Grønningen 25
DK-1270 Copenhagen K
Denmark
Tel. +45 33 63 09 00
Fax +45 33 63 09 29

25 February 2011

Satisfactory full-year performance by the M. Goldschmidt Group

M. Goldschmidt Holding A/S, an investment company owned personally by Mikael Goldschmidt, whose primary activities comprise real property, securities and businesses (mainly retail trade), has released its annual report for the 2009/10 financial year. The financial highlights are as follows:

    • Satisfactory full-year profit of DKK 111,726,000 before tax;
    • Shareholders' equity of DKK 1,950,000,000;
    • Total assets of DKK 5,082,000,000;
    • Equity ratio of 38.4%.

  • The property portfolio grew considerably, primarily through the acquisition of properties held for trade. All property acquisitions were completed in accordance with the strategy defined, and the company expects to add significant value to the properties acquired.

  • The property portfolio produced strong operating results in line with expectations.

  • The Group generated a return of 12.3% on its equity investments. The equity market exposure was reduced by DKK 200 million during the financial year, and after the end of the financial year it was further reduced to DKK 100 million.

  • The Group generated a return of 3.1% on its large bond portfolio. The bond portfolio was increased during the financial year for reasons of prudence and further increased after the end of the financial year in step with the reduction of the equity portfolio.

  • Imerco Holding A/S, which is the Group's largest single, non-property investment, developed very favourably, generating revenue of DKK 1.1 billion and EBITDA of DKK 60 million. This marked Imerco's strongest financial performance ever and an improvement of DKK 107,000,000 relative to the 2008/09 financial year. This makes Imerco Denmark's best performing and most robustly capitalised retail chain within houseware products with total shareholders' equity of DKK 710,411,000.

  • M. Goldschmidt Holding A/S expects to record a profit in the 2010/2011 financial year. All significant activities of the Group are experiencing positive developments and were off to a good start to the new financial year.

Highlights of 2009/10

M. Goldschmidt Holding A/S generated a profit before tax of DKK 111,726,000 in the 2009/10 financial year, which covered the period 1 October 2009 – 30 September 2010.

The M. Goldschmidt Group's core business area is investment in properties in Denmark held for investment and trading purposes. In addition, the Group has invested in a few development properties. The Group's overall property portfolio covers 217,717 sqm including building rights.

The predominant part of the investment portfolio is located in central Copenhagen in the area around Grønningen, Store Kongensgade, Poul Ankers Gade, Jens Kofods Gade and Hammerensgade. The rest of the property portfolio is characterised as properties held for trade.

The Group's strategy remains to acquire properties possessing rental, operational and constructional potential with a view to solving these issues and optimising the properties' operations and generating added value. It is the intention that all properties not included in the investment portfolio will be sold to long-term property investors upon completion of development.

The property portfolio grew considerably during the financial year. Properties acquired during the year included: Borgergade 28 (Copenhagen K), Vester Voldgade 7-9 (Copenhagen V), Sankt Peders Stræde 49 (Copenhagen V), Gl. Kongevej 170 (Frederiksberg C), Hellerupvej 10 (Hellerup), Klosterparken: Klokkehøjen 1-41, 2-20, Klokkehøjen 43-107, 22-64, Buegangen 1-37, 2-44, Buegangen 39-151, 46-102, Løngangen 1-65, 2-54, Løngangen 56-74, 67-139 (Ringsted), Søndergaards Alle 53-57 (Måløv), and Store Kongensgade 118/Hammerensgade 2 (Copenhagen K). The latter acquisition forms part of the Group's investment portfolio.

The Group's investments in development properties primarily include an 83,000 sqm site in central Hillerød. A framework local plan for the area was adopted in the summer of 2009, which facilitates development, primarily for retail trade purposes.

In addition to the activities mentioned above, Mikael Goldschmidt personally carries on commercial activities comprising 25 residential and commercial properties that are not included in the above-mentioned results/review.

Significant events after the balance sheet date

After the end of the financial year, M. Goldschmidt Holding has sold a large portfolio of properties to Jeudan A/S at a price of DKK 459 million. The sale was completed on satisfactory terms and in line of the plans defined. The company expects to re-invest the proceeds from the sale in the Copenhagen property market.

The company has made additional acquisitions after the end of the financial year. These include the property "Den Kongelige Mønt" (The Royal Danish Mint) in central Copenhagen, which will be converted primarily into youth residences.

Moreover, the Group has acquired an additional student flat complex in Holbæk near the Group's existing student flat complex, Goldschmidt Kollegiet, which is fully let and currently has 80 applicants on the waiting list. The new student flat complex will be named M. Goldschmidt Kollegiet Slotshaven.

The most recent acquisition is the second-largest aircraft hangar at Copenhagen Airport, the former Sterling Hangar. The hangar is let to Star Air, which is part of the AP Moller Maersk Group, and Norwegian, among others.

Outlook for the 2010/11 financial year

M. Goldschmidt Holding A/S expects to generate a profit in the 2010/11 financial year, which covers the period 1 October 2010 – 30 September 2011.

During 2011 and 2012, the Group expects to complete several property and business divestments at a profit.

For additional information, please contact

Owner and CEO Mikael Goldschmidt, phone +45 33 63 09 00

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