Genus Regulatory News (GNS)

For immediate release 23 February 2016

Genus plc

('Genus', the 'Company' or the 'Group')

Interim Results for the six months ended 31 December 2015

Full Year on track after solid OVERALL first half performance

Genus, a leading animal genetics company, announces its interim results for the six months ended 31 December 2015.

* Adjusted results are before net valuation movement on biological assets, amortisation of acquired intangible assets, share-based payment expense and exceptional items. Adjusted results are the measures used by the Board to monitor underlying performance.

** Constant currency percentage movements are calculated by restating FY 2016 results at the average exchange rates applied in FY 2015.

BUSINESS HIGHLIGHTS

· Adjusted operating profit, including joint ventures, increased 4% in constant currency (3% lower in actual currency):

o Genus PIC profits up 10% in constant currency (9% in actual currency) with improvement in all regions and 16% growth in strategically important royalty revenues

o Genus ABS profits 23% lower in constant currency (28% in actual currency) with lower volumes due to tough dairy market conditions particularly in Europe. Action was taken in the period to improve Genus ABS performance

o Genus Asia profits up 93% in constant currency (87% in actual currency) with a strong turnaround achieved in the China porcine business following the strategic repositioning of the business over the last two years

o Research and development expenditure increased 16% in constant currency (19% in actual currency) to support planned strategic growth initiatives

· Revenue 3% lower in constant currency (5% lower in actual currency) primarily due to expected lower porcine by-product sales following the exit in the previous year from the Génétiporc Quebec nucleus and lower pig prices in North America

· Adjusted earnings per share up 5% in constant currency (3% lower in actual currency)

· Lower statutory results reflect non-cash fair value reduction in bovine biological assets due to lower overall volumes of semen and a planned increase in the percentage of genomic semen sales over future periods

· Net cash flow from operating activities of £5.6m (2014: £19.6m) was impacted by expected seasonal working capital outflows, higher exceptional items and increased tax payments. The prior period was also exceptionally strong, benefiting from the sale of the Génétiporc Quebec nucleus animals

· Net debt of £88.2m (2014: £73.2m), including adverse foreign exchange translation of £5.7m year to year, represented 1.5 times trailing twelve months EBITDA (2014: 1.3 times). New five year bank facility of £160m agreed on improved terms, effective 22 February 2016

· Interim dividend increased 10% to 6.7 pence per share payable on 30 March 2016

· Continued good progress in implementation of strategy:

o Announced the discovery of the first pig resistant to Porcine Respiratory and Reproductive Syndrome virus ('PRRSv') in collaboration with the University of Missouri. An exclusive global licence has been signed enabling Genus to develop and commercialise the technology

o In Vitro Brasil ('IVB') acquisition performing ahead of expectations with operations successfully started in North America

o Second porcine royalty customer signed in China

o New bull stud completed with our joint venture partner, Chitale, in India

o Genus Sexed Semen development project continued to make good progress against plan

· Performance overall in line with expectations for 2016

Karim Bitar, Chief Executive, commented:

"Genus achieved a great deal during the first half of the year. Our performance was in line with our expectations and demonstrated the success of our strategy and strength of our diverse species and geographic presence. Performance was particularly strong in Asia, led by China, whilst ABS was impacted by challenging trading conditions, particularly in Europe.

"The announcement of the first pigs resistant to the devastating PRRS virus, developed through gene editing with the University of Missouri, was a very significant milestone in the history of our industry. We are seeing the early fruits of our strong commitment to lead in innovation through R&D. We are excited by the prospects this has for animals, our customers and our business and will continue to commit increasing resources to our R&D programmes.

"Our confidence in the strategy for the business and in the future prospects for the Company is reflected in the 10%  increase in our interim dividend. We expect to make further good progress during the second half of the year and we anticipate that our full year performance will be in line with our objectives."

An analyst meeting will be held at 9.00am today at Buchanan's offices (107 Cheapside, London EC2V 6DN). A live audio feed will be available to those unable to attend this meeting in person. To connect to the web cast facility, please go to the following link:

http://vm.buchanan.uk.com/2016/genus230216/registration.htm approximately 10 minutes (8.50am) before the start of the meeting.

For further information please contact:

This announcement is available on the Genus website www.genusplc.com

About Genus

Genus creates advances to animal breeding and genetic improvement by applying biotechnology and sells added value products for livestock farming and food producers. Its technology is applicable across all livestock species and is currently commercialised by Genus in the dairy, beef and pork food production sectors.

