ElringKlinger AG — Interim / Quarterly Report 2016

Aug 10, 2016

REPORT ON THE 2ND QUARTER AND 1ST HALF 2016

pure partners

Key Figures ElringKlinger Group

		2nd Quarter 2016	1st Quarter 2016	4th Quarter 2015	3rd Quarter 2015	2nd Quarter 2015
Order Situation
Order intake	€ million	441.2	424.0	429.6	336.6	435.1
Order backlog	€ million	885.2	835.0	796.2	756.7	786.2
Sales/Earnings
Sales revenue	€ million	390.9	385.2	390.0	366.1	379.7
Cost of sales	€ million	293.2	287.7	299.8	274.7	282.6
Gross profit margin		25.0%	25.3%	23.1%	25.0%	25.6%
EBITDA	€ million	58.5	53.2	50.2	56.7	59.8
EBIT /Operating result	€ million	35.2	30.8	26.2	35.4	38.3
EBIT margin		9.0%	8.0%	6.7%	9.7%	10.1%
EBIT pre ppa1	€ million	36.2	32.0	27.5	36.7	39.6
EBIT margin pre ppa		9.3%	8.3%	7.1%	10.0%	10.4%
Earnings before taxes	€ million	32.6	24.4	28.3	29.8	31.8
Net income	€ million	23.5	17.9	23.8	20.7	22.0
Net income attributable to
shareholders of ElringKlinger AG	€ million	22.6	17.2	22.4	20.0	21.0
Cash Flow
Net cash from operating activities	€ million	32.3	39.5	31.7	32.7	32.2
Net cash from investing activities	€ million	-44.2	-38.9	-56.5	-50.7	-43.2
Net cash from financing activities	€ million	15.4	20.2	11.8	5.2	17.0
Operating free cash flow2	€ million	-6.6	0.6	-24.8	-18.0	-11.0
Balance Sheet
Balance sheet total	€ million	1,853.3	1,809.5	1,765.8	1,757.4	1,765.6
Equity	€ million	857.7	864.1	855.7	821.5	830.4
Equity ratio		46.3%	47.8%	48.5%	46.7%	47.0%
Human Resources
Employees (as at end of quarter)		8,283	8,126	7,912	7,742	7,597
Stock
Earnings per share	€	0.36	0.27	0.35	0.32	0.33

¹ EBIT adjusted for amortization resulting from purchase price allocation

Net cash from operating activities minus net cash from investing activities (excluding acquisitions)

pure partners

ElringKlinger sees itself as a trusted partner to its customers, investors, and suppliers. This ambition is shared by a team of more than 8,200 people currently working for the Group at 45 sites around the globe. Embracing "pure partners" as a guiding theme, ElringKlinger has put its global network to the fore – capturing every dimension of cooperation within the company and beyond. The partnerships pursued within this network form the basis for our company's innovations, which in turn help to shape the world's mobility of the future and secure our position as a technology leader in the automotive supply industry.

Contents

Highly elastic molded MetalosealTM ring gaskets for high-temperature applications and mica- or graphite-based volume sealing rings for exhaust and turbocharger applications.

04 PAGE

Interim Group Management Report

• 04 Macroeconomic Conditions and Business Environment
• 05 Significant Events
• 06 Sales and Earnings Performance
• 12 Financial Position and Cash Flows
• 15 Opportunities and Risks
• 16 Report on Expected Developments
• 19 Events after the Reporting Period

PAGE

20

ElringKlinger and the Capital Markets

22 PAGE

Interim Consolidated Financial Statements

• 22 Group Income Statement
• 23 Group Statement of Comprehensive Income
• 24 Group Statement of Financial Position
• 26 Group Statement of Changes in Equity
• 28 Group Statement of Cash Flows
• 29 Group Sales by Region
• 30 Segment Reporting
• 32 Notes to the First Half of 2016
• 39 Responsibility Statement

Macroeconomic Conditions and Business Environment

Overall, global economic growth remained subdued in the first half of 2016. Global activity was characterised by economic weakness in some regions, including Asia, and by the resulting strain on commodity exporters. Other factors were the Ukraine crisis and geopolitical events such as turbulence in the Middle East.

The euro area continued its recovery at a sluggish pace. However, the eurozone was able to compensate for weak demand from outside the single currency area thanks to the region's own robust economic performance. Stable economic growth in Germany over the first six months of 2016 was largely driven by strong demand from private consumers.

In the United States, growth in real incomes and buoyant consumer demand generated forward momentum for the economy in the first half of 2016. In South America, Russia, and other emerging countries dependent on raw material exports, economic growth was held back by low commodity prices. Brazil and Russia remained deeply mired in recession due to their structural and political problems.

China's economy continued to expand, albeit at a somewhat slower rate. India remained on its upward trajectory. Economic growth in Japan remained weak in the first half of 2016.

World's biggest vehicle markets report continued growth

China, North America, and Europe, the world's "big three" vehicle markets, all recorded further growth in the first half of 2016.

In percentage terms, the largest rise was in Europe, which grew at an unexpectedly rapid pace driven by low fuel prices, increasing employment, and above all by low interest rates. In those countries worst hit by the financial crisis in 2008/2009, growth was also stoked by released pent-up demand for replacement vehicles. All the major Western European markets recorded strong growth, with Italy and Spain even reaching double figures. Demand in the new EU countries was also very buoyant.

New registrations in Germany rose by a substantial 7.1% in the first half of 2016. By contrast, the increase in German vehicle production was somewhat less pronounced at 3.8%, taking the figure to 3.0 million units. Out of this total, 2.3 million passenger cars were exported, an increase of 2.3% compared with the same period a year ago.

As expected, there was a slowdown in light vehicle sales in the United States. Once again, the main focus of buyers was on high-powered SUVs and pick-up trucks.

Year-on-year change in %	4th Quarter 2015	1st Quarter 2016	2nd Quarter 2016
Germany	1.3	1.6	1.3
Eurozone	1.7	1.7	1.5
USA	2.0	2.1	1.8
Brazil	-5.9	-5.4	-4.1
China	6.8	6.7	6.6
India	7.2	7.9	7.3
Japan	0.7	0.1	0.9

G D P G R OW T H R AT E S

Source: HSBC (June 2016)

Demand for SUVs was also strong in China, the world's biggest single market. In the year to date, this helped to boost sales in China by a larger than anticipated margin. Demand for passenger cars in China has also been driven since October 2015 by tax incentives for newly registered small vehicles. After a faltering start to the year, India's passenger car market picked up momentum from March onwards. In Japan, the world's third largest single vehicle market, sales declined in the first half of 2016, reflecting the country's generally weak pattern of growth. Brazil and Russia, both of which currently face severe economic difficulties, recorded double-digit falls in vehicle sales over the period.

Upswing in European commercial vehicle market

Europe's commercial vehicle market grew by a very encouraging margin over the first six months of 2016. In Western Europe, sales of medium and heavy commercial vehicles (over 3.5 metric tons) rose by 14.3% to 274,623 units. The pent-up demand created by several years of financial crisis is now being released as the economy recovers. Within the German market, sales of trucks above 3.5 metric tons rose by 9.1% to 81,714. As a whole, the new EU countries also saw a strong increase of 28.7% to 64,586.

After establishing a consistent pattern of strong growth in recent years, the US market paused for breath over

NEW CAR REGISTRATIONS 1 S T H A L F 2 0 16 Year-on-year change (in %)

Source: VDA, ACEA (July 2016)

the first half of 2016. Sales of heavy trucks (Class 8) declined by a substantial 15.4% over the period to 104,221.

Significant Events

In the second quarter of 2016, Hug Engineering AG, a 93.67% subsidiary of ElringKlinger AG based in Elsau, Switzerland, acquired a further 80.0% of the interests in COdiNOx Beheer B.V., Enschede, Netherlands, effective from April 11, 2016, and now holds a 90.0% interest in that entity. The euro-based purchase price is towards the lower end of the single-digit million range.

The acquisition of the aforementioned interests was concluded after the subsidiaries of COdiNOx Beheer B.V. had been merged into the parent company. The company now trades as Hug Engineering B.V. The acquisition of the distribution and service company is aimed at exploiting synergies and leveraging growth potential for Hug exhaust gas purification systems, in addition to unlocking new markets.

In addition, effective from June 1, 2016, ElringKlinger AG took over the business operations of the insolvent die and tool maker Maier Formenbau GmbH, with its registered office in Bissingen/Teck, Germany. All assets of Maier Formenbau GmbH required for the continuation of business operations were acquired and integrated within ElringKlinger AG (asset deal).

Maier Formenbau specializes in the production and repair of technically complex injection-molding tools. In completing this takeover, ElringKlinger has extended its existing competencies and capacity levels within the area of tooling. The additional resources are to be used primarily for the purpose of developing and producing tools for the Shielding Technology division.

Sales and Earnings Performance

Solid expansion of revenue

The dynamic pace of Europe's vehicle markets together with sustained buoyancy in consumer demand in the United States and structural growth within many of the product groups marketed by ElringKlinger helped to lift revenues both in the second quarter and the first half of 2016.

Revenue increased by 3.3% in the first six months of 2016, up from EUR 751.1 million to EUR 776.1 million. Of this total, an amount of EUR 390.9 (379.7) million was attributable to the second quarter of 2016. After forex adjustments, growth was as high as 6.4% in the first half of the financial year and 6.0% in the second quarter. Alongside the revenue contribution of EUR 4.9 million in the first quarter of 2016 following the inclusion of the entity formally known as M&W Manufacturing Company, Inc., Warren, USA, which had been acquired in 2015, the Group recorded an additional EUR 1.6 million in revenue in the second quarter of 2016 from the first-time consolidation of interests acquired in COdiNOx Beheer B.V., Enschede, Netherlands, on April 11, 2016. Eliminating these acquisitions and the above-mentioned forex effects, organic growth in the second quarter of 2016 stood at EUR 21.3 million or 5.6%. Over the entire reporting period, ElringKlinger recorded an organic increase in revenue of 5.6%, thus remaining within its target corridor of 5 to 7% growth for the full fiscal year 2016.

