Polytec Holding AG

Quarterly Report • Nov 7, 2017

INTERIM REPORT Q3 2017

AT 0000 A00XX9

KEY FIGURES Q3 2017

Key figures by half year	Unit	Q1-Q3 2017	Q1-Q3 2016	Change
Sales	EUR m	508.0	481.9	5.4%
EBITDA	EUR m	63.9	53.1	20.4%
EBITDA margin (EBITDA/sales)	%	12.6	11.0	1.6% points
EBIT	EUR m	43.4	33.8	28.4%
EBIT margin (EBIT/sales)	%	8.5	7.0	1.5% points
Earnings after tax	EUR m	31.0	22.5	38.2%
Earnings per share	EUR	1.38	1.00	38.0%
Investments in tangible assets	EUR m	23.8	26.1	-8.8%
Equity ratio (equity/balance sheet total)	%	41.5	36.3	5.2% points
Net working capital (NWC)	EUR m	73.8	56.5	30.6%
Average capital employed	EUR m	295.1	281.2	4.9%
Net financial debt (+)/assets (-)	EUR m	83.7	96.7	-13.4%
Employees (incl. leasing personnel) - end of period	FTE	4,547	4,261	6.7%

Key figures quarterly	Unit	Q4 2016	Q1 2017	Q2 2017	Q3 2017
Sales	EUR m	168.5	178.3	170.0	159.8
EBITDA	EUR m	27.0	22.8	22.3	18.8
EBITDA margin (EBITDA/sales)	%	16.0	12.8	13.1	11.8
EBIT	EUR m	18.6	15.9	15.4	12.1
EBIT margin (EBIT/sales)	%	11.0	8.9	9.1	7.5
Earnings after tax	EUR m	14.5	11.6	11.0	8.4
Earnings per share	EUR	0.65	0.52	0.49	0.37
Investments in tangible assets	EUR m	7.1	4.4	9.7	9.7
Equity ratio (equity/balance sheet total)	%	37.9	38.4	39.3	41.5
Net working capital (NWC)	EUR m	40.1	54.7	65.9	73.8
Capital empolyed	EUR m	276.2	289.0	303.4	314.0
Net financial debt (+)/-assets (-)	EUR m	69.9	70.6	82.0	83.7
Employees (incl. leasing personnel) - end of period	FTE	4,427	4,483	4,563	4,547

GROUP SALES BY CUSTOMERS

compared to previous year

■ Q1-Q3 2016 ■ Q1-Q3 2017

Group sales split showing the largest customers in period from January to September 2017 (red), compared to H1 2016 (grey), values in %

SALES & EBIT MARGIN

Comparision of the group sales and EBIT margin in the previous four quarters with Q3 2017

INTERIM REPORT Q3 2017

This interim report has not been subject to an audit or a review.

KEY FIGURES	02
GROUP MANAGEMENT REPORT	05
AUTOMOTIVE INDUSTRY DEVELOPMENTS	06
GROUP RESULTS	07
EMPLOYEES	08
CAPITAL EXPENDITURES AND KEY FINANCIAL FIGURES	09
RISKS AND UNCERTAINTIES	09
MATERIAL TRANSACTIONS WITH RELATED COMPANIES AND PERSONS	10
OUTLOOK	10
INTERIM CONSOLIDATED FINANCIAL STATEMENT ACCORDING TO IAS 34	11
CONSOLIDATED INCOME STATEMENT	12
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	12
CONSOLIDATED BALANCE SHEET	13
CONSOLIDATED CASH FLOW STATEMENT	14
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	15
SELECTED DISCLOSURES	15
SHARE AND INVESTOR RELATIONS	17
POLYTEC SHARE PRICE DEVELOPMENT	18
KEY SHARE FIGURES	18
SHAREHOLDER STRUCTURE	19
RESEARCH COVERAGE	19
CORPORATE CALENDAR 2018	19

GROUP MANAGEMENT REPORT Q3 2017

AUTOMOTIVE INDUSTRY DEVELOPMENTS

REGISTRATIONS OF NEW CARS IN THE MAJOR INTERNATIONAL MARKETS

In pieces	Q1-Q3 2017	Q1-Q3 2016	Change
China	16,731,300	16,189,500	3.3%
USA	12,801,200	13,044,100	-1.9%
European Union	11,660,100	11,244,000	3.7%
Japan	3,412,600	3,157,100	8.1%
India	2,434,100	2,217,200	9.8%
Brazil	1,576,100	1,460,600	7.9%
Russia	1,129,400	1,020,900	10.6%

During the first three quarters of 2017, China and the European Union demonstrated similar growth rates. However, from a nine-month perspective, the decline in light vehicle (cars and light trucks) registrations in the USA continued. This was in spite of the fact that September alone saw an increase in new registrations of 6%, or 1.5 million vehicles, which related to the hurricanes of recent months and the subsequent marked need for fleet renewal. Up to the end of September 2017, both the Indian and Japanese markets showed strong growth, while Russia saw double-digit expansion and the upturn in Brazil was maintained.

