VERBIO Vereinigte BioEnergie AG

Quarterly Report • Feb 7, 2013

Half-Year-Report 2012/2013

Group key figures [in EUR million]

Profitability	Q 1 2012/2013	Q 2 2012/2013	1 HY 2012/2013	Q 1 2011/2012	Q 2 2011/2012	1 HY 2011/2012
Sales	217.5	191.3	408.8	224.4	214.6	439.0
EBITDA	1.6	6.4	8.0	10.3	9.9	20.2
EBIT	– 4.9	– 0.1	– 5.0	3.8	3.6	7.4
EBIT-margin (%)	– 2.3	– 0.1	–1.2	1.7	1.7	3.4
EBT	– 6.7	– 2.0	– 8.7	1.9	1.6	3.5
Period result	– 6.5	– 2.2	– 8.7	2.1	2.4	4.5
Earnings per share (EUR)	– 0.10	– 0.03	– 0.13	0.03	0.04	0.07
Operating data
Production (tons)	116,542	140,943	257,485	159,304	151,620	310,924
Production (MWh)	98,130	84,058	182,188	65,278	62,756	128,034
Utilization Biodiesel/Bioethanol (%) 1)	66.8	80.8	73.8	91.4	87.0	89.2
Utilization Biomethane (%) 1)	98.1	84.1	91.1	81.6	78.4	80.0
Investments in property, plant and equipment	10.5	10.1	20.6	5.4	8.2	13.6
Number of employees 2)	875	842	842	795	772	772
Net asset position	30/9/2012	31/12/2012		30/9/2011	31/12/2011
Net financial assets	–100.0	–102.0		– 84.4	– 88.3
Equity	327.6	325.4		329.6	331.5
Equity ratio (%)	45.2	48.9		48.5	50.3
Balance sheet total	725.2	666.1		679.0	658.9
Financial position
Operating cash flow	–134.1	–119.7		– 27.2	–16.1
Operating cash flow per share (EUR)	– 2.13	–1.9		– 0.43	– 0.26
Cash and cash equivalents	40.3	28.9		49.4	37.0

1) in relation to the production capacity

2) at cutoff date

As a result of the change of the financial year the reporting and comparative periods are as follows: Q1 2012/2013 (1/7-30/9/2012), Q1 2011/2012 (1/7-30/9/2011), Q2 2012/2013 (01/10-31/12/2012), Q2 2011/2012 (1/10-31/12/2011), 1 HY 2012/2013 (1/7-31/12/2012), 1 HY 2011/2012 (1/7-31/12/2011).

Segment key figures

[in EUR million]

Biodiesel	Q 1 2012/2013	Q 2 2012/2013	1 HY 2012/2013	Q 1 2011/2012	Q 2 2011/2012	1 HY 2011/2012
Sales	132.8	102.6	235.4	128.9	137.7	266.6
Third party sales	131.0	102.2	233.2	127.2	136.4	263.6
EBIT	– 4.0	3.4	– 0.6	5.3	3.9	9.2
Production (tons)	80,258	93,129	173,387	98,518	100,625	199,143
Utilization (%) 1)	75.1	87.1	81.1	92.2	94.2
Number of employees 2)	102	98	98	102	103	103
Bioethanol (incl. Biomethane)	Q 1 2012/2013	Q 2 2012/2013	1 HY 2012/2013	Q 1 2011/2012	Q 2 2011/2012	1 HY 2011/2012
Sales	52.3	68.8	121.1	75.2	65.4	140.6
Third party sales	51.7	67.9	119.6	75.1	65.3	140.4
EBIT	1.2	– 3.1	–1.9	–1.2	– 0.8	– 2.0
Production (tons)	36,284	47,814	84,098	60,786	50,995	111,781
Production (MWh)	98,130	84,058	182,188	65,278	62,756	128,034
Utilization Bioethanol (%) 1)	53.8	70.8	62.3	90.1	75.5	82.8
Utilization Biomethane (%) 1)	98.1	84.1	91.1	81.6	78.4	80.0
Number of employees 2)	189	190	190	190	181	181
Märka Trading	Q 1 2012/2013	Q 2 2012/2013	1 HY 2012/2013	Q 1 2011/2012	Q 2 2011/2012	1 HY 2011/2012
Sales	107.1	56.2	163.3	67.0	62.1	129.1
Third party sales	32.7	18.2	50.9	19.4	11.0	30.4
EBIT	– 2.4	–1.0	– 3.4	–1.1	0.2	– 0.9
Other	Q 1 2012/2013	Q 2 2012/2013	1 HY 2012/2013	Q 1 2011/2012	Q 2 2011/2012	1 HY 2011/2012
Sales	7.8	6.8	14.6	8.6	4.9	13.5
Third party sales	2.1	3.0	5.1	2.7	1.9	4.6
EBIT	0.5	0.2	0.7	1.1	0.0	1.1

1) in relation to the production capacity

2) at cutoff date

As a result of the change of the financial year the reporting and comparative periods are as follows: Q1 2012/2013 (1/7-30/9/2012), Q1 2011/2012 (1/7-30/9/2011), Q2 2012/2013 (01/10-31/12/2012), Q2 2011/2012 (1/10-31/12/2011), 1 HY 2012/2013 (1/7-31/12/2012), 1 HY 2011/2012 (1/7-31/12/2011). 3

| VERBIO Half-Year-Report 2012/2013

Contents

Group interim management report	6
Basic information	6
General conditions	6
Development of revenue and result	8
Assets and financial position	9
Employees	9
Investments	9
Segment reporting	10
Opportunities and risk report	12
Forecast and outlook	12

Consolidated interim financial statements (IFRS) 14

Consolidated statement of comprehensive income	15
Consolidated balance sheet	16
Consolidated cash flow statement	18
Consolidated statement of changes in equity	20
Selected explanatory notes	22

Further Information

Executive bodies of the Company	35
Financial calendar 2012/2013	36
Contact and imprint	36

5

Group interim management report

for the period July 1 to December 31, 2012

Basic information

On 1 July 2012 the conversion of the financial year to the period 1 July to 30 June of the subsequent year became effective. As a result, VERBIO Vereinigte BioEnergie AG adapted their financial year to the harvest cycle of their main raw material suppliers and achieved a more meaningful balance sheet by the end of the financial year. A short financial year was formed for the period 1 January to 30 June 2012.

When a comparison and analysis is made below with the previous year, the period July 1 to December 31, 2012 (1 HY 2012/2013) is compared with the period July 1 to December 31, 2011 (1 HY 2011/2012) and the period October 1 to December 31, 2012 (Q 2 2012/2013) is compared with the period October 1 to December 31, 2011 (Q 2 2011/2012).

General conditions

Legal conditions

In the 2012 calendar year not a single change took place in the statutory provisions or the legal requirements at EU level or at national level. The overall biofuel quote to be met by the petroleum industry amounted to 6.25 percent (energetic) for 2012 and 2013 and, according to the existing legal regulatory scheme in Germany, is to be replaced by the system in which targeted decarbonisation values are to be achieved from January 1, 2015. From January 1, 2013, Germany's Federal Government, by an amendment of the 36th Federal Immission Control Act ("BlmSchV"), drastically increased the control mechanisms for biodiesel from used vegetable oil to stop the clawback of unsustainably produced biodiesel from used vegetable oil.

General tax related conditions

In 2012 the tax on pure biodiesel (B100) was 18.6 cents/liter. Since January 1, 2013 this tax relief no longer exists. The energy tax on pure biodiesel is 45 cents/liter and thus corresponds to the taxation of fossil diesel.

Fuels containing 70 per cent bioethanol and biomethane will continue to enjoy tax advantages. Therefore, according to the law as it currently stands, E85 fuel (which contains 85 per cent ethanol) and biomethane will enjoy tax advantages until 2015.

Natural gas or liquid petroleum gas as other fuels are also tax deductible, with a reduced tax rate of 1.39 cents/kWh or 18.03 cents/kg.

Tax conditions

In the first half of the business year 2012/2013, the market for biodiesel was heavily burdened by imports of subsidized biodiesel from Indonesia and Argentina. It should be added that these imports did not meet our justifiably tough requirements for the sustainable production of biofuels. Most of the biodiesel from Argentina and Indonesia was not produced according to the RED or the German Biofuel Sustainability Regulation, and could only reach Germany with swapped sustainability certificates. The German Biofuel Industry Association (VDB) has demonstrated with legal expertise that this breaches the law in Germany, meaning that this biodiesel cannot be counted towards fulfilment of the biofuel quota. So far, the German ministries have not been able to agree on an approach to these abusive practices. On the positive side, the EU Commission decided in October/November 2012 to launch an antisubsidy and anti-dumping investigation against Argentina and Indonesia, because of the export of cheap biodiesel. Since end of Januar 2013 there is a registration duty for biodiesel imports from Argentina and Indonesia — one result of the EU anti-dumping investigation.

