Polytec Holding AG

Quarterly Report • Nov 3, 2016

INTERIM REPORT Q3 2016

KEY FIGURES Q3 2016

Key figures Q1 to Q3	Unit	Q1-Q3 2016	Q1-Q3 2015	Change
Sales	EUR m	481.9	465.5	3.5%
EBITDA	EUR m	53.1	44.1	20.4%
EBITDA margin	%	11.0	9.5
EBIT	EUR m	33.8	26.7	26.5%
EBIT margin	%	7.0	5.7
Earnings after tax	EUR m	22.5	18.0	25.0%
Earnings per share	EUR	1.00	0.80	25.0%
Capital expenditures	EUR m	26.1	122.5	-78.7%
Equity ratio	%	36.3	33.2
Net working capital	EUR m	56.5	59.2	-4.6%
Average capital employed	EUR m	281.2	220.4	27.6%
Net financial debt (+)/-assets (-)	EUR m	96.7	108.8	-11.1%
Employees (incl. leased staff) - end of period	FTE	4,261	4,292	-0.7%

Key figures quarterly	Unit	Q4 2015	Q1 2016	Q2 2016	Q3 2016
Sales	EUR m	161.0	157.4	168.9	155.6
EBITDA	EUR m	15.6	15.4	17.6	20.0
EBITDA margin	%	9.7	9.8	10.4	12.9
EBIT	EUR m	9.9	9.4	10.9	13.5
EBIT margin	%	6.1	6.0	6.5	8.7
Earnings after tax	EUR m	6.2	5.9	7.1	9.5
Earnings per share	EUR	0.28	0.26	0.31	0.42
Capital expenditures	EUR m	12.9	10.2	8.6	7.3
Equity ratio	%	33.6	34.1	34.5	36.3
Net working capital	EUR m	50.5	54.8	57.4	56.5
Capital empolyed	EUR m	274.4	283.5	287.1	287.9
Net financial debt (+)/-assets (-)	EUR m	99.1	102.8	105.8	96.7
Employees (incl. leased staff) - end of period	FTE	4,223	4,255	4,343	4,261

GROUP SALES BY CUSTOMERS

SALES & EBIT MARGIN

INTERIM REPORT Q3 2016

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	09
OUTLOOK	09
SHARE AND INVESTOR RELATIONS	10
POLYTEC SHARE PRICE DEVELOPMENT	11
KEY SHARE FIGURES	11
DIVIDEND POLICY	12
SHAREHOLDER STRUCTURE	12
INVESTOR CONTACTS	12
RESEARCH COVERAGE	13
DETAILS REGARDING THE POLYTEC SHARE	13
CORPORATE CALENDAR 2017	13
INTERIM CONSOLIDATED FINANCIAL STATEMENT
ACCORDING TO IAS 34	14
CONSOLIDATED INCOME STATEMENT	15
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	15
CONSOLIDATED BALANCE SHEET	16
CONSOLIDATED CASH FLOW STATEMENT	17
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	18
SEGMENT REPORTING	18
SELECTED DISCLOSURES	19

GROUP MANAGEMENT REPORT Q3 2016

AUTOMOTIVE INDUSTRY DEVELOPMENTS

Growth in the three main international automotive markets comprised by China, the USA and the EU in the first nine months of 2016 amounted to 9.1% and therefore the pattern of more dynamic expansion as compared to 2015 was maintained. Up to the end of September 2016, some 40.5 million vehicles were newly registered in these markets (Q1-Q3 2015: 37.1 million). China remained the leader in this regard with three-quarter growth in 2016 that was 17.7% up on the comparable figure of the previous year at around 16.2 million vehicles. In September alone, new registrations in China rose by 31.6% and one reason for this automotive market boom was the probable end in 2016 of the tax reduction on cars with small engines. The German Automotive Industry Association (VDA) estimates that the fourth quarter of 2016 will continue to demonstrate this anticipatory effect in the People's Republic, but that demand will be correspondingly lower in the coming year.

The Indian market was also extremely vibrant and in September 2016 car sales rose by around 20%. Following the first three quarters, with 2.2 million new vehicles, sales in India were 8.9% up on the level of 2015 and after Japan (3.2 million units, or minus 3.7%), the nation represented the world's fifth largest automotive market. As expected, the number of registrations in Russia and Brazil continued to fall.

The trend towards light trucks in the USA was maintained in September 2016, while car sales declined. Overall, with 13.0 million new light vehicle (cars and light trucks) registrations in the US market during first nine months of 2016 were only slightly up (0.4%) on the level of the preceding year. However, in absolute figures the USA stayed ahead of the EU countries.

New registrations of cars in the EU in the period up to the end of September 2016 were 8.0% higher at over 11.2 million units (Q1-Q3 2015: 10.4 million). In combination, the five most important EU sales markets, which to date accounted for more than three-quarters (75.5%) of new registrations in 2016, all achieved growth. Thus far, double-digit growth was attained by Italy (17.4%) and Spain (11.5%), followed by Germany (6.1%), France (5.7%) and the UK with 2.6%. Demand was also strong in the smaller European states during the first nine months of the year as exemplified by Hungary (25.6%). In September 2016 alone, 1.5 million cars were newly registered in the 28 EU countries, of which 20% (298,000) related to the German market, which was especially dynamic with growth of 9.4% as compared to the same month of the previous year. Consequently, demand development was markedly better than anticipated.