Key markets continue to expand

The Group continued to reap the rewards of its global presence during the first half of 2016 and succeeded in expanding revenue generated from sales in the regions covering NAFTA, Asia-Pacific, and Rest of Europe by between 7 and 9% (without the effects of foreign exchange rates). Global growth is founded primarily on the Group's strength as an innovator, which translates into a steady stream of new products launched onto the markets.

In the first half of 2016, the region covering Asia-Pacific saw revenues expand by 6.4% compared to the same period a year ago, taking the total to EUR 137.0 (128.7) million. Sales relating to innovative polymer hybrid components, for which serial production at the

EUR million	2nd Quarter 2016	2nd Quarter 2015	Change in EUR mn	in %	1st Half 2016	1st Half 2015	Change in EUR mn	in %
Group revenue	390.9	379.7	+11.2	+2.9	776.1	751.1	+25.0	+3.3
of which FX effects			-11.7	-3.1			-23.4	-3.1
of which acquisitions			+1.6	+0.4			+6.5	+0.9
of which organic			+21.3	+5.6			+41.9	+5.6

FACTORS INFLUENCING GROUP REVENUE

Chinese site in Suzhou has been underway since the second half of 2015, made a positive contribution to revenue flow. Additionally, ElringKlinger opened a new plant with state-of-the-art production lines at its Suzhou site in the second quarter of 2016; it specializes, among other things, in the manufacture of innovative lightweight components made of plastic. The share of the Asia-Pacific region in total Group revenue now stands at 17.7% (17.1%).

The NAFTA region exceeded last year's buoyant sales figure by 2.4% in the first half of 2016 and saw Group revenue grow to EUR 149.4 (145.9) million, despite the influence of foreign exchange losses of EUR 8.0 million. Overall, the revenue contribution made by the NAFTA region was marginally lower at 19.3% (19.5%).

The Group's sales performance in the region covering South America and the Rest of the World again fell short of expectations in the first half of 2016. Brazil's economy remained engulfed in a crisis, with the local currency, the real, continuing to slide. Operating within this environment and impacted by the effects of foreign exchange rates, ElringKlinger saw revenue decline by 6.6% to EUR 28.1 (30.1) million. At an operational level, the Group managed to grow from a low base by a solid 5.6%.

Benefiting from a climate dominated by low interest rates and plunging fuel prices, ElringKlinger generated its strongest growth in the region covering the Rest of Europe (excluding Germany). Sales revenue expanded by 6.9% in total to EUR 257.9 (241.3) million in the first half of 2016. Accounting for 33.2% (32.1%) of revenue, this region therefore remained the biggest sales market for ElringKlinger.

In Germany, ElringKlinger recorded revenue of EUR 203.7 (205.1) million in the first six months of 2016, thus coming close to its prior-year sales figure. The percentage share of domestic sales in relation to total Group revenue now stands at 26.2% (27.3%).

Overall, the percentage share of foreign sales in relation to Group revenue rose to 73.8% (72.7%) in the first six months of 2016.

Further improvement in revenue for Original Equipment

The Original Equipment segment accounted for 82.4% (83.0%) of total Group revenue in the first half of 2016. Segment revenue was up by 2.5% or EUR 15.8 million, taking the figure to EUR 639.3 (623.5) million for the first half. In the second quarter, the Group achieved 2.6% growth in revenue and lifted the total for this segment to EUR 323.0 (314.7) million. The high-growth Specialty Gaskets and Plastic Housing Modules/Elastomer Technology divisions made a sizeable contribution within this area.

The capacity constraints that emerged in 2015 within one of the units of the Shielding Technology division exerted pressure on earnings in the second quarter of 2016, with an additional EUR 4 million in costs incurred. Thus, additional costs amounted to around EUR 11 million in the first six months, just slightly more than the projected figure of around EUR 10 million. Improvements seen in the first quarter with

regard to the reduction in the substantial fixed costs recorded at an operating level failed to progress to the extent originally planned over the course of the second quarter of 2016. In this context, staffing levels at the Swiss company in question again had to be expanded slightly during the second quarter of 2016 in order to safeguard higher production output. Additionally, the company was unable to reduce as planned the overall storage space rented from third parties. At the same time, nearshoring of parts of the manufacturing operations to Hungary advanced at a slower pace than originally expected. This is due to the fact that it took much longer than anticipated in some cases to secure the customer approvals required in the automotive industry; in some instances, these authorizations are still outstanding. While quality control was reintegrated, these measures failed to provide the rapid boost to earnings that had previously been expected.

With revenue of EUR 4.8 (6.2) million, the E-Mobility division fell short of the prior-year figure in the first half of 2016. Despite this downturn, the Group managed to restrict the loss (EBIT) to EUR 2.9 (3.1) million with the help of additional process optimizations. Despite government support in some countries, global demand for battery-powered vehicles and plug-in hybrids continues to lag well behind expectations.

In terms of earnings, the extent of revenue growth was not sufficient to offset the adverse factors outlined above, as a result of which earnings before interest and taxes (EBIT) amounted to EUR 42.3 (52.6) million in the first half.

Strong performance by Aftermarket segment

Among the key products sold by ElringKlinger's Aftermarket segment are cylinder-head gaskets and complete gasket sets. Following a successful second quarter, the Group generated revenue of EUR 78.3 (71.4) million in the first half of 2016, which corresponds to growth of 9.7%. ElringKlinger produced strong forward momentum within the Eastern European market in the first six months. Here, intense market cultivation over many years and close customer relationships have borne fruit. The same applies to business within the domestic market, where revenue in the first six months was lifted by 13.4%.

Segment earnings before interest and taxes (EBIT) rose by 22.1% to EUR 16.6 (13.6) million in the period from January to June 2016.

Revenue and EBIT up 3% for Engineered Plastics

In contrast to the segments presented above, the Engineered Plastics segment specializes in processing high-performance plastics (e.g., PTFE/PFA/PVDF), in addition to focusing on associated application technology. Around two-thirds of segment revenues are generated outside the automotive industry, e.g., from customers operating in the field of mechanical and plant engineering.

In the first six months of 2016, the Engineered Plastics segment generated revenue of EUR 51.6 (50.1) million, which corresponds to growth of 3.0%. Business dealings within the market for mechanical and plant engineering again proved inconsistent, while sales within the automotive industry developed in line with expectations. In total, earnings before interest and taxes (EBIT) reached EUR 6.2 (6.0) million in the first six months of 2016.

Lower earnings contribution from Industrial Parks

In the first half of 2016, Group rental income from the industrial parks in Idstein, Germany, and Kecskemét, Hungary, amounted to EUR 2.0 (2.2) million. This slight decline is attributable to the scheduled termination of a rental agreement at the end of 2015, as a result of which segment earnings before interest and taxes (EBIT) were again lower compared to the prioryear figure. In the first half segment EBIT stood at EUR -0.1 (0.5) million.

Slight revenue growth for Engineering Services

The Services segment provides classic services, e.g., in the area of engineering and testing, for vehicle manufacturers and other automotive suppliers. The range of services within this area includes SCR (Selective Catalytic Reduction) technology for the purpose of nitrogen oxide reduction as well as particle counting for diesel particulate filters. Additionally, ElringKlinger Logistic Service GmbH, which also operates in the Services segment, provides internal and external logistics services within the area of sorting and packing.

SALES REVENUE BY SEGMENT 1 S T H A L F 2 0 16 (prior year) in %

Industrial Parks	0.3 (0.3)
Services	0.6 (0.5)
Engineered Plastics	6.6 (6.7)
Aftermarket	10.1 (9.5)
		Original Equipment	82.4 (83.0)

At EUR 4.9 (3.8) million, segment revenue was up yet again in the first six months. Segment earnings before interest and taxes reached EUR 1.0 (0.9) million.

Further rise in Group headcount

As of June 30, 2016, the ElringKlinger Group's global headcount was up 371 or 4.7% at 8,283 (Dec. 31, 2015: 7,912). As in the first quarter of 2016, ElringKlinger again strengthened its international presence and recruited additional employees outside Germany. This increase was mainly driven by the growing volume of production at a global level. In the half-year period under review, the number of employees working outside Germany stood at 4,794 (Dec. 31, 2015: 4,467). The biggest increase in staff numbers came in the second quarter of 2016 in India, Mexico, and the United States, where the main focus of recruitment was on the Group's production units. As a proportion of the total Group headcount, the number of employees based outside Germany rose to 57.9% in the first half (Dec. 31, 2015: 56.5%). Accordingly, the proportion employed in Germany as of June 30, 2016, fell to 42.1% (Dec. 31, 2015: 43.5%).

Gross margin down to 25%

The pressures affecting the Original Equipment segment, as outlined above, were reflected in the total cost of sales. Overall, the cost of sales rose by 4.0% to EUR 580.9 (558.5) million in the first half of 2016. As a result, the gross profit margin stood at 25.2% (25.6%). In the second quarter of 2016, the cost of sales amounted to EUR 293.2 (282.6) million. The gross profit margin declined from 25.6% to 25.0%.

In addition, the cost of sales figure for the first half of 2016 includes the staff profit-sharing bonus of EUR 5.7 (5.6) million agreed for the financial year 2015 for the employees of ElringKlinger AG, ElringKlinger Kunststofftechnik GmbH, and Elring Klinger Motortechnik GmbH. The one-off sum of EUR 150 per staff member paid out in June 2016 to all Group employees in Germany covered by the collective bargaining agreement led to an increase of EUR 0.5 million in total staff costs.

