Preliminary Results Announcement

18th March 2010

POWERFLUTE OYJ

PRELIMINARY RESULTS ANNOUNCEMENT
for the year ended 31 December 2009

Powerflute Oyj (the "Group" or “Powerflute”), the packaging group with
established positions in Nordic semi-chemical fluting and coated woodfree
papers, today announced results for the year ended 31 December, 2009.

Powerflute is listed on the AIM market of the London Stock Exchange (Ticker:
POWR) and on the First North list, the alternative market of the OMX Nordic
Exchange Stockholm AB (Ticker POW1V) 

Financial highlights
•Net sales at € 253.7m (2008 - € 108.0m)
•Underlying EBITDA € 14.1m (2008 - € 12.4m)
•Operating profit € 33.1m (2008 - € 6.0m), including gain of €33.0m on
acquisition of Scheufelen 
•Basic EPS 20.2 cents (2008 - 2.8 cents)
•Net assets increased to € 56.2m (2008 - € 25.8m)
•Net debt € 52.0m (2008 - € 41.6m)

Operating highlights
•Integration of Papierfabrik Scheufelen, a manufacturer of coated woodfree
papers, successfully completed 
•Harvestia, the Group's wood procurement partnership with Myllykoski
Corporation, assumed total responsibility for management of all wood deliveries
to the Savon Sellu mill 
•Strong improvement in demand for both Graphic and Packaging Papers during
second half 
•Marco Casiraghi appointed as Chief Executive with effect from 1 January 2010

Powerflute Chairman, Dermot Smurfit commented:
“Despite the challenging economic conditions, 2009 was a successful year for
the Group. We completed the acquisition and integration of Papierfabrik
Scheufelen, which more than doubled our revenues and made a very significant
contribution to the operating performance and cash generation of the Group. In
our other business, Savon Sellu, we made good progress with a number of
strategic initiatives intended to improve production efficiency and maintain
our strong market position, although operating performance was significantly
affected by the difficult trading environment. 

Despite the exceptionally tough market conditions experienced by the Group, the
second half of 2009 was markedly stronger in terms of volume gains, with
activity returning to close to normal levels by the year end. 

We will continue to invest and develop our existing businesses to ensure that
they maintain their positions as suppliers of premium-quality products in their
respective markets. We will also continue to actively search for opportunities
in the paper and packaging sectors where the experience and knowledge of our
management team can add significant value to a business and create value for
our shareholders. We remain confident that the Group is well positioned to
withstand the challenges that it faces and to benefit from any market
recovery.” 

- Ends- 


Contacts

For additional information please contact:

Powerflute OYJ
Dermot Smurfit (Chairman)
Marco Casiraghi (Chief Executive)
David Walton (Chief Financial Officer)
		
c/o Billy Clegg, Financial Dynamics
+44 (0)20 7269 7157
Collins Stewart Europe Ltd:
Piers Coombs
Mark Dickenson
		
+44 (0)20 7523 8350
E.Öhman J:or Fondkommission AB:
Ms Arja Väyrynen
		
+358 9 8866 6029
Financial Dynamics:
Billy Clegg
		
+44 (0)20 7831 3113
K Capital Source
Mark Kenny
Jonathan Neilan		
+353 (1) 663 3686

About Powerflute
Powerflute Oyj (“the Company” or “Powerflute”) is a packaging group with
established positions in Nordic semi-chemical fluting and coated woodfree
papers. 
Through its subsidiary Savon Sellu Oy, the Group operates a paper mill in
Kuopio, Finland which produces a specialised form of semi-chemical fluting made
from birchwood sourced principally in Finland and Russia. Corrugated boxes
manufactured using Nordic semi-chemical fluting demonstrate exceptional
strength and moisture resistance and are extensively used for transportation of
fruit and vegetables, high-value industrial goods such as electrical appliances
and automotive components. The Kuopio mill has the capacity to produce up to
300,000 tonnes per annum and is one of three suppliers of Nordic semi-chemical
fluting in Europe. 

Through its recently acquired subsidiary Papierfabrik Scheufelen, the Group
operates a paper mill in Lenningen, Germany which produces a range of coated
woodfree papers from mixed hardwood and softwood pulps. Coated woodfree papers
are used in the production of printed promotional material such as brochures,
leaflets and other point of sale materials for producers and distributors of
premium branded goods. The Lenningen mill has the capacity to produce up to
300,000 tonnes per annum and supplies the majority of its products into the
European market where total demand has historically been in excess of 7.7
million tonnes per annum.