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Beiersdorf AG

Quarterly Report May 7, 2009

55_10-q_2009-05-07_c44d9386-ed69-4488-b753-3f4272bf43de.pdf

Quarterly Report

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Interim Report

January – March 2009

NIVEA sets wellness trend: Third NIVEA Haus opened in Berlin.

Contents

  • 03 Business Developments Overview
  • 04 Segment Overview
  • 05 Beiersdorf's Shares

Interim Management Report – Group

  • 06 Results of Operations Group
  • 07 Results of Operations Business Segments
  • 11 Balance Sheet Structure Group
  • 12 Financial Position Group, Employees
  • 13 Other Disclosures
  • 14 Opportunities and Risks, Outlook for 2009

Interim Consolidated Financial Statements

  • 15 Income Statement
  • 16 Balance Sheet
  • 17 Cash Flow Statement, Statement of Recognized Income and Expense
  • 18 Selected Explanatory Notes
  • 19 Financial Calendar, Contact Information

highlights in fi rst quarter

(1) Europe's Consumers Trust NIVEA.

For the ninth time in a row, NIVEA came top of the "Most Trusted Brands" survey conducted by "Reader's Digest" magazine. 31% of all respondents from 16 countries in Europe voted for the iconic brand in the "Cosmetics" category. Top marks were awarded for its good price/performance ratio, excellent quality, and image.

(2) Labello Celebrates 100 Years of Success.

To mark the centennial of the world's first lip care stick, an anniversary edition of the classic blue Labello has been issued. In addition, a multimedia exhibition toured 13 cities in Germany, showing how the country's market leader in the lip care segment has developed from the original version to the current product line.

(3) New Design for NIVEA Body Care.

New products, a new design, and new communication – NIVEA Body Care has been given a more cosmeticsoriented and emotional image. The new bottle shape is modeled on the gentle curves of a woman's body and is especially designed to appeal much more strongly to its female target group, thus reinforcing the brand's position.

(4) NIVEA FOR MEN targets football fans.

Starting in July 2009, NIVEA FOR MEN will be launching a strategic partnership with the German Football Association: In future, the men's national team will be supplied exclusively with the Beiersdorf brand's body care and face care products. German national trainer Joachim Loew has already been advertising NIVEA FOR MEN products since the end of 2008.

about the cover

NIVEA sets wellness trend: Third NIVEA Haus opened in Berlin.

Following the opening of the NIVEA houses in Hamburg and Dubai in 2006 and 2008 respectively, Beiersdorf opened the world's third NIVEA Haus in Berlin on April 1. On the "Unter den Linden" boulevard, over 500 sqm of space provides time to relax and unwind with brief cosmetic applications that do not need to be booked in advance. The new location further strengthens dialog with consumers in the direct brand environment and sets trends on the growing beauty and wellness treatment market. What is more, Beiersdorf's presence in the German capital underscores its position as one of the world's largest companies for skin and beauty care.

Business Developments – Overview

Beiersdorf impacted by global hesitancy to spend

  • » Consumer sales with an organic development of –0.5% on the previous year's strong level
  • » tesa hit by negative trend in demand from industry
  • » Group EBIT return 10.1%
  • » Consolidated profit after tax €100 million

Outlook for Fiscal Year 2009

  • » Consumer sales on a like-for-like basis slightly in excess of last year
  • » Consumer EBIT margin above 10%
  • » Further difficult environment for tesa

Beiersdorf at a Glance

(in € million, unless otherwise stated)

Jan. 1–Mar. 31, 2008 Jan. 1–Mar. 31, 2009
Sales 1,523 1,438
Change in % (adjusted for currency translation effects) 12.9 –5.7
Change in % (organic) 9.2 –4.0
Change in % (nominal) 9.8 –5.6
Consumer 1,299 1,267
tesa 224 171
Operating result (EBIT) 197 145
Operating result (EBIT, excluding special factors)* 195 145
Profi t after tax 144 100
Return on sales after tax in % 9.4 6.9
Earnings per share in € 0.63 0.43
Gross cash fl ow 170 117
Capital expenditure (including non-current investments) 25 27
Research and development expenses 34 37
Employees (as of March 31) 21,730 21,866

* Excluding special factors due to the realignment of the Consumer Supply Chain (exclusively in Europe).