With regard to materials, prices for the high-grade steel and hot-dip aluminized sheet metal used by ElringKlinger edged upwards slightly, particularly in the second quarter. This was primarily due to market consolidation and a resulting decline in supply on the global market. In the first half of 2016, the alloy surcharges payable for high-grade steels were on a par with the previous year.

Spending on research and development remains above industry average

During the first half of 2016, direct spending on research and development (R&D) rose by 3.7% to EUR 33.4 (32.2) million, of which EUR 16.1 (15.8) million was attributable to the second quarter. Overall, including R&D costs of EUR 2.7 million capitalized as intangible assets, ElringKlinger channeled EUR 36.1 (36.0) million into development projects during the first half of 2016. Based on these figures, the R&D ratio was 4.7% (4.8%).

In the first half of 2016, ElringKlinger took advantage of government grants totaling EUR 3.3 (2.9) million. This funding was mainly directed at research projects in the field of fuel cell technology, battery technology, and lightweight construction. The grants were matched by equivalent project spending on development and prototype construction.

Over the course of the first half, all the Group's development projects concentrated on one of the automotive industry's current megatrends – efficient drive systems. Within this priority area, the main focus in the first six months of 2016 was on the further development of lightweight components for the vehicle body using newly designed materials such as light fiber-reinforced composites (organo sheets). Additionally, work on the development of a new combined system for off-road vehicles comprising a diesel particulate filter and a full-flow burner is almost complete. The full-flow burner permits the fully automatic, active regeneration of particulates on the diesel particulate filter – independent of engine operation. The system can also be operated using fuels that contain an unusually high proportion of sulfur. The E-Mobility division continued to focus on the design of its lithium-ion battery module, which can be used in various niche applications, e.g., construction machinery or forklift trucks.

Selling expenses rose by 8.0% to EUR 56.9 (52.7) million in the first half of 2016 and by 7.4% to EUR 28.9 (26.9) million in the second quarter. This was due to an increase in the amount spent on sales activities in Asia and higher freight costs.

General and administrative expenses rose by 12.9% to EUR 41.0 (36.3) million in the first half of 2016. This figure includes as yet outstanding salary payments of EUR 2.3 million to the former Management Board member Karl Schmauder (recognized in profit and loss under general and administrative expenses in the first quarter of 2016). The second-quarter figure for general and administrative expenses was EUR 19.5 (17.4) million.

EBITDA falls to EUR 112 million

Due to the higher cost base, as discussed earlier, revenue growth generated by the Group was not reflected in earnings for the second quarter and first half of 2016. Earnings before interest, taxes, depreciation, and amortization (EBITDA) fell to EUR 111.6 (115.9) million. In the second quarter, EBITDA amounted to EUR 58.5 (59.8) million. Owing to sustained investing activities, depreciation/amortization and write-downs of property, plant, and equipment as well as intangible assets rose by EUR 3.4 million to EUR 45.6 (42.2) million in the first half and by EUR 1.8 million to EUR 23.3 (21.5) million in the second quarter of 2016. This includes the negative effects of purchase price allocation – equivalent to EUR 2.3 (2.6) million in the first half and EUR 1.0 (1.3) million in the second quarter of 2016.

Having deducted depreciation and amortization, earnings before interest and taxes (EBIT) were down to EUR 66.0 (73.7) million in the first half. In the second quarter, Group EBIT amounted to EUR 35.2 (38.3) million, up EUR 4.4 million on the figure posted for the first quarter of 2016 (EUR 30.8 million). Before purchase price allocation, Group EBIT stood at EUR 68.2 (76.3) million in the first six months of 2016 and at EUR 36.2 (39.6) million in the second quarter.

This translates into an EBIT margin before purchase price allocation of 8.8% (10.2%) in the first half of 2016 and 9.3% (10.4%) in the second quarter.

EBIT PRE PPA 1ST HALF

in € million

Net finance result in second quarter benefits from forex gains

Net finance costs rose to EUR 8.9 (3.0) million in the first half of 2016. In the first half of 2015, the weak euro had helped to produce significant net foreign exchange gains of EUR 3.1 million from financing activities. In the first six months of 2016, by contrast, foreign exchange gains were lower and the Group recorded a net foreign exchange loss of EUR 2.6 million. Compared to the first quarter of 2016, the net result of currency translation improved by EUR 4.2 million to EUR 0.8 million in the second quarter of 2016 (March 31, 2016: EUR -3.4 million).

At EUR -6.3 (-6.1) million in the first half and EUR -3.4 (-3.1) million in the second quarter, the net interest result was comparable in both cases to the figures recorded in the preceding year.

Correspondingly, earnings before taxes of EUR 57.0 (70.7) million in the first half of 2016 fell short of the prior-year figure. By contrast, earnings before taxes were up year on year in the second quarter at EUR 32.6 (31.8) million.

Tax expenses fell to EUR 9.1 (9.8) million in the second quarter and to EUR 15.6 (19.5) million in the first half of 2016. At 27.9% (30.8%) in the second quarter of 2016 and 27.4% (27.5%) in the first six months of 2016, the Group tax rate was at a normal level.

Net income at EUR 41 million

Having fallen well short of the prior-year figure in the first quarter, net income in the second quarter, standing at EUR 23.5 (22.0) million, was comparable to that recorded a year ago. In total, net income amounted to EUR 41.4 (51.2) million in the first half of 2016.

At EUR 0.9 (1.0) million in the second quarter of 2016, non-controlling interests were close to the prior-year figure. Due to lower earnings from the Exhaust Gas Purification and Engineered Plastics divisions in the first quarter of 2016, non-controlling interests in the first half of 2016 as a whole fell to EUR 1.6 (2.0) million. Having deducted these interests, net income attributable to the shareholders of ElringKlinger AG amounted to EUR 39.8 (49.2) million in the first half of 2016 and EUR 22.6 (21.0) million in the second quarter of 2016.

As of June 30, 2016, the number of shares outstanding that were entitled to a dividend was unchanged at 63,359,990. On this basis, earnings per share amounted to EUR 0.63 (0.78) in the first half of 2016. In the second quarter of 2016 earnings per share stood at EUR 0.36 (0.33).

P R O F I T AT T R I B U TA B L E T O S H A R E H O L D E R S OF ELRINGKLINGER AG 1 S T HALF in € million

Financial Position and Cash Flows

The ElringKlinger Group remained solid with regard to its financial position and cash flows, recording an equity ratio of 46.3% and positive operating cash flow of EUR 71.8 million as of June 30, 2016.

Total assets grow to EUR 1,853 million

Compared to the year-end 2015, total assets expanded by 5.0% to EUR 1,853.3 million.

Among the Group's non-current assets, which account for around 60% of total assets, only property, plant, and equipment showed a relatively substantial increase. Due to the Group's significant investing activities, this item rose to EUR 858.0 million at the end of the first half and was up EUR 30.7 million on the carrying amount as of December 31, 2015.

Working capital (inventories and trade receivables) rose slightly compared to the figure recorded at the end of fiscal 2015 (EUR 609.1 million), up by 2.6% to EUR 624.7 million. Despite the customary expansion of stockpiling with regard to new projects, the Group maintained inventories at a stable level overall. Inventories amounted to EUR 323.3 million as of June 30, 2016, compared to EUR 321.9 million at the end of the last financial year. Excluding tools accounted for in inventories (EUR 79.0 million), other inventories at Group level fell slightly to EUR 244.3 million as of June 30, 2016 (Dec. 31, 2015: EUR 249.0 million). Trade receivables rose slightly to EUR 301.4 million, compared to EUR 287.2 million as of December 31, 2015.

Cash and cash equivalents increased by EUR 24.5 million to EUR 73.4 million.

As a result of acquisitions, total assets expanded only marginally by EUR 10.3 million in the first six months of 2016. These acquisitions consisted of the purchase, in April 2016, of interests in COdiNOx Beheer B.V., a Dutch subsidiary of Swiss-based Group entity Hug, as well as the takeover, in June 2016, of tooling specialist Maier Formenbau GmbH, headquartered in Bissingen/Teck, Germany.

As regards currency translation into the presentation currency, the euro, the slightly dilutive effect on total Group assets in the first quarter of 2016 was almost completely offset in the second quarter. Therefore, the aggregate impact for the first six months of the financial year can be considered negligible.

Equity ratio at 46%

As of June 30, 2016, equity accounted for by the ElringKlinger Group was up slightly at EUR 857.7 million, compared to EUR 855.7 million at the end of fiscal 2015. While the equity ratio fell slightly to 46.3% (Dec. 31, 2015: 48.5%), it was still well above the minimum target of 40%.

Revenue reserves at the end of the first half of 2016 include the dividend paid to shareholders of Elring-Klinger AG amounting to EUR 34.8 (34.8) million as well as net income attributable to shareholders of

EUR million	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Intangible assets	213.6	210.2	213.5
Property, plant and equipment	858.0	835.0	827.3
Other	36.1	35.3	33.7
Non-current assets	1,107.7	1,080.5	1,074.5
Inventories	323.3	323.1	321.9
Trade receivables	301.4	295.9	287.2
Other	120.9	110.0	82.2
Current assets	745.6	729.0	691.3
Total assets	1,853.3	1,809.5	1,765.8

CURRENT AND NON-CURRENT ASSETS

CURRENT AND NON-CURRENT LIABILITIES

EUR million	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Equity	857.7	864.1	855.7
Provisions for pensions	119.9	119.0	118.7
Non-current financial liabilities	349.2	318.8	326.1
Other	42.2	40.7	41.3
Non-current liabilities	511.3	478.5	486.1
Trade payables	83.0	89.9	85.9
Current financial liabilities	256.3	231.7	209.6
Other	145.0	145.3	128.4
Current liabilities	484.3	466.9	423.9

ElringKlinger AG for the first six months. As the latter exceeded the overall dividend payout, revenue reserves increased by EUR 5.0 million to EUR 633.9 million compared to the year-end 2015 (EUR 628.9 million).

