2016 · In 2016 Graydon realised a revenue of EUR 50.9 million ... Graydon will continue to pursue its strategy of collecting large volumes of data from various sources so to convert

1Graydon Annual report 2016

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Graydon Holding N.V.Hullenbergweg 2601101 BV AmsterdamThe Netherlands

Annualreport2016Graydon Holding N.V.

2 Graydon Annual report 2016

#wearegraydon


Content Profile 4

List of members of theSupervisory Board 6Managing Board 7Board of Directors 7

Annual reportReport of the Supervisory Board 8Report of the Managing Board 9

Financial statements Consolidated statement of financial position as at 31 December 14Consolidated statement of profit & loss and comprehensive income for 2016 15Consolidated statement of changes in equity as at 31 December 17 Consolidated statement of cash flows for 2016 18Notes to the 2016 consolidated financial statements 19Company balance sheet as at 31 December 36Company income statement for 2016 37Notes to the 2016 company financial statements 38

Other information Statutory profit allocation 42Independent auditor’s report 43Addresses 46

#wearegraydon


Graydon Holding N.V. (“Graydon”) is a company domiciled in The Netherlands and is the holding company for the Collections business in the Netherlands and the Business Information companies across the group.

Graydon provides business information to commercial organisations, government agencies and non-profit organisations, whilst maintaining optimum standards for security and privacy. Graydon’s services portfolio consists of: Credit Management services, Risk & Compliance services and Marketing Information services.

Graydon’s Credit Management solution offers customers advanced Credit Information services and Credit Collection services. Our Credit Management Services are powered by an extensive network of databases containing specific and relevant information on businesses in more than 140 countries, covering more than 90 million companies. The databases are continuously updated through a global network of partner agencies.

In addition, Graydon’s specialists can draw on the company’s experience of over 125 years in the credit management industry. Graydon’s strength lies in its offer of sophisticated databases containing high quality and up-to-date financial, commercial and transaction-oriented company information on the one hand, in combination with strong solution-oriented Web-based services that are enabled by advanced technology on the other hand.

Our Credit Collection services help businesses to improve their total collections process. Tailored specifically to the needs of business customers, our sector specialised teams are committed to maximise collections, whilst ensuring customer relationships are maintained. Graydon’s Risk & Compliance solutions support customers to comply with increasing rules and regulations. The insights we provide facilitate our customers to assess ownership structures of businesses and prevent fraud.

Graydon’s Marketing Information Services are built from a wide variety of data sources, providing customers with a wealth of information. Through Marketing Information services, marketers have incomparable insight into customers and prospects allowing them to successfully set-up and run their marketing campaigns.

The collected data is further enhanced with the customer’s own proprietary data and aggregated according to their needs. Through our unrivalled data sets and customer-centred approach our customers benefit from an increased return on their marketing investments.

Graydon is active through its subsidiaries and offices in the Netherlands, Belgium and the United Kingdom with its statutory seat in Amsterdam. All subsidiaries are fully owned by Graydon Holding N.V.

The company’s long term strategy is built on the following five pillars:

• The delivery of steady profitable growth, by achieving operational excellence that drives performance, grows revenues and extends margins. • Enrich our data assets, through a number of sources and with state of the art technological capabilities and ensuring the highest quality of data.• Leveraging our data assets to develop and deliver unique analytical insights and actionable tools to our customers that will increase their competitiveness. • Continuous innovation to achieve leadership in key business domains such as Credit Management, Marketing Intelligence and Risk and Compliance. Herewith, we build on expertise and leadership in selected strategic verticals. • Close partnerships with our customers to deliver them the ultimate customer experience. We do this by collaborating with them to innovate and to create mutual, added value.

In 2016 Graydon realised a revenue of EUR 50.9 million and a negative net result of EUR 0.7 million. In the 2016 financial year, the company had an average workforce of 324 employees.

Profile


The art of knowing. Strategy is all, I want to know what people can do. Colleagues and clients, sharing information in the open. Because at the intersection of clear information, future opportunities arise. #weareGraydon


Supervisory Board

Dominique Charpentier (1950)Chairman of the Supervisory Board since 6 March 2017

Nationality: FrenchOther Board memberships: Chairman of the Board of LCI Services Sal (Libanese Credit Insurer, Beirut)

Tom Kaars Sijpesteijn (1967)Member of the Supervisory Board since 1 February 2017

Present position: Country Director Atradius NederlandNationality: DutchOther Board memberships: none

Jörg Müller (1967)Member of the Supervisory Board since 1 February 2017

Present position: Group IT Director AtradiusNationality: GermanOther Board memberships: none

Marta Nodal Martín (1970)Member of the Supervisory Board since 1 February 2017

Present position: Head of Commercial Department and Member of the Steering Committee of Atradius Crédito y Caución de Seguros y Reaseguros (Country: Spain)Nationality: SpanishOther Board memberships: none

Managing Board

Gertjan Kampman CEO Graydon Holding N.V.

Gertjan Kampman CEO Graydon Holding N.V.

Caspar van Haaften CFO Graydon Holding N.V.

Idris Ahmad CIO Graydon Holding N.V.

Rob Veneboer COO Graydon Holding N.V.

Board of Directors



Report of the Supervisory Board

During the year under review, the Supervisory Board of Graydon Holding N.V. (“Supervisory Board”) fulfilled all of the duties imposed on it by Dutch law and the articles of association of Graydon Holding N.V. (“Graydon”). The Supervisory Board regularly advised the Board of Directors on the management of the company and monitored its activities closely. Furthermore, the Board of Directors informed the Supervisory Board regularly and in a timely fashion of material aspects of business developments. The Supervisory Board was kept well informed of the earnings situation, risks and risk management in an equally comprehensive way.

The Supervisory Board met five times in 2016. Throughout these meetings the company’s strategy, the general course of affairs, the financial reports and corporate governance were discussed with the Board of Directors.

The internal and external auditors presented their findings during meetings of the Audit Committee of Graydon (“Audit Committee”). These took place four times.

On the 15th of September 2016, Atradius Insurance Holding N.V. (“Atradius”) acquired the shares from the other two shareholders (Euler Hermes Aktiengesellschaft and Natixis HCP S.A.S.) and is now holding 100% of the shares. Graydon will continue to operate independently. The transfer of these shares has no direct influence on the company’s strategy, brand or business operations.

Graydon will continue to pursue its strategy of collecting large volumes of data from various sources so to convert these into innovative insights for its clients. Atradius believes in - and endorses - this strategy and has long been a shareholder of Graydon. Atradius understands the business that Graydon is in and sees the advantages of working with Graydon.

Following the acquisition of the remaining shares by Atradius, on the same date Mr. Gerard van Kaathoven, Mr. Björn Albert, Ms. Sophie Lazarevitch and Mr. Christophe Ricetti stepped down as Supervisory Board members. On behalf of the Supervisory Board, the Supervisory Board would like to express its gratitude to all of them for their valuable contributions.

Additionally, the Audit Committee as separate sub-committee of the Supervisory Board was discontinued and theresponsibilities of the Audit Committee are assimilated within the Supervisory Board.

Mr. Gertjan Kampman stepped down from the Supervisory Board and was appointed to the role of CEO of Graydon as of the 1st of January 2017, succeeding Mr. Marcel van Es. The Supervisory Board wants to express its confidence in Mr. Gertjan Kampman leading the company into the future.

The Supervisory Board would like to express its gratitude to Mr. Marcel van Es for his contribution. He has initiated an important transition preparing the company for the future.

On the same date of the 1st of January 2017, Mr. Dominique Charpentier was appointed as member of the Supervisory Board. A month later, on the 1st of February 2017, also Mr. Tom Kaars Sijpesteijn, Ms. Marta Nodal Martín and Mr. Jörg Müller were appointed as Supervisory Board members. On the 6th of March 2017, Mr. Thomas Langen has resigned as member and as chairman of the Supervisory Board. The Supervisory Board wants to express its recognition and gratitude to Mr. Thomas Langen for his role and added value during his membership of the Supervisory Board over the last 4,5 years. Mr. Dominique Charpentier has been appointed by the Supervisory Board as its chairman as of the 6th of March 2017.

This Annual Report of Graydon contains the 2016 financial statements audited by KPMG Accountants N.V. The Supervisory Board has discussed the 2016 financial statements and the proposed appropriation of the result contained therein as presented by the Managing Board of Graydon (“Managing Board”) and advises the General Meeting of Shareholders of Graydon to adopt the 2016 financial statements and to grant the Managing Board and the Supervisory Board discharge for the management and supervisory duties respectively, performed during the 2016 financial year.

The Supervisory Board wishes to express its gratitude to the members of the Board of Directors and all Graydon employees for their hard work and dedication in 2016.

Amsterdam, 17th of May 2017,

The Supervisory Board:Mr. Dominique Charpentier, Chairman Mr. Tom Kaars SijpesteijnMs. Marta Nodal MartínMr. Jörg Müller


Report of the Managing Board

Continued investments in 2016The company’s strategy is built on a combination of elements such as building differentiated data assets and analytical capabilities, the implementation of a central technology platform and the constant strive for innovation through digitalization paired with a highly talented work force.

The Company has also diversified its business offerings over the years. Besides the traditionally important Credit Information solutions, revenue is more and more generated by Risk & Compliance and Marketing Information. All business lines benefit from the continued investments in the underlying data content fundaments. The Credit Information business domain is benefitting from new data sources as well as improved analytical capacity. This has resulted in further improved predictability and the introduction of new scoring abilities. Data-driven insights are more and more embedded in the Debt Collections business domain. With the insights provided, customers can optimise their arrears policies and implement portfolio specific collection strategies leading to better recoverability of overdue receivables and lower write-off costs.

