2 CONTE NTS MANAG EMENT R EPORT 20 0 8 Contents Management report The new Hartmann Group profile Five-year financial highlights
MANAG EMENT R EPORT 20 0 8 CONTE NTS 3
4 INTRODuCTION MANAG EMENT R EPORT 20 0 8 The new Hartmann The year 2008 was a good year for Hartmann. We completed an extensiv
MANAG EMENT R EPORT 20 0 8 INTRODuCTION 5 Core earnings in our industrial packaging business grew significantly, but unfortunat
6 GROu P PROFIlE MANAG EMENT R EPORT 20 0 8 In 2008, Hartmann moved its head office to new leased premises in Gentofte located
MANAG EMENT R EPORT 20 0 8 FINANCIAl HIGHlIGHTS AND R ATIOS 7 Five-year financial highlights and ratios 2008 Income statement (
8 STR ATEGy MANAG EMENT R EPORT 20 0 8 Strategy Hartmann’s overall goal is to be the market’s preferred supplier of sustainable
MANAG EMENT R EPORT 20 0 8 STR ATEGy 9 In 2009, the Group will focus on energy efficiency improvements in production, further r
10 STR ATEGy MANAG EMENT R EPORT 20 0 8 Phase 2: ’10 in 10’ activities Focus area Optimisation in Europe Challenge Unit costs t
MANAG EMENT R EPORT 20 0 8 STR ATEGy 11
12 GROu P DE vE lOPME NTS IN 20 0 8 MANAG EMENT R EPORT 20 0 8 Group developments 2008 Operating profit before special items im
MANAG EMENT R EPORT 20 0 8 GROu P DE vElOPME NTS IN 20 0 8 13 The improvement was driven by the Group’s extensive focus on cost
14 GROu P DE vE lOPME NTS IN 20 0 8 MANAG EMENT R EPORT 20 0 8 Fourth quarter of 2008 Revenue and earnings in Hartmann’s larges
MANAG EMENT R EPORT 20 0 8 GROu P DE vElOPME NTS IN 20 0 8 15 Adjusting the organisation Hartmann wishes to centre its industri
16 OuTlOOK FOR 20 09 MANAG EMENT R EPORT 20 0 8 Outlook for 2009 The negative exchange rate movements in several markets and th
MANAG EMENT R EPORT 20 0 8 OuTlOOK FOR 20 09 17 The expected improvement in Egg Packaging North America is attributable to a co
18 RI S K FACTORS MANAG EMENT R EPORT 20 0 8 Risk factors It is a fundamental objective of Hartmann’s Management to ensure cons
MANAG EMENT R EPORT 20 0 8 RI SK FACTORS 19 Product development and customer preferences Hartmann relies on customers not chang
20 RI S K FACTORS MANAG EMENT R EPORT 20 0 8 For example, Hartmann is subject to rules governing the limitation of noise and ru
MANAG EMENT R EPORT 20 0 8 RI SK FACTORS 21
22 Bu S INES S DESCRIP TION EGG PACK AGING MANAG EMENT R EPORT 20 0 8 Business description Egg Packaging The market for moulded
MANAG EMENT R EPORT 20 0 8 B u S INES S DESCRIP TION EGG PACK AGING 23 Packaging is becoming an even more important sales param
24 Bu S INES S DESCRIP TION EGG PACK AGING MANAG EMENT R EPORT 20 0 8 The USA is witnessing a growing awareness of sustainabili
MANAG EMENT R EPORT 20 0 8 B u S INES S DESCRIP TION INDu STRIAl PACK AGING 25 Business description Industrial Packaging The ma
26 Su STAINAB lE DE vE lOPME NT MANAG EMENT R EPORT 20 0 8 Sustainable development There is today an increasing focus on sustai
MANAG EMENT R EPORT 20 0 8 Su STAINAB lE DE vE lOPMENT 27 Hartmann’s sales and marketing campaign Choose Fibre. Save Nature® ha
28 CORPOR ATE GOvERNANCE MANAG EMENT R EPORT 20 0 8 Corporate governance Hartmann continued to focus on good corporate governan
MANAG EMENT R EPORT 20 0 8 CORPOR ATE GOvERNANCE 29 In January 2009, Hartmann received the Danish Society of Financial Analysts
30 SHAREHOlDER INFORMATION MANAG EMENT R EPORT 20 0 8 Shareholder information Hartmann’s three previous share classes were merg
MANAG EMENT R EPORT 20 0 8 SHAREHOlDER INFORMATION 31 Hartmann’s investor website, www.hartmann-packaging.com, provides histori
32 BOARD OF DIRECTORS AND E xECuTIvE BOARD MANAG EMENT R EPORT 20 0 8 Board of Directors and Executive Board All Board members
MANAG EMENT R EPORT 20 0 8 BOARD OF DIRECTORS AND E xECuTIvE BOARD 33 • BC: EVA Denmark A/S, Johan Mangor A/S, Piet Hein A/S an
34 MANAGE ME NT STATE MENT MANAG EMENT R EPORT 20 0 8 Management statement The Board of Directors and the Executive Board today
MANAG EMENT R EPORT 20 0 8 MANAGEMENT STATE ME NT 35
