Chr. filtenborgs Plads 1 · DK-8000 Aarhus C Phone +45 86 11 22 22 · telefax +45 86 11 33 22 e-mail [email protected] · www.schouw.dk ANNUAL REPORT 2010 ANNUAL REPORT 2010 Content ADDreSSeS BioMar Group A/S Aktieselskabet Schouw & Co. Værkmestergade 25, 6 Chr. filtenborgs Plads 1 DK-8000 Aarhus C DK-8000 Aarhus C Phone +45 86 20 49 70 Phone +45 86 11 22 22 e-mail [email protected] telefax +45 86 11 33 22 www.biomar.com e-mail [email protected] www.schouw.dk Company registration (CVR) Fibertex Personal Care A/S no. 63965812 Svendborgvej 2 DK-9220 Aalborg Øst Phone +45 72 29 97 22 Martin Professional A/S e-mail [email protected] olof Palmes Allé 18 www.fibertexpersonalcare.com DK-8200 Aarhus n Phone +45 87 40 00 00 e-mail [email protected] Fibertex Nonwovens A/S www.martin.com Svendborgvej 16 DK-9220 Aalborg Øst Phone +45 96 35 35 35 Xergi A/S e-mail [email protected] Hermesvej 1 www.fibertex.com DK-9530 Støvring Phone +45 99 35 16 00 e-mail [email protected] Consolidated report Portfolio companies Financial statements P. Grene A/S www.xergi.com Kobbervej 6 1 Intro 20 Global expansion 48 CONSOLIDATED FINANCIAL STATEMENTS DK-6900 Skjern 2 Key figures 22 BioMar 49 Statement of income and comprehensive income Phone +45 96 80 85 00 Incuba A/S 3 Highlights 24 BioMar in Costa rica 50 Balance sheet e-mail [email protected] Chr. filtenborgs Plads 1 4 our businesses 26 fibertex 52 Cash flow statement www.grene.dk DK-8000 Aarhus C 6 Management’s report 28 fibertex Personal Care in Malaysia 53 Statement of changes in equity Phone +45 86 11 22 22 8 Income statement and cash flows 30 fibertex nonwovens in South Africa 54 notes e-mail [email protected] 10 Balance sheet 32 Grene Hydra-Grene A/S www.schouw.dk 11 outlook 34 Grene in russia 74 PARENT COMPANY FINANCIAL STATEMENTS Bækgårdsvej 36 12 Board of Directors 36 Hydra-Grene 75 Statement of income and comprehensive income DK-6900 Skjern 13 executive management 38 Hydra-Grene in China 76 Balance sheet Phone +45 97 35 05 99 14 Investor information 40 Martin 77 Cash flow statement e-mail [email protected] 16 Management Bodies 42 Martin in uSA 78 Statement of changes in equity www.hydra.dk 18 Code of Corporate Governance 44 Xergi 79 notes 19 the financial reporting process 46 financial investments 47 Incuba 88 Accounting policies Statements 94 Statement by the board of directors Published March 2011 by Aktieselskabet Schouw & Co. translation: fokus translations and the management reportagephotos: Morten fauerby, www.mortenfauerby.dk this publication is a translation of the statutory Danish Annual report 2010. 95 Independent auditor’s report Portraits: lorentsen fotografi, www.lorentsen.dk the original Danish text shall be controlling for all purposes, the pictures in the Annual report are taken in Denmark. and in cases of discrepancy, the Danish wording shall be applicable. Design, production and print: Datagraf A/S Content ADDreSSeSIntro 1 Active ownership supporting global opportunities BioMar Group A/S Aktieselskabet Schouw & Co. Værkmestergade 25, 6 Chr. filtenborgs Plads 1 DK-8000 Aarhus C DK-8000 Aarhus C Phone +45 86 20 49 70 Phone +45 86 11 22 22 e-mail [email protected] telefax +45 86 11 33 22 www.biomar.com e-mail [email protected] www.schouw.dk Company registration (CVR) Fibertex Personal Care A/S no. 63965812 Svendborgvej 2 DK-9220 Aalborg Øst Phone +45 72 29 97 22 Martin Professional A/S e-mail [email protected] olof Palmes Allé 18 www.fibertexpersonalcare.com DK-8200 Aarhus n Phone +45 87 40 00 00 e-mail [email protected] Fibertex Nonwovens A/S www.martin.com Svendborgvej 16 DK-9220 Aalborg Øst Phone +45 96 35 35 35 Xergi A/S e-mail [email protected] Hermesvej 1 www.fibertex.com DK-9530 Støvring Phone +45 99 35 16 00 e-mail [email protected] Consolidated report Portfolio companies Financial statements the year 2010 was one of progress, but We exerciseP. Grene active A/S ownership by con- ue to growwww.xergi.com the scope of our international also one with a number of challenges. We stant focusingKobbervej on three 6 main areas for our business activities. We see increasing the 1 Intro 20 Global expansion 48 CONSOLIDATED FINANCIAL STATEMENTS are nearing the end of the global economic businesses:DK-6900 profitable Skjern growth, efficient use level of internationalisation of our Group 2 Key figures 22 BioMar 49 Statement of income and comprehensive income crisis, although several of our businesses of capital andPhone being +45 primed96 80 85 for00 the future. as the Incubabest way A/S to secure value creation 3 Highlights 24 BioMar in Costa rica 50 Balance sheet are still feeling its effects. In recente-mail years, [email protected] we have reduced our and developmentChr. filtenborgs going Plads forward. 