Coloplast — Earnings Release 2009

Nov 6, 2009

Full-year financial report 6 November 2009

Announcement No. 14/2009

Announcement of full-year financial results 2008/09

(1 October 2008 – 30 September 2009)

Highlights

• Organic revenue growth was 6%. Changes in exchange rates reduced revenue growth by 2 percentage points. Revenue in Danish kroner was up by 4% to DKK 8,820m
• Organic growth rates by business area: Ostomy Care 4%, Urology & Continence Care 9%, Wound & Skin Care 3%
• Gross profit was up by 2% to DKK 5,103m, equal to a gross margin of 58%. Changes in exchange rates reduced the gross margin by 1 percentage point
• EBIT was up by 40% to DKK 1,395m. Before special items, EBIT improved by 28%
• The EBIT margin was 16% against 12% in 2007/08. Changes in exchange rates reduced the EBIT margin by 1 percentage point. The underlying EBIT margin was 17%
• The free cash flow amounted to DKK 1,428m against DKK 653m last year
• A share buy-back programme of up to DKK 1bn will be launched, scheduled to run in 2009/10 and 2010/11
• The Board of Directors recommends that the shareholders attending the general meeting to be held on 1 December 2009 approve a dividend of DKK 7.00 per share, equal to a pay-out ratio of 34%, as compared with 36% last year

Guidance for 2009/10

• We expect organic revenue growth of 6–7%. Revenue growth measured in DKK is expected to be 4-5%
• We expect an EBIT margin at constant exchange rates of 17-18% and in DKK of 16-17%
• Capital expenditure is expected to be DKK 500–600m
• The effective tax rate forecast is approx. 27%

Conference call

Coloplast will host a conference call on 6 November 2009 at 15.00 CET. The call is expected to last about one hour. To attend the conference call, call +45 3271 4607, +44 (0)20 7162 0077 or +1 334 323 6201. A webcast will be posted on www.coloplast.com shortly after the conclusion of the conference call.

Financial highlights and key ratios

1 October - 30 Septem ber

	Group		Change	Group		Change
	DKK million			DKK million
	2008/09	2007/08		2008/09 2007/08
	$12 \text{ m}$ th	$12 \text{ m}$ th		Q4	Q4
Income statement
Revenue	8,820	8,463	4%	2,262	2,156	5%
Research and development costs	$-389$	$-415$	$-6%$	-90	$-147$	$-39%$
Operating profit bef. interest, tax, depreciation & amortisation (EBITDA)	1,944	1,531	27%	551	242	>100%
Operating profit before special items	1,475	1,154	28%	426	261	63%
Operating profit (EBIT)	1,395	994	40%	406	101	>100%
Net financial income and expenses	$-184$	$-2$	>100%	$-44$	$-13$	>100%
Profit before tax	1,211	992	22%	362	88	>100%
Coloplast's share of profit for the period	883	715	23%	272	65	>100%
Revenue growth
Annual growth in revenue, %	4	5		5	5
Growth break down
Organic growth, %	6	$\overline{7}$		$\overline{7}$	6
Currency effect, %	$-2$	$-4$		$-2$	$-4$
Contract manufacturing, %	$\mathbf 0$	$\overline{2}$		$\mathbf{0}$	3
Balance sheet
Total assets	7,963	7,981	0%	7,963	7,981	0%
Invested capital	6,442	7,014	$-8%$	6,442	7,014	$-8%$
Net interest-bearing debt	2,297	3,428	$-33%$	2,297	3,428	$-33%$
Equity at year-end, Coloplast's share	2,850	2,290	24%	2,850	2,290	24%
Cash flow and investments
Cash flow from operating activities	1,830	1,324	38%	735	672	9%
Investments in property, plant and equipment, gross	$-487$	$-718$	$-32%$	$-78$	$-244$	$-68%$
Cash flow from investing activities	$-402$	$-671$	$-40%$	$-55$	$-258$	$-79%$
Free cash flow	1,428	653	>100%	680	414	64%
Cash flow from financing activities	$-723$	$-469$	54%	$-237$	$-386$	$-39%$
Key figures ratios
Average number of employees, FTEs	7,349	7,420		7,349	7,420
Operating margin, EBIT, %	16	12		18	5
Operating margin, EBITDA, %	22	18		24	11
Return on average invested capital before tax (ROIC), %	21	14		24	6
Return on average invested capital after tax (ROIC), %	15	10		18	4
Return on equity, %	34	31		42	11
Ratio of net debt to EBITDA	1.2	2.2		1.0	$3.5\,$
Interest cover	14	10		18	$\overline{7}$
Equity ratio, %	36	29		36	29
Rate of debt to enterprise value, %	11	16		11	16
Net asset value per share, DKK	63	50	26%	63	49	29%
Per share data
Share price	426	388	10%	426	388	10%
Share price/net asset value per share	7	8	$-13%$	7	8	$-13%$
Average number of outstanding shares, millions	43	44	$-2%$	43	44	$-2%$
PE, price/earnings ratio	21	25	$-16%$	18	70	$-74%$
Dividend per share, DKK	$\overline{7}$	6	17%	$\sim$
Pay-out ratio, %	34	36	÷
Earnings per share (EPS)	21	16	31%	$\overline{7}$	$\overline{2}$	>100%