Furthermore, more than three times as much biodiesel from used cooking oil (UCO) was imported into Germany in the reporting period than in the same period in 2011. This biodiesel produced from used cooking oil (used cooking oil methyl ester – UCOME) is counted twice when fulfilling the biofuel quota. There is, however, a number of indications that used cooking oil is not in the raw materials used, and that a high degree of fraudulent activity also takes place here. Germany's Federal Government has therefore, by an amendment of the 36th Federal Immission Control Act ("BlmSchV"), drastically increased the control mechanisms against biodiesel from used vegetable oil with effect from January 1, 2013.

According to surveys by the Federal Office of Economics and Export Control (BAFA), sales of diesel and petrol in the months of July to Novem-

	Q1 2011/2012	Q2 2011/2012	Q3 2011/2012	Q4 2011/2012	Q 1 2012/2013	Q 2 2012/2013	1 HY 2012/2013
Crude oil (Brent; USD/barrel)	114	110	120	109	110	111	111
Mineral diesel (EUR/ton)	685	722	771	735	782	761	772
Rapseed oil (EUR/ton)	956	937	973	965	989	923	956
Wheat (MATIF; EUR/ton)	199	186	210	212	259	264	262
Sugar (EUR/ton)	448	404	412	364	370	334	352

Average price movement of selected raw materials

ber 2012 reached the total of 22.1 million tons, which is 3.6 % below the previous year's level. At the same time, consumption data show declines in the sales volumes of diesel fuels (– 1.0 per cent) and petrol (–8.0 percent). The consumed quantities of biodiesel admixtures decreased by 15.2 percent compared with the same period last year, including the consumption of B100 by – 12.7 percent. The consumed quantities of ethanol, compared with the same period last year, decreased by 3.0 percent, namely both in admixture quantity, as well as in the quantity of petrol additive components ETBE. In spite of the decline in bioethanol, the consumption of E10 for the period under discussion rose by 28.2 percent compared with the same period last year. The market share of E10 in the petrol market is currently in the region of 14 percent. The E85 fuel type (petrol with 85 percent ethanol), compared with the same period last year, has also increased, but is still of little significance.

An anti-dumping and anti-subsidy procedure drawn up in November 2011 by the EU Commission, which investigated imports of bioethanol originating from the USA, was, with temporary suspension, agreed to by the EU member states on December 19, 2012. Thereby the Commission followed the view of ePURE, the European bioethanol industry association,, that the surge of bioethanol imports from the USA was benefiting from government support and giving rise to significant economic disadvantages for the European bioethanol industry. The decision of the European Council in favour of the introduction of an anti-dumping levy on bioethanol imports originating from the USA of 9.6 per cent for the next five years and its publication in the EU Official Journal is expected by 24 February 2013 at the latest.

The importance of biomethane as a biofuel has increased considerably in Germany over the last 18 months. It is now estimated that a total of 20 per cent of natural gas in Germany will be replaced by biomethane. VERBIO, as a large supplier of biomethane, supplies – as of February 2013 – biomethane (verbiogas) to 122 of the 130 natural gas stations offering 100 per cent pure biomethane.

Develpments in prices of raw materials

In the second quarter prices for grains, oilseeds and feedstuffs came, except for wheat, noticeably under pressure, after reaching highs in the first quarter of the current financial year due to the good predicted crops for maize and soya in South America, However, the price remains on a relatively high level. Further price development depends on the actual results of the forthcoming harvest in South America and a discussed export ban for Ukrainian wheat.

The sharp increase in the price of wheat is due to a poor maize harvest in the main growing regions of the USA, and also for wheat in the region of the Black Sea region and Kazakhstan. The overall supply can be described, however, as comfortable with strong regional differences. India, for example, attempts to market its very high wheat stocks, with limited success due to deficient transport facilities.

During the summer prices for oilseeds were above the historical highs and consolidated till end of December 2012 on a high level. Main reason was the long dry spell in the North American main growing areas for soya. In view of the predicted outstanding harvest for soya in South America in spring 2013 prices later dropped.

The price for sugar felt to the lowest level since June 2010 and was in the average of the second quarter 2012/2013 once again clearly under the level of the prior quarter. This was mainly due to the good harvest and therefore good or very good supply.

Developments in revenue and results

The volume of biodiesel and bioethanol produced by VERBIO in the first six months of 2012/2013 amounted to 257,485 tonnes, as compared to 310,924 tonnes in the equivalent period of the previous year. At the same time, the production of biodiesel and bioethanol increased from 116,542 tons in the first quarter to 140,943 tons in the second quarter of the business year. In addition, 182,188 MWh of biomethane were produced. Compared with the first half year 2011/2012, this is an increase of 42 per cent (1 HY 2011/2012: 128,034 MWh).

On the one Hand revenues decreased, resulting from the lower production and sales volumes of biodiesel and bioethanol, (EUR 352.8 million; 1 HY 2011/2012: EUR 404.0 million) but at the same time revenue contribution of Märka segment in the first half of 2012/2013 was clearly above the same period last year (EUR 50.9 million; 1 HY 2011/2012: EUR 30.4 million). This resulted in group revenues in the amount of EUR 408.8 million (1 HY 2011/2012: 439.0 million); only 7 per cent lower than the previous year's figure. Reference is also made to the analysis of the individual segments.

Other operating income amounted to EUR 7.0 million (1 HY 2011/2012: EUR 7.3 million.

At EUR 381.5 million (1 HY 2011/2012: EUR 398.9 million) material expenses were EUR 17.4 million lower than the previous year's figure, due to lower capacity utilization. In due consideration of the change in inventory of unfinished and finished products, the declared gross margin remained almost unchanged compared with the previous year (1 HY 2012/2013: EUR 39.7 million; 1 HY 2011/2012: EUR 40.6 million).

Personnel expenses grew in the reporting period from EUR 14.8 million in the first half year of 2011/2012 to EUR 15.7 million. This is attributed to the increased number of employees.

Other operating expenses in the reporting period amounted to EUR 21.5 million (1 HY 2011/2012: EUR 19.5 million). They mainly included expenses for outbound freight, expenses for necessary repairs, vehicle costs and expenses for insurance and premiums. The increase compared with the same period last year is primarily due to the valuation adjustments on loans, as well as other expenditures from another accounting period.

Earnings before interest, taxes and depreciations (EBITDA) due to the higher personnel costs and other expenses, as well as a negative result from the commodity futures trading amounting to a total of EUR –2.1 million (1 HY 2011/2012: income EUR 6.0 million), amounted to EUR 8.0 million and therefore at around EUR 12.3 million under the value of the same period last year (1 HY 2011/2012: EUR 20.3 million). In the process, the second quarter of the 2012/2013 financial year contributed EUR 6.4 million to the EBIT-DA of the reporting period.

At EUR – 5.0, the group operating result (EBIT) was lower than that of the same period in the previous year (1 HY 2011/2012: EUR 7.4 million). After an EBIT of EUR –4.9 million in the first quarter, the EBIT in the second quarter was EUR –0.1 million.

During the entire reporting period, both the EBITDA and EBIT were burdened by the margin pressure in the biodiesel trading and the lower utilization of biodiesel plants, as well as by losses from commodity futures trading totaling EUR –2.1 million (1 HY 2011/2012: income EUR 6.0 million), which can in particular be attributed to the different development processes of raw material prices in the comparable periods. The results from such commodity futures trading to hedge purchases and sales, in which the conditions of the application of the hedge accounting were not available, had a correspondingly different impact on the margins.

The financial result was EUR – 3.7 million (1 HY 2011/2012: (EUR – 3.9 million), and is comprised of interest income of EUR 0.3 million (1 HY 2011/2012: EUR 1.3 million) and interest expenses of EUR – 4.0 million (1 HY 2011/2012: EUR – 5.2 million).

Group earnings before tax (EBT) was EUR – 8.7 million (1 HY 2011/2012: EUR 3.5 million); the period result was EUR – 8.7 million (1 HY 2011/2012: EUR 4.6 million). This results in an earnings per share (undiluted/diluted) of EUR –0.13 (1 HY 2011/2012: EUR 0.07).

