PVA TePla AG — Interim / Quarterly Report 2015

Aug 14, 2015

Intermediate Report

Intermediate Report January 1 – June 30, 2015

IMPORTANT CONSOLIDATED FIGURES AT A GLANCE

EUR'000	H1 / 2015	H1 / 2014	H1 / 20134)
Sales revenues	33,512	38,694	29,607
Industrial Systems	14,877	18,184	12,754
Semiconductor Systems	18,635	20,510	16,853
Gross profit	6,656	7,946	2,216
in % sales revenues	19.9	20.5	7.5
R&D expenses	-1,403	-1,013	-1,586
Operating result (EBIT)	-2,042	-5,121	-8,182
in % sales revenues	-6.1	-13.2	-27.6
Consolidated net result	-2,112	-4,065	-5,911
in % sales revenues	-6.3	-10.5	-20.0
Earnings per Share (EPS) in EUR1)	-0.10	-0.19	-0.27
Capital expenditure	255	594	339
Total assets	89,034	89,0372)	92,3632)
Shareholders' equity	37,007	38,8152)	50,3072)
Equity ratio in %	41.6	43.62)	54.52)
Employees as of 30.06.	355	417	494
Incoming orders	56,261	30,851	32,294
Order backlog	61,135	34,6623)	31,545
Book-to-bill-ratio	1.68	0.80	1.09
Cash Flow from operating activities	-814	-10,460	-1,572

1) Circulating shares on average 21,749,988

2) As of December, 31

3) Due to canceled orders the comparative figures have been adjusted

4) Due to the disclosure of interest in pension liabilities the comparative figures have been adjusted

Content

Foreword by the Management Board	4
PVA TePla Shares	6
Interim Group Management Report	9
Basic Principles of the Group	10
Economic Report	11
Supplementary Report	15
Risk, Opportunities and Forecast Report	15
Interim Consolidated Financial Statements	17
Consolidated Balance Sheet	18
Consolidated Income Statement	20
Consolidated Statement of Comprehensive Income	21
Consolidated Cash Flow Statement	22
Consolidated Statement of Changes in Equity	23
Selected Notes	24
Financial Calendar	30
Imprint	30

Foreword by the Management Board

DEAR SHAREHOLDERS AND BUSINESS PARTNERS OF PVA TEPLA,

The first seven months under the new company structure, with an AG (public limited company), which acts as the management and function holding company, and subsidiaries, which carry out the operating business, are now behind us. We already rate the new structure as positive all round. On the one hand, the cost structure has eased considerably as planned and in future we will no longer – unlike in recent years – be highly dependent on large orders. On the other hand, the subsidiaries have been able to respond to their customers' needs in a more flexible and market-specific manner. This process is by no means complete, but we are on the right track to becoming a Group with growthoriented and profitable subsidiaries.

In the first half of 2015, incoming orders at a good EUR 56 million were up considerably year on year. Both divisions benefited equally from this development. The increase in incoming orders reflected in a book-to-bill ratio of 1.7 shows that we are on a path to growth, albeit from a low level. The order backlog for sales revenues in 2016 was already in July close at the level we were able to report for 2015 at the end of 2014. This allows us to be much more optimistic and confident going forward. Our product developments in the last few years create the ideal conditions for accessing new markets and regions. Thanks to the current high-quality project pipeline, both divisions can expect to continue to see healthy customer order numbers in the months ahead.

Due to the low order backlog at the beginning of the year, Group sales revenues stand at around EUR 34 million as expected. Sales revenues will improve in the second half of 2015 as scheduled. At EUR -2.0 million in the first half of the year, the operating result was still weighed down by capacity underutilization and accompanying measures in connection with the reorganization. It is already evident that the further optimized cost structure is beginning to have the desired effect and we anticipate a balanced operating result at the end of the year as announced at the start of 2015.

On behalf of our managing directors and all employees, we would like to thank you, our shareholders, for your trust in and commitment toward our Company.

Peter Abel Chief Executive Officer

Oliver Höfer Chief Operating Officer

Henning Döring Chief Financial Officer

The Shares

PERFORMANCE

The price of PVA TePla shares increased significantly in the first six months of 2015, rising from EUR 1.62 on December 31, 2014 to EUR 2.55 on July 15, 2015. The stock's liquidity on stock exchange markets also improved in the first half of the year, with PVA TePla shares becoming more attractive, as more positive market and company estimates by analysts also show.

ANNUAL GENERAL MEETING

This year's Annual General Meeting of PVA TePla AG was held on June 12 at the Congress Center in Giessen. The agenda items were approved by a majority of almost 100% of the around 40% share of shareholders who were present.

CEO Peter Abel and CFO Henning Döring explained to the attending shareholders the cost-cutting measures implemented and the measures to reorganize the PVA TePla Group, which will lead to savings of some EUR 5 million in the current fiscal year and will subsequently strengthen the Group's profitability going forward.

