Neumarkt, August 19, 2010 – With the presentation of the second-quarter results for 2010, SDAX-listed Pfleiderer AG (ISIN DE 996764749) is able to confirm the positive trends already documented in the first quarter of the year. Revenue rose by 7.3 percent to 381.4 million euros from the first to the second quarter. Revenue posted for the first half of this year of 737.0 million euros is 6.4 percent higher than in the same period of 2009. Half of this increase resulted from exchange-rate effects and the other half was caused by increased unit sales and higher prices. The proportion of revenue generated outside Germany was 71.8 percent, compared with 71.5 percent in the first half of last year.

Due to the increase in material expenses in relation to revenue by 5.2 percentage points to 56.8 percent, first-half gross profit decreased from 181.7 million euros to 157.8 million euros. Compared with the first half of last year, the gross margin fell to 21.4 percent. Comparing the second quarter of 2010 with the first, however, Pfleiderer improved its gross margin by one percentage point, confirming the positive trend. Other operating income of 6.3 million euros includes insurance compensation, share-price gains and the reversal of impairments of trade receivables. EBITDA for the first half of 2010 decreased to 53.7 million euros, from 79.1 million euros for the first half of last year. The EBITDA margin for the reporting period was thus 7.2 percent, compared with 11.4 percent a year ago. Positive exchange-rate effects, in particular relating to the Polish zloty and the Canadian dollar, accounted for 4.1 million euros of EBITDA. EBIT of minus 6.5 million euros was lower than the prior-year figure (22.6 million euros). Depreciation and amortization amounted to 60.2 million euros (H1 2009: 56.5 million euros).

Quarterly development demonstrates upward trend

The comparison of second-quarter results is much more positive and provides more evidence of the generally positive trend. In the second quarter of 2010, the Pfleiderer Group achieved a strong 16.1% increase in EBITDA to 31.5 million euros, compared with 26.4 million euros in the prior-year quarter. Second-quarter EBIT of minus 0.4 million euros is the same as the prior-year level.

The net financial expense for the first half of 2010 amounts to minus 14.5 million euros, compared with minus 26.3 million euros in the prior-year period. This year’s figure includes interest expense of 6.1 million euros for the recognition of accrued transaction costs for the Group’s refinancing. Other financial income of 24.7 million euros primarily comprises income from the translation into euros on the balance sheet date of financial items denominated in foreign currencies.

The result of continuing operations before taxes amounts to a loss of 21.0 million euros, compared with a loss of 3.7 million euros for the first half of last year. In the first half of the year, a deferred tax asset was recognized, which led to an overall tax benefit of 3.1 million euros. Due to payments of taxes for prior periods, discontinued operations contributed a loss of 1.0 million euros to the overall loss for the period of 18.9 million euros. Of that amount, 1.0 million euros is attributable to minority interests. The statement of income also includes the claims of hybrid bondholders of 9.2 million euros; this amount was not paid out but was recognized as a liability in the balance sheet.

A loss of 27.1 million euros is therefore attributable to the shareholders of Pfleiderer AG, compared with a loss of 2.8 million euros for the second quarter of 2009. This results in a basic loss per share from continuing activities of 45 euro cents, compared with a loss of 5 euro cents for the prior-year period.

“In all our markets, except for the laminate business in North America, we can see an upward trend. The continuation of this positive development should indicate that we have broken the downward trend. This is the result of the joint efforts of our entire staff, to whom I am very grateful. As previously announced, our prime goal now is to further improve our gross margin and reduce our debt substantially by 350 million euros in the coming years. In order to compensate for the high raw material costs, we will continue working to improve our cost structures and increase our production efficiency. There is still some work ahead of us in this regard,” commented Hans H. Overdiek, Chairman of the Executive Board (CEO) of Pfleiderer AG, on the company’s latest figures.

Western and Eastern Europe with positive developments

The development of the regions in which Pfleiderer operates – Western Europe, Eastern Europe and North America – mainly reflects the economic situation of the various markets. In Eastern Europe, both unit sales and prices increased significantly, so the earnings situation turned positive in the second quarter. In Western Europe, prices of raw panels increased but there is still scope to catch up for surface-finished panels. However, prices of surface-finished panels had fallen to a much lower extent during the recession. Volume growth in Western Europe was concentrated mainly on surface-finished panels. The development in North America was more disparate: Whereas panel volumes increased significantly, unit sales of laminate flooring declined. Both product groups had to contend with falling prices, partially offset by falling raw-material costs.

