The year 2009 was a successful year for Hartmann. Despite unfavourable exchange rates at the European markets, we came a step closer to reaching our profit margin target of 10% in 2010. We continue to focus on making progress in Europe and North America through continual efficiency enhancing and optimisation initiatives, strongly supported by our market position as one of the world's leading suppliers of sustainable moulded-fibre egg packaging. Peter Arndrup Poulsen, CEO, on the Group's performance in 2009: In 2009, we succeeded, quarter by quarter, at improving earnings through continuous and focused efforts, and we met our expectations for the year. We are pleased to note that a major benefit of Hartmann's lead product - moulded-fibre egg packaging - is its limited sensitivity to cyclical fluctuations, and it was therefore unaffected by the general global crisis. We were, however, hit by the crisis when it came to currency translation, which reduced earnings by DKK 43 million. In the first quarters of the year, in particular, we were adversely affected by unfavourable developments in the currencies that are most important to Hartmann. As a result, the positive effect of the '10 in 10' initiatives in our European business was reduced. We see a positive effect of growing awareness of sustainability, including sustainable packaging. Hartmann is at the forefront of developments in this area, which is an integral part of our business model and has been so for many years. Peter Arndrup Poulsen on expectations for the future: Our results in 2009 provide a solid basis for achieving our strategic goals in the coming years. We will maintain our target of a profit margin in the region of 10% in 2010. In the period 2011-2013, we will ensure annual organic revenue growth at an average rate of about 2% and at a minimum retain a profit margin in the region of 10%. We will ensure continuous improvement of the free cash flow and an attractive return on invested capital (ROIC 15-20%). At the same time, we will distribute annual dividends at a minimum of approximately 30% of the profit for the year during the strategy period. We will expand our market leadership position and increase our long-term competitive strength, and new products and new services, among other things, will create a basis for improved earnings for our customers and for us. For additional information, please contact: Peter Arndrup Poulsen Chief Executive Officer Tel.: +45 45 97 00 00 Mobile: +45 51 51 40 69 2009 IN BRIEF Revenue and profit In 2009, the Group met its forecasts for revenue and profit from operations. The Group achieved a profit margin of 4.9% (before special items: 5.7%). The effects of the '10 in 10' plan were clearer than ever in the fourth quarter of 2009 with a profit margin before special items of 10.4%. Quarter by quarter, the final implementation of the many activities under the '10 in 10' plan reflected positively on operations. However, the year was severely affected by unfavourable exchange rates compared with 2008. Hartmann generated total revenue of DKK 1,380 million for 2009 (2008: DKK 1,491 million). The Group reported special items of DKK 12 million for 2009 due to management changes in the European organisation. The Group reported an operating profit before special items of DKK 79 million for 2009 (2008: DKK 91 million) and an operating profit of DKK 67 million (2008: DKK 66 million). Profit for the year increased significantly to DKK 36 million (2008: a loss of DKK 3 million). The positive trend was primarily driven by lower financial income and expense, due to a combination of lower net interest-bearing debt, a lower interest level and positive value adjustments. Egg Packaging Europe Egg Packaging Europe generated revenue of DKK 1,100 million for 2009 (2008: DKK 1,142 million). The decline in revenue was mainly due to unfavourable developments in exchange rates (DKK 75 million). Operating profit before special items was DKK 109 million (2008: DKK 118 million). Operating profit was adversely affected by developments in exchange rates (DKK 52 million) and positively affected by underlying operational improvements of DKK 43 million resulting from the completion of the activities of the '10 in 10' plan. Operating profit was DKK 97 million (2008: DKK 118 million). Egg Packaging North America Egg Packaging North America made advances and its revenue grew by 33% to DKK 163 million for 2009 (2008: DKK 123 million). The business area reported an operating loss before special items of DKK 7 million for 2009 (2008: a loss of DKK 27 million) and an operating loss also of DKK 7 million (2008: a loss of DKK 21 million). The development was attributable to increased volumes, a more favourable hedging and an improved product and price mix as a result of an increase in the share of high-value products. Average hedging for 2009 was arranged at the rate of 0.92 against 1.04 in 2008 (a positive effect of DKK 9 million). Industrial Packaging Industrial Packaging reported revenue of DKK 48 million for 2009 (2008: DKK 126 million). Operating profit before special items came to DKK 10 million for 2009 (2008: DKK 29 million). Operating profit for the same period was DKK 10 million (2008: DKK 0 million). The decline in revenue and earnings is a result of the largest customer of the business area changing its packaging strategy, replacing moulded-fibre packaging with other types of material. The sales organisation will be keeping a close eye on market trends. Nevertheless, the industrial packaging activities are believed to be at a significantly lower level going forward. Other business areas Other business areas reported revenue of DKK 69 million for 2009 (2008: DKK 100 million). The change was primarily attributable to declining revenue in Hartmann Technology. The business area reported an operating loss of DKK 34 million (2008: a loss of DKK 19 million). Maintaining the forecast of '10 in 10' Hartmann expects an unchanged revenue level of about DKK 1,400 million for 2010. The profit margin (EBIT) is expected to increase significantly to a level of 10% due to continued earnings growth in Europe and North America. Strategy period 2011-2013: 'From Good to Great' In the period 2011-2013, Hartmann will ensure organic revenue growth at an average rate of about 2% and at a minimum retain a profit margin in the region of 10%. This target will be achieved through a number of strategic measures in the two business areas in Europe and North America. Strategic initiatives in Europe in 2011-2013: Strengthened market offering Operational excellence Competitive cost level Strategic initiatives in North America in 2011-2013: Continued focus on increasing sales of high-value products Continued focus on improving capacity utilisation Distribution of dividends At the annual general meeting to be held on 20 April 2010, the Board of Directors will recommend that, due to the profit for the year, dividends of DKK 1.50 per share be distributed, representing approximately 30% of the profit for the year. [HUG#1394633]