Assets and financial position

Compared with 30 June 2012, the balance sheet total increased by EUR 91.3 million to EUR 666.1 million (30/6/2012: EUR 574.8 million).

The development of the assets side of the balance sheet was particularly influenced by the seasonal structure of the inventories, which increased by EUR 138.4 million in total. There is on the other hand, in particular, a reporting-date related reduction in trade receivables of EUR 25.8 million, as well as the other short-term financial assets of EUR 14.5 million. From operating cash flow development and the use of funds, there was a cash balance of EUR 28.9 million on December 31, 2012. After deducting financial liabilities of EUR 130.9 million, there were remaining net financial liabilities of EUR 102.0 million, which were EUR 40.1 million higher than on 30 June 2012 (30/6/2012: EUR 61.9 million).

On the liabilities side of the balance sheet, equity capital dominates with EUR 325.4 million, which accounts for about 48.9 percent of the balance sheet total and is thus around 9.5 percent below the 58.4 percent value of June 30, 2012. Compared with June 30, 2012, non-current liabilities increased from EUR 48.7 million to EUR 50.2 million, and current liabilities from EUR 190.6 million to 290.5 million. The development in short-term debt is essentially to be attributed to the increase in bank loans and other loans, which in particular have been raised in the context of the financing of inventories.

Cashflow

The operating cash flow for the period amounted to EUR – 119.7 million (1 HY 2011/2012: EUR – 71.1 million). The negative cash flow is a consequence of the negative period figures based mainly on the increase of inventories (1 HY 2012/2013: EUR 126.8 million; 1 HY 2011/2012: EUR 125.9 million), the decrease in other short-term financial and non-financial liabilities (1 HY 2012/2013: EUR 13.1 million; 1 HY 2011/2012 increase: EUR 22.8 million), as well as from the change in the position in conjunction with derivatives (EUR –9.7 million; 1 HY 2011/2012: EUR 17.5 million). By contrast, an increase in cash and cash equivalents resulted, in particular the decline of claims from deliveries and services (1 HY 2012/2013: EUR 25.8 million; 1 HY 2011/2012 increase: EUR 17.9 million).

Due to investments in the first half of 2012/2013, the total of cash outflows amounting to EUR 12.5 million (1 HY 2011/2012: and cash flows amounting to EUR 14.6 million) are recorded. This is essentially payments for investments in fixed assets to the amount of EUR 19.3 million (1 HY 2011/2012: EUR 14.1 million). This was offset in the first half of 2012/2013 by proceeds from investment grants to the amount of EUR 4.3 million (1 HY 2011/2012: EUR 1.1 million), as well as proceeds from term deposits to the amount of EUR 2.1 million (1 HY 2011/2012: EUR 0.8 million).

Cash flow from financing activities is EUR 120.9 million. (1 HY 2011/2012: EUR 85.3 million). This is also influenced by payment surpluses from secured loans (1 HY 2012/2013: EUR 89.2 million; 1 HY 2011/2012: EUR 60.4 million) and proceeds from borrowings (1 HY 2012/2013: EUR 65.0 million; 1 HY 2011/2012: EUR 68.1 million) and the repayment of financial liabilities (1 HY 2012/2013: EUR 31.8 million; 1 HY 2011/2012: EUR 43.3 million).

Against this backdrop, cash and cash equivalents slightly increased from July 1, to December 31, 2012 by EUR 9.8 million. On December 31, 2012, cash and cash equivalents were EUR 28.9 million. When evaluating the financial position, it should be noted that cash amounting to EUR 4.0 million is limited in terms of its availability.

Employees

On December 31, 2012, VERBIO had 842 employees (30/6/2012: 806 employees), thereof 350 salaried employees (30/6/2012: 337 salaried employees), 458 industrial workers (30/6/2012: 432 industrial workers) and 34 trainees (30/6/2012: 37 trainees). The industrial workers on December 31, 2012 also include seasonally employed workers at Märka GmbH as well as staff for the building up of service center.

Investments

In the first half of 2012/2013, EUR 20.6 million was invested in fixed assets (1 HY 2011/2012: EUR 13.7 million). At EUR 15.9 million, the main investment was in expanding the existing biomethane plants in Schwedt/Oder and Zörbig. In addition, EUR 1.4 million was invested in haulers, straw presses and trucks.

Segment reporting

Biodiesel

Sales of biodiesel in the domestic and foreign additive market were lower than the previous year. This is mainly due to the ongoing imports of biodiesel from subsidised soya and palm from Argentina and Indonesia in the German market, the already mentioned situation of significantly increased amounts of UCOME and, resulting from this, margin pressure.

In the reporting period, the export rate for biodiesel increased to 24.0 percent, whereas it was about 10.0 percent in the same period of the previous year.

In the first half of 2012/2013, the biodiesel segment achieved revenues of EUR235.4 million (thereof EUR 233.2 million revenue with third parties; 1 HY 2011/2012: EUR 266.6 million, thereof EUR 263.6 million with third parties). The revenue decrease is mainly justified by lower sales volumes at comparable sales prices (total respectively) over the entire half year.

The cost of materials amounted to EUR 225.1 million and was, in accordance with the diminished utilization, below the material expenses for the same period last year (1 HY 2011/2012: EUR 246.1 million).

Personnel costs remained unchanged at EUR 3.1 million (1 HY 2011/2012: EUR 3.1 million).

Other operating expenses were EUR 6.6 million (1 HY 2011/2012: EUR 6.8 million.

The segment operating profit is EUR – 0.6 million (1 HY 2011/2012: EUR 9.2 million). After showing figures of EUR –4.0 million in the first quarter of the year, an improvement could be recorded in the second quarter of up to EUR 3.4 million.

In the first half of 2012/2013, EUR 1.0 million (1 HY 2011/2012: EUR 2.1 million) was invested in fixed assets.

Bioethanol

With a production level of 84,098 tonnes of bioethanol in the first half of 2012/2013, the produced volume was significantly below that of the same period in the previous year (1 HY 2011/2012: 111,781 tonnes). The reason is that, due to the high grain and animal feed prices, the utilization of the ethanol plant was adjusted to the capacity of the biomethane plant. Through this procedure, the grain consumption was minimized at the optimum biomethane production. This resulted in

	p.a.	Q 1 2012/2013	Q 2 2012/2013	1 HY 2012/2013	Q 1 2011/2012	Q 2 2011/2012	1 HY 2011/2012
Nominal capacity (tons)	450,000	112,500	112,500	225,000	112,500	112,500	225,000
Production capacity (tons)	427,500	106,875	106,875	213,750	106,875	106,875	213,750
Production (tons)		80,258	93,129	173,387	98,518	100,625	199,143
Utilization of nominal capacity		71.3 %	82.8 %	77.1 %	87.6 %	89.4 %	88.5 %
Utilization of production capacity		75.1 %	87.1 %	81.1 %	92.2 %	94.2 %	93.2 %
Number of employees as of cutoff date		102	98	98	101	103	103

the first half of 2012/2013 in sales revenues to the amount of EUR 121.1 million (thereof EUR 119.6 million revenues to third parties; 1 HY 2011/2012: EUR 140.6 million, thereof EUR 140.4 million revenues with third parties). The production of biomethane was further enhanced by the optimization of the production facilities, so that the specific production costs could be reduced even further.

In the reporting period, other operating income in this segment was EUR 4.0 million (1 HY 2011/2012: EUR 4.4 million). Material expenses were EUR 117.4 million (1 HY 2011/2012: EUR 129.8 million).

Personnel expenses were EUR 4.8 million (1 HY 2011/2012: EUR 4.6 million).

Other operating expenses in the first half 2012/2013 were: EUR 8.1 million (1 HY 2011/2012: EUR 7.7 million).

The segment operating result of the first six months of 2012/2013 is EUR –1.9 million, compared with EUR –2.0 million the previous year.

A total of EUR 18.5 million was invested in this segment in the first half of 2012/2013 (1 HY 2011/2012: EUR 10.4 million). This is mainly attributed to investing EUR 15.9 million in the optimization and expansion of the biomethane plants at Zörbig and Schwedt/Oder (1 HY 2011/2012: EUR 9.3 million).

Märka Trading

In the first six months 2012/2013, the segment contributed EUR 163.3 million to revenues, whereby EUR 112.4 million was attributed to inter-segment revenues (1 HY 2011/2012: EUR 129.1 million, thereof EUR 98.7 million inter-segment revenues). Business from grains, oilseeds and fertilizers with third parties reached EUR 50.9 million (1 HY 2011/2012: EUR 30.4 million). Because of the very good harvest, considerably more grains and oilseed could be gathered than in the same period of 2011.

