Wacker Neuson SE — Interim / Quarterly Report 2009

Aug 17, 2009

H1/09

Half-year report 2009

Figures at a Glance

April 1 through June 30 and January 1 through June 30¹

in € million	Apr. 1–Jun. 30, 2009	Apr. 1–Jun. 30, 2008	Jan. 1–Jun. 30, 2009	Jan. 1–Jun. 30, 2008
Key figures
Sales	156.5	244.2	293.8	472.4
by region
Europe	122.7	190.9	230.3	369.3
Americas	26.9	45.6	50.7	89.7
Asia	6.9	7.64	12.8	13.4
by business segment2
Light Equipment	57.9	95.0	103.2	185.9
Compact Equipment	52.8	101.84	107.0	200.2
Services	45.7	47.3	83.5	86.3
EBITDA	13.4	33.8	1.1	63.2
Depreciation and amortization	10.2	9.9	20.5	20.2
EBIT	3.2	23.9	- 19.3	43.0
EBT	2.6	23.9	- 20.4	42.4
Profit for the period	1.4	16.5	- 15.2	28.8
Number of employees	3,232	3,793	3,232	3,793
Share
Earnings per share in €	0.02	0.24	- 0.22	0.41
Dividend per share in €	0.193	0.50	0.193	0.50
Key profit figures
Gross profit in %	33.5	33.9	28.6	34.1
EBITDA margin as a %	8.6	13.8	0.4	13.4
EBIT margin as a %	2.1	9.8	- 6.6	9.1
Key figures from the balance sheet			Jun. 30, 2009	Dec. 31, 2008
Property, plant and equipment			742.9	750.0
Current assets			378.9	428.6
Equity			885.3	911.8
Net financial debt			42.4	59.0
Liabilities			236.5	266.8
Equity ratio as a %			78.9	77.4
Working capital			271.5	303.9
Cash flow	Apr. 1–Jun. 30, 2009	Apr. 1–Jun. 30, 2008	Jan. 1–Jun. 30, 2009	Jan. 1–Jun. 30, 2008
Cash flow from operating activities	45.2	12.0	48.1	- 0.7
Cash flow from investing activities	- 9.5	24.9	- 16.9	19.5
Cash flow from financing activities	- 33.8	- 59.8	- 19.8	- 34.6

Free cash flow 35.8 38.5 31.3 20.3

Figures include PPA = Purchase price allocation. Purchase price allocation describes the process where purchase costs resulting from acquisitions are allocated to individually acquired assets, liabilities and contingent liabilities, which are measured at fair value.

Consolidated sales after discounts.

Dividend payout on May 29, 2009.

4 Rounding differences.

First-half 2009 update

Q2 2009 compared to Q1 2009

Wacker Neuson SE reports second-quarter profit and consolidates healthy financial position. Revenue up 14 percent on Q1 to EUR 156.5 million, EBITDA totals EUR 13.4 million.

H1 2009 compared to H1 2008

• Cost cutting measures have desired effect.
• Investments reduced by 68 percent.
• Work capacity down 17 percent (compared with staff levels at the end of 2008).
• Reduction of working capital by EUR 32.4 million since start of year exceeds Group target.
• Rental business in Central and Eastern Europe at an all-time high.
• Equity ratio totals 78.9 percent. Company in financially healthy position with positive operating cash flow, low net financial debt and gearing* of just 4.8 percent. *Gearing = net financial debt as a percentage of equity
• As expected, gains not sufficient to prevent overall loss for first half year.
• At EUR 293.8 million, H1 revenue down 37.8 percent on previous year.
• EBITDA amounts to EUR 1.1 million, profit for the period at EUR -15.2 million.

Forecast and strategy

Despite the upturn during the second quarter, the Wacker Neuson Group remains cautious about business development in 2009. The global economic crisis and increased competitiveness are negatively impacting customer orders. The economy is not expected to recover before 2010.

• We intend to maintain our strong financial position.
• We will also continue launching compact equipment worldwide.
• From our current standpoint, we cannot rule out a loss for the entire year.
• The backlog of infrastructure projects worldwide will trigger an upswing once the crisis is over.
• We will also continue to evaluate alliances and acquisitions in the future.

Foreword by Executive Board | 02

• Interim Review | 04
• Interim Financial Statements | 14

Income Statement Total profit/loss for the quarter Balance Sheet Statement of Changes in Equity Cash Flow Statement Segment Reporting

Selected Explanatory Notes to the

• Interim Financial Statements | 20
• Additional Table | 24
• Financial Calendar/IR Contact | 25

Dear Ladies and Gentlemen,

Dr.-Ing. Georg Sick CEO and President

The rationalization measures we announced in our Q1 2009 report started to have the desired impact during the second quarter of the year. Our concerted efforts throughout the Group to cut costs and streamline our organizational structure were successful in turning around our earnings figures in the second quarter. For the first time in four quarters, revenue was up on the previous quarter. As expected, however, this positive result for the period was not sufficient to compensate for firstquarter losses.

We are happy to report that we have been able to further strengthen our healthy financial and asset position by maintaining a positive cash flow. At 78.9 percent, equity ratio remains high. We succeeded in achieving our target of reducing working capital by more than EUR 20 million. Relatively high cash flow enabled us to reduce our already low net debt by around EUR 20 million, despite the dividend payment. Gearing also fell to 4.8 percent. We therefore consider the company to have excellent liquidity levels, enabling us to navigate the difficulties of the current market situation without having to rely on banks or government aid. And so we are free to look beyond the current crisis and continue to develop strategies aimed at expanding our market share, at the same time exploring possible alliances and acquisitions.

Our objective is to win market share and prepare for the inevitable recovery through ongoing intensive product development and proactive go-to-market strategies. Maintaining regular contact with business partners and suppliers enables us to jointly develop forward-looking solutions that reflect the current market dynamics but nonetheless anticipate the prospective upturn. We have almost achieved our target of a 20-percent reduction in work capacity by mid-2009 (compared with figures at the close of 2008). In Germany, we were able to achieve this primarily through short-time work schemes. In other countries, however, we were forced to make layoffs, in particular in the US, the UK and Austria. When compared with peak staff figures at the end of Q3 2008, overall headcount worldwide was reduced by around 700, including temporary staff. Although we cannot rule out further rationalization measures at this stage, we will ensure that they do not negatively impact on the company's substance or future prospects. In countries such as Germany, and now Austria, where the legislation permits, we will continue to focus on reducing hours via flexitime and short-time work. In countries where this is not possible, I cannot currently rule out further layoffs. The cost of adapting the company to the crisis has thus far amounted to around EUR 5.7 million.

However, the measures I have mentioned here are necessary. The recession has resulted in extremely low order intake levels compared with the same period last year. This particularly applies to compact equipment and increasingly agricultural machinery. Government economic recovery packages made no discernable impact during the first six months of the year and we still do not expect these programs to have any stabilizing effects on the construction industry until the end of 2009 at the earliest.

