Schouw & Co. interim report H1 2012 by Schouw & Co.

Company announcement No. 8/2012, August 16, 2012 28 pages

Interim report – First half year of 2012

Highlights  Good performance supporting the upgraded guidance from the Q1 2012 interim report.  Revenue improved by 24% to DKK 6,130 million, driven by improvements in all of our businesses.  EBIT more than doubled to DKK 333 million.  Profit before tax improved to DKK 186 million.  The full-year EBIT forecast is maintained at the range of DKK 720-800 million.

Schouw & Co. will be reviewing the financial statements for the six months to June 30, 2012 online and will be hosting a teleconference (in Danish) for analysts, the media and other interested parties on

THURSDAY, AUGUST 16, 2012 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 CVR no.: 63965812 Tel. +45 8611 2222 www.schouw.dk schouw@schouw.dk

Contents Financial highlights .............................................. 2 Interim report ...................................................... 3 Business areas...................................................... 6 Management statement .................................... 18 Income statement.............................................. 19 Cash flow statement .......................................... 20 Balance sheet ..................................................... 21 Statement of changes in equity ......................... 23 Notes to the financial statements ..................... 24

This is a translation of Schouw & Co.’s Interim Report for the six months ended June 30, 2012. The original Danish text shall be controlling for all purposes, and in case of discrepancy, the Danish wording shall be applicable.

Consolidated financial highlights January 1 – June 30

Amounts in DKK million

GROUP SUMMARY

Q2 2012

Revenue

Q2 2011

YTD 2012

YTD 2011

2011 TOTAL

3,211.8

2,762.1

6,130.5

4,949.5

11,929.0

Operating profit before depriciation (EBITDA)

297.1

220.3

553.5

348.0

1,049.3

EBIT before goodwill impairment

186.3

125.1

332.9

156.6

653.1

Operating profit (EBIT)

186.3

125.1

332.9

156.6

646.3

(23.5)

(26.0)

Profit/(loss) after tax in associates

0.8

Profit from divestments

0.0

Value adjustment of financial investments**

(78.0)

Net financials before value adjustment of financial investments

(12.2) 0.0 (466.4)

(0.5) 0.0 (90.0)

0.0

1.9

(285.1)

(556.2)

(30.2)

(24.2)

(55.9)

(41.6)

(107.2)

Profit before tax

78.8

(377.7)

186.5

(193.6)

(41.2)

Tax on profit

(17.3)

80.6

(46.7)

24.6

(30.8)

Profit for the period

61.5

(297.1)

139.8

(169.0)

(72.0)

Share of equity attributable to shareholders of Schouw & Co.

4,294.9

Minority interests

3,986.1

4,294.9

3,986.1

4,196.1

6.6

48.2

6.6

48.2

33.9

Total equity

4,301.5

4,034.3

4,301.5

4,034.3

4,230.0

Total assets

10,330.1

9,736.3

10,330.1

9,736.3

9,900.5

Net interest-bearing debt (NIBD)

2,872.8

3,018.0

2,872.8

3,018.0

2,744.6

Working capital

2,377.5

2,072.8

2,377.5

2,072.8

2,146.8

Average number of employees

3,361

3,275

3,364

3,228

3,287

Cash flows from operating activities

211.0

73.0

251.2

(121.9)

418.8

Investments in property, plant and equipment

154.4

128.3

221.3

327.4

564.4

Depreciation of property, plant and equipment

97.1

78.2

192.3

157.9

324.6

5.7

(1.5)

5.7

(1.5)

(1.7)

ROIC (%) *

16.2

11.8

16.2

11.8

13.8

Equity ratio (%)

41.6

41.4

41.6

41.4

42.7

EBITDA margin (%)

9.3

8.0

9.0

7.0

8.8

EBIT margin (%)

5.8

4.5

5.4

3.2

5.4

NIBD/EBITDA *

2.3

3.4

2.3

3.4

2.6

5.91

(7.12)

(3.07)

Other financial data

Return on equity (%) *

Per share data Earnings per share (of DKK 10)

2.61

(12.61)

Net asset value per share (of DKK 10)

182.40

169.93

182.40

169.93

178.62

Share price at end of period (of DKK 10)

118.50

136.00

118.50

136.00

92.50

0.65

0.80

0.65

0.80

0.52

2,790.2

3,190.1

2,790.2

3,190.1

2,173.0

Price/net asset value Market capitalisation

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.

Interim report – first half year of 2012 Financial performance Revenue EBITDA EBIT Value adj. fin. investment Profit before tax

Q2 2012 3,211.8 297.1 186.3 (78.0) 78.8

Q2 2011 2,762.1 220.3 125.1 (466.4) (377.7)

Change 449.7 76.8 61.2 388.4 456.5

Revenue EBITDA EBIT Value adj. fin. investment Profit before tax

YTD 2012 YTD 2011 6,130.5 4,949.5 553.5 348.0 332.9 156.6 (90.0) (285.1) 186.5 (193.6)

Change 1,181.0 205.5 176.3 195.1 380.1

The Group’s other financial items increased from an expense of DKK 42 million in H1 2011 to an expense of DKK 56 million in H1 2012. The increase was due to a number of different factors, including higher average net interestbearing debts in BioMar and Fibertex Nonwovens and a negative effect from foreign exchange adjustments. This reduced the consolidated loss before tax from DKK 194 million in H1 2011 to a profit of DKK 186 million in H1 2012.

Liquidity and capital resources During 2010 some of the Group’s businesses began to refocus their strategies for expansion after a period of relative caution. As a result, the Group has stepped up investments in strategic capacity expansion in 2011 and in 2012 to date, and will be making additional investments to expand capacity during the rest of 2012 and in 2013, taking necessary measures and responding to profitable opportunities. Still, it is important to emphasise that optimising the use of capital in accordance with market developments is a constant priority for Schouw & Co.

The companies of the Schouw & Co. Group had a good first half year overall. Each company is reviewed separately elsewhere in this report. Consolidated revenue was up by 24% from DKK 4,949 million in H1 2011 to DKK 6,130 million in H1 2012. Most of the improvement originated from BioMar, but all of the Group's wholly owned companies reported revenue improvements. EBIT more than doubled from DKK 157 million in H1 2011 to DKK 333 million in H1 2012. Like the revenue improvement, the stronger earnings were driven mainly by BioMar, but Fibertex Nonwovens, Hydra-Grene and Martin also contributed.

Operating activities resulted in a cash inflow of DKK 251 million in H1 2012, compared with an outflow of DKK 122 million in H1 2011. In H1 2012, we applied DKK 221 million for investments in property, plant and equipment and DKK 60 million for other investments. In H1 2011, the corresponding investment amounts were DKK 327 million and DKK 204 million, part of which was due to Fibertex Nonwovens acquiring a French business.

Xergi, the pro rata consolidated joint venture, reported H1 revenue in line with last year, but with a slight drop in earnings.

The Group reduced its consolidated net interest-bearing debt from DKK 3,018 million at June 30, 2011 to DKK 2,873 million at June 30, 2012, and a further reduction is expected in the period until the end of the year.

Consolidated EBIT for the first half of 2012 matched the expectations used to upgrade the full-year EBIT guidance at the release of the Q1 interim report, and the improvement is generally considered to be highly satisfactory.

The Group’s working capital tie-up increased by 15% from DKK 2,073 million at June 30, 2011 to DKK 2,377 million at June 30, 2012. This higher capital tie-up is the caused by the growth in consolidated revenue. Measured relative to the revenue of the preceding 12-month period, working capital has been reduced from 20% at June 30, 2011 to 18% at June 30, 2012.

The Group's results from associates, which are stated after tax, improved to break even from a loss of DKK 23 million in H1 2011, when the performance was adversely affected by writedowns on venture investments in Incuba. The H1 2012 profit before tax was affected by a negative value adjustment on financial investments of DKK 90 million, as compared with a negative value adjustment of DKK 285 million in H1 2011.

Financial investments

Outlook

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

Overall, the companies of the Schouw & Co. Group reported very good financial results in the first quarter of 2012 relative to previous years, and the good performance of the quarter made us upgrade our full-year profit guidance in the Q1 interim report.

Combined, the financial investments made a negative contribution of DKK 90 million to the consolidated financial items in H1 2012. In H1 2011, the effect was negative at DKK 285 million.

Most of our companies reported a Q2 2012 performance in line with the expectations that formed the basis for the FY profit upgrade. For Fibertex Nonwovens, the Q2 2012 performance has further fuelled expectations for the fullyear results.

The contribution from financial investments in H1 2012 included dividends received in respect of the shares in Lerøy of DKK 6.9 million. VESTAS Number of s ha res hel d Pri ce (DKK) Ma rket va l ue (DKKm)

At Jun. 30, At Dec. 31, 2012 2011 4,000,000 4,000,000 32.42 62.00 129.7 248.0

LERØY Number of s ha res hel d Pri ce (NOK) Excha nge ra te DKK/NOK Ma rket va l ue (DKKm) *

At Jun. 30, At Dec. 31, 2012 2011 1,000,000 1,000,000 106.00 84.00 98.68 95.88 104.6 80.5

For BioMar, Fibertex Personal Care, Hydra-Grene and Martin, the FY profit expectations remain within the guided ranges, while Grene has now modified its expectations to the level originally guided at the beginning of the year.

Change 0 (29.58) (118.3)

The profit guidance for other businesses includes Xergi, which continues to expect to improve both revenue and earnings in 2012.

Change

As always, the full-year results will depend strongly on the results of the second half of the year, which is the high season for the Schouw & Co. Group. Nevertheless, the good performance of the first half of 2012 supports our view that the Group's businesses generally stand well prepared to address the challenges and opportunities that the second half of the year will bring.

0 22.00 2.80 24.1

* DKK 2.7 million of this change has been recognised directly in equity under exchange rate adjustments.