Segment Overview

Business Developments by Business Segment

Jan. 1–Mar. 31, 2008 Jan. 1–Mar. 31, 2009 Change in %
% of sales % of sales nominal adj. for curr.
trans. effects
1,299 85.3 1,267 88.1 –2.4 –2.5
224 14.7 171 11.9 –23.9 –23.8
1,523 100.0 1,438 100.0 –5.6 –5.7
ebitda
(in € million)
Jan. 1–Mar. 31, 2008 Jan. 1–Mar. 31, 2009 Change in %
% of sales % of sales nominal
Consumer 192 14.9 166 13.1 –14.0
tesa 30 13.3 6 3.9 –77.9
Total 222 14.6 172 12.0 –22.5
operating result
(ebit) (in € million)
Jan. 1–Mar. 31, 2008 Jan. 1–Mar. 31, 2009 Change in %
% of sales % of sales nominal
Consumer 173 13.3 144 11.3 –16.9
Consumer (excluding special factors)* 171 13.2 144 11.3 –16.0
tesa 24 10.8 1 0.7 –95.0
Total 197 13.0 145 10.1 –26.5
Total (excluding special factors)* 195 12.9 145 10.1 –25.8
gross cash flow
(in € million)
Jan. 1–Mar. 31, 2008 Jan. 1–Mar. 31, 2009 Change in %
% of sales % of sales nominal
Consumer 148 11.4 110 8.7 –25.6
tesa 22 10.1 7 3.8 –71.1
Total 170 11.2 117 8.1 –31.6

Business Developments by Region

sales
(in € million)
Jan. 1–Mar. 31, 2008 Jan. 1–Mar. 31, 2009 Change in %
% of sales % of sales nominal adj. for curr.
trans. effects
Europe 1,077 70.7 962 66.9 –10.7 –7.4
Americas 196 12.9 198 13.7 0.7 –3.7
Africa/Asia/Australia 250 16.4 278 19.4 11.4 0.2
Total 1,523 100.0 1,438 100.0 –5.6 –5.7
operating result
(ebit) (in € million)
Jan. 1–Mar. 31, 2008 Jan. 1–Mar. 31, 2009 Change in %
% of sales % of sales nominal
Europe 177 16.4 133 13.8 –24.6
Europe (excluding special factors)* 175 16.2 133 13.8 –23.7
Americas 4 2.1 5 2.5 16.3
Africa/Asia/Australia 16 6.7 7 2.5 –57.5
Total 197 13.0 145 10.1 –26.5
Total (excluding special factors)* 195 12.9 145 10.1 –25.8

* Excluding special factors due to the realignment of the Consumer Supply Chain. Figures in percent are calculated based on thousands of euros.

Beiersdorf's Shares

In the fi rst quarter, the global economy experienced a sharp downturn that could not be averted by global measures taken by central banks and governments. Economic indicators across the board pointed downwards and were repeatedly confi rmed by the performance data for the world's key economies. For example, the International Monetary Fund (IMF) forecast that the US economy will contract by a further 2.6% by the end of 2009, following the 0.8% decline in gross domestic product in 2008. The economy in the United Kingdom also continued to deteriorate at the beginning of the year, after falling in previous quarters. Even the extremely dynamic economies in Asia recorded slowdowns, with some Asian countries even experiencing negative development in the fi rst few months of the year. Only Latin America has seen a somewhat more muted economic downturn to date.

In this environment, the international stock markets were dominated by prolonged high volatility in the fi rst quarter, caused mainly by prolonged and pronounced uncertainty among investors with regard to the severity and duration of the recession. Toward the end of the quarter, share prices picked up on a broad front after the US fi nance ministry announced its buyback program for toxic securities. The DAX also gained some ground during this period, climbing to 4,084 points at the end of the quarter.

As in 2008, Beiersdorf's shares continued to clearly outperform the DAX at the beginning of 2009. The Company published its preliminary results for 2008 at an investor conference in New York in mid-January. Its fi gures were received positively by the markets: The strong growth recorded by the Consumer business segment combined with stable margins attracted a great deal of attention and ensured that the Beiersdorf Group was able to present excellent results despite fl at business in the tesa business segment. These preliminary fi gures were confi rmed at the fi nancial analysts' meeting in Hamburg on February 28 and explained in detail by the Executive Board. Our inclusion in the DAX in December 2008 also meant that analysts and investors showed considerable interest in Beiersdorf's business development in the fi rst quarter. Among other things, this was refl ected in the fact that additional banks started providing coverage of our shares. Market uncertainty about future economic developments resulted in numerous changes in target prices and recommendations for Beiersdorf's shares, which led to a volatile performance by our share price during the quarter. After underperforming the DAX at times in the middle of the quarter, Beiersdorf's shares rallied along with the international stock markets in March, closing Q1 slightly below the index at €33.79.