Free cash flow per share 33 15 >100% 16 10 60%

Management's review

Sales performance

In DKK, revenue was up by 4% to DKK 8,820m. Organic growth was 6%. Changes in exchange rates reduced revenue growth by 2 percentage points.

	DKK million			Growth composition	DKK million	Organic
	2008/09 12 mth	2007/08 12 mth	Organic growth	Exchange rates	Reported growth	2008/09 Q4	growth Q4
Ostomy	3,621	3,569	4%	-3%	1%	939	6%
Urology and Continence	3,699	3,444	9%	-2%	7%	951	9%
Wound & Skin Care	1,500	1,450	3%	0%	3%	372	1%
Net revenue	8,820	8,463	6%	-2%	4%	2,262	7%

Sales performance by business area

Ostomy Care

Sales of ostomy care products amounted to DKK 3,621m, an increase of 1%. Revenue growth in DKK was adversely affected by the weaker GBP, in particular. At 4% for the full year, organic growth was affected especially by the challenges in the German market. Coloplast has taken a number of steps with the aim of turning the trends, and these initiatives are expected to have the intended effect. Excluding our operations in the German market, organic growth was 7%. Q4 organic growth was 6%, with growth in the European markets in particular making a positive contribution. The SenSura® product portfolio continues to drive growth in sales of ostomy care products. The SenSura® URO, for patients with a urostomy, was launched in the second quarter and the product is now available in most European markets.

Holding 35–40% of the market, Coloplast retains its market-leading position in the global market for ostomy care products. The global ostomy care market is worth about DKK 10bn and market growth is estimated at 4%.

Urology & Continence Care

Our Urology & Continence Care revenue rose by 7% to DKK 3,699m on 9% organic growth. Q4 organic growth was also 9%. Revenue growth in Continence Care was driven by sales of intermittent catheters, as especially SpeediCath® and Selfcath® sales remained very satisfactory. Peristeen® and the Conveen® product series both also generated very satisfactory sales growth. Launched in the second quarter, SpeediCath® Control, a product designed for users with low dexterity, is now available in ten national markets.

SpeediBag™ for users of SpeediCath® Compact, Peristeen® Anal Irrigation catheters for children, and Exair™, a surgical single-use set for rebuilding the pelvic floor, were launched in Q4.

Urology products again generated satisfactory sales growth, and sales of penile implants in the North American market continue to drive growth.

The continence care market is worth about DKK 10bn and market growth is estimated at 5–7%. Coloplast remains the global market leader, with a market share of 30–35%.

The part of the urology market in which Coloplast operates is worth about DKK 10bn, and market growth is expected to be 7–9%. Coloplast holds a 5–10% share of the combined global urology product market.

Wound & Skin Care

Sales of wound and skin care products were up by 3% to DKK 1,500m, and organic growth for the year was also 3%. Q4 organic growth was 1%, adversely affected by sales in our contract production business. Net of the contract production business, organic growth was 4% for Q4, but unchanged at 3% for the year. Growth continues to be impacted by the very competitive markets and the resulting price pressure in major European markets.

Growth in the global wound and skin care market in which we operate amounts to 5–7%, and the market is worth about DKK 14bn. Coloplast retains a market share of 5–10%.