REGISTRATIONS OF NEW CARS IN THE EUROPEAN UNION

In pieces	Q1-Q3 2017	Share	Q1-Q3 2016	Share	Change (piece)
Germany	2,611,800	22.4%	2,555,800	22.7%	2.2%
United Kingdom	2,066,400	17.7%	2,150,500	19.1%	-3.9%
France	1,560,900	13.4%	1,502,500	13.4%	3.9%
Italy	1,533,700	13.2%	1,407,000	12.5%	9.0%
Spain	933,100	8.0%	874,200	7.8%	6.7%
Other EU countries	2,954,200	25.3%	2,754,000	24.5%	7.3%
EUROPEAN UNION	11,660,100	100%	11,244,000	100%	3.7%

New car registrations in the EU up to the end of September 2017 were some 416,100, or 3.7%, higher than in the same period of the preceding year. Italy showed particu-

The new registrations of vehicles with alternative powertrains (alternative fuel vehicles – AFV) accelerated markedly during the first half of 2017 (on the editorial closing date for this report at the beginning of November no newer data was available). In the EU, the registrations of battery electric vehicles (BEV), hybrid electric vehicles (HEV) and velarly strong growth and was followed by Spain. In absolute terms, the UK remained in second place with regard to registrations but towards the close of the third quarter

hicles powered by propane, ethanol and natural gas together rose by 37.8% to roughly 417,000 units in the first six months of the year (H1 2016: approx. 303,200).

As in the preceding periods, with 123,300 vehicles, Italy was the nation with the highest number of registrations in absolute terms and thus demonstrated growth of 17.7%. As saw a decline that was even sharper than that at the end of the first half of 2017 (minus 1.3%).

a consequence, around one third of cars employing alternative drive systems were registered in Italy. The UK was ranked second with 58,700 vehicles (growth of 27.5%), followed by France with 53,500 cars (26.5%), Germany with around 50,900 registrations (79.7%) and Spain with 30,900 vehicles, which represented an increase of 83.8%.

REGISTRATIONS OF NEW COMMERCIAL VEHICLES IN THE EUROPEAN UNION

In pieces	Q1-Q3 2017	Share	Q1-Q3 2016	Share	Change (piece)
Light commercial vehicles <=3.5 t	1,417,100	83.1%	1,422,600	82,6%	4.0%
Medium commercial vehicles >3.5 t to <=16 t	52,100	2.9%	53,200	3,1%	-2.1%
Heavy commercial vehicles >16 t	218,500	12.3%	217,700	12,6%	0.4%
Medium and heavy buses & coaches >3.5 t	30,100	1.7%	29,600	1,7%	1.7%
EUROPEAN UNION	1,779,800	100%	1,723,100	100%	3.3%

New commercial vehicle registrations in the EU during the first nine months of 2017 rose by 3.3%, or 56,700 units, to around 1.78 million vehicles (Q1-Q3 2016: 1.72 million). In the five most important sales markets, with 14.4% Spain again showed the strongest expansion. The French market strengthened by 6.5%, followed by Germany with 2.2% and Italy with 1.6%. Conversely, as opposed to the first three quarters of 2016, the UK saw a decline in registrations of 3.3%.

Sources: German Automotive Industry Association (VDA), European Automobile Manufacturers Association (ACEA)

GROUP RESULTS

In EUR m	Q3 2017	Q3 2016	Change	Q1-Q3 2017	Q1-Q3 2016	Change
Sales	159.8	155.6	2.6%	508.0	481.9	5.4%
EBITDA	18.8	20.0	–6.1%	63.9	53.1	20.4%
EBIT	12.1	13.5	–10.7%	43.4	33.8	28.4%
Earnings after tax	8.4	9.5	–11.2%	31.0	22.5	38.2%

EBITDA margin (EBITDA/sales)	11.8%	12.9%	–1.1% points	12.6%	11.0%	1.6% points
EBIT margin (EBIT/sales)	7.5%	8.7%	–1.2% points	8.5%	7.0%	1.5% points
Earnings per share (in EUR)	0.37	0.42	–11.9%	1.38	1.00	38.0%

In the first three quarters of 2017, the consolidated sales of the POLYTEC GROUP rose by 5.4% to EUR 508.0 million (Q1-Q3 2016: EUR 481.9 million). The period from January to September witnessed considerably increases in tooling and engineering revenues. This positive trend, which in the medium-term will lead to additional parts and other sales, was spread across the entire POLYTEC GROUP and related to both the passenger car and commercial vehicle market areas.

