 (2016: USD26,505 and for 2015: USD39,499) (Note 36).



The movement of the provision for impairment of other accounts receivable is as follows:


Opening balance (2,252) (866) (883)Additions (Note 30) (49) (1,784) (14)Written-off 234) 398) - Recoveries 93) - - Reclassification (6) -) 31)Balance at the end of the year (1,980) (2,252) (866)

The additions of provisions for impairment for 2017 is USD49 (impairment for 2016 includes USD1,147 from continued opera-tion (Note 30 and 32) and USD637 from discontinued operations (Note 36).

Other accounts receivables not provisioned are current and are not impaired.

The drawback (custom duties refund) recovered during the year 2017 amounted to USD 5,916 (USD5,348 in 2016). Receivables from employees are not interest-bearing and are unsecured.

The rental of the pepper plant corresponds to a contract signed with Sociedad Agricola Viru S.A. for the lease of the Nor Agro plant and equipment located in Piura, Peru with a 3-year term contract until December 16, 2018. The minimum lease payments receivable on the lease of the plant are as follows: 2017 2016 USD USD

minimum lease payments under non-cancellableoperating lease of the plant not recognised inthe financial statements as receivablesare as follows: Within one year 320 320Later than one year but not later than 5 years - 320 320 640

14. TRADE ACCoUnTS RECEIVABLE At 31 December 2017 2016 USD USD

Third parties 50,238 43,820Less: Provision for impairment of trade accounts receivable (1,115) (1,021) 49,123 42,799

Trade accounts receivable mainly comprise invoices for the sale of fresh and frozen products. Turnover ranges between 30 and 120 days and are not interest-bearing.

Trade accounts receivable in foreign currency amounts to USD16,406 in Euros (at December 31, 2016 USD11,163 in Euros) and USD146 in Sol (at December 31,2016 USD94 in Sol).

The remaining balances are denominated in US Dollars.

The movement of the provision for impairment of trade accounts receivable is as follows:


Opening balance (1,021) (5,888) (6,156)Additions (Notes 30 and 32) (295) (229) (285)Recoveries (Note 30) - - 121Written-Off (a) 180 5,337 268Reclassification (21) (241) 164Balance at the end of the year (1,115) (1,021) (5,888)

(a) In 2016, the write-off is mainly due to trade receivables from former client ACICO, from which all the available resources to recover the provisioned amount in prior years were spent.



The Group does not ask for collaterals to secure the full collection of its trade accounts receivable.As of 31 December 2017 and 2016, the ageing analysis of trade accounts receivable, net of provision is as follows:

31-90 91-180 181-360 more than Total Current days days days 360 days USD USD USD USD USD USD

At 31 December 2017 49,123 48,454 283 13 266 107At 31 December 2016 42,799 41,501 827 - 262 209

As of 31 December 2017, trade accounts receivable amounting to USD107 (USD209 in 2016) although past due for more than one year, are not impaired; therefore, no provision for impairment on these accounts has been accounted for.

As of December 31, 2017, trade accounts receivable amounting to USD1,115 (USD1,021 in 2016) are impaired; for which the Group has recognized a provision for impairment. The individually impaired accounts relate to customers who are in unex-pected difficult economic situations or / and under litigation. These accounts are past due for more than a year.

As of 31 December 2017 and 2016 these impaired customers have not pledged any security for their debt.

The fair value of accounts receivable approximates their carrying amounts due to their short-term maturities.

15. CASh AnD CASh EqUIVALEnTS AnD CASh SUBJECT To RESTRICTIon


Cash in hand 31 28Cash at banks 16,917 37,905Short-term deposits 15,000 44,506Short-term investments 2,323 2,261Cash and cash equivalents 34,271 84,700Cash subject to restriction 1,285 - 35,556 84,700

The Group’s cash at bank amounts to USD30,568, USD3,403 and USD1,585 (in 2016 USD81,331, USD1,213 and USD2,156) in U.S. Dollars, Sol and Euros, respectively. The 2017 and 2016 short-term deposits are denominated in U.S. Dollars.

The short-term deposits as of 31 December 2017 and 2016 comprise balance in banks with maturities of less than three mon-ths. As of 31 December 2017 the time deposits have generated interest of USD82 (USD20 to 31 December 2016) (Note 31).

The short-term investments correspond to a fixed portfolio of highly liquid short-term high-quality instruments and debt instruments which can be withdrawn upon demand with insignificant potential change in value.

The cash subject to restriction as 31 December 2017 mainly comprises USD1,125 of a bank certificate for a lease contract that is not available for general use; the maturity of this certificate is February 2018.

The credit classification of cash and cash equivalents are as follows:

At 31 December 2017 2016 USD USD Bank deposits Classification Aaa 2,535 910Classification A + 29,846 55,303Classification A 1,703 28,341Others 156 118 34,240 84,672

The balances above do not include the balance of cash in hand.

16. ShAREhoLDERS’ EqUITY

Share capital and premium

The share capital and premium are as follows:

number of Share Share shares (*) capital premium Total USD USD

1 January 2016 32,404 507 212,318 212,825Issue of shares 521 6 4,994 5,00031 December 2016 32,925 513 217,312 217,825Stock Split 32,925 - - -Change in currency denomination of share - (125) - (125)31 December 2017 65,850 388 217,312 217,700

(*) Expressed in thousands of shares.

As of 31 December 2017, the total authorized number of ordinary shares is 80,000,000 shares with a par value of USD0.0058985 per share. The total issued shares are 65,850,394. All shares issued have been fully paid-in.



In March 2016, the Company issued 521,376 Ordinary shares at a nominal value of €0.01 each at a premium of USD4,994.

On August 4, 2017, Camposol Holding PLC (formerly Camposol Holding Limited) issued one ordinary share, with the same ter-ms and conditions of its existing ordinary shares, of par value € 0.01 to Risger S.A. (a related party owned by certain members of the Dyer family) to comply with the requirements of Cyprus Law to have at least seven shareholders in order to be able to convert into a PLC entity.

On August 7, 2017, the shareholders of the Company approved by unanimous written consent to: (i) convert Camposol Holding Limited into a public limited liability company; (ii) change the corporate name from “Camposol Holding Limited” to “Camposol Holding PLC”; (ii) adopt the new Articles of Association that will govern Camposol as a public limited liability company; and (iv) change the currency of denomination of its share capital from Euro to United States Dollar. These changes in register were approved by Cyprus authorities, and on October 18, 2017 the following became effective: (i) the change in legal status of the entity to a public company limited by shares under Cyprus law and (ii) the change in corporate name to “Camposol Holding PLC”. As a consequence of the latter resolution, Camposol Holding’s authorized share capital changed to USD471, 880 divided into 40,000,000 ordinary shares, each with a nominal value per share of USD0.011797 and its issued and outstanding share capital to USD388,419 divided into 32,925,197 ordinary shares, each with a nominal value per share of USD0.011797.

On December 14, 2017, the shareholders of the Company approved by unanimous written consent to effect a 2-to-1 stock split of the Company’s outstanding Ordinary Shares from 32,925,197 Ordinary Shares to 65,850,394 Ordinary Shares (the “Stock Split”). The nominal value of each Ordinary shares changed as a result of the Stock Split from US$0.011797 per Ordinary Share to US$0.0058985 per Ordinary Share. The Stock-Split was undertaken with the view of increasing liquidity in the secondary market, should one develop, for the Company’s Ordinary Shares after the settlement of its proposed initial public offering. The Stock Split became effective as of the date of its approval.

Share premium reserve is not available for distribution by way of a dividend.

Companies that do not distribute 70% of their profits after tax, as defined by the Special Contribution for the Defence of the Republic Law, by the end of the two years after the end of the year of assessment to which the profits refer, will be deemed to have distributed this amount as dividend. Special contribution for defence at 15% will be payable on such deemed dividend to the extent that the shareholders for deemed dividend distribution purposes at the end of the period of two years from the end of the year of assessment to which the profits refer, are Cyprus tax residents.