While personnel costs increased in the reporting period compared with the previous year, due to the rise in the average number of employees (EUR 4.9 million; 1 HY 2011/12: EUR 4.3 million), the other operating expenses remained almost constant at EUR 7.2 million. A slight decline was recorded in depreciation (EUR 1.5 million; 1 HY 2011/2012: EUR 1.8 million).

For the reporting period, the segment has an operating result of EUR –3.4 million (1 HY 2011/2012: EUR – 0.9 million). The result shows that significantly lower effects are included from hedging transactions, for which no hedge accounting could be applied (EUR 0.4 million; 1 HY 2011/2012: EUR 5.1 million).

	p.a.	Q 1 2012/2013	Q 2 2012/2013	1 HY 2012/2013	Q 1 2011/2012	Q 2 2011/2012	1 HY 2011/2012
Nominal capacity (tons)	300,000	75,000	75,000	150,000	75,000	75,000	150,000
Production capacity (tons)	270,000	67,500	67,500	135,000	67,500	67,500	135,000
Production (tons)		36,284	47,814	84,098	60,786	50,995	111,781
Utilization of nominal capacity		48.4 %	63.8 %	56.1 %	81.0 %	68.0 %	74.5 %
Utilization of production capacity		53.8 %	70.8 %	62.3 %	90.1 %	75.5 %	82.8 %
Biomethane
Nominal capacity (MWh)	480,000	120,000	120,000	240,000	120,000	120,000	240,000
Production capacity (MWh)	400,000	100,000	100,000	200,000	80,000	80,000	160,000
Production (MWh)		98,130	84,058	182,188	65,278	62,756	128,034
Utilization of nominal capacity		81.8 %	70.0 %	75.9 %	54.4 %	52.3 %	53.3 %
Utilization of production capacity		98.1 %	84.1 %	91.1 %	81.6 %	78.4 %	80.0 %
Number of employees as at cutoff date		186	190	190	179	181	181

On the reporting day December 31, 2012, there were 235 employees (30/6/2012: 223 employees). The increase in personnel is seasonal and partly due to the building up of new service center.

Other

The Other segment achieved sales revenues in the amount of EUR14.6 million (of which, revenues from third parties: EUR5.1 million), particularly arising out of the provision of transport and logistics services, in the first six months of the current financial year. Segment results in the amount of EUR 0.7 million (1 HY 2011/2012: EUR 1.1 million) were recorded.

Opportunities and risk report

No changes in the opportunities and risk profile of the VERBIO Group as presented in the detailed opportunities and risk report contained in the management report for the 2012 short financial year occurred in the reporting period. The actual situation on the biofuel market as well as the discussion about changing the regulations currently in place increase the relevance of the risks related to revenues particularly for the evaluation approach of the bio fuel quota described in the 2012 short financial year report.

Forecast and outlook

Draft revision of the EU directives on renewable energies Currently, the proposal from the European Commission on the revision of the EU Renewable Energy Directive (RED) is been discussed for voting in the relevant committees and the EU Member States.

The new RED objective should be to cover the biogenic share of fuels in the first place with the second generation of biofuels. Biofuels of the second generation are not only suitable for the highest CO2 savings, but also for the use of non-food commodities, i.e. from raw materials, that do not result in any direct or indirect changes in land use. The essential content of the new RED draft is:

• 1. The new RED draft confirms that biofuels remain to be an important component to achieve the climate protection objectives.
• 1. The total quota of ten per cent to be achieved by 2020 remains as it is — however, the quota may

now only be met containing a maximum of five percent first generation biofuels. The five per cent ceiling is roughly equivalent to the quantity of biodiesel and bioethanol, which is currently used in fuel blends in Europe. The idea behind the introduction of the five per cent ceiling in Europe is to protect the current existing production capacity.

• 1. The remaining five percent of the total quota targeted for 2020 should be achieved with biofuels of the second generation.
• 1. Biofuels of the second generation, which depend on raw material utilization for their production, will in particular be promoted. While biofuels of the first generation (e.g. biodiesel from vegetable oil and bioethanol from grain) count single on the fulfillment of the quota targets, biofuels on the basis of waste material and certain residues (e.g. straw) count up to four times on the fulfillment of the quota targets.

The amendments proposed by the EU Commission are in line with the corporate strategy of VERBIO to produce biofuels from raw materials that do not compete with food crops.

However, it can be expected that a number of regulations will be changed and clarified against the given draft. Furthermore, the current decarbonisation strategy of Germany's Federal Government, which aims exclusively at a maximum CO2 saving without taking into account the resource base — is out of step with the current approach of the EU Commission, namely to promote biofuels whilst keeping its resource base in mind. How the Federal Government will respond to this is currently not predictable.

It is currently not possible to predict which framework will finally come into force with the upcoming revision of the RED and when it will become final. Given the contradiction, it is not predictable whether or not the German government will stick to the decarbonisation strategy.

Market and industry developments

We continue to see the biofuels market as a growth market. This particularly applies to second generation biofuels. Without the use of biofuel from renewable energies, the energy transition will be in the air and the mandatory climate targets which are to be reached by 2020 unachievable. However, the current market distortions by circumventions with bio fuel imports as well as the discussions about upcoming changes of the regulatory environment complicate a stable business and sustainable company development. Despite contrary political objectives more palm oil than ever before was processed in 2012.

As far as the development of individual markets is concerned, we assume that the primary sales market for biodiesel will remain the blending market. The market for pure biodiesel (B100) will, due to the high price level, only be of minor importance but at least in the first half of 2012/2013 financial year it will remain its position.

In the second half of 2012/2013, with the full lapse of the tax privileges beginning January 1, 2013, the interest in the B100 market will decline. Bioethanol is also largely a product for the blending market, and consumer acceptance of E10 in Germany is – from the present point of view – is increasing.

The increasing use of biomethane instead of natural gas has gained in importance, first and foremost in local public transportation. The biomethane produced by VERBIO reduces CO2 emissions by 90 per cent per driven kilometre and is already available at more than 120 natural gas filling stations in Germany.

VERBIO is currently the most important producer of biofuels in Europe which already supplies biomethane as bio fuel of the second generation in large volumes and therefore offers a further alternative to biodiesel and bioethanol.

Future development of the Group

The current legal uncertainties concerning the further goals for biofuels in Germany and the EU and the lack of control mechanisms for upholding sustainability requirements mean that a successful implementation of the growth plans cannot be ensured. Against this background the Management Board stopped all investment plans and announced a cost savings programme, with cost savings of EUR 5.0 million in financial year 2012/2013, beginning of December 2012. In total investments amounting to around EUR 100 million were planned until 2015. VERBIO is now concentrating on the existing business and the optimization of the internal structures to secure the companies profitability. At the same time, VERBIO reduced jobs.

The Management Board is thus responding not only to the ongoing, massive competitive distortions in the German biofuel market caused by the import of subsidised palm oil-based biodiesel from Indonesia and soybean-based biodiesel from Argentina but also to the considerable market distortions caused by the disproportionately large volumes of biodiesel based on waste cooking oil that are produced by dubious sources from all over the world and are counted twice in meeting biofuel quotas. This has meant that VERBIO has been experiencing a considerable downturn in its capacity utilization during the summer months, in particular for biodiesel. The German government tightened the control mechanisms for biodiesel based on waste cooking oil from 1 January 2013 and thereby responded to these competitive distortions. At the end of January, the EU Commission announced that from now on all imports of biodiesel from Argentina and Indonesia must be registered immediately. The background to this is that in the event of a positive decision of the anti-dumping proceeding for registered quantities could be levied with punitive duties 90 days retroactively. Further, EU has initiated an anti-subvention proceeding for biodiesel imports from Argentina and Indonesia. What kind of impact all these measures will have in the coming months remains to be seen.

Overall statement on the anticipated development

As soon as the constellation of the legal framework and the ongoing market development in the biofuels industry become more transparent, the Management Board of VERBIO will provide a reliable outlook for the company's further business development.

