A N N U A L  R E P O R T  R O Y A L  G R E E N L A N D  A / S
JANUARY 1ST 2017 - DECEMBER 31ST 2017
CVR-No. 13645183
The annual report has been prepared and approved by the ordinary Annual General Meeting on May 16th 2018
Rebekka BisgaardChairman
ANNUAL REPORT Royal Greenland A/S 2017 January 1st - December 31st 
ROYAL GREENLAND A/S - 201754ANNUAL REPORT
REPORT 
The year in figures - 6
Statement by the Management on the Annual Report - 8
Auditors' report - 8
Financial highlights and key ratios for the Group - 10
A strategy that works: continued growth at Royal Greenland- 13
Financial statements - 14
Good sales despite turbulent currency markets - 16
New products and innovation - 22
Value optimisation in fisheries and production - 25
Quality management throughout the value chain - 34
Risks - 36
Corporate Social Responsibility / Sustainability - 38
CONSOLIDATED AND ANNUAL ACCOUNTS
Accounting policies  - 56
Income statement January 1st 2017  – December 31st 2017 - 61
Balance sheet December 31st - 62
Statement of changes in equity - 64
Consolidated cash flow statement   January 1st 2017  – December 31st 2017 - 66
Notes to the financial statements  - 67
Supervisory and Executive Board - 84
Corporate Governance - 85
Company details - 86
Group chart - 87
Production units - 88
Royal Greenland's fleet - 96
The pictures in the annual report mainly derive from  Royal Greenland’s internal archive 
ANNUAL REPORT6ROYAL GREENLAND A/S - 20177
THE GROUP'SVALUE CHAIN
- THE YEAR IN FIGURES
We fish in large areas of the North Atlantic and in the Arctic, with our own fleet and in collaboration with independent fishermen.
At our factories and landing facilities, local fishermen and our own fleet land their daily catches of fish and shellfish.  The raw materials are processed and packed.
The supply of high-quality products is the core of our business. We take responsibility for our products, from sea to table, and hold certifications in accordance with  international standards.
We have a well-consolidated sales and distribution network to consign products from various locations in Greenland,  Newfoundland, Quebec, Denmark and  Germany to customers throughout the world.
Our products are used in many different cultures, with various flavour preferences, and end up as healthy, tasty meals in homes, canteens and restaurants all over the world.
FISHERYPRODUCTIONQUALITYSALESIN THE KITCHEN
Polystyrene trays for prawns in brine have been replaced with carton trays, equivalent to 5 lorries, instead of30
1,963fishermen have landed their  catches in Greenland  to Royal Greenland
In Newfoundland 12,500,000kg of fish and shellfish were landed by local fishermen
753 employees in Greenland have  upgraded their qualifications             
by attending 179 qualifying course days
The salt content of prawns in brine has been reduced by  9% for the benefit  of public health
6,209,813 
Greenland halibut heads have ended up in tasty Asian soups and dishes
111,448 tonnes of finished products  were sold to customers in 48  countries across the world
Profit for the year  before tax253 
in DKK million
Total revenue for Royal Greenland amounted to 5,613 DKK million, of which99.4%
is exported
51skilled trainees and apprentices  are taking their training  at Royal Greenland’s factories  and offices around the world
The Group's many sales units have issued 
 82,234 invoices to 1,533  customers
INDEPENDENT AUDITORS’ REPORT 
To the shareholder of Royal Greenland A/S We have audited the Annual Report of Royal Greenland A/S for the financial year January 1st 2017 – December   31st 2017, comprising the Management’s Review, accounting policies, income statement, balance sheet, statement of changes in equity and notes for the Group as well as for the parent company, and the consolidated cash flow statement. The annual report is prepared in accordance with the Danish Financial Statements Act.  
Management’s responsibility Management is responsible for the preparation of an Annual Report that gives a true and fair view in accordance with the Danish Financial Statements Act. Management is also responsible for the internal control which the management considers necessary in order to prepare an Annual Report that is free from material misstatement, whether due to fraud or error. 
On preparing the Annual Report, the management is responsible for assessing the Group and the company as a going concern; disclosing information concerning continued operations, where relevant; and preparing the Annual Report on the basis of the accounting policy concerning continued operations, unless the management either intends to liquidate the Group or companies, discontinue operations, or has no other realistic alternative to this.
The auditor's responsibility for  the audit of the annual report We conducted our audit in accordance with interna-tional auditing standards and the additional require-ments applying in Greenland. We are independent of the Group and the company, in accordance with the international ethical rules for auditors (IESBA's Ethical Rules) and the additional requirements applying in Greenland, just as we have fulfilled our other ethical obligations in relation to these rules and requirements.
Our aim is to achieve a high degree of certainty that the overall Annual Report is free from material mis-statement, whether due to fraud or error, and to pre-sent an auditor's endorsement with an opinion. A high degree of certainty is a high level of certainty, but does not guarantee that an audit performed in accordance with international auditing standards and the additional requirements applying in Greenland will always reveal any material misstatement. Incorrect information may arise as a consequence of fraud or error and may be considered to be material if it can reasonably be expected that it may individually or overall influence the financial decisions taken by users of the accounts on the basis of the Annual Report.
As an element of the audit, which is performed in accordance with international auditing standards and the additional requirements applying in Greenland, we perform expert assessments and maintain professional scepticism during the audit. In addition: 
•  We identify and assess the risk of material misstate-ment in the Annual Report, whether due to fraud or error, design and perform audit procedures in reaction to these risks, and obtain audit evidence that is sufficient and appropriate to form a basis for our opinion. The risk of failing to discover material misstatement due to fraud is higher than for ma-terial misstatement due to errors, since fraud may include conspiracy, forgery of documents, deliberate omissions, misrepresentation or internal control failure. 
•  We obtain an understanding of the internal control with relevance for the audit, in order to perform audit procedures that are appropriate in the circum-stances, but not to express an opinion concerning the effectiveness of the company's internal control. 
•  We consider whether the accounting policies applied by the management are appropriate, and whether the accounting estimates and related information prepared by the management are reasonable.
•  We conclude whether the management's presentation of the Annual Report according to the accounting policy of continued operation is reasonable, and whether on the basis of the audit evidence obtained there is significant uncertainty concerning events or circumstances that may lead to significant doubt concerning the ability of the Group or company to continue operations. If we conclude that a significant uncertainty exists in our audit endorsement, we must draw attention to information about this in the Annual Report or, if such information is not sufficient, modify our opinion. Our opinion is based on the audit evidence achieved up to the date of our audit endorsement. Future events or circumstances may entail, how-ever, that the company cannot continue operations. 
•  We consider the overall presentation, structure and content of the Annual Report, including the notes, and whether the Annual Report reflects the underlying transactions and events in such a way as to present a true and fair view thereof.
•  We obtain sufficient and adequate audit evidence for the financial information for the companies or business activities in the Group, in order to express an opinion concerning the consolidated accounts. We are responsible for the management, super-vision and performance of the consolidated audit. We hold sole responsibility for our audit opinion.
•  We assess whether the information in the Manage ment's Review is relevant and reliable, and whether the Management's Review provides the information necessary to give a true and fair ac-count of the development in the financial activities and circumstances of the Group and the company. 
We communicate with executive management con-cerning the planned scope and timing of the audit, as well as significant audit observations, including any material deficiencies in the internal control that we identify during the audit.
It is our opinion that the audit evidence we have ob-tained is sufficient and appropriate to provide a basis for our opinion. 
Our audit has not resulted in any qualification.
Opinion  In our opinion, the Annual Report gives a true and fair view of the Group’s and the Parent Company’s assets, liabilities and financial position at December 31st 2017 and of the results of the Group’s and the Parent Company’s activities and consolidated cash flows for the financial year from January 1st 2017 to December 31st 2017, in accordance with the Danish Financial Statements Act. 
NUUK, March 27th 2018
EY Grønland
Godkendt Revisionsanpartsselskab CVR-nr: 33 94 61 71
Claus Hammer-Pedersen -  State Authorised Public Accountant 
Jens Weiersøe Jakobsen -  State Authorised Public Accountant 
Statement by the Management  on the Annual Report 
The Supervisory and Executive Boards have today considered and adopted the Annual Report of Royal Greenland A/S for the financial year from January 1st 2017 to December 31st 2017.
The Annual Report has been presented in accordance with the Danish Financial Statements Act. We consider the accounting policies applied to be appropriate, so that the Annual Report provides a true and fair view of the Group’s and the Parent Company’s assets and liabilities, financial position and financial performance, and the consolidated cash flow.
We recommend the Annual Report for adoption by the Annual General Meeting.
Nuuk, March 27th 2018
Executive Mikael Thinghuus board Nils Duus Kinnerup 
 Bruno Olesen 
 Lars Nielsen
Supervisory Niels Harald de Coninck-Smith Board Jan H. Lynge-Pedersen 
 Pernille Fabricius 
 Sara Heilmann 
 Tim Ørting Jørgensen 
 Åse Aulie Michelet 
 Peter Korsbæk 
 Niels Ole Møller  
 Lars Berthelsen
ROYAL GREENLAND A/S - 20179ANNUAL REPORT8
ROYAL GREENLAND A/S - 201711
PROFIT/LOSS
BALANCE SHEET
RATIOS IN %
NUMBER OF EMPLOYEES
%31.12.1731.12.1630.09.1530.09.1430.09.13
EBIT-margin5.14.55.24.93.7
EBT-margin4.54.24.34.13.2
ROIC including goodwill9.18.211.28.17.6
Return on equity (ROE)11.29.910.713.310.9
Equity ratio32.732.132.933.228.4
Net interest-bearing debt / EBITDA3.23.22.82.84.2
31.12.1731.12.1630.09.1530.09.1430.09.13
Greenland1,3631,4011,202979910
Denmark198197195200227
Other countries9721,171759727920
Total2,5332,7692,1561,9062,057
KEY FIGURES - DKK mill.201720162014/152013/142012/13
Net revenue5,6135,5894,7214,9135,312
Profit from primary operations,  including associated companies 288251243242184
Net financials(35)(16)(39)(43)(16)
Net profit before tax253234204199168
Net profit for the year129109113136100
KEY FIGURES - DKK mill.31.12.1731.12.1630.09.1530.09.1430.09.13
Fixed assets1,6231,5871,2071,0681,191
Net working capital1,4441,5491,4401,1241,391
Equity1,4161,4141,2641,1661,066
Net interest-bearing debt1,3281,3471,1238971,407
Balance sheet total4,3584,5524,0123,5753,787
Investments in property, plant and equipment314355180163138
FINANCIAL HIGHLIGHTS  AND KEY RATIOS
Since the 2015/16 financial year was a 15-month period, the key figures are compared with the 2016 calendar year. These key figures, and other references in the report to financial information for the 2016 calendar year, are unaudited, but are prepared on the basis of internal financial reporting.
ANNUAL REPORT10
ROYAL GREENLAND A/S - 2017ANNUAL REPORT1312
Royal Greenland achieved a solid profit before tax of DKK 253 million in 2017. This is an increase in both revenue and profit, despite considerable foreign exchange challenges in the second half of 2017. The US dollar and pound sterling were particularly volatile, and all other things being equal, the foreign exchange development had a negative effect of DKK 80 million on the result.
The operating profit documents the strength and breadth of Royal Greenland's product and market portfolio, and the Company's unique position in the value chain, with a high degree of vertical integration, whereby Royal Greenland constantly strives to be closest to the resources, closest to the customer, and closest to the consumer.
There was strong development for shell-on prawns, Greenland halibut and snow crab, while the first nine months of the year were challenging for cooked & peeled prawns, due to low sales prices.
Royal Greenland's mission is:
"We sustainably maximise the value of the North At-lantic marine resources, for the benefit of our owner and the local communities in which we operate."
On the basis of our Greenlandic origin and our strong anchoring in Greenland's high-quality products, Royal Greenland is committed to developing and refining our core activities for the benefit of Greenland's society and our owner, the Government of Greenland, but also with due respect for the many local communities of which we are part, throughout the world. 
In its second year, the investment in Quin-Sea Fish-eries in Newfoundland again yielded a good return, 
strengthening the strategic platform. The joint venture with the Icelandic company, Isfelag, to develop pelagic fishing off East Greenland, did not contribute positively to the profit for the year, but has a more long-term perspective.
The company's historically large investment in repla-cing two trawlers, Sisimiut and Qaqqatsiaq, with two newbuildings, to be delivered in 2019, is running ac-cording to plan, and will strengthen Royal Greenland's primary fisheries activities.
As a consequence of the company's focus on the North Atlantic species, the factory in Koszalin, Poland, was sold as of 1 September 2017. This activity focuses on flatfish, breaded products and natural products that are not among Royal Greenland's core activities. As part of the transaction, a five-year cooperation agreement has been established with the buyer, A. Espersen A/S, whereby Royal Greenland continues to market, sell and distribute finished products from the factory.
The year was, regrettably, also affected by a serious event on 17 June, when a tsunami hit the northern sett-lements of Nuugaatsiaq and Illorsuit, with four facilities. Royal Greenland had a factory in Nuugaatsiaq. The entire settlement, and thus also our factory, were destroyed by the tsunami. The settlement will not be re-established, and currently a capacity expansion of other nearby faci-lities is being considered. In the short term, there will be sufficient capacity at the converted factory in Uumman-naq to compensate for the capacity lost in Nuugaatsiaq.
Our financial performance and our equity of DKK 1.4 billion, equivalent to an equity ratio  of 33%, document that Royal Greenland is a financially strong Group, with a robust strategic focus.
There was strong  development for shell-on prawns, Greenland halibut and snow crab, while the first nine months of the year were  challenging for cooked & peeled prawns, due to low sales prices.
A STRATEGY THAT WORKS: CONTINUED GROWTH AT ROYAL GREENLAND
Through its "North Atlantic Champion" strategy, Royal Greenland  has the ambition to be the world's leading supplier of seafood  wild-caught in the North Atlantic, primarily cold-water prawns,  Greenland halibut and snow crab.
Sound profit before tax
DKK million253
ANNUAL REPORT1514
At the end of 2017, Royal Greenland's interest-bearing debt was unchanged at DKK 1.3 billion, despite a high investment level in 2017. 
The working capital was reduced by DKK 105 million as a consequence of lower stocks. This development reflects high sales activity, as well as a number of initiatives to reduce tied-up capital.
Debt as a ratio of EBITDA is unchanged at 3.2%, and is thus still under full control. It will increase during the next few years, due to a high investment level, espe-cially the acquisition of the two new trawlers. This is in line with the North Atlantic Champion strategy, and will strengthen the Group's future earnings.
Cash flow after investment activities amounts to DKK 180 million. The total cash flow amounts to DKK (277) million. This is after deduction of the dividend payment of DKK 114 million and debt repayments of DKK 344 million.
Equity capital amounts to DKK 1,416 million, while the equity ratio is 33%. 
Pursuant to the company’s dividend policy, DKK 64 million has been allocated as dividend, corresponding to 50% of the net profit after tax for the year. 
No events have occurred after the close of the finan-cial year that affect the result or the balance sheet significantly.
OutlookThe fundamental expectations for 2018 are a contin-uation of the positive trend which the company has experienced during the past six years. 
However, the development in 2018 will be affect-ed negatively by higher fisheries taxes and lower exchange rate levels for USD, JPY and GBP in particular, which overall entails an income reduction of around DKK 100 million.
Together with the known quotas for prawn and halibut in Greenland, and expectations of lower volumes of raw fish in Newfoundland, higher fisheries taxes and the expected development in exchange rates will entail a lower profit before tax in 2018 than in 2017.
The principal risk factors are the development in sales prices, including the development in exchange rates, the development in quotas for prawn and snow crab in Newfoundland, and the terms of competition for Greenland halibut in Greenland, which in the latter case concerns both raw fish prices and volumes.
The development in the global economy and its impact on demand continues to be a significant source of uncertainty.
Interest-bearing debt is expected to be at the same level as in 2017.
ROYAL GREENLAND A/S - 2017
Since the 2015/16 financial year was a 15-month peri-od, below the key figures are compared with the 2016 calendar year. These key figures, and other references in the report to financial information for the 2016 calendar year, are unaudited, but are prepared on the basis of internal financial reporting.
The table presents the profit from primary operations, including the results of associated companies, since they are an integral element of primary operations.
Primary operations thus improved by DKK 37 million, and the EBIT margin increased from 4.5% to 5.1%.
Shell-on prawns, Greenland halibut and snow crab continue to show positive development.
With effective fisheries and in a strong market, shell-on prawns exceeded last year's record-high result, based on favourable development in Asia, Scandinavia and Russia. 
As the largest global operator within Greenland halibut, it is very satisfactory that sales increased by 5%, with significantly better earnings in Japan. Earnings in the other Asian markets were affected by the falling USD exchange rate. Major expansion of the factory in Uummannaq took place in 2017. Capacity in Aappilattoq was also increased. The combined investment in the two facilities totals DKK 70 million. In production terms, Royal Greenland is thus more strongly equipped for an increased degree of processing in Greenland.
Based on Quin-Sea Fisheries, snow crab continued the positive development from 2016 characterised by high demand at attractive prices in the key markets of Japan and the USA. In accordance with the strategy, snow crab has developed into the third-best earning category in the Group. 
After several problematic years, lumpfish roe developed soundly, in line with the improved market balance between supply and demand.
On the other hand, cooked & peeled prawns achieved significantly lower earnings, despite 24% higher volume. This trend was due to low sales prices in the first nine months of the year, when sales of small prawns in par-ticular were challenged. The category was also affected by the falling GBP exchange rate as a consequence of the repercussions of the Brexit referendum, since the UK is the world's largest market for cooked & peeled prawns.
North Atlantic cod has continued to entail losses for Royal Greenland. Slightly decreasing inshore cod volumes in Greenland did not improve the situation, while the investment in the Nutaaq project in Maniitsoq was main  tained in order to increase the ratio of high-quality pro ducts and thereby improve the financial basis. The project is affected by a lack of stable manpower, which makes it difficult to achieve the required product mix, so that in 2017 foreign manpower was hired for the principal filleting factories in Greenland. In addition, the entire process under the Nutaaq project has been further optimised, to make it possible to produce larger volumes, which is a key precondition for a financial improvement.
Despite higher volumes, pelagic fishing did not develop favourably, due to technical problems during the brief season and pressure in the market for pelagic products.
Among the non-North Atlantic product groups, salmon developed positively in terms of smoked products, as well as resale of salmon portions to the European retail market. Both areas depend on the price for raw salmon, which is subject to considerable volatility.
On the other hand, the zip-lock convenience range from the factory in Cuxhaven failed to achieve satisfactory earnings, as a consequence of tough competition in the European retail market.
The profit after tax amounts to DKK 129 million. The minority interests in the Ice Trawl Greenland and Pelagic Greenland trawler companies amount to DKK 29 million. The positive development for the North Atlantic species, and thereby for the Greenlandic product areas, entails a high tax rate. 
Tax recognised in Greenland amounts to DKK 42 million.
With effective  fisheries and in a strong market,  shell-on prawns  exceeded last year's record-high result, based on  favourable  development in  Asia, Scandinavia  and Russia.
FINANCIAL STATEMENTS
There is continued growth in the core activities, as the basis for Royal Greenland's increasing revenue. The profit before tax of DKK 253 million is satisfactory, especially in view of the development in the GBP and USD exchange rates in the second half of 2017.  
Net revenue WHV (DKK million) Net revenue excl. WHV  (DKK million)
Profit before tax (DKK million)
Note:  WHV is the fish finger activity in Wilhelmshaven,  which was sold in 2013.
 2012/13 2013/14 2014/15 2016 2017
Interest-bearing debt (DKK million)Net working capital
Interest-bearing debt  (EBITDA)
Balance sheet (DKK million)Equity (DKK million)Equity ratio (%)
 2012/13 2013/14 2014/15 2016 2017
Result - Comparable period
(DKK Mill.)20172016
Net revenue5,6135,589
Profit from primary operations, including associated companies 
288 (5.1%)251(4.5%)
Net profit before tax253(4.5%)234(4.2%)
Net profit129(2.3%)109(1.9%)
 2012/13 2013/14 2014/15 2016 2017
ANNUAL REPORT16
GOOD SALES DESPITE TUR-BULENT CURRENCY MARKETS
Royal Greenland faced a challenging year in sales terms, but  nonetheless delivered larger volumes and increased its earnings.
Volumes sold increased by 4%, while revenue measu-red in DKK rose only marginally. The latter is due to the negative development in exchange rates for most of the company's key sales currencies (USD, GBP, JPY, NOK and SEK). In a number of areas, we succeeded in achieving higher sales prices measured in local curren-cy, but it was not possible to compensate fully for the large drops in the different currencies.
On the market side, there was a good increase in volume terms in the key markets of Scandinavia, Europe and Asia, while North America experienced a small setback. 
The strategic development towards more balanced ge-ographical diversification in key markets is conti nuing. Asia's share of revenue has thus increased by 11% points in recent years, but is, however, currently affec-ted by a weaker USD and JPY. The development towards higher sales in Asia and North America is expected to continue, while Europe will slow down, in line with the strong focus on the North Atlantic species.
Asia The Asian market is still growing, and sales to China are increasing in particular. Royal Greenland's revenue in Asia now totals DKK 1.5 billion. The region achieved 5% higher volume during the financial year, which did not result in equivalent revenue growth, however, as a consequence of the development in USD and JPY. Asia accounts for 27% of the Group's revenue.
In China and Taiwan, Greenland halibut and shell-on prawn are the leading products. The demand for both species has been good. Sales of shell-on prawns for the Chinese New Year celebrations were particularly positive.
The Greenland halibut market was highly volatile. Sales prices for heads and tails declined significantly, while prices for the other Greenland halibut products were more stable. It was possible to expand the distri-bution network in China, with a good expansion of the customer portfolio for all products. 
Sales of retail products are still at a low, but increa-sing, level. There is focus on both traditional retail sales and e-commerce. One of the major challenges with regard to this range is the long logistical lead times from Greenland and Europe, combined with a dynamic market, in which a short reaction time is necessary.
Revenue in Japan was stable. The Japanese organisa-tion's determined efforts successfully re-established earnings in the market. It has been a challenge to bring customers to accept the necessary price increases, based on the lower JPY exchange rate. Yet the market changed during the year and since the summer, the business has developed favourably, so that the company achieved satisfactory earnings for the full year. The Japanese market is now once again one of the best-earning markets for Royal Greenland, and our processing strategy for this market has again proved its strength.
The Japanese sushi chains, which are an important element of Royal Greenland's revenue, continued their international expansion, and Royal Greenland Japan supports and is part of this development. This has made the sales office in Japan more international, with revenue in many Asian countries, and in the USA.
Europe Royal Greenland's key European market comprises Germany, France, the UK, Italy, Spain, Portugal and Russia, and together they still constitute the most sig-nificant market area, with a revenue share of 46% and overall sales of DKK 2.6 billion. The markets in Europe saw moderate growth.
