Interim report – First quarter of 2012 - Schouw & Co.

Company announcement No. 6/2012, May 3, 2012

28 pages

Interim report – First quarter of 2012

Highlights The Schouw & Co. Group got off to a very good start to the year in the first quarter of 2012. Revenue improved by 33% to DKK 2,919 million, driven by improvements in all of our businesses. EBIT was up by DKK 115 million to a profit of DKK 147 million. Value adjustment of financial investments represented an expense of DKK 12 million. The profit before tax amounted to DKK 108 million. Schouw & Co. raises the full-year EBIT forecast to the range of DKK 720-800 million from the previous forecast

of DKK 660-740 million. Schouw & Co. will be holding a telephone conference (in Danish) for analysts, members of the press a.o. on telephone +45 3271 4767, on

T H U R S D A Y , M A Y 3 , 2 0 1 2 A T 1 5 . 3 0

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

This is a translation of Schouw & Co.’s Interim Report for the three months ended March 31, 2012. The original Danish text shall be controlling for all purposes, and in case of discrepancy, the Danish wording shall be applicable.

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

Aktieselskabet Schouw & Co.

Chr. Filtenborgs Plads 1 DK-8000 Aarhus C

CVR no.: 63965812

Tel. +45 86 11 22 22 www.schouw.dk

[email protected]

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Consolidated financial highlights Amounts in DKK million January 1 –March 31

GROUP SUMMARYYTD 2012 YTD 2011 2011 TOTAL

Revenue 2,918.7 2,187.4 11,929.0

Operating profit before depriciation (EBITDA) 256.3 127.7 1,049.3

EBIT before goodwill impairment 146.6 31.5 653.1

Operating profit (EBIT) 146.6 31.5 646.3

Profit/(loss) after tax in associates (1.3) (11.3) (26.0)

Profit from divestments 0.0 0.0 1.9

Value adjustment of financial investments** (12.0) 181.3 (556.2)

Net financials before value adjustment of financial investments (25.7) (17.4) (107.2)

Profit before tax 107.6 184.1 (41.2)

Tax on profit (29.3) (56.0) (30.8)

Profit for the period 78.3 128.1 (72.0)

Share of equity attributable to shareholders of Schouw & Co. 4,268.7 4,449.0 4,196.1

Minority interests 34.8 2.7 33.9

Total equity 4,303.5 4,451.7 4,230.0

Total assets 9,931.0 9,075.1 9,900.5

Net interest-bearing debt (NIBD) 2,800.7 2,566.4 2,744.6

Working capital 2,320.8 1,890.2 2,146.8

Other financial data

Average number of employees 3,360 3,166 3,287

Cash flows from operating activities 40.2 (194.8) 418.8

Investments in property, plant and equipment 66.9 199.1 564.4

Depreciation of property, plant and equipment 95.3 79.7 324.6

Return on equity (%) * (2.8) 3.3 (1.7)

ROIC (%) * 15.5 11.1 13.8

Equity ratio (%) 43.3 49.1 42.7

EBITDA margin (%) 8.8 5.8 8.8

EBIT margin (%) 5.0 1.4 5.4

NIBD/EBITDA * 2.4 3.1 2.6

Per share data

Earnings per share (of DKK 10) 3.30 5.37 (3.07)

Net asset value per share (of DKK 10) 181.30 186.23 178.62

Share price at end of period (of DKK 10) 122.00 146.50 92.50

Price/net asset value 0.67 0.79 0.52

Market capitalisation 2,872.6 3,499.8 2,173.0

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.

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Interim report – First quarter of 2012 Financial performance

Overall, the Schouw & Co. businesses were off to a very good start to 2012. Consolidated revenue was up by 33% from DKK 2,187 million in Q1 2011 to DKK 2,919 million in Q1 2012. The revenue improvement was provided especially by BioMar's strong improvements in Norway and Chile and by Fibertex Nonwovens, whose 2011 acquisition of its French subsidiary was fully recognised in the Q1 2012 financial statements. The Group's other wholly owned businesses also contributed to the improvements. Xergi, the pro rata consolidated joint venture, reported Q1 revenue and earnings in line with last year. EBIT improved by DKK 115 million from DKK 32 million in Q1 2011 to DKK 147 million in Q1 2012. The main contrib-utors to the improvement were BioMar as well as Martin and Fibertex Nonwovens. The latter two both turned last year's Q1 loss into a profit this year. In addition, Fibertex Personal Care, Hydra-Grene and Grene also contributed to the improvements. The reported EBIT improved by more than we had ex-pected in what was overall a highly satisfactory perfor-mance that supports our expectations for positive profit developments in 2012. The Group's result from associates, which is stated after tax, improved from a DKK 11 million loss in Q1 2011 to a DKK 1 million loss in Q1 2012. The Q1 2012 profit before tax was affected by a negative value adjustment on financial investments of DKK 12 mil-lion, as compared with a positive value adjustment of DKK 181 million in Q1 2011. The group's other financial items increased to an expense of DKK 26 million in Q1 2012, due to a higher average net interest-bearing debt and moder-ate exchange rate adjustments, from DKK 17 million in Q1

2011 when net financials were lifted by a DKK 4 million profit from the sale of securities in BioMar. Accordingly, our consolidated profit before tax for Q1 2012 was DKK 108 million, compared with a DKK 184 million profit in Q1 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 tie-up and net interest-bearing debt. During 2010, after a period of relative caution, some of the Group's businesses again began to pursue a more expan-sive strategy. That made it necessary in several instances throughout 2011 to step up investments and increase the working capital tie-up, even though generally improving profitability continues to take priority over revenue growth. Operating activities resulted in a cash inflow of DKK 40 million in Q1 2012, compared with an outflow of DKK 195 million in Q1 2011. Cash flows for investing activities in Q1 2012 amounted to DKK 78 million, against DKK 197 million in Q1 2011. The consolidated net interest-bearing debt amounted to DKK 2,801 million at March 31, 2012, as compared with DKK 2,566 million at March 31, 2011. Events causing changes to the new interest-bearing debt in the intermit-tent period included the acquisition of Fibertex Nonwovens' French subsidiary in May 2011, dividend payments of DKK 71 million to the shareholders of Schouw & Co. and treasury share purchases totalling DKK 66 mil-lion. Of the consolidated net interest-bearing debt at March 31, 2012, the parent company’s share amounted to a DKK 256 million receivable. The Group’s working capital tie-up increased from DKK 1,890 million at March 31, 2011 to DKK 2,321 million at March 31, 2012. The main reason for the larger working capital tie-up was the higher level of activity by BioMar and the acquisition of Fibertex Nonwovens' French subsid-iary.

YTD 2012 YTD 2011 ChangeRevenue 2,918.7 2,187.4 731.3 EBITDA 256.3 127.7 128.6 EBIT 146.6 31.5 115.1 Value adj. fin. investment (12.0) 181.3 (193.3)Profit before tax 107.6 184.1 (76.5)

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Financial investments Schouw & Co. holds 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 12 million to the consolidated financial items in Q1 2012. In Q1 2011, the effect was positive at DKK 181 million.

* DKK 1.9 million of this change has been recognised directly

in 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 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 31.9% during the first quarter of 2012, from DKK 92.50 per share at December 31, 2011 to DKK 122.00 per share at March 31, 2012. Treasury shares At the end of 2011, the company held 2,008,363 treasury shares, equal to 7.88% of the share capital. During the first quarter of 2012, Schouw & Co. applied 54,000 of its treasury shares in the Group’s share incentive scheme. Accordingly, the company held 1,954,363 treasury shares at March 31, 2012, equal to 7.66% of the share capital. The portfolio of treasury shares is recognised at DKK 0. 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 March 31, 2012, which are expected to have a material impact on the Group's financial position or outlook.

