Schouw & Co. — Interim / Quarterly Report 2011

Aug 18, 2011

STOCK EXCHANGE ANNOUNCEMENT

NO. 10/2011, AUGUST 18, 2011 31 PAGES

INTERIM REPORT – FIRST HALF YEAR OF 2011

HIGHLIGHTS

• Schouw & Co. recorded a highly satisfactory improvement on ordinary operations in the first six months of 2011.
• Revenue improved by 26% to DKK 4,949 million, driven by improvements in all of our businesses.
• EBIT was up by DKK 129 million to a profit of DKK 157 million.
• Value adjustment of financial investments reduced the profit by DKK 285 million, leading to a loss before tax of DKK 194 million.
• Guidance for the full-year consolidated revenue raised from around DKK 11 billion to around DKK 11.5 billion.
• Full-year EBIT guidance raised from DKK 450–525 million to the range of DKK 525–600 million including positive effects of approximately DKK 15 million from the acquisition of Tharreau Industries.
• The current turbulence in the financial markets causes increased uncertainty for businesses in general that has not been reflected in full-year expectations.

Schouw & Co. will be reviewing the financial statements for the six months to June 30, 2011 online and will be hosting a teleconference (in Danish) for analysts, the media and other interested parties on

THURSDAY, AUGUST 18, 2011 AT 15.30

The presentation will be webcast. A link to the presentation is available at the Schouw & Co. website, www.schouw.dk, where the presentation will also be available for subsequent viewing. Those wishing to attend the teleconference are invited to call tel. +45 3271 4767.

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

AKTIESELSKABET SCHOUW & CO.

Chr. Filtenborgs Plads 1 DK-8000 Aarhus C

Company reg. (CVR) no. 63965812

Tel. +45 86 11 22 22 Fax +45 86 11 33 22

CONTENTS

Financial highlights 2
Interim report 3
Business areas 6
Management statement 20
Income statement 21
Cash flow statement 22
Balance sheet 23
Statement of changes in equity 25
Notes to the financial statements 26

This is a translation of Schouw & Co.'s Interim Report for the six months ended June 30, 2011. The original Danish text shall be controlling for all purposes, and in case of discrepancy, the Danish wording shall be applicable.

CONSOLIDATED FINANCIAL HIGHLIGHTS

AMOUNTS IN DKK MILLI O N JANUARY 1 – JUNE 30

GROUP SUMMARY	Q2 2011	Q2 2010	YTD 2011	YTD 2010	2010 TOTAL
Revenue	2,762.1	2,236.0	4,949.5	3,932.4	9,450.8
EBITDA	220.3	159.2	348.0	213.8	752.8
EBIT before goodwill impairment	125.1	64.9	156.6	27.9	368.6
Operating profit (EBIT)	125.1	64.9	156.6	27.9	368.6
Profit from associates	(12.2)	(0.2)	(23.5)	(0.3)	(0.6)
Profit from divestments	0.0	1.1	0.0	1.1	1.1
Value adjustment of financial investments**	(466.4)	(170.3)	(285.1)	(230.7)	(518.1)
Net financials before value adjustment of financial investments	(24.2)	(29.9)	(41.6)	(51.4)	(92.2)
Profit before tax	(377.7)	(134.3)	(193.6)	(253.4)	(241.2)
Tax on profit	80.6	37.2	24.6	66.3	114.6
Profit for the period from continuing operations	(297.1)	(97.1)	(169.0)	(187.1)	(126.6)
Profit for the period from discontinuing operations	0.0	22.6	0.0	110.8	166.8
Profit for the period	(297.1)	(74.5)	(169.0)	(76.3)	40.2
Share of equity attributable to shareholders of Schouw & Co.	3,986.1	4,438.4	3,986.1	4,438.4	4,391.6
Minority interests	48.2	368.5	48.2	368.5	3.5
Total equity	4,034.3	4,806.9	4,034.3	4,806.9	4,395.1
Total assets	9,736.3	10,095.4	9,736.3	10,095.4	8,899.9
Net interest-bearing debt	3,018.0	2,508.6	3,018.0	2,508.6	2,166.4
Working capital	2,072.8	1,546.3	2,072.8	1,546.3	1,614.0
Other financial data
Average number of employees	3,275	3,062	3,228	3,067	3,166
Cash flows from operating activities	82.6	186.8	(112.3)	123.8	444.4
Investments in property, plant and equipment	128.3	108.2	327.4	217.0	472.3
Depreciation of property, plant and equipment	78.2	80.1	157.9	158.6	318.3
Return on equity (%) *	(1.5)	(6.9)	(1.5)	(6.9)	(0.5)
ROIC (%) *	11.8	6.5	11.8	6.5	9.8
Equity ratio (%)	41.4	47.6	41.4	47.6	49.4
EBITDA margin (%)	8.0	7.1	7.0	5.4	8.0
EBIT margin (%)	4.5	2.9	3.2	0.7	3.9
Per share data
Earnings per share (of DKK 10)	(12.61)	(3.45)	(7.12)	(5.24)	(0.97)
Diluted earnings per share (of DKK 10)	(12.57)	(3.44)	(7.09)	(5.23)	(0.97)
Net asset value per share (of DKK 10)	169.93	178.84	169.93	178.84	183.93
Share price at end of period (of DKK 10)	136.00	124.00	136.00	124.00	133.50
Price/net asset value	0.80	0.68	0.80	0.68	0.73
P/E *	Neg.	Neg.	Neg.	Neg.	neg.
Market capitalisation	3,190.1	3,077.4	3,190.1	3,077.4	3,187.5

The financial ratios have been calculated in accordance with "Recommendations & ratios 2010", issued by the Danish Society of Financial Analysts.

* Annualised over the latest 12 months.

** Value adjustment consists of value adjustments and dividends from the holdings of shares in Vestas and Lerøy.

	Q2 2011	Q2 2010	Change
Revenue	2,762.1	2,236.0	526.1
EBITDA	220.3	159.2	61.1
EBIT	125.1	64.9	60.2
Financial investments	(466.4)	(170.3)	(296.1)
Profit before tax	(377.7)	(134.3)	(243.4)

FINANCIAL PERFORMANCE

	YTD 2011	YTD 2010	Change
Revenue	4,949.5	3,932.4	1,017.1
EBITDA	348.0	213.8	134.2
EBIT	156.6	27.9	128.7
Financial investments	(285.1)	(230.7)	(54.4)
Profit before tax	(193.6)	(253.4)	59.8

The companies of the Schouw & Co. Group had a good first half year overall. Consolidated revenue was up by 26% from DKK 3,932 million in H1 2010 to DKK 4,949 million in H1 2011. Most of the improvement originated from BioMar, but all companies of the Group reported notable, positive developments.

EBIT improved strongly from DKK 28 million in H1 2010 to DKK 157 million in H1 2011. The good performance was especially attributable to substantial improvements by BioMar and Grene, but Hydra-Grene also reported progress and Martin reduced its loss substantially compared with H1 2010. Our two nonwovens businesses, Fibertex Personal Care and Fibertex Nonwovens, on the other hand, suffered a profit setback due to rising raw materials prices in the first six months of the year.

Overall, the H1 2011 EBIT was better than expected, and we consider the improvement to be highly satisfactory.

The Group's results from associates, which is stated after tax, fell from break even in H1 2010 to a loss of DKK 23 million in H1 2011. The loss, which was much greater than anticipated, was due to writedowns on venture investments in Incuba.

The H1 2011 profit before tax was affected by a large negative value adjustment on financial investments of DKK 285 million, as compared with a negative value adjustment of DKK 231 million in H1 2010.

The Group's other financial items improved from an expense of DKK 51 million in H1 2010 to an expense of DKK 42 million in H1 2011.

This reduced the consolidated loss before tax from DKK 253 million in H1 2010 to a loss of DKK 194 million in H1 2011.

LIQUIDITY AND CAPITAL RESOURCES

All companies of the Schouw & Co. Group have made it a priority in recent years to reduce their working capital tieup and net interest-bearing debt.

During 2010, some of the Group's businesses again began to pursue a more expansive strategy after a year of considerable caution in 2009. In several areas, it has been necessary to step up investments and the working capital tie-up, even though generally improving profitability continues to take priority over revenue growth.

The recent economic turmoil across large parts of the world serves to emphasise that working capital and debt remain important areas of priority.

Operating activities resulted in a cash outflow of DKK 112 million in H1 2011, compared with a cash inflow of DKK 124 million in H1 2009. Cash flows for investing activities including acquisition of enterprises in H1 2011 amounted to DKK 540 million, against DKK 224 million in H1 2010.

The consolidated net interest-bearing debt amounted to DKK 3,018 million at June 30, 2011, as compared with DKK 2,509 million at June 30, 2010. In addition to the operational effects, the net interest-bearing debt was impacted by major investments made by BioMar and Fibertex Personal Care. Other events causing changes to the net interest-bearing debt included the divestment of Sjøtroll Havbruk in the autumn of 2010 and the acquisition of Tharreau Industries in the spring of 2011 as well as dividend payments of DKK 71 million net to the shareholders of Schouw & Co. and treasury share purchases totalling DKK 181 million.

Of the consolidated net interest-bearing debt at June 30, 2011, the parent company's share amounted to DKK 86 million.

Mainly due to the greater volume of business activity and the higher prices of raw materials, the Group's working capital tie-up increased from DKK 1,546 million at June 30, 2010 to DKK 2,073 million at June 30, 2011.

FINANCIAL CALENDAR FOR 2011

November 3, 2011 Release of Q3 2011 interim report

The company will provide detailed information on its website, www.schouw.dk, and through stock exchange announcement about contact and time for the teleconference to be held in connection with the announcement of the Q3 2011 interim report.

FINANCIAL INVESTMENTS

Schouw & Co. continues to hold 4,000,000 shares in Vestas, equal to 1.96% of the share capital, and 1 million shares in Lerøy Seafood Group, equal to 1.83% of the share capital.

Combined, the financial investments made a negative contribution of DKK 285 million to the consolidated financial items in H1 2011. In H1 2010, the effect was negative at DKK 231 million.

The contribution from financial investments in H1 2011 included dividends received in respect of the shares in Lerøy of DKK 9.6 million.

	At Jun. 30,	At Dec. 31,
VESTAS	2011	2010	Change
Number of shares held	4,000,000	4,000,000	0
Price (DKK)	119.5	176.1	(56.6)
Market value (DKKm)	478.0	704.4	(226.4)

At Jun. 30,	At Dec. 31,
2011	2010	Change
1,000,000	1,000,000	0
127.0	198.5	(71.5)
95.78	95.34	0.44
121.6	189.3	(67.7)

* DKK -0.6 million of this change has been charged directly to equity under exchange rate adjustments.

SCHOUW & CO. SHARES

Schouw & Co.'s share capital comprises 25,500,000 shares with a nominal value of DKK 10 each for a total share capital of DKK 255,000,000. Each share carries one vote, for a total of 25,500,000 votes.

Schouw & Co. shares appreciated by 1.9% during the first half year of 2011, from DKK 133.50 per share at December 31, 2010 to DKK 136.00 per share at June 30, 2011.

TREASURY SHARES

At the end of 2010, the company held 1,623,275 treasury shares, equal to 6.37% of the share capital.

During the first quarter of 2011, Schouw & Co. acquired 76,000 treasury shares at an aggregate price of DKK 10 million and allocated 88,552 shares for the Group's sharebased incentive schemes and employee share schemes.

During the second quarter of 2011, Schouw & Co. acquired 460,750 treasury shares at an aggregate price of DKK 66 million and allocated 28,000 shares for the Group's sharebased incentive scheme.

Accordingly, the company held 2,043,473 treasury shares at June 30, 2011, equal to 8.01% of the share capital.

The portfolio of treasury shares is recognised at DKK 0.

On April 14, 2011, the shareholders in general meeting renewed the authority permitting Schouw & Co. to acquire and hold up to 20% of the company's shares.