1 4 our businesses 26 fibertex 52 Cash flow statement Prospects are positive for the next working capitalwww.grene.dk substantially and generally 2011DK-8000 will be Aarhus a year Cin which we will 6 Management’s report 28 fibertex Personal Care in Malaysia 53 Statement of changes in equity couple of years, and we see good oppor- achieved more efficient capital utilisation. again bePhone looking +45 86ahead, 11 22 trying22 to identify 8 Income statement and cash flows 30 fibertex nonwovens in South Africa 54 notes tunities for sustaining improvements and We have given priority to improving profit- winninge-mail strategies [email protected] and opportunities. 10 Balance sheet 32 Grene growth. ability ratherHydra-Grene than increasing A/S revenue. We willwww.schouw.dk continue to develop our focused, 11 outlook 34 Grene in russia 74 PARENT COMPANY FINANCIAL STATEMENTS As a whole, Schouw & Co. emerged from DespiteBækgårdsvej the very difficult 36 global eco- large and powerful portfolio companies 12 Board of Directors 36 Hydra-Grene 75 Statement of income and comprehensive income 2010 with very satisfactory improvements nomic conditions,DK-6900 weSkjern have made quite from their positions among the very best 13 executive management 38 Hydra-Grene in China 76 Balance sheet to both revenue and earnings, but many of substantialPhone investments +45 97 35 in 05 new 99 production of their market peers. 14 Investor information 40 Martin 77 Cash flow statement our businesses still have a substantial po- capacity, ine-mail r&D [email protected] product innovation, We will concentrate our manage- 16 Management Bodies 42 Martin in uSA 78 Statement of changes in equity tential to enhance their performance. We quality developmentwww.hydra.dk and in developing ment resources on continuing to develop 18 Code of Corporate Governance 44 Xergi 79 notes have ambitious long-term targets for all of our organisations and employees. We have and improve our businesses’ strategic 19 the financial reporting process 46 financial investments our businesses, and we make a consistent made the fully deliberate choice of future- platforms, and we will provide support 47 Incuba 88 Accounting policies and dedicated effort to meet them. proofing our business platforms and prim- to invest in both organic and acquisitive Making sure that we operate all of our ing them for continued development, even growth while also maintaining efficient businesses efficiently and that they adapt during times of crisis. the result is that use of capital and tight control of costs Statements both to market conditions and general today our businesses are strongly posi- and profitability. economic developments is a big priority tioned and they have the capability to move 94 Statement by the board of directors for us. In recent years, we have trimmed to new marketsPublished and March attract 2011 by Aktieselskabet new customers. Schouw & Co. translation: fokus translations and the management and aligned our businesses, so that they During reportagephotos:2010, we expanded Morten fauerby, considerably www.mortenfauerby.dk Jens Bjerg Sørensen this publication is a translation of the statutory Danish Annual report 2010. 95 Independent auditor’s report are now all strongly positioned strategi- and made Portraits:substantial lorentsen investments fotografi, www.lorentsen.dk outside President the original Danish text shall be controlling for all purposes, the pictures in the Annual report are taken in Denmark. and in cases of discrepancy, the Danish wording shall be applicable. cally, operationally and financially. Denmark, Design,and in production the future and print: we Datagraf will contin A/S - 2 Key fIGureS Key figures GROUP SUMMARY (DKK million) 2010 2009 2008 2007 2006 Revenue 9,450.8 8,439.7 9,821.2 8,150.3 7,370.2 EBITDA 752.8 587.9 756.5 764.3 788.8 EBIT before goodwill impairment 368.6 192.4 337.6 438.8 471.5 Operating profit (EBIT) 368.6 190.0 124.4 438.8 471.5 Profit/(loss) after tax in associates (0.6) (11.4) 4.0 (3.0) 4.2 Profit/loss from divestment of equity investments 1.1 0.0 21.4 0.0 282.9 Value adjustment of financial investments** (518.1) 40.6 (871.5) 1,466.8 692.4 Net financials before value adjustment of financial investments (92.2) (117.7) (143.5) (136.5) (102.9) Profit/(loss) before tax (241.2) 101.5 (865.2) 1,766.1 1,348.1 Tax on the profit/(loss) for the year 114.6 (28.5) (38.3) (102.4) (107.9) Profit for the year from continuing operations (126.6) 73.0 (903.5) 1,663.7 1,240.2 Profit for the year from discontinuing operations 166.8 77.9 0.1 19.5 74.6 Profit/(loss) for the year 40.2 150.9 (903.4) 1,683.2 1,314.8 Share of equity attributable to shareholders of Schouw & Co.