Beiersdorf.com / IR

Results of Operations – Group Interim Management Report – Group

  • » Sales (organic) 4.0% below prior year
  • » EBIT margin at 10.1%
  • » Profit after tax at €100 million

income statement (in € million)

Group sales, adjusted for currency translation effects and excluding prior year sales by our divestments (BODE Group and Futuro business) decreased by 4.0% in the fi rst quarter. Only adjusted for currency translation effects Group sales fell by 5.7%. The organic trend of the Consumer business segment was 0.5% below the previous year, while tesa recorded a 23.8% decline. At current exchange rates, sales were down by 5.6% as against in the fi rst quarter 2008, at €1,438 million ( previous year: €1,523 million).

Jan. 1–Mar. 31, 2008 Jan. 1–Mar. 31, 2009
Sales 1,523 1,438
Cost of goods sold –478 –459
Gross profi t 1,045 979
Marketing and selling expenses –724 –712
Research and development expenses –34 –37
General and administrative expenses –71 –70
Other operating result –21 –15
Operating result (EBIT, excluding special factors) 195 145
Special factors relating to the realignment of the Consumer Supply Chain 2 -
Operating result (EBIT) 197 145
Financial result 10 3
Profi t before tax 207 148
Income taxes –63 –48
Profi t after tax 144 100
Profi t attributable to equity holders 143 99
Profi t attributable to minority interests 1 1
Basic/diluted earnings per share (in €) 0.63 0.43

The operating result (EBIT) amounted to €145 million (previous year excluding special factors: €195 million). Corresponding EBIT margin was 10.1% (previous year: 12.9%). While maintaining investments in marketing and research and development, cost-saving and cost-reducing measures to safeguard EBIT were initiated.

The fi nancial result amounted to €3 million (previous year: €10 million). Among other things, the decrease is caused by the lower interest level and the switch of a large proportion of bank deposits into securities, where value developments partly do not affect the result until the securities are sold.

Profi t after tax amounted to €100 million (previous year: €144 million); the corresponding return on sales after tax was 6.9% (previous year: 9.4%).

Earnings per share were €0.43 on the basis of 226,818,984 shares (previous year: €0.63).

Results of Operations – Business Segments

Consumer

  • » Consumer business segment on a level with the previous year on a like-for-like basis
  • » Consumer EBIT margin at 11.3%

consumer (Jan. 1–Mar. 31, in € million)

Europe Americas Africa/Asia/
Australia
Total
Sales 2009 834 179 254 1,267
Change (adjusted for currency translation effects) –4.7% –1.6% 5.5% –2.5%
Change (organic) –2.7% 3.5% 5.5% –0.5%
Change (nominal) –8.2% 2.8% 17.4% –2.4%
EBIT 2009 135 4 5 144
EBIT margin 2009 16.2% 2.2% 2.0% 11.3%
EBIT 2008* 157 3 11 171
EBIT margin 2008* 17.3% 2.0% 5.1% 13.2%

* Excluding special factors due to the realignment of the Consumer Supply Chain (exclusively in Europe).

Excluding prior-year sales by the divestments made in 2008 (BODE Group, Futuro business), sales remained stable at the previous year's strong level, recording an organic trend of –0.5%. Only adjusted for currency translation effects sales fell by 2.5% in the fi rst quarter. At current exchange rates, sales in the Consumer business segment amounted to €1,267 million, down 2.4% on the previous year (€1,299 million).

Global NIVEA sales were on a par with the strong in the fi rst quarter 2008. Only NIVEA Bath Care and NIVEA DEODOANT achieved signifi cant growth. Our La Prairie brand in the luxury segment was especially affected by the consequences of the negative economic developments. Sales were well below the previous year. Eucerin recorded clear double-digit growth in the fi rst quarter. Next to the strong performance of the existing range, the launch of the DermoDENSIFYER series was a growth driver, too.

EBIT amounted to €144 million (previous year: €171 million), while the EBIT margin was 11.3% (previous year: 13.2%).

consumer sales in europe (Jan. 1–Mar. 31, in € million)

Germany Western Europe
(excluding Germany)
Eastern Europe Total
Sales 2009 232 460 142 834
Change (adjusted for currency translation effects) –0.2% –8.0% –0.8% –4.7%
Change (nominal) –0.2% –9.0% –16.6% –8.2%

In Europe, sales in the Consumer business segment were down by 4.7% on the previous year (adjusted for currency translation effects). At current exchange rates, sales decreased by 8.2% to €834 million (previous year: €909 million).

