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20091210-Presentation-Capital-Markets-Day-2009_new

VIEWS: 13 PAGES: 90

									                                          Capital Markets Day

Capital Markets Day                       November 27, 2009

November 27, 2009




                 Preparing for recovery                         Pfleiderer AG | 1
                                                      Capital Markets Day
                                                      November 27, 2009

Our mission

 To be one of the world’s leading manufacturers of engineered wood.
 To be an opportunistic and cautious consolidator in our market.
 To deliver strong cash flows and growth through cost and technology leadership.




                                                                            Pfleiderer AG | 2
                                                        Capital Markets Day
                                                        November 27, 2009

Content
 Maintaining strategic direction, adapting tactical focus
  Hans H. Overdiek, CEO

 Going for market share
  Pawel Wyrzykowski, Sales & Marketing

 Extending cost leadership
  Hans H. Overdiek, CEO

 The imperative of consolidation
  Hans H. Overdiek, CEO




                                                                              Pfleiderer AG | 3
                                            Capital Markets Day
                                           November
Maintaining strategic direction, adapting tactical27, 2009
                                                    focus
Hans H. Overdiek, CEO




                                                                  Pfleiderer AG | 4
                                                                              Capital Markets Day
                                                                              November 27, 2009

What has changed during the last two years?
 Simultaneous recession in all our markets in 2008 & 2009
 Balancing regional cycles worked in 2007 and partly 2008, but not in 2009
 Eastern Europe was subject to strong currency fluctuations
 Leveraged balance sheets vulnerable to business downturn
   GDP Change in %   2008   2009F   2010F

   Germany           1,3%   -6,3%   -0,3% Statistisches Bundesamt 2008; ifo-Institut for 2009 and 2010

   Poland            4,8%    1,0%    0,8% Forecast EU Commission

   Russia            5,6%    0,8%    1,6% Forecast EU Commission


                                          National Association of Homebuilders, Canada Mortgage and Housing,
   USA               1,1%   -2,9%    2,1% Royal Bank of Canada, Conference Board


                                          National Association of Homebuilders, Canada Mortgage and Housing,
   Canada            0,4%   -2,4%    2,5% Royal Bank of Canada, Conference Board

                                                                                                         Pfleiderer AG | 5
                                                                                    Capital Markets Day
                                                                                    November 27, 2009

Markets for engineered wood more affected than economy
 Housing starts down in almost all our markets
 Drop in demand for furniture (-13% in Germany Jan-Jul 09, also due to car scrappage scheme)
 Demand (in m3) for particleboard since peak down by: Germany                    -35%
                                                                                      North America -45%
                                                                                      Poland        - 9%
 Renovation largely stable
             Steep cyclical downturn, but no structural shift in demand …
             … but there is light at the end of the tunnel
   Housing Starts/Completed1)                 2008              2009F     2010F
   USA                 units                900,000             559,000   648,000
   CANADA              units                211,000             141,000   173,000
               2)
   Germany             units                150,200             163,700   182,800

   Poland              units                83.913              89.851     90.570
  1) Source: Pöyry 2009
  2) Source: Euroconstruct 2009, residential building permits
                                                                                                          Pfleiderer AG | 6
                                                      Capital Markets Day
                                                      November 27, 2009

Our first priority: adapting our tactical focus
 The pillars of our strategy remain the same…


                                           Medium term
                                           doubling turnover




 …but the short-term focus has shifted to cost control, cash management
  and strengthening of the balance sheet
 Equally importantly, industry capacity management is essential for a
  compelling business model with healthy margins                            Pfleiderer AG | 7
                                                        Capital Markets Day
                                                        November 27, 2009

Capacity management major driver of profitability
 Current overcapacities subdue prices
 Industry capacity utilization >85% in particleboard necessary to raise prices
 Current capacity utilization:
                               Industry      Pfleiderer
  -   Germany                  ~ 70%           ~ 90%
  -   North America panel      ~ 55%           ~ 65%
  -   North America flooring   ~ 52%           ~ 90%
  -   Poland                   ~ 85%           ~ 100%
  -   Russia                    ~75%           ~ 100%
 Competitive landscape still fragmented, with 25% of Western European
  capacity at inefficient production sites
 Lowest variable cost base drives competitiveness in a recession
          In order to return to healthy margins, more important even than
          demand growth is squeezing out inefficient capacity
                                                                              Pfleiderer AG | 8
                                                    Capital Markets Day
                                                    November 27, 2009

Future of Gschwend and Leutkirch (Thermopal)
 Plant Gschwend is mothballed and options will be evaluated next year
   Option 1: conversion of plant into pellet production
   Option 2: complete closure
   Option 3: restart when market picks up

 Plant in Leutkirch (Thermopal)                     EBIT Margin

  compensates the high production
  cost in raw PB (particleboard)
  through higher sales prices by                                          Thermopal
  offering about 97 % of its pro-
  duction as decorative panels
  (MFC, HPL and other) to high
  end market segments and is                                 Western
                                                             Europe
  being regarded as innovation
  leader in surfaces
                                                                          Pfleiderer AG | 9
                                                    Capital Markets Day
                                                    November 27, 2009

MDF Central Europe: more stable than PB
MDF market with smaller overcapacity than particleboard
 Baruth is one of the most efficient MDF plants in Western Europe
 Nidda has an average cost position but operates in some niche products
  (e.g. colored board, MDF flex, MDF for 3D application, Fibre compact, Low
  emission (CARB phase 2))




                                                                          Pfleiderer AG | 10
                                                       Capital Markets Day
                                                       November 27, 2009

Industry capacity management in Europe
Need for industry capacity management varies by region and product:
 Central Europe: - remaining PB overcapacity after recent closures to be
                     determined
                   - capacities of inefficient plants >2m m3
        PB price a strategic tool of cost-competitive players to eliminate
        inefficient plants

 Poland: Small overcapacity of 0.5m m3 will be absorbed by market growth
          within 1-2 years
          Pfleiderer has reduced costs significantly and gained market share,
          plants are fully utilized

 Russia: ~50% of industry capacity uncompetitive and exiting market,
          Pfleiderer gained market share and plants are fully utilized again
                                                                             Pfleiderer AG | 11
                                                                                        Capital Markets Day
                                                                                        November 27, 2009

Particleboard capacity1) closures completed or under way
Central Europe:                                  Eastern Europe:                                   North America:

Kaisersesch (Sonae)     -350. m3
                                                 Romania (Egger)               +600. m3            2008         - 192. m3
                                 3
Duisburg (Sonae)        -350. m
                                                 CR (Kronospan)                +350. m3            2009         - 474. m3
Gschwend (Pfleiderer) -300. m3
                                                 Ukraine (Kronospan)           +350. m3            2010e        - 661. m3
Bicken (Valentin)       -120. m3
                                                 Total additions:          +1,300. m3              Total:     - 1,327. m3
Leoben (Novopan)         -180. m3
Total reduction: -1,300. m3
CARB effect 2):         -350. m3

