The State Registered Nurses' and Medical Secretaries Pension Fund

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1 Annual Report 2016 The State Registered Nurses' and Medical Secretaries Pension Fund Approved at the Annual General Meeting of the Pension Fund on 71 April 2017 Chairman of the Meeting Tuborg Boulevard 3, DK-7900 Hcllorup - Central Business Reg. No lb 11

2 The State Registered Nurses' and Medical Secretaries' Pension Fund Contents Management Review 2 Management Statement 10 The independent auditor's report 11 Incomo statement 13 Balanco Sheet 14 Capital 16 Notes 17 Tubor!) Boulevard 3, DK 2900 Hellerup Ccntrol Business Reg. rs'o

3 2 Annual Report 2016 Management Review The Pension Fund carries out pension fund activities. The Pension Fund Eicccpts registered nurses, radiog raphers and medical secretaries as members; they are entitled and obliged to membership of the Pension Fund through their collcctive labour market agreement or contract of employment. Furthermore, as from 2016, persons who do not have an employer pension schemc, but are members of trade union organisations attached to the Pension Fund, are also admitted as members. The Pension Fund has organised its activities in the form of investment activities in affiliated companies. However, the results obtained by the Pension Fund Group as a whole decide a member's pension entitle ment. The key figures in this report are thus given at Group level, unless otherwise specified. Profit for the year The Group's profit in 2016 amounted to DKK 1,370.3 mill. The Board of Directors proposes to carry the profit forward to next year. Members' contributions and pension payments are increasing, which had also been expected. The Pension Fund continues to grow, since members' contributions are 1.4 times higher than pension payments. The total return before the pension return tax on the Pension Fund's assets was 9.1%. The profit for the year is deemed to be satisfactory and the Pension Fund remains well-consolidated. The year under review The economy The Pension Fund expected 2015 to be characterised by moderately increasing growth in both the US and Europe. Interest rates were expected to go up because of increasing energy prices, thus leading to higher inflation was charcterised by two major events. In June, the Brits decided that the UK will leave the EU follow ing negotiations of terms; in November, Donald Trump was elcctcd President of the US. Until now, none of these events have had noticeable financial consequences and in the US, contrary to expectations, stock priccs went up after Trump was elected. Apart from these factors, the year under review presented moderate growth and falling unemployment in both the US and Europe. Inflation went up, primarily as a result of increasing raw material prices. Increas ing raw material prices also contributed towards stabilising the cconornic development of emerging market countries. Both the Fed in the US and the European Central Rank continued their lenient monetary policy. In 2016, short-term interest rates were at around zero. At the end of 2016, however, the Fed increased its interest rates and the European Central Bank Is reducing its purchase of bonds from March 201,7, Both of these developments are to be seen in the light of increasing inflation and moderate growth. The global stock markets rose by 8.7% in All in all, risk-prone assets generated good returns In 2016, while interest developments remained largely unchanged, Account interest rate The Pension Fund's account interest rate In 2016 was set at 4.8% before tax. The account interest rate has been increased to 5.0% before tax In 2017 and is expected to be minimum 5% in the coming five years. Private savings In 2016, It bccarnc possible for members to place private savings with the Pension Fund. Such savings are a flexible supplement to members' employer pension schemes and offer payment-guaranteed savings in the form of a lump -sum retirement amount, an instalment pension or a life-long retirement pension. In August 2016, some of the members who had private savings with PKA+ Pension moved these savings to the Pension Fund. In 2016, it also became possible for persons who have no employer pension scheme, but are members of trade unions affiliated with the Pension Fund to establish a pension scheme with I he Pension Fund. The State Registered Nurses' and Medical Secretaries' Pension Fund

4 Annual Report Pension Fund Group The enterprises affiliated with (100% owned by) the Pension Fund as at 31 December 2016 appear from the Group chart. The Pension Fund's property companies, limited companies These companies have the purpose of owning and running real properly so as to obtain a long-term return on the Invested capital. The companies' result for 2016 was a profit of DKK mill., which amount was Influenced by apprecia tion of the value of the properties concerned. The State Registered Nurses' and Medical Sccrctarics' property company pic participates In partnerships with other PKA-afflllated property companies. These partnerships do not publish independent annual re ports, as specified In the Danish Financial Statements Act. The partnerships are integrated on a pro rata basis in the financial statements of the partners. Anhott Offshore Wind Farm The company's activity is ownership of 10.3% of Anholt Havvindm0llcpark 1/S. The company's result for 2016 was a profit of DKK X?8.8 mill., which is in line with expectations. OWP Butendiek The activity In the two OWP Butendiek K/S companies is ownership of a total of 11.1% of a German off shore wind farm, OWP Butendiek GmbH & Co. KG. These companies are expccted to be sold before the end of the first quarter of A sales agreement has been signed and awaits the approval of the compe tition authorities. The value of the companies has been recognised at the expected sales price. The companies' result for 2016 was a profit of DKK mill. Code Wind il The company's activity is ownership of 24.8% of Gode Wind II Joint HoldCo P/S, which together with other Investors owns 50% of OpCo German OHG, a German offshore wind farm. I he company's result for 2016 was a profit of DKK mill, establishment of the wind farm was com pleted in 2016, Thn State Registered Nurses' and Medical Becretariei;' Pension Fund

5 4 Annual Report 2016 PKA - State Registered Nurses and Medical Secretar/es OWP Butendiek Komplementar ApS In connection with the expected sale of the two OWP Butendiek K/S companies, the former PKA - State Registered Nurses and Medical Secretaries GP ApS was renamed PKA - State Registered Nurses and Med ical Secretaries OWP Butendiek Komplementar ApS, functioning only as the general partner (komplemen tar) for the two limited partnerships OWP Butentiek K/S. The company forms pait of the expected trans action. The result for 2016 was a profit of DKK 0.1 mill. PKA - State Registered Nurses and Medical Secretaries GP ApS This company was established in connection with the segregation of the two OWP Butendiek K/S compa nies and functions as the general partner for the Pension Fund's other Investments via limited partner ships in the offshore wind farms. The result for 20J.6 was DKK 0.0 mill. Investments and social responsibility The Pension Fund's guidelines for responsible investments are in line with the principles of the UN Global Compact. As an addition to the UN Global Compact, the Pension Fund has adopted a policy of not investing in controversial weapons, coalmines or tobacco. The Board's report to the General Meeting explains the development of the work on these guidelines and active ownership. The report is available on the Pension Fund's website. Active ownership is exercised by ongoing dialogue with the companies In which Investments have been made and by ensuring that they comply with the Pension Fund's guidelines. If a company does not live up to the guidelines, the Pension Fund enters into a constructive dialogue with the company to bring such infringement to an end. If the company continued to infringe the guidelines and there arc no prospects of lasting improvements on the pari of the company, the company concerned will be excluded from the Pension Fund's investment uni verse. The Pension Fund publishes an updated list of excluded companies on its website. The Pension Fund's active ownership is pursued in cooperation with an international screening and com mitment partner, which gives the Pension Fund extra clout when enforcing Its guidelines. Further to the Pension Fund's guidelines, the partner also works to promote best practice through long-term dialogue with the companies in which the Pension Fund has Invested. The Pension Fund's website contains more detailed statements regarding compliance with the guidelines and regarding activc ownership. In 2015, the UN adopted seventeen sustainability goals intended to fight poverty and ensure a sustainable development towards The Pension Fund focuscs on ensuring that its investments and active owner ship contribute In particular to fulfilling six of the goals: clean drinking water (goal 6), sustainable energy (goal 7), decent jobs and economic growth (goal 8), industry, innovation and infrastructure (goal 9), sus tainable cities and communities (goal 11), as well as climate action (goal 13). The Pension Fund carries out ongoing review to determine which sustainability goals should be supported by the Pension Fund's invest ments. In 2016, the Pension Fund together with the other pension funds in the PKA cooperation invested approx. DKK 3 billion in Burbo Bank Extension, a British offshore wind farm project designed to generate electricity for over 230,000 households. In addition, the pension funds are Investing DKK 1.3 billion in a biomass power plant, which fires sustainable biomass. This power plant will generate electricity for approx. 600,000 households. On the basis of financial and climate-related considerations, the Pension Fund took its first step in 2015 towards reducing its exposure i C02-intcnsivc companies. These are typically mining, utility and energy companies. The Pension Fund enters into a dialogue with these companies with the purpose of making them reduce their coal business and convert to more climatc-friendly sources of energy. The companies have to submit a business strategy, which phases out their coal activities, while taking account of regula tions in the energy sector and the increased political focus on the environment. If a company is not able to do so, the Pension Fund will sell its shares in the company and exclude it. So far, 40 companies have been excluded by the Pension Fund. The Pension Fund's ambition is not to sell Its shares, but to influence the companies to make them go in a sustainable direction. Active ownership has proven its worth and moved the companies conccrned in a sustainable direction. Until now, ten companies have prepared strategies to reduce their coal activities, so the Pension Fund has kept its shares in these companies. In 2016, the strategy from the coal sector was applied also to the oil scctor, where the Pension Fund ex cluded two companies; more than 50 per cent of the business of these two companies consists of the ex traction of oil sand, 'I he Pension Fund expects to exclude additional companies in the oil sector in 2017, The state Registered Nurses' and Medical Secretaries' Pension Fund

6 Annual Report 2016 Iti 2016, the Pension Fund launched a new climate strategy for its Danish property portfolio, based on fi nancial and climate-relatcd consideralions. The strategy is intended to contribute towards green conver sion and protect the value of the property as well as the return generated for the Pension Fund's members Up to 2020, the Pension Fund will reduce its average C02 emission by 40 per cent per square metre. This means that the property portfolio will move from an average energy mark C to an energy mark B in Furthermore, the Pension Fund received a sustainability certificate for two properties in One officc property took part in a pilot trial under the DGBN: scheme, which intends to improve the sustainability of existing properties. The property received a gold certificate, which is the second-highest achievable mark. At the same time, the Health House in the town of Vejle received a gold certificate under the LEED scheme2. In addition, the Pension Fund built Denmark's first rental properties with the so-called "swan" label, which is the Nordic Eco-label mark. This means that all materials must live up to strict require ments concerning substances which could be hazardous to the environment or to health. The property has low energy consumption, a healthy indoor climate and a focus on sustainability throughout the ser vice life of the building - from erection and operation to the recycling of materials. The Pension Fund will continue its work to ensure that new properties are cither certified at the high end of the scale or receive a "swan" label. In 2016, the Pension Fund together with the other pension funds in the PKA cooperation invested DKK 200 mill, in a new Danish farm fund, which is intended to Improve production, distribution and sale of food items in Asia, Africa and Latin America. The fund invests in projects in which the technology and knowledge from Danish farm and food enterprises can enhance the efficiency and productivity of food items in developing countries to meet the needs of growing populations. The fund contributes towards creating jobs and growth in developing countries, and because of the Pension Fund's active ownership, work is carried out on an ongoing basis to ensure thai job creation occurs on decent working conditions and at decent wages. Return The total return in 2016 was 9.1%, corresponding to DKK 9,196.1 mill. All asset classes generated a positive return in Shares, infrastructure and mortgage bonds gener ated double-digit returns, while the return on properties. Investment grade bonds and the absolute return were lower, but still very satisfactory. Cooperation on investments and cash flow The Pension Fund's assets are managed by PKA A/S and, based on an agreement, the Pension Fund coop erates with other pension funds administered by PKA A/5 on effective and rational management of its in vestments and cash flow, so as to obtain the highest possible return and the lowest possible costs. Derivative financial instruments The Pension Fund makes wide use of derivate financial instruments for investment and hedging purposes. Administration The Pension Fund and the affiliated companies are administered by PKA A/S. PKA A/S has outsourced some of its administrative tasks to Forca A/S and others. The Management and significant fixed-salary risk-takers are partially employed and paid by the Pension Fund. The Appointed Actuary is employed, but not paid, by the Pension Fund. Progress report on compliance with the goal regarding the under rep resented gender at man agement level The Financial Services Act requires that financial companies must set a target for gender representation on the board of directors and prepare a policy on equal representation in the management if one gender Is underrepresented on the Board. Such underrepresentation exists If either gender has less than 40% of the Board members. The rules of setting a target for gender representation on the board of directors are based on the board members elected by the general meeting; however, in the Pension Fund, the majority of board members 1 German suslainabilily certificatiou scheme adapted lo Danish conditions; an assessmenl is made oflhc cnvironmenlal, financial social and functional qualities of a properly, clc. 2 American suslainabilily certificatiou scheme adapted lo Danish conditions; an assessment is made of the environmen tal financial social and functional qualities of a property, etc. The State Keg I stored Nurses' and Medical becreuirles' Pension Fund

