Jebsen & Jessen Group of Companies South East Asia

Around this time last year, we expected significant head winds ahead. The global economies were in a melt down. The crystal ball was hazier than ever before! While the epic-centre of the storm was not South East Asia, our region as well as our activities were not expected to be insulated from the rest of the world.

Very quickly we had to shift our focus from growth to defending market share and ensuring a degree of profitability. Adopting a prudent approach, we focused on cost management while continuing to exploit available opportunities. Each and every employee of the Group contributed by accepting a wage freeze and supported the management in ensuring a right balance between revenues, income and our operating costs.

As the year evolved, we experienced a general contraction of demand resulting in a decrease in order intake and sales. We now are coming to the end of the year and expect that we would close the year with a drop in order intake of an average 18 per cent and reduction in the Group sales of approximately 20 per cent compared to the prior year.

Despite the contraction in demand we expect the profitability for the Group to remain at healthy levels. Considering that 2008 was a record year in the Group’s history, The Executive Board considers our performance as satisfactory given the adverse business climate.

Looking ahead, there is a general improvement in market sentiments and a consensus that the worst may be over and we could look forward to the coming year with cautious optimism. While the sentiments are turning positive, many uncertainties continue to loom ahead and it will be a while before we can conclude that the crisis is over and we could return to the growth trajectory experienced prior to the onset of the crisis.

The Group’s foundations are strong. Its business platform is aligned to the market needs and its activities rank amongst market leaders. We are well poised to benefit from the improved market sentiments. The Executive Board wishes to express its sincere appreciation to each and every employee for their unreserved support, dedication and individual and collective contribution during the course of a rather challenging year. Our best wishes to you and your families for the year ahead.

Manoj Beri & Heine Askaer-Jensen