Pfleiderer Group S.A.: revenues increased to EUR 268.8 million in Q1 2018

Pfleiderer Group S.A.: revenues increased to EUR 268.8 million in Q1 2018

• Q1 2018 revenues reached EUR 268.8 million (PY Q1 EUR 252.4 million), driven by sales of
  value-added and basic products
• EBITDA increased by 18.5% y/y to EUR 36.5 million, EBITDA margin rose to 13.6% compared to 12.2% from PY Q1
• The Group intends to pay out a dividend of 1.2 PLN per share for FY 2017, an increase of 9.1%
• New innovative lacquering line in Leutkirch is ramping up well and the first market feedback is very positive
• New product launches (PrimeBoard, Duropal HPL Compact Exterior) to support the growth strategy

16.05.2018, Wrocław - Pfleiderer Group S.A., the leading producer of materials and solutions for furniture, construction and building industry in Europe, reported positive earnings for Q1 2018. Its consolidated net revenue was EUR 268.8 million, EBITDA amounted to 36.5 million, while net income reached EUR 7.3 million. The Group develops its portfolio of value-added products and undertakes promising investments aiming to stimulate its sales and improve profitability.

Revenue and EBITDA increase

Pfleiderer Group S.A. Q1 2018 revenues rose by 6.5% to EUR 268.8 million from EUR 252.4 million a year ago. Importantly, the Group generated sustainable growth from sales of high-margin, value-added products supported by sales of basic products. In turn, Q1 2018 EBITDA rose substantially by 18.5% to EUR 36.5 million compared to EUR 30.8 million in the corresponding period a year ago, while EBITDA margin increased to 13.6% from 12.2%. EBIT increased by 45.2% to EUR 18 million from EUR 12.4 million in Q1 2017. This strong increase stems from, among others, a new pricing policy, which mitigates the negative impact of rising prices of raw materials.

'We feel positive about our financial results for the first quarter and about the successful launch of our new lacquering line in Leutkirch, which will help us increase production of value-added products and build stronger position in these segments. One of them is PrimeBoard, our new innovative and decorative board perfect for interior applications. We are on track to implement our new growth strategy and I am optimistic about the Group going forward. In the months ahead, we will continue to improve our cost structure and profitability. We are also looking to invest in the development projects and products based on cutting-edge technologies that will help us achieve our strategic goals.' - says Tom K. Schäbinger, President of the Management Board of Pfleiderer Group S.A.

EUR 75 million on investments in 2018 to strengthen the leading position on key markets

In Q1 2018, Pfleiderer Group S.A. invested a total of EUR 12.7 million to develop its production capacity and to enhance its competitiveness. Capital expenditures for 2018 are expected to total around EUR 75 million, in line with the new development strategy to improve EBITDA and margins. By the end of 2021, Pfleiderer Group S.A. is aiming to increase its consolidated sales to around EUR 1.2 billion and to improve its EBITDA margin to reach 16%, thereby strengthening its leading position in Europe.

A new lacquering line to support development of innovative value-added products

One of the biggest accomplishments of the Pfleiderer Group S.A. in Q1 2018 was the opening of a new lacquering line at its Leutkirch plant in Germany, an investment costing over EUR 12 million. The lacquering line is now regarded as the largest and the most advanced 'Hot Coating' plant in the world. The new facility uses an innovative 'Hot Coating' system for the production of value-added products, such as PrimeBoard and Duropal HPL Compact Exterior, both of which reflect the latest trends and customers' expectations. PrimeBoard is an innovative, high-end, decorative board available in the XTreme High Gloss or XTreme Matt versions, with high scratch resistance for interior solutions. Duropal HPL Compact Exterior, offered with super-matte finish, is a top-quality board designed for exterior applications. Both new matt version products offer the anti-fingerprint effect.

Besides the new lacquering line in Leutkirch, Pfleiderer Group S.A. also upgraded it's wood recycling capabilities in Neumarkt. The investment will allow us not only to boost wood recycling capacity and reuse more wood, but will also result in higher productivity with unchanged premium quality.

Maximizing shareholder value

Pfleiderer Group S.A. focuses not only on operational excellence, but also on increasing the value for its shareholders. In Q1 2018, the Group executed the second and the third tranche of the buy-back programme, which commenced in the fall of 2017. Since then, the Group acquired in total 5.4 million of own shares, representing approximately 8.3% of the total number of shares. Furthermore, the Pfleiderer Group S.A. intends to maintain its attractive dividend policy by paying 1.2 PLN per share for FY 2017, an increase by 9.1% over the previous year. This dividend increase is the recommendation of the Management Board and is therefore subject to the final decision of the Annual General Meeting.

About Pfleiderer Group

Pfleiderer Group is the leading producer of materials and solutions for furniture, construction and building industries. The company's annual turnover is ca. EUR 1 billion. The company employs approximately 3.600 people. The headquarters of the group are located in Wrocław (Poland) and in Neumarkt (Germany). Pfleiderer has 9 production facilities in Germany and Poland as well as sales offices in the United Kingdom, the Netherlands, Switzerland, Sweden, Austria, Romania and France. Pfleiderer Group offers a wide range of innovative products and solutions for companies representing the furniture industry, trade in wood-based materials, as well as companies dealing with interior finishing or skeletal construction, etc. Pfleiderer owns such brands as Duropal and Thermopal and is a trade partner for industry, trade, craft, designers and architects. As Pfleiderer Group S.A. the corporation is listed on the Warsaw Stock Exchange.

http://www.pfleiderer.pl

https://www.pfleiderer.com

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