Genus's worldwide sales are made in over seventy-five countries under the trademarks 'ABS' (dairy and beef cattle) and 'PIC' (pigs) and comprise semen, embryos and breeding animals with superior genetics to those animals currently in production. Genus's customers' animals produce offspring with greater production efficiency, and quality, and use these to supply the global dairy and meat supply chain.

The Group's competitive edge has been created from the ownership and control of proprietary lines of breeding animals, the biotechnology used to improve them and its global supply chain, technical service and sales and distribution network.

With headquarters in Basingstoke, United Kingdom, Genus companies operate in over twenty-five countries on six continents, with research laboratories located in Madison, Wisconsin, USA.

GROUP PERFORMANCE

Genus achieved considerable progress against its strategic objectives during the first half of the year and performance was in line with expectations, despite challenging market conditions for many of Genus's customers. Genus's results for the six months to 31 December 2015 showed growth in constant currency of 4% in adjusted profit before tax and 5% in earnings per share compared with the record prior year performance. Actual currencies had a £1.9m negative effect with the weakness of the Euro, key Latin American currencies and the Rouble resulting in adjusted profit before tax being 4% lower year to year.

Results

Revenue of £188.3m for the six months to 31 December 2015 (2014: £198.5m) was 3% lower in constant currency (5% lower in actual currency). Porcine byproduct sales were lower following the planned exit in the previous year from the Génétiporc Quebec nucleus and due to lower pig slaughter prices in the USA. Adjusted operating profit including joint ventures was 4% higher in constant currency but 3% lower in actual currency.

High porcine volume growth of 9% was achieved, with growth in all regions and a particularly strong performance in Asia. The percentage of volumes under strategically important royalty contracts also increased by 4 points to 77%, with increases in all regions. Bovine volumes were 5% lower with Europe particularly affected by the weak conditions in the dairy market.

Genus PIC performed strongly with a profit increase of 10% in constant currency (9% in actual currency) helped by robust volume performance across all regions, and continued focus on growing royalty business with key large accounts. Genus ABS's 23% decline in profit in constant currency (28% in actual currency) was impacted by tough trading conditions in dairy markets leading to lower volumes. Action was taken in the half year to reduce costs in Europe and increase prices in Latin America, where exchange rate devaluations have had the highest impact. In addition, IVB made a strong contribution, ahead of expectations. Genus Asia's profit increased by 93% in constant currency (87% in actual currency) with a significant turnaround in the performance of China porcine as a result of the actions taken over the last two years to strategically position the business for long-term success and improved market conditions. Research and development spending was increased 16% in constant currency (19% in actual currency) as planned strategic innovation continued to be prioritised.

Finance costs were £2.5m (2014: £2.3m) and adjusted profit before tax increased 4% in constant currency but was 4% lower in actual currency at £23.8m (2014: £24.7m). The tax rate on adjusted profits was 26.5% (2014: 27.1%), and adjusted earnings per share were up 5% in constant currency but declined 3% in actual currency to 28.8 pence (2014: 29.7 pence).

The Group monitors performance principally through these adjusted measures which exclude certain non-cash items, including the fair value movement on biological assets, which can be volatile period to period. In this period, a reduction in the bovine biological assets fair value was the result of lower semen volumes and an increase in the assumed percentage of genomic semen sales in the future. The statutory results, including these items, show a 55% reduction in profit before tax to £12.9m (2014: £28.6m) and a 45% reduction in earnings per share to 18.1 pence (2014: 33.0 pence). The Board believes that the adjusted results give a better view of underlying performance.

Cash Flow and Net Debt

The net cash flow from operating activities of £5.6m (2014: £19.6m) reflected expected seasonal working capital outflows, higher exceptional items and tax payments. The prior period was also exceptionally strong, benefiting from the sale of the Génétiporc Quebec nucleus animals. Net debt as at 31 December 2015 was £88.2m (2014: £73.2m), reflecting seasonal cash flows, continuing investment and £5.7m adverse impact of exchange movements, as our borrowings are denominated primarily in US Dollars. The balance sheet remains strong with net debt to EBITDA of 1.5 times (2014: 1.3 times).

Dividend

Based on its confidence in the Company's strategy and growth prospects, the Board has approved an interim dividend of 6.7 pence per share, an increase of 10% on last year's interim dividend of 6.1 pence. The interim dividend is payable on 30 March 2016 to those shareholders on the register at 4 March 2016.