At –0.2%, sales in Germany were on a level with the previous year. Adjusted for prior-year sales by the BODE Group and the Futuro business, which were sold at the end of 2008, Beiersdorf recorded sales growth of 7.2% in Germany. Sales of NIVEA Body Care, NIVEA Hair Care, and NIVEA DEODORANT were particularly good. Eucerin and Florena also achieved strong growth rates. However, NIVEA FOR MEN and NIVEA SUN remained below the previous year's levels.

Sales in Western Europe were down by 8.0% on the prior-year fi gure (adjusted for currency translation effects). Adjusted for divestments, the decline amounted to 7.8%. The Nordic/Baltic Group bucked the trend, increasing its sales by 7.9%. While the Benelux/France Group (–3.7%) and Italy (–4.6%) saw a relatively low drop in sales, more pronounced decreases were recorded by the La Prairie Group (–27.4%), Greece (–18.2%), and Spain (–14.9%) in particular. The decline in sales affected almost all NIVEA products and our La Prairie brand. However, Eucerin again achieved double-digit growth.

Sales in Eastern Europe decreased by 0.8% (adjusted for currency translation effects). At –0.2%, the organic trend in our Eastern European sales was on a par with the strong prior-year fi gure. Poland contributed to this with sales growth of +3.6%, while sales by the Russia/Ukraine Group fell by 4.4%. NIVEA DEODORANT, NIVEA Bath Care, and Eucerin recorded growth in this region, while sales of NIVEA FOR MEN and NIVEA Body Care declined.

Consumer EBIT in Europe (excluding special factors) amounted to €135 million (previous year: €157 million). The corresponding EBIT margin was 16.2% (previous year: 17.3%).

consumer sales in the americas (Jan. 1 – Mar. 31, in € million)

North America Latin America Total
Sales 2009 79 100 179
Change (adjusted for currency translation effects) –13.3% 8.6% –1.6%
Change (nominal) –0.7% 5.7% 2.8%

In the Americas region, sales increased by 1.6% (adjusted for currency translation effects). At current exchange rates, sales amounted to €179 million, up 2.8% on the previous year (€174 million).

Sales in North America were down 13.3% (adjusted for currency translation effects) on the prioryear period. Excluding divestment Futuro's prior-year sales, the decline amounted to 5.4%. Our focus categories NIVEA Body Care, NIVEA FOR MEN, and La Prairie suffered from the clear impact of the economic crisis in the USA and recorded a clear double-digit declines in sales in the fi rst two months of the year; however, these were mitigated by a positive trend in March. Eucerin generated a slightly positive growth rate.

In Latin America, we lifted sales by 8.6% (adjusted for currency translation effects). Adjusted for the divestment Futuro's prior-year sales, this growth amounted to 10.7%. We generated doubledigit growth in all our major markets. In addition to the key markets of Mexico (+11.7%) and Brazil (+17.4%), the Andean Group (+14.1%), and Argentina (+12.8%) made especially strong contributions to this growth. In particular, NIVEA DEODORANT, NIVEA Body Care, and NIVEA SUN performed very well in this key region.

Consumer EBIT in the Americas was €4 million (previous year: €3 million). The EBIT margin amounted to 2.2% (previous year: 2.0%).

consumer sales in africa/asia/australia (Jan. 1–Mar. 31, in € million)

Africa/Asia/Australia
Sales 2009 254
Change (adjusted for currency translation effects) 5.5%
Change (nominal) 17.4%

Africa/Asia/Australia achieved sales growth of 5.5% (adjusted for currency translation effects). At current exchange rates, sales amounted to €254 million, up 17.4% on the previous year (€216 million).

NIVEA SUN, NIVEA VISAGE, and our Chinese hair care brand SLEK performed particularly well in this region. Thailand recorded an encouraging growth rate of 13.9%, with NIVEA VISAGE, NIVEA FOR MEN, and Eucerin being particularly successful. The China Group's growth (+12.2%) was driven primarily by NIVEA VISAGE, NIVEA FOR MEN, and our new hair care brand SLEK. Sales in Japan remained constant, with the growth achieved by NIVEA FOR MEN and 8x4 offsetting the decline in sales of NIVEA Body Care and NIVEA Lip Care.

