OHB SE — Interim / Quarterly Report 2017

Aug 10, 2017

3-MONATSZWISCHENBERICHT 2017 Q2/6M INTERIM REPORT 2017

TOTAL REVENUES INCREASED TO EUR 354 MILLION (+12%) EBITDA INCREASED TO EUR 25.8 MILLION (+7%) EBIT INCREASED TO EUR 19.3 MILLION (+5%) EBT INCREASED TO EUR 17.8 MILLION (+13%)

GALILEO BATCH 3, HEINRICH HERTZ PLUS TANK AND STRUCTURAL COMPONENTS FOR ARIANE 6: ORDER INTAKE IN TOTAL OF EUR 800 MILLION

ORDER BOOKS INCREASED SIGNIFICANTLY TO EUR 2,220 MILLION

NANO-SATELLITE MAX VALIER LAUNCHED SUCCESSFULLY

OHB SE AT A GLANCE

OHB SE is a European space flight and technology Group and one of the most important independent forces in European aviation/aerospace industry. With more than 35 years of experience in developing and executing innovative space technology systems and projects and its range of specific aviation/aerospace and telematics products, the OHB Group is superbly positioned to face international competition.

Over the last few years, it has broadened its geographic footprint within Europe and now has facilities in important ESA member countries. These strategic decisions on locations allow the Group to participate in numerous European programmes and missions. The two "Space Systems" and "Aerospace + Industrial Products" business units reflect the convergence of these activities and the focus on specific core skills.

The "Space Systems" business unit focuses on developing and executing space projects. In particular, it is responsible for developing and fabricating low-orbiting and geostationary small satellites for navigation, research, communications and earth observation including scientific payloads. Its manned space flight activities chiefly entail the assembly and operation of the International Space Station ISS. The exploration segment works on studies and models for exploring our solar system, primarily the Moon and Mars. In addition, efficient reconnaissance satellites and broadband wireless transmission of image data form core technologies for security and reconnaissance.

The "Aerospace + Industrial Products" business unit is primarily responsible for fabricating aviation and space products as well as other industrial activities. In this area, OHB has established itself as a leading supplier of aerospace structures for the aviation and space industry; among other things, it is the largest German vendor of components for the Ariane 5 programme. In addition, OHB is an experienced vendor of mechatronic systems for antennas and telescopes and is involved in several major radio telescope projects. OHB telematics systems serve the logistics industry around the world by offering efficient transport management and consignment tracking facilities.

DEAR SHAREHOLDERS, CUSTOMERS AND BUSINESS ASSOCIATES,

The second quarter of the year saw a plethora of occurrences, events and new milestones. However, it was also dominated by the award of three decisive contracts of crucial importance for the future:

MT Aerospace received an order worth EUR 170 million for the development of tank and structural components for the new Ariane 6 launcher. The corresponding contract was signed on June 14 with the customer and system manager ArianeGroup (Airbus Safran Launches until June 30). The contract covers all necessary tank and structural development activities up to the completion of the planned maiden flight of the launcher in 2020 as well as the establishment of production capacities for up to twelve launches a year.

The OHB Group achieved a major success during the Paris Air Show on June 22, when ESA and the European Commission awarded OHB System AG a contract for the assembly of a further eight Galileo navigation satellites for around EUR 324 million. The customer had previously accepted OHB's proposal at the end of April. This brings the total number of Galileo satellites delivered by the OHB Group to 30. Of these, 14 are already in orbit and have demonstrated their full functional capabilities. This success is inspiring us and all our employees to work intensively on designs and studies for new materials and technologies and for further services for the nextgeneration Galileo satellites.

Just a few days later, on June 28, OHB System AG signed a contract worth EUR 310.5 million for the German "Heinrich Hertz" satellite communications mission with the German Aerospace Center (DLR). Scheduled for launch in 2021, this mission will lay the technological foundations for securing future German satellite communication activities. With "Heinrich Hertz", Germany is demonstrating its core capabilities in payload and platform technologies for geostationary satellites at an international level, thus reinforcing its system capabilities.

These three new contracts show once again that the OHB Group is able to convince technological and commercial wise. At the same time, however, these projects will also generate follow-up business that will make a crucial contribution to the entire OHB Group's continued growth.

At the end of the quarter, OHB SE companies had consolidated order books worth EUR 2,220 million, equivalent to a substantial increase over the end of 2016 (EUR 1,560 million).

Given the high order backlog and the upbeat business performance at the end of the first six months, we assume that the Group's net assets and financial condition will remain strong and reaffirm our full-year guidance for 2017 given already at the beginning of this year.

Bremen, August 10, 2017

The Management Board

OHB STOCK

UPWARD TREND IN THE EQUIT Y MARKETS IN THE FIRST HALF OF 2017

The benchmark German equity index DAX entered 2017 at 11,598 points, closing the first quarter at 12,312 points. This translates into a gain of 6% in the first three months, during which the index exceeded 12,000 points for the first time in its history. The DAX rose by 11% to 12,889 points in mid-June 2017, closing at 12,325 points on June 30, an increase of 6% compared with the beginning of the year. This performance was underpinned by upbeat German and global economic data. At the same time, the initially weak euro spurred German exports. The planned Brexit as well as the recurring conflict between Greece and its creditors are currently discernible sources of uncertainty during the rest of the year.

OHB stock rose from EUR 18.49 at the beginning of January to EUR 26.56 at the end of June. This was equivalent to a gain of around 44% ahead of the DAX. The stock hit a historical high of EUR 33.72 on August 8 of this year.

In the period under review, average daily trading volumes came to 12,763 shares (Xetra plus floor trading), substantially above the previous year's figure of 5,051.

TREASURY STOCK

As of June 30 of this year, OHB AG's treasury stock comprised an unchanged total of 80,496 shares, equivalent to 0.46% of its issued capital.