Additional data sources - amongst which improved international coverage - have been the driver for improvements in the company’s Risk & Compliance proposition. The demand for these services continues to thrive by further tightening laws and regulations.

Digitalization of on-boarding new customers is further enhanced by optimized data coverage and new product features that have been introduced. This allows customers to leverage customer relationships and optimize the return of their marketing campaigns with Marketing Information solutions.

Financial performanceCredit Information remained under pressure from low cost providers on the low-end of the market. In The Netherlands and Belgium this was partially compensated by growth in Risk & Compliance and Marketing Information. Revenue was negatively impacted by EUR 1.0 million following the weakening of the pound sterling compared to the EURO after the Brexit news.

Debt Collection still carried the weight of the strategic switch from B2C to a B2B market segment. The B2C customer portfolio is in run-off, whilst the B2B commercial approach is being developed. We expect the revenue impact of this change to bottom out during the coming year.

Overall, revenue has decreased in 2016. The level of cost was managed down, but not at the same pace, resulting in a negative result before taxation of EUR 1.2 million, compared to EUR 0.3 million negative in 2015.

The operating result was impacted in 2016 by a reassessment of several balance sheet items. Also, IT-investments continued at a more intense pace, leading to higher maintenance costs. With a positive tax effect included, the negative net result of 2016 of EUR 0.7 million is in conformity with previous year. Our IT Investment programme will continue to drive the innovation of Graydon’s business set up in the coming years. In 2016, this lead to capitalization of EUR 2.0 million in intangible fixed assets. Enabling new product offerings that will provide new revenue streams, carried by a simplified, modern and efficient infrastructure.

The group cash position moved in line with the executed investments during the year, resulting in a decrease in cash of EUR 2.1 million. The solvency rate remained however stable at 26%. It is expected that investments in the upcoming years will be self-funded.

Review of operationsOperations continuously invests in primary data processes focused on data quality and in further optimising process integrity. This includes scaling manual processes to automated processes and driving efficiencies across the group to generate faster en better credit insights to our customers.

Through a focus on innovation in analytical capabilities, the Operations organisation was able to drive commercial opportunities for the group, whilst efficiently running the current business.

The area of Product Development drives the new product development on our new platform and the team made significant progress with the launch of Graydon Decision Model. This solution has driven a lot of traction in the market and sales have been very encouraging.

Graydon’s data integration project (GDI) has made good progress on processing multiple data sources with various formats onto our new platform, with the aim to integrate our data for all our markets and solutions. The analytics team is furthermore dedicated to develop scores for the new platform.


We continuously invest in the acquisition of data and data analytics to enhance our credit scoring models and insights for our customers.

During 2016 we have carried out an assessment of Graydon’s compliancy with data and privacy laws and regulations by an independent third party. This assessment resulted in a roadmap to comply with the General Data Protection Regulation (GDPR) that comes into force at the 1st of May 2018.

Strategic perspectiveThe journey of developing Graydon into a business information and insights company, digitalization is at the core of everything we do. We are investing in the right foundation to enable new capabilities to adapt to the changing market needs and provide solutions that deliver insights to our customers faster than ever. We have a clear vision and platform strategy to ensure we invest in the right things including our people, processes and technologies.

Business decision-making is knowledge intensive whilst the rewards of accurate decisions provide businesses with higher returns. Information solutions are expanding as advanced technology gives access to diverse data sources as well as increased data volumes, allowing for real time decisions at a progressively lower cost.

The company aims to fulfil the customer demand by providing easy to use information solutions that allow businesses to make better decisions, achieve better financial results and become more transparent for all relevant stakeholders. From an unlimited variety of sources, Graydon extracts big data volumes. After cleansing and validating the collected data, cutting-edge technology and analytical capacities are applied to transform the data in market leading information solutions. The information solutions provided have a relatively low impact on the customers’ total cost base whilst generating a significant positive impact on their revenues and profitability.

Technology 2016In 2016, Graydon IT made good progress in the projects to realise the new application infrastructure and a new product, the Graydon Decision Model was successfully launched on this platform.

Significant advancements were also made in the re-platforming of the core systems and database, and their associated data feeds, to the new central technology landscape. This was achieved by teams comprised of members from across all Graydon countries. This capability will ensure that Graydon remains well placed to assess, acquire and integrate new data sources, with fewer technical barriers, which will enhance our products and add value for our customers.

Focus is maintained on the further development of our competences in the Data and Analytics arena, ensuring that

this pathway to innovation and future business value is well supported from an operational IT perspective.

Graydon IT is maturing in terms of its capabilities around continuous delivery and effective application and infrastructure management. This is in line with the transition to the new technology base, but also in the context of providing ongoing and effective support for an existing IT infrastructure which underpins the current core business. In this area, stability, security and availability continue to be key focus areas.

SustainabilityBy using the best available practices and resources, Graydon endeavours to establish, maintain and promote a sustainable business environment and focusses herewith on its people, profit and the environment.

To ensure a sustainability performance, Graydon uses automated data collection, business intelligence tools and techniques. This allows the company to keep a focus on social, environmental and financial bottom lines.

Graydon considers its human capital as a key asset for conducting fair business practices and to optimise innovation, productivity and economic viability.

Personnel and organisation Graydon aspires to be an employer for whom people enjoy working and where they feel encouraged and supported to get the best out of themselves and from each other. Satisfied employees are essential to the success of our company and for the service that we can provide our clients. To stimulate this, we want to provide them an innovative, creative and learning environment in which they can thrive.

We believe that a strong people and performance focussed culture will support us in continuously improving our business performance and the wellbeing of our employees.

We always challenge ourselves to grow and improve. Therefore, Graydon actively seeks feedback through a number of initiatives from our employees.

Innovation and creativity thrives best in a diverse environment. Graydon’s diverse employee base allows us to work with a variety of talents, expertise, nationalities and characters. It is one in which we learn from each other, across the borders. In the end it’s the diversity that leads to our company’s DNA. Approximately 43% of our employees are female and 57% male.

The overall employee base reduced from 328 FTE at the end of 2015 to 309 FTE at the end of 2016. Overall the average number of FTE’s was 324 FTE.

Graydon operates in a rapidly changing environment, in which new technology and client demands require new competences.


This change means that we are always looking to develop and acquire specific skills and competences, in order to stay ahead of the competition. Therefore, Graydon actively sponsors and supports initiatives that will create a learning culture. One in which innovation thrives.

Outlook for 2017 and 2018Graydon has entered a new era, with the full shareholdership of Atradius and newly appointed senior management. Although the general strategic direction is reconfirmed we expect that after an intense change for the whole organisation, we now have to focus on building structure and trust in the company. This ensures the right focus on the customer and enhances progress in the main strategic domains. With the basics set, the priorities will be on regaining revenue growth and improve margins by more operational efficiencies. A further strengthening of the positive economic dimension in European markets, will help us to improve our results.

Graydon will continue to innovate in Credit Management, Marketing Intelligence and Risk & Compliance. We have built a new product innovation pipeline that will help the company to strengthen its market position and enter new verticals. Next to our new product innovation efforts we will further optimize our execution capabilities. The effects of these initiatives will become noticeable in 2017 and beyond.

Supported by the general positive economic climate and Graydon’s own progress in financial performance, we remain prudently optimistic about the future.

Governance and risk management IntroductionGraydon is adhering to solid standards of risk management and control. It is an important element to safeguard the sound operation of the organisation and helps to realize the strategic objectives.

Graydon uses the COSO Enterprise Risk Management framework as a reference model and has adopted compatible processes and terminology. COSO is the worldwide standard and has therefore been selected as the basis for Graydon’s risk management and control system.

The methodology is developed by Graydon to provide reasonable, but not absolute assurance to management and other personnel regarding the achievement of the objectives in the following areas of Graydon:

• Strategy• Operations

• Financial reporting• Compliance with applicable laws and regulations

GovernanceGovernance within Graydon is an expression of the management structure and is defined as a means to safeguard the relationship between management, control and supervision. Risk management is the starting point. The Graydon Managing Board is responsible for the Graydon risk management and control system. It ensures that the system functions effectively and that identified risks are managed as agreed. The Managing Board has delegated responsibility for maintaining the risk management and control system to the responsible managers. They are responsible for decision-making and are accountable for the material completeness of risk identification, the material correctness of risk analyses and the timeliness and appropriateness of risk decisions at individual and aggregate level.

Scope of risk managementThe scope of the risk management and control system includes all Graydon’s subsidiaries. The individual subsidiaries are responsible for developing risk management and control systems that are appropriate to their situation and size and that correspond to their own characteristics and relationship with the holding company and other subsidiaries.

Risk profile and assessmentThe risk profile of Graydon is related to the core business: providing credit management services and collection services. This also involves controlling risks with regard to achieving strategic and operational objectives and complying with applicable laws and regulations. The Managing Board has delegated responsibility for maintaining the risk management and control system to the respective Managing Directors. They are responsible for local decision-making and are accountable for the material completeness of risk identification, the material correctness of risk analyses and the timeliness and appropriateness of risk decisions at individual and aggregate level. A risk matrix is developed for the risk assessment process. Having identified the risks involved, they are assessed in terms of the chance (likelihood) they will occur and the severity or amount of loss or damage (impact) which may result if they occur.

The annual risk identification and assessment process is an important information step and is closely linked to the annual business planning process of Graydon. During this process the existing risk profile is reviewed to ensure that any changes in business planning are adopted in the risk profile. Furthermore the Graydon Management Board and managers continuously monitor the risk situation, so that new or a changed risk profile can be analysed outside the annual risk analysis process.


