KOMPAN reaches a billion turnover

• Turnover growth of 11 percent to reach 1,087 million DKK in spite of unfavourable currency impact
• Operating profit/(loss) before amortisations (EBITA) amounted to 139 million DKK (rise of 16 percent)
• Operating profit/(loss) (EBIT) amounted to 131 million DKK (rise of 18 percent)
• Profit after interests and tax amounted to 61 million DKK (rise of 11 percent)
• Continued favorable development in 2008 with turnover growth and increasing market shares

Play equipment supplier KOMPAN experienced a strong 2007 with a sales prosperity of 11 percent, so that the company reached a billion turnover for the first time. At the same time the profit performance has also kept pace so we are dealing with a record result. Operating profit/(loss) (EBIT) rose 18 percent to reach 131 million DKK and profit after tax rose 11 percent to reach 61 million DKK, as it appears from the annual report 2007, which is released today.

‘We have increased both top and bottom line. And the fact that this even takes place in a year where we have relocated the entire production to the Czech Republic and have worked on incorporating Swedish Slottsbro, which we acquired in the middle of the year, actually makes me very proud’, says KOMPAN’s CEO Carl Henrik Jeppesen. After 7 years as chief executive in the company, Carl Henrik Jeppesen has just decided that it is time to pass on the baton.

As new CEO, the board has appointed Connie Astrup-Larsen, who will take over during the summer.

For KOMPAN the progress has been especially large in the Asia/Pacific region with a turnover growth in the size of almost 20 percent in 2007, while the European main market has grown 12 percent. The North American market has grown 12 percent in USD, but due to the massive drop in the dollar exchange rate the growth in Danish kroner is only 2 percent.

‘We have grown well in all the important regions, which is very satisfactory. It reveals that we are able to increase the market and gain market shares, which proofs that our innovation strategy works’, says Carl Henrik Jeppesen, who expects the positive development to continue in 2008.

In the Asia/Pacific region the expectations of continued progress is supported by the acquisition of the Australian company Megatoy in January. With the acquisition, KOMPAN has been established as the obvious largest player at the Australian market.

In 2008 KOMPAN intends to launch a number of exciting and innovative product news. Thus, the creative line continues, which resulted in the launch of KOMPAN STORY MAKERS for pre-school children at the end of 2007. Subsequently, KOMPAN STORY MAKERS received the prestigious JANUS design award. This year KOMPAN expects to launch more products in the STORY MAKERS line. Furthermore, there will be launched a number of exciting and innovative product news – among others an exciting series of climbing walls with the trademark KOMPAN BLOQX, outdoor fitness products for all ages, and not least KOMPAN’s electronic interactive playground products, KOMPAN ICON.

‘KOMPAN has always been engaged in the satisfaction of children’s needs and requests for play and physical activities through unique products, based on a combination of creative design, health, and business generation. The new products in 2008, including the future launch of an entire new product line combining play equipment with computer technology, constitute a good platform for future growth and profit performance’, states Carl Henrik Jeppesen.

Further information relating to Kompan can be found by visiting www.kompan.com

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