Consolidated financial statements (IFRS)

Consolidated statement of comprehensive income	15
Consolidated balance sheet	16
Consolidated cash flow statement	18
Consolidated statement of changes in equity	20
Selected explanatory notes	22

Consolidated statement of comprehensive income

for the period July 1 to December 31, 2012

EURk		Q 2 2012/2013	Q 2 2011/2012	1 HY 2012/2013	1 HY 2011/2012
1.	Revenue (including energy taxes collected)	222,207	248,564	471,188	499,114
	less: energy taxes	– 30,952	– 33,986	– 62,427	– 60,128
	Revenue	191,255	214,578	408,761	438,986
2.	Change in unfinished and finished goods	4,966	965	12,422	541
3.	Capitalised production of own plant and equipment	241	329	568	683
4.	Other operating income	2,657	5,015	7,008	7,289
5.	Cost of materials
	a) Raw materials, consumables and supplies	–167,115	–180,714	– 357,100	– 374,177
	b) Purchased services	–11,916	–12,157	– 24,370	– 24,715
6.	Personnel expenses	– 7,275	– 7,377	–15,668	–14,841
7.	Depreciation and amortisation	– 6,497	– 6,361	–13,048	–12,825
8.	Other operating expenses	–11,125	– 9,982	– 21,515	–19,498
9.	Result from commodity forward contracts	4,682	– 730	– 2,100	5,997
10.	Operating result	– 127	3,566	– 5,042	7,440
11.	Interest income	79	380	312	1,300
12.	Interest expense	–1,972	– 2,324	– 3,961	– 5,226
13.	Financial result	– 1,893	– 1,944	–3,649	–3,926
14.	Result before tax	–2,020	1,622	–8,691	3,514
15.	Income tax expense	– 219	824	– 50	1,050
16.	Net result for the period	–2,239	2,446	–8,741	4,564
	Result attributable to shareholders of the parent company	– 2,014	2,348	– 8,479	4,624
	Result attributable to non-controlling interests	– 225	98	– 262	– 60
	Income and expenses recognized directly in equity:
	Items, to be reclassified either as profit or loss:
	Translation of foreign operations	9	72	40	– 92
	Fair value remeasurement on cash flow hedges	– 24	– 647	– 2,064	– 3,042
	Deferred taxes recognized in equity	7	1	640	739
17.	Income and expenses recognized directly in equity	–8	– 574	– 1,384	–2,395
18.	Comprehensive result	–2,247	1,872	– 10,125	2,169
	Comprehensive result attributable to shareholders of the parent company	– 2,023	1,785	– 9,869	2,240
	Comprehensive result attributable to non-controlling interests	– 224	87	– 256	– 71
	Result per share (basic and diluted)	– 0.03	0.04	– 0.13	0.07

15

Consolidated balance sheet

at December 31, 2012

EURk		31/12/2012	30/6/2012
Assets
A.	Noncurrent assets
I.	Goodwill	70,682	70,682
II.	Customer relationships	12,151	12,877
III.	Other intangible assets	260	216
IV.	Property, plant and equipment	257,202	248,996
V.	Financial assets	56	888
VI.	Deferred tax assets	195	125
	Total noncurrent assets	340,546	333,784
B.	Current assets
I.	Inventories	212,707	74,283
II.	Trade receivables	51,411	77,152
III.	Derivatives	4,381	5,724
IV.	Other short-term financial assets	5,421	19,914
V.	Tax refunds	6,601	6,763
VI.	Other assets	16,077	16,439
VII.	Time deposits	0	2,055
VIII.	Cash and cash equivalents	28,918	38,691
	Total current assets	325,516	241,021
	Total assets	666,062	574,805

EURk		31/12/2012	30/6/2012
	Liabilities and equity
A.	Equity
I.	Share capital	63,000	63,000
II.	Additional paid-in capital	487,680	487,680
III.	Fair value reserve	–1,438	–14
IV.	Retained earnings	– 227,262	– 218,783
V.	Reserve for translation differences	–19	– 53
	Total equity, excluding non-controlling interests	321,961	331,830
VI.	Non-controlling interests	3,404	3,660
	Total equity	325,365	335,490
B.	Noncurrent liabilities
I.	Bank loans and other loans	37,778	35,274
II.	Provisions	150	149
III.	Deferred investment grants and subsidies	10,642	10,861
IV.	Other noncurrent liabilities	921	921
V.	Deferred tax liabilities	755	1,534
	Total noncurrent liabilities	50,246	48,739
	C. Current liabilities
I.	Bank loans and other loans	203,575	83,126
II.	Trade payables	50,814	48,845
III.	Derivatives	8,907	18,066
IV.	Other current financial liabilities	3,384	3,361
V.	Tax liabilities	8,091	8,210
VI.	Provisions	1,986	2,207
VII.	Deferred investment grants and subsidies	2,162	1,971
VIII.	Other current liabilities	11,532	24,790
	Total current liabilities	290,451	190,576
	Total equity and liabilities	666,062	574,805

Consolidated cash flow statement

for the period July 1 to December 31, 2012

EURk	1 HY 2012/2013	1 HY 2011/2012
Net result for the period	– 8,741	4,564
Income tax expense	48	–1,050
Interest result	3,649	3,926
Depreciation and amortization	13,048	12,825
Non-cash losses from impairment write-downs	2,643	11
Non-cash income	– 510	– 693
Gains (prior-year period: decrease) on disposal of property, plant and equipment and disposal of investment grants	– 29	65
Release of deferred investment grants and subsidies	–1,174	–1,027
Change in the item from derivatives and hedge accounting	– 9,735	17,491
Increase in inventories	–126,764	–125,888
Decrease (prior-year period: increase) in trade receivables	25,764	–17,902
Increase in other assets, tax refunds and other current financial assets	–1,308	–11,171
Decrease (prior-year period: increase) in provisions	– 249	348
Increase in trade payables	741	25,126
Decrease (prior-year period: increase) in other current financial and non-financial liabilities	–13,149	22,831
Interest paid	– 3,473	– 4,004
Interest received	313	1,385
Income taxes paid (prior-year period: received)	– 755	2,095
Cash flows from operating activities	– 119,681	– 71,068
Investments in time deposits	0	–1,456
Proceeds from time deposits	2,055	803
Acquisition of intangible assets	–123	– 84
Acquisition of property, plant and equimpment	–19,256	–14,076
Proceeds from disposal of property, plant and equipment	340	312
Payments for the acquistion of subsidiaries	0	–1,509
Proceeds from the disposal of noncurrent financial assets	181	279
Proceeds from investment grants	4,290	1,088
Cashflow aus der Investitionstätigkeit	– 12,513	– 14,643

EURk	1 HY 2012/2013	1 HY 2011/2012
Payments on secured loans	– 57,101	– 48,826
Proceeds from secured loans	146,267	109,273
Payments for the redemption of financial liabilities	– 31,786	– 43,254
Proceeds from the asssumption of financial liabilites	65,003	68,126
Cash flows from financing activities	122,383	85,319
Cash-effective change in cash funds	– 9,811	– 392
Change in cash funds due to effects of exchange rates	38	– 95
Cash funds at beginning of year	38,691	36,047
Cash funds at end of year	28,918	35,560
Cash funds at year end comprise the following:
Restricted cash and cash equivalents	3,950	4,200
Cash and cash equivalents	24,968	31,360
Cash funds at end of year	28,918	35,560
Supplemental information:
Time deposits	0	1,456

Consolidated statement of changes in equity

for the period July 1 to December 31, 2012

EURk	Share capital	Additional paid-in capital	Fair value reserve
July 1, 2012	63,000	487,680	255
Translation adjustments	0	0	0
Fair Value changes on cash flow hedges (after tax)	0	0	– 2,303
Income and expenses recognized directly in equity	0	0	–2,303
Net result for the period	0	0	0
Comprehensive result for the period	0	0	–2,303
Other changes	0	0	0
December 31, 2012	63,000	487,680	–2,048
July 1, 2012	63,000	487,680	– 14
Translation adjustments	0	0	0
Fair Value changes on cash flow hedges (after tax)	0	0	–1,424
Income and expenses recognized directly in equity	0	0	– 1,424
Net result for the period	0	0	0
Comprehensive result for the period	0	0	– 1,424
December 31, 2012	63,000	487,680	– 1,438

Retained earnings	Reserve for translation adjustments	Total equity excluding non-controlling interests	Non-controlling interests	Total equity
–225,293	–4	325,638	3,698	329,336
0	– 81	– 81	– 11	– 92
0	0	– 2,303	0	– 2,303
0	–81	–2,384	– 11	– 2,395
4,624	0	4,624	– 60	4,564
4,624	–81	2,240	– 71	2,169
0	0	0	– 9	– 9
–220,669	–85	327,878	3,618	331,496
–218,783	– 53	331,830	3,660	335,490
	34	34	6	40
0	0	–1,424	0	–1,424
0	34	– 1,390	6	– 1,384
– 8,479	0	– 8,479	– 262	– 8,741
–8,479	34	–9,869	–256	– 10,125
–227,262	– 19	321,961	3,404	325,365

Selected explanatory notes

Condensed consolidated intermin financial statements

On 1 July 2012 the conversion of the financial year to the period July 1 to June 30 of the subsequent year became effective. When a comparison and analysis is made below with the previous year, the period July 1 to December 31, 2012 (1 HY 2012/2013) is compared with the period July 1 to December 31, 2011 (1 HY 2011/2012) and the period October 1 to December 31, 2012 (Q 2 2012/2013) is compared with the period October 1 to December 31, 2011 (Q 2 2011/2012).