Outlook Overall, the companies of the Schouw & Co. Group per-formed well during the first quarter of 2012, reporting very good financial results relative to previous years. The first quarter is normally a low season for Schouw & Co., as most of the Group's businesses have abundant spare capacity and above-normal activity during this peri-od can have a very good effect on earnings. However, the full-year results will depend strongly on the results of the second half of the year and especially of the third quarter. Our businesses generally have high capacity utilisation during this part of the year and can only to a limited extent step up their business activity levels. While we are fully aware that a successful full-year per-formance requires that many different factors interact during the upcoming high season, the good performance of the first quarter of 2012 has nevertheless made us raise our FY 2012 profit guidance. The upgraded guidance is based mainly on BioMar and secondarily on Fibertex Non-wovens, Grene, Hydra-Grene and Martin. The profit guidance for other businesses includes Xergi, which continues to expect to improve both revenue and earnings in 2012. Overall, therefore, the Schouw & Co. Group now projects full-year 2012 consolidated revenue of just over DKK 13 billion against the previous forecast of approximately DKK 12.5–13.0 billion. The revenue may change quite substan-tially due to changes in raw materials prices, without nec-essarily having any notable effect on profit. The FY 2012 EBIT is upgraded to the range of DKK 720–800 million from the previous forecast of DKK 660–740 million, which is a further step up from the substantial EBIT im-provement to DKK 646 million in 2011 from DKK 369 mil-lion in 2010. Forecast

* Before the effects of financial investments.

VESTASAt Mar. 31,

2012At Dec. 31,

2011Change

Number of shares held 4,000,000 4,000,000 0Price (DKK) 56.60 62.00 (5.40)Market va lue (DKKm) 226.4 248.0 (21.6)

LERØYAt Mar. 31,

2012At Dec. 31,

2011Change

Number of shares held 1,000,000 1,000,000 0Price (NOK) 94.00 84.00 10.00Exchange rate DKK/NOK 97.84 95.88 1.96Market va lue (DKKm) * 92.0 80.5 11.4

EBIT (DKK mi l l ion) After Q1 OriginalBioMar 400-420 360-380Fibertex Personal Care 145-155 145-155Fibertex Nonwovens 20-30 15-25Grene 85-95 80-90Hydra-Grene 65-75 60-70Martin 25-35 20-30Others (10-20) (10-20)Tota l EBIT 720-800 660-740Associates (10) (10)Financia ls* (120) (120)Profi t before tax* 590-670 530-610

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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 the Annual Report 2011. Effective from January 1, 2012, Schouw & Co. implement-ed amendments to IFRS 7 and IAS 12. The implementation did not affect recognition or measurement. Reference is made to Annual Report 2011, 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 as-sets, liabilities, income and expenses. The actual results may differ from these judgments. The most significant estimates are unchanged from De-cember 31, 2011, and the most significant judgment un-certainty related thereto is the same as that used in pre-paring the Annual Report 2011. Roundings and presentation The amounts appearing in this interim report have gener-ally been rounded to one decimal place using standard rounding principles. Accordingly, some additions may not add up.

Financial calendar for 2012 August 16, 2012 Release of H1 2012 interim report November 8, 2012 Release of Q3 2012 interim report

The company will provide detailed information about contacts and times for webcast and teleconferences held in connection with the announcement of its interim reports on its website, www.schouw.dk, and through stock ex-change announcements.

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BioMar Wholly owned 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 Scotland), the Americas (Chile) and Continen-tal Europe. Financial performance Although the first quarter is a low season for BioMar, the company got off to a good start to the year, generating a 42% revenue increase from DKK 1,134 million in Q1 2011 to DKK 1,615 million in Q1 2012 on a similar increase in volumes. The strong improvement was mainly due to two factors. First of all, high water temperatures generally very good climatic conditions in northern Europe during the first quarter, whereas the situation was quite the opposite in 2011. Secondly, the underlying growth in Norway and Chile has continued in 2012. Combined, these two factors have produced unusual first quarter market growth in Norway and sustained strong growth in Chile. In Scotland, the market contracted slightly, while Continental Europe was fairly stable overall. EBIT improved from a DKK 7 million loss in Q1 2011 to a DKK 52 million profit in Q1 2012, with all three regions reporting improvements, particularly Chile. The strong improvement was driven mainly by larger volumes. The Group’s working capital tie-up increased from DKK 570 million at March 31, 2011 to DKK 764 million at March 31, 2012. The increase was due to the higher sales, as working capital as a percentage of revenue was largely unchanged. Adjusted for the payment of intra-group dividends total-ling DKK 400 million in the second quarter of 2011 and the first quarter of 2012, net interest-bearing debt actually fell by DKK 98 million; net interest-bearing debt amounted to DKK 804 million at March 31, 2012, compared with DKK 502 million at March 31, 2011. Business development In both Norway and Chile, 2012 is expected to be an atypi-cal year in terms of overall market growth. Both markets reported very strong growth in the first quarter, but the performance is expected to weaken as the year progress-es, and current estimations for Norway indicate the possi-bility of a downturn in the fourth quarter. BioMar has come very close to full capacity utilisation in Chile, and there are strong indications that capacity ex-pansion will become feasible very soon. Norway still has sufficient capacity following the large extension in 2011, and the rest of the BioMar organisation still has sufficient capacity at the moment. Growth in the feed market is a direct reflection of corre-sponding growth in the salmon market, meaning that it is not unequivocally positive. The good news is that salmon prices have been stable and slightly increasing despite a

very strong increase in salmon supply in the first quarter, indicating healthy underlying demand. However, if produc-tion volumes continue to increase over the coming months, salmon prices could come under further pressure. This could have financial consequences for salmon farmers and mean a greater risk to BioMar of incurring losses on trade receivables. The markets of Continental Europe are expected to be relatively stable. Sea bass and sea bream continue to fetch good prices, mainly due to the moderate supply. Prices on single-portion trout have risen slightly, while prices on large trout are affected by the low salmon prices. So far, BioMar has not been affected to any significant extent by the economic turmoil in southern Europe, but uncertainty has escalated. Customers are reporting, espe-cially those in Greece and Spain, that the banks have fur-ther tightened their business terms, which could ultimate-ly impact BioMar even though the company is taking a number of precautions to mitigate the risk. The work to set up production in Costa Rica is progressing to plan. The facility is expected to run its first test produc-tions within the next couple of weeks, and operations at normal capacity are expected to begin in Q3 of 2012. At the end of March, the world's largest salmon producer, Marine Harvest, announced that it is considering establish-ing salmon feed production in Norway. We believe that should the company decide to go ahead with the plans, it may begin in-house production in 2014 or later. A new feed facility in Norway would presumably impact BioMar's sales potential, but the expected time horizon leaves enough time to adjust current plans and to mitigate the negative effects of the new competition. Outlook The basic assumptions for the guidance for 2012 an-nounced at the release of the full-year interim report by and large still apply. However, the strong start to the year has made BioMar increase its revenue forecast from ap-proximately DKK 7.5 billion to approximately DKK 8 billion, and EBIT is now expected to be in the DKK 400-420 million range instead of the previous forecast range of DKK 360-380 million. As always, the revenue guidance depends strongly on how prices of raw materials develop, and the earnings forecast is subject to uncertainty given the early stage of the year.