Sales performance by region

	DKK million			Growth composition			Organic
	2008/09 12 mth	2007/08 12 mth	Organic growth	Exchange rates	Reported growth	2007/08 Q4
Europe	6,746	6,705	4%	-3%	1%	1,724	6%
Americas	1,380	1,155	12%	7%	19%	356	12%
Rest of the world	694	603	8%	7%	15%	182	4%
Net revenue	8,820	8,463	6%	-2%	4%	2,262	7%

Europe

Revenue in DKK was DKK 6,746m, which translates into reported growth of 1% against organic growth of 4%. Q4 organic growth was 6%. The annual growth rate was adversely affected by weaker sales of ostomy care products in Germany. Organic growth in Europe excluding Germany was 7% for the full year, which is considered to be satisfactory. Our Urology and Continence Care business generated growth in line with expectations, while the market for wound and skin care products remains very competitive.

The Americas

Revenue in the Americas rose by 19% to DKK 1,380m. Organic growth was 12%, whereas the higher USD/DKK exchange rate lifted growth by 7 percentage points. Q4 organic growth was 12%. Overall growth for continence care products in the region was supported by improved reimbursement rules for intermittent catheters in the USA.

Rest of the World

In the Rest of the World, revenue rose by 15% to DKK 694m on 8% organic growth. Developments in foreign exchange rates, especially JPY/DKK, added 7 percentage points to the growth performance. Q4 organic growth was 4%. Ostomy Care accounts for most of the sales in this region, and growth fell short of expectations. In addition, the restructuring project in the Wound and Skin Care business in the region had a negative impact on this business area.

Gross profit

Gross profit rose by 2% to DKK 5,103m from DKK 4,998m last year.

The gross margin was 58%, against 59% last year. When adjusted for changes in exchange rates, the gross margin was 59%, which is in line with last year. The gross margin remained affected by the increased price pressure, especially in the market for wound & skin care products, and by the increased proportion of SenSura® and the new generation of Biatain® foam dressings, for which the production economy is not expected to improve until production is relocated to Hungary. In addition, our production facilities were not fully utilized due to the lower-than-expected sales. This is being offset, however, by the improved production economy resulting from the relocation of production to Hungary and China.

Capacity costs

.

Distribution costs amounted to DKK 2,685m, equal to 30% of revenue, against 31% last year.

Administrative expenses amounted to DKK 614m, which equals 7% of revenue compared with 10% last year. The fall was mainly attributable to cost savings and efficiency-improving measures.

R&D costs were DKK 389m and accounted for 4% of revenue, against 5% last year.

Other operating income rose by DKK 18m to DKK 89m. Most of the increase was due to a DKK 47m profit recognised this year from the sale of a production facility in Kokkedal, Denmark, and other items, while a DKK 31m profit was recognised in 2007/08 from the sale of office property in Kokkedal.

Special items amounted to DKK 80m, against DKK 160m last year. The amount consisted of costs related to reducing the number of employees working in production in Denmark and costs related to the organisational changes implemented in the Wound & Skin Care business and the DSU business.

Operating profit (EBIT)

EBIT was DKK 1,395m against DKK 994m last year. The EBIT margin was 16% against 12% last year. The underlying EBIT margin excluding non-recurring items and at constant exchange rates was 17%, which is a 3 percentage point improvement on last year.

Financial items and tax

Financial items amounted to a net expense of DKK 184m, against a net expense of DKK 2m last year. The higher expenses were due to a combination of exchange rate adjustments and fair value adjustments of share options. Last year, we recognised large currency hedging gains on our main foreign exchange exposures, not least the pound sterling, whereas our positions this year were adversely affected by movements in Hungarian forint, in particular.

Financial items

	DKK million		DKK million
	2008/09	2007/08		2007/08
	12 mth	12 mth	Q4	Q4
Interest, net	-144	-160	-31	-45
Fair value adjustment of options	-9	75	-20	17
Exchange rate adjustments	-16	98	13	19
Other financial items	-15	-15	-6	-4
Total financial items	-184	-2	-44	-13

The higher price of Coloplast shares has triggered a fair value adjustment of the value of cash-based option programmes expiring during the period until 2013.

The effective tax rate was 27%, against 28% last year, for a tax expense of DKK 328m, as compared with DKK 277m last year.