Alternative fuel vehicles

Sales of vehicles with alternative drive systems (alternative fuel vehicles – AFV) in the EU gathered momentum in the third quarter of 2016. However, the differences between countries and the diverse drive technologies were also partially very large. In the EU, the registrations of battery electric vehicles (BEV), hybrid electric vehicles (HEV) and vehicles using propanol, ethanol and natural gas drives rose by 4.7% to roughly 440,000 units in the first nine months of the year (Q1-Q3 2015: approx. 420,000). Of this figure, a third (141,000) were registered in Italy alone, although as opposed to 2015, registrations were down by 14.6%. With some 70,000 vehicles (growth of 24.3%) the UK was in second place followed by France with 58,000 cars (2.2%) and Germany with around 46,000 registrations (15.0%). New registrations in the non-EU country Norway surpassed the German figure by 1,000 vehicles and represented growth of 40.5%.

If the various drive technologies are considered, the first three quarters of 2016 show a development pattern in which BEV registrations demonstrated growth of 17.9% and those of HEVs rose by a notable 27.1%. Conversely, the market for AFVs not employing electric power, but instead propanol, ethanol or natural gas was clearly down with a minus of 22.8%.

New registrations of commercial vehicles in the EU during the first nine months of 2016 were up by 13.1% at around 1.7 million units (Q1-Q3 2015: over 1.5 million). Among the five most important sales markets, Italy continued to show by far the largest growth with 40.2%. Growth in Spain during the first three quarters of 2016 amounted to 13.1%, followed by Germany with 11.3%, France with 10.1% and the UK with 2.0%. As in the preceding months, light trucks with weights up to 3.5 t and some 1,423,000 units in absolute terms constituted the most important vehicle group and demonstrated growth of 13.5% as compared to the same period of 2015. Some 266,000 medium-weights trucks (heavier than 3.5 but lighter than 16 t) were registered in the EU, which represented an increase of 12.8%. Sales of heavy trucks with weights in excess of 16 t increased the most, rising by 14.1% in the first six months of 2016 to a total of 215,000 units in absolute terms. In the period up to September 2016, the sales of buses in the over 3.5 t category were stable with a rise of 0.5%, or 29,000 units.

Sources: German Automotive Industry Association (VDA), European Automobile Manufacturers Association (ACEA), automobilwoche-datencenter.de

GROUP RESULTS

In EUR m	Q3 2016	Q3 2015	Change	Q1-Q3 2016	Q1-Q3 2015	Change
Sales	155.6	154.2	1.0%	481.9	465.5	3.5%
EBITDA	20.0	14.5	38.1%	53.1	44.1	20.4%
EBIT	13.5	8.5	58.6%	33.8	26.7	26.5%
Earnings after tax	9.5	5.9	59.1%	22.5	18.0	24.7%
EBITDA margin	12.9%	9.4%		11.0%	9.5%
EBIT margin	8.7%	5.5%		7.0%	5.7%
Earnings per share (in EUR)	0.42	0.26	61.5%	1.00	0.80	25.0%

During the first nine months of 2016, the consolidated sales revenues of the POLYTEC GROUP rose by 3.5% to EUR 481.9 million (Q1-Q3 2015: EUR 465.5 million). However, as a result of the summer closure at major client companies, development in the third quarter of 2016 failed to replicate the strong sales growth of the second quarter. Nevertheless, in the period from July to September 2016, slight growth of 1.0% was determined with an increase in sale revenues from EUR 154.2 million to EUR 155.6 million.

The result trend showed a marked improvement, as exemplified by group EBIT, which in the first nine months of 2016 went up by 26.5% to EUR 33.8 million (Q1-Q3 2015: EUR 26.7 million). Moreover, in the first three quarters of the year the EBIT margin gained 1.3 percentage points to stand at 7.0% (Q1- Q3 2015: 5.7%). In the third quarter of 2016 alone, as opposed to the comparable three months of 2015, the EBIT margin rose 3.2 percentage points to 8.7%.

Other operating expenses rose from EUR 56.8 million to EUR 60.0 million as a consequence of investments that could not be capitalised and fixed asset maintenance. The financial result amounted to minus EUR 3.5 million (Q1-Q3 2015: minus EUR 3.1 million). The rise in other financial expenses was the result of the general trend in the financial markets and relates to financial instruments that are unsuitable for hedge accounting.

The POLYTEC GROUP's tax rate at the end of the third quarter of 2016 stood at 25.9%, which was 2.1 percentage points higher than in the same period of the previous year. In the first nine months of 2016, the group generated a net profit of 22.5 million, which was EUR 4.5 million, or 24.7%, up on the 2015 result. Earnings per share were 25.0% higher at EUR 1.0 (Q1-Q3 2015: EUR 0.8).

In EUR m	Q3 2016	Q3 20151)	Change	Q1-Q3 2016	Q1-Q3 20151)	Change
Plastics processing	152.1	152.0	0.0%	475.4	458.5	3.7%
Others	7.4	7.4	1.3%	22.6	22.7	-0.3%
Transition	-3.9	-5.2	-25.9%	-16.1	-15.7	2.6%
POLYTEC GROUP	155.6	154.2	1.0%	481.9	465.5	3.5%

SALES BY SEGMENT

1) Previous year presented in comparable fashion – see accounting and valuation methods in the annex.

