Polytec Holding AG

Interim / Quarterly Report • Aug 3, 2011

HALF YEAR FINANCIAL REPORT 2011

EARNINGS FIGURES

in EUR million	Q2 2011	Q2 2010	CHANGE IN %	H1 2011	H1 2010	CHANGE IN %
Sales	204.6	201.1	1.7%	405.4	365.8	10.8%
EBITDA	24.8	13.0	91.3%	40.0	16.6	141.2%
thereof deconsolidation gain	7.2			7.2
EBIT	19.7	6.2	216.6%	29.0	3.0	879.6%
Net income	17.9	4.3	316.5%	25.8	-1.2
EBITDA margin (adjusted)	8.6%	6.5%		8.1%	4.5%
EBIT margin (adjusted)	6.1%	3.1%		5.4%	0.8%

FINANCIAL FIGURES

in EUR million	H1 2011	H1 2010	CHANGE IN %
Cash flow from operating activities	28.6	-2.9
Cash flow from investing activities	18.2	-6.4
Cash flow from financing activities	-36.9	-8.3
Capital expenditures	7.5	9.1	-17.5%

BALANCE SHEET RATIOS

in EUR million	June 30, 2011	December 31, 2010
Balance sheet total	271.9	308.5
Equity	110.8	87.3
Net debt (+) / cash (-)	-20.5	26.6
Net working capital	20.1	16.5
Gearing	-0.2	0.3
Equity ratio	40.8%	28.3%
Employees (End of period)	3,703	5,697

SHARE FIGURES

		June 30,2011	December 31, 2010	Change in %
Closing price	in EUR	7,6	4,58	65,9%
Market capitalisation	in EUR mill.	169.7	102.3	65.9%
		H1 2011	H1 2010	Change in %
Earnings per share	in EUR	1.14	-0.07

HALF YEAR FINANCIAL REPORT 2011	1
GROUP MANAGEMENT REPORT	4
ECONOMIC FRAMEWORK CONDITIONS	4
GENERAL INFORMATION ABOUT THE CURRENT INTERIM REPORT	4
GROUP RESULTS	4
SEGMENT REPORTING	5
EMPLOYEES	6
CAPITAL EXPENDITURES AND KEY FINANCIAL FIGURES	7
OUTLOOK	7
INTERIM FINANCIAL STATEMENTS	9
PROFIT AND LOSS STATEMENT	9
TOTAL COMPREHENSIVE INCOME	9
BALANCE SHEET10
CASH FLOW STATEMENT 11
SHAREHOLDERS EQUITY11
SEGMENT REPORTING12
SELECTED EXPLANATORY NOTES 13
DECLARATION BY THE BOARD OF DIRECTORS 15

GROUP MANAGEMENT REPORT

ECONOMIC FRAMEWORK CONDITIONS

The development of the European automotive industry continued to show a dynamic trend during the first half of 2011. This applies to the sales performance of both passenger cars and commercial vehicles. In the passenger car segment, production and sales volumes of the German OEMs were once again driven by the favorable development in the BRIC countries and in the US market. Passenger car sales in Russia alone increased by 55% to 1.2 million vehicles in the first six months of 2011. In India, sales volumes rose by 16.0% to 1.3 million vehicles, followed by China with a growth rate of 9.7% (5.9 million vehicles) and Brazil, with car sales increasing by 9.5% (1.6 million vehicles) in the period under review.

The domestic markets in Europe (EU 27) showed a slight decrease in car sales of 1.8% to 7.4 million vehicles.

The European commercial vehicle industry was also able to report a considerable increase in the number of new registrations, with the heavy commercial vehicles over 16 tones showing a growth of 41% to 44 thousand new registrations in the first half of 2011.

