Letter to our Shareholders

The year 2008 has seen historic changes in the fundamentals by which business is done worldwide. The crisis, which started in the real estate market in the USA, has spread very quickly to the “real economy”. All major economies suddenly entered into recession. Companies considered as strong, and capable of weathering any storm, ran into difficulties. The high uncertainty created has affected the behavior of the Group’s customers. Indeed, since September 2008, all products in the extensive Bobst Group offering have been subject to a sudden decrease in order bookings, in all geographic regions of the world. In previous slowdown periods, the evolution of the various regional economies and the width of the product range dampened the decrease in the Group’s activity. This crisis will undoubtedly influence the way economies will function in the future. However, today, it is still difficult to anticipate these changes. The positioning of Bobst Group is resting on very solid fundamentals. The basic role of packaging, which is to protect, to transport, and to sell goods, will remain. Certainly, environmental considerations will continue to influence the packaging of the future. The Group is well armed to participate in this transformation and will undoubtedly emerge from this recession stronger than it entered, and more so than the competition. The turnover of the Group has decreased by 6.4% to reach CHF 1'633 million as a result of the decrease in volume (-7.1%) and the negative influence of the evolution of exchange rates (-4.6%), partially compensated by the acquisition of the German company Fischer & Krecke. This transaction was strategically important to continue building the strong presence of the Group in the flexible materials industry. The integration of this new member within the Group was successfully implemented within the costs budgeted. The growth strategy adopted entering the flexible materials industry clearly confirmed itself in 2008. The most profitable Business Area, Folding Carton, has experienced the biggest decrease in turnover, therefore significantly changing the product mix in the Group. Due mainly to this, the Group’s overall profitability has decreased to a net profit in 2008 of CHF 55.9 million (2007: CHF 129.8 million). Reacting very quickly to the dramatic changes experienced in the fall of 2008, management designed and immediately started implementing a set of actions. On the one hand, costs have to be significantly reduced. On the other hand, the key competences among the personnel of the Group have to be maintained in order to continue to serve the Group’s customers, and to be able to leverage these competences as a differentiating factor compared to the competition. The market evolution in the months to come will show how this balance between cost reduction and maintaining competences can be managed. Mid- to long-term, the well defined strategy recently adopted (see pages 14-17) will be actively pursued. The severe economic crisis will however slow down the speed of implementation and reposition the adopted financial targets (see page 16) to a later date than initially planned. For example, the project to consolidate all the activities in the Lausanne area onto one unique site will be re-evaluated in due course and may have to be delayed if appropriate. 2009 will undoubtedly be a very challenging and difficult year for the Group. Management already announced in its December 2008 conference for financial analysts and the media that if order entries do not improve in the first quarter of 2009, the probability of a loss in the first half of the year is quite high. The second half of the year will also be challenging. Even if the level of bookings improves in the second half of 2009, the effect on income will only take place in 2010. The persistent economic situation and the costs for the Group to adapt itself to the estimated mid- to long-term evolution will result in a loss for the full year 2009. The “conservative financial management“ of the balance sheet over the past years (equity greater than 40% of total balance sheet) will allow the Group to successfully navigate through the storm. Others are not in such a situation and this will undoubtedly reconfigure the industry. At the Annual General Meeting of Shareholders on May 6, 2009, the Board of Directors will recommend no dividend payment, taking into account the special payout to shareholders of CHF 250 million carried out in the summer of 2008. This recommendation has to be seen in light of the current economic uncertainties. Mr. Andreas Koopmann, Chief Executive Officer since 1995, will leave the Group after the Annual General Meeting of Shareholders on May 6, 2009. Due to differences of opinion regarding the timing of implementation of the succession at the head of Bobst Group, Mr. Koopmann expressed the wish to step back from his function. This request has been accepted by the Board. Mr. Koopmann joined the Group in 1982 and served in various functions to become Chief Executive Officer in 1995. At the helm of the Group, he has consolidated its position as a leading global supplier of packaging equipment which, in turn, has become the industry reference. The Board of Directors expresses its appreciation for Mr. Koopmann’s excellent long-standing services and loyalty to the Company. The Board also thanks him for his commitment and important contributions to the Group and wishes him only the best for the future. Mr. Jean-Pascal Bobst, member of the Group Executive Committee, will take over the responsibility as Chief Executive Officer, effective from May 7, 2009. Mr. Bobst, mechanical engineer HES, worked for several years in Berlin. He joined Bobst Group in 1994 and held various management positions in the United States and in Switzerland. On March 1, 2006, he became a member of the Group Executive Committee responsible for Technology, Supply, Production and Logistics. Mr. Bobst is Chairman of the Board of Directors of JBF Finance SA, the main shareholder of Bobst Group SA. The Board wishes Mr. Bobst an excellent start and every success in his new responsibility. Mr. Luc Bonnard, who became a member of the Board in 1987 and served many years as Vice-Chairman, will resign from the Board as of the date of the Annual General Meeting of Shareholders 2009. Mr. Bonnard’s long and fruitful activity in the Board and his commitment to the Group and to JBF Finance SA and its shareholder families were outstanding. The Board regrets his decision and thanks him for his invaluable contributions over the years. The mandates of Messrs Hans-Rudolf Widmer and Michael W.O. Garrett are coming to an end. The two Gentlemen have agreed to present themselves for re-election. The Board of Directors will also propose one new member: Mr. Alain Guttmann, member of various Boards, among which JBF Finance SA. The curriculum vitae of Mr. Guttmann will be included in the invitation to the Annual General Meeting of Shareholders and will be presented at this meeting. The challenging times created by the economic situation require extremely high flexibility, commitment and motivation from our employees. We know that we can continue to count on their support. The Board of Directors and the Group Executive Committee express their warmest thanks for the hard work done during 2008 and for the understanding the employees are showing during these difficult times.

Charles Gebhard Chairman of the Board Andreas Koopmann Chief Executive Officer