Group EBITDA in the first nine months of 2017 amounted to EUR 63.9 million, which represented growth of 20.4% and was therefore clearly above the level of the same period of the previous year (EUR 53.1 million). The EBITDA margin increased from 11.0% to 12.6% and in the first three quarters of 2017, POLYTEC GROUP EBIT was raised by 28.4% to EUR 43.4 million (Q1-Q3 2016: EUR 33.8 million). The EBIT margin also improved by 1.5 percentage points to 8.5% (Q1-Q3 2016: 7.0%). The income figures in the third quarter of 2017 were below those of the same period of the previous year due mainly to a substantial rise in tooling and engineering sales, which offer significantly lower margins than those derived from parts.

The material ratio went up by 0.4 percentage points to 47.6% (Q1-Q3 2016: 47.2%). This rise emanated mainly from the increase in tooling and engineering sales and higher raw material prices.

As compared to the same period of 2016, the personnel ratio fell by 1.8 percentage points to 31.4% (Q1-Q3 2016: 33.2%). This decline resulted from an uncustomary, additional funding obligation of around EUR 2.9 million in the second quarter of the previous year related to a pension fund, as well as increased efficiency and a higher degree of automation. The financial result developed in positive fashion and totalled minus EUR 2.4 million (Q1-Q3 2016: minus EUR 3.5 million). The interest expense was cut through the issue of new promissory note bonds. These are subject to markedly improved conditions and at the end of March 2017 were employed for the repayment of all the variable parts of the promissory note bonds from 2014. The group tax rate at the end of the third quarter of 2017 totalled 24.4%, which owing to a favourable country mix was 1.6 percentage points lower than in the first three quarters of the previous year.

In the period from January to September 2017, the POLYTEC GROUP generated a net profit of EUR 31.0 million, which was EUR 8.5 million, or 38.2%, higher than the comparable figure for 2016. Earnings per share rose from EUR 1.00 to EUR 1.38.

SALES BY MARKET AREAS

In EUR m	Q3 2017	Share	Q3 2016	Q1-Q3 2017	Share	Q1-Q3 2016
Passenger cars	101.7	63.6%	101.7	329.2	64.8%	316.6
Commerical vehicles	36.7	23.0%	33.6	121.7	24.0%	107.9
Non-automotive	21.4	13.4%	20.3	57.1	11.2%	57.4
POLYTEC GROUP	159.8	100%	155.6	508.0	100%	481.9

As compared to the same period of the previous year, during the first three quarters of 2017 sales in the passenger car market area, which with 64.8% represents the strongest area within the POLYTEC GROUP, were up by around 4.0% at EUR 329.2 million (Q1- Q3 2016: EUR 316.6 million). Sales in the commercial vehicles market area (24.0%) during the months from January to September 2017 were also notably higher than in the same period of 2016, increasing by 12.8% to EUR 121.7 million. Sales in the non-automotive market area (11.2%) remained stable at the level of the comparable period of 2016.

SALES BY CATEGORY

In EUR m	Q3 2017	Share	Q3 2016	Q1-Q3 2017	Share	Q1-Q3 2016
Parts and other sales	144.2	90.2%	142.6	456.9	89.9%	445.0
Tooling and engineering sales	15.6	9.8%	13.0	51.1	10.1%	36.9
POLYTEC GROUP	159.8	100%	155.6	508.0	100%	481.9

Tooling and engineering sales are subject to cyclical fluctuations and in the first nine months of 2017 rose considerably, increasing by 38.5%, or EUR 14.2 million, as compared to the same period in the preceding year. This rise was spread across the entire POLYTEC GROUP and related to both passenger cars and commercial vehicles.

