Wacker Neuson SE — Interim / Quarterly Report 2010

Nov 17, 2010

9M/10

Nine-month report 2010

Figures at a Glance

July 1 through September 30 and January 1 through September 30 ¹

in € million	Jul. 1 – Sep. 30, 2010		Jul. 1 – Sep. 30, 2009 Jan. 1 – Sep. 30, 2010 Jan. 1 – Sep. 30, 2009
Key figures
Revenue	196.0	149.0	551.7	442.8
by region
Europe	144.0	114.1	401.6	344.3
Americas	44.6	26.8	127.5	77.6
Asia	7.4	8.1	22.6	21.0
by business segment2
Light equipment	77.3	56.2	222.0	159.5
Compact equipment	65.5	42.9	189.9	149.9
Services	53.2	49.9	139.8	133.5
EBITDA	25.0	15.6	55.7	16.8
Depreciation and amortization	10.9	9.7	30.3	30.2
EBIT	14.1	5.9	25.3	- 13.4
EBT	13.8	5.2	22.9	- 15.2
Profit for the period	10.1	4.8	15.4	- 10.4
Capital expenditure (property, plant and equipment)	18.0	7.8	53.7	26.0
Number of employees	3.086	3.090	3.086	3.090
Share
Earnings per share in €	0.14	0.07	0.22	- 0.15
Dividend per share in €	–	–	03	0.19
Key profit figures
Gross profit in %	35.7	35.3	33.7	30.9
EBITDA margin as a %	12.7	10.5	10.1	3.8
EBIT margin as a %	7.2	4.0	4.6	- 3.0
Key figures from the balance sheet	Sep. 30, 2010	Dec. 31, 2009	Sep. 30, 2009
Non-current assets	660.0	632.7	734.0
Current assets	370.9	339.0	376.8
Equity	818.3	791.5	886.9
Net financial debt	1.8	- 24.9	5.4
Liabilities	212.6	180.2	223.9
Equity ratio as a %	79.4	81.5	79.8
Working capital	258.9	217.9	246.1
Cash flow	Jul. 1– Sep. 30, 2010	Jul. 1– Sep. 30, 2009	Jan. 1– Sep. 30, 2010	Jan. 1– Sep. 30, 2009
Cash flow from operating activities	35.9	45.6	33.5	95.2
Cash flow from investing activities	- 20.3	- 7.7	- 60.4	- 26.2

Free cash flow 16.3 37.9 - 26.2 69.2 ¹ Figures include PPA = Purchase price allocation. Purchase price allocation describes the process where purchase costs resulting from acquisitions are allocated to

Cash flow from financing activities - 13.3 - 13.8 - 6.5 - 33.6

individually acquired assets, liabilities and contingent liabilities, which are measured at fair value. Further information as on page 26.

2 Consolidated sales after discounts.

3 Dividend payment approved by AGM on May 28, 2010.

9-months 2010 update

Overview

Despite a downshift in the pace of global economic recovery from mid-2010 on, the Wacker Neuson Group benefited from robust demand for light and compact equipment worldwide. The upswing was reflected in a clear rise in revenue across all regions and business segments. The order situation in the compact equipment segment also remains strong.

9M 2010 compared with 9M 2009

• Revenue totaled EUR 551.7 million, 24.6 percent up on the previous year.
• Revenue growth in the light equipment (+39.0 percent) and compact equipment (+26.5 percent) segments as well as gains in the Americas region (+64.4 percent) were key drivers behind the Group's positive performance.
• Revenue for the third quarter was up 31.5 percent on the previous year, at EUR 196.0 million.
• The Group strengthened its healthy financial position and is virtually debt-free.
• At the end of September 2010, the order backlog for compact equipment (for the construction and agricultural sectors) was 380 percent up on last year's figure.

Forecast and strategy

On the back of the company's positive performance thus far, management now expects revenue for 2010 to be over 20 percent higher than the previous year (2009: EUR 597.0 million) and profit before interest, tax, depreciation and amortization (EBITDA) to correspond to at least 10 percent of revenue (2009: 4.6 percent). By sticking to its strategic path, the Group intends to outpace market growth and return to pre-crisis levels.

• Foreword by Executive Board | 02
• Interim Review | 04
• Interim Financial Statements Income Statement Total profit/loss for the period Balance Sheet Statement of Changes in Equity Cash Flow Statement Segmentation | 17
• Selected Explanatory Notes to the
• Interim Financial Statements | 23
  • Additional Table | 26
• Financial Calendar/IR Contact | 27

Dear Ladies and Gentlemen,

The Wacker Neuson SE Executive Board

(from left) Werner Schwind, Günther C. Binder, Martin Lehner, Richard Mayer. We are satisfied with progress thus far in the current fiscal year. The upswing in construction activity that emerged during the second quarter has continued into Q3. Demand for our products remained high, particularly in our core markets of Europe and the Americas. At EUR 196.0 million, revenue in the third quarter was up 31.5 percent on the same quarter last year – although this figure is lower than revenue for the previous quarter due to seasonal fluctuations. Group revenue for the first nine months of the year totaled EUR 551.7 million, which represents a 24.6 percent increase on the same period last year.

The Group was also able to further strengthen profit, finances and assets. The EBITDA margin for the entire nine-month period was at 10.1 percent – the first time in two years that we have been able to report a positive double-digit figure here for the entire reporting period. Group EBITDA totaled EUR 25.0 million in the third quarter alone, which corresponds to an EBITDA margin of 12.7 percent. Net financial debt fell during the third quarter to just EUR 1.8 million. Cash flow from operating activities was again firmly in the plus in the third quarter and our equity ratio remained solid at 79.4 percent.

Overall, our prediction that our customers would increase investment in light and compact equipment in synch with the economic upswing has been well justified. In September, the order backlog for compact equipment was 380 percent up on the previous year. The supplier bottlenecks that resulted in delayed deliveries of compact equipment during the first six months of the year eased in the third quarter. At the same time, changing order patterns were evident across the entire industry. Customers have been ordering equipment earlier in anticipation of longer delivery times. Accumulated order intake remained high.

We again received extremely upbeat customer feedback at September's GaLaBau trade fair in Nuremberg, the largest gardening and landscaping exhibition in the German-speaking region. Our 2007 merger – which took place three years ago this October – played a key role in our success here. Looking back, the past three years have seen us reach several key milestones – we have established ourselves as a successful one-stop provider of light and compact equipment flanked by a broad service offering and positioned ourselves globally. In addition to creating a new corporate design, we have used our existing sales and distribution network for light equipment to successfully launch compact equipment in markets in North and South America, South Africa, the Middle East and several countries in the EU. We will continue to strengthen our market position in these countries over the coming years and expand to new regions once the economy picks up further. To maximize growth opportunities in the agricultural industry, we have gradually expanded the Weidemann range.

The Wacker Neuson share also developed positively in the third quarter, and is currently listed at around EUR 13, which represents an increase of over 50 percent since the start of the year.

The ongoing upswing in the construction and agricultural industries coupled with our continued healthy order situation have prompted us to adjust our forecast for 2010 upward once more. We expect revenue for the entire year to be at least 20 percent up on the previous year and our EBITDA margin to exceed 10 percent.

Our confidence also extends to the coming year. During 2011, we expect our customers in the professional rental segment to increase investment in rental fleets. We are also focusing on medium- and long-term opportunities, such as additional merger-enabled sales synergies and our alliance with Caterpillar for the development and manufacture of mini excavators. By sticking to our current strategic path, we aim to return to pre-crises levels as soon as possible. However, we also intend to keep a close eye on costs, setting ourselves mid-term targets of 15 percent for our EBITDA margin and 10 percent for our EBIT margin.