Basis for preparation of the consolidated financial statements

The interim reports of VERBIO Vereinigte BioEnergie AG and also the consolidated financial statements as of June 30, 2012, were prepared in accordance with the requirements of the International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB) and adopted by the EU. The rules contained in IAS 34 "Interim Financial Reporting" were applied accordingly. All of the interim financial statements of the companies included within the consolidated financial statements of VER-BIO AG were prepared in accordance with standard accounting principles.

These condensed interim financial statements do not include all information relevant for the consolidated financial statements and is therefore to be read in conjunction with the consolidated financial statements as of June 30, 2012.

The consolidated interim financial statements are presented in euros (EUR). To the extent not otherwise stated, all amounts are given in thousand euros (KEUR). Discrepancies may occur in the presentation of the figures as a result of rounding.

Entities included in the consolidation, consolidation principles and foreign currency translation

There were no changes in the entities icluded in the consolidation as of June 30, 2012. Within the reporting period HBE Hansa BioEnergie GmbH was renamed to VERBIO Gas Seitschen GmbH.

Incidentally the consolidation methods as well as the principles for foreign currency translation remain unchanged to those applied for the consolidated financial statements as of June 30, 2012.

Accounting and valuation methods

Given that the interim financial reports are based on the consolidated financial statements, reference is made to the detailed description of the accounting and consolidation policies contained in the notes to the consolidated financial statements as of June 30, 2012. The accounting and consolidation policies applied are essentially commensurate with those applied in the previous year.

With exception of the change of IAS 1 no new or revised standards or interpretations were applied by the Group for the first time with effect as of July 1, 2012. IAS 1 "Presentation of Financial Statements" has been adopted with regard to the presentatio of the other comprehensive income. This had no significant impact on the consolidated financial statements of VERBIO, as the presentation of the other comprehensive income was adjusted for clarification purposes only.

Notes to individual items in the consolidated statement of comprehensive income

Other operating income

EURk	1 HY 2012/2013	1 HY 2011/2012
Reimbursement of electricity tax and mineral oil tax	1,082	1,323
Release of investment grants	1,015	998
Income from trade with emissionrights	950	0
Insurance recoveries	708	109
Release of other provisions and write-off liabilities	626	201
Realized exchange gains	502	170
Charge out of costs incurred	314	298
Rental and leasing income	290	399
Income from written-off receivables	231	0
Payment of damages	52	1,567
Release of allowance for doubtful receivables	23	1,160
Miscellaneous other operating income	1,215	1,064
Other operating income	7,008	7,289

Cost of materials

The cost of materials can largely be attributed to the procurement of raw materials, consumables and supplies for ongoing production activities and purchased goods. Reference is hereby made to the statements contained in the section entitled "Segment reporting".

23

Other operating expenses

EURk	1 HY 2012/2013	1 HY 2011/2012
Repairs and maintenance	4,271	4,466
Outgoing freight	2,833	3,273
Motor vehicle costs	2,478	2,179
Insurances and dues	1,808	1,831
Losses on receivables and increase in allowances	1,548	449
Miscellaneous personnel expense	1,457	1,510
Other out-of-period expenses	1,166	99
Rental and leasing expenses	847	493
Advertising expenses	767	560
Legal and consulting fees	593	754
Selling expenses	487	399
Travel expense	443	427
Administration costs	392	328
Costs of money transfers	378	324
Other taxes	208	423
Cleaning costs	146	140
Financial statements	120	241
Data processing costs	105	105
Supervisory Board compensations	60	86
Miscellaneous other operating expenses	1,408	1,411
Total other operating expenses	21,515	19,498

The addition to the valuation adjustments and bad debts contains the value adjustment on a single loan receivable to the amount of EUR 1,291k. Under the expenses for other account periods, the derecognition of a claimed investment allowance relating to the calendar year 2005 was recorded to the amount of EUR 840k. The application was carried out in due consideration of the use of the SME supplement. The financial authority had rejected an objection of the VES in terms of the recognition of the SME status.

Result from commodity forward contracts

The results from the valuation and closing of positions of forward contracts which do not qualify for hedge accounting, the results from commodity futures using fair value hedge accounting, and the ineffective portion of forward contracts that are used for hedge accounting (cash flow hedges) totalled EUR —2,100k (1 HY2011/2012: EUR 5,997k). This amount includes the valuation result relating to embedded derivatives in the amount of EUR 132k.

The results from commodity forward contracts have been affected by positive amounts (EUR 13,633k; 1 HY 2011/2012: EUR – 1,860k) from commodity forward contracts in connection with the use of fair value hedge accounting. In addition, fair value reserves from the valuation of commodity forward contracts decreased by EUR 1,128k (1 HY 2011/2012: EUR 915k), without having any effect on the profit/loss as a result of their classification as cash flow hedges.

Income tax expense

Income tax expense for the period July 1 to December 31, 2012 in the amount of EUR 50k (1 HY 2011/2012: EUR 1,050k) comprises the following:

EURk	1 HY 2012/2013	1 HY 2011/2012
Current tax expense	– 254	– 953
Deferred tax income	204	2,003
Income tax expense	– 50	1,050

Earnings per share

Earnings per share were calculated in accordance with IAS 33. For the calculation of the earnings per share the earnings for the period were divided by the weighted average number of shares outstanding. There is no dilutive effect.

	1 HY 2012/2013	1 HY 2011/2012
Issued shares on July 1	63,000,000	63,000,000
Number of average shares outstanding as of Dezember 31	63,000,000	63,000,000
Result for the period in EURk	– 8,479	4,624
Result per share in EUR	–0.13	0.07

Notes to the indivudual items in the consolidated balance sheet

Noncurrent assets

Goodwill and other intangible assets

Intangible assets comprise goodwill, relationships with customers and software licenses. The value of the customer base is amortised over 15 years. The goodwill is subjected to a scheduled annual impairment test in accordance with IAS 36, which is to be conducted on May 31. Irrespective of that, a review is conducted at the time of each interim financial statement for indications that the goodwill might be impaired. If, in the review, the carrying amount exceeds the recoverable amount, then an impairment loss is already recorded in the interim financial statement.

Property, plant and equipment

Taking account of scheduled amortisation (EUR 12,243k), disposals of property, plant and equipment (EUR 569k), investments in property, plant and equipment (EUR 20,508k), effects of currency conversions (EUR 10k) as well as appreciations (EUR 500k), an increase in the value of the property, plant and equipment was recorded.

Financial assets

The amount recorded under this item as of June 30, 2012 largely related to the noncurrent portion of a loan receivable which was carried at amortised cost. In the reporting period the current and noncurrent portion of this loan receivable was written off.

Current assets

Inventories

EURk	31/12/2012	30/6/2012
Raw materials, consumables and supplies	18,194	20,592
Work in process and finished products	40,160	27,738
Merchandise	154,353	25,953
Inventories	212,707	74,283

Finished products comprise stocks of biofuel quotas which have already been generated but not yet sold by VERBIO in the amount of EUR 20,095k (30/6/2012: EUR 10,356k).

The examination of the inventories with respect to their recoverability as of December, 31 2012 indicated a need for allowances in the total amount of EUR 3,898k (30/6/2012: EUR 352k) in line with their lower market or net realisable value. These allowances are reflected in the statement of comprehensive income for raw materials, consumables and supplies as well as merchandise under the item "cost of materials" (EUR 2,293k; 30/6/2012: EUR 322k) and for finished goods under the item "changes in inventories" (EUR 1,605k; 30/6/2012: EUR 30k). Restraints on disposals in the amount of EUR 106,488k (30/6/2012: EUR 66,317k) are in place with respect to raw materials, consumables and supplies as well as merchandise in connection with secured loans.

Trade receivables

At the balance sheet date trade receivables amounted to EUR 51,411k (30/6/2012: EUR 77,152k) and are disclosed net of valuation in the amount of EUR 1,653k (30/6/2012: EUR 1,674k). All receivables have a remaining

term of up to one year. Of the trade receivables EUR 24,024k (30/6/2012: EUR 16,611k) relate to receivables which have been sold to a special purpose entity in connection with an ABS program.