Post Balance Sheet Events

On 11 January 2016, the Trustee of the Milk Pension Fund ('MPF') agreed with a request from the employers to change the index used for pension and deferred pension increases from RPI to CPI. The members of the scheme were informed of this change on 17 February which is effective for increases starting in 2016. The decision to change index is expected to materially reduce the MPF deficit which is in the process of being agreed as part of the triennial valuation process for the scheme effective as of March 2015, and which will be reflected in the Group's results for the year to 30 June 2016. The employers have agreed to maintain the current level of cash contributions to the fund until the remaining deficit is cleared as part of the agreement with the Trustees to change the index to CPI. The change to CPI is expected to result in a material exceptional credit to the full year results.

On 22 February 2016, Genus signed a new five year financing facility with five banks comprising a multi-currency £160m revolving credit facility with an accordion option of £50m. The terms of the new facility are improved compared with the previous facility.

Progress on Strategy

Genus continued to make good strategic progress in the half year with strong results from our product development teams and focused execution of our strategic priorities in key markets.

On 8 December 2015, Genus announced the development of the first pigs resistant to PRRSv, through a long-standing collaboration with the University of Missouri ('University'). PRRSv is the most significant and harmful pig disease faced by many farmers globally, causing animal reproductive failure, reduced growth and premature death in millions of pigs annually and, despite significant efforts over the last twenty years, there is currently no cure. The production of PRRSv resistant pigs is a significant breakthrough in combating this devastating porcine disease and a potential game-changer for the pork industry.

Using precise gene editing, pigs were bred that do not produce a specific protein necessary for the virus to spread in the animals. The early stage studies conducted by the University and published in the peer-reviewed scientific journal, Nature Biotechnology, demonstrate these PRRSv resistant pigs, when exposed to the virus, do not get sick and continue to gain weight normally. Genus will continue to develop this technology under an exclusive global licence from the University. We expect it will be at least five years until PRRSv resistant animals are available to farmers. The steps to commercialisation include amongst others: creation of the PRRSv resistant edits in PIC elite genetic lines, performance validation of the animals under commercial conditions, regulatory approvals, creation of a PRRSv resistant nucleus herd and building a dedicated supply chain capability for these lines.

In dairy product development, we made good progress in breeding bulls from our elite dairy heifer herd, with 18% (2014: 0%) of the North American Holstein bull intake sampled in our studs in the period coming from this programme. We also launched the Transition RightTM proprietary index focused on identifying genetics with lower propensity to common dairy cow health problems such as mastitis and saw an initially encouraging shift towards selection of these sires. Further indices are in development and we expect an increasing proportion of dairy genetics to come from our internal breeding.

IVB, in which Genus acquired 51% on 31 March 2015 and where there are put/call rights to the remaining shares in 2018, performed strongly with results ahead of expectations. Total embryo volumes in the period increased 32% compared with the prior year, and both revenues and profits have more than doubled. IVB opened a media production laboratory in the US in November 2015 and commenced serving its first large US customer through a newly-formed IVB US subsidiary. Together with ABS, new product lines of Direct Transfer frozen embryos were launched in Brazil in January 2016, enabling farmers anywhere in the country to access more easily superior male and female dairy and beef genetics to upgrade their herds rapidly.

In India, we completed the construction of our enlarged production bull stud with our joint venture partner, B G Chitale. The new stud was stocked in January 2016 with 83 bulls, and is now fully operational, increasing our capability to serve the large Indian dairy market.

The Genus Sexed Semen development project continued to make good progress against its plan and we continued to invest capital during the period. The legal proceedings commenced by ABS, against Inguran LLC (aka Sexing Technologies ('ST')) in Wisconsin continue, with the trial set to commence on 1 August 2016. On 11 January 2016, the US Patent Trial Appeal Board ruled on one of the inter-partes review ('IPR') proceedings seeking to invalidate an ST patent. The decision found the relevant claims of the patent invalid, upholding all of ABS's arguments. The IPR process is continuing on another of ST's patents. ABS remains committed to pursue vigorously this litigation.

Outlook

During the first half, Genus continued to make good progress towards its strategic goals. We expect continued progress in the second half against somewhat less challenging prior year comparatives. Currencies are projected to remain unfavourable for the full year though with less impact in the second half compared with the first half. For the full year, performance is anticipated to be in line with our expectations.