SALES BY MARKET AREAS

In EUR m	Q3 2016	Share	Q3 2015	Q1-Q3 2016	Share	Q1-Q3 2015
Passenger cars	101.7	65.4%	100.1	316.6	65.7%	313.1
Commerical vehicles	33.6	21.6%	39.5	107.9	22.4%	111.0
Non-automotive	20.3	13.0%	14.6	57.4	11.9%	41.4
POLYTEC GROUP	155.6	100%	154.2	481.9	100%	465.5

As compared to the same period of the previous year, sales revenues in the first nine months of 2016 in the passenger car market area, which with 65.7% is the POLYTEC GROUP's strongest sales area, rose marginally by 1.1% to EUR 316.6 million (Q1-Q3 2015: EUR 313.1 million). Sales in the first three quarters of 2016 involving cars from the VW Group, the car customer with the largest share of POLYTEC's consolidated sales revenues, were down slightly by 1.4% and thus somewhat lower than in the comparable period of 2015.

previous year, sales revenues in the months from January to September 2016 in the commercial vehicles market area (22.4%) fell by 2.8% from EUR 111.0 million to EUR 107.9 million.

In comparison with the same period of the

The non-automotive market area demonstrated positive development and already accounts for some 12% of POLYTEC's consolidated sales revenues. Sales in the first nine months of 2016 were markedly higher than in 2015, rising by 38.6% to EUR 57.4 million. The impetus for this upward trend was provided by the further increase in sales of transport boxes to the customer IFCO by the Ebensee plant, where all production lines have been in full operation since the middle of 2016.

SALES BY CATEGORY

In EUR m	Q3 2016	Share	Q3 2015	Q1-Q3 2016	Share	Q1-Q3 2015
Part sales and other sales	142.6	91.6%	136.0	445.0	92.3%	418.9
Tooling and engineering sales	13.0	8.4%	18.2	36.9	7.7%	46.6
POLYTEC GROUP	155.6	100%	154.2	481.9	100%	465.5

Tooling and engineering sales are subject to cyclical fluctuations and owing to the fact that the previous year witnessed excellent project progress, showed a fall of EUR 9.7 million in the first nine months of 2016. Conversely, increases in the series area and the sales trend in the non-automotive market area resulted in a rise in part sales and other sales by EUR 26.1 million to EUR 445.0 million.

SALES BY REGION

In EUR m	Q3 2016	Share	Q3 2015	Q1-Q3 2016	Share	Q1-Q3 2015
Austria	3.8	2.4%	4.3	13.3	2.8%	14.1
Germany	97.8	62.8%	86.5	274.3	56.9%	252.8
Other EU countries	43.5	28.0%	54.0	166.2	34.5%	170.9
Other countries	10.5	6.8%	9.4	28.1	5.8%	27.7
POLYTEC GROUP	155.6	100%	154.2	481.9	100%	465.5

EMPLOYEES

Full-time equivalents of employees	End of period			Average period
(FTE)	30.09.2016	30.09.2015	Change	Q1-Q3 2016	Q1-Q3 2015	Change
Austria	541	592	-51	559	581	-22
Germany	2,209	2,344	-135	2,228	2,314	-86
Other EU countries	1,339	1,185	154	1,307	1,170	137
Other countries	172	171	1	171	165	6
POLYTEC GROUP	4,261	4,292	-31	4,265	4,230	35

As compared to last year, at the end of the September 2016 group workforce numbers (including leasing personnel) were down in the high-wage countries, but rose in the bestcost states. As a result, personnel expenditure in both the third quarter of 2016 and the nine-month period as a whole remained at the level of the previous year. This was despite the fact that personnel expenses were burdened by an unusual, additional funding obligation to a pension fund amounting to EUR 2.9 million in the second quarter of 2016, as opposed to an unusual severance obligation of EUR 1.6 million in the previous year. As an end result, the personnel ratio at the end of the third quarter of 2016 was 0.8 percentage points down on the 2015 figure at 30.4%.

CAPITAL EXPENDITURE AND KEY FINANCIAL FIGURES

CAPITAL EXPENDITURE

In EUR m	Q3 2016	Q3 2015	Change	Q1-Q3 2016	Q1-Q3 2015	Change
Capital expenditures	7.3	14.9	-51.0%	26.1	122.5	-78.7%

Additions to fixed assets in the first nine months of 2016 totalled EUR 26.1 million (Q1-Q3 2015: EUR 122.5 million). The marked fall in comparison with the same period of 2015 was primarily the result of the purchase of a real estate portfolio in the first quarter of 2015. Fixed asset investment in the first quarter of 2016 amounted to EUR 10.2 million, EUR 8.6 million in the second quarter and EUR 7.3 million in the third quarter.

KEY FINANCIAL FIGURES

The key financial figures are presented as follows with comparative figures from the last balance sheet closing date of 31 December 2015.