Tax refund receivables

Tax refund receivables of EUR 6,601k (30/6/2012: EUR 6,763k) concern construction withholding tax, corporate tax and trade tax.

Other current financial assets

Other current financial assets comprise the following:

EURk	31/12/2012	30/6/2012
Security deposits resulting from security agreements and liability declarations	3,298	3,277
Deferral of unrealized results on forward contracts	1,305	12,982
Insurance recoveries	577	664
Loan receivables	28	647
Other receivables VERBIO STS AG	0	800
Claims for damages	0	500
Claims from the sale of wind energy plants	0	264
Deferral of realized gains on forward contracts	0	116
Miscellaneous other assets	213	664
Other financial assets	5,421	19,914

Other assets

Other non-financial assets comprise the following:

EURk	31/12/2012	30/6/2012
Investment subsidies	7,105	11,296
Value-added tax receivable	5,662	1,599
Reimbursement of electricity and energy tax	1,654	1,876
Deffered expenses	1,038	1,121
Miscellaneous other assets	618	547
Other financial assets	16,077	16,439

Derivatives

Forward contracts (futures and options) have been entered into with a view to hedging the supply of raw materials for the production of biodiesel, raw material and merchandise inventories of rapeseed and wheat, and fixed obligations arising in connection with purchases of rapeseed and wheat against fluctuations in value. Moreover, hedges in the form of fixed diesel/petrol sales against variable diesel/petrol prices (diesel/ petrol swap transactions) and other derivatives (futures and options) are used to hedge the proceeds and price levels in respect of sales contracts that are linked to mineral diesel/petrol prices.

As of December 31, 2012, the positive market value of these derivatives amounted to EUR 4,381k (30/6/2012: EUR 5,724k), and the negative market value EUR 6,080k (30/6/2012: EUR 15,403k). As regards the effects of this on the consolidated statement of comprehensive income, reference is made to the notes relating to the results from forward contracts.

Interest rate swap transactions have been entered into with a view to hedging variable interest payment obligations. The market value of the interest rate hedging transactions is recorded under derivatives. To the extent that no hedging relationships have been designated, any changes in value are recorded in the financial result. As of the balance sheet date, the negative market value of these interest rate hedging transactions amounted to EUR 762k (30/6/2012: EUR 1,027k); as of the balance sheet date, the negative market value of the hedged interest rate swaps amounted to EUR 2,065k (30/6/2012: EUR 1,636k) and was recorded directly in equity.

The derivatives which have been valuated at their fair value have been allocated to the following fair value hierarchical levels:

• Level 1 (quoted market prices): EUR 3,975k (assets), EUR 5,990k (liabilities)
• Level 2 (valuation procedure, input data observable in the market): EUR 406k (assets), EUR 2,917k (liabilities).

As in the comparable period of the previous year, no reclassifications from one fair value hierarchical level to the other were carried out during the period between July 1, 2012 and December 31, 2012.

Cash and cash equivalents

This item includes unrestricted cash and cash equivalents in the amount of EUR 24,968k (30/6/2012: EUR34,491k) plus restricted cash and cash equivalents in the amount of EUR3,950k (30/6/2012: EUR4,200k).

Equity

Fair value reserves

The fair value reserves comprise the effective portion of the cumulated changes in the valuation of commodity forward contracts classified as cash flow hedges and also interest rate swaps. During the reporting period, EUR 1,180k were reallocated from equity to sales revenues (amount reducing sales revenues; 1 HY 2011/2012: EUR 1,137k), EUR 883k to cost of materials (amount decreasing cost of materials; 1 HY 2011/2012: EUR 905k increasing cost of materials) and EUR 139k to interest expense (amount increasing interest expense; 1 HY 2011/2012: EUR 51k) in the context of cash flow hedge accounting. The change of fair values of the cash flow hedges therefore amounts to EUR –2,500k. At the balance sheet date deferred taxes are reflected in the amount of EUR 646k (30/6/2012: EUR 6k).

Noncurrent liabilities

Investment grants and subsidies

EURk	Investment subsidies	Investment grants	Total
June 30, 2012	11,178	1,654	12,832
Additions	1,146	0	1,146
Release in current period	– 700	– 315	–1,015
Disposal	–159	0	–159
December 31, 2012	11,465	1,339	12,804
Thereof current	1,803	359	2,162
Thereof noncurrent	9,662	980	10,642

Assigned securities

We refer to the detailed explanations in the consolidated notes for the short financial year 2012.

Current liabilities

Tax liabilities

Tax liabilities comprise trade tax obligations in the amount of EUR 1,166k (30/6/2012: EUR 1,358k), state-, council and federal tax of Switzerland in the amount of EUR 157k (30/6/2012: EUR 157k), corporate tax amounting to EUR 850k (30/6/2012: EUR 777k) and, unchanged to June 30, 2012, construction withholding tax in the amount of EUR 5,918k.

Provisions

EURk	31/12/2012	30/6/2012
Litigation risks	1,608	1,580
Impending losses on sales transactions	0	328
Other provisions	378	299
Total provisions	1,986	2,207

Litigation risks

With judgment of July 21, 2008 VERBIO Diesel Bitterfeld GmbH & Co. KG (VDB) was sentenced to pay a compensation amounting to EUR 3,416k plus interest. VDB appealed the sentence within the time limit. Nevertheless, at June 30, 2012, the Company has recognised a provision of EUR 1,329k to cover the risk. At December 31, 2012 the interest rate was adjusted in the amount of EUR 28k to EUR 1,357k.

Other current liabilities

EURk	31/12/2012	30/6/2012
Energy tax	6,329	23,155
Value added tax	3,625	671
Advance payments received on orders	927	317
Miscellaneous other current liabilities	651	647
Total other current liabilities	11,532	24,790

Other disclosures

Segment reporting

The risks and returns of the Group are significantly determined by the business segments. The VERBIO Group is accordingly segmented in line with the internal organizational and management structure into the business segments Biodiesel, Bioethanol, Märka Trading and Other. The Other segment, as a collective segment, contains the business field of transport, logistics and energy.

Segmentation on a geographical basis was not made, since such segmentation is not utilized by the VERBIO Group for internal management purposes.

Segments according to the internal corporate management

The sales revenues are reported net of energy-related taxes in the amount of EUR 62,427k (1 HY 2011/2012: EUR 60,128k). The segments Biodiesel, Bioethanol and Märka Trading generate sales revenue through the sales of goods. The segment Other generates sales revenue through the sale of services. The same accounting principles are applied with respect to business transactions among the segments which are subject to reporting requirements as are applied in the consolidated financial statements.

EURk		Biodiesel		Bioethanol		Märka Trading		Other
	1 HY 2012/2013	1 HY 2011/2012	1 HY 2012/2013	1 HY 2011/2012	1 HY 2012/2013	1 HY 2011/2012	1 HY 2012/2013	1 HY 2011/2012
Sales revenues	235,425	266,577	121,111	140,568	163,251	129,063	14,627	13,569
thereof sales revenues to third parties	233,247	263,613	119,590	140,414	50,864	30,373	5,060	4,586
Change in finished and unfinished products	6,255	– 340	6,167	881	0	0	0	0
Capitalized production of own plant and equipment	106	68	462	615	0	0	0	0
Other operating income	2,192	1,819	4,017	4,431	1,406	1,298	529	591
Cost of materials	– 225,138	– 246,092	–117,364	–129,787	–154,968	–123,235	– 8,780	– 7,612
Personnel expenses	– 3,071	– 3,088	– 4,764	– 4,633	– 4,854	– 4,264	– 2,979	– 2,856
Depreciation and amortization	– 3,255	– 3,121	– 7,440	– 7,090	–1,495	–1,752	– 858	– 862
Other operating expenses	– 6,636	– 6,813	– 8,105	– 7,655	– 7,183	– 7,148	–1,882	–1,749
Result of forward contract transactions	– 6,505	170	3,995	682	410	5,145	0	0
Segment result	–627	9,180	– 1,921	– 1,988	–3,433	–893	657	1,081
Financial result	– 607	– 693	–1,215	– 871	–1,747	– 2,161	– 80	– 201
Result before taxes	– 1,234	8,487	–3,136	–2,859	– 5,180	–3,054	577	880