Net profit for the year

The net profit for the financial year was up by 23% to DKK 883m. Earnings per share (EPS) were DKK 21, up 31% on 2007/08.

Cash flows and investments

Cash flow from operating activities

The cash flow from operating activities was DKK 1,830m against DKK 1,324m last year. The increase was driven especially by an improvement in working capital and stronger earnings. This, however, was partly offset by higher tax payments.

Investments

We invested a gross amount of DKK 487m in property, plant and equipment in 2008/09, which was 32% lower than last year. The investments made were mainly for production equipment for the factories in Hungary and China and for the new US headquarters. Investments accounted for 6% of revenue against 8% in 2007/08.

Free cash flow

The free cash flow was DKK 1,428m, against DKK 653m in 2007/08. The improvement was attributable to a combination of stronger earnings, an increase in working capital and lower investments. In the last quarter of the year alone, the free cash flow amounted to DKK 680m, an increase of 64% on Q4 2007/08.

Capital reserves

We have confirmed long-term credit facilities of DKK 5bn, of which DKK 2bn is unutilised.

Balance sheet and equity

Balance sheet

At DKK 7,963m, total assets were DKK 18m lower than at 30 September 2008. Property, plant and equipment amounted to DKK 2,635m, which was DKK 99m lower than last year. The reduction was mainly due to the sale of the production facility in Kokkedal, Denmark and changes in exchange rates, especially in Hungarian forint.

Current assets increased by DKK 199m to DKK 3,369m. The largest increases were in cash and bank balances, which were DKK 436m higher than last year, while inventories reduced the overall increase in current assets by DKK 238m.

Trade receivables fell by DKK 33m relative to 30 September 2008. Trade payables amounted to DKK 428m, against DKK 397m last year.

Equity

Equity increased by DKK 559m to DKK 2,850m. The profit for the year of DKK 883m was partly offset by a DKK 54m foreign exchange loss taken directly to equity and by dividend payments of DKK 257m. The equity ratio rose to 37% from 29% at 30 September 2008.

Net interest-bearing debt

Net interest-bearing debt fell by DKK 1,131m, or 33%, relative to 30 September 2008 to DKK 2,297m. This equals a ratio of net interest-bearing debt to EBITDA of 1.2. The change was due to the improvement of the free cash flow. 86% of our total debt carries a fixed rate, and no significant loans are due for refinancing until 2013.

Our target is still to have a net interest-bearing debt of 1.5–2.5 times EBITDA.

Share buy-backs and dividends

The Board of Directors recommends that the shareholders attending the general meeting to be held on 1 December 2009 approve a dividend of DKK 7.00 per share, equal to a pay-out ratio of 34%, as compared with 36% last year.

Considering the continuing stable developments in the financial markets and the strong cash flow this year, the Board of Directors has resolved to launch a share buy-back programme of up to DKK 1bn up until the end of the financial year 2010/11. Implementation of the buy-back programme is subject to the shareholders in general meeting on 1 December 2009 adopting an authorization to buy back shares for up to 10% of the company's share capital. Should alternative opportunities arise during that period which are considered more beneficial for the shareholders, the authorization may not be utilized.

Treasury shares and cancellation of shares

The shareholders in general meeting resolved in December 2008 to write down the share capital by a nominal value of DKK 5m, corresponding to 1 million B shares from Coloplast's holding of treasury shares. The capital decrease was effected on 27 April 2009 following the expiry of the three-month statutory notice period and registration with the Danish Commerce and Companies Agency.

Following the cancellation of these shares, Coloplast's share capital amounts to DKK 225m, distributed on B shares in the amount of DKK 207m and A shares in the amount of DKK 18m. The share capital consists of 3.6 million A shares and 41.4 million B shares (see Announcement No. 6/2009).

At 30 September 2009, Coloplast's holding of treasury shares consisted of 2,114,803 B shares, which was 1,056,529 less than at 30 September 2008. The change was mainly due to the cancellation of 1,000,000 B shares and a sale of shares to Danish-based employees (gross of tax payment).

Financial guidance

Our financial guidance for the 2009/10 financial year is as follows:

• Organic revenue growth of 6–7%. Revenue growth in DKK is expected to be 4-5%
• An EBIT margin of 17–18% at constant exchange rates and in DKK of 16-17%
• Capital expenditure is expected to be DKK 500–600m
• An effective tax rate of approximately 27%

Coloplast's Board of Directors has reviewed the company's long-term financial guidance. These remain unchanged, with an annual organic growth rate that is higher than the market growth and an EBIT margin of at least 20%.