Talks with capital market players, business partners and customers confirm our conviction that the 2007 merger was the right move. Reflecting our prudent and thus far successful acquisition strategy, it involved practically no cash payments and thus contributed to our high equity ratio level. We are currently focusing heavily on leveraging further synergies from our successful acquisitions and the merger in order to tap new market potential. As things stand today, however, we must be prepared for an annual loss, for the first time in the Group's history. Yet we are not disheartened by this development. Investment activity will inevitably rise, triggering a dynamic upswing, in particular in infrastructure projects. And when this happens, we will be ready. Which is why we continue to develop our business model and ensure it remains aligned with our customers' needs and processes. None of this would be possible without the dedication of our highly skilled workforce, which, in recent weeks has faced personal restrictions help keep the company on course. On behalf of myself and my colleagues, I would like to thank all of our people for their support here.

Sincerely yours,

Dr.-Ing. Georg Sick CEO

Half-year report for fiscal 2009

Economic and business trends

Global economy on a downswing

The first half of fiscal 2009 was marked by a global economic recession. Production levels and demand fell dramatically in industrialized countries and emerging markets alike, with companies almost entirely ceasing to make investments. This was particularly pronounced in countries where the financial or construction sectors play a strong role and the economy is heavily dependent on exports. Economic action plans initiated by national governments were only successful in generating momentum in isolated cases.

Trends in construction and agricultural markets

Global economy continues to have strong impact on construction industry

There is still a need for construction projects throughout the world, in particular infrastructure investments to improve road, rail, transport and telecommunication networks. However, due to the global recession and stringent bank lending policies restricting financing options, construction companies the world over practically halted investment activities during the first six months of 2009. Manufacturers of construction equipment subsequently experienced a significant drop in order intake, sales and revenue. Markets also experienced high inventory levels of compact equipment, including compact excavators, and increasingly wheel loaders, in Europe.

Overall, the period under review thus confirmed industry expert predictions that building work would be severely curtailed both on the residential and non-residential markets. In addition, the economic recovery packages initiated by national governments, targeted in part at promoting investments in infrastructure and public education, had no significant impact anywhere in the world during the first six months of 2009.

Agricultural sector increasingly affected by market climate

Although the agricultural sector followed a more stable path than the construction industry during the first half of 2009, it too became increasingly affected by global economic trends. In addition, falling milk prices curbed readiness to invest among agricultural landholders.

Group business development

Positive second-quarter earnings

For the Wacker Neuson Group, the first six months of fiscal 2009 were strongly influenced by the general economic recession, which had a significant negative impact on international construction and agricultural industries. This resulted in a sharp drop in customer orders, in particular from major customers in core markets in the US and Europe.

Nevertheless, in the second quarter of 2009, the Wacker Neuson Group experienced quarter-on-quarter improvement for the first time in a year. The current market climate, however, has kept revenue growth significantly below previous years' figures. Only demand for services remained at a stable level in comparison to the same period last year. The first six months of fiscal 2009 therefore saw revenue fall by 37.8 percent to EUR 293.8 million (previous year: EUR 472.4 million). At EUR 156.5 million, however, second quarter revenue for 2009 was 14.0 percent up on revenue for the first three months of the fiscal year (EUR 137.3 million).

The measures we announced in the first-quarter report aimed at cutting sales and administration costs and streamlining the organizational structure to reflect current market conditions bore fruit in the second quarter, thus enabling the Wacker Neuson Group to realize positive Q2 earnings. As expected, however, this increase was not sufficient to compensate for first-quarter losses in the period under review.

We remain pleased with the Group's healthy financial position with an equity ratio of 78.9 percent, positive operative cash flow and low net financial debt. Despite the secondquarter dividend payment, we were able to reduce net financial debt by over EUR 20 million to EUR 42.4 million. We also made solid progress in our efforts to reduce inventory levels and brought working capital down by EUR 32.4 million, overshooting our initial target of EUR 20 million. Combined with a cut-back in investments, this has enabled us to maintain our strong financial and asset position with a liquidity level of EUR 62.0 million and a gearing of 4.8 percent (net financial debt as a percentage of equity capital).

Success of crisis measures

	Impact to June 30, 2009
Cost cutting SG&A (in comp. to H1 2008)	- 11%
Reduction of working capital
(in comp. to Dec. 31, 2008)	- 11%
Reduction of net financial debt
(in comp. to Dec. 31, 2008)	- 28%
Cut in investments (in comp. to H1 2008)	- 68%
Work capacity adjustments
(in comp. to Dec. 31, 2008)	- 17%*
Short-time work since January 2009 in most	22% of employees
European production facilities	in short-time work

* Including short labour effects, temporary workers and layoffs.

We continued to extend our compact equipment line to the global market through our existing sales and service network, launching new products in line with local customer and market demands. The first structural sections of the research and development center in Munich were completed.

Pushing forward with restructuring measures

The second quarter saw us continue to implement costcutting and restructuring measures. We also stepped up measures to reduce investments, cut back on projects and work capacity, whereby in Germany, we primarily focused on expanding the flexitime framework and implementing short-time work to achieve HR targets. In addition to modifying headcount structures at individual affiliates, a new six-month short-time work scheme was implemented at the Linz production plant in Austria, starting from August 1. More far-reaching staff rationalization measures were implemented at our US plants. Compared with levels at September 30, 2008, Group headcount was reduced by about 700, including temporary staff. The majority of layoffs we have thus far unfortunately been forced to carry out were in the US, the UK and Austria.

Legal changes to the company structure

The US affiliate EQUIPRO Inc. in Germantown, USA, was liquidated in June 2009. A resolution was also passed to close or dispose of our Japanese affiliate during the course of the year and to outsource sales and distribution to a sales partner. Our Melbourne production plant, which manufactures small volumes of vibratory plates and internal vibrators for the Asia-Pacific region, is also scheduled for closure by the end of the year. Production will be moved to Manila.

AGM and dividend payment

During the AGM held in Munich on May 28, 2009, the Executive Board informed the around 230 attending Wacker Neuson SE shareholders of the developments in fiscal 2008 and provided information on the current situation. Based on a share capital of 70,140,000 eligible shares, 86.94 percent of shareholders were present. The AGM approved the proposal to pay a dividend of EUR 0.19 per eligible share (previous year: EUR 0.50). In total therefore, the company paid out EUR 13.33 million (compared with EUR 35.07 million last year). The distribution ratio panned out at approximately 32 percent based on Group profit for fiscal 2008 prior to purchase price allocation in the amount of EUR 41.9 million. Executive and Supervisory Board members' actions were officially approved for fiscal 2008.

Capital market communication and share trends

During the first six months of the year, the Executive Board also kept capital market players regularly informed on current developments within the company, for example at an analysts conference in Frankfurt and via various roadshows. The share price remained stable during the first half year. At the end of the quarter, our share was listed at EUR 6.65 (December 31, 2008: EUR 6.19).

