Kjaer Group Annual Report 2009

April 22, 2010

Emerging world economies generate healthy business for Kjaer Group A/S. A strong performance in 2009 with DKK +128 million in operating cash flow

Per S. Lundgren, CEO, comments:”...We ended 2009 in a stronger position than when we entered 2009 and we are very pleased with the performance especially considering that the global financial crisis made it very difficult to carry out foreseeable project planning. Plans were continuously re-evaluated and re-assessed. We chose to be very conservative as well as very aggressive with regards to our outlook for the future.

On one hand we decided to be very selective and focus on efficiency of the current business in order to secure profitability, solidity and operating cash-flow while at the same time DKK 30 million was invested in new business opportunities, the highest amount in one single year ever. The investments were primarily made in Vietnam together with Nissan Japan in order to be able to manufacture and launch the first Nissan family car in the beginning of 2010. Vietnam is one of the world’s fastest growing emerging economies and car markets, a market which we have high expectations for in the years to come.

Turnover in 2009 was achieved according to expectations and reached DKK 761 million (2008: DKK 954 million). The gross margin continued to improve to 18,6% (2008: 17,3%, 2007: 15.7%) due to the continued focus on various initiatives to strengthen and secure the gross profits. After extraordinary operating expenses of DKK 15 million, primarily invested in the Group’s activities in Vietnam, EBITDA and Earnings After Tax reached DKK 39 million And DKK 21 million Respectively (2008: DKK 61 million / DKK 33 million).

Furthermore during 2009 optimizing credit- as well as purchase processes in order to reduce the Group’s working capital had high focus. In total the group generated a positive operating cash flow of DKK 128 million which considerably strengthened the balance sheet and solidity. Total assets reached DKK 306 million (2008: DKK 522 million) and total equity DKK 109 million (2008: DKK 88 million) corresponding to a solidity ratio end of 2009 of 36% (2008: 17%)

Kjaer Group was established in 1962 and has since 1977 delivered automotive services in emerging economies. It is the ambition to be the preferred partner for manufacturers with an interest in gaining access to or improving their existing business in Sub-Sahara Africa, and to be the preferred partner and service provider worldwide to all key players in the international Aid and Development sector.

Svendborg, 22. april, 2010
Please click here for the online version of Kjaer Group's Annual Report 2009

For more information, please contact:
Per S. Lundgren, CEO        p.lundgren@kjaergroup.com
Klaus Karstensen, CFO      k.karstensen@kjaergroup.com

Kjaer Group A/S
Grønnemosevej 6
5700, Svendborg
Tel.: +45 62 221 111

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