DKK millionYTD

2012YTD

20112011 total

Volume (1000 t) 195 139 889 Revenue 1,615 1,134 7,269 - of which North Sea 694 495 3,734 - of which Americas 683 401 1,880 - of which Continental Europe 238 238 1,655 Direct production costs (1,272) (894) (5,774) Gross profit 343 240 1,495

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BioMar Amounts in DKK million January 1 –March 31

YTD 2012 YTD 2011 2011 total

INCOME STATEMENT

Revenue 1,614.9 1,134.0 7,268.8

Gross profi t 198.3 114.4 925.1

EBITDA 89.3 22.8 486.9

Depreciation 37.5 29.9 125.3

Operating profit (EBIT) 51.8 (7.1) 361.6

Value adjustment of shares in Lerøy 9.6 (27.1) (99.8)

Financia l i tems, net (12.8) (3.1) (36.8)

Profit before tax 48.6 (37.3) 225.0

Tax on profi t (8.1) 2.7 (83.4)Profit for the period 40.5 (34.6) 141.6

CASH FLOW

Cash flows from operating activi ties (85.6) (206.8) 133.4

Cash flows from investing activi ties (16.3) (55.9) (200.0)

Cash flows from financing activi ties 76.5 205.4 109.5

BALANCE SHEET

Intangible assets * 325.7 319.1 335.5

Property, plant and equipment 1,068.1 988.8 1,076.3

Other non-current assets 57.8 70.8 59.8

Cash and cash equiva lents 414.4 336.4 439.8

Other current assets 2,065.1 1,653.1 2,149.3Total assets 3,931.1 3,368.2 4,060.7

Equity 1,436.6 1,553.9 1,568.7

Interest-bearing debt 1,218.6 838.1 992.2

Other credi tors 1,275.9 976.2 1,499.8Total liabilities and equity 3,931.1 3,368.2 4,060.7

Average number of employees 809 729 761

FINANCIAL KEY FIGURES

EBITDA margin 5.5% 2.0% 6.7%

EBIT margin 3.2% -0.6% 5.0%

ROIC (annual i sed) 24.6% 17.9% 22.1%

Working capi ta l 764.5 570.4 640.1

Net interest-bearing debt 804.2 501.7 552.3

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

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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, used mainly for nappies, sanitary towels and incontinence products. Financial performance Fibertex Personal Care lifted revenue by 13% from DKK 313 million in Q1 2011 to DKK 355 million in Q1 2012. The improvement was driven by an increase in sales resulting from an increase in production capacity in Malaysia. EBIT improved from DKK 26 million in Q1 2011 to DKK 37 million in Q1 2012. The advance was especially due to the fact that the relationship between prices of raw materials and quarterly selling price adjustments was more favoura-ble in Q1 2012 than it was in Q1 2011. Fibertex Personal Care increased its working capital tie-up from DKK 228 million at March 31, 2011 to DKK 256 million at March 31, 2012, due to greater business activity. Adjusted for the payment of intra-group dividends of DKK 100 million in the first quarter of 2012, net interest-bearing debt actually fell by DKK 36 million; net interest-bearing debt amounted to DKK 619 million at March 31, 2012, compared with DKK 555 million at March 31, 2011. 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 flexi-bility in their sourcing of nonwovens, allowing them to respond to market fluctuations. The market is generally very demanding in terms of products and product perfor-mance, and product quality is a huge priority. After the new production line in Malaysia was successfully installed in September 2011, the products manufactured on the line have been tested and approved by the relevant customers. In April 2012, Fibertex Personal Care announced plans for a further extension of the facility in Malaysia, which will

increase capacity by about 30% in 2014. This extension can help Fibertex Personal Care share in the expected growth in the Asian market. The central location in Malaysia gives the facility a solid platform for making competitive ship-ments to all of south-east Asia. Procter & Gamble recently named Fibertex Personal Care an environmental sustainability supplier for its improving key environmental indicators. Procter & Gamble has intro-duced an environmental stability scorecard, and Fibertex is one of only 17 suppliers to score top marks, making the company one of Procter & Gamble's most environmentally conscious suppliers. Increasing the share of specialty products is a big 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. Outlook Fibertex Personal Care sees Europe as a market with lim-ited growth opportunities and resulting strong price pres-sure. Asia is a growing market where price competition is also a factor, but where increasing demand absorbs the surging supply in the region. The company also expects to sell the full capacity at the new production line in Malaysia by the end of 2012. Fibertex Personal Care maintains its FY 2012 revenue guid-ance of DKK 1.5–1.6 billion. EBIT will inherently depend on how prices of raw materials develop during the rest of the year. Given the current prospects that the raw materials prices to quarterly selling price adjustments relationship will not be as attractive over the coming months as it was in the first quarter of 2012, the company retains its EBIT guidance in the DKK 145–155 million range.

DKK millionYTD

2012YTD

20112011 total

Revenue 355 313 1,314 - of which Denmark 197 195 796 - of which Malaysia 158 118 518

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Fibertex Personal Care Amounts in DKK million January 1 –March 31

YTD 2012 YTD 2011 2011 total

INCOME STATEMENT

Revenue 354.6 313.3 1,313.7

Gross profi t 60.2 50.1 238.1

EBITDA 66.5 52.8 242.8




Profit before tax 31.5 22.3 139.9

Tax on profi t (12.2) (4.9) (36.3)Profit for the period 19.3 17.4 103.6

CASH FLOW

Cash flows from operating activi ties 76.5 37.6 148.7


Cash flows from financing activi ties (34.4) 82.6 107.3

BALANCE SHEET


Property, plant and equipment 924.7 839.3 944.2



Other current assets 424.2 378.7 443.5Total assets 1,544.1 1,355.0 1,554.9

Equity 555.5 529.8 633.5

Interest-bearing debt 663.7 574.4 599.1

Other credi tors 324.9 250.8 322.3Total liabilities and equity 1,544.1 1,355.0 1,554.9



EBITDA margin 18.8% 16.9% 18.5%

EBIT margin 10.3% 8.2% 11.3%

ROIC (annual i sed) 14.4% 16.0% 13.7%




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Fibertex Nonwovens Wholly owned Fibertex is among Europe's leading manufacturers of nonwovens, i.e. non-woven textiles used for a number of different industrial purposes. Effective in May 2011, Fibertex Nonwovens acquired a majority interest in French nonwovens manufacturer Thar-reau Industries, which is recognised in Fibertex Nonwovens' financial statements as from the date of ac-quisition. Effective January 1, 2012, the French company changed its name to Fibertex Nonwovens S.A. Financial performance Fibertex Nonwovens generated revenue of DKK 249 million in Q1 2012, compared with DKK 120 million in Q1 2011. The improvement was attributable to greater business activity and higher selling prices, but first and foremost to the acquisition of the French business, which generated Q1 2012 revenue of DKK 114 million. Q1 2012 EBIT was DKK 13 million as compared with a DKK 3 million loss in Q1 2011. The improvement was due both to an EBIT improvement in the original Fibertex Nonwovens and to the acquisition of the French business. The working capital tie-up and the net interest-bearing debt increased at March 31, 2012 relative to March 31, 2011, due to the increase in business activity and the ac-quisition of the French business. Business development The Q1 2012 improvement was driven by a positive sales performance in virtually all business areas, the highlights being an increase in earnings on big volume contracts and increased sales of high-value products as well as high out-put capacity. In addition, Fibertex Nonwovens is reaping the benefits of the structural investments made in recent years, which have reduced the company's general cost base and en-hanced its competitive strength. Fibertex Nonwovens has thoroughly modernised and ex-panded its production platforms, launching new and im-proved products. Most recently, a large production line was installed at the factory in the Czech Republic, increas-

ing its capacity for high-value products to the auto indus-try, for example. Fibertex Nonwovens has worked to align its operations to the market situation, preparing to capitalise on the poten-tial of the growing product segments and geographical growth markets. Following the acquisition of the French business, which manufactures specialist products for the automotive in-dustry 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. As regards raw materials, the first quarter was a period of high prices, and Fibertex Nonwovens is working to gradual-ly align selling prices with developments in the prices of raw materials and the general competitive situation. Outlook Fibertex Nonwovens expects to continue the good busi-ness activity in the months ahead. Demand has stabilised in most industrial markets, but the market remains jittery, and rising prices of raw materials will produce an earnings challenge. If the positive market developments of the first quarter can be sustained as the year progresses, Fibertex Nonwovens expects to generate FY 2012 revenue of just over the DKK 900 million that was originally forecast. EBIT is expected to improve by a similar margin, i.e. to a range of DKK 20-30 million from the previous forecast of DKK 15-25 million.