SECURITIES HELD BY MEMBERS OF THE COMPANY'S MANAGEMENT BOARD AND SUPERV ISORY BOARD

June 30, 2017	Shares	Change in Q2
Christa Fuchs, chairwoman of the Supervisory Board	1,401,940	–
Prof Heinz Stoewer, member of the Supervisory Board	1,000	–
Marco R. Fuchs, chairman of the Management Board	6,046,610	–
Dr Fritz Merkle, member of the Management Board	1,000	–
Ulrich Schulz, member of the Management Board	54	–

DIVIDEND OF EUR 0.40 PER SHARE APPROVED BY THE SHAREHOLDERS

At the annual general meeting held on May 16, 2017, the shareholders passed a resolution to authorise the distribution of a dividend of EUR 0.40 per dividend-entitled share. This amount was unchanged over the previous year.

Bank Date Target price in EUR Recommendation Bankhaus Lampe August 8, 2017 36.00 Buy equinet Bank August 4, 2017 25.00 Neutral Commerzbank August 2, 2017 23.00 Hold HSBC Trinkaus & Burkhardt July 18, 2017 32.00 Buy DZ Bank May 10, 2017 30.00 Buy

ANALYST RATINGS

OHB STOCK

PERFORMANCE OF STOCK

FROM JANUARY 1 THROUGH AUGUST 8, 2017 (INDEX-TIED)

INVESTOR RELATIONS ACTIV ITIES IN THE FIRST HALF OF 2017

At the beginning of the year, the Director of Finance and Controlling as well as the IR manager attended a large capital market conference in Lyon, France, where they presented the Company to potential investors in various one-on-one and group talks. As usual, the Management Board of OHB SE provided preliminary guidance for the current year during the capital market day held at the Group's head office in Bremen on February 15. The members of the Management Board and the directors of the individual segments briefed analysts, investors, banks and business journalists on the status of current projects and recent market trends. This was followed by a tour of the integration halls, during which the guests were able to view the clean rooms in which work is performed on satellites in various projects.

The Company published its consolidated financial statements for 2016 on March 21, 2017, holding a press conference in Bremen followed by an analyst conference in Frankfurt am Main on the same day. During an ensuing road show, the Management Board and the IR manager presented OHB SE to interested fund managers. The Management Board of OHB SE provided further investors with insight into the Group's projects and condition at road shows and capital market conferences in Düsseldorf and Frankfurt in the second quarter.

THE STOCK AT A GLANCE

6M/2017	6M/2016
28.00	20.78
18.27	17.02
26.56	17.91
12,763	5,051
464 million	313 million
17,468,096	17,468,096

"LE BOURGET" 52ND PARIS AIR SHOW – OHB SE 'THE AEROSPACE FAMILY'

"As an AEROSPACE FAMILY, we enjoy particularly close relations with our international subsidiaries. This was also reflected in the relaxed atmosphere in which we jointly welcomed business partners, visitors and media representatives to our stand," says Dr. Fritz Merkle, a member of the Management Board of OHB SE and Chief Marketing Officer.

3

1 –3Impressions of the OHB SE stand in LeBourget

"LE BOURGET" 52ND PARIS AIR SHOW – OHB SE 'THE AEROSPACE FAMILY'

OHB SE PRESENTED ITS RANGE OF PRODUCTS AND SERVICES AT THE 52ND PARIS AIR SHOW 2017

Together with its European subsidiaries, OHB SE presented the wide range of products and services of its two business units – Space Systems and Aerospace + Industrial Products – at Le Bourget airport in Paris, France on June 19 – 25, 2017. OHB SE exhibited on a stand with an area of 260 square metres (No. C318) at the joint German stand in Hall 2C.

A group of major European space manufacturing industries (Airbus Defence & Space, A rianeGroup, Avio, OHB, RUAG Space, Telespazio, Thales Alenia Space) and universities (Conservatoire National des Arts et Metiers of Par is, Ecole Poly technique Fédérale de Lausanne, KTH Royal Institute of Technology of Stockholm, Universit y of Montpellier, La Sapienza University of Rome, Universidad Politecnica de Madrid, Von Karman Institute of Brussels) signed a memorandum of understanding (MoU) on June 21, 2017 at Le Bourget on an education partnership agreement aiming – through their joint and coordinated efforts – at organising for multi-nationality teams of students a structured transition between their educational path and their entry into the professional world.

Impression of the OHB SE stand in LeBourget

This initiative, aiming at educating more specifically students by means of a longer industrial project phase has been given the name of: "Advanced Student Team Research in space Industry" (ASTRI), and is intended to materialise into ad hoc specific agreements involving at a time at least one industry and a team of at least five students coming from universities in at least three different countries.

Each ASTRI programme is intended to devote globally eighteen months to carry out a project in industry with a first phase lasting six months that could be part of the thesis final project to accomplish a standard master, while a second phase, lasting the remaining twelve months, would have to be carried out at the premises of one of the industrial parties.

The MoU will remain valid for four years. It will be implemented via a first cycle of projects from early 2018 to mid-2019, with the corresponding diplomas, namely "First Distinguished Certificate of Excellence", to be delivered in mid-2019. The MoU is intended to open to new parties (industry and/or universities) at the end of each academic cycle.

ASTEROID DAY JUNE 30, 2017

over the next decades", says Dr. Fritz Merkle, member of the Management of Board of OHB SE. "It is about the vision of making space technology useful for humankind and improving our lives on the earth."

4–7Impressions of Asteroid Day LIVE on June 30, 2017

• 1,000 events on all continents and in more than 200 countries

• 3 million viewers of the live stream

• 100 million people were able to view the Asteroid Day TV channel (thanks to BCE and SES).

• 35,000 newspaper articles were published in English alone from June 29 until July 1, 2017

ASTEROID DAY JUNE 30, 2017

OHB SE PRIME SPONSOR OF ASTEROID DAY LIVE ON JUNE 30, 2017 IN LUXEMBURG

Asteroids are celestial bodies that are a source of fascination for people from

all parts of society. Future generations face the challenge of protecting the earth from the risk of asteroid impacts by developing special technologies and spacecrafts. At the same time, however, asteroids are a valuable source of raw materials that can be commercially mined. OHB is contributing to these possibilities with its own technical developments and investments.

