ANNUAL REPORT 2011 A.S. CRÉATION TAPETEN AG

THE SHARE AND OUR SHAREHOLDERS
66
When assessing the share price, the uncertainty
about the outcome of the anti-trust proceedings,
which may take very long, and the marked
deterioration in the earnings position of
A.S. Création in 2011 must certainly be taken
into account. As outlined in the Group management
report, the bottom line in the fiscal year
2011 was adversely affected not only by the
increased commodity and energy costs but also
by the start-up losses incurred in conjunction
with the start-up of production and distribution
structures in Russia. The Managing Board is
convinced that the start-up of wallpaper
production in Russia is an important project
to secure the future of A.S. Création, which is
why the company must cope with the temporary
decline in earnings, which is also taken
into account in the Group’s budgets and projections.
The Managing Board therefore believes
that the present share price does not appropriately
reflect the financial strength and the
future outlook of A.S. Création.
Changes in the shareholder structure
As outlined above, material changes in the
shareholder structure of A.S. Création occurred
in 2011, as both Royce & Associates LLC and
BNP Paribas Investment Partners SA divested
their interests in A.S. Création. The Managing
Board regrets these decisions, as both companies
had been shareholders of A.S. Création for
several years, which means that A.S. Création
has lost two long-term investors. Given that
they have been succeeded by another long-term
investor, Lins Wallpaper Limited, the Managing
Board believes that the shareholder structure
of A.S. Création remains stable. According to the
Managing Board’s knowledge, the shareholder
structure was as follows on the balance sheet
date:
The above changes in the shareholder structure
led to a marked increase in the trading volume.
While 2,635 A.S. Création shares were traded
on a daily average in 2010, this number increased
to 3,851 in 2011.