There was focus on a number of strategic initiatives, including increased sales to food service in Europe, among other things through the development of a unique web platform, with product specifications and access to Royal Greenland's extensive image archives. 
On the market side, there was a good increase in volume terms in the  key markets of Scandinavia, Europe and Asia, while North America experienced a small setback.
ROYAL GREENLAND A/S - 2017
In Germany, the retail sector was even more focused on price as the key purchasing parameter, which meant that Royal Greenland chose not to renew a number of contracts.
This development emphasises the importance of the strategic focus on sales of the North Atlantic range in Germany. This has required changes in how the German company is organised. One of the successes is an agreement with a leading retail customer for the delivery of a Greenlandic MSC Greenland halibut prod-uct. This is the first contract based on MSC Greenland halibut processed in Greenland. 
In France, there was positive development during the year, when we won a number of contracts for delivery of Greenland halibut. The French market is important, since it is the largest market for processed Greenland halibut. The market is the foundation for achieving the required processing strategy based on the major factory investments in Greenland.
During the last part of the year, we saw positive de-velopment in the UK. Sales of cooked & peeled prawns are increasing, and it was also possible to achieve significant sales of land-based Greenlandic cod. Since 2016, the sales price for cooked & peeled prawns has been under pressure from market conditions and the negative course of the GBP exchange rate, but as from the summer of 2017, the price measured in local currency has been rising again.
Sales of Greenlandic cod have become an interesting business area in the UK. Relatively good prices have been achieved, and the Nutaaq quality is in demand from the food service segment.
Sales in Italy mainly concern prawns in brine, cooked & peeled prawns, shell-on prawns and Greenland halibut. The continued weak Italian economy makes this a difficult market. Business activity is at the level of the preceding year.
Greenlandic cod is the main product in the Spanish and Portuguese markets. A good deal of shell-on prawns are also sold in Spain. The markets show moderate growth, and it can be noted that the economy is picking up again.
The Russian market was positive in 2017. Sales of shell-on prawns increased, and pelagic fishing in-creased sales in Russia. There is no doubt the Russian economy is recovering, after a number of difficult years. This is e.g. apparent from how the demand for shell-on prawns is changing in favour of larger sizes and thereby higher sales prices. The sustained cooperation with our Russian joint venture partner has proved its strength over the years.
Scandinavia Scandinavia is an important market for cold-water prawns – both cooked & peeled prawns and shell-on prawns. With sales of DKK 2.1 billion, Scandinavia accounts for 21% of the Group's revenue.
The Scandinavian sales organisation is continuing to win market shares in all markets. In Norway in particu-lar, there has been positive development, based on shell-on prawns.
Royal Greenland is the market leader in Scandinavia for cold-water prawns, as well as breaded fish and Greenland halibut.
The development in the food service segment is satis-factory. With a brand share of 80%, Royal Greenland is leveraging its strong brand in the Scandinavian market.
The industrial segment was re-established during the year, creating greater balance between the various sales channels.
We are constantly endeavouring to further professiona lise our approach to customers. In an independent survey, our sales force for food service in Sweden was named as the best in the market.
North America The sales platform to the North American market, created on the acquisition of Quin-Sea Fisheries, is a strong asset for Royal Greenland. Sales prices for snow crab are particularly interesting, although a combination of lower quotas and higher sales of snow crab to the Japanese market reduced revenue in the market compared to 2016. Sales of Greenlandic cod are increasingly favourably, on the other hand. Royal Greenland's total revenue in North America totals almost DKK 300 million.
In overall terms, customers in the USA and Canada show a lot of interest in Royal Greenland's range, and the strategic decision to gear up in these markets has proved its value. A sales organisation will be built up in North America, from a base in the Boston area. The sales organisation's focus will be on processed pro-ducts from Royal Greenland's North Atlantic range.
Sales of Greenlandic cod have become  an interesting  business area in the UK. Relatively good prices have been achieved, and the Nutaaq quality is in demand from the food service  segment.
2011/12
2012/13
2013/14
2014/15
Revenue in % by regions
     Asia          Europe          North America        Rest
ROYAL GREENLAND A/S - 2017ANNUAL REPORT1918
SALES ACTIVITIES AROUND THE WORLD 
In 2017, the sales organisations across continents  undertook a number of exciting business-promoting  sales and marketing activities.     
Germany
In its efforts to increase understanding of professional kitchens' product preferences and work processes, the German sales company established cooperation with "Seafish Koch Studio" in Bremerhaven. Here, during the course of the year, professional chefs among other things tested Greenland halibut and cod, and contributed valuable knowledge to the development of Royal Greenland's range.  
There is now such great interest in Royal Greenland's products in the American market that we have our own stand at the annual fair in Boston. Products from Greenland and Canada, as well as Japanese specialities developed from Greenlandic and Canadian raw material resources, are all in high demand. 
In November, Royal Greenland took part in a sales promotion campaign in collaboration with the retail chain Sungiven Food in Xiamen in southern China. A number of the chain's key customers took part, to hear about Royal Greenland's history and taste Greenland halibut, snow crab and prawn. 
In the Italian market, the sales organisation is strongly focused on endusers of our products. Through cooperation with the Italian 'Federazione Italiana Cuochi' (federation of Italian chefs) Royal Greenland gains access to an exciting network of chefs and catering managers. Royal Greenland has also moved closer to wholesalers, with training of the wholesalers' sales force, to make them more familiar with Royal Greenland's products, thereby supporting their sales work. 
The British market had a successful year for sales of Nutaaq cod, especially to fish & chips chains. The high quality of Nutaaq cod enables the chains to service their customers all year round with this popular fish of stable, high quality, fried in tempura batter and accompanied by tasty chips.  
Sweden
During the year, the Swedish sales organisation worked hard to increase sales of prawns in loose weight. Combined with the launch of sea-packed high-quality prawns under the 'Disko Bay' and 'Davis Strait' names, we have created value in the prawn category. 
For many years, the sales company in Japan has been a trusted supplier of highly-specialised sushi items to the "running sushi" restaurant chains. Sales include crab meat, raw prawns (fantails) and halibut fins. During the year, Royal Greenland Japan was active with a number of new initiatives and suggested recipes, creating favourable development. 
ROYAL GREENLAND A/S - 2017ANNUAL REPORT2120
AND THE WINNER IS… 
Royal Greenland took the prize for  the best stand at a major Danish  food service fair in November.      
Around 150 exhibitors in total attended Hørkram's annual food service fair, and Royal Greenland's Danish team were in place with a fine new stand, which focused on proximity to fisheries and the raw material with an authentic blue cutter ship, which served as a counter for the stand. The prize was a large trophy and, naturally, the honour of winning! Royal Greenland was picked for a stand that was original, creative and different in its design – which was much appreciated by visitors.  
ONLINE SALES IN CHINA 
Royal Greenland has chosen to develop a quality range that is  based on raw materials caught and packaged outside China, with the  packaging carrying Chinese text.  
Royal Greenland's online presence has been strengthened on the JD platform, where consumers can purchase our range and read about Royal Greenland's fantastic history and the striking natural environment from which our products originate.  
The Chinese retail market for fish and shellfish is dominated by local producers that have developed their own brands, which are sold in physical stores and also online. A large proportion of these local producers base their production on raw fish purchases from the North Atlantic, Canada and the Arctic. 
Royal Greenland thus sells raw materials to a number of close partners and is also in the process of positioning our own brand towards consumers. 
By cooperating with local producers on sales of raw materials for their own brands and distribution of Royal Greenland's brand, we are contributing to a dynamic and deeper perspective for this category. 
STANDOF THE YEAR
OFFICIAL CAMPAIGNS WITH THE  KINGDOM OF DENMARK   
The increasing significance of trade and cooperation with the Asian countries is not unique to Royal Greenland. During the year, both the Government of Greenland and the Danish Royal Family were part  of the official campaigns in Japan and China.   
In October, Royal Greenland was part of the trade promotion campaign in Japan, with the Danish Crown Prince and Princess heading a large official trade delegation. Especially our Japanese customers were delighted that the Japanese Crown Prince and Princess were also present at this event. A number of visits to Japanese companies and official events gave Royal Greenland the opportunity for networking with local partners and customers. 
China Fisheries & Seafood Expo took place in Qingdao in November. A large Greenlandic delegation, headed by Greenland's Prime Minister, Kim Kielsen, visited this fair and hosted a reception for Greenlandic companies' Chinese business partners. 
ROYAL GREENLAND A/S - 2017ANNUAL REPORT2322
NEW PRODUCTS AND  INNOVATION
An increase in value for every kilo of raw material is key to Royal Greenland's product development and innovation in every stage of the value chain. 
The aim of Royal Greenland's involvement in external research collaboration, and of our internal develop ment projects, is to increase the value of the individual species and product areas. This is achieved by optimising the handling of raw material and the production methods in the first link of the value chain, by matching quality and market in the customer link, and by developing consumer-focused solutions that put our new developments right at the forefront. 
Innovation Fund Denmark is supporting a  business research project Nutaaq cod from Royal Greenland is already a well- established brand in high demand in the quality- focused market. To further strengthen the product's position and to document its unique quality, in 2017, Royal Greenland started up a three-year business research project: "New concept for production of cod in Greenland – Best Practice with focus on quality and sustainability" together with DTU Food - the National Food Institute in Lyngby (Denmark), and with the support of Innovation Fund Denmark. 
Under the business research project, the production of Nutaaq cod at Royal Greenland in Maniitsoq is optimised, with focus on:
1)  The seasonal and biological differences in the raw fish.
2)  Establishing the most appropriate process settings for the live storage and stress of the cod prior to harvesting.
3)  Durability testing of the storage of fresh and frozen Nutaaq cod.
In practice, product testing takes place at Royal Greenland in Maniitsoq, followed by quality testing in the laboratory at DTU Food - the National Food Institute. The plan is for the project's results to establish a "best practice" for the production chain. At the same time, quality documentation is built up, so that Nutaaq cod will continue to achieve prices in the top price segment. 
Food safety is high on the agenda Together with our collaboration partner, Dan Salmon in Hirtshals, Royal Greenland took part in a four-year EU project concerning food safety in conjunction with contaminating substances in fish and shellfish as a consequence of environmental impacts. This project was concluded at the start of 2017 and has given Royal Greenland valuable access to central European databases for:
1) More effective risk analyses of fish and shellfish.
2)  More precise risk assessments and rapid screening methods for shellfish-contaminating substances.
3)  The ECsafeSEAFOOD database for chemical sub-stances is a unique database that gathers data on contaminating substances in fish and shellfish.
4)  FishChoice is an online tool which enables con-sumers to assess health benefits and risks from consumption of fish and shellfish.
The ECsafeSEAFOOD project involved 18 partners from ten countries and yielded valuable knowledge to fur-ther strengthen the already high level of food safety in Royal Greenland's production. 
More taste – less saltRoyal Greenland has achieved unique knowledge and experience from participation in the four-year develop-ment project: "Development of seafood products with improved health value, edible quality and food safety (LOW SALT)", in collaboration with DTU Food - the Na-tional Food Institute and with the support of the Green Development and Demonstration Programme (GUDP) in Denmark. The project was concluded at the end of 2017 with significant commercial results:
•  Development of four new pasteurised lumpfish roe products with reduced salt content (below 3.0%) compared to the normal salt content of around 4.5%. In terms of taste and healthiness, the new products, which can now also carry the Scandinavian keyhole label, are a considerable improvement on the previ-ous products. 
•  Eight new keyhole-labelled products with cold-wa-ter prawns in brine have been launched. The salt content is below 1.5%, compared to the normal 2-3% salt content. The fresh and natural prawn taste is apparent in the new products, which have a more unique and authentic prawn taste than the normal cold-water prawns in brine.
The successful launch of these high-quality products, with outstanding taste and food safety, can be attri-buted to the development of two predictive models to describe the growth of the spoilage bacterium Pseu-domonas and the pathogenic bacterium Clostridium botulinum. The models were developed in collabora-tion with DTU Food - the National Food Institute and, in practice, mean that Royal Greenland has become far more innovative and effective in developing recipes 
for lightly preserved fish products with a low salt content, while also maintaining the high food safety standard. 
Convenience and Clean LabelAs a supplier to catering kitchens and canteens in the global food service segment, it is vital to be able to supply practical solutions that can be served quickly, without comprising food safety. In 2017, Royal Green-land launched a wide range of fully-fried breaded fish, which is suitable for catering kitchens in public institutions, hotels and conference centres.
The fully-fried fish, which includes varieties with Greenlandic cod, plaice, flounder fillets and herring fillets, and fish nuggets of Alaskan pollack, is fried to a core temperature of 72°C. The fish can then be used directly from frozen, with no further preparation (Ready-To-Eat). In most cases, the fish will be heated before use, but since it has already been fried, there is no risk when using the product straight from the packet, and it is also suitable for streetfood or in other situations where it needs to be served quickly. 
Several varieties also carry the Clean Label, which means that they are prepared solely from natural ingredients, without artificial additives. 
GastroFitThe GastroFit concept is based on the principle that it must be easy and quick to serve a tasty meal to many people without compromising on quality and taste. Royal Greenland has developed a series of flavour varieties of 12 uniform pieces of fish in different sauces. The product is removed from the packaging while still frozen, placed in a gastrotray and heated up in the oven. GastroFit is particularly aimed at catering kitchens in Germany and France, which are the primary markets. 
Disko Bay and Davis Strait prawnsGreenlandic prawns are among the most popular products in Royal Greenland's range. In 2017, the Scandinavian markets launched cartons containing 1 kg of sea-cooked prawns, which are packed on board Royal Greenland's trawlers. This rapid processing and freezing directly in the carton onboard the trawler re-sults in a high-quality product that is distinguished by its special red colour, taste and consistency. Packaged, sea-cooked prawns are otherwise only available in the market as prawns packed in foil at land facilities, so that Royal Greenland is offering a quite unique product to the market.  
The production development costs defrayed are recog-nised in the profit and loss account. 
As a supplier  to catering kitchens and canteens in the global food service segment,  it is vital to be able to supply  practical solutions that can be served quickly,  without comprising food safety. 
Nutaaq cod from Royal Greenland  is already a well-established brand in high  demand in the quality-focused market.
8 TONNES LESS SALT ON THE PRAWN DISH…  
By significantly reducing the salt content in brine for prawns,  Royal Greenland's prawns in brine are in line with the new  dietary recommendations to eat more seafood and less salt.        
Salt has a preserving effect and prolongs a product's shelf life. To reduce a product's salt content, it is important to stay focused on food safety, to eliminate increased bacteria growth. 
Based on research cooperation with DTU Food - the National Food Institute, in recent years we have been able to develop a strong model that can very precisely predict bacteria growth. 
This has made it possible to reduce the salt content without compromising the food safety of our products. 
In consumption terms, this means that in 2017 the same volume of prawns in brine from Royal Greenland contained 8 tonnes – or 9% - less salt than just a few years ago. This is equivalent to the weight of five adult narwhales!
ROYAL GREENLAND A/S - 2017ANNUAL REPORT2524
CONCLUSION OF THE 'MARINE LIPIDS'  GUDP NETWORK PROJECT   
In 2017, together with a number of network partners, Royal Greenland contributed to completing the 'Marine Lipids' GUDP network project.  The Danish Technological Institute was the project manager. 
In general terms, today the fisheries industry only uses around 50% of actual catches of edible fish for the human food chain. The 'Marine Lipids' network project has developed a large number of new project ideas for using fish trimmings for fish oil and other products. A couple of exciting examples are pilot production of high-quality fish oil for human consumption, and new, ecofriendly use of fish skin. For Royal Greenland, the long-term objective is to make commercial use of the results of project ideas of this type. 
Besides Royal Greenland, the project involved a number of Danish companies and research institutions, 
including: Sæby Fiskeindustri, FF Skagen, DTU Food - the National Food Institute, Bioceval Denmark and Proby Ingredients. 
ROYAL GREENLAND COOPERATING WITH THE UNIVERSITY IN NEWFOUNDLAND   
The Marine Institute at the Memorial University of Newfoundland has special focus on building bridges between the academic world and the surrounding fisheries sector. 
With the acquisition of Quin-Sea Fisheries, Royal Greenland has gained access to an array of skilled and knowledgeable researchers, who are helping to utilise this knowledge and forge links between the university and industry. 
One example of the collaboration with the university in 2017 was a project to optimise the value chain and the distribution of fresh cod to the American market. In recent years, cod from Newfoundland has not been appreciated in the American market, but comprehensive education and information dissemination across the entire value chain, from catch to production, storage and distribution, has made it possible to create a fine flow of fresh, high-quality cod from our factory in Conche to the American market. 
The Marine Institute also performed quality assessments of shellfish, which has led to the implementation of a number of standardised quality assessment methods. 
Raw material: Fishing and purchase
Access to quotas in Greenland is vital for Royal Greenland, both in our own fisheries and as a supply of raw materials from external shipping companies and fishermen to the Group's factories along the west coast of Greenland.
Royal Greenland's fleet comprises three ocean-going prawn trawlers, two ocean-going production trawlers for Greenland halibut, cod, etc., a line boat for Greenland halibut, cod, etc., two smaller inshore prawn trawlers, and seven Greenland halibut vessels, which supply the factories in the Disko Bay and Uummannaq. Additional to these is an investment in a number of large skiffs for fishing in Northern Greenland, to increase the volumes of Greenland halibut supplied to the factories.
In 2019, an ocean-going prawn trawler and an ocean-going production trawler will be replaced by two newbuildings, in order to streamline and increase the offshore fisheries capacity.
Under the Pelagic Greenland joint venture with the Icelandic company Isfelag two pelagic trawlers are operated for fishing off East Greenland. 
In 2017, the Group fished approximately 60,000 tonnes in total, with an increase by 30% as a con-sequence of significantly higher pelagic fishing for capelin and blue whiting in particular, which are at the low end in value terms, however.
In 2017, we also fished prawn off Svalbard, with a sa-tisfactory result. Prawn fishing off East Greenland was also very satisfactory, after a break of several years.
In 2017, the prawn quota for West Greenland was increased to 90,000 tonnes and was raised further to 101,250 tonnes in 2018, in accordance with biologists' recommendations and the MSC management plan. The prawn stock is developing positively and the quota is also expected to increase in 2019. The previous trial quota in the NW area of West Greenland has now been incorporated as part of the official quota.
Royal Greenland's factories in Greenland received 66,000 tonnes of fish and shellfish during the financial year, which represents a decrease by 4% after several years of growth.
VALUE OPTIMISATION IN FISHERIES AND PRODUCTION
Constant optimisation of the raw material's value is necessary in order to reduce Royal Greenland's vulnerability to changes in fishing quotas,  but requires increased investment in trawlers and factories, in order  to increase processing levels.
2012/132013/142014/152015/162017
Prawns24,56923,92520,13525,00326,935
Greenland halibut10,46513,40417,50420,69717,591
Crab1,6151,7651,0631,0551,330
Roe1,636951755460718
Cod7,51210,75615,04221,43219,199
Other908943604557521
Total46,70551,74455,10369,20466,294
In 2019, an ocean-going prawn trawler and  an ocean-going production trawler will be replaced by two newbuildings, in order to  streamline and  increase the  offshore fisheries capacity.
Catches landed to Royal Greenland in Greenland
ROYAL GREENLAND A/S - 2017ANNUAL REPORT2726
The decline is due to a decrease in the Greenland halibut and cod received. Inshore fishing of Greenland halibut has generally decreased considerably,  especially in the Disko Bay. 
Even though the overall volumes of cod landed have declined, the volume of live cod for the Nutaaq project in Maniitsoq has increased significantly. The volume landed was 5,000 tonnes in 2017, or almost 30% of the total volume of cod received. In 2018, live cod intake volumes are expected to be close to 10,000 tonnes, as the concept is deployed along a larger sec-tion of the coast and production capacity in Maniitsoq is expanded.
It is positive that prawn, crab and roe intake volumes have increased significantly in 2017.
The average landing price increased by 2% in 2017, driven by prawn, crab, lumpfish roe and cod, while Greenland halibut was at the same level as in 2016. Over a six-year period, the average landing price increased by 59%. The increase is related primarily to prawn and Greenland halibut. 
In 2017, payment to inshore fishermen in Greenland totalled DKK 752 million, which was at the same level as in 2016. Over a six-year period, the total payment increased by DKK 423 million, or by more than 100%. The increased payment is related to larger volumes, changes in the species distribution, and increasing landing prices. 
In 2017, permits were also granted for the deploy-ment of landing vessels in the Uummannaq and Uper-navik areas, even though there is sufficient capacity at the land-based factories. This led to periods of low activity and low employment, and at times also to strong pressure on landing prices, in order to ensure supplies of raw material for production.
In Newfoundland the principal species are snow crab and prawn. The prawn quota has been reduced in all fishing areas, and in one area by right up to 60%. The quota is expected to be reduced further in 2018. Royal Greenland's deliberate diversification of activities on several geographical quota areas reduces vulnerability 
to quota fluctuations. In view of the increasing prawn quota in Greenland, Royal Greenland's global volume is thus unchanged.
The crab quota in Newfoundland was reduced by 22% in 2017. As a consequence, Quin-Sea Fisheries saw a decline in landed catches of crab. In overall terms, however, the company has increased the market share of landed volumes of snow crab and prawn. There was also a significant increase in activity for other species such as Greenland halibut, whelks and sea cucumber.
In Quebec/Gulf of St. Lawrence the prawn quota was reduced by 11%.
In accordance with the strategy's ambition to increase supplies of raw fish within the core species, in 2017 more than 3,000 tonnes of Greenland halibut were purchased in Norway and Canada, for processing in Poland and China.
Resources such as salmon, warm water shrimp, flat fish and MSC cod are purchased in the world market.
With purchases of DKK 700 million, salmon consti-tutes the largest single item in the overall external purchasing portfolio of DKK 2.5 billion. Salmon is used for portions, smoked products, in seasoned sides of salmon, and in the zip-lock range. 
10.000 tonnes of flounder and plaice were purchased for the factory in Koszalin. Flounder is used mainly for breaded fillets of fish for the Scandinavian market, while plaice is mostly sold as natural fillets and stuffed products. Royal Greenland still undertakes purchasing of raw fish under the cooperation agreement with A. Espersen in Koszalin.
Plaice is purchased at auction in Denmark, while flounder comes from the Baltic Sea, including as direct purchases from Danish trawlers.
Cod originates mainly from Greenland, and besides this, 3,500 tonnes of MSC-certified cod was purchased. Together with some of the Greenlandic cod, this is further processed in China, before final processing and sale in Europe.
DRIED COD AVAILABLE ALL YEAR ROUND      
Royal Greenland has invested in a drying machine for production of  dried cod, in order to meet the high demand in the domestic market.  
