Polytec Holding AG

Interim / Quarterly Report • Aug 5, 2015

HALF YEAR FINANCIAL REPORT 2015

SALES AND RESULTS INCREASED SIGNIFICANTLY COMPARED TO PREVIOUS HALF YEAR

"Technical know-how and the creative potential of our workforce forms the ignition key for shared success with our customers."

FRIEDRICH HUEMER, CEO

KEY FIGURES HALF YEAR 2015

Key figures by half year	Unit	H1 2015	H1 2014	Change
Sales	EUR mill.	311.3	238.5	30.6%
EBITDA	EUR mill.	29.5	16.7	76.7%
EBITDA margin	%	9.5	7.0
EBIT	EUR mill.	18.2	9.0	101.4%
EBIT margin	%	5.8	3.8
Earnings after tax	EUR mill.	12.1	6.9	74.6%
Earnings per share	EUR	0.53	0.30	76.7%
Capital expenditures	EUR mill.	107.7	11.7	N/A
Equity ratio	%	32.4	50.5
Net working capital	EUR mill.	62.1	53.3	16.5%
Average capital employed	EUR mill.	217.1	139.8	55.3%
Net financial debt (+)/-assets (-)	EUR mill.	110.2	-5.2	N/A
Employees - end of period	FTE	4,266	3,520	21.2%

Key figures quarterly	Unit	Q3 2014	Q4 2014	Q1 2015	Q2 2015
Sales	EUR mill.	118.1	134.7	155.8	155.6
EBITDA	EUR mill.	8.4	11.4	14.2	15.3
EBITDA margin	%	7.1	8.5	9.1	9.8
EBIT	EUR mill.	4.5	7.1	8.8	9.4
EBIT margin	%	3.8	5.3	5.6	6.1
Earnings after tax	EUR mill.	3.0	4.2	5.9	6.2
Earnings per share	EUR	0.14	0.19	0.26	0.28
Capital expenditures	EUR mill.	6.7	13.6	100.5	7.1
Equity ratio	%	36.0	34.0	32.1	32.4
Net working capital	EUR mill.	55.1	56.2	61.0	62.1
Capital empolyed	EUR mill.	148.0	164.7	266.2	269.5
Net financial debt (+)/-assets (-)	EUR mill.	-4.7	11.8	105.9	110.2
Employees - end of period	FTE	3,569	4,162	4,287	4,266

GROUP SALES BY CUSTOMERS

Group sales split showing the largest customers in half year 2015

SALES & EBIT MARGIN

Comparision of the group sales and EBIT margin in the previous four quarters with Q2 2015

HALF YEAR FINANCIAL REPORT 2015

KEY FIGURES	03
HALF YEAR GROUP MANAGEMENT REPORT	06
AUTOMOTIVE INDUSTRY DEVELOPMENTS	07
GROUP RESULTS	07
CROSS SEGMENT DATA	08
EMPLOYEES	09
CAPITAL EXPENDITURES AND KEY FINANCIAL FIGURES	09
OUTLOOK	10
SHARE AND INVESTOR RELATIONS	11
KEY SHARE FIGURES	12
SHAREHOLDER STRUCTURE	13
RESEARCH COVERAGE	13
INTERIM CONSOLIDATED FINANCIAL STATEMENT ACCORDING TO IAS 34	15
CONSOLIDATED INCOME STATEMENT	16
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	16
CONSOLIDATED BALANCE SHEET	17
CONSOLIDATED CASH FLOW STATEMENT	18
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	18
SEGMENT REPORTING	19
SELECTED DISCLOSURES	19
STATEMENT OF ALL LEGAL REPRESENTATIVES	23

HALF YEAR GROUP MANAGEMENT REPORT

AUTOMOTIVE INDUSTRY DEVELOPMENTS

During the first half of 2015, expansion in the car segment continued to be driven by the three major markets in Western Europe, the USA and China. Western Europe showed strong growth of around 8%, while the USA achieved a gain of 4% and China approximately 7%. The situation in Russia (-36%) and Brazil (-20%) remained problematic.

New car registrations in the EU during the first six months of 2015 rose by 8.2% to over 7.17 million units (H1 2014: approx. 6.63 million). Growth was registered in all the main EU markets with increases in demand in Spain of 22.0%, in Italy of 15.2%, the UK of 7.0%, France 6.1% and in Germany of 5.2%. In June 2015, the car market in the EU showed a strong upturn with 1.36 million new registrations, which as compared to June 2014 corresponded with a rise of 14.6%. Sales were thus higher for the twenty-second month in succession and the surge in June 2015 was the biggest since December 2009.