Dr. Merkle, member of the Management Board of OHB SE, interviewed at TV

Asteroid Day was co-founded in 2014, by Dr. Brian May, astrophysicist and lead guitarist of the rock band Queen, Danica Remy, B612 Chief Operations Officer, Apollo astronaut Rusty Schweickart and German filmmaker Grig Richters. It is observed on June 30 of each year, the anniversary of the largest asteroid impact in recorded history. The Tunguska event in Siberia, Russia, in 1908 destroyed more than 2,000 square kilometres of forest. This is about the same size as the German state of Saarland. The United Nations declared Asteroid Day an international day of education in 2016 with the aim of encouraging knowledge of asteroids and of drawing the general public's attention to them and the place that they hold in our solar system. In particular, it seeks to heighten awareness of the fact that science and technology can help to prevent dangerous asteroid impacts capable of jeopardising our continued existence.

OHB SE is the prime sponsor of Asteroid Day LIVE. More than 700 events in over 190 countries all around the world were held in recognition of Asteroid Day this year. The central events took place in Luxembourg this year. The participants included the European Space Agency (ESA), the Japan Aerospace Exploration Agency (JAXA) and USA space agency NASA. Events catering to all age groups were held at science centres, planetariums, observatories, museums, schools, theatres, libraries, town congress halls and in public places. Most of these events were freely accessible and can be viewed on the Asteroid Day map of the world.

Artists' impression of Heinrich Hertz satellite

SPACE SYSTEMS

SPACE SYSTEMS

At EUR 261.4 million, non-consolidated total revenues in the Space Systems business unit were up on the first six months of the previous year (EUR 236.6 million). The increase in total revenues resulted in only a small rise in operating earnings (EBITDA) to EUR 15.1 million, up from EUR 14.9 million in the previous year.

Segment EBIT came to EUR 11.2 million and was thus nearly unchanged over the previous year's figure of EUR 11.3 million due to the slight increase in depreciation and amortisation expense. The EBIT margin relative to the segment's non-consolidated total revenues contracted slightly to 4.3% (previous year: 4.8%).

SPACE SYSTEMS

CONTRACT WORTH EUR 310.5 MILLION SIGNED BY OHB SYSTEM AG WITH THE GERMAN AEROSPACE CENTER (DLR) FOR THE "HEINRICH HERTZ" PROJECT

The German "Heinrich Hertz" satellite communications mission has achieved its final stage: On June 28, 2017, Dr. Gerd Gruppe, a member of the Management Board of the German Aerospace Center (DLR) responsible for space administration, and Marco Fuchs, Chief Executive Officer of OHB System AG, signed a contract for the assembly, testing and launch of the national satellite. Work is now commencing on the detail design, production and testing of the hardware and software for the entire satellite communications systems – i.e. the space and the ground segment – and the launch preparations. Scheduled for launching in 2021, the "Heinrich Hertz" mission will lay the foundations for securing future satellite communications in Germany. In times of "big data" and digitalisation, ever growing data volumes must be transported quickly and reliably. This gives rise to new technologies which will be tested in orbit on board the "Heinrich Hertz". With this mission, Germany is demonstrating its core capabilities in payload and platform technologies for geostationary satellites at an international level, thus reinforcing its system capabilities.

In addition to these new technologies, which are to be tested under extreme conditions in orbit with enormous temperature fluctuation, gravity-free conditions and a vacuum, the satellite will be accommodating around 20 communications, antenna and satellite technology experiments. These experiments will be performed autonomously while the satellite orbits the earth at an altitude of around 36,000 kilometres. The data collected will be sent back to the earth, where it will be evaluated by the participating research institutes and industrial companies.

The new payload design for "Heinrich Hertz" will make it possible to respond flexibly to market requirements for the first time as a basis for continued future viability. Until now, the satellites have been configured on the earth. Subsequent adjustments in the light of market developments were no longer possible once the satellite was in orbit. "Heinrich Hertz" changes all this: Using various flexible technologies such as small on-board computers, it is possible to constantly reprogramme the satellite from the ground station during its 15-year mission in such a way as to modify its signal resources efficiently to allow for any new or changed requirements. This means that "Heinrich Hertz" can keep on learning new things throughout its entire life cycle.

^"Heinrich Hertz" contract being signed at the DLR offices from left to right: Andreas Lindenthal, member of the Management Board of OHB System AG, Marco Fuchs, CEO of OHB System AG, Dr. Gerd Gruppe, member of the Management Board of DLR responsible for space administration, Andreas Wolke, responsible for central tasks within the space administration of DLR

SPACE SYSTEMS

OHB AWARDED CONTRACT BY ESA AND THE EUROPEAN COMMISSION FOR THE ASSEMBLY OF A FURTHER EIGHT GALILEO SATELLITES FOR AROUND EUR 324 MILLION

The number of satellites supplied by OHB for the Galileo constellation is rising to a total of 30, of which the first 14 are already operational in orbit. With this delivery, OHB will complete the Galileo constellation, although reserves are still available in orbit and on the ground. These 30 satellites, which supplement the four IOV satellites, will give the infrastructure the resilience required for the global roll-out of the Galileo services. The modular satellite design has proven itself with superb results. A large part of the satellites already delivered have demonstrated their full functional capability in orbit. For this reason, these eight satellites will be largely similar in design when they are launched in 2020. As with the previous two contracts, OHB's UK partner Surrey Satellite Technology Ltd. (SSTL) will be supplying the navigation payloads.

In Bremen, it is already working on designs for the next-generation Galileo satellites. In various studies for ESA, the engineers are exploring new materials and components and further services to be provided by the next generation. The experience gained from engineering and producing the previous navigation satellites will also help in the development of the future generation.

from left to right: W. Paetsch, member of the Management Board of OHB System AG, P. Delsaux, Deputy Director General GROW, European Commission, M. Fuchs, CEO of OHB System AG, J. Woerner, Director General of the ESA, P. Verhoef, Director, Navigation, ESA

FIRST SMALLGEO TELECOMMUNICATIONS SATELLITE DEMONSTRATING FULL FUNCTIONAL CAPABILITY IN ORBIT

Launched at the beginning of the year, the H36W-1 telecommunications satellite supplied by OHB System AG was handed over to Spanish satellite operator HISPASAT following the completion of a more than 80-day trial period in orbit. This trial confirms the design and configuration of the new European SmallGEO satellite platform, simultaneously testifying to the fact that the German space industry has regained system capabilities for telecommunications satellites.