EBIT growth in this region continued to be impacted by increased marketing investments in the Chinese hair care business. EBIT amounted to €5 million (previous year: €11 million). The EBIT margin was 2.0% (previous year: 5.1%).

tesa

  • » tesa business segment reports significant declines in sales
  • » tesa EBIT margin at 0.7%

Beiersdorf.com / tesa

tesa (Jan. 1–Mar. 31, in € million)
Europe Americas Africa/Asia
Australia
Total
Sales 2009 128 19 24 171
Change (adjusted for currency translation effects) –22.2% –19.8% –34.5% –23.8%
Change (organic) –22.2% –19.8% –34.5% –23.8%
Change (nominal) –24.2% –15.6% –27.9% –23.9%
EBIT 2009 –2 1 2 1
EBIT margin 2009 –1.4% 4.7% 8.8% 0.7%
EBIT 2008 18 1 5 24
EBIT margin 2008 10.6% 3.4% 16.8% 10.8%

tesa sales in the fi rst quarter of 2009 were down 23.8% on the previous year (adjusted for currency translation effects). At current exchange rates, tesa achieved sales of €171 million, 23.9% lower than the previous year.

The trend that began at the end of 2008 continued in the fi rst quarter of 2009. The effects of the economic crisis were felt particularly strongly in the industry segment. Sales to customers in the automotive and electrical industry were particularly hard hit. tesa's consumer business was not hit that much.

tesa recorded a drop in sales in all regions.

EBIT in the tesa business segment was €1 million, while the EBIT margin amounted to 0.7%.

Balance Sheet Structure – Group

balance sheet (in € million)
assets Dec. 31, 2008 Mar. 31, 2008 Mar. 31, 2009
Non-current assets 1,167 1,075 1,178
Inventories 634 665 653
Other current assets 2,045 1,235 2,310
Cash and cash equivalents 613 1,227 479
4,459 4,202 4,620
equity and liabilities Dec. 31, 2008 Mar. 31, 2008 Mar. 31, 2009
Equity 2,460 2,191 2,557
Non-current liabilities 599 560 545
Current liabilities 1,400 1,451 1,518
4,459 4,202 4,620

Non-current assets increased by €11 million to €1,178 million, compared to the previous year's level. In the fi rst quarter of 2009, capital expenditure (excluding fi nancial assets) reached €27 million (previous year: €25 million). €18 million (previous year: €20 million) of this fi gure was attributable to the Consumer business segment and €9 million (previous year: €5 million) to tesa. Inventories increased by €19 million to €653 million due to seasonal factors. Other current assets increased to €2,310 million. Compared to the previous year's quarter, Beiersdorf switched €1,029 million of its bank deposits into securities in order to diversify its risk due to the fi nancial crisis. In addition, trade receivables increased compared to year-end due to seasonal factors. Non-current liabilities decreased by €54 million since the year-end, as the fi rst portion of the option for the minority interests in C-BONS Hair Care Group was now shown under current fi nancial liabilities. Furthermore, the growth in current liabilities is due to the operational increase in current provisions and trade payables.

Non-current liabilities

Current liabilities

Financial Position – Group

cash flow statement (in € million)

Jan. 1–Mar. 31, 2008 Jan. 1–Mar. 31, 2009
Gross cash fl ow 170 117
Change in working capital –43 –45
Net cash fl ow from operating activities 127 72
Net cash fl ow from investing activities –1 –144
Free cash fl ow 126 –72
Net cash fl ow from fi nancing activities –9 –67
Other changes –7 5
Net change in cash and cash equivalents 110 –134
Cash and cash equivalents as of Jan. 1 1,117 613
Cash and cash equivalents as of Mar. 31 1,227 479

Gross cash fl ow reached €117 million. The cash outfl ow from the change of working capital amounted to €45 million. The increases in receivables by €155 million and inventories by €18 million were matched by €128 million higher liabilities. The net cash fl ow from operating activities totaled €72 million. Net cash outfl ow from investing activities was €144 million. It consists of capital expenditure of €27 million and payments for the purchase of securities of €141 million as well as €24 million in interest income and other cash infl ows. Free cash fl ow amounted to –€72 million. The net cash outfl ow from fi nancing activities in the amount of €67 million was mainly due to loan repayments. Cash and cash equivalents amounted to €479 million.

Employees

Beiersdorf.com / career The number of employees grew by 100 compared with the fi gure on December 31, 2008, to 21,866. As of March 31 2009, 18,015 employees worked in the Consumer business segment and 3,851 at tesa.