We would not be in the strong position we are in today without the hard work of our employees, whose creativity and dynamism have helped us realign many of our processes. It has now been three years since we closed the merger and we would like to take this opportunity to thank everyone for their efforts. If we stay on this path, we are sure to meet any challenges the future may hold.

Yours sincerely,

The Wacker Neuson SE Executive Board

Richard Mayer Martin Lehner Günther C. Binder Werner Schwind

Interim review

Economic and business trends

Global economic recovery slows

Following on from a euphoric first half-year, where growth rates exceeded expectations, the world economy dropped pace somewhat through the fall. The leading German economic institutes estimate that production will be up 3.7 percent over the course of this year, and that trade will be up 12 percent on the previous year, in spite of the slowdown.

In the euro zone, they expect production to decrease over the second half of the year. This decline has been evident since the spring in the US and Japan. Although production growth has also been slowing down in emerging markets since the spring, these economies – unlike developed countries – have already reached their pre-crisis level.

Development in the US is marked by structural problems, including high debt exposure in private households, high unemployment figures, a heavily deflated real estate market and ongoing weakness in the financial sector. This also applies to countries in Western Europe such as Spain, Great Britain and Ireland. The EU's restrictive financial policy and focus on budget consolidation ensure that growth in this region remains moderate.

The German economy is experiencing an upswing, no longer driven solely by rising exports, but also by the upturn in consumer spending and corporate investments. The German government recently upgraded its GDP growth projection to plus 3.4 percent.

Trends in construction and agricultural markets

Slight slowdown in construction industry growth

According to the US Association of Equipment Manufacturers (AEM), recovery of the global construction industry will remain on track, although it has adjusted its overall annual forecast downward. The pace of recovery will vary significantly from one region to another. After a global reduction

in construction investment of 6.7 percent in 2009, the AEM now predicts a 2-percent reduction for 2010. The exceptions to this forecast are Asia and South America, where the construction industries are due to grow around 5 percent in 2010. North America and Europe are expected to experience another slowdown in 2010, albeit a less marked one than in 2009. Return to growth is expected in 2011. The US is due to experience an 8.8 percent reduction in construction investment compared with the previous year. Eastern Europe faces a 4.9 percent drop, putting it slightly ahead of Western Europe at 6.1 percent negative growth.

Germany is the exception in Europe, having experienced an increase in construction investment since the beginning of the year. Various factors, such as catching up on production downtime during the winter months and government recovery packages have contributed to this positive situation. The general economic climate in Germany has also created an upbeat mood in the construction sector. Non-residential construction has been gaining since the start of 2010. However, trends in order intake point to a slowdown in the second half of the year. The leading German economic institutes expect a total increase over the year of 2.1 percent. Projects planned as part of the government recovery program will push up investment in public construction by 5.3 percent. Economic institutes expect the total growth in construction investment for 2010 to reach 3.7 percent, spread across residential, non-residential and public projects.

Agricultural sector recovering

The economic crisis spread to the agricultural industry last year. This year, however, this sector continues to show signs of stable recovery according to the latest business indicator study for the agricultural industry published by the German farmer's association (Deutscher Bauernverband). According to that study, willingness among landholders to invest in machines and equipment has been on the rise since March.

European livestock farming, a key market for Wacker Neuson, has also experienced positive development in 2010. The AEM predicts more growth in Eastern Europe this year: 4.9 percent compared with 3.1 percent in 2009. In Western Europe, they expect growth of 3.2 percent after last year's 2.4 percent decline.

The prices for grain and feedstock dropped worldwide this fall, although these prices are expected to rise once more. This could, however, reflect the effects of financial speculation on global markets.

Group business development

With its strong balance sheet, excellent growth prospects and innovative drive, the Wacker Neuson Group aims to stick to its strategic path, outgrow the market and return to pre-crises levels. The beginning of the construction season in 2010 was marked by consistently strong performance across all sectors, especially in the core markets of the US and Europe. The Group was able to leverage sales synergies resulting from the merger in various countries, where it introduced compact equipment via existing light equipment sales channels.

Rise in revenue and earnings again prompts Group to revise forecast upward

The Group started benefiting from an increase in demand for light and compact equipment as early as the second quarter. Even in August, however, uncertainty surrounded the prospect of continued economic recovery, particularly with regard to the sustainability of the upswing. The Group revised its annual forecast upward in August, predicting a rise in revenue of at least 10 percent compared with the previous year, and an EBITDA margin of at least 9 percent.

Revenue was up a total of 24.6 percent to EUR 551.7 million over the first nine months of fiscal 2010 (previous year: EUR 442.8 million). At EUR 196.0 million, third-quarter revenue was 31.5 percent above the same period last year (Q3 2009: EUR 149.0 million). Second-quarter revenue (EUR 205.3 million) was not matched by the third quarter. However, the strong figures from the second quarter were inflated by the project backlog from Q1 resulting from the harsh winter. In addition, seasonal fluctuations usually result in Q3 figures being lower than Q2.

New product sales in the light equipment segment in particular were encouragingly positive, confirming the trend that has been emerging for over a year. Consistently high demand for light equipment in the US market contributed significantly to the rise in revenue compared with the previous year.

As anticipated, investments in compact equipment also picked up, as customers started to replace existing equipment. The order backlog for compact equipment for the construction and agricultural industries remained on a positive path, up around 380 percent on the previous year's figure at September 30 (June 30, 2010: +350 percent compared with same date in 2009). Delivery bottlenecks among suppliers, which had caused delays in product deliveries in the first half of the year, eased as expected during the third quarter. However, this issue has not been fully resolved. There was also a change in order patterns, evident across the entire sector. Customers have been ordering equipment earlier than last year in anticipation of longer delivery times.

Accumulated order intake in the contruction industry remained high, with an increase of around 90 percent at September 30 compared to previous year.

Company management recently again adjusted its forecast upward to reflect the fact positive trends and high accumulated order intake for compact equipment have continued into the third quarter. Management is now predicting a rise in revenue for the entire year of at least 20 percent compared with the previous year, and an increase in the EBITDA margin to above 10 percent.

Finances continue strong

In spite of higher investment levels in the first nine months of 2010, the Group remains virtually debt-free. Group finances and assets remain extremely strong, with liquidity at EUR 53.1 million and the equity ratio at 79.4 percent.

Successful appearance at GaLaBau

At the end of September, the Group presented its product portfolio with great success at the GaLaBau trade fair in Nuremberg. GaLaBau is the largest gardening and landscaping trade fair in the German-speaking region. The Group reported a 70-percent increase in order intake at the event compared with the last GaLaBau held in 2008. This is

GaLaBau 2010: The company's portfolio resonated strongly among customers. The Group reported a 70-percent increase in order intake at the event compared with the last GaLaBau held in 2008.

a particularly positive result on the back of Wacker Neuson's success at bauma in April 2010, where the company's portfolio resonated strongly among customers. Held in Munich, bauma is the world's largest construction equipment trade fair.

Capital market communication and share trends

Wacker Neuson systematically stepped up its communication activities with all capital market players. In the third quarter, the Executive Board continued to actively report on current Group developments at roadshows and capital market conferences in Europe and the US, also outlining company strategy in a series of one-on-one meetings. WACKER NEUSON MANITOU HAULOTTE PALFINGER DEUTZ

Wacker Neuson shares progressed positively during the third quarter. Mid-year, the share posted at EUR 9.65. On July 29, it maxed EUR 11.72, dropping from there to EUR 9.50 on August 30. It climbed once more, closing at EUR 10.06 on September 30. Since the close of the third quarter, the share price has climbed above EUR 13.00, outperforming the upward DAX and SDAX trends.