Shareholdings and Subscription Rights of Executive Body Members

MANAGEMENT BOARD

	Shares Jun. 30, 2015	Shares Dec. 31, 2014	Subscription rights Jun. 30, 2015	Subscription rights Dec. 31, 2014
Peter Abel (PA Beteiligungs gesellschaft)	5,784,000	5,774,000	0	0
Oliver Höfer	1,100	1,100	0	0
Henning Döring	0	0	0	0

SUPERVISORY BOARD

	Shares Jun. 30, 2015	Shares Dec. 31, 2014	Subscription rights Jun. 30, 2015	Subscription rights Dec. 31, 2014
Alexander von Witzleben	15,150	15,150	0	0
Dr. Gernot Hebestreit	0	0	0	0
Prof. Dr. Mar kus H. Thoma	0	0	0	0

Performance of PVA TePla Shares January 1, 2015 – July 14, 2015 in % / 1-day-interval

PVA TePla AG DAXSubs. Advanced Industrial Equipment Tec All Share

Interim Group Management Report

Basic Principles of the Group	10
Business Activities	10
Reporting Segments	10
Research and Development	11
Economic Report	11
Macroeconomic and Sector Environment	11
Business Development	12
Position	13
Financial and Non-Financial Performance Indicators	15
Supplementary Report	15
Risk, Opportunities and Forecast Report	15

Interim Group Management Report

1. BASIC PRINCIPLES OF THE GROUP

Business Activities

The PVA TePla Group, headquartered in Wettenberg, Germany, employed around 350 people as of June 30, 2015. It develops and constructs systems for its customers for the production and refinement of high-quality materials, which are processed under high temperatures and in vacuum conditions, under inert gas overpressure and in low pressure and atmospheric plasma.

Reporting Segments

The Group has structured its business into two divisions: Industrial Systems and Semiconductor Systems. The chart provides an overview of how subsidiaries are allocated to the divisions:

CHANGES TO THE REPORTING SEGMENTS

The extensive reorganization of the Group was completed as of January 1, 2015 and the process has been described in detail in past reports, particularly in the Group management report as of December 31, 2014. PVA TePla AG now acts as a management and function holding company and the Company's operating business has been outsourced to the subsidiaries. As a result of the reorganization, the number of subsidiaries and accounts has fallen considerably and the corporate structure has been downsized to one appropriate for a medium-sized company.

Research and Development

The costs for research and development (R&D) for the Group within the reporting period totaled EUR 1.4 million (prior year: EUR 1.0 million).

In the Industrial Systems division, R&D is generally largely conducted based on paid customer orders; these costs are thus recorded under cost of sales and are not reported separately. R&D activity leading to innovations and product optimization is estimated at approximately 10% of the total design engineering output. Lower capacity utilization in the construction department in the first half of 2015 was used for additional development projects with a focus on "industry 4.0". The software and management systems were further developed to improve communication. In the second quarter of 2015, the development activities in hot press heat treatment systems (high-vacuum diffusion bonding systems for joining and forming processes) were largely geared towards optimizing the press system up to 500 tons of pressing force. The emphasis was on the introduction of new materials for dies, which are subject to extreme mechanical and thermal pressure. In cooperation with an established material research institution, the suitability of high-temperature compound materials with high compressive strength and durability is being examined for the use of dies. The temperature and power distribution of our systems is already world class. Another focus of development activities was the new high-temperature vacuum brazing furnace with active debinding. The growing use of soldering paste in the mass production of stainless steel components for the automotive industry triggered this innovation. Due to its use huge quantities of outgas from the paste's organic binder cause excessive contamination of conventional vacuum furnaces and their pump systems. The developed debinding system, which is worthy of a patent, solves this problem and prevents the condensation of binding components through a specially designed process room with thermal afterburning. This provides customers with a system which offers greater availability compared to conventional vacuum brazing systems and also operates with considerably lower maintenance costs. Given the high degree of relevance to the market, the property rights for this product have been registered with the European Patent Office. The response from potential users from the automotive sector regarding the newly developed technology has been positive all round, which implies the product will soon be launched on the market.

In the Semiconductor Systems division, a fully automated laser analytical system was developed for wafers in the second quarter, which is geared towards both 300mm silicon wafers and the next generation of 450mm wafers. These analytical systems measure and analyze shear stress (shifting of crystal levels against each other) and defects in nanometers. Such a "bridge tool" is a global innovation and is making a significant contribution towards optimizing costs in production in the semiconductor industry. In ultrasound measurement systems, the development of a new hardware and software platform was completed which allows for fully automated analysis of defects of complete components in power electronics at several levels.

2. ECONOMIC REPORT

Macroeconomic and Sector Environment

MACROECONOMIC ENVIRONMENT

Below is a brief outline of the expected economic development in the PVA TePla Group's key regions in the current fiscal year:

• » According to economic analyses from July 2015, German GDP growth is expected to be 1.6% in 2015 compared to 2014.
• » In the Eurozone, GDP growth is estimated at 1.4% compared to 2014.
• » GDP growth of 7.0% is forecast in China in 2015.
• » In the USA, GDP growth is estimated at 2.3% compared to the prior year.

SECTOR ENVIRONMENT

The PVA TePla Group foresees a revival in its relevant markets for 2015. The photovoltaics market continues to be characterized by overcapacities in 2015; there are still several solar projects within and outside Europe where financing appears to be more stable compared to prior years for similar projects. The hard metal market, the largest single market for the Vacuum Systems business unit, is registering a renewed increase in capacities in 2015. Investments in wafer production systems for the semiconductor industry – especially for 300mm wafers – are showing a positive development in the medium term.

• » Production in the German mechanical engineering industry in the first five months of 2015 was 2.5% below the prior year and will achieve the level recorded in 2014 at best for full-year 2015.
• » The photovoltaic installations are expected to grow substantially in 2015 and the next few years. Due to the existing overcapacities in the Chinese market, it remains to be seen to what extent investments will be made in new production facilities, also outside China. The continuation of tariffs imposed on Chinese solar modules is a key factor in this regard.
• » In the semiconductor industry, slight sales revenue growth of around 2% is expected for the global semiconductor industry compared to 2014. In the wafer manufacturing segment – which is particularly important for PVA TePla Group's Crystal Growing Systems – new investments in equipment are perceivable.

