MONJASA A/S

MONJASA A/SAnnual Report for 2014

Monjasa A/SAnnual Report for 2014

CVR No 26 48 05 31

The Annual Report was presented and adopted at the Annual GeneralMeeting of the Company on 29 May 2015

Chairman

Monjasa A/S Annual Report for 2014

PAGE 2 // MONJASA - BUNKERING KNOWLEDGE SINCE 2002

CONTENTS

MANAGEMENT'S STATEMENT AND AUDITOR'S REPORT

Management's Statement ............................................................................................................................ 4

Independent Auditor's Report on the Financial Statements .......................................................................... 5

MANAGEMENT'S REVIEW

Company Information .................................................................................................................................. 7

Financial Highlights ..................................................................................................................................... 8

Review ...................................................................................................................................................... 10

FINANCIAL STATEMENTS

Income Statement 1 January - 31 December ............................................................................................. 18

Balance Sheet 31 December ..................................................................................................................... 19

Statement of Changes in Equity ................................................................................................................. 21

Notes to the Annual Report ....................................................................................................................... 22

Accounting Policies ................................................................................................................................... 28


MANAGEMENT’S STATEMENT

The Executive Board and Board of Directors have today considered and adopted the Annual Report of Monjasa A/S for the financial year 1 January - 31 December 2014.

The Annual Report is prepared in accordance with the Danish Financial Statements Act.

In our opinion the Financial Statements give a true and fair view of the financial position at 31 December2014 of the Company and of the results of the Company operations for 2014.

In our opinion, Management's Review includes a true and fair account of the matters addressed in theReview.

We recommend that the Annual Report be adopted at the Annual General Meeting.

Fredericia, 29 May 2015

Executive Board

Ricky Kenbjerg

Anders Østergaard Jan Jacobsen Kenneth Henriks

Board of Directors



INDEPENDENT AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS

To the Shareholder of Monjasa A/S

REPORT ON THE FINANCIAL STATEMENTS

We have audited the Financial Statements of Monjasa A/S for the financial year 1 January - 31 December 2014, which comprise income statement, balance sheet, statement of changes in equity, notes and summary of significant accounting policies. The Financial Statements are prepared in accordance with the Danish Financial Statements Act.

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

Management is responsible for the preparation of Financial Statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to fraud or error.

AUDITOR’S RESPONSIBILITY

Our responsibility is to express an opinion on the Financial Statements based on our audit. We conducted our audit in accordance with International Standards on Auditing and additional requirements under Danish audit regulation. This requires that we com-ply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the Financial Statements are free from material misstatement.

An audit involves performing audit procedures to obtain audit evidence about the amounts and disclosures in the Financial State-ments. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstate-ment of the Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation of Financial Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effective-ness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management, as well as evaluating the overall presentation of the Financial Statements.

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

Our audit has not resulted in any qualification.

OPINION

In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2014 and of the results of the Company operations for the financial year 1 January - 31 December 2014 in accordance with the Danish Financial Statements Act.



INDEPENDENT AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS

STATEMENT ON MANAGEMENT’S REVIEW

We have read Management’s Review in accordance with the Danish Financial Statements Act. We have not performed any pro-cedures additional to the audit of the Financial Statements. On this basis, in our opinion, the information provided in Manage-ment’s Review is in accordance with the Financial Statements.

Hellerup, 29 May 2015PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab

Lars Baungaard Kim TromholtState Authorised Public Accountant State Authorised Public Accountant


DKALA

Stamp

DKALA

Stamp

COMPANY INFORMATION

The Company Monjasa A/S Strevelinsvej 34 DK-7000 Fredericia

Telephone: +45 70 260 230 Facsimile: +45 70 260 233 E-mail: [email protected] Website: www.monjasa.com

CVR No: 26 48 05 31 Financial period: 1 January - 31 December Municipality of reg. office: Fredericia

Board of Directors Anders Østergaard Jan Jacobsen Kenneth Henriks

Executive Board Ricky Kenbjerg

Auditors PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 DK-2900 Hellerup

Lawyers Gorrissen Federspiel H. C. Andersens Boulevard 12 1553 København V

Banks Nordea Bank Sydbank



FINANCIAL HIGHLIGHTS

Seen over a five-year period, the development of the Company is described by the following financial highlights:

KEY FIGURES

2014 2013 2012 2011 2010

TDKK TDKK TDKK TDKK TDKK

Profit/loss 10,081,134 8,722,536 5,947,063 5,305,477 2,983,845

Gross profit/loss 167,208 115,546 116,126 113,701 67,205

Profit/loss before financial income and expenses 90,098 61,620 79,971 86,313 48,215

