Danisco: lifts the full year 2008/2009 forecast

Copenhagen / DK. (das) The latest Danisco A/S notice covers three separate events: Changes to the Board of Directors; a trading statement lifting the full year 2008/2009 Ebit outlook and information regarding increased financial disclosure.

Changes to Danisco´s Board of Directors

The Chairman of Danisco´s Board of Directors, Anders Knutsen (elected to the Board in 1997), and two further Board members, Peter Højland (elected in 1998) and Matti Vuoria (elected in 1999), will not stand for re-election at Danisco´s upcoming Annual General Meeting (AGM) to be held on 20 August 2009.

Anders Knutsen: «During my seven years as Chairman, I have worked for Danisco to become a pure play, bio-based ingredients company. Having now divested Sugar, Danisco is ready to enter a new and challenging era with focus on value creation and on leveraging our capabilities. Following discussions with some of Danisco´s largest shareholders, I have decided not to stand for re-election at the upcoming AGM». Jørgen Tandrup, the Board´s current Deputy Chairman, has expressed his willingness to assume the position as Chairman after the upcoming AGM to ensure continuity on the Board.

Danisco´s Board is now in the process of identifying new candidates for the three available Board positions, the competences of whom should reflect Danisco´s strategic intent. The Board has appointed a nomination committee consisting of three current Board members (the Chairmanship and Håkan Björklund) as well as external recruitment services. The chosen candidates will be announced along with the AGM invitation, which the company expects to publish by the end of July 2009.

Danisco´s Board currently consists of Anders Knutsen (Chairman), Jørgen Tandrup (Deputy Chairman, elected 2002), Håkan Björklund (elected 2004), Kirsten Drejer (elected 2006), Lis Glibstrup (employee elected in 2002), Peter Højland, Flemming Kristensen (employee elected in 2005) and Matti Vuoria.

Trading statement

In March 2009, the company stated that it was facing an unusually high degree of uncertainty in its financial outlook for the remaining quarter of the financial year 2008/2009 due to the global economic recession and resulting weaker customer demand, not least in January 2009. The company believes it is appropriate at this stage to offer a brief trading statement – based on unaudited results for the full year 2008/2009.

In the fourth quarter 2008/2009, the company recorded revenue of around 3,3 billion DKK, or around two percent growth year to year. Organic growth for the quarter was flat. This brings revenue for the full year to 13,0 billion DKK and organic growth to around four percent.

In March 2009, the company stated that it expected to report Ebit of around 1’150 million DKK after expenses of around 50 million DKK relating to Bio Chemicals Projects (Goodyear) and before share-based payments and special items. Based on the unaudited figures, the company now expects to be able to report 1’225 to 1’250 million DKK after Bio Chemicals Projects (Goodyear) expenses of 40 million DKK. The company´s full, audited FY 2008/2009 results are still due to be released in the end of June 2009, along with the outlook for FY 2009/2010.

Danisco increasing financial disclosure

The company has decided to increase transparency by increasing the number of financial reporting segments from the current two segments (Food Ingredients and Genencor) to four (Enablers, Cultures, Sweeteners and Genencor). Previously, Cultures and Sweeteners were shown as one cluster – Bio Actives – whilst all activities except for Genencor were grouped as one segment – Food Ingredients.

This structure will be implemented already from FY 2008/2009, thus implementing IFRS 8 one year ahead of the legal requirement. Danisco remains fully committed to its Food Ingredients and Bio Actives platforms and will continue to communicate and report on activities within these areas even if they are no longer defined as financial reporting segments. Thus, the leadership structure around Food Ingredients and Bio Actives also remains intact.