Risk overviewBelow is an overview of the main risks that could affect our objectives. The sequence of the risks below does not reflect any order of importance, vulnerability or materiality.• Market position can be threatened by new competitors and new technology. Graydon does operate in an increasingly competitive environment. To stay ahead of competition Graydon is continuously developing new solutions and services and is using new technologies which enable us to deliver smarter business intelligence. These enable us to become a knowledge-driven organisation for our customers and stakeholders;• Our strong brand and reputation can be damaged by either media of social media. A communication strategy is in place and managed by the Corporate Communications department;• The data-quality-risk affecting our products, scoring and rating methods is controlled through strict data control procedures which are part of our primary processes. Procedures are documented and on a regular basis reviewed to ensure controls are up to date and correctly applied;• Our company uses personal information to which privacy legislation is applicable. Complying with privacy legislation is becoming increasingly more challenging with the European General Data Protection Regulation coming into force as of May 2018. In 2016 an assessment was performed to assess the level of compliance against existing laws and regulations, which showed that within Graydon, currently privacy is a topic that is well organized and managed. To ensure that Graydon will continue to be able to comply with its requirements under applicable laws and regulations, a roadmap was drafted and a Compliance Officer has been appointed;• An IT disruption could affect our service to customers and business. Therefore, strict general IT controls are documented and monitored on a regular basis by internal and external auditors;• To enable Graydon to successfully execute its strategy, it is important to have the best-in-class employees. The risk of high turnover staff is mitigated by a recruitment and retention process. To educate our staff an extensive internal online learning centre is in place;• Financial risks such as credit risk, interest rate risk, liquidity risk and currency risk are presented in a separate note in the consolidated financial statement.

Control systemAll risks are further described in separate control frameworks in which controls are defined to reduce the likelihood and impact of the risk to an acceptable level. This will ensure that it does not become a threat to achieve the business objectives of Graydon. All control frameworks are reviewed on a regular basis to ensure they are up to date. Risks and controls are carefully recorded in a control database.

AuditsIn 2016 a number of control frameworks were audited by the Internal Auditor. Shortcomings detected during the self-assessments and during tests by the Internal Auditor were entered in the control database and followed up during the year. Audit reports have been presented to responsible management, country managing directors, Board of Directors of Graydon Holding N.V. and the Audit Committee as a sub-committee of the Supervisory Board.

Forward-looking statementThe Managing Board has no reason to believe that the risk management and control system will not work properly in 2017. Continuous efforts will be made to further improve the risk management and control system. The risk chart will be updated in response to changing circumstances and conditions. Further to this updated risk chart, Graydon’s control systems are subject to continuous review and improvement.

Amsterdam, the 17th of May 2017CEOGertjan Kampman


Financial statements


In thousands of € NOTE 2016 2015

Assets Intangible assets 7 12,463 12,006 Property, plant and equipment 6 614 833 Deferred tax assets 8 2,014 1,321

Total non-current assets 15,091 14,160

Trade receivables 9 7,885 10,081 Other receivables and prepayments 9 2,483 3,821 Income tax receivable 1,531 1,612 Cash and cash equivalents 10 12,981 15,056

Total current assets 24,880 30,570

Total assets 39,971 44,730

Equity Share capital 11 1,500 1,500 Share premium 11 1,376 1,376 Legal reserves 11 12,463 12,006 Translation reserve 11 - 724 - 133 Retained earnings 11 - 3,541 - 2,384 Result for the year 11 - 727 - 700

Total equity 10,347 11,665

Liabilities Deferred tax liabilities 8 1,469 1,387 Provisions 12 - 225 EmployeeBenefits 16 18 - Loans and borrowings 13 - 258

Total non-current liabilities 1,487 1,870

Trade and other payables 14 13,336 12,307 Current portion of provisions 12 1,508 2,361 Loans and borrowings 13 261 1,051 Deferred income 15 13,032 15,476

Total current liabilities 28,137 31,195

Total liabilities 29,625 33,065

Total equity and liabilities 39,971 44,730

Financial StatementsConsolidated statement of financial positionBefore result appropriationAs at 31 December

The notes on pages 19 to 35 are an integral part of these consolidated financial statements.


Consolidated statement of profit & loss and comprehensive income For the year ended 31 December



1 50,895 53,414

2 18,777 19,325 2 - 4,075 - 4,445 6 - 441 - 602 7 - 8,749 - 8,726 4 - 27,355 - 27,108 - 59,397 -60,206 7 7,433 6,470 - 51,964 - 53,736 - 1,069 - 322 - - - 161 - - 161 -

- 1,230 - 322 5 503 - 378

-727 - 700

- -

- 727 - 700

Continuing operations Revenue

Expenses Salaries

Social charges and pension expensesDepreciationAmortisation

Other operating expenses

Capitalisation of: database expenses

Operating resultFinance income

Finance costsNetfinancecosts

Result before taxationIncome tax

Net Result from continuing operations

Discontinued operationResult from discontinued operation,

net of tax

Result


NOTE 2016 2015

Result attributable to: Owners of the Company - 727 - 700 Non-controlling interests - - - 727 - 700

Total comprehensive income attributable to: Owners of the Company - 1,318 - 441 Non-controlling interests - - - 1,318 - 441

Earnings per share Basic earnings per share (EUR) - 0.48 - 0.47 Diluted earnings per share (EUR) - 0.48 - 0.47



Other comprehensive income For the year ended 31 December

NOTE 2016 2015

- 727 - 700

- 591 259

- 591 259

- 1,318 - 441

In thousands of €

Result

Other comprehensive incomeForeign exchange translation differences

Other comprehensive income, net of tax

Total comprehensive income


Consolidated statement of changes in equity


Share Share Legal Translation Retained Profit for Total In thousands of € capital premium reserves reserve earnings the year equity

Balance as at 1 January 2015 1,500 1,376 12,752 - 392 - 706 - 2,424 12,106

Total comprehensive incomeRetained earnings - - - - - 2,424 2,424 -Net Result of the year - - - - - - 700 - 700Other comprehensive income - - - 746 259 746 - 259

Total comprehensive income - - - 746 259 - 1,678 1,724 - 441

Transactions with ownersof the CompanyDividends - - - - - - -Total transactions with owners of the Company - - - - - - -

Balance as at 31 December 2015 1,500 1,376 12,006 - 133 - 2,384 - 700 11,665

Total comprehensive incomeRetained earnings - - - - - 700 - 700 -Net Result of the year - - - - - - 727 - 727Other comprehensive income - - 457 - 591 - 457 - - 591

Total comprehensive income - - 457 - 591 - 1,157 - 27 - 1,318

Transactions with owners of the CompanyDividends - - - - - - -Total transactions with owners of the Company - - - - - - -

Balance as at 31 December 2016 1,500 1,376 12,463 - 724 - 3,541 - 727 10,347


Consolidated statement of cash flowsFor the year ended 31 December


Cash flows from operating activities

Operating result - 1,069 -322 Adjusted for: Amortisation 7 8,748 8,726 Depreciation 6 451 561 Provisions (non-cash movements) 12 185 346

9,385 9,633

Changes in: Trade and other receivables 3,533 7,261 Trade and other payables 414 - 2,675 Provisionsandemployeebenefit 12 - 1,263 - 727 Deferred income 15 - 2,444 - 4,209

239 - 350

Cash generated from operating activities Interest paid (on balance) - 161 - Income taxes received (paid) 551 532

390 532

Net cash from operating activities 8,945 9,492

Cash flows from investing activities Investments in property, plant and equipment 6 - 240 - 32 Disposals in property, plant and equipment 6 - 247 Investments in intangible assets 7 - 9,383 - 7,983 Disposals in intangible assets 7 50 124

Net cash used in investing activities - 9,573 - 7,644

Cash flows from financing activities Redemption loans and borrowings - 1,049 - 1,047 Dividends paid - -

Net cash used in financing activities - 1,049 -1,047

Net increase in cash and cash equivalents - 1,677 801 Cash & Cash Equivalents at 1 January 15,056 14,132 Foreign exchange difference on cash - 400 - 123

Cash & cash equivalents as at 31 December 10 12,981 15,056


Notes to the 2016 consolidated financial statement For the year ended 31 December 2016

Reporting entityGraydon Holding N.V. (the ‘Company’) is a company domiciled in The Netherlands. The address of the Company’s registered office is Hullenbergweg 260, 1101 BV Amsterdam. Graydon Holding N.V. is the holder company of credit management companies. The consolidated financial statements of the Company as at and for the year ended 31 December 2016 comprise the Company and its subsidiaries (together referred to as the ‘Group’ and individually as ‘Group entities’) and the Group’s interest in associates and jointly controlled entities.

Graydon provides business information to commercial organisations, government agencies and non-profit organisations, whilst maintaining optimum standards for security and privacy. Graydon’s services portfolio consists of: Credit Management services, Risk & Compliance services and Marketing Information services.

During the year 2016, the shareholder structure of Graydon Holding N.V. changed. As per 15 September 2016 Atradius Insurance Holding N.V. obtained 100% of the Graydon Holding N.V. Shares.

Up to 15 September 2016 As from 15 September 2016

Atradius Insurance Holding N.V.David Ricardostraat 11066 JS Amsterdam

The Netherlands

100%

Natixis HCP S.A.S.30, Avenue Pierre Mendes75013 ParisFrance

27,5%

Euler Hermes AktiengesellschaftGasstraße 2722761 HamburgGermany

27,5%

Atradius Insurance Holding N.V.David Ricardostraat 11066 JS AmsterdamThe Netherlands

45%



Basis of preparation

(a) Statement of complianceThe consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as endorsed by the European Union (EU-IFRSs), and with section 2:362 (a) of The Netherlands Civil Code.

The consolidated financial statements were authorised for issue by the Supervisory Board on the 17th of May, 2017.