Net financials -67,010 -9,825 -5,144 -1,944 4,840

Net profit/loss for the year -8,511 49,352 61,553 67,722 42,641

Balance sheet

Balance sheet total 1,135,758 1,214,716 828,443 586,225 438,185

Equity 265,492 284,003 244,651 193,098 127,376

Investment in property, plant and equipment 15,937 8,285 9,090 10,788 1,052

Average number of employees 99 76 52 39 27

Ratios

Gross margin 1.7% 1.3% 2.0% 2.1% 2.3%

Profit margin 0.9% 0.7% 1.3% 1.6% 1.6%

Return on assets 7.9% 5.1% 9.7% 14.7% 11.0%

Solvency ratio 23.4% 23.4% 29.5% 32.9% 29.1%

Return on equity -3.1% 18.7% 28.1% 42.3% 40.2%

For definitions, see under accounting policies.



In 2014, there was a 35% increase in supply of fuel oil products and a 18% increase in supply of gas oil compared to 2013 measured in metric tonnes

REVIEW

MAIN ACTIVITY

The main activity of the Company comprises sale, purchase and transportation of fuel and gas oil for the marine sector. Monjasa focuses on providing value-added services such as the granting of trade credit and issuing technical and commercial advice.

DEVELOPMENT IN THE YEAR

The income statement of the Company for 2014 shows a loss of TDKK 8,511, and at 31 December 2014 the balance sheet of the Company shows equity of TDKK 265,492.

COMPANY DEVELOPMENTS IN 2014

2014 has operationally been a steady year with growth in activities, fleet and staff in line with Management's overall expectations.

Focus has very much been aimed at consolidating numerous risk- and management aspects, including strengthening key positions and the organisational structure of the Company.

Increase in revenue in 2014 is primarily due to an increase in delivered quantities of fuel oil and gas oil products. In 2014, there was a 35% increase in supply of fuel oil products and a 18% increase in supply of gas oil compared to 2013 measured in metric tonnes.

Both total revenue and the 2014 financial result are affected negatively by strong competition on core markets and partially by lower oil prices.

Over the year, fluctuations in the USD-DKK exchange rate have led to an exchange rate loss of DKK 42 million in 2014 compared to a gain of DKK 7 million in 2013.

To support future growth, more employees have been recruited within sales and business support functions during 2014. Consequently, other external expenses and staff expenses have increased compared to last year.

The Company has during 2014 had and settled a significant dispute with one client regarding supply of bunker fuel delivered by a subcontractor. This dispute has had a significant negative affect on the result.

The Danish tax authorities have introduced new interpretation of existing law, which in effect prevents Monjasa from using the previously adopted tonnage tax regime. Consequently, provisions for the expected additional tax for the years 2010-2013 has been expensed in 2014 and affected the net result negatively by DKK 30 million. The general corporate tax rate has been applied for the year 2014 instead oftonnage tax. The Company does not agree with the opinion of the Danish tax authorities, and therefore the Company has disputed their opinion awaiting a court ruling in 2015-2016.

Both revenue and gross profits for the year are higher in 2014 than in 2013. However, the above factors lead to a lower net result. Taking into account the strategic considerations of expanding the employee pool to support Monjasa's growth, management considers revenue, gross profit and profit before interest and tax as satisfactory.

TARGETS AND EXPECTATIONS FOR THE YEAR AHEAD

Management expects a decrease in overall activity level in 2015 compared to 2014, primarily due to transfer of the West African bunkering activity, which previously was based in Denmark and at 1 January 2015 merged into other African activities already operated in the United Arab Emirates. The Company is compensated for the transfer by a non-recurring income, which will affect the result of the year in 2015 positively.

Consequently, Management expects a decrease in revenue but an increase in net profits in 2015, compared to 2014.


REVIEW

CAPITAL RESOURCES

With an equity ratio of 23.4%, Management considers Monjasa A/S, to be in a good financial position, which corresponds to the Company's growth plans and to the market-related challenges, which are seen in a market with volatile oil prices.

In 2015, the Monjasa Group Management completed negotiations of the future financing requirements.

SPECIAL RISKS - OPERATING RISKS AND FINANCIAL RISKS

Operating risksThe Board of Directors, Monjasa Group CEOs and the Monjasa Compliance Department, which is acting independently from the operational func-tions, continuously review and manage any developments in the overall operating risks associated to the Company's main business activities.