Today, dried cod can still be seen hung to dry in the wind outside many houses in Greenland. Dried cod is a delicacy in Greenland and has been produced in private homes for many years. Dried cod is mostly used as a snack or small meal, and is valued for its flavour and high protein content. Historically, cod has been dried because salting and drying is an excellent preservation method. The cod is dried outdoors, and especially win-ter-dried cod is a great delicacy. Today, many house-holds no longer dry their own cod, but demand is still high. 
Royal Greenland has invested in a drying cabin for pro-duction in Paamiut, where the fish will dry for three to four days, before being packed and sent out to such stores as Brugseni and Pisiffik along the coast, which already stock numerous different Royal Greenland products. 
The average  landing price  increased by  2% in 2017,  driven by prawn, crab, lumpfish roe and cod, while Greenland halibut was at the same level as in 2016. 
ROYAL GREENLAND A/S - 2017ANNUAL REPORT2928
TRAWLER FISHERIES THROUGHOUT THE YEAR  
Royal Greenland's fleet of ocean-going trawlers comprises eight vessels,  of which three prawn trawlers and two fish trawlers covered large  distances in 2017, fishing at sites as remote from each other as  Baffin Bay to the west, and Svalbard in the northeast.  
Royal Greenland's constant focus on increasing access to quotas and attractive fishing grounds has resulted in further streamlining of fisheries during the year. To make the most of these opportunities, it is important to avoid too many waiting days and costly yard visits, and to optimise the crews' access to and from the trawlers on changeover days. 
Effective and profitable fisheries therefore require careful planning and experience. 
Despite good planning and effective management, the new fisheries patterns are setting high requirements of the vessels' capacity, which is one reason for Royal Greenland's current extensive newbuilding programme.
Trawlers of the future  are taking shape   
In 2015, the Board of Directors of Royal Greenland decided to build two new ocean-going trawlers to fish the icy waters of the North Atlantic and Arctic. 
After a long analysis phase, it was decided to place the order with Astilleros de Murueta in Bilbao, Spain. The first steel was cut and the keel laid in July 2017. At the close of the year, the work was proceeding according to plan, and the trawlers were taking shape.
The new vessels will be able to cover considerably longer distances for the same volume of fuel as today, and they will have higher loading capacity, just as service checks will only be required every five years, compared to today's every three years. The two vessels will be able to fill pallets on board, giving shorter unloading times. The onboard factories will have the very latest equipment and a high degree of automation will ensure products of a uniform high quality. 
Attractive workplace 
There is also focus on the accommodation and welfare provision for crews. An interior architect with shipbuilding experience is assisting in providing the two vessels with good materials and a high comfort level, so that the vessels have pleasant crew accommodation facilities. There is also focus on giving the vessels' interiors and exteriors an attractive appearance, so that both vessels are a pleasant place to work for the crews. 
 4. udkast
Danish Ship Decor Brotorvet 5 - DK-9400 Nr. Sundby - Phone: +45 99 33 72 03 - info@shipdecor.dk - www.shipdecor.dk
Landkort  printet på træplade 
CABINS
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Danish Ship Decor Brotorvet 5 - DK-9400 Nr. Sundby - Phone: +45 99 33 72 03 - info@shipdecor.dk - www.shipdecor.dk
LOUNGE
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Danish Ship Decor
LOUNGE
FISHTRAWLER - SISIMIUT
Svalbard & Barents Sea
West GreenlandEast  GreenlandSvalbard & Barents SeaMelville Bay
East GreenlandWest GreenlandShipyard
PRAWNTRAWLER - AKAMALIK / QAQQATSIAQ / NATAARNAQ
JANFEBMARAPRMAJJUNJULAUGSEPOKTNOVDEC
JANFEBMARAPRMAJJUNJULAUGSEPOKTNOVDEC
ROYAL GREENLAND A/S - 2017ANNUAL REPORT3130
Production
Greenland Royal Greenland owns 39 facilities in Greenland. All except two are in operation. All facilities are operated without service contracts from the Government of Greenland.
In contrast to before, the level of activity has been declining, as a consequence of the decrease in vol-umes of Greenland halibut and cod. On the other hand, the strategic focus on processing in Greenland has increased the number of employees at factories which fillet Greenland halibut and cod.
The processing strategy has led to significant investments in the factories in Greenland. In 2017, the factory in Uummannaq was subject to significant upgrading and capacity expansion. Warehouse capacity was also increased, so that no limits to landed catch volumes will apply going forward.
At the end of 2017, a newly constructed factory in Aappilattoq, in the Upernavik area, was opened. This factory has replaced the previous factory, with signifi-cantly expanded capacity in terms of both production and warehousing.
Besides the capacity increases, a number of Green-land halibut factories have been realigned in order to 
support the need for further processing. In the future, more facilities will produce both J-cuts and fillets, and not just whole fish as before. This reorganisation will continue in 2018, especially in the Upernavik area.
The cod filleting capacity is also being expanded continuously. There are now cod filleting factories in Qasigiannguit, Kangaatsiaq, Sisimiut, Maniitsoq and Paamiut, and especially in Kangaatsiaq, Qasigiannguit and Maniitsoq filleting is at a significantly higher level than before.
As in previous years, it has been very challenging to obtain sufficient manpower, especially in high season. Royal Greenland has hired manpower from abroad and brought in personnel from areas of Greenland with high unemployment rates, to work in the processing factories in Maniitsoq, Uummannaq and Ilulissat. This will also be relevant in 2018, when the factories in the Upernavik area will also have a need for additional manpower.
Canada With the factories in Newfoundland and Quebec, Royal Greenland has significant inshore fishing activities in Canada.
The main activity in Newfoundland is snow crab and prawn. There is also production of sea cucumber, whelks, cod, halibut, lobster and pelagic species.
At the end of 2017, a newly  constructed  factory in  Aappilattoq, in  the Upernavik  area, was opened.
With the  lumpfish roe  factory in  Cuxhaven, Royal Greenland is involved in the entire value chain out to customers, and is the world's largest producer of lumpfish roe in glass jars.
CO-OWNERSHIP TO INCREASE LANDINGS    
In cooperation with local fishermen and other stakeholders in the northernmost settlements in Greenland, in recent years Royal Greenland has created two companies under shared ownership. Catch volumes are increasing significantly. 
In Qaanaaq, which is the northernmost settlement where Royal Greenland has activities, Inughuit Seafood was established at the end of 2014. The ownership structure is that local fishermen own 50% of the company, while Royal Greenland owns the rest. During the three-year period in which the new ownership structure has applied, the catches landed by the company have doubled. 
The settlement facilities in Nuussuaq and Kullorsuaq near Upernavik have been converted to the company Arctic Fish Greenland A/S. Here, so far 92 fishermen have purchased shares, and overall account for 30% of the company’s ownership, while Royal Greenland accounts for the remaining 70%. Under the new ownership structure, there has been a significant 
increase in activity in the two settlements. In order to meet the increased catch landing in Kullorsuaq, Royal Greenland has already expanded the frozen storage capacity by 160 tonnes, so that the total frozen storage capacity is now 660 tonnes. During 2018 the frozen storage capacity in Nuussuaq will also be expanded. 
Via Quin-Sea Fisheries, Royal Greenland owns six fac-tories in Newfoundland. The most recent investment is in a new factory in Southern Harbor for the production of pelagic species and lobster.
The integration of the factories progressed well. A number of optimisation measures were taken, and these have increased the factories' competitiveness. 
Despite falling quotas for snow crab and prawn, Quin-Sea Fisheries strengthened its position within inshore fisheries.
In Quebec, a factory for cooked & peeled prawns is operated, but with lower activity, due to the lower prawn quota. There is intense competition for the raw fish, as a consequence of excess factory capacity. 
Denmark The factory in Aalborg is the only remaining produc-tion unit in Denmark. Activities include production of prawns in brine, and the packing of cooked & peeled prawns and shell-on prawns. Both activities were at a low level in 2017, but production has been continu-ously optimised.
MAP production in Glyngøre was discontinued during the year.
Royal Greenland's range of smoked products is pro-duced by a subsupplier in Denmark. As a consequence 
of falling salmon prices, both activity and earnings have been on the increase. Royal Greenland's ability to produce listeria-free, safe products also boosted sales. 
Cuxhaven, Germany Royal Greenland operates two factories in Cuxhaven, which produce lumpfish roe in glass jars, and the zip-lock/chain-pack range, respectively. The factories are subject to shared management and administration.
With the lumpfish roe factory in Cuxhaven, Royal Greenland is involved in the entire value chain out to customers, and is the world's largest producer of lumpfish roe in glass jars.
In 2017, MSC-certification of lumpfish roe from Green-land was achieved, and together with the new range of products with a low salt content, this has boosted sales.
In 2017, the zip-lock/chain-pack activity faced challenges and new initiatives have been launched to restore activities to the previous level. 
China  For many years, Royal Greenland has collaborated with Chinese subsuppliers which process raw materials from Greenland into high-quality sushi products for the Japanese market. Cod and salmon are also processed for sale and further processing in Europe. 
ROYAL GREENLAND A/S - 2017ANNUAL REPORT3332
MASSIVE INVESTMENT IN  ONSHORE FACILITIES  
2017 was the year in which Royal Greenland, for the first time in many years, built an entire new factory in Greenland, and modernised and considerably expanded the capacity of several other facilities.   
Aappilattoq 
In the small settlement of Aappilattoq, near Upernavik, in Northern Greenland, 2017 saw the construction of a complete new factory, for the benefit of local fishermen, who could previously only land around 3-4 tonnes of halibut per day. The old factory was demolished in the summer of 2017, and replaced with an entirely new factory, with the capacity to receive up to 15 tonnes of fish per 24-hour day. The new factory has a much larger frozen-storage warehouse, which can store up to 450 tonnes, compared to the old facility's 130 tonnes. This expanded capacity will allow the local fishermen to land their catches all year round, whereas previously they had to sail to other settlements in the Upernavik area when the warehouse was full. 
The new facility in Aappilattoq will also produce halibut fillets, besides whole halibut, de-tailed and de-headed halibut, as before. 
The construction work took place during the autumn, with a good spirit of cooperation between craftsmen and local employees. During the construction period in the autumn, the local fishermen could land their catches to a chartered catch-landing vessel. 
Uummannaq 
One of the cornerstones of Royal Greenland's halibut landing and production in Greenland is the factory in Uummannaq. Close to one hundred fishermen land their catches in Uummannaq. The daily freezing capacity of 40 tonnes has been a bottleneck for quite some time, just as the total freezing capacity of 1,100 tonnes is not sufficient during the winter period. 
The original factory was built in 1966 and expanded in several instances, and in 2017 the largest modernisation and expansion to date took place. The original buildings have undergone a much-needed renovation, with new floors, walls and equipment, and the daily new freezing capacity is now up to 50 tonnes, with total freezing capacity at 1,600 tonnes. 
Southern Harbor in Newfoundland   
At the beginning of the year, Quin-Sea Fisheries had just taken over a production facility in Southern Harbor that was not in operation. During the spring of 2017, it was upgraded to full operation and a whole new organisation, comprising factory management, as well as a production and quality organisation, was hired and immediately commenced investments and a comprehensive renovation of the facility. 
Electrical installations, freezers and water installations were modernised to match full production capacity and the new organisation implemented fixed production routines well before the start of the season, which commenced with herring as early as March. In the course of the season, the newly-commissioned facility also produced raw lobster, capelin, halibut and a large volume of salt cod. 
During the season, Southern Harbor was one of the busiest locations in Quin-Sea Fisheries' portfolio in Newfoundland. For the benefit of the local community, it was possible to open a small groceries store in the town, which has almost 400 permanent residents. 
Besides the major investments at the aforementioned locations, the prawn factories in Sisimiut and Ilulissat also undertook operational investments Just as a number of factories have been optimised for increased processing of cod and Greenland halibut. 
ROYAL GREENLAND A/S - 2017ANNUAL REPORT3534
QUALITY MANAGEMENT THROUGHOUT THE VALUE CHAIN
Food safety, traceability and high quality are firmly anchored and integrated  in all processes. Food safety and traceability are governed by legislation,  international food product standards, and standards for sustainability,  while quality is subject to internal requirements and specifications,  as well as customer requirements.
ProductProductionCertifications
Snow crab
Quin-Sea, Old PerlicanMSC CoC, BRC grade A
Prawn flour
IlulissatBRC grade A
Greenland Halibut
QasigiannguitMSC CoC, IFS Higher level
ManiitsoqMSC CoC
Trawler TuugaalikMSC, West Greenland offshore halibut
Trawler SisimiutMSC, West Greenland offshore halibut
Cooked & Peeled Prawns
SisimiutMSC CoC, BRC Grade A
IlulissatMSC CoC, BRC Grade B
MataneMSC CoC, BRC Grade AA
Quin-Sea, Old PerlicanMSC CoC, BRC Grade AA
Gulf Shrimp, NewfoundlandMSC CoC, BRC Grade AA
Aalborg, LangerakMSC CoC, BRC Grade AA, IFS Higher level
Shell On Prawns
Trawler AkamalikMSC, West Greenland & Faroe Islands, North-East Arctic cold-water prawns
Trawler QaqqatsiaqMSC, West Greenland & Faroe Islands, North-East Arctic cold-water prawns
Trawler Nataarnaq  (Ice Trawl Greenland A/S)MSC, West Greenland & Faroe Islands, North-East Arctic cold-water prawns
Aalborg, LangerakMSC CoC, BRC Grade AA, IFS Higher level
Greenland Cod
Trawler SisimiutMSC, Greenland Cod, Haddock and Saithe from the Barents Sea and the North-East Atlantic
AkunnaaqMSC CoC
AtammikMSC CoC
AttuMSC CoC
IkamiutMSC CoC
Lumpfish roeIkerasaarsukMSC CoC
QeqertarsuatsiaatMSC CoC
QeqertarsuaqMSC CoC
KangaamiutMSC CoC
KangaatsiaqMSC CoC
ManiitsoqMSC CoC
NarsaqMSC CoC
PaamiutMSC CoC
NuukMSC CoC
ItilleqMSC CoC
SisimiutMSC CoC
Cuxhaven, rognMSC CoC, BRC Grade AA, IFS Higher level
Supporting
Cuxhaven, Zip-lockMSC CoC , ASC, IFS Higher level
Dan Salmon, Smoked productsMSC CoC, ASC, Global Gab, IFS Higher level
TradingMSC CoC, ASC, Global Gab
Customer requirements are becoming more and more stringent, due to the wish for increased food safety. Royal Greenland fully meets these requirements.
The wish to create added value in the overall value chain, as well as consumers' increasing focus on 
sustainability, are clearly reflected in the increase in the number of MSC-certified factories, trawlers and fish stocks. 
Royal Greenland's quality and traceability certifications are illustrated in the chart on the opposite page.
THE EU ECsafeSEAFOOD PROJECT   
In 2017, in cooperation with DTU Food - the National Food Institute  in Lyngby (Denmark), Royal Greenland undertook a major study to  measure the content of contaminants in our Greenlandic prawns.   
The aim was to analyse whether there is any seasonal variation in the content and contaminants, and whether the content varies in the raw prawn, after cooking and after peeling. The content of contaminants was also measured for both Greenland halibut and salmon all the way through the production chain, for both the raw fillets and after smoking. The measured contaminant values are all significantly below the permitted maxi-mum levels for fish and shellfish within the EU. 
The study was part of a major research project, the EU ECsafeSEAFOOD project, which is a scientific research collaboration with focus on chemical food product safe-ty within fish and shellfish. The project is for a term of four years. The project is financed by the EU and be-sides Royal Greenland and a number of research institu-tions, has also involved a number of other companies. 
Contaminants are polluting substances that are known to accumulate in the food chain. The best known contaminant in fish and shellfish is mercury. Besides mercury, the study also analysed the content of: cadmium, chromium, iron, selenium, zinc, copper, and inorganic and organic arsenic.
ROYAL GREENLAND A/S - 2017ANNUAL REPORT3736
To reduce its vulnerability to fluctuating quotas and catches, Royal Greenland seeks to diversify the intake of raw fish across several stocks of core species, and across several geographical areas. The exposure to financial, currency and interest rate risks in global activities is monitored closely and reduced through the company's fixed policy in this area. 
The uncertainty concerning the raw fish resources requires a  sharper focus on value optimisation of the raw fish and an increased processing level, in order to maintain earnings from the resources.
Raw materials The access to raw materials and the development in raw material prices are a significant operating risk for Royal Greenland. This risk is predominantly related to the living resources around Greenland and eastern Canada. These constitute 80% of Royal Greenland's to-tal raw material resources. The prawn quota in Green-land is increasing and is also expected to increase in 2019. On the other hand, both the prawn and the crab quota in Newfoundland were reduced in 2017 and are expected to be reduced further in 2018. A significant element of the North Atlantic Champion strategy is to diversify activity across several geographical resource areas, so as to also diversify the risk and reduce the volatility of the company's earnings. Royal Greenland's global access to prawn resources was thus unchanged in 2017 and 2018.
For inshore Greenland halibut, the quota in the three management areas in Greenland is unchanged, although the biologists recommend a lower quota, which is also supported by the lower fishing level.
Concerning the development in the quotas, experience shows that lower quotas often give higher sales pri-ces, and thereby maintain the value of the activities. 
The uncertainty concerning the raw material resource base requires a sharper focus on value optimisation of the raw material and an increased processing level, in order to maintain earnings from these resources.
Royal Greenland's purchase of raw materials totals approximately DKK 2.5 billion. We seek continuously to maintain the relative earnings level, irrespective of the development in raw material prices. It is sought to hedge this risk by adjusting sales prices, close fol-low-up and back-to-back currency hedging concerning major purchase and sales agreements.
Financial risks   Through its operations, investments and financing, Royal Greenland is exposed to changes in exchange rates and interest rate levels. The parent company manages the financial risks on a centralised basis, and coordinates liquidity management, including capital procurement and the placement of surplus liquidity. The Group pursues a financial policy that is based on a low risk profile, so that currency, interest rate and credit risks only arise on the basis of commercial conditions.
The use of financial derivatives is governed by a specified policy adopted by the Board of Directors, as well as internal procedures to e.g. set amounts and determine which derivative financial instruments may be used.
Currency risks  The Group's activities are affected by exchange rate fluctuations, since revenue is primarily invoiced in foreign currency, while costs, including wages and salaries, are primarily defrayed in Danish kroner, euro, and Canadian and American dollars.
The Group will thus be exposed via net positions in a number of currencies. Other countries than Greenland and Denmark account for 87% of the Group's revenue, with an emphasis on the euro-area member states, Japan, China, the UK, Sweden and the USA. Revenue in EUR and DKK accounts for 50% of Royal Greenland's total revenue, and is not assessed to present any real currency risk. The primary currency exposure concerns pounds sterling, US dollars, Japanese yen, Canadian dollars and Swedish kronor. The Group is also affected by fluctuating exchange rates since a number of subsidiaries' results and equity at the close of the year are converted to Danish kroner on the basis of the average and balance-sheet date exchange rates, respectively.
Currency risks are primarily covered by matching receipts and payments in the same currency, and by using forward contracts. The Group's currency policy is to hedge 75% of the expected exchange rate risks within six months, and 50% of the currency risks dur-ing a 6-12 month period. Large contracts are hedged individually. The exchange rate risk in relation to EUR is not hedged.
Interest rate risks   The interest-bearing debt is primarily denominated in DKK and EUR. The proportion of the debt at variable in-terest rates was 54% at the close of the financial year. An increase by 1 percentage point in the general level of interest rates would increase the Group's annual interest costs by approximately DKK 7.2 million.
ROYAL GREENLAND'S NUTAAQ ACTIVITIES GENERATE MORE LIFE IN MANIITSOQ    
Average personal income has increased by 22% since Royal Greenland began handling catches of live cod for the factory in Maniitsoq in 2014.  
"There is no doubt that Royal Greenland's development of both fishing and production of Nutaaq cod is making a strong contribution to the positive economic develop-ment in Maniitsoq," says Karl Lyberth, member of the municipal council of Qeqqata Municipality.  
"The increased economic prosperity has not just been to the benefit of individual fishermen or factory wor-kers, but to a great extent has also benefited the town's business community and Qeqqata Municipality. 
As a citizen and local politician I am very grateful for this," says Karl Lyberth, before continuing:
"Royal Greenland is, quite simply, the heart of the town. The fact that they are now producing Greenland halibut after the close of the cod season is also very important, since this gives the factory workers employ-ment all year round, while the fishermen can still con-tinue to land cod. This is a positive motivation for the  population." 
SUPPLIER AUDIT OF ETHICAL AND  SOCIAL CONDITIONS 
Royal Greenland is continuously audited for its compliance with  ethical international standards. We use the same type of evaluation  and auditing of our suppliers' ethical and social performance,  called ethical supplier management   
Suppliers from e.g. Europe, North America or Canada are from "low-risk countries", and in this case the approval solely requires the supplier to sign Royal Greenland's Supplier Code of Conduct. 
If a supplier is from a "high-risk country, such as Thailand, China or Ecuador, we gather various different details of their ethical and social capability, based on a detailed self-evaluation. 
On assessment of the self-evaluation, weight is given to such issues as child labour, forced labour, fire safety, accident registration and preventive training, as well 
as any remarks from the public authorities in the environmental area.     
In some cases, it is necessary to inspect the factory in person, in which case Royal Greenland performs an on-site audit. Today, many of our suppliers are audited according to an ethical standard. 
In recent years we have built up a solid system and today, ethical supplier management is a fixed element of Royal Greenland's due diligence compliance – i.e. compliance with our ethical supplier requirements.  
ROYAL GREENLAND A/S - 2017ANNUAL REPORT3938
CORPORATE SOCIAL  RESPONSIBILITY/SUSTAINABILITY
Royal Greenland has a strong wish to contribute positively to the society of which it is part. In Greenland, the company's significant presence, size and activities give opportunities to make a noteworthy difference, every single day.   
Royal Greenland's sustainability initiatives and CSR profile are therefore naturally concentrated around Greenland, but cover all of the Group's locations and subsidiaries.  
The following pages give an account of Royal Greenland's corporate social responsibility activities, including its CSR organisation, priorities, anchoring and policies. These activities are described in the 2015-18 Sustainability Strategy - For the benefit of Greenland and Royal Greenland, which defines sustainability in relation to the People—Planet—Profit principle.
Besides Royal Greenland A/S, the report also covers the Danish subsidiary, Royal Greenland Seafood A/S, which is subject to the Danish CSR reporting regulations, cf. Section 99a of the Danish Financial Statements Act. The report thus addresses all of the statutory requirements to which the Danish subsidiary is subject, as well as the sustainability activities of all wholly-owned companies.
CSR steering group  The company's executive management, who are part of the CSR steering group, are responsible for Royal Greenland's CSR and sustainability activities. 
The steering group takes the final decisions concer-ning objectives and strategy, and evaluates results.