With reference to the income statement of the company, use has been made of the exemption pursuant to Section 402 of Book 2 of the Netherlands Civil Code.

(b) Basis of measurementThe consolidated financial statements have been prepared on the historical cost basis.

(c) Functional and presentation currencyThese consolidated financial statements are presented in euro, which is the Company’s functional currency. All financial information presented in euro (€) has been rounded to the nearest thousands, except when otherwise indicated.

(d) Use of estimates and judgementsThe preparation of the consolidated financial statements in conformity with EU-IFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial statements include:

Note 1: Revenue Debt Collection: determination if the revenue recognition policy in applied correctly by the Group including determination of deferred income. Note 8: Deferred taxation in respect of tax losses carried forwardNote 9: Trade receivablesNote 12: Provisions

(e) Changes in accounting policiesThe Group has consistently applied the accounting policies set out in note ‘Significant accounting policies’ to all periods presented in these consolidated financial statements.

Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements, and have been applied consistently by Group entities.

Certain comparative amounts in the consolidated statement of financial position have been reclassified to conform with the current year’s presentation.

(a) Basis of consolidation(i) SubsidiariesSubsidiaries are entities controlled by the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes into consideration potential voting rights that currently are exercisable. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

(ii) Loss of controlOn the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity related to the subsidiary.

Any surplus or deficit arising on the loss of control is recognised in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently it is accounted for as an equity-accounted investee or as an available-for-sale financial asset depending on the level of influence retained.

(iii) Transactions eliminated on consolidationIntra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.

(b) Discontinued operationA discontinued operation is a component of the Group’s business, the operations and cash flows of which can be clearly distinguished from the rest of the Group and which:

• represents a separate major line of business or geographical area of operations;• is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; or• is a subsidiary acquired exclusively with a view to re-sale.

Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets the criteria to be classified as held-for-sale.


When an operation is classified as a discontinued operation, the comparative statement of profit or loss and OCI is re-presented as if the operation had been discontinued from the start of the comparative year.

(c) RevenueThe Group is involved in managing data sources, as well as performing related services. When the services under a single arrangement are rendered in different reporting periods, then the consideration is allocated on a relative fair value basis between the different services.

The Group recognises revenue from rendering of services in proportion to the stage of completion of the transaction at the reporting date. The stage of completion is assessed based on surveys of work performed.

Revenue is obtained mainly out of credit information and debt collection activities. A signification portion of revenue is derived from deferred income; once the services are rendered, the liability for deferred income is recognized as revenue.

(d) Finance income and finance costsFinance income comprises interest income. Interest income is recognised as it accrues in profit or loss, using the effective interest method.

Finance costs comprise interest expense and recognised in profit or loss.

(e) Foreign currency(i) Foreign currency transactionsTransactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences are generally recognised in profit or loss. Non-monetary items in a foreign currency that are measured based on historical cost are not translated.

Foreign currency differences arising on retranslation are recognised in profit or loss, the Group has not differences which are recognised in other comprehensive income.

(ii) Foreign operationsThe assets and liabilities of foreign operations are translated to EUR at exchange rates at the reporting date. The income and expenses of foreign operations are translated into euros at the exchange rates at the dates of the transactions.

Foreign currency differences are recognised in other comprehensive income, and presented in the foreign currency translation reserve (translation reserve) in equity.

When a foreign operation is disposed of such that control, significant influence or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign currency gains and losses arising from such item are considered to form part of a net investment in the foreign operation and are recognised in other comprehensive income, and presented in the translation reserve in equity.

(iii) Exchange rates for the most important currencies

31 December Average 31 December 2015 2016 2016GBP 1.35 1.26 1.16

(f) Employee benefits(i) Short-term employee benefitsShort-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.

(ii) Defined contribution plansA defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and has no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as an employee benefit expense in profit or loss in the periods during which related services are rendered by employees. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available. Contributions to a defined contribution plan that are due more than 12 months after the end of the period in which the employees render the service are discounted to their present value.


(iii) Defined benefit plansThe Group’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in OCI. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The Group recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

(g) Income taxTax expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss.

(i) Current taxCurrent tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any tax arising from dividends.

Current tax assets and liabilities are offset only if certain criteria are met.

(ii) Deferred taxDeferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:

• temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; and• temporary differences related to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.

A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

In determining the amount of current and deferred tax the Group takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. The Group believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Group to change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

In determining the amount of current and deferred tax, the Group takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Group to change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made.


(h) Property, plant and equipment(i) Recognition and measurementItems of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.

Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in profit or loss.

(ii) Subsequent expendituresSubsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Group. Ongoing repairs and maintenance is expensed as incurred.

(iii) DepreciationItems of property, plant and equipment are depreciated on a straight-line basis, generally recognized in profit or loss over the estimated useful lives of each component and depreciated from the date that they are installed and are ready for use.The estimated useful lives for the current and comparative years of significant items of machines and equipment are as follows:

• Property, plant and equipment 3 - 10 years• Other components 4 - 5 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(i) Intangible assets(i) Recognition and measurementAn intangible asset should be recognized if:

• It is probable that the future economic benefits that are attributable to the asset will flow to the organization.• The cost of the asset can be measured reliably.

An intangible asset is initially measured at cost. The cost of the asset comprises of purchase price and any directly attributable costs of bringing the asset to working condition for its intended use. Otherwise, it is recognised in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost less accumulated amortisation and any accumulated impairment losses.

Intangible assets consist of: Capitalised database costs Externally purchased data and direct cost relating to maintenance and enrichment of the data (only directly related salaries and other employee expenses).

Internally developed softwareInternally developed software comprises direct-labour cost of program development (only directly related salaries and other employee expenses).

Purchased softwarePurchased software comprises of software acquired and directly attributable expenditure on preparing the asset for its intended use.

(ii) Subsequent expenditureSubsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred.

(iii) AmortisationIntangible fixed assets are amortised on a straight-line basis in profit or loss over their estimated useful lives, from the date that they are available for use. Capitalised database costs are amortised progressively decreasing in a three year period, reflecting its useful live.

• Capitalised database costs 3 years (65%-30%-5%)• Internally developed software 3 - 5 years• Purchased software 3 - 5 years

Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(j) Financial instruments(i) Non-derivative financial assetsRecognition and derecognitionThe Group initially recognises loans and receivables on the date that they are originated. All other financial assets (including assets designated as at fair value through profit or loss) are recognised initially on the trade date, which is the date that the Group becomes a party to the contractual provisions of the instrument.

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in such transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability.


Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

MeasurementLoans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses.

Loans and receivables comprise cash and cash equivalents, and trade receivables and other trade receivables and prepayments.

Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value, and are used by the Group in the management of its short-term commitments.

(ii) Non-derivative financial liabilitiesRecognition and derecognitionThe Group initially recognises liabilities initially on the trade date, which is the date that the Group becomes a party to the contractual provisions of the instrument.

The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire.

MeasurementThe Group classifies non-derivative financial liabilities into the other financial liabilities category. Such financial liabilities are recognised initially at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method.

Financial liabilities comprise bank overdrafts, and trade and other payables.

Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

(iii) Share capitalOrdinary sharesOrdinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects.

(k) ImpairmentThe carrying amounts of the Group’s assets, are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the statement of comprehensive income.

The recoverable amount of an asset or of cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash-generating unit.

(l) ProvisionsA provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.

(i) Onerous contractsA provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Group recognises any impairment loss on the assets associated with that contract.

(ii) RestructuringA provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan and the restructuring either has commenced or has been announced publicly. Future operating losses are not provided for.

(m) Leases(i) Determining whether an arrangement contains a leaseAt inception of an arrangement, the Group determines whether such an arrangement is or contains a lease.

At inception or on reassessment of an arrangement that contains a lease, the Group separates payments and other consideration required by such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the Group concludes for a finance lease that it is impracticable to separate the payments reliably, then


an asset and a liability are recognised at an amount equal to the fair value of the underlying asset. Subsequently, the liability is reduced as payments are made and an imputed finance cost on the liability is recognised using the Group’s incremental borrowing rate.

(ii) Leased assetsAssets held by the Group under leases that transfer to the Group substantially all of the risks and rewards of ownership are classified as finance leases. The leased assets are measured initially at an amount equal to the lower of their fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the assets are accounted for in accordance with the accounting policy applicable to that asset.

Assets held under other leases are classified as operating leases and are not recognised in the Group’s statement of financial position.

(iii) Lease paymentsPayments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.

Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

(n) New standards and interpretations not yet adoptedA number of new standards, amendments to standards and interpretations are effective for the year ended 31 December 2016, and, where relevant, have been applied in the preparation of these consolidated financial statements.

The standards or interpretations published by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) that are not in effect at 31 December 2016 and which may be relevant, are as follows:

• IFRS 9 Financial InstrumentsIFRS 9, published in July 2014, replaces the existing guidance in IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 includes revised guidance on the classification and measurement of financial instruments, including a new expected credit loss model for calculating impairment on financial assets, and the new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from IAS 39. IFRS 9 is effective for annual reporting periods beginning on or after 1 January 2018, with early adaption permitted.

The Group is assessing the potential impact on its consolidated financial statements resulting from the application of IFRS 9.

• IFRS 15 Revenue from Contracts with CustomersIFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognized. It replaces existing revenue recognition guidance, including IAS 18 Revenue, IAS 11 Construction Contracts and IFRIC 13 Customer Loyalty Programs.

IFRS 15 is effective for annual reporting periods beginning on or after 1 January 2017, with early adaption permitted.