It is assessed that there are no sizeable uncovered risks in respect of the Company's operations, as no individual client or supplier make up a significant part of the Company's sales or purchases. The Company likewise holds adequate insurances against potential losses, which could occur to the Company bunker oil operations.

Market risksThe bunker oil activity is only to a limited extent affected by the risk of fluctuations in oil prices, as the oil products are either purchased and sold simultaneously, or otherwise hedged against fluctuations.

The Company continuously ensures prudent hedging procedures, most recently successfully managed during the highly volatile global oil market in the financial year 2014.

Currency exchange risksMore than 95% of the Company earnings are in USD. Earnings in 2014 are therefore affected by the USD -DKK exchange rate development. The present span between days payables outstanding and days sales outstanding entails that the activity is exposed to fluctuations in USD-DKK. Most of the earnings in USD have been exchanged on a concurrent basis, and consequently the effect of the USD-DKK rate on results has been minimised.

Interest rate risksOperating within the oil and shipping industry often involves extensive capital requirements, which results in financing requirements for com-panies with high growth. The Company's debt is primarily based on variable interest rates. Therefore, the interest rate has an influence on the Company's results.

Management reassesses financing options on a current basis based on the interest rate development.

Cash flow riskManagement adjusts the liquidity resources on a concurrent basis to future growth plans and to the challenges of a market with volatile oil prices.

Credit risksGranting credit to counter parts represents a high risk in the oil and shipping industry. Management therefore maintains a strong focus on the policies towards approval of trading partners and granting of credit lines to these. The Company has a separate Credit Department, which evalu-ates all new and existing trading partners in accordance with the credit policy.



REVIEW

This includes use of client credit insurance and credit rating models, which are being regularly updated to fit the state of the industry at all times.

In excess of 94% of the 2014 year end receivables have been collected, confirming the adequacy of the routine bad debt provisions.

STRATEGY AND VISION

StrategyAs part of the Monjasa Group, our strategy originates from the fundamental desire to be providing quality service on long term. Hence, quality in our performance comes before fixed targets for future growth and expansion. The shareholders want excellence to drive the Company forward, and through laying every brick with care to further develop a leading position as energy provider.

Emerging- and hard-to-reach-markets remain a strategic priority for the future development of the Company. In such more remote markets, the Group holds profound knowledge, and through extended physical operations, we are confident to grow our global market shares in the future.

The ability to continue following our strategy largely depends on our ability to retain, attract and develop the right human resources in our organisation. As an instrument to enhance this, the Company has increased training- and development activities and established its own academy. Thereby, we strive to further benefit from our organisation's unique abilities in adapting to change according to market demands.

The Monjasa strategy is best described by the four core values; Respect, Ambition, Curiosity and Smile & joy:

• RespectWe seek to gain global recognition as a professional Company by being capable of solving the most challenging tasks posed to us. Mutual respect is entrenched in our corporate culture. We respect our business partners, our fellow colleagues and our professional tasks.

• AmbitionWe must never lean back and be satisfied with the status quo. Our corporate culture is characterised by our constant strive for improvement - to do the job better than others - and to do the job better than we did the last time.

• CuriosityAs a company and as individuals, we are curious about our business environment. By constantly acquiring new and in-depth knowledge, we enhance the collaboration with clients and vendors alike.

• Smile & JoyIt must be fun to work! We take our work seriously and pride ourselves as professionals. It is equally important that we make room for smiles and mutual encouragement both internally and towards our business partners. We believe that exercising positive spirit and willingness to help are invaluable parts of our work culture, and in this respect we deeply believe in 'what you give is what you get'. Success in this respect would be achieved when employees regard Monjasa more like a challenging hobby rather than hard work.

VisionAs part of the Monjasa Group, our vision is to become a top ten privately owned energy trading Group in the world. This vision is deeply rooted in our entrepreneurial culture. Monjasa will remain a dynamic organisation always on the lookout for new business areas and appealing markets opportunities.

We strive to make a real difference in the marine fuel industry; not by inventing new kinds of services as such, but a difference in the way we treat our business partners. The difference comes from taking an ownership attitude in the work, rather than just performing a mechanism or a simple function.

The vision and our Group values must lead us towards becoming a 'first choice' for our business partners and employees.


REVIEW

CORPORATE SOCIAL RESPONSIBILITY

This section is Monjasa's statement of compliance with the Danish Financial Statements Act, section 99 (a).

In 2014, Monjasa developed its first formalised policy on CSR.

Monjasa A/S is a global maritime company operating own fleet of bunker tankers. The international business of the Company implies contact with companies and authorities around the world; including in regions suffering from poverty, lack of education and corruption.