Announced:
Linopan (Belgium) 225. m3




1)   in thousand m3
2)   CARB – New Formaldehyde requirement decreases production output by ~ 2 % in 2010 and 4 – 5 % from 2011      Pfleiderer AG | 12
                                                               Capital Markets Day
                                                               November 27, 2009

MDF capacity1) closures completed or under way
Central Europe:                    Eastern Europe:                    North America:


Meppen (Sonae)        -130. m3
                                   Homanit         +220. m3           2008           - 276. m3
Herzberg (Homanit) -130.      m3
                                   Kronospan       +300. m3           2009           - 334. m3
Total reduction:      -260.   m3
                                   Total additions: +520. m3          Moncure      + 400.m3
                                                                      Total:         -210. m3




1)   in thousand m3
                                                                                      Pfleiderer AG | 13
                                                      Capital Markets Day
                                                      November 27, 2009

NA Panels: Reaping the benefits of restructuring
Panels
 Market capacity utilization ~ 55%      Uniboard utilization ~ 65%
 New mega site in Moncure will improve Uniboard’s competitiveness
  considerably
 Uniboard has highest share of value-added products in the NA industry
 Size of plants in Sayabec and Val D’Or are more than double NA
  average
 Uniboard’s cost structure will support further market share gains




                                                                            Pfleiderer AG | 14
                                                Capital Markets Day
                                                November 27, 2009

NA Panels: Industry capacity management
Panels                                             Average size of plant
 Many NA plants old and uncompetitive
 Expecting further plant closures
 Demand is expected to pick up again 2010
 Due to high average age of plants
  (maintenance requirement) capacity          300.000                           PB
  utilization is structurally lower than in
  Europe                                                                 MDF

 Wood supply is in some regions a limiting
                                              100.000
  factor                                                       PB
                                                         MDF
 Need for further industry consolidation
  persists                                           North America      State of the
                                                Source: Dieffenbacher
                                                                          art plant
                                                                        Pfleiderer AG | 15
                                                        Capital Markets Day
                                                        November 27, 2009

NA Flooring: reaping the benefits of restructuring
Flooring
   Market capacity utilization ~ 62%         Pergo utilization ~90%
   Market share rose from 15% in 2007 to >30% in 2009
   Brand recognition and sales channels differentiate Pergo
   Market seems to be bottoming out in 2009, but growth will not be sufficient to
    mop up excess industry capacity soon
 After restructuring Pergo emerged as strongest player in NA market
 MDF/HDF is major cost position of laminate flooring  as integrated player
    with a highly efficient MDF plant nearby Pergo can further extend its cost
    advantage



                                                                              Pfleiderer AG | 16
                                                       Capital Markets Day
                                                       November 27, 2009

NA Flooring: industry capacity management
Flooring
 Proportion of fixed costs in flooring lower than in panels  therefore lower
  pressure to consolidate
 Cost competitive players with a strong brand and distribution such as Pergo
  will dominate the market




                                                                             Pfleiderer AG | 17
                                                              Capital Markets Day
                                                              November 27, 2009

Our second priority: Improving balance sheet
 Highly leveraged balance sheets normal in our industry due to growth and
  consolidation (Gearing ratios: Sonae 205%, Egger 121%, Pfleiderer 120%)
 New financing gives us platform to take full advantage of recovery
 Need to strengthen balance sheet medium term through improved operating
  business and equity
 Cash management has top priority – capex on reduced levels 2009 & 2010




                                                                                    Pfleiderer AG | 18
                                                        Capital Markets Day
                                                        November 27, 2009

Summary
 Capacity management will be the key driver for significant improvement of
  margins
 All Pfleiderer plants in Eastern Europe and North America belong to cost
  leaders in their markets
 The majority of Pfleiderer plants in Germany are among cost leaders
 Pfleiderer’s competitive cost position will help to squeeze out uncompetitive
  industry capacity, but active consolidation is also an option
 New financial framework offers basis to achieve our goals




                                                                              Pfleiderer AG | 19
                         Capital Markets Day
                         November 27, 2009
Going for market share
Pawel Wyrzykowski, CMO




                                               Pfleiderer AG | 20
                                                             Capital Markets Day
                                                             November 27, 2009

Content
 Regional market status and strategies
    - Western Europe
    - Eastern Europe
                                      1)   Market position
    - Panels North America            2)   Market trends
                                      3)   Pfleiderer market strategy

    - Flooring North America
    - Flooring Europe
 Group Sales Strategy
 Approach for group sales strategy
                                                                                   Pfleiderer AG | 21
                                                                                          Capital Markets Day
                                                                                          November 27, 2009

BC Western Europe
    Site                  PB      MDF/HDF     HPL/E     Fin Surf    Resin       Impreg-
                                                                                 nation
1   Baruth                            x
2   Arnsberg                                     x                    x            x
3   Gütersloh II           x
    Gütersloh III                                           x                      x
4   Nidda                             x                     x
5   Ebersdorf              x
6   Neumarkt               x                                x
7   Gschwend               x
8   Leutkirch              x                     x          x                      x



                                                                                                         3                      1
PB                  =   Particleboard                                                                2
MDF/HDF             =   Medium Density Fibre Board/ High Densitiy Fibre Board
HPL/E               =   High Pressure Laminate / Elements                                                    4              5
FL                  =   Flooring
Fin Surf            =   Finished Surface                                                                                    6

                                                                                                                 7
                                                                                                                     8



                                                                                                                     Pfleiderer AG | 22
                                                                           Capital Markets Day
                                                                           November 27, 2009

European particleboard market
                  Production 2008                                               Capacity 2008


         Others                                                        Others
                                                                                                       Germany
                                                Germany
                       19%              22%                                     19%          19%
 Czech                                                        Czech
 Republic                                                     Republic
                 3%                                                        2%
Romania          3%                                          Romania       4%
                           34.5m m3                 France                            43.3m m3     11%
 Belgium         4%                           11%
                                                              Belgium      4%                               Italy
                  6%                                                        6%
                                                                                                 11%
          UK          7%                 9%                      Austria         7%
                           7%     9%                                                  8%   9%            France
         Austria                                Italy
                                                                           UK
                                      Poland                                                     Spain
                      Spain                                                      Poland


 Germany was a net exporter of 1m m3 of particleboard

  Source: European Panel Federation                                                                Pfleiderer AG | 23
                                                                              Capital Markets Day
                                                                              November 27, 2009


European particleboard capacity utilization


    100
      90
                                                                                              Germany
      80
                                                                                              France
      70
                                                                                              UK
      60                                                                                      Italy
      50                                                                                      Industry
                                                                                              Spain
      40
                 2004               2005               2006            2007   2008      Q1 2009


  Source: European Panel Federation (production divided by capacity)                                Pfleiderer AG | 24
                                                                Capital Markets Day
                                                                November 27, 2009

European MDF/HDF market
                Consumption 2008                                     Capacity 2008