Business Development

SALES REVENUES

In the first six months of 2015, PVA TePla Group generated sales revenues of EUR 33.5 million, which, as expected, is lower than the prior year (EUR 38.7 million). The reason for the weaker consolidated sales revenues in the first half of the year is the Group's lower order backlog at the beginning of fiscal year 2015. Incoming orders for vacuum systems in the Industrial Systems division in the first half of the year will contribute to sales revenues from the third quarter of the current fiscal year while large orders in the Semiconductor Systems division will primarily impact 2016 and 2017 sales revenues.

Sales Revenues by Division EUR'000	H1 / 2015	H1 / 2014
Industrial Systems	14,877	18,184
Semiconductor Systems	18,635	20,510
Total Sales revenues	33,512	38,694

The Industrial Systems division generated sales revenues of EUR 14.9 million (prior year: EUR 18.2 million). In particular, sales revenues were generated by processing orders for the vacuum systems for the hard metal market and brazing systems for various markets. Sales revenues in the Semiconductor Systems division amounted to EUR 18.6 million (prior year: EUR 20.5 million). The Plasma Systems business unit proved to be the best-performing business unit in terms of sales revenues within the Semiconductor Systems division.

INCOMING ORDERS

Incoming orders for the PVA TePla Group came to EUR 56.3 million in the first six months of 2015 (prior year: EUR 30.9 million). The book-to-bill-ratio stood at 1.7 (prior year: 0.8). The recovery which was visible in the first quarter of 2015 continued in the second quarter.

Incoming orders in the Industrial Systems division totaled EUR 16.9 million in the first six months of 2015 (prior year: EUR 14.1 million) and were in line with expectations. The majority of orders, particularly from the Chinese market, concerned heat treatment systems for the production of hard metal. Incoming orders for plasma nitriding systems on the European market to harden steel surfaces were strong. The Semiconductor Systems division generated incoming orders of EUR 39.3 million, a sharp year-on-year increase (prior year: EUR 16.7 million). Orders in the Crystal Growing Systems business unit accounted for most of the incoming orders in this division. The Plasma Systems business unit also reported an improvement in incoming orders.

ORDER BACKLOG

The order backlog, consolidated and net of sales recognized according to the percentage of completion method (PoC), came to EUR 61.1 million on June 30, 2015, which is considerably higher than the prior year's EUR 34.7 million. Order backlog for the Industrial Systems division totaled EUR 22.6 million as of June 30, 2015, which was slightly below the prior year's EUR 24.6 million. In the Semiconductor Systems divison, the order backlog was EUR 38.6 million compared to the prior year's EUR 10.1 million, primarily due to supply contracts from the wafer industry.

PRODUCTION

In the first half of 2015, systems production and contract processing were performed in Germany at the locations Wettenberg, Westhausen and Jena. The production location outside Germany is Corona in the USA.

Vertical integration remained low across all areas. Parts are manufactured in-house only to a minor extent. This means material costs are relatively high in percentage terms, but allows for rapid and flexible adjustment of production capacity as necessary to meet potential changes in demand in the event of fluctuations in incoming orders.

Position

RESULTS OF OPERATIONS

In the first six months of 2015, operating profit (EBIT) amounted to EUR -2.0 million (June 30, 2014 [prior year]: EUR -5.1 million) while the consolidated net result for the period came in at EUR -2.1 million (prior year: EUR -4.1 million). The EBIT margin amounted to -6.1% (prior year: -13.2%). Return on sales amounted to -6.3% (prior year: -10.5%).

Based on consolidated sales revenues of EUR 33.5 million (prior year: EUR 38.7 million), gross profit amounted to EUR 6.7 million (prior year: EUR 7.9 million) and the gross margin stood at 19.9% (prior year: 20.5%) and is slightly below the prior year's level due to lower capacity utilization.

Selling and distribution expenses were down slightly in the first half of 2015 compared to the prior year and amounted to EUR 4.1 million (prior year: EUR 4.3 million) and include burden relating to cost-saving measures of EUR 0.1 million. General administrative expenses were down year on year, from EUR 3.7 million to EUR 3.2 million, due to the cost reduction measures implemented in fiscal year 2014 and include EUR 0.2 million in costs for financing expenses.

R&D costs have risen to EUR 1.4 million (prior year: EUR 1.0 million). At EUR 1.1 million (prior year: EUR 4.7 million), other operating expenses were sharply lower compared to the prior year which was negatively impacted by specific valuation allowances for future receivables on construction contracts and trade receivables. Other operating income in the amount of EUR 1.1 million (prior year: EUR 0.7 million) mainly included income from grants in the context of R&D projects, income from exchange rate differences as well as the release of provisions.

The low volume of sales in the first half year of 2015 had an impact in both divisions equally. Due to the undercapacity in the Industrial Systems division, EBIT in this division came to just EUR +0.001 million (prior year: EUR +0.4 million). The Semiconductor Systems division generated EBIT of EUR -1.1 million (prior year: EUR -4.5 million). With the beginning of the new organization as of January 1, 2015 "Holding costs" are recognized for the first time in the segment reporting, which contributed EUR -1.1 million to operating loss in the first half year. These costs include expenses which are not directly related to the Group's operating performance and do not involve service functions (so-called shareholder costs). The holding function costs and transfer of service costs are reviewed on a semiannual basis. Subsequently, minor adjustments may be required during the course of the year.

