1 PFLEIDERER AG NINE-MONTH FINANCIAL REPORT 2007

Sectors) and the Verband der Deutschen Möbelindustrie (VDM – German Furniture Industry
Association), the main growth driver was exports, with domestic sales remaining muted. The office
and retail furniture sector (+16%) and the kitchen furniture sector (+8%), Pfleiderer’s most important
customer industries, performed especially well. This positive sales trend continued in the third quarter
of 2007.
Revenues and earnings
Positive business development continues
Pfleiderer continued its positive business development on the back of the encouraging performance
of the sector in Europe: Consolidated revenues increased again significantly by 25.5% year on year
to €454.7 million in the third quarter of 2007. Cumulative revenues for the period from January to the
end of September 2007 were up by 28.7% to €1,340.9 million. Business generated abroad increased
35.3% to €946.7 million, topping the increase in domestic sales of 15.4% to €394.2 million. The
international share of consolidated revenues rose from 67.2% to 70.6%. Pergo AB, Stockholm, which
was acquired in the first quarter, has been included in the consolidated financial statements since
March 2007.
Significant improvement in results of operations
The strong volume development coupled with Pfleiderer’s proactive pricing policy had a positive
effect on the Company’s result of operations, as did the effects of the efficiency-enhancing measures
already implemented. In the third quarter of 2007, consolidated gross profit rose faster than revenues
by 28.9% year-on-year to €134.6 million, corresponding to a gross margin of 29.6% (previous
year: 28.8%). Cumulative gross profit from January to September was up by 36.8% to €382.0 million
and the corresponding margin increased from 26.8% to 28.5%.
Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) improved
significantly: This figure climbed by 27.4% to €183.9 million in the nine-month period. The EBITDA
margin was therefore 13.7%. Continued difficult market conditions in North America in the second
half of the year and one-time costs of €4.3 million were reflected in the somewhat smaller increase of
16.1% in the third quarter of 2007 to €62.9 million. Non-recurrent expenditures totaled €9.7 million in
the first nine months of 2007. The restructuring measures that Pfleiderer has initiated will strengthen
its competitive position in the relevant markets in the long term.
One-time costs and increased selling expenses for marketing measures taken by Pergo in the U.S.A.
were the main reasons for the decrease in the profit from operations (EBIT) from €35.6 million to
€32.1 million in the third quarter of 2007. The first three quarters together saw EBIT growth of 15.3%
to €102.7 million.
After adjustment for net financial expenses, which were €-34.1 million between January and
September 2007, or roughly at the previous year’s level (€-34.8 million), earnings from continuing
operations before taxes increased by 26.6% to €68.5 million after nine months. Earnings from
continuing operations after taxes grew at a similarly strong rate of 25.9% to €48.1 million because the
tax rate remained approximately the same at 29.8% (previous year: 29.4%).
7 PFLEIDERER AG NINE-MONTH FINANCIAL REPORT 2007