The special contribution for defence rate increased to 17% in respect of profits of year of assessment 2009 and to 20% in res-pect of profits of years of assessment 2010 and 2011 and is reduced back to 17% in respect of profits of years of assessment 2012 onwards. The amount of this deemed dividend distribution is reduced by any actual dividend paid out of the profits of the relevant year by the end of the period of two years from the end of the year of assessment to which the profits refer. This special contribution for defence is paid by the Company for the account of the shareholders. Cypriot entities of the Group are holding entities, which have not generated significant taxable profits to be deemed as dividend for which Special contribution for defence should be paid.

Treasury sharesCorresponds to the gain of USD825 generated in 2013 for the disposal of 2,968,502 own shares, which was recognized as other reserves in the consolidated statements of changes in equity.

Shareholder As of 31 December 2017 and 2016 Generación del Pacífico Grupo S.L., ultimate controlling party, (formerly Dyer Coriat Holding SL) has 82.59% of the Shares of the Company. The remainder of the Company’s issued share capital is owned by certain members of the Dyer family. Generacion del Pacifico Grupo SL is owned by the Dyer Coriat family but no individual member has ultimate control of the Company.

Dividends During 2017 the Group distributed dividends for a total amount of USD20,000. The dividend was a one-time dividend and the Company has no plans to declare any additional dividends in the foreseeable future.

non-controlling interest The non-controlling interest is related to the change in the shareholding in Marinazul S.A., Corporación Refrigerados Iny S.A. and Pesquera ABC S.A.C. Except for the dividend distribution of USD0 (USD89 in 2016 and USD188 in 2015), there were no transactions with non-controlling interest in 2017, 2016 and 2015.

The total non-controlling interest as of 31 December 2017 is USD7,462 (USD7,502 for 2016 and USD7,841 for 2015).

Summarized financial information on subsidiaries with material non-controlling interests

Summarized statement of financial position

Corporación Refrigerados Iny S.A. pesquera ABC S.A.C. As at 31 December As at 31 December 2017 2016 2015 2017 2016 2015 USD USD USD USD USD USD

Current Assets 15,968 18,189 21,102 2,058 2,916 5,104Liabilities (2,326) (5,451) (7,554) (5,259) (4,692) (5,845)Total current net assets 13,644 12,738 13,548 (3,201) (1,776) (741)

Non-current Assets 22,729 22,518 22,014) 5,391 5,473 5,315Liabilities (9,699) (8,266) (7,964) - (921) (1,107)Total non-current net assets 13,030 14,252 14,050 5,391 4,552 4,297Net assets 26,674 26,990 27,598 2,190 2,776 3,556



17. DEFERRED InComE TAx

The net movement in the deferred income tax liabilities is as follows:

2017 2016 USD USD

Opening balance 43,630 35,191Expense for the year (Note 33) 1,935 7,674Acquisition of subsidiary - 769Equity - (4)Balance at the end of the year 45,565 43,630

Deferred tax relates to the following items:

opening Income Acquisition of Closing balance statement Subsidiaries Equity balance USD USD USD USD USD

2017 Deferred tax assets Tax losses carried-forward 6,869 (5,236) - - 1,633Provisions (369) (291) - - (660)Trade accounts receivable 290 (18) - - 272 6,790 (5,545) - - 1,245

Deferred tax liabilities Fair value of biological assets 7,601 3,987 - - 11,588Deemed cost bearer plants 31,236 (5,090) - - 26,146Fair value of fixed assets at acquisition of subsidiary 10,600 (520) - - 10,080Fair value of assets and inventories 837 (408) - - 429Differences in depreciation rates 31 (60) - - (29)Gain on investments in associates (469) (549) - - 80Fair value of inventories (NRV) (1,085) 179 - - (906)Other 1,669 (2,247) - - (578) 50,420 (3,610) - - 46,810Deferred tax (43,630) (1,935) - - (45,565)

Summarized statement of comprehensive income

Corporación Refrigerados Iny S.A. pesquera ABC S.A.C. For the year ended For the year ended 2017 2016 2015 2017 2016 2015 USD USD USD USD USD USD

Revenue 12,618 18,889 44,860 2,035 6,663 10,014Profit before income tax (396) (505) 1,999 (1,172) (980) 157Income tax expense (160) (240) (281) 693 300 (11)Profit for the year 556 (745) 1,718 (479) (680) 146Other comprehensive income - CTA (886) 1,544 (4,535) (175) 180 (745)Total comprehensive income 1,442 799 (2,817) (654) (500) (595)Total comprehensive allocated tonon-controlling interests (111) 160 (563) (120) (125) (149)Dividends paid to non-controlling Interests - 83 188 - 6 -

Summarized statement of cash flows

Corporación Refrigerados Iny S.A. pesquera ABC S.A.C. For the year ended For the year ended 2017 2016 2015 2017 2016 2015 USD USD USD USD USD USDCash flows from operating activities:- Cash generated from operations (3,610) 3,930 (3,574) (838) (911) (1,637)- Income tax paid - - (116) - - -Interest paid (375) (163) (255) (34) (158) (126)Net cash generated from operating activities 3,235 3,767 (3,945) (872) (1,069) (1,763)Net cash generated from investingactivities (1,053) (573) (186) (9) (99) (114)Net cash generated from financingactivities (2,393) (3,358) 3,678 765 894 2,149Net (decrease) increase incash and cash equivalents (211) (164) (453) (116) (274) (272)Cash and cash equivalents at beginning of year 508 672 1,125 180 502 230Cash and cash equivalents at end of year 297 508 672 63 180 502



opening Income Acquisition of Closing balance statement Subsidiaries Equity balance USD USD USD USD USD

2016 Deferred tax assets Tax losses carried-forward 12,745 (5,906) 30 - 6,869Provisions 91 (429) (31) - (369)Trade accounts receivable 822 (532) - - 290 13,658 (6,867) (1) - 6,790

Deferred tax liabilities Fair value of biological assets 5,715 1,886 - - 7,601Deemed cost bearer plants 32,671 (1,435) - - 31,236Fair value of fixed assets at acquisition of subsidiary 9,351 363 886 - 10,600Fair value of assets and inventories 1,096 (259) - - 837Differences in depreciation rates 218 (187) - - 31Gain on investments in associates (578) (109) - - (469)Fair value of inventories (NRV) (370) (715) -v - (1,085)Other 746 1,045 (118) (4) 1,669 48,849 807 768 (4) 50,420Deferred tax (35,191) (7,674) (769) (4) (43,630)

Deferred income tax assets are recognized for tax losses carried-forward to the extent that the realization of the related tax benefit through future taxable profits is probable.

Despite the Group generated loss during 2016, the Group generated taxable income that made it able to recover tax loss. This occurred since depreciation of bearer plants and impairment of goodwill do not generate an important deductible effect for tax purposes.

Management expects that remaining balance of tax loss will be recovered in the coming year considering the projections of taxable income.

The Group did not recognize any deferred income tax liability for unremitted earnings from Peruvian subsidiaries to Cyprus companies, since there is no legal obligation to pay income tax to the tax authorities of Cyprus and Peru until dividends are distributed. The tax liability for unremitted earnings from Peruvian subsidiaries to Cyprus companies not recognized for that reason amounts USD7,192 as of December 31, 2017 (USD4,899 as of December 31, 2016).

The deferred income tax from tax losses carried-forward is expected to be applied to taxable income to be generated in the coming years, as follows:

2017 2016 USD USD

2017 - 6,8692018 1,633 - 1,633 6,869

In Peru, tax losses can be carried forward by choosing one of the two tax-loss offsetting regimes available; by one of them, tax losses may be carried forward over 4 consecutive years after the year in which they have been obtained and then they expire; by the second offsetting regime; tax losses are offset at a 50% of the taxable income obtained year after year and they do not expire. The Group has selected the first regime; and at the reporting date; based on Management’s estimate of its future tax losses, no tax loss would expire.