DKK millionYTD

2012YTD

20112011 total

Revenue 249 120 726 - of which Denmark 70 62 226 - of which Czech Republic 65 58 240 - of which France 114 - 260

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Fibertex Nonwovens Amounts in DKK million January 1 –March 31

YTD 2012 YTD 2011 2011 total

INCOME STATEMENT

Revenue 248.7 119.7 726.5

Gross profi t 52.7 18.8 122.2

EBITDA 29.0 6.7 45.6


Operating profit (EBIT) 12.8 (2.8) (7.1)

Profi t from associates (1.2) (1.7) (5.9)


Profit before tax 7.8 (6.8) (26.2)

Tax on profi t (2.6) 1.4 7.3Profit for the period 5.2 (5.4) (18.9)

CASH FLOW

Cash flows from operating activi ties (6.1) 1.4 12.4


Cash flows from financing activi ties 21.9 2.3 285.3

BALANCE SHEET





Other current assets 422.2 232.5 388.7Total assets 1,101.5 654.3 1,057.9

Equity 368.1 256.5 355.9


Other credi tors 147.6 79.1 146.3Total liabilities and equity 1,101.5 654.3 1,057.9




EBIT margin 5.1% -2.3% -1.0%

ROIC (annual i sed) 1.3% neg. neg.




12

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. Financial performance Grene lifted revenue by 7% from DKK 307 million in Q1 2011 to DKK 329 million in Q1 2012. The revenue im-provement was broadly founded in all Grene's countries of operation. EBIT improved from DKK 15 million in Q1 2011 to DKK 17 million in Q1 2012. In addition to the inherent effect of the revenue improvements, earnings were lifted by a good performance in Grene Denmark. The overall working capital tie-up increased from DKK 411 million at March 31, 2011 to DKK 424 million at March 31, 2012, mainly due to stock building. Inventory alignment is expected over the course of the year. The company's net interest-bearing debt fell marginally from DKK 479 million at March 31, 2011 to DKK 473 million at March 31, 2012. Business development Grene generally got off to a good start to the year in the Agro business, even though sales of certain winter pro-ducts were slightly below normal for natural reasons. Grene Denmark reported a particularly positive perfor-mance, and the other Grene businesses performed in line with expectations with the exception of Grene Sweden as that organisation was under strain from a major physical expansion project and the running-in of a new ERP system. In Poland, Grene demerged the organisation into two units effective January 1, 2012. One now runs the wholesale operations, mirroring the Grene operations in other coun-tries, while the other operates Grene's 90 retail outlets spread throughout Poland. The de-merger of the Polish operations into a wholesaler and a retailer has been a success, and indications are that the move will generate the expected dynamics and added focus on the two distinct business activities. In Russia, where the activities are run in cooperation with Dutch Kramp Groep, the positive revenue trend continued, although the activities have not yet contributed positively to results. In Sweden, the extension of the company's warehouse facility is coming to an end. The actual expansion of the facilities has progressed to plan, but there were a few delays in the work to install the automation equipment

during the final phase. Grene's next warehouse expansion project is now underway in Denmark, and plans are also being made to extend the facilities in Poland. The Swedish business was the first to install Grene's new ERP system. The implementation of the system in Sweden has been a useful experience for Grene, allowing the com-pany to make some appropriate changes before the sys-tem is implemented in other Grene businesses; next up will be Grene Norway and, later this year, Grene Denmark. Implementing a new ERP system is always a strain on a company's resources, but the gradual implementation process is expected to keep the inconvenience to a mini-mum. The positive developments in the industry activities, which are mainly conducted in Denmark, continued and Q1 rev-enue was in line with last year. Outlook The European market is undergoing change at the mo-ment, with international players consolidating their opera-tions and new partnerships being formed. Grene monitors the situation carefully and is preparing to meet the inter-national competition in existing markets and to pursue new business opportunities available in eastern and cen-tral Europe. In the Agro business, general market expectations are positive for the coming months, while the outlook for the second half of the year is more uncertain. Price competi-tion is attracting special attention, as it may impact the full-year performance. Generally stable activity is expected in the industry business for the rest of the year. Encouraged by the good start to the year, Grene upgrades its FY 2012 revenue forecast slightly to approximately DKK 1.4 billion from the previous guidance of up to DKK 1.4 billion. Grene raises the full-year EBIT forecast to the range of DKK 85-95 million from the previous forecast of DKK 80-90 million.

DKK millionYTD

2012YTD

20112011 total

Revenue 329 307 1,307 - of which Industry 66 65 254 - of which Agro 263 242 1,053 - in Denmark 77 72 290 - in Poland 115 108 460 - in Sweden 37 36 158 - in Norway 19 16 80 - in Finland 6 6 34 - other Agro 9 4 31

13

Grene Amounts in DKK million January 1 –March 31

YTD 2012 YTD 2011 2011 total

INCOME STATEMENT

Revenue 328.8 307.2 1,307.1

Gross profi t 106.4 98.2 442.6

EBITDA 25.0 22.5 118.8


Impairment 0.0 0.0 2.0


Financia l i tems, net 1.2 (4.1) (23.8)



CASH FLOW

Cash flows from operating activi ties (5.8) (26.9) 48.4


Cash flows from financing activi ties 30.8 36.7 (8.5)

BALANCE SHEET

Intangible assets 44.4 31.7 43.2




Other current assets 685.6 588.2 574.8Total assets 1,070.3 959.0 931.0

Equity 305.0 265.1 285.3


Other credi tors 257.3 198.5 168.5Total liabilities and equity 1,070.3 959.0 931.0




EBIT margin 5.3% 4.9% 6.6%

ROIC (annual i sed) 12.7% 9.1% 12.5%



14

Hydra-Grene Wholly owned Hydra-Grene is a specialised trading and engineering com-pany whose core business is trading and producing hy-draulic components and systems development for industry as well as providing related consulting services. Financial performance Hydra-Grene lifted revenue by 45% from DKK 106 million in Q1 2011 to DKK 153 million in Q1 2012. The improve-ment was attributable to generally stronger demand from the wind turbine industry as well as other industry cus-tomers relative to the first quarter of 2011. EBIT improved from DKK 15 million in Q1 2011 to DKK 24 million in Q1 2012. The improvement was a direct effect of the revenue improvement. The overall working capital tie-up increased from DKK 169 million at March 31, 2011 to DKK 221 million at March 31, 2012, due to the increase in business activity and neces-sary stock building. After payment of intra-group dividends of DKK 50 million in the first quarter of 2012, net interest-bearing debt in-creased to DKK 177 million at March 31, 2012 from DKK 124 million at March 31, 2011. Business development Hydra-Grene is off to a really good start to 2012, reporting improved sales to both the wind turbine industry and to other industry customers. Some of the development projects for the wind turbine industry that Hydra-Grene has been involved in over the past couple of years are now in operation and lifting the company's sales. Hydra-Grene is expanding its output capacity in order to accommodate growing demand. Sales to China's wind turbine industry are generally per-forming as expected, in spite of the generally subdued demand in China. Hydra-Grene's operations in China re-cently received ISO9000 accreditation. Sales to India's wind turbine industry are also performing as expected, and Hydra-Grene India recently moved to

new premises where it has established small-scale produc-tion. Sales to the US market improved in the first quarter. 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 on the US market. Outlook From the start of the year, Hydra-Grene anticipated sub-stantial 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. The company also expects a high level of activity for other industry customers over the next few months, but there are indications of a minor slowdown in the slightly longer term. After-market sales are improving, and e-trading is becom-ing an increasingly important revenue driver. Sales to the wind turbine industry as well as to other in-dustry customers are marked by fierce price competition which, combined with the strongly fluctuating demand during the year, makes it difficult to optimise costs. In addition, Hydra-Grene will be implementing a new ERP system towards the end of 2012. While the process will lead to optimised business procedures and processes, it will clearly be a temporary strain on the company's re-sources. Encouraged by the high level of activity in the first quarter, Hydra-Grene upgrades its FY 2012 revenue forecast to just over DKK 500 million from the previous guidance of up to DKK 500 million. At the same time, the company raises its full-year EBIT forecast to the range of DKK 65-75 million from the previous forecast of DKK 60-70 million.