SALES BY REGION

In EUR m	Q3 2017	Share	Q3 2016	Q1-Q3 2017	Share	Q1-Q3 2016
Austria	5.9	3.7%	3.8	16.8	3.3%	13.3
Germany	90.7	56.7%	97.8	284.5	56.0%	274.3
Other EU countries	53.3	33.4%	43.5	175.0	34.5%	166.2
Other countries	9.9	6.2%	10.5	31.7	6.2%	28.1
POLYTEC GROUP	159.8	100%	155.6	508.0	100%	481.9

EMPLOYEES

Full-time equivalents of employees incl.	End of period			Average period
leasing personnel (FTE)	30.09.2017	30.09.2016	Change	Q1-Q3 2017	Q1-Q3 2016	Change
Austria	551	541	10	535	559	–24
Germany	2,224	2,209	15	2,204	2,228	–24
Other EU countries	1,584	1,339	245	1,597	1,307	290
Other countries	188	172	16	180	171	9
POLYTEC GROUP	4,547	4,261	286	4,516	4,265	251

At the end of the third quarter 2017, POLYTEC GROUP workforce numbers (including leasing personnel) had risen by 6.7%, or 286 employees. Personnel numbers especially increased in the bestcost countries. This was due primarily to the acquisition in October 2016 of the POLYTEC Komló Kft. company in Hungary, which employs roughly 200 people.

CAPITAL EXPENDITURES AND KEY FINANCIAL FIGURES

INVESTMENTS

In EUR m	Q3 2017	Q3 2016	Change	Q1-Q3 2017	Q1-Q3 2016	Change
Investments in tangible assets	9.7	7.3	32.9%	23.8	26.1	–8.8%

Additions to tangible assets in the first nine months of 2017 amounted to EUR 23.8 million (Q1-Q3 2016: 26.1 million). In particular investment focused on the Telford location in the English Midlands, where a new painting plant is being built, and enlargements at the Chodová Planá plant in the Czech Republic.

KEY FINANCIALS

The key financial figures are presented together with the figures from the last balance sheet date of 31 December 2016 as follows:

	Unit	30.09.2017	31.12.2016
Equity	EUR m	210.0	189.9
Equity ratio (Equity/balance sheet total)	%	41.5	37.9
Net working capital (NWC) 1)	EUR m	73.8	40.1
NWC/sales	%	10.9	6.2
Net debt (+)/assets (-)	EUR m	83.7	69.9
Net debt/EBITDA	-	0.92	0.87
Gearing (Net debt/equity)	-	0.40	0.37
Capital employed	EUR m	314.0	276.2
ROCE before tax (EBIT/Capital employed)	%	21.1	19.1

1) Net working capital = current assets less current liabilities

Owing in particular to the increase in tooling and engineering sales, during the third quarter of 2017 net working capital rose by an additional EUR 7.9 million to EUR 73.8 million. As compared to 30 June 2017, this rise and the premature repayment of current interest-bearing liabilities resulted in a fall in cash and cash equivalents of EUR 15.8 million to EUR 55.4 million. Consequently, total assets as at 30 September 2017 declined to EUR 506.4 million (30 June 2017: EUR 515.5 million, 31 December 2016: EUR 501.4 million).

The equity ratio as at 30 September 2017 rose 3.6 percentage points to 41.5% compared to the balance sheet date at 31 December 2016.

As opposed to the balance sheet date of 31 December 2016, net debt was EUR 14.7 million higher at EUR 83.7 million and therefore remained stable at the level contained in the consolidated balance sheet from 30 June 2017, which amounted to EUR 82.0 million. At 0.92, the ratio of net debt to the EBITDA key figure (which reflects the fictive duration of debt repayment) remained at the level as on the 31 December 2016 balance sheet date. The gearing ratio rose marginally from 0.37 to 0.40, but despite the increase in net working capital stayed at the same low level of 30 June 2017.

ROCE (return on capital employed) in the first nine months of 2017 was 2.0 percentage points up on the figure for the 2016 financial year at 21.1% and was therefore well above the ROCE target of at least 15%.

RISKS AND UNCERTAINTIES

No significant effects upon the POLYTEC GROUP's operative business that could be attributed to the intention of the United Kingdom to leave the European Union, or national and international developments were evident either prior to 30 September 2017, or up to the closing date of this report at the beginning of November 2017. Which other possible risks and uncertainties that might possibly exert an influence upon the sales and earnings curve of the POLYTEC GROUP in future cannot be estimated at present.

As far as risk reporting is concerned, we would refer to the information included in section G.2 of the notes to the consolidated financial statements in the annual report for 2016.

MATERIAL TRANSACTIONS WITH RELATED COMPANIES AND PERSONS

As compared to 31 December 2016, there were no material changes regarding business dealings with related companies and persons and therefore reference should be made to the notes to the consolidated financial statements of POLYTEC Holding AG as at 31 December 2016.

OUTLOOK

Based on the assumption of a stable economic situation and positive business development among all its major customers, at a minimum the POLYTEC GROUP executive management continues to foresee slight growth in both group sales and operating results in the 2017 financial year.