Changes to the Group organization and structure

The third quarter also saw a change in Group management.

Dr. Georg Sick announced on September 15 that he was stepping down from his office as CEO and President of the Wacker Neuson SE Executive Board. The move came at the request of Dr. Sick who wished to prepare for his next professional challenge starting after December 31, 2010. Dr. Sick initially agreed to the Supervisory Board's request to remain in office until the end of the year despite his contract expiring in July. The remaining members of the Executive Board are all committed to the company in the long term. In agreement with the Supervisory Board, the Executive Board nominated Mr. Richard Mayer, responsible for the light equipment business segment, as

their temporary spokesperson until an external successor can be found to take over the role of CEO and President.

For a full description of changes made to the ownership structure of the Group affecting the consolidation process, please refer to the Notes to these Interim Financial Statements.

Share price trends January through October 2010 in %

Share price trends plotted against peers January through October 2010 in %

Profit, finances and assets

The following figures include the effects of purchase price allocation (PPA), resulting from the merger of the former Wacker Construction Equipment AG and Neuson Kramer Baumaschinen AG in fall 2007. Further information can be found at the end of this report.

Profit

Key profit figures (2010 quaters)

in € million	Q3/2010	Q2/2010	Q1/2010
EBITDA	25.0	27.0	3.7
EBITDA margin as a %	12.7	13.2	2.4
EBIT	14.1	17.2	- 5.9
EBIT margin as a %	7.2	8.4	- 3.9
EBT	13.8	15.8	- 6.7
Profit for the period	10.1	10.9	- 5.7

Positive development in revenue and earnings continues

Group revenue and earnings during the first nine months of fiscal 2010 were characterized by a rise in customer investments and increased sales of Wacker Neuson product and services.

Revenue Q3/9M 2010 and 2009 in € million

Q3/2010		196.0
Q3/2009		149.0
9M/2010		551.7
9M/2009		442.8

Group revenue was up 24.6 percent to EUR 551.7 million (previous year: EUR 442.8 million) during the first nine months of the year. Adjusted to discount currency fluctuations, this corresponds to an increase of 20.6 percent. The positive trend in demand evident in Q2 thus continued into Q3, with revenue clearly up on the same quarter last year at EUR 196.0 million (Q3 2009: EUR 149.0 million). This corresponds to an increase of 31.5 percent. This value was slightly lower than the Q2 figure (EUR 205.3 million) due to the usual seasonal factors such as the halting of construction work for vacation. Q2 figures, on the other hand, had been inflated as the industry caught up on the backlog from a weak first quarter.

Manufacturing costs over the first nine months of the year rose to EUR 365.6 million (previous year: EUR 306.1 million). Increased prices for raw materials compared with

last year, particularly for steel and steel components, only slightly affected production costs in the period under review.

Gross profit on revenue climbed to EUR 186.1 million (previous year: EUR 136.7 million) in the first nine months. The gross profit margin rose to 33.7 percent (previous year: 30.9 percent). At 35.7 percent, the Q3 margin was even up on the Q2 margin (Q2: 34.4 percent).

Selling expenses, R&D and administrative costs kept low

At the end of 2008, the Group implemented a program of measures in response to the global economic crisis, which significantly reduced selling expenses and administrative costs in the same period in 2009. However, the Group had not restricted R&D activities in order to maintain pace on forward-looking development projects. The current fiscal year in particular is testament to the lasting impact of the company's long-term cost-cutting measures.

As a result, selling expenses for the first nine months of the year totaled EUR 106.5 million, only slightly above the previous year's figure of EUR 102.9 million despite the increase in revenue. The same applies to R&D costs, which totaled EUR 16.4 million (previous year: EUR 15.5 million). General administrative costs amounted to EUR 40.6 million (previous year: EUR 35.6 million) in the first nine months. Administrative costs corresponded to a 7.4-percent share of revenue, down from last year's 8.0 percent.

Expressed as a percentage of revenue, selling expenses, R&D and administrative costs were down to 29.6 percent as a result of the increase in revenue (previous year: 34.8 percent).

Strong earnings once more in the third quarter

The success of the Group's optimized cost structure was fully reflected in the earnings figures with profit before interest, tax, depreciation and amortization (EBITDA) for the first nine months of 2010 rising strongly from EUR 16.8 million for the same period last year to reach EUR 55.7 million. The EBITDA margin increased to 10.1 percent (previous year: 3.8 percent). In the third quarter alone, the Group generated an EBITDA of EUR 25.0 million. Over the same period, the EBITDA margin reached 12.7 percent (Q3 2009: 10.5 percent).

Depreciation and amortization amounted to EUR 30.3 million (previous year: EUR 30.2 million) in the first nine months.

EBITDA

Q3/9M 2010 and 2009 in € million

Q3/2010		25.0
Q3/2009		15.6
9M/2010		55.7
9M/2009		16.8

Profit before interest and tax (EBIT) improved over the first nine months of the year to reach EUR 25.3 million (previous year: EUR -13.4 million). This pushed the EBIT margin up to 4.6 percent (previous year: -3.0 percent). The Q3 EBIT of EUR 14.1 million contributed to the strong earnings in this period. Over Q3, the EBIT margin rose to 7.2 percent (Q3 2009: 4.0 percent).

EBIT Q3/9M 2010 and 2009

in € million

Q3/2010	14.1
Q3/2009	5.9
9M/2010	25.3
9M/2009	-13.4

Exchange rate fluctuations only have minimal impact on profit due to natural currency hedging within the Group. During the first nine months of fiscal 2010, the average euro/dollar exchange rate was 1 EUR to 1.32 USD (previous year: EUR 1 to USD 1.37).

The financial result after nine months amounted to EUR -2.4 million (previous year: EUR -1.7 million).

Profit before tax (EBT) rose to EUR 22.9 million (previous year: EUR -15.2 million). Tax expenditure amounted to EUR 7.2 million (previous year: tax revenue of EUR 4.8 million). At 31.5 percent, the tax rate remained almost the same as the previous year (31.7 percent).

At EUR 15.4 million, profit for the first three quarters of the year was clearly above earnings for the same period last year (EUR -10.4 million). In the third quarter alone, the Group generated a profit for the period of EUR 10.1 million. The company had already returned to the profit zone during the first half of the year (reporting EUR 5.2 million net profit). Based on a weighted average number of ordinary shares in circulation during the period of 70.14 million, earnings per share totaled EUR 0.22 (previous year: EUR -0.15) over the first nine months of the year, and EUR 0.14 for the third quarter, doubling the previous year's value (EUR 0.07).

Finances

Finances

in € K	Jan. 01 – Sep. 30, 2010	Jan. 01 – Sep. 30, 2009
Cash flow from operating activities	33,536	95,241
Cash flow from investing activities	- 60,447	- 26,174
Change in consolidation structure	+ 727	+ 163
Free cash flow	- 26,184	+ 69,230
Cash flow from financing activities	- 6,501	- 33,556
Effect of exchange rates on
cash and cash equivalents	1,453	233
Change in consolidation structure	- 727	- 163
Change in cash and
cash equivalents	- 31,959	35,744
Cash and cash equivalents
at beginning of period	85,024	37,339
Cash and cash equivalents
at end of period	53,065	73,083

Rising investments influence free cash flow

Cash flow from operating activities reached EUR 33.5 million at the end of the first nine months of the year (previous year: EUR 95.2 million). Last year, the Group actively reduced working capital to boost liquidity, which led to an increase in the operating cash flow. By the end of the first half of 2010, operating cash flow was still negative at EUR -2.4 million, largely due to the investments required to build up inventory plus the increase in receivables accompaning higher revenue streams. The Group was able to increase operating cash flow in the third quarter of 2010 to EUR 35.9 million, most of which was a result of lower receivables.