WACKER NEUSON SDAX DAX

Share price trends

WACKER NEUSON Haulotte Manitou Deutz

Profit, finances and assets

20 40 60 80 100 120 140 160 Fiscal 2008 was the first full financial year for the Wacker Neuson Group following the merger between Wacker Construction Equipment AG and Neuson Kramer Baumaschinen AG in the fall of 2007. References to the profit, finances and assets of the company are thus based on a comparison between the data reported by the Wacker Neuson Group for the first six months of 2008 with those reported by the Wacker Neuson Group for the first six months of fiscal 2009. From fiscal 2009 onwards, reporting for the year no longer differentiates between the figures reported by the Wacker subgroup and the Neuson Kramer subgroup. Similarly, the effects of purchase price allocation are no longer itemized in the following in the notes on profit, finances and assets. The figures for the 2008 and 2009 fiscal years are thus inclusive of the effects of purchase price allocation.

Profit

Market squeezes revenue

Group revenue and earnings during the second quarter of fiscal 2009 continued to be marked by a significant reluctance on the part of customers to invest as a result of the global economic crisis. Figures here dropped by 37.8 percent in the first half year to EUR 293.8 million (previous year: EUR 472.4 million). Adjusted to discount currency fluctuations, this corresponds to a drop of 38.0 percent. Second-quarter revenue amounted to EUR 156.5 million, following EUR 137.3 million in the first three months of the year. This corresponds to an increase of 14.0 percent.

Sales Q2 /H1 2009 and 2008 in € million

Q2/2009	156.5
140 Q2/2008	244.2
120 H1/2009	293.8
H1/2008 100	472.4

40 60 Manufacturing costs fell to EUR 209.7 million (previous year: EUR 311.1 million). This was due to reduced expenditure on materials caused by a drop in production levels and a decrease in production and freight costs.

WACKER NEUSON Atlas Copco Terex Cramo Caterpillar Ramirent Gross profit reached EUR 84.1 million (previous year: EUR 161.3 million). The gross profit margin amounted to 28.6 percent, down from 34.1 percent the previous year. This is attributable to the drop in revenue, fiercer competition and the resulting increasing price erosion. Manufacturing costs also included a large block of the restructuring costs incurred in connection with the alignment of personnel capacity.

Significant cut in selling expenses plus R&D and administrative costs

120 140 160 The Group has intensified its cost-cutting and restructuring measures. This resulted in a drop in selling expenses, R&D and administration costs in the first half year. Restructuring costs resulting from rationalization measures were up on the first quarter of 2009 from around EUR 5.0 million to around EUR 5.7 million.

60 80 Expressed as a percentage of revenue, selling expenses, as well as R&D and administrative costs rose to 36.4 percent (previous year: 25.5 percent) despite our committed economy drive. This is attributable to the marked drop in revenue.

Aktienkurs_Peergroup_HB1 The Group has maintained its forward-looking sales and R&D activities although cost-cutting measures were also implemented here, especially in relation to property, plant and equipment costs. At EUR 71.3 million, selling expenses were down 7.8 percent on the previous year's level (EUR 77.3 million). Research and development costs dropped 15.4 percent to EUR 10.7 million (previous year: EUR 12.7 million). General administrative costs were down a sizeable 18.3 percent to EUR 24.8 million (previous year: EUR 30.4 million) in the first six months of the year. Expressed as a percentage of declining revenue, administrative costs amounted to 8.5 percent (previous year: 6.4 percent).

Cost-saving measures boost second-quarter profit

The cost-saving measures announced in the first-quarter report paid dividends during the second quarter. These results were also reflected in profit, with the Wacker Neuson Group reporting positive second-quarter earnings compared with the first quarter of fiscal 2009.

Profit figures

(positive Q2 figures compared with Q1 2009)

in € million	Q2/2009	Q1/2009
EBITDA	13.4	- 12.3
EBITDA margin as a %	8.6	- 9.0
EBIT	3.2	- 22.6
EBIT margin as a %	2.1	- 16.4
EBT	2.6	- 23.0
Profit for the period	1.4	- 16.6

As expected, however, this increase was not sufficient to offset the first-quarter loss. Profit before interest, tax, depreciation and amortization (EBITDA) dropped from EUR 63.2 million to EUR 1.1 million in the first six months of the year. The EBITDA margin thus amounted to 0.4 percent (previous year: 13.4 percent), whereby these figures were depressed by the restructuring expense involved in our HR alignment measures. At EUR 20.5 million, depreciation and amortization for the first half year remained more or less at the previous year's level of EUR 20.2 million.

EBITDA

Q2 /H1 2009 and 2008 in € million

Q2/2009	13.4
Q2/2008	33.8
H1/2009	1.1
H1/2009*	6.8
H1/2008	63.2

*Adjusted EBITDA before one-off expenses of EUR 5.7 million in H1 2009 from the alignment of personnel capacity.

Profit before interest and tax (EBIT) dropped to EUR -19.3 million (previous year: EUR 43.0 million). The EBIT margin amounted to -6.6 percent (previous year: 9.1 percent), taking restructuring costs into account.

EBIT

Q2 /H1 2009 and 2008 in € million

Q2/2009		3.2
Q2/2008		23.9
H1/2009		-19.3
H1/2009*		-13.6
H1/2008		43.0

*Adjusted EBIT before one-off expenses of EUR 5.7 million in H1 2009 from the alignment of personnel capacity.

Profit before tax (EBT) decreased to EUR -20.4 million (previous year: EUR 42.4 million). The tax ratio amounted to 25.8 percent (previous year: 31.1 percent).

At EUR -15.2 million, profit for the period was clearly below earnings for the same period last year (EUR 28.8 million). Based on a weighted average number of ordinary shares in circulation during the period, which totaled 70.14 million, earnings per share totaled EUR -0.22 (previous year: EUR 0.41).

During the first six months of fiscal 2009, the average euro/ dollar exchange rate was 1 euro to 1.34 dollars (previous year: EUR 1 to USD 1.55).

Finances

Company remains on stable financial footing

Our aim for 2009 is to fund day-to-day operations with operative cash flow as far as possible and secure our liquidity. To support this goal, financing of compact equipment is now handled by external partners, thus shifting the risk of default on the customer side – to an extent – to those partners. Systematically implementing cost-saving measures enabled us to achieve our targets by the close of the first half year.

Cash flow from operating activities was up on the first quarter, totaling EUR 48.1 million (previous year: EUR -0.7 million) by the end of the first half year. The primary cause for this was a reduction in inventory and accounts receivable.

Overall, cash flow was marked by significantly lower investment levels in the current fiscal year. During the first six months of the year, we invested a total of EUR 18.2 million in property, plant and equipment (previous year: EUR 57.5 million). This was channeled in part into construction of our new research and development center and company headquarters in Munich, Germany. Cash flow from investment activities came to EUR -16.9 million in the reporting period (previous year: EUR 19.5 million).

Cash flow from financing activities totaled EUR -19.8 million (previous year: EUR -34.6 million). Free cash flow amounted to EUR 31.3 million (previous year: EUR 20.3 million).