Total: 21,866 employees as of March 31, 2009.

Other Disclosures

tesa plans package of measures

The sustained weak demand in tesa's industrial segment means that savings are needed in addition to short-time working to cushion the decline resulting from the economic crisis. Wage and salary savings of approximately 10%, to be achieved through temporary changes in working hours, are being examined for the business segment's group headquarters. In addition, the tesa business segment has decided to review the logistics sites in Stuttgart and Offenburg (Germany) as well as the Harrislee (Germany) production site and selected international production centers in regard to their strategic importance. Approximately 400 employees around the world are affected by these measures. The company will ensure that the individual steps involved are socially compatible. The goal of the measures is to ensure tesa's structural earnings ability and the implementation of its successful strategy in the long term. Further developments will be closely monitored in order to respond fl exibly with appropriate measures, if necessary. The investment projects, which relate in particular to tesa's entry onto the new, attractive business in pharmaceutical patches for the pharmaceuticals industry and the expansion of the growing market for the electronics industry, are continuing systematically as planned. These projects are not affected by the measures. Their aim is to allow tesa to resume its successful development after the crisis has passed and to ensure long-term growth.

Amendment to the remuneration report for fiscal year 2008

After the meeting of the Supervisory Board on February 19, 2009, in which the consolidated fi nancial statements, and the Beiersdorf AG's annual fi nancial statements were approved and the Executive Board's proposal on the utilization of the net retained profi ts was endorsed, all members of the Supervisory Board have waived the right to a portion of their variable remuneration. The waive refers to the part of the dividend, that exceeds €0.70 for each share carrying dividend rights, thus the extraordinary amount of €0.20. Based on the proposal on the utilization of the net retained profi ts by the Executive Board and the Supervisory Board, this results in the following remuneration of the Supervisory Board for the fi scal year 2008:

Fixed1
Variable
Total
2007 2008 2007 2008 2007 2008
Prof. Dr. Reinhard Pöllath2 37,500 54,303 99,000 143,361 136,500 197,664
Thorsten Irtz 37,500 37,500 99,000 99,000 136,500 136,500
Dr. Arno Mahlert3 55,000 43,320 66,000 88,180 121,000 131,500
Dieter Ammer4 62,500 47,439 165,000 98,729 227,500 146,168
Dr. Walter Diembeck 40,000 40,000 66,000 66,000 106,000 106,000
Frank Ganschow 25,000 25,000 66,000 66,000 91,000 91,000
Michael Herz 50,000 50,000 66,000 66,000 116,000 116,000
Dr. Rolf Kunisch 25,000 25,000 66,000 66,000 91,000 91,000
Tomas Nieber 25,000 25,000 66,000 66,000 91,000 91,000
Stefan Pfander 25,000 25,000 66,000 66,000 91,000 91,000
Ulrich Plechinger 25,000 25,000 66,000 66,000 91,000 91,000
Prof. Manuela Rousseau 25,000 25,000 66,000 66,000 91,000 91,000
Total 432,500 422,562 957,000 957,270 1,389,500 1,379,832

total remuneration of the supervisory board for activities in the fi scal year 2008 (in €)

1 This includes the fi xed remuneration component and the additional remuneration of membership of Supervisory Board committees and for the

chairmanship and deputy chairmanship of the Supervisory Board.

2 Prof. Dr. Reinhard Pöllath has been the Chairman of the Supervisory Board and of the Executive, Nomination, and Mediation Committees since the end of the Annual General Meeting on April 30, 2008; he was Deputy Chairman of the Supervisory Board until the end of the Annual General Meeting on April 30, 2008.

3 Dr. Arno Mahlert has been the Deputy Chairman of the Supervisory Board since the end of the Annual General Meeting on April 30, 2008.

4 Dieter Ammer was the Chairman of the Supervisory Board and of the Executive, Nomination, and Mediation Committees until the end of the Annual General Meeting on April 30, 2008.

Opportunities and Risks

For more information on opportunities and risks, please refer to our Risk Report in the Group Management Report as of December 31, 2008. There were no signifi cant changes in opportunities and risks as of March 31, 2009.

Outlook for 2009

Expected Macroeconomic Developments

The effects of the current economic crisis on economic developments in 2009 still are hard to be estimated. Consequently, the statements made in our 2008 Annual Report remain essentially valid. Our planning continues to be based on a signifi cant decline in global economic growth. A decline in economic performance we especially expect in the USA, Western Europe, Russia, and Japan.

