The reported decline in sales for the prior financial year is to some extent better than 
the half-year result of 2009 (-29.5%) and reflects the slightly better market environment 
in the last quarter of 2009. Altogether, the decline is in line with the total market for 
tropical timber. The Board of Directors and the Group Management were reacting to the 
continuous unsatisfactory market developments with immediate restructuring measures, 
increase in efficiency and strengthening of Precious Woods’ market position. 

Precious Woods Gabon has managed to achieve the goals by obtaining satisfactory volumes 
and sound prices during the second half-year. The veneer plant of TGI has confirmed the 
turnaround of 2009 and by the end of January 2010 also received the FSC certification for 
the chain of custody. In the second half-year, timber sales volume of Precious Woods 
Amazon suffered due to a delay caused by the authorities granting the harvest permit and, 
as a consequence, due to the commercially diminished timber quality from alternative 
harvest areas. In return, revenues from sales on the local Brazilian markets almost 
doubled compared to the previous year. Sales of energy in Brazil declined due to reduced 
biomass volumes stemming from the saw mill and softer wood species with a lower fuel 
value. Earnings from emission rights hence remained below previous year’s level. The 
lower turnover of Precious Woods Europe leads back to a strong drop in demand on the 
European markets in the first half year and a considerable reduction in stocks. The 
increase of biological assets in Central America followed the positive long-term trend. 

Restructuring measures, increase in efficiency and market positioning 

The Board of Directors and the Group Management reacted swiftly to the negative market 
developments. Assuming that the market environment would only improve slowly, additional 
measures have been implemented during the second half-year: far reaching restructuring 
measures, increase in efficiency and concentrated sales efforts that will be continued 
throughout 2010. The associated costs and adjustments will be fully charged to the annual 
account of 2009. Precious Woods Holding will disclose a clearly negative and 
unsatisfactory result for the year 2009. The various implemented measures will improve 
the productivity and market position of the group and positively influence future 
operational results. 

Diversification favors market opportunities 

With a diversified resource and market policy, as well as the comprehensive FSC 
certification, Precious Woods is well positioned: on the one hand with sustainable forest 
management in Latin America and Africa, and on the other hand with a broad product 
portfolio ranging from veneer, round and sawn wood to the energy production and CO2 
emission certificates. The Group Management is confident that the consistent aligned 
strategic focus on sustainability and the already introduced and implemented measures are 
a solid base for profitable growth. 

All stated figures in this media release are provisional and not yet audited. The final 
audited accounts will be published on April 26, 2010.

Precious Woods ist ein international führendes Unternehmen im Bereich der 
nachhaltigen Bewirtschaftung und Nutzung von Tropenwald. Unser Unternehmen mit 
Hauptsitz in der Schweiz beschäftigt rund 1’800 Mitarbeitende und besitzt 
Tochtergesellschaften in Brasilien, Costa Rica, Nicaragua, Holland und der 
Schweiz.

Nachhaltige Waldbewirtschaftung: In Brasilien bewirtschaften wir nach den 
Richtlinien des Forest Stewardship Council (FSC) bestehenden Tropenwald auf
nachhaltige Weise und sichern seinen langfristigen Erhalt.

Aufforstungen: In Zentralamerika forsten wir in Übereinstimmung mit FSC 
Weideflächen mosaikartig mit Teak und einheimischen Baumarten auf.

Holzindustrie und -handel: Unsere FSC-Produkte für die Bereiche Bau, Möbel, 
Industrie und Do-it-yourself finden ihre Kunden in Europa, Brasilien, Asien
und den USA.

Erneuerbare Energie und CO2: Die Stromproduktion aus Holzabfällen und der 
Verkauf 
von CO2-Emissionszertifikaten bilden einen wichtigen Bestandteil
unseres Konzeptes der nachhaltigen Wald- und Holzwirtschaft.