18. WoRKERS’ pRoFIT ShARInG

In accordance with Peruvian Legislation, Camposol S.A. and Marinazul S.A. recorded a provision for workers’ profit sharing equivalent of up to 10% (5% legal and up to 5% voluntary) of the taxable income of the subsidiaries for 2017. The profit sha-ring was communicated to the affected employees prior to year-end. The amount of the workers’ profit sharing must be paid during the second quarter of the following year of its determination (Note 2.22).

The distribution for 2017 is as follow:

USD

Cost of sales (Note 26) 5,118Selling expenses (Note 27) 53Administrative expenses (Note 28) 731 5,902



19. LonG-TERm DEBT

31 DecemberType of debt Guarantee Annual interest rate 2017 2016 USD USD

Bonds Camposol Holding Ltd., Marinazul S.A. and Campoinca S.A 10.5% / 9.875% 150,975 199,060 Other borrowings Domingo Rodas S.A. 3% - 501Bank borrowings - 6.7% 9,990 14,745Finance lease liabilities Property subject to financial lease Between 4.30% and 8.72% 1,376 3,885 162,341 218,191Less-current portion (12,407) (62,761) 149,934 155,430

All loans are denominated in United States Dollars.

For purposes of reconciliation with the information provided in the statement of cash flows, following is the movement of long-term borrowings:

Finance Total other Bank lease long-term borrowings Bonds borrowings liabilities debt USD USD USD USD USD

Balance as of 1 January 2015 1,664 205,594 884 9,657 217,799Cash transactionsRepayment of long-term borrowings (863) - (320) (2,955) (4,138)Payment of interest - (8,461) (107) (22) (8,590)non-cash transactionsAmortization of transaction costs - 1,404 - - 1,404Accrued interest - 8,171 107 22 8,300Balance as of 31 December 2015 801 206,708 564 6,702 214,775

Finance Total other Bank lease long-term borrowings Bonds borrowings liabilities debt USD USD USD USD USD

Balance as of 1 January 2016 801 206,708 564 6,702 214,775Cash transactionsRepurchase of bonds - (5,663) - - (5,663)Transactions costs - (4,837) (544) - (5,381)Borrowings received - - 15,000 - 15,000Repayment of long-term borrowings (300) - (275) (2,880) (3,455)Payment of interest - (8,171) (107) (22) (8,300)non-cash transactionsExchange of bonds – extinguishment - (147,490) - - (147,490)Exchange of bonds – issuance - 147,490 - - 147,490Purchase of fixed assets underfinance lease - - - 63 63Amortization of transaction costs - 1,950 - - 1,950Accrued interest - 9,073 107 22 9,202Balance as of 31 December 2016 501 199,060 14,745 3,885 218,191

Balance as of 1 January 2017 501 199,060 14,745 3,885 218,191Cash transactionsRepayment of long-term borrowings (501) (46,947) (4,962) (2,519) (54,929)Payment of interest - (9,073) (107) (22) (9,202)non-cash transactionsAmortization of transaction costs - 923 208 - 1,131Accrued interest - 7,012 106 32 7,150Balance as of 31 December 2017 - 150,975 9,990 1,376 162,341

Transaction costs are related to the issuance of new debt. No significant transaction cost raised from the acquisition of other borrowings.

The maturity of the non - current portion of long-term debt is as follows:

2017 2016 USD USD

1 year 4,210 5,5012 years - 4,1903 years 145,724 9More than 3 years - 145,730 149,934 155,430



Fair values

The carrying amounts and fair value of the non-current borrowings are as follows:

Carrying amount Fair value 2017 2016 2017 2016 USD USD USD USD

Bank borrowings 5,163 9,965 5,163 9,965Bonds 144,727 143,842 126,605 132,440Finance lease liabilities 44 1,368 40 1,281Other borrowings - 255 - 255 149,934 55,430 131,808 143,941

At 31 December 2017 and 2016 valuation inputs for calculating fair value of long-term debt correspond to level 2 of the hierarchy defined in Note 3.3. There were no transfers between any levels during the year.

a) Bonds

USD46,947 9.875% Senior Unsecured notes due 2017

On 26 January 2012, Camposol S.A. and its guarantors Camposol Holding PLC (formerly Camposol Holding Limited), Marinazul S.A. and Campoinca S.A. agreed with Credit Suisse Securities (USA) LLC and Santander Investment Securities Inc., as representatives of several purchasers, to issue and sell to the several purchasers, USD125,000 of the principal of its 9.875% Senior Notes due in 2017 to be issued under an indenture dated 2 February 2012, signed between Camposol S.A., the Guarantors, and Wells Fargo Bank, National Association, as trustee, guaranteed on an unsecured senior basis by Camposol Holding PLC (formerly Camposol Holding Limited), Marinazul S.A. and Campoinca S.A. Coupons bear a 9.875% interest and are payable on a semi-annual basis.

Cash proceeds were used to pay the long term debt obtained to finance capital expenditures and for general corporate uses. The bonds are listed on the Luxembourg Stock Exchange.

On 30 April 2014, Camposol S.A., Camposol Holding PLC’s subsidiary, successfully reopened its 9.875% USD125,000 senior Notes due 2017 raising proceeds of USD75,000, guaranteed by Camposol Holding PLC (formerly Camposol Holding Limited) as parent guarantor and Marinazul S.A. and Campoinca S.A. as subsidiary guarantors. The net proceeds from the bond issue were used for capital expenditures, mainly for the expansion of the blueberries’ and shrimps’ businesses.

The Senior Unsecured Notes were issued as additional notes of, and form a single issue with, the USD125,000 9.875% Notes due 2017 issued on February 2, 2012. The total aggregate principal amount of the 9.875% Notes due 2017 that were outstanding following this reopening was USD200,000.

On December 3, 2016, Camposol S.A., Camposol Holding PLC’s subsidiary, notified Wells Fargo Bank, as Trustee of the 9.875% Senior Secured Notes due 2017, that Camposol S.A. had purchased bonds for its own account of USD5,663 and authorized and instructed Wells Fargo Bank to accept the withdrawal instruction through the Depositary Trust Company and finally cancel

on Wells Fargo books and records these notes. The transaction costs of USD13 related to the repurchased debt were written-off and recorded as financial expenses in the consolidated statements of comprehensive income. Following the cancellation order, a total of USD46,947 principal amount of the 9.875% Senior Unsecured Notes due 2017 remained outstanding. The issue of these bonds includes certain restrictive covenants.

If during any period of time the Notes obtain Investment Grade Ratings from two Rating Agencies and no payment default or Event of Default has occurred and is continuing, the Issuer, the Parent Guarantor and its Restricted Subsidiaries will not be subject to the following provisions of the Indenture:

i. Change of control: Putable at 101% of principal plus accrued and unpaid interest.

ii. Limitation on indebtedness and Disqualified Stock:

a. The Leverage Ratio (net financial debt as a percentage of shareholders’ equity) is less than (i) 3.5 to 1.0 during the period from the Original Issue Date through June 30, 2013 and (ii) 3.25 to 1.0 from July 1, 2013 through the Maturity Date.

b. Working capital shall not exceed 25% of net sales if the Leverage Ratio is more than 3.25.c. Other Indebtedness shall not exceed the greater of USD 20,000 and 5% of the total assets if the Leverage Ratio is more

than 3.25.

iii. Limitation on Restricted Payments:

If the Leverage Ratio is more than 3.25, Camposol S.A. shall not:

a. Declare or pay any dividend or make any distribution b. Purchase, redeem, retire or otherwise acquire for value any shares of Capital Stock.c. Dividends up to USD 10,000 for fiscal year up to 2010.d. Year 2011, 50% of net income if leverage is equal or greater than 1.5 to 1.e. 75% of net income is lower than 1.5 to 1f. Other restricted payments no to exceed USD 15,000 since the original issue date.

iv. Limitation on Issuances of Guarantees by Restricted Subsidiaries

a. Loans and advances to officers, directors and employees of the Parent Guarantor or any Subsidiary in the ordinary course of business in an aggregate principal amount not exceeding USD 2,000 at any time.

v. Limitation on Liens

b. Not to exceed 10% of the total assets.

vi. Limitation on Asset Sales

c. At least 75% is paid in cash or temporary cash investments.



vii. Limitation on Business Activities

d. Only permitted Businesses.