In relation to our CSR policy we have identified four main areas which we will draw particular attention towards both internally and externally:

• Environment, safety and climate

• Transparency and ethics

• Diversity, working environment, equal- and human rights

• Social responsibility (Monjasa Foundation)

ENVIRONMENT, SAFETY AND CLIMATE

Monjasa A/S prioritises environment and safety as one of our most important focal points. The Company invests significant resources to ensure that environmental conditions and safety on board vessels in our fleet are of the highest quality possible and comply with the current interna-tional requirements and standards.

In this respect, Monjasa A/S maintains ISO 14001, OHSAS 18001 and ISO 50001 certifications; demonstrating a strong and structured commitment to e.g. reducing environmental risks.

• In 2014, no environmental incidents on any vessel was reported to the Management.

• All employees in Monjasa A/S have successfully completed courses in first aid during 2014.

We acknowledge that we have a responsibility towards the global environment and climate challenges and we are therefore engaging in dialogue with our stakeholders, aiming towards the most responsible energy solutions.

Other examples of the Company's climate related activities include:

• Engaging in promoting more climate friendly marine fuel types such as LNG and low sulphur gas oil. Thereby, taking part in reducing the environmental footprint of our industry.

TRANSPARENCY AND ETHICS

Monjasa A/S works towards conducting business in a transparent and ethical way and in accordance with our code of conduct, within which we expect our employees to act.

Through information and continuing development of our employees, we aim to contribute to a sounder business environment by inspiring others to take action according to international recommendations on best market practice. As a Company, Monjasa has an open approach to business and therefore we share our group policies and guidelines internally, and with relevant external counterparties. In this context, we constantly strive to keep all counterparties and employees duly informed of what we expect of them as to conduct with and within Monjasa. Training courses in ethics and code of conduct are scheduled within the Company throughout 2015.



REVIEW

DIVERSITY, WORKING ENVIRONMENT, EQUAL -AND HUMAN RIGHTS

DiversityMonjasa should be a diverse workplace - at sea and on land. With respect for the individual in our organisation, we prioritise having a broad mix of employees reflecting the society we form part of.

Today, Monjasa A/S is a multicultural organisation and we consider the freedom for diversity as a strength for our further organisational develop-ment.

Working environmentWe place great emphasis on our employees being offered the best possible working conditions. This includes that our working environment must be safe and well-functioning in both the physical and the mental aspect.

Monjasa is regularly conducting working environment surveys, including Workplace Assessments and Employee Satisfaction Surveys. Monjasa maintains OHSAS 18001:2007-certification for constantly focusing on the working environment.

Equal rightsReflecting the structure of society includes representation of both genders in the global organisation of the Company, which is a natural priority to the Management. Balance is a key element in all long-term performances; hence, the Company provides equal access to career opportunities for both genders. In other words, we always prioritise talent and performance above gender.

Human rightsNo violations of human rights among suppliers or other business partners were reported to Monjasa A/S Management in 2014.

• Monjasa applies an anti-discrimination and anti-harassment policy on a Monjasa Group level.

• The Compliance Department has scheduled for all employees in Monjasa A/S to attend obligatory code of conduct and human rights training courses during 2015.

• The Monjasa Academy launches obligatory e-learning modules comprising code of conduct- and anti-corruption policies. These modules must be completed by all Monjasa A/S employees by 2015, and thereafter by policy for new employees within their first year of employment.

• The Universal Declaration of Human Rights, adopted by the UN General Assembly, will as of 2015 be part of Monjasa's KYC-assessment of all new businessvendors.

SOCIAL RESPONSIBILITY (MONJASA FOUNDATION)

Social responsibility has been a part of the Monjasa DNA since the company inception. With the establishment of the Monjasa Foundation in 2015, we ensure that this DNA remains an integral part of Monjasa's business concept in the future.

The Monjasa Foundation concentrates on projects and initiatives that directly support motivation, learning and education of primarily children and young people in less resourceful environments.


REVIEW

In 2014, Monjasa engaged in several humanitarian and non-profit making projects. Examples of such projects include supporting socially marginalised youngsters in becoming part of the community, dedicating resources for developing local sports, and performing arts activities for the benefit of young people and the community as a whole.

Humanitarian projects include contributing to 'Danmarks Indsamlingen 2014' and the struggle for curing cancer by supporting The Danish Cancer Society.

GENDER QUOTA IN THE TOP MANAGEMENT

This section constitutes Monjasa's statement of compliance with the Danish Financial Statements Act, section 99 (b).

In 2013, the Monjasa Board of Directors decided to work towards inviting a female member into the Board of Directors by 2016 at the latest. By end of 2014 a candidate has not yet been nominated.