The CSR steering group comprises:  
• Chief Executive Officer  • Group Production Director • Group Sales Director • Corporate Relations & HR Director  • Group HR Manager   • Group Market Development & Marketing Director • Corporate Communications Manager • Corporate Sustainability Manager
Royal Greenland's sustainability department has three employees, who ensure Group-level implementation, follow-up and reporting. The steering group held two meetings in 2017. 
Priorities and anchoring   In accordance with the People-Planet-Profit principle, two principles are applied: 
Social and environmental social responsibility is reflected in the prioritised themes of Sustainable fisheries and Employee development. Both areas are central for Greenland as a society and for Royal Greenland as a company.
Sustainable fisheries is Royal Greenland's life blood. This is the company's primary activity and the fishermen's livelihood, which must continue for many generations into the future. This makes it vital that the resources fished are and remain sustainable, and that as many as possible of the species purchased are sustainable. Furthermore, the ambition is to achieve the highest possible degree of use and processing of the raw materials.
In view of Royal Greenland's presence in Greenland, employee development is an area in which the company can make an extraordinarily large contribu-tion to society's positive development. The Group also employs many skilled people in its production facilities in Canada, Denmark and Germany, which also offer continuous development opportunities. 
Since a company like Royal Greenland must also take responsibility for any negative impacts from its activities, there is focus on working conditions, human rights, environmental effects and anti-corruption, just as ethical requirements are made of suppliers.
Corporate Social Responsibility / Sustainability
Corporate Social Responsibility / Sustainability
Policies   Royal Greenland's CSR policy states the company's ap-proach to social responsibility in the following areas: : 
People: Employee development Working conditions and human rights
Planet:  Sustainable fisheries and utilisation of resources Environment
Profit: Business ethics
Royal Greenland also has the following policies con-cerning corporate social responsibility:
• Gender equality policy (2014) • Anti-corruption policy (2014) • Anti-bullying and harassment policy (2016) • ‘Anti-slavery statement’ (2017)
Royal Greenland does not have a specified climate policy, but considers global warming indirectly via the environmental policy. Royal Greenland's CSR policies and Sustainability Strategy for 2015-18 are published in full on our website: www.royalgreenland.com 
https://www.royalgreenland.com/royal-greenland/sustainability/related-documents/
The UN's 17 Global Sustainable  Development Goals  In 2015, the UN adopted 17 Global Sustainable Deve-lopment Goals to lead the world's sustainable deve-lopment. Royal Greenland recognises and supports the 17 Global Sustainable Development Goals by actively including them in the company's CSR work.
Royal Greenland is particularly interested and involved in five of the global goals:
•  No. 2: End hunger, achieve food security and im-proved nutrition and promote sustainable agriculture. 
•  No. 4: Ensure inclusive and quality education for all and promote lifelong learning. 
•  No. 8: Promote inclusive and sustainable economic growth, employment, and decent work for all. 
•  No. 12: Ensure sustainable consumption and produc-tion patterns. 
•  No. 14: Conserve and sustainably use the oceans, seas and marine resources. 
Sustainable  fisheries is Royal Greenland's life blood. This is the company's primary activity and the fishermen's livelihood, which must continue for many generations into the future.
Principle 1:
Environmental and social  development and initiatives must support economic growth.
Principle 2:
Business growth must support  environmental and social develop-ment in the local community.
ROYAL GREENLAND A/S - 2017ANNUAL REPORT4140
SKILLED EMPLOYEES STRENGTHENING  THE COMPANY 
Across the organisation, there is constant focus on upgrading qualifica-tions and competence development, so that the knowledge and insights achieved can contribute to the company's growth and progress.
In 2017, 753 employees took courses arranged by Royal Greenland Academy and external course providers in Greenland. Education and training took place at several levels, with particular focus on upgrading professional qualifications, with consequential positive effects on team spirit.
Professional training of  factory personnel
A large group of production employees took a four-day course. This course was arranged in collaboration with Inuili - Food College Greenland in Narsaq, while the courses took place locally, close to employees' workplaces. 
The aim of the course was for participants to learn about the importance of production and personal hygiene, and to increase their knowledge of the products they work with on a day-to-day basis. There was also emphasis on optimising their own work and the importance of being open towards colleagues and contributing to fruitful cooperation. 
"The aim of the course was naturally to enhance employees' qualifications. The course took place as a combination of theory and practice. For example, the morning could be devoted to production hygiene, and the afternoon to group work on bacteria in fish and shellfish," says HR manager in Greenland, Christian Laursen.
Factory manager training 
At manager level, special training is in focus. All factory managers at Royal Greenland's factories throughout Greenland are taking the five-module factory manager programme. At year-end, the first two modules had been completed, and the third module took place in January 2018.
- "The purpose of the factory manager programme is to ensure an understanding of the relationship between the physical and administrative processes, so that we have the right figures by which to manage the factories. The aim is also to gain input for production optimisation and to strengthen the factory managers' competences within production process management," says Group Production Excellence Manager at Royal Greenland, Carsten Hjortshøj.
Each module of the factory management programme has its own heading. Under the first module, the course heading was "Gain an overview, understanding and foundation AS-IS", and module two's heading was "Increased capacity utilisation and better performance, and HR elements". Module three's heading is "Systematic problem solving". The topics for modules four and five have not yet been determined, but the overall themes are in place.
In time, the aim is for production managers and plant managers at Royal Greenland to take a similar course programme.
Operations manager training 
Prior to the factory manager programme, operations managers were trained. The five operations managers' function is to each lead a group of factory managers and thereby be decision-makers for the overall operations within a geographical area of factories. The operations managers' training has the same content as the factory managers' programme, but is based on the operations managers' perspective. 
-"This was a really good process, in which we learned to assess things on the basis of facts achieved from correct measurements, instead of 'we think we know'. The cases we worked with were highly relevant, and we could use the results directly in our work. I was particularly pleased with module 1, which gave us analysis and measurement tools," says Sten Sørensen, operations manager for cod and crab. 
- "I benefited a lot from the operations manager course, and I put this knowledge to use on a daily basis. Not by setting things up exactly as we learned on the course, but by keeping it in mind and using the terms we learned. Now that the factory managers are also taking the programme, and are beginning to use the same terms, such as swimlane, systematic problem solving, etc., we can communicate more easily and quickly and agree on how our tasks should be viewed, presented, performed and followed up," says Vivi Labansen, operations manager for prawns. 
Besides the direct learning, this training has also supported very good cooperation between the operations managers, and since both the factory and operations managers have taken more or less the same training, there is a good understanding between the managers. 
229 factory managers at Royal Greenland's factories took a production course in 2017. Royal Greenland Academy held production courses in collaboration with INUILI - Food College Greenland. 
ROYAL GREENLAND A/S - 2017ANNUAL REPORT4342
Corporate Social Responsibility / Sustainability
Corporate Social Responsibility / Sustainability
PEOPLE - TOGETHER TO ACHIEVE OUR GOALS
With our head office and 39 factories in Greenland, Royal Greenland has a great influence on Greenland’s society and the day-to-day lives of many Greenlanders. We are highly aware of this responsibility. In a broader perspective, we believe that Royal Greenland must pro-mote fisheries, production and the marine industry in Greenland, to create good recruitment and educational opportunities, but also benefit society in general. 
As a company owned by the Government of Greenland, Royal Greenland has a particular social responsibility. We must operate profitable and respected international activities, while also creating as many good and viable workplaces in Greenland as possible. This means that we have an extended social responsibility, compared to many other companies. Royal Greenland continuously balances its activities between developing its global business and enhancing the development of local socie-ty. These two objectives are not necessarily contradicto-ry, but in many respects go hand in hand.
A talented and diverse workforce In 2017, Royal Greenland had 2,533 full-time employ-ees, of whom 1,363 in Greenland. This is a decrease by 200 positions at Group level, and 40 fewer positions in Greenland. The decrease in employment at Group level must be viewed in the light of the sale of the factory in Poland as of 1 September 2017, which is therefore only weighted at 2/3 in the number of employees in 2017. The marginal decline in employment in Green-land reflects the decrease in landed catches of cod, and especially Greenland halibut.
Royal Greenland’s gender quality policy supports the equal representation of both genders in the Board of Directors and executive management group, and acknowledges the need for diversity and a high level of professional expertise in the Group.
The aim is that, as far as possible, the elected members of the Board of Directors comprise both 
genders on an equal basis, and that the top manage-ment level reflects the gender distribution in the fisheries industry. In 2014, this was set at 26% over a five-year period. It is sought to achieve this target by ensuring equal terms for both genders on recruiting for management positions, with due consideration of expertise, experience and personal integrity.
There is an equal gender distribution among the mem-bers of the Board of Directors elected by the annual general meeting. Including representatives elected by the employees, the ratio is 66% men.
The upward trend for the ratio of women in the executive management team has been replaced by a decline, and the ratio of women is now at the 2012 level, with 13% women. It must be stated that the aim of 26% women in 2019 is very ambitious.
There is considerable national diversity at Royal Green-land. In the Group's executive management team alone, 13 different nationalities are represented. The considerable diversity among employees is a strong asset for a global company like Royal Greenland.
History shows, however, that stable factory manage-ment in Greenland is best achieved with managers recruited locally or regionally. In 2017, 94% of factory managers were from Greenland.
Code of Conduct – creating a sense of  community across the Atlantic The aim of the company's Code of Conduct is to create a shared culture and a framework for good conduct among colleagues. It also informs employees of their fundamental rights. 
In 2017, the Code of Conduct was presented to colleagues in Newfoundland, so that it has now been introduced to all employees of the Group. 
A procedure has also been introduced to tackle any serious breaches of Royal Greenland's internal Code of Conduct and the external supplier Code of Conduct. 
There is  considerable  national diversity  at Royal Greenland. In the Group's  executive  management team alone, 13 different  nationalities are represented.
Employee distribution in 2017
     Greenland        Other countries
No. of employees
     Greenland        Other countries
 2012/13 2013/14 2014/15 2015/16 2017
Group2,533
MOTHERS PAVING THE WAY FOR EDUCATION    
In 2017, a total of 27 young people benefited from Royal Greenland's sponsorships. Most applications for sponsorships are submitted  by the young people's mothers, who are keen for their children  to do well in life.    
Else Thorsen from Paamiut, single mother of a boarding school pupil, explains her reason: "As a disability pen-sion recipient, it was a challenge for me to financially support my son at boarding school, since he needed a laptop computer and the sportswear required by the school. We also had to meet the transport costs to and from his host family. We had actually agreed that he would have to come home if our application for a spon-sorship from Royal Greenland was refused. Fortunately, we were granted sponsorship, and now my son can continue his schooling.” 
"Education is so important. So many youngsters are dropping out of school today, and this really needs to be changed. I took an education because my own mother wanted and required me to do this. At that time, there was rigid discipline, which did not hurt us, but actually helped us to complete our studies.” 
Royal Greenland primarily supports applicants wishing to study such subjects as Danish, English, Mathema-tics and Natural Sciences, since these are the subjects which many school pupils in Greenland find most chal-lenging in elementary school.
Proud support for Olympic athletes
Royal Greenland also sponsors sports activities. Besides fixed annual sponsorship agreements with the Sports Confederation of Greenland and Arctic Circle Race, one sponsorship pool is for elite sportsmen and women. 
One of them is Martin Møller, who in February 2018 went to South Korea to take part in the Winter Olym-pics. In 2014, he took part in the Winter Olympics in Russia. This was also sponsored by Royal Greenland.
The sponsorship policy also allows for support of na-tional fundraising campaigns, while a fixed annual donation is made to the Ivalo & Minik Foundation to support young Greenlanders wishing to take higher edu - cation programmes in other countries besides Green-land and Denmark. 
ROYAL GREENLAND A/S - 2017ANNUAL REPORT4544
Corporate Social Responsibility / Sustainability
Corporate Social Responsibility / Sustainability
Royal Greenland Academy – learning for lifeIn Greenland, Royal Greenland has continued its long-standing work under the Royal Greenland Academy. Professional courses are offered at four levels: opera-tions manager, factory manager, middle manager and production employee.
In 2017, all factory managers continued the manage-ment programme commenced in 2016, and 19 selected production employees took part in a talent development programme to prepare them for middle management positions. 
426 production employees attended various Royal Greenland Academy courses. Closing courses, produc-tion courses, cleaning courses and instruction courses were held. Furthermore, external courses were held under which 177 Greenlandic employees attended management development courses, management pro-grammes, Excel courses, electrical truck courses, profi-ciency courses or vocational proficiency programmes. 51 crew members took courses in safety at sea, health and safety, smoke diving and treatment of illness, as well as maritime management courses.
A total of 753 Greenlandic employees took qualifying courses. 
Besides the centrally managed course activities, de-velopment appraisal interviews are held with salaried employees throughout the Group, at which individual development programmes are agreed with individual employees.    
Trainees, apprentices and students are the future of our society    Royal Greenland supports traineeships and apprentice-ships which improve vocational training programmes 
by contributing practical knowledge and development. In Greenland, achieving educational qualifications is not a matter of course. Royal Greenland therefore has a special responsibility for upgrading young people's qualifications. 
The objective is to have at least 25 trainees/appren-tices in Greenland at any time. This objective was fulfilled in 2017, when we had 36 trainees/apprentices in Greenland on average.
In 2016, Royal Greenland commenced a special programme to support Greenlandic students taking higher vocational education programmes. A total of 20 Greenlandic students were supported in 2017. These programmes are process technician, fisheries techno-logist, chief engineer and first officer candidate, since these qualifications will be required in the industry, going forward.  
Of the 56 Greenlandic trainees, apprentices and students, nine achieved permanent employment and seven completed their programme, but no less than 25 dropped out of the programme. Since this ratio is too high, we would like to support the young people even more during their education, to reduce the drop-out rate.  
At Group level, there were 51 trainees/apprentices, of whom the last 15 have been employed in Denmark, Poland and Germany.  
A good and safe workplace  Activities to safeguard a good working environment are organised on a decentralised basis, with local health and safety committees in the factory and office units. In Greenland, there is also a main safety committee, which sets the overall framework. The committees comprise both employee and employer representatives.
Royal  Greenland supports traineeships and apprenticeships which improve vocational training programmes  by contributing practical  knowledge and development. 
Courses for production employees in Greenland
     2016         2017  
Apprentices/trainees and students
     2014/15         2016          2017
THREE SKILLED EMPLOYEES WHO CAN SEE A  FUTURE FOR THEMSELVES AT ROYAL GREENLAND   
In order to strengthen the company, and raise the bar for the  organisation, Royal Greenland has constant focus on internal  training and external recruitment of the best candidates. 
National player on the team
After a year working in the warehouse at Royal Green-land, the now 24-year-old Hans Karl Berthelsen chose to follow the advice given by one of his superiors. The advice was: get an education! On 1 August 2017, Hans Karl started on the TNI Administration programme in Nuuk with the aim of taking the office clerk programme. 
"I'm really happy that someone saw my potential. After elementary school, I attended a sports boarding school and then I attended GUX, which I left in my second year. I didn't really know what I wanted to do, so I ended up with another stay at a sports boarding school" says the sporty trainee, who has played on the Greenlandic national futsal (indoor football) team since 2016. 
Hans Karl gained a traineeship in Royal Greenland's home market department in Nuuk, and says: "I'm do-ing really well here. I have some great colleagues with whom I get on really well, and I'm also very happy with my invoicing and logistics tasks. I'm learning a lot and can see plenty of opportunities to move on to other exciting departments." 
  The prawn laboratory was a  great inspiration
23-year-old Linda Marie Hansen Jensen grew up in Nar-saq, where a large prawn factory was located in the 1990s. As a child, she often visited the factory, where her friend's mother worked as a laboratory technician. These visits later influenced 23-year-old Linda Marie's choice of education. 
"After completing upper secondary education, I didn't know what I wanted to do, so I took a sabbatical year. During that year, I remembered my visits to the labo-ratory and how fascinating I found it. I started on the laboratory technician programme at Midtvest Business Academy in Holstebro, Denmark, and I expect to com-plete this programme in January´2019." 
In order to make contact with students, representatives of Royal Greenland's HR department visited the busi-ness academy in 2016.
"This led me to apply for a traineeship with the compa-ny. I was lucky enough to get a traineeship at the main laboratory in Nuuk, and I'm really happy to be here. I'm learning a lot and would recommend other students to also consider Royal Greenland," says Linda Marie.
From political science to fisheries
Mikkel Krogh Søndergaard from Nuuk always knew that he would come back to Greenland after completing his studies, and preferably work for a large company. Du-ring his studies, he liked the look of Royal Greenland and immediately accepted the chance of a summer job at the company during his master's programme in Inter-national Studies at Aarhus University. He worked as an HR and CSR consultant and comments: "I experienced a really dynamic workplace, and saw the great range of opportunities at Royal Greenland. There's a lot of work behind a packaged fish product in a supermarket and I found it fascinating that fish caught in Upernavik can end up on a plate in Japan," says Mikkel. 
His master's thesis was also about fish: Greenland's fisheries reform, from which he learned a lot about the great importance of the fishing industry for Green-land's economy. “When I was younger, all I knew about working with fish was limited to working in a factory or fishing on a trawler - the fishing industry wasn't very 'sexy'," Mikkel smiles. "But this attitude changed du-ring my studies, so I was happy to get a job in the com-pany's trawler department at the head office in Nuuk a month after I graduated in August 2016." 
Today, Mikkel works as an operations supporter. "Today, my job is a good mix of practical and more strategic tasks, which is a good fit for me and my focus. Roy-al Greenland is an international company, and a good place to build a career," Mikkel concludes.  
Hans Karl Berthelsen
Linda Marie Hansen Jensen 
Mikkel Krogh Søndergaard
Participants
Royal GreenlandAcademy
Courses by/at other venues
Statutory coursesTotal
Participants
Participants
Participants
Course days
Course days
Course days
Course days
Courses
Courses
Courses
Courses
No. of  apprentices/ trainees in RG
No. of  apprentices/ trainees in GRL
Short-cycle higher vocational education
ROYAL GREENLAND A/S - 2017ANNUAL REPORT4746
*registered occopational injuries with and without absence
In 2017, the  number of reported injuries fell in Greenland and Denmark, but remained by and large constant in the rest of the Group.  In Greenland, the decrease was by more than 40%.
Reported* occupational injuries  per 100 employees
     2014/15        2016        2017
No. of APV measures
 Greenland Denmark Other countries 2013/14 2014/15 2015/16 2017
In recent years there has been sharper focus on the working environment, within such areas as workplace assessments, occupational injuries and employees' general psychosocial welfare. 
Workplace assessments – an important  snapshot view of the working environment Workplace assessments (WAs) are a well-functioning tool, with focus on both the physical and psychosocial working environment, in preventive working environ-ment activities. In Greenland, workplace assessments took place at 11 factories and offices in 2017. Based on these assessments, action plans are drawn up for consideration and evaluation in the local safety groups.
The conclusion from the assessments in 2017 is that the principal physical challenges are draughts and temperature problems, adverse effects of moving heavy objects, and noise effects. The main psychoso-cial challenges concern such issues as mutual respect, conflict resolution and consideration of individual employees on a day-to-day basis. 
Royal Greenland’s policy concerning bullying and harassment denounces all forms of bullying and harassment.
Training in communication and handling of situations has taken place for several management levels. In ad-dition, the ”Sulisa – let us work” project in Sisimiut has also considered this topic by strengthening introduc-tion, instruction and communication at the factory.
Employee well-being is measured by responses to the workplace evaluations and satisfaction surveys.
In 2017, a new system, APVip, was tested in Sisimiut and Kangaatsiaq. APVip measures employees' welfare on a day-to-day basis and is a good tool for dialogue between employee and manager. Three months' tests showed that there is a clear and rapid response from employees if they encounter adverse challenges in their day-to-day work. The tests also showed that it can be a challenge to introduce new procedures at a time when the employee turnover rate is high.
Employee safetyThe safety of employees is very important and the cal-culation basis includes the number of reported injuries per 100 employees. Processing of claims in the public assessment system can be a very protracted process. Efforts are continuing to develop the best registration scheme, so as to gain more knowledge of occupatio-nal-injury related absence. 
We define an occupational injury in the same way as the Danish Working Environment Authority: ”An occu-pational injury is a sudden, unexpected and adverse event which occurs in connection with the work, and which causes personal injury.”
At Royal Greenland, the rule is that any injury must be reported, irrespective of its extent, since unforeseen issues that may be related to the injury can subse-quently arise. There is increased focus on injuries and prevention, and the concept of "near misses" has been presented to employees. 
The definition of a near-miss is "an event or condition that could have resulted in an occupational injury, but which was fortunately prevented". The number of registered cases is still low and the registration rate must be increased, in order to serve as an active management tool.
In 2017, the number of reported injuries fell in Greenland and Denmark, but remained by and large constant in the rest of the Group. In Greenland, the decrease was by more than 40%.
Typical injuries are knife-cutting injuries on fingers, falling on floors or injury due to heavy lifting. 
In Old Perlican, visitors to  the production facilities  wear high-viz jackets
Our employees are thriving  In September 2015, Royal Greenland undertook an employee welfare survey (MTU) in the Greenlandic part of its activities. For all parameters, the results exceeded the average for large Greenlandic companies. 
This survey was repeated in 2017, and once again, the results were satisfactory. 738 people responded to the survey, equivalent to a response ratio of 73%. The overall score for satisfaction with the workplace was 79 out of 100 possible, which is marginally better than the result in 2015. 
In this survey, employees assess such parameters as the company's reputation, cooperation and job content. For all of these parameters, Royal Greenland scores high, and above the average for other large Greenlandic companies. 
Each manager is now responsible for drawing up an action plan for his or her own department, based on the report's results.
NEW COLLEAGUES IN GREENLAND   
During 2017, Royal Greenland's workforce in Greenland was increased with 39 new colleagues from China. Maniitsoq, Qasigiannguit and  Uummannaq have gained new residents, who work side by side with the experienced local teams at the factories.   
Like their colleagues, the Chinese personnel work under Greenlandic collective agreements.
The high season progressed satisfactorily, with a good production level, and the three settlements received the new colleagues positively. Communal meals, soccer matches, excursions and language lessons were all arranged. 
Chinese employee of the month
Just before Christmas, four skilled employees at Royal Greenland's factory in Maniitsoq were nominated as employees of the month by their colleagues. One of them was Gu Jianbin from China, who was chosen as employee of the month for September 2017. 
"I am grateful to my colleague for their recognition of my work. Thank you for honouring me in this way," said 29-year-old Gu Jianbin.
Gu Jianbin's colleagues named him as employee of the month for September.  
"Gu Jianbin was picked by his colleagues because he is fast and skilled at his work of cutting the heads off fish. He is so quick that he can keep six people busy. He is the fastest at his work in the factory," says factory manager Susanne Marie Knudsen. 
