Green Earth Group NV — Earnings Release 2011

Mar 15, 2012

Press!release

• ( Results!in!2011!considerably!better!than!2010!!
• ( EBITDA!improved!by!€!7.5!mln
• ( Debt!position!reduced!by!11%

Governance

After"the"departure"of"the"previous"Management"Board"and"during"the"search"for"a"suitable" successor,"the"Group"was"run"during"the"entire"year"2011"by"an"interim"CEO,"Mr."R.A.J." Huyzer,"who"had"until"then"been"chairman"of"the"Supervisory"Board."

On"11"January"2012,"the"Supervisory"Board"announced"that"it"wishes"to"appoint"Mr."J.A."de" Haas"as"new"CEO,"having"regard"to"his"thorough"knowledge"of"the"graphics"industry,"the" network,"the"customers,"the"business"model"and"the"challenges"offered"by"the"current" communications"market."This"brought"an"end"to"Mr."Huyzer's"work"as"interim"CEO."After" almost"three,"intensive"years,"one"as"chairman"of"the"Supervisory"Board"during"the"2010"bid" process"and"one"as"interim"CEO,""Mr."Huyzer"decided"to"step"down"on"30"January"2012.

Developments!in!2011

The"market"sectors"in"which"Roto"Smeets"Group"operates"have"been"in"constant"flux"for years."We"work"in"both"rapidly"growing"markets"that"are"developing"spectacularly"and" markets"plagued"with"structural"overcapacity"and"declining"demand."The"turbulence"in" western"European"economies"has"magnified"market"unpredictability"and"insecurity."Markets" for"the"raw"materials"that"we"depend"on"are"also"showing"large"swings"in"both"capacity"and" pricing."All"these"factors"when"combined"lead"to"(often)"cutPthroat"competition"and" unsustainable"pricing.

During"the"last"few"years,"RSG"has"adapted"its"organizational"capacity"to"changing"market" conditions"and"has"implemented"a"variety"of"improvements."An"even"sharper"focus"on" costing"and"margins"will"be"needed"to"return"to"profitability,"in"addition"to"the"development" of"new"markets,"products"and"services.

It"is"under"these"very"challenging"conditions,"and"after"two"years"of"radical"reorganisations," that"Roto"Smeets"Group"was"able"to"show"a"considerable"improvement"of"its"results"in"2011.

Results!2011

Financial'developments

Business"results"developed"according"to"the"expectations"stated"in"November "2011."There" has"been"a"considerable"improvement."Revenues"in"2011"declined"only"slightly,"by"€"2.6"mln"to" €"343.3"mln"(2010:"€"345.9"mln),"despite"the"loss"of"turnover"from"the"closure"of"Roto"Smeets" Utrecht. "In"2011"press"occupancy"in"the"printing"plants"improved"and"there"was"an"increase"in" orders"for"the"MediaPartners"Group.

A"number"of"incidental"items"are"included"in"the"results"of"2011,"including"the"book"profit"on" the"sale"of"the"De"Wit"Binders"premises"in""Eindhoven,"the"release"of"the"reserve"for"the" Jubilee"Bonus,"and"a"benefit"in"the"environmental"reserve."Against"this"must"be"set"the"costs" of"reorganisation.

By"contrast,"the"business"result"(EBIT)"rose"to"€"3.1"mln"as"against"€"P"23.9"mln"in"2010."The" increase"was"mainly"the"result"of"the"special"impairment"of"€"16.3"mln"taken"in"2010.

Roto"Smeets"Group's"added"value"(AV)"declined"slightly:""€"165.8"mln"in"2011"compared"with"€" 166.1"mln""in"2010.""

The"net"result"came"out"at"€"P"0.7"mln,"which"an"improvement"of"€"21.8"mln"over"2010."" Personnel"costs"fell"slightly,"thanks"to"the"reorganisations"in"the"Print"Productions"business" line."Despite"the"increase"in"the"number"of"employees"in"the"MediaPartners"Group,"resulting" from"their"increased"order"book,"total"employee"numbers"fell"to"1.590"ftes"(fullPtime" equivalents)"at"year"end"2011"(2010:"1.616"ftes)."EBITDA"improved"by"€"7.5"mln"to"€"26.7"mln" (2010:"€"19.2"mln)."Cash"flow"from"normal"business"operations"improved"to"€"14.5"mln."Net" investments"in"material"fixed"assets"were"€"9.4"mln"(2010:"€"16.1"mln).""

