Westag AG — Interim / Quarterly Report 2011

May 12, 2011

QUARTERLY REPORT

1st Quarter 2011

REPORT ON Q1 2011

Sales

In the context of the continued recovery in German construction activity, Westag & Getalit AG achieved a marked increase in sales revenues. In the fi rst quarter of 2011, sales revenues climbed 10.9% to € 55.7 million (2009: € 50.2 million). It should be noted that the prior year quarter suffered from the harsh winter.

Thanks to the pick-up in export activity, international sales increased at a clearly disproportionate rate of 32.4% to € 12.9 million (2009: € 9.8 million). The export share rose sharply to 23.2 % (2009: 19.4%).

Divisions

Sales revenue in € '000	Jan. 1- Mar. 31, 2011	Jan. 1- Mar. 31, 2010	Change in %
Plywood/Formwork	8,479	6,781	25.0
Doors/Frames	25,813	23,808	8.4
Laminates/Elements	19,746	18,364	7.5

The Plywood/Formwork Division benefi ted from greatly increased demand and boosted its sales revenues by an impressive 25.0% to € 8.5 million.

Thanks to the pick-up in construction activity and a sharp rise in export sales, sales revenues in the Doors/Frames Division climbed by 8.4% to € 25.8 million.

At € 19.7 million, sales revenues in the Laminates/Elements Division were up by 7.5%, primarily due to increased export sales.

Earnings

Profi t data in € '000	Jan. 1- Mar. 31, 2011	Jan. 1- Mar. 31, 2010	Change in %
Earnings before income taxes	2,283	2,072	10.1
Net Profi t	1,598	1,450	10.1
Earnings per share (in €)	0.28	0.25	10.1

Earnings before income taxes rose by 10.1% to € 2.3 million (2009: € 2.1 million), mainly due to the higher sales revenues. While the sharp rise in commodity prices had an adverse impact on the bottom line, the fi rst delayed price increases for our products had a positive effect. Overall, this allowed earnings to increase more or less proportionately with sales revenues.

Net profi t per share stands at € 0.28 (2009: € 0.25).

Capital expenditure

At approx. € 10 million, capital expenditures in 2011 will be more or less in line with depreciation/amortisation. An edge processing machine, which will clearly increase our effi ciency in the production of doors, will be the single most important investment.

Employees

Workforce	Mar. 31,	Mar. 31,	Change
	2011	2010	in %
Number of staff (incl. trainees/apprentices)	1,255	1,215	3,3

The headcount grew by a moderate 3.3% to 1,255 people in the fi rst quarter (2009: 1,215 people), which was clearly below the increase in sales revenues. At 3.2%, the rise in personnel expenses was also lower than the rise in sales, which contributed to the positive earnings trend.

Portfolio of own shares

As of March 31, 2011, Westag & Getalit AG held 292,422 own shares, all of which were preference shares. This means that the number of own shares increased by 7,615 shares as compared to December 31, 2010 in the context of the stock repurchase programme.

Outlook

From today's point of view, we expect the recovery in German construction activity to continue. Outside Germany, the situation will differ from country to country. There are signs of improvement at least in some of our relevant markets, primarily in Eastern Europe. At this stage, we therefore expect full-year sales to be up on the previous year.

Earnings are more diffi cult to forecast. The question whether the positive earnings trend of the fi rst quarter will continue depends on the future trend in commodity prices and on the success of our efforts to cushion the effect of rising commodity prices by increasing our own sales prices with as little delay as possible.

Against the background of our strengths in terms of product range, selling power, employees and cost consciousness, we are nevertheless confi dent that we will again achieve good results in the current fi scal year.