The net balance of interest income and interest expenses came to a total of EUR -0.3 million (prior year: EUR -0.5 million) due to lower throughput rates and improvements in market value for non-effective hedging transactions. Net result before tax amounted to EUR -2.3 million (prior year: EUR -5.6 million) and the consolidated net result for the period amounted to EUR -2.1 million (prior year: EUR -4.1 million). Income taxes, which totaled EUR 0.2 million (prior year: EUR 1.5 million), comprised tax refund of EUR 0.17 million (prior year: EUR 0.0 million) and deferred taxes of EUR 0.03 million (prior year: EUR 1.5 million).

FINANCIAL POSITION

Investments

Investments totaled EUR 0.3 million in the first half of 2015 (prior year: EUR 0.6 million). These investments are mainly attributed to plant and office equipment and software.

Liquidity

Operating cash flow was slightly negative at EUR -0.8 million in the first six months of 2015 (first half of 2014 [prior year]: EUR -10.5 million). Operating cash flow fluctuates heavily from one reporting date to the next in the Vacuum Systems and Crystal Growing Systems business units due to the project structure of orders and methods of payment. For example, we received advance payments of EUR 5.0 million after the reporting date.

Cash flow from investing activities amounted to EUR -0.2 million (prior year: EUR -0.6 million). Cash flow from financing activities was EUR -1.4 million (prior year: EUR +5.6 million). Total cash flow in the first six months of 2015, including exchange rate differences, amounted to EUR -2.0 million (prior year: EUR -5.1 million). Free cash flow was EUR -1.1 million (prior year: EUR -11.1 million). The net financial position (cash and cash equivalents less non-current financial liabilities) amounted to EUR -7.8 million (prior year: EUR -12.1 million).

Asset Position

Total assets amounted to EUR 89.0 million as of June 30, 2015, and were on the same level as of December 31, 2014 [prior year].

The value of property, plant and equipment grew to EUR 30.3 million (prior year: EUR 29.8 million) due to internally produced laboratory and demonstration equipment (previously: finished products) of EUR 1.4 million which will be permanently used for operational purposes. Intangible assets remained unchanged at EUR 8.7 million (prior year: EUR 8.7 million). Deferred tax assets rose by EUR 0.4 million to EUR 4.7 million (prior year: EUR 4.3 million). Overall, non-current assets totaled EUR 44.1 million versus EUR 43.2 million in the prior year.

Current assets at EUR 44.9 million were slightly lower (prior year: EUR 45.8 million). The largest change was caused by a decrease in cash by EUR 2.0 million which was offset by a similarly sharp increase in raw materials, consumables and supplies. Finished products and goods fell by EUR 1.5 million particularly due to the reclassification of laboratory and demonstration equipment.

On the liabilities side of the balance sheet, non-current liabilities (including non-current provisions) rose by a small margin to EUR 22.1 million (prior year: EUR 21.8 million). As expected, the reported value of pension provisions increased to EUR 15.0 million (prior year: EUR 14.0 million). Non-current financial liabilities declined to EUR 5.0 million (prior year: EUR 5.8 million). Current liabilities rose to EUR 30.0 million (prior year: EUR 28.4 million). Current financial assets fell to EUR 6.5 million (prior year: EUR 6.7 million); this includes a long-term credit line related to investment property of currently EUR 5.0 which is scheduled to be repaid in 2015. Trade payables rose to EUR 2.8 million (prior year: EUR 1.6 million) on account of the increase in orders; obligations on construction contracts also increased, from EUR 0.04 million in the prior year to EUR 0.4 million. Advance payments on orders slightly decreased to EUR 12.5 million (prior year: EUR 12.9 million) as a result of the project structure of the orders. Other current provisions remained practically unchanged at EUR 1.7 million (prior year: EUR 1.6 million). Accrued liabilities increased to EUR 4.8 million (prior year: EUR 4.1 million) due to higher order volumes and obligations to employees.

Shareholders' equity decreased slightly to EUR 37.0 million (prior year: EUR 38.8 million) due to the net loss for the period of EUR -2.1 million (prior year: EUR -4.1 million). The equity ratio dropped to 41.6% (prior year: 43.6%).

Non-Financial Performance Indicators

EMPLOYEES

As of June 30, 2015, the Group employed 355 people (December 31, 2014: 391 employees; June 30, 2014: 417 employees). The number of employees decreased slightly over June 30, 2014 due to measures to reduce personnel costs.

3. SUPPLEMENTARY REPORT

There have been no significant events since June 30, 2015.

4. RISK, OPPORTUNITIES AND FORECAST REPORT

During the first two quarters of fiscal year 2015, there were no significant changes to the opportunities and risks presented in the management report 2014 other than those described below.

Market Risks

From a current perspective, there are no further risks to the Group. It should be pointed out that from today's perspective the effect of general cooling of the Chinese economy and the stock market crash in China on the global economy and particularly the German mechanical engineering sector cannot be evaluated at present.

Forecast Report

For the current fiscal year, the Management Board of PVA TePla continues to anticipate consolidated sales revenues between EUR 70 million and EUR 80 million and a balanced EBIT.