Free cash flow

in € K	H1/2009	H1/2008
Cash flow from operating activities	48,077	- 675
Cash flow from investment activities	- 16,924	19,484*
Change in consolidation structure	+ 162	+ 1,501
Costs of procuring capital	0	- 40
Issue of new shares	0	0
Free cash flow	31,315	20,270

* Incuding proceeds received on the sale of marketable securities,

In fiscal 2009, we aim to reduce working capital by cutting back on inventory. Part of this objective involved a EUR 20 million reduction during the first half year. We were able to exceed this target. During the period under review, working capital fell by EUR 32.4 million to EUR 271.5 million (at December 31, 2008: EUR 303.9 million). Inventory was down to EUR 189.2 million (at December 31, 2008: EUR 217.0 million). Trade payables dropped to EUR 24.8 million (at December 31, 2008: EUR 32.3 million). Trade receivables fell to EUR 107.0 million (at December 31, 2008: EUR 119.2 million). The shift in the working capital to revenue ratio reflects the challenging market dynamics caused by the economic and financial crisis.

Assets

Assets in strong position with continued high equity

At the close of the first half year, the balance sheet again shows Group assets to be in a strong position. The balance sheet total for the first six months of the year is EUR 1,121.8 million (at December 31, 2008: EUR 1,178.6 million). Assets

decreased to EUR 701.3 million (at December 31, 2008: EUR 703.6 million). Current assets fell to EUR 378.9 million (at December 31, 2008: EUR 428.6 million) due to the reduction in inventory and trade receivables.

The company's share capital remained unchanged at EUR 70.14 million. Equity amounted to EUR 885.3 million (at December 31, 2008: EUR 911.8 million). This lead to what we perceive to be a continued high equity ratio of 78.9 percent (at December 31, 2008: 77.4 percent). Total non-current liabilities dropped 6.2 percent to EUR 93.9 million (at December 31, 2008: EUR 100.1 million). Total current liabilities were posted at EUR 142.6 million (at December 31, 2008: EUR 166.7 million).

At the close of the first half year, the net financial debt amounted to EUR 42.4 million (at December 31, 2008: EUR 59.0 million) – a reduction, despite the dividend payment of EUR 13.33 million.

Segment reporting

With its wide range of products and services, the Wacker Neuson Group caters both directly to end customers and to dealers, rental companies and importers worldwide.

Results for Europe, the Americas and Asia

Europe hit by economic crisis

During the first six months of the year, Europe was strongly affected by market conditions. The region nonetheless continued to account for the lion's share of Group revenue at 78.4 percent (previous year: 78.2 percent). The first six months of fiscal 2009 saw this region generate revenue of EUR 230.3 million (previous year: EUR 369.3 million). Profit before interest and tax (EBIT) dropped from EUR 33.6 million to EUR -13.0 million.

Europe

H1 2009 and 2008 in € million

Sales

H1/2009		230.3
H1/2008		369.3
EBIT
H1/2009		-13.0
H1/2008		33.6

The downturn continued to be felt across the entire region. Development remained more or less stable in Germany. One reason for this was that the rental and services business was not as strongly hit here. In Switzerland revenue increased considerably.

Americas region continues downward trend

Revenue in the Americas was down 43.5 percent on the previous year, to EUR 50.7 million (previous year: EUR 89.7 million). Profit before interest and tax (EBIT) fell from EUR 13.2 million to EUR -6.6 million. This region's share of total revenue dropped from 19.0 percent to 17.3 percent. Discounting exchange rate fluctuations, revenue in the region decreased by 47.8 percent.

Americas

H1 2009 and 2008

in € million

Sales
H1/2009	50.7
H1/2008	89.7
EBIT
H1/2009	- 6.6
H1/2008	13.2

In the US, development has been dampened for a period of almost two years by pronounced reluctance to invest on the residential construction front and increasingly in the non-residential and underground construction sectors. This continued to impact new equipment sales at the US affiliate Wacker Neuson Corporation. Expressed in US dollars, its revenue was down 54.2 percent on the same period last year. The depressed market climate also impacted business in Canada, Mexico and South America.

Expansion of sales in China pays dividends

In the Asia region, revenue for the first half of 2009 was down 4.4 percent, from EUR 13.4 million the previous year to EUR 12.8 million. Profit before interest and tax (EBIT) totaled EUR 0.4 million (previous year: EUR 1.1 million). This region's share of total revenue rose from 2.8 percent to 4.3 percent.

Sales

H1/2009	12.8
H1/2008	13.4
EBIT
H1/2009	0.4
H1/2008	1.1

The construction industry in Asia fared well, particularly in China. The expansion of sales activities in recent years continues to pay dividends and has fueled a strong 46.5 percent rise in revenue in local currency relative to the same period last year. This positive development, however, was not sufficient to compensate for the downturn in business across the entire region caused by the current market climate.

Results for light equipment, compact equipment and services segments

Sales by business segment

in € K	H1/2009	H1/2008
Segment revenue from external customers
Light Equipment	104,156	186,808
Compact Equipment	107,984	201,252
Services	84,290	86,772
Less cash discounts	- 2,630	- 2,399
Total	293,800	472,433

Reduced product sales in light equipment segment

The light equipment business segment covers the Wacker Neuson Group's activities within the four strategic business fields of concrete technology, soil and asphalt compaction, demolition, and utility. In this segment, sales before discounts fell to EUR 104.2 million in the first six months of fiscal 2009 (previous year: EUR 186.8 million). The primary cause of this was a drop in new equipment sales. This segment's share in total revenue was 35.1 percent (previous year: 39.3 percent).

A rebar tier and vibratory plate with electric starter were just some of the new products launched in the light equipment segment during the first half year.

Proven at numerous customer sites: Our light and compact equipment portfolios complement each other perfectly on construction sites.

Downturn in sales in the compact equipment business segment

In the first six months of 2009, sales before discounts in the compact equipment segment (which covers the manufacture and sale of compact equipment up to a weight of around 14 tons) fell from EUR 201.3 million to EUR 108.0 million. This segment's share in total revenue was 36.4 percent (previous year: 42.4 percent). The Group currently generates around 40 percent of compact equipment revenue in the agricultural sector.

Performance in this business segment continues to be influenced by a substantial backlog of compact equipment inventory in the region Europe, in particular within the compact excavator product group. We remained committed to launching compact equipment via our global sales and service network and expanded our product portfolio in this segment to include a new track dumper and a hydraulic quick-hitch system for compact excavators.

Investment behavior in the agricultural sector has continued to drop due to overall economic conditions and falling milk prices in Europe. This in turn increasingly impacted demand for agricultural equipment during the first half year.

More powerful, cost-efficient and sustainable: The new Wacker Neuson 2404 compact excavator (right) weighs less and has a compact footprint. Which means lower fuel consumption, reduced servicing requirements and more cost-efficient transport, making this new track excavator one of the most economically viable models in its class. Wacker Neuson 2001s dumper (left).

