Growth continues in the Asia Pacific region

Revenue in the Asia Pacific region increased by 6.6% to €2,746 million (previous year: €2,576 million). Changes in the euro exchange rate gave rise to negative currency effects in the amount of €111 million. Although the rate of growth in the region slowed mainly in the second half of 2008, we posted organic revenue growth of 9.1%. Domestic shipment volumes continued to rise in this region.

Double-digit revenue growth in the emerging markets

In the EEMEA region (Eastern Europe, the Middle East and Africa), revenue increased by 15.2% to €1,176 million (previous year: €1,021 million). This translates into organic growth of 22.3% after factoring in the negative currency effects of €73 million. Once again, we achieved the highest growth rates in all of our product lines in the Middle East and Russia.

Realignment of US business impacts earnings

EBIT declined by €1,872 million in 2008, from € –272 million in the previous year to € –2,144 million. The drop in EBIT was mainly due to restructuring activities, which led to non-recurring expenses of €2,358 million. Most of these expenses were related to the realignment of our US business, which accounted for €2,096 million of non-recurring expenses. Losses in the US continued to rise in 2008. Outside the US, our earnings from operating activities and after adjustment for restructuring costs were satisfactory. The effect of a declining economy was mainly felt in the last quarter of 2008. The unfavourable economic trend led to lower volumes, which we were able to offset by implementing several cost reduction initiatives. Operating cash flow, which includes the cash outflow for restructuring activities and the losses from the US business, fell from €1,001 million to €263 million.

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