The Executive Board has made an assessment of the effectiveness of the design and operation of the internal control and risk management systems.

On the basis of this report and in accordance with best practice 1.4.3 of the Dutch corporate governance code of December 2016, and Article 5:25c of the Financial Supervision Act, the aforementioned assessment, the current state of affairs and to the best of its knowledge and belief, the Executive Board declares that the internal risk management and control systems were effective as at the end of the 2018 financial year and that:

• these systems provide a reasonable degree of assurance that the Executive Board is informed, on time, of the degree to which the Company’s strategic, operational and financial objectives are being achieved;

• the report gives sufficient insight into any shortcomings in the operation of the internal risk management and control systems;

• the aforementioned systems provide a reasonable degree of assurance that the financial reporting does not contain any material misstatement;

• drawing up the financial reporting on a going concern basis is justified based on the current state of affairs; and

• the report states any material risks and uncertainties that are relevant as regards the expectation of continuity of the company for a period of twelve months after drawing up the report.

It should be noted that the above does not imply that these systems and procedures provide absolute assurance as to the realization of operational and strategic business objectives, or that they can prevent all misstatements, inaccuracies, errors, fraud and non-compliances with legislation, rules and regulations. Nor can they provide certainty that we will achieve our objectives. In the risk management chapter, an explanation is provided on the internal risk management and control systems such as are implemented within the Company and its affiliated enterprise.

In view of the above the Executive Board declares that to the best of its knowledge:

• the annual accounts give a true and fair view of the assets, liabilities, financial position and the results of the company and the enterprises included in their consolidation; and

• the management report gives a true and fair view of the situation as at 31 December 2018 and of the state of affairs of the company and its affiliated enterprise in the 2018 financial year, the details of which are included in its annual accounts, and that the management report describes the main risks faced by the company.

Lochem, 12 March 2019

Executive Board ForFarmers N.V.

Yoram Knoop, CEO
Arnout Traas, CFO
Jan Potijk, COO