On January 25, 2017 Camposol S.A., made the maturity payment of the outstanding USD46,947 of the 9.875% Senior Unsecured Notes.

USD 147,490 10.5% Senior secured notes due 2021

On May 27, 2016, Camposol S.A., Camposol Holding PLC’s subsidiary, announced the successful settlement of the Exchange Offer announced on April 22, 2016, to exchange any and all of its outstanding 9.875% Senior Notes due 2017 for newly issued 10.50% Senior Secured Notes due 2021. The Company received valid tenders that were not withdrawn from 73.75% of the holders of the 9.875% Senior Unsecured Notes due in 2017, representing USD147,490 of the aggregate USD200,000 principal amount of the notes outstanding. This transaction has been accounted for as an extinguishment of the original debt. Transaction costs of US783 related to the extinguished debt were written-off and recorded as financial expenses in the consolidated statements of comprehensive income. Following the settlement of the exchange, a total USD52,510 principal amount of the 9.875% Senior Unsecured Notes due 2017 remained outstanding.

The New Notes includes certain restrictive covenants.

If during any period of time the Notes obtain Investment Grade Ratings from two Rating Agencies and no payment default or Event of Default has occurred and is continuing, the Issuer, the Parent Guarantor and its Restricted Subsidiaries will not be subject to the following provisions of the Indenture:

i. Change of control: Putable at 105.25% of principal plus accrued and unpaid interest.

ii. Limitation on indebtedness and Disqualified Stock:

a. The Leverage Ratio (net financial debt as a percentage of shareholders’ equity) is less than 3.25 to 1.0 during the period from the Original Issue Date through the Maturity Date.

b. Working capital shall not to exceed 25% of net sales if the Leverage Ratio is more than 3.25.c. Other Indebtedness shall not exceed the greater of USD 30,000 and 5% of the total assets if the Leverage Ratio is more

than 3.25.

iii. Limitation on Restricted Payments:

If the Leverage Ratio is more than 3.25, Camposol S.A. shall not:

a. Declare or pay any dividend or make any distribution. b. Purchase, redeem, retire or otherwise acquire for value any shares of Capital Stock.c. 75% of net income is lower than 1.5 to 1.d. Other restricted payments not to exceed USD 15,000 since the original issue date.

iv. Limitation on Issuances of Guarantees by Restricted Subsidiaries

a. Loans and advances to officers, directors and employees of the Parent Guarantor or any Subsidiary in the ordinary course of business in an aggregate principal amount not exceeding USD 2,000 at any time.

v. Limitation on Liens

a. Not to exceed 10% of the total assets.

vi. Limitation on Asset Sales

b. At least 75% is paid in cash or temporary cash investments.

vii. Limitation on Business Activities

c. Only permitted Businesses.

According to the income tax regime currently in force in Peru, Camposol S.A. has to withhold from the payment of coupons 6.8% as the income tax of non-domiciled entities. Since the bond purchase agreement does not contemplate the payment of the withholding tax by the holders, Camposol S.A. will assume it as its own expense. Bank borrowings

On 28 December, 2016, Camposol S.A. obtained a borrowing from Interbank for USD15,000 (Mid-Term Loan) at an Annual Interest Rate of 6.7% due December 2019. This borrowing was used for paying part of the balance due of the 9.875% Senior Unsecured Notes in 2017.

If during any period of time no payment default or Event of Default has occurred and is continuing, the Camposol S.A. will not be subject to the following covenants:

a. The payment of any dividends or distributions declared, paid or made by a Restricted Subsidiary payable, on a pro rata basis or on a basis more favorable to the Parent Guarantor to all holders of any class of Capital Stock of such Restricted Subsidiary.

b. Provide indebtedness to related parties above USD2,500.c. Other Restricted Payments in an aggregate amount not to exceed USD15,000 (or the Dollar).

Equivalent there of since the Original Issue Date; provided that no Default shall have occurred and be continuing or would occur as a consequence of the relevant payment.

According to Management evaluation at 31 December 2017 and 2016 the Group was in compliance of the covenants.



21. oThER ACCoUnTS pAYABLE


Vacations and other payables to employees 6,011 4,503Workers profit sharing (Note 18) 5,902 - Worker’s pension fund payable 531 486Other 351 627 12,795 5,616

Other accounts payable are due within 12 months, not interest-bearing and are mainly denominated in Sol.

22. pRoVISIonS Contingent liability arising on a Legal business other claims combination provisions Total USD USD USD USD

At 1 January 2015 1,600 5,876 374 7,850Additional provisions - - 1,662 1,662Payments (200) - - (200)Accrued interest - 399 - 399Unused amounts reversed (853) - - (853)At 31 December 2015 547 6,275 2,036 8,858

At 1 January 2016 547 6,275 2,036 8,858Additional provisions 453 2,758 5,638 8,849Payments - (326) (1,202) (1,528)Accrued interest - 820 - 820At 31 December 2016 1,000 9,527 6,472 16,999

At 1 January 2017 1,000 9,527 6,472 16,999Additional provisions 911 - 9,604 10,515Payments (549) - (11,186) (11,735)Accrued interest - 170 - 170At 31 December 2017 1,362 9,697 4,890 15,949

b) Finance leases

The future minimum lease payments under finance leases together with the present value of net minimum lease payments are as follows: At 31 December 2017 2016 minimum present value minimum present value payments of payments payments of payments USD USD USD USD

Within one year 1,372 1,332 2,918 2,517After one year but nomore than five years 45 44 1,665 1,368Total minimum lease payments 1,417 1,376 4,583 3,885less amounts representingfinance charges (41) (698) Present value of minimum lease payments 1,376 3,885

20. TRADE ACCoUnTS pAYABLE


Suppliers 35,698 31,470Bills of exchange payable 2,329 4,111Payables to related parties (Note 35) 1,370 2,117 39,397 37,698

Trade accounts payables to suppliers are mainly in US Dollars, are due within 12 months and are not interest-bearing.

Bills of exchange in U.S. Dollars and Sol, amount to USD2,329 and USD0, respectively (at December 31, 2016 USD4,060 and USD51, respectively each currency), which are due within 3 months and bear interest at an annual average rate of 9%.

The average payment terms of trade payables are between 30 to 60 days.



For purposes of reconciliation with the information provided in the consolidated statement of cash flows, following is the movement of bank loans for the years ended 31 December:


Initial balance 40,850 36,120 59,603Accrued interest in the year 601 476 1,111Bank loans proceeds 88,240 102,650 128,383Bank loans payments (109,890) (97,920) 151,866Interest paid in the year (537) (476) (1,111)Closing balance 19,264 40,850 36,120

Bank loans represent promissory notes with maturities up to 90 days, which were obtained for working capital. These loans bear fixed annual interest rates that are between 1.40 per cent and 4.19 per cent (between 1.59 per cent and 3.29 per cent in 2016 and 1.55 per cent and 4.50 per cent in 2015). As of 31 December 2017 these loans are guaranteed by lands of the Group for the similar amounts of the loans, as of 31 December 2016 and 2015 these loans were guaranteed by inventories and lands of the Group for the similar amounts of the loans.

