Economic review and 2009 in brief


Improved profitability and strong cash flow despite lower net sales

The year was characterized by customer cautiousness and uncertainty. Demand remained sluggish throughout the year. At EUR 2,038 million (EUR 2,260 million in 2008), the Group net sales declined due to lower volumes, divestments and discontinued operations. In addition, currency translations had a minor adverse effect on the euro-denominated value of net sales. Despite the decline in net sales, profitability improved markedly. The full year Group EBIT, excluding non-recurring charges, was higher than the previous year. Most of the business segments were able to maintain sound margins, and successful cost reductions added to earnings growth. These positive factors more than compensated for the decrease in volumes which was experienced in most business segments. Cash flow generation was strong throughout 2009, supported by improved working capital efficiency and low capital expenditure. All segments achieved good results in cash generation. This contributed to a considerable reduction of net debt, which advanced the accomplishment of the Group’s key financial targets. As of January 1, 2010, the Flexibles Global segment was renamed Flexible Packaging, the Films Global segment was renamed Films and the Rough Molded Fiber Global segment was renamed Molded Fiber.