PRESS FOLDER
ANNUAL PRESS CONFERENCE
2ND AUGUST 2012
PRESS FOLDER
ST. JOHANN, AUGUST 2012
Your contact persons:
Dr. Thomas Leissing
Head of Finance/Administration/Logistics EGGER
Group
Group Management Spokesman
Walter Schiegl
Head of Production/Technology EGGER Group
Ulrich Bühler
Head of Sales/Marketing EGGER Group
For queries:
FRITZ EGGER GmbH & Co.
Holzwerkstoffe
Christina Werthner
Weiberndorf 20
6380 St. Johann in Tirol
Austria
T +43 5 0600-10681
F +43 5 0600-90681
christina.werthner@egger.com
Plenos
Agentur für Kommunikation
Dr. Wolfgang Immerschitt
Paracelsusstrasse 4
5020 Salzburg
Austria
T +43 662 620 242-0
F +43 662 620 242-20
wolfgang.immerschitt@plenos.at
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EGGER GENERATES HIGHER TURNOVER IN A
CHALLENGING MARKET
The company continues to create more jobs, invest heavily in its plants
and increase its independence from commodity markets thanks to
backwards integration.
Notwithstanding the debt crisis in Europe and high consolidation pressure in
the industry, EGGER demonstrated positive developments for all key
performance figures at the 2012 annual press conference. Turnover
increased by 11 percent to EUR 1,963 million. EBITDA grew by 15 percent to
EUR 262 million. With the takeover of the Russian plant in Gagarin and the
expansion of the plant in Radauti (Romania), EGGER increased the number
of its employees to nearly 6,800. The company was also honoured as one of
the best employers with the “Great Place to Work Award” in Austria.
The Tyrolean family company maintained growth during its 50th anniversary year.
With investments of EUR 406 million, the balance sheet total for the 2011/2012
business year which ended in April of 2012 was the highest in the history of the
company. EGGER spent EUR 50 million for maintenance investments and EUR
356 million on growth projects. Among the largest items was the takeover and
expansion of the chipboard plant in Gagarin, the second EGGER plant in Russia.
EGGER also commissioned an OSB plant with an initial capacity of 340,000m3
(12,007,000 cubic feet) in Radauti, Romania. It is part of the EGGER Building
Products Division founded in 2011. The investments could be financed from the
strong, free cash-flow, facilitated by borrowing capital instruments. Notwithstanding
the growth, the company’s equity ratio is stable at 34 percent.
Operating profit increased despite the high expenditures. The wood-based material
manufacturer was able to increase its earnings before interest, taxes, depreciation
and amortisation by 15 percent to EUR 262 million. “Gagarin made an aboveaverage contribution to the increase in our results of operations,” says Thomas
Leissing, Group Management Spokesman and responsible for finance,
administration and logistics. “This confirms that our strategic decision to invest in
further growth was the right one.” The capacity utilisation for the EGGER Group as
a whole was very good in the past business year. Furthermore, the positive
response to the new ZOOM collection for distributors, tradespeople and architects
as well as the new FLOORLINE flooring collection shows that EGGER also made
the right decisions in product development.
RECOGNITION AS A TOP EMPLOYER
The high level of employee motivation played a major role in the company’s
success. In 2012 the Great Place to Work Institute counted EGGER among the top
ten best employers in Austria. EGGER also received a special award for integrated
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health management. “We are pleased that our effective human resource
development efforts have been recognised,” says Thomas Leissing. EGGER
invested EUR 4.8 million in training and continuing education in the 2011/12
business year. Due to the takeover of the plant in Gagarin (RU) and the expansion
in Radauti (RO), the average number of employees over the course of the year
increased by 13 percent from 6,012 to 6,788.
FURTHER INVESTMENTS
In addition to the investments mentioned above, EGGER expanded its chipboard
plant in Rambervillers, France with a next-generation lamination line and a
warehouse with an area of 11,500m 2 (123,785 square feet) in 2011/2012. The
British plant in Hexham commissioned a new impregnation line, a new air
purification system and a new short-cycle lamination line. Next to the OSB plant,
the company’s own resin production and a new impregnation line were also
constructed in Radauti (RO). The laminate plant in Gifhorn (DE) increased the
capacity there by one-fifth with a new line. “We are planning investments for the
growth and maintenance of our plants in 2012/13 as well, even though on a smaller
scale compared to the previous year,” says Walter Schiegl, responsible for
production and technology in Group Management.
The company is currently building a new visitor forum at the plant in Brilon (DE)
with a presentation area of 3.100m 2 (33,368 square feet), modelled after the forum
at headquarters in St. Johann in Tirol. Conference and training facilities as well as
offices are also part of the project. The Brilon Forum is being constructed using the
standardised modular system used at the Radauti administration building and the
TechCenter in Unterradlberg.
INDEPENDENCE THROUGH OWN ENERGY AND RAW MATERIALS
EGGER generates energy for production at most of its plants. “In generating
energy, we remain focused on the cascading use of wood, which is used first to
make materials and then used to create thermal energy,” says Walter Schiegl. With
the backwards integration of its own forestry companies, its own biomass power
plants and resin production within the group, EGGER is gaining greater
independence from the commodity markets. “Even though the situation has relaxed
somewhat, securing the supply of wood, glue and energy for our plants is one of
the major challenges facing us in the future,” Schiegl says.
