Vetropack 2009: Earning Power Well Maintained in a Challenging Year

Fiscal year 2009 was characterised by falling demand because of the prevailing global economic crisis. Demand did not stabilise until the third quarter, but failed to match the previous year’s level. Therefore, production was obligingly curbed at all sites to avoid stockpiling inventories.

At CHF 671.5 million, Vetropack Group’s consolidated revenue decreased by 10.7% from the previous year (2008: CHF 752.0 million). In real terms, the fall in revenue only amounted to 2.0%, as 8.7% of the negative influences of foreign exchange differentials were caused by the devaluation in the Ukrainian currency.

During the year under review, Vetropack Group sold a total of 3.97 billion units of glass packaging, 7.0% fewer than in the previous year (2008: 4.27 billion). Vetropack Group succeeded in expanding its export sales, thereby partially offsetting the fall in demand from domestic markets. The export ratio amounted to 36.7% (2008: 33.0%).

Due to the reduced revenue and incomplete capacity utilisation, Vetropack Group realised EBIT of CHF 100.9 million (2008: CHF 129.9 million). The EBIT margin reached a gratifying 15.0% of gross revenue (2008: 17.2%). Such solid earning power in a challenging environment is the result of prompt, stringent cost management and targeted cost-cutting measures.

Consolidated annual profit reached CHF 78.4 million (2008: CHF 78.5 million).

In 2009 Vetropack Group invested a total of CHF 39.8 million (2008: CHF 96.6 million). Investment primarily focused on the construction of a new electrostatic precipitator to filtrate exhausts and recover heat for the two furnaces at Vetropack’s facility in Slovakia.

On 21 January 2009, Vetropack Holding Ltd launched a share repurchasing programme to reduce its share capital. On 13 May 2009 the Annual General Assembly resolved to cancel 3,295 bearer shares with a nominal value of CHF 164,750. The programme as a whole encompasses a maximum of 17,601 bearer shares. As per 31 December 2009, 48.0% of the planned volume had already been repurchased and cancelled. The next reduction in share capital will be proposed to the ordinary Annual General Assembly in 2011.

Vetropack Holding Ltd: Proposed Dividend Distribution
During the Annual General Assembly the Board of Directors will propose setting a nominal dividend distribution of 70% (2008: 70%). This represents a gross dividend distribution of CHF 35.00 (2008: CHF 35.00) per bearer share and of CHF 7.00 (2008: CHF 7.00) per registered share.

The Annual General Assembly of Vetropack Holding Ltd will take place on Wednesday, 12 May 2010, 11:15, in Bülach.

For further information, please contact:
David Zak, CFO Vetropack Holding AG Tel. +41 (44) 863 32 25 Fax +41 (44) 863 31 33 E-Mail:david.zak@vetropack.ch www.vetropack.com

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