          Others
                                                          Others
                                           Germany                                        Germany
                   22%                                               19%
                                     31%                                            29%
                                                     Austria
                                                                5%
 France       5%         11.1m m3                                        15.4m m3
                                                        UK      6%
               7%
  Spain                                                            9%
                                     11%                                            12%
                   7%                                  France            9%               Poland
     Belgium             8%     9%         UK                                 11%
                                                                 Italy
                    Poland       Italy                                         Spain




 Source: European Panel Forum                                                          Pfleiderer AG | 25
                                                                                         Capital Markets Day
                                                                                         November 27, 2009

Market shares in Germany
                 Particleboard                                                                        MDF

                                                                                              Others
        Others                                                                                                       Sonae
                                                 Pfleiderer                      Classen             5%
                       17%                                                                     11%          19%
 Egger                                     34%
                 5%
                                                                          Kronoswiss     14%
  Nolte         7%         7.1m m3                                                                   4.3m m3
                                                                                                                   18%
                                                                                                                           M&P
                                                                                                                           Kaindl
                    17%                                                                       15%
                                    19%                                          Pfleiderer               18%
 M&P Kaindl
                                               Sonae
                                                                                                                Egger




  Source: EPF, Pöyry, Pfleiderer estimates based on active capacity in Nov. 09                                      Pfleiderer AG | 26
                                                                           Capital Markets Day
                                                                           November 27, 2009

Consumption of particleboard and MDF by industries
                  Particleboard                                               MDF

  Russia                                               Russia




Germany                                               Germany



 Eastern                                               Eastern
 Europe                                                Europe



 Western                                              Western
 Europe                                               Europe


           0%     20%   40%   60%    80% 100%                    0%   20%      40%      60%   80% 100%

                         Furniture     Construction    Laminate Flooring        Other
  Source: Pyöry
                                                                                                 Pfleiderer AG | 27
                                                                                                                Capital Markets Day
                                                                                                                November 27, 2009

Per capita spending on furniture (2008)
  € 400
           362      360
                              350
                                      331

   300                                          275

                                                       230    228
                                                                          211
   200


                                                                                   114
   100                                                                                         82
                                                                                                        69
                                                                                                                    40      32

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  Source: VDM Verbände der Holz- und Möbelindustrie, October 2009                                                                     Pfleiderer AG | 28
                                                                   Capital Markets Day
                                                                   November 27, 2009

Pfleiderer sales in Western Europe
                Product type                                         Industry
             HPL                                             Others
                                     Raw PB
                                                                                           Furniture
Laminated MDF        11%                                            14%
                4%             23%
                                                                                    34%
  Raw MDF                                     Construction
             8%                                              12%
                     H1 09 in %                                     H1 09 in %
  Kitchen    13%
  Worktops
                            41%                                       40%


                     Laminated PB                                    Distribution
                                                                         DIY

    Value added products account for 69% of sales in Western Europe
                                                                                          Pfleiderer AG | 29
                                                                                                                                                                              Capital Markets Day
                                                                                                                                                                              November 27, 2009

 Pfleiderer sales in Western Europe* picking up

     m EUR
90                                                               84,6
                                                                        81,5          82,1
                    80,1                                                                                 80           78,2                 78,9
                                                     77,6 78,5
80    74,9                        76,3 76,6                                                  77
                                                                                                                                                  74,1
             73,2          71,6                                                                   73,5
                                                                                                              69,2
70                                            66,4                                                                           66,1
                                                                                                                                    63,5
                                                                                                                                                         61,7                        61,1                                   61   61,4
                                                                                                                                                                       58,7
60                                                                                                                                                                            56,8
                                                                                                                                                                                                         54,2
                                                                                                                                                                                            53,2   53
                                                                               51,6
                                                                                                                                                                                                                49,3 49,8
50
                                                                                                                                                                40,9
40

30

20

10

0
       1      2     3       4      5    6      7     8     9     10 11 12 1                  2     3     4     5       6     7       8      9     10 11 12 1                   2     3       4     5      6      7    8     9    10 11 12
                                       2007                                                                          2008                                                                               2009

             *) excluding Flooring Europe
                                                                                                                                                                                                                             Pfleiderer AG | 30
                                                      Capital Markets Day
                                                      November 27, 2009

Trends in Western Europe
  Demand for PB declined in Germany by 3% in 2008, expected decline for
     2009 -16%* and 2010 -4.6%**
  Export will remain difficult in 2009 and 2010
  At current prices the transport radius around a plant is approximately:
     -   HPL                     worldwide
     -   Kitchen Worktops        800 km
     -   MDF/HDF, laminated PB   400 km
     -   raw PB                  200 km
  Individualization of products (commodity vs. specialty)
  Light weight panels gaining in importance
  Environmentally friendly and sustainable products on the rise

  Source: *) HDH/VDM
         **) B+L Marktdaten
                                                                            Pfleiderer AG | 31
                                                       Capital Markets Day
                                                       November 27, 2009

Goals of business center Western Europe
  Exploring our strengths against weaker competitors (multi-product offer,
   excellent geographical coverage, innovations and environmentally friendly
   products)
  Strengthening our brands
  Increasing commercial project business
  Increasing market shares on non-core markets (Scandinavia, Eastern
   Europe, Italy, Oversee)
  Speeding up processes
  Increasing share of decorative panels
  Pushing innovative products such as fire resistant panels, digital printing,
   solid color from Duropal, thin worktops, new Wodego collection …
  Being closer to the markets
                                                                             Pfleiderer AG | 32
                                                                                       Capital Markets Day
                                                                                       November 27, 2009

BC Eastern Europe
    Site                   PB       MDF/HDF       Fin Surf      Resin        Impreg-
                                                                              nation
1   Grajewo I               x                         x                         x
    Grajewo II                           x
2   Silekol                                                        x
3   Wieruszow               x                         x                         x
4   Novgorod I              x                         x




PB               =   Particleboard                                                                  1        4
                                                                                         2
MDF/HDF          =   Medium Density Fibre Board/ High Densitiy Fibre Board
HPL/E            =   High Pressure Laminate / Elements
FL               =   Flooring
Fin Surf         =   Finished Surface
                                                                                              3




                                                                                                                 Pfleiderer AG | 33
                                                                           Capital Markets Day
                                                                           November 27, 2009

Eastern Europe
     Particleboard capacity in 1 000 m³                   Particleboard consumption in 1 000 m³



      Others                               Russia        Others                                     Russia
                  4475                                                  2865
                                                                                          3552
                                  6555


Ukraine      1095                                   Romania      700

               1500                                                750
                                                    Czech Rep.
Czech Rep.                                                               895
                    1530   3320                                                      3080
                                                              Ukraine
          Romania                 Poland                                                    Poland




    Source: EPF                                                                                  Pfleiderer AG | 34
                                                               Capital Markets Day
                                                               November 27, 2009

 Eastern Europe
                  MDF capacity in 1 000 m³                   MDF consumption in 1 000 m³
                    Others                                          Others
       Hungary
                                                      Czech Rep.
                         150                                            194
                   210                             Romania         75
Romania
             350                                             200
                                                                                                 Russia
                                          Poland                                      965
                                   1850