EVENTS AFTER THE BALANCE SHEET DATE

Other than as set out elsewhere in this interim report, Schouw & Co. is not aware of events occurring after June 30, 2011, which are expected to have a material impact on the Group's financial position or outlook.

OUTLOOK

Overall, the businesses of the Schouw & Co. Group performed well during the first six months of 2011, reporting substantial improvements in both revenue and EBIT. For several of the businesses, the improvements reported were a good deal stronger than expected.

Our businesses have gone into the second half of 2011 with good competitive strength. Adjustments have been made in preparation for the expected market conditions, a host of business initiatives have been taken and our businesses have exciting product launches in their pipelines, all of which creates a foundation for good results.

It is a key priority for us to ensure that the Group's businesses make the necessary investments in capacity, development and innovation, also in difficult years. In 2010 and 2011, we have made substantial investments outside Denmark in order to expand the level of our international business activity.

We monitor very closely the economic turbulence currently affecting a large number of markets, especially in Europe and the USA. Some of our businesses are very sensitive to the situation while others are more robust. For all of our businesses, however, the economic turmoil creates added uncertainty about currencies and interest rates as well as about customers' purchasing power and their ability to pay.

In the second half of 2011, we will first and foremost remain focused on optimising existing operations and phasing out non-strategic activities not generating sufficient profitability. In light of the economic turmoil, we will increase our attention on optimising the use of our capital resources aiming to reduce our net interest-bearing debt by the end of the year.

Among the individual companies of the Group, BioMar, Grene and Hydra-Grene all raise their full-year EBIT guidance.

The other wholly owned businesses, Martin, Fibertex Personal Care and Fibertex Nonwovens, all maintain their previous earnings guidance. In addition, Fibertex Nonwovens raises its EBIT guidance by an amount equal to the positive effects from the acquisition of Tharreau Industries.

The partly-owned business Xergi maintains its expectations of an earnings improvement relative to last year, but there is greater uncertainty as to the extent of the improvement.

The Schouw & Co. Group raises its guidance for the fullyear 2011 consolidated revenue to around DKK 11.5 billion against the previous forecast of approximately DKK 11 billion.

In light of the general economic turmoil, we maintain a relatively wide guidance range for our earnings. However, we raise the full-year EBIT forecast by a substantial margin to the range of DKK 525-600 million from the previous forecast of DKK 450-525 million. The upgraded guidance includes approximately DKK 15 million from the effects of the acquisition of Tharreau industries.

The guidance for profit/loss from associates was lowered by DKK 10 million after the first quarter of 2011 and is now reduced by a further DKK 10 million due to the writedowns on venture investments in Incuba.

Consolidated financial items, calculated net of the effect of the financial investments, constitute an expense which we expect to reduce to around DKK 100 million as compared with the previous estimate of approximately DKK 110 million. This updated guidance also includes the effects of the acquisition of Tharreau industries.

PROFIT GUIDANCE

EBIT (DKK million)	After Q2	Original
BioMar	280-300	240-260
Fibertex Personal Care	145-155	145-155
Fibertex Nonwovens	15	0
Grene	70-75	50-60
Hydra-Grene	55-65	50-60
Martin	(0-25)	(0-25)
Xergi (50%)	(0-5)	0
Others	(10)	(10)
Total EBIT	525-600	450-525
Associates	(25-30)	(5-10)
Financials*	(100)	(110)
Profit before tax*	395-475	330-410

* Before the effects of financial investments.

ACCOUNTING POLICIES

The interim report is presented in accordance with IAS 34 "Interim financial reporting" as adopted by the EU and additional Danish disclosure requirements for interim reports of listed companies.

Other than as set out below, the accounting policies are unchanged from those applied in Annual Report 2010.

Effective from January 1, 2011, Schouw & Co. implemented IFRS 24 "Related party disclosures", amendments to IFRIC 14 and "Improvements to IFRS May 2010". The implementation did not affect recognition or measurement.

Reference is made to Annual Report 2010, which contains a full description of the accounting policies.

JUDGMENTS AND ESTIMATES

The preparation of interim reports requires Management to make accounting judgments and estimates that affect the application of accounting policies and recognised assets, liabilities, income and expenses. The actual results may differ from these judgments.

The most significant estimates are unchanged from December 31, 2010, and the most significant judgment uncertainty related thereto is the same as used in preparing the Annual Report 2010.

ROUNDINGS AND PRESENTATION

The amounts appearing in this interim report have generally been rounded to one decimal place using standard rounding principles. Accordingly, some additions may not add up.

BioMar is the world's third-largest manufacturer of quality feed for the fish farming industry. The company divides its operations into three geographical regions: the North Sea (Norway and the UK), the Americas (Chile) and Continental Europe.

FINANCIAL PERFORMANCE

The strong Q1 performance continued into the second quarter, and BioMar generated revenue of DKK 2,697 million in H1 2011, compared with DKK 1,978 million in H1 2010. The improvement was the result both of substantially greater volumes and higher average selling prices driven by developments in raw materials prices.

The large H1 improvement was mainly attributable to the operations in Norway and Chile. Growth returned to the general Norwegian market in the second quarter after a stagnant first quarter, producing overall market growth of about 4% relative to H1 2010. BioMar outperformed the market growth, as its market share returned to normal in 2011 after dropping to an unusual low in the first half of 2010. Chile also recorded strong growth in the first half, driven by general market growth. The sales stability in Continental Europe was a positive surprise, as a certain setback had been expected following the decent Q1 improvement. Accordingly, Continental Europe generated fair growth in the first half of 2011.

Following yet another strong quarter, EBIT improved strongly from a DKK 30 million loss in H1 2010 to a DKK 57 million profit in H1 2011. The advance was mainly attributable to operations in Norway and Chile, but Continental Europe also contributed.

The working capital tie-up rose from DKK 373 million at June 30, 2010 to DKK 588 million at June 30, 2011. The increase was to a large degree due to the higher activity and to price increases on raw materials, but a number of other factors also contributed, including an above-normal inventory build-up ahead of the high season.

The net interest-bearing debt rose from DKK 672 million at June 30, 2010 to DKK 755 million at June 30, 2011. The divestment of the subsidiary Sjøtroll Havbruk in the autumn of 2010 had a positive impact on net interest-bearing debt, whereas the change in working capital and the DKK 250 million distribution of dividend to the parent company Schouw & Co. in the second quarter of 2011 had a negative impact.

BUSINESS DEVELOPMENT

Following a moderate increase in Norway's overall feed market in the first half of 2011, we expect market growth to pick up in the second half. As always, growth will depend on a number of unpredictable factors. In addition to water temperatures, an important factor deserving particular mention is fish farmers' work to fight disease, as this may temporarily reduce feed consumption. Having expanded its factory in northern Norway, BioMar is now able to meet the expected increase in demand.

Developments in Chile remain positive. Optimism abounds in the fish farming industry, and there are still no indications of any major disease problems.

Salmon prices fell sharply in the second quarter for no specific reason. However, prices are still at a level that enables BioMar's salmon customers to generate healthy earnings, both in the North Sea region and in Chile. With prospects of an increase in supply in the second half of the year, especially from Chile, prices should be expected to remain under pressure. However, from an overall value chain perspective, it will probably serve a good purpose for prices to find a more natural level.

In Continental Europe, large parts of the fish farming industry are to some degree expressing optimism as sea bass and sea bream continue to fetch good prices, mainly due to the moderate supply. Prices on single-portion trout are taking a slightly upward trend, albeit from relatively low levels. So far, large trout are holding their prices fairly well, but obviously they may be impacted by falling salmon prices.

The efforts to establish production in Costa Rica are progressing to plan and the factory is still expected to be completed in the first half of 2012.

OUTLOOK

The guidance provided for 2011 assumed substantial improvements in the first half year. Actual improvements have been somewhat greater than anticipated, and prospects for growth remain good in both Norway and Chile.

As a result, BioMar raises its guidance for FY 2011 EBIT from the previous forecast of DKK 240–260 million to DKK 280–300 million despite the general pressure on gross margins. Revenue for 2011 is expected to be DKK 6.5–7.0 billion, but the revenue performance will depend strongly on developments in raw materials prices.

As always, fluctuating water temperatures and disease in fish stocks constitute material risk factors in respect of feed sales and, accordingly, in respect of earnings. In addition, it is essential that no major production problems or a similar situation occur in the recently commenced high season. Finally, the risk of losses on trade debtors remains severe in certain markets, especially in southern Europe.

	Q2	Q2	YTD	YTD	2010
DKK million	2011	2010	2011	2010	total
Volume (1000 t)	187	146	326	255	706
Revenue	1,563	1,189	2,697	1,978	5,419
- from the North Sea	734	488	1,229	798	2,672
- from the Americas	418	325	819	633	1,325
- from Continental Europe	411	376	649	547	1,422
Cost of sales			(1,235) (932) (2,129) (1,548) (4,235)
Gross profit	328	257	568	430	1,184

BIOMAR

AMOUNTS IN DKK MILLI O N	JANUARY 1 – JUNE 30
	Q2 2011	Q2 2010	YTD 2011	YTD 2010	2010 total
INCOME STATEMENT
Revenue	1,563.0	1,189.0	2,697.0	1,978.0	5,419.1
Gross profit	198.9	145.1	313.3	209.2	701.7
EBITDA	93.9	48.8	116.8	33.3	321.5
Depreciation	29.6	32.0	59.5	63.6	122.0
Operating profit (EBIT)	64.3	16.8	57.3	(30.3)	199.5
Value adjustment of shares in Lerøy	(31.6)	0.0	(58.7)	0.0	35.9
Financial items, net	(7.7)	(9.5)	(10.9)	(16.6)	(34.3)
Profit before tax	25.0	7.3	(12.3)	(46.9)	201.1
Tax on profit	(15.6)	(1.6)	(12.9)	10.6	(40.3)
Profit from continuing operations	9.4	5.7	(25.2)	(36.3)	160.8
Profit from discontinuing operations	0.0	22.6	0.0	110.8	166.8
Profit for the period	9.4	28.3	(25.2)	74.5	327.6
CASH FLOW
Cash flows from operating activities	46.4	145.6	(160.4)	3.8	170.9
Cash flows from investing activities	(49.6)	(43.3)	(105.5)	(111.6)	(235.6)
Cash flows from financing activities	69.1	(17.5)	274.5	119.8	(296.7)
BALANCE SHEET
Intangible assets *	312.2	357.7	312.2	357.7	339.0
Property, plant and equipment	1,012.0	857.0	1,012.0	857.0	968.8
Other non-current assets	55.9	127.9	55.9	127.9	71.8
Cash and cash equivalents	402.4	380.1	402.4	380.1	393.7
Other current assets	2,024.5	1,360.5	2,024.5	1,360.5	1,705.7
Assets held for sale	0.0	1,340.8	0.0	1,340.8	0.0
Total assets	3,807.0	4,424.0	3,807.0	4,424.0	3,479.0
Equity	1,299.4	1,820.3	1,299.4	1,820.3	1,635.7
Interest-bearing debt	1,157.2	1,052.1	1,157.2	1,052.1	632.7
Other creditors	1,350.4	1,058.1	1,350.4	1,058.1	1,210.6
Liabilities associated with assets held for sale	0.0	493.5	0.0	493.5	0.0
Total liabilities and equity	3,807.0	4,424.0	3,807.0	4,424.0	3,479.0
Average number of employees	754	652	743	647	709
FINANCIAL KEY FIGURES
EBITDA margin	6.0%	4.1%	4.3%	1.7%	5.9%
EBIT margin	4.1%	1.4%	2.1%	-1.5%	3.7%
ROIC (annualised)	20.0%	13.4%	20.0%	13.4%	15.7%
Working capital	588.1	372.6	588.1	372.6	368.9

* Excluding goodwill on consolidation in the parent company Schouw & Co.