• IFRS 16 Leases This standard replaces the existing guidance in IAS 17 Leases and several interpretations (IFRIC 14, SIC-15 and SIC-27). IFRS 16 (effective 1 January 2019) establishes principles for the recognition, measurement, presentation and disclosure of leases, with the objective of ensuring that lessees and lessors provide relevant information that faithfully represents those transactions.


(o) Segment reportingThe disclosure of segment information is required only by those entities whose debt or equity instruments are trade in public market or that file, or are in the process of filing, there financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in the public market. With regards to this exemption, the company has not disclosed segment information.

(p) Determination of fair valuesA number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values are determined annually for measurement and/or disclosure of property, plant and equipment, intangible assets and provisions.

The principal methods and assumptions used to estimate the fair value for relevant financial statement captions are:

Trade and other receivables/ trade and other payablesThe face value of receivables and liabilities due within one year is regarded as a reflection of their fair value. The fair value of all other receivables and liabilities is measured on the basis of present value. The discount factor is based on the risk free interest rate of the same duration of the receivable and for


1. Revenue 2016 2015

Credit information 38,363 42,267Risk and Compliancy 4,159 2,780Debt collection 5,035 5,304Marketing information 3,134 2,769Other 204 293

50,895 53,414

2. Salaries and social charges and pension expenses 2016 2015

Salaries 18,777 19,325Compulsory social security contributions 2,869 3,207Contributions to defined contribution plans 1,206 1,239

Social charges and pension expenses 4,075 4,445

22,852 23,771

The expenses include non-recurrent restructuring cost for dismissal of staff of EUR 52 in 2016 (EUR 305 in 2015).

In salaries and social charges/pension expenses, amounts of EUR 1,986 (2016) and EUR 2,240 (2015) respectively have been excluded, which have not been charged to the profit and loss, but have been capitalized as addition to intangible assets (databases). Pension plansAt 31 December 2012, the company reported two pension plans as defined benefits plans, one plan relates to the Netherlands and one relates to Belgium. In addition the company contributes to several defined contribution plans. During 2013 the company settled the Dutch defined benefit plan and redefined the status of the Belgium employee benefit plan, leading both plans to be accounted for as defined contribution plans as from 2013.

The NetherlandsAt 31 December 2012 the company operated a final pay pension plan for certain Dutch employees. This was a closed pension plan as of 31 December 1997 and was sponsored for the employees who were in service at that date and chose to remain participant in this plan. No new employees were able to enter this plan. At 31 December 2013 this pension plan was

settled by means of a transfer to an Insurance company and therefore this plan is accounted for as defined contribution as of 1 January 2013.

The changed pension plan is integrated in the existing defined contribution plan that is executed by an external insurance company (Nationale Nederlanden).

In addition, the defined benefit schemes of three former executives are accounted for as defined contribution schemes due to the fact that the company settled future interest rate, longevity and indexation risks. The company is obliged to pay the predetermined premium for these plans. The Group did not make any material contributions in 2016 or 2015.

BelgiumDuring 2016, the Graydon Belgium Actuary (Van Breda) performed an assessment on the qualification of the Graydon Belgium NV pension plan and determined that the Defined Contribution plan can be considered as "plan with guaranteed return” and has to be considered as a Defined benefit plan. United KingdomIn the United Kingdom, the company makes contributions to a relatively small defined contribution plan which is executed by an outside insurance company.

payable plus a credit mark-up reflecting the credit worthiness of the group.

Financial lease liabilitiesThe fair value is estimated on the basis of the present value of the future cash flows, discounted at the interest rate for lease contracts of a similar kind. The estimated fair value reflects movements in interest rates.

(q) Consolidated statement of cash flowsThe cash flow statement has been prepared using the indirect method. The funds in the cash flow statement consist only of cash. Income and expenditure owing to interest and tax on profits have been included under the cash flow from operating activities.


3. The average number of FTE 2016 2015

The Netherlands 161 190Other countries 163 180

324 370

4. Other operating expenses 2016 2015

Production & Sales 15,735 14,077Office 1,994 2,700Personnel 5,063 4,876Marketing 2,409 3,717Other 2,154 1,738

27,355 27,108

5. Income tax expenseReconciliation of effective tax rate 2016 2015

Profit before tax -1,202 - 322

Tax using the company’s domestic corporation tax rate 298 100Effect of tax rates in foreign companies - 38 - 162Effect of differences commercial - fiscal result 295 - 58Unrecognized Net Operating Losses - - 153Impact of rate change - - 10Adjustments of previous years - 34 - 62Other - 16 - 33

Income tax in statement of profit or loss 503 - 378

Reconciliation of effective tax rateIn percentage 2016 2015

Profit before tax 100 100

Income tax using the domestic corporation tax rate 24.2 31.2Effect of tax rates in foreign companies - 3.1 - 50.3Effect of differences commercial - fiscal result 23.9 - 18.0 Unrecognized Net Operating Losses - - 47.6 Impact of rate change - - 3.0 Adjustments of previous years - 2.8 - 19.4 Other - 1.3 - 10.3

Income tax in statement of profit or loss - 40.9 - 117.3

The Group believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of

many factors, including interpretations of tax law and prior experience.


6. Property, plant and equipment Property, plant and equipment Other Total

Book value at 1 January 2016Costs at 1 January 2016 4,449 2,411 6,859Depreciation at 1 January 2016 - 3,779 - 2,247 - 6,026

Book value at 1 January 2016 670 164 833

MovementsAdditions 105 135 240Disposals - - -Depreciation charge for the year 387 54 441FX differences on depreciation - 18 - - 18

- 300 81 - 219

Book value at 31 December 2016Costs at 31 December 2016 4,545 2,546 7,091Depreciation at 31 December 2016 - 4,176 -2,301 - 6,477

Book value at 31 December 2016 369 245 614

Property, plant and equipmentProperty plant and equipment consist mainly of our computer hardware and office inventory. Other section is mainly our car park and art collection.

Impairment lossThe performed impairment analysis does not show any impairment triggers (2015: no impairment triggers).

Databases, internal developed software and purchased software.Databases refer to the cost of purchasing and enriching data in databases and accompanied employee expenses.Internally developed software refers to software which is developed by the Group.

Purchased software refers to software that is purchased from a third party. In the purchased software an amount of EUR 870 is included related to Assets Under Construction (2015: EUR 918).

Amortisation of databases and internal developed software is according to 65%/30%/5% as the value of progressively decreasing from 1st year onwards.

7. Intangible assets Internally developed Purchased Databases software software Total

Book value at 1 January 2016Costs at 1 January 2016 46,131 3,455 9,069 58,655Amortisation at 1 January 2016 - 40,593 - 3,056 - 3,000 - 46,649

Book value at 1 January 2016 5,538 399 6,069 12,006

MovementsAdditions 7,433 - 1,951 9,384Disposal - - 51 51Amortisation charge for the year 6,723 344 1,681 8,748Fully amortised costs - - - -FX differences - 128 - - - 128

582 - 344 219 457

Book value at 31 December 2016Costs at 31 December 2016 53,437 3,455 10,969 67,861Amortisation at 31 December 2016 - 47,316 - 3,399 - 4,682 - 55,398

Book value at 31 December 2016 6,120 56 6,287 12,463


Impairment testThe performed impairment analysis does not show any impairment triggers (2015: no impairment triggers).

The additions to databases exist of the following amounts:

2016 2015Salaries 1,582 1,799Social charges and pension 405 441Purchased data 5,446 4,230 7,433 6,470

Deferred tax assets and liabilities relate to temporary tax differences regarding valuation of tangible and intangible assets and some other receivables.

For depreciation/ amortisation see significant accounting policy section. Movement in deferred tax assets and liabilities during the year:

At the end of 2016, the Company has tax losses carried forward (The Netherlands EUR 1,193 (2015: EUR 2,473). Based on the mid-term plan until 2019, management believes that it’s probable that future taxable profits will be available against

which they can be utilised. Therefore, deferred tax assets are recognised for unused tax losses in The Netherlands EUR 1,679 (2015: EUR 1,371).

8. Deferred tax assets and liabilitiesDeferred tax assets and liabilities are attributable to the following:

At 31 December Assets Liabilities Net

2016 2015 2016 2015 2016 2016Net Operating Losses 1,697 1,278 - - 1,697 1,278Tangible assets 19 21 - - 19 21Intangible assets 296 - - 1,469 - 1,387 - 1,173 - 1,387Other receivables - 22 - - - 22

Net tax assets / (liabilities) 2,014 1,321 - 1,469 - 1,387 543 - 66

2016 Net balance Recognised Net balance Deferred Deferred at 1 January in profit or loss at 31 December tax assets tax liabilities

Net Operating Losses 1,278 419 1,697 1,697 -

Tangible assets 21 -2 19 19 -

Intangible assets - 1,387 -82 - 1,469 - - 1,469

Other receivables 22 -22 - - -

Net tax assets / (liabilities) - 66 313 247 1,716 - 1,469

9. Trade and other receivables and prepayments

2016 2015Trade receivables 7,885 10,081Other trade receivables and prepayments 2,483 3,821

10,368 13,902

An amount of EUR 178 (2015: EUR 1,180) is included in the trade receivables and relates to long term contracts. Trade receivables are shown net of a provision for bad debts of 31 December 2016 EUR 1,312 (2015: EUR 1,633). During the

year, an amount of EUR 632 (2015: EUR 883) was charged to the statement of profit and loss and added to the provision for bad debts.


10. Cash and cash equivalents 2016 2015Bank balances 12,981 15,056

Cash and cash equivalents in the statement of cash flows 12,981 15,056

11. EquityFor an overview of the transactions in equity see the consolidated statement of changes in Equity on page 17.

Share capitalThe shares amount to € 1,- nominal each.