	Unit	30.09.2016	31.12.2015
Equity	EUR m	175.8	162.9
Equity ratio	%	36.3	33.6
Net working capital	EUR m	56.5	50.5
Net working capital/Sales	%	8.8	8.1

Net debt (+) /- cash (-)	EUR m	96.7	99.1
Net debt (+) /- cash (-)/EBITDA	%	1.41	1.66
Gearing	%	0.55	0.61
Capital employed	EUR m	287.9	274.4

At the end of the third quarter of 2016, total group assets were slightly down by EUR 0.7 million at EUR 484.4 million. By contrast, in spite of the payment of a dividend of EUR 6.6 million, the equity ratio as at 30 September 2016 was 2.7 percentage points up on the figure for the balance sheet date of 31 December 2015 at 36.3%. Moreover, as compared to the balance sheet date of 31 December 2015, net debt fell by EUR 2.4 million to EUR 96.7 million, while owing to seasonal fluctuations, net working capital at the end of the third quarter of 2016 was EUR 6.0 million higher than on 31 December 2015 at EUR 56.5 million.

RISKS AND UNCERTAINTIES

There were no major changes with regard to risks and uncertainties during the first nine months of the 2016 financial year. In the period up to 30 September 2016 and beyond to the editorial closing date for this report at the end of October 2016, no significant impact upon the operative activities of the POLYTEC GROUP derived from the VW exhaust gas affair, or the result of the "BREXIT" referendum. The VW Group has been the POLYTEC GROUP's largest customer in terms of sales for many years. Any consequences – due to the exhaust gas affair – that may result upon the POLYTEC GROUP's sales and earnings development in years to come remain impossible to estimate fully.

As far as group risk reporting is concerned, we would refer you to section F.4 of the notes contained in the 2015 consolidated financial statements.

MATERIAL TRANSACTIONS WITH RELATED COMPANIES AND PERSONS

As far as business transactions with related companies and persons are concerned, reference should be made to the annex of this report.

OUTLOOK

Subject to economic stability and positive business development on the part of all major customers, the POLYTEC GROUP management continues to anticipate consolidated sales growth in the 2016 financial year and a significant improvement in results.

SHARE AND INVESTOR RELATIONS

POLYTEC SHARE PRICE DEVELOPMENT

Source: Wiener Börse AG, price data indexed as of 4 January 2016

KEY SHARE FIGURES

	Unit	Q1-Q3 2016	Change	Q1-Q3 2015	Q1-Q3 2014
Closing price last trading day of period	EUR	7.99	17.4%	6.81	6.38
Closing price high during period	EUR	8.19	-3.1%	8.45	8.54
Closing price low during period	EUR	6.65	7.3%	6.20	6.30
Market capitalization last day of period	EUR m	178.4	17.4%	152.0	142.5
Earing per share	EUR	1.00	25.0%	0.80	0.43

	Unit	Q1-Q3 2016	Share	Q1-Q3 2015	Q1-Q3 2014
Number of shares issued	Piece	22,329,585	100.0%	22,329,585	22,329,585
Number of shares outstanding	Piece	21,995,544	98.5%	21,995,544	22,019,044
Treasury shares	Piece	334,041	1.5%	334,041	310,541

The POLYTEC share (ISIN: AT0000A00XX9) started the 2016 stock exchange and fi scal year with a price of EUR 7.53 and on 30 September 2016, closed at EUR 7.99. In absolute terms, the difference to the closing price on 4 January 2016 of EUR 0.46 corresponded with an increase of around 6.1%. On the last trading day of the third quarter of 2016, market capitalization amounted to EUR 178.4 million. As compared to 30 September 2015, the price was 17.4%, or EUR 1.18, higher and capitalization was up by EUR 26.4 million.

From the middle of February, the price of the POLYTEC share rose steadily and on 20 April reached its high for the period at EUR 8.19 (closing price). From this point onwards, the share price was subject to strong pressure and on 17 June 2016 hit its half-year low of EUR 6.65 (closing price). This day witnessed the second highest trading volume (322,536 shares with double counting) in the entire period. During the last trading days prior to 30 June, the POLYTEC share rose by 10.4% (EUR 0.69) and also made up for a brief "BREXIT" dip.

From the start of the third quarter until the beginning of August 2016, the POLYTEC share demonstrated a continual performance improvement and on 9 August 2016 stood at EUR 8.14, the third highest closing price during the entire nine-month reporting period. Subsequently, the price moved laterally along the EUR 8 line until the end of September and beyond, until the editorial closing date for this report at the end of October 2016.

From the beginning of January until the end of September 2016, the STOXX® Europe 600 Automobile & Parts Index lost 11.6% of its value and at the end of September closed on 478. On 6 July, about 2 weeks after the "BREXIT" referendum, the index reached its period low of 407. The ATX-Prime-Index rose 1.6% since 4 January and closed on 30 September 2016 on 1,222.06.

In the fi rst nine months of 2016, a monetary turnover of approximately EUR 43.1 million and a share turnover of 5.8 million shares were achieved on the Vienna Stock Exchange with POLYTEC shares. On average, during 188 trading days 30,983 POLYTEC shares were traded daily. Last year, this fi gure amounted to 48,748, respectively with double counting. The busiest trading day was 23 March 2016, when 361,790 POLYTEC shares were traded (double counting).

DIVIDEND POLICY

POLYTEC's dividend policy is based on profitability, strategic growth perspectives and the capital requirements of the Group. At the 16th Annual General Meeting of shareholders on 19 May 2016, a dividend of EUR 6.6 million (2015: EUR 5.5 million) was agreed unanimously and paid out on 27 May 2016. This corresponds with a dividend of EUR 0.30 per share (2015: EUR 0.25).