7 Annual Report 2016 are appointed by social partners concluding labour market agreements. That is why it will not be correct to adopt a target for the board members elected by the general meeting; consequently, the board has adopt ed a target for the gender composition of the board of directors as a whole. The board has decided that the target for men on the board of directors is to be at least 25 %, while the target for women on the board is to be at least 40 %. At the end of the year under review, the split on the board of directors was ^5 % men and 64 % women on the board. The targets have thus been met. No policy has been adopted regarding equal representation in the management layers below the executive management of the Pension Fund. The Pension Fund is fully administered by PKA A/S. In 2Q1G, PKA A/S had a gender distribution in the management layers below the executive management of 57% men and 43% women; against this background, no policy for equal gender representation in the other management layers of PKA A/S has been prepared. Audit Committee In accordance with legislation, the Pension Fund must establish an Audit Committee. The chairman must be independent and at least one member must have qualifications in accounting or auditing. The chairman of the Audit Committee is Birgitte Tausen, who meets the requirements both for Independ ence and for qualifications in accounting or auditing. The other members of the Audit Committee are Bent Hansen and Crete Christensen. Risks and solvency associated with the Pension Fund's business model Seen in a risk perspective, the Pension Fund's business model is simple, since It rests on a labourmarket-agreement-based, collective, solidarity-based labour market pension scheme. In which outsourc Ing is used to a considerable extent. The most significant risks are market risks, insurance risks and out sourcing. Market risks The Pension Fund offers an average interest rate product. New members are admitted at a base interest rate of 0 per cent, just as the Pension Fund still has a number of members with interest rates varying from 1.75 to ^1.25 per cent. This involves interest risk exposure, which is hedged on an ongoing basis. The Pension Fund wishes to deliver robust pensions to its members. This Is ensured through a long-term investment strategy, whose aim Is to achieve high, stable returns in a responsible way; as a minimum, these Investments must be able to meet the return requirement from the expected pensions. Long-term low returns on investment assets or major financial losses constitute a risk when it comes to delivering robust pensions. This exposure is the Pension Fund's market risk. This risk Is mitigated by spreading in vestments to cover a wide range of different asset classes. Investments are made collectively for members. Any losses on investments must also be covered collec tively; however, the Pension Fund's share of bonus potentials ensures that any losses on the financial markets are not charged to members' deposits In individual years, but that instead members receive the account interest announced at any given time on their deposits. Risk-taking Is a precondition for achieving an adequate return that will guarantee robust pensions. In this connection, the Board of Directors has a major task In deciding on the Pension Fund's risk appetite in the form of a chosen investment strategy. The Pension Fund's risk appetite is decided on the basis of two goals. The Pension Fund protects the members' pensions (PBG) and the Pension Fund complies with all applicable solvency rules. In Its risk management policy, the Board of Directors decides the safety levels for the PBG limits which give the risk-related framework for the Pension Fund in relation to the expected pensions. Furthermore, in special cases, the solvency cover may provide the framework for the risk-taking of the Pension Fund. The Pension Fund has a capital plan and an emergency plan based on the risk management model (PBG) and the solvency capital requirement {SCPv). In the capital plan, the financial situation in the Pension Fund's strategic planning period is deemed to be reassuring, Insurance risks The Pension Fund provides life-long pensions, so In risk terms the Pension Fund is exposed to changes in life expectancy among its members. The Sidle Registered Nurses' and Medical Secretarieii' Pension Fund

8 Annual Report The Pension hund is a solidarity-based scheme with disablement cover without any required health Infor mation upon admission, as long as the member is in one of the job groups that arc comprised. In risk terms, the Pension Fund is exposed to the development in the number of anticipatory pension recipients among its members. The Pension Fund monitors developments In its Insurance risks closely and makes provisions in accord ance with the life expectancy benchmark laid down by the Danish hsa. Outsourcing The Pension Fund uses outsourcing to a considerable extent. Direct outsourcing goes to PKA A/S, which In turn has outsourced much of operations on to Forca A/S. The admlnislratlon of real property Invest ments has been outsourccd to DEAS A/S. Risk is managed in the form of inspections and service delivery agreements. Solvency II The Solvency II rules came into force on 1 January ; in this connection, new accounting rules have been issued, which ensure a high degree of consistency between calculations for solvency purposes and calculations for accounting purposes. One of the effects of the transition to the new accounting rules is that member behaviour may be included In superannuation provisions and that a discounting graph calculated by the European supervisory authority ElOPA Is to be used. Relating to this, the Pension Fund has applied for permission to use an addendum to the graph, the so-called Volatility Adjustment addendum and has received such permission. Capital Equity increased In 2016 by DKK 1,370.3 mill, to DKK 20,679.6 mill. The capital base is now DKK 21,493.0 mill, against DKK 19,9/3.5 mill, in The SCR solvency requirement has been calculated using the standard model. As at 1 January 2016, SCR amounted to DKK 4,711.4 mill,, while the amount at the end of 2016 was DKK 4,744.2 mill. New official accounting order The Danish FSA has issued a new accounting order applicable from 20:1.6. The changes introduced will only influence the Pension Fund to a limited extent. Bonus policy The Pension Fund bonus policy Is framework-based and seeks to allow a return that will ensure the highest possible maintenance of the purchasing power of the pensions. This does not mean that a decision has been made to adjust pensions each year to protect purchasing power. The Intention is to protect pension purchasing power in the long run. The bonus policy is also based on the assumption that maintenance of purchasing power requires a rea sonable level of the pension to be adjusted. Pensions primarily based on a high level of interest rates and/or assumptions of shorter life expectancy will not ncccssarily require protection of purchasing power, given the present Interest conditions and current assumptions on life expectancy. The Pension Fund equity Is owned by the members. The principles for distribution of the year's profit be tween pension provisions and equity are thus not nearly as significant in a pension fund as in a life assur ance enterprise. The full result obtained by a pension fund always accrues to Its members. Superannuation provisions Superannuation provisions Increased in 2016 by DKK 7,388.0 mill, to DKK 88,677.3 mill. Uncertainty of recognition and measurement When the Annual Report is prepared, a number of estimates and assessments of future aspects aremade; these have an influence on the accounting value of assets and commitments. The most significant areas concern pension obligations and the valuation of unlisted, alternative Invest ments and properties. Management finds that the assumptions made arc responsible, but associated with uncertainty. Sensitivi ty Informalion regarding a number of assumptions made can be seen In note 18. Expectations regarding the future The State Registered Nurses' and Medical Secrptaries' Pension Fund

9 Annual Report 2016 In both tlic US and Europe, growth and inflation are expected to grow moderately, while unemployment will decline. Rising inflation will result in minor tightening initiatives in monetary policy In both the US and Europe. Politically, however, a number of events may give rise to unrest on the financial markets. Firstly, it is still uncertain what the policy of the new American administration is going to be. This Is true in regard to foreign policy, trade policy and economic policy alike. If, for example, trade sanctions against: Mexico and China are implemented, global growth will decline. A major financial policy expansion will prob ably lead to increased inflation, resulting in additional interest rate increases in addition to those already cxpccted in the American bond markets. The biggest impact will be on short-term Interest rates, while long-term interest rates will be less impacted. Secondly, elections will be held in France, the Netherlands and Germany. At first, the election in France In the spring attracts most attention, focusing on the possibility of the right-wing party Front National winning the presidential election. In ail the mentioned countries, however, more nationalistic parties may increase in size; in addition to Brexit, this may challenge the coherence of the EU. The Pension Fund is robust and well-equipped when it comes to tackling these challenges. Events after the Balance Sheet date No events after the Balance Sheet date have any significant influence on the financial standing of the Pen sion Fund or the Group. The Stole Registered Nurses' and Medical secretaries' Pension Fund

10 Annual Report Other management/board positions The members of Management hold the following other management/board positions: Managing Director Peter Damgaard Jensen Managing Director of PKA A/S Managing Director of three pension funds administered by PKA Managing Director of the pension funds' limited real property companies Board Chairman of PKA+ Pension Forsikringsseiskab A/S Board Chairman of A/S Kj0benhavns Ejendomsselskab Board Chairman of I'orstcedernes Fjendomsaktleselskab Board Chairman of PKA AIP A/S Board Chairman of Poppelstykket 12 A/S Board Chairman of PKA Skejby Komplementar ApS Board Chairman of PKA Skejby P/S Vice-chairman of Forca A/S Board member of Forsikrlngsorganisalionernes Fa?llessekretarlat r.m.ba The members of the Board of Directors hold the following other management/board positions: Chairman of the Board Bent Hansen Board Chairman of Pensionskassernes Administration A/S Board member of the Fund behind the display of sculptures at the Bay of Aarhus Board member of the fund Aarhus 2017 Board member of Grenaa Havn A/S Vice-chairman of the Board Grete Christensen Vice-chairman of Pensionskassernes Administration A/S Board Chairman of Forbrugsforcningcn af 1886 Board Chairman of SygepIejerskernes Fritidsboliger A/S Board Chairman of A/S Knudemosen Vice-chairrnanof Hotel Koldingfjord A/S Board member of Lan og Spar Bank A/S Board member Mogens Eduard Jespersen Board member Pensionskassernes Administration A/S Management of MJ Autoservice Holding ApS Board member Cemtec Fbnden Board member Dorte Steenberg Board member of Sygeplejerskernes Fritidsboliger A/S Board member Jette Sogaard Nissen Board member of Pensionskassernes Administration A/S Other members of the Board of Directors have no further other management/board positions. The State Registered Nurses' and Medical SecreUirles' Pension Fund

11 10 Annual Report 2016 Management Statement We have today presented the Annual Report for The State Registered Nurses' and Medical Secretaries' Pension Fund for the 1 January - 31 December 2G1G financial year. The Annual Report is submitted in accordancc with the Danish Financial Business Act. We find that the consolidated accounts and financial statements give a true and fair view of the Group's and the Pension Fund's assets, liabilities and financial position as at 31 December 2016, as well as the result of the Group's and the Pension Fund's activities in the I January - 31 December 2016 financial year. We consider that the Management Review gives a true and fair view of developments in the Group's and the Pension Fund's activities and financial standing, the result for the year and the Group's and Pension Fund's financial position, as well as describing significant risks and uncertainty factors faced by the Group and the Pension Fund. We recommend that the Annual Report be adopted by the General Meeting. Hellerup, 23 March 2017 Management: Peter Damgaard Jensen Managing Director Hellerup, 23 March 2017 Board of Directors: Bent Hansen Chairman Grete Christensen Vice-chairman Henrik Thorup Gamst Mogens Eduard Jespersen Nathali Schaap Degn Dorte Steenberg Jacob Paludan Truelsen Jette Swgaard Nissen Birgitte Wildt-Andersen Lone Kjcergaard Rirgilte Olsen Tausen The State Regliitered Nurses' and Medical Secretaries' Pension Fund

12 Annual Report The independent auditor's report To the members of the Slate Registered Nurses' and Medical Secretaries' Pension Fund Opinion We have audited the Consolidated Accounts and hinancial Statements of the State Registered Nurses' and Medical Secretaries' Pension Fund for the 1 January - 31 December 2016 financial year, comprising In come Statement and Total Income Statement, Balance Sheet, Equity Statement and Notes, including Ac counting Policies, for the Group as well as the Pension Fund. The Consolidated Accounts and Financial Statements are prepared in accordance with the Danish Financial Business Act. In our opinion, the Consolidated Accounts and Financial Statements give a fair view of the Group's and the Pension Fund's assets, liabilities and financial position as at 31 December 2016, as well as of the result of the Group's and Pension Fund's activities and the Group's cash flows in the 1 January - 31 December 2016 financial year In accordance with the Danish Financial Business Act. Basis for our opinion We have carried out our audit in accordance with international auditing standards and additional require ments in Denmark. Our responsibility in accordance with these standards and requirements is described in more detail in the audit report section entitled The auditor's responsibility for the audit of the Consolidated Accounts and Financial Statements'. We are independent of the Group In accordance with international ethical rules for auditors (lesba's Ethical Rules) and comply with the additional requirements made in Denmark, Just as we have met our ethical obligations as specified in these rules and requirements. In our opinion, the audit proof we have obtained is adequate and suitable as a basis for our opinion. Management's responsibility for the Consolidated Accounts and Financial Statements Management is responsible for preparing and presenting Consolidated Accounts and Financial Statements that give a true and fair view in accordance with the Danish Financial Business Act. Furthermore, Man agement is responsible for the internal controls which Management deems to be necessary for the prepa ration of Consolidated Accounts and Financial Statements without material misstatements regardless of whether such misstatements are the result of fraud or error. When preparing the Consolidated Accounts and Financial Statements, Management is responsible for assessing the ability of the Group and the Pension Fund to continue operations, just as Management is obliged to give information about relevant matters in relation to continued operation and to prepare the Consolidated Accounts and Financial Statements on the basis of a going concern principle of accounting, unless Management intends either to liquidate the Pension Fund or discontinue operations, or has no other realistic alternative thereto. The auditor's responsibility for the audit of the Consolidated Accounts and Financial Statements Our aim is to achieve a high degree of certainty that the Consolidated Accounts and Financial Statements as a whole are free of material misstatements, regardless of whether such misstatements are the result of fraud or error, and to prepare an audit report with our opinion. A high degree of certainty means just that, but involves no guarantee that an audit carried out in accordance with international auditing standards and the additional requirements in Denmark will always discover material misstatements if such exist. Mis statements may arise as a result of fraud or error and may be considered significant if it is reasonably to be expected that, individually or jointly, they will have an influence on financial decisions made by users of the accounts on the basis of the Consolidated Accounts and the Financial Statements. As part of an audit carried out in accordance with international audit standards and the additional require ments In Denmark, we make professional assessments and maintain a professional scepticism during our audit. In addition: We identify and assess the risk of material misstatements in the Consolidated Accounts and Financial Statements, regardless of whether such misstatements are the result of fraud or error, and we plan and carry out audit action as a reaction to these risks and achieve audit proof which is adequate and suitable to form the basis of our opinion. The risk of not discovering material misstatements caused by fraud is higher than if material misstatements are the result of error, since fraud may come from con spiracy, forgery, deliberate omissions, misguidance or disregard for internal controls. We obtain an understanding of the internal controls that are relevant to the audit, so as to be able to carry out audit action, which is suitable in the circumstanccs, but not in order to be able to offer an opinion about the efficiency or effectiveness of the Group's and the company's internal controls. We decide whether the accounting policies applied by Management are suitable, and whether the ac counting estimates and associated information prepared by Management are reasonable. We conclude whether Management's preparation of the Consolidated Accounts and Financial State ments on the basis of a going concern accounting principle is suitable and whether, on the basis of the The SLciLe Registered Nurses' and Medical Secretaries' Pension Fund