Cash flow positive once again

In the first half of 2010, the net cash inflow from operating activities amounted to 9.2 million euros, compared with a net cash outflow of 54.0 million euros in the first half of last year. This cash inflow is mainly due to depreciation of 57.2 million euros and the increase in current liabilities of 40.6 million euros. There were opposing effects primarily from the negative EBIT and the increases in inventories and receivables. The Group’s net debt increased compared with the end of 2009 by 109.2 million euros to 963.4 million euros, primarily due to exchange-rate effects and investments. The ratio of net debt to equity (gearing) increased from 135.2 percent to 140.2 percent.

Capital expenditure including advance payments in the first half of 2010 fell compared with the prior-year period by 26.1 percent to 45.7 million euros. Of that total, 9.0 million euros was invested in the Western Europe region. In North America, 29.2 million euros was invested, most of which was for the completion of the MDF plant in Moncure, North Carolina. A total of 7.3 million euros was invested in Eastern Europe.

At the end of the reporting period the number of employees amounted to 5,579 as compared to 5.620 a year earlier. While the number of employees in North America increased by 7.9% due to the start of production of the MDF plant transferred to Moncure, there was a reduction of 2.0 percent in Eastern Europe as a result of cost-cutting actions and the number of employees in Western Europe decreased by 3.2 percent.

For July and August, Pfleiderer anticipates somewhat weaker business for seasonal reasons, before the typical autumn revival commences in September. Pfleiderer assumes that the second half of the year will be generally stronger than the first half. It is anticipated that the Group will post full-year revenue of just below 1.5 billion euros. Notwithstanding the overall positive development, the Company still expects a net loss. A further sustained improvement of the earnings situation is expected for 2011.

Pfleiderer Group: key figures at June 30, 2010

(according to IFRS)

Contact persons:

PFLEIDERER AG, Neumarkt
Fabian Schiffer
Vice President Corporate Communciations
Tel.: + 49 (0)9181 / 28 - 8491
Fax: + 49 (0)9181 / 28 - 606
E-Mail: fabian.schiffer@pfleiderer.com

Lothar Sindel
Vice President Investor Relations
Tel.: + 49 (0)9181 - 28-8491
Fax: + 49 (0)9181 - 28-606
E-Mail: lothar.sindel@pfleiderer.com

Pfleiderer has now been nominated for the highest official German design award four times within just two years – following a nomination for each of the subsidiaries Thermopal and Duropal last year. “We show the way in the market with our innovations and design expertise. This is demonstrated by our numerous nominations for the German Design Prize,” stated Michael Wolff, Managing Director of Business Center Western Europe.

Sponsored by the Federal Ministry for the Economy and organized by the Design Council, the German Design Prize has been awarded for more than 40 years for international top performance in the area of communication and product design. The examples of outstanding product and communications design submitted by the economics ministries of the federal states will be assessed by an independent jury on August 23 and 24, 2010. The official prize giving will be on February 11, 2011. The German Design Prize is regarded as the “prize of prizes” because only examples of product or communication design can be submitted that have already been recognized in national or international competitions.

Contact person:

PFLEIDERER AG, Neumarkt
Fabian Schiffer
Vice President Corporate Communciation
Tel.: + 49 (0)9181 / 28 - 8491
Fax: + 49 (0)9181 / 28 - 606
E-Mail: fabian.schiffer@pfleiderer.com

Neumarkt/Munich, June 23, 2010 – After nearly 20 years as Chairman of the Supervisory Board, Ernst-Herbert Pfleiderer (67) stepped down from his position at the end of Pfleiderer’s Annual Shareholders’ Meeting today. Executive Board Chairman Hans H. Overdiek thanked him with the words: “Mr. Pfleiderer has been closely connected with this company since his birth. Not only that, but over the years he has demonstrated in an exemplary manner how the founder family is still committed and assuming responsibility after many generations. 40 years at the company, 37 years in leading positions, nearly 20 years as Chairman of the Supervisory Board – this is a track record that is not often seen in the history of German industry.”

