Glossary

Carriers

Engineered wood which serves as the base for decorative surface facings (HPL, melamine-faced chipboard).

MFC – Melamine-Faced Chipboard

Particleboard with a finished surface, faced with melamine (decorative paper soaked in melamine resin). Using heat and pressure, the melamine film is compressed in short cycles onto the board to give a durable plastic top surface.

HDF – High-Density Fibreboard

Engineered wood board consisting of wood fibres soaked in glue which are then pressed together under heat at very high compression. Preferred carrier material where high-load-bearing properties and thin material thickness are required (e.g. laminate flooring).

HPL – High-Pressure Laminate

High-pressure laminate consists of several layers of core and decorative paper. The paper layers are impregnated with phenol and melamine resins and then compressed under heat. This surface material is extremely durable and is ideal for furniture and interior surfaces subject to heavy wear (e.g. kitchen worktops).

Integrated Sound Absorption

A sound absorbing layer, such as cork, laminated onto the underside of a laminate flooring panel to greatly reduce ambience and foot fall sound.

Co-Generation Plant

A decentralized plant for generating energy, supplying Pfleiderer with electricity and production heat, particularly used in the production of engineered wood.

Laminate

Flooring made of several different layers. The carrier layer comprises pressure-resistant engineered wood – either MDF, HDF or particleboard. The top surface is coated with melamine resin, protecting to the décor layer comprising a printed paper film displaying a wood or stone reproduction.

MDF – Medium-Density Fiberboard

Wood-based panel comprising wood fibres impregnated with glue and compressed under heat. This material has a homogeneous structure and very smooth surface. It is especially used for three-dimensional furniture fronts, as well as for varnished or high-gloss surfaces.

MFP – Multi-Function Panel

Engineered wood board with facing and middle layers made of slender random-direction stands. MFP has high cross and longitudinal tensile strength, making it particularly suitable as a construction material for trade fair stands or interior fixings.

OSB – Oriented Strand Board

Engineered wood board made of glue-soaked broad strands arranged lengthwise and crosswise in layers. This board has a particularly high bending strength, making it especially suitable for construction purposes.

Overlay

Transparent melamine film used in laminates to give added protection to the décor layer from damage and wear.

Postforming Elements

Particleboard or MDF board, faced with a layer of HPL. The seamless facing is milled around the edges of the carrier board at a predefined radius. This is done by heating the HPL board and then moulding it mechanically.

Particleboard

Particleboard is produced by combining wood chips and/or smaller particles of other similar material (flax, hemp) with resin-based glue. The chips and particles are then hot pressed into board.

Economic glossary

Capital Employed

The entire capital employed in the company, i.e. fixed assets plus current assets, less provisions (excluding provisions for pensions), and liabilities (excluding financial liabilities).

Cash Flow

A matrix used when analyzing balance sheets, companies and shares in order to assess a company’s financial strength and profitability. Cash flow (funds from operations) describes the inflow of liquid funds to a company from revenues and other sources within a given period.

Contractual Trust Arrangement (CTA)

In order to outsource the financing of pension commitments, assets are moved out to an asset trust through a contractual trust arrangement (CTA). The CTA is constructed based on the Anglo-American pension trust model, taking into account any employment law and taxation rules that may apply.

Derivative Financial Instruments

Derivative financial instruments are used to hedge against and minimize risks arising when transactions are exposed to potential changes in currency exchange rates or market interest rates. Hedging is performed using swaps, options or futures.

Discontinued operations

According to IFRS, business segments which are earmarked for disposal or separation are shown separately under “discontinued operations” in the income statement and the balance sheet.

EBIT

Earnings before interest and taxes.

EBITDA

Earnings before interest, taxes, depreciation and amortization. EBITDA describes a company’s profit margin and is a key figure when assessing its profitability.

EBT

Earnings before taxes.

EPS

Earnings per share. Consolidated earnings divided by the average number of shares.

IFRS – International Financial Reporting Standards

The International Financial Reporting Standards have been drafted to ensure that corporate financial reporting and publication standards are comparable worldwide. Since 2005, all capital-market-oriented companies listed on a regulated stock market within the EU are obliged to draw up their consolidated financial statements in accordance with IFRS rules.

Impairment Test

A test for determining whether an intangible asset (or goodwill) has depreciated in value based on future discounted cash flows.

Long-term Incentive Program

A motivation instrument geared to the long term to encourage staff loyalty, comprising schemes to allow employees to share in the Company‘s success.

ROCE

Return on capital employed.

Stock Option Plan

Form of remuneration entailing the issue of subscription rights to members of management and to employees, conferring on them the right to acquire shares in their own company, provided certain goals under certain conditions are achieved.