Solvency"rose"to"37.4%"(year"end"2010:"34.5%)."According"to"the"definition"set"down"in"the" bank"covenants,"solvency"is"34.4%."This"means"that"Roto"Smeets"Group"which"fulfils"the" minimum"demand"agreed""with"the"banks"(>"30%)."

x'EUR'mln	2011	2010
Revenue	343.3	345.9
Added"value	165.8	166.1
EBITDA	26.7	19.2
Extraordinary"depreciation	P"0.8	P16.4
Business"result"(EBIT)	3.1	P23.9
Net"result	P"0.7	P"22.5
Cash"flow"from"normal"business"activities	14.5	P4.6
Debt"position	76.9	85.7

Key'figures

EBITDA/Added"value"(%)	16.1%	11.6%
Return"on"capital"employed"(ROCE,""%)	2.7%	P18.7%

For"an"unchanged"number"of"placed"ordinary"shares"(3,290,275),"loss"per"share"amounts"to" € P"0.23"(2010:"€"P"6.85).

Financing

At"year"end"2011,"total"debt"was"€"76.9"mln"as"against"€"85.7"mln"at"year"end"2010."

Total"interest"bearing"debt"at"year"end"2011"comprised:

• –"31.8%"(€"24.5"mln)"financial"leases"for"presses"and"peripheral"equipment;
• –"15.3%"(€"11.8"mln)"mortgage;
• –"52.9%"miscellaneous"bank"debts"(€"40.6"mln).

Dividend

In"view"of"the"negative"result,"no"dividend"payment"will"be"proposed.

Prospects

Prospects"for"2012"are"characterized"by"insecurity"in"the"general"climate"regarding"(and" possible"reactions"to)""the"crisis.""The"second"half"of"2011"gave"us"higher"volumes"and" improved"pricing"(especially"in"rotogravure),"but"bidding"at"the"start"of"2012"has"already" shown"signs"of"instability."This,"combined"with"high"initial"quotes"from"paper"suppliers,"has" hampered"our"business."It"is"evident"that"a"number"of"RSG's"most"important"competitors"are" seriously"concerned"about"their"market"share"for"the"first"half"of"2012,"and"are"pricing" aggressively.

In"order"to"encourage"the"Marketing"Communications"business"line"to"grow"without" restraint,"options"for"MediaPartners"Group"to"expand"are"being"explored."The"market"in" which"MPG"operates"is"moving"rapidly,"and"margins"remain"under"pressure."Searching"for" new"markets"(including"those"abroad)"is"also"being"encouraged"by"increasing"demands"for" exclusivity"from"major"clients.

Another"important"element"that"can"slow"our"recovery"is"the"increase"in"labour"costs."The" social"costs,"sectoral"unemployment"premium,"and"the"health"care"premium"have"all"been" increased"in"2012."These"factors"together"vitiate"a"large"part"of"the"improvements"gained"in" 2011."This"means"that,"despite"our"satisfaction"with"2011,"in"2012"RSG"is"still"confronted"with" new"challenges"in"the"international"are"in"which"it"operates.

Given"the"market"conditions"described"in"this"annual"report,"it"would"not"be"responsible"to" make"any"statements"about"results"in"the"current"year.

Important!financial!dates,!2012!

Call"for"AGM"	28"March"2012"
Registration"date"	11"April"2012
AGM"	9""May"2012

business"update"Q1 9"May"2012 halfPyear"figures 23"August"2012 business"update"Q3 8"November"2012

Appendices:!Annual!figures!2011

Deventer,"15"March"2012

Roto"Smeets"Group"NV" Management"Board

For"more"information"call:"Joost"de"Haas,"CEO,"+31"570P69"49"33

Supplementary'information:

The'figures'in'the'press'release'are'based'on'the'consolidated'financial'accounts'for'2011,'which' will'be'presented'for'adoption'to'the'General'Shareholders''Meeting.'The'figures'in'the'press' release'have'not'been'audited.