Number of shares Ordinary shares 2016 2015

Authorized and issued capital at 1 January 1,500,000 1,500,000

Authorized and issued capital at 31 December 1,500,000 1,500,000

There are bank guarantees for the rented premises in The Netherlands and Belgium for a total of EUR 353 (2015 EUR 412). In the bank balances is an amount of EUR 3,534 (2015:

EUR 6,158) separated in ”Stichting Derdengelden Graydon Incasso” that belongs to debt collection clients and is not available for use by the Company.

Share premiumThis share premium represents the amount received from shareholders for shares in excess of the nominal value at the date of incorporation of the company.

ReservesThe reserves include a legal reserve and a translation reserve.

Legal reserveThe legal reserve represents the amount to be held against the intangible assets. The reserve is not free at disposal to shareholders.

Translation reserveThe translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations that are not integral to the operations of the Company, as well as from the translation of liabilities that hedge the Company’s net investment in a foreign subsidiary.

Proposed allocation of 2016 resultsThe Managing Board proposes to the General Meeting of Shareholders to allocate the negative result 2016 of EUR 727 to the retained earnings.

12. ProvisionsOPS restructuring

2016 2015Provision at 1 January 1,627 1,844Additions 54 304Used - 553 - 336Released - - 186

Provision at 31 December 1,127 1,626

Non-current portion of provisions - -Current portion of provisions 1,127 1,626

Provision at 31 December 1,127 1,626


The company has identified a few specific cases regarding incomplete remittance of taxation. The estimated effect amounts EUR 231 (2015: EUR 618) and has been provided for during 2014 and 2015. A part of the amount provided for is still under discussion with the local tax authorities.

OPS restructuring concerns a provision to adjust the organization to the new, more automated processes in the Netherlands and Belgium. The Group recognised a provision

for expected restructuring costs mainly related to employee termination benefits. This restructuring was started in previous years for OPS in The Netherlands and has been completely executed during 2016. A provision for the restructuring of OPS in Belgium was formed during 2014. During 2016, management assessed the applicability of the Belgium OPS restructuring and reviewed the assumptions. This assessment did not lead to any material adjustments in the OPS restructuring provision.

Other 2016 2015Provision at 1 January 960 1,124Additions 131 430Used - 710 - 392Released - - 202

Provision at 31 December 381 960

Non-current portion of provisions - 225Current portion of provisions 381 735

Provision at 31 December 381 960

14. Trade and other payables

2016 2015

Trade payables 4,918 4,027Taxes and social charges 2,006 1,991Debt collection liabilities 1,925 2,439Non-trade payables and accrued expenses 4,487 3,850

13,336 12,307

The debt collection liabilities relate to expenses incurred for clients with respect to third parties, together with funds received for clients.

15. Deferred incomeThe liability for deferred income of EUR 13,032 (2015: EUR 15,476) pertains to amounts paid by customers and set aside for services to be performed in the future; the maximum period is 5 years and the average is 2 years.

During 2014, the group entered into a financial lease contract with Oracle with respect to hard- and software for a three year term. After the end of the contract terms, the group will become owner of the related hardware and software for EUR 10,-. The leased equipment secures lease obligations. At 31 December 2016, the net carrying amount of the leased

equipment was EUR 640 (2015: EUR 1,600) related to both the software (Intangible assets) as the hardware (Tangible assets) component. The principal of the lease contract amounts to EUR 2,935 which includes EUR 55 interest to be paid over the contract term.

No securities are granted.

13. Loans and borrowings Finance lease liabilities are payable as follows:

2016 2015 Future minimum Interest Present value Future minimum Interest Present value lease payments of minimum lease payments of minimum lease payments lease payments

Less than 1 year 269 8 261 1,070 19 1,051Between 1 and 5 years - - - 269 11 258

269 8 261 1,339 30 1,309


16. Employee benefits As of 1 January 2016, a change in Belgium pension legislation became effective (‘Wet Aanvullend Pensioen’). Until 1 January 2016 plan sponsors needed to guarantee an interest rate of 3,25% on employer pension contributions and 3,75% on employee contributions (if any). As of 1 January 2016, the future legal interest guarantee became variable, related to Belgian Bonds (OLO, 10 years), between an interest rate of 1,75% - 3,75%.

The Graydon Belgium Actuary (Van Breda) performed an assessment on the qualification of the Graydon Belgium NV pension plan and determined that the Defined Contribution plan can be considered as “plan with guaranteed return” and has to be considered as a Defined benefit plan”. Consequently, Van Breda has made an actuarial calculation on the Graydon Belgium NV pension plan, valuating the 2016 Defined Benefit Obligation and the related Plan Assets. Based on the actuarial calculation an (un)funded status of EUR 18 has been determined.

As plan assets include qualifying insurance policies, the fair value of the insurance policies is deemed the present value of the related obligations.

Funded Status 31 December 2016Assets Employee 1.594 Employer 4.826 Total 6.420 Employer Liabilities DBO Excluding Taxes 6.436 Taxes 2DBO Including Taxes 6.438 Assets 6.420 Unfunded Defined Benefit Obligation 18

As the plan assets include qualifying insurance policies, the fair value of the insurance policies is deemed to be the present value of the related obligations.

Contributions 31 December 2016 Employer contributions 173 Employee contributions 34 Total contributions 207 Taxes on employer contribution 9 and employee contribution Wage Tax on employer contribution 16Taxes (wage) 25

The Group expects to pay EUR 176 in contributions to its defined benefit plans in 2017.

Economic assumptions

Salary increase: 3,50% per annum until the age of 55 2,00% per annum afterwards. Inflation excluded.

The following were the principal actuarial assumptions at the reporting date (expressed as weighted averages):

• Inflation rate 2,00%• Discount rate 2,10%• Expected Return on Assets 2,10%

Employee information Active members 31 December 2016Number 90Total pay-roll 3,780(full-time year salaries) (in €)Average salary (in €) 42Average age 40 years and 10 monthsAverage past service 12 years and 3 months Deferred vested 31 December 2016Number 232 Average age 41 years and 9 months

Sensitivity Analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

Original

a. Rate 2.10%b. DBO 6,436 c. Normal Cost 201 d. Fair value of assets 6,420 Valuation Trend -1.00% a. Rate 1.10%b. DBO 7,580 c. Normal Cost 234 d. Fair value of assets 7,555 Valuation Trend 1.00% a. Rate 3.10%b. DBO 5,525 c. Normal Cost 175 d. Fair value of assets 5,514


18. Related partiesParent and ultimate controlling partyThe company considers its shareholder (see page 18) and the companies in which it holds equity stakes as related parties.

The shareholder is also client of the Group, the related turnover amounts to EUR 578 (2015: EUR 1,884). This is all related to credit management services. All the transactions with the shareholder were concluded on and at an arms’ length basis. The transactions with the companies in which the Company holds equity investments were not significant. The balance sheet contains a receivable on the shareholder of EUR 76 (2015: EUR 67). Graydon Holding has Management Service Agreements with her subsidiaries. In 2016, Graydon Holding charged an amount of EUR 4,523 (2015: EUR 2,242) to its subsidiaries.

Key management personnel compensationKey management personnel compensation relates to management team that leads the Group and amounts to EUR 1,504 (2015: EUR 2,281). The decrease in management personnel compensation is caused by a change in management structure during the year.

19. Risk ManagementGeneralAs part of the operational activities, the Group is exposed to risks relating to databases and IT issues. The Group does not use financial instruments like bonds, shares or derivatives. The Group only uses time deposits to optimise the interest earnings for the cash at banks.

Therefore, the Group does not run large risks regarding financial instruments, such as credit risks, liquidity risks and market risks. Market risk can be broken down into interest rate risks, foreign exchange risks and price risks. The Group runs interest rate risks on their outstanding cash at banks and credit risks on the time deposits and debtors.

Graydon has subsidiaries in the United Kingdom. Therefore, for the Group financial statements Graydon is exposed to foreign exchange risk on these activities.

The aim of the risk policy is to limit these risks to levels acceptable to Graydon. This section of the notes provides disclosures concerning the risks identified above and the

aims, policies and procedures of the Group for managing and measuring these risks. In addition, these consolidated financial statements include quantitative disclosures.

The Audit Committee of Graydon oversees the adequacy of the risk management in connection with the risks to which Graydon is exposed. The Audit Committee is supported in its supervisory position by the Internal Audit function within Graydon. This function provides additional assurance concerning the proper control of all the Graydon business processes by performing regular and occasional evaluations. Internal Audit’s findings are reported to the Audit Committee.

Credit riskCredit risk is the risk of financial loss by Graydon if a counterparty of a financial instrument does not meet its contractual obligations. Credit risks mainly arise from receivables from customers and from deposits. Graydon’s policy regarding the credit risk of the time deposits is that time deposits only may be invested in parties that have at least an A+ Long-term rating (based on S&P rating).

Graydon’s credit risk is mainly determined by the individual characteristics of the customers. The demographic aspects of the customer base, the risk of non-payment in the sector and the country in which the customers are active, have less impact on the credit risk.

As part of the credit policy used by the business units, the individual creditworthiness of each customer is assessed before standard payment and delivery conditions are offered to the customer. In the case of contract extensions, figures from the business unit’s own experience are also used in assessing the customer’s creditworthiness. Deliveries to customers with a high risk profile are only made after approval by the management. Business has been done with the majority of customers for many years, with only incidental non-material losses.

The Group has formed a provision for impairment for the amount of the estimated losses from trade and other receivables. The most important elements of this provision are a specific loss provision for important individual positions and a group loss provision for groups of comparable assets concerning losses suffered but not yet identified. The Group loss provision is determined on the basis of historic payment data for comparable financial assets.