ìThe favorable economic situation in the automotive industry is also reflected by the increase in the number of people employed in this key sector by 13,000 employees,î underlined Matthias Wissmann, President of the Association of the German Automotive Industry (VDA), at the VDA half-year press conference in Berlin. Mr. Wissmann remained confident also about the second half of the year under review: ìWe will continue to enjoy growth going forward. Forthe full year 2011 we expect new highs in passenger car exports and production.î

GENERAL INFORMATION ABOUT THE CURRENT INTERIM REPORT

Under the purchase agreement dated June 9, 2011 the ìInteriorî business area was sold to Toyota Boshoku Europe N.V., Zaventem, Belgium with the exception ofthe production site in Zaragoza (Spain). The transfer of the economic ownership took place on June 30, 2011 following the closing ofthe transaction. More detailed information about this disposal can be found in the selected explanatory notes of this interim report.

Given the experiences in recent years with the segment structure defined at the time of the IPO, which is no longer consistent with the

current organizational structure (changed operating responsibilities) and the internal reporting system, the companyís Board of Directors has decided to align the segment structure to the Groupís decision making processes pursuant to IFRS 8. The previously separate business segments Automotive Systems and Automotive Composites have therefore been merged to form a single segment.

For better comparability, previous yearís figures showed in this interim report have been adjusted accordingly.

GROUP RESULTS

in EUR million	Q2 2011	Q2 2010	CHANGE IN %	H1 2011	H1 2010	CHANGE IN %
Sales	204.6	201.1	1.7%	405.4	365.8	10.8%
EBITDA	24.8	13.0	91.3%	40.0	16.6	141.2%
thereof deconsolidation gains	7.2
EBIT	19.7	6.2	216.6%	29.0	3.0	879.6%
Net income	17.9	4.3	316.5%	25.8	-1.2
EBITDA margin (adjusted)	8.6%	6.5%		8.1%	4.5%
EBIT margin (adjusted)	6.1%	3.1%		5.4%	0.8%
Earnings per share (in EUR)	0.80	0.18	337.0%	1.14	-0.07

In the first half of 2011, the POLYTEC GROUP reported an increase in sales of 10.8% to EUR 405.4 million. This favorable sales development is still attributable to the consistently positive performance of the European automotive industry. Sales volumes of the POLYTEC GROUPís most relevant customers in the passenger car and in the commercial vehicle sectors recorded strong growth rates in the first six months of 2011. The sales figures in the same period of the previous year included roughly EUR 13 million of POLYTEC Composites Italia, which was divested at the end ofthe 2010 business year.

Group EBITDA rose by 141.2% to EUR 40.0 million in the period under review. In addition to the positive market development and fixed cost digression, this disproportionate increase in results is mainly attributable to the successful restructuring of the production sites in Zaragoza (Spain) and Waldbrˆl (Germany), which made a positive contribution to Group results.

On June 9, 2011 the divestment of the ìInteriorî business area,which was sold to TOYOTA BOSHOKU, was communicated with an ìad hocî release. The closing ofthe transaction took place on June 30, 2011. Thus, sales and earnings figures of the ìInteriorî business area are included in this half-year interim reportuntil June 30,2011.

Following the deconsolidation of the ìInteriorî business area, Group EBITDA includes a deconsolidation gain of EUR 7.2 million. Adjusted for this one-off effect, operating EBITDA amounted to EUR 32.8 million in the period under review. This corresponds to an EBITDA margin of 8.1%.

In the first half of 2011, group EBIT increased almost tenfold totaling EUR 29.0 million. In addition to the effects mentioned above, this increase is mainly attributable to lower depreciation of fixed assets, which declined by roughly EUR 2.6 million due to the conservative investment policy of the POLYTEC GROUP in the recent past. Financing costs fell by approximately EUR 1.1 million in the first half of 2011 due to a considerable reduction of net debt and the renegotiation of lending terms and conditionswith the house bank in Q2 2011.

Nevertheless, the financial result only showed a slight change compared to the previous yearís period. This is mainly due to a gain of roughly EUR 0.8 million in Q2 2011.

In the first half of 2011, the POLYTEC GROUP recorded a net income of EUR 25.8 million compared to a loss of EUR 1.2 million in the same period of the previous year. This corresponds to earnings per share of EUR 1.14.