13 IP- Annual Report 2016 audit proof obtaingd, there is any significant unceitainty associated with events or matters which may create substantial doubts about the Group's and the Pension Fund's ability to continue operations. If we find thai significant uncertainty exists, our audit report must give information about this in the Consolidated Accounts or Financial Statements or, if such information is not adequate, we must modify our opinion. Our opinions are based on the audit proof obtained up to the date of our audit report. However, future events or matter may mean that the Group and Pension Fund will no longer be able to continue operations. We assess the overall presentation, structure and contents of the Consolidated Accounts and Financial Statements, including the Notes, and whether the Consolidated Accounts and Financial Statements re flect the underlying transactions and events in such a way that a fair view is given thereof. We obtain adequate, suitable audit proof in regard to the financial information in the companies or the business activities of the Group, so as to be able to give an opinion about the Consolidated Accounts. We are responsible for managing, supervising and performing the Group audit, We have sole responsi bility for our audit opinion. We communicate with the executive management, for example about the planned scope and timing of the audit, as well as about significant observations during our audit, including any significant deficiencies in regard to internal controls which we may identify during our audit. We also make a statement to the executive management specifying that we have complied with relevant ethical requirements concerning Independence and we inform the executive management about all rela tions and other matters which may reasonably be thought to influence our independence and, where rele vant, we inform about any precautions taken. Statement regarding the Management Review Management is responsible for the Management Review. Our opinion about the Consolidated Accounts and Financial Statements does not cover the Management Review and we express no opinion with any certainty on the Management Review. When we carry out our audit of the Consolidated Accounts and Financial Statements, It is our responsibility to read the Management Review and, in this connection, to consider whether the Management Review is significantly inconsistent with the Consolidated Accounts or Financial Statements or seems to contain ma terial misstatements given the knowledge we have obtained In our audit or in any other way. Furthermore, our responsibility Includes considering whether the Management Review contains the re quired information as specified in the Danish Financial Business Act. Based on our work, we find that the Management Review is in accordance with the Consolidated Accounts and Financial Statements and has been prepared In accordance with the requirements of the Danish Finan cial Business Act. We have found no material misstatements In the Management Review. The solvency cover key figure Management is responsible for the solvency cover key figure specified In note 2 of the Consolidated Ac counts and Financial Statements. As stated in note the solvency cover key figure Is exempted from audit requirements. Consequently, our opinion on the Consolidated Accounts and Financial Statements does not cover the solvency cover key figure and we express no kind of opinion with any certainty on this key figure. In connection with our audit of the Consolidated Accounts and Financial Statements, It Is our responsibil ity to consider whether the solvency cover key figure is significantly inconsistent with the Consolidated Accounts and Financial Statements, or seems to contain material misstatements given the knowledge we have obtained in our audit or in any other way.. If, on this basis, we find that the solvency cover key figure contains material misstatements, we must report this. We have nothing to report in this connection. Copenhagen, 23 March 2017 Deloitte State-authorised Public Accountants, Partnership Central Business Reg. No Lars Kronow Jacques Peronard State-authorised Public Accountant State-authorised Public Accountant The State Registered Nurses' and Mndical SecreUirles' Pension Fund

14 Annual Report Income statement All amounts in DKK mill. Pension Fund Consolidated Note Gross number contributions Reinsurance premiums 3 3, , , , Total member contributions, own account 3, , , ,296.2 Income from affiliated companies Income from associated companies Income from investment properties Interest Income and dividend, etc. Price adjustments Interest costs Adrrmistration costs in connection with investment activities , , , , , , , , , , Total return on Investment 9, , , ,812.4 Pension return tax -1, , Pension payments -2, , , ,436.7 Total pension payments, own account -2, , , ,436.7 Change to pension provisions, own acc. 5-7, , , ,010.2 Change to profit margin Change to surplus capital Administration costs Pension-related operating costs, own acc. 6-50, Transferred return on Investment -1, , TECHNICAL PENSION RESULT Investment return on equity 1, , PROFIT BEFORE TAX 1, , Pension return tax, equity PROFIT FOR THE YEAR 1, , Capital rrovements (reassessment) in associated companies Divided into insurance and investment contracts Pension return tax on other total income OTHER TOTAL INCOME TOTAL INCOME FOR THE YEAR 1, , Realised profit 7 Profit for the year is transferred to equity The State Rngistered Nurses' and Medical Secretaries' Pension Fund

15 14 Annual Report 2016 Balance Sheet ASSETS All amounts in DKK trill. Note Pension Fund Consolidated Investment properties 8 2, , , ,018.8 Capital Investment in affiliated conpanics 15 Capital investment in associated companie 15 Loans to associated coirpanies 7, , , , , , , , ,306.1 Total investment in affiliated and associated companies 56, , , ,596.9 Capital investment Mutual trust investtrent Bonds Secured loans Other loans Deposits with credit institutes Denvative financial instruments 14, , , , , , , , , , , , , , , , , , , , , , , ,239.9 Total other financial investment assets 9 65, , , ,771.1 TOTAL INVESTMENT ASSETS 125, , , ,386.9 Receivables related to direct pension business with pension savers Receivables from affiliated companies Receivables from associated companies Other receivables TOTAL RECEIVABLES 1, , Deferred tax assets Deferred corporate tax assets OTHER ASSETS, TOTAL Interest receivable Other prepayments and accruals TOTAL PREPAYMENTS AND ACCRUALS TOTAL ASSETS 126, , , ,105.4 Guarantees 10 Contingent asset 11 "1 he State Roqistered Nurses' and Medical Sccrctarir^' Pension Fund

16 Annual Report Balance Sheet LIABILITIES All amounts in Dl<K mill. Pension Fund Consolidated Note Reserves Profit carried forward ,664,0 19, , ,309.3 TOTAL EQUITY 20, , , ,309.3 Surplus capital TOTAL SUBORDINATE LOAN CAPITAL Pension provisions 13 Profit margin on pension provisions 88, , , , TOTAL PROVISIONS FOR PENSION AGREEMENTS AND INVESTMENT 88, , , ,289.3 Defcrcd pension return tax Provisions for taxes TOTAL PROVISIONS FOR COMMITMENTS Debt concerning financial derivatives 9 10, , , ,378.0 Debt to credit institutes 4, , , ,627.8 Debt to affiliated companies Pension return tax payable Other debt TOTAL DEBT 16, , , ,800.6 PREPAYMENTS AND ACCRUALS TOTAL LIABILITIES 126, , ,105.4 Accounting policies 1 Financial highlights and key ratios for the last five years 2 Contingencies 14 Affiliated and associated parties 15 Risk and risk management 16 Specification of assets and their return 17 Sensitivity information 18 Thp State Registered Nurses' ond Mcdir.al Secretaries' Pension Fund

17 16 Annual Report 2016 Capital All amounts in DKK mill. Pension Fund Consolidated Equity Equity as at 1 January 19, , , ,023.3 Transferred from profit dlstiibiition 1, , Other total income Total equity 20, , , ,309.3 Pension Fund Consolidated Capital base Fquity 20, , , ,309.3 Surplus capital 813, Total capital base 21, , , ,973.5 The SLdle RegisLered Nurses' and Medical Socrofaries' Pension Fund

18 Annual Report / Notes All amounts in DKK mill. Note 1 Accounting Policies The Annual Report for the Group and the Pension Fund has been prepared in accordance with the provi sions of the Danish Financial Business Act and the cxccutivc accounting order from the Danish Financial Supervisory Authority on financial reporting from insurance companies and pension funds. The executive order on the financial statements of pension funds and life assurance companies has been changed with effect from These changes relate to the implementation of the Solvency II rules. This has led to changes of the accounting policies applied: Pension provisions are calculated as the current value of the best estimate of expected payment flows. A discounting interest graph calculated by EIOPA, the European supervisory authority, is applied together with member behaviour in regard to repurchase and premium-free policies. The State Registered Nurses' and Medical Secretaries' Pension has successfully applied for per mission to use a discounting interest graph with a VA supplement. This permission has been in force from early The items Pension Provisions; Collective Bonus Potential and Provisions for Compensations are gathered in one item, "Pension Provisions", which consists of the elements Guaranteed Payments, Individual Bonus Potential, Collective Bonus Potential and Risk Margin. The risk margin corresponds to the amount which the Pension Fund expects to have to pay an other insurance enterprise for taking over the risk of settling the holdings. In connection with the opening balance, the risk margin amounted to DKK 780,562,382 and was covered by Individual bonus potential. Special bonus provisions are renamed "Surplus capital" (in the following called Surplus Capital) and the amount is recognised under "Subordinate Loan Capital". The return margin on pension provisions In 2016 was 0. The effects on the items of the financial statements from the change of accounting policies as from 1 January 2015 arc as ollows: DKK mill. Equity Surplus capital Pension provisions Provisions for compen sations Collective bonus potential Financial Statements , , ,739.2 Change to value adjustment -1, ,018.9 Changc of model for payable bonus Regrouping of Items 2, ,9-2,671.8 Opening balance , ,289.3 With reference to Sect. 84 (2) of the cxccutivc order on financial statements it has not been found to be possible in practice to changc the comparable figures, note information and five-year overviews, so as to make them In line with the new method, as regards the period before 2016, which is why they are not directly comparable with The Annual Report contains an Income Statement for the period 1 January - 31 December 2016 and a Balance Sheet as at , based on the new accounting principles. In addition, comparable figures for the corresponding period last year have been Included, using the previous accounting principles. I he Annual Report is presented in millions of Danish kroner with one decimal. Fach figure is rounded off separately. Consequently, variations may exist between the totals and the sum of the underlying figures. The State Registered Nurses' and Medical Sccrotaties' Pension Fund

19 18 Annual Report 2016 Principles regarding the distribution of profits and/or losses In accordancc v/ith the cxcclitivc order on the contribution principle, the Pension Fund has notified the Danish Financial Supervisory Authority of its principle for distributing the result of the year under review. The main principle In 2016 is that the part: of the profit obtained In the year under review and allocated to equity and surplus capital consists of a yield corresponding to the investment return before pension return tax plus a risk return rate of 0.0% of the average pension provisions. Payments to and from equity arc deducted from the share of the profit for the year that goes to equity. As from 2016, the principles for allocating a risk return will change, as will the principles for repaying any amounts defrayed from equity and surplus capital. Losses concerning the individual contribution groups covered, which losses are covered by equity and surplus capital, may be retrieved in the subsequent financial year, if possible, from the Indi vidual and collective bonus potential of cach group. The shares transferred from individual and collective bonus potentials in the subsequent financial year are reported to the Danish FSA. Consolidated Accounts The Consolidated Accounts comprise the Pension Fund and affiliated companies, where the Pension Fund has a controlling Influence. The Consolidated Accounts are made by combining (consolidating) accounting items with a uniform contcnt in the Pension Fund and the affiliated companies. In consolidation, intra-group income and costs are eliminated together with Intra-Group share holdings and outstandings. Intra-Group scrviccs arc chargcd on market terms or cost-covering terms. Intra-Group trading in securities and other investment assets is charged at market value. Translation of currencies Transactions in foreign currencies are translated at the exchange rate of the transaction date. Balance Sheet items in foreign currencies are translated at the closing exchange rate of the Balance Sheet date. All currency gains and losses are Included In the Income Statement under exchange rate regulation. General principles for recognition and measurement Assets are recognised in the Balance Sheet if future gains are likely to accrue to the company and the value of the asset can be measured reliably. Commitments are recognised In the Balance Sheet if future gains are likely to be paid by the company and the commitment can be measured reliably. The Income Statement recognises all income as it is earned, while costs are recognised by the amounts that concern the financial year under review. Purchase and sale of financial Instruments are recognised on the transaction date and such recognition ends when the right to receive/pay cash flows from the financial asset or liability has expired, or If it has been assigned. Purchase or sales transactions which had not yet been carried out on the Balancc Sheet date are recognised in the Income Statement in the form of their loss or gain. In the first recognition, financial instruments are measured at current value. Measurement after first recognition is made as described under cach accounting item below. Income Statement Gross members' contributions Gross members' contribution in the Pension Fund consists of members' contributions due for January - November as well as expected members' contributions for December. Members' contributions have been reduced by labour market contributions. Pension payments Pension payments consist of processed and paid pensions. A dministration The Pension Fund pays a fixed annual price (rate) per member to PKA A/S for the agreed administrative services; this amount Includes salaries and fees to Management and Board. In addition, the Pension Fund and the affiliated companies pay a fixed fraction of a percent of the net asset current value to cover portfolio management. The rate and the fraction of a percent are determined on market terms. The State Roglstnrcd Nurses' anil Medical Secrfitarins' Pension Fund

20 Annual Report The costs of administering securities arc rccognised as administration costs in connection with investment activities. The costs of property administration are deducted from incomc from investment property. Return on investment Income from affiliated companies consists of the Pension Fund's share of the affiliated companies' operat ing profit after tax. Income from associated companies consists of the Pension Fund's share of the associated companies' op erating profit after tax. Income from investment properties consists of the result of property operation before adjustment of prop erty values. The costs of property administration are deducted from the result. Interest and dividend, etc., include the interest earned and the dividend received, etc., in the year under review. Price adjustments consist of realised and unrealised gains on investment assets, including value regulation of investment properties. Transferred return on investment Transferred return on investment has been calculated on the basis of the pro rata share of the result ob tained that goes to equity and Is Included in the equity investment return item. Pension return tax Pension return tax is recognised in the Income Statement by an amount calculated on the basis of the taxable return In the year under review. The pension return tax that rests on the return that will only be included in the Pension Fund tax basis in a subsequent financial year is rccognised as deferred pension return tax. Pension return tax is divided between equity and clients. Equity's share of the pension return tax is calcu lated on the basis of equity's share of the result obtained. The? Stato Registered Nurses' and Medical Secretancs' Pension Fund

