Westag AG — Interim / Quarterly Report 2011

Aug 11, 2011

INTERIM REPORT

1st six months of 2011

INTERIM REPORT ON THE FIRST SIX MONTHS 0F 2011

Sales

Benefi ting from the robust state of the German construction sector, Westag & Getalit AG raised its sales in the fi rst half of 2011 by 8.1% to just under € 111.6 million.Export business grew at a clearly disproportionate rate of 23.4% to € 25.4 million. Accordingly, the export ratio advanced from last year's 19.9% to 22.7%.

Divisions

Sales revenue in € '000	Jan. 1- Jun. 30, 2011	Jan. 1- Jun. 30, 2010	Change in %
Plywood/Formwork	18,155	15,624	16.2
Doors/Frames	52,690	48,235	9.2
Laminates/Elements	37,352	36,561	2.2

The Plywood/Formwork division could profi t from a strong increase in demand and raised its sales by 16.2 % to € 18.2 million.

The Doors/Frames division could also strongly increase its sales up to € 52.7 million, equivalent to a 9.2 % increase on the previous year. This division profi ted equally from the robust economic situation of the German building industry as well from the great increase in demand from various export markets.

Our division Laminates/Elements achieved a moderate growth in sales of 2.2 % to € 37.4 million which was based on a stable business in the German home market, but was mainly supported by export sales.

Earnings

Profi t data in € '000	Jan. 1- Jun. 30, 2011	Jan. 1- Jun. 30, 2010	Change in %
Earnings before income taxes	5,102	5,032	1.4
Net Profi t	3,571	3,522	1.4
Earnings per share (in €)	0.62	0.61	1.4

Earnings before income taxes came in at € 5.1 million, slightly up on the prior-year fi gure of € 5.0 million. While profi tability was supported by the positive development on the sales side, it was clearly slowed down by the renewed rise in commodities prices particularly in the area of wood, wood-based materials and oil-based chemicals.

Net profi t for the half-year period rose in parallel to pre-tax earnings, edging up from € 3.5 million to € 3.6 million. Earnings per share amounted to 0.62 €.

Capital expenditure

Our capital expenditures in 2011 will remain at the prior-year level of approximately € 10 million. The largest single investment will be a processing line ensuring effi cient edge treatment of our standard doors.

Employees

Workforce	Jun. 30,	Jun. 30,	Change
	2011	2010	in %
Number of staff	1,261	1,217	3,6

Our headcount was up slightly by 3.6% to 1,261 during the fi rst half year (previous year: 1,217), meaning that headcount growth was disproportionately smaller than the increase in sales.

Portfolio of own shares

As of June 30, 2011, Westag & Getalit AG held 287,053 own shares, all of which were preference shares. This means that the number of own shares increased by 2,246 shares as compared to December 31, 2010 in the context of the stock repurchase programme.

Outlook

The economic environment remains split into two different realities. Germany and numerous Asian economies have been experiencing a quite robust upswing which has even gained additional momentum in 2011. In many other European countries, however, the recovery has subsided and the already existing crises in several countries have worsened further. Against this background, it is diffi cult to forecast our business trend. Even so, we expect to post sales growth for the full year 2011. Despite the challenging environment, we believe that we will be able to grow our international business at a disproportionate rate during this period.

Providing profi t guidance has also become much more diffi cult this year. This is because of the continued rise in commodities prices which already impacted our results in the fi rst half of the year. Apart from making consistent use of all saving potentials, we will continue our efforts to impose effective price increases for our products.

Against the background of our strengths in terms of product range, sales power, employees and cost awareness, we are confi dent that we will be able to generate good results also during the current fi nancial year. However, excessively high profi t expectations are dampened by the high commodities prices.

Rheda-Wiedenbrück, August 2011 Westag & Getalit AG The Management Board

BALANCE SHEET

Assets in € '000	Jun. 30, 2011	Dec. 31, 2010
Intangible assets	641	663
Tangible assets	61,913	61,981
Financial assets	1,206	1,263
Deferred tax liabilities	0	0
Non-current assets	63,760	63,907
Inventories	39,555	33,944
Receivables and other assets	34,974	31,565
Cash at banks or in hand	12,917	20,176
Current assets	87,446	85,685
Total assets	151,206	149,592

Equity and liabilities in € '000	Jun. 30, 2011	Dec. 31, 2010
Subscribed Capital	14,644	14,644
Capital reserve	24,398	24,376
Revenue reserves	54,311	54,311
Accumulated profi t	14,346	10,817
Equity and reserves	107,699	104,148
Pension provisions	14,263	14,130
Other non-current provisions	1,499	1,563
Deferred tax liabilities	617	642
Non-current liabilities	16,379	16,335
Trade payables	11,554	11,408
Other current liabilities	14,902	17,135
Current provisions	672	566
Current liabilities	27,128	29,109
Total equity and liabilities	151,206	149,592

INCOME STATEMENT ON A QUARTERLY BASIS

in € '000	Apr. 1- Jun. 30, 2011	Apr. 1- Jun. 30, 2010
Sales	55,907	52,978
In/decrease in inventories	1,000	982
Own work capitalised	18	45
Total operating performance	56,925	54,005
Other operating income	594	575
Cost of materials	29,089	26,811
Personnel expenses	16,728	16,468
Depreciation and amortisation	2,257	2,407
Other operating expenses	6,567	6,023
Other taxes	82	19
Operating result	2,796	2,852
Financial result	23	108
Extraordinary items	0	0
Earnings before income taxes	2,819	2,960
Income taxes	846	888
Net profi t	1,973	2,072
Earnings per share (undiluted and diluted)	0,34	0,35
Number of shares (undiluted and diluted)	5,720,000	5,720,000