Segment reporting for the period July 1 to December 31, 2012

EURk		Total segments		Intersegment reveneus and expenses		Other corrections Group		Group
	1 HY 2012/2013	1 HY 2011/2012	1 HY 2012/2013	1 HY 2011/2012	1 HY 2012/2013	1 HY 2011/2012	1 HY 2012/2013	1 HY 2011/2012
EUR	534,414	549,777	–125,653	–110,838	0	47	408,761	438,986
Sales revenues	12,422	541	0	0	0	0	12,422	541
Change in finished and unfinished products	568	683	0	0	0	0	568	683
Capitalized production of own plant and equipment	8,144	8,139	–1,136	– 850	0	0	7,008	7,289
Other operating income	– 506,250	– 506,726	124,498	107,821	282	13	– 381,470	– 398,892
Cost of materials	–15,668	–14,841	0	0	0	0	–15,668	–14,841
Personnel expenses	–13,048	–12,825	0	0	0	0	–13,048	–12,825
Depreciation and amortization	– 23,806	– 23,365	2,291	3,867	0	0	– 21,515	–19,498
Other operating expenses	– 2,100	5,997	0	0	0	0	– 2,100	5,997
Result of forward contract transactions	– 5,324	7,380	0	0	282	60	– 5,042	7,440
Segment result	–3,649	–3,926	0	0	0	0	–3,649	–3,926
Financial result	– 8,973	3,454	0	0	282	60	– 8,691	3,514
Result before taxes

Other adjustments largely relate to the elimination of interim results arising in connection with sale by the Märka Trading segment of raw materials to the Bioethanol segment.

Segment assets

EURk	31/12/2012	30/6/2012
Biodiesel	189,277	197,309
Bioethanol	256,181	243,284
Märka Trading	201,202	111,392
Other	8,225	8,153
Group	654,885	560,138

The increase in the segment assets of the Trading segment may, in particular, compared to June 30, 2012, be attributed to the addition in inventories through the 2012 harvest.

31

Contingent liabilities and other financial commitments

Contingent liabilities

Effective July 31, 2007, a security deposit insurance contract was entered into between VERBIO and Euler Hermes Kreditversicherungs-AG, Hamburg. As a result, a secured credit line of EUR 15,000k was arranged for VERBIO which pertains to customs guarantees. The secured credit line can be utilised by the subsidiaries VEZ, VES, VDS and VDB. To secure the claims of Euler Hermes Kreditversicherungs-AG, Hamburg, VERBIO has made a security deposit of EUR 3,000k. The secured credit line increase in short term and is as of December 31, 2012 utilised in the amount of EUR 14,833k.

Effective March 27, 2008 VERBIO, VDB, VDS, VEZ, and VES entered into an agreement with Atradius Kreditversicherung, Köln over the validity of ownership retention rights and the form of their extention. Therein, the parties agreed that the companies will transfer current and future receivables — after processing or compounding/mixing — in the amount of the respective invoice amounts provided to Atradius by the respective insured entities from the further sale.

Litigation

Regarding litigations please refer to the information in the consolidated notes for the short financial year 2012.

Rental and leasing contracts

Additional financial commitments of EUR 14,875k exist from various long-term leasing contracts. Allotted to the following year are EUR 3,884k, EUR 3,463k are allotted to the next one to five years and EUR 7,528k for a period exceeding five years.

For further information please refer to the explanations in the consolidated notes for the short financial year 2012.

Commitments

As at December 31, 2012 there is an open purchase obligation for investments amounting EUR 10,066k (30/6/2012: EUR 10,973k).

Related party disclosures

For further information please refer to the explanations of related party disclosures in the consolidated notes for the short financial year 2012.

Significant events subsequent to the end of the reporting period

There were no significant events subsequent to the end of the reporting period

Audit of the interim financial statements and interim management report

The interim financial statements and interim management report on hand were not subject to any form of audit or review by an auditor.

Responsibility statement

As the legal representatives of VERBIO, we declare that – to the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting – the interim consolidated financial statements give a true and fair view of the income, assets and financial situation of the Group, and the interim consolidated management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.

Leipzig, den 07.02.2013

Claus Sauter Dr. Oliver Lüdtke

Theodor Niesmann Bernd Sauter Management Board Member Management Board Member

Chairman of the Management Board & CEO Deputy Chairman of the Management Board

Notes

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Executive bodies of the Company

Supervisory Board

Alexander von Witzleben Chairman of the Supervisory Board

President, Feintool International Holding AG, Lyss, Switzerland

Other Supervisory Board mandates:

• PVA TePla AG, Wettenberg
• Siegwerk Druckfarben AG & Co. KGaA, Siegburg

Mandates in comparable controlling bodies:

• Kaefer Isoliertechnik GmbH & Co. KG, Bremen

Ulrike Krämer Deputy Chairman of the Supervisory Board

Managing director,

• M&K Treuhand GmbH, Ludwigsburg
• Mörk & Krämer Treuhand GmbH, Ludwigsburg

Dr.-Ing. Georg Pollert Member of the Supervisory Board

Chemist and process engineer, Berlin

Deputy Chairman of Arbeitsgemeinschaft Qualitätsmanagement Biodiesel e.V.

Management Board

Claus Sauter Chairman of the Management Board/CEO

Responsible for corporate development, press and publicity, puchasing, sales and trading, product planning, mergers & acquisitions, finance and accounting, taxes, controlling, treasury, investor relations, law and IT

Dr. Oliver Lüdtke COO Bioethanol/Biomethan Deputy Chairman of the Management Board

Responsible for the bioethanol and biomethan segment (research and development, production, project development) and data privacy

Theodor Niesmann

COO Biodiesel and Plant Engineering

Responsible for the biodiesel segment (research and development, production), plant engineering, quality management and workplace safety

Bernd Sauter COO Procurement, Logistics and HR

Responsible for procurement (solid raw materials), logistics and transport, fleet and property management, insurances and HR

Financial calendar 2012/2013

September 25, 2012	Publication of consolidated financial statements 2012 Analysts' conference/press conference in Frankfurt/Main
November 8, 2012	Publication of the quarterly financial report up to September 30, 2012 Telephone conference with analysts' and investors
January 25, 2013	Annual General Meeting, Radisson Blu Hotel Leipzig
February 7, 2013	Publication of the quarterly financial report up to December, 2012 Telephone conference with analysts' and investors
May 8, 2013	Publication of the quarterly financial report up to March 31, 2013 Telephone conference with analysts' and investors
September 25, 2013	Publication of consolidated financial statements 2012/2013 Analysts' conference/press conference in Frankfurt/Main

Contact and Imprint

Publisher

VERBIO Vereinigte BioEnergie AG Augustusplatz 9 04109 Leipzig Phone: +49 341 308530-0 Fax: +49 341 308530-999 www.verbio.de

Editing/Text

VERBIO Vereinigte BioEnergie AG, Leipzig

Investor Relations contact

Alexandra Mühr Anna-Maria Schneider, CIRO Phone: +49 341 308530-288 Fax: +49 341 308530-998 Email: ir@verbio.de

Public Relations contact

Isabel Roßberger Majang Hartwig-Kramer Phone: +49 341 308530-263 Fax: +49 341 308530-999 Email: pr@verbio.de

Variances for technical reasons

For technical reasons (e. g. the conversion of electronic formats) there may be variances between the financial statements contained in this interim report and those submitted to the electronic Federal Gazette. In this case the version submitted to the electronic Federal Gazette is considered to be binding.

Statements relating to the future

This financial report contains statements that relate to the future and are based on assumptions and estimates made by the management of VERBIO Vereinigte BioEnergie AG. Even if the management is of the opinion that these assumptions and estimates are appropriate the actual development and the actual future results may vary from these assumptions and estimates as a result of a variety of factors. These factors include, for example, changes to the overall economic environment, the statutory and regulatory conditions in Germany and the EU and changes in the industry. VERBIO Vereinigte BioEnergie AG makes no guarantee and accepts no liability for future development and the actual results achieved in the future matching the assumptions and estimates stated in this financial report. It is neither the intention of VERBIO Vereinigte BioEnergie AG nor does VERBIO Vereinigte BioEnergie AG accept a special obligation to update statements related to the future in order to align them with events or developments that take place after this report is published. The financial report is available in German; if there are variances the German version has priority over the English translation. It is available for download in both languages at http://www.verbio.de.

We will be delighted to send you additional copies and further information material on VERBIO Vereinigte BioEnergie AG free of charge on request. Phone: +49 341 308530-0 Fax: +49 341 308530-999 Email: info@verbio.de

VERBIO Vereinigte BioEnergie AG . Augustusplatz 9 . 04109 Leipzig www.verbio.de