This announcement is not an offer to buy or sell shares or other securities in Danisco A/S or an recommendation on whether or not to accept any offer or otherwise buy or sell shares or other securities
in Danisco A/S.
Company announcement
In advance of further announcements to be made, Danisco A/S confirms guidance for the financial year 2010/2011 and notifies the market of certain non-public information which supports its long term financial ambitions and which has been disclosed to third parties in the context of a potential offer for the company
Danisco A/S ("Danisco") has been in discussions with third parties concerning the possible launch of a recommended public offer in cash for all shares in Danisco (the "Offer"). In the course of these discussions, Danisco has made certain non-public information available to such third parties for the purpose of them confirming their commercial and valuation assessment of Danisco. By way of this announcement, Danisco confirms its guidance for the financial year 2010/2011 and discloses certain non-public information made available to such third parties in relation to financial years 2011/12 and 2012/13. It is expected that an offeror's decision to make the Offer will be published immediately after the publication of this company announcement.
Guidance for the financial year 2010/2011
Danisco announced its 2nd quarter 2010/2011 financial report and its updated outlook for the financial year 2010/2011 on 16 December 2010. Reference is being made to company announcement 12/2010 for a full description of the outlook and the underlying assumptions at that time.
Danisco's activity level in the months of November and December 2010 has been satisfactory and supports the guidance for financial year 2010/2011 published on 16 December 2010.
Danisco's long term financial ambitions
On 8 October 2010, Danisco announced updated long term financial ambitions, which were as follows:
· Group organic growth 5-7 per cent over an economic cycle
· Enablers 3-5 per cent
· Cultures 7-9 per cent
· Sweeteners 3-5 per cent
· Genencor 7-9 per cent
· Group EBIT margin 15.0 per cent
· Enablers >14.0 per cent
· Cultures >18.0 per cent
· Sweeteners >10.0 per cent
· Genencor >17.0 per cent
· Unallocated costs: Below 1.5 per cent of Group revenue
· Group RONOA > 20 per cent
· Group gearing 1.5-2.5 times EBITDA
These long term financial ambitions were based on the exchange rates that formed the basis for Danisco's full-year guidance for financial year 2010/11 as of 21 September 2010. The long term financial ambitions were defined after costs for share-based payments and excluding any impact from Danisco's BioIsoprene™ collaboration with Goodyear. Danisco's second-generation bioethanol joint venture with DuPont is accounted for under "Share of profit from joint ventures".
Reference is being made to company announcement 9/2010 for a full description of the long term financial ambitions and the underlying assumptions.
Danisco's internal plans, being the foundation for the long term financial ambitions made public on 8 October 2010, were developed as part of the ordinary budget and strategy process during the spring of 2010. Danisco's internal plan for the financial years 2011/12 and 2012/13 have subsequently been adjusted for exchange rate changes.
Danisco's most recent internal plans, which were disclosed to third parties in the context of the Offer, assume an average organic growth rate for the financial years 2011/2012 and 2012/13 of 7 per cent p.a.. Furthermore, said internal plans include an EBIT margin ambition, before Bio Chemical Projects but after share based payments, and before applying internal provisions for general forecasting uncertainty, of 15.9 percent for the financial year 2012/2013.
Yours faithfully
Tom Knutzen, CEO
For further information, please contact:
Investor Relations, tel.: +4532 66 29 12, investor@danisco.com
For international media enquiries, please contact:
Finsbury, Andrew Dowler or Sally Hogan, tel.: +44 (0)20 7251 3801
This announcement has been prepared in Danish and has been translated into English. In case of inconsistencies between the two versions, the Danish language version shall prevail.
This announcement may contain statements relating to future matters or occurrences, including statements on future results, growth or other forecasts on developments and benefits in connection with the Offer.
Such statements may generally, but not always, be identified by the use of words such as “anticipates”, “assumes”, “expects”, “plans”, “will”, “intends”, “projects”, “estimates”, "ambition" or similar expressions. Forward-looking statements, by their nature, involve risks and uncertainty as they relate to events and depend on circumstances occurring in the future. There can be no assurance that actual results will not differ, possibly materially, from those expressed or implied by such forward-looking statements.