36 CONTE NTS FINANCIAL STATEMENTS 20 0 8 Financial statements: Financial review Income statement Statement of cash flows Balanc
FINANCIAL STATEMENTS 20 0 8 CONTE NTS 37
38 FINANCIAl RE vIE W FINANCIAL STATEMENTS 20 0 8 Financial review Hartmann generated revenue of DKK 1,491 million for 2008, in
FINANCIAL STATEMENTS 20 0 8 FINANCIAl RE vIE W 39 activity due to a major customer phasing out purchases. The other business ar
40 FINANCIAl RE vIE W FINANCIAL STATEMENTS 20 0 8 Equity and liabilities Equity at 31 December 2008 stood at DKK 456 million, r
FINANCIAL STATEMENTS 20 0 8 FINANCIAl RE vIE W 41
42 Income state me nt FINANCIAL STATEMENTS 20 0 8 Income statement 1 January - 31 December amounts in DKKm Group 2008 2007 Pare
FINANCIAL STATEMENTS 20 0 8 statement of c ash flows 43 statement of cash flows 1 January - 31 December amounts in DKKm Group 2
44 Bal ance s hee t, as s e ts FINANCIAL STATEMENTS 20 0 8 Balance sheet, assets 31 December amounts in DKKm Group 2008 2007 Pa
FINANCIAL STATEMENTS 20 0 8 Bal ance shee t, equ It y anD lIaB IlItIes 45 Balance sheet, equity and liabilities 31 December amo
46 Income anD e XPe n s e FINANCIAL STATEMENTS 20 0 8 statement of recognised income and expense 1 January - 31 December amount
FINANCIAL STATEMENTS 20 0 8 PRImaRy seGme nts 47 segment information 1 January - 31 December Egg Packaging 2008 External revenu
48 conte nt FINANCIAL STATEMENTS 20 0 8 notes 1 2 3 4 5 6 7 8 9 Notes - income statement critical accounting estimates and judg
FINANCIAL STATEMENTS 20 0 8 conte nt 49
50 notes FINANCIAL STATEMENTS 20 0 8 notes to the income statement amounts in DKKm 1. cricital accounting estimates and judgmen
FINANCIAL STATEMENTS 20 0 8 notes 51 notes to the income statement Group 2008 4. staff costs Breakdown of staff costs: Wages, s
52 notes FINANCIAL STATEMENTS 20 0 8 notes to the income statement amounts in DKKm 4. staff costs, cont’d The annual fee of Boa
FINANCIAL STATEMENTS 20 0 8 notes 53 notes to the income statement 4. staff costs, cont’d Exercise period Issued Members of the
54 notes FINANCIAL STATEMENTS 20 0 8 notes to the income statement Group 2008 6. special items special income Proceeds from the
FINANCIAL STATEMENTS 20 0 8 notes 55 notes to the income statement Group 2008 8. tax on profit/(loss) for the year from continu
56 notes FINANCIAL STATEMENTS 20 0 8 notes to the income statement 9. earnings per share Average number of shares Average numbe
FINANCIAL STATEMENTS 20 0 8 notes 57 notes to the balance sheet Development projects 11. Intangible assets Group and parent com
58 notes FINANCIAL STATEMENTS 20 0 8 notes to the balance sheet Land and buildings Technical plant and machinery Other operatin
FINANCIAL STATEMENTS 20 0 8 notes 59 notes to the balance sheet Land and buildings Technical plant and machinery Other operatin
60 notes FINANCIAL STATEMENTS 20 0 8 notes to the balance sheet 13. Investments in subsidiaries Cost at 1 January Additions Dis
FINANCIAL STATEMENTS 20 0 8 notes 61 notes to the balance sheet 14. Receivables from subsidiaries Carrying amount at 1 January
62 notes FINANCIAL STATEMENTS 20 0 8 notes to the balance sheet Group 2008 15. Investments in associates Cost at 1 January cost
FINANCIAL STATEMENTS 20 0 8 notes 63 notes to the balance sheet Group 2008 17. Deferred tax Deferred tax at 1 January Foreign e
64 notes FINANCIAL STATEMENTS 20 0 8 notes to the balance sheet Intangible assets Property, plant and equipment Current assets
FINANCIAL STATEMENTS 20 0 8 notes 65 notes to the balance sheet Group 2008 18. Inventories Raw materials and consumables Work i
66 notes FINANCIAL STATEMENTS 20 0 8 notes to the balance sheet 20. equity amounts in DKKm Group Share capital Hedging reserve
FINANCIAL STATEMENTS 20 0 8 notes 67 notes to the balance sheet 20. equity, cont’d Breakdown of the share capital: Class A Clas
68 notes FINANCIAL STATEMENTS 20 0 8 notes to the balance sheet 2008 21. Pension obligations, cont’d Recognition of the obligat
FINANCIAL STATEMENTS 20 0 8 notes 69 notes to the balance sheet 21. Pension obligations, cont’d assumptions used: Discount rate