24. USInESS ComBInATIon

Congelados y frescos S.A.C.

On 31 March 2016, Marinazul S.A. (subsidiary of the Company) acquired 100 % of the share capital of Congelados y frescos S.A.C, through the purchase of the 100% of the shares of Marante Investment S.A. and Palmas Hill Investment S.A.C. (holdings entities) for non-cash consideration of USD3,567. The net assets value of the acquired entity at the purchase date amounted to USD3,472, giving rise to the recognition of goodwill of USD95. The acquisition of Congelados y Frescos S.A.C. took place during 2016 with an exchange of our subsidiary Santa Angela S.A., which was initially recorded as an asset (mainly lands) as of December 31, 2015. The fair value of the transferred assets was USD3,567.The acquired entity was engaged in processing of seafood’s products on local markets. As a result of the acquisition, the Group is expected to increase its entire supply chain: purchasing, processing and distribution.

The following table summarizes the consideration paid by Marinazul S.A., the fair value of assets acquired and liabilities assumed at the acquisition date.


Non-current 8,574 8,180Current 7,375 8,819Total 15,949 16,999

New provisions correspond to bonus performance to employees and management for results of the year 2017 and legal claims for employee benefits were increased by USD362.

The additional provision in business combination in 2016, is explained by the acquisition of Congelados y Frescos S.A.C. (Note 24), and the payment corresponds to Refrigerados Iny S.A. for tax contingencies (Note 24). There were previously recognized contingent liabilities (tax and labour related contingencies) for an amount of USD6,275 arising from the acquisition of Corporación Refrigerados INY S.A. and Pesquera ABC in 2014.

23. BAnK LoAnS


Loans Banco Continental (Peru) 17,700 17,700Banco Scotiabank (Peru) - 8,150Banco Interbank (Peru) - 10,000Banco Santander (Peru) 1,500 - Multibank, Inc (Panama) - 5,000Accrued interest to pay 64 - 19,264 40,850



Recognised amounts of identifiable assets acquired and liabilities assumed

USD

Cash and cash equivalents 155Trade accounts receivable 231Inventories 140Prepaid expenses 20Property, plant and equipment 6,551Trade accounts payable (100)Other accounts payable (3,022)Deferred income tax (503)Total identifiable net assets 3,472

Goodwill 95Purchase consideration (3,567)

Cash and cash equivalents of acquired subsidiary (155)Non-cash consideration (3,412)

The fair value of trade and other accounts receivable is USD231. The gross contractual amount for trade and other receivables due is USD250, of which USD19 is expected to be uncollectible.

A contingent liability of USD29 has been recognized for several tax-related contingencies and USD2,729 has been recognized for another contingent provisions of long term.

The revenue included in the consolidated statement of comprehensive income since 31 March 2016 contributed by Congelados y frescos S.A.C. was USD1,631. Congelados y frescos S.A.C. also contributed profit of USD146 over the same period.

Had Congelados y frescos S.A.C. been consolidated from 1 January 2016, the consolidated statement of income would show total pro-forma revenue for the acquired business of USD1,962 and loss of USD43.

25. REVEnUE

Revenue represents the sale of fresh, preserved and frozen biological products.

For the years ended 31 December, comprise the following (Note 5):

2017 2016 2015 USD USD USD

Blueberries 121,064 100,202 48,071Avocado 122,042 53,413 53,678Seafoods 82,595 70,173 57,156Grapes 6,116 13,583 16,844Mangos 21,006 21,495 23,082Peppers 2,113 4,170 21,214Tangerine 8,326 8,206 7,293Other 5,178 5,449 9,299 368,440 276,691 236,637

26. CoST oF SALES 2017 2016 2015 USD USD USD

Cost of inventories recognized as expenses (Note 12) 126,146 104,424 114,604Personnel expenses (Note 29) 55,833 47,937 44,987Depreciation of property, plant and equipment (Note 6) 11,882 9,816 6,526Write-off of property, plant and equipment (Nota 6) 327 - - Depreciation of bearer plants (Note 6) 16,366 19,578 17,761Write-off of bearer plant (Note 6) 13,895 - 330Impairment of fixed assets (Note 6) - 2,501 - Custom duties refund (5,354) (4,552) (5,890) 219,095 179,704 178,318

In Peru, Camposol S.A., Marinazul S.A. and Corporación Refrigerados INY S.A. are beneficiaries of a simplified procedure for custom duties refunding (Drawback), at a rate of 4.0% of FOB value of exports.

The cost of inventories recognized as expenses include amortization of software of USD69 for 2017 (USD11 for 2016) (Note 8).

Personal expenses include USD 5,118 of workers profit sharing.

At 2017 the Group recognized in cost of sale a reversal in the book value of the inventories by carrying them at the net realizable value amounting to USD1,049, and a reduction in book value of USD1,906 in 2016 and a reduction in book value of USD2,482 in 2015 (Note 12 and 32).



27. SELLInG ExpEnSES

Selling expenses for the years ended December 31 comprise the following: 2017 2016 2015 USD USD USD

Freight 17,211 12,675 13,643Exportation custom duties 8,146 5,512 5,531Personnel expenses (Note 29) 4,196 3,586 4,003Selling commissions 812 745 389Analysis and quality control 434 468 545Consulting services 785 713 879Travel and business expenses 750 774 931Insurances 1,201 1,913 1,119Subscriptions to associations 233 256 240Other expenses 965 940 986 34,733 27,582 28,266

Personal expenses include USD 53 of workers profit sharing.

28. ADmInISTRATIVE ExpEnSESAdministrative expenses for the years ended December 31 are comprised of the following: 2017 2016 2015 USD USD USD

Personnel expenses (Note 29) 19,764 15,015 11,832Professional fees 4,342 2,873 2,517Statutory auditors’ remuneration 107 114 56Audit services and others 452 336 279Depreciation (Note 6) 700 633 881Travel and business expenses 835 510 768Transport and telecommunications 277 843 923Directors’ remuneration (Note 29) 286 418 394Renting of machinery and equipment 1,516 1,391 2,428Amortization of computer software (Note 8) 754 712 537Materials and supplies 558 634 889Maintenance 453 623 745Insurances 84 73 233Utilities 92 93 95Other taxes 92 110 150Other expenses 2,516 2,232 2,177 32,828 26,610 24,904

The total fees charged by the Company’s statutory auditor for the statutory audit of the annual financial statements of the Company for the year ended 31 December 2017 amounted to USD107 (2016: USD114 and in 2015: USD56) The other expenses stated above includes fees of USD49 (2016: USD65 and in 2015: USD125) for tax consultancy services and other non-audit services charged by the Company’s statutory audit firm.

Personal expenses include USD 731 of workers profit sharing.