INTERIM CONSOLIDATED FINANCIAL STATEMENT ACCORDING TO IAS 34

This interim report has not been subject to an audit or a review.

CONSOLIDATED INCOME STATEMENT

for the period from 1 January to 30 September 2017 and the period from 1 July to 30 September 2017 compared to the figures from the previous year

In EUR k	Q1-Q3 01.01. - 30.09.		Q3 01.07. - 30.09.
	2017	2016	2017	2016
Net sales	508,028	481,925	159,762	155,646
Other operating income	3,468	3,240	1,077	1,206
Changes in inventory of finished and unfinished goods	4,933	392	2,104	413
Own work capitalised	887	1,543	281	646
Expenses for materials and services received	-246,747	-227,744	-77,605	-73,131
Personnel expenses	-161,061	-160,1601)	-51,140	-49,4511)
Other operating expenses	-45,601	-46,2741)	-15,663	-15,3201)
Result from companies accounted for using the equity method	0	142	0	37
Earnings before interest, taxes and depreciation (EBITDA)	63,907	53,064	18,816	20,046
Depreciation	-20,524	-19,282	-6,767	-6,556
Earnings before interest and taxes = operating result (EBIT)	43,383	33,782	12,049	13,491
Interest result	-2,514	-3,014	-1,012	-1,052
Other financial result	151	-460	-11	87
Financial result	-2,362	-3,474	-1,023	-965
Earnings before tax	41,021	30,308	11,027	12,525
Taxes on income	-9,993	-7,855	-2,622	-3,063
Earnings after tax	31,028	22,453	8,404	9,462
thereof result of non-controlling interests	-697	-518	-298	-141
thereof result of the parent company	30,332	21,935	8,106	9,322
Earnings per share in EUR	1.38	1.00	0.37	0.42

1) Previous year adjusted: the expenses for leasing personnel disclosed under other operating expenses were reclassified as personnel expenses.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

01.01. - 30.09.2017 In EUR k	Group	Non controlling interests	Total
Earnings after tax	30,332	697	31,028
Currency translations	-1,619	0	-1,619
Total comprehensive income	28,713	697	29,409
01.01. - 30.09.2016 In EUR k	Group	Non controlling interests	Total
Earnings after tax	21,935	518	22,453
Currency translations	-2,521	0	-2,521
Total comprehensive income			19,932

CONSOLIDATED BALANCE SHEET AS OF 30.09.2017

Compared to the figures from the balance sheet date as of 31 December 2016

	ASSETS (in EUR k)	30.09.2017	31.12.2016
	A. Non-current assets:
I.	Intangible assets	2,288	2,368
II.	Goodwill	19,180	19,180
III.	Tangible assets	226,167	224,192
IV.	Other non-current assets	126	126
V.	Other long-term receivables	280	556
VI.	Deferred tax assets	8,600	12,254
		256,642	258,678

	B. Current assets:
I.	Inventories	61,694	55,834
II.	Trade accounts receivable	64,630	49,791
III.	Receivables from construction contracts	48,212	35,862
IV.	Other current receivables	15,125	17,196
V.	Income tax receivables	496	397
VI.	Current interest-bearing receivables	4,269	4,149
VII.	Cash and cash equivalents	55,362	79,540
		249,789	242,770
		506,430	501,448

	EQUITY AND LIABILITIES (in EUR k)	30.09.2017	31.12.2016
	A. Shareholder's equity:
I.	Share capital	22,330	22,330
II.	Capital reserves	37,563	37,563
III.	Treasury stock	-1,855	-1,855
IV.	Retained earnings	155,447	133,913
V.	Other reserves	-9,935	-8,316
		203,550	183,635
VI.	Non-controlling interests	6,445	6,289
		209,995	189,924

	B. Non-current liabilities:
I.	Non-current, interest-bearing liabilities	130,211	128,837
II.	Provision for deferred taxes	1,092	917
III.	Provisions for personnel	27,914	27,789
IV.	Other long-term liabilities	7,767	10,198
		166,985	167,741

	C. Current liabilities:
I.	Current interest-bearing liabilities	13,133	24,795
II.	Liabilities on income taxes	4,357	6,752
III.	Trade accounts payable	47,455	50,603
IV.	Liabilities from construction contracts	5,142	1,597
V.	Other current liabilities	23,276	25,832
VI.	Current provisions	36,087	34,204
		129,451	143,783
		506,430	501,448