The shareholders attending the Meeting elected Hans Theodor Pfleiderer (45) as a new member of the Supervisory Board, as recommended by the Supervisory Board. During the Supervisory Board meeting that was held immediately after the Annual Shareholders’ Meeting, Christopher von Hugo (47) was elected as the new Chairman of the company’s Supervisory Board, as planned. Von Hugo is Managing Director and Partner of One Equity Partners Europe GmbH, an internationally active investment firm that has held an equity interest in Pfleiderer since January 2008 and holds 23.3% of the company’s shares. The Pfleiderer family holds 10.4% of the shares.

Voting results with significant approval

53.14% of the share capital was represented at the 2010 Annual Shareholders’ Meeting. The shareholders of Pfleiderer AG voted as recommended by the management with significant majorities on the items of the agenda. This enables Pfleiderer to create new capital and to issue convertible bonds and/or bonds with warrants. Once again, the authorization to acquire the company’s own shares was also renewed.

Here you´ll find the detailed voting results and all respective material: Annual Shareholders´ Meeting 2010

Contact persons:

PFLEIDERER AG, Neumarkt
Fabian Schiffer
Vice President Corporate Communciation
Tel.: + 49 (0)9181 / 28 - 8491
Fax: + 49 (0)9181 / 28 - 606
E-Mail: fabian.schiffer@pfleiderer.com

Lothar Sindel
Vice President Investor Relations
Tel.: + 49 (0)9181 - 28-8491
Fax: + 49 (0)9181 - 28-606
E-Mail: lothar.sindel@pfleiderer.com

“Closing a plant is never an easy decision, however, the closure of our Fostoria facility will allow Uniboard to take advantage of cost synergies and improved efficiency, and will increase the overall competitiveness of the Group. Fostoria’s manufacturing volume will progressively be transferred to one of Uniboard’s three other thermofused melamine lamination plants. This measure is in line with Uniboard’s business strategy of manufacturing products in vertically integrated facilities, which allows synergies in manufacturing and logistics, and supports our ‘one-stop shop’ concept. This decision will allow Uniboard as the North American leader in TFM to service our customers in a more efficient and competitive manner, both today and in the future,” stated Mr. Hogg.

Uniboard will continue to operate the Fostoria plant until October 1, 2010 to ensure the orderly transition of its customers to its other facilities. With a production capacity of 24 million square feet, the plant is the smallest of the Uniboard production portfolio. The announced measures will affect 30 employees, of whom some will be transferred to Uniboard’s Moncure plant. The costs for the Fostoria closing will amount to considerably less than one million euros.

About Uniboard:

Uniboard Inc., a subsidiary of Pfleiderer AG, is a leading North American manufacturer of engineered wood products, with installed capacity of over 1.1 billion square feet of raw particleboard, high density and medium density fiberboard, of which over 50% is converted into value added melamine and laminated flooring products. Its products are sold to retailers, distributors and finished goods manufacturers, which cater to the kitchen cabinet industry, the furniture industry, the renovation and construction industries, as well as to the floor covering industry. Uniboard is the largest supplier of thermofused melamine panels in North America. More information at: www.uniboard.com

Contact:

PFLEIDERER AG, Neumarkt
Fabian Schiffer
Vice President Corporate Communication Tel.: + 49 (0)9181 / 28 - 8491
Fax: + 49 (0)9181 / 28 - 606
E-Mail: fabian.schiffer@pfleiderer.com

The Supervisory Board will then elect its new chairman after the Annual Shareholders’ Meeting.
It is foreseen that the position will be taken over by Mr. Christopher von Hugo (47), Managing Director of OEP. OEP and the Pfleiderer family currently hold 23.3% and 10.4% respectively of Pfleiderer’s shares.

Contact person:
Fabian Schiffer
Vice President Corporate Communications
Phone: +49 (0) 91 81 - 28-84 91
Fax: +49 (0) 91 81 - 28-6 06
E-mail: fabian.schiffer@pfleiderer.com

Neumarkt, May 7, 2010 – MDAX-listed Pfleiderer AG (ISIN DE0006764749) generated first-quarter revenue of 355.6 million euros, which is very close to the 358.0 million euros of the prior-year period. The proportion of revenue generated outside Germany was 70.9 percent, compared with 70.6 percent in the first quarter of last year. Compared with the previous quarter, revenue grew by just over 4 percent. Although the average level of prices for the products was still lower than in the first quarter of 2009, Pfleiderer compensated for this price effect with volume growth of nearly 2 percent and positive exchange-rate effects of 13.3 million euros, primarily from the zloty and the Canadian dollar. Increasing demand and better capacity utilization thanks to adjustments within the engineered-wood industry led to the price of one cubic meter of raw particleboard rising from its low of approximately 90 euros in summer 2009 to around 135 euros for new orders placed in April 2010.

