Growth strategy and capital structure addressed at Nutreco AGM
by Suzi Fraser
03/29/2007

Growth strategy and capital structure addressed at Nutreco AGM

Nutreco announced that it is is fully focused on growth, after completing the repositioning phase of the "Rebalancing for Growth" strategy. Nutreco's focus is on autonomous growth as well as on midsized and larger acquisitions in growth markets and take-over targets that will contribute to the consolidation of existing market positions.

Nutreco also aims to optimize its capital structure. Nutreco Holding N.V. will propose a repayment of approximately EUR 170 million to holders of ordinary shares at the Annual General Meeting of shareholders (AGM) of 26 April 2007.

A repayment of EUR 5 per issued and outstanding ordinary share will be paid to the shareholders in August 2007, by repayment in cash of EUR 5 in share capital. The date in August shall be announced 8 days in advance via a press release. This repayment is subject to approval of shareholders and conditional upon all formalities relating to the increase and subsequent reduction of capital and the completion of amendments of the articles of association having been completed. This repayment will not be subject to dividend withholding tax.

In addition, Nutreco will start a buy back program of approximately EUR 15 million to cover share plans and future stock dividend. The buy back of shares, through a mandated bank, will commence after the AGM and will be implemented gradually.

Nutreco's strong financial position provides an excellent basis to focus on growth by means of acquisitions in animal nutrition and fish feed. An analysis of acquisition scenarios combined with the preferred capital structure indicates that there is sufficient financial scope for larger acquisitions, while simultaneously optimising Nutreco's capital structure by the proposed payment to shareholders and the buy back of shares.

Nutreco believes that the capital structure should meet both a net debt to equity ratio of 100% and a net debt of maximum three times EBITDA (earnings before interest, tax, depreciation and amortisation).

In the past 2 years, Nutreco has already acquired feed specialities businesses in Japan, Mexico, Russia, China, India and the Netherlands. In Brazil, Nutreco established a new feed specialities production facility.

In February 2007, Nutreco announced the takeover of BASF's premix businesses in Poland, Italy, USA, UK, Mexico, Guatemala, China and Indonesia. Nutreco expects to acquire more premix, speciality feed and fish feed businesses.