CONSOLIDATED CASH FLOW STATEMENT

for the periode from 1 January to 30 September 2017 compared to the figures from the previous period

			01.01. - 30.09.
	In EUR k	2017	2016
	Earnings before tax	41,021	30,308
-	Income taxes	-8,605	-2,962
+(-)	Depreciation (appreciation) of fixed assets	20,524	19,185
-(+)	Result for companies accounted for at equity	0	-142
+(-)	Other non-cash expenses and earnings	-909	-58
+(-)	Increase (decrease) in non-current provisions for employees	125	806
-(+)	Profit (loss) from asset disposals	-228	-320
=	Consolidated cash flow from earnings	51,927	46,817
-(+)	Increase (decrease) in inventories	-6,204	-668
-(+)	Increase (decrease) in trade and other receivables	-25,461	-8,415
+(-)	Increase (decrease) in trade and other payables	-429	-7,720
+(-)	Increase (decrease) in provisions	-482	6,600
=	Consolidated cash flow from operating activities	19,351	36,613
-	Investments in fixed assets	-25,115	-28,420
-	Investments in financial assets	0	-13
+	Payments from the disposal of intangible and tangible assets	1,319	1,461
-(+)	Increase (decrease) interest-bearing receivables and other non-current receivables	-276	8,935
=	Consolidated cash flow from investing activities	-24,072	-18,038
+	Inflows from loan financing	216	301
-	Repayments of loan financing	-5,187	-4,665
-	Repayments of real estate loans	-3,973	-4,081
-	Outflows from financial leasing agreements	-1,113	-6,174
+(-)	Changes in current financial liabilities	-8,360	761
+	Inflows from promissory note bonds	8,500	0
-	Third party dividends	-9,338	-7,047
=	Consolidated cash flow from financing activities	-19,255	-20,904
+(-)	Consolidated cash flow from operating activities	19,351	36,613
+(-)	Consolidated cash flow from investing activities	-24,072	-18,038
+(-)	Consolidated cash flow from financing activities	-19,255	-20,904
=	Changes in cash and cash equivalents	-23,976	-2,329
+(-)	Effect from currency translations	-202	-136
+	Opening balance of cash and cash equivalents	79,540	57,683
=	Closing balance of cash and cash equivalents	55,362	55,219

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

In EUR k	Share capital	Capital reserves	Treasury stock	Retained earnings	Other reserves	Shares of POLYTEC Holding AG stockholders	Non controlling interests	Total
Balance as of 1 Jan. 2017	22,330	37,563	-1,855	133,913	-8,317	183,635	6,289	189,924
Comprehensive income after tax	0	0	0	30,332	0	30,332	697	31,028
Other results after tax	0	0	0	0	-1,619	-1,619	0	-1,619
Dividend payments	0	0	0	-8,798	0	-8,798	-540	-9,338
Balance as of 30 Sept. 2017	22,330	37,563	-1,855	155,447	-9,936	203,549	6,446	209,995

In EUR k	Share capital	Capital reserves	Treasury stock	Retained earnings	Other reserves	Shares of POLYTEC Holding AG stockholders	Non controlling interests	Total
Balance as of 1 Jan. 2016	22,330	37,563	-1,855	104,217	-5,345	156,910	6,015	162,925
Comprehensive income after tax	0	0	0	21,935	0	21,935	518	22,453
Other results after tax	0	0	0	0	-2,521	-2,521	0	-2,521
Dividend payments	0	0	0	-6,599	0	-6,599	-450	-7,049
Balance as of 30 Sept. 2016	22,330	37,563	-1,855	119,553	-7,866	169,725	6,083	175,808

SELECTED DISCLOSURES

GENERAL INFORMATION

POLYTEC Holding AG (listed in the Commercial Registry of the City of Linz under the number FN 197646 g) is an Austrian holding company, which together with its subsidiaries is mainly operating in the automotive and plastics industry.

ACCOUNTING AND EVALUATION METHODS

This interim report as of 30 September 2017 was compiled pursuant to the legal provisions of International Financial Reporting Standards (IFRS), and more specifically, in conformity with IAS 34 (interim reports). The same accounting and evaluation methods adopted on 31 December 2016 were applied to this report. This interim report does not include all information and data contained in the consolidated financial statements as of 31 December 2016 of POLYTEC Holding AG. Please refer to the consolidated financial statements for more information.