70 notes FINANCIAL STATEMENTS 20 0 8 notes to the balance sheet Due within 1 to 5 years Due after 5 years amounts in DKKm Total
FINANCIAL STATEMENTS 20 0 8 notes 71 notes to the balance sheet Due within 1 to 5 years Due after 5 years amounts in DKKm Total
72 notes FINANCIAL STATEMENTS 20 0 8 notes to the balance sheet Group 2008 23. Government grants Government grants at 1 January
FINANCIAL STATEMENTS 20 0 8 notes 73 notes to the balance sheet Group 2008 24. Provisions Warranty commitments at 1 January Add
74 notes FINANCIAL STATEMENTS 20 0 8 supplementary notes Group 2008 26. Discontinued operations and assets held for sale Revenu
FINANCIAL STATEMENTS 20 0 8 notes 75 supplementary notes Group 2008 27. fee to the auditors KPMG Others total fee specification
76 notes FINANCIAL STATEMENTS 20 0 8 supplementary notes 30. financial risks General risk Changes in Hartmann’s profit/(loss) a
FINANCIAL STATEMENTS 20 0 8 notes 77 supplementary notes amounts in DKKm management of liquidity risk The Group’s short-term li
78 notes FINANCIAL STATEMENTS 20 0 8 supplementary notes amounts in DKKm 31. Derivative financial instruments At 31 December 20
FINANCIAL STATEMENTS 20 0 8 notes 79 supplementary notes 32. Related party transactions Group The related parties of Hartmann c
80 notes FINANCIAL STATEMENTS 20 0 8 supplementary notes 35. accounting policies dividends, balances, and realised and unrealis
FINANCIAL STATEMENTS 20 0 8 notes 81 supplementary notes and expenses, net. On recognition of foreign subsidiaries and associat
82 notes FINANCIAL STATEMENTS 20 0 8 supplementary notes Profit/(loss) from investments in associates in the consolidated finan
FINANCIAL STATEMENTS 20 0 8 notes 83 supplementary notes Property, plant and equipment Property, plant and equipment are measur
84 notes FINANCIAL STATEMENTS 20 0 8 supplementary notes The net realisable value of inventories is determined as the selling p
FINANCIAL STATEMENTS 20 0 8 notes 85 supplementary notes Provisions Provisions mainly consist of warranty obligations and restr
86 contact aDDRes s es FINANCIAL STATEMENTS 20 0 8 contact addresses on the Group’s website www.hartmann-packaging.com Producti
FINANCIAL STATEMENTS 20 0 8 DefInItIon s of fInancIal R atIos 87 Definitions of financial ratios net working capital (nwc) Inve
Brødrene Hartmann A/S Ørnegaardsvej 18 DK-2820 Gentofte Denmark tel: +45 45 97 00 00 fax: +45 45 97 00 01 e-mail: bh@hartmann-p
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Annual
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2 CONTE NTS MANAG EMENT R EPORT 20 0 8 Contents Management repo
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MANAG EMENT R EPORT
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4 INTRODuCTION MANAG EMENT R EPORT 20 0 8 The new Hartmann The
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MANAG EMENT R EPORT 20 0 8 INTRODuCTION 5 Core earnings in our
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6 GROu P PROFIlE MANAG EMENT R EPORT 20 0 8 In 2008, Hartmann m
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MANAG EMENT R EPORT 20 0 8 FINANCIAl HIGHlIGHTS AND R ATIOS 7 F
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8 STR ATEGy MANAG EMENT R EPORT 20 0 8 Strategy Hartmann’s over
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MANAG EMENT R EPORT 20 0 8 STR ATEGy 9 In 2009, the Group will
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10 STR ATEGy MANAG EMENT R EPORT 20 0 8 Phase 2: ’10 in 10’ act
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MANAG EMENT R EPORT
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12 GROu P DE vE lOPME NTS IN 20 0 8 MANAG EMENT R EPORT 20 0 8
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MANAG EMENT R EPORT 20 0 8 GROu P DE vElOPME NTS IN 20 0 8 13 T
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14 GROu P DE vE lOPME NTS IN 20 0 8 MANAG EMENT R EPORT 20 0 8
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MANAG EMENT R EPORT 20 0 8 GROu P DE vElOPME NTS IN 20 0 8 15 A