SEGMENT REPORTING

in EUR million Q2 ²⁰¹¹ Q2 ²⁰¹⁰ CHANGE IN % H1 ²⁰¹¹ H1 ²⁰¹⁰ CHANGE IN % Sales 179.5 176.6 1.6% 357.9 317.7 12.6% EBITDA 20.4 10.0 103.9% 33.1 11.1 197.6% thereof deconsolidation gain 7.2 7.2 EBIT 15.8 3.9 300.9% 23.3 -1.1 EBITDA margin 7.4% 5.7% 7.2% 3.5% EBIT margin 4.8% 2.2% 4.5% -0.3%

AUTOMOTIVE / SYSTEMS DIVISION

In the first half of 2011, the Automotive / Systems Division was able to report an increase in sales of 12.6% to EUR 357.9 million. This positive development was mainly driven by the dynamic trend showed by the German premium suppliers in the foreign markets of the BRIC countries and in the US. The solid recovery of the German

commercial vehicle industry also made a significant contribution to this positive performance. In Q2 2011, division sales recorded a growth of1.6% to EUR 179.5 million. Following the successful restructuring ofthe two production sites in Zaragoza (Spain) and Waldbrˆl (Germany) and their positive contribution to results,

EBITDA showed a disproportionate growth compared to the sales development, tripling to EUR 33.1 million in the period under review.

Under the purchase agreement dated June 9, 2011, the ìInteriorî business area, which was part of the Automotive /Systems Division, was divested and transferred to Toyota Boshoku Europe N.V., Zaventem, Belgium. The transfer of the economic ownership took

place at the closing ofthe transaction as of June 30, 2011. Division EBITDA includes a one-off gain of EUR 7.2 million resulting from the deconsolidation of the related companies. A more detailed description of the calculation of the deconsolidation figures can be found in the explanatory notes on page 13. The adjusted EBITDA margin ofthis segment amounted to 7.2% in the period under review.

CAR STYLING DIVISION

in EUR million	Q2 2011	Q2 2010	CHANGE IN %	H1 2011	H1 2010	CHANGE IN %
Sales	19.7	20.6	-4.6%	37.4	39.9	-6.3%
EBITDA	2.1	2.4	-10.4%	3.6	4.3	-16.0%
EBIT	1.9	1.9		2.9	3.4	-16.0%
EBITDA margin	10.8%	11.5%		9.6%	10.7%
EBIT margin	9.5%	9.4%		7.6%	8.5%

The Car Styling Division reported a decline in sales by 6.3% to EUR 37.4 million in the first half of 2011. In addition to lower tooling sales compared to the previous year, which were already mentioned in the Q1 2011 interim report, this drop in division sales is mainly

attributable to a delayed start of production for a large customer order. As a result of this decline in sales, division EBITDA also decreased by 0.7 million in the first half of 2011.

EMPLOYEES

	END OF PERIOD			AVERAGE PERIOD
	JUNE 30, 2011	JUNE 30, 2009	CHANGE	H1 2011	H1 2010	CHANGE
Automotive Systems Division	2.865	5.099	-2.234	4.949	4.683	266
Car Styling Division	670	687	-17	644	646	-2
Ohters/Consolidation	168	153	15	146	167	-21
Group	3.703	5.939	-2.236	5.739	5.496	243

Total group headcount (including leased staff) decreased by 2,236 employees as of June 30, 2011. This decline is mainly attributable to the disposal of the ìInteriorî business area as of end ofJune 2011 (closing of the transaction). Total headcount of the divested

ìInteriorî business area amounted to 2,133 employees as of end of June 2011. In the Car Styling Division, personnel resources were reduced by 17 employees in line with the changed production volumes.