In the USA, light vehicle registrations (cars and light trucks) in the first six months of 2015 were up by 4.4% at 8.49 million units and therefore in absolute terms remained in front of Europe.

However, with 9.47 million vehicles, in terms of absolute figures China continued to top the new registrations statistic. Nonetheless, recently growth has slowed tangibly, as confirmed by the fact that in June, with 1.42 million units, new vehicle sales failed to equal the value for the preceding year for the first time (-1.8%).

New registrations of commercial vehicles in the EU rose by 12.9% in the first half of 2015 to more than 1,030,000 units (H1 2014: over 912,000). Growth was evident in all the major EU markets: Spain 36.8%, United Kingdom 21.8%, Italy 8.6% and Germany 4.6%. Even France, which in the first quarter was subject to a slight decline, gained 1.6%. In the first six months of the year new registrations in all weight classes demonstrated double-digit growth, whereby with 20.3%, heavy trucks in the class of over 16t showed the strongest expansion.

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

GROUP RESULTS

In EUR mill.	Q2 2015	Q2 2014	Change	H1 2015	H1 2014	Change
Sales	155.6	120.6	29.1%	311.3	238.5	30.6%
EBITDA	15.3	8.5	80.1%	29.5	16.7	76.7%
EBIT	9.4	4.7	99.7%	18.2	9.0	101.4%
Earnings after tax	6.2	3.8	65.1%	12.1	6.9	74.6%

EBITDA margin	9.8%	7.1%		9.5%	7.0%
EBIT margin	6.1%	3.9%		5.8%	3.8%
Earnings per share (in EUR)	0.28	0.16	75.0%	0.53	0.30	76.7%

Sales and all substantial earnings figures increased significantly compared to the first half year of the previous year. Group sales of POLYTEC GROUP increased by 30.6% to EUR 311.3 million in the first half year of 2015. This includes the earnings contribution of approx. EUR 57.7 million by the two Dutch plants in Roosendaal and Putte acquired at the end of November 2014. Excluding this acquisitive effect would result in an organic sales growth of EUR 15.1 million or 6.3%. This was driven in particular by the sharp rise in sales of passenger cars in small series sector.

Group EBIT more than doubled in the first six months of 2015 to EUR 18.2 million. In addition to the earnings contribution by the sites in the Netherlands, the improved profitability of individual business divisions contributed to the increase in operating profits. In addition, the acquisition of the property portfolio of approximately EUR 3 million, previously held by Huemer Holding GmbH, had a positive impact on operating profits.

The EBIT margin amounted to 5.8% in the first half year of 2015 (H1 2014: 3.8%). The EBIT margin in the second quarter amounted to 6.1% and was thus 0.5 percentage points above the figure for the first quarter of 2015 (5.6%). Both the material and personnel cost ratio improved compared to the values from the previous year. The financial result amounted to EUR -1.8 million (H1 2014: EUR -0.5 million). The change is primarily due to the interest expense from the promissory notes issued at end of September 2014. The tax rate of the POLYTEC GROUP for the first half year of 2015 amounted to 26.3%. For the whole of 2014, the tax rate of the Group amounted to 24.9%. The Group generated a net profit of EUR 12.1 million. (H1 2014: EUR 6.9 million). The earnings per share amounted to EUR 0.53 (H1 2014: EUR 0.30).

CROSS SEGMENT DATA

SALES BY MARKET SEGMENT

In EUR mill.	Q2 2015	Share	Q2 2014	H1 2015	Share	H1 2014
Passenger cars	105.8	68.0%	80.0	212.9	68.4%	156.5
Commerical vehicles	37.5	24.1%	29.9	71.6	23.0%	59.0
Non-automotive	12.3	7.9%	10.7	26.8	8.6%	23.0
POLYTEC GROUP	155.6	100.0%	120.6	311.3	100.0%	238.5

In the POLYTEC GROUP market segment with the highest sales, i.e. passenger cars, sales rose by 36.0% to EUR 212.9 million compared to the same period in the previous year. This significant increase was primarily due to the two newly acquired Dutch plants. Growth in customer Daimler Car, Jaguar/ Land Rover and Volvo Car exhibited the greatest positive change. Even the passenger car customer with the largest share of Group sales, VW Car, developed very positively in the first half year of 2015.

As compared to the same period of the preceding year, sales revenues in the commercial vehicles segment in the first half of 2015 rose by 21.4% to EUR 71.6 million. This was due to the acquisition of the two plants in the Netherlands.