29. pERSonnEL ExpEnSES

2017 2016 2015 USD USD USD

Salaries and wages 68,134 58,731 51,427Vacations 2,682 1,954 2,156Other employees’ benefits 7,235 5,015 6,580Other expenses 2,028 1,256 1,053 80,079 66,956 61,216

Average number of staff employed duringthe year 13,993 11,761 11,457

Personnel expenses are allocated as follows:

2017 2016 2015 USD USD USD

Cost of sales (Note 26) 55,833 47,937 44,987Selling expenses (Note 27) 4,196 3,586 4,003Administrative expenses (Note 28) 19,764 15,015 11,832Directors’ remuneration - (Note 28) 286 418 394 80,079 66,956 61,216



30. oThER InComE AnD ExpEnSES

2017 2016 2015 USD USD USD

other income Reversal of legal claims (Note 22) - - 853Recovery of written-off accounts receivable (Note 14) 115 - 121Gain on sale of property, plant and equipment (Note 32) - - 6,697Indemnity of insurance 797 547 522Services to third parties - 627 784Gain from recovery of escrow 44 1,991 - Other 221 1,275 175 1,177 4,440 9,152

other expenses Obsolescence of inventories (Notes 12) (360) (3,576) (3,665)Contingencies (Notes 22) (362) (500) - Donations and samples (181) (270) (104)Impairment of trade and other receivable (Notes 13 and 14) (344) (1,376) (299)Impairment of goodwill (Note 8) - (8,472) - Write-off of blueberry project - - (627)Write-off of other assets (11) (958) (342)Write-off of fixed assets (Note 6) (327) - - Default interest and fines (11) (106) (123)Loss on sale of property, plant and equipment (Note 32) - (746) - Loss on sale of supplies (915) (793) (825)Other (275) (985) (1,840) (2,786) (17,782) (7,825)

31. FInAnCIAL InComE AnD CoSTS 2017 2016 2015 USD USD USD

Income Gain in investment funds 28 154 - Interest (Note 15) 82 20 13 110 174 13

Costs Interest on bonds and bank loans (18,461) (22,738) (22,415)Interest on finance leases (766) (777) (1,311)Tax on financial transactions (851) (1,131) (1,035)Interest on accounts payable to suppliers (14) (18) (57)Loss in investment funds - - (57)Other finance costs (116) (201) (94) (20,208) (24,865) (24,969)



32. CASh GEnERATED FRom opERATIonS

note 2017 2016 2015 USD USD USD Reconciliation of profit for the year to net cash from(used in) operating activities:Profit (loss) before income tax 87,199 10,659 (4,712)Depreciation 6 28,948 37,717 39,430Amortization 8 823 723 648Impairment of accounts receivable 13 and 14 344 1,376 299Obsolescence of inventories 12 360 3,576 3,665Write off of avocado, grapes and tangerine 13,895 - 330Net gain in change of fair value of biological assets 9 (27,797) (7,624) (18,737)(Loss) gain on sale of fixed assets 30 327 746 (6,697)Operating loss for the year from discontinued operations (999) (19,450) (15,005)(Loss) gain attributable to associate 7 390 (728) (254)Net exchange difference (337) 1,430 (695)Net realizable value of inventories 12 and 26 (1,049) (1,906) 2,482)Workers’ profit sharing 5,902 - - Impairment of goodwill 8 - 8,472 - Reversal of unused contingencies 22 - - (853)Impairment of fixed assets 6 and 26 - 2,501 - Increase (decrease) of cash flows from operations due to changes in assets and liabilities:Trade accounts receivable (6,833) 2,777( 4,879Other accounts receivable and current tax assets 1,883 3,606( 706Inventories (2,361) 16,317( 41,987Prepaid expenses 182 (18) 172Trade accounts payable 1,699 3,343( (13,960)Other accounts payable (1,409) 7,006 (1,368)Net cash generated from operating activities 101,167 70,523 32,287

33. InComE TAx ExpEnSE

a) According to the Peruvian tax legislation in force the income tax is determined on separate basis. Management has determined the taxable income under the general income tax regime, which requires adding to and deducting from the result derived from the accounting records maintained in Sol those items considered as taxable and non-taxable, respectively.

As established under Law No.27360 dated 30 October 2000, that amends the Income Tax Law of individuals and legal persons engaged in the growing of crops and /or cattle as well as in industrial agriculture, the applicable income tax rate is 15%. This income tax regulations is applicable until 31 December 31 2021.

The standard rate of Cyprus income tax for 2017, 2016 and 2015 is 12.5% and for the Peruvian subsidiaries, it ranges between 29.5% and 15% for 2017, and 28% and 15% for 2016 and 2015.

2017 2016 2015 USD USD USD

Current income tax 10,068 411 102Deferred income tax (Note 17) 1,935 7,674 3,505Income tax expense 12,003 8,085 3,607

Income tax expense is attributable to:Expense from continuing operations 12,087 8,802 4,204Profit from discontinued operation (84) (717) (597) 12,003 8,085 3,607

b) For the years 2017, 2016 and 2015 the income tax credited to income differs from the theoretical amount that would arise using the tax rate applicable to profit before workers’ profit sharing and income tax as follows:

2017 2016 2015 USD USD USD

Profit (loss) before income tax 87,199 10,659 (4,712)Relevant theoretical income tax 15% 13,080 1,599 (707)Income not subject to tax (1,739) (973) (1,259)Expenses not deductible for tax purposes 546 753 473Impairment and expiration of tax loss - - 2,506Impairment of goodwill - 1,270 - Foreign exchange differences 747 3,178 1,411Impact of change in tax rate - 2,677 - Difference in tax rates fromother jurisdictions 297 502 1,052Income tax from discontinued operations (84) (717) (597)Other (844) (204) 728Income tax expense / (credit) 12,003 8,085 3,607

At December 31, 2015, deferred income tax assets have been impaired due to the maturity of tax losses which amount to USD2,506. No impairment in 2017 and 2016 was recorded, since the Group recover tax loss with fiscal earnings in 2017 and 2016.



c) On December 10, 2016 Legislative Decree No.1261 was enacted amending the income tax rate with an increase in the income tax rate applicable to corporate income earners from 28% to 29.5% effective from fiscal 2017. Also, such a decree sets forth a decrease in the income tax rate applicable to the income tax rate applicable to corporate income earners, from the current rate of 6.8% to 5% for dividends agreed or paid out in fiscal year 2017.

d) The Peruvian Tax Authority may review and, if required, amend the income tax or the tax loss carry forward determined by the Company and its subsidiaries for four years, as from January 1 of the following year in which the tax return of the corresponding income tax was filed (years open to examination). Since discrepancies may arise over the proper interpretation of the tax law applicable to the Group, it is not possible to anticipate at this date whether additional tax liabilities will arise as a result of eventual examinations. Additional tax, fines and interest, if any, will be recognized in results of the period in which the disagreement with the Peruvian tax authorities arises and they will be probable to be settled. Management considers that no significant liabilities will arise as a result of any eventual tax examinations.

The following table shows the income tax and value-added tax returns subject to review by the Tax Authority corresponding to the Company and its subsidiaries.

Years open to tax review Company Income Tax Value Added Tax Camposol Holding PLC 2009-2017 - Camposol S.A. 2012-2017 December 2013-2017 Prodex S.A.C. 2012-2017 January 2017 Vegesol S.A. 2012-2017 December 2013-2017 Marinasol S.A. 2012-2017 March 2017 Muelles y Servicios Paita S.A.C. 2012-2017 December 2013-2017 Nor Agro Perú S.A. 2012-2017 December 2013-2017 Marinazul S.A. 2012-2017 December 2013-2017 Camposol Europa S.L. 2012-2017 December 2013-2017 Campoinca S.A. 2012-2017 December 2013-2017 Camposol Fresh B.V. 2012-2017 December 2013-2017 Domingo Rodas S.A. 2012-2017 December 2013-2017 Camarones S.A.C. 2012-2017 December 2013-2017 Corporación Refrigerados YNI S.A. 2012-2017 December 2013-2017 Pesquera ABC S.A.C. 2012-2017 December 2013-2017 Pacifico Azul S.A.C. 2012-2017 December 2013-2017 Inversiones Agrícolas Inmobiliarias S.A.C. 2014-2017 December 2014-2017 Congelados y Frescos S.A.C. 2012-2017 December 2013-2017 Persea, Inc 2012-2017 December 2013-2017 Camposol Fresh U.S.A Inc 2012-2017 December 2013-2017 Camposol Specialities, Inc 2012-2017 December 2013-2017 Siboure Holding Limited 2017 December 2017 Blacklocust S.A.C. 2018 December 2017 Grainlens Limited 2017 December 2017 Madoca Corp. 2017 December 2017 Camposol Fresh Foods Trading Co., Limited 2017 December 2017 Camposol Foods Trading (Shanghai) Co., Ltd. 2017 December 2017 Camposol Colombia SAS 2017 December 2017

34. ConTInGEnT LIABILITIES

As of 31 December 2017 the Group has labor-related contingencies and other claims amounting to USD2,144 (USD2,354 in 2016). No provision has been made since legal advice indicates that it is not probable that a significant liability will arise.

