Hartmann receives advisory opinion from the Secretariat of the Danish Energy Regulatory Authority on pricing of district heating to Tønder Fjernvarmeselskab

The Secretariat of the Danish Energy Regulatory Authority ("The Secretariat")
has passed an advisory opinion that establishes guidelines for settling prices
of district heating between Hartmann and Tønder Fjernvarmeselskab from 2003 and
onwards. The advisory opinion follows from Tønder Fjernvarmeselskab's filing of
a complaint with the Danish Energy Regulatory Authority in 2008. Hartmann
disagrees with the considerations in the advisory opinion that underlie the
Secretariat's price determination for district heating from Hartmann's combined
heat and power plant.


Further developments of the case
The Secretariat's advisory opinion forms the foundation for mandatory
negotiations between Hartmann and the Secretariat, according to the Danish Heat
Supply Act, Article 21, subsection 4. Negotiations are expected to be completed
during the first quarter of 2015, and if they do not lead to agreement the
Secretariat's advisory opinion will underlie the decision in the case. If so,
Hartmann intends to file a complaint with the Energy Board of Appeal.


Potential financial consequences
If the Secretariat's advisory opinion underlies the final conclusion of the
case, Hartmann will incur special costs at the level of DKK 50 million for
reimbursement to Tønder Fjernvarmeselskab for the period 2003-2014.

Additionally, a reassessment of the valuation of Hartmann's combined heat and
power plant based on the Secretariat's advisory opinion will result in special
costs at the level of DKK 17 million.

If the settlement of pricing of district heating in the Secretariat's advisory
opinion is applied, increased annual energy costs of around DKK 5 million will
furthermore be imposed on Hartmann's production of egg packaging at the factory
in Tønder.


Outlook for 2014 maintained
The pending case does not affect Hartmann's performance in 2014. Hartmann thus
maintains its expectations of revenue of DKK 1.6-1.7 billion and a profit margin
of 9.0-10.5% in 2014.

Special costs are still expected to amount to approximately DKK 7 million in
2014.


For further information, please contact:
Ulrik Kolding Hartvig
CEO
Telephone: (+45) 45 97 00 57


[HUG#1878713]