SHAREHOLDER STRUCTURE

As at the reporting date of 30 September 2016, POLYTEC HOLDING AG share capital remained unchanged at EUR 22.3 million and was divided into 22,329,585 bearer shares. During the first nine months of 2016, the Board of Directors did not purchase or sell any treasury shares. As at 30 September 2016, POLYTEC HOLDING AG held 334,041 treasury shares, a figure that corresponds with approximately 1.5% of share capital.

In mid-July 2016, the shareholder Delta Lloyd NV, which is based in Amsterdam in the Netherlands informed POLYTEC HOLDING AG of a fall below a shareholding disclosure threshold on 15 July 2016. Accordingly, as at 15 July 2016, two funds administered by Delta Lloyd Asset Management held a total of 9.98%, or 2,228,808 POLYTEC HOLDING AG shares. 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. Therefore, on the editorial closing date of this report at the end of October 2016, on the basis of the shares issued, the POLYTEC HOLDING AG shareholder structure was as follows:

INVESTOR CONTACTS

In order to secure a comprehensive, timely and transparent presentation of POLYTEC GROUP information of relevance to the capital markets, the Board of Directors and the Investor Relations Department remain in constant contact with stockholders.

From January to end of October 2016, together with investment banks and the Vienna Stock Exchange, POLYTEC organised road shows, or upon invitation participated in investor conferences with the aim of reporting upon the current business figures

and development of the company. In addition, a regular dialogue was continued with institutional and private investors and analysts by means of frequent telephone conferences.

RESEARCH COVERAGE

The coverage of the POLYTEC GROUP by national and international investment banks is an important element in its comprehensive investor relations activities and plays a significant role in the visibility of the POLYTEC share within the investor community. The financial institutions listed below publish reports on POLYTEC HOLDING AG. On the editorial closing date for this report at the end of October 2016, the recommendations and price targets presented the following picture:

Institute	Recommendation	Latest price target
BAADER Helvea Equity Research	HOLD	EUR 8,00
ERSTE Group Research	BUY	EUR 9,60
M.M. Warburg Research	BUY	EUR 10,00
Raiffeisen CENTROBANK Research	BUY	EUR 10,50

DETAILS REGARDING THE POLYTEC SHARE

ISIN	AT0000A00XX9
Total number of shares issued	22,329,585
Listing on the Vienna Stock Exchange	Prime Market
Indices	ATX Prime, ATX CPS, WBI
Share also traded in	Berlin, Frankfurt, London, Munich, Stuttgart/ Tradegate
Ticker symbols	Vienna Stock Exchange: PYT.AV, Reuters: POLV.VI, WKN: A0JL31

CORPORATE CALENDAR 2017

This is the corporate calendar of POLYTEC HOLDING AG for the 2017 financial year:

Date	Day	Event
6. April 2017	Thu	Financial statements and annual report 2016
8. May 2017	Mon	Interim report Q1 2017
12. May 2017	Fri	Record date "Annual General Meeting"
22. May 2017	Mon	17th Annual General Meeting, Hörsching, 10:00 a.m.
29. May 2017	Mon	Ex-dividend date
30. May 2017	Tue	Record date "Dividends"
31. May 2017	Wed	Dividend payment date
10. August 2017	Thu	Half year financial report 2017
7. November 2017	Tue	Interim report Q3 2017

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 2016 and the period from 1 July to 30 September 2016 compared to the figures from the previous period

In EUR k	Q1-Q3 01.01. - 30.09.		Q3 01.07. - 30.09.
	2016	2015	2016	2015
Net sales	481,925	465,502	155,646	154,162
Other operating income	3,240	3,392	1,206	1,136
Changes in inventory of finished and unfinished goods	392	3,489	413	937
Own work capitalised	1,543	1,322	646	415
Expenses for materials and services received	-227,744	-226,479	-73,131	-76,351
Personnel expenses	-146,389	-146,366	-44,555	-45,916
Other operating expenses	-60,045	-56,807	-20,217	-19,870
Result from companies reported at-equity	142	0	37	0
Earnings before interest, taxes and depreciation (EBITDA)	53,064	44,055	20,046	14,512
Depreciation	-19,282	-17,357	-6,556	-6,005
Earnings before interest and taxes = operating result (EBIT)	33,782	26,698	13,491	8,507
Interest result	-3,014	-2,901	-1,052	-990
Other financial income	40	77	9	0
Other financial expenses	-500	-232	78	-232
Financial result	-3,474	-3,056	-965	-1,222
Earnings before tax	30,308	23,642	12,525	7,285
Taxes on income	-7,855	-5,636	-3,063	-1,339
Earnings after taxes	22,453	18,006	9,462	5,947
thereof result of non-controlling interests	-518	-428	-141	-130
thereof result of the parent company	21,935	17,578	9,322	5,817
Earnings per share in EUR	1.00	0.80	0.42	0.26

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

01.01. - 30.09.2016 In EUR k	Group	Non controlling interests	Total
Profit after tax	21,935	518	22,453
Currency translation	-2,521	0	-2,521
Total comprehensive income	19,414	518	19,932
01.01. - 30.09.2015 In EUR k	Group	Non controlling interests	Total
Profit after tax	17,578	428	18,006
Currency translation	-892	0	-892
Total comprehensive income	16,686	428	17,114