              1350                                             900
    Russia                                          Poland




    Source: EPF                                                                      Pfleiderer AG | 35
                                                                                                 Capital Markets Day
                                                                                                 November 27, 2009

     Market share 2009e – Poland
              Raw chipboard                                                                                      HDF
                                                                                                            Import
                                                                                                              8%
    Import                               Pfleiderer                                                                             Pfleiderer
     28%                                    24%                                                                                    29%
                                                                                             Homanit
                                                                                               27%

                                                                    MFC
                     3.1m m3                                                                                    0.4m m3
                                                           Import
                                                            16%
Kronopol                                                                            Pfleiderer
  10%                                                                                  33%
                                                                                                 Kronopol
                                      Kronospan                                                     5%                    Kronospan
                                         38%                                                                                 31%
                                              Kronopol              1.4m m3
                                                19%




                                                                              Kronospan
                                                                                 32%
           Source: Pfleiderer Grajewo Sales Department estimates                                                       Pfleiderer AG | 36
                                                                   Capital Markets Day
                                                                   November 27, 2009

MFC market share in Russia
          Central Russia                                        North-West Russia
                                                                North-West Russia

                            Pfleiderer
                               10%
                                                        Other
  Other                                                 29%                              Pfleiderer
  36%                                                                                       43%
                                          RUS
                                         Laminat
                                          29%



                                                   Kronospan
                                                      11%
    Kronospan                                             Kronostar
                Kronostar   Egger                            4% Egger Nevska
       13%
                             8%                                    2% Dubrovka
                   4%
                                                                        11%




                                                                                          Pfleiderer AG | 37
                                                       Capital Markets Day
                                                       November 27, 2009

Trends in Eastern European panel markets
  Significant potentials in domestic consumption level (medium and long term)
  Particleboard overcapacity of ~7% in Poland is expected to be mopped up by
     growth soon
  Currency risk exposure due to high dependence of the Polish furniture exports
     to EURO-zone (~ 85% of total production)
     - current trade influence
     - high risk in investment and long-term export contract planning
    Board on frame – growing substitution for thick chipboard
    Individualization of furniture offer
    Some of Russian competitors in particleboard expected to exit the market
    Growing timber prices in EU-Eastern Europe

                                                                             Pfleiderer AG | 38
                                                      Capital Markets Day
                                                      November 27, 2009

Goals of Pfleiderer in Eastern Europe
  New market segments (construction, interior decoration) with new products
     (HPL, Pergo, MFB, Livingboard, V100)
  Protecting market shares in selected regions (Poland, Baltic States, N-W
     Russia, Kazakhstan)
    Increasing our footprint on selected markets (S-E Europe, Central Russia)
    Pursuing exports of thin HDF to Western Europe
    Action plans focused on customers of weakened Russian competitors
    Pushing MDF from Baruth in Poland
    Strengthening our cooperation and trade with IKEA




                                                                            Pfleiderer AG | 39
                                                         Capital Markets Day
                                                         November 27, 2009

BC Panel North America
                             Site                   PB     MDF/HDF Fin Surf       LF         Resin
                         1   Sayabec                 x                 x
                         2   Moncure                 x       x*
                         3   Mont-Laurier                     x                                x
                 3       4   Val D‘Or                x
         4           1       Unires                                                            x
                         5   Fostoria                                    x



                         *(Start of production Q3/2009)
     5

                         PB              =   Particleboard
                         MDF/HDF         =   Medium Density Fibre Board / High Densitiy Fibre Board
                         HPL/E           =   High Pressure Laminate / Elements
                         FL              =   Flooring
                         Fin Surf        =   Finished Surface

             2




                                                                                       Pfleiderer AG | 40
                                                                               Capital Markets Day
                                                                               November 27, 2009

North American particleboard consumption

 m m3                                                                                            Utilization
 12       10,518           10,34          9,907                                                      90%
 10                                                    8,692
                                                                      7,303                          80%
  8                                                                            5,738     6,195
                                                                                                     70%
  6
  4                                                                                                  60%
  2                                                                                                  50%
  0                                                                                                  40%
         2004             2005            2006        2007           2008     2009e     2010e
                                     Consumption
                                   Consumption     Capacity utilization
                                                       Capital utilization


  Source: RISI – July 2009 forecast                                                                  Pfleiderer AG | 41
                                                                                Capital Markets Day
                                                                                November 27, 2009

North American MDF consumption

 m m3                                                                                              Utilization
                           6,392            6,476        6,215
          6,075
                                                                        5,426                          90%
 6                                                                               4,398      4,81
                                                                                                       80%
 4
 2                                                                                                     70%

 0                                                                                                     60%
         2004             2005             2006         2007            2008    2009e     2010e
                                       Consumption
                                     Consumption
                                                     Capacity utilization
                                                         Capital utilization


 Source: RISI – July 2009 forecast                                                                     Pfleiderer AG | 42
                                              Capital Markets Day
                                              November 27, 2009

New and existing home sales appear to have bottomed
                                               Thousands, SAAR
 6500                                     Existing    New (Right)           1600
                                                                            1400
 6000
                                                                            1200
 5500
                                                                            1000
 5000                                                                       800
                                                                            600
 4500
                                                                            400
 4000
                                                                            200
 3500                                                                       0
        00      01   02   03   04   05   06    07      08      09
 Source: RISI                                                       Pfleiderer AG | 43
                                                                  Capital Markets Day
                                                                  November 27, 2009

Furniture sales looking for a bottom and improved home
sales should provide support: home sales and furniture sales

8,0                                                                                          10,0
7,5                                                                                          9,5
7,0                                                                                          9,0
6,5                                                                                          8,5
6,0                                                                                          8,0
5,5                                                                                          7,5
5,0                 Home Sales (Million Units)                                               7,0
4,5                                                                                          6,5
4,0                 Furniture Retail Sales ($ Bil., Right)                                   6,0
  2000           2001   2002    2003    2004     2005    2006   2007   2008    2009
  Source: RISI                                                                          Pfleiderer AG | 44
                                                                                      Capital Markets Day
                                                                                      November 27, 2009

Market shares in North America
                   Particleboard                                                                 MDF

                                                                                              Others
                                       Temple-Inland
              Others                                                              Kronospan                      Flakeboard
                                     12%                                 Langboard         5% 5%
                         16%
     Boise                                                                 Unilin        5%               24%
                   4%                                  Flakeboard                      5%
                                              15%
                                                                       Clarion        5%
    Tafisa        9%        10.7m    m3                                                         5.0m m3
                                                                    Sierra Pine       7%
                                                                                                             11%
                                                                                                                       Plum Kreek
                    9%
      Sierra-                                                                           11%                            Currently closed
                                           21%
       Pine                                                                                            11%
                           14%                                        West Fraser               11%
                                                   Roseburg
                                                                                                          Uniboard
                  Uniboard                                                                    Temple      (Pfleiderer, incl.
                  (Pfleiderer)                                                                            Moncure)




  Source: Pfleiderer estimates based on capacity
                                                                                                                Pfleiderer AG | 45
                                                     Capital Markets Day
                                                     November 27, 2009