H36W-1 has already been integrated in the HISPASAT satellite fleet. From its geostationary position, which forms the basis of the satellite's name, above 36 degrees longitude west, it will be providing Spain, Portugal, the Canary Islands and South America with flexible broadband services over a period of a good 15 years.

SPACE SYSTEMS

"MAX VALIER" NANO-SATELLITE SUCCESSFULLY LAUNCHED

The "Max Valier Sat", a satellite for school students and amateur r adio user s , was launched on board an Indian PSLV rocket lifting off from the Dhawan Space Centre around 80 kilometres north of Chennai on June 23 of this year. Working closely with teachers and school students from the Technology College (TFO) of Bolzano, South Tirol, specialists from OHB System AG developed and built this nano-satellite. One particular highlight is the mini x-ray telescope added to the mission by the Max Planck Institute of Extraterrestrial Physics (MPE) in Garching. As a result, the "Max Valier Sat" grew enormously in complexity as it requires precise pitch control mechanisms so that it can be aligned accurately and kept stable in space. At the same time, OHB developed an outer casing for the nano-satellite that already integrates the electronic boards. A number of structural components were made from special materials using 3D printing and will be tested and qualified on this mission for future use in larger satellites. This compact solution for the structure ensures substantial weight reductions and saves a large amount of space. As the project team did not want this capacity to go to waste, further experiments were added.

Swedish company ÅAC Microtec is testing the on -board computer for the MATS research mission that it is developing in conjunction with OHB Sweden for the InnoSat microsatellite. In addition, ÅAC contributed a newly developed TDRSS modem. TDRSS stands for "Tracking and Data Relay Satellite System" and is used solely by NASA and the U.S. government to send data from low-orbiting satellites to the ground via geostationary satellites more swiftly and reliably. OHB The "Max Valier" high-tech nano-satellite in OHB System's clean-room facilities in Bremen

System provided the "Sof twar e Def ined Radio" technology experiment which in contrast to conventional transmitters is not rigidly oriented to a narrow fre-

quency range but can be reprogrammed and updated in space. An AIS receiver from Lux-Space for picking up and processing global ship data is also included in the high-tech package. Last but not least, "Max Valier Sat" also contains preliminary prototypes of the "Sprites" chips sets from the major "Breakthrough Startshot" project. With a size of only 3.5 square centimetres and a weight of just four grammes each, thousands of the nano-spacecraft are to be sent to Alpha Centauri in around 20 years' time.

The "Max Valier Sat" team during the launch The readiness review at OHB in Bremen

AEROSPACE + INDUSTRIAL PRODUCTS

AEROSPACE + INDUSTRIAL PRODUCTS

In the first six months of 2017, non-consolidated total revenues in the Aerospace + Industrial Products business unit climbed by 20% over the year-ago period to EUR 98.4 million (previous year: EUR 81.8 million). The cost of materials and services purchased rose by a good 29% from EUR 36.1 million in the year-ago period to EUR 46.7 million in the period under review. Despite this, operating earnings (EBITDA) increased by roughly 13% to EUR 10.7 million, up from EUR 9.5 million in the previous year.

The slightly higher segment EBIT of EUR 8.1 million only (previous year: EUR 7.4 million) was due to increased depreciation and amortisation expense. The EBIT margin relative to non-consolidated total revenues came to 8.2%, compared with 9.0% in the previous year.

Ariane 5 launch with four Galileo satellites as payload

AEROSPACE + INDUSTRIAL PRODUCTS

MT AEROSPACE AWARDED CONTRACT WORTH EUR 170 MILLION FOR THE DEVELOPMENT OF TANK AND STRUCTURAL COMPONENTS FOR THE NEW ARIANE 6 LAUNCHER

MT Aerospace signed a contract with Airbus Safran Launchers (since July 1, 2017 Ariane-Group) for the development of key tank and structural components for the new European Ariane 6 launcher on June 14, 2017. The contract covers all necessary tank and structural development activities up to the completion of the planned maiden flight of the launcher in 2020 as well as the establishment of production capacities for up to twelve launches a year.

Working closely with system manager Ariane-Group, MT Aerospace will be responsible under the contract for metallic aerostructures, which include the large propellant tanks and key metallic structural components. It will be committing its own equity to the development of the new launcher as a risk share partner. This contract will secure jobs for highly qualified employees and the continuation of the successful Ariane 5 production programme at the company's facility in Augsburg. MT Aerospace is implementing one of the most important technical innovations of Ariane 6, friction stir welding (FSW) using efficient materials. The first qualification components for the propellant tanks are already being assembled in Augsburg for delivery to the Ariane Group at the end of 2017. Components for the maiden flight will be shipped from 2018.

Construction of the production hall (E06) required for tank welding using the new, particularly efficient and robust friction stir welding method for the dome and bulkheads of the main and upper stage tanks has almost reached completion. Installation of the first set of machinery and equipment has commenced, while the Hage Portal M1 was delivered and installed in the last week of July.

The iHAGEmatic FSW-AR6:

With a length of over 50 metres, the HAGEmatic FSW is used to produce the bulkheads of the launcher tanks fitted to Ariane 6 and will be going into operation from the end of 2017 in Augsburg. The workpieces, which have a width of six metres and a height of three metres, are machined and then stir-welded in a further process.

AEROSPACE + INDUSTRIAL PRODUCTS

GERMAN-BRAZILIAN COOPERATION TO DEVELOP A JOINT LAUNCHER HAS COMMENCED

Under the existing German-Brazilian partnership (DLR Space Administration and the Brazilian space agency AEB), the joint development and qualification of an S50 solid-fuel booster casing using the CFRP infusion technology developed by MT Aerospace including combustion testing has commenced.

