Annual Report 09 - Viscofan

36Viscofan 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 resultscasings division as of December 2009 represented a new annual high of62.4MM.Corporate 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 sites2009 Results: CasingsFollowing the market growth seen in 2008, in 2009 the artificial casings market enjoyed a lower level of growthas a result of the global economic climate, marked by sharp inventory adjustments, the reining in of expansionprogrammes and specific difficulties in particular markets.Against this background, the Viscofan Group posted cumulative net revenue as of December 2009 of 490.1MM,up 6.9% on the same period the prior year. This growth was possible thanks to the Viscofan Group’s focus onvalue and the boosting of the average price of the main categories of artificial casings, especially those madefrom cellulose and collagen.sales in Spain to 20.8MM compared to the 13.2MM generated in 2008, despite the marked fall in the unitprice of electricity in Spain.The Viscofan Group enjoyed higher revenue across all the main geographic regions 7 , including:241.1MM, +6.2% compared to the same period the prior year.174.7MM.74.3MM.Excluding the impact of the change in exchange rates, cumulative revenue was up +5.8% on the prior year,slowing slightly in the last quarter of 2009 primarily as a result of the price increases applied in the second halfof the prior year and the weakening of the US dollar in the last quarter 2009 (fall in USD/EUR exchange rate:12% in fourth quarter 2009 compared to fourth quarter 2008).The main raw materials used in the production of artificial casings (cellulose and collagen skins) hit unit pricehighs in the course of 2009. Notwithstanding this, the ongoing production improvements completed in 2009with a view to improving production throughput and productivity made it possible to achieve significant input104.5MM.As a result of the improvements in the production process, the automation and the synergies resulting from theworkforce restructuring in the Be ONE strategic plan, the casings division had a workforce of 3,552 at the end6Financial leverage = Net debt / Equity7Revenue by origin of sales