Gross profit of 74.4 million euros (Q1 2009: 102.6 million euros) was affected above all by the distinct increase in raw-material prices compared to the prior-year period, especially for wood and chemicals (glue and input materials). For example, wood prices increased year-on-year by 10 to 30 percent, depending on location and type of wood, and prices of chemical products were about 10 percent higher than a year earlier. Increases in the prices of raw materials resulted in a total additional expense of 23 million euros. In combination with the lower sales prices for engineered-wood products, this led to a reduction in the gross margin from 28.7 percent in the first quarter of 2009 to 20.9 percent in the period under review.

Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased from 52.7 million euros in the prior-year period to 22.2 million euros in the first quarter of 2010. Positive exchange-rate effects contributed 1.4 million euros towards earnings. Due to substantial cost savings, administrative expenses were reduced by a significant 11.1 percent year-on-year. The EBITDA margin for the first three months of this year amounted to 6.3 percent, compared with 14.7 percent for the prior-year quarter. EBIT fell to minus 6.1 million euros from plus 23.0 million euros in the prior-year period. Depreciation and amortization amounted to 28.4 million euros (Q1 2009: 29.7 million euros).

The net financial expense of 12.5 million euros includes an amount of 3 million euros of interest expense for the recognition of accrued transaction costs for the Group’s new refinancing. Other financial income of 6.8 million euros resulted almost entirely from the translation into euros on the balance sheet date of financial items denominated in foreign currencies. In the prior-year quarter, there was other financial expense of 5.0 million euros. Deferred tax income was recognized in the first quarter of this year, contributing to an overall tax benefit of 2.2 million euros.

The result of continuing operations after taxes amounted to a loss of 16.4 million euros, compared with a profit of 4.0 million euros in the prior-year quarter. Of that total, a loss of 1.1 million euros is attributable to minority interests. The statement of income also includes the claims of hybrid bondholders of 4.6 million euros; this amount was not paid out but was recognized as a liability in the balance sheet. A loss of 19.9 million euros is therefore attributable to the shareholders of Pfleiderer AG, compared with a profit of 0.1 million euros in the first quarter of last year. This results in a basic loss per share of 35 euro cents, compared with 0 euro cents profit/loss in the first quarter of 2009.

“Developments in the first three months of the year 2010 show that we are still some distance away from so-called normality. But meanwhile, they also give us good reason for cautious optimism. We are now in a situation of a significant revival of demand, leading to good or very good capacity utilization. This allows us to adjust our prices,” stated Hans H. Overdiek, Chairman of the Executive Board of Pfleiderer AG, with regard to earnings for the first quarter of 2010.

Positive surprise from development of demand in Western Europe

In the Western Europe region, the order situation continued its recovery in the first quarter of 2010, and revenue of 193.7 million euros was close to the prior-year level of 197.0 million euros. Due to good utilization of capacity, there were no further adjustments of capacity in the market. In this improved situation, it was possible to increase the prices of nearly all products in the course of the first quarter. Following an initial recovery, sentiment in the furniture industry has worsened again somewhat. The situation for exports was different, with significant growth, due also to more favorable exchange rates with the weaker euro. Business with home-improvement stores and wholesalers was positive with increased demand for renovation products. The project business also developed better than in recent months. The region’s EBIT fell to 5.7 million euros from 8.4 million euros in the first quarter of 2009, equivalent to an EBIT margin of 2.9 percent. This development reflects higher raw-material costs as well as lower sales prices than in the prior-year quarter, despite adjustments. The ongoing idling of the plant in Gschwend due to short-time work also impacted earnings.

