Westag AG — Interim / Quarterly Report 2007

Aug 8, 2007

Interim Report

1st six months of 2007

Sales

The general economic recovery in Germany has also entailed a positive development of construction activity. The index of incoming orders in the building construction sector published by the Federal Statistical Office for the period from January to May was up 2.8 % on the previous year. Westag & Getalit AG benefited disproportionately from this trend. As of June 30, 2007, our sales revenues increased by 15.2 % to € 109.9 million (previous year: € 95.4 million), confirming the positive upward trend seen in the first quarter of 2007. All three divisions reported double-digit growth.

In particular, export sales climbed 25.0 % to € 28.1 million (previous year: € 22.5 million). Accordingly, the export share rose from 23.6 % in the previous year to 25.6 %.

Divisions

Sales revenue (in € '000)	Jan. 01 - Jun. 30, 2007	Jan. 01 - Jun. 30, 2006	Change (in %)
Plywood/Formwork	23,982	18,213	31.7
Doors/Frames Laminates/Elements	43,752 40,476	38,895 36,240	12.5 11.7

The Plywood/Formwork Division boosted its sales by 31.7 % to € 24.0 million. The strong increase is attributable to the good market positioning of our Division, which benefited particularly from good construction activity thanks to its large product range.

Sales in the Doors/Frames Division rose by 12.5 % to € 43.8 million due to domestic and international growth.

The Laminates/Elements Division increased its sales by 11.7 % to € 40.5 million thanks to strong export growth and increased sales of the Getacore solid surface material.

Profit data (in € '000)	Jan. 01 - Jun. 30, 2007	Jan. 01 - Jun. 30, 2006	Change (in %)
Earnings before income taxes Net profit	6,947 4,307	5,142 3,085	35.1 39.6
Net profit per share (in €)	0.75	0.56	33.9
DVFA/SG earnings per share (in €)	0.78	0.56	39.3

Earnings before income taxes rose by 35.1 % to € 6.9 million (previous year: € 5.1 million), mainly as a result of the higher sales and despite a sharp increase in the cost of materials ratio to 52.1 % (previous year: 49.0 %). The latter is attributable to the continued rise in raw materials prices, which was only partly passed on to our customers. By contrast, personnel expenses developed favourably as a result of our higher output, growing only at a proportionately lower rate.

Net profit climbed to € 4.3 million (2006: € 3.1 million), while DVFA/SG earnings per share rose to € 0.78 (2006: € 0.56).

Capital expenditure

Investments in an amount of € 15.4 million are planned for 2007. Investment projects include the automated cutting-to-size of worktops and the expansion of our frames production capacity. Moreover, we will lay the foundation for relocating our production capacity for mineral worktops to Wadersloh, where it will be expanded significantly. We have also made initial investments in boosting our own electricity generation. We expect these investments to have positive effects on sales revenues from 2008.

Staff

Workforce	Jun. 30,	Jun. 30,	Change
	2007	2006	(in %)
Number of employees (incl. trainees/apprentices)	1,215	1,187	2.4

As a result of the increased output, we were able to create new jobs. As a result, the number of employees rose moderately by 28 people from 1,187 to 1,215. At the same time, staff productivity increased noticeably, which is reflected in the lower staff cost ratio of 27.5 % (previous year: 30.3 %). We made growing use of temporary manpower in order to cover peak production capacity requirements.

Volume of own shares

As of June 30, 2007, Westag & Getalit AG held 185,500 own shares in its portfolio. All these shares are preference shares.

Outlook

The half-year figures make us optimistic for the full year 2007. If the positive economic development continues, we expect sales to increase by a good 10 %.

The present satisfactory earnings position is attributable to the very good capacity utilisation and the related drop in the staff cost ratio. While the rise in raw materials prices has slowed down, we still need to pass the resulting cost increases on to our customers.

Against the background of the projected development of sales revenues, we are confident that the full-year result before income taxes will once again exceed the good result of the previous year.

Rheda-Wiedenbrück, August 2007 Westag & Getalit AG The Management Board

Balance sheet

(in € '000)	Jun. 30, 2007	Jun. 30, 2006
Intangible assets	376	333
Tangible assets	47,371	46,623
Financial assets	1,005	1,042
Deferred tax assets	37	0
Non-current assets	48,789	47,998
Inventories	36,143	32,122
Debtors and other assets	31,673	24,416
Cash at banks or in hand	14,974	16,728
Current assets	82,790	73,266
Total assets	131,579	121,264
Called-up share Capital	14,643	14,643
Capital reserve	24,345	24,345
Revenue reserves	35,111	35,111
Net profit for the year	12,442	8,135
Equity and reserves	86,541	82,234
Non-current provisions	16,909	16,559
Deferred tax liabilities	0	12
Non-current liabilities	16,909	16,571
Trade payables and other current liabilities	14,574	11,422
Current provisions	13,555	11,037
Current liabilities	28,129	22,459
Total equity and liabilities	131,579	121,264

Income statement on a quarterly basis

(in € '000)	Apr. 01 - Jun. 30, 2007	Apr. 01 - Jun. 30, 2006
Sales	55,142	47,699
In/decrease in inventories	641	- 296
Own work capitalised	35	83
Total operating performance	55,818	47,486
Other operating income	854	382
Cost of materials	29,002	23,100
Personnel expenses	15,258	14,210
Depreciation and amortisation	2,339	2,142
Other operating expenses	6,580	5,571
Other taxes	48	49
Operating result	3,445	2,796
Financial result	125	81
Investment result	0	0
Extraordinary items	0	0
Profit before income taxes	3,570	2,877
Income taxes	1,357	1,151
Net profit	2,213	1,726
DVFA/SG earnings per share (undiluted and diluted)	0.40	0.31
Number of shares (undiluted and diluted)	5,720,000	5,720,000