In the non-automotive segment, sales revenues were up 16.5% on the comparable figure for 2014 at EUR 26.8 million. The sales of customer IFCO transport boxes in the second quarter of 2015 were raised further. On the basis of considerable investments in both the machine pool and peripherals, an additional sizeable increase in order volume is planned through the successful conclusion of an agreement with IFCO.

SALES BY CATEGORY

In EUR mill.	Q2 2015	Share	Q2 2014	H1 2015	Share	H1 2014
Part sales and other sales	142.2	91.4%	104.3	282.9	90.9%	208.9
Tooling and engineering sales	13.4	8.6%	16.3	28.4	9.1%	29.6
POLYTEC GROUP	155.6	100.0%	120.6	311.3	100.0%	238.5

The fall in tooling and engineering sales sales in the second quarter emanated from weaker order intake in the injection moulding unit as compared to the previous year. The reasons relate to the general, cyclical fluctuations in order allocations by major customers. An increase in order intake is anticipated in the second half year.

SALES BY REGION

In EUR mill.	Q2 2015	Share	Q2 2014	H1 2015	Share	H1 2014
Austria	4.3	2.8%	3.8	9.8	3.1%	7.0
Germany	82.8	53.2%	74.6	166.3	53.4%	145.0
Other EU countries	59.9	38.5%	34.8	116.9	37.6%	71.4
Other countries	8.6	5.5%	7.4	18.3	5.9%	15.1
POLYTEC GROUP	155.6	100.0%	120.6	311.3	100.0%	238.5

EMPLOYEES

Full-time equivalents of employees		End of period		Average Period
(FTE)	30.06.2015	30.06.2014	Change	H1 2015	H1 2014	Change
Austria	595	549	46	576	540	36
Germany	2,346	2,307	39	2,340	2,273	67
Other EU countries	1,160	507	653	1,169	514	655
Other countries	165	157	8	164	162	2
POLYTEC GROUP	4,266	3,520	746	4,249	3,489	760

The number of Group employees (incl. leased staff) increased by 746 employees at the end of the first half year of 2015 compared to previous year. The integration of the two Dutch plants at the beginning of December 2014 increased the number of Group employees by approx. 610 persons. Furthermore, the number of employees increased through the acquisition of WIN Coatings GmbH (now: POLYTEC INDUSTRIELACKIERUNG Weiden GmbH) in February 2015 by an additional 56 persons. The staff ratio decreased by 0.6 percentage points to 32.0% compared to the previous year.

CAPITAL EXPENDITURES AND KEY FINANCIAL FIGURES

CAPITAL EXPENDITURES

In EUR mill.	Q2 2015	Q2 2014	Change	H1 2015	H1 2014	Change
Capital expenditures	7.1	6.9	2.9%	107.7	11.7	N/A

The additions to fixed assets amounted to EUR 107.7 million, thereof EUR 87.3 million are a result of the acquisition of the property portfolio previously held by Huemer Holding GmbH. The acquisition of WIN Coatings GmbH and the increased investments in production plants, compared to the previous year, contributed to the significant increase in additions to fixed assets.

In the first half year 2015, capital expenditures amounted to EUR 43.6 million. The difference between capital expenditures and additions to fixed assets amounted to EUR 64.1 million and is due to partly non-cash purchase price. Thereof EUR 57.5 million amounted of the purchase price of the acquisition of the property portfolio. Detailed explanations of the impact of the acquisitions in the first half year of 2015 are given in the notes.

FINANCIAL FIGURES

	Unit	30.06.2015	31.12.2014
Equity	EUR mill.	150.8	144.3
Equity ratio	%	32.4	34.0
Net working capital	EUR mill.	62.1	56.2
Net working capital to sales	%	11.0	11.4

Net debt (+) /- cash (-)	EUR mill.	110.2	11.8
Net debt (+) /- cash (-) to EBITDA	%	2.23	0.32
Gearing	%	0.73	0.08
Average capital employed	EUR mill.	217.1	150.3

The financial figures are presented with comparative figures of the last balance sheet date of 31 December 2014 as follows:

The Group's balance-sheet total increased at the end of the first half year of 2015 by EUR 40.8 million to EUR 464.8 million. This was mainly due to the increase in fixed assets by around EUR 96.0 million. Most of this (EUR 87.3 million) is attributable to the acquisition of the real estate portfolio previously held by Huemer Holding GmbH. This is offset by a decrease in liquid funds by EUR 64.3 million which were used primarily to pay the purchase prices for the real estate portfolio and for WIN Coatings GmbH, for refinancing as well as dividend payments.