Significant market revival in Russia

In Eastern Europe, Pfleiderer achieved revenue growth of 16.9 percent compared with the first quarter of last year to 76.6 million euros. Of that total, 7.6 million euros was the result of exchange-rate effects, so despite falling prices, we still achieved revenue growth of a good 5 percent after adjusting for those effects. Growth in Russia was particularly strong as demand in that market has revived again significantly. In Poland, we achieved higher unit sales, in particular of raw particleboard and raw MDF/HDF while there was hardly any growth for surface-finished board. As in Western Europe, it was possible to increase sales prices for most products during the reporting period, but they were still lower than a year earlier. Raw-material costs, especially for wood, represent an increasing problem in Poland because demand meanwhile exceeds local supply. Wood prices in this market increased by about 30 percent. In combination with a difficult environment for our sales prices, this led to a worsening of first-quarter EBIT from plus 4.4 million euros to minus 3.5 million euros. The region’s EBIT margin was minus 4.5 percent.

Pfleiderer better than its competitors in North America

In the North America region, revenue fell by 9.0 percent compared with the prior-year period to 95.1 million euros. Currency translation boosted revenue by 3.9 million euros. Demand for panels increased slightly with some supply shortages, especially for MDF, and rising prices. Despite this recent revival, prices of particleboard and MDF were approximately 7 percent lower than a year earlier. Due to continuous gains in market share in North America, Pfleiderer was able to better utilize its particleboard capacities and was 20 percentage points above the market level. In geographic terms, demand in Canada developed better than in the United States. With laminate flooring, the trend towards low price products increased while prices continued to fall across all market segments. The Pfleiderer Group was also affected by this development; the less favorable product mix and falling prices led to a significant decrease in revenue. Rising raw-material prices had a negative impact on earnings also in North America. Together with the less favorable product mix, this resulted in EBIT falling from plus 6.1 million euros to minus 4.2 million euros. An EBIT margin of minus 4.4 percent is therefore expected for North America.

Positive cash flow and improved gearing

In the first three months of 2010, the Pfleiderer Group had a cash inflow from operating activities of 21.2 million euros, compared with a cash outflow of 37.6 million euros in the first quarter of last year. This net cash inflow is due on the one hand to an increase in trade payables, and on the other hand to the level of depreciation and amortization. Capital expenditure including advance payments amounted to 24.6 million euros, compared with 29.4 million euros in the first quarter of last year. Equity increased by 62.2 million euros to 693.9 million euros. While the earnings development reduced equity by 19.9 million euros, the 10 percent capital increase and the sale of treasury shares raised equity by 52.5 million euros. Currency translation accounted for 29.5 million euros of the increase. The equity ratio thus improved from 32.0 percent to 32.9 percent. The Group’s net debt increased compared with the end of 2009 by 44.5 million euros to 898.7 million euros. This was the result of the loss for the period, the increase in receivables and other assets (28.3 million euros) and the increase in inventories due to higher prices and volumes (9.7 million euros, excluding currency effects), as well as exchange-rate effects from translating financial liabilities denominated in foreign currencies into euros (39.5 million euros). There were positive effects from the capital increase and the sale of treasury shares (52.5 million euros). The ratio of net debt to equity (gearing) fell from 135.2 percent to 129.5 percent.

Good growth position despite decreasing capital expenditure

In the current year, Pfleiderer has no plans for investment in capacity expansion, but only for the maintenance of existing plants. The Group will still have growth opportunities thanks to the capital expenditure of the past three years for additional and more efficient production sites. Compared with the particularly successful year 2007 for example, Pfleiderer now also has the capacities of the MDF plant in Grajewo, Poland, the particleboard plant and the MDF plant in Moncure, USA, and additional surface-finishing capacity in Novgorod, Russia and Val d’Or, Canada. The Pfleiderer Group will focus in the coming years on debt reduction, cash management and further strengthening its market position. Cost-reducing measures will be taken again this year. The main focus will be on fixed costs in the administrative area, where Pfleiderer aims to save another 30 million euros. Several projects have already been initiated to achieve that target. In addition to those cost reductions, price adjustments in combination with stable or growing unit sales should improve operating profitability once again. Although revenue is expected to grow, operating profitability is likely to remain unsatisfactory in 2010 and the Group will probably report a loss for the full year. As of 2011, the Group should return to positive earnings as a result of better prices, a revival of demand and lower interest expenses.