Monjasa A/S focuses on employing talented leaders of both genders and does not exercise preference regarding gender of any kind concerning any position within the Company. Consequently, no specific goals or restrictions have been defined for female and male representa-tion on management level. Monjasa A/S promoted three female colleagues to Department Managers in the organisation in 2014.

Furthermore, the Company employs several female team leaders across departments and this organisational level is regarded a stepping-stone for entering mid-management level.

BUSINESS COMPLIANCE

In 2014, the Company achieved ISO 9001, ISO 14001, and OHSAS 18001-certifications and a dedicated Compliance Department was estab-lished.

For all business partners, this means demonstration and assurance of Monjasa's constant focus on client satisfaction, reduction of environmental risks and optimising the working environment.

By continuous monitoring, evaluation and documentation of our entire value chain, the Company is thereby reducing the overall risk profile. Monjasa A/S counterparts can thereby rely on doing business with a Company that systematically manages any risks associated to our worldwide bunker oil services.

INTELLECTUAL CAPITAL RESOURCES

Company growth leads to a need for competent employees and a flexible organisation. Therefore, Monjasa increasingly spends resources towards attracting new talented employees and on retaining and training current ones. The Company operates a relatively flat organisational structure characterised by close and open dialogue between Management and employees.

UNCERTAINTY RELATING TO RECOGNITION AND MEASUREMENT

Trade receivablesTrade receivables are recognised at amortised cost less provisions for bad and doubtful debts. Provisions are made for specific probable losses as well as on a general level. The receivables in the balance sheet are not fully paid or insured and residual risk hence exists.

Management assesses that there are no further items in the Financial Statements which are subject to uncertainty that may have a significant impact on results and therefore on the true and fair view.

UNUSUAL CIRCUMSTANCES

The Company's financial position at 31 December 2014 as well as the results of the Company's operations and cash flows for the financial year 2014 are not affected by any unusual circumstances except for non recurring expenses as described in the section 'Company developments' in 2014 on page 10.



REVIEW

SUBSEQUENT EVENTS

Change in the businessAs part of a consolidation process at Monjasa Group level, Monjasa A/S transferred its West African bunkering activity as of 1 January 2015. Instead, this activity merged into other African business activities already operated inthe United Arab Emirates.

Capital resourcesIn 2015, the Monjasa Group Management completed negotiations of the future financing requirements. The new financing changes the securi-ties at 31 December 2014 stated in note 11.

Changing financial currency in 2015As USD is the primary currency applied inthe bunkering- and tanker activities, Management has decided to change financial reporting currency from DKK to USD as of 1 January 2015. This is done to eliminate translation risks related to exchange rates in the financial statements.




Good colleagues matter. Bunker Traders Kasper Nygaard and Gazi Yayla together with in-house Travel Coordinator, Marianna K. Gogios Thygesen

INCOME STATEMENT 1 JANUARY - 31 DECEMBER

Note 2014 2013

TDKK TDKK

Revenue 1 10,081,134 8,722,536

Other operating income 5,946 4,159

Cost of sales -9,835,427 -8,558,047

Other external expenses -84,445 -53,102

Gross profit/loss 167,208 115,546

Staff expenses 2 -68,737 -48,616

Depreciation, amortisation and impairment of intangible assets andproperty, plant and equipment 3 -8,008 -5,310

Other operating expenses -365 0

Profit/loss before financial income and expenses 90,098 61,620

Financial income 4 1,716 8,958

Financial expenses 5 -68,726 -18,783

Profit/loss before tax 23,088 51,795

Tax on profit/loss for the year 6 -31,599 -2,443

Net profit/loss for the year -8,511 49,352

DISTRIBUTION OF PROFIT

2014 2013

TDKK TDKK

Proposed distribution of profit

Proposed dividend for the year 0 10,000

Retained earnings -8,511 39,352

-8,511 49,352



Good colleagues matter. Bunker Traders Kasper Nygaard and Gazi Yayla together with in-house Travel Coordinator, Marianna K. Gogios Thygesen