The joint DLR/IAE (institute for air and space within the Brazilian Agency for R&D in air and space)/AEB/MT Aerospace steering committee approved the first S50 booster casing within the CaSSIS (Carbon Sub-Scaled IMC Demonstration System) programme on May 23, 2017. Production of the first CaSSIC IMCs commenced at the end of July 2017. The next steps comprise the finalisation of the structural test plan at MT Aerospace in Augsburg in October/November 2017 and the test readiness review (TRR)/steering committee in March 2018.

Roofing celebration for the Snowbear antenna in Spitzbergen

MT MECHATRONICS INSTALLING SNOWBEAR ANTENNA IN SPITZBERGEN

MT Mechatronics, the Mainz-based antenna and telescope equipment specialist, successfully completed factory acceptance testing of the Snowbear project together with the ESA. The antenna was dismantled immediately after the successful completion of the factory acceptance test (FAT) and shipped to Spitzbergen. Despite difficult weather conditions (2°C in the summer in Spitzbergen and snow storms), the roofing celebration has already been held for the installation of the antenna.

S50 solid-matter booster casing

GROUP INTERIM MANAGEMENT REPORT

EUR 000s	Q2/2017	Q2/2016	6M/2017	6M/2016
Total revenues	188,834	158,992	354,153	316,361
EBITDA	13,069	13,322	25,796	23,998
EBIT	9,838	10,428	19,254	18,255
EBT	9,112	8,648	17,820	15,717
Consolidated net profit for the period	6,096	5,668	12,146	10,509
Earnings per share (EUR)	0.30	0.26	0.61	0.52
Total assets as of June 30	730,504	688,436	730,504	688,436
Equity capital as of June 30	193,378	177,363	193,378	177,363
Cash flow used in operating activities	– 47,267	– 17,534	– 76,491	– 67,012
Capital spending	7,313	3,942	17,839	7,563
Headcount as of June 30	2,351	2,192	2,351	2,192

KEY PERFORMANCE INDICATORS OF THE OHB GROUP

The OHB Group's total revenues are heavily dependent on the achievement of milestones and delivery dates for the individual projects and are therefore not linear in nature. At the end of the first six months, they came to EUR 354.2 million, increasing over the same period of the previous year by 12% (previous year: EUR 316.4 million).

The Group's own manufacturing input rose by 13% in the period under review to EUR 221.1 million (previous year: EUR 195.0 million), accompanied by a 13% increase in the cost of materials, reflecting the good progress made in the completion of the development projects. Operating earnings (EBITDA) rose to EUR 25.8 million (previous year: EUR 24.0 million). The operating EBITDA margin narrowed to 7.3% at the end of the first six months of 2017, compared with 7.6% in the comparable prior -year period. Despite the slightly higher depreciation and amortisation expense of EUR 6.5 million in the period under review (previous year: EUR 5.7 million), EBIT climbed to EUR 19.3 million, up from EUR 18.3 million in the previous year. The EBIT margin came to 5.4%, compared with 5.8% in the previous year. The substantial decline in net finance expense from EUR 2.5 million in the previous year to EUR 1.4 million in the period under review primarily reflects reduced interest expense. Profit from ordinary business activities also rose by 13 % to EUR 17.8 million at the end of the first six months of 2017 (previous year: EUR 15.7 million), reflecting the increase in the Group's own manufacturing input. With income tax rising to EUR 5.7 million in the first six months of 2017 (previous year: EUR 5.2 million), the OHB Group recorded higher consolidated net profit for the period of EUR 12.1 million (previous year: EUR 10.5 million).

At the end of the first six months of the year, there was an increased net cash outflow of EUR 76.5 million from operating activities (previous year: EUR 67.0 million). The main drivers behind this change were the net reduction of around EUR 67.7 million in customer prepayments, the net increase in liabilities of EUR 51.7 million and a smaller increase of EUR 6.7 million in inventories. The net cash outflow of EUR 17.1 million from investing activities was dominated by spending of EUR 17.8 million on property, plant and equipment. The strong net cash inflow from financing activities of EUR 73.4 million neutralised the net cash outflow from operating activities and is chiefly due to the increase in the volume of new loans of EUR 82.4 million compared with the previous year (EUR 65.4 million). New borrowing proceeded as planned. Borrowing

GROUP INTERIM MANAGEMENT REPORT

Annual General Meeting 2017 in Bremen

was reduced substantially in the 4th quarter of 2016. Cash and cash equivalents (net of securities) came to EUR 36.4 million at the end of the period under review and were thus largely unchanged over the previous year (EUR 40.8 million).

The firm orders held by the Group at the end of the first six months of 2017 were valued at EUR 2,220 million, up from EUR 1,645 million in the previous year. Of this, OHB System AG accounted for EUR 1,633 million or just under 74%.

The OHB Group's total assets increased by EUR 47.6 million or around 7% over the end of the previous year to EUR 730.5 million as of June 30, 2017 (December 31, 2016: EUR 682.9 million). This was materially driven by increased property, plant and equipment, other intangible assets and other financial and non-financial assets. The increase of a good EUR 82 million in financial liabilities made up for the decline of just under EUR 43 million in current customer prepayments. Consolidated equity expanded by EUR 9.8 million to EUR 193.4 million. At 26.5% as of June 30, 2017, the equity ratio thus came close to the figure of 26.9% reported as of December 31, 2016.

GROUP INTERIM MANAGEMENT REPORT

RESEARCH AND DEVELOPMENT

At EUR 19.2 million in the first six months of 2017, research and development expense was up on the year-ago figure of EUR 16.1 million.

CAPITAL SPENDING

Capital spending in the first six months of 2017 came to EUR 17.8 million, well up from the year-ago figure of EUR 7.6 million, as a result of spending on tooling in preparation for Ariane 6 production at MT Aerospace, Augsburg.

EMPLOYEES

At 2,351 on June 30, 2017, the OHB Group's headcount was up on December 31, 2016 (2,298 employees). The employees shown for the "Rest of the World" comprise 62 people employed in Chile and 58 in French-Guiana.

OPPORTUNITY AND RISK REPORT

The risk report included in the annual report for 2016 describes in detail the risks and opportunities liable to impact the Company's business performance. There were no material changes in the OHB Group's opportunity and risk profile in the period under review.