Trends in North American panel market
  New residential housing market showing some signs of life
  Market seems to bottom in 2009, growth anticipated for 2010
  Large volume of foreclosed home sales which will require repairs before
     occupancy
    Competitor plant closures expected
    MDF market coming under pressure as Moncure plant ramps up
    Green products continue to grow
    Raw material prices expected to rise




                                                                           Pfleiderer AG | 46
                                                              Capital Markets Day
                                                              November 27, 2009

Goals of Uniboard
  Gaining market share
   -   New MDF/HDF plant in Moncure will be regional cost leader
   -   Cost position of PB plant in Moncure will benefit from megasite effect
   -   One stop shop in Moncure
   -   Grow volumes of laminated PB and MDF
   -   Grow new products and new market segments
  Improve cost position
  Leadership in Green products

             Uniboard: “Setting the Standard”



                                                                                    Pfleiderer AG | 47
                                                        Capital Markets Day
                                                        November 27, 2009

BC Flooring North America
                              Site                 PB     MDF/HDF Fin Surf       LF        Resin
                            1 Laval                                   x           x
                            2 Raleigh                                 x           x




                            PB          =   Particleboard
                 1          MDF/HDF     =   Medium Density Fibre Board / High Densitiy Fibre Board
                            HPL/E       =   High Pressure Laminate / Elements
                            FL          =   Flooring
                            Fin Surf    =   Finished Surface




             2




                                                                                      Pfleiderer AG | 48
                                                                  Capital Markets Day
                                                                  November 27, 2009

North American floor covering market
 bn US $
 25.000                               1.272     1.383
                  1.104               2.216     2.265    1.257                     Laminate
 20.000           2.065
                  2.189
                                      2.344     2.464    2.009
                                                         2.077
                                                                        1.017
                                                                        1.511      Wood
                                      2.910     2.882                   1.738
                  2.443                                  2.707
 15.000           2.797               3.052     3.134
                                                         2.971
                                                                        2.636      Tile
                                                                        2.713
 10.000                                                                            Resilient & Rubber
                  11.613               12.438   12.587   11.316
  5.000                                                                 10.128     Rugs
                                                                                   Carpet
      0
                 2004                 2005      2006     2007          2008

 Laminate flooring sales are down by 26% since peak in 2006 and
 another decline of 18% in 2009 expected

   Source: Floor covering news, June 29, 2009                                             Pfleiderer AG | 49
                                                                                      Capital Markets Day
                                                                                      November 27, 2009

North American floor covering market structure
        Residential vs. Commercial                                                    By sales channels

                                                                                      Others
                                                                                                                          Specialty
                                                     Residential
                                                                                                                            floor
                                                                                               14%
                                                                                                                               covering
Commercial                                                                                                                       stores
                   32%           7%                                     Contractors
                                                                                       10%
                                                                                               35%



                                                                                                               65%
                                                                                                                         54%

                                      93%     68%                                        22%
                                                                       Home centers


                 Outer circle: whole floor covering market                      Outer circle: whole floor covering market
                 Inner circle: laminate flooring market                         Inner circle: laminate flooring market




    Source: Floor covering news, June 29, 2009, Pfleiderer estimates                                                     Pfleiderer AG | 50
                                                                        Capital Markets Day
                                                                        November 27, 2009

Market shares in NA laminate flooring

         Pergo                                                   Pergo became the dominant
         private label
                                                                  player in NA flooring market
                                           Pergo
                      9%
                                   21%
                                                                 New MDF/HDF production site
Others                                                            will improve cost position further
                                                                 Pergo sales grew by 4% (local
         35%                             10%       Armstrong/     currency) in first 9 month 2009
                                                   Bruce
                                                                  despite a market decline of 18%
                               14%
                              3%
                              2%
                                    Shaw                         Approx. 20% of NA laminate
                       5% 10%      Mohawk                         consumption is imported
                                           Mannington
            Lowe‘s          Home Depot
            priv. label     priv. label


   Source: Pergo estimates, 12 month ending June 2009                                         Pfleiderer AG | 51
                                                          Capital Markets Day
                                                          November 27, 2009

Trends in North American laminate flooring market
 North America economy will continue to be soft into late 2009/early 2010,
    significantly affecting consumer demand for laminate and other flooring.
    This will continue to apply downward pressure on pricing
 Home centers, wholesale clubs and Lumber Liquidators will continue to take
    outlet share from traditional specialty flooring retailers
 Private label programs continue to be growing
 Chinese supplier logistics and local infrastructure has limited their ability to
    penetrate the market. Products are offered at the low end of the mix
 Overcapacities are high but not managed very pushy with the exception of
    one competitor




                                                                                Pfleiderer AG | 52
                                                      Capital Markets Day
                                                      November 27, 2009

Goals of Pergo North America
  Maintain dominating leadership position within premium and mid-price
   laminate flooring segments
  Push capacities to European performance levels
  Maintain/grow distribution position at US home centers and wholesale clubs,
   expand distribution at Home Depot/Lowe’s in Canada and Mexico
  Restructure US and Canadian specialty retail businesses
  Continue to leverage branding, superior design and home center/wholesale
   clubs service capabilities as key points of difference. Support Pergo brand
   and consumer relevant laminate flooring innovations as available
  Grow commercial laminate flooring opportunity

 THERE’S ONLY ONE PERGO
                                                                            Pfleiderer AG | 53
                                                                        Capital Markets Day
                                                                        November 27, 2009

BC Flooring Europe
Pergo Group (inventor of laminate flooring) is a
worldwide leading manufacturer of laminate flooring
2 Pergo-plants in Trelleborg and Perstorp are part of
BC Western Europe

European Sales Offices in:   Overseas Sales Offices in:     Perstorp plant
- Spain                      - India
- Denmark
- Norway
- Finland
- The Netherlands
- Germany
- Switzerland
- UK
- Belgium
- France

                                                 Trelleborg plant
                                                 Head office




                                                                                              Pfleiderer AG | 54
                                                                   Capital Markets Day
                                                                   November 27, 2009

European flooring market

                      Parquet
                                                           Market is expected to decline in
    Resilient
                             6%                             2009 to below 2,000 M m2
                   14%
                                               Textiles
                                         37%
                               2008
               14%          2,160 M m2
 Laminate



                             29%

                       Ceramic/Stone



  Source: Pergo estimates                                                                Pfleiderer AG | 55
                                                                                                        Capital Markets Day
                                                                                                        November 27, 2009

European laminate flooring market demand


  m m2
                                                                                        422
  450                                                                                                 400
                                                             356          373                                                  370
  400                                          334                                                                363
  350                                299
  300                  251
  250      195
  200
  150
  100
   50
    0
         2001          2002      2003          2004      2005         2006         2007           2008           2009e        2010e
   Change %:   28,5&         19,1%     11,9%          6,4%         4,8%         13,7%         -5,7%         -11,9 %      2%




                                                                                                                                      Pfleiderer AG | 56
                                                       Capital Markets Day
                                                       November 27, 2009