The'annual'report'with'the'complete'consolidated'balance'will'be'made'available'on'28'March'2012..' The'Shareholders''Annual'General'Meeting'this'year'will'be'held'on'Wednesday'9'May'at'15:00'hrs'in' the'Rosarium,'Amsterdam.'The'usual'press'conference'will'be'held'immediately'afterwards.'Ediros' can'state'their'attention'to'attend'to'emily.knegtel@rotosmeets.com.

Profile

Roto'Smeets'Group'NV'shares'are'traded'on'the'NYSE'Euronext'exchange.'Roto'Smeets'Group'is' an'organisation'of'service'companies'that'transform'their'clients''communications,'with'added' value,'into'printed'and'multimedia'productions.'The'business'units'are'clustered'into'two' business'lines:

Print'Productions,'concerned'with'the'efficient'production'of'full'service,'webSbased'printing;' and'Marketing'Communications,'which'provides'the'optimum'facilitation''of'the'client's'own' communications'channels,'using'effective,'crossSmedia'communications'concepts.

Consolidated profit and loss account

(amounts x € 1.000)	2011	2010	index
Total revenue	343,264	345,860	99
Cost of raw materials and consumables	-142,272	-146,180	97
Cost of subcontracted work and other external costs	-35,158	-33,581	105
Value-added	165,834	166,099	100
Other revenue	896	546
	166,730	166,645
Personnel expenses	-103,857	-106,699	97
Depreciation tangible fixed assets	-22,707	-26,746	85
Exceptional impairments	-818	-16,368
Other operating costs	-36,218	-40,731	89
Operating result	3,130	-23,899
Financing income	295	304
Financing costs	-3,949	-4,480
Result before taxation	-524	-28,075
Income tax	-222	5,528
Result after taxation	-746	-22,547
Attributed to:
Shareholders Roto Smeets Group NV	-746	-22,547
Key Figures
Average number of outstanding ordinary shares	3,290,275	3,290,275
Attributed to shareholders Roto Smeets Group NV:
Ordinary and diluted earnings per share (€)	-0.23	-6.85
Value-added in % of revenue	48.3%	48.0%

CONSOLIDATED BALANCE SHEET

(amounts x € 1.000)	31-12-11	31-12-10
ASSETS
Fixed assets
Tangible fixed assets	125,795	139,563
Investment properties	14,256	4,831
Associated companies / joint ventures	-	-
Deferred tax assets	9,968	10,724
Other financial fixed assets	769	512
	150,788	155,630
Current assets
Stocks	6,500	6,962
Trade receivables	52,164	55,179
Other receivables / prepayments	7,360	5,539
Cash and cash equivalents	444	1,313
	66,468	68,993
Assets classified as held for sale	-	4,481
	66,468	73,474
Total assets	217,256	229,104
EQUITY AND LIABILITIES
Equity attributed to equity holders of Roto Smeets Group NV
Issued share capital	16,451	16,451
Share premium	12,833	12,833
Revaluation reserve	3,708	-
Retained earnings	50,704	51,450
Other reserves	-2,338	-1,613
Total equity	81,358	79,121
Long-term liabilities
Provisions	4,258	8,702
Interest-bearing loans:
Loans	11,000	11,750
Lease obligations	18,445	17,944
	33,703	38,396
Current liabilities
Trade and other liabilities	45,139	45,482
Finance companies	40,726	43,513
Interest bearing loans	6,771	12,451
Income tax payable	4,462	4,083
Financial derivatives	2,045	1,755
Provisions	3,052	4,303
	102,195	111,587
Total liabilities	135,898	149,983
Total equity and liabilities	217,256	229,104

Consolidated overview of realised and unrealised results

(amounts x € 1.000)	2011	2010
Result after tax	-746	-22,547
Unrealised results
Value changes forward currency contracts	-567	-1,378
Foreign currency translation of foreign subsidairies	-313	14
Revaluation investment properties	4,944	-
Taxation on results through equity	-1,081	351
Unrealised results after taxes	2,983	-1,013
Total realised and unrealised results after taxes	2,237	-23,560
Attributed to:
Shareholders Roto Smeets Group NV	2,237	-23,560