Gu Jianbin says: "I really enjoy my work at the factory and my life in Maniitsoq. The people are friendly and the setting is very beautiful, with the mountains and the sea close by. If the circumstances allow, I would like to stay in Greenland and continue my work at the factory in Maniitsoq,” says Gu Jianbin, before modestly 
adding: "I know that my Chinese colleagues also work well, but there can be only one employee of the month, so really I just represent my Chinese colleagues."
The other employees nominated as employee of the month at Royal Greenland's factory, just before Christmas, are Jens Karl Kleist, best employee for October, Aaneeraq H. Josefsen for November and Mikael Lyberth for December. 
These employees each received the honour, a diploma and a monetary gift. 
Corporate Social Responsibility / Sustainability
Corporate Social Responsibility / Sustainability
ROYAL GREENLAND A/S - 2017ANNUAL REPORT4948
Corporate Social Responsibility / Sustainability
Corporate Social Responsibility / Sustainability
OUR PLANET – OUR FUTURE
Since 2012, the ratio of MSC-certified raw mate-rial has increased significantly. Almost half of the resources that we fish and purchase are MSC- or ASC- certified.  
We are becoming more sustainable   As a seafood producer, we fish, process and sell renewable resources from nature. Renewable means that if nature's order is maintained and fishing takes place according to the growth of the biomass, there will be enough fish and shellfish for the coming gene-rations. This is sustainable fisheries, to which Royal Greenland gives very strong support.
Royal Greenland's customers increasingly require sustainable fisheries. They view MSC certification as a guarantee of this.
The MSC standard assesses three key areas:
• Sustainable fishing of the main species. •  Environmental impacts on other species and the impact of the fishing gear used on the seabed.• Overall management structure.
Certification of fisheries goes beyond sustainable fisheries. It is just as important to be able to docu-ment the environmental impacts of fisheries on the surrounding environment. A lot of knowledge has been gained in this field during the last six years, since Sustainable Fisheries Greenland, including Royal Greenland, has initiated valuable knowledge gathering, among other things in collaboration with researchers from the Zoological Society of London and the Greenland Institute of Natural Resources. This has helped to ensure the continued MSC certification of prawn fishing off West Greenland. 
Management plans are the best fisheries management tool. In Greenland, the management plans for prawn, lumpfish and, most recently in 2017, ocean-going Greenland halibut fishing, are MSC-certified.
Sustainable Fisheries GreenlandSince 2012, Sustainable Fisheries Greenland has been an active association in Greenland with fishing com-panies and fishermen as members.  Within five years, the ambition is to create management plans and achieve MSC certification of coastal Greenland halibut fishing, and for both ocean-going and coastal cod fishing. It is very important to the world market that fisheries are documented to be sustainable. There is increasing demand in Asia, and at the Olympic Games in Japan in 2020, only MSC-certified fish species will be served. Royal Greenland has a strong position in the Asian markets, with prawn, Greenland halibut and snow crab, but the requirements are generally being tightened, and there is market demand for the other Greenland species to also be certified.
Partner in Global Seafood Sustainability InitiativeIn 2017, Royal Greenland became a partner in the Global Sustainable Seafood Initiative (GSSI). GSSI is a global platform and partnership comprising seafood companies, NGOs, experts, authorities and other organisations working for more sustainable seafood products for everyone. GSSI's mission is to ensure credibility in the sale and marketing of certified products, and to ensure improvements in certification standards. 
In 2015, GSSI launched a global benchmarking tool, which is supported by FAO's Code of Conduct for Responsible Fisheries and other FAO guidelines. Four different standards have successfully completed the benchmark analysis. Two of these are the Marine Stewardship Council (MSC) and the Iceland Responsible Fishery Management Program. Several new schemes are being analysed, and will entail that GSSI has recog nised certification schemes that deliver over 95% of the certified fish and shellfish in the market today.
Sustainability of fish species  Every year, all species and fisheries are reviewed in order to assess their sustainability status. In recent years, the focus has been on eliminating critical species, and the ratio is now less than 1% of the total range of the fisheries resources.
Inshore cod fishingInshore cod fishing in Greenland still has a significantly higher quota than the biological advice would indicate. This is the reason that the category of "less sustain-able" species accounts for around 20% of the Group's purchased and fished resources.
A management plan that takes account of the bio-mass' dynamic is a precondition for more sustainable future fisheries.
0%2012/132012/132013/142013/142014/152014/152015/162015/1620172017
MSC and ASC % share of fishery and purchase
     MSC          ASC          Linear (MSC)       
Non-utilised share of the raw materials in Greenland
Percentage distribution of purchased  and fished raw materials in accordance  with sustainability 2017
     Sustainable           Less sustainable           Critical
 2012/13 2013/14 2014/15 2015/16 2017
It is important to learn more about the cod stock, so that advice and management better reflect the cod's life cycle. In 2017, Royal Greenland contributed new knowledge by taking part in a project undertaken by the Greenland Institute of Natural Resources. In Sisimiut and Nuuk, 2,000 samples have been gathered and these samples will be DNA-tested in 2018 in order to learn more about whether the cod is a local inshore strain, or comes from East Greenland, for example. Researchers hope to gain more knowledge about the composition of the stock, whether the otolith can be used as an indicator of the origin of the stock, about changes in the cod's food and, finally, the fishermen's experience of changes in fisheries.
Inshore Greenland halibut fishing Royal Greenland is concerned about the decline in inshore fishing of Greenland halibut in the Disko Bay. The average weight in the Disko Bay is now down to around 1.3 kg. This means that there is an increasing number of small fish, and below the minimum dimen-sion of 42 cm. 
Royal Greenland has been drawing attention to this development since 2012. This year, the decline was obviously apparent. A recovery plan for Greenland hali-but in the Disko Bay should be developed, to increase the fish size, and to maximise the fishing's value. If fishing is to be renewable, the average weight should be increased considerably, and preferably exceed 2 kg on average.
Two new Royal Greenland fisheries certified in 2017Out of Royal Greenland's raw material resources, both purchased and fished, the ratio of MSC and ASC fish and shellfish is 48%. This ratio has increased steadily since 2012, when it accounted for one third of the 
volume. On MSC certification of cod and inshore Green-land halibut, the ratio will increase to 65%.
Today, we buy or fish from around 25 MSC and ASC fisheries, of which a small proportion is farmed.
The raw material intake to Quin-sea Fisheries is now included in Royal Greenland's overall raw material resources and primarily comprises MSC-certified snow crab and prawn. 
Ocean-going Greenland halibut fishing in Greenland was MSC-certified in 2017. Certification took place with few conditions, including investigation of the impact of fishing on the seabed. This takes place under a BEST  project (Voluntary Scheme for Biodiversity and Ecosys-tem Services in Territories of European Overseas),  un-dertaken by researchers from the Zoological Society of London. Greenland halibut from West Greenland is the first halibut fishing in the world to be MSC-certified.
Royal Greenland's prawn fishing in Svalbard was also certified in 2017. Virtually all cold-water prawns in Royal Greenland are thus MSC-certified, since now only prawns from East Greenland have yet to achieve this certification.
ASC is the equivalent to MSC for farmed species and has been developed on the basis of the MSC standard. The number of principles is expanded from three to seven and they include stringent environmental requirements concerning sea farming and fish farming, as well as working environment requirements. The standard thus focuses on farming conditions, which can play a vital role for the sustainability of fish farming.
ROYAL GREENLAND A/S - 2017ANNUAL REPORT5150
Corporate Social Responsibility / Sustainability
Corporate Social Responsibility / Sustainability
Energy consumption RG GRL offshore vessels 
     kWh/tonnes finished goods 
Total energy consumption in the Group
     kWh/tonnes finished goods
Water consumption RG GRL factories
     m3 water/tonnes finnished goods
Water consumption RG Group
     m3 water/tonnes finnished goods
Energy consumption RG GRL factories
     kWh/tonnes finished goods
 2014/15 2015/16 2017
 2014/15 2015/16 2017
 2014/15 2015/16 2017 2014/15 2015/16 2017
 2014/15 2015/16 2017
Change sidestreams (previously called byproducts) to the blue bioeconomyRoyal Greenland's mission is to maximise the value of the sea's resources on a sustainable basis. The raw materials must be utilised on an optimum basis according to a sound economic, societal and environ-mental assessment. 
The greater the degree of processing, the greater the need to utilise the derived sidestreams. The value of the raw materials can thus be maximised by process-ing and by producing byproducts. 
There is greatest potential for sidestreams in the factories in Maniitsoq, Sisimiut, Ilulissat, Qasigiannguit and Paamiut, where the degree of processing is high.  
In Maniitsoq, there is particular potential within fresh raw fish from the Nutaaq production. Carcasses, en-trails, heads and skin have a much-coveted freshness, since only two hours pass from the live catch until the fish is packed and frozen. In 2017, various solutions were considered, including silage, fish meal and oil, as well as processing of delicate cut-offs, such as tongues and liver.
At the prawn factory in Ilulissat, the prawn shells are used. Here, prawn meal is produced, which is sold as a flavour enhancer. In Ilulissat, the process water's content of protein, oil and astaxanthin is recovered, to be used for high-value products. This is part of a development project under the Danish Environmental Protection Agency.
The project shows that most protein, oil and colour-ants can be extracted from relatively small amounts of process water, but also that the red colouring of the process wastewater is minimised. 
In 2018, the project will continue, in order to further develop the technology, develop project proposals and investigate sales opportunities.
Pressed protein and oil from process water
 Further opportunities can also be seen elsewhere in the Group. These include evaporation of the cooking water from boiling crabs for soup extract, prawn shells for composting, and tongue trimming.
In cooperation with the Danish Technological Institute and other stakeholders, Royal Greenland is also involved in a project to make use of fish skin.  
EnvironmentGreenland's water and energy consumption increased in 2017 to a level between the levels in 2015 and 2016. This increase is due to a changed product mix, which includes more cooked & peeled prawns, of which the production is more energy- and water-con-sumption intensive.
In 2017, the prawn factory in Ilulissat commissioned an electrical boiler, so that oil consumption will be reduced going forward. The prawn factory in Sisimiut's production of prawn is more energy- and water-inten-sive than cod production.
The same applies in Maniitsoq, where fillets of Nutaaq cod mean fewer tonnes of finished products than for production of whole fish, but with the same energy and water production. 
Trawlers have consumed 2% more fuel per tonne of fish or prawns caught. This is because the sailing pattern for trawlers during the year has changed, with longer sailing times to fishing areas. Both the Barents Sea and Northwestern Greenland (NW) are thus included in the fisheries area. 
The fuel type for all of Royal Greenland's vessels is Marine Gas Oil (MGO). The environmental benefits from using MGO, especially in Arctic waters, are reduced emissions of polluting gases, and a reduced impact on the marine environment from any potential oil emissions. An important incentive to use MGO is improved supply reliability in Greenland and lower overall operating costs. 
At Group level, there has also been a small increase in energy and water consumption in the factories in Germany and Canada. However, the actual increase in water and energy consumption originates from the factories in Greenland. 
There is ongoing focus on energy- and water-saving projects. In Sisimiut, adjusted control of the refrige-ration plant has reduced energy consumption, and the installation of LED lighting at several factories has also continued. In Uummannaq, a new refrigeration plant has been installed in conjunction with the factory's upgrading, based on recycling of the surplus heat. In addition, the Group's first two CO2 refrigeration-free zing plants were installed. Their energy saving is around 20% compared to normal NH3.
 In 2017, the Nordic Council of Ministers published the catalogue 25 Nordic bioeconomy cases for sustainable change.
The 25 examples were distibuted on four catego-ries: replace, upgrade, circulate og collaborate.
Royal Greenland's production of prawn flour in Ilulissat was presented as an example in the upgrade category.
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Corporate Social Responsibility / Sustainability
PROFIT – THE COMPANY'S  COMMERCIAL BASIS
Business ethics and integrity Sustainable profit for the benefit of Greenland, the many local communities of which we are part in global terms, and Royal Greenland, are only possible if the company operates on a legitimate basis in every way. Royal Greenland must comply with national and international standards.
At Royal Greenland we focus on the principles in the Code of Conduct, on the ethical, social and environ-mental follow-up of suppliers and subsuppliers, and on training risk-exposed employees to discover and not to become involved in corruption or nepotism. 
Training in dilemmas Anti-corruption training takes place every second year. The risk-exposed employees are found in the areas of purchasing, sales, logistics, production management and executive management. The group comprises 140 people.   
The training is web-based and sets up a number of situations and dilemmas to which employees may be exposed in the course of their work. The employ-ee gets an immediate response as to whether the action taken is in accordance with Royal Greenland's ethical principles. The basis for training is the sector and organisational level, and will bring employees to reflect on their own actions in situations where doubts can arise as to whether corruption or nepotism are involved.
Good relations creating good business  Royal Greenland not only produces from its own catch-es of raw materials, but also trades with suppliers and subsuppliers all over the world. These are cooperation partners with whom sound and professional relations are the basis for good business. Yet this also requires that suppliers comply with the ethical principles de-scribed in Royal Greenland's Supplier Code of Conduct.
Suppliers and subsuppliers may be located in countries with inadequate legislation, or in countries where there are shortcomings in how legislation is observed. Ethical supplier management is therefore underta-ken on the basis of a risk assessment with focus on production country, industry and scope. In the risk as-sessment, suppliers are divided into the low, medium or high risk group. 
If a suppliers are in the medium- or high-risk group, besides signing Royal Greenland's Supplier Code of Conduct, they will be requested to complete a self-evaluation. This provides knowledge of the sup-pliers' actions to observe human rights, the health and safety of employees, environmental protection, and handling of corruption and bribery. 
The self-evaluation gives the business partner an impression of what compliance entails and enables Royal Greenland to engage in constructive dialogue on concrete actions. Suppliers in the high-risk group can also be subject to ethical audits by Bureau Veritas and S.A. Partners LLP.
In 2017, all suppliers and subsuppliers in the medium- and high-risk group signed Royal Greenland's Supplier Code of Conduct. 58% of all low-risk suppliers also signed it. The low percentage of low-risk suppliers is due to the fact that the declarations previously signed are being renewed.
Marks & Spencer Silver Accreditation Royal Greenland itself is also assessed for its ethical, social and environmental capability. Six factories were subject to third-party SMETA audits in 2016, and in 2017, the factory in Aalborg achieved SILVER accredita-tion by Marks & Spencer. 
Marks & Spencer makes particularly high requirements of a factory's day-to-day activities in terms of ethical, social and environmental parameters.
Royal Greenland generally supports ethical trading ini-tiatives such as SMETA, and is pleased to allow its own factories to be audited, should a customer so request. Suppliers and subsuppliers are also encouraged to submit to ethical third-party audits. 
Corporate Social Responsibility / Sustainability
Ethical supply chain management% response by category
 High risk Medium risk Low risk
ROYAL GREENLAND READY WITH  MSC-CERTIFIED GREENLAND HALIBUT   
In the spring of 2017, ocean-going Greenland halibut fishing in West  Greenland achieved MSC certification. Royal Greenland can thus offer MSC-certified Greenland halibut to the many customers, especially  retail customers in Europe, that require certified species.      
The certification is the result of a joint effort by a number of Greenlandic stakeholders, including fishermen, the fishing industry and the Greenlandic authorities, which have combined forces in the 'Sustainable Fisheries Greenland' organisation. The certification covers four trawlers fishing in the Baffin Bay and the Davis Strait. Royal Greenland's two trawlers, Sisimiut and Tuugaalik, are certified. 
25% of the offshore quota is landed for local processing in Greenland, where Royal Greenland's factories along the west coast fillet the fish for customers in Europe and Asia. In the sales organisation, there is great optimism about the opportunities to offer processed, certified halibut directly from Greenland and out to the customers. 
www.msc.orgMSC
CERTIFIEDSUSTAINABLESEAFOOD
CHRISTMAS DECORATIONS AND  FAMILY FUN IN PAAMIUT     
On Sunday, 17 December, employees and their families at Royal  Greenland's factory in Paamiut were invited to a Christmas get together.
"This was a popular and very enjoyable event, especial-ly for the children. Besides making Christmas decora-tions, all employees received a Christmas parcel," says Jan Jørgensen, factory manager of Royal Greenland's factory in Paamiut.
This popular event was attended by around 100 peo-ple, who enjoyed hot chocolate, Christmas cookies, soft drinks and sweets.
The Christmas parcels for employees contained Christ-mas fare for the family, sweets for the children, and samples of the factory's new dried cod product. 
"This is definitely not the last time we combine the Christmas workshop with distribution of Christmas par-cels. There were lots of grateful smiles for the Christ-mas parcels," says Jan Jørgensen. 
A concentrated four year old Priya Efraimsen working on her christmas decoration
ROYAL GREENLAND A/S - 2017ANNUAL REPORT5554
Corporate Social Responsibility / Sustainability
Corporate Social Responsibility / Sustainability
PEOPLEPLANET
PROFIT
1  Percentage of women in management2  With a special connection to Greenland3  Definition: A sudden, unexpected and harmful event that results in notification of a personal injury, calculated per 100 FTEs.
Working conditions and human rights2012/132013/142014/152015/162017
No. of employees
Total 2,057      1,906      2,156      2,769      2,533     Greenland 910      979      1,202      1,401      1,363     Other countries 1,147      927      954      1,368      1,170     Greenland %44%51%56%51%54%Other countries %56%49%44%49%46%
Training and education - Greenland
Course participants in RG Academy -        -        -        549      426     No. of course days in RG Academy -        -        -        146      54     No. of courses in RG Academy -        -        -        45      23     Course participants at other venues -        -        -        252      177     No. of course days at other venues -        -        -        40      82     No. of courses at other venues -        -        -        10      23     Statutory courses, participants -        -        -        107      150     No. of course days, statutory courses -        -        -        -        44     No. of courses, statutory courses -        -        -        -        41     No. of course paticipants, total -        -        -        908      753     
Apprentices, trainees and students
Group (apprentices/trainees) 20      24      30      49      51     Greenland 16      17      22      27      36     Students in higher education -        -        25      31      20     
Diversity
Board (w/m) 50/50  60/40  50/50  50/50  50/50 Executive management115%17%16%14%13%Factory managers293%93%100%94%Trawler officers285%82%84%86%85%
Employee safety
Work Place Assessments (WA) Greenland -        11      8      18      11     Injury frequency3 Group -        -        8      11      8     -                        Greenland -        -        7      9      8     -                        Denmark -        -        11      7      6     -                        Other countries -        -        14      12      8     
Sustainability2012/132013/142014/152015/162017
Sustainable fisheries and utilisation of resources
Sustainable species88%88%96%80%76%Less sustainable species5%5%1%18%24%Critical species7%6%4%1%< 1%MSC certification of raw materials30%41%40%45%46%ASC certification of raw materials -        -        -        -       2%Share of potential new ressource in Greenland32%31%31%32%33%
Environment2012/132013/142014/152015/162017
Energy consumption
Group (KWh/tonnes finished goods) 2.820      2.687      2.588      2.288      2.567     Greenland (KWh/tonnes finished goods) 1.622      1.392      1.458      1.180      1.413     Ocean-going vessels (KWh/tonnes finished goods) 8.161      7.551      7.432      7.040      7.157     
Water consumption
Group (m3/tonnes finished goods) 27      24      26      23      25     Greenland (m3/tonnes finished goods) 49      43      39      30      36     
Good business ethics2012/132013/142014/152015/162017
Anti-corruption 
Anti-corruption training -        -       9%91% -       
Ethical supply chain management
Total responses -       40%70%58%61%High risk -       64%88%91%100%Medium risk -       51%55%61%100%Low risk -       39%69%55%59%
ROYAL GREENLAND A/S - 2017ANNUAL REPORT5756
FINANCIAL STATEMENTS
Accounting Policies
General The Annual Report of Royal Greenland A/S has been prepared in accordance with the provisions of the Danish Financial Statements Act governing state-owned limited liability companies in reporting class D.
The company and group financial year has in 2015/16 been converted into calendar financial statements. Comparable figures for 2015/16 include 15 months from October 1st 2015 to December 31st 2016.
The accounting policies are unchanged from the previous year.
Consolidation The consolidated financial statements include Royal Greenland A/S (Parent Company) and the Group enterprises (subsidiaries) in which the Parent Company directly or indirectly holds more than 50% of the voting rights or in any other way has a controlling interest. En-terprises in which the Group has significant, but not con-trolling, influence, are regarded as associates. The Group structure is presented in the Management’s Review.
The consolidated financial statements are prepared as a consolidation of the audited financial statements of the Parent Company and of the individual subsidiaries, which have all been prepared by applying the Group's accounting policies. Intra-group receivables and payables, income and expenses, dividends, unrea-lised internal profits and losses are eliminated, and intra-Group shareholdings are set off
Business combinations Newly acquired or newly established enterprises are recognised in the consolidated financial statements from the time of acquiring or establishing such enterprises. Divested or wound-up enterprises are recognised in the consolidated income statement up to the time of their divestment or winding-up. 
The purchase method is applied to the acquisition of new enterprises where the Parent Company obtains a controlling interest. Under this method, identifiable as-sets and liabilities of these newly-acquired enterprises are measured at fair value at the acquisition date. 
On acquisition of enterprises, provisions are made for costs relating to adopted and published restructuring of the acquired enterprise. Allowance is made for the tax effect of the restatements and provisions made.
Positive differences in amount (goodwill) between the cost of the acquired interest and the fair value of the assets and liabilities taken over are recognised under intangible assets, and are amortised systematically over the income statement based on an individual assessment of their useful lives, but no more than 20 years. Negative differences in amount (negative good-will), corresponding to expected adverse development in the relevant enterprises, are recognised in the balance sheet as deferred income, and are recognised in the income statement as such adverse development is realised.
The consolidation method is applied to intra-Group restructuring.
Profits or losses from divestment or winding-up of subsidiaries are calculated as the difference between selling price or settlement price and the carrying amount of the net assets at the time of divestment or winding-up, inclusive of non-amortised goodwill, previous price adjustments and estimated divestment or winding-up expenses. Profits and losses are recog-nised in the income statement.
Minority interests Group profit/loss and Group equity include a separate item which specifies the proportional share of the subsidiaries’ profit/loss and equity attributable to minority interests
Foreign currency translation On initial recognition, foreign currency transactions are translated by applying the exchange rate at the trans-action date. Receivables, payables and other monetary items denominated in foreign currencies that have not been settled at the balance sheet date, are translated using the exchange rate on the balance sheet date. Exchange rate differences that arise between the rate on the transaction date and the rate in effect on the payment date, or the rate on the balance sheet date, are recognised in the income statement as financial income or financial expenses.
The income statements of foreign subsidiaries and associates are translated into Danish kroner using the annual average exchange rate, and the balance sheets are translated using the exchange rate on the balance sheet date. 
Exchange rate differences arising on translation of the foreign subsidiaries’ equity at the beginning of the year at the exchange rate on the balance sheet date are recognised directly to equity. This also applies to exchange rate differences arising on the translation of the income statement from the annual average exchange rate to the exchange rate on the balance sheet date.