In our opinion, the global cosmetics market will decline as a result of the current economic situation, although regional trends may be extremely varied. We expect some of the major, saturated markets in Western Europe and the USA to contract. The growth regions of Eastern Europe, Latin America, and Asia (excluding Japan) will probably record slower growth compared to the previous years.

With regard to tesa's industrial and consumer markets, we are forecasting a continuation of the market break that began at the end of 2008. Western Europe and North America will clearly remain below the previous year's levels. The effects of the economic crisis will continue to be extremely pronounced in key industrial sectors, such as the automotive industry.

Business Developments

The Beiersdorf Group will not be able to match the previous year's sales in full-year 2009. Based on current developments in the context of the economic crisis, we expect the Group's EBIT margin to be below the prior-year fi gure.

The Consumer business segment further on shall grow in excess of the market in 2009, and reach sales that are slightly above the previous year. We are forecasting organic growth especially in China, Russia, and Brazil. As we are still investing in marketing as well as research, and development, we expect a slight decline in the full-year EBIT margin, and aim to keep the EBIT margin in this diffi cult economic environment above 10%.

The tesa business segment expects the economic environment to be diffi cult further on. As sales growth depends in particular on trends in demand at our industrial customers, tesa expects the declining developments of the fi rst quarter to continue, however, with rising market shares. Due to the continuation of the investment projects that we have initiated and the impact of the economic burden, tesa will only be able to show a slightly positive operative EBIT margin in 2009.

Hamburg, May 2009

Beiersdorf AG

The Executive Board

Interim Consolidated Financial Statements Income Statement

(in € million)

Sales
1,523
Cost of goods sold
–478
Gross profi t
1,045
Marketing and selling expenses
–724
Research and development expenses
–34
General and administrative expenses
–71
Other operating result
–21
Operating result (EBIT, excluding special factors)
195
Special factors relating to the realignment of the Consumer Supply Chain
2
Operating result (EBIT)
197
Financial result
10
Profi t before tax
207
Income taxes
–63
Profi t after tax
144
Profi t attributable to equity holders
143
Profi t attributable to minority interests
1
Basic/diluted earnings per share (in €)
0.63
Jan. 1–Mar. 31, 2008 Jan. 1–Mar. 31, 2009
1,438
–459
979
–712
–37
–70
–15
145
-
145
3
148
–48
100
99
1
0.43

Balance Sheet

(in € million)
assets Dec. 31, 2008 Mar. 31, 2008 Mar. 31, 2009
Intangible assets 389 345 396
Property, plant, and equipment 727 682 728
Non-current fi nancial assets 11 5 12
Other non-current assets 4 4 4
Deferred tax assets 36 39 38
Non-current assets 1,167 1,075 1,178
Inventories 634 665 653
Trade receivables 894 955 1,005
Other current fi nancial assets 128 110 110
Income tax receivables 45 27 40
Other current assets 81 91 126
Securities 897 - 1,029
Cash and cash equivalents 613 1,227 479
Non-current assets and disposal groups held for sale - 52 -
Current assets 3,292 3,127 3,442
4,459 4,202 4,620
equity and liabilities Dec. 31, 2008 Mar. 31, 2008 Mar. 31, 2009
Equity attributable to equity holders of Beiersdorf AG 2,450 2,186 2,551
Minority interests 10 5 6
Equity 2,460 2,191 2,557
Provisions for pensions and other post-employment benefi ts 235 268 231
Other non-current provisions 131 129 125
Non-current fi nancial liabilities 72 50 31
Other non-current liabilities 6 7 6
Deferred tax liabilities 155 106 152
Non-current liabilities 599 560 545
Other current provisions 363 445 438
Income tax liabilities 99 97 99
Trade payables 690 609 711
Current fi nancial liabilities 174 150 158
Other current liabilities 74 150 112
Current liabilities 1,400 1,451 1,518
4,459 4,202 4,620

Prior-year fi gures adjusted.