Schouw & Co. shares

Overall, therefore, Schouw & Co. expects to generate consolidated revenue of just over DKK 13 billion in 2012. The revenue may change quite substantially due to changes in raw materials prices, without necessarily having any notable effect on profit.

Schouw & Co.’s share capital comprises 25,500,000 shares with a nominal value of DKK 10 each for a total nominal share capital of DKK 255,000,000. Each share carries one vote, for a total of 25,500,000 voting rights. Schouw & Co. shares appreciated by 28.1% during the first half year of 2012, from DKK 92.50 per share at December 31, 2011 to DKK 118.50 per share at June 30, 2012.

The FY 2012 EBIT forecast is also unchanged at the range of DKK 720–800 million, which is a further step up from the substantial EBIT improvement to DKK 646 million in 2011 from DKK 369 million in 2010.

Treasury shares

Forecast

At December 31, 2011, the company held 2,008,363 treasury shares, equal to 7.88% of the share capital, and during the first half of 2012, Schouw & Co. used 54,000 treasury shares for the Group’s share incentive scheme. Accordingly, the company held 1,954,363 treasury shares at June 30, 2012, equal to 7.66% of the share capital. The portfolio of treasury shares is recognised at DKK 0.

EBIT (DKK mi l l i on) After Q2 After Q1 Ori gi na l Bi oMa r 400-420 400-420 360-380 Fi bertex Pers ona l Ca re 145-155 145-155 145-155 Fi bertex Nonwovens 25-35 20-30 15-25 Grene 80-90 85-95 80-90 Hydra -Grene 65-75 65-75 60-70 Ma rti n 25-35 25-35 20-30 Others (10-20) (10-20) (10-20) Tota l EBIT 720-800 720-800 660-740 As s oci a tes (10) (10) (10) Fi na nci a l s * (120) (120) (120) Profi t before ta x* 590-670 590-670 530-610 * Before the effects of financial investments.

On April 11, 2012, the shareholders in general meeting renewed the authority permitting Schouw & Co. to acquire and hold up to 20% of the company’s shares until April 1, 2017.

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, 2012 which are expected to have a material impact on the Group's financial position or outlook.

Accounting policies

Judgments and estimates

The interim report is presented in accordance with IAS 34 â&#x20AC;&#x153;Interim financial reportingâ&#x20AC;? as adopted by the EU and additional Danish disclosure requirements for interim reports of listed companies.

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. Actual results may differ from these judgments.

Other than as set out below, the accounting policies are unchanged from those applied in the annual report for 2011.

The most significant estimates are unchanged from December 31, 2011, and the most significant judgment uncertainty related thereto is the same as that used in preparing the Annual Report 2011.

Effective from January 1, 2012, Schouw & Co. implemented amendments to IFRS 7 and IAS 12. The implementation did not affect recognition or measurement.

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.

Reference is made to Annual Report 2011, which contains a full description of the accounting policies.

Financial calendar for 2012 November 8, 2012

Release of Q3 2012 interim report

The company will provide detailed information on its website, www.schouw.dk, and through company announcements about contacts and times for the webcast and the teleconference to be held in connection with the release of the Q3 2012 interim report.

BioMar

Wholly owned

BioMar is the worldâ&#x20AC;&#x2122;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 Scotland), the Americas (Chile) and Continental Europe.

best interest if the salmon market is in a healthy balance, because that enables the company's customers to strengthen their earnings. The Norwegian market remains very competitive, one of the effects being that BioMar has opted not to accept the terms of a contract renewal set by one of the company's largest customers. As a result, BioMar's market share is expected to be below normal in the second half of 2012.

Financial performance BioMar reported very strong growth for the H1 2012 period, even with the growth rate falling from the first to the second quarter. Revenue was up by 31% from DKK 2,697 million in H1 2011 to DKK 3,527 million in H1 2012, driven by a similar increase in volumes as average prices were largely unchanged. The strong improvement was mainly driven by continued market growth in BioMar's two largest markets, Chile and Norway.

The overall markets of Continental Europe are expected to be relatively stable in the upcoming period. The drop in prices of single-portion trout in the early summer is the most notable change, and this has combined with the higher prices of raw materials to put the segment under a certain amount of pressure. On the other hand, sea bass and sea bream prices have been at acceptable levels so far, and as these are the main species for fish farmers in southern Europe, BioMar has managed to maintain a fair business volume in the region despite the general economic instability there.

The first part of the year is traditionally BioMar's low season and with the fair amount of production capacity available, the strong top-line improvement had a strong bottom-line effect. Combined with the otherwise strong efficiency, this served to lift EBIT from DKK 57 million in H1 2011 to DKK 163 million in H1 2012. The improvement derived mainly from Chile and Continental Europe, and only to a limited extent from the North Sea region.

BioMar has come very close to full capacity utilisation in Chile and the work of planning capacity expansion continues, but the timing will obviously depend on market developments. At the present time, the other markets still have sufficient capacity.

The working capital tie-up increased from DKK 588 million at June 30, 2011 to DKK 837 million at June 30, 2012, mainly due to the immediate effect of the higher revenue and because fewer customers than previously are accepting cash rebates.

The new factory in Costa Rica was officially inaugurated on July 23, 2012 in a ceremony attended by Costa Rica's President and four cabinet ministers. The factory has started up a moderate level of production, and capacity will be lifted gradually during the second half of 2012.

Adjusted for the payment of intra-group dividends of DKK 150 million in the first quarter of 2012, net interestbearing debt actually fell by DKK 128 million; net interestbearing debt amounted to DKK 776 million at June 30, 2012, compared with DKK 755 million at June 30, 2011.

Outlook After strong year-on-year improvements in revenue and earnings in H1 2012, BioMar is expected to generate revenue in the second half of the year that will be more in line with H2 2011. At the same time, the more competitive market is expected to bring more pressure on earnings.

Business development Growth rates were very high in both Norway and Chile, but they did in fact weaken as the six-month period wore on, and growth is expected to be at a much more moderate level in the second half-year. In Norway, the market may even be flat.

Against this background, BioMar maintains its most recent full-year revenue forecast of approximately DKK 8 billion. The full-year EBIT forecast is also unchanged in the range of DKK 400-420 million.

With salmon prices remaining relatively low, the general fish farming industry is under pressure, not least the Chilean fish farmers, many of whom have weak capitalisation. In addition, the production of coho (Pacific salmon) in Chile has been stepped up considerably relative to demand, logically depressing prices. The effects of this imbalance are amplified by the higher raw materials prices and the resultingly higher feed costs. All of this results in a challenging situation in Chile in the intermediate term, but does not change the forward-looking view of Chile as a very attractive market.

As always, the revenue guidance depends strongly on how prices of raw materials develop, and with the upcoming period clearly being BioMar's high season even relatively small fluctuations may have a material impact on the fullyear results. DKK million Volume (1000 t) Revenue - of which North Sea - of which Americas - of which Continental Europe Direct production costs Gross profit

Overall, therefore, BioMar expects a shift in the market for salmon feed from recent years' strong growth to a period of stability in the overall market. Although this may impact growth opportunities in the short term, it is in BioMar's 6

Q2 2012 Q2 2011 237 1,912 842 591 479 (1,480) 432

187 1,563 734 418 411 (1,235) 328

YTD 2012 432 3,527 1,536 1,274 717 (2,752) 775

YTD 2011 326 2,697 1,229 819 649 (2,129) 568

2011 total

889 7,269 3,734 1,880 1,655 (5,774) 1,495

BioMar January 1 – June 30

Amounts in DKK million

Q2 2012

Q2 2011

YTD 2012

YTD 2011

2011 total

INCOME STATEMENT Revenue

1,912.3

1,563.0

3,527.2

2,697.0

7,268.8

Gros s profi t

273.8

198.9

472.1

313.3

925.1

EBITDA

149.4

93.9

238.7

116.8

486.9

38.1

29.6

75.5

59.5

125.3

111.3

64.3

163.2

57.3

361.6

Depreci a ti on Operating profit (EBIT) Va l ue a djus tment of s ha res i n Lerøy

18.8

(31.6)

28.4

(58.7)

(99.8)

Fi na nci a l i tems , net

(13.0)

(7.7)

(25.8)

(10.9)

(36.8)

Profit before tax

117.1

25.0

165.8

(12.3)

225.0

Ta x on profi t Profit for the period

(19.8)

(15.6)

(27.9)

(12.9)

(83.4)

97.3

9.4

137.9

(25.2)

141.6

Ca s h fl ows from opera ti ng a cti vi ti es

74.4

36.8

(11.2)

(170.0)

133.4

Ca s h fl ows from i nves ti ng a cti vi ti es

(46.6)

(40.0)

(62.9)

(95.9)

(200.0)

Ca s h fl ows from fi na nci ng a cti vi ti es

(79.5)

69.1

(3.0)

274.5

109.5

CASH FLOW

BALANCE SHEET Inta ngi bl e a s s ets *

339.0

312.2

339.0

312.2

335.5

1,096.2

1,012.0

1,096.2

1,012.0

1,076.3

47.0

55.9

47.0

55.9

59.8

362.7

402.4

362.7

402.4

439.8

Other current a s s ets Total assets

2,547.1

2,024.5

2,547.1

2,024.5

2,149.3

4,392.0

3,807.0

4,392.0

3,807.0

4,060.7

Equi ty

1,587.3

1,299.4

1,587.3

1,299.4

1,568.7

Interes t-bea ri ng debt

1,139.1

1,157.2

1,139.1

1,157.2

992.2

Other credi tors Total liabilities and equity

1,665.6

1,350.4

1,665.6

1,350.4

1,499.8

4,392.0

3,807.0

4,392.0

3,807.0

4,060.7

838

754

825

743

761

7.8%

6.0%

6.8%

4.3%

6.7%

Property, pl a nt a nd equi pment Other non-current a s s ets Ca s h a nd ca s h equi va l ents

Avera ge number of empl oyees FINANCIAL KEY FIGURES EBITDA ma rgi n EBIT ma rgi n

5.8%

4.1%

4.6%

2.1%

5.0%

ROIC (a nnua l i s ed)

26.0%

20.0%

26.0%

20.0%

22.1%

Worki ng ca pi ta l

837.3

588.1

837.3

588.1

640.1

Net i nteres t-bea ri ng debt

776.4

754.8

776.4

754.8

552.3

* Excluding goodwill on consolidation in the parent company Schouw & Co. of DKK 430.2 million.

