Annual Report 09 - Viscofan

34Viscofan TodayLetter from the ChairmanViscofan WorldwideMilestones of Company historyA guide to Viscofan productsGroup structureSignificant shareholdingsBoard of DirectorsOrganisational ChartCorporate StrategyStrategic vectorsCreation of value: market and strategyBusiness performance2009 highlights2009 financial resultsCorporate responsibilityGood governance practicesViscofan in the stock marketHuman resourcesViscofan and customers, a commitmentto quality, service and safety food.Research, development and innovationViscofan and the sustainabilityViscofan S.A. and subsidiariesNotes to the consolidated financial statementsConsolidated Director’s ReportViscofan, S.A.Notes to the Viscofan S.A. financial statementsViscofan S.A Directors’ ReportAnnual corporate governance reportDirectory of Viscofan sitesOver the course of 2009 the Group’s production base continued to improve as part of the Be ONE strategy,through automation programmes, best practice implementation and workforce restructuring, which saw 196Group’s workforce at end 2008).This effort was particularly marked in last quarter 2009, when personnel expenses amounted to 35.5 million(17.3% up compared to last quarter 2008), as a result of the costs associated with staff restructuring (indemnities,voluntary redundancies, early retirements, etc.), primarily in Spain, the United States and Germany. This quarter1.5MM associated with the cost of 20 redundancies in GermanyOver the year as a whole, personnel expenses amounted to 134.0MM, 4.5% up on 2008 primarily as a resultof the aforementioned restructuring costs.At 164.8MM, cumulative Other operating expenses as of December 2009 were up 5.3% compared to thoserecognised over the same period the prior year. Cost reduction and control initiatives, across both the casingsand the vegetable food divisions, partly offset the rise in energy expenses (+7.0% compared to 2008) that mainlyThe revenue growth and the production improvements implemented resulted in a 3.0 p.p. improvement in the2009 EBITDA margin, which stood at 22.1%, despite a worse performance of the vegetable food business.As a result, cumulative EBITDA as of December 2009 amounted to 129.0MM, 22.5% up on FY 2008. Excludingthe in Germany, EBITDA amounted to 130.6MM (23.6% up compared to 2008).EBIT 5 was 34.5% up on 2008 at 91.3MM, driven by the aforementioned improvement in EBITDA and themaintenance of depreciation and amortisation (37.7 million; +0.7% compared to 2008).5.3MM was 30.2% down thanks to lower financial expenses as a result of the lowerdebt levels and the lower borrowing cost in a year marked by reduced credit access.5EBIT = EBITDA – Amortization and depreciation