February 5, 2009
SHAREHOLDER LETTER (On February 5, 2009, forwarded by ordinary post to all
shareholders in Auriga Industries A/S)
NEW BUSINESS PLAN IN MARCH
Auriga aims to provide investors, share analysts and other stakeholders with
financial information and information about operations, objectives and
strategies as well as other relevant aspects in the Auriga group. The
shareholder letter is a new initiative to ensure a satisfactory information
level and the content will be current issues and news. In future, shareholder
letters will replace the Auriga magazine.
We regret that we had to release the announcement last Friday (January 30,
2009) stating that the outlook for 2008 cannot be reached. Like many other
global companies, the financial crisis and the generel decline in the economy
has also impacted Cheminova in the last months of 2008.
CONSIDERABLE GROWTH IN REVENUE AND PROFIT BEFORE TAX IN 2008
In 2007, Auriga Industries A/S divested Hardi International A/S and Skamol A/S
and thus became a single-stringed group with focus on Cheminova. Despite the
revised outlook of the accounts of 2008, a considerable growth is expected
relative to 2007 in Cheminova with revenue increase of 30 per cent and an
improvement of profit before tax from DKK 91 million to approximately DKK 400
million. Consequently, Cheminova reached the highest revenue and the
second-best result ever in 2008.
GROWTH TARGETS OF THE BUSINESS PLAN ALREADY REACHED IN 2009
The ambition in the Cheminova Business Plan 2005-2010 was to increase revenue
with 50 per cent from 2005 to 2010, ie. from approximately DKK 4 billion in
2005 to approximately DKK 6 billion in 2010. Already in 2009, this growth
target is expected to be reached and consequently, a new Business Plan is now
under preparation and expected to be released together with the Annual Report
on March 20, 2009.
UNCHANGED SHARE PRICE RELATIVE TO EARLY 2008
In 2008, considerable share price fluctuations were seen in the Auriga share.
Today, the share price is almost at the same level as at the beginning of 2008
which is unfortunately not the case for several other Danish shares.
We continously strive to strengthen Auriga and Cheminova to the benefit of
shareholders and other stakeholders.
Kind regards,
AURIGA INDUSTRIES A/S
Kurt Pedersen Kaalund
President & CEO