Outstanding performance on difficult terrain: A reworked version of Wacker Neuson's smallest and most compact track dumper, TD9, is now available. Featuring a new design plus increased engine power and a host of new functions, this machine is an indispensable partner in the construction, gardening and landscaping industries.

Rental business increases revenue in services business segment

Sales before discounts in the services segment, which comprises the business fields rental (Central and Eastern Europe) and after-market (repair and maintenance), fell just slightly during the first six months. Revenue was down 2.9 percent in the period under review to EUR 84.3 million (previous year: EUR 86.8 million). This segment's share in total revenue was thus 28.5 percent (previous year: 18.3 percent).

Revenue in the after-market business field (which covers the traditional repair and spare parts business) was down 10.3 percent to EUR 58.6 million (previous year: EUR 65.3 million). Prices for spare parts for light and compact equipment were increased by an average of three percent during the second quarter. Revenue from the rental business in Central and Eastern Europe was up from EUR 21.4 million to EUR 25.7 million.

Other factors that impacted on results

Decreased factory output

The drop in demand for our products has resulted in significantly lower output at our manufacturing facilities. We have maintained our 24- to 48-hour delivery timeframe for products in the light equipment business segment. Delivery times for compact equipment range between one to two months (previous year: 4 - 5 months), reflecting measures to reduce inventory here.

Revenue-driven increase in R&D ratio

Despite full-scale preparations to launch new products throughout the course of the current fiscal year, research and development costs in the period under review dropped to EUR 10.7 million (previous year: EUR 12.7 million). The primary cause for this was the reduction of property, plant and equipment costs. Against the backdrop of a fall in revenue, the research and development ratio rose to 3.7 percent (previous year: 2.7 percent).

Further HR rationalization

At June 30, 2009, Group headcount totaled 3,232 (previous year: 3,793). This figure does not reflect the actual number of employees, but the number of positions as calculated on a full-time basis. This drop during the first six months of the year (at December 31, 2008: 3,665) reflects the measures taken as part of our HR rationalization policy. Based on the number of positions at June 30, 2009, around 22 percent of employees were working reduced hours, although shorttime work schemes were only introduced at production sites.

Changes to the opportunity and risk situation

In the first six months of 2009, the Wacker Neuson Group continued to implement its risk management system as a key steering tool for business decisions and processes. This system covers planning for each of the core business segments and comprehensive Group reporting covering all business processes and affiliates. These reports are regularly analyzed, discussed and evaluated and made available to all decision-makers. The system also includes process definitions for all business segments and Group auditing.

The company has identified the following risks to the Wacker Neuson Group as of June 30, 2009, that deviate from the 2008 consolidated financial statements and the first-quarter report 2009.

Despite a slight increase in revenue compared to the first quarter of the fiscal year, the construction market continues to be negatively impacted by the general economic recession, the effects of which are increasingly being felt in the Asia-Pacific region. This has resulted in a massive drop in light and compact equipment sales as well as excess compact equipment inventory in individual markets. At June 30, 2009, accumulated orders for compact equipment for the construction and agricultural industries were around 60 percent below the equivalent figure for the previous year.

The company anticipates that these market conditions will continue until the end of the year due to a number of reasons, including the minimal impact government investment programs have thus far had on alleviating the international economic situation. This will continue to negatively impact customer order patterns, as will stringent bank lending policies. Sales of agricultural machinery will also be increasingly affected by this development. As such, we cannot rule out implementing a short-time work scheme at Weidemann GmbH. We are countering this risk by adopting proactive go-to-market strategies as well as focusing our efforts on reducing stock and further adapting our cost and organizational structures.

Furthermore, the company has identified an increased risk of losing customers and suppliers due to insolvency or market concentration – a development that particularly increases the risk of default. We are mitigating this risk with supplier "health-checks", ongoing receivables monitoring and tools such as credit hedging.

We are not currently aware of any other significant risks to the Wacker Neuson Group. We have not identified any individual or collective risks to our continued existence as a going concern that might negatively affect individual companies within the Group or the Group as whole in the foreseeable future.

Supplementary report

Following the election of representatives from all European affiliates and/or regions, the Wacker Neuson SE works

council was formed at the company on July 23, 2009. The council comprises 14 members. Mr. Elvis Schwarzmair (Reichertshofen, Germany) was appointed chairperson and Mr. Hans Hasslach (Pfullendorf, Germany) vice chairperson.

There have been no significant events since the interim statements reporting date that could have an impact on future Group business development.

Outlook

Further downturn in global economy

Industry experts do not expect the global economy to recover quickly. An upturn is only expected if the banking sector can be stabilized worldwide. It is currently not possible to assess to what extent action plans implemented by national governments will lead to market recovery or when these effects will be felt.

Continued negative impact on construction and agricultural industries

Although there is still a need for residential and non-residential construction measures (infrastructure projects, for example) worldwide and, in some cases, this requirement is on the rise, the international construction industry continues to face dampened prospects for the second half of 2009 due to the global recession. Industry experts predict significant drops in revenue for national construction industries in Europe and the US for 2009. Although markets are expected to stabilize in 2010 due to a number of measures including the calming effects of national economic recovery packages, experts do not reckon with a recovery until 2011. In the long term, however, prospects for non-residential construction in particular are good. The Organization for Economic Co-operation and Development (OECD) estimates that USD 70,000 billion is required for global infrastructure investments between now and 2030. Recovery of residential construction markets in the UK, Germany and the US would also be a key driver in stabilizing the construction industry.

Industry experts predict that the economic downturn in the agricultural sector will gain momentum during the second half of 2009, resulting in a drop in revenue here for 2009 and 2010. Nevertheless, overall trends in the agricultural industry remain unchanged, in particular the structural shift toward increased industrialization of agricultural holdings. The need to increase global production of foodstuffs and animal feed, coupled with rising demand for renewable resources, are strengthening agriculture's importance as an economic driver. Experts therefore anticipate rising demand for state-of-the-art machinery for agricultural production, land cultivation and work in agricultural buildings such as barns.

Wacker Neuson Group adheres to long-term strategy

In our opinion, the long-term prospects for the Wacker Neuson Group are good. However, short- and mid-term prospects will be dominated by unfavorable general economic developments and negative impact on construction and agricultural industries. We remain committed to our long-term growth strategy, and are in a strong position thanks to our business model. We also intend to invest wisely to ensure that the Group grows in line with market and customer requirements. In order to win market share, we intend to keep our focus firmly on meeting evolving customer needs, continuing to deliver best-in-class product and service quality, launching compact equipment via our global sales and service network and providing proactive customer support. Our strategy involves expanding the reach of our international portfolio of Weidemann-branded agricultural machinery, depending on overall economic trends. We will be concentrating in particular on Poland, the Czech Republic and parts of the Netherlands and Australia.