21 20 Annual Report 2016 Balance Sheet Assets Investment properties InvestmGiit properties arc measured at their value on the Balance Sheet date by using the DCF method, or in the alternative the first-year-return method as regards residential properties in uniform, stable opera tion. The measurement takes account of current interest and market conditions and the location, age and state of maintenance of the property, including expected future maintenance costs. The return requirement has been set on the basis of the expectation that, given the required sales efforts, the properties could be sold within a reasonable time period. Construction projects are measured at cost during the construction period. Minor properties are measured and recognised at the latest public assessment value. Value adjustments of investment properties arc recognized under Price adjustments via the Income Statement, Capital participation Listed capital participation is measured at the value of stock exchange closing prices on the Balance Sheet date. Unlisted capital participation is measured at current value based on an individual assessment of the com panies with a view to determining the price which such shares are expected to fetch. Measurement is based on the key ratios and valuation methods normally used when measuring companies. Units in mutual trusts Units in mutual trusts are measured at the value of the stock exchange closing prices on the Balance Sheet date. Bonds Fixed-interest bonds, convertible bonds and indexed bonds plus index-related adjustments are measured at the value of the stock exchange closing prices on the Balance Sheet date. The currcnt value of drawn bonds is based on the present value of the bonds, which is close to the nominal value of the bonds. Secured loans Mortgage bonds are measured at a calculatcd currcnt vale based on the effective interest rate of the claim. Other loans Subordinated loan capital is recogniscd as a calculated current value based on information about the sol vency of the company. Provisions are made to losses if this is warranted by the said information. Repurchase/ reversal Securities sold as part of a sell and buy-back transaction stay on the Balance Sheet under the various main items, e.g. "bonds" that carry interest and are subject to security price adjustment. The received amount is recognized and carries interest as debt to the other party to the transaction. Securities acquired as part of a purchase and scll-back transaction are recognized as accounts rcccivablc by the other party, while the return is recognised under interest. Derivative financial instruments Derivative financial instruments used for interest risk hedging and other purposes arc measured at current value. Instruments with a positive current value are entered as assets, while instruments with a negative currcnt value are entered as liabilities. Capital participation in affiliated companies Capital participation in affiliated companies is measured at Intrinsic value (the equity method). Using this method, the operating results of affiliated companies are recognised in the Pension Fund Income State ment. The Pension Fund's profit and equity are thus identical to those of the Group. The accounting results from affiliated companies result from using recognition and measurement methods identical to the principles used in the Pension Fund, Capital participation in associated companies Capital participation in associated companies is recognised at the Pension Fund ownership share of the companies' Intrinsic accounting value according to the last known accounts. The companies' intrinsic value Tfie State Registered Nurses' and Medical Secretaries' Perisiori Fund

22 Annual Report results from using meosurcmcnt methods identical to the methods used in the Pension Fund. All regula tions are recognised in income from associated companies. Associated companies are defined as companies that are not affiliated companies, but whore the Group's companies have shares representing more than 20 % of the voting rights, and where considerable influ ence is exercised over companies' operational and financial management through representation on the boards of companies. Associated companies with a negative intrinsic accounting value are measured at zero and any receivables from such companies are Impaired by the parent company's share of the negative Intrinsic value to the extent the amount is deemed to be irrecoverable. If the negative intrinsic accounting value exceeds the amount rcccivablc, the remaining amount is recognised under provisions for commitments to the extent the parent company has a legal or actual commitment to cover the obligations of the company concerned. Other items under assets Accounts receivable are recognised at face value minus write-downs to cover expected losses. Liabilities Equity The Pension Fund's equity belongs to the members jointly. Provision for pension agreements and investment contracts Provisions for pension agreements and investment contracts are measured by the Pension Fund Actuary in charge. The pension provisions consist of the following elements: Guaranteed Payments, Individual Bonus Poten tial, Collective Bonus Potential and Risk Margin. The provision element entitled Guaranteed Payments is measured in that, for each insurance policy, the market value of the expected, guaranteed payment flows is calculated. The market value is calculated by discounting individual payments using the interest rate calculated by EIOPA, the European supervisory authority, plus a Volatility Adjustment supplement and minus the pension return tax. Guaranteed Pay ments contain an estimated amount to cover future insurance payments stemming from insurance events which occurred during the financial year, but whore no claim had yet been filed on the date of the Balance Sheet. Individual Bonus Potential contains the value of obligations to grant a bonus on the basis of the amount deposited under the individual insurance policy qualifying for the bonus. Collective Bonus Potential contains the share of the insurance holding of realised results which has been set aside as a collective provision for the insurance policies qualifying for the bonus. The Risk Margin contains the amount which the Pension Fund must expect to have to pay to another insur ance company to take over the risk of settling the holding. As far as possible, the Risk Margin is obtained primarily from the Individual Bonus Potential and subsequently form the Collective Bonus Potential - or alternatively from the capital base. The Risk Margin is calculated in accordance with the Solvency II rules. The assumptions regarding the best estimate of mortality arc based on the FSA benchmark for current mortality, which is adapted to the Pension Fund's specific situation as regards the observed mortality of the policy holders. In addition, the FSA benchmark for expected life expectancy improvements is integrated. The FSA benchmark is updated annually and the Pension Fund carries out an annual analysis of any devia tions from the benchmark for current mortality. The assumptions regarding best estimate of disablement are based observed disablement in recent years The discounting interest graph and the assumptions on mortality are the assumptions which have the highest effect on the measurement of provisions made. Collective bonus potential consists of members'share of the results obtained by bonus-qualifying pension schemes. The amount has been set aside collectively and has thus not been assigned to each member at this point. Profit margin The profit margin shows the present value of profit not yet earned by the Pension Fund on insurance poli cies which are to be recognised in the Income Statement over time. The profit margin is segregated from The Stale Registered Nurses'and Medical Socrotaries' Pension Fund

23 22 Annual Report 2016 the pension provisions. Surplus capital Surplus capital forms part of the bnse cspital on equal terms with equity capital, but over time it accrues to tlie insured and thus forms part of the provision made for insurance contracts, Other items under liabilities Debt is measured at amortised cost, which normally corresponds to the face value. Key ratios and sensitivity information Key ratios and sensitivity information arc prepared in accordance with the rules of the Danish FSA's execu tive accounting order on financial reports covering insurance companies and pension funds. The Slate Regisleretl Nurses' and Medical Socrctarics' Pension Fund

24 Annual Report Note 2 Financial highlights and key ratios for the last five years Pension Fund Members' contribution 3,000 3,079 3,211 3,297 3,748 Pension payments * -2,116-2,302-4,106-2,437-2,595 Return on Investment 10,613 3,707 10,079 1,812 9,178 Total pension-related operating costs Result of re-insurance Technical result 1, Profit for the year 2, , ,370 Total provisions for pension agreements * 70,70S 73,632 79,805 81,289 88,677 Total equity 16,865 17,822 19,023 19,309 20,680 Total assets 99,660 98, , , ,995 Consolidated Members' contribution 3,000 3,079 3,211 3,297 3,748 Pension payments 54-2,116-2,302-4,106-2,437-2,595 Retum on investrrcnt.10,613 3,707 10,079 1,812 9,178 Total pension-related operating costs Result of re-insurance Technical result 1, Profit for the year 2, , ,370 Total provisions for pension agreetrertts * 70,705 73,632 79,805 81,289 88,677 Total equity 16,865 17,822 19,023 19,309 20,680 Total assets 99,914 99, , , ,124 Key ratios Return related to average interest products * % Cost on provisions * % ,1 0.1 Costs per member kr Return on equity after tax % Return on surplus capital, to which return as equity is allocated % U Solvency cover * '*' * % The ministerial order on financial staternents was changed as from With reference to Sect. 81 (2) of the ministerial order, It has not been found lo be practically possible to changc the fiveyear overview, so as to trake the figures for the period before 2016 in line with the new method. Consequently, the figures for arc not directly comparable with ** The key figure called solvency cover is exempted from the audit requirement, cf. ministerial order no. 937 of 27 July 2015 on financial reporting of insurance companies and transverse pension funds, so no audit has been performed. The State Registered Nurses'and Medical Secretaries' Pension fund

25 24 Annual Report 2016 Note 3 Pension Fund Consolidated Gross member contributions Direct Insurance with bonus scheme Meirber contributions 3, , , ,105.2 Merrfoer single prermm-s Group sc he ires Total gross member contributions 3, , , ,296.7 All contributions are direct insurance with a bonus right. Pension agreements Taken out as part of an employee plan 3, , , ,179.8 Taken out by private individuals Group schetres Premiums divided into countries: Denmark 3, , , ,271.4 Other EU countries Other countries 14, Calculation of number of policy holders Taken out as part of an employee plan 119, , , ,593 Taken out by private individuals 3,831 3,831 Group schcn^cs 79,835 78,957 79,835 78,957 The Pension Fund's toal number of insured members has been calculated incl. msrrtierships from which only spouse and children pensions are paid. Note 4 Pension Fund Consolidated Price adjustments Investrt^nt properties Capital lnvestn"ent Investirent fund shares Bonds Secured loans Other loans Derivative financial instruments , ,980.5 Cash in hand and at bank Total price adjustments 1, , , ,762.3 Note 5 Pension Fund Consolidated Change to pension provisions, own acc Individual bonus potential 8, ,156.6 Guaranteed payments -4, , Bonus potential on future member contributions Bonus potential on deferred pensions 1, ,994.0 Risk margin Conpensation provisions Collective bonus potential 3, , Total change to pension prov., own acc. 7, , , ,010.2 The Stale Registered Murses' and Medical SecreUities" Pension Fund

26 Annual Report b Note 6 Pension Fund Consolidated Pension-related operating costs, own acc Board fees (amounts in thousands of DKK) Bent Hansen Crete Christensen * ,4 Soile Kathrine MSkiaho Friis (resigned Henrik Thorup Gamst Jette Sisgaard Nissen Doite Steenberg * , Jacob Paludan Truelsen Dirgitte Olscn Tausen Blrgitte Wildt-Andersen Mogens Eduard Jespersen Lone KjEergaard Total Board fees the fee has been paid to the designated trade union organisation. Salaries and fees Management and significant fixed-pay risk-takers partially work for and are paid by the Pension Fund. The actuan/ in charge works for, but is not paid by, the Pension l-und. CEO Peter Datrgaard Jensen rcceivcd total remunerations for all his functions from the admnistration company, PKA A/S, in the amount of DKK 4,091,000. Detailed information about salaries in the administrative community PKA can be read at pka.dk. Pension Fund Consolidated Salaries (amounts in DKK thousands) Salaries 2,«88.5 2, , ,766.9 Pension contributions ,6 Payroll tax, etc Total salaries 3, , , ,718.9 Management has received a fixed salary only, DKK 311,600. Other significant risk-takers, 6 persons, have received fixed salaries only, totalling DKK 3,120,100. The average number of full-tin-c equivalent employees in 2016 was 1,7. Auditor (amounts in thousands of DKK) Most of the auditor's work cotrprises all of the pension funds administered by PKA A/S The Pension Fund's share of audit costs incl. VAT is: Pension Fund Consolidated Delollie Statutory audit of the Financial Statement , ,162.4 Other assurance engagements :1, Total auditor costs , ,279.2 The State Registered Nurses' and Medical S cere wirier.' Pension Fund

27 26 Annual Report 2016 Note 7 Pension Fund Consolidated Realised profit Realised Interest 8,334,6 949,6 8, Realised risk 425,2 407, Realised cost 290,5 265, ,9 Market value adjustment 337,3 1, ,603.1 Total realised profit 9, , , ,225.6 which Is divided into: Crediting of bonus 2, , ,944,6 2,558.2 Pension return tax 1, , Return for surplus capital Pension return tax concerning surplus capital Transferred to equity 1, , Pension return tax on return on equity 242, Change in collective bonus potential 3,482, , Total distribution 9, , , ,225.6 Movements on equity: From realised profit 1, , ,0 Transferred to provisions Profit for the year 1, , Missing return on equity The principles for distribution of the realised profit and for calculation of risk supplement are described under accounting policies, Note 8 Pension Fund Consolidated Investment properties Current value as at 1 January 2, , , ,638.3 Additions of the year under review 32,6 26, Divestmants of the year under review , Value adjustment for the year at current value 180,8 44, Total current value 2, , , ,018.8 Weighted average return percentage that forms part of determining current value: Properties for residential tenancies 4,0 4, ,3 Properties for business leases Properties leased to public authorities on longterm contracts 5,7 4, The Pension Fund's valuation of investemant properties has been based on external validation of yield requirements. The stale Registered Nurses'and Medical Secrelaties' Pension Fund

28 Annual Report Note 9 Other financial investment assets The Pension Fund's investment policy takes account of a number of social, environmental and ethical aspects. The Pension Fund does not invest in coirpanies that deliberately and consistently infringe on national laws or rules laid down by International organisations and adopted by Denmark. Furtherrrore, the Pension Fund does not invest in coirpanies that iranufacture weapons or tobacco. Go to for a continually updated list of the companies in which the Pension Fund has made capital investmsnts.. The net assets of the Pension Fund are adminestered by PKA A/S, Financial instruments {Pension Fund and Consolidated) Book Financial c/envaivves 20/6 Yrs to expiry Principal value Options , Swaptlons , ,242.5 Swaps ,855,8 35,9 Swaps , Swaps " , ,122.4 Forward currency transactions , ,282.7 Forward currency transactions , Inflation swaps , Inflation swaps r +10 1, Book Financial derivatives 2015 Yrs to expiry Principal value Options , Swaptlons , Swaps , Swaps , Swaps r , Forward currency transactions , ,022.0 Porward currency transactions , ,500.3 Derivative financial instruments arc linked to significant conditions in regard to the development of interest rates, share prices and exchange rates. Other financial instrutrents, such as bonds, capital investment, etc., are not linked to any special, significant conditions or terms that could influence future cash flows. The book value of financial derivaties in the Balance Sheet is gross. The sum of all contracts with positive value is recognised in assets under the item "Financial derivatives".the sum of all contracts with negative value is recognised in liabilities under the item "Debt relating to financial derivatives". Note 10 Guarantees Pension Fund Consolidated As guarantee for compliance with commitments in hedging interest and share price risks, the Pension Fund has deposited bonds at a net value of 5,118,2 3, , ,241,9 Guarantees for repurchase agreement 5, ,637,0 5, ,637.0 The suite Regiblered Nurses'and Medical Secretaries' Pension Fund