European laminate flooring market share by sales value
                         Kronotex 18,7%
                         Kronospan 14,6%
                                             Installed capacity of ~900m m2
                         Kaindl 8,5%
                         Classen 8,3%
                                             On top around 100m m2 capacity based
                         Egger 8,1%           on foil and direct printing
                         Unilin 4,4%
                         Pergo 4,1%
                                             Installed capacity: Germany ~ 400m m2
                         Balterio 3,4%                            Belgium      ~ 98m m2
                         Berry 2,7%                               Turkey       ~ 67m m2
                         Meister 2,6%
                         Parador 2,4%        Total 59 production sites including 14
                         EPI/Alsapan 2,2%
                                              newcommers
                         alloc 2,1%
                         witex 1,8%          Turkey features the most modern
                         FausFinsa 1,7%
                         Tarkett/Sonae 1,2%
                                              equipment with an average age of only
                         Turkey all 5,9%      5 years
                         Others 7,3%




                                                                             Pfleiderer AG | 57
                                                        Capital Markets Day
                                                        November 27, 2009

Trends in European laminate flooring market
  Significant overcapacity with numerous plants for sale
    2007 = 100% = 607m m2 production            = 302m m2 over-capacity = 33%
    2008 = 85% = 516m m2 production             = 393m m2 over-capacity = 43%
   6/2009= 72% = 437m m2 production             = 469m m2 over-capacity = 52% (H1 09)

  Strong differentiation trends
  The European mega site producer are fighting with prices around 2.65 Euro m2
   delivered for a 6mm product. Target: big box to fill capacities
  Competitors selling HDF incl. a free locking licence in order to secure their
   business
  Other types of floors develop strategies to protect their footprint against
   laminate flooring


                                                                              Pfleiderer AG | 58
                                                            Capital Markets Day
                                                            November 27, 2009

Goals of Pergo Europe
   Keep high margins (no volume for lower price!)
   Attack top segment of mid class with HDF
   Differentiate commercial vs. residential applications
   Defend the premium price (through emphasizing surface difference,
    FoldDown)
 Develop new competencies with softwood
 Develop myPergo (floor customization)
 Fresh marketing setup and new collection




                                                                                  Pfleiderer AG | 59
                                        Capital Markets Day
                                        November 27, 2009

Approach for the group sales strategy
 22 Production Sites on 2 Continents




                                                              Pfleiderer AG | 60
                                                       Capital Markets Day
                                                       November 27, 2009

General trends
 Short and medium term:
    Manage overcapacities
    Market changes both: supply and demand side
    Commodity vs. specialty
    Woodworking markets remain regional, but first trends of globalization

 Medium and long term:
  Growing timber costs → need of innovations
  Need for innovative energy solutions
  Growing importance of being “green” (formaldehyde, CO², recycling, up- and
     down stream)

                                                                             Pfleiderer AG | 61
                                                                    Capital Markets Day
                                                                    November 27, 2009

Engineered wood: pricing model
 Price
 level                                                        External price factors: demand
                                                               and capacity utilization first
                                                               define the industry price level
                                                              Variable cost → as natural
                                                               barrier of minimum price level
                                                              80 – 90 % of capacity
                                                               utilization allows to reach
                                                               prices at satisfactory margin
                                                               level
variable
product
cost x                                                        Internal effects can improve
                                                               price by 2 – 10 %
                                                              Internal price improvement less
                              50%         100% capacity
           Industry average price level
                                               utilization     effective at very low and very
           Individual price level                              high capacity utilization
                                                                                          Pfleiderer AG | 62
                                                                                                        Capital Markets Day
                                                                                                        Capital Markets Day
                                                                                                        November 27, 2009
                                                                                                        November 2009
                                                                    one stop     R&D
      Competitive sales                                             shop
                                                            commodity
                                                                                       trendy
      balanced score card
                                                            vs. specialty

                                                                    innovative    quality

                                                                           Product




               sampling
               systems                                                                                                                     after sales
managing
distributors           product
                                            Marketing                Size = internal price                 Service           order route                 supply chain
                       visualization                                                                                                                     mgm.
                                                                         effect power
      applications brands                                                                                                         payment           face to
      training                                                                                                                    conditions        customer




                                  supply
                                  chain                                                                         business          ecology
                                                                                                                history
                   one stop                  just in    Logistics                               Trust
                                                                                                           supply                    transparency
                   shop                      time                                                       accountability
                  transposition            stock mgm.                                                          global vs.         personal rapport
                  economy                                                                                      local touch
                                                                                                                                           Pfleiderer AG | 63
                                                      Capital Markets Day
                                                      November 27, 2009


Increasing awareness of sustainability and ecology
  Our conviction: profitable economic activity and handling resources with
   care do not at all contradict each other, but rather determine one another
  Our self-concept: preserving energy and resources, reducing emissions
   and manufacturing sustainable products
  Our strategy: based on three pillars – organization, production, products

   Organization: improvement                      Production: permanently
   and transparency by                             optimizing production
   management systems                                processes for further
   (ISO 14001)                                         reduction of energy
                                                         and resources

  Products: concentration
  on R&D activities regarding
  light engineered wood products


                                                                             Pfleiderer AG | 64
                                                    Capital Markets Day
                                                    November 27, 2009

CO² emissions
Net emissions of CO² including carbon sink effect




CO² emissions from different house constructions




Source: CEI-Bois
                                                                          Pfleiderer AG | 65
                                      Capital Markets Day
                                      November 27, 2009

The carbon cycle of wood-based products




                                                            Pfleiderer AG | 66
                                                      Capital Markets Day
                                                      November 27, 2009

Sales strategy: Pfleiderer group
  Remain one of the top regional players on our core markets
  strengthen our regional position by unutilized group marketing features:
   - Global product and décor offer
   - Transfer of know-how
   - Excellent reputation
  Improve our market position on non-core markets through integrated
   organization
  Promote Pfleiderer/Pergo value pentagon ( ) more consciously
  Strengthening our trade and relationships with IKEA
  Offer one-stop-shopping for trade
  Developing product innovations (particle board vs. board on frame, light board)
  Be closer to our markets (more face to face, CRM, managing market data)
  Position our self as promoter of environmental-friendly, healthy, low-CO²
   solutions                                                                Pfleiderer AG | 67
                             Capital Markets Day
                             November 27, 2009
Aiming for cost leadership
Hans H. Overdiek, CEO




                                                   Pfleiderer AG | 68
                                                                         Capital Markets Day
                                                                         November 27, 2009

Overview of our cost reduction initiatives
                     In the last quarter of 2008 management initiated the “cost reduction initiative 2008”
                      (CRI 2008) as a reaction to deteriorating market conditions.
                     The programme replaced former local cost reduction initiatives and coordinated
                      efforts throughout the group.
   CRI 2008
                     Large portion of the savings related to global purchasing and material consumption;
                      hence volume-driven and dependent on overall purchasing and material use
                      volumes.
                     Major focus: reducing variable costs