CAPITAL EXPENDITURES AND KEY FINANCIAL FIGURES

CAPITAL EXPENDITURES

in EUR million	Q2 2011	Q2 2010	CHANGE IN %	H1 2011	H1 2010	CHANGE IN %
Automotive Systems Division	3.6	5.0	-28.9%	6.7	8.5	-21.3%
Car Styling Division	0.2	0.1	45.3%	0.4	0.3	36.7%
Others/Consolidation	0.1	0.1	-23.3%	0.4	0.3	38.6%
Group	3.8	5.2	-27.0%	7.5	9.1	-17.5%

In the first half of 2011, capital expenditures decreased by 17.5% to EUR 7.5 million. In the Automotive / Systems Division capital expenditures were mainly limited to project-related expenses in the period under review. The Board of Directors plans to expand its

business sites in Lohne (Germany) and Hˆrsching (Austria) in the second half of 2011 to meet future capacity requirements.

KEY FINANCIAL FIGURES

in EUR million	JUNE 30, 2011	DECEMBER 31, 2010	CHANGE IN %
Asset ratio	28.2%	37.5%
Equity ratio	40.8%	28.3%
Net working capital	20.1	16.5	21.8%
Net working capital to sales	2.5%	2.1%
Net debt (+) / cash (-)	- 20.5	26.6
Net debt (+) / cash (-) to EBITDA	- 0.3	0.5
Gearing (Net debt (+) / cash (-) to Equity)	- 0.2	0.3
Capital employed	94.7	126.2	-24.9%

With regard to the Groupís key financial figures, the disposal of the ìInteriorî business area should be particularly mentioned as it contributed to considerably improve key figures at the group level. The net working capital rose by EUR 3.6 million to EUR 20.1 million compared to the balance sheet date as of December 31, 2010 driven by the positive business performance. The equity ratio increased to 40.8% as of June 30, 2011 due to the favorable earnings situation and the correlated deconsolidation gain in the amount of EUR 7.2

million. Net debt, which amounted to EUR 26.6 million as of December 31, 2010, turned into a positive net cash position of EUR 20.5 million as of June 30, 2011 mainly due to the cash inflow and repayment of debts resulting from the disposal of the ìInteriorî business area. A more detailed description of the retired assets and liabilities resulting from the divestment of the ìInteriorî business area can be found on page 13.

OUTLOOK

The outlook for the full year 2011 had to be revised due to the divestment of the ìInteriorî business area as of end ofJune 2011.

For the full year 2011, the Management expects consolidated group sales to amount to roughly EUR 620 million. This figure includes both the expected drop in sales resulting from the disposal of the Italian subsidiary POLYTEC Composites Italia, which was sold at the end of

2010, as well as the effects resulting from the divestment of the ìInteriorî business area at the end of the first half of 2011. The group operating result, adjusted for one-off effects from the disposal of the ìInteriorî business area, is anticipated to show a disproportionate increase compared to the sales development. The sales and earnings guidance for the full year 2011 is based on a further solid

development of the market as well as on the ongoing

implementation of internal measures to enhance productivity. Along with the continued optimization of operating processes, the Management will seek to seize value-enhancing organizational and acquisition opportunities going forward.

INTERIM FINANCIAL STATEMENTS

PROFIT AND LOSS STATEMENT

	Q2 2011	Q2 2010	H1 2011	H1 2010
Net Sales	204,564	201,068	405,358	365,778
Other operating income	2,817	5,660	5,604	9,467
Changes in inventory of finished and unfinished goods	-4,022	-6,529	-1,136	585
Own work capitalised	313	116	563	290
Expenses for materials and services received	-106,990	-105,505	-218,652	-202,511
Personal expenses	-53,054	-54,346	-105,295	-105,659
Other operating expenses	-26,011	-27,483	-53,666	-51,370
Deconsolidation gain	7,211	0	7,211	0
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	24,828	12,982	39,988	16,580
Depreciation	-5,151	-6,767	-10,965	-13,618
Earnings before interest, taxes, depreciation and amortisation of goodwill (EBITA)	19,678	6,215	29,023	2,963
Amortisation of goodwill Operating result (EBIT)	0 19,678	0 6,215	0 29,023	0 2,963
Financial expenses	-1,030	-1,819	-2,473	-3,595
Other financial results	-530	679	-407	776
Financial result	-1,560	-1,139	-2,880	-2,820
Earnings before tax	18,118	5,075	26,143	143
Taxes on income	-247	-784	-310	-1,373
Net profit	17,871	4,291	25,833	-1,229
thereof minority interest	-105	-231	-311	-368
thereof group result	17,765	4,060	25,522	-1,597
Earnings per share	0.80	0.18	1.14	-0.07

