Schouw & Co. — Earnings Release 2015

Mar 4, 2016

schouw+c2

TO: THE DANISH FINANCIAL SUPERVISORY AUTHORITY AND NASDAQ COPENHAGEN

COMPANY ANNOUNCEMENT NO. 4/2016, 4 MARCH 2016 2 PAGES

The Board of Directors has approved the 2015 Annual Report

Realised in 2015

• Revenue rose to DKK 12.6 billion (2014: 11.8).
• EBIT up to DKK 831 million (2014: 708), which was much better than expected during the year.
• Cash flows from operations improved by more than DKK 500 million to DKK 1,171 million, mainly due to lower working capital. Free cash flow of DKK 602 million.
• All portfolio companies reported revenue and EBIT improvements relative to 2014.
• NIBD was a net deposit of DKK 511 million.
• High level of activity in portfolio companies: BioMar set up a joint venture in China, Fibertex Personal Care resolved investment in printing facilities in Malaysia, Fibertex Nonwovens acquired company in Turkey, and Hydra-Grene agreed to acquire its much larger Swedish peer Specma.
• Our ROIC improved for the sixth consecutive year, reaching 18.3%, excluding goodwill, and 15.1% when stated including goodwill.

Outlook for 2016

• Still very competitive markets, but earnings are expected to remain attractive.
• Completion of GPV expected. First time in ten years, a new leg is added to the portfolio.
• We expect 2016 revenue to be around DKK 14.2 billion (2015: 12.6) and EBIT in the range of DKK 760-850 million (2015: 831). These numbers are stated without the effect of the GPV acquisition.
• The share of profit in associates etc. is expected to be DKK 75-85 million after tax.
• Proposal to increase the dividend for the 2015 financial year by 25% to DKK 10 per share.

BioMar

Volumes sold were down on 2014, but revenue was up by 6%, mostly due to higher raw materials prices and currency appreciation. EBIT grew to DKK 447 million (2014: 434) mainly as a result of changes in foreign exchange rates, proper cost control and margin management in all regions. Facing challenging market conditions, and a slight drop in EBIT is expected relative to 2015.

Fibertex Personal Care

Revenue was marginally up from 2014, but EBIT was up by 47% to DKK 253 million (2014: 171) due to efficient operations, attractive raw materials prices and favourable FX rate developments. EBIT for 2016 is expected lower than in 2015.

Aktieselskabet Schouw & Co. · Chr. Filtenborgs Plads 1 · DK-8000 Aarhus C · www.schouw.dk

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Aktieselskabet Schouw & Co. · Chr. Filtenborgs Plads 1 · DK-8000 Aarhus C · www.schouw.dk

Fibertex Nonwovens

Revenue up by 17% and EBIT up by 23% to DKK 76 million in 2015. Improvements expected to continue in 2016, which will be a year of consolidating past investments.

Hydra-Grene

Revenue up to DKK 603 million (2014: 566), and EBIT up by 30% to DKK 78 million, driven by a high level of activity in the wind turbine segment. Specma acquisition will lift 2016 revenue and earnings, but market expectations moderate.

Kramp (20% owned)

Revenue up by 5% to DKK 5,126 million and EBIT rose by 17% to DKK 474 million. Revenue expected to improve and EBIT to remain flat in 2016 despite the challenging conditions facing the agricultural sector.

Jørn Ankær Thomsen
Chairman

Jens Bjerg Sørensen
President

Schouw & Co. will be hosting a teleconference (in Danish) for analysts, the media, etc. on

FRIDAY, 4 MARCH 2016 at 09.00 CET

Those wishing to attend the teleconference are invited to call tel. +45 8025 0187 using pin 53583916#.

An accompanying presentation can be downloaded from www.schouw.dk.

Questions relating to the above should be directed to Jens Bjerg Sørensen, President, tel. +45 8611 2222.