Cash Flow Statement

(in € million)

Jan. 1–Mar. 31, 2008 Jan. 1–Mar. 31, 2009
Operating result (EBIT) 197 145
Income taxes paid –39 –46
Depreciation and amortization 25 27
Change in non-current provisions (excluding interest) –8 –9
Gain/loss on disposal of property, plant, and equipment, and intangible assets –5 -
Gross cash flow 170 117
Change in inventories –66 –18
Change in receivables and other assets –162 –155
Change in liabilities and current provisions 185 128
Net cash flow from operating activities 127 72
Investments –25 –27
Proceeds from divestments 12 2
Payments for the purchase of securities - –141
Proceeds from the sale of securities - 10
Interest received 11 8
Proceeds fromdividends and other fi nancing activities 1 4
Net cash flow from investing activities –1 –144
Free cash flow 126 –72
Proceeds from loans 83 56
Loan repayments –82 –109
Interest paid –2 –3
Other fi nancing expenses paid –8 –11
Net cash flow from financing activities –9 –67
Effect of exchange rate fluctuations on cash held –7 5
Net change in cash and cash equivalents 110 –134
Cash and cash equivalents as of Jan. 1 1,117 613
Cash and cash equivalents as of Mar. 31 1,227 479

Statement of Recognized Income and Expense

(in € million)
Jan. 1–Mar. 31, 2008 Jan. 1–Mar. 31, 2009
Fair value measurement of fi nancial instruments 4 –3
Exchange differences –20 5
Deferred taxes on measurement gains and losses recognized directly in equity - -
Other income and expense recognized directly in equity –6 –5
Total income and expense recognized directly in equity –22 –3
Profit after tax 144 100
Total recognized income and expense 122 97
Of which attributable to
– Equity holders of Beiersdorf AG 118 101
– Minority interests 4 –4

Selected Explanatory Notes

Information on the Company and on the Group

The registered offi ce of Beiersdorf AG is at Unnastrasse 48 in Hamburg (Germany) and the Company is registered with the commercial register of the Hamburg Local Court under the number HRB 1787. The ultimate parent of the Company is maxingvest ag (formerly: Tchibo Holding AG). The activities of Beiersdorf AG and its affi liates ("Beiersdorf Group") consist primarily of the manufacture and distribution of branded consumer goods in the areas of skin and beauty care, and of the manufacture and distribution of technical adhesive tapes.

Basis of Preparation

The interim consolidated fi nancial statements for the period from January 1 to March 31, 2009, were prepared in accordance with IAS 34 "Interim Financial Reporting." The interim consolidated fi nancial statements should be read in conjunction with the consolidated fi nancial statements as of December 31, 2008.

Accounting Policies

The fi gures disclosed in this interim report were prepared in accordance with International Financial Reporting Standards (IFRSs). The same accounting policies were used in the interim consolidated fi nancial statements as in the annual consolidated fi nancial statements for 2008. The interim report was not audited or reviewed.

Related Party Disclosures

Please refer to the consolidated fi nancial statements as of December 31, 2008, for related party disclosures. There were no signifi cant changes as of March 31, 2009.

Corporate Governance

The declaration of compliance issued by the Supervisory Board and the Executive Board for fi scal year 2008 regarding the recommendations of the German Corporate Governance Code in accordance with § 161 Aktiengesetz (German Stock Corporation Act) was published at the end of December 2008 and is permanently available on our website at www.Beiersdorf.com.

Events After the Balance Sheet Date

Next to the measures at tesa described under Other Disclosures, no signifi cant events occurred after the balance sheet date that would have a material effect on the Beiersdorf Group's business developments.

Hamburg, May 2009

Beiersdorf AG

The Executive Board

Financial Calendar

dates

August 4, 2009 Interim Report January to June 2009
November 3, 2009 Interim Report January to September 2009, Financial Analyst Meeting
January 2010 Publication of Preliminary Group Results
February/March 2010 Publication of Annual Report 2009, Annual Accounts Press Conference,
Financial Analyst Meeting
April 2010 Annual General Meeting
May 2010 Interim Report January to March 2010
August 2010 Interim Report January to June 2010
November 2010 Interim Report January to September 2010, Financial Analyst Meeting

Commercial Register HRB 1787

Contact Information

Beiersdorf Aktiengesellschaft Unnastrasse 48, 20245 Hamburg Germany

editorial office and concept

Corporate Identity: Telephone: +49 40 4909-2102, E-mail: [email protected]

published by additional information

Corporate Media Relations: Telephone: +49 40 4909-3077, E-mail: [email protected]

Investor Relations: Telephone: +49 40 4909-5000, E-mail: [email protected]

Beiersdorf on the Internet: www.Beiersdorf.com

Up-to-Date Information

If you would like up-to-date information about Beiersdorf, why not visit our website? In addition to fi nding the latest facts, fi gures, and press releases, you will experience what drives our work: the emotions and innovations that our brands refl ect.

www.Beiersdorf.com

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