Net interest-bearing debt 754.8 672.0 754.8 672.0 239.0

FIBERTEX PERSONAL CARE WHOLLY OWNED

Fibertex Personal Care is among the world's five largest manufacturers of spunbond/spunmelt nonwovens for the personal care industry, manufacturing mainly nappies, sanitary towels and incontinence products.

The Personal Care activities have been a part of Fibertex since 1998 and were hived off as an independent portfolio company of Schouw & Co. at the beginning of 2011.

FINANCIAL PERFORMANCE

Fibertex generated revenue of DKK 639 million in H1 2011, compared with DKK 593 million in H1 2010. The increase was driven by higher raw materials prices and the resulting higher selling prices, while the volume of products sold was lower than last year.

H1 2011 EBIT was DKK 56 million as compared with DKK 65 million in H1 2010. The earnings shortfall was mainly due to rising prices of raw materials during the first half, as selling prices are not adjusted until in subsequent quarters.

Fibertex increased its working capital tie-up from DKK 183 million at June 30, 2010 to DKK 217 million at June 30, 2011, mainly due to higher prices of raw materials. Net interest-bearing debt increased from DKK 388 million at June 30, 2010 to DKK 558 million at June 30, 2011, partly due to the construction of the new production line in Malaysia.

BUSINESS DEVELOPMENT

Fibertex Personal Care has production facilities in Denmark and Malaysia and is well-renowned in both Europe and Asia for its service, quality and innovation.

It is extremely important to the company's customers that they have very reliable supplies as well as sufficient flexibility in their sourcing of nonwovens, allowing them to respond to market fluctuations. The market is generally very demanding in terms of products and product performance, and product quality is a huge priority. The company works consistently to improve its products in order to meet customer demands for production optimisation. A very important aspect is for the products to meet high hygiene standards.

The nappies industry, the company's largest customer segment, has historically always been very innovative. Accordingly, Fibertex Personal Care invests regularly in innovation in order to secure availability of skills and equipment at the factories' technology centres in Denmark and Malaysia.

The share of revenue from specialty products is expected to continue to increase in 2011, including from the supersoft products, products with high performance leakage barriers, light-weight products as well as the print products that Fibertex can deliver through its partly-owned business Innowo Print in Germany.

OUTLOOK

Fibertex Personal Care anticipates a growing market, especially in Asia, where a healthy balance is expected to be struck between supply and demand in 2011.

Fibertex Personal Care will operate at high output capacity in 2011, and the new high-capacity line currently being built in Malaysia will lift capacity during the autumn. The new production line is expected to start up actual operations at the end of the year, so the extra capacity will not have any noteworthy effect in 2011.

Fibertex Personal Care maintains its guidance of revenue of approximately DKK 1.4 billion and EBIT in the range of DKK 145-155 million in 2011.

	Q2	Q2	YTD	YTD	2010
DKK million	2011	2010	2011	2010	total
Revenue	326	309	639	593	1,237
- Denmark	190	191	385	364	756
- Malaysia	136	118	254	229	481

FIBERTEX PERSONAL CARE

AMOUNTS IN DKK MILLI O N JANUARY 1 – JUNE 30

	Q2 2011	Q2 2010	YTD 2011	YTD 2010	2010 total
INCOME STATEMENT
Revenue	326.0	309.3	639.3	593.2	1,236.8
Gross profit	52.8	50.8	102.9	109.0	243.4
EBITDA	52.4	54.3	105.2	113.8	261.6
Depreciation	22.2	25.0	49.2	48.5	101.3
Operating profit (EBIT)	30.2	29.3	56.0	65.3	160.3
Financial items, net	(3.3)	(2.2)	(6.7)	(7.6)	(13.2)
Profit before tax	26.9	27.1	49.3	57.7	147.1
Tax on profit	(6.1)	(4.3)	(11.1)	(8.5)	(31.6)
Profit for the period	20.8	22.8	38.2	49.2	115.5
CASH FLOW
Cash flows from operating activities	60.9	36.2	98.5	89.3	169.6
Cash flows from investing activities	(64.6)	(52.9)	(185.8)	(70.2)	(161.7)
Cash flows from financing activities	1.1	47.3	83.7	12.3	(4.4)
BALANCE SHEET
Intangible assets *	27.3	30.7	27.3	30.7	28.5
Property, plant and equipment	873.9	725.2	873.9	725.2	766.1
Other non-current assets	84.9	102.3	84.9	102.3	96.4
Cash and cash equivalents	17.1	48.0	17.1	48.0	21.0
Other current assets	388.7	328.1	388.7	328.1	383.7
Total assets	1,391.9	1,234.3	1,391.9	1,234.3	1,295.7
Equity	540.9	546.4	540.9	546.4	529.6
Interest-bearing debt	575.5	435.6	575.5	435.6	492.3
Other creditors	275.5	252.3	275.5	252.3	273.8
Total liabilities and equity	1,391.9	1,234.3	1,391.9	1,234.3	1,295.7
Average number of employees	338	309	328	308	326
FINANCIAL KEY FIGURES
EBITDA margin	16.1%	17.6%	16.5%	19.2%	21.2%
EBIT margin	9.3%	9.5%	8.8%	11.0%	13.0%
ROIC (annualised)	15.4%	15.8%	15.4%	15.8%	18.2%
Working capital	217.0	183.2	217.0	183.2	226.2
Net interest-bearing debt	558.3	387.6	558.3	387.6	470.8

* Excluding goodwill on consolidation in the parent company Schouw & Co.

FIBERTEX NONWOVENS WHOLLY OWNED

Fibertex is a leading manufacturer of nonwovens, supplying needlepunched products for industrial and technical applications.

Effective in May 2011, Fibertex Nonwovens acquired 85.27% of the shares in French nonwovens manufacturer Tharreau Industries, which is recognised in Fibertex Nonwovens' financial statements as from the date of acquisition. The ownership interest was increased to 89.62% in July 2011 after the closing of a mandatory tender offer.

FINANCIAL PERFORMANCE

The existing Fibertex units generated revenue of DKK 248 million in H1 2011, compared with DKK 228 million in H1 2010. The revenue improvement was attributable to an increase in business activity and higher selling prices caused by higher prices of raw materials.

Tharreau Industries generated revenue of DKK 231 million in H1 2011, of which DKK 77 million is recognised in the financial statements of Fibertex Nonwovens bringing the H1 2011 net revenue to DKK 325 million.

H1 2011 EBIT before the effects of Tharreau Industries was a loss of DKK 5 million as compared with a DKK 1 million loss in H1 2010. Tharreau Industries generated EBIT of DKK 14 million in H1 2011, of which DKK 2 million is recognised in the financial statements of Fibertex Nonwovens.

Also, the H1 2011 EBIT was impacted by acquisition costs of DKK 7 million and the effect of the purchase price allocation in connection with the Tharreau industries acquisition.

Overall, EBIT for H1 2011 was a loss of DKK 10 million.

For all units, the H1 2011 EBIT was adversely impacted by substantially higher prices of raw materials that have not yet been fully translated into higher selling prices due to a certain time lag that exists until the market can rebalance raw materials prices and selling prices.

The working capital tie-up and the net interest-bearing debt rose relative to June 30, 2010, mainly due to the acquisition of Tharreau Industries. Equity was strengthened in the second quarter of 2011 through a capital contribution of DKK 100 million from the parent company Schouw & Co.

BUSINESS DEVELOPMENT

During the first half year of 2011, a number of significant price increases were implemented with a view to offsetting the developments in raw materials prices, so as to restore a satisfactory balance between raw materials prices and selling prices.

Fibertex Nonwovens has thoroughly modernised its existing production facilities in recent years, launching new and improved products in a bid to enhance its earnings power. As a result of these efforts, state-of-the-art and highly competitive production platforms are now in operation at the factories in Denmark and the Czech Republic.

The company has reduced its overall cost base and lifted its competitive strength. Most recently, the factory in the Czech Republic was expanded when a large production line was relocated from Denmark and given a technology upgrade enabling it to produce high-value products to the auto industry, for example. The project is expected to be fully implemented in the middle of the second half of 2011.

Fibertex Nonwovens has worked to align its operations to the market situation, preparing to capitalise on the potential of the growing product segments and geographical growth markets. Following the acquisition of Tharreau Industries, which manufactures specialist products for the automotive industry and for industrial applications, Fibertex Nonwovens has further lifted the potential for creating Europe's leading manufacturer of industrial nonwovens.

OUTLOOK

Fibertex Nonwovens anticipates moderate growth rates in 2011 relative to 2010. Demand has stabilised in most industrial markets, but uncertainty remains in respect of a few geographical markets and the challenging raw materials prices.

On the other hand, Fibertex Nonwowens stands to capitalise in 2011 on the efficiency-improving measures it has implemented and on increased sales of the new products it has launched in recent years.

The existing units of Fibertex Nonwovens are expected to generate H2 2011 revenue in line with the H1 figures but with an improved profit performance, so that the original forecast of FY 2011 EBIT of close to break even before the effects of Tharreau Industries can be met.

Tharreau Industries expects to generate H2 2011 revenue of slightly below the H1 figure, but with an EBIT margin of close to 10%. The effect of the purchase price allocation will be a depreciation of DKK 2 million in H2 2011, equal to a full-year effect of DKK 4 million in the coming year.

Overall, Fibertex Nonwovens expects to generate revenue of DKK 775–800 million and EBIT of around DKK 15 million after a total of DKK 9 million in acquisition costs and the effect of purchase price allocation relating to Tharreau Industries.

	Q2	Q2	YTD	YTD	2010
DKK million	2011	2010	2011	2010	total
Revenue	205	122	325	228	413
- Denmark	63	70	125	131	226
- Czech Republic	65	52	123	97	187
- France	77	-	77		- -

FIBERTEX NONWOVENS

AMOUNTS IN DKK MILLI O N JANUARY 1 – JUNE 30

	Q2 2011	Q2 2010	YTD 2011	YTD 2010	2010 total
INCOME STATEMENT
Revenue	204.8	121.8	324.5	228.2	413.1
Gross profit	28.4	22.5	47.2	43.7	67.1
EBITDA	6.3	10.7	13.0	19.3	25.6
Depreciation	13.7	10.4	23.2	20.6	41.9
Operating profit (EBIT)	(7.4)	0.3	(10.2)	(1.3)	(16.3)
Profit from associates	(1.6)	0.0	(3.2)	0.0	(0.3)
Financial items, net	(2.3)	(3.5)	(4.7)	(6.3)	(13.2)
Profit before tax	(11.3)	(3.2)	(18.1)	(7.6)	(29.8)
Tax on profit	1.5	(0.3)	2.9	(1.7)	12.4
Profit for the period	(9.8)	(3.5)	(15.2)	(9.3)	(17.4)
CASH FLOW
Cash flows from operating activities	(32.2)	(14.8)	(30.7)	(26.0)	(21.0)
Cash flows from investing activities	(202.6)	(0.7)	(206.3)	(15.2)	(23.7)
Cash flows from financing activities	271.6	16.2	273.9	41.0	45.1
BALANCE SHEET
Intangible assets *	72.0	0.4	72.0	0.4	2.3
Property, plant and equipment	545.6	404.1	545.6	404.1	393.7
Other non-current assets	19.5	20.0	19.5	20.0	25.2
Cash and cash equivalents	39.5	2.9	39.5	2.9	2.5
Other current assets	417.4	217.9	417.4	217.9	209.4
Total assets	1,094.0	645.3	1,094.0	645.3	633.1
Equity	388.4	170.4	388.4	170.4	259.2
Interest-bearing debt	547.6	386.5	547.6	386.5	310.5
Other creditors	158.0	88.4	158.0	88.4	63.4
Total liabilities and equity	1,094.0	645.3	1,094.0	645.3	633.1
Average number of employees	436	392	405	393	392
FINANCIAL KEY FIGURES
EBITDA margin	3.1%	8.8%	4.0%	8.5%	6.2%
EBIT margin	-3.6%	0.2%	-3.1%	-0.6%	-3.9%
ROIC (annualised)	neg.	neg.	neg.	neg.	neg.
Working capital	295.9	160.2	295.9	160.2	158.3
Net interest-bearing debt	508.2	383.6	508.2	383.6	308.0

* Excluding goodwill on consolidation in the parent company Schouw & Co.