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16 OuTlOOK FOR 20 09 MANAG EMENT R EPORT 20 0 8 Outlook for 200
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MANAG EMENT R EPORT 20 0 8 OuTlOOK FOR 20 09 17 The expected im
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18 RI S K FACTORS MANAG EMENT R EPORT 20 0 8 Risk factors It is
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MANAG EMENT R EPORT 20 0 8 RI SK FACTORS 19 Product development
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20 RI S K FACTORS MANAG EMENT R EPORT 20 0 8 For example, Hartm
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MANAG EMENT R EPORT 2
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22 Bu S INES S DESCRIP TION EGG PACK AGING MANAG EMENT R EPORT
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MANAG EMENT R EPORT 20 0 8 B u S INES S DESCRIP TION EGG PACK A
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24 Bu S INES S DESCRIP TION EGG PACK AGING MANAG EMENT R EPORT
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MANAG EMENT R EPORT 20 0 8 B u S INES S DESCRIP TION INDu STRIA
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26 Su STAINAB lE DE vE lOPME NT MANAG EMENT R EPORT 20 0 8 Sust
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MANAG EMENT R EPORT 20 0 8 Su STAINAB lE DE vE lOPMENT 27 Hartm
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28 CORPOR ATE GOvERNANCE MANAG EMENT R EPORT 20 0 8 Corporate g
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MANAG EMENT R EPORT 20 0 8 CORPOR ATE GOvERNANCE 29 In January
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30 SHAREHOlDER INFORMATION MANAG EMENT R EPORT 20 0 8 Sharehold
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MANAG EMENT R EPORT 20 0 8 SHAREHOlDER INFORMATION 31 Hartmann’
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32 BOARD OF DIRECTORS AND E xECuTIvE BOARD MANAG EMENT R EPORT
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MANAG EMENT R EPORT 20 0 8 BOARD OF DIRECTORS AND E xECuTIvE BO
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34 MANAGE ME NT STATE MENT MANAG EMENT R EPORT 20 0 8 Managemen
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MANAG EMENT R EPORT 20 0 8
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36 CONTE NTS FINANCIAL STATEMENTS 20 0 8 Financial statements:
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FINANCIAL STATEMENTS
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38 FINANCIAl RE vIE W FINANCIAL STATEMENTS 20 0 8 Financial rev
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FINANCIAL STATEMENTS 20 0 8 FINANCIAl RE vIE W 39 activity due
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40 FINANCIAl RE vIE W FINANCIAL STATEMENTS 20 0 8 Equity and li
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FINANCIAL STATEMENTS 20
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42 Income state me nt FINANCIAL STATEMENTS 20 0 8 Income statem
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FINANCIAL STATEMENTS 20 0 8 statement of c ash flows 43 stateme
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44 Bal ance s hee t, as s e ts FINANCIAL STATEMENTS 20 0 8 Bala
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FINANCIAL STATEMENTS 20 0 8 Bal ance shee t, equ It y anD lIaB
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46 Income anD e XPe n s e FINANCIAL STATEMENTS 20 0 8 statement
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FINANCIAL STATEMENTS 20 0 8 PRImaRy seGme nts 47 segment inform
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48 conte nt FINANCIAL STATEMENTS 20 0 8 notes 1 2 3 4 5 6 7 8 9
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FINANCIAL STATEMENT
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50 notes FINANCIAL STATEMENTS 20 0 8 notes to the income statem
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FINANCIAL STATEMENTS 20 0 8 notes 51 notes to the income statem
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52 notes FINANCIAL STATEMENTS 20 0 8 notes to the income statem