Fibertex Personal Care 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.

Wholly owned relevant customers. Fibertex Personal Care now has three state of the art, super-efficient production lines at the factory located in Nilai, close to Kuala Lumpur. Fibertex Personal Care has announced plans for a further extension of the facility in Malaysia, which will increase capacity by about 30% in 2014. The previous expansion project included preparations for this upcoming extension, which is expected to help Fibertex Personal Care share in the expected growth in the Asian markets. The central location in Malaysia gives the facility a solid platform for making competitive shipments to all of south-east Asia.

Financial performance Fibertex Personal Care lifted revenue by 10% from DKK 639 million in H1 2011 to DKK 704 million in H1 2012. The improvement was driven by the operations in Malaysia, as volumes produced have increased following the launch of a new production line in the autumn of 2011. Revenue from Europe was in line with last year, as higher selling prices were offset by a corresponding fall in volumes.

The project for the new line is now underway. Construction will start in the third quarter of 2012 and is scheduled for completion in the fourth quarter of 2013. The announcement of this new extension was very well received in the market, and going forward the Malaysian factory will have a very competitive production platform from which to supply not only quality products but also substantial volumes of specialty products.

EBIT for H1 2012 was DKK 55 million, unchanged from H1 2011. The main reason why earnings were unchanged despite the higher revenue were the rising costs of raw materials (selling prices are only adjusted in the subsequent quarter), higher depreciation charges due to the commissioning of the new production line in Malaysia and the generally strong price competition, especially in Europe.

Increasing the share of specialty products is a constant priority for Fibertex Personal Care, including 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.

Fibertex increased its working capital tie-up from DKK 217 million at June 30, 2011 to DKK 253 million at June 30, 2012, mainly due to higher prices of raw materials and the increase in business activity. Net interest-bearing debt increased from DKK 558 million at June 30, 2011 to DKK 650 million at June 30, 2012, in part due to the investment in added production capacity in Malaysia and the payment of DKK 100 million in intragroup dividends.

Outlook Fibertex Personal Care sees Europe as a market with limited growth opportunities and resulting strong price pressure. Asia is a growing market where price competition is also a factor, but where growing demand absorbs the surging supply in the region. The company also expects to sell the full capacity of the latest production line in Malaysia by the end of 2012.

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

Fibertex Personal Care now expects revenue of around DKK 1.5 billion in 2012. EBIT will inherently depend on how prices of raw materials develop during the rest of the year, but in the present situation the company retains its EBIT guidance in the DKK 145â&#x20AC;&#x201C;155 million range.

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 volume fluctuations in the market. The market is generally very demanding in terms of products and product performance, and product quality is a huge priority.

DKK million Revenue - of which Denmark - of which Malaysia

The latest production line in Malaysia was successfully installed in September 2011, and the products manufactured on the line have been tested and approved by the

Q2 2012 349 189 160

Q2 2011 326 190 136

YTD 2012 704 386 318

YTD 2011 639 385 254

2011 total 1,314 796 518

Fibertex Personal Care January 1 â&#x20AC;&#x201C; June 30

Amounts in DKK million

Q2 2012

Q2 2011

YTD 2012

YTD 2011

2011 total

INCOME STATEMENT Revenue

349.0

326.0

703.5

639.3

1,313.7

Gros s profi t

42.6

52.8

102.8

102.9

238.1

EBITDA

49.1

52.4

115.6

105.2

242.8

Depreci a ti on

30.3

22.2

60.1

49.2

94.4

Operating profit (EBIT)

18.8

30.2

55.5

56.0

148.4

Fi na nci a l i tems , net

(2.8)

(3.3)

(7.9)

(6.7)

(8.5)

Profit before tax

16.0

26.9

47.6

49.3

139.9

Ta x on profi t

(8.3)

(6.1)

(20.5)

(11.1)

(36.3)

7.7

20.8

27.1

38.2

103.6

Ca s h fl ows from opera ti ng a cti vi ti es

51.4

60.9

127.9

98.5

148.7

Ca s h fl ows from i nves ti ng a cti vi ti es

(79.3)

(64.6)

(86.9)

(185.8)

(266.5)

Ca s h fl ows from fi na nci ng a cti vi ti es

(4.7)

1.1

(39.1)

83.7

107.3

Profit for the period CASH FLOW

BALANCE SHEET Inta ngi bl e a s s ets *

25.7

27.3

25.7

27.3

26.2

Property, pl a nt a nd equi pment

988.4

873.9

988.4

873.9

944.2

Other non-current a s s ets

120.1

84.9

120.1

84.9

130.8

12.4

17.1

12.4

17.1

10.2

Ca s h a nd ca s h equi va l ents Other current a s s ets Total assets

441.5

388.7

441.5

388.7

443.5

1,588.1

1,391.9

1,588.1

1,391.9

1,554.9

Equi ty

577.2

540.9

577.2

540.9

633.5

Interes t-bea ri ng debt

662.7

575.5

662.7

575.5

599.1

Other credi tors

348.2

275.5

348.2

275.5

322.3

1,588.1

1,391.9

1,588.1

1,391.9

1,554.9

367

338

367

328

322

14.1%

16.1%

16.4%

16.5%

18.5%

Total liabilities and equity Avera ge number of empl oyees FINANCIAL KEY FIGURES EBITDA ma rgi n EBIT ma rgi n

5.4%

9.3%

7.9%

8.8%

11.3%

ROIC (a nnua l i s ed)

13.0%

15.4%

13.0%

15.4%

13.7%

Worki ng ca pi ta l

253.1

217.0

253.1

217.0

284.4

Net i nteres t-bea ri ng debt

650.3

558.3

650.3

558.3

588.9

* Excluding goodwill on consolidation in the parent company Schouw & Co. of DKK 48.1 million.

Fibertex Nonwovens

Wholly owned

Fibertex Nonwovens is among Europe's leading manufacturers of nonwovens, i.e. non-woven textiles used for a number of different industrial purposes.

market share, successfully offsetting the effects of the general downturn. In addition, Fibertex Nonwovens is increasingly reaping the benefits of the structural investments made in recent years, which have reduced the company's general cost base and enhanced its competitive strength.

Effective May 2011, Fibertex Nonwovens acquired a majority interest in French nonwovens manufacturer Tharreau Industries, which is recognised in Fibertex Nonwovens' financial statements as from the date of acquisition. Effective January 1, 2012, the French company changed its name to Fibertex Nonwovens S.A.

Fibertex Nonwovens has thoroughly modernised and expanded its production platforms, launching new and improved products. Most recently, a large production line was installed at the factory in the Czech Republic, increasing the facility's capacity for high-value products to the auto industry, for example.

In June 2012, Fibertex Nonwovens increased its ownership interest in the French company by 9.1 percentage points, bringing it to 98.8% at June 30. The company has launched the formal process of compulsorily redeeming the remaining shares and expects to achieve sole ownership in the autumn of 2012.

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.

Financial performance Fibertex Nonwovens generated revenue of DKK 493 million in H1 2012, compared with DKK 325 million in H1 2011. The improvement was attributable to greater business activity, higher selling prices for the original Fibertex Nonwovens and, obviously, the acquisition of the French business, which generated H1 2012 revenue of DKK 226 million (as compared with the recognised H1 2011 revenue of DKK 77 million).

Following the acquisition of the French business, which manufactures specialist products for the automotive industry and for industrial applications, Fibertex Nonwovens has further strengthened its potential to become Europe's leading manufacturer of industrial nonwovens. The company is maintaining its sales strategy and the dedicated efforts to expand sales in order to achieve high capacity utilisation and future earnings. As part of that process, the company has built a solid portfolio of new projects, consisting of products for the auto industry and products that will be sold in new geographical markets with shipments gradually beginning during 2012.

EBIT was DKK 22 million as compared with a DKK 10 million loss in H1 2011. The improvement was due both to an EBIT improvement in the original Fibertex Nonwovens and the profit contribution from the acquired French business. Working capital at June 30, 2012 was unchanged from June 30, 2011, whereas the net interest-bearing debt increased by DKK 13 million due in part to the recent acquisition of shares in the French company worth DKK 31 million.

Outlook Fibertex Nonwovens expects to maintain the high level of business activity in the months ahead. In most industrial markets, demand seems to have stabilised at current levels, but the market remains jittery, and the relatively high level of raw materials prices will put earnings under pressure.

Business development The earnings improvement of H1 2012 was driven by a positive sales performance and margin improvements in largely all business areas. Enhanced earnings on big volume contracts, increased sales of high-value products as well as a generally good output capacity were main components of the improvement.

Fibertex Nonwovens expects to generate FY 2012 revenue of just over DKK 900 million, in line with the most recent guidance, while the EBIT forecast is raised to the DKK 25â&#x20AC;&#x201C; 35 million range.