Note 2014 2013

TDKK TDKK

Software and licences 5,116 2,632

Intangible fixed assets 7 5,116 2,632

Land 6,102 2,509

Other fixtures and fittings, tools and equipment 20,356 15,214

Leasehold improvements 2,545 2,629

Tangible fixed assets 8 29,003 20,352

Other investments 1,305 1,305

Deposits 5,242 5,305

Financial fixed assets 9 6,547 6,610

Fixed assets 40,666 29,594

Storage of bunker oil for resale and consumption 318,952 359,944

Stocks 318,952 359,944

Trade receivables 691,390 755,316

Receivables from group enterprises 36,911 48,053

Receivables from associates 601 26

Other receivables 26,850 6,575

Deferred tax asset 7,884 4,121

Prepayments 11,392 6,578

Receivables 775,028 820,669

Cash at bank and in hand 1,112 4,509

Currents assets 1,095,092 1,185,122

Assets 1,135,758 1,214,716

BALANCE SHEET 31 DECEMBER

ASSETS



Note 2014 2013

TDKK TDKK

Share capital 578 578

Retained earnings 264,914 273,425

Proposed dividend for the year 0 10,000

Equity 10 265,492 284,003

Lease obligations 267 661

Long-term debt 267 661

Other credit institutions 226,254 9,615

Prepayments received from customers 0 16,262

Trade payables 339,342 715,439

Lease obligations 726 677

Payables to group enterprises 269,589 179,272

Payables to associates 88 0

Corporation tax 25,846 1,848

Other payables 8,154 6,939

Short-term debt 869,999 930,052

Debt 870,266 930,713

Liabilities and equity 1,135,758 1,214,716

Contingent assets, liabilities and other financial obligations 11

Related parties and ownership 12

BALANCE SHEET 31 DECEMBER

LIABILITIES AND EQUITY


STATEMENT OF CHANGES IN EQUITY

Share capital Retained earnings

Proposed dividend for

the yearTotal

TDKK TDKK TDKK TDKK

Equity at 1 January 578 273,425 10,000 284,003

Ordinary dividend paid 0 0 -10,000 -10,000

Net profit/loss for the year 0 -8,511 0 -8,511

Equity at 31 December 578 264,914 0 265,492



2 STAFF EXPENSES

2014 2013

TDKK TDKK

Wages and salaries 64,749 45,687

Pensions 3,313 2,442

Other social security expenses 675 487

68,737 48,616

Including remuneration to the Executive and Supervisory Boards 7,961 5,406

Average number of employees 99 76

3 DEPRECIATION, AMORTISATION AND IMPAIRMENT OF INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT

2014 2013

TDKK TDKK

Amortisation of intangible assets 1,086 828

Depreciation of property, plant and equipment 6,922 4,482

8,008 5,310

Software and licences 1,086 828

Buildings 484 0

Other fixtures and fittings, tools and equipment 5,539 3,960

Leasehold improvements 899 522

8,008 5,310

NOTES TO THE ANNUAL REPORT

1 SEGMENT INFORMATION

The Company's activities are perceived as one segment.



5 FINANCIAL EXPENSES

2014 2013

TDKK TDKK

Interest paid to group enterprises 5,900 6,711

Other financial expenses 20,885 12,072

Net exchange adjustments 41,941 0

68,726 18,783

6 TAX ON PROFIT/LOSS FOR THE YEAR

2014 2013

TDKK TDKK

Current tax for the year 5,392 5,596

Deferred tax for the year -3,763 -2,403

Adjustment of tax concerning previous years 29,970 -750

31,599 2,443

4 FINANCIAL INCOME

2014 2013

TDKK TDKK

Other financial income 1,716 2,362

Net exchange adjustments 0 6,596

1,716 8,958



Software and licences

TDKK

Cost at 1 January 6,028

Additions for the year 3,571

Cost at 31 December 9,599

Impairment losses and amortisation at 1 January 3,397

Amortisation for the year 1,086

Impairment losses and amortisation at 31 December 4,483

Carrying amount at 31 December 5,116

Amortised over 5-8 years


7 INTANGIBLE FIXED ASSETS



Land

Other fixtures and fittings,

tools and equipment

Leasehold improvements

TDKK TDKK TDKK

Cost at 1 January 2,509 23,930 3,896

Additions for the year 4,077 11,045 815

Disposals for the year 0 -2,586 0

Cost at 31 December 6,586 32,389 4,711

Impairment losses and depreciation at 1 January 0 8,716 1,267

Depreciation for the year 484 5,539 899

Reversal of impairment and depreciation of sold assets 0 -2,222 0

Impairment losses and depreciation at 31 December 484 12,033 2,166

Carrying amount at 31 December 6,102 20,356 2,545

Amortised over 2 years 5 years 5 years

Including assets under finance leases amounting to 0 1,490 0

9 FINANCIAL FIXED ASSETS

Otherinvestments Deposits

TDKK TDKK

Cost at 1 January 1,305 5,305

Disposals for the year 0 -63

Cost at 31 December 1,305 5,242

Carrying amount at 31 December 1,305 5,242

10 EQUITY

The share capital consists of 578,431 shares of a nominal value of TDKK 1. No shares carry any special rights.