Other reserves include foreign exchange translation differences and were down by EUR 2.2 million to EUR 8.9 million.

Higher financial liabilities fueled by company growth

Accounting for 53.7% of total equity and liabilities, Group liabilities as of June 30, 2016, stood at EUR 995.6 million, which was markedly higher than the figure recorded as of December 31, 2015 (EUR 910.0 million). This increase was attributable largely to the expansion of financial liabilities. Alongside cash flow from operating activities, they are used for the purpose of financing enterprise growth.

At the end of the first half of the financial year, financial liabilities as a whole stood at EUR 605.5 million, up from EUR 535.7 million as of December 31, 2015. The Group's net financial debt (current and non-current financial liabilities less cash) increased from EUR 486.8 million to EUR 532.1 million.

Trade payables fell slightly to EUR 83.0 million, down from a figure of EUR 85.9 million at the end of fiscal 2015.

Visible improvement in cash flow from operating activities

The ElringKlinger Group saw a substantial year-onyear improvement in cash flow from operating activities in the first half of 2016, which rose to EUR 71.8 (58.9) million despite a reduction in net income. Of this total, EUR 39.5 (26.7) million was generated in the first quarter and EUR 32.3 (32.2) million in the second quarter. This positive result is attributable first and foremost to lower additional absorption of funds in working capital. The change in inventories, trade receivables, and other assets not attributable to investing or financing activities and the change in trade payables and other liabilities not attributable to investing or financing activities produced a cash outflow of EUR 15.4 million in total. This, however, was significantly lower than the cash outflow recorded for the first half of 2015 (EUR 26.6 million).

The item comprising "Other non-cash expenses and income" mainly included forex effects, which at EUR 4.5 (-7.0) provided a boost to cash flow from operating activities in the reporting period.

NET CASH FROM OPERATING ACTIVITIES 1ST HALF in € million

Investing activities dominated by expansion of capacity levels

Payments made in connection with investments in property, plant, and equipment as well as investment property fell slightly to EUR 73.6 (75.9) million in the first half of 2016; of this figure, EUR 36.1 (40.7) million was attributable to the second quarter. The investment ratio (investments in relation to Group revenue) was 9.5% (10.1%) in the first six months of 2016, which, as expected, was just above the range of 7 to 9% targeted in the medium term by the company.

Investment spending was fueled by far-reaching measures aimed at expanding capacity levels as well as by the introduction of production machinery for key ramp-ups. From a geographic perspective, the emphasis here was on the growth regions of NAFTA, Europe, and Asia. The Original Equipment segment accounted for the majority of investments.

The cash outflow for investing activities at the principal site of Dettingen/Erms was mainly attributable to production machinery for the Specialty Gaskets and Plastic Housing Modules divisions. As regards the latter, construction work commenced on a modern logistics center. At ElringKlinger Kunststofftechnik GmbH in Bietigheim-Bissingen, Germany, payments were still made for production equipment needed for the new facility recently built by the company.

Since 2015, ElringKlinger Abschirmtechnik (Schweiz) AG, Sevelen, has been investing to an increasing extent in new manufacturing equipment aimed at expanding production output. Other cash outflows related to the plants in North America. At ElringKlinger Automotive Manufacturing, Inc., Southfield, USA, acquired in 2015, operations previously split among two outdated production plants were brought together at a new site in Southfield. This necessitated investments

CHANGES IN CASH 1 S T HALF 2016 in € million

1 Investments in property, plant and equipment, investment property and intangible assets

Dividends paid to shareholders and to non-controlling interests

in state-of-the-art production machinery for the manufacture of control plates used in automatic transmission systems. At its existing sites in Buford, USA, and Toluca, Mexico, ElringKlinger made investments to expand operations, among other things for the production of innovative lightweight underbody components made of glass-fiber-reinforced thermoplastics.

A considerable share of overall investments was directed at the Asian subsidiaries, the focus being on China. At the site in Suzhou construction work was largely completed on a new state-of-the-art facility that will offer a much larger production space. The plant was inaugurated at the beginning of June. Alongside lightweight components based on hybrid polymer-metal technology, such as cockpit cross-car beams, this site produces other parts for the Plastic Housing Modules/ Elastomer Technology and Shielding Technology divisions. The second Chinese production plant, located in Changchun, is currently being expanded, the focus being on the manufacture of cylinder-head gaskets and near-engine plastic housing modules.

The purchase price payments for the above-mentioned acquisitions were made in the second quarter of 2016 and resulted in a cash outflow of EUR 5.3 million. In the previous year, a payment of EUR 24.2 million had been made for the acquisition of the entity now known as ElringKlinger Automotive Manufacturing, Inc., Southfield, USA.

In total, net cash used in investing activities amounted to EUR 83.1 (105.4) million in the first six months of 2016. Operating free cash flow (cash flow from operating activities less cash flow from investing activities, adjusted for payments in respect of acquisitions) improved to EUR -5.9 (-22.3) million in the first half and to EUR -6.6 (-11.0) million in the second quarter of 2016.

More pronounced financing requirements in second quarter

Second-quarter cash flow from financing activities tends to be impacted significantly by interim financing of the dividend payment to shareholders and non-controlling interests. It amounted to EUR 37.7 (35.9) million in the quarter under review. In this period, the Group recorded a net cash inflow of EUR 53.1 (52.9) million from financial liabilities. In the first half, the net inflow from financial liabilities (having deducted cash outflows for principal repayments) was EUR 73.5 (84.1) million.

In the first six months of 2016 net cash from financing activities totaled EUR 35.7 (48.2) million; in the second quarter of 2016 it stood at EUR 15.4 (17.0) million.

As of June 30, 2016, cash held by the Group amounted to EUR 73.4 (74.6) million.

Opportunities and Risks

As regards the assessment of opportunities and risks for the ElringKlinger Group in respect of the second quarter of 2016, there were no fundamental changes to the details discussed in the 2015 Annual Report of the ElringKlinger Group (page 96 et seqq.).

There are currently no identifiable risks that might jeopardize the future existence of the Group as a going concern, either in isolation or in conjunction with other risk factors.

Following the decision by British voters to leave the European Union (Brexit referendum), the risks relating to economic performance have become more pronounced. Similarly, given the importance of the UK car market as the second-largest European sales market in 2015, the sector-specific risks to the automotive industry as a whole can be categorized as trending higher. The consequences of the UK leaving the European Union cannot be gauged in full at this moment in time. However, ElringKlinger does not anticipate any significant impact from Brexit on its own company. Its subsidiary Elring Klinger (Great Britain) Ltd. operates a production site in Redcar, United Kingdom, which manufactures mainly cylinder-head and specialty gaskets for the local market. The revenue share, calculated in relation to Group revenue for the 2015 financial year, was around 2%. Additionally, Elring Parts Ltd., based in Gateshead, United Kingdom, operates as a sales location for the company's aftermarket business in Britain.

The report on opportunities and risks from the 2015 Annual Report can also be accessed on the website of ElringKlinger at www.elringklinger.de/ar2015/reporton-opportunities-and-risks.

Report on Expected Developments

Outlook – Market and Sector

In its latest report on the global economic outlook, published in July 2016, the International Monetary Fund (IMF) delivered a slightly less favorable assessment of the prospects for the world economy than in its April update. It downgraded its forecast for global GDP growth in 2016 from 3.2% to 3.1%. The established economies are forecast to expand at a rate of 1.8% (April projection: 1.9%). The IMF's latest forecast for emerging market countries as a whole remains unchanged at 4.1%.

The global economic climate has deteriorated in the wake of the UK referendum decision, which will eventually lead to Britain's departure from the EU. At present, it is difficult to predict what impact Brexit will have on the UK economy with its strongly intertwined international profile, and consequently on the global economy. Alongside this uncertainty, economic growth in those emerging market countries which depend on exports of raw materials remains hampered by the continued weakness of commodity prices. Economists anticipate moderate growth in the United States and Western Europe. Although the slowdown in China is expected to persist, albeit at a more gradual rate, the solid upswing in India is projected to continue for the rest of the year. By contrast, Japan is likely to undergo further sluggish growth, despite state intervention to support the economy. There are currently no signs of recovery in either Brazil or Russia, which remain deep in recession.

G D P G R OW T H P R OJ EC T I O N S

2015	Projections 2016	Projections 2017
3.1	3.1	3.4
1.5	1.6	1.2
1.7	1.6	1.4
2.4	2.2	2.5
-3.8	-3.3	0.5
6.9	6.6	6.2
7.6	7.4	7.4
0.5	0.3	0.1

Source: International Monetary Fund (July 2016)

World's biggest automotive markets buck wider trend in 2016

According to the latest forecasts, the automotive industry is expected to show further growth in 2016 despite the general economic weakness affecting several countries. Based on data published by the VDA, Germany's automotive industry association, global passenger car sales are set to grow by 3% compared with the previous year and to reach over 80 million vehicles for the first time. The association increased its original forecast slightly to reflect the stronger than anticipated growth in the year to date, especially in Europe but also in China. The automotive market is clearly profiting from low fuel prices and cheap credit. Above all, the recovery is benefiting Germany's highly export-driven automotive industry, which has around 50% of the market in Western Europe and among the new EU member states respectively. At the same time, however, the outlook is somewhat dampened by concerns over the future impact of Brexit.