Despite a positive second-quarter trend, we remain extremely cautious about the current fiscal year as we do not expect economic recovery plans to have any positive effect on the construction industry until the end of 2009 at the earliest. The company remains prepared for the fact that the worldwide downturn in the construction industry may well last into 2010 and, against the backdrop of intensified competition, continue to impact on customer order patterns beyond 2009. Due to market dynamics, it remains difficult to precisely predict revenue or profit before interest, tax, depreciation and amortization (EBITDA) for fiscal 2009. Nonetheless, we continue to expect a drop in revenue and earnings for the current fiscal year and, based on our current position, cannot rule out a loss for the entire year.

We therefore remain committed to reducing costs and streamlining our organizational structure in order to improve profit levels. Throughout the remainder of year, we aim to reduce work capacity by around 20 percent compared with figures at December 31, 2008, by extending flexitime options and short-time work schemes and implementing selective layoffs.

We also intend to maintain our strong financial and asset position, as well as further lower our working capital by reducing inventory. In addition, the company is continually evaluating possible acquisitions and moving forward with its plans to expand manufacturing capacity for compact excavators at Hörsching (Linz, Austria). However, construction is not set to start before 2010.

Income Statement

April 1 through June 30 and January 1 through June 30

in € K	Apr. 1–Jun. 30, 2009	Apr. 1–Jun. 30, 2008	Jan. 1–Jun. 30, 2009	Jan. 1–Jun. 30, 2008
Revenue	156,522	244,188	293,800	472,433
Cost of sales	- 104,149	- 161,306	- 209,662	- 311,121
Gross profit	52,373	82,882	84,138	161,312
Sales and service expenses	- 33,871	- 39,907	- 71,335	- 77,329
Research and development expenses	- 4,762	- 6,071	- 10,727	- 12,681
General administrative expenses	- 11,496	- 14,229	- 24,833	- 30,395
Other income	2,296	1,267	6,848	4,301
Other expenses	- 1,306	- 27	- 3,408	- 2,186
Profit before interest and tax (EBIT)	3,234	23,915	-19,317	43,022
Financial result	- 642	- 24	- 1,064	- 589
Profit before tax (EBT)	2,592	23,891	-20,381	42,433
Taxes on income	- 1,156	- 7,226	5,252	- 13,189
Profit before minority interests	1,436	16,665	-15,129	29,244
Minority interests	-18	-208	-64	-459
Profit for the period	1,418	16,457	-15,193	28,785
Earnings per share in EUR	0.02	0.24	-0.22	0.41

Total profit/loss for the period

April 1 through June 30 and January 1 through June 30

in € K	Apr. 1–Jun. 30, 2009	Apr. 1–Jun. 30, 2008	Jan. 1–Jun. 30, 2009	Jan. 1–Jun. 30, 2008
Profit/loss for the period	1,418	16,457	-15,193	28,785
Items not recognized in profit/loss for the period:
Exchange differences	- 2,263	1,274	3,214	- 8,332
Securing cash flows:
Losses incurred in the current period	- 899	278	- 1,901	129
Tax effects from items in total profit/loss for the period	274	- 83	594	- 40
Items not recognized in profit/loss after tax for the period	-2,888	1,469	1,907	-8,243
Total profit/loss after tax for the period	-1,470	17,926	-13,286	20,542
Of which are attributable to:
- Shareholders in the parent company	- 1,452	18,134	- 13,222	21,001
- Minority interests	- 18	- 208	- 64	- 459
Total profit/loss after tax for the period	-1,470	17,926	-13,286	20,542

Balance Sheet

As at June 30

in € K	Jun. 30, 2009	Dec. 31, 2008
Assets
Property, plant and equipment	271,055	272,934
Investment property	2,588	2,708
Goodwill	325,981	326,059
Intangible assets	98,095	98,438
Other investments	3,582	3,420
Deferred taxes	15,669	13,450
Other non-current assets	25,889	32,999
Total non-current assets	742,859	750,008
Inventories	189,238	217,030
Trade receivables	107,002	119,188
Marketable securities	0	1,894
Current tax receivables	6,905	10,402
Other current assets	13,719	14,489
Cash and cash equivalents	62,035	65,600
Total current assets	378,899	428,603
Total assets	1,121,758	1,178,611
Equity and liabilities
Subscribed capital	70,140	70,140
Other reserves	584,423	582,516
Retained earnings	227,912	256,432
Equity before minority interests	882,475	909,088
Minority interests	2,795	2,731
Total equity	885,270	911,819
Long-term borrowings	35,593	38,845
Deferred taxes	29,105	31,989
Long-term provisions	29,234	29,288
Total non-current liabilities	93,932	100,122
Trade payables	24,790	32,290
Short-term borrowings from banks	63,004	81,742
Current portion of long-term borrowings	5,835	5,876
Short-term provisions	12,531	11,112
Current tax payable	186	466
Other current liabilities	36,210	35,184
Total current liabilities	142,556	166,670
Total liabilities	1,121,758	1,178,611

Statement of Changes in Equity

As at June 30

in € K	Subscri bed capital	Capital reserves	Exchange diffe rences	Other neutral changes	Retained earnings	Equity before minority interests	Minority interests	Total equity
Balance at December 31, 2007	70,140	618,450	-32,845	581	254,113	910,439	2,280	912,719
Total profit for the period	0	0	- 8,332	89	28,785	20,542	459	21,001
Dividends	0	0	0	0	- 35,070	- 35,070	0	- 35,070
Costs of procuring capital	0	- 40	0	0	0	- 40	0	- 40
Balance at June 30, 2008	70,140	618,410	-41,177	670	247,828	895,871	2,739	898,610
Balance at Dezember 31, 2008	70,140	618,397	-36,914	1,033	256,432	909,088	2,731	911,819
Total profit for the period	0	0	3,214	- 1,307	- 15,193	- 13,286	64	- 13,222
Dividends	0	0	0	0	- 13,327	- 13,327	0	- 13,327
Balance at June 30, 2009	70,140	618,397	-33,700	-274	227,912	882,475	2,795	885,270

Cash Flow Statement

For the period from January 1 through June 30

EBT - 20,381 42,433 Depreciation and amortization 20,451 20,178 Foreign exchange result 1,967 - 5,032 Gains/losses from sale of intangible assets and property, plant and equipment - 58 - 25 Book value from the disposal of rental equipment 2,897 953 Gains/losses from derivates (cash flow hedging) - 1,307 134 Financial result 1,064 589 Changes in inventories 27,792 - 17,376 Changes in trade receivables and other assets 19,957 - 22,461 Changes in provisions 1,365 548 Changes in trade payables and other liabilities - 6,181 4,297 Interest paid - 2,599 - 3,442 Income tax paid 3,110 - 21,471 Cash flow from operating activities 48,077 -675 Purchase of property, plant and equipment - 18,184 - 57,539 Purchase of intangible assets - 3,198 - 3,624 Proceeds from the sale of property, plant and equipment and intangible assets 1,171 670 Proceeds received on the sales of marketable securities 1,894 77,273 Change in consolidation structure - 162 - 1,501 Interest received 1,555 4,205 Cash flow from investing activities -16,924 19,484 Costs of procuring capital 0 - 40 Dividends - 13,327 - 35,070 Proceeds/income from short-term borrowings - 3,724 3,242 Repayment of long-term borrowings - 2,700 - 2,700 Cash flow from financing activities -19,751 -34,568 Increase/decrease in cash and cash equivalents 11,402 -15,759	in € K	Jan. 1– Jun. 30, 2009	Jan. 1– Jun. 30, 2008
Effect of exchange rates on cash and cash equivalents 896 - 438
Change in cash and cash equivalents 12,298 -16,197
Cash and cash equivalents at beginning of period1 37,339 38,792
Cash and cash equivalents at end of period1 49,637 22,595

¹ Borrowings from banks from the Group's cash pool accounts are netted.