Pfleiderer Group: key figures as of March 31, 2010

(according to IFRS)

Contact persons:

PFLEIDERER AG, Neumarkt
Fabian Schiffer
Vice President Corporate Communciations
Tel.: + 49 (0)9181 / 28 - 8491
Fax: + 49 (0)9181 / 28 - 606
E-Mail: fabian.schiffer@pfleiderer.com

Lothar Sindel
Vice President Investor Relations
Tel.: + 49 (0)9181 - 28-8491
Fax: + 49 (0)9181 - 28-606
E-Mail: lothar.sindel@pfleiderer.com

Applewood and wild oak in Mediterranean colors

The Hamburg architects’ office Partner Ship Design showed great attention to detail: They fitted out the 1,096 passenger cabins including suites and spa cabins and 600 crew cabins with wardrobes, desks and wall panels made of hardwearing laminate and thermo-fused board from Duropal and wodego. For the passenger cabins, they chose the décor “Tyrolean Apple,” combined with cream-white for the inside of the car-cass elements. This is complemented by warm, bright textiles in sun-yellow, orange, aubergine and ruby. The décor “Locarno Apple” was used in the crew cabins. AIDAblu’s spa cabins and suites feature very light and plain “Wild Oak” décor with a fine panel-type grain.

Rosewood from Thermopal ideal for a glamorous atmosphere

“Rosewood” from Thermopal, a tropical hardwood décor, also has a warm and sensuous effect. With connotations of tradition and exclusiveness, it is ideal for generously dimensioned rooms with a glamorous atmosphere. The AIDA designers fitted out the Captain’s Class cabins and the bridge with this décor. The red-brown rosewood with its balanced grain is also used in the elegant communal areas of the AIDAblu.

Pfleiderer on board: the next AIDA ship is being built

The 252-meter-long and 32.2-meter-wide AIDAblu is already the fourth ship in the AIDA fleet that Partner Ship Design has fitted out with high-quality Pfleiderer products. These products do not only have to look good, they also have to be hardwearing and as light as possible. The next AIDA ship, AIDAsol, is already being built – also with Pfleiderer on board.

About wodego:

Established in 2003, wodego GmbH is a subsidiary of Pfleiderer AG. Being a reliable partner of retailers, processors, planner and architects the company offers all important engineered wood materials for both decorative and constructive needs of interior fittings. The collection contains an extensive range of melamine-faced particleboards, high-pressure laminates (HPL) from Pfleiderer subsidiary Duropal, HPL-elements and carriers. More information at: www.wodego.com

About Duropal:

Since 1958, Duropal GmbH, a subsidiary of Pfleiderer AG, with headquarters in the Westphalian Arnsberg, has been considered the expert in the development and manufacturing of decorative high pressure laminates (HPL). For premium demands in terms of durability and a long life-cycle in interior design and furniture manufacturing, the company offers an extensive range of HPL, surfaces and HPL elements such as worktops. More information at: www.duropal.com

About Thermopal:

Thermopal GmbH (Leutkirch im Allgäu, Germany), a subsidiary of Pfleiderer AG, is one of the leading manufacturers of wood materials for exclusive interior construction, contract projects and shop construction. The product program by this premium supplier includes decorative particleboard and MDF panels, high-pressure laminates and numerous special products. The current range consists of nearly than 500 designs, 11 different surfaces and some 20 core materials, all of which can be combined as desired in the DST system (design – surface – core technology). The traditional company’s customers include architects and interior design companies, wood retailers and the furniture industry. More information at: www.thermopal.com

Contact:

PFLEIDERER AG, Neumarkt
Fabian Schiffer
Vice President Corporate Communication Tel.: + 49 (0)9181 / 28 - 8491
Fax: + 49 (0)9181 / 28 - 606
E-Mail: fabian.schiffer@pfleiderer.com

Neumarkt/Munich, March 19, 2010 – In a market environment affected by the economic crisis, MDAX-listed Pfleiderer AG (ISIN DE0006764749) was unable to avoid the negative trends in the engineered-wood indus-try. The Pfleiderer Group’s revenue fell by 20.4 percent from 1.74 billion euros in 2008 to 1.38 billion euros in 2009. Of that decline, 10 percent-age points are accounted for by falling unit sales, 7 percentage points by falling prices and 3 percentage points by exchange-rate effects. These effects could not be absorbed despite successful structural adjustments and cost savings of approximately 100 million euros, which substantially exceeded the planned 80 million euros. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell to 100.4 million euros. Com-pared to 223.7 million euros in the prior year, this represents a decrease of 55.1 percent.

