Press release

- Results 3rd quarter 2010
- RSG will consult bidder on the progress of the bidding process
- Management change

Background
Roto Smeets Group (RSG) has no obligation under the periodic publication liability to make public the figures for the third quarter 2010. The reason for making these figures public now is that they were prepared as part of the bid documents in the context of the planned public bid by Printing Holding BV, and must be regarded as sensitive in having a possible effect on the stock price.

Results 3rd quarter 2010
Partly as a result of the reduced capacity at Roto Smeets Etten, the closure of Roto Smeets Utrecht in June 2010 and the continuing pressure on prices, both turnover and added value have fallen below the 2009 level.

Up to and including the third quarter, the cumulative labour costs have fallen by more than 13% compared to the same period in 2009, thanks to the reorganisation. Other costs fell by more than 15% compared to the same period.

Thanks to the radical reorganisation, EBITDA on a normalised, comparable basis, has improved to € 11.8 mln (2009 € 7.8 mln). There is nevertheless some delay with which the EBITDA is improving, caused by continuing market pressure on prices and completion of the closure operation at Roto Smeets Utrecht.

According to IFRS regulations, the company as a result of an impairment analysis, adopted an impairment loss of € 16.4 million. After processing this depreciation at the end of the third quarter, the company still has a solid balance sheet with a solvency ratio of approximately ca 35%. Well above the bank's prescribed ratio of 30%.

Public bid progress
RSG will shortly enter into talks with Printing Holding B.V. to inquire whether developments at RSG have any consequences for the bid Printing Holding B.V. has announced on the common stock of RSG, and if so, what they may be.

Management
The Supervisory Board has found its Chairman, Mr. R.A.J.  Huyzer, prepared to fill the post of CEO for the time being. Under his leadership, a number of campaigns are being implemented to further improve the group’s efficiency and decisiveness.

During this period Mr. Huyzer will not sit on the Supervisory Board. Another member of the Supervisory Board, Mr. R. Blom, will Chair the Board for the time being.

Roto Smeets Group NV
Management Board

Deventer, 18 February 2011

Third quarter results 2010 Roto Smeets Group, (PDF 334 KB)