Segmentation

January 1 through June 30

Primary segmentation (geographical segments)

in € K	Europe	Americas	Asia	Consolidation	Group
H1 2009
Segment revenue
Total external sales	319,270	75,485	15,684
Less intrasegment sales	- 76,408	- 10,835	- 554
Intersegment sales	- 12,607	- 13,907	- 2,328
Total	230,255	50,743	12,802	0	293,800
EBIT	-12,995	-6,596	437	-163	-19,317
EBITDA	4,730	-4,186	769	-179	1,134
Net financial debt	26,890	19,810	3,117	-7,420	42,397
Working capital	195,205	62,805	13,440	0	271,450
H1 2008
Segment revenue
Total external sales	530,205	142,169	19,828
Less intrasegment sales	- 133,692	- 20,213	- 869
Intersegment sales	- 27,219	- 32,210	- 5,566
Total	369,294	89,746	13,393	0	472,433
EBIT	33,599	13,210	1,088	-4,875	43,022
EBITDA	51,439	15,281	1,372	-4,892	63,200
Net financial debt	30,116	17,816	4,483	0	52,415
Working capital	233,725	65,288	13,302	0	312,315

Sales by business segment

in € K	Jan. 1– Jun. 30, 2009	Jan. 1– Jun. 30, 2008
Segment revenue from external customers
Light Equipment	104,156	186,808
Compact Equipment	107,984	201,252
Services	84,290	86,772
Less cash discounts	- 2,630	- 2,399
Total	293,800	472,433

Selected explanatory notes to the interim financial statements for the first half year 2009

Accounting rules

The Wacker Neuson SE consolidated interim financial statements to June 30, 2009 have been prepared in accordance with International Financial Reporting Standards (IFRS) and their interpretation as valid on the reporting date. The statements adhere to International Accounting Standard (IAS) 34 for condensed statements.

All interim financial statements of the domestic and foreign companies included in the consolidated statements were prepared according to the standardized Wacker Neuson SE accounting principles and valuation methods.

As an information instrument, this interim report builds on the consolidated financial statements. We therefore refer to the notes to the consolidated statements of December 31, 2008. The comments there also apply to the quarter and half-year statements for fiscal 2009, unless explicitly stated otherwise.

In line with mandatory guidelines that apply to reporting periods starting on or after January 1, 2009, the Group has applied IFRS 8 (Operating Segments) to its interim financial statements for the first six months of 2009. IFRS 8 requires an entity to base external segment reporting on the information used internally by management to evaluate segment performance (the management approach). The company has thus far reported its segments geographically in accordance with IAS 14. Since this approach reflects the Group's internal reporting structure, the application of IFRS 8 has not resulted in any changes in the structure of segments required to disclose information on their operations. Working capital, net financial debt and EBITDA have been adopted from internal reporting and included in external segment reporting for the first time at the end of the quarter at March 31, 2009. Figures from the previous year have been adjusted correspondingly for the period under review to ensure meaningful comparison.

IAS 1 (Presentation of Financial Statements), as revised in 2007, is also applied and reflected in the presentation of other comprehensive income for the period. The Group has chosen the two statement approach here. In other words, all items of income disclosed directly in equity are presented in a separate statement and compared with the previous year's figures. As a result, the statement of changes in equity only reflects other comprehensive income for the period and transactions with shareholders.

Changes to IAS 23 (Borrowing Costs) stipulate for the first time that borrowing costs directly related to the procurement or manufacture of an asset which requires a substantial period of time until it is ready for its intended use or for sale must now be capitalized as part of the acquisition or manufacturing cost of the qualifying asset. All other borrowing costs are recognized in the period in which they are incurred. Borrowing costs are interest expense and other costs incurred by a company in connection with borrowings. Application of the revised version of IAS 23 has thus far not had any significant impact on assets, liabilities, financial position and profit/loss during the current reporting period.

Aside from the exceptions listed above, the general accounting principles and valuation methods used for the fiscal 2008 consolidated statements have also been applied to these interim financial statements.

Legal changes to company structure

Wacker Construction Equipment AG has been trading under the name Wacker Neuson SE since the new name was entered in the German Register of Companies at the Munich Magistrate's Court on February 18, 2009. This marked execution of the proposals approved during the AGM on June 3, 2008.

The existing registered company shares listed on the regulated Prime Standard segment of the German stock exchange were renamed to Wacker Neuson SE on March 4, 2009. This did not result in any changes for shareholders.

The US affiliate EQUIPRO Inc. in Germantown, USA, was liquidated in June 2009.

The affiliate Wacker Neuson Rhymney Ltd. in Tredegar, UK, ceased operations in spring 2009. Four-wheel dumper production was relocated from Tredegar to Leonding in Austria (Wacker Neuson Linz GmbH) during the first quarter of the year.

The Japanese affiliate Nippon Wacker Co. Ltd. in Tokyo is set to be closed during the course of fiscal 2009.

The Melbourne production plant in Australia is also scheduled to be dissolved by the end of the year and production moved to our plant in Manila (Philippines).

We expect the dormant affiliate Wacker Machinery Limited, based in Dublin, Ireland, to be removed from the register by the end of the year.

Seasonal fluctuations

Due to the geographical distribution of its business, Wacker Neuson Group revenue is subject to seasonal fluctuations, which are attributable to climate conditions and construction industry trends at local level. The quarterly distribution of consolidated sales from fiscal 2006 through 2008 was as follows:

as in %	2008	2007	2006
Q 1	26	24	24
Q 2	28	28	27
Q 3	24	25	25
Q 4	22	23	24

Here it must be noted that revenue from the Neuson Kramer subgroup, which merged with Wacker on October 1, 2007, is not included in the 2007 and 2006 figures. However, it is included in the figures for 2008. The annual analysis of the distribution of consolidated revenue reinforces the assumption that seasonal fluctuations in the Group only have a minor impact.

Earnings per share

In accordance with International Accounting Standard (IAS) 33, earnings per share are calculated by dividing the consolidated earnings by the average number of shares. There was no share dilution effect in the reporting periods shown.