Derivative financial instruments On initial recognition in the balance sheet, derivative financial instruments are measured at cost, and subse-quently at fair value. Derivative financial instruments are recognised under financial fixed assets and long-term liabilities, respectively.
Changes in the fair value of derivative financial instru-ments classified as and complying with the require-ments for hedging of the fair value of a recognised asset or a recognised liability are recorded in the income statement together with changes in the value of the hedged asset or the hedged liability.
Changes in the fair value of derivative financial instru-ments classified as and complying with the require-ments for hedging future transactions are recognised directly to equity. When the hedged transactions are realised, the accumulated changes are recognised in the relevant items.
For derivative financial instruments that do not comply with the requirements for being treated as hedging instruments, changes in fair value are recognised currently in the income statement as financial income or financial expenses.
Income statement
Net revenue Revenue from the sale of manufactured goods and goods for resale is recognised in the income statement when delivery is made and the risk has passed to the buyer. Revenue is recognised net of VAT, duties and sales discounts.
Other operating income and expenses Other operating income and expenses comprise income and expenses of a secondary nature to the Group's primary activities.
Research and development costs Research and development costs comprise costs, including salaries and depreciation, attributable to the research and development activities carried out by the Group.
Research costs are recognised in the income state-ment in the year in which they are paid.
Development costs paid in relation to maintenance and optimisation of existing products or production processes are expensed. 
Costs related to the development of new products are recognised in the income statement unless the criteria for recognition in the balance sheet have been met for the individual development project.
Financial income and expenses These items comprise interest income and expenses, the interest element of financial leasing payments, realised and unrealised capital gains and losses on securities, payables and transactions in foreign currencies, amortisation premiums/discounts relating to mortgage debt, cash discounts, etc., as well as tax surcharges and repayments under the Danish Tax Prepayment Scheme.
Income taxes Tax for the year, which consists of the current tax for the year and changes in deferred tax, is recognised in the income statement for the portion attributable to the profit/loss for the year, and recognised directly to equity for the portion attributable to entries directly to equity. The portion of the tax taken to the income statement which relates to extraordinary profit/loss for the year is allocated to this entry, whereas the remaining portion is taken to the year’s profit/loss from ordinary activities.
The current tax payable or receivable is recognised in the balance sheet, stated as tax calculated on the year’s taxable income, adjusted for prepaid tax.
Deferred tax is recognised and measured applying the liability method on all temporary differences between the carrying amount and tax-based value of assets and liabilities, where the tax-based value of the assets is calculated on the basis of the planned use of each asset. No deferred tax is allocated concerning shares in subsidiaries. Deferred tax is measured on the basis of the tax regulations and tax rates of the relevant countries that will be in effect, according to the legis-lation in force as of the balance sheet date, when the deferred tax is estimated to be triggered as current tax. Changes in deferred tax resulting from changed tax rates are recognised in the income statement.
Deferred tax assets, including the taxable value of the tax loss carryforward, are recognised in the balance sheet at their estimated realisable value, either as a set-off against deferred tax liabilities or as net tax assets.
ROYAL GREENLAND A/S - 2017ANNUAL REPORT5958
Balance sheet
Intangible assets Goodwill and goodwill on consolidation Goodwill is amortised on a straight-line basis over its estimated useful life, which is determined on the basis of the experience gained by Management for each business area. The amortisation period is usually 5 years, but it may be up to 20 years for strategically acquired enterprises with a strong market position and a long-term earnings profile, if the longer amortisa-tion period is considered to better reflect the Group’s benefit from the relevant resources.
The carrying amount of goodwill is assessed currently and written down to the lower recoverable amount if the carrying amount exceeds the estimated future net income from the enterprise or activity to which the goodwill is related.
Quotas, IT and licences Acquired intangible rights in the form of quotas, IT and licences are measured at cost less accumulated amortisation. Amortisation is carried out on a straight-line basis over a period of 3-10 years. Intangible rights acquired are written down to the lower of recoverable amount and carrying amount.
Development projects Development projects comprise costs, wages and depreciation directly and indirectly attributable to the company’s development activities and which comply with the criteria for recognition in the balance sheet.
Capitalised development costs are measured at the lower of cost less accumulated amortisation or reco-verable amount.
Capitalised development projects are amortised on a straight-line basis according to the completion ratio of the development project over the estimated economic life of the project. The period of amortisation is usually 3-10 years.
Other intangible assets Other intangible assets comprise commercial trading agreements and are measured at cost less accumula ted depreciation and impairment losses. Amortisation is carried out on a straight-line basis over a period of 20 years. Intangible rights acquired are written down to the lower of recoverable amount and carrying amount.
Property, plant and equipment Land and buildings, vessels, plant and machinery, as well as other fixtures and fittings, tools and equip-ment, are measured at cost less accumulated depreci-ation and impairment losses. Land is not depreciated.
Cost comprises the acquisition price, costs directly attributable to the acquisition, and preparation costs for the asset until the time when it is ready to be put into operation. For company-manufactured assets, cost comprises direct and indirect costs of materials, components, subsuppliers and labour costs.
Interest expenses on loans to finance the manufacture of property, plant and equipment are included in cost if they relate to the manufacturing period. All other fi-nancing costs are recognised in the income statement.
The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line depreciation is made on the basis of the following estimated useful lives of the assets:
Buildings 10 - 50 years
Vessels 7 - 16 years
Plant included in the item "vessels" 5 - 10 years
Plant and machinery 5 - 10 years
Other fixtures and fittings,  tools and equipment 3 - 5 years
Property, plant and equipment are written down to the lower of recoverable amount and carrying amount.
Profits and losses from the sale of property, plant and equipment are calculated as the difference between selling price minus selling costs and the carrying amount at the time of sale. Profit is recognised in the income statement as other operating income, and loss as other operating costs.
Fixed asset investments Investments in subsidiaries and associates Investments in subsidiaries and associates are recog-nised and measured according to the equity method. This means that in the balance sheet investments are measured at the pro rata share of the enterprises’ equity, cf. the description above under consolidated annual report, plus or less unamortised goodwill or negative goodwill on consolidation and plus or minus unrealised intra-group profits and losses.
The Parent Company’s share of the enterprises’ profits or losses after elimination of unrealised intra-Group profits and losses, minus or plus amortisation of positive, or negative, goodwill on consolidation, is recognised in the income statement.
Subsidiaries and associates with a negative equity value are measured at zero value, and any receivables from these enterprises are written down by the Parent Company’s share of such negative equity value if it is deemed irrecoverable. If the negative equity value ex-ceeds the amount receivable, the remaining amount is recognised under provisions if the Parent Company has a legal or constructive obligation to cover the liabilities of the relevant enterprise.
Net revaluation of investments in subsidiaries and associates is taken to the reserve for net revaluation under the equity method if the carrying amount exceeds cost.
Other fixed asset investments Other fixed asset investments primarily include long-term receivables and unlisted investments.
Investments and receivables not held to maturity are measured at cost on acquisition and subsequently at fair value. If the fair value cannot be fixed reliably, the measurement is made at cost.
Receivables held to maturity are measured at cost on acquisition and are subsequently measured at amortised cost.
In the event that fixed asset investments are written down to a lower value, such write-down takes into account the risk of loss associated with each individual asset.
Inventories Stocks of raw materials are measured at cost using weighted average prices or any lower net realisable value.
The stock of consumables comprises for instance pack-aging, operating goods and fish boxes.
The stock of fish boxes is measured at a fixed amount. Supplementary acquisition of gear is expensed on a current basis.
All other stocks of consumables are measured at the lower of cost using the FIFO method or any lower net realisable value.
Goods in progress and finished goods, including finished goods produced on board own trawlers, are measured at the lower of cost using weighted average prices or any lower net realisable value. Cost of manufactured goods consist of costs of raw materials, consumables and direct labour costs, as well as indirect production overheads. Indirect production overheads are allocated on the basis of the normal capacity of the individual production entities. Indirect production overheads comprise indirect materials and labour costs, costs of maintenance of and depreciation and impairment losses on trawlers, factory buildings, machinery and equipment used in the manufacturing process, as well as costs of factory administration and management.
Receivables Receivables are measured at amortised cost, usually equalling nominal value, less provisions for bad debts.
Prepayments Prepayments under assets comprise incurred costs relating to subsequent financial years. Prepayments are measured at amortised cost, which usually corre-sponds to the nominal value.
Equity Dividends are recognised as a liability at the time of adoption at the general meeting. The proposed divi-dends for the financial year are disclosed as a separate item under equity.
Provisions Provisions are recognised when the Group has a legal and constructive obligation as a result of an event prior to or as of the balance sheet date, and it is pro-
bable that future economic benefits will flow out of the company in order to meet the obligation.
Provisions that are estimated to mature more than one year after the balance sheet date are discounted at a market-based interest rate.
Liabilities other than provisions Financial liabilities Financial liabilities are measured at cost at the time of borrowing, corresponding to the proceeds received less transaction costs incurred. The liability is subsequently measured at amortised cost, which corresponds to the capitalised value when using the effective interest rate method, so that the difference between the proceeds and the nominal value is included in the income state-ment over the borrowing period.
If a financial liability has been sufficiently hedged by a derivative financial instrument, the financial liability is measured at fair value and any changes in the fair value are recognised in the income statement under other financial items along with changes in the fair value of the derivative financial instrument.
Other financial liabilities Other financial liabilities are recognised at amortised cost, which usually corresponds to nominal value.
Prepayments Deferred income comprises income received for recognition in subsequent financial years. Deferred income is measured at amortised cost, which usually corresponds to the nominal value.
Cash flow statement 
The cash flow statement of the Group is presented using the indirect method and shows cash flows from operating, investing and financing activities, as well as the Group’s cash and cash equivalents at the be-ginning and the end of the financial year. No separate cash flow statement has been prepared for the Parent Company because it is included in the consolidated cash flow statement.
Cash flows from acquisition and divestment of new en-terprises are shown separately under cash flows from investing activities. Cash flows from acquired enterpris-es are recognised in the cash flow statement from the time of their acquisition, and cash flows from divested enterprises are recognised up to the time of sale.
Cash flows from operating activities are calculated as the operating profit/loss adjusted for non-cash operating items, working capital changes and income taxes paid.
Cash flows from investing activities comprise pay-ments in connection with acquisition and divestment of enterprises and activities, as well as purchase and sale of intangible assets, property, plant and equip-ment, and fixed asset investments.
ROYAL GREENLAND A/S - 2017ANNUAL REPORT6160
GroupParent
   Note201712 mo.DKK 1,000
2015/1615 mo.DKK 1,000
201712 mo.DKK 1,000
2015/1615 mo.DKK 1,000
Revenue15,612,8477,104,9652,764,9783,287,550
Change in inventories of finished goods(67,132)241,156(31,485)162,501
Other operating income234,77948,84738,75027,226
5,580,4947,394,9682,772,2433,477,277
Costs of raw materials and consumables(3,358,458)(4,626,090)(1,457,303)(1,752,659)
Other external expenses(822,053)(1,028,047)(456,635)(589,027)
Staff costs3(979,033)(1,164,121)(617,903)(740,585)
Depreciation, amortisation and impairment losses4(168,636)(239,584)(100,709)(146,996)
Other operating costs(1,224)(391)(440)(160)
Operating profit251,090336,735139,253247,850
Profit/loss from investments in group enterprises after tax50038,41827,057
Profit/loss from investments in associates after tax636,74728,52412,318(403)
Financial income739,06959,89327,22421,230
Financial expenses8(73,937)(89,940)(46,177)(52,423)
Profit before tax252,969335,212171,036243,311
Tax on profit9(94,977)(132,492)(42,360)(69,864)
Profit after tax157,992202,720128,676173,447
Minority interests’ share of profit/loss after tax of group enterprises(29,316)(29,273)--
PROFIT FOR THE YEAR128,676173,447128,676173,447
Proposed distribution of profit
Reserve for net revaluation according to the equity method00
Proposed dividend64,338100,000
Retained earnings64,33873,447
128,676173,447
INCOME STATEMENTCash flows from financing activities comprise changes in the size or composition of the Group’s share capital and related costs, as well as the raising of loans, instalments on interest-bearing debt, and payment of dividends to shareholders.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk, less short-term bank debt.
Segment information The primary segment of the Group is the business segment. The geographical markets comprise the secondary segment. 
Management assesses that the Group solely operates with one individual business segment, so that the business segment information required in respect of net revenue, profit/loss before financial items, value of fixed assets and value of liabilities appears from the consolidated income statement and balance sheet.
The geographical markets are split into European coun-tries and other markets.
Financial Highlights and Key Ratios  "Net interest-bearing debt" is calculated after set-off of derivative financial instruments with a positive value. In the calculation of equity ratio and net interest-bearing debt/EBITDA, derivative financial instruments with a positive value are set off to both total assets and net interest-bearing debt.
As the 2015/16 financial year comprises 15 months, the figures from the income statement for the finan-cial year are converted pro rata to 12 months, to the extent that they are included in the calculation of key figures.
Financial highlights and key ratios are calculated as follows.
EBIT margin
EBT margin
ROIC including goodwill
Return on equity (ROE)
Equity ratio
Net interest-bearing debt / EBITDA
Profit from primary operations, including associated companies  x 100Net revenue
EBT x 100Net revenue
EBITA x 100Average invested capital including goodwill
Net profit/loss for the year  x 100Average equity
Equity  x 100Balance sheet total
Net interest-bearing debtEBITDA
ROYAL GREENLAND A/S - 2017ANNUAL REPORT6362
GroupParent
   Note31.12.17DKK 1,00031.12.16DKK 1,00031.12.17DKK 1,00031.12.16DKK 1,000
Share capital850,000850,000850,000850,000
Reserve for net revaluation under the equity method0000
Retained earnings502,142464,351502,142464,351
Proposed dividend 64,338100,00064,338100,000
EQUITY1,416,4801,414,3511,416,4801,414,351
Minority interests18119,189103,513--
Deferred tax19153,419126,76372,50155,656
Other provisions207,5817,8290366
PROVISIONS161,000134,59272,50156,022
Mortgage debt09700
Other credit institutions894,3841,152,215894,3841,146,862
Other long-term debt117,730119,52200
Derivative financial instruments48,19943048,199430
Long-term liabilities other than provisions211,060,3131,272,264942,5831,147,292
Short-term portion of long-term liabilities other than provisions139,727405,857135,491398,477
Credit institutions480,057220,518140,05070,783
Trade payables597,669605,838178,137139,262
Payables to Group enterprises00588,845295,860
Payables to associates53,06744,09553,06744,095
Income taxes950,85258,55428,55838,745
Other payables22271,094262,027185,183164,238
Deferred income8,39730,69200
Short-term liabilities other than provisions1,600,8631,627,5811,309,3311,151,460
LIABILITIES OTHER THAN PROVISIONS2,661,1762,899,8452,251,9142,298,752
EQUITY AND LIABILITIES4,357,8454,552,3013,740,8953,769,125
Assets charged and contingent liabilities23
Other notes24-28
GroupParent
   Note31.12.17DKK 1,00031.12.16DKK 1,00031.12.17DKK 1,00031.12.16DKK 1,000
Intangible assets10188,675190,94550,87953,879
Buildings279,779301,309207,793175,195
Plant and machinery213,256232,586116,435111,360
Vessels395,619423,631165,788181,924
Other fixtures and fittings, tools and equipment26,61925,69820,74619,290
Fixed assets in progress201,28688,106193,44474,368
Property, plant and equipment111,116,5591,071,330704,206562,137
Investments in group enterprises12001,814,3631,827,250
Receivables from Group enterprises130055,56059,975
Investments in associates12113,93587,32018,45414,908
Receivables from associates1318,78821,1049,7872,104
Derivative financial instruments25,101150,53525,101150,535
Other fixed asset investments14159,72366,17158,37342,086
Fixed asset investments317,547325,1301,981,6382,096,858
FIXED ASSETS1,622,7811,587,4052,736,7232,712,874
Inventories151,561,8261,743,617732,092746,144
Trade receivables793,527739,7138,3758,481
Receivables from Group enterprises00111,561179,097
Other receivables1658,67645,22417,2279,866
Deferred tax assets1967,562103,05000
Income tax receivable4355,69300
Prepayments1710,61716,3781,6324,170
Receivables930,817910,058138,795201,614
Cash242,421311,221133,285108,493
CURRENT ASSETS2,735,0642,964,8961,004,1721,056,251
ASSETS4,357,8454,552,3013,740,8953,769,125
ASSETSEQUITY AND LIABILITIES
ROYAL GREENLAND A/S - 2017ANNUAL REPORT6564
SharecapitalDKK 1,000
Retained earningsDKK 1,000
ProposeddividendDKK 1,000TotalDKK 1,000
Equity at October 1st 2015850,000357,28656,5001,263,786
Exchange rate adjustment06,88506,885
Fair value adjustments recognised in equity0(7,188)0(7,188)
Tax, fair value adjustments02,39002,390
Dissolved value adjustment for sold company0(269)0(269)
Paid dividend00(56,500)(56,500)
Tax, proposed dividend031,800031,800
Net profit for the year073,447100,000173,447
Equity at December 31st 2016850,000464,351100,0001,414,351
Exchange rate adjustment0(26,096)0(26,096)
Fair value adjustments recognised in equity0(3,220)0(3,220)
Tax, fair value adjustments01,02401,024
Dissolved value adjustment for sold company0(18,714)0(18,714)
Paid dividend00(100,000)(100,000)
Tax, proposed dividend020,459020,459
Net profit for the year064,33864,338128,676
Equity at December 31st 2017850,000502,14264,3381,416,480
SharecapitalDKK 1,000
Reserve under the equity methodDKK 1,000
Retained earningsDKK 1,000
ProposeddividendDKK 1,000TotalDKK 1,000
Equity at October 1st 2015850,0000357,28656,5001,263,786
Exchange rate adjustment006,88506,885
Fair value adjustments recognised in equity00(7,188)0(7,188)
Tax, fair value adjustments002,39002,390
Dissolved value adjustment for sold company00(269)0(269)
Paid dividend000(56,500)(56,500)
Tax, proposed dividend0031,800031,800
Net profit for the year0073,447100,000173,447
Equity at December 31st 2016850,0000464,351100,0001,414,351
Exchange rate adjustment00(26,096)0(26,096)
Fair value adjustments recognised in equity00(3,220)0(3,220)
Tax, fair value adjustments001,02401,024
Dissolved value adjustment for sold company00(18,714)0(18,714)
Paid dividend000(100,000)(100,000)
Tax, proposed dividend0020,459020,459
Net profit for the year0064,33864,338128,676
Equity at December 31st 2017850,0000502,14264,3381,416,480
STATEMENT OF CHANGES IN EQUITY  - GROUPSTATEMENT OF CHANGES IN EQUITY  - PARENT
The company's share capital consists of 850,000 shares of DKK 1,000 or multiples thereof. The share capital is not divided into classes.  There have been no changes in the share capital for the last 5 years.