Cash flow from investment activities reflected renewed investment projects, which the Group had drastically cut back in 2009 and partially deferred until 2010. During the first nine months of the year, Wacker Neuson invested a total of EUR 53.7 million in property, plant and equipment (previous year: EUR 26.0 million). This was channeled in part into construction of a new Research and Development Center and company headquarters in Munich. Investment in the Central and Eastern European rental business contributed to these figures, as did the Q1 acquisition of a property in Hörsching (Austria). Cash flow from investment activities thus amounted to EUR -60.4 million in the first nine months of 2010 (previous year: EUR -26.2 million).

Free cash flow reached EUR -26.2 million (previous year: EUR 69.2 million) after nine months.

For information on acquisitions/disposals, please refer to the Notes to these Interim Financial Statements.

During the first nine months of 2010, cash flow from financing activities totaled EUR -6.5 million. In fiscal 2009, cash flow of EUR -33.6 million had been influenced mainly by short-term loan repayments and dividend payments for fiscal 2008. No dividends were paid out in 2010 for fiscal 2009.

Comfortable liquid reserves

With liquid assets amounting to EUR 53.1 million at the closing date (December 31, 2009: EUR 85.0 million), the Group continues to demonstrate healthy levels of liquidity. Wacker Neuson is able to meet existing liquidity needs through a combination of its own liquid assets and credit lines extended by credit institutes. The Group continues to draw on less than half of the EUR 126 million available through credit lines.

Working capital up in line with positive revenue development

At September 30, 2010, working capital was up 18.8 percent to EUR 258.9 million (December 31, 2009: EUR 217.9 million). Inventory increased to EUR 175.7 million (December 31, 2009: EUR 148.3 million) due to higher production volumes and targeted inventory build-up to secure the Group's ability to deliver products. This in turn drove trade payables up to EUR 47.0 million (December 31, 2009: EUR 21.3 million). Trade receivables were up to EUR 130.3 million (December 31, 2009: EUR 90.8 million). The rise in working capital reflects positive market dynamics fueled by the economic recovery.

Assets

Assets, equity and liabilities

in € K	Sep. 30, 2010	Dec. 31, 2009	Change in %	Sep. 30, 2009
Total non
current assets	660,022	632,696	+ 4.3	734,035
Total current
assets	370,934	339,042	+ 9.4	376,810
Total assets	1,030,956	971,738	+ 6.1	1,110,845
Equity	818,316	791,522	+ 3.4	886,902
Total non-cur
rent liabilities	92,531	89,280	+ 3.6	105,661
Total current
liabilities	120,109	90,936	+ 32.1	118,282
Total
liabilities	1,030,956	971,738	+ 6.1	1,110,845

Assets in strong position with continued high equity ratio

To reflect seasonal fluctuations to a greater extent, the balance sheet for 9M 2010 includes equivalent figures from the corresponding closing date of the previous year for the first time.

At the close of the first nine months of the year, the balance sheet again shows Group assets to be in a strong position. The balance sheet total increased to EUR 1,031.0 million (December 31, 2009: EUR 971.7 million). This is slightly down on the balance sheet total at September 30, 2009, which was EUR 1,110.8 million.

Assets increased to EUR 628.4 million (December 31, 2009: EUR 597.8 million). Due to an increase in production levels, the value of finished products rose to EUR 118.1 million (December 31, 2009: EUR 107.1 million). Inventories were up 18.4 percent at EUR 175.7 million (December 31, 2009: EUR 148.3 million). At EUR 370.9 million, current assets were up on the same figure for December 31, 2009 (EUR 339.0 million) due to the increase in working capital. However, this figure is below current assets at September 30, 2009 (EUR 376.8 million).

Equity amounted to EUR 818.3 million (December 31, 2009: EUR 791.5 million). The equity ratio was 79.4 percent (December 31, 2009: 81.5 percent), and, in the company's view, is still at a high level for the industry. The company's share capital remained unchanged at EUR 70.14 million.

Total non-current liabilities rose 3.6 percent to EUR 92.5 million (December 31, 2009: EUR 89.3 million). Total current liabilities increased to EUR 120.1 million (December 31, 2009: EUR 90.9 million) due to the rise in trade payables resulting from the increase in inventory. Total current liabilities matched the results at the same closing date last year.

Net financial position provides flexibility

At the close of the first nine months of the year, net financial debt totaled EUR 1.8 million (December 31, 2009: net cash position of EUR 24.9 million). Net financial debt is down on the result at the close of the first half-year and the Group is almost debt-free at the reporting date. Company management is of the opinion that the Group remains in a healthy financial position with scope to maneuver beyond its current liquidity levels.

Net financial position

in € K	Sep. 30, 2010	Dec. 31, 2009
Long-term borrowings	-36,328	-33,583
Short-term borrowings	-6,629	-14,889
Current portion of
long-term borrowings	-11,929	-11,698
Cash and cash equivalents	+53,065	+85,024
Total	-1,821 (net financial debt)	+24,854 (net cash position)

Off-balance-sheet assets and financing instruments

In addition to assets recognized on the balance sheet, the Group also uses off-balance-sheet assets as is standard business practice. These assets are mainly leased or rented goods (operating leases). The Group does not utilize any other significant off-balance-sheet financing instruments such as the sale of a trade receivables program.

Segment reporting

With its wide range of products and services, the Wacker Neuson Group caters to construction companies and to dealers, rental organizations and importers across the globe.

The Group's segment reporting provides an overview of business development by region (Europe, Americas and Asia) and reports revenue by business segment (light

equipment, compact equipment and services). The Group also provides information on the proportion of revenue generated by the construction and agricultural sectors.

The Group was successful in increasing revenue across all regions and business segments during the first nine months of 2010 – in most cases, with double-digit percentage growth.

Results for Europe, the Americas and Asia

* Differences attributable to rounding.

Rising sales in Europe

As was to be expected, Europe continued to account for the majority of Group turnover with a 72.8 percent share of total revenue (previous year: 77.8 percent). At the close of the first nine months of fiscal 2010, this region's revenue had risen 16.6 percent to EUR 401.6 million (previous year: EUR 344.3 million). Profit before interest and tax (EBIT) increased from EUR -7.2 million for the same period last year to EUR 16.2 million.

Europe 9M 2010 and 2009 in € million

The upswing in construction was felt across the entire region, above all in France, Switzerland, the UK, Sweden, Norway, Poland, Turkey and Russia (which we also include in the segment Europe). The Netherlands, Denmark, Finland and Italy were the only countries where development remained below the previous year's level.

Significant revenue growth in the Americas

Revenue in the Americas was up 64.4 percent on the previous year, to EUR 127.5 million (previous year: EUR 77.6 million). Profit before interest and tax (EBIT) rose from EUR -8.4 million to EUR 11.4 million. This region increased its share of total revenue from 17.5 percent to 23.1 percent. Discounting exchange rate fluctuations, revenue in the region was up by 52.4 percent.

Americas

9M 2010 and 2009

in € million

Revenue

9M/2010			127.5
9M/2009			77.6
EBIT
9M/2010			11.4
9M/2009			-8.4

The first nine months of 2010 thus confirm that the positive trend first identified mid 2009 has continued and is gaining momentum. In the US, the company reported an increase in product sales via its dealer network. During the third quarter, large rental organizations tended to focus on isolated investments, replacing older machines in their rental pools. Expressed in local currency (US dollars), revenue generated by the affiliate Wacker Neuson Corporation was up by around 55 percent on the previous year's level. The upward path in South America and Canada was even more pronounced.