	2009	2008
Q2
Quarterly earnings attributable to shareholders in € K	1,418	16,457
Weighted average number of ordinary shares in circulation during the period in thousands	70,140	70,140
Earnings per share in EUR	0.02	0.24
H1
Quarterly earnings attributable to shareholders in € K	- 15,193	28,785
Weighted average number of ordinary shares in circulation during the period in thousands	70,140	70,140
Earnings per share in EUR	-0.22	0.41

Important events

On May 28, 2009, at the Annual General Meeting of Wacker Neuson SE in Munich, shareholders approved a dividend payment of EUR 0.19 per share. The total dividend payment of EUR K 13,327 was made on May 29, 2009. Executive and Supervisory Board members' actions were approved for fiscal 2008.

Provisions in the amount of EUR 5.7 million were created for redundancy packages and payments for employees who no longer work for the company but remain on the payroll pending expiry of their notice period.

Furthermore, Wacker Neuson Linz GmbH, based in Linz-Leonding (Austria), has purchased an approximately 160,000 m2 tract of land in the district of Hörsching, in close proximity to Linz airport. The company has thus exercised its option agreement to purchase the site, which was due to expire at the end of March 2009. A decision regarding the construction of a new production plant will not be made until 2010.

Agreements concerning the acquisition of 70% of shares in matrics Beratungsgesellschaft mbH, a company based in Leonding through the affiliate Wacker Neuson Beteiligungs GmbH, based in Linz, were concluded in June 2009. This move will see Wacker Neuson Beteiligungs GmbH's share in the company increase from 30% to 100%. The acquired company previously rendered IT services for individual Group companies and therefore only has a minor impact on the affiliate's assets, liabilities, financial position and profit/loss.

Events since the interim statements reporting date

Following the election of representatives from all European affiliates and/or regions, the Wacker Neuson SE works council was formed at the company on July 23, 2009. The council comprises 14 members. Mr. Elvis Schwarzmair (Reichertshofen, Germany) was appointed chairperson and Mr. Hans Hasslach (Pfullendorf, Germany) vice chairperson.

Responsibility statement by the management (statement in accordance with section 37y of the German Securities Trading Act (WpHG) in conjunction with section 37w, paragraph 2, number 3 of the WpHG; section 289, paragraph 1, clause 5 of the German Commercial Code (HGB))

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management review 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.

Munich, August 6, 2009

The Executive Board

Dr.-Ing. Georg Sick (CEO)

Martin Lehner Richard Mayer (Deputy CEO)

Günther Binder Werner Schwind

Review Report by the Auditors

To Wacker Neuson SE, Munich, Germany

We have reviewed the condensed consolidated interim financial statements of the Wacker Neuson SE, comprising the condensed income statement, the condensed statement of comprehensive income, the condensed balance sheet, the condensed cash flow statement, the condensed statement of changes in equity as well as selected explanatory notes, together with the interim group management report of the Wacker Neuson SE for the period from January 1 to June 30, 2009 that are components of the half year financial report pursuant to § 37w WpHG (German Securities Trading Act). The preparation of the condensed consolidated interim financial statements in accordance with those IFRS applicable to interim financial reporting as adopted by the EU, and of the interim group management report in accordance with the requirements of the WpHG applicable to interim group management report, is the responsibility of the Company´s management. Our responsibility is to issue a report on the condensed consolidated interim financial statements and on the interim group management report based on our review. We performed our review of the condensed consolidated interim financial statements and the interim group management report in accordance with German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with a certain level of assurance, that the condensed consolidated interim financial statements have not been prepared, in material aspects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, and that the interim group management report has not been prepared, in material aspects, in accordance with the requirements of the WpHG applicable to interim group management reports. A review is limited primarily to inquiries of company employees and analytical assessments and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit , we cannot issue an auditor´s report.

Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, or that the interim group management report has not been prepared, in all material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.

Munich, August 6, 2009

Rölfs WP Partner AG Wirtschaftsprüfungsgesellschaft

Reinke Jagosch Wirtschaftsprüfer (Public Auditor)

Wirtschaftsprüfer (Public Auditor)

Income Statement

Effects from Purchase Price Allocation (PPA)¹

in € K	Jan.1– Jun. 30, 2009	PPA	Jan.1– Jun. 30, 2009
Wacker Neuson	without PPA1		with PPA1
Revenue	293,800		293,800
Cost of sales	- 208,746	- 916	- 209,662
Gross profit	85,054	-916	84,138
Sales and service expenses	- 71,335		- 71,335
Research and development expenses	- 9,147	- 1,580	- 10,727
General administrative expenses	- 24,665	- 168	- 24,833
Other income	6,848		6,848
Other expenses	- 3,408		- 3,408
Profit before interest and tax (EBIT)	-16,653	-2,664	-19,317
Financial result	- 908	- 156	- 1,064
Profit before tax (EBT)	-17,561	-2,820	-20,381
Taxes on income	4,500	752	5,252
Profit before discontinued operations, minority interests	- 13,061	-2,068	-15,129
Result from discontinued operations	0		0
Minority interests	-102	38	-64
Profit for the period	-13,163	-2,030	-15,193
Profit before interest and tax (EBIT)	-16,653	-2,664	-19,317
Depreciation and amortization	18,696	1,755	20,451
EBITDA	2,043	-909	1,134

¹ Incl. PPA = Purchase price allocation. Purchase price allocation describes the process where purchase costs resulting from acquisitions are allocated to individually acquired assets, liabilities and contingent liabilities, which are measured at fair value.

Financial Calendar/IR Contact

Contact

Wacker Neuson SE Investor Relations Preussenstrasse 41 80809 Munich Germany

Phone +49 - (0)89 - 354 02 - 173 Fax +49 - (0)89 - 354 02 - 203

ir@wackerneuson.com www.wackerneuson.com

Publishing Details

Issued by: Wacker Neuson SE, Corporate Communication

Design: Kirchhoff Consult AG, Munich, Germany

Content: Wacker Neuson SE

Financial Calendar 2009

August 27	Roadshow Stockholm, Sweden
August 31	Roadshow Frankfurt, Germany
September 1	Roadshow London, UK
September 15	Roadshow Paris, France
September 16-17	UBS Conference New York, USA
September 22	German Investment Conference Unicredit, Munich, Germany
September 25	Capital Market Day, Reichertshofen, Germany
November 11	Publication of nine-month report 2009

Disclaimer

This half-year report contains forward-looking statements which are based on the current estimates and assumptions by the corporate management of Wacker Neuson SE. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate and similar formulations. Such statements are not to be understood as in anyway guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by Wacker Neuson SE and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside the Company's control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. The Company neither plans nor undertakes to update any forward-looking statements.

All rights reserved. Valid August 2009. Wacker Neuson SE accepts no liability for the accuracy and completeness of information provided in this brochure. Reprint only with the written approval of Wacker Neuson SE in Munich, Germany. The German versionshall govern in all instances. In the event of discrepancies between the German and the English version, the German version shall prevail.

Wacker Neuson SE Preussenstrasse 41 80809 Munich Germany Tel. +49 - (0)89 - 354 02 - 0 Fax +49 - (0)89 - 354 02 - 390 www.wackerneuson.com