Reclassification was undertaken in the consolidated income statement in order to enhance its informative value. The expenses for leasing personnel were transferred from the item "Other operating expenses" to "Personnel expenses". Above all, disclosure as personnel expense is correct owing to the fact that during operating procedures no differentiation is made between company and leasing personnel in the POLYTEC GROUP's calculation and business analysis of the costs of manual labour (production wages). In addition, the effective employment of leasing personnel demands extensive human resource support and the use of suitable managerial instruments. Accordingly, disclosure in the consolidated income statement is in line with internal reporting. The figures for the preceding year were adjusted appropriately.

SCOPE OF CONSOLIDATION

The consolidated financial statement includes all major Austrian and foreign companies, where POLYTEC Holding AG directly or indirectly holds a majority of voting rights. Apart from the initial inclusion of POLYTEC ESTATES UK Ltd. and the marger of two consolidated companies, between 1 January 2017 and 30 September 2017, the scope of consolidation

remained unchanged. Consequently, 47 companies are now fully consolidated of which 36 are international.

ACQUISITIONS 2016

In the first nine months of 2017, there were no changes in the valuations related to acquisitions in 2016. For further information, reference should be made to the

EQUITY

At the 17th Annual General Meeting on 22 May 2017, a dividend of EUR 8.8 million (previous year EUR 6.6 million) was agreed unanimously and paid out on 31 May 2017. This corresponds with a dividend of EUR 0.40 per eligible share (previous year EUR 0.30).

annual report for 2016.

DEBT CAPITAL

On 30 March 2017, the entire variable percentage of the 2014 promissory note bonds amounting to EUR 36,500 k was repaid prematurely and refinanced with the issue of new promissory note bonds to the value of EUR 45,000 k. This was again issued in four instalments with terms of five and seven years and respective fixed and floating interest rates. The cancelled instalments were redeemed directly by the arranger of the new promissory note bonds, whereby POLYTEC Holding AG only received the mark-up sum.

MATERIAL TRANSACTIONS WITH RELATED COMPANIES AND PERSONS

There were no material changes regarding business transactions with companies and persons as compared to 31 December 2016 and therefore in this regard reference should be made to the notes contained in the consolidated financial statements of POLYTEC Holding AG as at 31 December 2016.

BUSINESS SEASONALITY

The quarterly reporting of POLYTEC GROUP's sales throughout one financial year strictly correlates to the car manufacturing operations of the Group's customers. For this reason, quarters in which customers normally close for works holidays generally have lower rates of sales turnover than quarters without such effects. In addition to this, sales from one quarter can also be influenced by the billing of large tooling or engineering projects.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

No significant events have occurred after 30 September 2017.

SHARE & INVESTOR RELATIONS

POLYTEC SHARE PRICE DEVELOPMENT

KEY SHARE FIGURES

	Unit	Q1-Q3 2017	Change	Q1-Q3 2016	Q1-Q3 2015	Q1-Q3 2014
Closing price last trading day of period	EUR	20.07	151.2%	7.99	6.81	6.38
Highest closing price during period	EUR	20.07	145.1%	8.19	8.45	8.54
Lowest closing price during period	EUR	10.40	56.4%	6.65	6.20	6.30
Market capitalisation last day of period	EUR m	448.2	145.1%	178.4	152.0	142.5
Earings per share	EUR	1.38	38.00%	1.00	0.80	0.43

On 29 September 2017, the fi nal day of stock exchange trading during the period under review, the POLYTEC share (ISIN: AT0000A00XX9) closed at a price of EUR 20.07. The absolute increase in value of EUR 11.67 since the beginning of January 2017 corresponded with performance of 93.0%. Consequently, as was the case after the fi rst half-year, the POLYTEC share was rated third amongst all of the 70 shares listed in the Vienna Stock Exchange. Moreover, as far as market capitalisation was concerned, the POLYTEC share moved up from 37 to 33 in the rankings of the 39 shares in the Vienna Prime Market.

The current value trend was also highly satisfactory as compared to the periodic closing dates of previous years, which are shown in the table.

During the fi rst nine months of 2017, money turnover relating to the POLYTEC share on the Vienna Stock Exchange involved roughly EUR 187.4 million (Q1-Q3 2016: EUR 43.1 million) and stock turnover of 12.4 million shares (Q1- Q3 2016: 5.8 million). During the 187 trading days, an average of 66,559 POLYTEC shares were traded daily (Q1-Q3 2016: 30,983). The highest trading level was reached on 25 September 2017 with POLYTEC share contracts to the value of around EUR 4.5 million (245,628 shares). All the fi gures stated represent double counting.