Positive trends in Asia

In the Asia region, revenue for the first nine months of 2010 was up 7.7 percent on the previous year, from EUR 21.0 million to EUR 22.6 million. Profit before interest and tax (EBIT) totaled EUR -0.6 million (previous year: EUR 1.0 million). This is because transport costs for the production plant in Manila were higher than the previous year due to delivery bottlenecks among suppliers. In light of the strong

growth in other regions, this region's share of total revenue dropped to 4.1 percent (previous year: 4.7 percent).

Asia 9M 2010 and 2009 in € million
Revenue
9M/2010	22.6
9M/2009	21.0
EBIT
9M/2010	-0.6
9M/2009	1.0

Overall, the construction industry showed signs of recovery in the Asia and Pacific region, particularly in Australia. Business in Asia profited from the large number of infrastructure measures driving the expansion of road and rail networks. Light equipment from the demolition field – above all gasoline breakers – is in particular demand in China for rail track construction projects.

Results for the light equipment, compact equipment and services segments

Revenue by business segment

in € K	9M/ 2010	9M/ 2009
Segments revenue from external customers
Light equipment	223,700	160,945
Compact equipment	191,330	151,293
Services	140,898	134,744
	555,929	446,982
Less cash discounts	- 4,277	- 4,146
Total sales	551,652	442,836

Demand for light equipment remains high

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. Revenue before discounts in this segment rose 39.0 percent to EUR 223.7 million during the first nine months of fiscal 2010 (previous year: EUR 160.9 million). This confirms the company's expectations of

an early recovery for this segment. Global demand for light equipment has risen significantly for over a year now. This segment's share in total revenue was 40.2 percent (previous year: 36.0 percent). Production is synchronized with demand, and delivery times are short. The company therefore does not report order intake or order backlog for this segment.

The company again launched a range of new products and models in this segment, including new vibratory plates, electric breakers and powerful new pumps.

Revenue growth for compact equipment with order backlog remaining strong

The compact equipment business segment covers the manufacture and sale of compact machinery (excavators, wheel loaders, skid steer loaders, telescopic handlers and dumpers) weighing up to approximately 14 tons. In the first nine months of 2010, sales before discounts in this segment rose from EUR 151.3 million to EUR 191.3 million. This represents an increase of 26.5 percent. Although this rise followed on from a very low baseline, it nevertheless confirms that demand for these products is experiencing an upward trend. Revenue from compact equipment in the third quarter of 2010 was up 53 percent on the same period last year. Q2 revenue for this segment in 2010 was up 32 percent on the prior-year quarter. This segment's overall share of revenue for the entire reporting period totaled 34.4 percent (previous year: 33.8 percent). This confirms the company's prediction that investment in compact equipment would also rise as customers start to replace machines.

Accumulated order intake for the construction industry also continued to follow a very positive growth path, with figures at September 30, 2010 around 90 percent up on the same period last year. It is the opinion of company management that this is primarily fueled by rising demand from end customers rather than dealers increasing inventory levels.

The order backlog for compact equipment for the construction and agricultural industries continued to develop positively, closing around 380 percent up on the previous year at September 30, 2010 (June 30, 2010: 350 percent higher than June 30, 2009). This was mainly due to bottlenecks among certain suppliers, who – as anticipated – had difficulties meeting deliveries as the economy started to recover. Some parts, such as steering columns and hydraulic components used to produce wheel loaders were not delivered on time. This situation improved gradually over the third quarter. However, changing order patterns were also a contributing factor as customers ordered equipment earlier than last year in anticipation of longer delivery times.

Capitalizing on the merger, the company continues to gain market share by leveraging mutual sales synergies. The Group is using its existing sales network to distribute its compact equipment portfolio to more and more markets beyond Europe. Demand for compact equipment is currently developing particularly well in South America, Canada, South Africa and Switzerland.

There were no noticeable signs of increased pressure on prices during the third quarter. The company continued to successfully offer special financing options.

The first nine months of the year saw the company launch new compact equipment that provides significant added value for customers. The products here include a new range of wheel loaders plus compact telescopic handlers from the Kramer Allrad brand and track excavators from Wacker Neuson. The company also launched additional mini excavator models equipped with new features. In addition, Wacker Neuson largely overhauled its cab concept for compact equipment.

The one and only – success story stretching back over the last 80 years.

The original rammer from Wacker Neuson.

Hermann Wacker invented the world's first vibratory rammer in 1930. This model featured an electric motor. The next innovation milestone came in 1952 when Wacker released a rammer powered by a combustion engine. Since then, the Wacker Neuson rammer has gone from strength to strength, raising the bar in performance and ecology the world over.

Demand for agricultural machines continued to rise in the third quarter. The order situation here is comparable to the healthy order book on the construction side. Under the Weidemann brand, the company produces well-designed, innovative machines for the agricultural sector, targeted in particular at farmyard work. At the close of the first nine months of the year, compact equipment for the agricultural industry accounted for 11.9 percent of revenue (previous year: 13.6 percent).

Group rental business at all-time high

The services segment, which covers the business fields rental (Central and Eastern Europe) and after-market (repair and maintenance), remained stable throughout the crisis. In the first nine months of 2010, the Group was again able to increase sales before discounts here. Revenue was up 4.6 percent in the period under review to EUR 140.9 million (previous year: EUR 134.7 million). This segment's share of total revenue was thus 25.3 percent (previous year: 30.1 percent).

Sales before discounts in the after-market business field (which covers the traditional repair and spare parts business) were up 6.5 percent to EUR 96.8 million (previous year: EUR 90.8 million). The company increased spare parts prices by 3.0 percent on April 1, 2010.

The Group was able to expand its own rental activities in Central and Eastern Europe last year despite the economic crisis. Revenue generated by the rental business continued to develop positively in the first nine months of 2010, reaching a new all-time high of EUR 44.1 million (previous year: EUR 43.9 million).

Other factors that impacted on results

Rise in demand leads to improved utilization of production capacity

Increased demand for the company's products resulted in higher output at its manufacturing facilities. Products in the light equipment business segment were largely delivered

promptly. The delivery timeframe for compact equipment is currently three to four months. This is due to the order situation described previously.

Headcount remains almost unchanged

At September 30, 2010, Group headcount totaled 3,086 (previous year: 3,090; December 31, 2009: 3,059). This figure does not reflect the actual number of employees, but the number of positions as calculated on a full-time basis. At the beginning of the year, the company started hiring new staff for dedicated tasks – in the US for example.

Price of raw materials rises

The price of raw materials, especially steel, rose. This development only had a minor impact on production costs during the period under review. The market generally accepts rises in purchasing costs being passed on in the form of price increases. The Group does not plan to increase prices this year.

Research and development activities

At EUR 16.4 million, research and development expenses for the first nine months of the year were only slightly up on the previous year's figure of EUR 15.5 million. The research and development ratio was at 3.0 percent (previous year: 3.5 percent). Research and development activities were carried out as planned during the period under review. Development projects primarily focused on expanding the Group's leading position in product and user safety as well as in environmental protection. The company benefited from its decision to maintain research and development activities throughout the economic crisis. The innovations it presented at key industry trade fairs and exhibitions were very well received by customers.

Success for Wacker Neuson at GaLaBau

The GaLaBau trade fair is the largest gardening and landscaping trade fair in the German-speaking region. This year's exhibition in Nuremberg, Germany, again proved a great success for Wacker Neuson. The Group showcased its

Wacker Neuson shows its innovative credentials.