35. TRAnSACTIonS WITh ShAREhoLDERS AnD oThER RELATED pARTIES

a) Transactions

The main transactions carried out between the Group and its related parties are as follows:

2017 2016 2015 USD USD USD

i) Associate Empacadora de Frutos Tropicales S.A.C. Sale of services 1 3 3Sale of finish product 4 - - Purchase of services 2,751 3,149 3,643

ii) Entities related to Directors Gestion del pacifico S.A.C Sale of services - - 44Purchase of services and others - - 194Purchase of fixed assets - - 43

Gestora del pacifico S.A.C Sale of services 146 77 - Sale of finish product 1 - - Purchase of services and others 969 861 - Purchase of fixed assets - 291 -

Asoc. para la Certif. de productoresAgricolas proveedoresCamposol Purchase of raw material 51 111 28

Desarrollo Inmobiliario mar Verde S.A.C. Sale of fixed assets - 13 8,951



2017 2016 2015 USD USD USD

Integrity packaging S.A.Sale of services 1 2 1Purchase of services - 25 371Purchase of supplies 2,651 1,574 -

Veggie pizza S.A.C.Sale of services - 23 - Purchase of services - 3 -

iii) Shareholders Capital contibution:Generación del Pacífico S.L. - 4,130 - Other shareholders - 870 -

Dividend distribution: Generación del Pacifico S.L. - 16,519 - - Other shareholders 3,481 - -

b) Amounts due from/to related parties

Other accounts receivable (Note 13)

At December 31 2017 2016 USD USD

i) Associate Empacadora de Frutos Tropicales S.A.C. 1 29

ii) Entities related to Directors Gestión del Pacífico S.A.C. (*) - - Desarrollo Inmobiliario Mar Verde S.A.C. 45 45 46 74

Trade payables (Note 20)

i) AssociatesEmpacadora de Frutos Tropicales S.A.C. 297 1,072

ii) Entities related to Directors Gestión del Pacífico S.A.C. (*) - -

At December 31 2017 2016 USD USD

Gestora del Pacífico S.A.C. (*) - 93Asoc. Para la Certif. de Productores (*)Agricolas Proveedores Camposol (*) - 65Integrity Packaging S.A. (*) 1,073 887 1,370 2,117

c) Compensation of the Group key management

2017 2016 2015 USD USD USD Short-term employee benefitsSalaries of key management (excludingremuneration of Directors) 7,161 7,228 3,288Remuneration of Directors (all of which are non - executives) 286 418 280

Post-employment benefitsEmployees’ severance indemnities of Key management 152 202 -

There were no other post-employment benefits, long-term benefits, termination benefits and share-based payments in 2017 and 2016.

There are no management services provided by a related party to the Group

36. non-CURREnT ASSETS hELD FoR SALE AnD DISConTInUED opERATIonS

The assets related to preserved asparagus and artichokes have been presented as held for sale following the approval of the group’s management and shareholders on November 2015 to sell these assets. On December 2015, the Group sold its production plant in the city of Piura for USD350. The transaction was completed by the first quarter of 2016. As a result the operations of artichokes ceased in 2016 and has been reflected as a discontinued operation. In 2016, the Board decided to discontinue all of the operations of Asparagus. By the end of 2016 the Group retired the crops of asparagus and ceased the production process and industrial activity of all the asparagus line; lands and other property,



plant and equipment were transferred to other segments (mainly blueberry), and the personnel and management were retired. The results from operations of this segment is shown under discontinued operations in the consolidated statement of comprehensive income.

The assets related to asparagus and artichokes have been presented as held for sale.

At 31 December 2017 2016 USD USD Assets of disposal group classified as held for saleInventory - 2,334 - 2,334

As of December 31, 2016 the amount presented as assets held for sale primarily reflects remaining inventory of asparagus, which was sold in the first half of 2017. The related revenue from sale of USD1,449 and gross loss of USD885 was not considered significant.

A summary of the results of artichoke and asparagus is shown below:

2017 2016 2015 USD USD USD profit and lossRevenue 1,449 23,856 52,692Cost of sales (2,334) (26,505) (39,499)Depreciation of equipment (Note 6) - (2,567) (4,733)Depreciation of bearer plant (Note 6) - (5,123) (9,529)Changes in fair value of biological assets (Note 9) - 6,339 (1,979)Gross loss (885) (4,000) (3,048)

Administrative expenses (78) (186) - Selling expenses (36) (720) (2,568)Other income - 1,540 367Other expenses - (9,745) (11,735)Operating loss (999) (13,111) (16,984)

Loss before income tax (999) (13,111) (16,984)Deferred income tax 84 717 597Loss for the year from discontinued operations (915) (12,394) (16,387)

Cash flowsOperating activities 1,291 (3,871) 9,934Investing activities - 2,156 350 1,291 (1,715) 10,284

37. CommITmEnTS AnD GUARAnTEES

Commitments and guarantees in respect of the bonds are set out in Note 19.

38. BASIC AnD DILUTED EARnInGS pER ShARE

Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Group by the weighted average number of ordinary shares in issue during the year.

2017 2016 2015

Profit (loss) from continuing operationsattributable to owners of the Company (USD) 75,112 1,857 (8,916)Profit (loss) from discontinued operationsattributable to owners of the Company (USD) (915) (12,394) (16,387)Profit (loss) attributable to owners of the Company (USD) 74,197 (10,537) (25,303)

Weighted average number of ordinary outstanding shares (thousands) 65,850 65,677 64,808Basic earnings (losses) per share from continuing operations (expressed in USD) 1.14 0.03 (0.14)Basic earnings (losses) per share from discontinued operations (expressed in USD) (0.01) (0.19) (0.25)Basic earnings (losses) per share(expressed in USD) 1.13 (0.16) (0.39)

In March 2016, the Company issued 521,376 Ordinary shares at a nominal value of €0.01 (USD0.011) each at a premium of USD4,994.

At the end of 2016 the total outstanding number of ordinary shares is 32,925,196 (average 32,838,300) and at the end of 2015 the total outstanding and average number of shares is 32,403,820 with a par value of €0.01 per share. All shares issued have been fully paid-in.

On December 14, 2017, the shareholders of the Company approved by unanimous written consent to effect a 2-to-1 stock split of the Company’s outstanding Ordinary Shares from 32,925,197 Ordinary Shares to 65,850,394 Ordinary Shares (the “Stock Split”). The nominal value of each Ordinary shares changed as a result of the Stock Split from USD0.011797 per Ordinary Share to USD0.0058985 per Ordinary Share. The Stock-Split was undertaken with the view of increasing liquidity in the secondary



market, should one develop, for the Company’s Ordinary Shares after the settlement of its proposed initial public offering. The Stock Split became effective as of the date of its approval. In accordance with the guidance per IAS 33, 2015 and 2016 earnings per share have been restated to reflect the impact of the stock split.

Diluted earnings per share Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Group has no transactions which are dilutive.

39. RESTRICTIonS AnD pAREnT CompAnY FInAnCIAL InFoRmATIon

The covenants under the Indenture of the 10.50% Senior Secured Notes due 2021 (issued in 2016) limit, inter alia, the ability of Camposol Holding PLC (formerly Camposol Holding Limited) and its Restricted Subsidiaries (as such term is defined under the Indenture) to declare or make a Restricted Payment (as such term is defined under the Indenture).

The Parent Guarantor and its Restricted Subsidiaries will not be subject to the following provisions of the Indenture:

i) Change of control: Putable at 105.25% of principal plus accrued and unpaid interest.ii) Limitation on indebtedness and Disqualified Stock,iii) Limitation on Restricted Payments.