                     Start at the end of 2009

                     Focus on lowering fixed costs via streamlining and realignment of the entire
                      organizational structure
   CRI 2009
                     Target >10m €




      Total expected savings for 2009 > 100 m €
      Preparation of program for 2010 with additional savings 30 – 50 m €                         Pfleiderer AG | 69
                                                                Capital Markets Day
                                                                November 27, 2009

Four pillars of our cost leadership position
    Continuation of purchasing offensive

    Optimization of supply chain (inbound, outbound, stocks)

    Maximising economies of scale
                Overheads
                Maintenance
                Consumption

    Pushing innovation will enable introduction of products with higher margins




                                                                                      Pfleiderer AG | 70
                                                                       Capital Markets Day
                                                                       November 27, 2009

Pillar 1: Purchasing Offensive
 Target: savings € 80 m in 2009
 Kick-off with global project organization (“Purchasing Offensive”)
 Transfer of Best Practices and reorganization of global purchasing
                                                                       State-of-the-art purchasing
Roadmap                                             Roll out
                     Feedback-Loop




                                                                                   Sustainability
                                                                                     Competitive
                                                           Processes                advantage for
                                                      Purchasing processes       PFLEIDERER Group
        Set Up                 Organization               implemented
 Purchasing offensive        Global Purchasing         “Process-orientated          30 Dec. 2009
 successfully finalized,     Organization set up           purchasing”
best practices identified
                                30 June 2009              30 Sept. 2009
     28 Febr. 2009

                                                                                             Pfleiderer AG | 71
                                                    Capital Markets Day
                                                    November 27, 2009


Toolkit of Process Oriented Purchasing



     Central                          Internal
                    Cost Break
  supervision of
                      Down
                                    best-practice           Purchasing
    methods                           sharing                Network
                                                          Flooring          West



                                                           Panel        PERGO EU



                                       Global                             Corporate
    Regular                                                East           Purchasing
                   Target setting     Tandems
  workstream-
                      per BC        (Purchasing /              Basis set up
   meetings
                                    Engineering)


                                                                            Pfleiderer AG | 72
                                                    Capital Markets Day
                                                    November 27, 2009

Process-Oriented Purchasing Opens Even More Potential
               Approximately:
                                                    Market

                                                 Market-driven
    50 % of the savings are market-driven       price decreases



                                                  Purchasing

                                                   Usage of
  40 % of the savings are purchasing-driven      PFLEIDERER
                                               Purchasing Toolkit



                                                 Organizational
    10 % of the savings are organizational                           Purchasing
                                                                      Einkauf     Engineering
                                                                                  Technik
                                              Tandem Purchasing /
                                                  Engineering

                                                                            Pfleiderer AG | 73
                                                      Capital Markets Day
                                                      November 27, 2009

Pillar 2: Supply Chain Management



                              Process Oriented          Supply Chain
     Purchasing Offensive
                                    Purchasing          Management




 Inbound           Internal        Production    Distribution         Special
                  Logistics         Logistics     Logistics           Subjects



                                                                            Pfleiderer AG | 74
                                                              Capital Markets Day
                                                              November 27, 2009

Supply chain management: savings potential

 Best-case expectations:
  - Inbound: - 8 %
  - Internal logistics: - 10 %
  - Outbound: - 7 %
  - Inventories: - 10 % (min.)
  - Potential to reduce working capital by up to € 20 Mio. and logistics costs by
     ~ € 8 m if implemented group-wide


 Building an integrated supply chain concept for logistics with sustainable process and
  cost optimization: „structure follows strategy“




                                                                                    Pfleiderer AG | 75
                                                           Capital Markets Day
                                                           November 27, 2009

Pillar 3: Mega site solutions create scale effects
    Grajewo (PL)

                                      Volume effects – wood, chemicals etc.
                                      Joint use of technical infrastructure, e.g.
                                       wood yard, chipping, energy plant etc.
                    Novgorod (RUS)    Logistical optimization
                                       - Improvement of in- and out-bound
                                          transportation
                                       - Automated internal transport
                                          (pipeline, conveyor, AGV etc.)
    Moncure (USA)                      - Minimized stocks between process steps
                                      Process optimization through short
                                       distances and direct contact – fast and
                                       flexible
                                      Use of shared services, e.g. administration,
                                       maintenance etc.                          Pfleiderer AG | 76
                                                            Capital Markets Day
                                                            November 27, 2009

Pillar 3: standardization of processes and IT systems

    Pfleiderer’s inorganic and heterogeneous growth has led to a fragmented IT
     in terms of both systems and organization.


    Pfleiderer’s IT is not yet fully utilizing the benefits of standardization.

 Targets
  Global standardization of business processes and IT systems
  Reduction of IT costs by 6 m € p.a.
  Headcount reduction by 30 FTE




                                                                                  Pfleiderer AG | 77
                                                                                 Capital Markets Day
                                                                                 November 27, 2009

Optimization and standardization of processes group-wide
        Business domain                                   Business domain content

   Product development    tools for the creation of the physical products and also their description in the
                          systems
   Marketing              tools for advertising, product- and decor-management

   Sales management       tools as bonus, sales-controlling and – information systems
   Order processing       offer, credit control, order creation, invoices, reminders
   After sales            complaints, guarantees, goodwill, dunning process
   Product planning       cutting optimization, production planning, planning of material requirements

   Logistic execution     transport planning, shipment, transport billing
   Manufacturing          production of finished goods, semi-finished products and material components

   Supplier management    vendor selection, supplier assessment and rating
   Procurement            for all material and services
   HR                     payroll accounting, personal development and hr-management

   Finance / accounting   finance, accounting, controlling, tax
   IT                     all applications which are not process specific are mentioned in the IT process
                          (Outlook, EDI, etc.)
                                                                                                              Pfleiderer AG | 78
                                                                  Capital Markets Day
                                                                  November 27, 2009

Pillar 3: Global Pfleiderer Production System (GPPS)
 Implementation of a standardized production system in all Pfleiderer plants globally
   ensures maximum transparency in all production processes
 One key element in GPPS is process benchmarking:
   - Specific consumption and costs of all in-process materials
   - Performance and plant availability indicators
   - Quality and in-process losses
 Sound base to effectively identify Best Practices in all fields of operations
 GPPS is ensuring fast transfer of Best Practices within the group;
   Improvement of competitiveness – fast and sustainable
 During acquisitions the standardized production system allows to quantify synergies and
   to disclose additional potentials in operations; their effective realization during PMI-
   process is ensured through GPPS.