Excluding the restructuring expenses that became necessary last year, Pfleiderer would have posted EBITDA of 117.9 million euros. Adjusted for restructuring costs, the EBITDA margin was 8.5 percent (7.3 percent including restructuring costs), compared to 12.9 percent in 2008. EBIT amounted to minus 16.1 million euros, compared to plus 97.6 million euros in 2008. In addition to the cost of restructuring activities, this was due also to impairment charges of 6.7 million euros. Excluding restructuring expenses and impairments, EBIT amounted to plus 8.2 million euros.

Net financial expense improved significantly from 80.0 million euros in 2008 to 48.8 million euros last year. This was the result of generally lower market interest rates, favorable margin spreads and positive cur-rency effects of 2.7 million euros, which reduced the interest expense, as well as breakeven on other financial income/expense. In 2008, other financial expense of 28.4 million euros was incurred.

The Group posted a loss from continuing operations before income taxes of 64.9 million euros in 2009, compared to a profit of 17.6 million euros in the prior year. The balance of tax payments and tax income as a result of the capitalization of deferred taxes on loss carry forwards at Pfleiderer’s subsidiary Pergo was a net tax income of 8.2 million euros. This resulted in a loss for the period (including discontinued operations) of 56.7 million euros, compared to a profit of 28.8 million euros for the prior year.

After minority interest and profit attributable to hybrid capital investors, the loss attributable to the shareholders of Pfleiderer AG for the year 2009 amounted to 69.8 million euros, compared to a profit of 5.8 million euros in 2008. Profit attributable to hybrid capital investors is shown in the income statement for the interest payments on the hybrid bond, be-cause those investors are entitled to subsequent payment of the interest in accordance with the terms and conditions specified in the prospectus. A liability for this item has been recognized in the balance sheet. Diluted and basic earnings per share from continuing operations amounted to minus 1 euro and 42 cents, compared to plus 24 cents in 2008.

“The year 2009 was very challenging, especially in the second quarter, which saw declines of 30 percent in some areas. We are anything but proud of the numbers we are presenting today. While we started at an early stage to prepare the Group for the worsening crisis, the severity of the market slump or its scope was not to be foreseen. The positive as-pect of this is the fact that we have moved up worldwide from third to second place in terms of installed capacities for particleboard and fiber-board. This means that we will benefit from rising market share when the crisis abates,” stated Hans H. Overdiek, Chairman of the Executive Board of Pfleiderer AG, at the presentation of the Group’s results for the year 2009.

Pergo resists price pressure in Western Europe

The revenue generated by the Western Europe region fell by 21.6 per-cent to 741.9 million euros. Approximately nine percentage points of the revenue decline are accounted for by falling prices and 13 percentage points are accounted for by falling unit sales. Unit sales of flooring also fell in Europe, whereby underutilization of capacity put pressure on prices in the lower and middle market segments. Pergo, with its products in the upper market segment, was largely able to resist this pressure on prices. EBIT in the region fell from 112.5 million euros to 1.3 million eu-ros. This includes restructuring costs and impairments of 13.7 million eu-ros. The EBIT margin fell from 11.9 percent to 0.2 percent in 2009. Pflei-derer reacted to the difficult market situation with capacity reductions by means of short-time work, savings of 30 million euros for example through productivity improvements, the socially responsible reduction of approximately 160 jobs, and new, innovative products.

Currency effects impact revenue in Eastern Europe

In Eastern Europe, the Pfleiderer Group recorded a 32.2 percent decline in revenue to 285.0 million euros. 60.4 million euros or 14.4 percentage points of that decline were accounted for by exchange-rate effects; the rest was mainly the result of falling prices – by 12 percent for particle-board and by 10 percent for laminated panels in Poland. Due to the measures Pfleiderer took to reduce costs significantly, including head-count reductions, the company was able to further strengthen its com-petitiveness and market position in Poland. In Russia, the demand situa-tion was very difficult in the first half of the year; unit sales fell by ap-proximately 30 percent and particleboard prices were about 20 percent below the prior-year level. Earnings came under particular pressure from the low level of prices in Eastern Europe. EBIT therefore decreased from 28.9 million euros in 2008 to 2.6 million euros in 2009, and the EBIT margin fell from 6.9 percent to 0.9 percent. The construction of an MDF plant in Novgorod has been suspended and will be recommenced only when the market situation improves appreciably.