CONSOLIDATED BALANCE SHEET AS OF 30.09.2016

Compared to the figures from the balance sheet date of 31 December 2015

	ASSETS (In EUR k)	30.09.2016	31.12.2015
	A. Non-current assets:
I.	Intangible assets	1,960	1,796
II.	Goodwill	19,180	19,180
III.	Tangible assets	221,469	217,054
IV.	Shares in companies reported at-equity	1,078	936
V.	Other non-current assets	126	113
VI.	Other long-term receivables	608	924
VII.	Non-current, interest-bearing receivables	223	209
VIII.	Deferred tax assets	13,668	14,564
		258,312	254,777

	B. Current assets:
I.	Inventories	58,617	58,429
II.	Trade accounts receivable	64,125	52,202
III.	Receivables from construction contracts	31,179	34,623
IV.	Other current receivables	12,238	14,232
V.	Income tax receivables	524	185
VI.	Current interest-bearing receivables	4,178	13,009
VII.	Cash and cash equivalents	55,219	57,683
		226,080	230,362
		484,392	485,139

	EQUITY AND LIABILITIES (In EUR k)	30.09.2016	31.12.2015
	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	119,553	104,217
V.	Other reserves	-7,866	-5,346
		169,725	156,910
VI.	Non-controlling interests	6,083	6,015
		175,808	162,925

	B. Long-term liabilities:
I.	Long-term interest-bearing liabilities	132,283	141,698
II.	Provision for deferred taxes	2,243	919
III.	Long-term provisions for personnel	26,922	26,115
IV.	Other long-term liabilities	12,888	15,998
		174,336	184,730

	C. Short-term liabilities:
I.	Short-term interest-bearing liabilities	24,080	28,346
II.	Liabilities on income taxes	4,589	3,262
III.	Trade accounts payable	41,022	50,197
IV.	Liabilities from construction contracts	2,420	1,867
V.	Other short-term liabilities	23,827	25,171
VI.	Short-term provisions	38,310	28,642
		134,248	137,484
		484,392	485,139

CONSOLIDATED CASH FLOW STATEMENT

for the period from 1 January to 30 September 2016 compared to the figures from the previous period

		01.01. - 30.09.
	In EUR k	2016	2015
	Pre-tax profit	30,308	23,642
-	Income taxes	-2,962	-2,585
+(-)	Depreciation (appreciation) of fixed assets	19,185	17,357
-	Non-cash earnings from first time consolidation	0	-351
-(+)	Result from companies reported equity	-142	0
+(-)	Other non-cash expenses and earnings	-58	0
+(-)	Increase (decrease) in long-term provisions for personnel	806	645
-(+)	Profit (loss) from asset disposals	-320	86
=	Consolidated cash flow from earnings	46,817	38,794
-(+)	Increase (decrease) in inventories, advance payments made	-668	-6,680
-(+)	Increase (decrease) in trade and other receivables	-8,415	-2,693
+(-)	Increase (decrease) in trade and other payables	-7,720	-6,567
+(-)	Increase (decrease) in provisions	6,600	3,966
=	Consolidated cash flow from operating activities	36,613	26,820
-	Investments in fixed assets	-28,420	-57,075
-	Acquisition of a subsidiary, less acquired cash and cash equivalents	0	-3,438
-	Investments in financial assets	-13	0
+	Revenues from disposal of financial investments	0	583
+	Payments from the disposal of intangible and tangible assets	1,461	816
-(+)	Increase (decrease) interest bearing receivables and other long-term receivables	8,935	241
+(-)	Other changes	0	-23
=	Consolidated cash flow from investing activities	-18,038	-58,896
+	Inflows from loan financing	301	7,000
-	Repayments of loan financing	-4,665	-2,314
-	Repayments of real estate loans	-4,081	-30,656
-	Outflows from financial leasing agreements	-6,174	-1,876
+(-)	Changes in current financial liabilities	761	-750
-	Dividend payments	-7,047	-5,499
+(-)	Other changes in equity	0	-922
=	Consolidated cash flow from financing activities	-20,904	-35,017
+(-)	Consolidated cash flow from operating activities	36,613	26,820
+(-)	Consolidated cash flow from investing activities	-18,038	-58,896
+(-)	Consolidated cash flow from financing activities	-20,904	-35,017
=	Changes in cash and cash equivalents	-2,329	-67,093
+(-)	Effect from currency translations	-136	30
+	Opening balance of cash and cash equivalents	57,683	111,951
=	Closing balance of cash and cash equivalents	55,219	44,888

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

In EUR k	Share capital	Capital reserves	Treasury stock	Retained earnings	Other income	Equity attributable to Shareholders of the parent	Non controlling interests	Total
Balance as of January 1, 2016	22,330	37,563	-1,855	104,217	-5,345	156,910	6,015	162,925
Earnings after tax according to income statement	0	0	0	21,935	0	21,935	518	22,453
Comprehensive income	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 Sept. 30, 2016	22,330	37,563	-1,855	119,553	-7,866	169,725	6,083	175,808

In EUR k	Share capital	Capital reserves	Treasury stock	Retained earnings	Other income	Equity attributable to Shareholders of the parent	Non controlling interests	Total
Balance as of January 1, 2015	22,330	37,563	-1,855	85,998	-5,262	138,774	5,520	144,294
Earnings after tax according to income statement	0	0	0	17,578	0	17,578	428	18,006
Comprehensive income	0	0	0	0	-892	-892	0	-892
Dividend payments	0	0	0	-5,499	0	-5,499	0	-5,499
Balance as of Sept. 30, 2015	22,330	37,563	-1,855	98,077	-6,154	149,961	5,949	155,909