In spite of the payment of a dividend in the second quarter, as at 30 June 2015, the equity ratio was 0.3 percentage points higher than the figure at the end of the first quarter of 2015 and amounted to 32.4%. The equity ratio decreased at the end of the first half year of 2015 by 1,6 percentage points against the balance sheet date of 31 December 2014. This was primarily due to the initial consolidation of POLYTEC real estate group.

Net debts rose compared with the balance sheet date of 31 December 2014 by EUR 98.4 million to EUR 110.2 million. The main driver was the financing of the purchase of real estate portfolios. In addition, the acquisition of WIN Coatings GmbH as well as ongoing investments in fixed assets of the POLYTEC GROUP contributed to the significant increase in net debts.

Net working capital increased by EUR 5.9 million to EUR 62.1 million at the end of the first half year of 2015 compared to 31 December 2014 due to the increase in business volume.

RISK REPORTING

In the first half year of 2015 no significant changes of the group's risk status to be reported. For information regarding the group's risk reporting, please refer to section E.4 of the notes of the consolidated financial statements 2014.

OUTLOOK

Assuming a stable business cycle, the management of the POLYTEC GROUP forecasts consolidated sales of more than EUR 600 million for the complete fiscal year 2015. As the substantial sales growth underlying these expectations is backed by the full-year consolidation of the acquired two Dutch plants and the noticeable organic growth based on the launch of series production for new products. The earnings figures should improve significantly. EBIT of noticeably more than EUR 30 million to be expected.

SHARE AND INVESTOR RELATIONS

POLYTEC SHARE PRICE DEVELOPMENT 110%

	Unit	H1 2015	Change	H1 2014	H1 2013
Closing price last trading day of period	EUR	7.88	-1.7%	8.02	6.02
Share price high during period	EUR	8.45	-1.1%	8.54	7.25
Share price low during period	EUR	6.20	-8.8%	6.80	5.94
Market capitalization last day of period	EUR mill.	176.0	-1.7%	179.1	134.4
Earnings per share	EUR	0.53	76.7%	0.30	0.33

KEY SHARE FIGURES

	Unit	H1 2015	Change	H1 2014	Q1 2013
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%	22,019,044	22,050,044
Treasury shares	Piece	334,041	1.5%	310,541	279,541

The POLYTEC share (ISIN: AT0000A00XX9) started with a price of EUR 6.25 in the new stock exchange and fiscal year 2015 and closed at a price of EUR 7.88 on 30 June 2015. On the last trading day of the 1st half year of 2015, the market capitalization was EUR 176.0 million. The POLYTEC share recorded a significant increase of about 26.1% in the first six months of fiscal year 2015. Therefore, the POLYTEC share achieved the ninth place in the performance rating of 39 Prime Securities. Throughout the entire period, the shares consistently performed higher than the ATX Prime Index, which rose by 12.2%. During the 1st half year of 2015 the STOXX® Europe 600 Automobile & Parts Index rose by 24.1%.

In the 1st half year of 2015, POLYTEC shares achieved a money turnover of approximately EUR 40.3 million, or a share turnover of 5.2 million units at the Vienna Stock Exchange. During the 121 trading days an average of 43,188 POLYTEC shares were traded per day, in the previous year: 52,950 pieces, based on double counting. The top trading day was May 6, the day of the publication of the interim report for the 1. quarter 2015. Approx. 262,000 pieces (double counting) POLYTEC shares were traded and the share price rose by about 10%.

SHAREHOLDER STRUCTURE

As of 30 June 2015, POLYTEC HOLDING AG's share capital remained unchanged at EUR 22.3 million and was divided into 22,329,585 bearer shares with a nominal value of EUR 1.00 each. During the 1st half year of 2015, POLYTEC HOLDING AG did not receive any notifications from shareholders of voting rights pursuant to § 91 of the Austrian Stock Exchange Act.

At the end of the 1st half of 2015, POLYTEC HOLDING AG held a total of 334,041 treasury shares, this corresponds to a share of approximately 1.5% of the share capital. The Board of Directors did not acquire or sell any further shares in the period from 15 October 2014 to 30 July 2015 (deadline of this report). At the 14th Annual General Meeting held on 14 May 2014, the Board of Directors was authorized to continue the share buyback program.