15

Hydra-Grene Amounts in DKK million January 1 –March 31

YTD 2012 YTD 2011 2011 total

INCOME STATEMENT

Revenue 153.3 105.5 465.5

Gross profi t 48.4 34.6 155.5

EBITDA 26.2 17.2 80.5



Profi t from associates 0.0 0.0 0.4




CASH FLOW

Cash flows from operating activi ties 8.9 14.3 29.8


Cash flows from financing activi ties 0.7 (4.1) (23.8)

BALANCE SHEET





Other current assets 298.5 213.2 279.3Total assets 423.6 343.8 397.5

Equity 152.7 147.0 186.3


Other credi tors 86.2 51.6 85.7Total liabilities and equity 423.6 343.8 397.5



EBITDA margin 17.1% 16.3% 17.3%

EBIT margin 15.3% 13.7% 14.9%

ROIC (annual i sed) 26.0% 23.5% 24.1%



16

Martin Wholly owned Martin is the world’s leading manufacturer of computer-controlled effect lighting, which is sold to the entertain-ment and experience industries in most parts of the world. Martin is also a significant manufacturer of smoke ma-chines. Financial performance Martin is off to a good start to 2012 revenue-wise, and the positive earnings margin trend reported in the second half of 2011 was maintained in Q1 2012. Martin reported an EBIT profit as well as a profit before tax in each of the first three months of 2012. Strong demand for the MAC Aura moving head launched last autumn produced better-than-expected sales during the early months of the year, and Martin reported a 9% revenue improvement from DKK 206 million in Q1 2011 to DKK 223 million in Q1 2012. By increasing volumes and maintaining the improved earn-ings power, Martin generated an EBIT profit for the third straight quarter. The performance consolidates the effects of adjustments implemented throughout the company and strengthens the expectations for the full-year results. EBIT improved from a loss of DKK 9 million in Q1 2011 to a profit of DKK 9 million in Q1 2012, the improvement mark-ing confirmation of the anticipated positive performance. Net interest-bearing debt fell from DKK 477 million at March 31, 2011 to DKK 466 million at March 31, 2012, due to the cash inflows from operations. Martin gives great priority to reducing the working capital tie-up, which amounted to DKK 353 million at March 31, 2012, com-pared with DKK 343 million at March 31, 2011. Business development The Q1 improvement was mainly attributable to sales of the MAC Aura. This product has helped Martin win addi-tional market share in LED products for the entertainment industry and overall, LED products accounted for about half of the company's Q1 2012 revenue. The general un-derlying market growth is estimated to be weaker than the reported revenue growth, and the market remains ex-

tremely competitive with prices the key parameter as a direct effect of slumping demand. The novelty of the MAC Aura is expected to fade during the second quarter, and Martin expects sales of the prod-uct to drop a bit relative to the Q1 performance. On the other hand, Martin recently launched the new MAC Viper, which was very well received in the market and which has already strengthened the company's order book. The MAC Viper will not ship until mid-year, however, so the product will not have a notable effect on Q2 2012 sales. The supply chain restructuring continues, as Martin en-deavours to lower its break-even point and the working capital tie-up. A number of production assignments were repatriated from China to the factory in Frederikshavn, Denmark, and by the end of the second quarter 2012 all production activity in China will be closed down. Martin is currently developing a new product management concept that it expects to implement in the second half of 2012. Finally, the global distribution centre in the Netherlands is expected to be relocated to Frederikshavn towards the end of the year. Despite the repatriation of production to Denmark and the revenue increase, the production staff at Frederikshavn was further reduced in the first quarter. The growing pro-portion of LED products has reduced the man-hour re-quirement, as the new technology involves substantially fewer manual assembly processes. The average number of employees was 517 during the first quarter of 2012, against 626 in Q1 2011 and 599 in the 2011 financial year. Outlook Martin continues to forecast FY 2012 revenue of approxi-mately DKK 875 million. The second quarter will be a chal-lenge revenue-wise, whereas new product launches are expected to be a positive factor in the second half of the year. At the beginning of the year, Martin forecast FY 2012 EBIT of DKK 20–30 million, but the positive performance of the first quarter has made the company raise the EBIT guidance to the DKK 25–35 million range.

17

Martin Amounts in DKK million January 1 –March 31

YTD 2012 YTD 2011 2011 total

INCOME STATEMENT

Revenue 223.4 205.6 854.8

Gross profi t 62.4 41.5 205.0

EBITDA 24.8 9.8 80.7


Impairment 0.0 0.0 5.3

Operating profit (EBIT) 9.4 (9.3) 2.0

Profi t from associates 0.0 1.2 0.4


Profit before tax 5.4 (9.1) (19.3)

Tax on profi t (2.6) 1.3 0.3Profit for the period 2.8 (7.8) (19.0)

CASH FLOW

Cash flows from operating activi ties 33.3 (26.0) (5.0)


Cash flows from financing activi ties (14.7) 32.4 46.2

BALANCE SHEET





Other current assets 486.2 455.5 507.3Total assets 811.3 780.3 834.4

Equity 178.1 178.7 177.8


Other credi tors 152.4 120.0 161.1Total liabilities and equity 811.3 780.3 834.4




EBIT margin 4.2% -4.5% 0.2%

ROIC (annual i sed) 12.4% 0.0% 9.4%



18

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–March 31, 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 March 31, 2012 and of the results of the Group’s operations and cash flows for the period January 1–March 31, 2012. Furthermore, in our opinion, the Management’s report includes a fair review of the development and performance of the Group's activities, the financial results for the period and the financial position of the Group in general and describes the principal risks and uncertainties that it faces. Aarhus, May 3, 2012

EXECUTIVE MANAGEMENT Jens Bjerg Sørensen Peter Kjær President

BOARD OF DIRECTORS Jørn Ankær Thomsen Erling Eskildsen Niels K. Agner Erling Lindahl Chairman Deputy Chairman Kjeld Johannesen Jørgen Wisborg Agnete Raaschou-Nielsen

19

Income and comprehensive income statement Amounts in DKK million January 1 –March 31

Note YTD 2012 YTD 20112011

TOTAL

1 Revenue 2,918.7 2,187.4 11,929.0Cost of sa les (2,386.1) (1,825.6) (9,827.9)Gross profit 532.6 361.8 2,101.1

Other operating income 3.3 7.2 22.8Dis tribution costs (271.5) (227.4) (1,040.4)

2 Adminis trative expenses (117.5) (109.9) (427.5)Goodwi l l impairment 0.0 0.0 (6.8)Other operation expenses (0.3) (0.2) (2.9)Operating profit (EBIT) 146.6 31.5 646.3

Profi t from associates (1.3) (11.3) (26.0)Profi t from divestments 0.0 0.0 1.9Financia l income 21.8 223.9 40.7Financia l expenses (59.5) (60.0) (704.1)Profit before tax 107.6 184.1 (41.2)

Tax on profi t (29.3) (56.0) (30.8)Profit for the period 78.3 128.1 (72.0)

Attributable to:Shareholders of Schouw & Co. 77.5 128.3 (72.3)Minori ty interests 0.8 (0.2) 0.3Profit for the period 78.3 128.1 (72.0)