In the period up to the end of September 2017, the ATX Prime Market Index rose by 24% to close at 1,666.35, while during the fi rst nine months of the year, the STOXX® Europe 600 Automobile & Parts (SXAP) Index demonstrated a highly volatile pattern. Following a period low of 528 points at the end of July/beginning of August, the Index subsequently recovered quickly and closed on 29 September 2017 with a high for the period of 594 points, which represented a rise of 8.0% in comparison to 2 January 2017.

SHAREHOLDER STRUCTURE

As at 30 September 2017, POLYTEC Holding AG's share capital remained unaltered at EUR 22.3 million and was divided into 22,329,585 bearer shares. On the reporting date, POLYTEC Holding AG held 334,041 treasury shares, which was an unchanged figure and represented roughly 1.50% of share capital. The Huemer Group continued to hold approx. 29.04% (16.00% Huemer Holding GmbH and 13.04% Huemer Invest GmbH) of POLYTEC

Holding AG share capital. On 18 October 2017, the shareholder NN Group N.V., Amsterdam (Netherlands) notified POLYTEC Holding AG of a fall below a shareholding disclosure threshold on 17 October 2017. Accordingly, as at 17 October 2017, two administered funds held a total of 4.99%, or 1,115,250 POLYTEC Holding AG shares. On 18 October 2017, POLYTEC Holding AG issued a notification to this effect in accordance with § 93 Para. 2 Austrian Stock Exchange Act. Apart from this information the shareholders did not provide POLYTEC Holding AG with any further voting right notifications pursuant to § 91 of the Austrian Stock Exchange Act. As at the editorial closing date of this report at the beginning of November 2017, on the basis of the issued shares, the shareholder structure of POLYTEC Holding AG had the following form:

RESEARCH COVERAGE

The financial institutions listed below publish reports on POLYTEC GROUP and the recommendations and price targets up to the editorial closing date of this report at the beginning of November 2017 were as shown below. The current recommendations and price targets can be called up from www.polytec-group.com in the Investor Relations, Share and Research section.

Institute	Recommendation	Latest price target
BAADER Helvea Equity Research	BUY	EUR 21.00
ERSTE Group Research	HOLD	EUR 19.00
M.M.Warburg Research	BUY	EUR 22.00
Raiffeisen CENTROBANK Research	BUY	EUR 19.50

CORPORATE CALENDAR 2018

This is the corporate calendar of POLYTEC Holding AG for the 2018 financial year:

Date	Day	Event
12. April 2018	THU	Financial statements and annual report 2017
6. May 2018	SUN	Record date "Annual General Meeting"
9. May 2018	WED	Interim report Q1 2018
16. May 2018	WED	18th Annual General Meeting, Hörsching, 10:00 a.m.
22. May 2018	TUE	Ex-dividend date
23. May 2018	WED	Record date "Dividends"
24. May 2018	THU	Dividend payment date
8. August 2018	WED	Half-year financial report 2018
7. November 2018	WED	Interim report Q3 2018

The Financial Statements and Annual Report for 2017 financial year to be published 12 April 2018.

Current news see online in the section Investor Relations of corporate website www.polytec-group.com

Contact:

POLYTEC Holding AG, Paul Rettenbacher, Head of Investor Relations, Polytec-Strasse 1, 4063 Hörsching, Austria; T +43 7221 701-292; paul.rettenbacher@polytec-group.com

Note:

This interim report has not been subject to an audit or a review. This interim report has been prepared with the greatest possible care and every effort has been made to ensure the accuracy of the data that it contains. Nevertheless, rounding, typographical and printing errors cannot be excluded. The use of automatic calculating devices can result in rounding-related differences during the addition of rounded amounts and percentages. This interim report contains assessments and assertions relating to the future made on the basis of all the information currently available. Such future-related statements are usually introduced with terms such as "expect", "estimate", "plan", "anticipate", etc. We would draw your attention to the fact that various factors could cause actual conditions and results to deviate from the expectations outlined in this report. This interim report is published in German and English. In cases of doubt, the German version shall take precedence. This interim report was published on 7 November 2017.

Imprint:

Editor: POLYTEC Holding AG; VAT identification number: ATU49796207; LEI: 529900OVSOBJNXZACW81; Commercial Register: FN 197676 g, Commercial Court Linz; Polytec-Strasse 1, 4063 Hörsching, Austria; T +43 7221 701-0; Board of Directors: Friedrich Huemer, Markus Huemer, Alice Godderidge, Peter Haidenek; Chairman of the Supervisory Board: Fred Duswald; Photos: © POLYTEC Holding AG; Typesetting: Ingeborg Schiller Grafik-Design, Salzburg; www.polytec-group.com

PASSION CREATES INNOVATION www.polytec-group.com