Wettenberg, August 13, 2015

Interim Consolidated Financial Statements

Consolidated Balance Sheet	18
Consolidated Income Statement	20
Consolidated Statement of Comprehensive Income	21
Consolidated Cash Flow Statement	22
Consolidated Statement of Changes in Equity	23
Selected Notes	24

Interim Consolidated Financial Statements

CONSOLIDATED BALANCE SHEET

as at June 30, 2015

ASSETS EUR'000	Jun. 30, 2015	Dec. 31, 2014
Non-current assets
Intangible assets	8,724	8,724
Goodwill	7,808	7,808
Other intangible assets	866	886
Payments in advance	50	30
Property, plant and equipment	30,263	29,756
Land, property rights and buildings, including buildings on third party land	25,219	25,722
Plant and machinery	3,747	2,560
Other plant and equipment, fixtures and fittings	1,236	1,373
Advance payments and assets under construction	61	101
Investment property	356	367
Non-current investments	10	9
Deferred tax assets	4,738	4,333
Total non-current assets	44,091	43,189
Current assets
Inventories	21,377	21,370
Raw materials and operating supplies	8,889	6,891
Work in progress	11,337	11,877
Finished products and goods	1,151	2,602
Coming receivables on construction contracts	7,186	7,490
Trade and other receivables	12,441	10,977
Trade receivables	8,447	7,692
Payments in advance	1,914	1,412
Other receivables	2,080	1,873
Tax repayments	240	286
Cash	3,699	5,725
Total current assets	44,943	45,848
Total	89,034	89,037

The following notes are an integral part of the Interim Consolidated Financial Statements.

LIABILITIES AND SHAREHOLDERS' EQUITY EUR'000	Jun. 30, 2015	Dec. 31, 2014
Shareholders' equity
Share capital	21,750	21,750
Revenue reserves	18,686	20,799
Other reserves	-3,344	-3,649
Minority interest	-85	-85
Total shareholders' equity	37,007	38,815
Non-current liabilities
Non-current financial liabilities	4,944	5,847
Other non-current liabilities	663	755
Retirement pension provisions	14,962	13,975
Deferred tax liabilities	1,327	1,067
Other non-current provisions	224	168
Total non-current liabilities	22,120	21,812
Current liabilities
Short-term financial liabilities	6,528	6,739
Trade payables	2,793	1,563
Obligations on construction contracts	352	41
Advance payments received on orders	12,486	12,926
Accruals	4,780	4,074
Other short-term liabilities	1,282	1,279
Provisions for taxes	3	190
Other short-term provisions	1,683	1,598
Total current liabilities	29,907	28,410

Total 89,034 89,037

The following notes are an integral part of the Interim Consolidated Financial Statements.

CONSOLIDATED INCOME STATEMENT

EUR'000	Apr. 1 - Jun. 30, 2015	Apr. 1 - Jun. 30, 2014	Jan. 1 - Jun. 30, 2015	Jan. 1 - Jun. 30, 2014
Sales revenues	16,840	19,583	33,512	38,694
Cost of sales	-13,402	-15,340	-26,856	-30,748
Gross profit	3,438	4,243	6,656	7,946
Selling and distributing expenses	-2,101	-2,177	-4,098	-4,330
General administrative expenses	-1,391	-2,053	-3,180	-3,719
Research and development expenses	-1,018	-599	-1,403	-1,013
Other operating income	438	241	1,058	706
Other operating expenses	-652	-4,128	-1,075	-4,711
Operating result (EBIT)	-1,286	-4,473	-2,042	-5,121
Finance revenues	67	27	155	65
Finance costs	-133	-153	-423	-542
Financial result and share of profits from associates	-66	-126	-268	-477
Net result before tax	-1,352	-4,599	-2,310	-5,598
Income taxes	-247	1,247	198	1,533
Consolidated net result for the period	-1,599	-3,352	-2,112	-4,065
of which attributable to
Shareholders of PVA TePla AG	-1,599	-3,352	-2,112	-4,065
Minority interest	0	0	0	0
Consolidated net result for the period	-1,599	-3,352	-2,112	-4,065
Earnings per share
Earnings per share (basic) in EUR	-0.02	-0.03	-0.02	-0.03
Earnings per share (diluted) in EUR	-0.02	-0.03	-0.02	-0.03
Average number of share in circulation (basic)	21,749,988	21,749,988	21,749,988	21,749,988
Average number of share in circulation (diluted)	21,749,988	21,749,988	21,749,988	21,749,988

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

EUR´000	Jan. 1 - Jun. 30, 2015	Jan. 1 - Jun. 30, 2014
Consolidated net result for the period	-2.112	-4.065
of which attributable to shareholders of PVA TePla AG	-2.112	-4.065
of which attributable to minority interest	0	0
Other comprehensive income
Items that may be reclassified to profit or loss
Currency changes	419	-13
Income taxes	-117	3
Changes recognized outside profit or loss (currency changes)	302	-10
Changes in fair values of derivative financial instruments	1	3
Income taxes	0	-1
Changes recognized outside profit or loss (derivative financial instruments)	1	2
Total of items that may be reclassified to profit or loss	303	-8
Other comprehensive income after taxes (changes recognized outside profit or loss)	303	-8
of which attributable to shareholders of PVA TePla AG	303	-8
of which attributable to minority interest	0	0
Total comprehensive income	-1.809	-4.073
of which attributable to shareholders of PVA TePla AG	-1.809	-4.073
of which attributable to minority interest	0	0