The overall weighted market growth in Coloplast's markets is expected to be about 5%.

Our financial guidance is inherently subject to some degree of uncertainty. Significant changes in currency, business or macroeconomic conditions, including changes within healthcare, may impact the company's financial conditions. We evaluate our long-term guidance annually in connection with the presentation of our full-year financial statements.

Other information

Exchange rate exposure

Our financial guidance for the 2009/10 financial year has been prepared on the basis of the following assumptions for the company's main currencies:

DKK	GBP	USD	HUF	EUR
Average exchange rate 2008/09*	853	551	2.68	745
Spot rate 27 October 2009**	822	503	2.73	744
Change in average exchange	-4%	-9%	2%	0%
rates compared with last year

*) Average exchange rates 2008/09 are used w hen calculating the organic revenue grow th rates and the EBIT margin in constant currencies w hen calculating financial expectations

*) The spot rates are used w hen calculating the financial expectations in DKK.

Revenue is particularly exposed to developments in USD and GBP relative to DKK. As we have production, sales activities, and procurement of commodities in the USA, changes in the USD/DKK exchange rate only have a slight effect on our operating profit. On the other hand, fluctuations in HUF against DKK affect the operating profit, because a substantial part of our production, and thus of our costs, are in Hungary, whereas our sales there are moderate.

In DKK millions over 12 months on a 10% initial drop in DKK exchange rates (Exchange rate at 30 September 2009)	Revenue	EBIT
USD	-110	0
GBP	-130	-75
HUF	-	+40

Wound & Skin Care

The wound and skin care project is progressing to plan and still aims to improve the earnings potential of the business area. The initiatives remain anchored in:

• Adapting and simplifying our global organisation
• Cost savings
• Increasing the use of distributors in small markets
• Improving the production economy of the Biatain® products
• Optimising the product offering

We expect to complete the initiatives by the end of first half 2009/10.

Global Operations (GO)

On 20 October 2009, we reduced the number of positions in our Danish production units by 143. The reductions in Denmark were made due to a continuing relocation of volume production from Denmark to Hungary and China. Costs associated with the above-mentioned reductions are included in the income statement under special items. The positive financial effects expected from the plan are already reflected in our long-term financial guidance.

Forward-looking statements

The forward-looking statements in this announcement, including revenue and earnings guidance, do not constitute a guarantee of future results and are subject to risk, uncertainty and assumptions, the consequences of which are difficult to predict. The forward-looking statements are based on our current expectations, estimates and assumptions and are provided on the basis of information available to us at the present time.

Major fluctuations in the exchange rates of key currencies, significant changes in the healthcare sector or major developments in the global economy may impact our ability to achieve the defined long-term targets and meet our guidance. This may impact our company's financial results.

Management statement

The Board of Directors and Executive Management today considered and approved the Annual Report of Coloplast A/S for the financial year ended 30 September 2009.

The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards as adopted by the EU, and the financial statements of the parent company have been prepared in accordance with the Danish Financial Statements Act. In addition, the annual report has been presented in accordance with additional Danish disclosure requirements for the annual reports of listed companies. We consider the accounting policies used to be appropriate and the accounting estimates reasonable. In our opinion, the annual report therefore gives a true and fair view of the Group's and the parent company's assets, liabilities and financial position at 30 September 2009 and of the results of the Group's and the parent company's operations and of the cash flows for the Group in accordance with the accounting policies applied.

In our opinion, the management's review includes a fair review of the development and performance of the Group and the parent company, the results for the year and of the financial position, together with a description of the principal risks and uncertainties that the Group and the parent company face.

Humlebæk, 5 November 2009.