According to the VDA's latest forecasts, passenger car sales in Western Europe are set to increase by 5% to 13.8 million units over 2016 as a whole. In light of the higher comparative base for the second half of 2015 and the potential for more pronounced contraction in the UK vehicle market following the Brexit decision, the rate of growth in the second half of 2016 is not expected to match that of the first two quarters. Looking at 2016 in full, the industry will probably not yet reach the pre-crisis level of 14.7 million vehicles achieved in 2007. Thus, the outlook for Europe as a whole, remains positive.

Passenger car sales in Germany are forecast to increase by 3% to 3.3 million new registrations. German car production is expected to grow by 1% to reach a total volume of 5.8 million vehicles. According to the VDA, German exports are likely to remain at a stable level of 4.4 million units.

The US market is currently experiencing a slowdown. Nevertheless, market experts are still forecasting an increase of 1% to 17.5 million in sales of light vehicles.

The VDA expects passenger car sales in China, the world's biggest vehicle market, to grow by 8% to almost 21.7 million units.

The decline in Brazil and Russia is expected to continue, but at a less pronounced rate. Anfavea, Brazil's industry association, believes the downturn could flatten out by the end of the year. Japan is also expected to end the year in slightly negative territory.

Looking ahead over the medium term, industry experts expect the global vehicle market to grow at an average annual rate of between 2% and 3% up to 2020. Asia, the NAFTA countries, and Western Europe will continue to provide the main foundation in terms of absolute volumes. However, further expansion in the markets of NAFTA, Western Europe, and Japan is not anticipated. The main sources of growth will be other countries in Asia and other emerging market countries. Russia and South America could also expand from 2017 onwards. Once again, China is likely to retain its status as the country with the greatest growth potential in absolute terms.

Commercial vehicle markets 2016: Europe solid, US weak

For the European commercial vehicle market, 2016 is shaping up to be a fast-moving year with sales making up for the accumulated disappointments of recent years. In the heavy commercial vehicle category (above 6 metric tons), the VDA expects sales to grow by 8% to 280,000 over the year as a whole. This would be the best result since 2008. In Germany the market is forecast to grow by 4%.

Following strong growth in the last three years, the North American truck market is looking much weaker. Based on forecasts, sales of heavy trucks are likely to stabilize at a level that could be almost 20% down on the figure for 2015.

Given the wider economic downturn in Brazil, the local commercial vehicle industry is forecast to endure another weak year with further declines.

Outlook – Group

Order situation remains encouraging

ElringKlinger's order books remain solid. Order intake in the second quarter amounted to EUR 441.2 million, a year-on-year improvement of EUR 6.1 million or 1.4%. Taking into account the effects of foreign exchange rates, growth stood at EUR 16.4 million or 3.8%. On the back of the significant increase in order intake in the first quarter of 2016 compared to Q1 2015 – by a forex-adjusted figure of 9.2% – the Group continued to strengthen its foundations in the reporting period with a view to future organic growth.

Correspondingly, order backlog also improved. Compared to the prior-year figure, it rose by EUR 99.0 million or 12.6% to EUR 885.2 million. On a forex-adjusted basis, this figure expanded by as much as EUR 124.0 million or 15.8% to EUR 910.2 million.

Adjustment to earnings outlook for 2016

The Group fell short of its expectations in the two first quarters in terms of earnings performance. This was attributable primarily to the business unit within the Original Equipment segment impacted by capacity constraints and substantial fixed operating costs. Improvements seen in the first quarter failed to maintain their momentum in the second quarter to the extent originally expected. Additionally, it is considered unlikely that ground lost in the first half of the year can be recovered in the second six months.

Against this backdrop, ElringKlinger anticipates, at most, a slight year-on-year improvement in earnings for the transitional year of 2016 and has now set a guidance EBIT, before purchase price allocation, of EUR 140 to 150 million (previously: EUR 160 to 170 million).

As regards revenue, the Group has reaffirmed its outlook of organic growth in the range of 5 to 7%.

Review and partial adjustment of other indicators for fiscal year

The adjustments made to the Group's earnings guidance have also had an impact on other key performance indicators. At the beginning of 2016, the Group had anticipated that operating free cash flow would no longer be negative or would be only slightly within negative territory. Following the downward adjustment to the Group's earnings guidance, however, it would appear likely that operating free cash flow will also be correspondingly weaker at the end of the financial year. As budgeted, working capital is still expected to improve by around EUR 20 to 30 million compared to the prior-year figure, while capital expenditure in 2016 as a whole is likely to be comparable to the figure recorded for the previous financial year. Due to lower-than-expected earnings, the return on capital employed (ROCE) is at best likely to improve only slightly in the current financial year.

Medium-term targets remain unchanged

In the medium term, the Group continues to target organic revenue growth of 5 to 7% annually and an EBIT margin of 13 to 15% before purchase price allocation.

Events after the Reporting Period

No significant events requiring disclosure occurred after the reporting period.

Dettingen/Erms, August 4, 2016 The Management Board

Chairman/CEO

Dr. Stefan Wolf Theo Becker Thomas Jessulat

ElringKlinger and the Capital Markets

Equity markets plunge in the wake of Brexit referendum

The unanticipated outcome of Britain's referendum in favor of leaving the European Union prompted a slide in global stock prices towards the end of June – in some cases severe. Even in the weeks prior to the Brexit vote there were signs of widespread uncertainty among capital market players, the result of which was considerable price volatility.

Increasing concerns over the state of Europe's banking sector, further disappointment regarding economic data from China, and the significant appreciation of the Japanese yen following the decision by the Central Bank of Japan not to loosen its monetary policy any further despite low inflation exerted additional pressure on global equity markets in the second quarter of 2016. More favorable economic data from the eurozone, the agreement reached between the euro group and the IMF to finalize a new debt deal for Greece, and the stable price of oil only provided temporary support for the markets.

Germany's blue chip index, the DAX, was well into negative territory at the end of the first half of 2016 – down 9.9% at 9,680 points. By contrast, the downward trend seen within the mid- and small-cap indices was less severe. The MDAX closed the first six months at 19,843 points, down 4.5%. The SDAX recorded a loss of 3.5% in the same period, taking it to 8,782 points.

ElringKlinger shares engulfed by downturn swing afflicting automotive stocks

Having completed the fourth quarter of 2015 at EUR 23.50, ElringKlinger's share price initially took a slight turn for the worse at the beginning of 2016, thus trending in line with the market as a whole. The announcement of ElringKlinger's preliminary results for the 2015 financial year towards the end of February saw a favorable response by the capital markets, which in turn provided a positive stimulus for stock prices in the subsequent period. This trend was to continue until the end of March, culminating at the end of the first quarter of 2016 in a price of EUR 24.09 for ElringKlinger shares, the highest in the year to date.

Subsequently, both geopolitical and macroeconomic factors – and sector-specific factors in particular – had an impact on equity prices. This affected not only ElringKlinger but also many other stocks within the vehicle and automotive supply industry. Caught up in this general maelstrom, ElringKlinger's share price fell by 24.9% in the first half of 2016. Even positive news from the company, such as the presentation in May of solid financial results for the first quarter 2016 and the announcement of a major serial-production contract for lightweight components in June, failed to provide any lasting impetus. As of June 30, 2016, ElringKlinger's share price stood at EUR 17.64.

E LRING KLINGER'S SHARE PRICE PERFORMANCE (XETRA) SINCE JANUARY 1, 2016 compared with DAX, MDAX and SDAX

Trading volume up slightly year on year in first half of 2016

The trading volume of ElringKlinger shares for the first six months of 2016 remained strong, with a figure that was comparable to that recorded for the same period a year ago. The average volume of ElringKlinger shares traded per day was up slightly by 4.9% to 189,300 (180,400) units. The average daily value of shares traded on German stock exchanges was EUR 4,027,600 (5,031,100) in the period under review. ElringKlinger's stock thus also offered sufficiently high levels of liquidity for institutional investors to conduct larger share transactions.

Communicating with the capital markets at road shows and local venues

ElringKlinger took part in four road shows and five capital market conferences in the second quarter of 2016. The focus of investor relations activities was on the European financial centers of Frankfurt/Main, Zurich, London, and Paris. The company also attended events in Brussels, Copenhagen, Edinburgh, Berlin, and Baden-Baden, where it addressed a group of international, mainly institutional, investors. Private investors with an interest in the stock market will have the chance to meet up with ElringKlinger on October 11, 2016, when the company will present its business model at an event organized by Schutzgemeinschaft der Kapitalanleger e.V. (SdK) in Rothenburg ob der Tauber.

ElringKlinger also maintains a close dialogue with capital market participants by organizing events on its own premises – demand among investors for company visits remains strong. Meetings with institutional investors are organized on a regular basis at ElringKlinger's corporate headquarters in Dettingen/ Erms. Additionally, in mid-June a group of investors was given the chance to discover first-hand the range of ElringKlinger expertise by visiting the company's Hessian facilities in Runkel and Idstein, Germany.

AGM 2016 approves dividend payment of EUR 0.55

Addressing an audience of around 800 shareholders, shareholder representatives, and guests attending the 111th Annual General Meeting of ElringKlinger AG on May 31, 2016, which was held at the Liederhalle Cultural and Congress Center in Stuttgart, CEO Dr. Stefan Wolf reviewed the 2015 financial year just ended. In his speech he highlighted the fact that the Group had lifted revenue to beyond the EUR 1.5 billion mark for the very first time, in addition to providing a detailed account of earnings performance.

The resolutions put forward were passed by large majorities in each case by the Annual General Meeting. Shareholders approved the proposal put forward by the Management Board and Supervisory Board for a dividend payment of EUR 0.55 (0.55) per share for fiscal 2015, unchanged on the previous financial year. Despite the exceptional charges recorded in the Original Equipment segment, the total dividend payout remained unchanged year on year at EUR 34.8 (34.8) million. Based on net income attributable to the shareholders of ElringKlinger AG, the dividend ratio increased to 38.0% (32.9%).