This September, the state of Upper Austria awarded its Innovation Prize 2010 to the most creative companies in the region. The high-ranking jury, comprising representatives from academia and industry along with construction and media experts were suitably impressed by Wacker Neuson's Vertical Digging System (VDS), awarding it second place in the large enterprise category. Wacker Neuson is the only company worldwide to offer this innovative technology. VDS enables drivers to continuously tilt the superstructure of an excavator by up to 15 degrees and compensate for gradients of up to 27 percent at the touch of a button.

broad product portfolio and demonstrated to customers the added value of light and compact equipment from Wacker Neuson and Kramer Allrad. A key factor in many customers' purchase decisions was the end-to-end service concept that flanked this broad portfolio. This included repairs and spare parts plus rental and financing options for compact equipment. The positive feedback from customers was reflected in order intake, with the final figure up 70 percent on GaLaBau 2008. Company management regards this as an exceptional result for a bauma year.

Changes to the opportunity and risk situation

In the first nine months of 2010, 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 on 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 for Group auditing. The internal controlling and risk management system is described in detail in the consolidated financial statements for 2009.

The company has identified the following risks to the Wacker Neuson Group as of September 30, 2010 that deviate from the 2009 consolidated financial statements and the 2010 half-year report.

From the company's perspective, the rapid pace of recovery poses an increased risk to the quality of components from suppliers. Components and raw materials must be in perfect condition to ensure relevant specifications and quality standards can be met. Defects – also in components and raw materials from external suppliers – may impact quality and slow production, ultimately delaying product delivery. The Wacker Neuson Group is countering this risk with a quality management system that also covers relations with suppliers.

The remaining risks to the Group in the period under review are listed in the 2009 Annual Report on pages 81 to 85.

Company management is not currently aware of any other significant risks to the Wacker Neuson Group. The company has also not identified any single or collective risks to the company's 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

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

Outlook

Pace of global economic recovery to continue at a slower pace

Leading economic institutions forecast that the global economy will continue to recover in the coming year, albeit at a considerably slower pace. Global production is predicted to rise by 2.8 percent in 2011 and global trade by 6.8 percent. However, the sharp increase in the price of gold and low interest rates on government bonds from countries with strong credit standings point to a certain degree of market uncertainty.

Economic institutions do not expect the US to enter another recession as high profits and low interest rates will create a conducive investment environment. Consumption is also set to continue increasing at a moderate pace. GDP is predicted to rise by 1.9 percent here during 2011.

The EU's highly restrictive fiscal policy may dampen recovery in Europe. However, European economies geared towards export to markets in Asia will continue to benefit from growth in this region. Overall, however, the downshift in the global economy will dilute the pull from foreign markets. Economic institutions expect GDP in the European Union to increase by 1.5 percent over 2011.

Germany's persistently low interest rate will stimulate investment. During the latter part of the year, exports should profit from an upswing in global trade. Furthermore, low unemployment will boost consumer spending. Germany's GDP for 2011 is expected to grow 2 percent, compared with 3.4 percent projected for 2010.

Positive outlook for construction and agricultural industries

The crisis in the global construction industry also seems to have bottomed out and signs of recovery are evident, although the situation differs from region to region.

Stabilization of the US property market remains a key prerequisite for sustainable recovery of the American construction industry. The American Rental Association (ARA) does not expect the US (rental) market to start recovering until 2011, although it forecasts clear growth rates for 2012. Experts predict that the construction equipment industry in Asia, and China in particular, will continue to grow throughout the second half-year. During the course of the year, Euroconstruct adjusted its forecasts for the European construction industry for 2010 downwards slightly, in light of dampened prospects for Ireland, Spain and the Czech Republic.

Market research experts forecast that the construction sector in Germany and Great Britain will show the biggest signs of progress in Europe. In 2011, the European construction industry is expected to have largely overcome the effects of the global economic downturn. Infrastructure projects are scheduled in many European countries, with investment funds earmarked for the expansion of road, rail, transport and telecommunications networks. We also regard Eastern Europe as a promising growth market for the construction industry, due, on the one hand, to EU subsidies and, on the other, to public funds aimed at bolstering infrastructure (road, rail and telecommunications networks).

The agricultural sector is continuing to move toward larger holdings in Europe. This is fuelling a rise in rationalization investments, flanked by EU agricultural subsidies. Improved prospects for the agricultural sector are closely linked to global economic recovery. This will drive demand for agricultural machinery worldwide in the medium term.

Positive business development expected to continue

Wacker Neuson is optimistic about prospects for fiscal 2010 and 2011. This is due to a number of factors including continued high demand for light equipment in Europe, the Americas and Asia, plus the marked upturn in business and strong order book for the compact equipment segment.

The high order backlog for compact equipment should return to normal levels by the first quarter of 2011 as supplier bottlenecks continue to ease. The delivery timeframe here is currently three to four months. The company aims to bring this down to two months. Wacker Neuson expects order intake to continue to develop positively.

The Group expects large rental organizations in the US and Europe to ramp up investments in the first half of 2011.

Forecasts for 2010 raised again

The enduring nature of the current positive trend has led Wacker Neuson management to adjust its previous forecast from August of this year upwards once more. Company management now expects revenue to be over 20 percent up on the previous year (previous forecast: over ten percent). The Group also expects profit before interest, tax, depreciation and amortization (EBITDA) to improve and correspond to at least 10 percent of revenue (previous forecast: at least 9 percent).

Over the course of the year, the Group intends to flexibly adjust manpower capacity to meet the rise in orders. This will entail some new hires. The company will ensure that cost increases remain moderate and in synch with the rise in revenue.

Despite the recent crisis, the Wacker Neuson Group is in a strong financial position. The company's liquid assets total EUR 53.1 million. It is virtually debt-free (low net financial debt) and has an equity ratio of 79.4 percent. Planned investments for 2010, totaling EUR 70.0 million, are to be mainly financed from current cash flow. The company's alliance agreement with Caterpillar accelerated investment in a project to construct a new production facility in Hörsching, Austria.

No significant financing measures are planned for the remainder of the year.

International growth strategy

The Wacker Neuson Group will continue to benefit from the systematic implementation of its strategy and the opportunities generated by opening up new markets.

The Group intends to build on its strong position in the light equipment sector by extending its reach to a global footprint. It aims to capitalize on developments in emerging markets such as South America, India and China by further expanding its product offering in those countries.

In the compact equipment segment, the company is implementing a number of strategies aimed at increasing this area's share of overall revenue in the medium term.

Wacker Neuson will, for example, continue measures aimed at launching its compact equipment portfolio in new markets. The US and Europe are the most promising growth markets for this segment. Compact equipment is only at the start of its lifecycle in the US. The company is therefore focusing on expanding its network of exclusive Wacker Neuson dealers in the US. The compact launch has already been particularly well received in South America and the Middle East. The Group is planning further market penetration activities for these regions.

The expansion of the Group's agricultural machinery portfolio will also significantly boost revenue in the medium term. This concept builds on a platform strategy that involves adapting construction industry machines for use in the agricultural sector.

Wacker Neuson is currently developing several mini excavator models for its alliance partner, Caterpillar. It does not expect this project to contribute to Group revenue until the second half of 2011 at the earliest. 2012 will therefore be the first full fiscal year to reflect the economies of scale and revenue stream from this twenty-year collaboration.

Further acquisitions and partnerships may also be part of the Group's medium- and long-term strategy insofar as these strengthen the product offering and provide added value to customers or enable the Group to expand its international footprint.

In 2007, the year of the merger, Wacker Neuson reported pro-forma revenue of around EUR 1 billion. Based on the current situation and assuming continued positive developments, the Group expects to return to pre-crisis revenue levels in 2013/2014. It also expects to achieve an EBITDA margin of at least 15 percent and an EBIT margin at least 10 percent by that time.