Except for a slight increase in treasury stock from 1.4% to 1.5%, the shareholder structure remained virtually unaltered as compared to the previous year and as at 30 June 2015 presented the following picture:

RESEARCH COVERAGE

The coverage of the POLYTEC GROUP by internationally operating investment banks is an important element in its comprehensive investor relations activities and plays a significant role in the visibility of the POLYTEC shares within the investor community. During the 1st half year of 2015, POLYTEC organized road shows with some European financial institutions and was invited to participate in investor conferences and other events to present the results of 2014 financial year and the figures of the 1st quarter of 2015 financial year. The following financial institutions publish reports on POLYTEC HOLDING AG. Up to the editorial deadline of this report, both of the following investment banks recommended the POLYTEC share as a "BUY":

Institute	Recommendation	Latest price target
ERSTE Group Bank Research	BUY	EUR 9.50
Raiffeisen CENTROBANK Research	BUY	EUR 9.00

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, Bloomberg: PYT.AV, Reuters: POLV.VI

15TH ORDINARY ANNUAL GENERAL MEETING ON MAY 13, 2015

The 15th Ordinary Annual General Meeting of POLYTEC HOLDING AG took place on Wednesday, May 13, 2015 at group headquarters in Hörsching. On average, 53.1% of company share capital with voting rights was present during the AGM.

The shareholders and shareholder representatives attending voted unanimously for the payment of a dividend for the 2014 financial year of EUR 0.25 per share, which corresponded with a total amount of EUR 5,498,886,00.

All the members of the POLYTEC HOLDING AG Executive and Supervisory Boards incumbent in 2014 were granted respective unanimous discharge. The resolution proposing that remuneration of EUR 98,750.00 be paid to the members of the Supervisory Board in the 2014 financial year was also passed unanimously.

The AGM elected Deloitte Oberösterreich Wirtschaftsprüfungs GmbH, 4020 Linz as the auditors for the financial statements and the consolidated financial statements for the 2015 financial year.

The end of the 15th Ordinary Annual General Meeting marked the conclusion of the term of office of the five members of the Supervisory Board to date. All of these appointees applied for re-election. With effect from the passing of a resolution of the Annual General Meeting on May 13, 2015, Messrs Reinhard Schwendtbauer, and Manfred Trauth, Ms Viktoria Kickinger and Messrs Robert Büchelhofer and Herr Fred Duswald were reappointed to the Supervisory Board for a period terminating with the holding of the Annual General Meeting that will pass a resolution on the discharge for the 2019 financial year.

The detailed voting results can be downloaded from the company website, www. polytec-group.com from the Investor Relations section under the heading Annual General Meeting.

INTERIM CONSOLIDATED FINANCIAL STATEMENT ACCORDING TO IAS 34

CONSOLIDATED INCOME STATEMENT

In TEUR	H1			Q2
	2015	2014	2015	2014
Sales	311,340	238,459	155,590	120,550
Other operating income	2,256	4,096	961	2,039
Changes in inventory of finished and unfinished goods	2,552	44	1,152	-594
Own work capitalised	907	1,411	306	810
Expenses for materials and services received	-150,128	-119,578	-74,893	-60,407
Personnel expenses	-100,449	-77,683	-49,719	-38,625
Other operating expenses	-36,936	-30,030	-18,081	-15,272
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	29,543	16,719	15,315	8,502
Depreciation	-11,352	-7,687	-5,885	-3,781
Earnings before interest, taxes and amorisation of goodwill (EBITA)	18,191	9,032	9,430	4,721
Impairments	0	0	0	0
Earnings before interest and taxes (EBIT)	18,191	9,032	9,430	4,721
Income from associated companies	77	85	77	85
Interest result	-1,911	-568	-1,007	-312
Financial result	-1,834	-482	-930	-226
Earnings before tax	16,375	8,550	8,500	4,495
Taxes on income	-4,298	-1,642	-2,305	-742
Profit after tax	12,059	6,908	6,195	3,753
Thereof result of non controlling interests	-298	-355	-128	-165
Thereof result of the parent company	11,761	6,553	6,067	3,588
Earnings per share	0.53	0.30	0.28	0.16

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

01.01. - 30.06.2015 In TEUR	Group	non controlling interests	Total
Profit after tax	11,761	298	12,059
Currency translation	-98	0	-98
Total comprehensive income	11,663	298	11,961
01.01. - 30.06.2014 In TEUR	Group	non controlling interests	Total
Profit after tax	6,553	355	6,908
Currency translation	321	0	321
Total comprehensive income	6,874	355	7,229