REVIEW OF OPERATIONS

Genus PIC

Genus PIC comprises the Group's porcine business in North America, Latin America and Europe. It also includes the technical services and supply chain functions supporting the porcine business globally.

Market

Market conditions for Genus's porcine customers were challenging in most regions. Prices in North America were around 30% lower in the second half of 2015 compared with the prior year as high productivity drove supply close to the limits of processing plant capacity. Despite the loss-making conditions, producers continued to modestly expand herds as strong balance sheets and low input costs for corn and soya provided some support. The outlook in North America based on futures prices has been relatively volatile with producer margins over the remainder of 2016 swinging into profit over the summer months before reverting to loss making later in the year.

In Europe, the porcine industry also suffered from increased production and export bans, primarily to Russia. This led to oversupply and pork prices declining around 9% compared with the last year, resulting in significantly negative producer profitability. The outlook for producers remains challenging in the short-term.

In Brazil, pig prices rose seasonally in the second half of 2015 helped by strong exports to Russia and the depreciating Real. However while prices were healthy, they were still 9% lower than the strong period in the prior year. The outlook for domestic demand is under pressure from the general economic situation in Brazil.

Performance

During the period, Genus PIC performed strongly with operating profits including joint ventures of £32.2m, up 10% in constant currency and with margins expanding by 4 percentage points. Volumes grew by 5%, with all regions contributing and strong growth in royalty volumes in Latin America and Europe. Revenue was 2% lower due to reduced upfront animal sales which have a high revenue impact, however strategically important royalty revenues rose by 16% in constant currency.

In North America, profits were up 7% in constant currency on volume growth of 3%. Performance benefited from industry growth and productivity and greater customer uptake of very high genetic merit terminal boars through Genus's premium-priced CBV Plus and CBV Max programmes.

Latin American profits improved 10% in constant currency on 5% volume increases, helped by a strong operating profit performance in Mexico which was up 34%. In Brazil, the PIC Agroceres joint venture also performed well, with a 24% increase in constant currency operating profit, but the Andean region declined due to lower upfront animal shipments.

In Europe, volumes increased 10% with a 29% increase in royalty volumes and a 13% decline in upfront volumes, in line with the strategic direction of the business. Revenue declined by 2% due to the lower upfront sales, however operating profit increased 24% in constant currency. The strategic repositioning of the PIC Europe business to focus on royalty business with larger producers, that has been underway over the last few years, is starting to now show benefits despite the tough trading environment in the European pig industry.

Overall, the PIC business achieved continuing positive momentum in the period, along with effective execution of its strategy.

Genus ABS

Genus ABS comprises the Group's dairy and beef businesses in North America, Latin America and Europe. It also includes the technical services, marketing, production and supply chain functions supporting the dairy and beef businesses globally.

Market

During the second half of 2015, milk prices remained depressed across major markets with further declines in the US and Europe. Continued production growth in key regions such as EMEA and weak import demand from markets such as Russia, China and the Middle East led to prices of key dairy commodities between 20% and 50% below their three year averages. It looks likely that prices will not improve until the end of 2016.

In Europe, the continuing trade ban imposed by Russia and weak exports to China, following previous stockpiling, was further exacerbated by a 3% supply increase as quotas were lifted and mild weather helped production. In the US, demand has remained solid and milk production growth has slowed, but higher milk imports have impacted the supply/demand equation. Operating margins for US farmers have been less negatively impacted compared with the rest of the globe due to the benefit of lower feed costs. In Brazil, the deepening economic recession has led to a further deterioration in dairy product demand and a fall in farm-gate prices of 8% in real terms.

Beef prices in the US were volatile over the 6 month period. This was caused by high carcass weights helped by low feed costs, high retail prices depressing consumer interest in beef and an import/export imbalance with imports up 30% and exports down 13%. In Brazil, cattle prices remained stable in the worsening economy helped by a combination of female retention which has reduced finished cattle going to market and higher exports with the opening of the US as an export destination. The outlook is for global beef prices to remain reasonably buoyant.

Performance

During the period, Genus ABS initiated a vigorous drive to mitigate the profit impact of the weak global dairy market and the adverse foreign exchange cross rates on semen produced in the US for global markets. These factors resulted in operating profit less non-controlling interest of £8.6m, down 23% in constant currency. The actions taken, which had specific focus on cost and efficiency in Europe and raising selling prices in Latin America, were beneficial in the period and will have a larger effect in the second half of the fiscal year. At the same time, ABS continued to invest in business transformation, introducing new offerings such as the Transition RightTM proprietary index, direct transfer frozen embryos and enhancement of its GMS customer herd genetic management software.