Pages 95 to 96 of the 2009 Annual Report list further opportunities for the company.

The outlook for the Wacker Neuson Group for the current fiscal year and beyond is positive. The Group is confident that it will capitalize on emerging opportunities in its markets and that it is ideally placed to consolidate its competitive position and outpace the market.

Dividend policy

The company expects to make a dividend payout for fiscal 2010 next year.

Munich, November 8, 2010 Wacker Neuson SE

The Executive Board

Richard Mayer Martin Lehner

Günther C. Binder Werner Schwind

Income Statement

July 1 through September 30 and January 1 through September 30

	Jul. 1–	Jul 1–	Jan. 1–	Jan. 1–
in € K	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2010	Sep. 30, 2009
Revenue	196,048	149,036	551,652	442,836
Cost of sales	- 126,147	- 96,467	- 365,577	- 306,128
Gross profit	69,901	52,569	186,075	136,708
Sales and service expenses	- 35,118	- 31,572	- 106,497	- 102,906
Research and development expenses	- 5,795	- 4,793	- 16,442	- 15,520
General administrative expenses	- 15,885	- 10,765	- 40,552	- 35,599
Other income	1,007	2,495	4,756	9,342
Other expenses	1	- 2,040	- 1,998	- 5,448
Profit before interest and tax (EBIT)	14,111	5,894	25,342	- 13,423
Financial result	- 355	- 685	- 2,442	- 1,749
Profit before tax (EBT)	13,756	5,209	22,900	- 15,172
Taxes on income	- 3,487	- 448	- 7,203	4,803
Profit before minority interests	10,269	4,761	15,697	- 10,369
Minority interests	- 121	- 5	- 341	- 68
Profit for the period	10,148	4,756	15,356	- 10,437
Earnings per share in EUR
(diluted and undiluted)	0,14	0,07	0,22	- 0,15

Total profit/loss for the period

July 1 through September 30 and January 1 through September 30

	Jul. 1– Sep. 30, 2010	Jul. 1– Sep. 30, 2009	Jan. 1– Sep. 30, 2010	Jan. 1– Sep. 30, 2009
in € K Profit/loss before minority interests	10,269	4,761	15,697	- 10,369
Items not recognized in profit/ loss for the period:
Exchange differences	- 12,546	- 2,980	11,181	234
Securing cash flows:
Profit/losses incurred in the current period	- 34	- 223	- 143	- 2,124
Tax effects from items in total profit/ loss for the period	2	75	59	669
Items not recognized in profit/ loss after tax for the period	- 12,578	- 3,128	11,097	- 1,221
Total profit/loss after tax for the period	- 2,309	1,633	26,794	- 11,590
Of which are attributable to:
- Shareholders in the parent company	- 2,430	1,628	26,453	- 11,658
- Minority interests	121	5	341	68
Total profit/loss after tax for the period	- 2,309	1,633	26,794	- 11,590

Balance Sheet

As at September 30

in € K	Sep. 30, 2010	Dec. 31, 2009	Sep. 30, 2009
Assets
Property, plant and equipment	295,803	267,408	267,947
Investment property	2,652	2,618	2,525
Goodwill	236,335	236,016	325,731
Intangible assets	89,313	87,624	97,710
Other investments	4,264	4,144	3,583
Deferred tax assets	15,200	13,344	13,424
Other non-current assets	16,455	21,542	23,115
Total non-current assets	660,022	632,696	734,035
Inventories	175,662	148,301	172,661
Trade receivables	130,321	90,837	100,152
Current tax receivables	1,441	6,165	6,996
Other current assets	10,445	8,715	10,707
Cash and cash equivalents	53,065	85,024	86,294
Total current assets	370,934	339,042	376,810
Total assets	1,030,956	971,738	1,110,845

70,140	70,140	70,140
597,005	585,908	581,295
148,357	133,001	232,668
815,502	789,049	884,103
2,814	2,473	2,799
818,316	791,522	886,902
36,328	33,583	47,288
25,215	25,530	28,674
30,988	30,167	29,699
92,531	89,280	105,661
47,041	21,251	26,693
6,629	14,889	32,871
11,929	11,698	11,579
11,108	13,583	12,462
802	413	539
42,600	29,102	34,138
120,109	90,936	118,282
1,030,956	971,738	1,110,845

Statement of Changes in Equity

As at September 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, 2008	70,140	618,397	- 36,914	1,033	256,432	909,088	2,731	911,819
Total profit for the period	0	0	234	- 1,455	- 10,437	- 11,658	68	- 11,590
Dividend	0	0	0	0	- 13,327	- 13,327	0	- 13,327
Balance at September 30, 2009	70,140	618,397	- 36,680	- 422	232,668	884,103	2,799	886,902
Balance at Dezember 31, 2009	70,140	618,661	- 32,495	- 258	133,001	789,049	2,473	791,522
Total profit for the period	0	0	11,181	- 84	15,356	26,453	341	26,794
Dividend	0	0	0	0	0	0	0	0
Balance at September 30, 2010	70,140	618,661	- 21,314	- 342	148,357	815,502	2,814	818,316

Cash Flow Statement

July 1 through September 30 and January 1 through September 30

	Jul. 1 –	Jul. 1 –	Jan. 1 –	Jan. 1 –
in € K	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2010	Sep. 30, 2009
EBT	13,756	5,209	22,900	- 15,172
Depreciation and amortization	10,855	9,763	30,333	30,214
Foreign exchange result	- 5,456	- 826	5,098	1,141
Gains/losses from sale of intangible assets and pro
perty, plant and equipment	291	- 1,336	527	- 1,394
Book value from the disposal of rental equipment	812	1,582	3,274	4,479
Gains/losses from derivates (cash flow hedging)	- 32	- 148	- 84	- 1,455
Financial result	356	685	2,442	1,749
Changes in inventories	- 6,947	16,577	- 27,361	44,369
Changes in trade receivables and other assets	18,116	12,935	- 35,127	32,892
Changes in provisions	1,712	396	- 1,654	1,761
Changes in trade payables and other liabilities	5,502	2,789	37,185	- 3,392
Interest paid	- 993	- 1,201	- 3,300	- 3,800
Income tax received/paid	- 2,685	- 1,279	- 2,113	1,831
Interest received	621	463	1,416	2,018
Cash flow from operating activities	35,908	45,609	33,536	95,241
Purchase of property, plant and equipment	- 17,956	- 7,830	- 53,679	- 26,014
Purchase of intangible assets	- 1,622	- 1,487	- 6,584	- 4,685
Proceeds from the sale of property, plant and
equipment and intangible assets	- 1	1,623	543	2,794
Proceeds received on the sales of
marketable securities	0	0	0	1,894
Change in consolidation structure	- 727	- 1	- 727	- 163
Cash flow from investing activities	- 20,306	- 7,695	- 60,447	- 26,174
Dividends	0	0	0	- 13,327
Proceeds/income from short-term borrowings	- 11,093	- 25,500	- 9,246	- 28,672
Proceeds/repayments of long-term borrowings	- 2,247	11,695	2,745	8,443
Cash flow from financing activities	- 13,340	- 13,805	- 6,501	- 33,556
Increase/decrease in cash and cash equivalents	2,262	24,109	- 33,412	35,511
Effect of exchange rates on cash and
cash equivalents	- 1,595	- 663	1,453	233
Change in cash and cash equivalents	667	23.446	- 31,959	35,744
Cash and cash equivalents at beginning of period1	52,398	49,637	85,024	37,339
Cash and cash equivalents at end of period1	53,065	73,083	53,065	73,083