	1st Half 2016	1st Half 2015
Number of shares outstanding	63,359,990	63,359,990
1 Share price (daily closing price in EUR)
High	24.09	32.18
Low	16.79	24.08
Closing price as of June 30	17.64	24.12
Average daily trading volume (German stock exchanges; no. of shares traded)	189,300	180,400
Average daily trading value (German stock exchanges; in EUR)	4,027,600	5,031,100
Market capitalization as of June 30 (EUR millions)	1,117.7	1,528.2

ELRINGKLINGER STOCK (ISIN DE 0007856023)

Group Income Statement

of ElringKlinger AG, January 1 to June 30, 2016

EUR k	2nd Quarter 2016	2nd Quarter 2015	1st Half 2016	1st Half 2015
Sales revenue	390,870	379,715	776,077	751,125
Cost of sales	-293,170	-282,649	-580,879	-558,500
Gross profit	97,700	97,066	195,198	192,625
Selling expenses	-28,904	-26,909	-56,869	-52,661
General and administrative expenses	-19,520	-17,389	-41,033	-36,291
Research and development costs	-16,053	-15,832	-33,358	-32,169
Other operating income	4,514	3,485	7,506	6,621
Other operating expenses	-2,532	-2,131	-5,473	-4,474
Operating result	35,205	38,290	65,971	73,651
Finance income	3,208	-1,387	6,094	12,733
Finance costs	-5,802	-5,114	-15,017	-15,719
Net finance costs	-2,594	-6,501	-8,923	-2,986
Earnings before taxes	32,611	31,789	57,048	70,665
Income tax expense	-9,098	-9,783	-15,607	-19,458
Net income	23,513	22,006	41,441	51,207
of which: attributable to non-controlling interests	922	1,041	1,632	2,038
of which: attributable to shareholders of ElringKlinger AG	22,591	20,965	39,809	49,169
Basic and diluted earnings per share in EUR	0.36	0.33	0.63	0.78

Group Statement of Comprehensive Income

of ElringKlinger AG, January 1 to June 30, 2016

EUR k	2nd Quarter 2016	2nd Quarter 2015	1st Half 2016	1st Half 2015
Net income	23,513	22,006	41,441	51,207
Currency translation difference	7,249	-11,262	-2,142	39,932
Gains and losses that can be reclassified to
the income statement in future periods	7,249	-11,262	-2,142	39,932
Other comprehensive income after taxes	7,249	-11,262	-2,142	39,932
Total comprehensive income	30,762	10,744	39,299	91,139
of which: attributable to non-controlling interests	1,235	677	1,525	3,501
of which: attributable to shareholders of ElringKlinger AG	29,527	10,067	37,774	87,638

Group Statement of Financial Position

of ElringKlinger AG, as at June 30, 2016

EUR k	June 30, 2016	Dec. 31, 2015	June 30, 2015
ASSETS
Intangible assets	213,649	213,542	218,136
Property, plant and equipment	858,017	827,259	779,013
Investment property	15,880	14,242	11,571
Financial assets	1,261	1,255	1,742
Non-current income tax assets	895	875	1,527
Other non-current assets	2,685	3,218	5,800
Deferred tax assets	15,263	14,108	9,826
Non-current assets	1,107,650	1,074,499	1,027,615
Inventories	323,266	321,902	333,228
Trade receivables	301,359	287,229	287,627
Current income tax assets	5,846	2,507	6,739
Other current assets	41,714	30,731	35,730
Cash and cash equivalents	73,439	48,925	74,621
Current assets	745,624	691,294	737,945
	1,853,274	1,765,793	1,765,560

LIABILITIES AND EQUITY
Share capital	63,360	63,360	63,360
Capital reserves	118,238	118,238	118,238
Revenue reserves	633,894	628,933	586,526
Other reserves	8,868	11,098	28,186
Equity attributable to the shareholders of ElringKlinger AG	824,360	821,629	796,310
Non-controlling interest in equity	33,333	34,102	34,120
Equity	857,693	855,731	830,430
Provisions for pensions	119,858	118,744	126,925
Non-current provisions	14,430	12,340	17,185
Non-current financial liabilities	349,179	326,092	300,316
Deferred tax liabilities	23,507	25,114	27,439
Other non-current liabilities	4,325	3,829	5,297
Non-current liabilities	511,299	486,119	477,162
Current provisions	18,592	16,423	19,381
Trade payables	83,041	85,939	97,209
Current financial liabilities	256,299	209,597	216,928
Tax payable	21,767	18,702	23,254
Other current liabilities	104,583	93,282	101,196
Current liabilities	484,282	423,943	457,968
	1,853,274	1,765,793	1,765,560

EUR k June 30, 2016 Dec. 31, 2015 June 30, 2015

Group Statement of Changes in Equity

of ElringKlinger AG, January 1 to June 30, 2016

Share	Capital	Revenue
capital	reserves	reserves
63,360	118,238	572,205
		-34,848
		49,169
		49,169
63,360	118,238	586,526
63,360	118,238	628,933
		-34,848
		39,809
		39,809
		633,894
		63,360 118,238

				Other reserves
Non-controlling interests in equity Group equity	Equity attributable to the shareholders of ElringKlinger AG	Currency translation differences	Equity impact of controlling interests	Remeasurement of defined benefit plans
31,674 775,194	743,520	25,033	2,033	-37,349
-1,055 -35,903	-34,848
3,501 91,139	87,638	38,469
2,038 51,207	49,169
1,463 39,932	38,469	38,469
34,120 830,430	796,310	63,502	2,033	-37,349
34,102 855,731	821,629	44,100	-17	-32,985
-2,848 -37,696	-34,848
521 521
33 -162	-195		-195
1,525 39,299	37,774	-2,035
1,632 41,441	39,809
-107 -2,142	-2,035	-2,035
33,333 857,693	824,360	42,065	-212	-32,985

Group Statement of Cash Flows

of ElringKlinger AG, January 1 to June 30, 2016

EUR k	2nd Quarter 2016	2nd Quarter 2015	1st Half 2016	1st Half 2015
Earnings before taxes	32,611	31,789	57,048	70,665
Depreciation/amortization (less write-ups) of
non-current assets	23,259	21,484	45,649	42,202
Net interest	3,394	3,103	6,328	6,062
Change in provisions	508	-137	3,920	2,032
Gains/losses on disposal of non-current assets	-12	0	164	-4
Change in inventories, trade receivables and other assets not resulting from financing and investing activities	-889	-9,864	-29,677	-61,419
Change in trade payables and other liabilities not resulting from financing and investing activities	-7,965	-6,674	14,257	34,845
Income taxes paid	-14,181	-12,469	-25,238	-24,122
Interest paid	-2,736	-2,246	-5,286	-4,432
Interest received	61	89	123	128
Other non-cash expenses and income	-1,763	7,130	4,533	-7,037
Net cash from operating activities	32,287	32,205	71,821	58,920
Proceeds from disposals of property, plant and
equipment, intangible assets and investment property	191	361	295	449
Proceeds from disposals of financial assets	243	3	247	12
Payments for investments in intangible assets	-2,906	-2,944	-4,413	-5,808
Payments for investments in property, plant and equipment and investment property	-36,119	-40,663	-73,639	-75,889
Payments for investments in financial assets	-248	-2	-248	-5
Payments for the acquisition of subsidiaries and other entities, less cash	-5,323	0	-5,323	-24,151
Net cash from investing activities	-44,162	-43,245	-83,081	-105,392
Payments to non-controlling interests for the purchase of shares	0	0	-163	0
Dividends paid to shareholders and to non-controlling interests	-37,696	-35,903	-37,696	-35,903
Proceeds from the addition of financial liabilities	58,837	57,589	89,040	112,585
Payments for the repayment of financial liabilities	-5,695	-4,702	-15,518	-28,463
Net cash from financing activities	15,446	16,984	35,663	48,219
Changes in cash	3,571	5,944	24,403	1,747
Effects of currency exchange rates on cash	1,308	-2,295	111	4,141
Cash at beginning of period	68,560	70,972	48,925	68,733
Cash at end of period	73,439	74,621	73,439	74,621

Group Sales by Region

EUR k	2nd Quarter 2016	2nd Quarter 2015	1st Half 2016	1st Half 2015
Germany	102,194	102,836	203,697	205,083
Rest of Europe	130,517	121,676	257,851	241,279
NAFTA	75,057	75,754	149,398	145,927
Asia-Pacific	68,871	64,773	137,024	128,687
South America and Other	14,231	14,676	28,107	30,149
Group	390,870	379,715	776,077	751,125

Segment Reporting

of ElringKlinger AG, April 1 to June 30, 2016

Segment	Original Equipment		Aftermarket		Engineered Plastics
EUR k	2016	2015	2016	2015	2016	2015
Sales revenue	323,017	314,672	38,964	37,195	25,414	24,578
Intersegment revenue	4,950	7,201	0	2	24	118
Segment revenue	327,967	321,873	38,964	37,197	25,438	24,696
EBIT1/Operating result	21,996	26,965	8,786	7,125	4,099	3,459
Depreciation and amortization	-20,897	-19,405	-521	-496	-1,228	-1,170
Capital expenditures2	35,837	34,186	399	637	2,352	5,903

January 1 to June 30, 2016

Segment	Original Equipment		Aftermarket		Engineered Plastics
EUR k	2016	2015	2016	2015	2016	2015
Sales revenue	639,309	623,542	78,295	71,375	51,603	50,136
Intersegment revenue	11,699	13,400	0	75	45	371
Segment revenue	651,008	636,942	78,295	71,450	51,648	50,507
EBIT1/Operating result	42,264	52,596	16,617	13,635	6,233	5,960
Depreciation and amortization	-41,063	-38,068	-991	-943	-2,456	-2,369
Capital expenditures2	70,221	64,819	780	1,379	3,963	9,810

Earnings before interest and taxes

² Investments in intangible assets, property, plant and equipment and investment property

	Industrial Parks	Services			Consolidation	Group
2015	2016	2016	2015	2016	2015	2016	2015
1,129	1,016	2,459	2,141	0	0	390,870	379,715
59	60	1,599	1,664	-6,633	-9,044	0	0
1,188	1,076	4,058	3,805	-6,633	-9,044	390,870	379,715
250	-19	343	491			35,205	38,290
-101	-224	-389	-312			-23,259	-21,484
102	460	1,085	2,779			40,133	43,607

Industrial Parks		Services		Consolidation		Group
2016	2015	2016	2015	2016	2015	2016	2015
1,958	2,237	4,912	3,835	0	0	776,077	751,125
118	117	3,087	2,878	-14,949	-16,841	0	0
2,076	2,354	7,999	6,713	-14,949	-16,841	776,077	751,125
-104	515	961	945			65,971	73,651
-430	-199	-709	-623			-45,649	-42,202
2,254	145	1,942	5,544			79,160	81,697

Notes to the First Half of 2016

ElringKlinger AG is an exchange-listed stock corporation headquartered in Dettingen/Erms, Germany.