SEGMENT REPORTING

01.01. - 30.09.	Plastics processing		Others		Transition		Group
In EUR k		Q1-Q3 2016 Q1-Q3 20151)		Q1-Q3 2016 Q1-Q3 20151)		Q1-Q3 2016 Q1-Q3 20151)		Q1-Q3 2016 Q1-Q3 20151)
External sales	475,304	458,355	6,621	7,147	0	0	481,925	465,502
Intra group sales	118	177	15,966	15,507	-16,084	-15,684	0	0
Total sales	475,422	458,532	22,587	22,654	-16,084	-15,684	481,925	465,502
Depreciation	-17,408	-15,500	-1,987	-1,970	113	113	-19,282	-17,357
thereof extraordinary	0	0	0	0	0	0	0	0
EBIT	26,767	21,097	6,895	6,930	121	166	33,782	28,193

01.07. - 30.09.	Plastics processing		Others			Transition	Group
In EUR k	Q3 2016	Q3 20151)	Q3 2016	Q3 20151)	Q3 2016	Q3 20151)	Q3 2016	Q3 20151)
External sales	153,382	152,001	2,264	2,161	0	0	155,646	154,162
Intra group sales	-1,308	43	5,196	5,203	-3,888	-5,246	0	0
Total sales	152,074	152,044	7,460	7,364	-3,888	-5,246	155,646	154,162
Depreciation	-5,929	-5,372	-665	-671	38	38	-6,556	-6,005
thereof extraordinary	0	0	0	0	0	0	0	0
EBIT	10,740	7,479	2,708	2,420	44	104	13,491	10,003

1) Previous year presented in comparable figures – see accounting and valuation methods in the annex.

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 2016 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 2015 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 2015 of POLYTEC HOLDING AG. Please refer to the consolidated financial statements for more information.

In the segment reporting, the figures for the third quarter of 2015 are presented in comparative figures. During this comparative period, real estate assets were allocated largely to the plastics processing segment, but are now reported under "Others". Above all, this is due to the fact that real estate is administered and controlled at group level. As a consequence, as opposed to the original presentation of the third quarter 2015, sales in the others segment are EUR 6.3 million higher. Conversely, sales in the plastics processing segment are EUR 0.06 million lower, and in line with the transition column have been reduced by EUR 6.3 million. EUR 1.5 million has been deducted from the figure for depreciation in the plastics processing segment and EUR 3.2 million from EBIT. The reverse effects are shown correspondingly in the others segment.

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. The

Scope of consolidation	Equity consolidation	Full consolidation
As of December 31, 2015	1	41
AKQUISITIONEN IM 1. HALBJAHR 2015 Access due to purchase of real estate	0	1
As of September 30, 2016	1	42
POLYTEC IMMOBILIEN-GRUPPE Therefore of foreign companies	1	31

scope of consolidation changed from 1 January 2016 to 30 September 2016 as follows:

ACQUISITIONS 2016

RATIPUR KFT. (NOW POLYTEC KOMLO KFT.)

On 12 October 2016, POLYTEC HOLDING AG acquired the entire stock of Ratipur Kft., Komlo, Hungary. Prior to this transaction, within the framework of a long-term partnership, POLYTEC HOLDING AG already possessed a 24 per cent holding in Ratipur Kft., while the bulk of the remaining 76 per cent was held by the two Ratipur Kft. CEOs via Ratipur Holding Kft. The POLYTEC GROUP has now purchased all Ratipur Holding Kft. stock (now POLYTEC Hungary Kft.).

This corporate acquisition is in line with POLYTEC strategy of consolidating the position in the European market and developing new technologies and applications. First and foremost, the company will increase the depth of group value added. Ratipur's technological competence with regard to polyurethane foam is and will be employed mainly for acoustic solutions in the engine bay and the production of top quality products in the vehicle individualization area. Furthermore, owing to the company's location in southern Hungary, POLYTEC will be able to use the competitive advantages derived from the best-cost-country approach.

Ratipur Kft. (now POLYTEC Komlo Kft.) is not only positioned excellently from a cost perspective, but also disposes over capacity and expansion potential that will enable the POLYTEC GROUP to maintain its growth course. Nonetheless, the full promise of the company can only be brought to fruition through its full integration into the POLYTEC GROUP and this has been facilitated by the complete share purchase.

The acquired company has a workforce of around 200 and in the 2016 financial year is expected to achieve sales revenues of around EUR 7.5 million and EBIT of some EUR 0.8 million. From a POLYTEC GROUP viewpoint roughly 30 per cent of the topline figure relate to internal sales. The purchase price breakdown according to IFRS is currently being prepared and is not yet available.

FORTREAL K.S. AND SPELAG S.R.O. (NOW POLYTEC ESTATES BOHEMIA K.S. AND SPELAG S.R.O.)

On 31 March 2016, the industrial property in Chodová Planá, Czech Republic, was taken over through the purchase of the entire stock of Fortreal k.s., Mariánskolázénská, Czech Republic, as a limited partnership, and the acquisition of the entire stock of SPELAG s.r.o., Mariánskolázénská, Czech Republic, as a general partner. These companies do not form a business combination pursuant to IFRS 3. The property was already included in the consolidated financial statements as at 31 December 2015 as financial leasing. Because of immateriality, the complementary company was not included in the scope of consolidation.

