CEO MESSAGE

Hero – Powered by Innovation

In 2008 Hero has been able to deliver another strong year. The excellent performance underlines the resilience and strength of the Group’s agenda: delivering organic growth and operating margins, being the best-in-class in terms of innovation and extending our international footprint.

Product innovation within the Group’s two core categories of Infant Nutrition and Fruit has been the key driver of our success, enabling us to enjoy high growth rates in our core markets. Our Global Technology Centres are spearheading our efforts to generate a continual flow of new product ideas and I am pleased to report that our pipelines for 2009 and 2010 are already full.

As the global economy plunges into unheard-of recession at the start of 2009, we believe that we are better placed than most to weather the storm that will inevitably come. The Group’s product portfolio is less exposed to economic downswings than many other consumer products: infant-nutrition products tend to be less discretionary and open to substitution than most other food products. In addition, our experience shows that jams and decoration products are also more resilient in economic downturns.

And so is the Group’s work force! I am proud to attribute our outstanding performance to the most valuable asset we have – our people. Our talented employees are the foundation of our business. Their knowledge, skills, insights, imagination and passion are an indispensable element of the Hero success model.

Stefan F. Heidenreich, CEO