CONSOLIDATED FINANCIAL STATEMENTS OF EMMI GROUP

Notes to the consolidated financial statements

in CHF 000s

1. Segment reporting

By product groups and divisions	2017	Switzerland 2016	2017	Americas 2016	2017	Europe 2016	2017	Global Trade 2016	2017	Group 2016
Milk	254,830	256,823	231,128	206,792	77,440	76,489	2,881	2,988	566,279	543,092
Butter and margarine	239,560	234,266	1,160	143	27,001	18,171	6,856	8,781	274,577	261,361
Cream	167,564	172,313	33,771	30,126	3,689	3,512	1,144	728	206,168	206,679
Dairy products	661,954	663,402	266,059	237,061	108,130	98,172	10,881	12,497	1,047,024	1,011,132
As % of net sales	38.2	38.1	28.0	27.4	19.2	18.9	9.1	9.4	31.1	31.0

Fresh products	343,883	346,248	196,776	200,538	227,513	206,880	42,768	45,902	810,940	799,568
As % of net sales	19.9	19.9	20.7	23.2	40.3	39.8	35.7	34.6	24.1	24.5

Natural cheese	421,954	424,939	384,896	344,758	107,524	107,232	41,761	40,488	956,135	917,417
Processed cheese	53,676	55,541	19,094	17,101	17,492	17,143	7,250	8,064	97,512	97,849
Cheese	475,630	480,480	403,990	361,859	125,016	124,375	49,011	48,552	1,053,647	1,015,266
As % of net sales	27.5	27.6	42.5	41.8	22.1	24.0	40.9	36.5	31.3	31.2

Fresh cheese	107,767	111,511	2,636	844	69,826	64,690	436	408	180,665	177,453
As % of net sales	6.2	6.4	0.3	0.1	12.4	12.5	0.4	0.3	5.4	5.4

Powder/concentrates	67,532	59,766	5,330	223	26,459	18,552	14,910	17,981	114,231	96,522
As % of net sales	3.9	3.4	0.6	–	4.7	3.6	12.5	13.5	3.4	3.0

Other products	53,575	59,773	71,695	62,394	5,516	4,652	1,268	7,192	132,054	134,011
Sales of services	20,378	20,136	3,269	2,716	1,651	1,631	405	390	25,703	24,873
Other products and services	73,953	79,909	74,964	65,110	7,167	6,283	1,673	7,582	157,757	158,884
As % of net sales	4.3	4.6	7.9	7.5	1.3	1.2	1.4	5.7	4.7	4.9

Net sales	1,730,719	1,741,316	949,755	865,635	564,111	518,952	119,679	132,922	3,364,264	3,258,825
As % of Group	51.4	53.4	28.2	26.6	16.8	15.9	3.6	4.1	100.0	100.0

By country group	2017	in %	2016	in %
Switzerland	1,730,719	51.4	1,741,316	53.4
Europe excl. Switzerland	887,049	26.4	872,934	26.8
North and South America	559,862	16.6	462,345	14.2
Africa	140,338	4.2	142,492	4.4
Asia/Pacific	46,296	1.4	39,738	1.2
Total	3,364,264	100.0	3,258,825	100.0

Emmi does not publish segment results since this would cause significant competitive disadvantages towards stakeholders, non-listed and larger listed competitors both in Switzerland and abroad.

The business divisions are not defined strictly according to geographical considerations. The business division Americas includes the Emmi Group companies in the US, Canada, Chile, Mexico, Spain (excl. Lácteos Caprinos S.A.), France and Tunisia. The business division Europe incorporates those in Italy, Germany, Austria, Belgium, the Netherlands, the UK and Lácteos Caprinos S.A. in Spain. The business division Global Trade primarily comprises direct sales from Switzerland to customers in countries in which Emmi has no subsidiaries. These include the Asian and eastern European markets, most South American countries and the Arabian Peninsula.