Current 2016 2015Less than one year 3,173 2,903

Non currentBetween one and five years 5,970 2,347More than five years 464 -

9,607 5,250

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

17. Commitments and contingent liabilitiesThe Group has commitments and contingent liabilities for rent of buildings, cars and computer leasing.

The Group leases a number of buildings, cars and computers. The building leases vary from 3 years to more than 5 years. The car leases vary from 1 year to 4 years. The computer leases vary from 1 years to 4 years.


The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables mentioned in note 9. We do not hold any collateral for trade receivables. We do not have a significant customer concentration.

Per year-end, the average number days outstanding on trade receivables was 57. This number includes the days outstanding for long term receivables (mainly related to Graydon Belgium) included in the Trade Receivables number. Based on the amounts received on Trade Receivables outstanding per year-end in the first quarter of 2017, the credit risk on Trade Receivables is assessed as low.

With respect to the trade and other receivables that are neither impaired nor past due, there are no indications as of reporting date that the debtors will not meet their payment obligations.The Group held cash and cash equivalents of EUR 12,981 at

31 December 2016 (2015: EUR 15,056). The cash and cash equivalents are mainly held with bank and financial institution counterparties such as ABN-AMRO and KBC, which are rated A- to A+, based on ratings by Fitch, Moody’s and S&P.

Interest rate riskA change of 100 basis points in interest rates at the reporting date would have no material impact on equity and profit.

Liquidity riskLiquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk is managed centrally by management, based on rolling cash flow forecasts made on a monthly basis for the group as a whole.


The contractual maturities of financial liabilities which result in a payment outflow, all relate to non-derivative financial liabilities and consist of Trade and other payables and the Financial Lease liability and amount to EUR 10,103 (2015: EUR 11,090). All financial liabilities are due within the upcoming year.

The liquidity risk of the Group is very limited. The majority of the clients pay upfront. The deferred income consists largely out of already paid amounts (see note 15).

Currency riskThe Group is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales, purchases and borrowings are denominated and the respective functional currencies of Group companies. The functional currencies of Group companies are primarily the euro and British pound (GBP). The currencies in which these transactions are primarily denominated are euro and GBP.

The Group’s exposure to foreign currency risk is limited to a position of EUR 3,221 (GBP 3,769) that is held in GBP (2015: EUR 4,080, GBP 4,774) and relates to the subsidiary in the United Kingdom. The group does not use hedges to mitigate the risks of foreign currency exposures.

The following significant exchange rates were applied during the year:

Sensitivity analysisA 10% strengthening of the EUR against GBP at year-end would have decreased profit for the reporting period by EUR 36 and the equity position by some EUR 383. This analysis assumes that all other variables, particularly interest rates, remain constant. A 10% weakening of the EUR against GBP as at year-end would have had the equal but opposite effect, assuming that all other variables remain constant.

Fair value versus carrying amountThe carrying amounts for financial assets and liabilities included on the balance sheet do not materially differ from the fair value, except for intangible assets.

Average exchange Spot rate on rate for the year balance sheet date

2016 2015 2016 2015

GBP 1.26 1.37 1.17 1.35

20. Financial Instruments The carrying amounts of financial assets and liabilities belonging to the various measurement categories, classified by balance sheet category and non-current and current items are as follows:

21. Subsequent events As per 1 January 2017, Graydon Holding N.V. and its Dutch subsidiaries are included in the Fiscal Unity for Corporate Income Tax of Atradius N.V.

in thousands of € Measurement Carrying Carrying category in acc. Amount Amount with IAS 39 2016 2015

Trade accounts receivable LaR 7,885 10,081 Other financial assets LaR 2,483 3,821 Cash and cash equivalents LaR 12,981 15,056

Financial assets 23,349 28,958

Liabilities from financial leases FLAC 261 1,309 Trade accounts payable FLAC 4,918 4,027 Other financial liabilities FLAC 4,924 5,754

Financial liabilities 10,103 11,090

Aggregated according to categories as defined in IAS 39 Loans and receivables (LaR) 23,349 28,958 Financial liabilities measured at 10,103 11,090 amortized cost (FLAC) Available for sale (AfS) - - Financial liabilities held for trading (HfT) - -

Company statement of balance sheetbefore result appropriationAs at 31 December


Assets Intangible assets 1 5,895 5,798 Property, plant and equipment 2 197 478 Subsidiaries 3 11,643 12,197 Deferred tax assets 1,977 1,185

Total non-current assets 19,712 19,659

Income tax receivable 280 520Other trade receivables and prepayments 4 1,130 295 Cash and cash equivalents 286 3,103

Total current assets 1,696 3,918

Total assets 21,408 23,577

Equity Share capital 5 1,500 1,500 Share premium 5 1,376 1,376 Legal reserve 5 12,463 12,006 Foreign currency translation reserve 5 - 724 - 133 Retained earnings 5 - 3,540 - 2,384 Profit for the year 5 - 727 - 700

Total equity 5 10,347 11,665

Liabilities Deferred tax liabilities 992 805 Loans and Borrowings 6 - 258

Total non-current liabilities 992 1,063 Loans and Borrowings 6 261 1,051 Trade and other payables 7 9,068 9,798

Total current liabilities 9,329 10,849

Total liabilities 10,321 11,912

Total equity and liabilities 21,408 23,577

The notes on pages 38 to 41 are an integral part of these company financial statements.


In thousands of euro 2016 2015 Results from Group companies after taxation - 1,056 - 819 Other results after taxation 329 119

Profit for the period - 727 - 700

The notes on pages 38 to 41 are an integral part of these company financial statements.

Company income statement



Notes to the 2016 Company financial statements

GeneralThe Company financial statements are part of the 2016 financial statements of Graydon Holding N.V. (the ‘Company’). With regard to the Company income statement of Graydon Holding N.V, the Company has made use of the option provided by Section 402 of Book 2 of the Netherlands Civil Code.

Principles of valuation of assets and liabilities and determination of resultsIn selecting the principles of valuation of assets and liabilities and determination of results employed in the company financial statements, Graydon Holding N.V. has made use of the option provided by Section 362, subsection 8, of Book 2 of the Netherlands Civil Code. Consequently, the principles of valuation of assets and liabilities and determination of results (the ‘accounting policies’) employed in the company financial

statements of Graydon Holding N.V. are identical to those employed in the consolidated EU-IFRS financial statements. Interests in entities in which Graydon Holding N.V. has significant influence are measured using the equity method. The consolidated EU-IFRS financial statements have been prepared in accordance with the standards adopted by the International Accounting Standards Board as endorsed for use in the European Union (hereinafter referred to as ‘EU-IFRS’). These policies are discussed in notes a – q.

The share in the results of Group companies relates to the Company’s share in the results of those companies. Results on transactions whereby assets and liabilities have been transferred between the Company and its subsidiaries and between subsidiaries have not been recognised to the extent they can be considered unrealised.

1. Intangible assets

Internally developed software refers to software which is developed by the Company. Purchased software refers to software that is purchased from a third party. In the purchased software an amount of EUR 870 is included and is related to Assets Under Construction (2015: EUR 918).

Amortisation of internal developed software is according to 65%/30%/5% as the value of progressively decreasing from 1st year onwards.

Impairment test

The performed impairment analysis does not show any impairment triggers in 2016 and 2015.

Internally developed Purchased software software Total Book value at 1 January 2016 Costs at 1 January 2016 130 7,452 7,582 Amortisation at 1 January 2016 - 127 - 1,657 - 1,784

Book value at 1 January 2016 3 5,795 5,798

Movements Additions - 1,809 1,809 Disposal - 50 50 Amortisation charge for the year 3 1,658 1,661 Fully amortized - - - -

- 3 101 98

Book value at 31 December 2016 Costs at 31 December 2016 130 9,210 9,340 Amortisation at 31 December 2016 - 130 - 3,315 - 3,445

Book value at 31 December 2016 - 5,895 5,895


Impairment test

The performed impairment analysis does not show any impairment triggers in 2016 and 2015.

2. Property, Plant & Equipment

Property,plant and equipment Other Total

Book value at 1 January 2016Costs at 1 January 2016 867 - 867Depreciation at 1 January 2016 - 389 - - 389Book value at 1 January 2016 478 - 478

MovementsDisposals - - -Depreciation charge for the year 281 - - 281 - -

Book value at 31 December 2016Costs at 31 December 2016 867 - 867Depreciation at 31 December 2016 - 669 - - 669Book value at 31 December 2016 198 - 198

3. Subsidiaries

Total Total 2016 2015Balance as per 1 January 12,197 12,772

Exchange rate differences - 591 259Result for the year - 1,056 - 819Investments and Loans provided 1,114 - Dividend received - -Adjustments opening balance - 21 - 14

Balance as per 31 December 11,643 12,197

* As per 1 January 2016, Graydon Collections BVBA was merged with Graydon Belgium N.V.

Country of Ownership interest incorporation 31 December 2016 31 December, 2015

Graydon Nederland B.V. Netherlands 100 100

Open Companies B.V. Netherlands 100 100

Graydon Belgium N.V. Belgium 100 100

Graydon UK Ltd. United Kingdom 100 100

Giant.net B.V. Netherlands 100 100Stichting Derdengelden Graydon Incasso Netherlands - -Graydon Incasso B.V. Netherlands 100 100Graydon Collections B.V.B.A.* Belgium - 100


4. Other trade receivables and prepayments

All receivables are due within one year. No receivables on Group companies are included in 2015 and 2016 at balance sheet date.

5. EquityFor an overview of the transactions in equity see the consolidated statement of changes in Equity on page 17.

Share capitalThe shares amount to EUR 1,- nominal each.