TOTAL COMPREHENSIVE INCOME

1.1. - 30.6. 2011	GROUP	MINORITIES	TOTAL
Profit after tax	25.522	311	25.833
Currency translation	-2,352	15	-2,337
Total comprehensive income	23,170	326	23,496
1.1. -30.6. 2010	GROUP	MINORITIES	TOTAL
Profit after tax	-1,597	368	-1,229
Currency translation	1,614	15	1,629
Market valuation of securities available for sale	2,946	0	2,946
Total comprehensive income	2,963	383	3,346

BALANCE SHEET

ASSETS	JUNE 30, 2011	DECEMBER 31, 2010
A. FIXED ASSETS
I. Intangible assets	597	1,622
II. Goodwill	19,180	19,180
III. Tangible assets	55,911	92,115
IV. Investments in affiliated companies	205	280
V. Investments in associated companies	31	31
VI. Other finacial assets	873	2,478
VII. Deferred tax assets	16,609	17,086
	93,405	132,792
B. CURRENT ASSETS
I. Inventories	56,313	67,141
II. Trade accounts	65,813	79,567
III. Interest bearing receivables	17,479	0
VI. Cash and cash equivalents	38,920	29,013
	178,525	175,720
	271,930	308,512

LIABILITIES	JUNE 30, 2011	DECEMBER 31, 2010
A. SHAREHOLDERS EQUITY
I. Share capital	22,330	22,330
II. Capital reserves	37,563	37,563
III. Minority interests	4,314	3,988
IV. Retained earnings	46,624	23,455
	110,832	87,336
B. LONG-TERM LIABILITIES
I. Interest bearing liabilities	15,518	22,206
II. Provision for deffered taxes	4,973	5,566
III. Long term provisions for personnel	17,131	24,878
IV. Other long term liabilities	1,062	3,231
	38,684	55,880
C. SHORT-TERM LIABILITIES
I. Trade accounts payable	44,280	65,565
II; Short-term interest-bearing liabilities	15,379	25,878
III. Short-term portion of long-term loans	5,000	9,204
IV. Income tax liabilities	4,702	2,922
V. Other short-term liabilities	53,053	61,728
	122,414	165,296
	271,930	308,512

CASH FLOW STATEMENT

		H1 2011	H1 2010
	Earnings before tax	26,143	143
-	Income taxes	-589	-928
+(-)	Depreciation (appreciation) of fixed assets	10,965	13,618
+(-)	Non-cash expenses/ gains from first-time- and deconsolidation	-7,211	0
+(-)	Other non-cash expenses/income	462	552
=	Consolidated financial Cash flow	29,770	13,384
+(-)	Changes in net working capital	-2,429	-16,274
=	Cash flow from operating activities	27,340	-2,890
+(-)	Cash flow from investing activities	18,162	-6,423
+(-)	Cash flow from financing activities	-35,595	-8,344
=	Changes in cash and cash equivalents	9,908	-17,657
+	Opening balance of cash and cash equivalents	29,013	31,857
=	Closing balance of cash and cash equivalents	38,920	14,199

SHAREHOLDERS EQUITY

	SHARE CAPITAL	CAPITAL RESERVES	TREASURY STOCK	MINORITY INTERESTS	RETAINED EARNINGS	TOTAL
Balance as of January 1, 2011	22,330	37,563	0	3,988	23,455	87,336
Total comprehensive income				326	23,170	23,496
Balance as of June 30, 2011	22,330	37,563	0	4,314	46,625	110,832

	SHARE CAPITAL	CAPITAL RESERVES	TREASURY STOCK	MINORITY INTERESTS	RETAINED EARNINGS	TOTAL
Balance as of January 1, 2010	22,330	37,563	-216	3,406	-1,601	61,483
Total comprehensive income				383	2,963	3,346
Disposal of treasury stock			216		-216	0
Dividend				-105		-105
Balance as of June 30, 2010	22,330	37,563	0	3,684	1,147	64,724