ROYAL GREENLAND A/S - 2017ANNUAL REPORT6766
GroupParent
1    Net revenue - Geographical markets201712 mo.DKK 1,000
2015/1615 mo.DKK 1,000
201712 mo.DKK 1,000
2015/1615 mo.DKK 1,000
Europe3,782,0934,666,5912,582,8543,048,657
Other markets1,830,7542,438,374182,124238,893
5,612,8477,104,9652,764,9783,287,550
2   Other operating income
Management fees2,7842,6428,9777,023
Rental income4,2915,4463,3193,431
Sale of quotas4,6288,9286,12813,148
Profit on sale of fixed assets15,40821,80418,189995
Received grants3,0234,48200
Other operating income4,6455,5452,1372,629
34,77948,84738,75027,226
3   Staff costs
The total amount of wages and salaries etc. is specified as follows:
Wages and salaries876,9401,051,560553,256669,450
Pension contributions and other social costs49,16250,57733,31238,299
Other personnel costs52,93161,98431,33532,836
979,0331,164,121617,903740,585
Average number of employees2,5332,7691,3881,415
Remuneration for the Supervisory Board and Executive Board
Remuneration for the Parent Company’s Supervisory Board2,2002,750
Executive BoardFixed salaryBonus
Mikael Thinghuus4,323
Nils Duus Kinnerup2,760
Bruno Olesen2,606
Lars Nielsen2,606
Total Executive Board12,2952,77415,06917,859
   Note201712 mo.DKK 1,000
2015/1615 mo.DKK 1,000
Net profit for the year128,676173,447
Adjustments relating to net profit for the year29273,961370,893
Working capital changes30137,416(131,580)
Cash flows from operating activities before net financials540,053412,760
Ingoing payments relating to financial items12,39546,034
Outgoing payments relating to financial items(58,253)(58,959)
Cash flows from ordinary activities494,195399,835
Paid taxes(55,595)(86,681)
Cash flows from operating activities438,600313,154
Purchase of net assets connected to business transfer0(120,625)
Purchase of intangible and tangible fixed assets(337,852)(401,125)
Purchase of shares in associates(2,917)(42)
Purchase of other financial fixed assets(64,140)(29,346)
Sale of net assets by transfer of company ownership105,2110
Sale of intangible and tangible fixed assets23,63430,117
Sale of shares in associates5070
Sale of other financial fixed assets5,62133,616
Dividends received from associates11,4223,228
Cash flows from investing activities(258,514)(484,177)
Proceeds from obtaining/(instalments on) long-term liabilities(343,609)330,472
Paid dividend(100,000)(56,500)
Supply of capital from minority interests07,414
Dividends paid during the year to minority interests(13,640)(10,912)
Cash flows from financing activities(457,249)270,474
Increase/decrease in cash and cash equivalents(277,163)99,451
Cash and cash equivalents, beginning of year90,703(28,775)
(Reduction)/addition connected to business transfer(51,176)20,027
Cash and cash equivalents, end of year31(237,636)90,703
CONSOLIDATED CASH FLOW STATEMENTNOTES TO THE FINANCIAL STATEMENTS
ROYAL GREENLAND A/S - 2017ANNUAL REPORT6968
GroupParent
4   Depreciation, amortisation and impairment losses201712 mo.DKK 1,000
2015/1615 mo.DKK 1,000
201712 mo.DKK 1,000
2015/1615 mo.DKK 1,000
Buildings27,31147,96922,04930,662
Plant and machinery49,47762,69329,01233,268
Vessels63,25787,52435,88955,204
Other fixtures and fittings, tools and equipment8,7728,7606,8906,948
Goodwill6,0767,5342,9983,780
Quotas4,4265,3731,3121,640
Software and licences2,8153,8492,5593,730
Development costs011,764011,764
Other intangible assets6,5024,11800
168,636239,584100,709146,996
5   Profit/loss from investments in Group enterprises
Profit0062,15942,123
Loss00(35,535)(12,454)
Change in intra-group profits0011,794(2,612)
0038,41827,057
6   Profit/loss from investments in associates
Profit37,67636,68013,2477,753
Loss(929)(8,156)(929)(8,156)
36,74728,52412,318(403)
GroupParent
7   Financial income201712 mo.DKK 1,000
2015/1615 mo.DKK 1,000
201712 mo.DKK 1,000
2015/1615 mo.DKK 1,000
Capital gains31,37946,95120,19011,227
Interest from Group enterprises--4,0874,010
Interest on bank deposit2221,2240315
Income from fixed asset investments3,6674,4002,0622,088
Other financial income3,8017,3188853,590
39,06959,89327,22421,230
8   Financial expenses
Capital loss41,03735,85820,96010,971
Interest on bank and mortgage debt30,79943,28425,20837,396
Other financial expenses2,10110,79894,056
73,93789,94046,17752,423
9   Tax on profit
Current tax for the year(84,744)(106,150)(51,091)(72,867)
Other taxes(4,951)(3,804)(4,287)(2,880)
Adjustment to previous years(433)0(433)0
Deferred tax for the year(4,849)(22,538)13,4515,883
(94,977)(132,492)(42,360)(69,864)
Reconciliation of tax rate:
Greenland tax rate 32% 32% 32% 32%
Other taxes 2% 1%  2% 1% 
Capitalisation of tax asset in foreign enterprises 3%5% 0% 0% 
Effect of difference in tax rate between Greenland and foreign enterprises 2%2% 0%0%
Tax free income (net) from affiliated and associated companies etc. (1)%0% (9)%(4)%
Tax rate expensed 38%40% 25% 29%
NOTES TO THE FINANCIAL STATEMENTSNOTES TO THE FINANCIAL STATEMENTS
ROYAL GREENLAND A/S - 2017ANNUAL REPORT7170
10   Intangible assets  Group goodwillDKK 1,000Quotas DKK 1,000
IT andlicensesDKK 1,000
Develop-ment projectDKK 1,000
Other  intangibleassetsDKK 1,000
Cost at January 1st 2017100,248153,94636,42811,764113,119
Disposals on sale of companies00(445)00
Value adjustment at closing price(217)0130(6,250)
Additions for the year003,880023,614
Disposals for the year00(85)0(3,837)
Cost at December 31st 2017100,031153,94639,79111,764126,646
Amortisation and impairment losses at January 1st 2017(42,326)(135,302)(30,926)(11,764)(4,242)
Disposals on sale of companies0038800
Value adjustment at closing price120(12)0404
Amortisation for the year(6,076)(4,426)(2,815)0(6,502)
Impairment for the year00000
Amortisation regarding disposals for the year008400
Amortisation and impairment losses at December 31st 2017(48,390)(139,728)(33,281)(11,764)(10,340)
Carrying amount at December 31st 201751,64114,2186,5100116,306
Carrying amount at December 31st 201657,92218,6445,5020108,877
Parent
10   Intangible assetsGoodwillDKK 1,000Quotas DKK 1,000ITDKK 1,000
Develop-ment projectsDKK 1,000
Cost at January 1st 201752,991118,71634,92611,764
Additions for the year003,8690
Disposals for the year0000
Cost at December 31st 201752,991118,71638,79511,764
Amortisation and impairment losses at January 1st 2017(9,205)(113,386)(30,163)(11,764)
Amortisation for the year(2,998)(1,312)(2,559)0
Impairment for the year0000
Amortisation regarding disposals for the year0000
Amortisation and impairment losses at December 31st 2017(12,203)(114,698)(32,722)(11,764)
Carrying amount at December 31st 201740,7884,0186,0730
Carrying amount at December 31st 201643,7865,3304,7630
NOTES TO THE FINANCIAL STATEMENTSNOTES TO THE FINANCIAL STATEMENTS
ROYAL GREENLAND A/S - 2017ANNUAL REPORT7372
11   Property, plant and equipment  Buildings DKK 1,000
Plant and machineryDKK 1,000VesselsDKK 1,000
Other fixtures etc.DKK 1,000
Fixed assets in progressDKK 1,000
Cost at January 1st 20171,072,838889,944971,80984,00588,106
Disposals on sale of companies(104,324)(162,083)0(1,201)(3,962)
Value adjustment at closing price1,071(2,722)(3,564)(972)(166)
Transferred from assets in progress35,15527,9687,8521,927(72,902)
Additions for the year45,75335,33929,4489,776194,093
Disposals for the year(2,809)(15,122)(1,519)(5,689)(3,883)
Cost at December 31st 20171,047,684773,3241,004,02687,846201,286
Amortisation and impairment losses at January 1st 2017(771,529)(657,358)(548,178)(58,307)-
Disposals on sale of companies28,217134,3800515-
Value adjustment at closing price5484702,142783-
Amortisation for the year(27,311)(49,477)(63,257)(8,772)-
Amortisation regarding disposals for the year2,17011,9178864,554-
Amortisation and impairment losses at December 31st 2017(767,905)(560,068)(608,407)(61,227)-
Carrying amount at December 31st 2017279,779213,256395,61926,619201,286
Carrying amount at December 31th 2016301,309232,586423,63125,69888,106
Parent
11   Property, plant and equipment     Buildings DKK 1,000
Plant and machineryDKK 1,000VesselsDKK 1,000
Other fixtures etc.DKK 1,000
Fixed assets in progressDKK 1,000
Cost at January 1st 2017793,986432,692559,71660,82374,368
Transferred from assets in progress34,23621,9895,4591,928(63,612)
Additions for the year23,48914,56514,4187,458185,456
Disposals for the year(19,528)(10,102)(279)(4,956)(2,768)
Cost at December 31st 2017832,183459,144579,31465,253193,444
Amortisation and impairment losses at January 1st 2017(618,791)(321,332)(377,792)(41,533)-
Amortisation for the year(22,049)(29,012)(35,889)(6,890)-
Amortisation regarding disposals for the year16,4507,6351553,916-
Amortisation and impairment losses at December 31st 2017(624,390)(342,709)(413,526)(44,507)-
Carrying amount at December 31st 2017207,793116,435165,78820,746193,444
Carrying amount at December 31st 2016175,195111,360181,92419,29074,368
NOTES TO THE FINANCIAL STATEMENTSNOTES TO THE FINANCIAL STATEMENTS
Value according to public land assessmentThe public land assessment relating to property in Denmark amounts to DKK 45,000k. The buildings in Denmark have a carrying amount of DKK 7,627k.
No public land assessment is made in Greenland. The carrying amount of properties in Greenland amounts to DKK 210,061k.
No public land assessment is made in Greenland. The carrying amount of properties in Greenland amounts to DKK 207,793k.
ROYAL GREENLAND A/S - 2017ANNUAL REPORT7574
GroupParent
12   Investments in group enterprises and associatesAssociatesDKK 1,000AssociatesDKK 1,000
GroupenterprisesDKK 1,000
Cost at January 1st 201724,34015,1292,031,337
Additions for the year2,9172,91711,000
Disposals for the year(42)(42)0
Cost at December 31st 201727,21518,0042,042,337
Value adjustments at January 1st 201762,614(587)(204,087)
Exchange rate adjustments(754)(237)(25,859)
Share of profit/loss for the year36,74712,31838,418
Dividends(16,355)(15,513)(17,732)
Capital adjustments for the year4,9334,933(18,714)
Disposals for the year(465)(464)0
Value adjustments at December 31st 201786,720450(227,974)
Carrying amount at December 31st 2017113,93518,4541,814,363
Carrying amount at December 31st 201687,32014,9081,827,250
GroupParent
13   Receivables from subsidiaries and associatesAssociatesDKK 1,000AssociatesDKK 1,000
GroupenterprisesDKK 1,000
Cost at January 1st 201721,1042,10459,975
Value adjustment000
Additions for the year7,9697,9683,119
Disposals for the year(10,285)(285)(7,534)
Cost at December 31st 201718,7889,78755,560
Carrying amount at December 31st 201718,7889,78755,560
Carrying amount at December 31st 201621,1042,10459,975
GroupParent
14   Other fixed asset investmentsDKK 1,000DKK 1,000
Cost at January 1st 201780,81653,905
Value adjustment(1,846)0
Additions for the year99,75321,024
Disposals for the year(5,621)(5,621)
Cost at December 31st 2017173,10269,308
Provisions for bad debts at January 1st 2017(14,645)(11,819)
Value adjustment3820
Change in provisions for the year884884
Provisions for bad debts at December 31st 2017(13,379)(10,935)
Carrying amount at December 31st 2017159,72358,373
Carrying amount at December 31st 201666,17142,086
NOTES TO THE FINANCIAL STATEMENTSNOTES TO THE FINANCIAL STATEMENTS
In the Group, the differential value on acquisition of investments in associates amounts to DKK 7,311k.  The carrying amount at 31.12.2017 amounts to DKK 0k.
In the parent, the original differential value on acquisition of investments in associates amounts to DKK 60k.  The carrying amount at 31.12.2017 amounts to DKK 0k.
ROYAL GREENLAND A/S - 2017ANNUAL REPORT7776
GroupParent
15   Inventories31.12.2017DKK 1,00031.12.2016DKK 1,00031.12.2017DKK 1,00031.12.2016DKK 1,000
Raw materials401,036443,18745,04438,253
Goods in progress13,03772,6733,5024,757
Finished goods1,045,5901,122,763606,829638,314
Other goods102,163104,99476,71764,820
1,561,8261,743,617732,092746,144
Goods at net realisable value included in booked value of inventories54,842218,61841,689109,041
16   Other receivables
Insurance compensation receivable15,565015,4670
VAT and duty receivable13,0028,33300
Other receivables30,10936,8911,7609,866
58,67645,22417,2279,866
17   Prepayments
Prepaid rent and consumption taxes3,2663,75200
Other prepayments7,35112,6261,6324,170
10,61716,3781,6324,170
18   Minority interests
Minority interests at January 1st 2017103,51377,738
Addition07,414
Disposal00
Share of profit/loss for the year29,31629,273
Dividend and capital adjustments(13,640)(10,912)
Minority interests at December 31st 2017119,189103,513
GroupParent
19   Deferred tax31.12.2017DKK 1,00031.12.2016DKK 1,00031.12.2017DKK 1,00031.12.2016DKK 1,000
Deferred tax incumbent on the following items:
Property, plant and equipment103,275102,07459,56766,223
Fixed asset investments37,91135,07400
Other items12,233(10,385)12,934(10,567)
153,419126,76372,50155,656
Deferred tax assets incumbent on the following items:
Loss carried forward30,97714,80600
Other tax assets36,58588,24400
67,562103,05000
20   Other provisions
Other provisions at January 1st 20177,8297,44200
Value adjustments(632)000
Additions for the year7503870366
Disposals for the year(366)000
Other provisions at December 31st 20177,5817,8290366
NOTES TO THE FINANCIAL STATEMENTSNOTES TO THE FINANCIAL STATEMENTS
Other provisions concern pensions.
ROYAL GREENLAND A/S - 2017ANNUAL REPORT7978
GroupParent
21   Long-term liabilities other than provisions31.12.2017DKK 1,00031.12.2016DKK 1,00031.12.2017DKK 1,00031.12.2016DKK 1,000
The following amounts fall due for payment after five years or more:
Other credit institutions307,845834,184291,762834,086
Derivative financial instruments23,582023,5820
331,427834,184315,344834,086
Interest and terms to maturity of long-term  liabilities (Group, translated into DKK)Weightedterm (years)Fixed/floating Effective rate of interest        2017                 2015/16Nominal value DKKm        2017                 2015/16
Mortgage debt---3.29%-6
Debt to associated companies4Floating3.89%4.0%3131
Private Placements 5Fixed/floating1.99%1.80%1,0531,390
1,0841,427
Weighted average effective rate of interest 2.05%1.86%
GroupParent
22   Other payables31.12.2017DKK 1,00031.12.2016DKK 1,00031.12.2017DKK 1,00031.12.2016DKK 1,000
Wages and salaries, personal income taxes, social security costs, etc payable98,97393,53469,85664,162
Holiday pay obligation43,54545,15135,21035,787
Interest4,7724,8084,2624,611
VAT and duties71,43962,47163,69144,945
Derivative financial instruments4,66806420
Other costs payable47,69756,06311,52214,733
271,094262,027185,183164,238
GroupParent
23   Assets charged and contingent liabilities31.12.2017DKK 1,00031.12.2016DKK 1,00031.12.2017DKK 1,00031.12.2016DKK 1,000
Assets charged
Mortgage debt has been secured on property, plant and equipment at a carrying amount of185,016189,48300
Contractual obligations
Contracts have been made relating to delivery of fixed assets at a carrying amount of496,96138,189496,96136,060
Lease commitments falling due after the balance sheet date amount to56,62750,86932,98643,407
Hereof due within one year30,63028,54122,75624,927
Recourse and non-recourse guarantee commitments
Associates10,000000
Third party6,11814,7946,1189,217
Group enterprises--546,382465,953
NOTES TO THE FINANCIAL STATEMENTSNOTES TO THE FINANCIAL STATEMENTS
Contingent liabilities The Royal Greenland Group has some pending lawsuits, including inquiries from the tax authorities. Management believes that the outcome of these lawsuits and inquiries will not have a material impact on the Group’s financial position.
ROYAL GREENLAND A/S - 2017ANNUAL REPORT8180
24   Financial riscs   ReceivablesDKK 1,000LiabilitiesDKK 1,000
Hedged byforwardexchangecontractsand optionsDKK 1,000
NetpositionDKK 1,000
Positions in the most important currencies:
USD192,650(155,588)(49,372)(12,310)
GBP40,055(25,877)(52,162)(37,984)
SEK14,477(21,291)(14,823)(21,637)
JPY60,762(23,071)(60,292)(22,601)
307,944(225,827)(176,649)(94,532)
GroupReassessment/maturity date
Withinone yearDKK 1,000
Withintwo-five yearsDKK 1,000
Afterfive yearsDKK 1,000
Hereof fixed-rateloan DKK 1,000
Effectiverate of interest%
Mortgage and credit institutions, loans(133,661)(606,479)(312,417)(619,629)0  –  7.25
GroupParent
25   Fees to auditors appointed by the general meeting201712 mo.DKK 1,000
2015/1615 mo.DKK 1,000
201712 mo.DKK 1,000
2015/1615 mo.DKK 1,000
Audit fee2,7622,7361,3301,330
Other declarations from auditor1713699
Tax advisory services8751,2726801,002
Other services552931411580
Adjustments concerning previous years114289039
4,3205,1032,5202,960
26   Related parties
27   Divested activities
NOTES TO THE FINANCIAL STATEMENTSNOTES TO THE FINANCIAL STATEMENTS
Related parties of the Group are the members of the Supervisory and the Executive Boards, as well as the owner, the Government of Greenland.
In the current financial year, the Group has not executed any transactions with the Supervisory and Executive Boards other than management remuneration,  as disclosed in Note 3.
The divested activities are included in the net revenue for 2017 at DKK 25 million (2015/16 DKK 54 million).
At the end of 2016, the fixed assets in the divested activities amounted to DKK 122 million, while the current assets in the divested activities amounted to DKK 295 million.
Foreign exchange contracts solely cover commercial positions.
Interest-rate exposureThe agreed reassessment and repayment dates of the Group’s financial assets and liabilities are specified below according to maturity date. The effective interest rates have been determined on the basis of the current interest rate level at 31.12.2017.
Cash and cash equivalents amount to DKK 242,421k and have a bearing effective rate of interest from 0.0 to 2.0%. Short-term credits amount to DKK 480,057k. Short-term credits have a bearing effective rate of interest from 0.5 – 1.5%.
ROYAL GREENLAND A/S - 2017ANNUAL REPORT8382
28    The managerial positions held by members of the Supervisory Board and Executive Board  in other Greenlandic and Danish public limited companies
 The managerial positions held by members of the Supervisory Board and Executive Board in other Greenlandic and Danish public limited companies except for mana-gerial positions in wholly owned subsidiaries.
Supervisory BoardCompanyManagerial position
Niels de Coninck-SmithChairmanOrifarm Group A/SWelltec A/SChairmanChairman
Jan Harald Lynge-PedersenDeputy Chairman
KNI Ejendomme A/SNeqi A/SAkia Sisimiut A/S
Member of the Supervisory BoardMember of the Supervisory BoardMember of the Supervisory Board
Pernille Fabricius
Atak A/SMT Højgaard  A/SHøjgaard Holding A/SGabriel Holding A/SGabriel A/SGabriel Ejendomme A/SGabriel Innovation A/SZenxit A/SNC TopCo A/S
ChairmanMember of the Supervisory BoardMember of the Supervisory BoardMember of the Supervisory BoardMember of the Supervisory BoardMember of the Supervisory BoardMember of the Supervisory BoardMember of the Supervisory BoardMember of the Supervisory Board
Tim Ørting JørgensenSystem Frugt Holding A/SSystem Frugt A/SChairmanChairman
Niels Ole MøllerInughuit Seafood A/SChief Executive Officer
Executive BoardCompanyManagerial position
Mikael Thinghuus CEOIce Trawl Greenland A/SToms Gruppen A/SMember of the Supervisory BoardMember of the Supervisory Board
Nils Duus Kinnerup CFOIntego A/SProniq Holding A/SMember of the Supervisory BoardMember of the Supervisory Board
Bruno Olesen Group Sales DirectorSkare Meat Packers K/SSkare Food A/SChairmanMember of the Supervisory Board
Lars Nielsen Group Production Director
Gaia Fish A/SPelagic Greenland A/SInughuit Seafood A/S Gaia Fish A/SIce Trawl Greenland A/S
Chief Executive OfficerChairmanDeputy ChairmanMember of the Supervisory BoardMember of the Supervisory Board
29   Adjustments relating to net profit for the year201712 mo.DKK 1,000
2015/1615 mo.DKK 1,000
Depreciation, amortisation and impairment losses168,636239,584
Minority interests29,31629,273
Financial items allocated to profit for the year34,86830,047
Income taxes expensed94,977132,492
Provisions, etc,118(6,084)
Received grants(3,023)(4,482)
Gains and losses from sale of fixed assets(14,184)(21,413)
Profit from associates(36,747)(28,524)
273,961370,893
30   Working capital changes
Change in receivables(83,488)(134,112)
Change in inventory161,16938,606
Change in trade payables and other payables59,735(36,074)
137,416(131,580)
31   Cash and cash equivalents, end of year
Cash and cash equivalents, end of year242,421311,221
Credit institutions, end of year(480,057)(220,518)
(237,636)90,703
NOTES TO THE FINANCIAL STATEMENTSNOTES TO THE FINANCIAL STATEMENTS
Of the liquid assets of TDKK 242,421, the amount of TDKK 58,180 is provided as security for financial contracts.
ANNUAL REPORT
ROYAL GREENLAND A/S - 201785
Corporate Governance
Royal Greenland complies with the guidelines of the Government of Greenland for corporate governance in government-owned companies. These guidelines accord with the OECD recommendations for state-owned companies, and to a large extent also with the recommendations for listed companies.
Royal Greenland is headed by a Board of Directors and Executive Management Board. The Board of Directors has nine members, three of whom are employee representatives elected for a period of four years, while the other six members are elected by the gener-al meeting and stand for election every year. The six board members elected by the general meeting are independent, according to the definition contained in the recommendation of the "Committee for Good Corporate Governance". There is no age limit for the members of the Board of Directors.
The board members encompass a spectrum of expe-rience from the Greenlandic, Danish and international business worlds. The Board of Directors is led by the Chairman, Niels Harald de Coninck-Smith. The chair-man is appointed for a period of one year at a time. 
The Supervisory Board has established two  committees:
• The Audit Committee • The Recruitment Committee
The Executive Management Board consists of four members: CEO Mikael Thinghuus, CFO Nils Duus Kinnerup, Group Production Director Lars Nielsen and Group Sales and Marketing Director Bruno Olesen. For other offices held by the Board of Directors and the Executive Management Board, see Note 28.   
Remuneration The remuneration of members of the Board of Direc-tors is subject to the approval of the annual general meeting, and is specified in Note 3. The fee consists entirely of a basic fee, plus, for the Chairman, payment of expenses for secretarial assistance and telephone calls. The remuneration of the Executive Management Board is negotiated with the Board of Directors and consists of a fixed basic salary, a performance bonus and other customary non-monetary benefits, such as a company car, etc. The remuneration of the Executive Management Board is specified in Note 3. There are no unusual severance agreements in the employment contracts of the members of the Executive Manage-ment Board.
Evaluation An evaluation of the Board of Directors is undertaken annually. Every second year, this takes place on the basis of an external evaluation process.
Activities Five meetings of the Board of Directors were held in 2017. Two of these meetings were held according to plan as conference calls, while the other meetings were held in Reykjavik and Copenhagen. The Audit Committee held three meetings. In addition to the annual accounts and audit minutes, the committee also considers financial policy, risk and insurance policies, internal audits, financial conditions and audit evaluation. 
SUPERVISORY BOARD 
EXECUTIVE BOARD 
CHAIRMAN NIELS HARALD DE  CONINCK-SMITH
BOARDMEMBER TIM ØRTING  JØRGENSEN
BOARDMEMBER PETER KORSBÆK *)
BOARDMEMBER LARS BERTHELSEN *)
CEO MIKAEL THINGHUUS
GROUP PRODUCTIONDIRECTOR LARSNIELSEN
DEPUTY CHAIRMAN JAN H. LYNGE PEDERSEN
BOARDMEMBER PERNILLE FABRICIUS
BOARDMEMBER SARA HEILMANN
BOARDMEMBER ÅSE AULIE MICHELET
BOARDMEMBER NIELS OLE MØLLER *)
*) Employee  representatives
CFO NILS DUUS KINNERUP
GROUPSALESDIRECTOR BRUNO OLESEN
ROYAL GREENLAND A/S - 2017ANNUAL REPORT8786
Royal Greenland A/S
Associated
Royal Greenland Seafood A/S
Pelagic  Greenland A/S
Arctic FishGreenland A/S
Gaia Fish A/S
Inughuit  Seafood A/S
Ice Trawl  Greenland A/S
Agama Royal Greenland LLC
Akia Sisimiut A/S
Angunnguaq A/S
Ejendomsselskabet Suliffik A/S
Frans Peter ApS
Isblink A/S
Lennert og Sønner ApS
Savik ApS
Royal Greenland Germany GmbH 
Royal Greenland Poland Sp. zoo
Quin-Sea Fisheries Ltd
Eastern Quebec Seafoods Ltd
Royal Greenland Norway AS
Royal Greenland Sweden AB
Royal Greenland UK Ltd.
Royal Greenland Japan Ltd.
Royal Greenland Italy Spa.
Qaleralik A/Sassociated
Quinlan Brothers  Maritime Ltd.,associated
Royal Greenland Rusland LLC
Royal Greenland Vertriebs GmbH
Gaia Fish A/S
Royal Greenland Seafood (Qingdao) Co. Ltd.