Consolidated overview of changes in equity

(amounts x € 1.000)	issued capital	share premium	Revaluation reserve	retained earnings	other reserves	total
Balance as at January 1, 2011	16,451	12,833	-	51,450	-1,613	79,121
Result after taxes Unrealised results after taxes Total realised and unrealised results after			- 3,708	-746	-725	-746 2,983
taxes	-	-	3,708	-746	-725	2,237
	-	-	3,708	-746	-725	2,237
Balance as at December 31, 2011	16,451	12,833	3,708	50,704	-2,338	81,358

(amounts x € 1.000)	issued capital	share premium	Revaluation reserve	retained earnings	other reserves	total
Balance as at January 1, 2010	16,451	12,833	-	73,997	-600	102,681 0
Result after taxes Unrealised results after taxes			- -	-22,547	-1,013	-22,547 -1,013
Total realised and unrealised results after taxes	-	-	-	-22,547	-1,013	-23,560
Balance as at December 31, 2010	- 16,451	- 12,833	- -	-22,547 51,450	-1,013 -1,613	-23,560 79,121

Consolidated cash flow statement

(amounts x € 1.000)	2011	2010
Cash flow from operating activities
Net result	-746	-22,547
Depreciation and exceptional impairments	23,525	43,114
Profit on sale of tangible fixed assets	-2,243	-
(Deferred) taxation	-480	-4,740
Other non-cash items	-4,079	-1,610
Changes in
Stock	462	2,107
Trade receivables	2,196	7,171
Other receivables / prepayments	-1,821	1,849
Trade and other payables	37	-14,077
Provisions	-2,309	-15,860
Cash flow from operating activities	14,542	-4,593
Cash flow from investing activities
Investments in tangible fixed assets	-9,371	-17,045
Divestments in tangible fixed assets	2,676	837
Repayments on loans	1	809
	-6,694	-15,399
Cash flow from financing activities
Withdrawn risk-bearing loans	2,790	9,000
Repayments risk-bearing loans	-8,719	-9,497
Finance companies	-2,787	20,579
	-8,716	20,082
Effect of changes in exchange rates	-1	3
Net change in cash and cash equivalents	-869	93
Cash and cash equivalents at beginning of year	1,313	1,220
Cash and cash equivalents at end of year	444	1,313

Segment information

The following summary shows the segment information in 2011

(amounts x € 1.000)	Print Productions	Marketing Communications	eliminations	total
Revenue Intersegment revenue	324,883 -	18,381 -	- -	343,264 0
Total revenue	324,883	18,381	-	343,264
Net results	-2,113	1,367	-	-746
Assets and liabilities Tangible fixed assets Other assets Investment properties Unallocated assets Total assets	125,026 54,839	408 6,110	- -142	125,434 60,807 14,256 16,759 217,256
Liabilities Unallocated liabilities Total liabilities	68,841	4,616	-142	73,315 62,583 135,898
Other information Investments in tangible fixed assets Depreciation including exceptional impairments	9,074 23,446	297 79		9,371 23,525

The following summary shows the segment information in 2010

(amounts x € 1.000)	Print	Marketing	eliminations	total
	Productions	Communications
Revenue	329,231	16,629	-	345,860
Intersegment revenue	-	-	-	0
Total revenue	329,231	16,629	-	345,860
Net results	-23,520	973	-	-22,547
Assets and liabilities
Tangible fixed assets	138,876	190	-	139,066
Other assets	63,091	4,632	-142	67,581
Assets classified as held for sale	4,481	-	-	4,481
Investment properties				4,831
Unallocated assets				13,145
Total assets				229,104
Liabilities	74,701	2,192	-142	76,751
Unallocated liabilities				73,232
Total liabilities				149,983
Other information
Investments in tangible fixed assets	16,972	73		17,045
Depreciation including exceptional impairments	43,036	78		43,114