SEGMENT REPORTING

In TEUR

AUTOMOTIVE / SYSTEMS	Q2 2011	Q2 2010	Change in %	H1 2011	H1 2010	Change in %
Sales	179.516	176.607	1,6%	357.926	317.742	12,6%
EBITDA	20.398	10.001	103,9%	33.108	11.126	197,6%
EBIT	15.754	3.930	300,9%	23.350	-1.105	-2213,9%
Net income	14,078	1,999	604.4%	20,281	-5,008	-505.0%
Capex	3,553	4,995	-28.9%	6,731	8,548	-21.3%
CAR STYLING	Q2 2011	Q2 2010	Change in %	H1 2011	H1 2010	Change in %
Sales	19,661	20,605	-4.6%	37,357	39,851	-6.3%
EBITDA	2,129	2,375	-10.4%	3,575	4,258	-16.0%
EBIT	1,863	1,941	-4.0%	2,850	3,395	-16.0%
Net income	1,667	1,616	3.1%	2,483	2,862	-13.3%
Capex	182	125	45.3%	428	313	36.7%
Others/Consolidation	Q2 2011	Q2 2010	Change in %	H1 2011	H1 2010	Change in %
Sales	5,387	3,857	39.7%	10,075	8,185	23.1%
EBITDA	2,302	605	280.4%	3,306	1,197	176.3%
EBIT	2,061	344	499.1%	2,823	672	319.9%
Net income	2,126	677	214.3%	3,069	916	235.0%
Capex	86	112	-23.3%	380	274	38.6%
GROUP	Q2 2011	Q2 2010	Change in %	H1 2011	H1 2010	Change in %
Sales	204,564	201,068	1.7%	405,358	365,778	10.8%
EBITDA	24,828	12,982	91.3%	39,988	16,580	141.2%
EBIT	19,678	6,215	216.6%	29,023	2,963	879.6%
Net income	17,871	4,291	316.5%	25,833	-1,229	-2201.2%

SELECTED EXPLANATORY NOTES

ACCOUNTING AND EVALUATION METHODS

This interim report as of June 30, 2011 was compiled pursuant to the legal provisions of International Financial Reporting Standards(IFRS), and more specifically, in conformity with IAS 34 (interim reports). The same accounting and evaluation methods adopted on December 31, 2010 were also applied to this report. For further information regarding accounting and evaluation principles ofthe POLYTEC GROUP, please refer to the consolidated financial statements as of December 31, 2010.

BUSINESS SEASONALITY

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

BASIS OF CONSOLIDATION

The consolidated financial statements include all relevant domestic and foreign companies, of which Polytec Holding AG directly or indirectly holds the majority of voting rights.

Under the purchase agreement dated June 9, 2011, the ìInteriorî business area was sold to Toyota Boshoku Europe N.V., Zaventem, Belgium. The transfer of the economic ownership took place at the closing ofthe transaction as of June 30, 2011. The Board ofDirectors of Polytec Holding AG decided to dispose of this business area despite its outstanding technology expertise. The main reasons behind this strategic decision include the low prospects to reach a global positioning in this area, which is considered a basic pre-requisite for future business success, and the extremely high competition pressure exerted by a few global players. After extensive examination and careful consideration by the Board of Directors of Polytec Holding AG, Toyota Boshoku proved to be the best candidate among all potential buyers in the interests of the shareholders, the customers and the employees of the concerned sites.