COMPANY DETAILS & GROUP CHART
COMPANY
Royal Greenland A/S Qasapi 4 P.O. Box 1073 3900 Nuuk
Telephone: +299 32 44 22 Telefax: +299 32 33 49 www.royalgreenland.com
CVR-no. 13645183
FINANCIAL YEAR:  January 1st  – December 31st  REGISTERED IN: Kommuneqarfik Sermersooq
The Government of Greenland owns all shares in the Company
AUDITORS: EY Grønland Godkendt Revisionsanpartsselskab
ROYAL GREENLAND A/S - 2017ANNUAL REPORT8988
Qaarsut / Uummannaq  ■    ■   Saattut 
■   Ikerasak 
■   Nuugaatsiaq 
■   Kullorsuaq 
■   Nutaarmiut 
■   Tasiusaq 
■   Upernavik 
Aappilattoq ■  Innaarsuit ■  
Upernavik Kujalleq ■  
■   Nuussuaq 
■   Qaanaaq 
Ukkusissat  ■    
Royal Greenland owns 39 facilities in Greenland. All but three of these facilities are in operation. The factories in Greenland primarily land prawns, Greenland halibut, cod, crab and lumpfish roe. 
The facilities' activities range from production and packaging of finished products, to packaging of semi-manufactures for further processing in Asia or Poland, and e.g. block freezing and salting.
PRODUCTION UNITS IN GREENLAND
QaanaaqInnaarsuit
TasiusaqUkkusissat
Saattut
Ikerasak
Qaarsut
UummannaqAappilattoq (North)
KullorsuaqUpernavik
NuussuaqUpernavik Kujalleq
NutaarmiutNuugaatsiaq
 1950s1995
19971989
19491992
 19911983
 20101959
 19971990
Factory Manager: Avatannguaq ImiinaPrimary species: Greenland halibutProducts: Freezing and drying of Green-land halibutCapacity: 2 t/dayCold store capacity: 200 tonEmployees: 5 in the season 
As at 1/10 2014, J/V Inughuit Seafood A/S with 50% RG ownership. 
Factory Manager: Hans Peter KristensenPrimary species: Greenland halibutProducts: Freezing of Greenland halibutCapacity: 10 t/dayCold store capacity: 550 tonEmployees: 10-20 low/peak seasons 
Factory Manager: Søren KielmannPrimary species: Greenland halibutProducts: Freezing of Greenland halibutCapacity: 20 t/dayCold store capacity: 600 tonEmployees: 10-20 low/peak seasons 
Factory Manager: Johanne Knudsen SamuelsenPrimary species: Greenland halibutProducts: J-cut, heads, tails, whole fishCapacity: 4.5 t/dayCold store capacity: 100 tonEmployees: 1-10 low/peak seasons 
New freezing facilities in 2013, new drying house in 2013.
Factory Manager: Marie KnudsenPrimary species: Greenland halibutProducts: J-cut, heads, tails, whole fishCapacity: 7 t/dayCold store capacity: 400 tonEmployees: 1-15 low/peak seasons 
Current unit was refurbished in 1998, when the large freezing facility was also taken into use.
Factory Manager: Elisabeth FilemonsenPrimary species: Greenland halibutProducts: Whole fish, fillets with and without skinCapacity: 20 t/dayCold store capacity: 80 tonEmployees: 2-25 low/peak seasons 
The unit has only been refurbished to a small degree since it was established. New freezing facilities were established in 2008.
Factory Manager: -Primary species: -Products: -Capacity: -Cold store capacity: -Employees: - 
Not in operation
Factory Manager: Kirsten A. K. WormPrimary species: Greenland halibutProducts: Whole Greenland halibut, heads, tails, fillets and J-cutCapacity: 50 t/dayCold store capacity: 1,600 tonEmployees: 10-50 low/peak seasons 
Current location since 1966, but the unit has been expanded several times. In 2017 a large expansion took place.
Newly constructed in 2017
Factory Manager: Justine PetersenPrimary species: Greenland halibutProducts: Freezing of Greenland halibutCapacity: 15 t/dayCold store capacity: 450 tonEmployees: 4-10 low/peak seasons 
Factory Manager: Louise LarsenPrimary species: Greenland halibutProducts: Freezing of Greenland halibutCapacity: 4 t/dayCold store capacity: 500 tonEmployees: 4-10 low/peak seasons 
Factory Manager: Harald KleemanPrimary species: Greenland halibutProducts: Freezing of Greenland halibutCapacity: 5 t/dayCold store capacity: 200 tonEmployees: 4-10 low/peak seasons 
Factory Manager: Frederik OlsenPrimary species: Greenland halibutProducts: Freezing of Greenland halibutCapacity: 3 t/dayCold store capacity: 130 tonEmployees: 1-7 low/peak seasons 
Factory Manager: Magnus GrimPrimary species: Greenland halibutProducts: Freezing of Greenland halibutCapacity: 2 t/dayCold store capacity: 100 tonEmployees: 1-7 low/peak seasons 
Factory Manager: Arnannguaq EskildsenPrimary species: Greenland halibutProducts: Freezing of Greenland halibutCapacity: 12 t/dayCold store capacity: 600 tonEmployees: 10-15 low/peak seasons 
Destroyed by  tsunami in 2017
Factory Manager: -Primary species: -Products: -Capacity: -Cold store capacity: -Employees: - 
Not in operation
ROYAL GREENLAND A/S - 2017ANNUAL REPORT9190
■   Saqqaq 
■   Ilulissat 
■   Qasigiannguit 
■   Akunnaaq 
■   Niaqornaarsuk 
■   Sarfannguaq Sisimiut  ■  
Qeqertarsuaq  ■    Qeqertaq  ■    
Kangaatsiaq  ■    Ikamiut  ■    Kitsissuarsuit       ■    
Ikerasaarsuk  ■    Attu  ■    
Saqqaq
Qeqertaq
Ikamiut
QasigiannguitIkerasaarsuk
Sisimiut
Sisimiut (Roe)
Sarfannguaq
QeqertarsuaqAkunnaaq
IlulissatKangaatsiaq
KitsissuarsuitNiaqornaarsuk
1940s1950
1996-97
19341948
1920s1950s
1990s1948
Factory Manager: Mathias NielsenPrimary species: Greenland halibut, other fishProducts: Whole Greenland halibut frozen in blocksCapacity: 8 t/dayCold store capacity: 80 tonEmployees: 2-10 low/peak seasons 
The unit burned down in 2003. The current facility opened in 2005.
Factory Manager: Jakob BrobergPrimary species: Greenland halibutProducts: J-cut, whole fishCapacity: 20 t/dayCold store capacity: 100 tonEmployees: 15 low/peak seasons
Factory Manager: Thara JeremiassenPrimary species: NoneProducts: NoneCapacity: 0 t/dayCold store capacity: 20 tonEmployees: 0 
Factory Manager: Hans GrønvoldPrimary species: Greenland halibut,cod, other fish, lumpfish roeProducts: Greenland halibut fillets, frills, heads, IQF fillets, loins, cod fillet/wholeCapacity: 25 ton Greenland halibut/dayCold store capacity: 1,800 tonEmployees: 130 low/peak seasons 
Refurbished as a prawn factory in 1952 and several times later on. Closed in 1997. Recommenced operations in 2000 and refurbished in 2011.
Factory Manager: Klaus JonathansenPrimary species: Cod, lumpfish roeProducts: Salted fish from cod and ugaq, lumpfish roeCapacity: 5 t/dayCold store capacity: No cold storeEmployees: 1-10 low/peak seasons 
Renovated in 1995.
Factory Manager: Tikkili EzekiassenPrimary species: CodProducts: Salted fish, lumpfish roe, frozen cod and other speciesCapacity: 2 t/dayCold store capacity: 20 tonEmployees: 0 
Factory Manager: Hans Lars OlsenPrimary species: Prawns, cod, snow crabProducts: Cooked and peeled prawns, cod fillets, crab sections, codCapacity: 120 ton prawns, 15 ton snow crab/day, 50 ton cod/dayCold store capacity: 1,600 tonEmployees: 100 low/peak seasons 
Current unit built in 1969 for production of cod and prawns, renovated in 1992 and 2011 into a modern prawn processing facility.
Factory Manager: -Primary species: -Products: -Capacity: -Cold store capacity: -Employees: - 
Operational in roe season
Factory Manager: Lars Peter  BerthelsenPrimary species: CodProducts: Salted fish of cod and cod frozen in blocksCapacity: 15 t/dayCold store capacity: 80 tonEmployees: 1-13 low/peak seasons 
Renovated in 2005.
Factory Manager: Mona IsaksenPrimary species: Snow crab, cod, Green-land halibut, lumpfish roeProducts: Crab sections, fish frozen in blocks, lumpfish roe in barrelsCapacity: 10 ton snow crab, 1 ton fish/dayCold store capacity: 100 tonEmployees: 3-30 low/peak seasons 
The unit has previously handled prawn, meat and frill production, but now  produces crab and fish. 
Factory Manager: Peter NielsenPrimary species: NoneProducts: Dried fish. lumpfish roe from spring 2014Capacity: 0 t/dayCold store capacity: No cold storeEmployees: 0 
Factory Manager: Anders AndersenPrimary species: Prawns, Greenland halibutProducts: IQF prawns, prawnmeal, whole Greenland halibut, codCapacity: 120 t prawns, 20 t fish/dayCold store capacity: 1,600 tonEmployees: 100 low/peak seasons 
The current unit was established in 1961 and has been refurbished several times. New Greenland halibut factory in 1998, closed in 2009. Prawn factory renovated in 2010.
Factory Manager: Abia ThorsteinsenPrimary species: Cod, lumpfish roeProducts: Cod frozen in blocks, fillet, lumpfish roe in barrelsCapacity: 15 t/day freezingCold store capacity: 100 tonEmployees: 2-25 low/peak seasons 
The unit was renovated/built in 1986 in its current form with production of cod. Today, cod and other fish are frozen and in the season lumpfish roe is processed.  Rebuilt for cod fillet production 2015.
Factory Manager: -Primary species: -Products: -Capacity: -Cold store capacity: -Employees: - 
Not in operation
Factory Manager: Judithe WillePrimary species: Cod, lumpfish roeProducts: Salted fish, lumpfish roeCapacity: 5 t/dayCold store capacity: No cold storeEmployees: 4-10 low/peak seasons 
Refurbished and renovated in 1995. Expanded in 2013.
ROYAL GREENLAND A/S - 2017ANNUAL REPORT9392
Itilleq  ■   Maniitsoq ■   Atammik 
■   Paamiut 
Narsaq ■   Aappilattoq 
■   Kangaamiut   
Nuuk  ■    
Qeqertarsuatsiaat  ■    
Kangaamiut
Itilleq
Paamiut
QeqertarsuatsiaatNarsaq
Aappilattoq (south)
Maniitsoq
Atammik
19831951
1949-50
Factory Manager: Kristian LarsenPrimary species: Cod, wolffish, Greenland halibut, lumpfish roeProducts: Whole fish, Winter-dried cod, dried wolffish, lumpfish roe in barrelsCapacity: 5 t/dayCold store capacity: 30 tonEmployees: 4-16 low/peak seasons 
Renovated in 1994/95. Expansion of the freezing capacity and cold store.
Factory Manager: Otto EnoksenPrimary species: Cod and lumpfish roeProducts: Salted fish and lumpfish roeCapacity: 1.5 t/dayCold store capacity: 10 tonEmployees: 1-7 low/peak seasons 
Renovated in 1991/93 and in 1994/95.
Factory Manager: Jan JørgensenPrimary species: Snow crab, cod, lumpfish roe, other fishProducts: Crab sections, cod fillets,  dried cod, lumpfish roe, freezingCapacity: Crab sections 10 t/day, fillets 20 t/day Cold store capacity: 500 tonEmployees: 10-50 low/peak seasons 
Refurbished from cod production to smokehouse in 1997. Closed in 2003. Prawn and crab production established in 2004. In 2012, the prawn production was closed in favour of the cod filleting line. 
Factory Manager:  Ingvar MotzfeldtPrimary species: Cod, lumpfish roeProducts: Salted fish, cod IQF, cod frozen in blocks, lumpfish roe in barrelsCapacity: 4 ton salted fish, 18 ton fish/dayCold store capacity: 80 tonEmployees: 6-16 low/peak seasons 
Factory Manager: Niels SakariassenPrimary species: Lumpfish roe, codProducts: Lumpfish roe in barrelsCapacity: Freezing of 20 t/dayCold store capacity: 600 tonEmployees: 1-10 low/peak seasons 
Renovated in 1995.
Factory Manager: Nicolai Benjaminsen Primary species: Halibut, codProducts: FreezingCapacity: 4 t/dayCold store capacity: 70 tonEmployees: 3  
First sales of raw materials initiated in 2014 after refurbishment and modernisa-tion of cooling plant. 
Factory Manager: Susanne Marie KnudsenPrimary species: Nutaaq cod, snow crab, codProducts: Crab sections and fillets of fishCapacity: 5 ton snow crab-, 50 ton fish/dayCold store capacity: 500 tonEmployees: 25-100 low/peak seasons 
Filleting line and production of dried cod for the home market established.
Factory Manager: Tippu-Bolatta JakobsenPrimary species: Cod, wolffish,  lumpfish roeProducts: Whole fish, salted fish, lumpfish roe in barrelsCapacity: 3 ton freezing, 4 ton salting/dayCold store capacity: 8 tonEmployees: 4-20 low/lumpfish roe season
Expansion of the cold store and freezing capacity. 8-10 ton freezing, 4 ton salting. 
Factory Manager: Ilannguaq AbrahamsenPrimary species: Cod, Greenland halibut, redfish, wolffish, lumpfish roeProducts: Lumpfish roe, whole fish IQF, products for the home marketCapacity: 50 t/dayCold store capacity: 200 tonEmployees: 12-40 low/peak seasons 
Godthåb Fiskeindustri taken over in 1990, prawn production closed in 2002.
ROYAL GREENLAND A/S - 2017ANNUAL REPORT9594
After the investment in Quin-Sea Fisheries, Royal Greenland now operates six factories in Canada. In Newfoundland, there are five production units where local fishermen land their catches. The pri-mary species originating from Newfoundland are snow crab, prawn, whelk, lobster, herring, cod, Greenland halibut and capelin. 
In Matane, on the northern coast of New Brunswick, Eastern Quebec Seafoods Ltd. lands and processes prawns, primarily from the local fishing areas.
In Denmark, the factory in Aalborg primarily operates in two areas: packaging prawns for European retail and foodservice customers, and production of prawns in brine. The two German 
factories in Cuxhaven are subject to joint admi-nistration and focus on packaging of zip-lock and chain-pack ranges, respectively, as well as retail packaging of lumpfish roe. 
PRODUCTION UNITS IN CANADAPRODUCTION UNITS IN EUROPE
CupidsAalborgCuxhaven (Roe)Cape Broyle
Cuxhaven (Ziplock)Conche SeafoodOld Perlican
Southern HarborMatane
1960198820101990/65
20141960 1960
 1960 2006
Factory Manager: Chris ButlerPrimary species: Ground fish, PelagicsProducts: Split/salt fish,  Block frozen capelin/herring/mackerelCapacity: 38 t/dayCold store capacity: 1000 tonEmployees: 30 low/peak seasons
Factory Manager: Peter KorsbækPrimary species: PrawnsProducts: Packaging of shellfish for retail and foodserviceCapacity: 15-18,000 t/yearEmployees: 50-70 low/peak seasons
Factory Manager: Helgi HelgasonPrimary species: Lumpfish roeProducts: Lumpfish roe in glass jarsCapacity: 125,000 jars/dayEmployees: 19-60 low/peak seasons 
Factory Manager: Surendra BotlaguntaPrimary species: Snow crab, Pelagics, Sea cucumber, Ground fishProducts: Crab sections/cooked/RAW snow crab, Block frozen capelin/herring/mackerel, Butterfly cut/gutted sea cucum-ber, J-Cut/H&G/HOG Greenland halibutCapacity: 110 t/dayCold store capacity: 75 tonEmployees: 135 low/peak seasons
Factory Manager: Helgi HelgasonPrimary species: Salmon, plaice, codProducts: Fish portions/fillets/tails in ZipLock bagsCapacity: 40 t/dayEmployees: 18-25 low/peak seasons 
Factory Manager: Stedman LettoPrimary species: Snow crab, whelk, Pelagics, LobsterProducts: Crab sections/Cooked snow crab, In shell/cooked whelk, Block frozen capelin/herring/mackerel, J-Cut/H&G/HOG Greenland halibut, Lobster fresh/frozenCapacity: 145 t/dayCold store capacity: 50 tonEmployees: 70 low/peak seasons
Factory Manager: Tony MerriganPrimary species: Prawns, Snow crab, Whelk, Scallop, CodProducts: Cooked & Peeled, IQF,  Crab sections/Cooked snow crab,  In shell/cooked whelk, Scallops Capacity: 195 t/dayCold store capacity: 300 tonEmployees: 400 low/peak seasons
Factory Manager: Charles DaleyPrimary species: Pelagics, Lobster, Ground fishProducts: Block frozen capelin/herring/mackerel, Fresh/frozen lobsteerCapacity: 24 t/dayCold store capacity: 80 tonEmployees: 50-100 low/peak seasons
Factory Manager: Gudmundur HognasonPrimary species: PrawnsProducts: Cooked and peeled prawnsCapacity: 30 t/dayEmployees: 120 low/peak seasons 
■   Aalborg 
■   Cuxhaven 
Old Perlican    
Southern Harbor 
■   Conche Seafood 
Cape Broyle Cupids 
 Matane  ■   
ROYAL GREENLAND A/S - 2017ANNUAL REPORT9796
Royal Greenland's offshore fleet consists of three ocean-going prawn trawlers, two ocean-going production trawlers for Greenland halibut, cod etc., one line vessel for Greenland halibut, cod etc. and two trawlers for pelagic fishing. 
THE ROYAL GREENLAND FLEET- OFFSHORE
Akamalik
Tuugaalik
Masilik
Tasiilaq
Qaqqatsiaq
Nataarnaq
Sisimiut
Master: Linjohn Christiansen/Jogvan TrondarsonLength/width: 75.8 x 14.5 mProduction capacity: 110 ton/dayCatch capacity: 7-10,000 ton/yearlyHold capacity: 450-750 tonCrew: 22-26 menTrawler type: Ocean-going prawn trawlerOwnership: RG 100%
Master: Regin HenriksenPauli Justinussen Length/width: 66.4 x 14.6 mProduction capacity: 80 ton/dayCatch capacity: 6 -7.000 ton/yearlyHold capacity: 800 tonCrew: 25 menTrawler type: Ocean-going Greenland halibut-/mackerel trawlerOwnership: RG 25%
Master: Hans Petur SamuelsenGunnar OlsenLength/width: 52 x 12 mProduction capacity: 20 ton/dayCatch capacity: 3-5.000 ton/yearlyHold capacity: 350 tonsCrew: 18 menTrawler type: Line boat Ownership: RG 50%
Master: Jónfrídur Poulsen Birgir PetersenLength/width: 77,6 x 12,6 mProduction capacity: 120 ton/dayCatch capacity: 20-25.000 ton/yearlyHold capacity: 700 tonsCrew: 22 menTrawler type: pelagic trawls and purse seinesOwnership: RG 66%
Master: Páll Johan PoulsenLength/width: 70 x 12,5 mProduction capacity: 60 ton/dayCatch capacity: 10-15.000 ton/yearlyHold capacity:500 tonsCrew: 10-12 menTrawler type: Pelagic trawl Ownership: RG 66%
Master: Torbjørn JoensenTordar DimonLength/width: 70 x 14.6 mProduction capacity: 110 ton/dayCatch capacity: 7-10,000 ton/yearlyHold capacity: 450-750 tonCrew: 22-26 menTrawler type: Ocean-going prawn trawlerOwnership: RG 100%
Master: Martin Jacobsen/Davur MohrLength/width: 67.5 x 14.5 mProduction capacity: 110 ton/dayCatch capacity: 7-10,000 ton/yearlyHold capacity: 600 tonCrew: 22-24 menTrawler type: Ocean-going prawn trawlerOwnership: RG 50%
Master: Ivan Olsen/Pauli OlsenLength/width: 66 x 14 mProduction capacity: 25-30 ton/dayCatch capacity: 5-6,000 ton/yearlyHold Capacity: 750 tonCrew: 24-34 menTrawler type: Ocean-going fish trawlerOwnership: RG 100%
ROYAL GREENLAND A/S - 2017ANNUAL REPORT9998
Jens Henrik
Sermilik
Laila S
Master: Jakup Bech, Karl Egede Petersen Length/width: 43.2 x 9.6 mProduction capacity: 60 ton/dayCatch capacity: 6,000 ton/yearlyHold capacity: 130 tonCrew: 11 menTrawler type: Coastal prawn trawlerOwnership: RG 75%
Master: Piitannguaq MøllerLength/width: 13.80 x 4.60Production capacity: 3 ton/dayCatch capacity: 100-200 ton/yearlyHold capacity: 12 tonCrew: 3-5 menTrawler type: Coastal line/net vesselOwnership: RG 100%
Master: Peter Jacobsen Length/width: 19.4 x 5.2 mProduction capacity: 3 ton/dayCatch capacity: 150-300 ton/yearlyHold capacity: 30 tonCrew: 3-5 menTrawler type: Coastal Greenland halibut vesselOwnership: RG 100%
Master: Frederik Mathiassen Length/width: 14.85 x 5.16Production capacity: NoneCatch capacity: 150 ton/yearlyHold capacity: 10 tonCrew: 4 menTrawler type: Coastal line/net vessel, crab vesselOwnership: RG 100%
Master: Erik Nielsen Length/width: 14.99 x 5.21 mProduction capacity: NoneCatch capacity: 150 ton/yearlyHold capacity: 14 tonCrew: 3 menTrawler type: Coastal line/net vesselOwnership: RG 100%
Master: Hans Henrik Length/width: 14.3 x 4.52 mProduction capacity: 3 ton/dayCatch capacity: 150-300 ton/yearlyHold capacity: 14 tonCrew: 3-5 menTrawler type: Coastal Greenland halibut vesselOwnership: RG 100%
Master: Jakob Lukassen Length/width: 19.4 x 5.2 mProduction capacity: 3 ton/dayCatch capacity: 150-300 ton/yearlyHold capacity: 30 tonCrew: 3-5 menTrawler type: Coastal Greenland halibut vesselOwnership: RG 100%
Master: Nuka LevisenLength/width: 26 x 8 mProduction capacity: 20 ton/dayCatch capacity: 2,500 ton/yearlyHold capacity: 45 tonCrew: 6-9 menTrawler type: Coastal prawn trawler, iced prawns, codOwnership: RG 100%
The coastal fleet comprises eight vessels for catching prawns, Greenland halibut, cod and crab. Catches are landed at landing points along the west coast of Green-land. 
THE ROYAL GREENLAND FLEET- COASTAL
Royal Greenland A/S