Executive Management

Lars Rasmussen President, CEO	Lene Skole Executive Vice President, CFO
Board of Directors
Michael Pram Rasmussen Chairman	Niels Peter Louis-Hansen Deputy Chairman
Torsten Erik Rasmussen	Sven Håkan Björklund	Per Magid
Jørgen Tang-Jensen	Ingrid Wiik	Thomas Barfod*
Mads Boritz Grøn*	Knud Øllgaard*

*) Elected by the employees

List of tables

Audited

Income statement ….……………………………………………………………11
Assets …………………….………………………………………………………12
Equity and liabilities. ………………………………………………………13
Statement of changes in equity and comprehensive income………………14
Cash flow statement…………….…………………………………….………15
Notes to the financial statements .……….…………………………………….16
Quarterly figures ……………………………………………………………….18
Other tables ……………………………………………………………………19

Income statement

1 October - 30 September

Unaudited

			Group DKK million		Group DKK million		Index
		2008/09	2007/08		2008/09	2007/08
Note		12 mth	12 mth		Q4	Q4
1	Revenue	8,820	8,463	104	2,262	2,156	105
	Cost of sales	-3,717	-3,465	107	-983	-873	113
	Gross profit	5,103	4,998	102	1,279	1,283	100
	Distribution costs	-2,685	-2,589	104	-665	-657	101
	Administrative expenses	-614	-882	70	-107	-213	50
	Research and development costs	-389	-415	94	-90	-147	61
	Other operating income	89	71	125	14	5	280
	Other operating expenses	-29	-29	100	-5	-10	50
	Operating profit before special items	1,475	1,154	128	426	261	163
1	Special items Operating profit (EBIT)	-80 1,395	-160 994	50 140	-20 406	-160 101	13 402
2	Financial income	61	201	30	11	42	26
3	Financial expenses	-245	-203	121	-55	-55	100
	Profit before tax	1,211	992	122	362	88	411
	Tax on profit for the period	-328	-277	118	-90	-23	391
	Net profit for the period	883	715	123	272	65	418
	Shareholders in Coloplast A/S	883	715		272	65
4	Minority interests	0	0		0	0
		883	715	123	272	65	418
	Earnings per Share (EPS)	21	16		7	2
	Earnings per Share (EPS), diluted	21	16		7	2

Balance sheet

At 30 September

		Group
		DKK million
		30.09.09 30.09.08
Assets
Acquired patents and trademarks	1,012	1,134
Goodwill	629	641
Software	133	106
Prepayments and assets under development	34	46
Intangible assets	1,808	1,927
Land and buildings	1,251	1,173
Plant and machinery	1,004	781
Other fixtures and fittings, tools and equipment	207	196
Prepayments and assets under construction	173	584
Property, plant and equipment	2,635	2,734
Other investments	4	4
Deferred tax asset	147	146
Investments	151	150
Non-current assets	4,594	4,811
Inventories	986	1,224
Trade receivables	1,530	1,563
Income tax	31	11
Other receivables	114	101
Prepayments	78	77
Receivables	1,753	1,752
Marketable securities	1	1
Cash and bank balances	629	193
Current assets	3,369	3,170
Assets	7,963	7,981

Balance sheet

At 30 September

	Group
	DKK million
Note	30.09.09 30.09.08
Equity and liabilities
Share capital	225	230
Hedge reserve	-49	8
Proposed dividend for the year	300	257
Retained earnings and other reserves	2,374	1,795
Equity before minority interests	2,850	2,290
Minority interests	0	1
Equity	2,850	2,291
Provision for pensions and similar liabilities	75	90
Provision for deferred tax	225	191
Other provisions	23	16
Mortgage debt	459	467
Other credit institutions	1,797	2,316
Other payables	447	370
Deferred income	100	70
Non-current liabilities	3,126	3,520
Provision for pensions and similar liabilities	14	9
Other provisions	12	19
Mortgage debt	14	13
Other credit institutions	219	474
Trade payables	428	397
Income tax	242	211
Other payables	1,054	1,036
Deferred income	4	11
Current liabilities	1,987	2,170
Current and non-current liabilities	5,113	5,690
Equity and liabilities	7,963	7,981