Grene is a leading supplier of spare parts and accessories for the agricultural sector in the Nordic region, in Poland and, most recently, in Russia. In Denmark, Grene is also a supplier of technical articles, electrical products and services for industry.

FINANCIAL PERFORMANCE

Grene generated revenue of DKK 665 million in H1 2011, compared with DKK 616 million in H1 2010. All country organisations reported satisfactory revenue performances for the first half year ahead of the H1 2010 levels.

Grene reported a highly satisfactory EBIT improvement to DKK 44 million in H1 2011 from DKK 17 million in H1 2010.

Relative to June 30, 2010, Grene increased its working capital tie-up by DKK 49 million to DKK 439 million at June 30, 2011 due to the increased business activity and increased its net interest-bearing debt by DKK 20 million to DKK 484 million at June 30, 2011.

BUSINESS DEVELOPMENT

Grene is constantly working to offer the best products to the market and to provide the services demanded by the market in order to maintain its position as the leading supplier to the agricultural sector.

The company has been very successful in these efforts, and the Agro business is generating positive developments in all countries where Grene operates. Especially the two large markets of Denmark and Poland have developed very well. Driven by healthy revenue growth and tight cost management, both country organisations have enhanced their earnings substantially.

Effective April 1, 2011, Grene acquired the business activities of a small company based in southern Poland. As part of the transaction, Grene took over 22 employees and a warehouse inventory valued at DKK 8 million. This new activity is expected to contribute annual revenue of approximately DKK 25 million.

In Sweden, Grene took over as spare parts distributor for Kverneland, a leading agricultural brand. In light of the new distributorship and the otherwise positive revenue performance, Grene has started a 3,400 m2 expansion of the warehouse in Sweden. The overall investment amounts to approximately DKK 25 million, and construction is scheduled for completion by the end of the year.

The industry business also reported a positive H1 2011 performance, and the restructuring of Grene Industriservice that began in 2010 has produced positive results. Thanks to the measures that were approved and completed in 2010 and which have continued into 2011, Grene Industri-service has managed to turn things around and emerged from H1 2011 with a substantial improvement in earnings relative to last year.

OUTLOOK

Grene continues to see good development opportunities in the company's business areas. Grene is well positioned to meet the challenges of the market and the company is off to a good start to 2011.

Although the agricultural sector remains under pressure, especially in Denmark due to the high rate of indebtedness, activity is picking up, both for the dealers and for the farmers. However, the agricultural sector is still very sensitive to price adjustments and the current instability of the global economy, all of which may cause major fluctuations both in exchange rates and in interest rates.

Grene's Agro operations are performing well, and with the good start to the year, this has lifted expectations for the full-year results. This also applies to the Russian market, but the investment in new activities in Russia is not expected to make a positive contribution to the 2011 results.

Subject to the general uncertainty currently prevailing, Grene expects to generate FY 2011 revenue of over DKK 1.3 billion and EBIT in the range of DKK 70-75 million, up from the previous forecast of DKK 50–60 million.

	Q2	Q2	YTD	YTD	2010
DKK million	2011	2010	2011	2010	total
Revenue	358	334	665	616	1,237
- of which Industry	61	68	126	135	267
- of which Agro	297	266	539	481	970
- in Denmark	74	76	146	142	281
- in Poland	132	114	240	212	429
- in Sweden	45	38	81	66	133
- in Norway	25	21	41	35	67
- in Finland	10	9	16	15	33
- other Agro	11	8	15	11	27

GRENE

AMOUNTS IN DKK MILLI O N JANUARY 1 – JUNE 30

	Q2 2011	Q2 2010	YTD 2011	YTD 2010	2010 total
INCOME STATEMENT
Revenue	357.5	334.8	664.7	616.3	1,237.0
Gross profit	119.2	101.1	217.4	184.3	391.5
EBITDA	36.8	22.6	59.3	31.2	79.6
Depreciation	7.7	7.0	15.2	13.8	29.3
Impairment	0.0	0.0	0.0	0.0	2.1
Operating profit (EBIT)	29.1	15.6	44.1	17.4	48.2
Profit from divestments	0.0	1.1	0.0	1.1	1.1
Financial items, net	(5.3)	(4.8)	(9.4)	(5.2)	(11.0)
Profit before tax	23.8	11.9	34.7	13.3	38.3
Tax on profit	(5.9)	(2.8)	(8.4)	(3.1)	(10.5)
Profit for the period	17.9	9.1	26.3	10.2	27.8
CASH FLOW
Cash flows from operating activities	10.0	7.9	(16.9)	(7.1)	41.9
Cash flows from investing activities	(16.8)	0.3	(26.1)	(3.2)	(27.4)
Cash flows from financing activities	7.3	(0.6)	43.9	17.3	(14.7)
BALANCE SHEET
Intangible assets	39.8	14.2	39.8	14.2	32.1
Property, plant and equipment	299.7	300.6	299.7	300.6	305.6
Other non-current assets	12.0	8.2	12.0	8.2	12.4
Cash and cash equivalents	16.8	22.4	16.8	22.4	15.9
Other current assets	665.7	578.9	665.7	578.9	492.1
Total assets	1,034.0	924.3	1,034.0	924.3	858.1
Equity	282.3	229.5	282.3	229.5	255.5
Interest-bearing debt	525.7	486.5	525.7	486.5	458.1
Other creditors	226.0	208.3	226.0	208.3	144.5
Total liabilities and equity	1,034.0	924.3	1,034.0	924.3	858.1
Average number of employees	908	912	906	908	915
FINANCIAL KEY FIGURES
EBITDA margin	10.3%	6.8%	8.9%	5.1%	6.4%
EBIT margin	8.1%	4.7%	6.6%	2.8%	3.9%
ROIC (annualised)	10.7%	6.2%	10.7%	6.2%	7.3%
Working capital	439.0	390.0	439.0	390.0	370.2
Net interest-bearing debt	484.4	464.1	484.4	464.1	442.2

Hydra-Grene is a specialised trading and engineering company whose core business is trading and producing hydraulic components and systems development for industry as well as related consulting services.

FINANCIAL PERFORMANCE

Hydra-Grene generated revenue of DKK 214 million in H1 2011, compared with DKK 186 million in H1 2010. The improvement was due to greater demand in the aftermarket and from industry OEM customers in general, while sales to the wind turbine industry were in line with last year.

H1 2011 EBIT was DKK 30 million as compared with DKK 24 million in H1 2010. The improvement was a direct effect of the revenue improvement.

The overall working capital tie-up rose from DKK 151 million at June 30, 2010 to DKK 189 million at June 30, 2011. The increase was due to the greater activity and, to some extent, stock building, especially for customers in the wind turbine industry.

The net interest-bearing debt rose from DKK 39 million at June 30, 2010, to DKK 128 million at June 30, 2011. In an assessment of the net interest-bearing debt, it is important to note that Hydra-Grene distributed dividends of DKK 100 million to the parent company Schouw & Co. in the first quarter of 2011.

BUSINESS DEVELOPMENT

Sales are performing well to industry in general and to the aftermarket, which is mainly to the Danish market, and the greater demand has led to increased staffing in production in Denmark.

Sales to the wind turbine industry fell below the original expectations for the first half. However, Hydra-Grene is still involved in many development projects for the wind turbine industry, and that supports expectations that the positive developments in the segment will continue.

Product sales to the wind turbine industry in China have yet to reach the desired level, but the necessary facilities and supply chains have been established, and Hydra-Grene's local production in China is currently being run in and is developing as planned.

Hydra-Grene recently began using its new facilities in India. The company is currently building inventories to serve its customers in that market. Expectedly, local production will be established in India along the same pattern as is currently evolving in China.

OUTLOOK

Hydra-Grene continues to expect sales to the wind turbine industry to pick up in the second half of 2011, with a growing proportion of the products being delivered outside of Denmark.

The full-year revenue from sales to the wind turbine industry may be slightly less than originally expected, but the shortfall is expected to be compensated by the positive trend in demand from the other parts of industry and from the aftermarket.

Based on these assumptions, Hydra-Grene continues to forecast FY 2011 revenue of approximately DKK 450 million. The change in customer and product mix has triggered an increase in the EBIT guidance to DKK 55-65 million from the previous forecast range of DKK 50-60 million.

HYDRA

AMOUNTS IN DKK MILLI O N JANUARY 1 – JUNE 30

	Q2 2011	Q2 2010	YTD 2011	YTD 2010	2010 total
INCOME STATEMENT
Revenue	109.0	103.7	214.5	185.5	391.4
Gross profit	36.8	36.4	71.4	63.2	133.9
EBITDA	17.5	18.6	34.8	28.8	67.1
Depreciation	2.5	2.5	5.2	5.1	10.9
Operating profit (EBIT)	15.0	16.1	29.6	23.7	56.2
Profit from associates	0.0	0.0	0.0	0.0	0.2
Financial items, net	(1.2)	0.1	(3.7)	0.1	(1.1)
Profit before tax	13.8	16.2	25.9	23.8	55.3
Tax on profit	(3.5)	(4.0)	(6.5)	(5.9)	(14.0)
Profit for the period	10.3	12.2	19.4	17.9	41.3
CASH FLOW
Cash flows from operating activities	(3.2)	1.6	11.2	31.4	35.3
Cash flows from investing activities	(0.7)	(1.3)	(1.2)	(2.8)	(5.8)
Cash flows from financing activities	(7.2)	(0.6)	(11.3)	(28.0)	(19.0)
BALANCE SHEET
Intangible assets	0.8	1.3	0.8	1.3	0.9
Property, plant and equipment	105.5	111.9	105.5	111.9	109.4
Other non-current assets	1.4	1.2	1.4	1.2	1.4
Cash and cash equivalents	10.0	1.5	10.0	1.5	11.3
Other current assets	236.2	203.1	236.2	203.1	228.4
Total assets	353.9	319.0	353.9	319.0	351.4
Equity	157.0	213.9	157.0	213.9	237.8
Interest-bearing debt	138.0	40.9	138.0	40.9	49.3
Other creditors	58.9	64.2	58.9	64.2	64.3
Total liabilities and equity	353.9	319.0	353.9	319.0	351.4
Average number of employees	191	165	189	169	174
FINANCIAL KEY FIGURES
EBITDA margin	16.1%	17.9%	16.2%	15.5%	17.1%
EBIT margin	13.8%	15.5%	13.8%	12.8%	14.4%
ROIC (annualised)	22.4%	21.2%	22.4%	21.2%	21.5%
Working capital	188.7	151.4	188.7	151.4	175.4
Net interest-bearing debt	128.0	39.4	128.0	39.4	38.0

Martin is the world's leading manufacturer of computercontrolled effect lighting, which is sold to the entertainment and experience industries in most parts of the world. Martin is also a significant manufacturer of smoke machines.

FINANCIAL PERFORMANCE

Martin successfully sustained the positive Q1 developments, carrying the momentum into the second quarter. The company reported H1 2011 revenue of DKK 415 million, compared with DKK 324 million for H1 2010. The 28% improvement was more than had been expected.

The greater business volume was based on a cost base that was unchanged from last year as well as on higher earnings margins. Accordingly, EBITDA was a profit of DKK 25 million in H1 2011, compared with a loss of DKK 7 million in H1 2010.

Depreciation charges for the first half year were DKK 6 million higher than in H1 2010, despite lower investments in property, plant and equipment and lower total assets resulting from a higher depreciation rate on specific development assets. Martin reported a H1 2011 EBIT loss of DKK 13 million against a loss of DKK 40 million in H1 2010.