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

Segmentation

January 1 through September 30

Primary segmentation (geographical segments)

in € K	Europe	Americas	Asia	Consolidation	Group
9M 2010
Segment revenue
Total external sales	566,167	186,900	32,134
Less intrasegment sales	- 134,682	- 29,717	- 1,560
	431,485	157,183	30,574
Intersegment sales	- 29,904	- 29,684	- 8,002
Total	401,581	127,499	22,572	0	551,652
Profit before interest and tax
(EBIT)	16,176	11,443	- 551	- 1,726	25,342
EBITDA	42,649	14,858	- 79	- 1,753	55,675
Net financial debt	- 17,513	19,973	1,488	- 2,127	1,821
Working capital	167,179	87,211	16,575	- 12,024	258,941
9M 2009
Segment revenue
Total external sales	469,290	114,415	25,439
Less intrasegment sales	- 107,296	- 16,625	- 762
	361,994	97,790	24,677
Intersegment sales	- 17,675	- 20,223	- 3,727
Total	344,319	77,567	20,950	0	442,836
Profit before interest and tax
(EBIT)	- 7,244	- 8,371	953	1,239	- 13,423
EBITDA	19,022	- 4,914	1,443	1,240	16,791
Net financial debt	- 2,891	13,433	- 259	- 4,839	5,444
Working capital	182,419	61,268	13,224	- 10,791	246,120

Sales by business segment

	Jan. 1 –	Jan. 1 –
in € K	Sep. 30, 2010	Sep. 30, 2009
Light Equipment	223,700	160,945
Compact Equipment	191,331	151,293
Services	140,898	134,744
	555,929	446,982
Less cash discounts	- 4,277	- 4,146
Total	551,652	442,836

Selected explanatory notes to the interim financial statements for the third quarter 2010

Accounting rules

The Wacker Neuson SE consolidated interim financial statements to September 30, 2010 have been prepared in accordance with International Financial Reporting Standards (IFRS) and their interpretation as valid on the reporting date and applicable to the EU. 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, 2009. The comments there also apply to the quarter and half-year statements for fiscal 2010, unless explicitly stated otherwise.

The general accounting principles and valuation methods used for the fiscal 2009 consolidated statements have also been applied to these interim financial statements.

For the first time, the balance sheet for Q3 2010 includes equivalent figures from the corresponding closing date of the previous year and the cash flow statement contains figures for the current and prior-year quarter.

Legal change to company structure

The Finnish affiliate Wacker Neuson Oy in Kerava has ceased operations and will be liquidated.

The New Zealand affiliate Wacker Neuson Ltd. in Auckland also ceased operations and will be liquidated.

These closures do not have a significant impact on the Group's assets, liabilities, financial position and profit/loss.

In August, Group member Wacker Neuson GmbH in Vienna, Austria, acquired a 100% stake in the company Bauma Baumaschinen Handels- und Vermietungs GmbH, based in Schwechat, Austria. The purchase price amounts to EUR 0.8 million. Subsequent purchase price adjustments may increase the purchase price up to a maximum of EUR 1.25 million.

matrics Beteiligungsgesellschaft mbH, an affiliate of Group member Wacker Neuson Beteiligungsgesellschaft GmbH, Austria, has been liquidated and is set to be deleted from the Register of Companies at the start of 2011.

matrics Beteiligungsgesellschaft mbH was not included in the Group consolidation structure due to its minor impact on the Group's assets, liabilities, financial position and profit/loss. Bauma Baumaschinen Handels- und Vermietungs GmbH is also not included for the same reason.

Seasonal fluctuations

The annual analysis of the seasonal distribution of consolidated revenue during the year reinforces the assumption that seasonal fluctuations in the Group only have a minor impact.

The quarterly distribution of consolidated revenue from fiscal 2006 through 2009 was as follows:

in %	2009	2008	2007	2006
Q1	23	26	24	24
Q2	26	28	28	27
Q3	25	24	25	25
Q4	26	22	23	24

Here it must be noted that revenue from the Neuson Kramer subgroup, which merged with Wacker Constuction on October 1, 2007, is not included in the 2007 and 2006 figures. However, it is included in the figures for 2008 and 2009.

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.

	2010	2009
Q3
Quarterly earnings attributable to shareholders in € K	10,148	4,756
Weighted average number of ordinary shares in circulation during the period in thousands	70,140	70,140
Earnings per share in EUR	0.14	0.07
9M
Quarterly earnings attributable to shareholders in € K	15,356	- 10,437
Weighted average number of ordinary shares in circulation during the period in thousands	70,140	70,140
Earnings per share in EUR	0.22	- 0.15

Important events

On September 15, 2010, Dr. Georg Sick stepped down from his position as CEO and President of Wacker Neuson SE at his own request to prepare for a new position that he intends to start as of December 31, 2010. Dr. Sick initially agreed to the Supervisory Board's request to remain in office until the end of the year despite his contract expiring in July. Payments for non-compete obligations, profit shares and bonuses totaling around EUR 3.5 million are due by 2012 in connection with Dr. Sick's departure from the company. The remaining members of the Executive Board remain committed to the company in the long term.

With the approval of the Supervisory Board, the Executive Board has temporarily appointed Mr. Mayer (Executive Board member responsible for light equipment) speaker of the Executive Board until an external successor to the position of CEO has been found.

Events since the interims statements reporting date

There have been no other significant events since the interim statements reporting date.

Munich, November 8, 2010

The Executive Board

Richard Mayer Martin Lehner

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 September 30, 2010 that are components of the quarterly financial report pursuant to § 37x Abs. 3 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, November 8, 2010

Rölfs WP Partner AG Wirtschaftsprüfungsgesellschaft

Reinke Jagosch (Public Auditor) (Public Auditor)

Wirtschaftsprüfer Wirtschaftsprüfer

Income Statement

Effects from Purchase Price Allocation (PPA)¹

in € K	Jan.1–Sep. 30, 2010	PPA	Jan.1–Sep. 30, 2010
Wacker Neuson	without PPA1		with PPA1
Revenue	551,652		551,652
Cost of sales	- 365,567	- 10	- 365,577
Gross profit	186,085	- 10	186,075
Sales and service expenses	- 106,497		- 106,497
Research and development expenses	- 14,072	- 2,370	- 16,442
General administrative expenses	- 40,300	- 252	- 40,552
Other income	4,756		4,756
Other expenses	- 1,998		- 1,998
Profit before interest and tax (EBIT)	27,974	- 2,632	25,342
Financial result	- 2,187	- 255	- 2,442
Profit before tax (EBT)	25,787	- 2,887	22,900
Taxes on income	- 7,967	764	- 7,203
Profit before minority interests	17,820	- 2,123	15,697
Minority interests	- 382	41	- 341
Profit for the period	17,438	- 2,082	15,356
Profit before interest and tax (EBIT)	27,974	- 2,632	25,342
Depreciation and amortization	27,701	2,632	30,333
EBITDA	55,675	0	55,675

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

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, Unternehmenskommunikation

Concept & Design: Kirchhoff Consult AG, Hamburg

Content: Wacker Neuson SE

Financial Calendar 2010

November 12 Publication of nine-month 2010 November 23 /24 German Equity Forum, Deutsche Börse AG, Frankfurt, Germany December 02 Capital Market Conference, London

Financial Calendar 2011

March 24	Publication of financial results 2010, press conference
May 13	Publication of first-quarter report 2011
May 26	AGM, Munich
August 11	Publication of half-year report 2011
November 11	Publication of nine-month report 2011

Disclaimer

This nine-month 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 November 12, 2010. 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 version shall 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