29 2X Annual Report 2016 Note 11 Contingent asset In 2014, Danish VAT procedures were changed; certain services lo pension funds are no longer subject to VAT. In February 7016, the Pension Fund subnitted an application for repayment of wrongfully collected VAT for the period 1 February to 2004 up to and Including 2015 to the Danish tax authorities; processing of the application is still outstanding. It is still unclcar to which extent the Pension Fund will achieve any such repayment, so the size of the expected receivable is uncertain, Note 12 Pension Fund Consolidated Surplus capital Surplus capital, start of year 664,2 566,0 664,2 566,0 Payments received 102,3 92,9 102,3 92,9 Disbursements -8,2-6,8-8,2-6,8 Share of realised result after PAL tax 55,0 12,0 55,0 12,0 Total surplus capital 813,4 664,2 813,4 664,2 Note 13 Pension Fund Consolidated Pension provisions Pension provisions, start of year , , , ,6 Profit margin, start of year 0,0 0,0 Total pension provisions, start of year , , , ,6 Collective bonus potential, start of year , ,8 Accumulated value adj., start of year , , , ,7 Retrospective provisions, start of year , , , ,9 Gross contribution 3.747, , , ,7 Interest added 3.125, , , ,6 Pension payments -2.[)94,G , , ,7 Cost supplement after addition of cost bonus -61,3-61,8-61,3-61,8 Risk gain after addition of risk bonus -75,0-261,0 75,0-261,0 Pension choice bonus 143,9 109,0 143,9 109,0 Transferred to/from nxunbers' capital -94,1-86,1-94,1-86,1 Other 51,1 57,1 51,1 57,1 Retrospective provisions, end of year , , , ,7 Accumulated value adjustment, end of year 8.679, , , ,6 Collective bonus potential, end of year 6.154, ,0 Total pension provisions, end of year , , , ,2 Transferred from collective bonus potential, end of year 1.739, ,2 Transferred from provisions for conpensation, end of year 45,9 45,9 Profit margin, end of year 0,0 0,0 Total pension provisions , , , ,3 The pension fund's insurance Is comprised by the contribution principle. However, the pension fund has adopted other principles for the distribution of profits obtained than what is stated in the Contribution Order (Order No of 14 December 2016). The provisions of the Order are used to the extent they do not violate the principles of the pension fund. In practice, this n"cans that the pension fund does not use a group division as stated in Seel. 3 of I he Order. fhe SlaLe Registered Nurses' btid Medical Secretaries' Pension Fund

30 Annual Report Note 13 continued Breakdown of provisions into original base interest of holdings not comprised by the contribution principle; Guaranteed payments Individual bonuspotential Collective bonuspotential Total Pension provisions as at 1 January 2016 Calculation interest rate 0.01% Calculation Interest rate 1.75% Calculation interest rate 2.75% Calculation interest rate 4.25% 6,154,5 1, , , , , , , ,337,2 6, , ,276.4 All groups 45, , , ,508.7 Risk margin, all groups Total pension provisions 81,289.3 Pension provisions as at 31 Dcccn-bor 2016 Calculation interest rate 0.01% Calculation interest rate 1.75% Calculation interest rate 2.75% Calculation interest rate 4.7,5% J , , , , , J , , , , ,855.6 All groups 41, , , ,871.6 Risk margin, all groufjs Total pension provisions Return percentage of bonus ratio for insurance holdings not comprised by the contribution principle: 2016 Return percentage 2015 Return percentage 2016 Bonus ratio 2015 Bonus ratio Calculation interest rate 0.01% Calculation interest rate 1.75% Calculation interest rate 2.75% Calculation Interest rate 4.25% 9.1% 9.1% 9.1% 9.1% 1.9% 1.9% 1.9% 1.9% 91.7% 99.7% 46.3% 9.8% 77.1% 76.9% 25.0% 5.9% Return on customer funds after costs before tax divided into products: Average Interest rate 9.0% The State Registered Nurses' and Medical Sectelciries* Pension Fund

31 30 Annual Report 2016 Note 14 Contingencies As security for Insurance-taker provisions, the following assets have been registered: Pension Fund Consolidated InvGstrrcnt property Capital participation in affiliated companies Capital participation in associated companies Loans to associated companies Capital participation Unit trust shares Bonds Secured loans Other loans Deposits with credit institutes Derivative financial Instruments Receivable from affiliated companies Cash in hand and at bank ReceivablG interest Total as security for provisions Investment assets for take-over after financial year 2, , , , , , , , , , ,6/5.9 35, , , , , , , , , , , , , , , , , , , , , , , , ,887, , , ,2 97, , , , Investment pledges after deduction of amounts already deposited: Unlisted shares Forests and farms Properties Infrastructure 5, , ,130,4 6, , , '/ 7, , , ,109.0 The Pension Fund participates in various partnerships together with pension funds attached to PKA. The Pension funds are jointly and severally liable for the comm'trrcnts of these partnerships. Some of the Group's real properties are subject to a VAT adjustment obligation. However, a commercial decision to change the use of these properties is required for this obligation to become a reality. Anholt havvindm0llcpark The Pension Fund has guaranteed to DONG Gnergy Wind Power A/S and co-owners of Anholt Havvindinollepark I/S that, within a specific framework, PKA - Sygeplejersker og La^esekretcerer Anholt Havvlndmollepark K/S will pay its pro rata share of comniitmsnts under the ownership agreetrent concerning Anholt Havvindmollepark 1/S and the agreement with DONG Energy Wind Power A/S to operate Anholt Ha wind ma Hep ark. Godc Wind U The Pension Fund has pledged a capital contribution to PKA Sygeplejersker og L^cgesekretcerer Code Wind II K/S of FUR mill.; payment is on demand if requested by the company's general partner, Via PKA - Sygeplejersker og I esgesekretserer Code Wind 11 Kys, the Pension Fund participates with a number of other institutional investors in a consortium Investing in the wind farm Godc Wind II. Towards Dong Energy Wind Power A/S, the Pension Fund has guaranteed for its pro rata share of certain commitments in the establishment and ownership of Gode Wind 11. The guarantee is limited to the Pension Fund's indirect investment pledge: the remaining commitment on the Balance Sheet date was FUR 15.3 mill. The Pension Fund has guaranteed for certain commitments resting on GOde Wind II Joint HoldCo P/S towards Gode Wind II Joint FinCo ApS. On the Balance Sheet date, this guarantee concerned commitments of approx. FUR mill. The State Registered Nurses' and Medical Secretaries' Pension Fund

32 Annual Report Note 14 continued Bur bo Bank Extension Via PKA Burbo Extension Holding ApS, the Pension Fund participates together with other Danish investors in an investor consortium, which invested in the Burbo Bank Extension offshore wind farm in the UK. The Pension Fund has guaranteed for its pro rata share of certain commitments regarding the erection and ownership of Burbo Bank Extension towards a number of parties, including MHI Vestas Offshore Wind UK Ltd, which supplies the wind turbines, and towards the other Danish investor partners and DONG Energy Wind Power A/S, as well as the project companies of these companies. These guarantee corrmitmants are limited to the Pension Fund's indirect Investment pledge; the renviinlng commitment on Lhe balance sheet date was GBP mill. Teeside Renewable Energy Plant Via PKA TeesREP Floldmg ApS, the Pension Fund invests in the biorrwss power plant Teeside Renewable Energy Plant in the UK together with other Danish pension funds and Macquaric Capital. The Pension Fund has guaranteed for its pro rata share of certain commitments regarding the erection and ownership of Teeside Renewable Energy Plant towards Nordea Bank Denmark, as part of the total funding of the investment. The guarantee commitment is United to the Pension Fund's indirect investment pledge; the retraining commitirent as at the balance sheet date was GBP 49.9 mill. Note 15 Affiliated and associated parties, etc. The Pension Fund has invested capital in the Com- Comfollowing affiliated Owner- pany pany comapnies: Activity Domiciled in ship Profit Equity Sygeplejerskernes og Lasg ese kre t cere me s Eje n dorrea kt ic se Is ka b Ejendomsaktieselskabet Dronnlngegarden PKA - Sygeplejersker og Lcegesekreta2rer An ho It Havvindmollepark K/S PKA - Sygeplejersker OWP BUT EN DIE K K'S PKA - I eegesekretaerer OWP BUTENDIEK K^S PKA - Sygeplejersker og La^jesckretcerer Gode Wind 11 K/S PKA - Sygeplejersker og Lazgesekret^rer OWP BUTENDIEK Komplementar ApS PKA - Sygeplejersker og Lcegesekretcerer GP ApS Investrrent in land and ^ ^ u. -- on/ r, Gentofte 100.0% ,220.6 buildings Invostmontjn the property c h A 3l Dronmngegarden Investment in wind farms Gentofte 100.0% ,273.4 Investment in wind farms Gentofte 100.0% Investment in wind farms Gentofte 100.0% Investment in wind farms Gentofte 100.0% ,196.5 General partner Gentofte 100.0% General partner Gentofte 100.0% Tile Slate Registered Nurses' and Medical Sprretaries' Pension Fund

33 32 Annual Report 2016 Note 15 continued The Pension Fund has Invested capital In the following associated companies: Activity Domiciled in Owner ship Com pany Profit Com pany Equity PKA A/S Afirrinlstrative assignrrents in relation to pension fund activities etc. Gentofte 49.2% PKA+Pension Forsikringsselskab A/S Hotel Koldlngfjord A/S A/S Kjubenhavns Ejendomsselslob ** Butendiek FinCo ApS Godc Wind 11 Joint FinCo ApS PKA Burbo Extension I lolding ApS PKA TeesREP Holding ApS PKA AIP A/S *:t Margrcthcholrrcn P/S Ko mplc mc n t a rs c Iska bet Margretheholm ApS PKA Skejby P/S PKA Skejby Ko tnp lenient a r ApS P/S PKAE tjendorre Kompierrentarselskabet PKA AE ApS OPP HoldCo ApS Poppelstykket 12 A/S Investeringsselskabet af 24. februar A/S ^ En^crging Market Corporate Debt; I * Errerging Local Currency Debt II * ** Lifeinsurance activity Hotel operation Investment In land and buildings Investment In wind farms Investment in wind farms Investment in wind farms Investment in bioirass power plant Investment consulting Investment in land and buildings General partner Investmant in land and buildings General partner Investment in land and buildings General partner Investment in land and buildings Invest ire nt in land and buildings Reuse of tyres Emerging markets corporate debt Emerging markets local debt Gentofte 19.2% Kolding 90.9% Gentofte 55.4% Gentofte 49.5% Gentofte 24.8% Gentofte 50.0% - - Gentofte 50.0% - - Copenhagen 52.0% Frederiksberg 20.0% 6G Frederiksberg 20.0% Gentofte 40.0% Gentofte 40.0% Aalborg 20.0% Aalborg 20.0% Gentofte 25.4% Frederiksberg 24.8% Gentofte 54.1% , Copenhagen 49.4% 2.0 2,180.2 Copenhagen 50.4% ,9:17,4 ErY-erging Local Currency Debt III * ** Errerging Local Currency Debt IV * Europeciskc High Yield 1 * Nordarrerikansk l-ligh Yield I * ** Emerging markets local debt Emerging markets local debt European high yield Northamerican high yield Copenhagen 50.3% ,878.9 Copenhagen 49.9% - - Copenhagen 49.4% ,635.3 Copenhagen 50.0% ,941.1 The Slate Registered Nurses' and Medical Secretaries' Pension Rinri

34 Annual Report Note 15 continued The Pension Fund holds shares in the following associated companies; Activity Domicile Owner ship share Result Equity Nordamerikansk High Yield II * Nordamcrikcinsk High Yield III * * * Mortgage Backed Sccurites 1 * North American high yield Copenhagen 4g.6% ,189.8 North American high yield Copenhagen 50.9% - - American house loans Copenhagen 49.3% 3^.2 2,828.3 Global Equities T * ** Global listed shares Copenhagen 50.5% 1, ,935.5 Low Risk Equities I * ** Low Risk Equities II * Global Large Cap Market Neutral Equity * ** Global SMID Cap Market Neutral Equity + ** Alternative Risk Prernia ** Global listed shares with defensive tilt Global listed shares with defensive tilt Market-neutral global listed shares Market-neutral global listed shares Copenhagen 50.8% 1, ,750.0 Copenhagen 50.6% ,211.1 Copenhagen 50.3% ,617.4 Copenhagen 50.4% ,978.8 Long/short derivatives In shares, bonds, raw irateliais Copenhagen 50.9% ,188.9 and currency Tactical Trend * ** Trend-following In futures within shares, bonds, raw materials and currencies Copenhagen 50.9% - - PKA Globalc Aktier Global listed shares Copenhagen 42.4% ,212.8 Black Rock Frontier Markets ex GCC Fund B Global Frontier Markets listed San shares Francisco 51.8% Yderst Catastrophe Fund ** Disater insurance Beirmda 51.5% ,151.5 IL5 - C02 Segregated Portfolio ** M&G Independent European Loan Fund ** Dlsater insurance * Section of the Investing Pro capital trust Cayman Island 51.6% 88,.1 1,040.3 European leveraged loans Dublin 50.1% ,661.5 ** Companies in which the Pension Fund has a significant, but not controlling. Influence, The Group also has capital participation in the following associated companies: Activity Domiciled in Owner ship Com pany Profit Com pany Equity GOde Wind II Joint HoldCo P/S Code Wind II Joint 1 loldco GP ApS Investment In wind farms Gentofte 2^.8% ,4 General partner Gentofte 24.8% The State Registorori Nurses' and Medical Secrelciriei' Pension Fund