Stable business in North America sees improved market shares

In North America, the Pfleiderer Group’s revenue of 401.8 million euros was close to the prior-year level (404.9 million euros), although the floor-ing market and the panel market contracted significantly. Exchange-rate effects boosted revenue by 8.9 million euros. Unit sales of laminate flooring increased by roughly five percent, contrary to the market trend, so Pfleiderer’s share of a shrinking market increased again to more than 30 percent. However, unit sales of raw particleboard decreased by 11 percent in 2009, which is still substantially better than the overall market decline of 24 percent. Unit sales of surface-finished board increased by about one percent and of MDF/HDF by nine percent. The Pfleiderer subsidiary Uniboard entered into a cooperative venture with Kustom Ma-terial Laminators in 2009. This cooperation will allow the sale of thermo-fused panels by Uniboard also in the west of the United States. EBIT in the North American market amounted to plus 4.3 million euros in 2009, compared to minus 20.2 million euros in 2008. The EBIT margin was therefore plus 1.1 percent, compared with minus 5.0 percent in the prior year.

Negative cash flow, investment at prior-year level

At the Group level, operating activities resulted in a cash outflow of 13.7 million euros, compared to a cash inflow of 228.4 million euros in 2008. This was primarily due to the fall in EBIT of 113.7 million euros and the decrease in current liabilities (excluding financial debt) of 77.8 million eu-ros. The latter mainly reflects a reduction in trade payables of 54.9 mil-lion euros.

Investment of 157.7 million euros in 2009 was close to the prior-year level, and was thus still significantly higher than depreciation. 16.6 mil-lion euros of the capital expenditure took place in the Western Europe region. 101.1 million euros was invested in North America, mainly for the development of the MDF plant in Moncure, North Carolina, USA. In Eastern Europe, investment of 37.7 million euros largely reflects expen-diture for the development of the MDF plant in Novgorod, Russia.

Pfleiderer’s equity decreased by 11.1 percent to 631.7 million euros, mainly because of the net loss for the period. The equity ratio was still 32.0 percent, however. The Group’s net debt increased compared to the end of 2008 from 635.5 million euros to 854.2 million euros, raising the ratio of net debt to equity (gearing) to 135.2 percent.

Focus on reducing net debt

Pfleiderer AG is planning to reduce its net debt considerably during the coming years. This purpose was also served by the injections of equity capital from the sale of treasury shares and the capital increase carried out in the first quarter of 2010. Profitability is to be improved by further cost savings and structural measures. Nevertheless, the reduction of fi-nancial liabilities will be facilitated in the coming years primarily by the anticipated strong free cash flow.

Further capacity adjustments in excess of the closures in 2009 will be required in the engineered wood industry this year in order to achieve acceptable profit margins. The increases in raw material costs that have occurred since the beginning of the year make price increases inevita-ble. While revenue is expected to remain mainly flat in Western Europe, Pfleiderer anticipates slight revenue growth in Eastern Europe and North America.

The market is not expected to recover before the second half of 2010. Pfleiderer’s investment activity in 2010 will be limited to maintenance and rationalization spending, as sufficient modern plant capacity is available for output growth. Although the outlook has meanwhile im-proved slightly with high capacity utilization, Pfleiderer expects to post a loss again this year at the net profit level, due to the required structural adjustments.

Pfleiderer’s Annual Report 2009 and further information on the Group can be found on the website at www.pfleiderer.com.

Summary of key figures for fiscal year 2009

(in accordance with IFRSs)

Contact:

PFLEIDERER AG, Neumarkt
Fabian Schiffer
Vice President Corporate Communication Tel.: + 49 (0)9181 / 28 - 8491
Fax: + 49 (0)9181 / 28 - 606
E-Mail: fabian.schiffer@pfleiderer.com

Lothar Sindel Vice President Investor Relations Tel.: + 49 (0)9181 / 28 - 8044
Fax: + 49 (0)9181 / 28 - 606
E-Mail: lothar.sindel@pfleiderer.com