8 TANGIBLE FIXED ASSETS



11 CONTINGENT ASSETS, LIABILITIES AND OTHER FINANCIAL OBLIGATIONS

Rental agreements and leasesMonjasa A/S has assumed rent lease obligations which at 31 December 2014 amounts to DKK 34 million (2013: DKK 35 million) in the period of non-terminalibity up to 83 months (2013: 95 months).

The Company has assumed a contingent liability regarding refurbishment, which at 31 December 2014 amounts to DKK 1 million (2013: DKK 1 million).

Contingent liabilitiesThe Company has issued a letter of undertaking in favour of Monjasa Pte. Ltd.'s receivable from debtor applying until March 2015 amounting to DKK 6.6 milllion (2013: DKK 6.2 million).

The Company has assumed surety for the debt to banks of the group enterprise Monjasa Holding A/S , which at 31 December 2014 amounts to DKK 455 million (2013: DKK 346 million).

The Company has assumed contingent liabilities regarding charter hire, which at 31 December 2014 amount to DKK 215 million (2013: DKK 116 million). The liability of DKK 184 million relate to vessels transferred to Monjasa DMCC as of 1 of January 2015.

The Company is part in lawsuits and disputes, which are not expected to have significant impact on the Company's financial position and future earnings.

12 RELATED PARTIES AND OWNERSHIP

Controlling interestMonjasa Holding A/S, Fredericia, Denmark Controlling shareholder (ultimate)Downstream Holding A/S, Fredericia, Denmark Controlling shareholder

Basis

OwnershipThe following shareholders are recorded in the Company's register of shareholders as holding at least 5% of the votes or at least 5% of the share capital:Downstream Holding A/S

Consolidated Financial StatementsThe Company is included in the Group Annual Report of Monjasa Holding A/S.

The Group Annual Report of Monjasa Holding A/S may be obtained at the following address: Strevelinsvej 34 DK-7000 Fredericia Denmark

Other related partiesAnders ØstergaardJan JacobsenKenneth HenriksMonjasa Holding A/S and related companies

Chairman of the Supervisory Board

Chief Executive Officer and member of the Supervisory Board Chief Executive Officer and member of the Supervisory Board Chief Financial Officer and member of the Supervisory Board Group enterprise


Through our Copenhagen office, we are situated in the centre of Denmark’s maritime industry

ACCOUNTING POLICIES

BASIS OF PREPARATION

The Annual Report of Monjasa A/S for 2014 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C.

The accounting policies applied remain unchanged from last year. The Annual Report for 2014 is presented in TDKK.

Recognition and measurementRevenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement.

Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably.

Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably.

Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below.

Certain financial assets and liabilities are measured at amortised cost, which involves the recognition of a constant effective interest rate over the maturity period. Amortised cost is calculated as original cost less any repayments and with addition/deduction of the cumulative amortisation of any difference between cost and the nominal amount. In this way, capital losses and gains are allocated over the maturity period.

Recognition and measurement take into account predictable losses and risks occurring before the presentation of the Annual Report which con-firm or invalidate affairs and conditions existing at the balance sheet date.

LeasesLeases in terms of which the Company assumes substantially all the risks and rewards of ownership (finance leases) are recognised in the bal-ance sheet at the lower of the fair value of the leased asset and the net present value of the lease payments computed by applying the interest rate implicit in the lease or an approximated value as the discount rate. Assets acquired under finance leases are depreciated and written down for impairment under the same policy as determined for the other fixed assets of the Company.

The remaining lease obligation is capitalised and recognised in the balance sheet under debt, and the inte rest element on the lease payments is charged over the lease term to the income statement. All other leases are considered operating leases. Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease term.

Translation policiesTransactions in foreign currencies are translated at the exchange rates at the dates of transaction. Gains and losses arising due to differences be-tween the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Where foreign ex change transactions are considered hedging of future cash flows, the value adjustments are recognised di rectly in equity.



ACCOUNTING POLICIES

Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the transaction date rates are recognised in financial income and expenses in the income statement.

INCOME STATEMENT

RevenueRevenue from the sale of goods for resale and finished goods is recognised in the income statement when delivery and transfer of risk has been made before year end.

Revenue is recognised exclusive of VAT and net of discounts relating to sales.

Cost of salesCost of sales comprise the raw materials and consumables including charterfee and costs to staff on chartered vessels consumed to achieve revenue for the year.