During the last four quarters, the effects of the business realignment process have gradually materialised through consistently improving earnings, and on a quarterly basis Martin is nearing its EBIT break even.

The working capital tie-up rose from DKK 306 million at June 30, 2010 to DKK 349 million at June 30, 2011 due to a fall in trade creditors. During the same period, the net interest-bearing debt increased by DKK 19 million to DKK 491 million at June 30, 2011.

BUSINESS DEVELOPMENT

The sales improvement of the first half year was geographically diversified, but with the USA as the main growth market and providing a 50% revenue increase. In the European sales region, revenue was up by almost 30%, while the independent distributor markets contributed about 10% growth.

At product level, the improvements were based especially on sales of moving head lamps. This product group accounts for about 60% of total revenue, but with sales of around DKK 250 million, moving head lamps accounted for about 80% of the overall revenue improvement.

As a follow-up to the video panels and video controllers that were launched in the spring, Martin plans to present a whole new LED-based moving head in the second half of the year that is expected to set the new market standard. Martin expects that this new patent-protected product will be an innovative new feature in the market for creative stage design, and the product will undoubtedly consolidate Martin's position as the world's leading manufacturer of intelligent stage lighting.

OUTLOOK

The H1 2011 revenue performance was better than expected, and combined with the powerful product launches planned for the second half this serves to boost the fullyear revenue forecast. Assuming a successful launch of the new products and a corresponding reception in the market, Martin is expected to generate 2011 revenue of DKK 825–850 million against the previous forecast of approximately DKK 800 million.

The increase in revenue also serves to lift expectations for the full-year profit. However, Martin is very sensitive to fluctuations in the international economy and in foreign exchange conditions, and given the uncertainty still prevailing in respect of the economic conditions in a number of markets, Martin retains the forecast of EBIT in the range of from a DKK 25 million loss to break even.

MARTIN

AMOUNTS IN DKK MILLI O N JANUARY 1 – JUNE 30

	Q2 2011	Q2 2010	YTD 2011	YTD 2010	2010 total
INCOME STATEMENT
Revenue	209.7	173.1	415.3	324.0	714.8
Gross profit	49.5	37.7	90.9	53.0	116.3
EBITDA	15.4	5.6	25.2	(6.7)	5.9
Depreciation	19.3	16.0	38.4	32.3	69.6
Impairment	0.0	0.9	0.0	0.9	5.3
Operating profit (EBIT)	(3.9)	(11.3)	(13.2)	(39.9)	(69.0)
Profit from associates	(1.4)	0.0	(0.2)	(0.3)	(0.1)
Financial items, net	(4.4)	(9.7)	(5.4)	(15.2)	(17.4)
Profit before tax	(9.7)	(21.0)	(18.8)	(55.4)	(86.5)
Tax on profit	1.4	5.0	2.7	13.4	20.6
Profit for the period	(8.3)	(16.0)	(16.1)	(42.0)	(65.9)
CASH FLOW
Cash flows from operating activities	(6.4)	(4.4)	(32.4)	14.2	50.3
Cash flows from investing activities	(8.1)	(7.0)	(14.2)	(18.8)	(26.7)
Cash flows from financing activities	15.4	13.6	47.8	9.3	(26.1)
BALANCE SHEET
Intangible assets	134.7	169.8	134.7	169.8	150.4
Property, plant and equipment	147.8	168.1	147.8	168.1	156.6
Other non-current assets	31.4	32.2	31.4	32.2	25.2
Cash and cash equivalents	5.9	12.0	5.9	12.0	4.8
Other current assets	455.3	486.6	455.3	486.6	465.0
Total assets	775.1	868.7	775.1	868.7	802.0
Equity	167.7	226.2	167.7	226.2	195.4
Interest-bearing debt	497.1	484.7	497.1	484.7	449.3
Other creditors	110.3	157.8	110.3	157.8	157.3
Total liabilities and equity	775.1	868.7	775.1	868.7	802.0
Average number of employees	609	591	618	600	609
FINANCIAL KEY FIGURES
EBITDA margin	7.3%	3.2%	6.1%	-2.1%	0.8%
EBIT margin	-1.9%	-6.5%	-3.2%	-12.3%	-9.7%
ROIC (annualised)	1.8%	neg.	1.8%	neg.	neg.
Working capital	349.1	306.2	349.1	306.2	315.7
Net interest-bearing debt	491.1	471.8	491.1	471.8	444.5

XERGI 50%-OWNED

Xergi is a leading supplier of turnkey biogas and combined heating systems. Its core business consists of technology development, system design and installation as well as turnkey system operation and maintenance.

Xergi has been in this business for 25 years and has been owned on a fifty/fifty basis by Schouw & Co. and Dalgasgroup since 2004. Xergi is recognised on a pro rata basis at 50% in the Schouw & Co. consolidated financial statements.

FINANCIAL PERFORMANCE

Xergi generated net revenue of DKK 46 million in H1 2011, compared with DKK 35 million in H1 2010.

H1 2011 EBIT was a DKK 5 million loss, which was in line with the H1 2010-figure.

In Xergi's business model, the net working capital is mainly an indication of the difference between prepayments from customers and the value of work in progress. The net working capital may display significant short-lived fluctuations, but is typically at around zero. The net working capital was negative at DKK 19 million at June 30, 2010 and at DKK 1 million at June 30, 2011, as customer prepayments exceeded the current value of work in progress.

The net interest-bearing debt was a net deposit of DKK 4 million at June 30, 2010, while at June 30, 2011, it amounted to a debt of DKK 14 million due to changes in prepayments from customers. In addition, the company's two owners made a capital contribution in equal amounts for a total of DKK 10 million in 2010, which had a positive effect on the interest-bearing debt. Accordingly, the ownership structure is unchanged.

BUSINESS DEVELOPMENT

In H1 2011, Xergi won its first unconditional order to build a biogas plant in France. The facility, to be built for the company META-BIO, will supply 1 MW of power and about 1 MW of heating. The power will be sold to the French power company EDF and the heating will be sold to local industry, replacing fossil fuels.

In addition, Xergi has won its first order for a biogas plant in Sweden. The customer is Triventus AB and local farms. Triventus is a Swedish company specialising in renewable energy projects. The facility will be built on the Baltic island of Gotland and will supply biogas to Arla Foods's local dairy.

Xergi and Arla Foods prepared a joint feasibility study in the first half of 2011 to describe the technical and financial requirements for building a biogas plant in Denmark that will supply biogas to the Danmark Protein (DP) and Arinco dairies. Expecting better settlement terms for biogas in the future, the parties have resolved to develop the project planned for completion in 2013-2015.

OUTLOOK

The market conditions for biogas plants remain subject to considerable uncertainty in a number of countries. Obviously, this situation requires strict attention to all costs, but it is important for the company to continue working the markets and pursuing product development to a certain extent, even if sales opportunities in the short term are not quite in line with expectations.

Xergi expects to finalise negotiations for biogas plant orders in Europe and the USA in the second half of 2011. The timing of the final approval of these projects will depend on government approvals and financing commitments.

Xergi recognises revenue as project construction progresses, and a delay in the order inflow may cause a part of the revenue and the contribution margin to shift to the subsequent financial reporting period.

Subject to a possible change in the timing of final, unconditional orders for budgeted projects, Xergi expects to generate FY 2011 revenue of up to DKK 150 million and an EBIT improvement from the 2010 loss to closer to break even.

XERGI

AMOUNTS IN DKK MILLI O N JANUARY 1 – JUNE 30

	Q2 2011	Q2 2010	YTD 2011	YTD 2010	2010 total
INCOME STATEMENT
Revenue	21.6	18.4	45.7	34.6	117.6
Gross profit	3.4	3.2	5.4	4.2	15.4
EBITDA	(1.2)	(0.5)	(4.4)	(3.9)	(7.6)
Depreciation	0.2	0.8	0.7	1.4	2.0
Impairment	0.0	0.0	0.0	0.0	0.0
Operating profit (EBIT)	(1.4)	(1.3)	(5.1)	(5.3)	(9.6)
Profit from associates	(0.3)	0.0	(0.6)	0.0	(0.1)
Financial items, net	(0.7)	(0.2)	(0.9)	(0.3)	(1.4)
Profit before tax	(2.4)	(1.5)	(6.6)	(5.6)	(11.1)
Tax on profit	0.0	0.4	0.0	1.4	(0.4)
Profit for the period	(2.4)	(1.1)	(6.6)	(4.2)	(11.5)
CASH FLOW
Cash flows from operating activities	12.3	20.2	2.9	7.2	(21.9)
Cash flows from investing activities	(1.5)	(1.1)	(1.0)	(1.5)	(2.3)
Cash flows from financing activities	(8.9)	(15.4)	5.7	(3.0)	18.7
BALANCE SHEET
Intangible assets *	16.9	17.0	16.9	17.0	17.2
Property, plant and equipment	1.8	3.4	1.8	3.4	2.8
Other non-current assets	30.3	33.9	30.3	33.9	29.6
Cash and cash equivalents	12.2	13.1	12.2	13.1	4.7
Other current assets	29.4	22.7	29.4	22.7	44.1
Total assets	90.6	90.1	90.6	90.1	98.4
Equity	32.1	36.5	32.1	36.5	28.9
Interest-bearing debt	26.7	9.4	26.7	9.4	31.1
Other creditors	31.8	44.2	31.8	44.2	38.4
Total liabilities and equity	90.6	90.1	90.6	90.1	98.4
Average number of employees	58	63	60	63	62
FINANCIAL KEY FIGURES
EBITDA margin	-5.6%	-2.7%	-9.6%	-11.3%	-6.5%
EBIT margin	-6.5%	-7.1%	-11.2%	-15.3%	-8.2%
ROIC (annualised)	neg.	neg.	neg.	neg.	neg.
Working capital	(1.2)	(19.2)	(1.2)	(19.2)	7.2
Net interest-bearing debt	14.5	(3.6)	14.5	(3.6)	26.3

* Excluding goodwill on consolidation in the parent company Schouw & Co.

MANAGEMENT STATEMENT

The Board of Directors and the Management Board of Aktieselskabet Schouw & Co. today considered and approved the interim report for the period January 1–June 30, 2011.

The interim report, which is unaudited and has not been reviewed by the company's auditors, is presented in accordance with IAS 34 "Interim financial reporting" as adopted by the EU and additional Danish disclosure requirements for interim reports of listed companies.

In our opinion, the interim report gives a true and fair view of the Group's assets and liabilities and financial position at June 30, 2011 and of the results of the Group's operations and cash flows for the period January 1–June 30, 2011.

Furthermore, in our opinion the Management's report includes a fair review of the development and performance of the business, the results for the period and of the Group's financial position in general and describes the principal risks and uncertainties that it faces.