OUTLOOK FOR THE GROUP AS A WHOLE IN 2017

The Management Board expects consolidated total revenues of EUR 800 million for 2017, accompanied by EBITDA of EUR 60 million and EBIT of 44 million in 2017. Given the greater order backlog and upbeat outlook for the current year, we assume that the Group's net assets and financial condition will also remain strong.

SIGNIFICANT EVENTS OCCURRING AFTER THE END OF THE PERIOD UNDER REVIEW

DR. WOLFGANG PAETSCH JOINING THE MANAGEMENT BOARD OF OHB SYSTEM AG

Dr.-Ing Wolfgang Paetsch was appointed to the Management Board of OHB System AG effective July 1, 2017. In his capacity as a member of the Management Board, Dr. Paetsch will be primarily responsible for the space projects that are being executed for the European Space Agency ESA and the European Union. These include navigation, earth observation and weather satellites, science and exploration missions and manned space flight projects. As Director of Navigation, he has overseen the

Galileo FOC* satellites over the past four years, materially contributing to the Company's success in the third tender. Before joining OHB in 2013, he collected professional and management experience in various companies.

Dr.-Ing. Wolfgang Paetsch

The CFRP booster demonstrator during the winding process at DLR-ZIP (left) and after burst testing in the testing pit at the Materials Testing Institute (MPA) in Stuttgart (above).

NEW TYPE OF BOOSTER CASING FOR ARIANE 6 SUCCESSFULLY TESTED

On July 19, MT Aerospace successfully tested a new technology for carbon-reinforced booster casings (CFRP booster).

The achievement of this decisive milestone marks an important step in the development of the Ariane 6 launch vehicle.

With a diametre of 3.5 metres and a length of 6 metres, the booster was tested at the Materials Testing Institute in Stuttgart to determine whether it

meets launch requirements. To this end, pressure loads of over 125 bar were simulated. The CFRP booster casing passed all tests successfully. The CFRP booster for the new European launch vehicle Ariane 6 will replace the previous steel versions fitted to Ariane 5.

MT Aerospace has been working since summer 2013 on the development of state-of-theart production technology for carbon-fibre processing together with the DLR Centre for Lightweight Production Technology (DLR-ZLP) on behalf of the European Space Agency ESA (FORC project) and the Bavarian government (DLR-ZLP KOFFER project). Featuring infusion technology, the newly developed process should achieve substantially lower costs compared with conventional wet-winding processes, thus helping to substantially enhance the competitiveness of the new European launch vehicle.

Alongside the Avio production site Colleferro near Rome, Augsburg is to be the second production site for CFRP booster casings for the new European launch vehicle Ariane 6.

SIGNIFICANT EVENTS OCCURRING AFTER THE END OF THE PERIOD UNDER REVIEW

MEGATEL GMBH RENAMED OHB DIGITAL SERVICES GMBH

megatel GmbH has been renamed OHB Digital Services GmbH since beginning of August, 2017. This new name highlights more effectively the company's core activities in the digital transformation and the provision of innovative solutions and will allow crosscompany potential to be leveraged more efficiently. In this era of digital transformation and disruptive developments, the team of 60 specialists, made up of engineers, IT specialists, mathematicians, media scientists and economists will be of growing importance to the Group-wide activities to develop new systems and business models.

OHB Digital Services GmbH's portfolio entails the provision of advice and support in all processes within customers' IT projects:

• Advice on agile development processes, software, architecture and requirements analysis, testing and validation as well as operations and IT service.
• Industry 4.0 solutions for industrial automation, production and the steel industry.
• Software solutions for offshore wind farms are provided by subsidiary OHB Digital Maritime Services.
• Advice on and sales of the NaviTrans transport logistics solution based on the Microsoft Dynamics ERP.

OHB Digital Services GmbH's customers are active in the aviation and space sector, heavy industry, automotive, forwarding and logistics, insurance and healthcare. 21

CONSOLIDATED INCOME STATEMENT

EUR 000s	Q2/2017	Q2/2016	H1/2017	H1/2016
Sales	185,703	146,023	332,709	291,319
Changes in inventories of finished goods
and work in progress	– 3,048	2,027	7,627	7,658
Other own work capitalised	5,219	7,922	11,506	13,057
Other operating income	960	3,020	2,311	4,327
Total revenues	188,834	158,992	354,153	316,361
Cost of materials	114,711	87,167	203,467	179,611
Staff costs	48,792	44,535	95,974	85,807
Depreciation/amortisation	3,231	2,896	6,542	5,743
Other operating expenses	12,262	13,968	28,916	26,945
Earnings before interest and taxes (EBIT)	9,838	10,426	19,254	18,255
Other interest and similar income	431	399	998	812
Other financial expenses	1,233	2,188	2,531	3,452
Currency translation gains/losses	74	11	95	102
Net profit/loss from shares carried at equity	0	0	0	0
Investment income	2	0	4	0
Net finance expense	– 726	– 1,778	– 1,434	– 2,538
Earnings before taxes	9,112	8,648	17,820	15,717
Income taxes	3,016	2,980	5,674	5,208
Consolidated net profit for the period	6,096	5,668	12,146	10,509
Minority interests	912	1,146	1,580	1,447
Consolidated net profit after minority interests	5,184	4,522	10,566	9,062
Number of shares excl. own shares	17,387,600	17,387,600	17,387,600	17,387,600
Earnings per share (basic in EUR)	0.30	0.26	0.61	0.52
Earnings per share (diluted in EUR)	0.30	0.26	0.61	0.52

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

EUR 000s	Q2/2017	Q2/2016	H1/2017	H1/2016
Consolidated net profit for the period	6,096	5,668	12,146	10,509
Remeasurement of defined benefit pension plans	0	0	0	0
Items that will not be reclassified to profit and loss	0	0	0	0
Exchange differences on translation foreign operations	– 33	– 53	– 39	– 80
Net gains/losses from the measurement of financial assets recorded under equity	1,538	161	4,507	5,131
Income/expenses arising during the year	248	1	238	48
Items which may be subsequently reclassified to profit and loss	1,753	109	4,706	5,099
Other comprehensive income after tax	1,753	109	4,706	5,099
Comprehensive income	7,849	5,777	16,852	15,508
Of which attributable to
equity holders of OHB SE	6,863	4,611	15,201	14,127
other equity holders	986	1,166	1,651	1,481