35 Annual Report 2016 Note 16 Risk information A number of risks are associated with the pension fund's business rrxidel, In connection with its work on risk and solvency, the Board of Directors has identified the major risks associated with the business rradel: Life assurance risks Market rsik, including interest risk Outsourcing risk As regards life assurance risks, the blometric risks, which coirprise life expectancy improvemants and changes to the number of anticipatory pension recipients, constitute the most significant risks. Based on the Danish FSA's life expectancy regimen, etc., the Pension Fund has adjusted its assumptions on life expectancy of its members. Market risks are defined as the risk that the market value of assets and liabilities will change as a result of changes to market conditions. The most signficant nwket risks exist in Interest rates, shares, foreign exchange and tangible property, as well as in investment in alternative sources of yield. The Pension Fund manages these risks by ensuring the necessary diversification of investn-cnts. Investments in alternative sources of yields are based on achieving a risk prenium by taking different types of risks in the market - in the short term 1-3 year horizon and with the focus on the relative return of different assets, but also in the longer term, In its investment strategy, the Board has laid down the risk framework for the different classes of assets. The pension fund hedges against interest risks on guaranteed, deferred pensions based on the Board's adopted interest risk framework. The consequence of interest hedging is that a significant part of the interest risk between liabilities and assets has been eliminated. A significant part of the assets for interest cover arc Interest swaps, where the Pension Fund pays a variable interest rate and receives a fixed interest rate. These instruments have the same characteristic as the guaranteed, deferred pensions in the sense that they Increase In value if the interest rate goes down and vice versa. The Pension bund uses outsourcing, which gives rise to a focus on the associated risks. There is a risk of making a loss if agreements or controls are inadequate. The Pension Fund has concluded an outsourcing agrcerrcnt with PKA A/S on full administration. The Board has laid down policies and guidelines for outsourcing significant fields of activity, deterrn'ning the rules for additional outsourcing from PKA A/S to a third party. This ensures satisfactory follow-up in regard to the various subsuppliers, such as Forca A/S. The Stdte Registered Nurses' and Moriical Secrelariesi' Pension Fund

36 Annual Report Note 17 Specification of assets and their return Accounting value Return in % Prlnx) Ultimo p.a. before tax Land and buildings 11, , Listed capital Investments 17, , Unlisted capital invest n-cnts 32, , Total capital investments 49, , Government- and moitqaqe credit bonds 24,960,6 21, Indcxlinked bonds Credit bonds and emerqinq marked bonds 15, , Loans etc Total bonds and loans 40, , Affiliated companies Other financial investment assets 10, , Derivative financial instruments for hedging the net change of assets and liabilities -2, ,422.0 Return in % is weighted in time based on the current return. Note 18 Sensitivity information Event Impact on capital base Interest increase 0.7-1,0 % points Interest drop % points Share price drop 12 % -1,333.3 Real property price drop 8 % Exchange rate risk (VaR 99 %) Loss on counterparts 8 % The State Registered Wurscs'and Medical Secretaries' Pension Fund

37 Arsrappoft 2016 Pensionskassen for Sygeplejersker og Lcegesekreteerer Godkendt p3 pensionskasscns generalforsamling, den 77. aprll 2017 Dlrlgent Tuborg Boulevard 3, 2900 Hellerup - CVR nr

38 Pensionskassen for Sygeplejersker og Laegesekretserer Indholdsfortegnelse Ledelsesberclnlng LcdelsespStegning Den UEifha^nglge revlsors revlsionspatcgning II Resultat- og totallndkomstopg^relse - J3 Balance ^ Kapltalforhold ^ Noter i7 Tuboi<i Boulevard 3, 29Q0 Hollorup - CVR nr II

39 2 Arsrapport 2016 Ledelsesberetning Penstonskassen driver pcnsionskassevlrksomhed. Som medlemmer optager perislonskassen sygeplcjerskcr, radiografcr og l«gesekret»rer, der er bcrcttigct ogtorpllglet III medlemskab af pcnslonskassen gennem kollektiv overenskomst eller ansecttclscsaftale. Endvidere optages fra 2016 ogsa personer, der ikke har en arbejdsglverordning men er medlem af de fagllge organlsalloner, der cr tilknyttet pensionskassen. Pensionskassen har organlseret sin vlrksomhed med investeringsaktlviteter I tilknyttede virksomheder. Pet er Imldlertld den samlede pensionskassekoncerns resultater, der har betydnlng for medlemmets pension. Hovcdtallene I denne beretning er derfor preesenteret ps koncernbasls medmindrc andet fremgar speclfikt. Arets resultat Koncernens resullat for 2016 blev et overskud pa 1.370,3 mio. kr. Overskuddet fores I is af bestyrelsen 6verf0rt til neeste ar. Medlemsbldrag og penslonsydclscr cr som forventefstlgende. Pensionskassen er i fortsat v^kst, Idet modlemsbidragene er 1,4 gange pensionsydelserne. Det samlede afkast f0r pensionsafkastskal af penslonskasscns aktlver blev 9,1 % Arets resultat vurderes at vcerc tilfredsstlllende, og pensionskassen cr stadig velkonsollderet. Aret der glk, Pkonomi Pensionskassen forventede, at 2016 vllle vare pr eget af moderat stlgende vaekst I bade USA og Izuropa. Der var forventning otn rentestlgnlng, som f0lge af stlgende energlprlser og dermcd 0get Inflation var preeget af to store begivenheder; i juni besluttede brlterne at Storbrltannien skal forlade tu efter ncermere forhandllng af vllkar, og 1 november blev Donald Trump valgt til USA's nceste president. Indtil videre liar Ingen af begivenhederne haft maerkbare 0konomiske konsekvenser, og I USA steg aktiemarkederne stlk imod forventning efter valget af Trump. Ellers bed 2016 p,^ fortsat moderat v»l<st og faldende arbejdslnshed I bsde USA og Europa. Inflationen steg primeert som f»lge af stlgende ravarepiiser. Stlgende ravarepriscr bidrog ogsa til at stabllisere den 0konomlske udvlkllng I emerging markets lande. De amcrikanske og europeeiske centralbanker fortsatte deres lempelige pengepolltlk i 2016 med en kort rente omkring nul.-1 slutningen af 2016 satte den amerikanske centralbank dog renten op, og den europce- Iske centralbank reducerer opkobene af obligationer fra marts Beggc dele skal ses I lyset af den stl gende inflation og moderate vcekst. De globale aktiemarkeder steg med 8,7 % i det liele taget gav mere risikofyldte aktlver gode afkast I 2016, mens renteudvikllngen I store trtek var uforandret. Kontorente Pcnslonskassens kontorente har I lubet af 2016 vasret fastsat til 4,8 % far skat. Kontorenten cr hoevet til 5,0 % f0r skat I 2017, og det er forventningen, at kontorenten vii vfere minimum S % I de kommende fem ar. Privat opsparing I 2016 har medlemmeme fact mulighed for al oprette en privat opsparing I pensionskassen. Opsparlngen cr et fleksibelt supplement til medlemmemes arbejdsglverordning, og tllbydcr udbctalingsslkret opspa ring i alderssum, ratepenslon og livsvarig alderspenslon. I august 2016 flk cn del af de medlemmer, der havdc cn privat opsparing i PKA-h Pension, flyttet denne III pensionskassen. I 2016 blev det ogsa mullgt far personer, der ikke har en arbejdsgiverordning men cr rnediem af de fagllge organisatloner, der er tilknyttet pensionskassen, at oprette cn ordning I pensionskassen. Pen^ionskyssfin for sygeplejersker og Lsegesekret.-prer

40 Arsrapport Peiisionskassekoncernen Penslonskasscns tilknyttede (100 % ejede) vlrksomheder pr. 31. december?016 fremgar af koncernoversigten, Pensionskassens ejendomsaktieselskaber Selskaberne har til formal at eje og drive fast ejendom med hcnblik pa at opna langslgtel forrentning af den investcrcdc kapital. Selskabemes resultafc for 2016 udgor et overskud p3 371,0 mio. kr., dcr er pavlrket af en opskrlvnlng af ejendomme. Sygcplcjcrskcrnes og Lcegesekretsrernes Ejendomsaklleselskab deltager I interesscntskabcr saminen med andre ejendomsaktieselskaber tllknyttet PKA, Interessentskabcmc offentllgg^r fkke selvslcendlge Srsrapporter under henvlsning til bestcmmclscme I Srsregnskabsloven. InteresscntskabcniG indarbejdes pro rata 1 Interessenterncs arsregnskaber. Anhott Havvindm0lfepark Selskabcts aktivitet er ejerskab af 10,3% af Anholt Havvindm0llepark l/s. Sclskabets resultat for 2016 udgar ot overskud pa 128,8 mlo. kr., hvllket er 1 overensstcmmelse med forventnlngerne. OWP Butendlek Aktlvlteten I de to OWP Butendlek K/S'er er ejerskab af tllsammcn 11,1 % af en tysk havvlndmollepark, OWP Butendlek GmbH & Co. KG. Selskaberne forventes solgt Inden udgangen af ffjrste kvartal Der er underskrevet salgsaftalo, som afventer godkendelse af konkurrcncemyndlghederne, Selskaberne er Vcerdiansat til forventet salgspris.. Selskabernes resultat for 201G udgpr et overskud pa 270,6 mio. kr, Code Wind II Selskabets aktivitet cr ejerskab af 24,8 % af Gode Wind II Joint HoldCo P/S, som sammen med iwrige investorer ejer 50 % af en tysk havvinclm0llepark OpCo German OHG. Selskabets resultat for 2016 udg0r et overskud ps 128,1 mlo. kr. Opferelsen af parken er fuldfurt I Pciisiofiskiissen lor Sygeplejersker og La^gGsekreiafrer

41 1 Arsrappoit 2016 PKA - Sygeplejersker og Lzegesekreteerer OWP ButendieU Kamplementar ApS Dct tidligore PKA - Sygeplejersker og Lasgesekrelcerer GP ApS cr i forbindelse med det forventede salg af de to OWP Butendlek K/S' er omd0bt til PKA - Sygeplejersker 09 Lagesekretcerer OWP Butendiek Komplementar ApS og fungerer udelukkende som komplementar for de to OWP Butentiek K/S'er. Selskabet indgar i den forventede handel. Resultatet for 2016 er et overskud pa 0,1 mlo. kr. PKA - Sygeplejersker og Leegesekretcerer GP ApS Selskabet er stiftet I forbindelse med udsklllelse af de to OWP Butendlek K/S'er og fungerer som komple mentar for pensionskassens dvrige investerlnger via kommanditselskaber t havvlndm0llcparkeme. Resultatel; for 2016 er 0,0 mlo. kr. Investeringer og Samfundsansvar Pensionskassens retnlngsllnjer for ansvarlige investeringer folger princippeme I FN's Global Compact. Som ct tilkeg til FN's Global Compact bar penslonskassen vedtaget en politik for, at der Ikke Investeres I kontroverslelle vahen, kulmlner eller tobak. I bcstyrclscns bcretnlng til generalforsamllngen er der redegjoit for udvikllngen I arbejdet med retningslinjerne 09 aktlvt ejerskab. Beretningcn cr tilg^ngelig pi pensionskassens hjetnmeslde. Det aktlve ejerskab udpvcs ved l0bende at vcere i dialog med de selskaber, der cr tnvesteret I og sikre, at de overholder pensi onskassens retnlngsllnjer. Lever selskabet Ikke op til rctningsllnjerne, gar pensionskassen 1 konstruktiv di alog med selskabet for at bringe overtreedelsen til opfw. Forts^tter selskabet med at overtrade retnlngslinjerne, og cr der Ikke udsigt III varlg forbedrlng hos selskabet, vil selskabet bllve ekskluderet fra pensi onskassens investerlngsunivers. Pensionskasscn offentliggar p3 sin hjemmesidc den aktucllc listc over ekskluderede selskaber. Pensionskassens aktivc ejerskab varetages I samarbejde med en international screenings- og engagementspartner, der giver penslonskassen ekstra gennemslagskraft i h^ndh^velsen af retnlngsllnjerne. I forl^ngelse af pensionskassens retnlngsllnjer arbejder sarnarbejdspartneren ligclcdcs for at fremme bestpractices genncm langsigtede dlaloger med de selskaber, som pensionskassen bar Investeret I. Pi pensi onskassens hjemmeside flndes desuden uddybende redeg^relser for overholdelse af retnlngsllnjerne og del aktlve ejerskab. I 2015 vedtog FN sytten ba^redygtlghedsmal, der skal bekeempe fattlgdom og sikre bcercdygtig udvlkllng frem mod ir Pensionskassen bar fokus p, at investeringer og det aktlve ejerskab saerligt bidragcr til opfyldelsen af seks af mslene; rent drikkevand (mal 6), b^redygtlg energi (tnal 7), ansta^ndlge Jobs og 0konomlsk vcckst (mal»), industrl, innovation og Infrastmktur (mal 9), beeredygtlge byer 09 lokalsamfund (itisl 11) samt klimalndsats (m l 13). Pensionskassen reviderer l0bende, hvilke bceredygtighcdsmll investeringerne skal underst^ttc investerede pensionskassen sammen mod dc 0vrige penslonskasser I PKA-samarbejdet ca, 3 mla. kr. I den engelske havvindm^llepark, Burbo Bank Extension, der vll produccre strsm til flere end husstande. Derudover Investerer penslonskasserne 1,3 mia. kr. i et biomassekraftvaerk, der fyrcs med b^redygtlg biomasse. Kraftvrcrkct vil producere strem til ca husstande. I 2015 tog pensionskassen pa baggrund af flnansicllc og klirnamsesslge overvejelser sit f0rste skrift rnod at reducere eksponeringen i C02-intonsivc selskaber. Typlsk er der tale om mine-, forsynlngs- og energlselskaber. Pensionskasscn gar i dialog med selskaberne, hvor malet or, at de reducerer deres kulforretning og omstiller til mere klimavenllge energikildcr. Sclskaberne skal fremlcegge en forretnlngsstrategi, der udfaser deres kulaktivileter, tager h0jde for reguleringer af energlsektorcn og det 0gede polltlske klimafokus. Er selskabet ikke I stand til det, ss s^lger pensionskasscn sin cjerandel og ekskluderer selskabet. Forelwbig cr 40 selskaber ekskluderet. Pensionskassens ambition er Ikke at Sedge sine ejerandele, men derlmod psvltke selskabemc i en ba^redygtig retnlng. Del aktive ejerskab liar vist sin VcercJI og rykket selskabcrnc i en bceredygtlg retnlng. Indtil vldere bar 10 selskaber lagt strategler for reduktion af kulaktiviteter, og pensionskassen bar derfor bcboldt sine ejerandele I selskaberne. Strategien fra kulscktoren blev fort vldere til olicscktoren, bvor pensionskassen ekskluderede 7 sel skaber, hvor udvlndlng af oliesand udg0r over 50 procent af forretningen. Pensionskassen forventer, at der koijimer yderllgere eksklusioncr i oliesektoren I I 2016 lanccrede pensionskasscn ud fra finansielle og klimamzessige overvejelser en ny klimastrategi for den danske ejendomsportcffllje. Strategien skal bidrage til den gr0nne omstilllng og sikre ejendommenes Vccrdl og afkast til medlemmerne. Frem mod vll pensionskassen reducere den gcnncmsnitlige c;02- Penslcnskassen for Sygeplejersker oy LiegetiekreUerer