Aarhus, August 18, 2011

MANAGEMENT BOARD

Jens Bjerg Sørensen Peter Kjær President

BOARD OF DIRECTORS

Jørn Ankær Thomsen Erling Eskildsen Niels K. Agner Chairman Deputy Chairman

Erling Lindahl Kjeld Johannesen Jørgen Wisborg

INCOME AND COMPREHENSIVE INCOME STATEMENT

AMOUNTS IN DKK MILLION JANUARY 1 – JUNE 30

						2010
Note		Q2 2011	Q2 2010	YTD 2011	YTD 2010	TOTAL
1	Revenue	2,762.1	2,236.0	4,949.5	3,932.4	9,450.8
	Cost of sales Gross profit	(2,271.4) 490.7	(1,837.9) 398.1	(4,097.0) 852.5	(3,261.3) 671.1	(7,779.4) 1,671.4
	Other operating income	6.1	3.6	13.3	5.3	20.9
	Distribution costs	(256.3)	(228.4)	(483.7)	(435.8)	(910.1)
2	Administrative expenses	(115.0)	(107.3)	(224.9)	(211.5)	(408.0)
	Other operation expenses	(0.4)	(1.1)	(0.6)	(1.2)	(5.6)
	Operating profit (EBIT)	125.1	64.9	156.6	27.9	368.6
	Profit from associates	(12.2)	(0.2)	(23.5)	(0.3)	(0.6)
	Profit from divestments	0.0	1.1	0.0	1.1	1.1
	Financial income	(197.4)	2.5	26.4	10.7	68.0
	Financial expenses	(293.2)	(202.6)	(353.1)	(292.8)	(678.3)
	Profit before tax	(377.7)	(134.3)	(193.6)	(253.4)	(241.2)
	Tax on profit	80.6	37.2	24.6	66.3	114.6
	Profit for the period from continuing operations	(297.1)	(97.1)	(169.0)	(187.1)	(126.6)
	Profit for the period from discontinuing operations	0.0	22.6	0.0	110.8	166.8
	Profit for the period	(297.1)	(74.5)	(169.0)	(76.3)	40.2
	Attributable to:
	Shareholders of Schouw & Co.	(297.1)	(85.7)	(168.8)	(130.9)	(24.0)
	Minority interests	0.0	11.2	(0.2)	54.6	64.2
	Profit for the period	(297.1)	(74.5)	(169.0)	(76.3)	40.2
3	Earnings per share (DKK)	(12.61)	(3.45)	(7.12)	(5.24)	(0.97)
3	Diluted earnings per share (DKK)	(12.57)	(3.44)	(7.09)	(5.23)	(0.97)
3 3	Earnings per share from continuing operations (DKK) Diluted earnings per share from continuing operations (DKK)	(12.61) (12.57)	(3.91) (3.90)	(7.12) (7.09)	(7.50) (7.48)	(5.12) (5.10)
	Comprehensive income
	Exchange rate adjustment of foreign subsidiaries etc.	(23.0)	115.6	(89.2)	245.0	194.8
	Value adjustment of hedging instruments transferred to
	cost of sales	14.8	0.0	25.3	0.0	13.7
	Value adjustment of hedging instruments transferred to
	financials	2.9	0.0	5.7	0.0	12.1
	Value adjustment of hedging instruments recognised during the period	(26.2)	(3.0)	(41.5)	(1.4)	(39.8)
	Value adjustment of securities available for sale	0.0	0.1	0.0	0.1	0.0
	Other comprehensive income from associates	(0.3)	(0.3)	0.1	(0.5)	(0.3)
	Other adjustment on equity	(2.6)	0.0	(2.6)	0.0	0.0
	Tax on other comprehensive income	2.3	(0.1)	2.8	(0.6)	6.1
	Other comprehensive income after tax	(32.1)	112.3	(99.4)	242.6	186.6
	Profit for the period	(297.1)	(74.5)	(169.0)	(76.3)	40.2
	Total recognised comprehensive income	(329.2)	37.8	(268.4)	166.3	226.8
	Attributable to:
	Shareholders of Schouw & Co. Minority interests	(329.2) 0.0	24.8 13.0	(268.2) (0.2)	98.1 68.2	158.6 68.2
	Total recognised comprehensive income	(329.2)	37.8	(268.4)	166.3	226.8

CASH FLOW STATEMENT

AMOUNTS IN DKK MILLI O N JANUARY 1 – JUNE 30

	Note	Q2 2011	Q2 2010	YTD 2011	YTD 2010	2010 TOTAL
	Profit before tax	(377.7)	(134.3)	(193.6)	(253.4)	(241.2)
	Adjustment for operating items of a non-cash nature, etc.
	Depreciation and impairment losses	95.2	94.3	191.4	185.9	384.3
	Other operating items, net	(16.9)	22.8	(33.4)	68.3	4.7
	Provisions	1.0	(1.1)	2.8	(1.3)	(3.7)
	Income from investments in associates after tax	12.2	0.2	23.5	0.3	0.6
	Financial income	197.4	(2.5)	(26.4)	(10.7)	(68.0)
	Financial expenses	293.2	202.6	353.1	292.8	678.3
	Cash generated from operations (operating activities) before
	change in working capital	204.4	182.0	317.4	281.9	755.0
	Changes in working capital	(84.6)	49.8	(362.2)	(86.1)	(161.7)
	Cash generated from operations (operating activities)	119.8	231.8	(44.8)	195.8	593.3
	Interest income received	13.6	2.8	30.8	12.1	38.5
	Interest expenses paid	(26.1)	(26.7)	(58.9)	(54.6)	(127.1)
	Cash flows from ordinary activities	107.3	207.9	(72.9)	153.3	504.7
	Income tax paid	(24.7)	(21.1)	(39.4)	(29.5)	(60.3)
	Cash flows from operating activities	82.6	186.8	(112.3)	123.8	444.4
	Purchase of intangible assets	(14.6)	(12.6)	(18.4)	(22.3)	(42.2)
	Sale of intangible assets	0.0	0.0	0.0	0.0	1.8
	Purchase of property, plant and equipment	(128.3)	(108.2)	(327.4)	(217.0)	(471.2)
	Sale of property, plant and equipment	5.0	7.8	8.0	7.9	23.1
8	Acquisition of enterprises	(207.0)	0.0	(207.0)	0.0	0.0
	Divestment of subsidiaries	0.0	4.2	0.0	4.2	4.2
	Loan to associates	(0.7)	(2.1)	(3.7)	(1.5)	(2.5)
	Purchase of securities	(2.6)	0.0	(2.6)	0.0	(2.0)
	Sale of securities	4.6	3.9	10.6	5.1	4.5
	Cash flows from investing activities	(343.6)	(107.0)	(540.5)	(223.6)	(484.3)
	Debt financing:
	Repayment of non-current liabilities	(74.6)	(34.1)	(92.5)	(359.3)	(505.3)
	Proceeds from incurring financial liabilities	202.4	200.0	236.1	300.0	26.2
	Increase (repayment) of debt to credit institutions	358.5	(32.6)	694.9	331.1	393.4
	Shareholders:
	Additional minority shareholders, net	1.4	1.4	1.4	1.4	1.4
	Dividend paid	(70.8)	(74.7)	(71.4)	(74.7)	(74.9)
	Purchase / sale of treasury shares, net	(64.3)	(12.3)	(69.1)	(41.8)	(153.6)
	Cash flows from financing activities	352.6	47.7	699.4	156.7	(312.8)
	Cash flows from discontinuing operations	0.0	0.8	0.0	(1.5)	361.9
	Cash flows for the period	91.6	128.3	46.6	55.4	9.2
	Cash and cash equivalents at January 1	406.4	352.3	451.6	424.5	424.5
	Value adjustment of cash and cash equivalents	(0.1)	0.4	(0.3)	1.1	17.9
9	Cash and cash equivalents at June 30
		497.9	481.0	497.9	481.0	451.6

BALANCE SHEET

AMOUNTS IN DKK MILLI O N

		AT JUN. 30,	AT DEC. 31,	AT JUN. 30,	AT DEC. 31,
Note		2011	2010	2010	2009
	Goodwill	931.0	904.0	915.8	889.8
	Patents, licences and rights	32.2	42.8	52.4	54.0
	Completed development projects	107.4	98.4	92.3	104.0
	Development projects in progress	38.1	30.1	35.6	23.5
	Intangible assets	1,108.7	1,075.3	1,096.1	1,071.3
	Land and buildings	1,266.5	1,249.7	1,234.3	1,216.9
	Leasehold improvements	9.1	10.1	10.8	10.6
	Plant and machinery	1,050.2	1,029.7	1,067.9	1,102.2
	Other fixtures, tools and equipment	93.4	98.5	89.1	96.1
	Assets under construction, etc.	649.4	399.0	252.4	72.8
	Property, plant and equipment	3,068.6	2,787.0	2,654.5	2,498.6
	Equity investments in associates	67.2	94.1	137.4	129.9
4	Securities	506.0	736.9	1,060.3	1,294.3
	Deferred tax	146.6	134.1	80.7	44.5
	Receivables	106.1	112.5	116.7	105.9
	Other non-current assets	825.9	1,077.6	1,395.1	1,574.6
	Total non-current assets	5,003.2	4,939.9	5,145.7	5,144.5
	Inventories	1,889.5	1,505.4	1,440.9	1,221.9
5	Receivables	2,156.8	1,799.8	1,681.9	1,659.0
	Income tax receivable	63.0	4.9	5.7	3.8
	Construction contracts	3.4	8.3	6.4	5.6
4	Securities	122.5	190.0	0.6	0.7
9	Cash and cash equivalents	497.9	451.6	473.4	415.4
	Total current assets	4,733.1	3,960.0	3,608.9	3,306.4
	Assets held for sale	0.0	0.0	1,340.8	1,207.6
	Total assets	9,736.3	8,899.9	10,095.4	9,658.5

BALANCE SHEET

AMOUNTS IN DKK MILLI O N

Note		AT JUN. 30, 2011	AT DEC. 31, 2010	AT JUN. 30, 2010	AT DEC. 31, 2009
6	Share capital	255.0	255.0	255.0	255.0
	Hedge transaction reserve	(32.5)	(24.7)	(16.8)	(14.3)
	Exchange adjustment reserve	24.1	113.3	151.7	(79.7)
	Fair value adjustment reserve	0.0	0.0	0.1	0.0
	Retained earnings	3,739.5	3,971.5	4,048.4	4,217.0
	Proposed dividend	0.0	76.5	0.0	76.5
	Share of equity attributable to the parent company	3,986.1	4,391.6	4,438.4	4,454.5
	Minority interests	48.2	3.5	368.5	298.9
	Total equity	4,034.3	4,395.1	4,806.9	4,753.4
	Deferred tax	117.7	73.1	132.2	145.8
	Pensions and similar liabilities	34.8	33.6	33.6	35.6
7	Credit institutions	1,152.0	967.7	1,661.3	1,129.4
	Other liabilities	46.4	51.4	54.7	54.7
	Non-current liabilities	1,350.9	1,125.8	1,881.8	1,365.5
7	Current portion of non-current debt	207.4	185.4	187.2	499.8
7	Credit institutions	2,176.8	1,457.0	1,124.7	1,056.7
	Construction contracts	4.4	0.6	11.0	5.2
	Trade payables and other payables	1,936.5	1,691.1	1,565.1	1,420.6
	Income tax	19.9	40.2	18.8	49.0
	Provisions	6.1	4.7	6.4	6.4
	Current liabilities	4,351.1	3,379.0	2,913.2	3,037.7
	Total liabilities	5,702.0	4,504.8	4,795.0	4,403.2
	Liabilities associated with assets held for sale	0.0	0.0	493.5	501.9
	Total liabilities and equity	9,736.3	8,899.9	10,095.4	9,658.5

10 Notes without reference

STATEMENT OF CHANGES IN EQUITY

AMOUNTS IN DKK MILLI O N

	Share capital	Hedge transaction reserve	Exchange adjustment reserve	Fair value adjustment reserve	Retained earnings	Dividend	Total	Minority interests	Total equity
Equity at January 1, 2011	255.0	(24.7)	113.3	0.0	3,971.5	76.5	4,391.6	3.5	4,395.1
Other comprehensive income for the period
Exchange rate adjustment of foreign subsidiaries		- -	(89.2)		- -	-	(89.2)	0.0	(89.2)
Value adjustment of hedging instruments transferred
to cost of sales	-	- 25.3			- -		25.3	0.0	25.3
Value adjustment of hedging instruments transferred
to financials	-	- 5.7			- -		5.7	0.0	5.7
Value adjustment of hedging instruments recognised
during the period	-	(41.5)	- -		-	-	(41.5)	0.0	(41.5)
Other comprehensive income from associates	-	(0.1)	- -		0.2	-	0.1	0.0	0.1
Tax on other comprehensive income	-	2.8	- -		0.0	-	2.8	0.0	2.8
Other adjustment on equity		- -	-	-	(2.6)	-	(2.6)	0.0	(2.6)
Profit for the period		- -	-	-	(168.8)	-	(168.8)	(0.2)	(169.0)
Total recognised comprehensive income	-	(7.8)	(89.2)	0.0	(171.2)	-	(268.2)	(0.2)	(268.4)
Transactions with the owners:
Share-based payment, net		- -	-	-	2.6	-	2.6	0.0	2.6
Dividend distributed		- -	-	-	5.7	(76.5)	(70.8)	(0.6)	(71.4)
Addition/disposal of minority interests		- -	-	-	-	-	0.0	45.5	45.5
Treasury shares bought/sold		- -	-	-	(69.1)	-	(69.1)	-	(69.1)
Transactions with the owners for the period	0.0	0.0	0.0	0.0	(60.8)	(76.5)	(137.3)	44.9	(92.4)
Equity at June 30, 2011	255.0	(32.5)	24.1	0.0	3,739.5	0.0	3,986.1	48.2	4,034.3