The accompanying condensed consolidated interim financial statements of ElringKlinger AG and its subsidiaries as of June 30, 2016, have been prepared on the basis of IAS 34 (Interim Financial Reporting). The interim financial statements conform with the International Financial Reporting Standards (IFRS), including the Interpretations issued by the IFRS Interpretations Committee, as adopted by the European Union.

As the consolidated interim financial statements are presented in a condensed format, the financial statements as of June 30, 2016, do not include all information and disclosures required under IFRS for annual consolidated financial statements.

The consolidated interim financial statements as of June 30, 2016, have been neither audited not reviewed in any way by an independent auditor.

They were authorized for issue based on a resolution passed by the Management Board on August 4, 2016.

Basis of reporting

Scope of consolidated financial statements

Alongside the financial statements of ElringKlinger AG, the interim financial statements as of June 30, 2016, include the financial statements of eight domestic and 33 foreign entities in which ElringKlinger AG holds more than 50% of the interests, either directly or indirectly, or over which, for other reasons, it has the power to govern the financial and operating policies ("Control"). Inclusion in the consolidated group commences on the date on which control is obtained; it ceases as soon as control no longer exists.

Compared to the consolidated financial statements as of December 31, 2015, there were no changes to the scope of consolidation with the exception of the acquisition of COdiNOx Beheer B.V., Enschede, Netherlands.

Corporate acquisition

Effective from April 11, 2016, Hug Engineering AG, based in Elsau, Switzerland, a 93.67% subsidiary of ElringKlinger AG, acquired 80% of the interests in COdiNOx Beheer B.V., based in Enschede, Netherlands, after the subsidiaries of the latter had previously been merged into COdiNOx Beheer B.V. Subsequently, COdiNOx Beheer B.V. changed its company name to Hug Engineering B.V. As of this date, Hug Engineering AG holds 90% of the interests.

The acquisition is aimed at exploiting synergies and leveraging growth potential for Hug exhaust gas purification systems, in addition to unlocking new markets.

The purchase price agreed with regard to the interest acquired was EUR 4,500k. The costs related to the transaction, amounting to EUR 124k to date, were recognized as general and administrative expenses.

The assets and liabilities of the acquired interests were measured at the fair value as of the date of acquisition. Within this context, an excess of EUR 374k was recognized as goodwill, having additionally accounted for deferred tax liabilities (EUR 959k) on hidden reserves realized (EUR 3,916k). The aforementioned goodwill was paid primarily in respect of the favorable earnings prospects as well as anticipated synergies.

This goodwill is not tax deductible.

Due to the first-time full consolidation of the entity, Group revenue in the first half of the year increased by EUR 1,628k and earnings before taxes by EUR 92k. Had the acquisition become effective as early as January 1, 2016, COdiNOx Beheer B.V. would have contributed EUR 3,440k to consolidated revenue and would have increased earnings before taxes by EUR 241k. The interests recognized at amortized cost as of the date of acquisition were remeasured at their fair value of EUR 563k upon acquisition of the additional interests. The transition to full consolidation resulted in non-cash income of EUR 561k, which was recognized as other operating income.

33

	IFRS carrying amount at date	Purchase price	Fair value at
EUR k	of purchase	allocation	date of purchase
Intangible assets	11	3,916	3,927
Property, plant, and equipment	297	-	297
Inventories	1,108	-	1,108
Trade receivables	1,179	-	1,179
Other current assets	112	-	112
Cash and cash equivalents	973	-	973
Total assets	3,680	3,916	7,596
Deferred tax liabilities	25	959	984
Current provisions	120	-	120
Trade payables	598	-	598
Tax liabilities	228	-	228
Other current liabilities	456	-	456
Total liabilities	1,427	959	2,386
Net assets	2,253	2,957	5,210
Goodwill			374
Fair value of previously held interests 10%			-563
Non-controlling interests in net assets			-521
Purchase price			4,500

The preliminary allocation of the purchase price to assets and liabilities is presented in the table below:

No contingent liabilities were identified during the acquisition procedure.

The fair values presented for the respective assets and liabilities are provisional.

Effective from June 1, 2016, ElringKlinger AG took over the business operations of the insolvent die and tool maker Maier Formenbau GmbH, with its registered office in Bissingen/Teck, Germany. All necessary assets of Maier Formenbau GmbH were acquired and integrated within ElringKlinger AG (asset deal) for the purpose of continuing business operations.

In completing this takeover, ElringKlinger AG has extended its existing competencies and capacity levels within the area of tooling. Maier Formenbau GmbH specializes in the production and repair of technically complex injection-molding tools.

The purchase price agreed with regard to the acquisition was EUR 1,796k. Transaction-related costs have not yet been accounted for in the context of this takeover.

The assets and liabilities were measured at the fair value as of the date of acquisition. No hidden reserves were identified. The excess of EUR 164k was recognized as goodwill. It was paid primarily in respect of synergies.

This goodwill is tax deductible.

IFRS carrying amount at date of purchase	Purchase price allocation	Fair value at date of purchase
944	-	944
1,244	-	1,244
2,188	-	2,188
556	-	556
556	-	556
1,632	-	1,632
		164
		1,796

The preliminary allocation of the purchase price to assets and liabilities is presented in the table below:

No contingent liabilities were identified during the acquisition procedure.

The fair values presented for the respective assets and liabilities are provisional.

Acquisition of non-controlling interests

Effective from February 18, 2016, ElringKlinger AG acquired the former non-controlling interests of 5% relating to the subsidiary new enerday GmbH, with its registered office in Neubrandenburg, Germany. The purchase price amounted to EUR 162.5k. The thus resulting difference between this amount and the amount recognized in respect of non-controlling interests was accounted for directly in equity.

Since the conclusion of this transaction, Elring-Klinger AG has held 80% of the ownership interests.

Exchange rates

Exchange rates developed as follows:

Currency	Abbr.	Closing rate June 30, 2016	Closing rate Dec. 31, 2015	Average rate Jan.–Jun. 2016	Average rate Jan.–Dec. 2015
US dollar (USA)	USD	1.11020	1.08870	1.11420	1.10455
Pound (United Kingdom)	GBP	0.82650	0.73395	0.78501	0.72420
Swiss franc (Switzerland)	CHF	1.08670	1.08350	1.09807	1.06458
Canadian dollar (Canada)	CAD	1.43840	1.51160	1.46780	1.42505
Real (Brazil)	BRL	3.58980	4.31170	4.07247	3.74256
Mexican peso (Mexico)	MXN	20.63470	18.91450	20.01773	17.67058
RMB (China)	CNY	7.37550	7.06080	7.29560	6.94708
WON (South Korea)	KRW	1,278.48000	1,280.78000	1,311.19000	1,254.24583
Rand (South Africa)	ZAR	16.44610	16.95300	16.98745	14.28050
Yen (Japan)	JPY	114.05000	131.07000	123.91833	133.63083
Forint (Hungary)	HUF	317.06000	315.98000	313.46833	309.58667
Turkish lira (Turkey)	TRY	3.20600	3.17650	3.22795	3.03973
Leu (Romania)	RON	4.52340	4.52400	4.49898	4.44073
Indian rupee (India)	INR	74.96030	72.02150	74.92100	71.00952
Indonesian rupiah (Indonesia)	IDR	14,601.70000	15,039.99000	14,894.81333	14,890.80750
Bath (Thailand)	THB	39.00700	39.24800	39.40317	38.00325

Disclosures relating to financial instruments

This section provides a comprehensive overview of the significance of financial instruments and offers additional information on line items of the statement of financial position containing financial instruments. There was no offsetting of financial instruments recognized by the company.