The sold ìInteriorî business area had a total headcount of roughly 2,000 employees and recorded total sales of approximately EUR 340 million in the 2010 business year. The main products of this business area encompassed door trim panels, headliners and pillar trims. POLYTECís production site in Spain (Zaragoza) was not sold. The divested sites include Polytec Interior South Africa (Proprietary) Ltd. in South Africa and Polytec Interior Polska Sp.z.o.o. in Poland aswell as 4 sites in Germany (POLYTEC Interior GmbH). These sites were passed on to the acquirer through the divestment of 100% of the stakes held in the corresponding companies. Sites in Hodenhagen (which had been part ofthe POLYTEC Riesselmann GmbH & Co KG so far)and Waldbrˆl (POLYTEC Intex GmbH & Co KG)were passed on to the acquirer based on asset deals. Polytec Automotive GmbH & Co KG was also transferred to POLYTEC Interior GmbH as of April 30, 2011 within the framework of an asset deal. The divestment of the ìInteriorî business area willhelp to considerably strengthen POLYTECís core business and increase the Groupís average operating margins. Furthermore, it provides POLYTECís management with the necessary flexibility to expand the companyís core activities in the exterior business as well as in the area of car engines, engine parts and injection-molded components, which is a top priority for the Board in line with the long-term strategy of the Group. Potential acquisitions aimed at strategically complementing POLYTECís core business activities are evaluated on an ongoing basis.

In the first half of 2011 the basis of consolidation changed asfollows:

As of December 31, 2010	29
Disposal due to company divestments	-3
As of June 30, 2011	26

As a result, the basis of consolidation has been further reduced by two companies, POLYTEC Intex GmbH & Co KG and Polytec Automotive GmbH & Co KG. Following the finalization of the asset deals, the remaining business activities will be of subordinated importance for the consolidated financial statements.

In the first half of 2011, the following companies were deconsolidated:

Company	SHARE ON EQUITY	DECONSOLIDATION DATE
Polytec Interior GmbH	100%	June 30, 2011
Polytec Interior Polska Sp.z.o.o.	100%	June 30, 2011
Polytec Interior South Africa (Proprietary) Ltd.	100%	June 30, 2011

The contribution of the ìInteriorî business area to the values shown in the income statement for the 2011 business year is as follows:

in TEUR
Sales	160,844
Net profit	402

The gain resulting from the disposal of the ìInteriorî business area was calculated by offsetting the disposed net assets by the total consideration received for the disposal, while taking into account the translation differences that had been hitherto directly recognized in equity. At the time of the compilation of this interim report for the first half of 2011, the ultimate value of the net assets to be passed on to the buyer within the framework of asset deals between POLYTEC Holding AG and Toyota Boshoku Europe N.V., Zaventem Belgium, had not been determined yet. However, no major changes in the calculation of the divestment gain are expected.

in TEUR
Consideration received	24,454
Disposed net assets	-18,768
Cumulative exchange differences, which where reclassified from the equity due to change of control of the
subsidiary	1,525
Gain on disposal	7,211

The gain on disposal was reported under the item deconsolidation gain in the income statement. The total consideration received for the disposal includes cash and cash equivalents as well as transaction-related expenses. Taking into account the cash and cash equivalents of the sold ìInteriorî business area with an amount of TEUR 6,179 as of June 30, 2011, total cash flow amounts to TEUR 24,128.

The net assets sold showed the following amount:

in TEUR
Long term assets	32,384
Short term assets	90,709
Long term provisions and liabilities	-16,902
Short term provisions and liabilities	-87,422
Net assets ìInteriorî as of 30.6.2011	18,768

DECLARATION BY THE BOARD OF DIRECTORS

The Board ofDirectors declares that these condensed consolidated interim financialstatements, which were prepared in accordance with the applying accounting standards, provide a true and fair view of the asset, financial and earnings situation of the POLYTEC GROUP. The Board also declares that the consolidated half-year management report provides a true and fair view of the asset, financial and earnings situation of the Group with regard to the most important

events during the first six months of 2011 and their potential implications for the condensed consolidated interim financial statements. This half-year management report also takes the principal risks and uncertainties for the second half of 2011 into due account.

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

Hˆrsching, August 3, 2011

Friedrich Huemer Alfred Kollros Peter Haidenekl Chairman Member Member

POLYTEC GROUP

POLYTEC HOLDING AG Headquarters Linzer Strasse 50 4063 Hˆrsching AUSTRIA Phone: +43-7221-701-292 Fax: +43-7221-701-40 investor.relations@polytec-group.com

www.polytec-group.com/investor