42 Ai srapport udledning med AO procent pr. kvadratmeter. Det svarer til, at ejendomsporlefoljen glr fra en gennemsnitlig energlma?rl<nlng C til enercjltncerkning B Derudover flk penslonskassen I 2016 bcercdygtighedscertiflcerel to ejendomme. En kontorejendom var med i et pilolforsag fra DGBN^ordnlngen, derskal laftc arbejdet med bceredygtighed for ckslstcrcndc ejendomme. Pjendommen mudtog guld, som cr den njcsthejeste karaktcr. Samtidlg blev Sundhedshuset I Vcjle glfld-oeitlficeret fra LECD-ordnlngen^ Derudover byggede penslonskassen Danmarks fsrste svanemsrkcde lejebollger, hvor alle materialer lever op til skrappc krav til mrljs- og sundhedsskadcligc stoffer. Ejendommen har et lavt energiforbrug, sundt Indekllma og fokus pa b«rodygtlghed 1 hele ejendommens levetid - fra opf0relse og drift til genan vend else af materialer. Penslonskassen vll fortsat arbejde for, at nye ejendomme enten bllver certlficeret i den h0je ende af skalaen eller svancmccrket- I 2016 investerede penslonskassen sammen med de evn'ge penslonskasser i PKA-samarbejdet 200 mto. kr. I en ny dansk landbrugsfond, der forbedrer produktion, distribution og salg af fadevarer 1 Aslen, Afrlka og l.atinamerika. Fonden Investercr i projekter, hvor leknologi og viden fra danske landbrugs- og f0dcvarevlrksomheder kan l0fte effektlvlteten og produktlonen af f0devarer I udvlkllngslandene til de voksende bcfolknlnger. Fonden hldragcr til at skabe jobs og veekst I udvlkllngslandene, og qua penslonskassens akllve ejerskab arbejdes der labendc for, at jobskabelsen sker pa ordentlige l0n- og arbejdsvllkar. Afkast Det samlede afkast I 2016 blev pa 9,1 %, svarende til 9.196,1 mlo. kr. Samtlige afkastklasser gav positive afkast i Aktler, Infrastruktur og krcditobllgatloner bldrog med toclfrede afkast, mens afkastct pa ejendomme, investment grade obllgalioner og absolut afkast var lavere, men meget tllfredsstlllende. Samarbejde oni investennger og likvider Penslonskassens formuc forvaltes af PKA A/S og penslonskassen samarbejder cftcr indgaet aftale med andre penslonskasser adrnlnlstrcrct af PKA A/S cm effektiv og rationel styrlng af Investeringer og llkvider for at opna st0rst muligt afkast og rninlmoring af omkostninger. Af/edte finansielle Instrumenter Penslonskassen anvender I veesentllgt omfang afledte finansielle Instrumenter til investerings- og afdaeknlngsformal. Administration Penslonskassen og de tllknytlede virksomheder admlnlstreres af PKA A/S. PKA A/S har outsourcet en del af sine administrative opgaver blandt andet til Forca A/S. Direktionen og vcesentlige rlslkolagere med fast l0n er delvlst ansat og afl^nnet af penslonskassen. Den ansvarsbavende aktuar er ansat men Ikke aflwnnet af penslonskassen. Status for opfyldelse af m3ltal for det undeirepi adsenterede k0n I ledelsen Der er i lov oin finanslel vlrksomhed krav om, at finansielle virksomheder skal opstllle maltal for den tonsmcessige representation I bestyrelsen samt udarbejde en polltik for llyerepr^sentatlon i ledelsen af selskabet, hvls der er en underreprabsentatlon af det ene k0n I bestyrelsen. Der er underrepraesentatlon, hvls det ene k0n er reprcesenteret med mlndre end 40 % I bestyrelsen. Regleme om maltal for k0nsiepr«sentatlon 1 bestyrelsen tager udgangspunkt I de generalforsamlingsvalgte mcdlemmer af bestyrelsen, men I penslonskassen udpeges et flertal af bestyrelsesmedlemrnerne af overenskomstparterne. Det bllver ps den baggrund ikke retvisende at vedtage maltal for de generalforsamllngsvalgte medlemrner af bestyrelsen. Bestyrelsen har derfor fastsat et maltal for den k0nsm«ssige sammenscctning af den samlede bestyrelse. Bestyrelsen har besluttet, at maltallct for maand I bestyrelsen skal vasrc mindst 25 % og maltallet for kyinder i beslyrelscn skal vasre mindst 40 %. Ved arets udgang var den l^nsmcesslge andel I bestyrelsen sadan, at der var 36 % mafnd i bestyrelsen og 64 % kvlnder I bestyrelsen. De opstillede maltal er saledes opfyldt. 1 'I'ysk baircdygtighcclsccrlilicevingsordning lilpijsscl dtrnskc vilkflv, der bl.a. bedmmer ejendommens miljomajssigc-, flkoimmiske-, socialc og funktiouelle kvtililofer. 7 Amerikausk bjeredygtighedsceilificciingsoidning, derbl.a, bedemmcr ejeudonunens iniljomicssigo,^kononiiske-, socialc og funkdonellc kvalilcfor, Penslonskassen for Sygpplejersker og Losgosekrer^rer

43 6 Arsrapport 201G Der er ikke vedtagel en polltik for llgereprccsentation i ledelscslagene under direktionen I penslonskassen. Pcnsionskassen totaladminlstrcrcs af PKA A/S. PKA A/S havde I 2016 en k0nsma^sslg fordeling i ledclseslagene under direktionen pa 57 % meend og 43 % kvinder, og der er pa den baggrund ikke udarbejdet en politik for ksnsmtcssig ligcrcptcesentation i de 0vrige ledelseslag I PKA A/S, Revisfonsudvalg I hcnhold til lovgivningen skal penslonskassen etablere et revisionsudvalg, Formanden skal vecrc uafhcengig og mlndst et medlem skal have kvalifikationer indenfor regnskabsv^sen ell^r revision. Formanden for revisionsudvalget er Birgilte Tausen; som opfylder kravene om bade uafheengighed og kvalifikationer inden for regnskabsveesen eller revision. De 0vrige medlemmer af revisionsudvalget er Bent Hansen og Grete Christensen. Risici og solvens forbundet med pensionskassens forretnlngsmodel Pensionskassens forretnlngsmodel er I et risikoperspektiv slmpel, da den bygger pa en overenskomstbaseret, kollektlv og solldarisk arbejdsmarkedspensionsordning, hvor der anvendes outsourcing I veesentiigt omfang. De vzescntiigste risici knytter sig til markedsrislcl, forsikrlngsmcessige risici og outsourcing. Markedsrisici Penslonskassen udbyder et gennemsnitsrenteprodukt. Nye inedlemmer optages til cn gmndlagsrente ps 0 pet., ligesom penslonskassen stadig har cn del medlemmer med renter pa rnellem 1,75-4,25 pet. Dette medf0rer en eksponering mod renterislko, som labende afdeekkes. Penslonskassen nsker at levere robuste pensioner til sine medlemmer. Dette slkres ved en langslgtet investeringsstrategl, hvor mslet er at opna h0je, stabile afkast pa en ansvarllg made, der som minimum kan honorere afkastkravet fra dc foivcntede pensioner. Et vedvarende lavt afkast pa investeringsaktivcrnc eller store flnansleile tab er en rlslko mod at kunne levere robuste pensioner. Den eksponering er pensionskassens markedsrlslko. Rlsikoen afdeekkes ved at sprcde investeringerne I en raskke forskelllge aktivklasser. Der Investeres kollektivt for medlcmmerne. Eventuelle tab p Investeringerne skal deckkes af koilektlvet, men pensionskassens andel af bonuspotentlaler slkrer, at eventuelle tab pa dc flnansleile markeder Ikke overvceltes til medlemmernes depoter i de enkelte ar, men at medlemmerne I stedet fsr tilskrevet den til enhver tid udmeldte kontorente. Rislkotagnfngen er en foruds^tning for at opna et tllstrskkellgt afkast til at sikre robuste pensioner. Det or I den sammenhceng en va?sentlig opgave for bestyrelsen at fa fastlagt den onskede risikoappetlt I form af den valgte Investeringsstrategl. Pensionskassens risikoappetlt er fastsat ud fra to mal. Penslonskassen beskytter medlemmernes pensio ner (PBG), og penslonskassen overholder gasldende solvensregler. Bestyrelsen fastseetter 1 sin rislkostyrlngspolitik slkkcrhcdsniveauerne for PBG-gr^nserne, der giver de risikom<esslge rammer for pcnsions kassen I forhold til de forventede pensioner. I tilleeg kan solvensoverdseknlngen i s^rllge tllfa:lde scette rammerne for pensionskassens rlsikotagning. Penslonskassen har en kapltalplan og en n0dplan baseret pa rlslkostyrlngsmodellen (PBG) saint solvenskapitalkravet (SCR). I kapitalplanen sk0nnes den flnansleile situation I pensionskassens strategiske plan- Imgnlngsperlodc at v«rc betryggende, Forsikrlngsmsessige risici Pcnsionskassen giver llvsvarige pensioner, og er saledes risikom-essigt eksponeret mod cendrlnger til den forventede levealder blandt medlemmerne. Penslonskassen er en solldarisk ordning mod invaliditetsdcekning uden krav om helbredsoplysnlnger ved optagelse, sa lecngc mcdlcmmet eromfattet af en af de omfattede faggrupper. Penslonskassen cr rislkomassslgt eksponeret mod udvlkllngen I f0itldsponsioncrlngcn af medlemmerne. Penslonskassen overvager udviklingen I de forsikringsmcessige risici ta?t, og hensffitter 1 henhold til Flnanstilsynets levetldsbenchmark. Penslonskassen for Sygeplejerskcr og LKgesekretcerer