CONSOLIDATED CASH FLOW STATEMENT

EUR 000s	H1/2017	H1/2016
Earnings before interest and taxes (EBIT)	19,254	18,255
Income taxes paid	– 6,927	– 4,636
Other non-cash expenses (+)/income (–)	0	– 165
Depreciation/amortisation	6,542	5,743
Changes in pension provisions	– 1,294	– 244
Profit (-)/loss (+) from the disposal of assets	37	5
Gross cash flow	17,612	18,958
Increase (–)/decrease (+) in own work capitalised	– 11,120	– 12,731
Increase (–)/decrease (+) in inventories	– 4,357	– 11,058
Increase (–)/decrease (+) in receivables and other assets including deferred items	– 35,859	– 35,398
Increase (+)/decrease (–) in liabilities and current provisions	5,598	– 46,151
Increase (+)/decrease (–) in prepayments received	– 48,365	19,368
Cash outflow for operating activities	– 76,491	– 67,012
Payments made for investments in non-current assets	– 17,839	– 7,563
Payments received from disposals of non-current assets	0	58
Interest and other investment income	741	716
Cash outflow for investing activities	– 17,098	– 6,789
Dividends distributed	– 6,955	– 6,955
Payments made for the settlement of financial liabilities	– 271	– 443
Payments received from raising borrowings	82,436	65,445
Minority interests	– 109	– 41
Interest and other finance expense	– 1,681	– 3,452
Cash inflow from financing activities	73,420	54,554
Cash changes to cash and cash equivalents	– 20,169	– 19,247
Currency-translation-related changes to cash and cash equivalents	48	67
Cash and cash equivalents at the beginning of the period	56,567	59,949
Cash and cash equivalents at the end of the period	36,446	40,769

CONSOLIDATED BALANCE SHEET

EUR 000s	30/6/2017	31/12/2016
ASSETS
Goodwill	7,488	7,488
Other intangible assets	98,905	89,967
Property, plant and equipment	73,997	60,640
Shares carried at equity	564	558
Other financial assets	35,646	30,979
Other long-term receivables and assets	2,349	2,491
Securities	632	632
Deferred taxes	18,480	18,615
Long-term assets	238,061	211,370
Inventories	54,572	50,215
Trade receivables	355,601	326,336
Tax receivables	590	328
Other non-financial assets	44,793	37,713
Securities	441	385
Cash and cash equivalents	36,446	56,567
Current assets	492,443	471,544
Total assets	730,504	682,914

EUR 000s	30/6/2017	31/12/2016
SHAREHOLDERS' EQUITY AND LIABILITIES
Subscribed capital	17,468	17,468
Additional paid-in capital	14,923	14,923
Retained earnings	521	521
Unrealised gains and loss recognised under equity	24	– 4,682
Treasury stock	– 781	– 781
Consolidated profit	144,811	141,199
Shareholders' equity excluding minority interests	176,966	168,648
Minority interests	16,412	14,942
Shareholders' equity	193,378	183,590
Provisions for pensions and similar obligations	99,789	100,437
Non-current other provisions	956	1,432
Non-current financial liabilities	30,088	349
Non-current advance payments received on orders	31,994	37,398
Deferred income tax liabilities	34,224	31,775
Non-current liabilities and provisions	197,051	171,391
Current provisions	45,121	28,160
Current financial liabilities	145,534	93,108
Trade payables	64,552	67,308
Current advance payments received on orders	59,428	102,389
Income tax liabilities	4,584	7,981
Other financial and non-financial liabilities	20,856	28,987
Current liabilities	340,075	327,933
Total equity and liabilities	730,504	682,914

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Balance on June 30, 2017	17,468	14,923	521	24	144,811	– 781	176,966	16,412	193,378
Other changes	0	0	0	0	0	0	0	0	0
Comprehensive income	0	0	0	4,706	10,567	0	15,273	1,470	16,743
Dividend payment	0	0	0	0	– 6,955	0	– 6,955	0	– 6,955
Balance on January 1, 2017	17,468	14,923	521	– 4,682	141,199	– 781	168,648	14,942	183,590
Balance on June 30, 2016	17,468	14,923	521	2,378	128,049	– 781	162,558	14,805	177,363
Other changes	0	0	0	0	0	0	0	0	0
Comprehensive income	0	0	0	5,099	9,062	0	14,161	1,406	15,567
Dividend payment	0	0	0	0	– 6,955	0	– 6,955	0	– 6,955
Balance on January 1, 2016	17,468	14,923	521	– 2,721	125,942	– 781	155,352	13,399	168,751
EUR 000	Sub scribed capital	Additional paid-in capital	Retained earnings	Other compre hensive income	Consoli dated profit	Treasury stock	Share holders' equity excluding minority interests	Minority interests	Share holders' equity

SEGMENT REPORTING JANUARY 1 TO JUNE 30, 2017

	Space Systems	Aerospace + Industrial Products	Holding	Consoli dation	Total
EUR 000s	2017	2017	2017	2017	2017
Sales	248,145	89,531	0	– 4,967	332,709
of which internal sales	145	4,822	0	– 4,967	0
Total revenues	261,358	98,357	3,968	– 9,530	354,153
Cost of materials and services purchased	160,841	46,702	0	– 4,075	203,468
EBITDA	15,101	10,690	5	0	25,796
Depreciation/amortisation	3,939	2,612	12	– 21	6,542
EBIT	11,162	8,078	– 7	21	19,254
EBIT margin	4.3%	8.2%			5.4%
Own value creation	131,274	89,777			221,051
EBIT margin on own value creation	8.5%	9.0%			8.7%

	Space Systems	Aerospace + Industrial Products	Holding	Consoli dation	Total
EUR 000s	2016	2016	2016	2016	2016
Sales	220,776	72,658	0	– 2,115	291,319
of which internal sales	112	2,003	0	– 2,115	0
Total revenues	236,606	81,753	3,508	– 5,506	316,361
Cost of materials and services purchased	144,866	36,099	0	– 1,354	179,611
EBITDA	14,941	9,472	– 415	0	23,998
Depreciation/amortisation	3,647	2,108	13	– 25	5,743
EBIT	11,294	7,364	– 428	25	18,255
EBIT margin	4.8%	9.0%			5.8%
Own value creation	116,903	78,138			195,041
EBIT margin on own value creation	9.7%	9.4%			9.4%

GENERAL INFORMATION ON THE Q2/6M INTERIM REPORT 2017

OHB SE is a listed stock corporation domiciled in Germany. The consolidated financial statements for the interim report on OHB SE and its subsidiaries (the "Group") for the first six months of 2017 were approved for publication in a resolution passed by the Management Board on August 10, 2017.