Revenues were unchanged in constant currency with an average price (blend) improvement of 2% and IVB revenue of £4.6 million offsetting a 7% semen volume decline and an exit from low margin US beef bull brokering.

In North America, revenues were 9% lower, predominantly from the beef brokering exit, however profits were up 1% in constant currency helped by a 3% improvement in blend prices which largely offset a 4% reduction in volumes, reduced product royalties and ongoing expense management. Beef performance was strong, with volumes up 19% over the prior year, including a continuing increased use of beef semen in dairy cows. Sorted semen volumes also performed strongly with growth of 18%.

In Europe, profits declined 22% in constant currency on a revenue decline of 9%. Volumes reduced 13%, including a 40% reduction in sales to distributors (particularly in the Middle East), without which volumes would have declined 4%. Aggregate blends improved 2% as a result of the reduction in the proportion of lower margin distributor business. The tough dairy market conditions saw farmers destocking semen tanks, increasing natural service and shifting buying patterns to lower priced semen. A strong focus on cost reduction initiatives, including reducing employee numbers and improving service margins in the period, mitigated the profit reduction and positions the business better going into the second half.

Across Latin America, profits were up 19% in constant currency despite a 4% volume decrease in tough dairy markets. However, in actual currencies, profits reduced as a result of the significant devaluations across the region. In response, ABS took the lead in increasing selling prices in key markets such as Brazil, Argentina and Mexico. By December, prices were on average 16% higher and we are continuing to raise prices as some competitors have now followed ABS's lead. Ongoing effort to manage local supply chain costs and operating expenses have also contributed favourably. Beef performed strongly with a 9% increase in volumes, primarily in Brazil, while also increasing Brazil blend prices by 18%.

IVB made a strong contribution to the half year results and exceeded expectations. Compared with the same period a year ago, prior to the ABS acquisition, embryo shipments were up 32%, both revenues and profits have more than doubled. IVB opened a media production laboratory in the US in November 2015 and commenced serving its first large US customer through a newly-formed IVB US subsidiary. IVB's previous joint venture in the US, In Vitro Origin, was unwound in the period and set up as an IVB franchise serving US beef customers.

Conditions in ABS's markets have been very challenging in the first half and are expected to remain challenging in the second half. ABS has taken actions to address these challenges in the short-term while continuing to invest in longer-term transformation.

Genus Asia

Genus Asia includes the porcine, dairy and beef businesses across the region. In addition to our businesses in China, the Philippines, India and Australia, the region also includes the Group's operations in Russia.

Market

Since the late spring of 2015, pork prices have rebounded and remained at high levels over the last six months. Prices finished the year 20% above the prior year as sustained reductions in the sow herd in China since 2014 has now led to the pork market moving from over supply to tight supply. The outlook is for supply to remain constrained in 2016 with a government focus on improving environmental control favouring growth of larger, more technified producers. Across the rest of Genus Asia's porcine markets, Russia production growth is expected to resume in the Spring with herd expansion at new modern farms, and Vietnam is also well placed with an emerging 'non-oil producing' economy helped by low feed prices.

Local factors have impacted the Asia dairy markets over the last six months in addition to the global dairy market slump. In Australia, a hot, dry spring reduced production and increased feed and water prices. Milk producers in India also suffered from dry conditions making less forage available as well as reduced milk prices. In China, previous stockpiling of inventories largely kept down imports during the period. However, with the excess backlog in inventory now largely used up, imports are expected to grow in 2016 at the expense of the local producers.

Performance

During the period, Genus Asia performed strongly with operating profits including joint ventures of £5.8m, up 93% in constant currency and with margins expanding by 11 percentage points. Porcine volumes grew by 33%, with growth in all markets. Bovine volumes increased 2% led by growth in India. Revenue was up 8%, with Asia porcine growth of 20% offsetting an Asia bovine revenue decline of 11% caused by a change in mix towards India. Profits grew in porcine by 180% buoyed by the strong market conditions in China, rebound in Russia and growth in Vietnam, while in bovine profits grew by 16% with all units outside Japan showing improvement despite challenging markets.