CONSOLIDATED CASH FLOW STATEMENT

	EUR'000	Jan. 1 - Jun. 30, 2015	Jan. 1 - Jun. 30, 2014
	Consolidated net result for the period	-2,112	-4,065
	Adjustments to the consolidated net result for the period for reconciliation to the cash flow operating activities:
+	Income taxes	-198	-1,533
-	Finance revenues	-155	-65
+	Finance costs	423	542
=	Operating result	-2,042	-5,121
-	Income tax payments	29	-273
+	Amortization and depreciation	1,167	1,072
-/+	Gains/losses on disposals of non-current assets	7	10
+/-	Other non-cash expenses / income	-23	475
		-862	-3,837
-/+	Increase/decrease in inventories, trade receivables and other assets	-2,250	-7,734
+/-	Increase/decrease in provisions	931	-194
+/-	Increase/decrease in trade payables and other liabilities	1,367	1,305
=	Cash flow from operating activities	-814	-10,460
+	Proceeds from disposals of intangible assets and property, plant and equipment	0	2
-	Payment of intangible assets and property, plant and equipment	-255	-594
+	Interest receipts	23	7
=	Cash flow from investing activities	-232	-585
+	Receipts from issuance of debt and borrowing of loans	0	6,000
-	Payments from redumption of debt and loans	-1,013	-6,023
+/-	Change in short-term bank liabilities	-107	5,730
-	Payment of interest	-230	-135
=	Cash flow from financing activities	-1,350	5,572
	Net change in cash	-2,396	-5,473
+/-	Effect of exchange rate fluctuations on cash	370	338
+	Cash at the beginning of the period	5,725	6,567
=	Cash at the end of the period	3,699	1,432

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

				Other				Total sharehol
			Revenue	equity com	Pension		Minority	ders'
EUR'000	Shared issues		reserves	ponents	provisions	Total	interest	interest
	Number
As at
January 1, 2014	21,749,988	21,750	30,771	-366	-1,765	50,390	-83	50,307
Total income			-9,973	190	-1,706	-11,489	-2	-11,491
As at December
31, 2014	21,749,988	21,750	20,798	-176	-3,471	38,901	-85	38,816
As at
January 1, 2014	21,749,988	21,750	30,771	-366	-1,765	50,390	-83	50,307
Total income			-4,065	-7	0	-4,072	0	-4,072
As at June 30,
2014	21,749,988	21,750	26,706	-373	-1,765	46,318	-83	46,235
As at
January 1, 2015	21,749,988	21,750	20,798	-176	-3,471	38,901	-85	38,816
Total income			-2,112	303	0	-1,809	0	-1,809
As at June 30, 2015	21,749,988	21,750	18,686	127	-3,471	37,092	-85	37,007

Selected Notes

A. GENERAL INFORMATION AND BASIS OF PRESENTATION

PVA TePla AG is a stock corporation in accordance with German law. The Company is entered in the Commercial Register of the Giessen Local Court under HRB 6845. The registered address of the Company is 35435 Wettenberg, Germany.

GENERAL PRINCIPLES AND ACCOUNTING STANDARDS

This interim consolidated financial report complies with IAS 34 (Interim Financial Reporting). This interim financial report has not been audited.

These notes mainly contain details of items in which there have been significant changes as against the consolidated financial statements as of December 31, 2014.

COMPANIES INCLUDED IN CONSOLIDATION

These interim consolidated financial statements of PVA Te-Pla include its fully consolidated subsidiaries in which PVA TePla holds a majority of the shareholders' voting rights (control). The following companies were fully consolidated in the interim financial report as of June 30, 2015:

Name	Corporate domicile	Ownership interest
PVA TePla AG (parent company)	Wettenberg, Germany
PVA Control GmbH	Wettenberg, Germany	100 %
PVA Industrial Vacuum Systems GmbH	Wettenberg, Germany	100 %
PVA Löt- und Werkstofftechnik GmbH	Jena, Germany	100 %
PVA TePla (China) Ltd.	Beijing, PR China	100 %

Name	Corporate domicile	Ownership interest
Munich Metrology Taiwan Ltd.	Hsinchu, Taiwan	100 %
PVA Crystal Growing Systems GmbH	Wettenberg, Germany	100 %
PVA Metrology & Plasma Solutions GmbH	Kirchheim, Germany	100 %
PVA TePla America Inc.	Corona / CA, USA	100 %
PVA TePla Analytical Systems GmbH	Westhausen, Germany	100 %
PVA TePla Singapore Pte. Ltd.	Singapore	100 %
PVA Vakuum Anlagenbau Jena GmbH	Jena, Germany	100 %
Xi'an HuaDe CGS Ltd.	Xi'an, PR China	51 %

PVA Industrial Vacuum Systems GmbH was founded in the last financial year. In fiscal year 2014, the company served only as a "shell company" and took over the operating business "Vacuum Systems" as of January 1, 2015 when the reorganization commenced.

The same applies for the PVA Crystal Growing Systems GmbH, which took over the operating business "Crystal Growing Systems" as of January 1, 2015 as well as for PVA Metrology & Plasma Solutions GmbH - previously acting as an intermediate holding company - which took over the operating business "Plasma Systems" as of January 1, 2015.

In June 2015, the company PlaTeG GmbH, Wettenberg, a 100% owned subsidiary of PVA TePla AG, was merged with PVA Industrial Vacuum Systems GmbH, Wettenberg, retroactively 1 January 2015. All rights and obligations from existing legal transactions and contracts have been transferred to the PVA Industrial Vacuum Systems GmbH.

Also in June 2015, the company Munich Metrology GmbH, Kirchheim, a 100% owned subsidiary of PVA TePla AG, was merged with PVA Metrology & Plasma Solutions GmbH, Kirchheim, retroactively 1 January 2015. All rights and obligations from existing legal transactions and contracts have been transferred to the PVA Metrology & Plasma Solutions GmbH.