ACQUISITIONS 2015

Until 30 September 2016, there were no changes in the valuations related to acquisitions in 2015. For further information, reference should be made to the annual

report for 2015.

EQUITY

At the 16th Annual General Meeting of shareholders on 19 May 2016, a dividend of EUR 6.6 million (2015: EUR 5.5 million) was agreed unanimously and paid out on 27 May 2016. This corresponds with a dividend of EUR 0.30 per share (2015: EUR 0.25).

FINANCIAL INSTRUMENTS

FINANCIAL ASSETS

In EUR k	Carrying amount in the balance sheet 30.09.2016	Amortised costs	Market value recognised through equity	Market value recognised through profit or loss	Current value 30.09.2016	Fair Value Hierarchy
Loans and receivables
Trade accounts receivable	64,125	64,125	0	0	64,125	Level 3
Receivables on construction contracts	31,179	31,179	0	0	31,179	Level 3
Other receivables (excluding deferrals)	12,257	12,257	0	0	12,257	Level 3
Interest-bearing receivables	4,401	4,401	0	0	4,401	Level 3
Cash and cash equivalents	55,219	55,219	0	0	55,219	Level 3
Total	167,181	167,181	0	0	167,181

In EUR k	Carrying amount in the balance sheet 31.12.2015	Amortised costs	Market value recognised through equity	Market value recognised through profit or loss	Current value 31.12.2015	Fair Value Hierarchy
Loans and receivables
Trade accounts receivable	52,202	52,202	0	0	52,202	Level 3
Receivables on construction contracts	34,623	34,623	0	0	34,623	Level 3
Other receivables (excluding deferrals)	14,456	14,456	0	0	14,456	Level 3
Interest-bearing receivables	13,217	13,217	0	0	13,217	Level 3
Cash and cash equivalents	57,683	57,683	0	0	57,683	Level 3
Total	172,181	172,181	0	0	172,181

FINANCIAL LIABILITIES

In EUR k	Carrying amount in the balance sheet 30.09.2016	Amortised costs	Market value recognised through equity	Market value recognised through profit or loss	Current value 30.09.2016	Fair Value Hierarchy
Financial instruments measured at amortised costs
Non-current interest-bearing liabilities	130,213	130,213	0	0	131,005	Level 3
Current interest-bearing financial liabilities	22,483	22,483	0	0	23,997	Level 3
Trade accounts payable (without advance payments received)	41,018	41,018	0	0	41,018	Level 3
Other current liabilities	10,408	10,408	0	0	10,408	Level 3
	204,122	204,122	0	0	206,428
Financial instruments measured at fair value
Currency futures	0	0	0	0	0	Level 2
Interest derivatives	800	0	0	800	800	Level 2
	800	0	0	800	800
Not assignable in accordance with IAS 39 (financial leasing)

IAS 39 (financial leasing)
Non-current interest-bearing liabilities	2,071
Current interest-bearing liabilities	1,597
	3,668
Total	208,590	204,122	0	800	207,228

In EUR k	Carrying amount in the balance sheet 31.12.2015	Amortised costs	Market value recognised through equity	Market value recognised through profit or loss	Current value 31.12.2015	Fair Value Hierarchy
Financial instruments measured at amortised costs
Non-current interest-bearing liabilities	138,449	138,449	0	0	139,143	Level 3
Current interest-bearing financial liabilities	22,471	22,471	0	0	24,070	Level 3
Trade accounts payable (without advance payments received)	50,150	50,150	0	0	50,150	Level 3
Other current liabilities	12,990	12,990	0	0	12,990	Level 3
	224,060	224,060	0	0	226,353

Financial instruments measured at fair value
Currency futures	1	0	0	1	1	Level 2
Interest derivatives	327	0	0	327	327	Level 2
	328	0	0	328	328

Not assignable in accordance with IAS 39 (financial leasing)
Non-current interest-bearing liabilities	3,249
Current interest-bearing liabilities	5,875
	9,124
Total	233,512	224,060	0	328	226,681

The fair values contained in the table above correspond with the current values at the end of the period under report. These were determined by banks using recognised financial mathematical models and where necessary statistical valuation models, as well as current market parameters on the balance sheet date. Interest swaps are offset on a quarterly basis. The variable interest rate of the interest swaps is based on 6-month Euribor. The difference between fixed and variable interest is offset in net terms.

MATERIAL TRANSACTIONS WITH RELATED COMPANIES AND PERSONS

On 8 July 2016, POLYTEC Immobilien GmbH purchased a plot of land located directly adjacent to group headquarters and the Hörsching plant from FH Immobilien GmbH, a company owned by Friedrich Huemer (CEO), at a standard market price of EUR 2.7 million. The property shall be available for future expansion of the POLYTEC GROUP works without any limitations.

Besides this, there were no other material changes regarding business transactions with related companies and persons as compared to 31 December 2015 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 2015.

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 development projects.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

No significant events have occurred after 30 September 2016.

The Financial Statements and Annual Report for 2016 to be published 6 April 2017. 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. Thisinterim report is published in German and English. In cases of doubt, the German version shall take precedence. This interim report was published on 3 November 2016.

Imprint:

Editor: POLYTEC HOLDING AG; VAT identification number: ATU49796207; 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