(in € '000)	Jan. 01 - Jun. 30, 2007	Jan. 01 - Jun. 30, 2006
Sales	109,897	95,368
In/decrease in inventories	2,203	582
Own work capitalised	76	178
Total operating performance	112,176	96,128
Other operating income	1,182	589
Cost of materials	58,414	47,125
Personnel expenses	30,901	29,157
Depreciation and amortisation	4,724	4,458
Other operating expenses	12,565	10,859
Other taxes	96	95
Operating result	6,658	5,023
Financial result	289	119
Investment result	0	0
Extraordinary items	0	0
Profit before income taxes	6,947	5,142
Income taxes	2,640	2,057
Net profit	4,307	3,085
DVFA/SG earnings per share (undiluted and diluted))	0.78	0.56
Number of shares (undiluted and diluted)	5,720,000	5,720,000

Income statement on half-year basis

Cash flow statement

(in €'000)	Jan. 01 - Jun.	Jan. 01 - Jun.
	30, 2007	30, 2006
Operating result/EBIT	6,658	5,023
Income tax payments	- 2,030	- 2,756
Depreciation and amortisation	4,724	4,458
Result from asset retirements	- 11	- 48
Change in current assets	- 11,398	- 5,342
Change in liabilities	5,493	2,326
Cash flow from operating activities	3,436	3.661
Investments in fixed and financial assets	- 5,607	- 6,172
Change in financial assets	38	- 1,002
Income from fixed asset retirements	103	80
Cash flow from investment activities	- 5,466	- 7,094
Interest income	290	246
Interest expenses	0	0
Repayment of non-current financial liabilities	0	0
Acquisition/sale of own shares	0	- 1,070
Dividend payments	0	0
Cash flow from financing activities	290	- 824
Change in liquid funds	- 1,740	- 4,257
Liquid funds as of Jan. 01	7,737	10,346
Liquid funds as of Jun. 30	5,997	6,089

Statement of changes in equity

in € '000	Subscribed capital	Capital reserve	Revenue reserve	Net profit for the year	Total
As of Jan. 1, 2006	14,643	24,345	31,911	3,296	74,195
Transfer to other reserve					0
Change in own shares			- 1,070		- 1,070
Addition in accordance with Sect. § 58 II AktG					0
Dividend					0
Net profit				3,085	3,085
As of Jun. 30, 2006	14,643	24,345	30,841	6,381	76,210
As of Jan. 01, 2007	14,643	24,345	35,111	8,135	82,234
Transfer to other reserve					0
Change in own shares					0
Addition in accordance with Sect. § 58 II AktG					0
Dividend					0
Net profit				4,307	4,307
As of Jun. 30, 2007	14,643	24,345	35,111	12,442	86,541

Segment (in € '000)	Jan. 01 - Jun. 30, 2007	Jan. 01 - Jun. 30, 2006	Change (in %)
Germany Sales Earnings before income taxes	81,774 5,017	72,872 3,664	12.2 36.9
Export Sales Earnings before income taxes	28,123 1,930	22,496 1,478	25.0 30.6
Full Company Sales Earnings before income taxes	109,897 6,947	95,368 5,142	15.2 35.1

Segment report for the first six months 2007

Notes on the report for the six-month period ended June 30, 2007

1. Accounting principles

Westag & Getalit AG's quarterly report for the period ended June 30, 2007 was compiled in full compliance with the Financial Reporting Standards (IFRS) as valid on the reporting date. All accounting and valuation principles are consistent with those used for the 2006 financial statements.

2. Cash flow statement

The cash flows in the cash flow statement were determined using the indirect method.

3. Liquid funds

Liquid funds shown in the balance sheet include securities in an amount of € 8,977 thousand (Dec. 31, 2006: € 8,991 thousand).

4. Composition of subscribed capital

The subscribed capital of € 14,643,200 is composed of 2.860.000 no-par ordinary shares and 2.860.000 non-voting no-par preference shares with a total value of € 7,321,600.

5. Purchase commitments

As of June 30, 2007, purchase commitments amounted to € 6,189 thousand, compared to € 9,145 thousand in the previous year.

1. Review

The interim financial statements and the interim management report have been neither audited in accordance with section 317 HGB nor reviewed by the auditors.

1. Assurance by the legal representatives

The legal representatives of Westag & Getalit AG assure, to the best of their knowledge, that, in accordance with the applied principles of proper interim reporting, the present interim financial statements provide a true and fair view of the net worth, financial and earnings position of the company, that the interim management report presents a true and fair view of the business results and the situation of the company and that the main risks and opportunities of the expected development of the company during the rest of the fiscal year have been outlined.

Financial schedule 2007*

March 15, 2007	Press Release Report on the results of fiscal year 2006
May 10, 2007	Press Release Report on the first three months of 2007
May 11, 2007	Annual Financial Statement Press Conference in Düsseldorf
August 7, 2007	Annual General Meeting (AGM) of Shareholders in Rheda-Wiedenbrück Press Release Report on the results of the Annual General Meeting of Shareholders and interim report on the first six months of 2007
August 28, 2007	DVFA Event Analysts' Conference in Frankfurt
November 8, 2007	Press Release Report on the first nine months

* The complete 2007 financial calendar is available on the Internet at:

of 2007

www.westag-getalit.de/finanzkalender

Westag & Getalit AG · Postfach 2629 · 33375 Rheda-Wiedenbrück Germany · Tel. + 49 (0) 52 42/17-0 · Fax + 49 (0 ) 52 42/17-7 50 00 www.westag-getalit.de · e-mail: ir@westag-getalit.de