OHB SE's interim consolidated financial statements include the following companies:

• OHB System AG, Bremen & Oberpfaffenhofen
• OHB Italia S.p.A., Milan, Italy
• OHB Sweden AB, Stockholm, Sweden
• Antwerp Space N.V., Antwerp, Belgium
• LuxSpace S.à r.l., Betzdorf, Luxembourg
• MT Aerospace Holding GmbH, Bremen
• MT Aerospace AG, Augsburg
• MT Aerospace Grundstücks GmbH & Co. KG, Munich
• MT Mechatronics GmbH, Mainz
• MT Aerospace Guyane S.A.S., Kourou (GUF)
• OHB Teledata GmbH, Bremen
• OHB Digital Services GmbH, Bremen (formerly megatel Informations- und Kommunikationssysteme GmbH, Bremen)
• ORBCOMM Deutschland Satellitenkommunikation AG, Bremen

The results of the non-consolidated affiliated companies are not included in the interim reports.

BASIS FOR REPORT ING

These unaudited interim consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) and the related interpretations of the International Accounting Standards Board (IASB) applicable to interim reporting as endorsed by the European Union and the additional provisions of commercial law to be applied in accordance with Section 315 a (1) of the German Commercial Code. Accordingly, this interim report does not include all the information or notes required by IFRS for the consolidated financial statements to be prepared for a full year.

The Management Board takes the view that these unaudited interim consolidated financial statements contain all adjustments needed to provide a true and fair view of the Company's net assets, financial position and results of operations. The results reported in the period ending June 30, 2017 are not necessarily a guide to the Company's future performance.

In connection with the preparation of the interim consolidated financial statements in accordance with IAS 34 "Interim Financial Reporting", the Management Board is required to make certain assessments and estimates as well as assumptions influencing the application of the accounting principles within the Group and the recognition of assets and liabilities as well as income and expenses. The actual amounts may vary from such estimates and adjustments.

The recognition and measurement methods used in the interim consolidated financial statements match those applied to the consolidated financial statements as of the end of the last financial year.

Income taxes are calculated on the basis of a tax rate of around 32%.

There have been no material changes in he basis underlying the estimates applied since the annual report for 2016. A detailed description of the accounting principles can be found in the notes to the consolidated financial statements included in the annual report for 2016.

AUDIT REV IEW

This interim report has not been audited or reviewed by a statutory auditor in accordance with Section 317 of the German Commercial Code.

RESPONSIBILIT Y STATEMENT BY MANAGEMENT

"To the best of our knowledge, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group in accordance with the generally accepted principles of proper accounting, 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."

Bremen, August 10, 2017 The Management Board

IMPRINT

Copy and content: OHB SE, Bremen, Germany

PvF Investor Relations, Oberursel, Germany

Layout:

Ligaturas – Reportdesign, Berlin, Germany

Photos:

Cover: istockphoto.com Page 6: OHB System AG, A. Winterboer Page 7: OHB System AG, A. Winterboer Page 8: Max Alexander Page 9: Max Alexander Page 10: OHB System AG Page 11: DLR Page 12: OHB System AG Page 13 above: Karlis Kalnins Page 13 down: Karlis Kalnins Page 14: ESA, S. Corraja Page 15 left: MT Aerospace AG Page 15 right: MT Aerospace AG Page 16 above: MT Mechatronics GmbH Page 16 down: MT Aerospace AG Page 18: OHB System AG Page 20 middle: OHB System AG Page 20 left and right: MPA

* European global satellite-based navigation system. The FOC (full operational capability) phase of the Galileo programme is being funded by the European Union. The European Commission and the European Space Agency ESA have signed a contract under which ESA acts as the development and sourcing agency on behalf of the Commission. The views expressed here do not necessarily constitute the positions of the European Union and ESA. "Galileo" is a registered trademark owned by the EU and ESA under the HABM application number 002742237.

FINANCIAL CALENDAR 2017/2018

Q2/6M INTERIM REPORT /	AUGUST 10, 2017
Analyst conference call
INVESTOR CONFERENCE	AUGUST 30, 2017
Commerzbank Sector Conference,
Frankfurt/Main
Q3/9M INTERIM REPORT /	NOVEMBER 14, 2017
Analyst conference call
GERMAN EQUITY CAPITAL MARKET FORUM	NOVEMBER 27–29, 2017
Analyst and investor conference,
Frankfurt/Main
CAPITAL MARKET DAY 2018	FEBRUAR 7, 2018
CONSOLIDATED FINANCIAL STATEMENTS FOR 2017	MARCH 21, 2018
Annual press conference, Bremen	8:30 A .M.
Analyst conference (DVFA), Frankfurt /Main	2:00 P.M.
Q1/3M INTERIM REPORT /	MAY 9, 2018
Analyst conference call
ANNUAL GENERAL MEET ING	MAY 24, 2018
Bremen
Q2/6M INTERIM REPORT /	AUGUST 9, 2018
Analyst conference call
Q3/9M INTERIM REPORT /	NOVEMBER 13, 2018
Analyst conference call
OHB SE
Karl-Ferdinand-Braun-Str. 8
28359 Bremen, Germany
Phone: +49(0)421 2020-8
FAX: +49(0)421 2020-613
ir@ohb.de

www.ohb.de

OHB – Official partner to Werder Bremen