Other external expensesOther external expenses comprise indirect production costs and expenses for premises, sales and distribution as well as office expenses, etc.

Staff expensesStaff expenses comprise wages and salaries as well as payroll expenses other than production wages.

Amortisation, depreciation and impairment lossesAmortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of intangible assets and property, plant and equipment.

Other operating income and expensesOther operating income and other operating expenses comprise items of a secondary nature to the core activities of the enterprise, including gains and losses on the sale of intangible assets and property, plant and equipment.

Financial income and expensesFinancial income and expenses are recognised in the income statement at the amounts relating to the fi nancial year.

Tax on profit/loss for the yearTax for the year consists of current tax for the year and deferred tax for the year. The tax attributable to the profit for the year is recognised in the income statement, whereas the tax attributable to equity trans actions is recognised directly in equity.


ACCOUNTING POLICIES

BALANCE SHEET

Intangible assetsSoftware is measured at cost less any accumulated amortisation and impairment losses or at a lower recoverable amount.

Software is amortised over the remaining software period or a shorter useful life.

Tangible fixed assetsTangible fixed assets are measured at cost less accumulated depreciation and less any accumulated impairment losses.

Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. In the case of assets of own construction, cost comprises direct and indi rect expenses for labour, materials, components and sub-suppliers.

Interest expenses on loans raised directly for financing the construction of property, plant and equipment are recognised in cost over the period of construction. All indirectly attributable borrowing expenses are recognised in the income statement.

Depreciation based on cost reduced by any residual value is calculated on a straightline basis over the expected useful lives of the assets, which are:

Other fixtures and fittings, tools and equipment 5 yearsLeasehold improvements 5 yearsBuildings 2 years Impairment of fixed assetsThe carrying amounts of intangible assets and property, plant and equipment are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisa tion and depreciation.

If so, the asset is written down to its lower recoverable amount.

StocksStocks are measured at the lower of cost under the FIFO method and net realisable value.

The net realisable value of stocks is calculated at the amount expected to be generated by sale in the pro cess of normal operations with deduc-tion of selling expenses and costs of completion. The net realisable value is determined allowing for marketability, obsolescence and develop-ment in expected sales sum.

The cost of goods for resale, raw materials and consumables equals landed cost.

ReceivablesReceivables are recognised in the balance sheet at amortised cost, which substantially corresponds to no minal value. Provisions for estimated bad debts are made.



ACCOUNTING POLICIES

Fixed assets investmentsCurrent asset investment under fixed asset investments, which consist of unlisted shares, are measured at cost.Deposita are recognised at cost.

PrepaymentsPrepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions, interest and prepayments from suppliers.

Equity

DividendDividend distribution proposed by Management for the year is disclosed as a separate equity item.

Deferred tax assets and liabilitiesDeferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes on the basis of the intended use of the asset and settlement of the liability, respectively. Deferred tax assets, including the tax base of tax loss carry-forwards, are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity.

Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legisla tion at the balance sheet date when the deferred tax is expected to crystallise as current tax. Any changes in deferred tax due to changes to tax rates are recognised in the income statement.

Current tax receivables and liabilitiesCurrent tax liabilities and receivables are recognised in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and repayment under the on-account taxation scheme are recognised in the income statement in financial income and expenses.

Financial debtsFixed-interest loans, such as loans from credit institutions, are recognised initially at the proceedsreceived net of transaction expenses incurred. Subsequently, the loans are measured at amortised cost; the difference between the proceeds and the nominal value is recognised as an interest expense in the income statement over the loan period.

Mortgage loans are measured at amortised cost, which for cash loans corresponds to the remaining loan. Amortised cost of debenture loans cor-responds to the remaining loan calculated as the underlying cash value of the loan at the date of raising the loan adjusted for depreciation of the price adjustment of the loan made over the term of the loan at the date of raising the loan.

Other debts are measured at amortised cost, substantially corresponding to nominal value.

Prepayments received from customersPrepayments comprises payments received from customers.

CASH FLOW STATEMENT

Cash flow statement has been omitted in pursuance of the Danish Financial Statements Act section 86, subsection 4. Cash flows are included in the Consolidated Cash Flow Statement for Monjasa Holding A/S.


ACCOUNTING POLICIES

FINANCIAL HIGHLIGHTS

Explanation of financial ratios

Gross margin = Gross profit x 100 Revenue

Profit margin = Profit before financials x 100 Revenue

Return on assets = Profit before financials x 100 Total assets

Solvency ratio = Equity at year end x 100 Total assets

Return on equity = Net profit for the year x 100 Average equity



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