INCOME STATEMENT ON HALF-YEAR BASIS

(in € '000)	Jan. 1-Jun. 30, 2011	Jan. 1-Jun. 30, 2010
Sales	111,590	103,203
In/decrease in inventories	2,903	2,020
Own work capitalised	19	131
Total operating performance	114,512	105,354
Other operating income	1,304	1,016
Cost of materials	59,043	51,625
Personnel expenses	33,793	33,000
Depreciation and amortisation	4,720	4,850
Other operating expenses	13,135	11,980
Other taxes	133	92
Operating result	4,992	4,823
Financial result	110	209
Extraordinary items	0	0
Earnings before income taxes	5,102	5,032
Income taxes	1,531	1,510
Net profi t	3,571	3,522
Earnings per share (undiluted and diluted)	0,62	0,61
Number of shares (undiluted and diluted)	5,720,000	5,720,000

CASH FLOW STATEMENT

in € '000	Jan. 1- Jun. 30, 2011	Jan. 1- Jun. 30, 2010
Operating result/EBIT	4,992	4,823
Income tax payments	-2,168	-3,963
Depreciation and amortisation	4,720	4,850
Result from asset retirements	-76	-65
Change in current assets	-8,416	-9,635
Change in liabilities	-1,555	7,833
Cash fl ow from operating activities	-2,503	3,843
Investments in fi xed assets	-4,660	-4,402
Change in fi nancial assets	57	110
Income from fi xed asset retirements	104	135
Cash fl ow from investment activities	-4,499	-4,157
Interest income	107	200
Interest expenses	0	0
Repayment of non-current fi nancial liabilities	0	0
Acquisition/sale of own shares	-364	-1,553
Dividend payments	0	0
Cash fl ow from fi nancing activities	-257	-1,353
Change in liquid funds	-7,259	-1,667
Cash and cash equivalents as of Jan. 1	20,176	19,594
Cash and cash equivalents as of Jun. 30	12,917	17,927

in € '000	Subscribed capital	Capital reserve	Revenue reserve	mula ted profi t Accu	Total
As of Jan. 1, 2010	14,644	24,376	49,011	12,635	100,666
Transfer to other reserve					0
wn shares Change in o				-1,553	-1,553
Addition in accordance with Sect. § 58 II AktG					0
Dividend					0
Net profi t				3,522	3,522
As of Jun. 30, 2010	14,644	24,376	49,011	14,604	102,635
As of Jan. 1, 2011	14,644	24,376	54,311	10,817	104,148
Transfer to other reserve		22			22
wn shares Change in o				-42	-42
Addition in accordance with Sect. § 58 II AktG					0
Dividend					0
Net profi t				3,571	3,571
As of Jun. 30, 2011	14,644	24,398	54,311	14,346	107,699

STATEMENT OF CHANGES IN EQUITY

in € '000	Jan, 1- Jun, 30, 2011	Jan, 1- Jun, 30, 2010	Change in %
Germany
Sales	86,229	82,655	4.3
Earnings before income taxes	4,047	4,108	-1.5
Export
Sales	25,361	20,548	23.4
Earnings before income taxes	1,055	924	14.2
Full Company
Earnings	111,590	103,203	8.1
Earnings before income taxes	5,102	5,032	1.4

SEGMENT REPORT FOR THE FIRST SIX MONTHS 2011

NOTES ON THE REPORT FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2011

1. Accounting principles

Westag & Getalit AG's quarterly report for the period ended June 30, 2011 was, except for IFRS 8 "Operating Segments", 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 2010 fi nancial statements. The waiver of applying IFRS 8 was conducted in order to prevent our company from expected business harm. As regards further reasoning, we refer to our Annual Report 2010.

2. Cash fl ow statement

The cash fl ows in the cash fl ow statement were determined using the indirect method.

3. Liquid funds

Liquid funds shown in the balance sheet doesn't include securities.

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.

1. Purchase commitments

As of June 310, 2011, purchase commitments amounted to € 6,306 thousand, compared to € 4,164 thousand in the previous year.

6. Review

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

1. Responsibility statement

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 fi nancial statements provide a true and fair view of the net worth, fi nancial 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 fi scal year have been outlined.

FINANCIAL CALENDAR*

March 24, 2011	Press Release
	Report on the results
	of the fi scal year 2010
March 29, 2011	Publication of Financial Report 2010
	(on the Internet)
April 7, 2011	Annual Financial Statements Press Conference
May 12, 2011	Report on the fi rst three months of 2011
July 26, 2011	Annual General Meeting
	in Rheda-Wiedenbrück
August 11, 2011	Interim report on the fi rst six months of 2011
August 30, 2011	Presentation of Westag & Getalit AG
	at the Small Cap Conference
	in Frankfurt/Main
November 14, 2011	Report on the fi rst nine months of 2011

* For updates refer to: www.westag-getalit.de/fi nanzkalender

Westag & Getalit AG

Postfach 26 29 | 33375 Rheda-Wiedenbrück | Germany Tel. +49 5242 17-0 | Fax +49 5242 17-75000 www.westag-getalit.de | ir@westag-getalit.de