PVA TePla AG functions as the management and functional holding company from 1 January 2015.

No further changes have occurred since the 2014 consolidated financial statements.

PRINCIPLES OF CONSOLIDATION

The principles of consolidation applied in this interim financial report are the same as those applied in the consolidated financial statements as of December 31, 2014. The single entity financial statements included in the interim financial statements are prepared with consistent accounting policies according to IAS 27 (Consolidated and Separate Financial Statements) and IFRS 10 (Consolidated Financial Statements).

ACCOUNTING AND VALUATION PRINCIPLES

The accounting and valuation principles applied in this interim financial report as of June 30, 2015 are the same as those applied in the consolidated financial statements as of December 31, 2014.

B. NOTES ON SELECTED BALANCE SHEET ITEMS

FINANCIAL ASSETS

On June 30, 2015, financial assets included other noncurrent receivables in the amount of EUR 10 thousand (31.12.2014 [previous year]: EUR 9 thousand).

COMING RECEIVABLES ON CONSTRUCTION CONTRACTS

EUR'000	Jun. 30, 2015	Dec. 31, 2014	roactive adjustments in the further course of the year.
Capitalized production costs including contract profits	12,242	11,069
for which advance payments received	-5,056	-3,579
Coming receivables on construction contracts	7,186	7,490

OTHER CURRENT RECEIVABLES

Jun. 30, 2015	Dec. 31, 2014
71	138
668	569
99	170
863	352
379	644
2,080	1,873

NON-CURRENT FINANCIAL LIABILITIES

EUR'000	Jun. 30, 2015	Dec. 31, 2014
Non-current financial liabilities	11,470	12,476
Portion of non-current financial liabilities due in less than one year	-6,526	-6,629
Non-current financial liabilities less current portion	4,944	5,847

PENSION PROVISIONS

The increase in pension provisions is based on – fully recognized in the course of the year – additions of all valuation-relevant factors (including actuarial effects) which are based on the projections of our actuaries. A weighted average interest rate for pensioners and aspirants of 1.45% (Previous year: 2.25%) was used. The calculation parameters are reviewed regularly so that it might come to ret-

CURRENT FINANCIAL LIABILITIES

Current financial liabilities reported primarily relate to the current positions of non-current financial liabilities totaling EUR 6,526 thousand (previous year: EUR 6,629 thousand). Current liabilities to banks amounted to EUR 2 thousand (previous year: EUR 110 thousand).

OBLIGATIONS ON CONSTRUCTION CONTRACTS

EUR'000	Jun. 30, 2015	Dec. 31, 2014
Advance payments received (progress billing)	1,888	684
less contract costs incurred (incl. share of profit)	-1,535	-643
Obligations on construction contracts	352	41

OTHER PROVISIONS

Other provisions were divided into non-current (EUR 224 thousand; previous year: EUR 168 thousand) and current provisions (EUR 1,683 thousand; previous year: EUR 1,597 thousand).

EUR'000	Jun. 30, 2015	Dec. 31, 2014
Warranty	851	701
Subsequent costs	457	660
Archiving	101	101
Penalties	83	33
Others	415	270
Total	1,907	1,765

C. NOTES ON SELECTED INCOME STATEMENT ITEMS

ACCRUALS

EUR'000	Jun. 30, 2015	Dec. 31, 2014
Obligations to employees	2,513	2,154
Obligations to suppliers	2,087	1,595
Other commitments	180	325
Accruals	4,780	4,074

EUR'000	Jan. 1 - Jun. 30, 2015	Jan. 1 - Jun. 30, 2014
Systems	22,781	31,943
After-sales	8,434	5,072
Contract processing	1,734	1,586
Others	563	93
Total	33,512	38,694

OTHER CURRENT LIABILITIES

EUR'000	Jun. 30, 2015	Dec. 31, 2014
Payroll and church tax liabilities	712	546
Other liabilities	571	733
Other current liabilities	1,282	1,279

INCOME TAXES

SALES REVENUES

EUR'000	Jan. 1 - Jun. 30, 2015	Jan. 1 - Jun. 30, 2014
Current tax expenses	171	-29
Deferred tax expenses (-) / income	27	1.562
Total income taxes	198	1,533

EARNINGS PER SHARE

	Jan. 1 - Jun. 30, 2015	Jan. 1 - Jun. 30, 2014
Numerator: Consolidated net result for the period before minority interests (EUR '000)	-2,112	-4,065
Denominator: Weighted number of shares outstanding – basic	21,749,988	21,749,988
Earnings per share (EUR)	-0.10	-0.19

D. NOTES ON THE CASH FLOW STATEMENT

The cash flow statement was prepared in line with the same principles as in the consolidated financial statements 2014 and is structured in the same way.

