Interim report for the third quarter 2009: Overall growth confirms plan for the future - however, earnings under pressure in 2009 due to glyphosate

Company announcement no. 12/2009
November 10, 2009


GROWTH FROM NEW PRODUCTS DESPITE DECLINING MARKET, BUT GLYPHOSATE CONTINUES TO
DISAPPOINT 

(Figures in brackets are figures for 2008)

The market conditions for Cheminova's largest product, glyphosate, have
deteriorated considerably during 2009. Developments in Q3 were, in particular,
characterised by substantial price erosion, which negatively impacted sales and
resulted in unsatisfactory earnings. Auriga's revenue fell by 5% in the first
three quarters of the year, when measured at unchanged exchange rates. Measured
in Danish kroner, revenue was down 7% at DKK 4,190 million. Except for
glyphosate, organic growth of more than 10% was achieved for Cheminova's other
crop protection products despite a declining market. This confirms the
long-term targets set out in the business plan “Five-in-Fifteen”. 
 
After growth of about 20% in 2008, the market has been declining in 2009. The
long-term development trends for the agrochemical market remain positive, but
for 2009, market players are reporting falling revenue as a result of climatic
conditions, the credit crunch, distributors reducing inventories and the
decline in glyphosate prices. 

Auriga posted revenue of DKK 4,190 million for the first three quarters of
2009 (DKK 4,511 million) and an operating profit before depreciation and
amortisation of DKK 201 million (DKK 652 million), corresponding to an EBITDA
margin of 5% (14%). A loss before tax of DKK -22 million (DKK 416 million) was
generated. The downturn in earnings is attributable to considerably lower
prices on glyphosate in several important markets, including in particular
North America. 

Cheminova's sales regions are all affected by the negative developments for
glyphosate. Region Europe saw growth in revenue of 7% after full consolidation
of Stähler, which contributed additional revenue of DKK 222 million.
Cheminova's other sales regions have seen a decline in revenue in 2009. 

A central element in Cheminova's business plan “Five-in-Fifteen” is the
innovation and expansion of Cheminova's product programme. Consequently, it is
satisfactory that new products developed and introduced since 2000 have seen
sound growth in the first three quarters of the year; acquired products,
including products from Stähler, have also seen satisfactory growth. 

OUTLOOK 2009
The market conditions for Cheminova's largest product, glyphosate, are not
expected to improve in Q4 2009, but growth is expected in sales of Cheminova's
other products. In Brazil, the planted acreage is on a par with last year, and
consequently, a satisfactory demand for crop protection products is expected.
Cheminova is therefore maintaining the outlook announced on October 26, 2009 of
revenue of approx. DKK 5,500 million and an operating profit of approx. DKK
10-50 million as well as a positive cash flow from operating activities.


President & CEO Kurt Pedersen Kaalund comments:
"Despite a declining market, we have achieved organic growth of more than 10%
for our crop protection products excluding glyphosate. The successful
introduction of new products is crucial to meeting the long-term targets of
doubling our market share in 2015. We are pleased with the overall development,
as it confirms our business plan “Five-in-Fifteen”, although we have seen
disappointing results from glyphosate this year."


PRESENTATION FOR ANALYSTS
The financial statements will be presented at an analysts' meeting on November
10, 2009, at 9:30h Danish time in Copenhagen. The presentation will be
conducted in English and can be viewed live as webcast on
www.auriga-industries.com and www.auriga.dk, where the presentation can be
found as well. An indexed version of the webcast will be available on the
websites afterwards. A teleconference will not be held in connection with the
release of the interim report for Q3 2009. 

MORE INFORMATION:

Kurt Pedersen Kaalund
President & CEO
Tel. +45 7010 7030
investor@auriga.dk

Jens Ole Jensen
Vice President
Tel. +45 7010 7030
investor@auriga.dk