44 Arerappoit Outsourcing Penslonskassen anvender outsourcing i v^esentligt omfang. Det er direkte outsourcing til PKA A/S, der igcn har vidcrcoutsourcet en stor del af drlften til Forca A/S. Administration ap ejendomsinvesteringer er outsourcet til DEAS A/S. Risikoen styres I form af kontrollcr og serviceieveranceaftaler. Solvens II Pr. 1. januar ^0,16 tradte Solvens 11 rcglcrne I krart, og der er 1 dcnnc forblndelse udstedt nye regnskabsrcglcr, som sikrer en haj grad af konsistens mellem opg^relser til solvensformal og opgwrelser til regnskabsmsssige formal. Overgangcn til nye regnskabsregler indebcerer blandt andet, at medlemsadfccrd skal indrcgnes i penslonshensceltelserne, og at der skal anvendes en diskonteringsrentekurve Opgjort af den europ^iskc tilsynsmyndighcd EIOPA, Penslonskassen har anssgt og opnaet tllladelse til at anvende et tillceg til kuruen, det sikaldte VA-tlll<Eg. KapltalfoHiold Egcnkapitalen er I 2016 forget med 1.370,3 rnio. kr. til 20.6'/g/6 mlo. kr. Kapitalgrundlaget udg<ar herefler ,0 mio. kr. mod J9.973,5 mio. kr. i Solvcnskravct SCR er opgjort efter standardmodellen. Pr. 1. januar 2016 erscr opgjort til 4.711,4 mlo. kr. og udg0r ultimo ,2 mlo. kr. Ny regnsl<absbekeiidtg0rel5e Flnanstllsynet har udstedt ny regnskabsbekendtg0relse gteldende fra /tndringernc pavlrker kun I begranset omfang pcnsionskassen. Bonuspolitik Pensionskassens bonuspolitik er rammebascrct og skal tilstr^be, at der cr cn stabil udvlkllng over tid i medlemmernes pensioner sa penslonerne s vldt mullgt bevarer deres kubekraft. Herved er der Ikke taget stilling til, at der skal ske en regulering hvert ar, der sikrer kwbekraften. Det, der tilstrecbes er, at udviklingon af penslonerne slkres ps sigt. Llgeledes er det et udgangspunkt for bonuspolllikken, at krav om udvlkling af penslonerne forudscetter et rlmeligt niveau af pensionen, der skal reguleres. Salcdcs vil pensioner, der prim«it cr baseret pa en h0j rente og/eller forudseetnlnger om kortere levealder, Ikke nodvendlqvis skulle reguleres med de nuvaerende renteforhold og aktucllc forudssetninger om levealder. Egenkapitalen I pensionskassen ejes af medlemmerne. Prlnclpperne for fordeling af Irets resultat mellem pcnsionshenscettelserne og egenkapitalen er derfor ikke af neer samme betydning I cn pensionskasse som I en livsforslkringsvlrksomhed. Resultatet I en pensionskasse tllgsr I sin helhed altid medlemmerne. Henssettelser til pensionsaftaler Hens^ttelserne til penslonsaftaler er I 2016 fomget med 7.388,0 mlo. kr. til ,3 mlo. kr. Usikkerhed ved indregning og moling Ved udarbejdelsen af Srsrapporten forelages en rakke skfln og vurderlnger om fremtidlge forhold, som har indflydelse pa den regnskabsmccssige veerdi af aktlver og forpllgtelser. De Vcesentligste omrlder omfatter de pensionsmaesslge forpllgtelser samt v^erdianscettelse af unoterede alternative Invcsterlnger og ejendommc. Ledelsen vurderer, at dc anvendte forudsastninger er forsvarlige men forbundet med en vis usikkerhed. Fplsomhedsoplysnlnger for en reekke af de anvendte forudseetnlnger frerngar af note 1ft, Forventningor til fremtidon I savel USA som Europa forventes veeksten og Inflatlonen fortsat at stlge moderal, samtldig med at arbejdslosheden vil falde. Stlgende Inflation vll give anledning III mlndre stramninger af pengepolltikken i bade USA og Europa. Politisk er der dog en raskkc begivenheder, der lean give anledning til uro pa dc finansielle markeder. Pensionskassen for Sygepiejersker og Lo:gesckret -nr

45 8 Arsrapport 7016 For det farste er del endnu usikkert, hvilken politik den ny amerikanskc rcgering vil f0rc. Det gcelder for bade udenrigs- og handelspolitlkken, samt den 0knnomlske politik. Gennefnf0res eksempems handelssanktloner mod Mexico og Klna, vil det medfore en lavere global veekst. Cn st0rre finanspolltlsk ekspansion vll formcntlig mcdf0rc 0gct Inflation, og dcrmed yderllgere rentestlgninger udover dem der I ojebllkket er forventet I de amerlkanske obllgatlonsmarkeder. Del vil have st0rsl pavlrknlng pa koitc renter, mens de lange renter vil pavirkes mindre. For det andet er der valg I Frankrlg, Holland og Tyskland. I f0rste omgang er det valget I Frankiig I forsret, dor tiltrcckker sig opmcerksomhed i forhold til det h0jreorienterede parti Front Natlonales mullgheder for at vlnde prasildentposten. I alle de nsevnte lande er der dog mullghed for valg af mere natlonallstlskc partler, som, KtlllaBg til Brexit, kan udfordrc EU's sammenh^ngskraft. Penslonskassen er robust og star godt rustet i forhold til dissc udfordrlngcr. Haendelser efter balancedagen Dor har ikkc vserot begivenheder cftor statusdagen, som har vasentllg Indflydelse pa penslonskassens og koncernens okonomt'ske forhold. Penslonska^en for Sygeplejersker oy Lceyesekrelcerer

46 Arsrapport 2016 Ledelseshverv DireUtionens ledelseshverv erf0lgende: Admlnistrerende direkt0i' Peter Damgaard Jensen Adm. Dlrckt0r I PKA A/S Adm. Direkt0r I tre penslonskasser, der er admlnlstreret af PKA Adm. Dircktsr i pcnsionskassernes cjcndomsaktlcsclskaber Bestyrelsesformand i PI<A+ Pension Forsikringsselskdb A/S Bcstyrelsesformand i A/S Kjsbcnhavns EJendomsselskab Bestyrclscsformand i Forstedernos Ejendomsaktieselskab Bestyrelsesformand I PKA AIR A/S Bestyrelscsformand I Poppelstykket J2 A/S Bestyrelsesformand I PKA Skejby Komplementar ApS Bcstyrelsesformand I PKA Skejby P/S Nasstformand I Forca A/S Bestyrelscsmcdlcm i Forsikringsorganisationcrncs Fcellessekretarlat F.M.B.A. Bestyrelsens ledelseshverv er f0lgende: Bestyrelsesformand Bent Hansen Bestyrelsesformand I penslonskassernes Administration A/S Bestyrelsesmedlem i Fonden bag udstllllng af skulpturcr ved Aarhusbugten Bestyrelsesmedlem I Fonden Aarhus 2017 Bestyrelsesmedlem i Grenaa Havn A/S Ncestformand Grete Chrlstensen Neestformand i Pcnsionskassernes Administration A/S Bestyrelsesformand I Korbrugsforenlngen af 1886 Bestyrelsesformand i Sygcplejcrskernes Fritidsboliger A/S Bestyrelsesformand I A/S Knudemosen Neestformand I Hotel Koldingfjord A/S Bestyrelsesmedlem I I.an og Spar Bank A/S Bestyrelsesmedlem Mogens Eduard Jespersen Bestyrelsesmedlem Penslonskassernes Administration A/S Dlrektlon MJ Autoservice Holding ApS Bestyrelsesmedlem Cemtec Fonden Bestyrelsesmedlem Dorte Steenberg Bestyrelsesmedlem I Sygeplejerskernes Fritidsboliger A/S Bestyrelsesmedlem Jette S0gaard Nlssen Bestyrelsesmedlem 1 Penslonskassernes Administration A/S 0vrige medlernmer af bestyrelsen bar ingen yderligeie ledelseshverv. Pensionskar.sen for Sygeplejerskur oy LceyesekreUercr

47 10 Arsrapport 2016 LedelsespStegning VI har dags dato behandlet og godkcndt arsrappotten for regnskabssret 1. januar dcccmber 2016 for Penslonskassen for Sygcplcjersker og Lcegesekretcerer. Arsrapporten aflazgges i ovgrcnsstemmf:lr.e med lov orn finanslet virksomhed. DeL er vores opfatfelse, at koncernrcgnskabet og irsregnskabet giver et retvisende biliede af koncernens og penslonskassens aktlvcr og passiverog fltiansielle stilling pr. 31. dcccmbcr 2016 og resultatet af kon cernens og penslonskassens aktlvlteter for regnskabs^ret 1. januar -31. december 2016'. Ledelsesberetningen indeholder efter vores opfattclsc ct rctvlscndc billede for udvlkllngen I koncerncns og pensionskassens aktlvlteter og 0konomiskc forhold, arets resullater og koncernens og penslonskassens flnansielie stilling samt en beskrlvelse af Vcesentlige risicl og usikkerhedsfaktorer, som koncernen henholdsvis penslonskassen stir over for. Arsrapporten indstilles III generalforsamlingens godkendclsc. Hcllciup, den 23. marts 2017 Direkti llellerup, don 23. marts Henrik Thorup Gamst (4mA F-d(<i^i_iejipers6T^_ IMathali Schaap Degn Dorte Steenbcig Jette Ssgaard Nissen C. Birgltte Olsen Tausen Penslonskassen for Sygepiej^rsker og Lrrgesekretaerer

48 Arsrapport 2016 II Den uafhsengige revisors revisionsp^tegning Til medlemmerne i Pensionskassen for Sygeplejersker og Lcegesekretferer Konklusion Vi har revidcrct koncernregnskabct og arsregnskabct for Pensionskassen for Sygcplejersker og Leegcsckre- Lcerer for regnskabssret 1. januar dcccmber 2016, der omfatter resultatopg^relse og totallndkomstopgorclse, balance, egenkapitalopgerelse og noter, herunder anvendt regnskabspraksls, for ssvel koncernen sorn pensionskassen. Konccrnregnskabet og arsregnskabet udarbejdes after lov om flnansiel vlrksomhed. Det er vores opfattelse, at konccrnregnskabet og arsregnskabet giver et retvlsende blllede af koncernens og pensionskassens aktlver, passiver og finansicile stilling pr december 2016 samt af resultatet af koncernens og pensionskassens aktlvlteter samt koncernens pengestr^inme for regnskabsaret 1. januar december 2016 i overensstemmclsc med lov om flnansiel vlrksomhed. Grundlag for konklusion VI har udf0rt vores revision 1 overcnsstemmelse mcd internationdle standardcr om revision og de yderligere krav, der er gceldende I Danmark. Vores ansvar Ifylge dtsse standarder og krav er na^rmere beskrevet i revlslonspategningens afsnit 'Revisors ansvar for revisionen af koncernregnskabct og arsregnskabet'. VI er uafh^ngige af koncernen I overensstrmmrlse med intcrnatlonale etiske regler for revfsorer (lesba's Etiske regler) og de yderllgere krav, der er gaaldende I Danmark, llgesom vi har opfyldt vores etiske forpligtelser I henhold til disse regler og krav. Dct or vores opfattelse, at det opnaede revisionsbevis er IIIsbcekkellgt og egnel som grundlag for vores konklusion, Ledelsens ansvar for koncernregnskabet og Arsregnskabet Ledelsen har ansvaret for udarbejdelsen af et koncemregnskab og et Srsregnskab, der giver et retvisende blllede 1 overcnsstcmmclse mcd lov om finanslel vlrksomhed. Ledelsen har endvidere ansvaret for den Interne kontrol, som ledelsen anser for n0dvendlg for at udarbejde el koncemregnskab og et Srsregnskab uden Vccsentlig fej I information, uanset om denne skyldes besvigclscr oiler fejl. Vcd udarbejdelsen af konccrnregnskabet og arsregnskabet er ledelsen ansvarlig for at vurdere koncer nens og pensionskassens evne til at fortssette driften, at opl^se om forhold vedr0rende fortsat drift, hvor dette er relevant, samt at udarbejde koncernregnskabct og arsregnskabet pa grundlag af regnskabsprincippet om fortsat drift, medmlndre ledelsen enten har til henslgt at likvidere pensionskassen, indstille driften eller Ikke har andet reaiistisk alternatlv end at gsre dette. Revisors ansvar for revisionen af koncernregnskabct og Srsregnskabet Vores rricil er at opna hdj grad af sikkerhed for, om koncernregnskabct og arsregnskabet som'hdhed er uden vcesentlig fejlinformatlon, uanset om dette skyldes besvlgelser eller fejl, og at afglve en revlslonspa- Legnlng med en konklusion. Hoj grad af sikkerhed er et h0jt niveau af sikkerhed, men er ikke en garanti for, at en revision, der udfflres I overcnsstemmelse med Internationale standarder om revision og de yderligere krav, der er ga?ldende I Danmark, altid vll afdeekke vassentllg fejlinformatlon, nsrssdan findes. Fejlinformationer kan opsta som f0lge af besvlgelser eller fejl og kan betragtes som v^scntlige, hvis det med rimelighed kan forventes, at do enkeltvis cilcr samlet har indflydelse pa de 0konomlske beslutnlnger, som regnskabsbrugerne tr»ffer pa grundlag af konccrnregnskabet og arsregnskabet. Som led I en revision, der udfores I overensstemmelse med Internationale standarder om revision og de yderllgere krav, der er go^ldcnde I Danmark, foretager vi faglige vurdcringcr og opretholder professionel skepsis under revisionen. Herudover: Idcntifir.nrer og vurderer vi rlsikoen for v«sentllg fejlinformatlon I koncernregnskabet og Srsregnskabet, uansel om denne skyldes besvlgelser eller fejl, udformer og udf0rer revisionshandlingcr som rcaktion pa dissc risici samt opnar revisionsbevis, der cr tilstrffikkellgt og egnet til at danne grundlag for vores konklusion, Rlsikoen for Ikke at ojxlage v^senlllg fejlinformatlon forarsaget af besvlgelser er h0jerc end ved Vcesentlig fejlinformation forarsaget af fejl, idet besvlgelser kan opfatte sammensvaergelser, dokumentfalsk, bevidste udoladplser, vildledning eller tllsldesaettelse af Intern kontrol. OpnSr vl forstaelse af den Interne kontrol med relevans for revisionen for at kunne udformc rcvlsionshandlinger, der er passende cfter omst<endighcdcrnc, men ikke for at kunne udtrykke en konklusion om effcktivitcten af koncernens og sclskabets interne kontrol, Tager vi stilling til, om den regnskabspraksls, som er anvendt af ledelsen, er passende, samt om de regnskabsniccssigc sk0n og tilknyttede oplysningcr, som ledelse har udarbejdet er rlmellge. Konkluderer vl, om ledelsens udarbejdelse af koncernregnskabet og arsregnskabet pa grundlag af regnskabsprinclppet om fortsat drift er passende, samt om der pa grundlag af det opnaede revisionsbevis er veesentlig usikkerhed forbundet med beglvenheder eller forhold, der kan skabe betydelig tvivl om kon cernens og pensionskassens evne til at fortsa^tte driften. Hvis vi konkluderer, at der er cn vcesentlig Pensionskassen for Sygeplejersker oy Lceyesekreteerer