E. ADDITIONAL DISCLOSURES

SEGMENT REPORTING

The segment information for the second quarter is as follows:

EUR'000		External sales revenues		Internal sales revenues		Total sales revenues	Operating result (EBIT)	% of sales revenues	Operating result (EBIT)	% of sales revenues
	2015	2014	2015	2014	2015	2014	2015		2014*
Industrial Systems	6,806	8,712	367	299	7,173	9,011	541	7.9	287	3.3
Semiconduc tor Systems	10,034	10,871	-46	104	9,998	10,975	-1,355	-13.5	-4,148	-38.2
Holding costs	-	-	-	-	-	-	-616	-	-650	-
Segment total	16,840	19,583	321	403	17,161	19,986	-1,430	-8.5	-4,511	-23.0
Consolida tion	0	0	0	0	0	0	144	-	38	-
Group	16,840	19,583	321	403	17,161	19,986	-1,286	-7.6	-4,473	-22.8

*adjusted as disclosed in 2015

The segment information for the first half of the year is as follows:

EUR'000	External sales revenues		Internal sales revenues		Total sales revenues		Operating result (EBIT)	% of sales revenues	Operating result (EBIT)	% of sales revenues
	2015	2014	2015	2014	2015	2014	2015		2014*
Industrial Systems	14,877	18,184	699	518	15,576	18,702	1	0.0	430	2.4
Semiconduc tor Systems	18,635	20,510	-14	118	18,621	20,628	-1,060	-5.7	-4,531	-22.1
Holding costs	-	-	-	-	-	-	-1,087	-	-1,064	-
Segment total	33,512	38,694	685	636	34,197	39,330	-2,146	-6.4	-5,165	-13.3
Consolida tion	0	0	0	0	0	0	104	-	44	-
Group	33,512	38,694	685	636	34,197	39,330	-2,042	-6.1	-5,121	-13.2

*adjusted as disclosed in 2015

The reconciliation of the segment results (EBIT) to the consolidated net result for the period is as follows:

EUR'000	Apr. 1 - Jun. 30, 2015	Apr. 1 - Jun. 30, 2014	Jan. 1 - Jun. 30, 2015	Jan. 1 - Jun. 30, 2014
Total segment results	-1,430	-4,511	-2,146	-5,165
Consolidation	144	38	104	44
Consolidated operating profit (EBIT)	-1,286	-4,473	-2,042	-5,121
Financial result	-66	-126	-268	-477
Results before taxes	-1,352	-4,599	-2,310	-5,598
Income taxes	-247	1,247	198	1,533
Consolidated net result for the period	-1,599	-3,352	-2,112	-4,065

FINANCIAL INSTRUMENTS

Of the financial instruments recognized as of the reporting date, only derivative financial instruments are measured at fair value according to the following fair value hierarchy:

as of June 30, 2015 in EUR'000	Total	Level 1	Level 2	Level 3
Financial liabilities measured at fair value:
Derivative financial instruments	-869	0	-869	0

DERIVATIVE FINANCIAL INSTRUMENTS

In PVA TePla Group, derivative financial instruments are used exclusively to hedge risks from underlying transactions. In particular, these include risks from sales in foreign currencies and interest rate risks.

Forward exchange contracts with a total open volume of EUR 2,900 thousand (previous year: USD 3,290 thousand) were concluded to hedge USD payment claims. These forward exchange contracts were measured at fair value on the basis of the forward exchange rate applicable on the reporting date for the remaining term. The present value of these forward exchange contracts on June 30, 2015 is EUR -29 thousand.

To hedge the interest rate risk for financing investments in buildings at the Wettenberg and Jena sites, interest rate hedges originally totaling EUR 11,600 thousand were concluded. The open amount of these hedges as of the reporting date on June 30, 2015 was EUR 5,373 thousand. The fair value of these instruments is EUR 840 thousand as of the reporting date.

RELATED PARTIES

PVA TePla AG's relevant transactions with related parties principally encompass acquisition of operating and office equipment from IT companies. In the first six months of 2015, the value of purchases from these companies amounted to EUR 282 thousand and the value of sales to EUR 19 thousand up to now. The net amounts of outstanding receivables and liabilities as of the reporting date on June 30, 2015 were EUR 0 thousand and EUR 42 thousand respectively. All transactions are conducted at arm's length conditions.

AUDITOR

At the Annual General Meeting on June 12, 2015, the shareholders approved the Supervisory Board's proposal and, as in the previous year, appointed Ebner Stolz GmbH & Co. KG, Wirtschaftsprüfungsgesellschaft / Steuerberatungsgesellschaft, Frankfurt am Main, Germany, as auditor of the annual and consolidated financial statements for the fiscal year 2015.

RESPONSIBILITY STATEMENT

To the best of our knowledge, we assure that in accordance with the applicable reporting principles, the interim reporting of the Consolidated Financial Statements gives a true and fair view of the net assets, financial position and profit or loss of the Group, and that the interim Group Management Report gives a true and fair view of the development and performance of the business and the position of the Group, together with a description of the principle opportunities and risks associated with the expected development of the Group for the remainder of the fiscal year.

Wettenberg, August 13, 2015

Peter Abel Chief Executive Officer

Oliver Höfer Chief Operating Officer

Henning Döring Chief Financial Officer

FINANCIAL CALENDAR IMPRINT

Date

November 6, 2015	Publication of the Q3 Report
November 23 - 25, 2015	German Equity Forum	Frankfurt

PVA TePla AG

Im Westpark 10 – 12 35435 Wettenberg Germany Phone +49 (0) 641 / 6 86 90 - 0 Fax +49 (0) 641 / 6 86 90 - 800 E-Mail info@pvatepla.com Home www.pvatepla.com

Investor Relations

Dr. Gert Fisahn Phone +49 (0) 641 / 6 86 90 - 400 E-Mail gert.fisahn@pvatepla.com

Published by

PVA TePla AG

Text PVA TePla AG Languages Deutsch/Englisch

Layout Johannes Pentz PVA TePla AG

This report is available for download in English and German on the Internet at www.pvatepla.com under Investor Relations / Reports. In case of doubt the German version shall be authoritative.