TRANSPORT RESTRICTIONS IN AUSTRIA
"The restrictions on goods movements through lorry bans, toll increases and as the
reduction in railway services limit our competitiveness," explains Thomas Leissing.
The ÖBB / Rail Cargo Austria increased prices by 30 % whilst at the same time
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drastically reduced its services, including single wagon transportation. The
ecologically friendly method of rail transport no longer makes economical sense.
This means the road toll increase in Austria is a significant extra burden.
Furthermore, a ban on night driving on the A 12 motorway (Inntalautobahn) was
introduced in 2008. As a whole, these factors have a particularly negative impact
on export oriented companies such as EGGER.
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HIGHER TURNOVER IN FURNITURE AND INTERIOR
DESIGN
ZOOM and FLOORLINE collections highly successful as turnover varies
with the economy of the respective markets in Europe.
Private households are increasingly investing in home renovations and
improvements. EGGER was able to benefit from this trend and significantly
increased the turnover of its products for furniture and interior design in the
2011/12 business year by 16 percent to EUR 1.575 billion (previous year: EUR
1.363 billion).
“We expanded our market share in this segment compared to the previous year,
despite a challenging environment,” says Ulrich Bühler, responsible for sales and
marketing in EGGER Group Management. “In furniture and interior design, we
were able to increase our turnover by 16 percent.” Growth rates for the gross
domestic product in Western and Eastern Europe were relatively low in 2011.
Positive signals came from the construction industry, since residential construction
in Western and Eastern Europe is growing since the global economic crisis in
2009. “Unfortunately we were not able to benefit much from this trend with our
EGGER Building Products,” Ulrich Bühler says. EGGER generated turnover of
EUR 167 million in this segment (previous year: EUR 186 million). Here the key
difference was the decrease in the cutting volume due to the log wood price. With a
turnover of nearly EUR 348 million (previous year: EUR 329 million), the EGGER
Retail Products division also contributed to the increase in turnover with nearly 6
percent. 46 percent of the customers for EGGER products came from the office,
kitchen and residential furniture industry, 45 percent were distributors,
tradespeople and architects while 9 percent went to DIY markets and distributors.
The leading sales region across all product segments in the past business year
was North-Western Europe with around one-third of total turnover, followed by
Central and Eastern Europe with one-fifth. They were followed by the UK and
Ireland as well as South-Western Europe and Russia with shares of 10 to 13
percent.
DECOR AND FLOORING COLLECTIONS WELL RECEIVED
With ZOOM and FLOORLINE, EGGER successfully presented two large new
collections in 2012. “The unique concept of decor and material combinations
including edging, combined with comprehensive services, was met by a
consistently positive response from more than 9,000 industry visitors at 92 events
worldwide,” says Ulrich Bühler. The FLOORLINE flooring collection for distributors
was presented by EGGER at a customer event in Kitzbühel. “The decision to
develop and coordinate products and services from the users perspective is
proving the right strategy.”
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Part of this strategy is the EGGER Innovative programme, which includes regularly
supplying customers with current information about technology and design through
the company's media such as the Trend News newsletter and the expansion of
online services. These include the new online EGGER Shop, where customers can
order decor samples, advertising media and the visualisation software VDS PROFI
around the clock. More and more customers are also taking advantage of the
opportunity to try out the effects of various decors using VDS Online. Through
myEGGER, customers obtain personal access to the EGGER Shop, Trend News
and the latest products.
OUTLOOK
Notwithstanding a worsening of the overall economic situation and existing
uncertainties due to the debt and Euro crisis, EGGER expects turnover in its key
sales markets to increase in the 2012/13 business year. Based on the current high
order volume, EGGER expects to utilise its capacity fully at all production plants
across its divisions in the 2012/13 business year.
EGGER continues to count on product diversity, market diversification and ongoing
innovations in its products, processes and services in order to further strengthen its
market position. The solid financial basis supports long-term supply relationships
with customers and suppliers, as well as further stable growth based on our own
performance.
“As a family company, sustainable and responsible business operations continue to
take centre stage. This is the basis for success over the long term,” explains
Thomas Leissing.
According to Thomas Leissing, this applies to the broad financing base through
high cash-flows and therefore equity as well as bonds and long-standing core bank
relationships . EGGER is now offering more information on this topic on the
internet: current information on financial reports, performance figures and securities
is now available under Credit Relations (www.egger.com/credit-relations).
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EGGER BUSINESS DEVELOPMENT 2011/12
 11 percent increase in turnover to  Growth investments of EUR 356
around EUR 2 billion, despite
million, almost double compared to the
European debt crisis.
previous year.
 EBITDA increase of 15 percent to  Three-quarters of total turnover
EUR 262 million.
generated in the decorative wood 800 new employees, partly due to based materials segment.
new plant in Russia.
 Honoured with the 2012 Great
Place To Work Award in Austria.
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