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

BALANCE SHEET

Assets in € '000	Mar. 31, 2011	Dec. 31, 2010
Intangible assets	677	663
Tangible assets	60,143	61,981
Financial assets	1,209	1,263
Deferred tax liabilities	0	0
Non-current assets	62,029	63,907
Inventories	37,047	33,944
Receivables and other assets	37,312	31,565
Cash at banks or in hand	10,695	20,176
Current assets	85,054	85,685
Total assets	147,083	149,592

Equity and liabilities in € '000	Mar. 31, 2011	Dec. 31, 2010
Subscribed Capital	14,644	14,644
Capital reserve	24,376	24,376
Revenue reserves	54,311	54,311
Accumulated profi t	12,308	10,817
Equity and reserves	105,639	104,148
Pension provisions	14,196	14,130
Other non-current provisions	1,421	1,563
Deferred tax liabilities	625	642
Non-current liabilities	16,242	16,335
Trade payables	10,246	11,408
Other current liabilities	14,646	17,135
Current provisions	310	566
Current liabilities	25,202	29,109
Total equity and liabilities	147,083	149,592

INCOME STATEMENT ON A QUARTERLY BASIS

in € '000	Jan. 1- Mar. 31, 2011	Jan. 1- Mar. 31, 2010
Sales	55,683	50,225
In/decrease in inventories	1,903	1,038
Own work capitalised	1	86
Total operating performance	57,587	51,349
Other operating income	710	441
Cost of materials	29,954	24,814
Personnel expenses	17,065	16,532
Depreciation and amortisation	2,463	2,443
Other operating expenses	6,568	5,957
Other taxes	51	73
Operating result	2,196	1,971
Financial result	87	101
Extraordinary items	0	0
Earnings before income taxes	2,283	2,072
Income taxes	685	622
Net profi t	1,598	1,450
Earnings per share (undiluted and diluted)	0,28	0,25
Number of shares (undiluted and diluted)	5,720,000	5,720,000

CASH FLOW STATEMENT

in € '000	Jan. 1- Mar. 31, 2011	Jan. 1- Mar. 31, 2010
Operating result/EBIT	2,196	1,971
Income tax payments	-1,091	-587
Depreciation and amortisation	2,463	2,443
Result from asset retirements	-16	-33
Change in current assets	-8,404	-9,267
Change in liabilities	-3,965	4,033
Cash fl ow from operating activities	-8,817	-1,440
Investments in fi xed assets	-640	-1,349
Change in fi nancial assets	54	53
Income from fi xed asset retirements	17	93
Cash fl ow from investment activities	-569	-1,203
Interest income	12	99
Interest expenses	0	0
Repayment of non-current fi nancial liabilities	0	0
Acquisition/sale of own shares	-107	-1,553
Dividend payments	0	0
Cash fl ow from fi nancing activities	-95	-1,454
Change in liquid funds	-9,481	-4,097
Cash and cash equivalents as of Jan. 1	20,176	19,594
Cash and cash equivalents as of Mar. 31	10,695	15,497

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				1,450	1,450
Mar. 31, 2010 As of	14,644	24,376	49,011	12,532	100,563
As of Jan. 1, 2011	14,644	24,376	54,311	10,817	104,148
Transfer to other reserve					0
wn shares Change in o				-107	-107
Addition in accordance with Sect. § 58 II AktG					0
Dividend					0
Net profi t				1,598	1,598
Mar. 31, 2011 As of	14,644	24,376	54,311	12,308	105,639

STATEMENT OF CHANGES IN EQUITY

SEGMENT REPORT FOR THE FIRST QUARTER 2011

in € '000	Jan. 1- Mar. 31, 2011	Jan. 1- Mar. 31, 2010	Change in %
Germany
Sales	42,764	40,464	5.7
Earnings before income taxes	1,784	1,685	5.9
Export
Sales	12,919	9,761	32.4
Earnings before income taxes	499	387	28.9
Full Company
Earnings	55,683	50,225	10.9
Earnings before income taxes	2,283	2,072	10.1

NOTES ON THE REPORT FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2011

1. Accounting principles

Westag & Getalit AG's quarterly report for the period ended March 31, 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 March 31, 2011, purchase commitments amounted to € 6,280 thousand, compared to € 2,433 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