The following table shows the carrying amounts (CA) and fair values (FV) of financial assets:

	Cash	Trade re ceivables	Other current assets	Deriva tives	Non-current securities			Other financial investments
EUR k	CA	CA	CA	CA	CA	FV	CA	FV	CA
as of June 30, 2016
Loans and receivables	73,439	301,359	4,536	0	0	0	8	8	379,342
held to maturity	0	0	0	0	1,050	1,039	0	0	1,050
held for trading	0	0	0	1	0	0	0	0	1
available for sale	0	0	0	0	199	199	4	4	203
Total	73,439	301,359	4,536	1	1,249	1,238	12	12	380,596
as of June 30, 2016
Loans and receivables	48,925	287,229	1,403	0	0	0	10	10	337,567
held to maturity	0	0	0	0	1,042	1,043	0	0	1,042
held for trading	0	0	0	11	0	0	0	0	11
available for sale	0	0	0	0	191	191	12	12	203
Total	48,925	287,229	1,403	11	1,233	1,234	22	22	338,823

The following table shows the carrying amounts (CA) and fair values (FV) of financial liabilities:

	Other current liabilities	Current financial liabilities	Finance leases		Trade payables
EUR k	CA	CA	CA	FV	CA
as of June 30, 2016
Financial liabilities measured at acquisition cost	53,440	256,299	0	0	83,041
Financial liabilities measured at fair value through profit or loss	0	0	0	0	0
No measurement category under IAS 39	0	0	147	153	0
as of Dec. 31, 2015
Financial liabilities measured at acquisition cost	49,374	209,445	0	0	85,939
Financial liabilities measured at fair value through profit or loss	0	0	0	0	0
No measurement category under IAS 39	0	0	152	158	0

		Derivatives		Non-current financial liabilities	Finance leases		Total
EUR k		FV	CA	FV	CA	FV	CA
as of June 30, 2016
Financial liabilities measured at acquisition cost	0	0	348,916	341,885	0	0	741,696
Financial liabilities measured at fair value through profit or loss	6	6	0	0	0	0	6
No measurement category under IAS 39	0	0	0	0	263	287	410
as of Dec. 31, 2015
Financial liabilities measured at acquisition cost	0	0	325,782	326,768	0	0	670,540
Financial liabilities measured at fair value through profit or loss	182	182	0	0	0	0	182
No measurement category under IAS 39	0	0	0	0	310	339	462

The other current liabilities include a purchase price liability of EUR 35,153k (2015: EUR 35,153k) in respect of a written put option, which has been measured at amortized cost.

The management has ascertained that the carrying amounts of cash, trade receivables, other receivables, trade payables, other current financial liabilities, and other current liabilities largely correspond to their fair values, primarily as a result of the short maturities of these instruments.

The fair values of other financial instruments held to maturity are based on prices in an active market as of the end of the reporting period.

ElringKlinger determines the market value of noncurrent fixed-interest liabilities to banks, finance lease liabilities, and derivatives by discounting expected future cash flows with the current prevailing interest rates for similar financial liabilities with comparable residual terms and the company-specific interest rate.

The fair value of the put option, included in other current liabilities, of non-controlling interests in ElringKlinger Marusan Corporation, Tokyo, Japan, in respect of their interests is based on corporate projections of the enterprise value. As regards the valuation of this put option of non-controlling interests, estimates are made with regard to the forecast of business performance as well as with regard to the choice of the interest rate to be applied in respect of the liability to be recognized. A change in the enterprise value by 10% would result in an increase/decrease in the put option by approx. EUR 3,515k.

Financial assets and liabilities measured at fair value are classified into the following three-level fair value hierarchy as of the end of the reporting period of June 30, 2016:

EUR k	Level 1	Level 2	Level 3
June 30, 2016
Financial assets
Non-current securities	199	0	0
Other financial investments	4	0	0
Derivatives*	0	1	0
Total	203	1	0
Financial liabilities
Derivatives*	0	6	0
Total	0	6	0
Dec. 31, 2015
Financial assets
Non-current securities	191	0	0
Other financial investments	12	0	0
Derivatives*	0	11	0
Total	203	11	0
Financial liabilities
Derivatives*	0	182	0
Total	0	182	0

* These are derivatives that do not qualify for hedge accounting.

The following table provides details of the classification of financial assets and liabilities that are not measured at fair value but for which a fair value has been presented, according to the three-level fair value hierarchy as of the end of the reporting period of June 30, 2016:

EUR k	Level 1	Level 2	Level 3
June 30, 2016
Financial assets
Non-current securities	1,039	0	0
Other financial investments	0	0	8
Total	1,039	0	8
Financial liabilities
Non-current liabilities from finance leases	0	0	287
Non-current financial liabilities	0	341,885	0
Purchase price liability from written put option	0	0	35,153
Total	0	341,885	35,440
Dec. 31, 2015
Financial assets
Non-current securities	1,043	0	0
Other financial investments	0	0	10
Total	1,043	0	10
Financial liabilities
Non-current liabilities from finance leases	0	0	339
Non-current financial liabilities	0	326,768	0
Purchase price liability from written put option	0	0	35,153
Total	0	326,768	35,492

The levels of the fair value hierarchy are defined as follows:

Level 1: Measurement based on quoted prices

• Level 2: Measurement based on inputs for the asset or liability that are observable in active markets either directly or indirectly
• Level 3: Measurement based on inputs for assets and liabilities not representing observable market data

The assessment as to whether a transfer has occurred between the levels of the fair-value hierarchy with regard to the assets and liabilities carried at fair value is conducted in each case at the end of the reporting period. No transfers occurred in the reporting period under review.

Contingencies and related-party disclosures

The contingencies and related-party relationships disclosed in the consolidated financial statements for 2015 were not subject to significant changes in the first half of 2016.

Segment reporting

As from 2016, internal reporting is conducted solely on the basis of earnings before interest and taxes (EBIT). As segment reporting pursuant to IFRS 8 is based on internal reporting, earnings before taxes (EBT) and interest expense/income will no longer be disclosed.

Government grants

As a result of government grants received, other operating income rose by EUR 3,257k in the first half of 2016, of which a total of EUR 1,457k was attributable to the first quarter of 2016. These grants were attributable primarily to development projects.

Dividend payment

In the second quarter of 2016, ElringKlinger AG distributed a total dividend of EUR 34,848k (EUR 0.55 per entitled share) to shareholders from its unappropriated retained earnings of 2015. The dividend payout took place on June 1, 2016.

Other information

Mr. Karl Schmauder stepped down from his post as member of the Management Board of Elring-Klinger AG effective from February 23, 2016. Mr. Schmauder had been responsible for Original Equipment Sales and New Business Areas. A provision was recognized for compensation of EUR 2,314k still outstanding in respect of the remainder of the employment contract up to January 31, 2018.

At its meeting on March 3, 2016, Deutsche Börse resolved on changes to the composition of its stock market indices. Formerly listed in the MDAX, Elring-Klinger AG left the aforementioned index and joined the SDAX effective from March 21, 2016. The composition of indices for the German stock market is governed by two criteria: market capitalization of free float and average trading volume of the shares in question. ElringKlinger AG is positioned at the lower end of the rankings in respect of both listing criteria, as a result of which it had to vacate the MDAX.

Events after the reporting period

There were no significant events after the end of the interim reporting period that necessitate additional explanatory disclosure.

Responsibility Statement

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position, and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.

Dettingen/Erms, August 4, 2016 The Management Board

Chairman/CEO

Dr. Stefan Wolf Theo Becker Thomas Jessulat

Imprint

ElringKlinger AG

Max-Eyth-Straße 2 D-72581 Dettingen/Erms Phone +49 (0)71 23/724-0 Fax +49 (0)71 23/724-90 06 www.elringklinger.com

IR Contact

Dr. Jens Winter Phone +49 (0)71 23/724-88335 Fax +49 (0)71 23/724-85 8335 jens.winter@elringklinger.com

Further information is available at www.elringklinger.com

Disclaimer – Forward-looking Statements and Forecasts

This report contains forward-looking statements. These statements are based on expectations, market evaluations and forecasts by the Management Board and on information currently available to them. In particular, the forward-looking statements shall not be interpreted as a guarantee that the future events and results to which they refer will actually materialize. Whilst the Management Board is confident that the statements as well as the opinions and expectations on which they are based are realistic, the aforementioned statements rely on assumptions that may conceivably prove to be incorrect. Future results and circumstances depend on a multitude of factors, risks and imponderables that can alter the expectations and judgments that have been expressed. These factors include, for example, changes to the general economic and business situation, variations of exchange rates and interest rates, poor acceptance of new products and services, and changes to business strategy.

ElringKlinger AG assumes no responsibility for data and statistics originating from third-party publications.

This report was published on August 4, 2016, and is available in German and English. Only the German version shall be legally binding.

Financial Calendar

Interim Report on the 3rd Quarter and First Nine Months of 2016

MARCH 2017

Annual Press Conference, Stuttgart Analysts' Meeting, Frankfurt/Main

MAY 2017 16 112th Annual General

Shareholders' Meeting, Stuttgart, Cultural and Congress Center Liederhalle, 10:00 a.m. CEST

Calendar Trade Fairs 2016

AUG./SEP.	29– 01	ONS 2016, Stavanger, Norway
SEPTEMBER	06– 09	SMM, Hamburg, Germany
	13– 17	Automechanika, Frankfurt/Main, Germany
	20– 23	InnoTrans, Berlin, Germany
OCTOBER	10– 12	The Aachen Colloquium Automobile and Engine Technology, Aachen, Germany
	19– 26	K-The World's No.1 Trade Fair for Plastics and Rubber, Düsseldorf, Germany
NOVEMBER	09– 11	The Aachen Colloquium China Automobile and Engine Technology, Beijing, China
	14– 17	COMPAMED, Düsseldorf, Germany
NOV./DEC.	29– 01	Valve World Expo, Düsseldorf, Germany
	30– 02	Automechanika, Shanghai, China
DECEMBER	06– 07	International CTI Symposium, Berlin, Germany
	13– 15	POWER-GEN USA, Las Vegas, USA

For further events and trade fairs please visit our websites: www.elringklinger.de/en/press /dates-events www.elringklinger-kunststoff.de/english/ service/trade-fair-dates www.hug-engineering.com/en/news /exhibitions

ElringKlinger AG Max-Eyth-Straße 2 72581 Dettingen /Erms (Germany)