8 Contingent items

Statement of changes in equity and comprehensive income

Group		Share capital	Exchange
			adjustment		Hedging Proposed Retained		Total
DKK million		A shares B shares	reserve	reserve	dividend	earnings	equity
2007/08
Balance at 1.10 as reported in annual report	18	222	-18	4	396	1,776	2,398
Revaluation of hedging:
Value adjustment for the year				68			68
Transferred to financial items				-63			-63
Tax effect of hedging				-1			-1
Net gain/loss not recognised in income statement	0	0	0	4	0	0	4
Exchange rate adjustment, assets in foreign currency						-8	-8
Exchange rate adjustment of opening balances and
other adjustments relating to subsidiaries			0			41	41
Net gain/loss recognised directly on equity	0	0	0	0	0	33	33
Profit for the period					257	458	715
Comprehensive income for the period	0	0	0	4	257	491	752
Treasury shares purchased and realised gain/loss from exercise
options						-510	-510
Treasury shares sold						26	26
Share-based payments						20	20
Cancellation of shares		-10				10	0
Dividend paid out in respect of 2006/07					-396		-396
Balance at 30.09	18	212	-18	8	257	1,813	2,290
Saldo pr. 1.10. som rapporteret i årsrapporten
Balance at 1.10 as reported in annual report	18	212	-18	8	257	1,813	2,290
Revaluation of hedging:
Value adjustment for the year				-37			-37
Transferred to financial items				-40			-40
Tax effect of hedging				20			20
Net gain/loss not recognised in income statement	0	0	0	-57	0	0	-57
Exchange rate adjustment, assets in foreign currency						-16	-16
Exchange rate adjustment of opening balances and
other adjustments relating to subsidiaries						-38	-38
Net gain/loss recognised directly on equity	0	0	0	0	0	-54	-54
Profit for the period					300	583	883
Comprehensive income for the period	0	0	0	-57	300	529	772
Treasury shares purchased and realised gain/loss from exercise
options						-5	-5
Treasury shares sold						24	24
Share-based payments						26	26
Cancellation of shares		-5				5	0
Dividend paid out in respect of 2007/08					-257		-257
Balance at 30.09	18	207	-18	-49	300	2,392	2,850

Cash flow statement

1 October - 30 September

	Group
	DKK million
	2008/09	2007/08
Note	12 mth	12 mth
Operating profit	1,395	994
Depreciation and amortisation	549	537
Adjustment for other non-cash operating items	-40	-34
Changes in working capital	320	-96
Ingoing interest payments, etc.	32	206
Outgoing interest payments, etc.	-156	-233
Income tax paid	-270	-50
Cash flow from operating activities	1,830	1,324
Investments in intangible assets	-84	-36
Investments in land and buildings	-132	-93
Investments in plant and machinery	-201	-494
Investments in non-current assets under constructions	-154	-131
Property, plant and equipment sold	169	86
Acquired operations	0	-3
Cash flow from investing activities	-402	-671
Free cash flow	1,428	653
Dividend to shareholders	-257	-396
Net investment in treasury shares	19	-484
Financing from shareholders	-238	-880
Financing through long-term borrowing, debt funding	0	522
Financing through long-term borrowing, instalments	-485	-111
Cash flow from financing activities	-723	-469
Net cash flow for the period	705	184
Cash, cash equivalents and short term debt at 1.10.	-293	-452
Value adjustments of cash and balances	-15	-25
Net cash flow for the period	705	184
Cash, cash equivalents and short term debt at 30.06	397	-293

The cash flow statement cannot be extracted directly from the financial statements.

Notes

1. Segment information

Primary segment - business activities
Group, 2008/09
			Not allocated and
	Medical Care		eliminations			Total
DKK million	2008/09	2007/08	2008/09	2007/08	2008/09	2007/08
Revenue	8,820	8,463	0	0	8,820	8,463
Operating profit for segment	2,106	1,539	-711	-545	1,395	994
					Group
					DKK million
					2008/09	2007/08
2. Financial income
Interest income					16	25
Fair value adjustments, share options					0	75
Fair value adjustments on forward contracts transferred from equity					40	63
Exchange rate adjustments					0	35
Other financial income and fees					5	3
Total					61	201

Total	245	203
Other financial expenses and fees	20	18
Exchange rate adjustments	56	0
Fair value adjustments, share options	9	0
Interest expense	160	185

4. Minority interests

Minority interests at 30.09.	0	1
Dividend paid	-1	-1
Share of net profit from subsidiaries	0	0
Acquisitions	0	0
Minority interests at 1.10.	1	2

Notes

	Group
		DKK million
	2008/09	2007/08
5. Adjustment for other non-cash operating items
Net gain/loss on non-current assets	-34	-26
Change in other provisions	-6	-8
Total	-40	-34

6. Changes in working capital

Inventories	236	-284
Trade receivables	4	38
Other receivables	-20	48
Trade and other payables etc.	100	102
Total	320	-96

7. Cash, cash equivalents and short term debt

Marketable securities	1	1
Cash	1	1
Bank balances	628	192
Liquid resources	630	194
Short-term debt	-233	-487
Total	397	-293

8. Contingent items

Contingent liabilities

The Coloplast Group is a party to a number of minor legal proceedings, which are not expected to influence the Group's future earnings.