3 Earnings per share (DKK) 3.30 5.37 (3.07) 3 Di luted earnings per share (DKK) 3.29 5.36 (3.06)

Comprehensive incomeExchange rate adjustment of foreign subs idiaries etc. (7.3) (66.2) 9.4Value adjustment of hedging instruments transferred to cost of sa les (5.5) 10.6 10.6Value adjustment of hedging instruments transferred to financia ls 1.5 2.7 10.3Value adjustment of hedging instruments recognised during the period (0.2) (15.3) (19.2)Other comprehens ive income from associates 0.1 0.4 (1.0)Other adjustment on equity 0.0 0.0 (2.7)Tax on other comprehens ive income 1.2 0.5 (0.8)Other comprehensive income after tax (10.2) (67.3) 6.6

Profi t for the period 78.3 128.1 (72.0)Total recognised comprehensive income 68.1 60.8 (65.4)

Attributable to:Shareholders of Schouw & Co. 67.2 61.0 (64.5)Minori ty interests 0.9 (0.2) (0.9)Total recognised comprehensive income 68.1 60.8 (65.4)

20

Cash flow statement Amounts in DKK million January 1 –March 31

YTD 2012 YTD 20112011

TOTAL

Profi t before tax 107.6 184.1 (41.2)Adjustment for operating i tems of a non-cash nature, etc.Depreciation and impairment losses 109.7 96.2 403.0Other operating i tems, net (19.4) (16.3) 14.3Provis ions (1.3) 1.8 8.3Income from investments in associates after tax 1.3 11.3 26.0Financia l income (21.8) (223.9) (40.7)Financia l expenses 59.5 60.0 704.1Cash generated from operations (operating activities) before change in working capital 235.6 113.2 1,073.8

Changes in working capi ta l (166.5) (277.6) (428.3)Cash generated from operations (operating activities) 69.1 (164.4) 645.5

Interest income received 13.3 17.2 21.3Interest expenses pa id (38.4) (32.8) (136.0)Cash flows from ordinary activities 44.0 (180.0) 530.8

Income tax pa id (3.8) (14.8) (112.0)Cash flows from operating activities 40.2 (194.8) 418.8

Purchase of intangible assets (13.9) (3.8) (56.5)Purchase of property, plant and equipment (66.9) (199.1) (564.7)Sa le of property, plant and equipment 0.3 3.1 27.3Acquis i tion of enterprises 0.0 0.0 (207.2)Acquis i tion of minori ty interests in subs idiaries 0.0 0.0 (16.3)Acquis i tion of associates 0.0 0.0 (5.0)Divestment of subs idiaries 0.0 0.0 2.6Loan to associates (0.7) (3.1) (2.8)Purchase of securi ties (0.1) 0.0 (5.5)Sa le of securi ties 3.4 6.0 25.0Cash flows from investing activities (77.9) (196.9) (803.1)

Debt financing:Repayment of non-current l iabi l i ties (25.4) (17.9) (196.3)Proceeds from incurring non current financia l l iabi l i ties 6.5 33.7 280.7Increase (repayment) of bank overdrafts 84.6 336.4 527.5Shareholders :Additional minori ty shareholders , net 0.0 0.0 (0.2)Dividend pa id 0.0 (0.6) (71.4)Purchase / sa le of treasury shares , net 4.1 (4.7) (69.0)Cash flows from financing activities 69.8 346.9 471.3

Cash flows for the period 32.1 (44.8) 87.0Cash and cash equiva lents at January 1 541.3 451.6 451.6Value adjustment of cash and cash equiva lents 0.1 (0.4) 2.7

Cash and cash equivalents at March 31 573.5 406.4 541.3

21

Balance Amounts in DKK million

NoteAT MAR. 31,

2012AT DEC. 31,

2011AT MAR. 31,

2011AT DEC. 31,

2010

Goodwi l l 941.0 948.2 888.9 904.0Completed development projects 67.0 73.7 95.8 98.4Development projects in progress 49.4 49.1 24.9 30.1Other intangible assets 76.4 71.0 35.6 42.8Intangible assets 1,133.8 1,142.0 1,045.2 1,075.3

Land and bui ldings 1,470.4 1,460.9 1,230.8 1,249.7Leasehold improvements 7.1 6.7 9.7 10.1Plant and machinery 1,425.5 1,470.0 965.9 1,029.7Other fixtures , tools and equipment 124.3 125.7 93.7 98.5Assets under construction, etc. 127.1 89.9 575.6 399.0Property, plant and equipment 3,154.4 3,153.2 2,875.7 2,787.0

Equity investments in associates 59.7 62.7 80.3 94.14 Securi ties 250.5 274.7 941.0 736.9

Deferred tax 221.8 217.1 91.3 134.1Receivables 148.9 159.6 103.4 112.5Other non-current assets 680.9 714.1 1,216.0 1,077.6

Total non-current assets 4,969.1 5,009.3 5,136.9 4,939.9

Inventories 1,882.5 1,855.9 1,620.6 1,505.45 Receivables 2,386.2 2,391.5 1,733.7 1,799.8

Income tax receivable 26.7 17.5 13.3 4.9Construction contracts 0.6 4.1 1.6 8.3

4 Securi ties 92.4 80.9 162.6 190.0Cash and cash equiva lents 573.5 541.3 406.4 451.6Total current assets 4,961.9 4,891.2 3,938.2 3,960.0

Total assets 9,931.0 9,900.5 9,075.1 8,899.9

22

Balance Amounts in DKK million

NoteAT MAR. 31,

2012AT DEC. 31,

2011AT MAR. 31,

2011AT DEC. 31,

2010

6 Share capi ta l 255.0 255.0 255.0 255.0Hedge transaction reserve (31.4) (28.5) (26.0) (24.7)Exchange adjustment reserve 120.0 127.4 47.1 113.3Reta ined earnings 3,823.1 3,740.2 4,096.4 3,971.5Proposed dividend 102.0 102.0 76.5 76.5Share of equity attributable to the parent company 4,268.7 4,196.1 4,449.0 4,391.6

Minori ty interests 34.8 33.9 2.7 3.5Total equity 4,303.5 4,230.0 4,451.7 4,395.1

Deferred tax 122.8 127.6 77.9 73.1Pens ions and s imi lar l iabi l i ties 40.3 37.3 33.7 33.6

7 Credit ins ti tutions 1,016.4 1,021.7 990.3 967.7Other l iabi l i ties 82.1 87.7 48.4 51.4Non-current liabilities 1,261.6 1,274.3 1,150.3 1,125.8

7 Current portion of non-current debt 265.6 282.7 184.3 185.47 Credit ins ti tutions 2,108.2 2,004.3 1,793.4 1,457.0

Construction contracts 8.1 10.4 0.3 0.6Trade payables and other payables 1,908.8 2,055.7 1,454.6 1,691.1Income tax 67.9 34.9 34.1 40.2Provis ions 7.3 8.2 6.4 4.7Current liabilities 4,365.9 4,396.2 3,473.1 3,379.0

Total liabilities 5,627.5 5,670.5 4,623.4 4,504.8

Total liabilities and equity 9,931.0 9,900.5 9,075.1 8,899.9

8 Notes without reference

23

Statement of changes in equity Amounts in DKK million

Shar

e cap

ital

Hedg

e tra

nsac

tion

rese

rve

Exch

ange

adj

ustm

ent

rese

rve

Reta

ined

earn

ings

Divid

end

Tota

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Min

ority

inte

rest

sTo

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quity

Equi ty at January 1, 2012 255.0 (28.5) 127.4 3,740.2 102.0 4,196.1 33.9 4,230.0

Other comprehens ive income for the periodExchange rate adjustment of foreign subs idiaries - - (7.4) - - (7.4) 0.1 (7.3)Value adjustment of hedging instruments transferred to cost of sa les - (5.5) - - - (5.5) 0.0 (5.5)Value adjustment of hedging instruments transferred to financia ls - 1.5 - - - 1.5 0.0 1.5Value adjustment of hedging instruments recognised during the period - (0.2) - - - (0.2) 0.0 (0.2)Other comprehens ive income from associates - 0.1 - 0.0 - 0.1 0.0 0.1Tax on other comprehens ive income - 1.2 - 0.0 - 1.2 0.0 1.2