However, demand remains subdued and was affected by the economic instability in Europe, especially in the second quarter. Activity levels have dropped relative to last year in the automotive and a number of industrial sectors. By launching new products and by lifting sales to geographical markets outside Europe, Fibertex Nonwovens has won

DKK million Revenue - of which Denmark - of which Czech Republic - of which France

Q2 2012 245 63 70 112

Q2 2011 205 63 65 77

YTD 2012 493 132 135 226

YTD 2011 325 125 123 77

2011 total 726 226 240 260

Fibertex Nonwovens January 1 â&#x20AC;&#x201C; June 30

Amounts in DKK million

Q2 2012

Q2 2011

YTD 2012

YTD 2011

2011 total

INCOME STATEMENT Revenue

244.7

204.8

493.4

324.5

726.5

Gros s profi t

47.6

28.4

100.2

47.2

122.2

EBITDA

25.6

6.3

54.6

13.0

45.6

Depreci a ti on

16.2

13.7

32.3

23.2

52.7

Operating profit (EBIT)

9.4

(7.4)

22.3

(10.2)

(7.1)

Profi t from a s s oci a tes

(1.4)

(1.6)

(2.7)

(3.2)

(5.9)

Fi na nci a l i tems , net

(5.7)

(2.3)

(9.5)

(4.7)

(13.2)

2.3

(11.3)

10.1

(18.1)

(26.2)

(1.2)

1.5

(3.7)

2.9

7.3

1.1

(9.8)

6.4

(15.2)

(18.9)

Ca s h fl ows from opera ti ng a cti vi ti es

25.1

(32.2)

19.0

(30.7)

12.4

Ca s h fl ows from i nves ti ng a cti vi ti es

(38.3)

(202.6)

(43.5)

(206.3)

(240.1)

Ca s h fl ows from fi na nci ng a cti vi ti es

22.0

271.6

43.8

273.9

285.3

Profit before tax Ta x on profi t Profit for the period CASH FLOW

BALANCE SHEET Inta ngi bl e a s s ets *

70.5

72.0

70.5

72.0

71.5

496.2

545.6

496.2

545.6

515.0

Other non-current a s s ets

22.0

19.5

22.0

19.5

22.8

Ca s h a nd ca s h equi va l ents

79.2

39.5

79.2

39.5

59.9

Property, pl a nt a nd equi pment

Other current a s s ets Total assets

428.7

417.4

428.7

417.4

388.7

1,096.6

1,094.0

1,096.6

1,094.0

1,057.9

Equi ty

332.5

388.4

332.5

388.4

355.9

Interes t-bea ri ng debt

600.2

547.6

600.2

547.6

555.7

Other credi tors Total liabilities and equity

163.9

158.0

163.9

158.0

146.3

1,096.6

1,094.0

1,096.6

1,094.0

1,057.9

518

436

509

405

449

10.5%

3.1%

11.1%

4.0%

6.3%

EBIT ma rgi n

3.8%

-3.6%

4.5%

-3.1%

-1.0%

ROIC (a nnua l i s ed)

3.4%

neg.

3.4%

neg.

Avera ge number of empl oyees FINANCIAL KEY FIGURES EBITDA ma rgi n

Worki ng ca pi ta l

296.3

295.9

296.3

295.9

272.0

Net i nteres t-bea ri ng debt

521.0

508.2

521.0

508.2

495.8

* Excluding goodwill on consolidation in the parent company Schouw & Co. of DKK 32.0 million.

Grene

Wholly owned

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

Grene demerged the Polish organisation into two units effective January 1, 2012. One now runs the wholesale operations, mirroring the Grene operations in other countries, while the other operates Grene's some 90 retail outlets spread across Poland. The de-merger of the Polish operations has been a success, and indications are that the move will generate the expected dynamics and added focus on the two distinct business activities.

Financial performance Grene lifted revenue by 3% from DKK 665 million in H1 2011 to DKK 686 million in H1 2012. The revenue improvement was driven by the businesses in Denmark, Poland and Russia, but the advance was held back by falling exchange rates, especially in the PLN/DKK cross.

There has been a general slowdown in the industry activities, which are mainly conducted in Denmark. The revenue performance largely mirrors the estimated market developments.

EBIT improved from DKK 44 million in H1 2011 to DKK 48 million in H1 2012, because a DKK 4 million VAT receivable in Russia that had previously been written off was recognised during the period. The companies' overall operating performance was unchanged, as an improvement by Grene Denmark was offset by a similar setback in the other companies.

Outlook The European market is currently undergoing change, with international players consolidating their operations and new partnerships being formed. Grene monitors the situation carefully and is preparing to meet the international competition in existing markets and to pursue new business opportunities available in central and eastern Europe.

The working capital tie-up at June 30, 2012 was largely unchanged from June 30, 2011, whereas the net interestbearing debt was reduced slightly from DKK 484 million at June 30, 2011 to DKK 478 million at June 30, 2012.

The general market expectations for the Agro business were not quite met in the second quarter of 2012, and the outlook for the second half of the year is one of uncertainty. Price competition is attracting special attention, as it may impact the full-year performance. The industry segment is expected to continue to see subdued demand in the second half of 2012.

Business development Grene reported a somewhat volatile revenue performance for the first half of 2012. After improving in the first quarter, revenue only just reached the year-earlier figure in the second quarter. Sales are always to some degree influenced by the weather, but this reporting period was marked by a general mood of hesitation and reluctance in the agro market.

In light of the good start to the year, Grene upgraded its FY 2012 revenue forecast in the Q1 interim report to approximately DKK 1.4 billion and its FY EBIT forecast to DKK 8595 million.

Grene has begun a large expansion of its warehouse facilities in Denmark. The project is in two phases, phase 1 involving a building extension of 3,250 m2 currently under construction. Phase 2, comprising new inventory management software and an extension of the automated warehouse in the existing building complex, will be implemented over a period of about 18 months. The overall investment scope for the project amounts to around DKK 50 million.

The downbeat performance in the second quarter and the uncertain outlook for the second half of the year has increased the risk of the actual FY revenue falling short of the latest guidance. Accordingly, Grene lowers its 2012 guidance to the original forecast of revenue up to DKK 1.4 billion and EBIT in the range of DKK 80-90 million. DKK million Revenue - of which Industry - of which Agro - in Denmark - in Poland - in Sweden - in Norway - in Finland - other Agro

At the turn of the year, the Swedish business became the first unit to install Grene's new ERP system. Implementation of the system in Sweden proved to be a bit of a challenge, but it was a useful experience that allowed Grene to make some appropriate changes. Implementation of the system at Grene in Norway has progressed entirely according to plan, and Grene is now ready to implement the system in Denmark at around the turn of the year 2012â&#x20AC;&#x201C; 2013.

Q2 2012 358 60 298 76 127 42 25 11 17

Q2 2011 358 61 297 74 132 45 25 10 11

YTD 2012 686 126 560 153 242 79 45 16 25

YTD 2011 665 126 539 146 240 81 41 16 15

2011 total 1,307 254 1,053 290 460 158 80 34 31

Grene January 1 â&#x20AC;&#x201C; June 30

Amounts in DKK million

Q2 2012

Q2 2011

YTD 2012

YTD 2011

2011 total

INCOME STATEMENT Revenue

357.6

357.5

686.4

664.7

1,307.1

Gros s profi t

116.9

119.2

223.3

217.4

442.6

38.4

36.8

63.4

59.3

118.8

Depreci a ti on

7.9

7.7

15.4

15.2

29.9

Impa i rment

0.0

2.0

Operating profit (EBIT)

30.5

29.1

48.0

44.1

86.9

Fi na nci a l i tems , net

(8.1)

(5.3)

(7.0)

(9.4)

(23.8)

Profit before tax

22.4

23.8

41.0

34.7

63.1

EBITDA

Ta x on profi t

(5.8)

(5.9)

(10.3)

(8.4)

(17.4)

Profit for the period

16.6

17.9

30.7

26.3

45.7

Ca s h fl ows from opera ti ng a cti vi ti es

11.8

10.0

6.1

(16.9)

48.4

Ca s h fl ows from i nves ti ng a cti vi ti es

(16.8)

(39.1)

(26.1)

(44.3)

Ca s h fl ows from fi na nci ng a cti vi ti es

9.8

7.3

40.6

43.9

(8.5)

48.6

39.8

48.6

39.8

43.2

312.7

299.7

312.7

299.7

289.6

11.7

12.0

11.7

12.0

11.9

CASH FLOW

BALANCE SHEET Inta ngi bl e a s s ets Property, pl a nt a nd equi pment Other non-current a s s ets Ca s h a nd ca s h equi va l ents

19.0

16.8

19.0

16.8

11.5

677.9

665.7

677.9

665.7

574.8

1,069.9

1,034.0

1,069.9

1,034.0

931.0

Equi ty

317.4

282.3

317.4

282.3

285.3

Interes t-bea ri ng debt

517.3

525.7

517.3

525.7

477.2

Other credi tors

235.2

226.0

235.2

226.0

168.5

1,069.9

1,034.0

1,069.9

1,034.0

931.0

906

908

911

906

921

10.7%

10.3%

9.2%

8.9%

9.1%

8.5%

8.1%

7.0%

6.6%

ROIC (a nnua l i s ed)

12.8%

10.7%

12.8%

10.7%

12.5%

Worki ng ca pi ta l

441.5

439.0

441.5

439.0

392.7

Net i nteres t-bea ri ng debt

477.5

484.4

477.5

484.4

437.8

Other current a s s ets Total assets

Total liabilities and equity Avera ge number of empl oyees FINANCIAL KEY FIGURES EBITDA ma rgi n EBIT ma rgi n

Hydra-Grene

Wholly owned

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 providing related consulting services.

processing centres, are still being manufactured in Denmark. Sales to India's wind turbine industry are also performing as expected, and Hydra-Grene India recently established small-scale production of simple components.

Financial performance Hydra-Grene boosted revenue by 39% from DKK 214 million in H1 2011 to DKK 299 million in H1 2012. The improvement was mainly driven by stronger demand from the wind turbine industry. Sales to other industry customers grew marginally in the first half of 2012 after the strong year-on-year improvement recorded in the first half of 2011.

Sales to the US market improved in the first half of 2012. The entire wind turbine industry is waiting anxiously for a possible PTC (Production Tax Credit) extension, which is extremely important for the future sales potential in the US market. However, even if the PTC is extended before the end of 2012, a slowdown of activity in the US market should be expected in 2013.

EBIT improved from DKK 30 million in H1 2011 to DKK 42 million in H1 2012. The improvement was a direct result of the revenue improvement.