Number of shares Ordinary shares

2016 2015Authorized and issued capital at 1 January 1,500,000 1,500,000

Authorized and issued capital at 31 December 2016 – fully paid 1,500,000 1,500,000

Share premiumThis share premium represents the amount received from shareholders for shares in excess of the nominal value at the date of incorporation of the Company.

ReservesThe reserves include a legal reserve and a translation reserve.

Legal reserveThe legal reserve represents the amount to be held against the intangible assets. The reserve is not free at disposal to the shareholders.

Translation reserveThe translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations that are not integral to the operations of the Company, as well as from the translation of liabilities that hedge the Company’s net investment in a foreign subsidiary.

Result allocation for 2015The negative net result 2015 of EUR 700 has been allocated to the retained earnings.

Proposed allocation of 2016 resultsThe Managing Board proposes to the General Meeting of Shareholders to allocate the negative result 2016 of EUR 727 to the retained earnings.


During the year, the group entered into a financial lease contract with Oracle with respect to hard- and software for a three year term. After the end of the contract terms, the group will become owner of the related hardware and software for EUR 10,-. The leased equipment secures lease obligations. At 31 December 2016, the net carrying amount of the leased equipment was EUR 640 (2015: EUR 1,600) related to both the software (Intangible assets) as the hardware (Tangible assets) component. The principal of the lease contract amounts to EUR 2,935 which includes EUR 55 interest to be paid over the contract term.

No securities are granted.

7. Current liabilitiesAll current liabilities are due within one year which relates of EUR 8,695 (2015: EUR 9,504) to Graydon group companies.

Remuneration of members of the Managing Board and the Board of Supervisory DirectorsIn case of one Managing Board member, Dutch legislation does not require to disclose the amount of this remuneration. Members of the Board of Supervisory Directors do not receive any remuneration.

Fees of the auditorWith reference to Section 2:382a (1) and (2) of the Netherlands Civil Code, the following fees for the financial year have been charged by KPMG Accountants N.V. to the Company:

2016 2015Statutory audit of annual accounts 230 260Other assurance services - -Tax advisory services - -Other non-audit services 30 -Total 260 260

Commitments and contingent liabilitiesThe Company has assumed unlimited liability as meant in Article 403, Part 9, Book 2 of the Netherlands Civil Code for the wholly owned Dutch subsidiaries whose financial statements have been included in the consolidated financial statements. Accordingly, these subsidiaries apply the exemption provided for in this article, in preparing and filing their financial statements.

The Company and its wholly owned Dutch subsidiaries form one tax unity. As a consequence, the Company has full and unlimited liability for all tax liabilities resulting from the tax unit.

Amsterdam, the 17th of May, 2017

The Managing Board The Supervisory BoardMr. Gertjan Kampman Mr. Dominique Charpentier, Chairman

Mr. Tom Kaars SijpesteijnMs. Marta Nodal Martín

Mr. Jörg Müller

Finance lease liabilities are payable as follows:6. Loans and borrowings

2016 2015 Future Present value Future Present value minimum of minimum minimum of minimum lease payments Interest lease payments lease payments Interest lease payments Less than 1 year 269 8 261 1,070 19 1,051 Between 1and 5 years - - - 269 11 258

269 8 261 1,339 30 1,309


1. Statutory profit allocationArticle 32 of the Articles of Association provides that:

1. The profit is at the disposal of the General Meeting of Shareholders.

2. Profit allocation can only take place with as maximum the distributable reserves.

3. Profit allocation takes place after adoption of the financial statements from which it appears that profit allocation is permissible.

2. Independent auditor’s reportFor the independent auditor’s report we refer to page 43 of this report.

Other information



Independent auditor’s report

To: To: the General Meeting and the Supervisory Board of Graydon Holding N.V.

Report on the accompanying financial statements

Our opinion

We have audited the financial statements 2016 of Graydon Holding N.V., based in Amsterdam. The financial statements include the consolidated financial statements and the company financial statements.

In our opinion: • the accompanying consolidated financial statements give a true and fair view of the financial position of Graydon Holding N.V. as at 31 December 2016 and of its result and its cash flows 2016 in accordance with International Financial Reporting Standards as adopted by the European Union (EU-IFRS) and with Part 9 of Book 2 of the Dutch Civil Code;• the accompanying company financial statements give a true and fair view of the financial position of Graydon Holding N.V. as at 31 December 2016 and of its result 2016 in accordance with Part 9 of Book 2 of the Dutch Civil Code.

The consolidated financial statements comprise: 1. the consolidated statement of financial position as at 31 December 2016;2. the following consolidated statements 2016: the statement of profit and loss and comprehensive income statement of changes in equity and cash flow statement; and3. the notes comprising a summary of the significant accounting policies and other explanatory information.

The company financial statements comprise:1. the company balance sheet as at 31 December 2016;2. the company profit and loss account 2016; and3. the notes comprising a summary of the accounting policies and other explanatory information.

Basis for our opinionWe conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are further described in the ‘Our responsibilities for the audit of the financial statements’ section of our report.We are independent of Graydon Holding N.V. in accordance with the Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten (ViO, Code of Ethics for Professional Accountants, a regulation with respect to

independence) and other relevant independence regulations in the Netherlands. Furthermore, we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics).

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Report on the other information included in the annual reportIn addition to the financial statements and our auditor’s report thereon, the annual report contains other information that consists of:• report of the Managing Board;• other information pursuant to Part 9 of Book 2 of the Dutch Civil Code;• report of the Supervisory Board.

Based on the following procedures performed, we conclude that the other information:• is consistent with the financial statements and does not contain material misstatements;• contains the information as required by Part 9 of Book 2 of the Dutch Civil Code.

We have read the other information. Based on our knowledge and understanding obtained through our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements.

By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil Code and the Dutch Standard 720. The scope of the procedures performed is less than the scope of those performed in our audit of the financial statements.

Managing Board is responsible for the preparation of the other information, including the management board’s report, in accordance with Part 9 of Book 2 of the Dutch Civil Code, and other information pursuant to Part 9 of Book 2 of the Dutch Civil Code.

Description of the responsibilities for the financial statements

Responsibilities of Managing Board and the Supervisory Board for the financial statementsManaging Board is responsible for the preparation and fair presentation of the financial statements in accordance with EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code. Furthermore, Managing Board is responsible for such internal


control as Managing Board determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to errors or fraud.

As part of the preparation of the financial statements, Managing Board is responsible for assessing the company’s ability to continue as a going concern. Based on the financial reporting frameworks mentioned, Managing Board should prepare the financial statements using the going concern basis of accounting unless Managing Board either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Managing Board should disclose events and circumstances that may cast significant doubt on the company’s ability to continue as a going concern in the financial statements.

The Supervisory Board is responsible for overseeing the company’s financial reporting process.

Our responsibilities for the audit of the financial statementsOur objective is to plan and perform the audit assignment in a manner that allows us to obtain sufficient and appropriate audit evidence for our opinion.

Our audit has been performed with a high, but not absolute, level of assurance, which means we may not have detected all material errors and fraud during our audit.

Misstatements can arise from fraud or errors and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. The materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our opinion.We have exercised professional judgement and have maintained professional scepticism throughout the audit, in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit included e.g.:

• identifying and assessing the risks of material misstatement of the financial statements, whether due to errors or fraud, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from errors, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;• obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control;

• evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Managing Board;• concluding on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company ceasing to continue as a going concern;• evaluating the overall presentation, structure and content of the financial statements, including the disclosures; and• evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Because we are ultimately responsible for the opinion, we are also responsible for directing, supervising and performing the group audit. In this respect we have determined the nature and extent of the audit procedures to be carried out for group entities. Decisive were the size and/or the risk profile of the group entities or operations. On this basis, we selected group entities for which an audit or review had to be carried out on the complete set of financial information or specific items.

We communicate with the Supervisory Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant findings in internal control that we identify during our audit.

Maastricht-Airport, the 17th of May, 2017

KPMG Accountants N.V.H. Urlings RA



Addresses

Graydon Holding N.V.Hullenbergweg 2601101 BV AmsterdamThe NetherlandsTelephone: +31 20 567 9768Fax: +31 20 691 3520Email: [email protected]: www.graydon.nl

Graydon Nederland B.V.Hullenbergweg 2501101 BV AmsterdamThe NetherlandsTelephone: +31 20 567 9999Fax: +31 20 696 3639Email: [email protected]: www.graydon.nl

Graydon Incasso B.V.Hullenbergweg 2501101 BV AmsterdamThe NetherlandsTelephone: +31 20 567 9768Fax: +31 20 691 3520

OpenCompanies B.V.Hullenbergweg 2501101 BV AmsterdamThe NetherlandsTelephone: +31 20 567 9999Fax: +31 20 696 3639Website: www.opencompanies.nl

Graydon Belgium N.V.Uitbreidingstraat 84 Bus 12600 BerchemBelgiumTelephone: +32 32 808 800Fax: +32 32 808 899Email: [email protected]: www.graydon.be

Graydon UK Ltd.2nd Floor Hygeia Building66 College RoadHarrow MiddlesexHA1 1BEUnited KingdomTelephone: +44 208 515 1400Fax: +44 208 515 1499Email: [email protected]: www.graydon.co.uk

Giant-Net B.V.Hullenbergweg 2601101 BV AmsterdamThe NetherlandsTelephone: +31 20 567 9702Fax: +31 20 691 3520



Graydon Holding N.V.Hullenbergweg 2601101 BV AmsterdamThe Netherlands

Entered in the Trade Registry of the Amsterdam Chamber of Commerce under number 33189409

Documents

2016 · In 2016 Graydon realised a revenue of EUR 50.9 million ... Graydon will continue to pursue its strategy of collecting large volumes of data from various sources so to convert