CONSOLIDATED BALANCE SHEET

ASSETS (in TEUR)	30.06.2015	31.12.2014
Fixed assets:
Intangible assets	1,479	1,431
Goodwill	19,180	19,180
Tangible assets	196,741	100,720
Investments in affiliated companies	2,100	100
Investments in associated companies	31	31
Other finacial assets	13	598
Other long-term receivables	1,976	2,338
Interest-bearing receivables	520	756
Deferred tax assets	16,447	17,434
	238,486	142,588

Current assets:
Inventories	57,079	52,708
Trade accounts receivable and other receivables and assets	74,427	69,587
Receivables from construction contracts	34,356	34,609
Interest-bearing receivables	12,790	12,564
Cash and cash equivalents	47,684	111,951
	226,335	281,418
	464,822	424,006

LIABILITIES (in TEUR)	30.06.2015	31.12.2014
Shareholder's equity:
Share capital	22,330	22,330
Capital reserves	37,563	37,563
Treasury shares	-1,855	-1,855
Non-controlling interests	5,818	5,520
Retained earnings	92,396	85,998
Other earnings	-5,496	-5,262
	150,756	144,294

Long-term liabilities:
Interest-bearing liabilities	145,664	121,814
Provision for deferred taxes	911	417
Long-term provisions for personnel	26,240	26,335
Other long-term liabilities	11,901	15,149
	184,715	163,715

Short-term liabilities:
Trade accounts payable	39,842	47,743
Liabilities from construction contracts	3,596	5,540
Short-term interest-bearing liabilities	11,543	10,528
Short-term portion of long-term loans	14,003	4,749
Liabilities on income taxes	3,127	1,216
Short-term provisions	31,452	26,296
Other short-term liabilities	25,789	19,924
	129,350	115,996
	464,822	424,006

CONSOLIDATED CASH FLOW STATEMENT

		H1
	In TEUR	2015	2014
	Earnings before tax	16,357	8,550
-	Income taxes	-1,421	-4,114
+(-)	Depreciation (appreciation) of fixed assets	11,352	7,687
+(-)	Other non-cash expenses/earnings	-136	186
=	Consolidated Cash flow from earnings	26,151	12,309
+(-)	Changes in net working capital	-16,189	-1,622
=	Cash flow from operating activities	9,962	10,687
+(-)	Cash flow from investing activities	-44,502	-10,819
+(-)	Cash flow from financing activities	-29,771	-4,282
=	Changes in cash and cash equivalents	-64,312	-4,414
+(-)	Effect from currency translations	45	63
+	Opening balance of cash and cash equivalents	111,951	34,174
=	Closing balance of cash and cash equivalents	47,684	29,823

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

In TEUR	Share capital	Capital reserves	Treasury shares	Retained earnings	Other earnings	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	11,761	0	11,761	298	12,059
Earnings after tax	0	0	0	0	-98	-98	0	-98
Dividend	0	0	0	-5,499	0	-5,499	0	-5,499
Balance as of June 30, 2015	22,330	37,563	-1,855	92,260	-5,361	144,938	5,818	150,756

In TEUR	Share capital	Capital reserves	Treasury shares	Retained earnings	Other earnings	Equity attributable to Shareholders of the parent	Non controlling interests	Total
Balance as of January 1, 2014	22,330	37,563	-1,709	77,943	-4,506	131,622	5,528	137,150
Earnings after tax according to income statement	0	0	0	6,553	0	6,553	355	6,908
Earnings after tax	0	0	0	0	321	321	0	321
Dividend	0	0	0	-5,505	0	-5,505	-600	-6,105
Balance as of June 30, 2014	22,330	37,563	-1,709	78,991	-4,185	132,991	5,283	138,274

SEGMENT REPORTING

01.01. - 30.06. In TEUR	Plastics processing		Others		Transition		Group
	H1 2015	H1 2014	H1 2015	H1 2014	H1 2015	H1 2014	H1 2015	H1 2014
External sales	306,370	233,622	4,791	4,837	0	0	311,340	238,459
Intra group sales	962	140	6,094	5,708	-7,056	-5,848	0	0
Total sales	307,331	233,762	11,065	10,546	-7,056	-5,848	311,340	238,459
Depreciation	-11,139	-7,480	-288	-208	75	0	-11,352	-7,687
thereof extraordinary	0	0	0	0	0	0	0	0
Operating income	16,505	7,372	1,610	1,661	77	0	18,191	9,032