Outlook

The overall working capital tie-up increased from DKK 189 million at June 30, 2011 to DKK 234 million at June 30, 2012, due to the increase in business activity and necessary stock building.

From the start of the year, Hydra-Grene anticipated substantial fluctuations in sales during 2012. This still applies, but the level of activity in the wind turbine industry is expected to remain high over the next few months. On the other hand, sales are expected to be relatively sluggish in the fourth quarter of 2012.

Adjusted for the payment of intra-group dividends of DKK 50 million in the first half of 2012, net interest-bearing debt had dropped slightly at June 30, 2012 compared to June 30, 2011.

For other industry customers, from which Hydra-Grene is currently seeing relatively small order inflows, sales are expected to be lower than in the first half of 2012, but aftermarket sales are still expected to improve.

Business development

Sales to the wind turbine industry as well as to other industry customers are marked by fierce price competition which, combined with the strongly fluctuating demand during the year, makes it difficult to optimise costs. HydraGrene has postponed the implementation of a new ERP system from 2012 to 2013, but the preparatory process to optimise a number of business procedures and processes continues, and this will inherently put a temporary strain on the company's resources.

Hydra-Grene had a good first half of 2012, reporting improved sales to the wind turbine industry as well as a small improvement in sales to other industry customers. Hydra-Grene is still involved in a number of large development projects for the wind turbine industry that enhance its opportunities to expand sales to this segment. The company consistently works to develop its production capacity by implementing advanced equipment, so as to keep the manual labour component in production at a minimum.

Encouraged by the high level of activity in the first half of 2012, Hydra-Grene maintains its FY 2012 forecast of revenue of just over DKK 500 million despite the prospects of a drop in sales in the second half of the year. The full-year EBIT forecast is maintained at the range of DKK 65-75 million.

Sales to China's wind turbine industry are generally performing as expected, in spite of the generally subdued demand in China. Hydra-Grene manufactures a number of relatively simple components in China, while the more complex valve systems, which are produced at advanced

Hydra-Grene January 1 â&#x20AC;&#x201C; June 30

Amounts in DKK million

Q2 2012

Q2 2011

YTD 2012

YTD 2011

2011 total

INCOME STATEMENT Revenue

145.2

109.0

298.5

214.5

465.5

Gros s profi t

44.5

36.8

92.9

71.4

155.5

EBITDA

21.9

17.5

48.1

34.8

80.5

3.7

2.5

6.3

5.2

11.3

Operating profit (EBIT)

18.2

15.0

41.8

29.6

69.2

Profi t from a s s oci a tes

0.0

0.4

Fi na nci a l i tems , net

0.1

(1.2)

(1.7)

(3.7)

(3.1)

18.3

13.8

40.1

25.9

66.5

Depreci a ti on

Profit before tax Ta x on profi t

(4.6)

(3.5)

(10.0)

(6.5)

(16.7)

Profit for the period

13.7

10.3

30.1

19.4

49.8

Ca s h fl ows from opera ti ng a cti vi ti es

0.3

(3.2)

9.2

11.2

29.8

Ca s h fl ows from i nves ti ng a cti vi ti es

(5.2)

(0.7)

(12.7)

(1.2)

(12.0)

Ca s h fl ows from fi na nci ng a cti vi ti es

3.1

(7.2)

3.7

(11.3)

(23.8)

12.1

0.8

12.1

0.8

8.6

105.3

105.5

105.3

105.5

102.4

1.8

1.4

1.8

1.4

1.8

CASH FLOW

BALANCE SHEET Inta ngi bl e a s s ets Property, pl a nt a nd equi pment Other non-current a s s ets Ca s h a nd ca s h equi va l ents

5.6

10.0

5.6

10.0

5.4

Other current a s s ets

302.5

236.2

302.5

236.2

279.3

Total assets

427.3

353.9

427.3

353.9

397.5

Equi ty

166.5

157.0

166.5

157.0

186.3

Interes t-bea ri ng debt

179.0

138.0

179.0

138.0

125.5

81.8

58.9

81.8

58.9

85.7

427.3

353.9

427.3

353.9

397.5

221

191

219

189

196

EBITDA ma rgi n

15.1%

16.1%

16.2%

17.3%

EBIT ma rgi n

12.5%

13.8%

14.0%

13.8%

14.9%

ROIC (a nnua l i s ed)

26.1%

22.4%

26.1%

22.4%

24.1%

Worki ng ca pi ta l

233.7

188.7

233.7

188.7

205.7

Net i nteres t-bea ri ng debt

173.4

128.0

173.4

128.0

120.1

Other credi tors Total liabilities and equity Avera ge number of empl oyees FINANCIAL KEY FIGURES

Martin

Wholly owned

Martin is the worldâ&#x20AC;&#x2122;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.

In the European region, the UK market is rather stagnant and performing well below the other European markets. The French market is offering some compensation for the shortages in the UK, and despite the economic turmoil in southern Europe, sales in Spain have shown good signs since Martin took over direct distribution there a year ago. Sales through the European sales subsidiaries moved a bit higher overall in the first half of 2012.

Financial performance In terms of earnings, Martin achieved the positive expectations expressed for the first half of 2012, making substantial progress in all financial ratios relative to the yearearlier period. As expected, in the second quarter, Martin lost a bit of the revenue momentum from the first quarter when the company executed a big backlog of orders for its new LED product, the MAC Aura.

The US operations generated a 17% improvement relative to H1 2011, the main driver being investments made by the major rental companies. The Russian market, last year's primary growth locomotive, failed to meet expectations in the first half of 2012, because that market became virtually paralysed in connection with the general elections in the spring. However, the Russian market is expected to recover in the second half of 2012.

On the other hand, the order book grew by an additional DKK 68 million in the second quarter to a historic high of DKK 151 million, mainly driven by the launch of Martin's latest big product innovation, the MAC Viper, which will ship in considerable volumes from early in the second half of 2012. As a result, this will have a significant impact on both sales and earnings during the rest of the year.

Progress was also discernible in the Asian market, which is mainly driven by sales in Japan, and that market appears to have regained its strength from before the natural disaster in the spring of 2011. The average number of employees was 498 during the first half of 2012, against 618 in H1 2011 and 599 in the 2011 financial year. The lower headcount of 120 employees relative to H1 2011 was mainly due to the closure of the factory in China (90 employees) and the reduced workforce at the factory in Frederikshavn, Denmark where the growing production of LED products reduced the manhour requirement, as the new technology involves substantially fewer manual assembly processes.

Martin reported H1 2012 revenue of DKK 426 million, a 3% increase from DKK 415 million in H1 2011. On the other hand, the inflow of new orders in the first half improved by more than 20% year on year. As expected, the earnings margins have improved considerably relative to last year, strengthening earnings and lowering the break-even point. Martin reports an EBITDA improvement of almost 70% to DKK 42 million for H1 2012 from DKK 25 million in H1 2011. At the same time, depreciation charges were almost DKK 10 million lower, lifting EBIT to DKK 13 million compared with an EBIT loss of a similar amount in H1 2011.

Outlook Overall, Martin is facing a challenging market in the second half of 2012 fraught with uncertainty and extremely competitive with prices as its key parameter.

There was a cash inflow from operations of DKK 70 million, compared with a cash outflow of DKK 32 million in H1 2011. A reduction in working capital complemented the stronger earnings in generating the positive performance. As a result, net interest-bearing debt fell by DKK 50 million relative to June 30, 2011.

Nevertheless, Martin stands very well prepared to meet the competition. Its historically high order backlog, a number of exciting product launches in the pipeline and a substantially improved cost structure after the many fundamental adjustments make the company very competitive.

Business development

As a result, Martin retains the FY 2012 forecast of revenue of approximately DKK 875 million. The full-year EBIT forecast is also unchanged in the range of DKK 25-35 million.

As predicted in the Q1 interim report, the novelty of the MAC Aura faded in the second quarter, resulting in lower revenue from what was clearly Martin's best selling product in the first six months of 2012.

Martin January 1 â&#x20AC;&#x201C; June 30

Amounts in DKK million

Q2 2012

Q2 2011

YTD 2012

YTD 2011

2011 total

INCOME STATEMENT Revenue

202.4

209.7

425.7

415.3

854.8

Gros s profi t

58.1

49.5

120.5

90.9

205.0

EBITDA

17.5

15.4

42.3

25.2

80.7

Depreci a ti on

13.5

19.3

28.9

38.4

73.4

Impa i rment

0.6

0.0

0.6

0.0

5.3

Operating profit (EBIT)

3.4

(3.9)

12.8

(13.2)

2.0

Profi t from a s s oci a tes

0.9

(1.4)

0.9

(0.2)

0.4

(2.4)

(4.4)

(6.4)

(5.4)

(21.7)

1.9

(9.7)

7.3

(18.8)

(19.3)

(1.5)

1.4

(4.1)

2.7

0.3

0.4

(8.3)

3.2

(16.1)

(19.0)

Ca s h fl ows from opera ti ng a cti vi ti es

37.1

(6.4)

70.4

(32.4)

(5.0)

Ca s h fl ows from i nves ti ng a cti vi ti es

(11.6)

(8.1)

(22.4)

(14.2)

(39.2)

Ca s h fl ows from fi na nci ng a cti vi ti es

(21.2)

15.4

(35.8)

47.8

46.2

Inta ngi bl e a s s ets

130.5

134.7

130.5

134.7

129.9

Property, pl a nt a nd equi pment

131.1

147.8

131.1

147.8

138.4

Other non-current a s s ets

44.5

31.4

44.5

31.4

52.0

Ca s h a nd ca s h equi va l ents

18.9

5.9

18.9

5.9

6.8

Other current a s s ets

469.0

455.3

469.0

455.3

507.3

Total assets

794.0

775.1

794.0

775.1

834.4

Equi ty

182.0

167.7

182.0

167.7

177.8

Interes t-bea ri ng debt

459.7

497.1

459.7

497.1

495.5

Other credi tors

152.3

110.3

152.3

110.3

161.1

Total liabilities and equity

794.0

775.1

794.0

775.1

834.4

475

609

498

618

599

EBITDA ma rgi n

8.6%

7.3%

9.9%

6.1%

9.4%

EBIT ma rgi n

1.7%

-1.9%

3.0%

-3.2%

0.2%

ROIC (a nnua l i s ed)