In China, strong product performance across key accounts helped to drive porcine volumes growth of 29% and a return to profitability. A second royalty contract was signed for an initial farm of a very large key integrated producer, and royalty payments commenced as expected from the Riverstone contract. We are pleased with the progress being seen in strategic penetration of the large integrated producers. The better market conditions also led to stronger results from the Besun joint venture and our remaining owned farms.

In other Asia porcine markets, the opening of the border in Russia to Canada, enabled boars to be imported which led to improved volume and profit performance. In the Philippines, plans were implemented to close an aged owned farm and invest in stocking two new third party sire line nucleus units which will improve the supply and reduce genetic lag. Operating results were lower in the period during this transition. Results from Vietnam and other distributor markets in Asia showed continued growth in volumes and profits.

Bovine profit performance in Asia improved despite the lower revenue as product margins and costs were successfully managed. Relationships with key distributors in China were strengthened during the period. The new stud in India constructed with our joint venture partner, Chitale, was completed and stocked with 83 bulls in January 2016. This lays the foundation for further growth in the important Indian dairy market. We also increased technical and key account resources for Asia bovine markets to enable a focus on emerging large scale dairy producers in the region.

The overall performance in Asia is benefiting from the continued strategic investments made and focus on tailoring our business model for each of these markets.

Research and Development

Total research and development spend for the half year was increased as planned by 19% to £15.7m (up 16% in constant currency), with increases across all categories as Genus pursued key strategic initiatives to further strengthen its proprietary differentiated offerings. We expect to continue to increase investment in research and development.

Research expenditure increased 29% in the period due to expenses associated with the PRRSv resistant pigs project and to increased spending on intellectual property creation and protection. These costs will continue to grow as we pursue the next stages of development of PRRSv resistant pigs. We also continued to invest in Genus Sexed Semen to ensure readiness for commercialisation. Genus continues to be at the forefront of research in the industry in developing genomic selection and gene editing to differentiate further both porcine and bovine product offerings and to drive genetic improvement even faster.

Within porcine product development, the execution of single-step genomic evaluation on all pure line populations, retail products and all traits of economic importance, is continuing to exceed the aim of a 35% increase in the rate of genetic gain compared with the period before its implementation. Growth in spending was unfavourably impacted by lower slaughter prices for by-product pigs from the nucleus herds and by the receipt in the prior year of a back payment under a Canadian government agricultural support programme.

Within bovine product development, our elite heifer programme produced 18% of our North American Holstein bull intake in the period (2014: 0%) with encouraging quality of animals focused on economically important traits. We continue to grow our genomic database and expertise in Real World Data and launched Transition RightTM, the first proprietary index focused on cow health. There was also continued investment in building a beef nucleus herd to develop unique customer products to enable value capture in the beef supply chain through genetic improvement and differentiation. Costs were 7% higher in constant currency as we invested in increased resources for genomic prediction in bovine.

Genus Products

Genus manages its global operations through the three businesses, Genus PIC, Genus ABS and Genus Asia, but also monitors product performance globally, after allocating product development costs specific to each species.

Porcine revenue grew 1% overall in constant currency on volume growth of 9% for the Group as the shift towards royalty based business tends to reduce upfront revenues. Profits grew strongly by 17% in constant currency with all regions improving and a strong turnaround in China. Market conditions were generally challenging for Genus's customers with the exception of China.

In bovine, volumes were 5% lower overall in tough dairy markets with Europe particularly challenged. Revenue, including a positive contribution from IVB, declined 1% in constant currency. Profits were 39% lower in constant currency due to lower volumes, adverse currency cross rates and increased bovine product development expenditure. Actions were taken in the period to reduce cost run rates and increase selling prices in key markets.

PRINCIPAL RISKS AND UNCERTAINTIES

Our approach to risk management is to identify, evaluate and prioritise risks and uncertainties and actively manage actions to mitigate them. The Genus plc Annual Report 2015 (a copy of which is available on the Genus plc website at www.genusplc.com) sets out on pages 18-19 a number of risks and uncertainties that might impact upon the performance of the Group. There has been no material change to the principal risks that might affect the performance of the Group in the current financial year.

GENUS PLC

CONDENSED CONSOLIDATED INCOME STATEMENT

For the six months ended 31 December 2015

GENUS PLC

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 31 December 2015

GENUS PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 31 December 2015

GENUS PLC

CONDENSED CONSOLIDATED BALANCE SHEET

As at 31 December 2015

GENUS PLC

GROUP STATEMENT OF CASH FLOWS

For the six months ended 31 December 2015