Profi t for the period - - - 77.5 - 77.5 0.8 78.3Total recognised comprehensive income - (2.9) (7.4) 77.5 - 67.2 0.9 68.1Transactions with the owners :

Share-based payment, net - - - 1.3 - 1.3 0.0 1.3Treasury shares bought/sold - - - 4.1 - 4.1 - 4.1

Transactions with the owners for the period 0.0 0.0 0.0 5.4 0.0 5.4 0.0 5.4

Equity at March 31, 2012 255.0 (31.4) 120.0 3,823.1 102.0 4,268.7 34.8 4,303.5

Shar

e cap

ital

Hedg

e tra

nsac

tion

rese

rve

Exch

ange

adj

ustm

ent

rese

rve

Reta

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earn

ings

Divid

end

Tota

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Min

ority

inte

rest

sTo

tal e

quity

Equi ty at January 1, 2011 255.0 (24.7) 113.3 3,971.5 76.5 4,391.6 3.5 4,395.1

Other comprehens ive income for the periodExchange rate adjustment of foreign subs idiaries - - (66.2) - - (66.2) 0.0 (66.2)Value adjustment of hedging instruments transferred to cost of sa les - 10.6 - - - 10.6 - 10.6Value adjustment of hedging instruments transferred to financia ls - 2.7 - - - 2.7 - 2.7Value adjustment of hedging instruments recognised during the period - (15.3) - - - (15.3) 0.0 (15.3)Other comprehens ive income from associates - 0.2 - 0.2 - 0.4 0.0 0.4Tax on other comprehens ive income - 0.5 - 0.0 - 0.5 0.0 0.5

Profi t for the period - - - 128.3 - 128.3 (0.2) 128.1Total recognised comprehensive income - (1.3) (66.2) 128.5 - 61.0 (0.2) 60.8Transactions with the owners :

Share-based payment, net - - - 1.1 - 1.1 0.0 1.1Dividend dis tributed - - - 0.0 0.0 0.0 (0.6) (0.6)Treasury shares bought/sold - - - (4.7) - (4.7) - (4.7)

Transactions with the owners for the period 0.0 0.0 0.0 (3.6) 0.0 (3.6) (0.6) (4.2)

Equity at March 31, 2011 255.0 (26.0) 47.1 4,096.4 76.5 4,449.0 2.7 4,451.7

24

Notes Amounts in DKK million

NOTE 1 - Segment reporting

Total reportable segments YTD 2012 BioMarFibertex

Personal CareFibertex

Nonwovens Grene Hydra-Grene Martin Total

External revenue 1,614.9 347.4 246.9 326.7 144.9 223.3 2,904.1Intra-group revenue 0.0 7.2 1.8 2.1 8.4 0.1 19.6Segment revenue 1,614.9 354.6 248.7 328.8 153.3 223.4 2,923.7Depreciation 37.5 29.9 16.2 7.5 2.7 15.4 109.2EBIT 51.8 36.6 12.8 17.5 23.5 9.4 151.6Segment assets 4,361.3 1,592.1 1,133.5 1,070.3 423.6 811.3 9,392.1of which goodwill 732.4 72.4 77.7 11.5 0.0 47.0 941.0Equity investments in associates 0.0 0.0 18.4 0.0 1.7 8.5 28.6Segment liabilities 2,494.5 988.6 733.4 765.3 270.9 633.2 5,885.9Cash flows from operating activities (85.6) 76.5 (6.1) (5.8) 8.9 33.3 21.2Cash flows from investing activities (16.3) (7.6) (5.2) (22.4) (7.5) (10.9) (69.9)Cash flows from financing activities 76.5 (34.4) 21.9 30.8 0.7 (14.7) 80.8Capital expenditure (19.6) (7.7) (5.2) (22.4) (7.5) (11.1) (73.5)Average number of employees 809 368 499 914 218 517 3,325

Total reportable segments YTD 2011 BioMarFibertex

Personal CareFibertex

Nonwovens Grene Hydra-Grene Martin Total

External revenue 1,134.0 309.2 119.3 306.4 97.2 205.5 2,171.6Intra-group revenue 0.0 4.1 0.4 0.8 8.3 0.1 13.7Segment revenue 1,134.0 313.3 119.7 307.2 105.5 205.6 2,185.3Depreciation 29.9 27.1 9.5 7.6 2.7 19.1 95.9EBIT (7.1) 25.7 (2.8) 14.9 14.5 (9.3) 35.9Segment assets 3,798.4 1,403.2 686.2 959.0 343.8 780.3 7,970.9of which goodwill 719.2 72.4 32.0 11.5 0.0 47.0 882.1Equity investments in associates 0.0 0.0 21.3 0.0 1.4 10.4 33.1Segment liabilities 1,814.3 825.2 397.8 693.9 196.8 601.6 4,529.6Cash flows from operating activities (206.8) 37.6 1.4 (26.9) 14.3 (26.0) (206.4)Cash flows from investing activities (55.9) (121.2) (3.6) (9.3) (0.5) (6.1) (196.6)Cash flows from financing activities 205.4 82.6 2.3 36.7 (4.1) 32.4 355.3Capital expenditure (61.9) (121.2) (3.6) (9.3) (0.5) (6.4) (202.9)Average number of employees 729 317 362 903 186 626 3,123

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, 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 arm’s length basis.

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NOTE 1 - Segment reporting (continued)

YTD 2012 YTD 2011

Reconciliation of segment revenue:Revenue from reporting segments 2,923.7 2,185.3Revenue from non-reporting segments 11.2 12.1Revenue from the parent company 4.9 4.8Group elimination (21.1) (14.8)Group revenue 2,918.7 2,187.4

Reconciliation of EBIT:EBIT from reporting segments 151.6 35.9Revenue from non-reporting segments (1.8) (1.8)EBIT from the parent company (3.2) (2.6)EBIT 146.6 31.5

Reconciliation of segment assets:Assets from reporting segments 9,392.1 7,970.9Revenue from non-reporting segments 560.6 1,080.3Assets from the parent company 3,513.7 3,861.7Group elimination (3,535.4) (3,837.8)Assets 9,931.0 9,075.1

Reconciliation of segment liabilities:5,885.9 4,529.6

Revenue from non-reporting segments 26.3 29.7Liabilities from the parent company 266.6 500.1Group elimination (551.3) (436.0)Liabilities 5,627.5 4,623.4

NOTE 2 - Share based payment

Share option programme

Outstanding options Management Other TotalStrike price in

DKK (2)Fair value in DKK

per option (3)Fair value in total

in DKK millions (3)Can be exercised

fromCan be exercised

toGranted in 2008 1) 36,000 144,000 180,000 224.85 37.83 6.8 March 2010 March 2012Granted in 2009 36,000 86,000 122,000 78.61 21.27 4.7 March 2011 March 2013Granted in 2010 34,000 148,000 182,000 125.53 24.38 4.4 March 2012 March 2014Granted in 2011 55,000 184,000 239,000 151.61 25.80 6.2 March 2013 March 2015Outstanding options at December 31, 2011 161,000 562,000 723,000Granted in 2012 55,000 184,000 239,000 155.83 24.24 5.8 March 2014 March 2016Expired (share options granted in 2008) -36,000 -144,000 -180,000Exercised (from the share options granted in 2009) -12,000 -42,000 -54,000Outstanding options at March 31, 2012 168,000 560,000 728,000

3) At the date of grant

2012 grant 2011 grant 2010 grant 2009 grantExpected volatility 34.50% 33.75% 37.41% 56.54%Expected term 48 mths 48 mths 48 mths 48 mthsDividend per share DKK 3 DKK 3 DKK 3 DKK 3Risk-free interest rate 4.00% 3.00% 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 above-mentioned 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.