01.04. - 30.06. In TEUR	Plastics processing		Others		Transition		Group
	Q2 2015	Q2 2014	Q2 2015	Q2 2014	Q2 2015	Q2 2014	Q2 2015	Q2 2014
External sales	153,039	118,012	2,551	2,539	0	0	155,590	120,550
Intra group sales	880	111	3,085	2,866	-3,965	-2,977	0	0
Total sales	153,919	118,123	5,636	5,405	-3,965	-2,977	155,590	120,550
Depreciation	-5,816	-3,676	-144	-105	75	0	-5,885	-3,781
thereof extraordinary	0	0	0	0	0	0	0	0
Operating income	8,645	3,840	708	880	77	1	9,430	4,721

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 June 30, 2015 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

The consolidated financial statement includes all major Austrian and foreign comaccounting and evaluation methods adopted on December 31, 2014 were applied to this report. This interim report does not include all information and data contained in the consolidated financial statements as of

panies, where POLYTEC HOLDING AG directly or indirectly holds a majority of voting rights. December 31, 2014 of POLYTEC HOLDING AG. Please refer to the consolidated financial statements for more information.

The scope of consolidation changed from 1st January 2015 to June 30, 2015 as follows:

Scope of consolidation	Full consoli dation
As of December 31, 2014	29
Access through corporate acquisition	1
As of June 30, 2015	30
Of which foreign enterprises	23

ACQUISITIONS IN 1ST HALF YEAR 2015

POLYTEC IMMOBILIEN-GROUP

The agreement to acquire all shares of POLYTEC Immobilien Holding GmbH, Hörsching was signed with Huemer Holding GmbH, Hörsching on 2 March 2015, with initial consolidation as of January 1, 2015.

The POLYTEC Immobilien Holding GmbH is a real estate shareholding company with subsidiaries in Germany and abroad. For historical reasons, these subsidiaries own exclusively operational property essential for POLYTEC GROUP in twelve different locations in Germany, Austria, Belgium and Slovakia. In addition, the POLYTEC Immobilien Holding GmbH founded a Turkish company in 2014 with the purpose of acquiring a real estate property for the POLYTEC site in Turkey.

The management of POLYTEC HOLDING AG expects financial as well as strategic benefits from the acquisition of the real estate portfolio previously held by Huemer Holding GmbH. In addition to the attractive purchase price at the lower end of a value range determined in the course of the purchase process, very positive effects on the earnings situation of the POLYTEC GROUP can be achieved at the same time. The acquisition will have a positive impact of around 8 million p. a. on EBITDA. The positive impact on EBIT is estimated at around EUR 6 million p. a. from today's perspective. It must also be noted that these positive contributions to earnings will further increase moving forward, since rental payments are subject to annual indexation. Based on the value of the real estate portfolio, a return on capital employed of approximately 9% arises. Given current very favourable interest rates, the option of increasing the promissory note loan above the originally planned level was exploited. As a result, liquid resources were available, which could be put to optimal use through this takeover. At the same time, the acquisition of the real estate portfolio will also result in strategic benefits for the POLYTEC GROUP. The takeover and its impact on the earnings situation will improve the KPIs of relevance to potential providers of equity and loan capital and consequently the group's position on the financial market as well as the financing of future growth.

The acquired property portfolio is a group of assets (collection of assets). There is no business operation within the meaning of IFRS 3, as the properties will be used almost exclusively by companies of the POLYTEC GROUP, there is no active management and marketing of properties with third parties and hardly any external revenues are generated.

The acquired real estate portfolio as well as any other related assets and liabilities were recognized for the first time in the consolidated financial statements of POLYTEC GROUP in the first quarter of 2015.

The cash purchase price amounted to TEUR 29,595. The purchase price share attributable to the real estate portfolio amounted to TEUR 87,312. The remaining purchase price portion is attributed to other assets and liabilities, and includes the interest-bearing liabilities of TEUR 57,545.

WIN COATINGS (now: POLYTEC INDUSTRIELACKIERUNG Weiden GmbH)

All shares in WIN Coatings GmbH, Altenstadt, Germany as well as the fixed assets needed for the business used by the company along with the business property were acquired from Nessmayr Holding GmbH, Altenstadt, Germany, by means of a company acquisition contract dated February 23, 2015, with initial consolidation as of February 28, 2015. The total purchase price amounted to TEUR 2,600. This takeover serves to consolidate the group's position in the European market through the acquisition of companies, which perfectly complement the POLYTEC GROUP's technology portfolio. The company

mentioned above will optimally complement
the industrial coatings division moving for
ward. Up until now, it has primarily served
as an external, extended workbench for the
POLYTEC site in Weiden. Besides, this acqui
sition will further increase the degree of ver
tical integration of the industrial coatings
process by adding an important process step
such as priming coating, while at the same
time eliminating a critical operating inter
face. WIN Coatings GmbH generated total
sales of around EUR 3.9 million in the 2014
financial year. Since approximately 70% of
this figure was generated with companies of

the POLYTEC GROUP, the consolidated sales of the POLYTEC GROUP will only increase very slightly. Due to the proximity of the acquisition to the balance sheet date, the purchase price allocation is based on preliminary figures. The final evaluation of the purchase price allocation will be completed within twelve months from the acquisition date, as soon as all the bases for assessment of the fair values have been analysed in detail. The purchase price allocation estimated based on the fair values at the acquisition date was as follows:

