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Group transfer pricing policy

Provided by the group finance director. SHA-256 6b4e1e85c558e9bff699eaa1cfbfdda685444c67459ff79c0783c46761796864 Matches the file as filed

MERIDIAN ORCHARD GROUP — TRANSFER PRICING POLICY (invented for the demonstration)
1. Principle. Group companies deal with each other on arm's length terms.
2. Shared services. Meridian Orchard Shared Services Ltd charges its cost base plus a mark-up of 8% on net cost, invoiced monthly, payable in 30 days.
3. Intra-group financing. Meridian Orchard Treasury Ltd lends to group companies at a rate set by reference to the borrower's standalone credit standing. Interest is payable quarterly in arrears.
4. Distribution. Meridian Orchard Distribution Ltd buys finished goods from Meridian Orchard Foods Hellas S.A. so that its operating margin is 3.5% of sales; invoices are payable in 45 days.
5. Brands. Meridian Orchard Brands S.à r.l. licenses the brands to distributors for a royalty on net sales, payable in 60 days.