13.4%

1.8%

13.4%

1.8%

9.4%

Worki ng ca pi ta l

331.1

349.1

331.1

349.1

363.5

Net i nteres t-bea ri ng debt

440.8

491.1

440.8

491.1

488.7

Fi na nci a l i tems , net Profit before tax Ta x on profi t Profit for the period CASH FLOW

BALANCE SHEET

Avera ge number of empl oyees FINANCIAL KEY FIGURES

Management statement The Board of Directors and the Executive Management of Aktieselskabet Schouw & Co. today considered and approved the interim report for the period January 1–June 30, 2012. The interim report, which has been neither audited nor reviewed by the company’s auditors, was prepared in accordance with IAS 34 ‘Interim Financial Reporting’ as adopted by the EU and 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, 2012 and of the results of the Group’s operations and cash flows for the period January 1–June 30, 2012. 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 16, 2012

EXECUTIVE MANAGEMENT

Jens Bjerg Sørensen President

Peter Kjær

BOARD OF DIRECTORS

Jørn Ankær Thomsen Chairman

Erling Eskildsen Deputy Chairman

Niels K. Agner

Kjeld Johannesen

Jørgen Wisborg

Agnete Raaschou-Nielsen

Erling Lindahl

Income and comprehensive income statement January 1 â&#x20AC;&#x201C; June 30

Amounts in DKK million

Q2 2012

Note 1 Revenue Cos t of s a l es Gross profit

Q2 2011

YTD 2012 YTD 2011

2011 TOTAL

3,211.8 (2,624.8) 587.0

2,762.1 (2,271.4) 490.7

6,130.5 (5,010.9) 1,119.6

4,949.5 (4,097.0) 852.5

11,929.0 (9,827.9) 2,101.1

Other opera ti ng i ncome Di s tri buti on cos ts 2 Admi ni s tra ti ve expens es Goodwi l l i mpa i rment Other opera ti on expens es Operating profit (EBIT)

7.6 (290.5) (117.8) 0.0 0.0 186.3

6.1 (256.3) (115.0) 0.0 (0.4) 125.1

10.9 (562.0) (235.3) 0.0 (0.3) 332.9

13.3 (483.7) (224.9) 0.0 (0.6) 156.6

22.8 (1,040.4) (427.5) (6.8) (2.9) 646.3

Profi t from a s s oci a tes Profi t from di ves tments Fi na nci a l i ncome Fi na nci a l expens es Profit before tax

0.8 0.0 31.3 (139.6) 78.8

(12.2) 0.0 18.3 (508.9) (377.7)

(0.5) 0.0 49.5 (195.4) 186.5

(23.5) 0.0 16.8 (343.5) (193.6)

(26.0) 1.9 40.7 (704.1) (41.2)

Ta x on profi t Profit for the period

(17.3)

80.6

(46.7)

24.6

(30.8)

61.5

(297.1)

139.8

(169.0)

(72.0)

Attri buta bl e to: Sha rehol ders of Schouw & Co. Mi nori ty i nteres ts

61.5 0.0

(297.1) 0.0

139.0 0.8

(168.8) (0.2)

(72.3) 0.3

Profit for the period

61.5

(297.1)

139.8

(169.0)

(72.0)

2.61 2.61

(12.61) (12.57)

5.91 5.90

(7.12) (7.09)

(3.07) (3.06)

61.1

(23.0)

53.7

(89.2)

9.4

0.0

14.8

(5.4)

25.3

10.6

1.5

2.9

3.1

5.7

10.3

(6.3) (0.3) 0.0 1.2 57.2

(26.2) (0.3) (2.6) 2.3 (32.1)

(6.5) (0.2) 0.0 2.4 47.1

(41.5) 0.1 (2.6) 2.8 (99.4)

(19.2) (1.0) (2.7) (0.8) 6.6

3 Ea rni ngs per s ha re (DKK) 3 Di l uted ea rni ngs per s ha re (DKK) Comprehensive income Excha nge ra te a djus tment of forei gn s ubs i di a ri es etc. Va l ue a djus tment of hedgi ng i ns truments tra ns ferred to cos t of s a l es Va l ue a djus tment of hedgi ng i ns truments tra ns ferred to fi na nci a l s Va l ue a djus tment of hedgi ng i ns truments recogni s ed duri ng the peri od Other comprehens i ve i ncome from a s s oci a tes Other a djus tment on equi ty Ta x on other comprehens i ve i ncome Other comprehensive income after tax Profi t for the peri od

61.5

(297.1)

139.8

(169.0)

(72.0)

Total recognised comprehensive income

118.7

(329.2)

186.9

(268.4)

(65.4)

Attri buta bl e to: Sha rehol ders of Schouw & Co. Mi nori ty i nteres ts Total recognised comprehensive income

118.7 0.0

(329.2) 0.0

186.1 0.8

(268.2) (0.2)

(64.5) (0.9)

118.7

(329.2)

186.9

(268.4)

(65.4)

Statements of cash flows January 1 â&#x20AC;&#x201C; June 30

Amounts in DKK million

Q2 2012 Profi t before ta x Adjus tment for opera ti ng i tems of a non-ca s h na ture, etc. Depreci a ti on a nd i mpa i rment l os s es Other opera ti ng i tems , net Provi s i ons Income from i nves tments i n a s s oci a tes a fter ta x Fi na nci a l i ncome Fi na nci a l expens es Cash generated from operations (operating activities) before change in working capital

Q2 2011

YTD 2012 YTD 2011

2011 TOTAL

78.8

(377.7)

186.5

(193.6)

(41.2)

110.8 14.8 1.1 (0.8) (31.3) 139.6

95.2 (16.9) 1.0 12.2 (18.3) 508.9

220.5 (4.6) (0.2) 0.5 (49.5) 195.4

191.4 (33.4) 2.8 23.5 (16.8) 343.5

403.0 14.3 8.3 26.0 (40.7) 704.1

313.0

204.4

548.6

317.4

1,073.8

Cha nges i n worki ng ca pi ta l Cash generated from operations (operating activities)

(47.3) 265.7

(84.6) 119.8

(213.8) 334.8

(362.2) (44.8)

(428.3) 645.5

Interes t i ncome recei ved Interes t expens es pa i d Cash flows from ordinary activities

17.2 (40.6) 242.3

4.0 (26.1) 97.7

30.5 (79.0) 286.3

21.2 (58.9) (82.5)

21.3 (136.0) 530.8

Income ta x pa i d Cash flows from operating activities

(31.3) 211.0

(24.7) 73.0

(35.1) 251.2

(39.4) (121.9)

(112.0) 418.8

(17.4) (154.4) 0.2 0.0 (30.9) (1.7) 0.0 (0.1) 0.0 1.6 (202.7)

(14.6) (128.3) 5.0 (207.0) 0.0 0.0 0.0 (0.7) (2.6) 14.2 (334.0)

(31.3) (221.3) 0.5 0.0 (30.9) (1.7) 0.0 (0.8) (0.1) 5.0 (280.6)

(18.4) (327.4) 8.0 (207.0) 0.0 0.0 0.0 (3.7) (2.6) 20.2 (530.9)

(56.5) (564.7) 27.3 (207.2) (16.3) (5.0) 2.6 (2.8) (5.5) 25.0 (803.1)

(130.5) 8.6 132.4

(74.6) 202.4 358.5

(156.0) 15.2 217.0

(92.5) 236.1 694.9

(196.3) 280.7 527.5

0.5 (94.2) 0.0 (83.2)

1.4 (70.8) (64.3) 352.6

0.5 (94.2) 4.1 (13.4)

1.4 (71.4) (69.1) 699.4

(0.2) (71.4) (69.0) 471.3

Cash flows for the period Ca s h a nd ca s h equi va l ents a t Ja nua ry 1 Va l ue a djus tment of ca s h a nd ca s h equi va l ents

(74.9) 573.5 0.2

91.6 406.4 (0.1)

(42.8) 541.3 0.3

46.6 451.6 (0.3)

87.0 451.6 2.7

Cash and cash equivalents at June 30

498.8

497.9

498.8

497.9

541.3

Purcha s e of i nta ngi bl e a s s ets Purcha s e of property, pl a nt a nd equi pment Sa l e of property, pl a nt a nd equi pment Acqui s i ti on of enterpri s es Acqui s i ti on of mi nori ty i nteres ts i n s ubs i di a ri es Acqui s i ti on of a s s oci a tes Di ves tment of s ubs i di a ri es Loa n to a s s oci a tes Purcha s e of s ecuri ti es Sa l e of s ecuri ti es Cash flows from investing activities Debt fi na nci ng: Repa yment of non-current l i a bi l i ti es Proceeds from i ncurri ng non current fi na nci a l l i a bi l i ti es Increa s e (repa yment) of ba nk overdra fts Sha rehol ders : Addi ti ona l mi nori ty s ha rehol ders , net Di vi dend pa i d Purcha s e / s a l e of trea s ury s ha res , net Cash flows from financing activities

Balance sheet Amounts in DKK million

AT JUN. 30, 2012

AT DEC. 31, 2011

AT JUN. 30, 2011

AT DEC. 31, 2010

Goodwi l l Compl eted devel opment projects Devel opment projects i n progres s Other i nta ngi bl e a s s ets Intangible assets