                                                                                        Pfleiderer AG | 79
                                                                   Capital Markets Day
                                                                   November 27, 2009

Pillar 3: Striving for lowest variable costs
                                        Wood costs
                                         - Continuous adoption of the best available wood mix
Manufacturing Costs Particleboard            under cost considerations
    Fixed costs 15%         Wood 40%     -   Reduction of overall wood consumption
Personnel 5%                             -   Improvement of yield along the whole process chain
                                         -   Increase of percentage of recycled wood
                                         -   Trials with new types of biomass

Energy 15%
                                        Glue costs
                                         - Vertical integration through Silekol and Unires
                                         - Optimization of glue consumption
                 Glue 25%
                                        Energy costs
                                         - Major key is in-house biomass co-generation

                                                                                         Pfleiderer AG | 80
                                                       Capital Markets Day
                                                       November 27, 2009

Pillar 4: Innovations allow higher margins

  Innovations focus on:
      Surface (design, durability, embossment etc.)
      weight
      resource substitution
  New applications for existing products




                                                                             Pfleiderer AG | 81
                                                        Capital Markets Day
                                                        November 27, 2009

Summary

  Cost reductions and cash management still top priority
  All Pfleiderer plants in Eastern Europe and North America belong to cost
   leaders in their markets
  The majority of Pfleiderer plants in Germany are among cost leaders
  Pfleiderer management has a solution for German plant with high cost
   position
  After achieving goal of top-class variable costs we aim for reduction of
   fixed costs
  Our product innovations open up new sales perspectives



                                                                              Pfleiderer AG | 82
                              Capital Markets Day
                              November 27, 2009
The logic for consolidation
Hans H. Overdiek, CEO




                                                    Pfleiderer AG | 83
                                                              Capital Markets Day
                                                              November 27, 2009

Success factors in our industry
 Cost leadership in a commoditized industry                                             
  - Lowest variable costs determine competitiveness in a recession
 Differentiation against competitors: Selling more than a product                       
  - Just-in-time delivery & capability to offer large volumes at short notice
  - Support with broad range of designs / value-added products
  - Customer-specific solutions
 Size supports margins                                                                  
 Managing capacities is essential due to high capital intensity                         



                                                                                    Pfleiderer AG | 84
                                                Capital Markets Day
                                                November 27, 2009

Size matters in our industry
   …for purchasing of raw materials
   …for purchasing of equipment
   …for an efficient production on megasites
   …for distribution synergies
   …for maintaining pricing power




                                                                      Pfleiderer AG | 85
                                                         Capital Markets Day
                                                         November 27, 2009

Capacity management major driver of profitability
 High capital intensity (~€150m / plant) necessitates high capacity utilization
 Demand fluctuation has significant impact on sales prices as industry tries
  to fill capacities
 Gross margin affected from two angles: prices and volume
          Balancing supply with demand is key to restore profitability

 Options available:
  - Weakest competitor / plants exit market due to cost structure
  - Consolidation, mergers, etc. with plant closures

           Industry managed to solve overcapacity in the last downcycle
               through several plant closures and takeovers
                       As a result prices increased by ~40%                    Pfleiderer AG | 86
                                                              Capital Markets Day
                                                              November 27, 2009

Pfleiderers’ position in the industry
Strength                                       Weaknesses
 Strong market position                        Stretched/leveraged balance sheet
 Leadership in production costs and            Cyclical industry
  technology                                    Overcapacities in some markets
 Regional and operational diversification
 Successful M&A track record

Opportunities                                  Threats
 Growth opportunities in Eastern Europe        Continued weak demand with price erosion
  and through industry consolidation            Rising raw material prices
 Market share gains due to excellent           Exchange rate risks
  cost position
 Utilization of unexploited synergies, e.g.
  megasites, vertical integration

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Disclaimer
This document has been prepared by Pfleiderer AG (the “Company”) solely for use as a presentation and is furnished only to you solely for your information and may not be
reproduced or redistributed or published, in whole or in part, to any other person, for any purpose.
This document constitutes neither an offer to sell or issue nor a solicitation to buy, acquire or subscribe any securities of the Company, and neither this document nor anything
contained herein nor the fact of its distribution shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. In particular, these materials are not
an offer for the sale of securities or an invitation to purchase any securities in any jurisdiction, in particular in the United States. The securities of the Company have not been
registered under the United States securities laws and may not be offered, sold or delivered within the United States or to or for the account or benefit of “U.S. persons” (in the
meaning of Regulation S of the US Securities Act of 1933 as amended from time to time) absent from registration under or an applicable exemption from the registration requirements
of the United States securities laws. Neither this document nor any copy of it may be taken or transmitted into the United States nor distributed in the United States. Any failure to
comply with this restriction may constitute a violation of the U.S. securities laws.

This document is being distributed in the United Kingdom only to investment professionals falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005 (the “Order”), high net worth companies and other persons to whom it may be lawfully communicated falling within article 49(2)(a) to (d) of the Order. The
distribution of this document in other jurisdictions may also be restricted by law, and persons into whose possession this document comes should inform themselves about, and
observe, any such restrictions.

Whilst reasonable care has been taken to ensure that facts stated herein are accurate and that the opinions contained herein are fair and reasonable, this document is selective in
nature and is solely intended to provide an introduction to, and overview of, the business of the Company. Where any information and statistics are quoted from any external source,
such information or statistics should not be interpreted as having been adopted or endorsed by the Company as being accurate.
Certain statements in this presentation constitute forward-looking statements and information, including statements regarding the group's (i.e. the Company and its subsidiary
undertakings) financial position, business strategy, plans and objectives of management for future operations. Particularly those statements which contain the words "expects", "looks
forward to", "anticipates", "intends", "plans", "believes", "seeks", "estimates", "will" and similar expressions, reflect the Company's current expectations and are based on certain
assumptions and are, therefore, subject to risks and uncertainties that may cause actual results to differ materially from the forward-looking statements. The forward-looking
statements, including assumptions, opinions and views of the Company or cited from third party sources, contained in this presentation are solely based on current opinions, plans,
estimates, assumptions and forecasts which are uncertain and subject to risks. A multitude of factors, many of which are beyond the Company's control, affect the Company's
operations, performance, business strategy and results and can cause actual events to differ significantly from any anticipated development. None of the Company or any of its
shareholders or subsidiary undertakings or any of such person’s representatives, advisors or employees guarantees that the assumptions underlying such forward looking statements
are free from errors nor do they accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted
developments.

The information contained in this document has not been independently verified. No representation or warranty (express or implied) is made as to, and no reliance should be placed
on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever (in negligence or otherwise) is accepted as to any errors,
omissions or misstatements contained herein, and, accordingly, none of the Company or any of its shareholders or subsidiary undertakings or any of such person’s representatives,
advisors or employees accepts any liability whatsoever arising directly or indirectly from any use of this document or its content or otherwise arising in connection with this document.
By accepting this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will
conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s business.

This document speaks as of November 2009. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients shall, under any
circumstances, create any implication that there has been no change in the affairs of the Company since such date.



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                                       Capital Markets Day
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Contact

Pfleiderer AG
Ingolstaedter Str. 51
92318 Neumarkt
Germany


Lothar Sindel
Vice President of Investor Relations
Tel.: + 49 (0) 91 81 / 28 80 44
Fax: + 49 (0) 91 81 / 28 60 6
E-Mail: lothar.sindel@pfleiderer.com




                                                             Pfleiderer AG | 89
                                       Capital Markets Day

Capital Markets Day                    November 27, 2009

November 27, 2009




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