1) The number of options has been adjusted for bonus share issue in 20082) At exercise after four years (at the latest possible moment)

A total of 54,000 options relating to the 2009 grant were exercised in the first quarter of 2012. The exercise of these options produced cash proceeds to the Group of DKK 4.1 million.

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.

Reconciliation of revenue, profit before tax, assets and liabilities

Liabilities from reporting segments

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

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NOTE 3 - Earnings per share (DKK) Q1 2012 Q1 2011 YTD 2012 YTD 2011

Share of the profit for the period attributable to shareholders of Schouw 77.5 128.3 77.5 128.3

Average number of shares 25,500,000 25,500,000 25,500,000 25,500,000 Average number of treasury shares (2,000,275) (1,632,726) (2,000,275) (1,632,726)

Average number of outstanding shares 23,499,725 23,867,274 23,499,725 23,867,274

Average dilutive effect of outstanding share options 23,895 64,960 23,895 64,960

Diluted average number of outstanding shares 23,523,620 23,932,234 23,523,620 23,932,234

Earnings in Danish kroner per share of DKK 10 3.30 5.37 3.30 5.37Diluted earnings in Danish kroner per share of DKK 10 3.29 5.36 3.29 5.36

NOTE 4 - SecuritiesAT MAR. 31,

2012AT DEC. 31,

2011AT MAR. 31,

2011AT DEC. 31,

2010

Financial investments Shares in Vestas (non-current securities) 226.4 248.0 912.8 704.4 Shares in Lerøy (current securities) 92.0 80.5 161.8 189.3Financial investments in total 318.4 328.5 1,074.6 893.7Other securities 24.5 27.1 29.0 33.2Securities in total 342.9 355.6 1,103.6 926.9

Securities measured at fair value:

Non-current assetsCost at January 1 347.3 353.2 353.2 353.9Foreign exchange adjustment 0.8 0.0 (0.3) 1.8Additions 0.1 5.5 0.1 2.0Disposals (3.4) (11.4) (4.0) (4.5)Cost at end period 344.8 347.3 349.0 353.2Adjustments at January 1 (72.6) 383.7 383.7 940.4Foreign exchange adjustment 0.0 0.1 0.0 (0.1)Disposals on divestment 0.0 0.3 0.0 0.0

Adjustments recognised in the income statement for the period (21.7) (456.7) 208.3 (556.6)Adjustments at end period (94.3) (72.6) 592.0 383.7Carrying amount of non-current assets at end period 250.5 274.7 941.0 736.9

Current assetsCost at January 1 160.7 159.8 159.8 6.5Foreign exchange adjustment 3.1 0.9 0.0 5.2Additions 0.0 0.0 0.0 148.1Cost at end period 163.8 160.7 159.8 159.8Adjustments at January 1 (79.8) 30.2 30.2 (5.8)Foreign exchange adjustment (1.2) (0.1) (0.3) 0.0Dividend 0.0 (9.6) 0.0 0.0

Adjustments recognised in the income statement for the period 9.6 (100.3) (27.1) 36.0Adjustments at end period (71.4) (79.8) 2.8 30.2Carrying amount of current assets at end period 92.4 80.9 162.6 190.0

Carrying amount at end period 342.9 355.6 1,103.6 926.9

At March 31, 2012, the company held 4,000,000 shares in Vestas recognised at a price of DKK 56.60 per share. At DKK 226.4 million, the fair value of the holding corresponded to the market price at March 31, 2012. The original acquisition cost of the shares in Vestas is DKK 313.4 million. At March 31, 2012, the company held 1,000,000 shares in Lerøy recognised at a price of NOK 94.00 per share (DKK 91.97 per share). At DKK 92.0 million, the fair value of the holding corresponded to the market price at March 31, 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.

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NOTE 5 - Receivables

Trade receivables

At March 31, 2012 Not due 1-30 days 31-90 days >91 days TotalTrade receivables not considered to be impaired 1,847.0 184.2 60.8 56.9 2,148.9Trade receivables individually assessed to be impaired 21.7 30.5 16.8 211.4 280.4Trade receivables in total 1,868.7 214.7 77.6 268.3 2,429.3Impairment losses on trade receivables (5.8) (11.2) (8.8) (195.0) (220.8)Trade receivables net 1,862.9 203.5 68.8 73.3 2,208.5

Proportion of the total receivables which is expected to be settled 90.9%Impairment percentage 0.3% 5.2% 11.3% 72.7% 9.1%

Reconciliation to the balanceTrade receivables - net 2,208.5Other receivables - current 156.1Accruals and deferred income 21.6Total current receivables 2,386.2

At March 31, 2011 Not due 1-30 days 31-90 days >91 days TotalTrade receivables not considered to be impaired 1,299.2 121.4 43.6 53.4 1,517.6Trade receivables individually assessed to be impaired 0.2 15.5 14.3 236.9 266.9Trade receivables in total 1,299.4 136.9 57.9 290.3 1,784.5Impairment losses on trade receivables 0.0 (4.3) (4.9) (214.4) (223.6)Trade receivables net 1,299.4 132.6 53.0 75.9 1,560.9

Proportion of the total receivables which is expected to be settled 87.5%Impairment percentage 0.0% 3.1% 8.5% 73.9% 12.5%

Reconciliation to the balanceTrade receivables - net 1,560.9Other receivables - current 157.2Accruals and deferred income 15.6Total current receivables 1,733.7

NOTE 6 - Share capital

Treasury shares Number

of shares Nominal

value CostPercentage

of share

1,623,275 16,232,750 184.3 6.37%

Movements in Q1 2011 Bought 76,000 760,000 9.8 0.30% Share option programme (70,000) (700,000) (6.4) -0.27% Group employee share scheme (18,552) (185,520) (1.7) -0.07%

1,610,723 16,107,230 186.0 6.32%

Movements in Q2 - Q4 2011 Bought 460,750 4,607,500 66.4 1.80% Share option programme (28,000) (280,000) (2.8) -0.11% Group employee share scheme (35,110) (351,100) (3.4) -0.14%

2,008,363 20,083,630 246.2 7.88%

Movements in Q1 2012 Share option programme (54,000) (540,000) (5.4) -0.21%

1,954,363 19,543,630 240.8 7.66%

Due between

At March 31, 2012, the share capital consisted of 25,500,000 shares with a nominal value of DKK 10 each. All shares rank equally.

Due between

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.

January 1, 2011

March 31, 2012

December 31, 2011

March 31, 2011

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NOTE 8 - Related party transactionsUnder 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 2012 granted Incuba A/S an additional loan of DKK 0.7 million, and the Group now has a total receivable of DKK 11.2 million. At the same time last year the Group had a total receivable of DKK 10.8 million. The Group has received management fee of DKK 15 thousand (2011: DKK 25 thousand) and received interests of DKK 221 thousand (2011: DKK 187 thousand) from Incuba A/S.

Other than that there were no other related party transactions.

At the end of the first quarter of 2012 and 2011 the Group's debt divided by currency was as shown below:

The average effective rate of interest was 3.2% at March 31, 2012 (March 31, 2011: 3.2%).

NOTE 7 - Interest-bearing debt

DKK 25%

PLN 4%

EUR 43%

MYR 4%

NOK 13%

CZK 8% Other 3%

March 31, 2011

DKK 30%

PLN 4%

EUR 37%

MYR 5%

NOK 13%

CZK 6%USD 2% Other 3%

March 31, 2012

Interim report – First quarter of 2012 - Schouw & Co.

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Transcript of Interim report – First quarter of 2012 - Schouw & Co.