Similarly, the Mid-Term Loan with Interbank also contains customary negative covenants that generally limit the ability of Camposol S.A. of making Distributions as such term is defined under the Mid-Term Loan, which include:

a) The payment of any dividends or distributions declared, paid or made by a Restricted Subsidiary payable, on a pro rata basis or on a basis more favorable to the Parent Guarantor to all holders of any class of Capital Stock of such Restricted Subsidiary.

b) Provide indebtedness to related parties above USD2,500.c) Other Restricted Payments in an aggregate amount not to exceed USD15,000 (or the Dollar Equivalent there of) since the

Original Issue Date; provided that no Default shall have occurred and be continuing or would occur as a consequence of the relevant payment.

Considering that such covenants restrict the flow of cash from the Restricted Subsidiaries to Camposol Holding PLC (formerly Camposol Holding Limited) in the form of dividends and other payments, the stand-alone condensed statements of financial position, statements of comprehensive income, statements of change in equity and statements of cash flows of Camposol Holding PLC (formerly Camposol Holding Limited) are included below.

Camposol holding pLC (formerly Camposol holding Limited)

Financial information of Parent CompanyCondensed statement of financial position(In thousand of U.S. Dollars)


AssetsNon-current assetsInvestments in subsidiaries 216,800 216,800Total non-current assets 216,800 216,800

Current AssetsAccounts receivable from subsidiaries 3,302 253Prepaid expenses - - Other accounts receivable 1,850 1,818Cash and cash equivalents 1,586 902Total current assets 6,738 2,973Total assets 223,538 219,773

Equity and liabilitiesEquityShare capital 388 513Share premium 217,312 217,312Other reserves (132) (132)Accumulated losses 443 (1,088)Total equity 218,011 216,605 Current LiabilitiesAccounts payable subsidiaries 5,432 3,100Trade accounts payable 18 16Other accounts payable 77 52Total liabilities 5,527 3,168Total equity and liabilities 223,538 219,773



Financial information of parent CompanyCondensed statement of comprehensive incomeFor the year ended 31 December 2017, 2016 and 2015(In thousand of U.S. Dollars

2017 2016 2015 USD USD USD

Administrative expenses (1,509) (1,277) (602)Other income 44 1,818 - Other expenses (133) (1) - Foreign exchange differences 110 (28) 91 (1,488) 512 (511)

Financial income 24,230 4 - Financial cost - (1) -(Loss) / profit before income tax 22,742 515 (511)Income tax (1,211) - -(Loss) / profit and total comprehensive (loss) profit for the period / year (21,531) 515 (511)

Financial information of parent CompanyCondensed statement of changes in equityFor the year ended 31 December 2017, 2016 and 2015(In thousand of U.S. Dollars

Share Share other Accumulated Total note capital premium reserves losses equity USD USD USD USD USD

Balanced as of 1 January 2015 507 212,318 (132) (1,092) 211,601Comprenhensive income:Profit for the year - - - (511) (511)Total comprehensive income - - - (511) (511)Transactions with owners:Proceeds from issues of shares 9 - - - - -Total transactions with owners - - - - -Balance as of 31 December 2015 507 212,318 (132) (1,603) 211,090

Balanced as of 1 January 2016 507 212,318 (132) (1,603) 211,090Comprenhensive income:Profit for the year - - - 515 515Total comprehensive income - - - 515 515Transactions with owners:Proceeds from issues of shares 9 6 4,994 - - 5,000Total transactions with owners 6 4,994 - - 5,000Balance as of 31 December 2016 513 217,312 (132) (1,088) 216,605

Comprehensive incomeProfit for the yearTotal Comprehensive income (loss) - - - 21,531 21,531Transactions with owners: - - - 21,531 21,531Effects of changes in currency denomination of shares (125) - - - (125)Dividends distribution - - - (20,000) (20,000)Total comprensive loss (125) - - 20,000 (20,125)Balances as of 31 December 2017 388 217.312 (132) 443 218,011



Financial information of parent CompanyCondensed statement of cash flowsFor the year ended 31 December 2017, 2016 and 2015(In thousand of U.S. Dollars

note 2017 2016 2015 USD USD USD

Cash flows from operating activiesOthers payments (3,862) (4,107) (1)Others collections 23,046 9 -Net cash used in operating activities 19,184 (4,098) (1)

Cash flows from financing activitiesDividends paid (20,000) - - Loans from related parties 1,500 - - Proceeds from issues of shares - 5,000 -Net cash generated from financial activities (18,500) 5,000 -

Net increase in cash and cash equivalents 684 902 (1)Cash and cash equivalents at beginning of period / year 902 - 1Cash and cash equivalents at end of period / year 8 1,586 902 -

Reconciliation of loss before income taxfor the period / year to net cash used inoperating activities:(Loss) profit before income tax 22,742 515 (511)Decrease in accounts receivable from subsidiaries 6 (3,049) 5 4Net cash used in operating activities (126) - - Increase / (decrease) in accounts payable to subsidiaries 9 832 (2,663) 513Increase / (decrease) in other accounts receivable (32) (1,818) - Increase / (decrease) in trade accounts payable 2 (1) (14)Increase / (decrease) in other accounts payable 10 (1,185) (136) 7Net cash from / (used in) operating activities 19,184 (4,098) (1)

Business activity Camposol Holding PLC (formerly Camposol Holding Limited) is the holding company of the Camposol Group (hereinafter the “Group”). The principal activities of Camposol Holding PLC is the holding of investments in entities involved mainly in agricultural activities in Peru.

Basis of preparation The parent company only financial information of Camposol Holding PLC (formerly Camposol Holding Limited), presented above, is prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. Accounting policies adopted in the preparation of this condensed parent company only financial information

are the same as those adopted in the consolidated financial statements and described in Note 2 - Summary of significant accounting policies, except that the cost method has been used to account for investments in subsidiaries.

Investments in subsidiaries Subsidiaries are all entities (including structured entities) over which the Camposol Holding PLC (formerly Camposol Holding Limited) has control. Camposol Holding PLC controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The entity has power over the investee where the investor possess the right that gives it the current ability to direct the relevant activities. Camposol Holding PLC (formerly Camposol Holding Limited) carries the investments in subsidiaries at cost less any impairment in its separate financial statements.

Accounts payable to subsidiaries corresponds to administrative expenses paid by subsidiaries on behalf of Camposol Holding PLC (formerly Camposol Holding Limited).

As at 31 December 2017 there were no material contingencies at Camposol Holding PLC.

Dividends During 2017, Siboure Holdings Limited distributed dividends to Camposol Holding PLC (formerly Camposol Holding Limited) for a total amount of USD24,000.

40. EVEnTS AFTER ThE REpoRTInG pERIoD

On March 6, 2018, Marinazul S.A. (subsidiary of the Group) acquired the non-controlling interest of Corporación Refrigerados Iny S.A. (17,201,964 ordinary shares) and Pesquera ABC S.A.C. (500,000 ordinary shares) both at nominal value of PEN 0.001 for a cash consideration of US$4.5 million obtaining 100% of the shares of both companies. The difference between the amount paid and the carrying value of the non-controlling interests acquired will be recognized as either a contribution or distribution from equity.

On April 10, 2018, Camposol Holding Limited acquired approximately 1,518 Hectares located in El Salto, Uruguay from a third party for US$18.5 million. These lands are destined for the cultivation of tangerines from which 500 hectares are productive.

No other material events occurred after the end of the financial year.

2017 AnnuAlREPORT

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2017 AnnuAl REPORT - Camposol€¦ · Annual Report 2017 | 6 - 7 2 thE 20th AnnIvERsARy of CamPOsOL CAMPOSOL started in 1997 as a dream of transforming a desert into a large “green

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