Fit for the future: Significant rise in sales and extensive investments.

Revenue growth of 18.6 percent to 332.6 mn Euro (2009: 280.5 mn Euro) and an investment volume of 20.9 mn Euros – the Thimm Group can look back with pride on a very positive 2010 fiscal year. Focal points of the investment included the extension of printing capabilities, expansion of capacities at the German locations as well as further internationalisation of the business. The equity ratio for the group stood at a strong 50.5 percent. Headcount rose by 12.1 percent to 1,748 employees (2009: 1,599). That figure included 99 apprentices spread out throughout the group's locations in Germany (2009:91). Mathias Schliep, managing director: "We've met and exceed our objectives and plans for 2010 and have further improved our economy situation. This has allowed us to further expand our position as one of the leading family-owned companies in the German packaging industry."

The focus on high-quality printed packaging and promotional displays brought very strong growth to the packaging and display business areas. Thimm Verpackung remains the largest revenue engine in the corporate group (69 percent), increasing its sale per square metre by 11.6 percent parallel to revenue growth of 13.6 percent. Thimm Display produced a similarly strong performance, with an impressive sales jump of 9.3 percent.

Thimm Schertler Verpackungssysteme experienced an almost explosive 44.1 percent bump in revenues, especially from its export business. These results can be attributed in particular to solutions for customers in the automobile and automotive supply industry, tool makers, the solar industry and electrical and medical device manufacturers. The company was an early adopter of packaging systems composed of various material combinations and has benefited for years from the positive trends in this consulting-intense market segment. The business area has grown in the last decade into the Thimm Group's second largest, with 24 percent of overall revenues at present.

Thimm Consulting, a supplemental yet strategic element within the corporate group, produced strong results comparable with those from the prior year.

The locations outside German also made a very strong contribution to the corporate group's overall 2010 results. Sales in the Czech Republic climbed at a rate well into the double digits. The processing plant in Romania extended both its revenues and market share.

Investments

The Thimm Group invested 20.9 mn Euros in the past year. One focal point was the ongoing expansion of its printing competency. This includes the installation of a new offset printing line as well as a 50 percent share in Christiansen Print in Ilsenburg, Germany. For Thimm, the buy-in represents an important step toward achieving a unique technology mix for printing of packaging and displays that covers the entire range from digital and offset printing to various flexographic print technologies. At the same time, Thimm has also established a partnership with Austria's ACE Packaging to expand its multi-material packaging systems business outside Germany. On a related note, the group invested in new equipment for manufacturing this kind of packaging in 2010. Another focal point: consistent modernisation and capacity expansion at corrugated board factories. The expansion of properties and buildings at various group locations complete the investment portfolio for 2010. Over the past five years, the group has invested over 80 mn Euros.

Outlook

With revenue growth of 23 percent in the first quarter, the Thimm Group has set off 2011 positive as well. Jens Fokuhl, managing director for the Thimm Group: "It must be noted that these positive business trends come at a time of massive, highly concerning cost increases. Waste paper is at the top of that list." Yet other raw materials, including glue and printing inks, will also become more and more expensive. There will be higher energy prices and latent rises in logistics and personnel costs as well. Given these challenges and a competitive environment that is expected to be difficult in general, the group's executive team is forecasting slightly lower results for 2011. "Despite or perhaps because of these prevailing circumstances, the Thimm Group plans on continuing its extensive investment programme in 2011, at levels of around 20.6 mn Euro," Fokuhl says confidently. Given its years of extensive investments, clear strategic orientation and strong base of employees, the Thimm Group sees itself as well positioned to achieve its objectives and well equipped for further successful growth as a family-run company.