Income statement, quarterly

Unaudited

			Group
	DKK million
			2007/08				2008/09
Note		Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
1	Revenue	2,113	2,040	2,154	2,156	2,196	2,119	2,243	2,262
	Cost of sales	-829	-871	-892	-873	-895	-897	-942	-983
	Gross profit	1,284	1,169	1,262	1,283	1,301	1,222	1,301	1,279
	Distribution, sales and marketing costs	-660	-651	-621	-657	-664	-652	-704	-665
	Administrative expenses	-235	-231	-203	-213	-194	-160	-153	-107
	Research and development costs	-78	-90	-100	-147	-103	-99	-97	-90
	Other operating income	35	21	10	5	11	54	10	14
	Other operating expenses	-6	-6	-7	-10	-12	-2	-10	-5
	Operating profit before special items	340	212	341	261	339	363	347	426
	Special items	0	0	0	-160	-5	-55	0	-20
1	Operating profit (EBIT)	340	212	341	101	334	308	347	406
2	Financial income	36	55	68	42	31	8	11	11
3	Financial expenses	-44	-72	-32	-55	-84	-55	-51	-55
	Profit before tax	332	195	377	88	281	261	307	362
	Tax on profit for the period	-93	-55	-106	-23	-79	-73	-86	-90
	Net profit for the period, continuing operations	239	140	271	65	202	188	221	272
9	Net profit for the period, discontinued operations	0	0	0	0	0	0	0	0
	Profit for the period	239	140	271	65	202	188	221	272
	Shareholders in Coloplast A/S	239	140	271	65	202	188	221	272
4	Minority interests	0	0	0	0	0	0	0	0
		239	140	271	65	202	188	221	272
	Earnings per Share (EPS)	5	3	6	2	5	4	5	7
	Earnings per Share (EPS), diluted	5	3	6	2	5	4	5	7

Other tables

Unaudited

Impact on profit of non-recurring items

	12 mth 2008/09	12 mth 2007/08
DKK million		Non			Non
	Reported	recurring	Adjusted	Reported	recurring	Adjusted
Revenue	8,820		8,820	8,463		8,463
Cost of sales	-3,717		-3,717	-3,465	-45	-3,420
Gross profit	5,103		5,103	4,998	-45	5,043
Gross margin	58%		58%	59%		60%
Distribution costs	-2,685		-2,685	-2,589	-20	-2,569
Administrative expenses	-614		-614	-882	-15	-867
R&D costs	-389		-389	-415		-415
Other operating income	89	47	42	71	31	40
Other operating expenses	-29		-29	-29		-29
Special items	-80	-80	0	-160	-160	0
EBIT	1,395	-33	1,428	994	-209	1,203
EBIT margin	16%		16%	12%		14%

Further information

Investors and analysts

Lene Skole Executive Vice President, CFO Tel. +45 4911 1700

Ian S.E. Christensen Head of Investor Relations Tel. +45 4911 1800/+45 4911 1301 Email: dkisec@coloplast.com

Press and the media

Morten Sørensen Media Relations Manager, Corporate Communications Tel. +45 4911 2632 Email: dkmoso@coloplast.com

Homepage www.coloplast.com

Address

Coloplast A/S Holtedam 1 DK-3050 Humlebæk Danmark

CVR No. 69749917

This announcement is available in a Danish and an English-language version. In the event of discrepancies, the Danish version shall prevail.

The Coloplast logo is a registered trademark of Coloplast A/S. © 2009-11 All rights reserved Coloplast A/S, 3050 Humlebæk, Denmark.

Coloplast develops products and services that make life easier for people with very personal and private medical conditions. Working closely with the people who use our products, we create solutions that are sensitive to their special needs. We call this intimate healthcare.

Our business includes ostomy care, urology and continence care and wound and skin care. We operate globally and employ more than 7,000 people.