In TEUR	2015
Purchase price paid in cash	2,600
Net assets	2,642
Negative goodwill (Bad will)	42

The acquired assets and liabilities were recognized at the acquisition date with the following fair values:

In TEUR	Fair value at the date of acquisition
Non current assets
Property, plant and equipment	3,940
	3,940
Current assets
Inventories	151
Trade and other receivables	271
Cash in hand and current financial resources	36
	459
Non-current assets
Deferred tax obligations	24
Interest-bearing liabilities	0
	24
Current liabilities
Trade payables	260
Interest-bearing liabilities	0
Current provisions	1,318
Other current liabilities	156
	1,734
Net assets	2,642

The remaining negative difference was recognized as having a positive impact on results. The fair value of trade and other

receivables amounted to TEUR 271. The gross amount of receivables also amounts to TEUR 271. None of the trade and other receivables were impaired and all receivables agreed by contract are recoverable.

The net cash flow from the acquisition breaks down as follows:

In TEUR	2015
Cash flow from investing activities
Purchase price settled in cash	-2,600
Cash in hand and current financial resources	36
Net cash flow from the acquisition	2,564

The acquired business contributed to revenues of the Group since the initial consolidation of revenues in the amount of TEUR 176. The contribution to earnings after tax for the same period amounted to TEUR 37. If the acquired companies were to be consolidated on 1 January 2015, the sales of the Group would have been higher by TEUR 236 and the earnings after taxes lower by TEUR 63.

ADMOULD WERKZEUGBAU GMBH (now: POLYTEC TOOLING GmbH & Co KG)

POLYTEC GROUP acquired AdMould Werkzeugbau GmbH located in Thannhausen, Germany as of 1 July 2015. Through this acquisition POLYTEC GROUP expands its tooling capacities (e.g. for the production of injection moulded parts for the automotive industry) and strengthen the strategic development. This acquisition has not been included in this half year report.

EQUITY

At the 15th Annual General Meeting held on 13 May 2015 a resolution was passed unanimously approving dividend payments totalling TEUR 5,499 (previous year: TEUR 5,505) which were distributed on 22 May 2015. This corresponds to a dividend of EUR 0.25 per share (previous year: EUR 0.25).

AFFILIATED COMPANIES AND PERSONS

With regard to business transactions with affiliated companies and persons, reference is made to the explanatory notes in connection with the acquisition of all shares of POLYTEC Immobilien Holding GmbH, Hörsching. There were no other significant changes compared to 31 December 2014, hence the reference to the explanatory notes to the consolidated financial statements of POLYTEC HOLDING AG for 31 December 2014.

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 June 2015.

STATEMENT OF ALL LEGAL REPRESENTATIVES PURSUANT TO SECTION 87 PARA. 1 PT. 3 AUSTRIAN STOCK CORPORATION ACT

We confirm to the best of our knowledge that the condensed interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group as required by the applicable accounting standards and that the group management report gives a true and fair view of important events that have occurred during the first six months of the financial year and their impact on the condensed interim financial statements, and of the principal risks and uncertainties for the remaining six months of the financial year and of the major related party transactions to be disclosed.

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

Hörsching, August 5, 2015

The Board of Directors of POLYTEC HOLDING AG

FRIEDRICH HUEMER CEO, Chairman of the Board of Directors

Responsibilities: M&A, Investment Management, Strategy, Corporate Communications, HR, Law

MARKUS HUEMER COO, Vice Chairman of the Board of Directors

Responsibilities: Business Development, Plants, Production, Procurement

ALICE GODDERIDGE CSO, Member of the Board of Directors

Responsibilities: Sales & Engineering (Sales, Marketing, Development)

PETER HAIDENEK CFO, Member of the Board of Directors

Responsibilities: Finance, IT, Controlling, Accounting, Investor Relations, Internal Audit The Interim Report Q3 to be published November 4, 2015. 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 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 half year financial report 2015 was published on August 5, 2015.

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