954.7 79.3 42.4 76.3 1,152.7

948.2 73.7 49.1 71.0 1,142.0

931.0 107.4 38.1 32.2 1,108.7

904.0 98.4 30.1 42.8 1,075.3

La nd a nd bui l di ngs Lea s ehol d i mprovements Pl a nt a nd ma chi nery Other fi xtures , tool s a nd equi pment As s ets under cons tructi on, etc. Property, plant and equipment

1,473.2 6.5 1,394.1 119.9 235.0 3,228.7

1,460.9 6.7 1,470.0 125.7 89.9 3,153.2

1,266.5 9.1 1,050.2 93.4 649.4 3,068.6

1,249.7 10.1 1,029.7 98.5 399.0 2,787.0

62.3 152.1 212.9 137.8 565.1

62.7 274.7 217.1 159.6 714.1

67.2 506.0 146.6 106.1 825.9

94.1 736.9 134.1 112.5 1,077.6

Total non-current assets

4,946.5

5,009.3

5,003.2

4,939.9

Inventori es Recei va bl es Income ta x recei va bl e Cons tructi on contra cts Securi ti es Ca s h a nd ca s h equi va l ents Total current assets

1,951.4 2,797.6 28.5 2.4 104.9 498.8 5,383.6

1,855.9 2,391.5 17.5 4.1 80.9 541.3 4,891.2

1,889.5 2,156.8 63.0 3.4 122.5 497.9 4,733.1

1,505.4 1,799.8 4.9 8.3 190.0 451.6 3,960.0

10,330.1

9,900.5

9,736.3

8,899.9

Note

Equi ty i nves tments i n a s s oci a tes Securi ti es Deferred ta x Recei va bl es Other non-current assets

Total assets

Balance sheet Amounts in DKK million

AT JUN. 30, 2012

Note 6

7 7

AT JUN. 30, 2011

AT DEC. 31, 2010

Sha re ca pi ta l Hedge tra ns a cti on res erve Excha nge a djus tment res erve Reta i ned ea rni ngs Propos ed di vi dend Share of equity attributable to the parent company

255.0 (35.1) 181.1 3,893.9 0.0 4,294.9

255.0 (28.5) 127.4 3,740.2 102.0 4,196.1

255.0 (32.5) 24.1 3,739.5 0.0 3,986.1

255.0 (24.7) 113.3 3,971.5 76.5 4,391.6

Mi nori ty i nteres ts Total equity

6.6 4,301.5

33.9 4,230.0

48.2 4,034.3

3.5 4,395.1

Deferred ta x Pens i ons a nd s i mi l a r l i a bi l i ti es Credi t i ns ti tuti ons Other l i a bi l i ti es Non-current liabilities

125.3 40.6 882.0 81.0 1,128.9

127.6 37.3 1,021.7 87.7 1,274.3

117.7 34.8 1,152.0 46.4 1,350.9

73.1 33.6 967.7 51.4 1,125.8

Current porti on of non-current debt Credi t i ns ti tuti ons Cons tructi on contra cts Tra de pa ya bl es a nd other pa ya bl es Income ta x Provi s i ons Current liabilities

269.4 2,236.7 10.4 2,331.3 43.7 8.2 4,899.7

282.7 2,004.3 10.4 2,055.7 34.9 8.2 4,396.2

207.4 2,176.8 4.4 1,936.5 19.9 6.1 4,351.1

185.4 1,457.0 0.6 1,691.1 40.2 4.7 3,379.0

Total liabilities

6,028.6

5,670.5

5,702.0

4,504.8

10,330.1

9,900.5

9,736.3

8,899.9

Total liabilities and equity 8

AT DEC. 31, 2011

Notes wi thout reference

Statement of changes in equity

Other comprehensive income for the period Exchange rate adjustment of foreign subsidiaries Value adjustment of hedging instruments transferred to cost of sales Value adjustment of hedging instruments transferred to financials Value adjustment of hedging instruments recognised during the period Other comprehensive income from associates Other adjustment on equity Tax on other comprehensive income Profit for the period Total recognised comprehensive income Transactions with the owners: Share-based payment, net Dividend distributed Addition/disposal of minority interests Treasury shares bought/sold Transactions with the owners for the period Equity at June 30, 2011

53.7

(5.4)

3.1

0.0

qui ty Tot al e

inte res ts Min orit y

4,196.1

33.9

4,230.0

53.7

0.0

53.7

(5.4)

0.0

(5.4)

3.1

0.0

3.1

(6.5) (0.2) 2.4 (6.6)

53.7

0.0 0.0 139.0 139.0

(6.5) (0.2) 2.4 139.0 186.1

0.0 0.0 0.0 0.8 0.8

(6.5) (0.2) 2.4 139.8 186.9

0.0

2.8 7.8 4.1 14.7

(102.0) (102.0)

2.8 (94.2) 0.0 4.1 (87.3)

0.0 0.0 (28.1) (28.1)

2.8 (94.2) (28.1) 4.1 (115.4)

181.1

3,893.9

0.0

4,294.9

6.6

4,301.5

(89.2)

25.3

5.7

(41.5) (0.1) 2.8 (7.8)

(89.2)

0.2 (2.6) 0.0 (168.8) (171.2)

(41.5) 0.1 (2.6) 2.8 (168.8) (268.2)

0.0 0.0 0.0 0.0 (0.2) (0.2)

(41.5) 0.1 (2.6) 2.8 (169.0) (268.4)

0.0

2.6 5.7 (69.1) (60.8)

(76.5) (76.5)

2.6 (70.8) 0.0 (69.1) (137.3)

0.0 (0.6) 45.5 44.9

2.6 (71.4) 45.5 (69.1) (92.4)

(32.5)

24.1

0.0

3,986.1

3.5

qui ty

113.3

3,739.5

4,391.6

Tot al e

Min orit y

(24.7)

255.0

76.5

Tot al

end Div id

255.0

0.0

3,971.5

inte res ts

arn ing s ed e Ret ain

(35.1)

102.0

Tot al

Div id

end

ed e

arn ing s

ent Ret ain

255.0

3,740.2

ent

Sha re c a Equity at January 1, 2011

Exc ha res nge ad erv just e m 127.4

pita l

Equity at June 30, 2012

(28.5)

Exc ha res nge ad erv just e m

Other comprehensive income for the period Exchange rate adjustment of foreign subsidiaries Value adjustment of hedging instruments transferred to cost of sales Value adjustment of hedging instruments transferred to financials Value adjustment of hedging instruments recognised during the period Other comprehensive income from associates Tax on other comprehensive income Profit for the period Total recognised comprehensive income Transactions with the owners: Share-based payment, net Dividend distributed Addition/disposal of minority interests Treasury shares bought/sold Transactions with the owners for the period

255.0

Hed ge res trans erv ac t e ion

Equity at January 1, 2012

Hed ge res trans erv ac t e ion

Sha re c a

pita l

Amounts in DKK million

0.0

48.2

4,395.1 (89.2)

4,034.3

Notes Amounts in DKK million

NOTE 1 - Segment reporting Schouw 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 has identified six reporting segments, which are BioMar, Fibertex Personal Care, Fibertex Nonwovens, Grene, Hydra-Grene and Martin. 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 armâ&#x20AC;&#x2122;s length basis.

Total reportable segments YTD 2012

Fibertex BioMar Personal Care

External revenue Intra-group revenue Segment revenue Depreciation Impairment EBIT Segment assets of which goodwill Equity investments in associates Segment liabilities Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Capital expenditure Average number of employees

3,527.2 0.0 3,527.2 75.5 0.0 163.2 4,822.2 746.3 0.0 2,804.7 (11.2) (62.9) (3.0) (67.7) 825

691.3 12.2 703.5 60.1 0.0 55.5 1,636.2 72.4 0.0 1,010.9 127.9 (86.9) (39.1) (87.0) 367

489.9 3.5 493.4 32.3 0.0 22.3 1,128.6 77.6 18.2 764.1 19.0 (43.5) 43.8 (11.1) 509

Total reportable segments YTD 2011

Fibertex BioMar Personal Care

Fibertex Nonwovens

External revenue Intra-group revenue Segment revenue Depreciation EBIT Segment assets of which goodwill Equity investments in associates Segment liabilities Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Capital expenditure Average number of employees

2,697.0 0.0 2,697.0 59.5 57.3 4,237.1 715.6 0.0 2,507.6 (170.0) (95.9) 274.5 (114.2) 743

623.7 15.6 639.3 49.2 56.0 1,440.0 72.4 0.0 851.0 98.5 (185.8) 83.7 (186.8) 328

Fibertex Nonwovens

321.8 2.7 324.5 23.2 (10.2) 1,126.1 77.8 19.1 705.6 (30.7) (206.3) 273.9 (7.7) 405

Grene Hydra-Grene

Martin

Total

282.6 15.9 298.5 6.3 0.0 41.8 427.3 0.0 1.7 260.8 9.2 (12.7) 3.7 (12.7) 219

425.6 0.1 425.7 28.9 0.6 12.8 794.0 47.0 10.1 612.0 70.4 (22.4) (35.8) (22.8) 498

6,099.3 35.4 6,134.7 218.5 0.6 343.6 9,878.2 954.8 30.0 6,205.0 221.4 (267.5) 10.2 (240.4) 3,329

Grene Hydra-Grene

Martin

Total

415.2 0.1 415.3 38.4 (13.2) 775.1 47.0 9.0 607.4 (32.4) (14.2) 47.8 (17.3) 618

4,919.0 36.3 4,955.3 190.7 163.6 8,966.2 924.3 29.5 5,620.2 (140.3) (529.5) 712.5 (345.7) 3,189

682.7 3.7 686.4 15.4 0.0 48.0 1,069.9 11.5 0.0 752.5 6.1 (39.1) 40.6 (39.1) 911

663.0 1.7 664.7 15.2 44.1 1,034.0 11.5 0.0 751.7 (16.9) (26.1) 43.9 (17.6) 906

198.3 16.2 214.5 5.2 29.6 353.9 0.0 1.4 196.9 11.2 (1.2) (11.3) (2.1) 189

Notes Amounts in DKK million NOTE 1 - Segment reporting (continued) Reconciliation of revenue, profit before tax, assets and liabilities