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FINANCIAL STATEMENTS 20 0 8 notes 53 notes to the income statem
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54 notes FINANCIAL STATEMENTS 20 0 8 notes to the income statem
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FINANCIAL STATEMENTS 20 0 8 notes 55 notes to the income statem
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56 notes FINANCIAL STATEMENTS 20 0 8 notes to the income statem
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FINANCIAL STATEMENTS 20 0 8 notes 57 notes to the balance sheet
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58 notes FINANCIAL STATEMENTS 20 0 8 notes to the balance sheet
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FINANCIAL STATEMENTS 20 0 8 notes 59 notes to the balance sheet
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60 notes FINANCIAL STATEMENTS 20 0 8 notes to the balance sheet
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FINANCIAL STATEMENTS 20 0 8 notes 61 notes to the balance sheet
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62 notes FINANCIAL STATEMENTS 20 0 8 notes to the balance sheet
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FINANCIAL STATEMENTS 20 0 8 notes 63 notes to the balance sheet
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FINANCIAL STATEMENTS 20 0 8 notes 65 notes to the balance sheet
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66 notes FINANCIAL STATEMENTS 20 0 8 notes to the balance sheet
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FINANCIAL STATEMENTS 20 0 8 notes 67 notes to the balance sheet
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68 notes FINANCIAL STATEMENTS 20 0 8 notes to the balance sheet
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FINANCIAL STATEMENTS 20 0 8 notes 69 notes to the balance sheet
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FINANCIAL STATEMENTS 20 0 8 notes 71 notes to the balance sheet
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72 notes FINANCIAL STATEMENTS 20 0 8 notes to the balance sheet
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FINANCIAL STATEMENTS 20 0 8 notes 73 notes to the balance sheet
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74 notes FINANCIAL STATEMENTS 20 0 8 supplementary notes Group
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FINANCIAL STATEMENTS 20 0 8 notes 75 supplementary notes Group
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76 notes FINANCIAL STATEMENTS 20 0 8 supplementary notes 30. fi
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FINANCIAL STATEMENTS 20 0 8 notes 77 supplementary notes amount
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78 notes FINANCIAL STATEMENTS 20 0 8 supplementary notes amount
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FINANCIAL STATEMENTS 20 0 8 notes 79 supplementary notes 32. Re
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80 notes FINANCIAL STATEMENTS 20 0 8 supplementary notes 35. ac
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FINANCIAL STATEMENTS 20 0 8 notes 81 supplementary notes and ex
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82 notes FINANCIAL STATEMENTS 20 0 8 supplementary notes Profit
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FINANCIAL STATEMENTS 20 0 8 notes 83 supplementary notes Proper
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84 notes FINANCIAL STATEMENTS 20 0 8 supplementary notes The ne
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FINANCIAL STATEMENTS 20 0 8 notes 85 supplementary notes Provis
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86 contact aDDRes s es FINANCIAL STATEMENTS 20 0 8 contact addr
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FINANCIAL STATEMENTS 20 0 8 DefInItIon s of fInancIal R atIos 8
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Brødrene Hartmann A/S Ørnegaardsvej 18 DK-2820 Gentofte Denmark
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