	Share capital	Hedge transaction reserve	Exchange adjustment reserve	Fair value adjustment reserve	Retained earnings	Dividend	Total	Minority interests	Total equity
Equity at January 1, 2010	255.0	(14.3)	(79.7)	0.0	4,217.0	76.5	4,454.5	298.9	4,753.4
Other comprehensive income for the period Exchange rate adjustment of foreign subsidiaries Value adjustment of hedging instruments recognised		- -	231.4		- -	-	231.4	13.6	245.0
during the period	-	(1.4)	- -		-	-	(1.4)	0.0	(1.4)
Value adjustment of securities available for sale		- -	-	0.1	- -		0.1	0.0	0.1
Other comprehensive income from associates	-	- (0.5)		-	0.0	-	(0.5)	0.0	(0.5)
Tax on other comprehensive income	-	(0.6)	- -		0.0	-	(0.6)	0.0	(0.6)
Profit for the period		- -	-	-	(130.9)	-	(130.9)	54.6	(76.3)
Total recognised comprehensive income	-	(2.5)	231.4	0.1	(130.9)	-	98.1	68.2	166.3
Transactions with the owners:
Share-based payment, net		- -	-	-	2.3	-	2.3	0.0	2.3
Dividend distributed		- -	-	-	1.8	(76.5)	(74.7)	0.0	(74.7)
Addition/disposal of minority interests		- -	-	-	-	-	0.0	1.4	1.4
Treasury shares bought/sold		- -	-	-	(41.8)	-	(41.8)	-	(41.8)
Transactions with the owners for the period	0.0	0.0	0.0	0.0	(37.7)	(76.5)	(114.2)	1.4	(112.8)
Equity at June 30, 2010	255.0	(16.8)	151.7	0.1	4,048.4	0.0	4,438.4	368.5	4,806.9

AMOUNTS IN DKK MILLI O N

NOTE 1 - Segment reporting

Schouw & Co. is an industrial conglomerate consisting of a number of sub-groups operating in various industries and independently of the other sub-groups. The group management monitors the financial developments of all material sub-groups on a regular basis. Based on management control and financial management, Schouw & Co. has identified six reporting segments whose financial results, assets or revenue, within one year, account for 10% or more of the respective consolidated figure. These are all independent reporting segments and they comprise BioMar, Fibertex Personal Care, Fibertex Nonwovens, Grene, Hydra-Grene and Martin. In 2010 Sjøtroll was also considered a segment until the divestment of the company.

Included in the reporting segments are revaluations of assets and liabilities made in connection with Schouw & Co.'s acquisition of the segment in question and consolidated goodwill arising as a result of the acquisition. The operational impact of depreciation/amortisation and write-downs on the above revaluations or goodwill is also included in the profit presented for the reporting segment.

All transactions between segments were made on an arm's length basis.

							Sjøtroll (Dis
		Fibertex	Fibertex				continuing
Total reportable segments YTD 2011	BioMar	Personal Care	Nonwovens	Grene	Hydra-Grene	Martin	activities)	Total
External revenue	2,697.0	623.7	321.8	663.0	198.3	415.2	-	4,919.0
Intra-group revenue	0.0	15.6	2.7	1.7	16.2	0.1	-	36.3
Segment revenue	2,697.0	639.3	324.5	664.7	214.5	415.3	-	4,955.3
Depreciation	59.5	49.2	23.2	15.2	5.2	38.4	-	190.7
EBIT	57.3	56.0	(10.2)	44.1	29.6	(13.2)	-	163.6
Segment assets	4,237.1	1,440.0	1,126.1	1,034.0	353.9	775.1	-	8,966.2
of which goodwill	715.6	72.4	77.8	11.5	0.0	47.0	-	924.3
Equity investments in associates	0.0	0.0	19.1	0.0	1.4	9.0	-	29.5
Segment liabilities	2,507.5	851.1	705.7	751.6	196.9	607.4	-	5,620.2
Cash flows from operating activities	(160.4)	98.5	(30.7)	(16.9)	11.2	(32.4)	-	(130.7)
Cash flows from investing activities	(105.5)	(185.8)	(206.3)	(26.1)	(1.2)	(14.2)	-	(539.1)
Cash flows from financing activities	274.5	83.7	273.9	43.9	(11.3)	47.8	-	712.5
Capital expenditure	(114.2)	(186.8)	(7.7)	(17.6)	(2.1)	(17.3)	-	(345.7)
Average number of employees	743	328	405	906	189	618	-	3,189

							Sjøtroll (Dis
		Fibertex	Fibertex				continuing
Total reportable segments YTD 2010	BioMar	Personal Care	Nonwovens	Grene	Hydra-Grene	Martin	activities)	Total
External revenue	1,978.0	593.2	228.2	614.8	169.5	323.9	330.4	4,238.0
Intra-group revenue	0.0	0.0	0.0	1.5	16.0	0.1	80.4	98.0
Segment revenue	1,978.0	593.2	228.2	616.3	185.5	324.0	410.8	4,336.0
Depreciation	63.6	48.5	20.6	13.8	5.1	32.3	0.0	183.9
Impairment	0.0	0.0	0.0	0.0	0.0	0.9	0.0	0.9
EBIT	(30.3)	65.3	(1.3)	17.4	23.7	(39.9)	159.6	194.5
Segment assets	3,513.3	1,282.5	677.2	924.3	319.0	868.7	1,340.8	8,925.8
of which goodwill	744.4	72.4	32.0	11.8	0.0	48.4	99.9	1,008.9
Equity investments in associates	48.3	0.0	20.0	0.0	1.2	10.0	0.0	79.5
Segment liabilities	2,110.2	687.9	474.9	694.8	105.1	642.5	498.2	5,213.6
Cash flows from operating activities	3.8	89.3	(26.0)	(7.1)	31.4	14.2	102.8	208.4
Cash flows from investing activities	(111.6)	(70.2)	(15.2)	(3.2)	(2.8)	(18.8)	(29.3)	(251.1)
Cash flows from financing activities	119.8	12.3	41.0	17.3	(28.0)	9.3	(75.0)	96.7
Capital expenditure	(116.6)	(70.1)	(15.6)	(7.4)	(2.8)	(25.7)	(26.4)	(264.6)
Average number of employees	647	308	393	908	169	600	309	3,334

AMOUNTS IN DKK MILLI O N

NOTE 1 - Segment reporting (continued)

Reconciliation of revenue, profit before tax, assets and liabilities	YTD 2011	YTD 2010
Reconciliation of segment revenue:
Revenue from reporting segments	4,955.3	4,336.0
Revenue from non-reporting segments	22.9	17.3
Revenue from the parent company	9.8	9.2
Group elimination	(38.5)	(19.3)
Revenue from discontinuing activities (Sjøtroll)	0.0	(410.8)
Group revenue, see income statement	4,949.5	3,932.4
Reconciliation of EBIT:
EBIT from reporting segments	163.6	194.5
Revenue from non-reporting segments	(2.5)	(2.7)
EBIT from the parent company	(4.3)	(4.2)
EBIT from discontinuing activities (Sjøtroll)	0.0	(159.6)
Group elimination	(0.2)	(0.1)
EBIT, see income statement	156.6	27.9
Reconciliation of segment assets:
Assets from reporting segments Revenue from non-reporting segments	8,966.2 752.3	8,925.8 1,134.3
Assets from the parent company	3,630.1	3,810.4
Group elimination	(3,612.3)	(3,775.1)
Assets, see balance sheet	9,736.3	10,095.4
Reconciliation of segment liabilities:
Liabilities from reporting segments	5,620.2	5,213.6
Revenue from non-reporting segments	29.2	26.8
Liabilities from the parent company	485.8	371.6
Group elimination	(433.2)	(323.5)
Liabilities, see balance sheet	5,702.0	5,288.5

NOTE 2 - Share based payment

Share option programme

The company has an incentive programme for the Management and senior managers, including the executive management of subsidiaries. The programme entitles participants to acquire shares in Schouw & Co. at a price based on the officially quoted price at around the time of grant plus a calculated rate of interest (4%) from the date of grant until the date of exercise.

				Strike price in	Fair value in DKK	Fair value in total	Can be exercised	Can be exercised
Outstanding options	Management	Other	Total	DKK**	per option (1)	in DKK millions (1)	from	to
Granted in 2008 *	36,000	144,000	180,000	224.85	37.83	6.8	March 2010	March 2012
Granted in 2009	36,000	184,000	220,000	78.61	21.27	4.7	March 2011	March 2013
Granted in 2010	34,000	148,000	182,000	125.53	24.38	4.4	March 2012	March 2014
Outstanding options at December 31, 2010	106,000	476,000	582,000
Granted in 2011	55,000	184,000	239,000	151.61	25.80	6.2	March 2013	March 2015
Exercised (from the share options granted in 2009)	0	-98,000	-98,000
Outstanding options at June 30, 2011	161,000	562,000	723,000

(*) The number of options has been adjusted for bonus share issue.

(**) At exercise after four years (at the latest possible moment).

(1) At the date of grant

A total of 98,000 options relating to the 2009 grant were exercised in the first half of 2011. The exercise of these options produced cash proceeds to the Group of DKK 7.1 million.

The following assumptions were applied in calculating the fair value of outstanding share options at the date of grant:

	2011 grant	2010 grant	2009 grant	2008 grant
Expected volatility	33.75%	37.41%	56.54%	29.47%
Expected term	48 mths	48 mths	48 mths	48 mths
Expected dividend per share	DKK 3	DKK 3	DKK 3	DKK 3
Risk-free interest rate	3.00%	4.00%	4.00%	4.00%

The expected volatility is calculated on the basis of 12 months historical volatility based on average prices. If the optionholders have not excercised their share options within the period specified, the share options will lapse without any compensation to the holders. Exercise of the share options is subject to the holders being in continuing employment during the abovementioned periods. If the share option holder leaves the company's employ before the date of acquiring the right, the holder may in some cases have a right to exercise the share options early during a four-week period following Schouw & Co.'s next following profit announcement. In the event of early exercise, the number of share options will be reduced proportionately.