YTD 2012

YTD 2011

Reconciliation of segment revenue: Revenue from reporting segments Revenue from non-reporting segments Revenue from the parent company Group elimination Group revenue

6,134.7 23.6 10.0 (37.8) 6,130.5

4,955.3 22.9 9.8 (38.5) 4,949.5

Reconciliation of EBIT: EBIT from reporting segments Revenue from non-reporting segments EBIT from the parent company EBIT

343.6 (4.8) (5.9) 332.9

163.6 (2.7) (4.3) 156.6

Reconciliation of segment assets: Assets from reporting segments Revenue from non-reporting segments Assets from the parent company Group elimination Assets

9,878.2 483.6 3,381.1 (3,412.8) 10,330.1

8,966.2 752.3 3,630.1 (3,612.3) 9,736.3

Reconciliation of segment liabilities: Liabilities from reporting segments Revenue from non-reporting segments Liabilities from the parent company Group elimination Liabilities

6,205.0 25.0 302.0 (503.4) 6,028.6

5,620.2 29.2 485.8 (433.2) 5,702.0

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. Outstanding options Granted in 2008 1) Granted in 2009 Granted in 2010 Granted in 2011 Outstanding options at December 31, 2011 Granted in 2012 Expired (share options granted in 2008) Exercised (from the share options granted in 2009) Outstanding options at June 30, 2012

Management

Other

Total

36,000 36,000 34,000 55,000 161,000 55,000 -36,000 -12,000 168,000

144,000 86,000 148,000 184,000 562,000 184,000 -144,000 -42,000 560,000

180,000 122,000 182,000 239,000 723,000 239,000 -180,000 -54,000 728,000

Strike price in DKK (2) 224.85 78.61 125.53 151.61 155.83

Fair value in DKK Fair value in total Can be exercised Can be exercised to per option (3) in DKK millions (3) from March 2010 March 2012 37.83 6.8 March 2011 March 2013 21.27 4.7 March 2012 March 2014 24.38 4.4 March 2013 March 2015 25.80 6.2 24.24

5.8

March 2014

March 2016

1) The number of options has been adjusted for bonus share issue in 2008 2) At exercise after four years (at the latest possible moment) 3) At the date of grant A total of 54,000 options relating to the 2009 grant were exercised in the first half of 2012. The exercise of these options produced cash proceeds to the Group of DKK 4.1 million. The following assumptions were applied in calculating the fair value of outstanding share options at the date of grant: 2012 grant 34.50% 48 mths DKK 3 4.00%

Expected volatility Expected term Expected dividend per share Risk-free interest rate

2011 grant 33.75% 48 mths DKK 3 3.00%

2010 grant 37.41% 48 mths DKK 3 4.00%

2009 grant 56.54% 48 mths DKK 3 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.

Notes Amounts in DKK million

NOTE 3 - Earnings per share (DKK)

Q2 2012

Share of the profit for the period attributable to shareholders of Schouw

61.5

Q2 2011 (297.1)

YTD 2012 139.0

YTD 2011 (168.8)

Average number of shares Average number of treasury shares

25,500,000 (1,954,363)

25,500,000 (1,940,083)

25,500,000 (1,977,319)

25,500,000 (1,787,253)

Average number of outstanding shares

23,545,637

23,559,917

23,522,681

23,712,747

24,541

78,983

24,202

78,983

23,570,178

23,638,900

23,546,883

23,791,730

Average dilutive effect of outstanding share options Diluted average number of outstanding shares Earnings in Danish kroner per share of DKK 10 Diluted earnings in Danish kroner per share of DKK 10

2.61 2.61

(12.61) (12.57)

5.91 5.90

(7.12) (7.09)

NOTE 4 - Securities AT JUN. 30, 2012 Financial investments Shares in Vestas (non-current securities) Shares in Lerøy (current securities) Financial investments in total Other securities Securities in total

AT DEC. 31, 2011

AT JUN. 30, 2011

AT DEC. 31, 2010

129.7 104.6 234.3 22.7

248.0 80.5 328.5 27.1

478.0 121.6 599.6 28.9

704.4 189.3 893.7 33.2

257.0

355.6

628.5

926.9

347.3 0.8 0.1 (5.0) 343.2 (72.6) (0.1) 0.0 (118.4) (191.1)

353.2 0.0 5.5 (11.4) 347.3 383.7 0.1 0.3 (456.7) (72.6)

353.2 (0.6) 2.6 (6.3) 348.9 383.7 0.0 0.0 (226.6) 157.1

353.9 1.8 2.0 (4.5) 353.2 940.4 (0.1) 0.0 (556.6) 383.7

Carrying amount of non-current assets at end period

152.1

274.7

506.0

736.9

Current assets Cost at January 1 Foreign exchange adjustment Additions Cost at end period Adjustments at January 1 Foreign exchange adjustment Dividend Adjustments recognised in the income statement for the period Adjustments at end period

160.7 4.5 0.0 165.2 (79.8) (1.9) (6.9) 28.3 (60.3)

159.8 0.9 0.0 160.7 30.2 (0.1) (9.6) (100.3) (79.8)

159.8 5.4 0.0 165.2 30.2 (4.6) (9.6) (58.7) (42.7)

6.5 5.2 148.1 159.8 (5.8) 0.0 0.0 36.0 30.2

Carrying amount of current assets at end period

104.9

80.9

122.5

190.0

Carrying amount at end period

257.0

355.6

628.5

926.9

Securities measured at fair value: Non-current assets Cost at January 1 Foreign exchange adjustment Additions Disposals Cost at end period Adjustments at January 1 Foreign exchange adjustment Disposals on divestment Adjustments recognised in the income statement for the period Adjustments at end period

At june 30, 2012, the company held 4,000,000 shares in Vestas recognised at a price of DKK 32.42 per share. At DKK 129.7 million, the fair value of the holding corresponded to the market price at june 30, 2012. The original acquisition cost of the shares in Vestas is DKK 313.4 million. At june 30, 2012, the company held 1,000,000 shares in Lerøy recognised at a price of NOK 106.00 per share (DKK 104.60 per share). At DKK 104.6 million, the fair value of the holding corresponded to the market price at june 30, 2012. 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 2011 financial year.

Notes Amounts in DKK million

NOTE 5 - Receivables Trade receivables At June 30, 2012 Trade receivables not considered to be impaired Trade receivables individually assessed to be impaired Trade receivables in total Impairment losses on trade receivables Trade receivables net Proportion of the total receivables which is expected to be settled Impairment percentage

Not due 2,223.7 21.6 2,245.3 (0.7) 2,244.6

1-30 days 217.8 11.9 229.7 (3.8) 225.9

Due between 31-90 days 68.6 8.2 76.8 (2.8) 74.0

>91 days 57.5 217.4 274.9 (224.5) 50.4

Total 2,567.6 259.1 2,826.7 (231.8) 2,594.9

0.0%

1.7%

3.6%

81.7%

91.8% 8.2%

Reconciliation to the balance Trade receivables - net Other receivables - current Accruals and deferred income Total current receivables

2,594.9 180.6 22.1 2,797.6

At June 30, 2011 Trade receivables not considered to be impaired Trade receivables individually assessed to be impaired Trade receivables in total Impairment losses on trade receivables Trade receivables net Proportion of the total receivables which is expected to be settled Impairment percentage

Not due 1,660.6 0.5 1,661.1 (0.1) 1,661.0

1-30 days 160.1 22.6 182.7 (12.4) 170.3

Due between 31-90 days 40.4 13.1 53.5 (10.1) 43.4

>91 days 58.7 228.7 287.4 (207.7) 79.7

Total 1,919.8 264.9 2,184.7 (230.3) 1,954.4

0.0%

6.8%

18.9%

72.3%

89.5% 10.5%

Reconciliation to the balance Trade receivables - net Other receivables - current Accruals and deferred income Total current receivables

1,954.4 180.7 21.7 2,156.8

NOTE 6 - Share capital At June 30, 2012, the share capital consisted of 25,500,000 shares with a nominal value of DKK 10 each. All shares rank equally. Number of shares

Treasury shares

Nominal value

Cost

Percentage of share capital

January 1, 2011

1,623,275

16,232,750

184.3

6.37%

Movements in H1 2011 Bought Share option programme Group employee share scheme June 30, 2011

536,750 (98,000) (18,552) 2,043,473

5,367,500 (980,000) (185,520) 20,434,730

76.2 (9.2) (1.7) 249.6

2.10% -0.38% -0.07% 8.02%

Movements in H2 2011 Group employee share scheme December 31, 2011

(35,110) 2,008,363

(351,100) 20,083,630

(3.4) 246.2

-0.14% 7.88%

Movements in H1 2012 Share option programme June 30, 2012

(54,000) 1,954,363

(540,000) 19,543,630

(5.4) 240.8

-0.22% 7.66%

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 april 1, 2017.

Notes Amounts in DKK million

NOTE 7 - Interest-bearing debt At the end of the first half of 2012 and 2011 the Group's debt divided by currency was as shown below: June 30, 2012 CZK 6%

NOK 15%

June 30, 2011

USD 2% Other 2%

CZK 7%

Other 3%

NOK 14% DKK 29%

DKK 30% MYR 5%

PLN 4%

MYR 5%

PLN 3% EUR 38%

EUR 37%

The average effective rate of interest was 3.1% at June 30, 2012 (June 30, 2011: 3.4%).

NOTE 8 - 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 at June 30, 2012 a receivable of DKK 11.4 million from Incuba A/S. At the same time last year the Group had a total receivable of DKK 11.5 million. The Group has received management fee of DKK 30 thousand (2011: DKK 49 thousand) and received interests of DKK 456 thousand (2011: DKK 412 thousand) from Incuba A/S. Other than that there were no other related party transactions.