AMOUNTS IN DKK MILLI O N
NOTE 3 - Earnings per share (DKK)	Q2 2011	Q2 2010	YTD 2011	YTD 2010
Share of the profit for the period attributable to shareholders of Schouw & Co. Of which profit for the period from continuing operations	(297.1) (297.1)	(85.7) (97.2)	(168.8) (168.8)	(130.9) (187.3)
Of which profit for the period from discontinuing operations	0.0	11.5	0.0	56.4
Average number of shares	25,500,000	25,500,000	25,500,000	25,500,000
Average number of treasury shares	(1,940,083)	(631,821)	(1,787,253)	(530,080)
Average number of outstanding shares	23,559,917	24,868,179	23,712,747	24,969,920
Average dilutive effect of outstanding share options	78,983	66,662	78,983	66,662
Diluted average number of outstanding shares	23,638,900	24,934,841	23,791,730	25,036,582
Earnings per share in Danish kroner of DKK 10	(12.61)	(3.45)	(7.12)	(5.24)
Diluted earnings per share in Danish kroner of DKK 10	(12.57)	(3.44)	(7.09)	(5.23)
Earnings per share in Danish kroner of DKK 10 from continuing operations	(12.61)	(3.91)	(7.12)	(7.50)
Diluted earnings per share in Danish kroner of DKK 10 from continuing operations	(12.57)	(3.90)	(7.09)	(7.48)
NOTE 4 - Securities
	AT JUN. 30, 2011	AT DEC. 31, 2010	AT JUN. 30, 2010	AT DEC. 31, 2009
Financial investments
Shares in Vestas (non-current securities)	478.0	704.4	1,027.7	1,258.4
Shares in Lerøy (current securities) Financial investments in total	121.6 599.6	189.3 893.7	0.0 1,027.7	0.0 1,258.4
Other securities	28.9	33.2	33.2	36.6
Securities in total	628.5	926.9	1,060.9	1,295.0
Securities measured at fair value:
Non-current assets Cost at January 1	353.2	353.9	353.9	344.3
Reclassification	0.0	0.0	0.0	1.7
Foreign exchange adjustment	(0.6)	1.8	1.8	2.0
Additions	2.6	2.0	0.2	13.8
Disposals	(6.3)	(4.5)	(5.3)	(7.9)
Cost at end period	348.9	353.2	350.6	353.9
Adjustments at January 1	383.7	940.4	940.4	903.1
Reclassification	0.0	0.0	0.0	(2.5)
Foreign exchange adjustment	0.0	(0.1)	1.2	(0.3)
Disposals on divestment	0.0	0.0	0.0	1.0
Adjustments recognised in the income statement for the period	(226.6)	(556.6)	(232.0)	39.1
Adjustments recognised in equity for the period	0.0	0.0	0.1	0.0
Adjustments at end period	157.1	383.7	709.7	940.4
Carrying amount of non-current assets at end period	506.0	736.9	1,060.3	1,294.3
Current assets
Cost at January 1	159.8	6.5	6.5	6.6
Reclassification	0.0	0.0	0.0	0.0
Foreign exchange adjustment	5.4	5.2	0.0	(0.1)
Additions	0.0	148.1	0.0	0.0
Disposals	0.0	0.0	0.0	0.0
Cost at end period	165.2	159.8	6.5	6.5
Adjustments at January 1	30.2	(5.8)	(5.8)	(5.9)
Reclassification	0.0	0.0	0.0	0.0
Foreign exchange adjustment	(4.6)	0.0	0.0	0.2
Disposals on divestment	0.0	0.0	0.0	0.0
Dividend Adjustments recognised in the income statement for the period	(9.6) (58.7)	0.0 36.0	0.0 (0.1)	0.0 (0.1)
Adjustments recognised in equity for the period	0.0	0.0	0.0	0.0
Adjustments at end period	(42.7)	30.2	(5.9)	(5.8)
Carrying amount of current assets at end period	122.5	190.0	0.6	0.7
Carrying amount at end period	628.5	926.9	1,060.9	1,295.0

At June 30, 2011, the company held 4,000,000 shares in Vestas recognised at a price of DKK 119.50 per share. At DKK 478.0 million, the fair value of the holding corresponded to the market price at June 30, 2011. The original acquisition cost of the shares in Vestas is DKK 313.4 million. At June 30, 2011, the company held 1,000,000 shares in Lerøy recognised at a price of NOK 127.00 per share (DKK 121.64 per share). At DKK 121.6 million, the fair value of the holding corresponded to the market price at June 30, 2011. The original acquisition cost of the shares in Lerøy is DKK 148.1 million. Management regularly monitors changes in the fair value of the company's financial investments. Holdings are recognised at fair value and value adjustments are recognised in the income statement as a financial income or expense. The same method of recognition was applied for the 2010 financial year.

AMOUNTS IN DKK MILLI O N

NOTE 5 - Receivables

Trade receivables
		Due between
At June 30, 2011	Not due	1-30 days	31-90 days	>91 days	Total
Trade receivables not considered to be impaired	1,660.6	160.1	40.4	58.7	1,919.8
Trade receivables individually assessed to be impaired	0.5	22.6	13.1	228.7	264.9
Impairment losses on trade receivables	(0.1)	(12.4)	(10.1)	(207.7)	(230.3)
Trade receivables net at June 30, 2011	1,661.0	170.3	43.4	79.7	1,954.4
Proportion of the total receivables which is expected to be settled					89.5%
Impairment percentage (of impaired receivables)	20.0%	54.9%	77.1%	90.8%	86.9%
Reconciliation to the balance
Other receivables - current					180.7
Accruals and deferred income					21.7
Total current receivables at June 30, 2011					2,156.8
		Due between
At June 30, 2010	Not due	1-30 days	31-90 days	>91 days	Total
Trade receivables not considered to be impaired	1,231.8	130.0	43.6	73.9	1,479.3
Trade receivables individually assessed to be impaired	0.0	13.7	5.9	242.3	261.9
Impairment losses on trade receivables	0.0	(6.1)	(1.5)	(205.5)	(213.1)
Trade receivables net at June 30, 2010	1,231.8	137.6	48.0	110.7	1,528.1
Proportion of the total receivables which is expected to be settled					87.8%
Impairment percentage (of impaired receivables)	0.0%	44.5%	25.4%	84.8%	81.4%
Reconciliation to the balance
Other receivables - current					129.6
Accruals and deferred income					24.2
Total current receivables at June 30, 2010					1,681.9

NOTE 6 - Share capital

At June 30, 2011, the share capital consists of 25,500,000 shares with a nominal value of DKK 10 each. All shares rank equally.

				Percentage
	Number	Nominal		of share
Treasury shares	of shares	value	Cost	capital
January 1, 2010	354,638	3,546,380	33.8	1.39%
Movements in H1 2010
Bought	364,101	3,641,010	41.8	1.42%
Group employee share scheme	(36,803)	(368,030)	(3.2)	-0.14%
June 30, 2010	681,936	6,819,360	72.4	2.67%
Movements in H2 2010
Bought	941,339	9,413,390	111.9	3.70%
December 31, 2010	1,623,275	16,232,750	184.3	6.37%
Movements in H1 2011
Bought	536,750	5,367,500	76.2	2.10%
Share option programme	(98,000)	(980,000)	(9.2)	-0.38%
Group employee share scheme	(18,552)	(185,520)	(1.7)	-0.07%
June 30, 2011	2,043,473	20,434,730	249.6	8.01%

Schouw & Co. has been authorised by the shareholders in general meeting to acquire up to 5,100,000 treasury shares, equal to 20.0% of the share capital. The authorisation is valid until the company's next annual general meeting.

AMOUNTS IN DKK MILLI O N

NOTE 7 - Interest-bearing debt

At the end of the first half of 2011 and 2010 the Group's debt divided by currency was as shown below:

The average effective rate of interest was 3.4% at June 30, 2011 (June 30, 2010: 3.0%).

NOTE 8 - Acquisitions of subsidiaries

The Group acquired two businesses in H1 2011. The total fair values at the dates of acquisition comprise:

	YTD 2011	YTD 2010
	Fair value at time of	Fair value at time of
	acquisition	acquisition
Intangible assets	24.8	-
Property, plant and equipment	158.6	-
Financial assets	0.5	-
Inventories	80.7	-
Receivables	92.9	-
Tax asset	0.2	-
Cash and cash equivalents	54.9	-
Credit institutions	(67.8)	-
Deferred tax	(18.0)	-
Provisions	(16.7)	-
Trade payables	(26.5)	-
Other liabilities	(21.1)	-
Contingent liabilities	0.0	-
Net assets acquired	262.5	-
Of which minority interests	(46.0)	-
Goodwill	45.4	-
Cost	261.9	-
Of which cash and cash equivalents	(54.9)	-
Cash cost total	207.0	-

AMOUNTS IN DKK MILLI O N

NOTE 8 - Acquisitions of subsidiaries

The Group acquired 85.27% of the shares in the company Tharreau Industries SA, France from Finta Technologies. Tharreau manufactures and sells nonwovens. The company has strong know-how and capabilities, especially in relation to the auto industry, and through the acquisition the Group has strengthened its position in the nonwovens industry. The acquisition is expected to lead to substantial synergies in the Fibertex Nonwovens group.

The transaction has been approved by the competition authorities and closing took place in May 2011. The acquisition price of the shares amounted to DKK 253 million. The company is consolidated in the Schouw & Co. financial statements through Fibertex Nonwovens effective from May 2011. The transaction involved acquisition costs of DKK 3.7 million, which amount has been recognised in the income statement under administrative expenses.

Goodwill related to the acquisition amounts to DKK 45.4 million. Goodwill represents Tharreau's strong market position and the value of technical know-how, including the company's employees and anticipated synergies. The recognised goodwill is not amortisable for tax purposes. In connection with the acquisition, minority interests will be recognised at the proportionate share of fair value.

Revenue of DKK 77 million and an EBIT loss of 1.6 million from the acquired business has been recognised effective from the date of acquisition. Included in the EBIT loss of DKK 1.6 million are depreciation and amortisation charges of DKK 3.6 million resulting from the purchase price allocation. Had the Group acquired the company on January 1, 2011, consolidated revenue would have been DKK 154 million higher and EBIT would have been DKK 10.4 million higher. The pro forma figures have been calculated on the basis of the actual consideration and the purchase price allocation made at the acquisition date, whereas depreciation and amortisation charges are included in the pro forma figures as from January 1, 2011.

As part of the acquisition, the Group took over receivables at a fair value of DKK 92.9 million. Credit hedging of receivables in Tharreau is provided on an ongoing basis. Accordingly, no bad debt provisions were made at the date of acquisition or in connection with the revaluation.

In June, Fibertex Nonwovens submitted a mandatory tender offer to Tharreau's minority shareholders. When the offer expired on July 7, the total ownership interest had grown to 89.62%. Accordingly, in connection with the tender offer, we acquired an additional 4.35% of the share capital at a price of DKK 13.6 million. In connection with the tender offer, we incurred costs to advisers, etc. of a total of DKK 2.6 million, which amount has been recognised in equity under other changes in equity.

The Grene group has acquired a small business in Poland at a price of DKK 8 million. The acquisition involves three shops in Poland and the addition of 22 employees. No additional assets were identified in connection with the acquisition, and the acquisition did not involve the addition of goodwill.

The acquisition of businesses increased consolidated goodwill by DKK 45.4 million. Net of negative exchange rate adjustments DKK 30.2 million, consolidated goodwill has increased from DKK 915.8 million at December 31, 2010 to DKK 931.0 million at June 30, 2011.

NOTE 9 - Cash and cash equivalents
	AT JUN. 30,	AT DEC. 31,	AT JUN. 30,	AT DEC. 31,
	2011	2010	2010	2009
Cash and cash equivalents comprise:
Cash	497.9	451.6	473.4	415.4
Cash classified as assets held for sale	0.0	0.0	7.6	9.1
Cash in total	497.9	451.6	481.0	424.5

NOTE 10 - Related party transactions

Under Danish legislation, Givesco A/S, Svinget 24, DK-7323 Give, members of the Board of Directors, the Management Board and senior management as well as their family members are considered to be related parties. Related parties also comprise companies in which the individuals mentioned above have material interests. Related parties also comprise subsidiaries and associates, in which Schouw & Co. has a controlling influence, as well as members of the Board of Directors, Management Board and senior management in our subsidiaries and associates.

The management share option programmes are described in note 2.

The Group has in 2011 granted Incuba A/S an additional loan of DKK 3.7 million, and the Group now has a total receivable of DKK 11.5 million. At the same time last year the Group had a total receivable of DKK 6.6 million. The Group has received management fee of DKK 49 thousand (2010: DKK 48 thousand) and received interests of DKK 412 thousand (2010: DKK 143 thousand) from Incuba A/S.

Other than that there were no other related party transactions.