Wacker Neuson SE — Interim / Quarterly Report 2010

Aug 18, 2010

H1/10

Half-year report 2010

Figures at a Glance

April 1 through June 30 and January 1 through June 301

in € million	Apr. 1– Jun. 30, 2010	Apr. 1– Jun. 30, 2009	Jan. 1– Jun. 30, 2010	Jan. 1– Jun. 30, 2009
Key figures
Sales	205.3	156.5	355.6	293.8
by region
Europe	147.6	122.7	257.6	230.3
Americas	49.9	26.9	82.9	50.7
Asia	7.7	6.9	15.1	12.8
by business segment2
Light Equipment	85.9	57.9	144.7	103.2
Compact Equipment	69.7	52.8	124.3	107.0
Services	49.7	45.7	86.6	83.5
EBITDA	27.0	13.4	30.7	1.1
Depreciation and amortization	9.9	10.2	19.5	20.5
EBIT	17.1	3.2	11.2	- 19.3
EBT	15.8	2.6	9.1	- 20.4
Profit for the period	10.9	1.4	5.2	- 15.2
Number of employees	3,076	3,232	3,076	3,232
Share
Earnings per share in €	0.16	0.02	0.07	- 0.22
Dividend per share in €	03	0.19	03	0.19
Key profit figures
Gross profit in %	34.4	33.5	32.7	28.6
EBITDA margin as a %	13.2	8.6	8.6	0.4
EBIT margin as a %	8.4	2.1	3.2	- 6.6
Key figures from the balance sheet			Jun. 30, 2010	Dec. 31, 2009
Property, plant and equipment			659.1	632.7
Current assets	379.5	339.0
Equity			820.6	791.5
Net financial debt			15.8	- 24.9
Liabilities			217.9	180.2
Equity ratio as a %			79.0	81.5
Working capital			270.2	217.9

Cash flow	Apr. 1– Jun. 30, 2010	Apr. 1– Jun. 30, 2009	Jan. 1– Jun. 30, 2010	Jan. 1– Jun. 30, 2009
Cash flow from operating activities	- 0.07	45.8	- 2.4	49.6
Cash flow from investing activities	- 15.0	- 10.1	- 40.1	- 18.5
Cash flow from financing activities	- 0.6	- 33.8	6.8	- 19.8
Free cash flow	- 15.1	35.8	- 42.5	31.3

¹ 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.

2 Consolidated sales after discounts.

3 Dividend payment approved at the AGM on May 28, 2010.

6-months 2010 update

H1 2010 news

A rise in demand for construction and agricultural machinery has enabled the Wacker Neuson Group to significantly increase revenue for the first half-year 2010 relative to the previous year and report positive earnings again. The upswing was reflected in a clear rise in revenue across all regions and business segments. The order situation in the compact equipment segment has also improved considerably.

H1 2010 compared to H1 2009

• Revenue totaled EUR 355.6 million, 21.0 percent up on the previous year.
• The upward trend in the light equipment segment (+40.0 percent) and the Americas (+63.3 percent), together with rising demand for compact equipment for the construction and agricultural industries were key factors behind the rise in revenue.
• Revenue for the second quarter was up 31.2 percent on the previous year, at EUR 205.3 million.
• The company returned to the profit zone as planned at the half-year mark, reporting net profit of EUR 5.2 million.
• The order backlog for compact equipment (for the construction and agricultural sectors) was 350 percent up on last year's figure at the end of June 2010.

Forecast and strategy

• Wacker Neuson and Caterpillar Inc. have agreed on a 20-year strategic alliance. The agreement will see Wacker Neuson producing mini excavators weighing up to 3 tons exclusively for Caterpillar in the future.
• The Farm Mobility concept is opening up new opportunities for the Group.
• New acquisitions will continue to be assessed.

Company raises overall growth forecast for 2010 due to positive market climate.

The Group expects revenue for fiscal 2010 to be over ten percent up on the figure for last year and an EBITDA margin of at least nine percent.

• Foreword by Executive Board | 02
• Interim Review | 04
• Interim Financial Statements Income Statement Total profit/loss for the quarter Balance Sheet Statement of Changes in Equity Cash Flow Statement Segmentation | 16
• Selected Explanatory Notes to the
• Interim Financial Statements | 22
  • Additional Table | 25
• Financial Calendar/IR Contact | 26

Dear Ladies and Gentlemen,

Dr.-Ing. Georg Sick CEO and President

The general mood among our customers has clearly picked up again – this was evident by the start of the construction season at the very latest. In fact, this trend was already noticeable at bauma, the world's largest construction industry trade fair, held every three years. This year's event was a resounding success for the Wacker Neuson Group. Since then, the upswing has spread across the entire industry, although the effects differ significantly from region to region. For our business, this means we are caught in a v-shaped recovery cycle.

The favorable economic climate fuelled a considerable rise in revenue across all regions and business segments during the first half-year. Revenue was up by a total of 21.0 percent to EUR 355.6 million. This increase was powered in particular by an exceptionally successful second quarter, which saw us boost revenue by 31.2 percent compared with the same quarter last year. Like many companies, we also benefited from the fact that we adapted our cost structures at an early stage, which means we are in a better position to absorb fixed costs as revenue rises. The high second-quarter earnings more than compensated for our loss in the first quarter and enabled the Group to return to the profit zone by the half-year mark.

New machine sales in the light equipment segment in particular were encouragingly positive, confirming the trend that has been emerging over the last twelve months. The continued upswing in the US was a key driving force here.

The revival in construction activity worldwide also clearly spurred the compact equipment segment as customers picked up the pace of investment again. Accumulated order intake for compact equipment in the construction and agricultural sectors was at the closing date almost double the figure for the previous year. The order backlog at the end of June 2010 was up by even 350 percent on the previous year. However, our expectation that some suppliers would have difficulties meeting orders as the market recovered was also confirmed. I can now report that this situation is improving and we can expect the order backlog to return to normal levels by the end of the year.

The rise in orders was accompanied by an increase in inventory. Working capital was therefore up and, as expected, our net cash position was turned into a slight net financial debt. Equity ratio remains at 79.0 percent and we expect to be able to finance planned investments for the entire year, totaling EUR 70 million, from current cash flow. Our financial standing therefore continues to be very satisfactory.

The capital market also reacted to the signs of early recovery in the construction industry. The Wacker Neuson share outperformed the upward SDAX trend and is currently listed at about EUR 11.

The positive economic climate coupled with our healthy order situation leave us confident about the second half of the year and have spurred us on to adjust our forecast upward. We now expect revenue for fiscal 2010 to be over ten percent up on the figure for last year. We expect profit before interest, tax, depreciation and amortization (EBITDA) to improve and account for at least 9.0 percent of revenue.

The recently signed alliance with global market leader Caterpillar will also open up new opportunities for the Group as we move forward. From 2011 onward, we will be developing mini excavators with a total weight of up to three tons exclusively for Caterpillar. These machines will be manufactured at Wacker Neuson's Austrian plant in Linz and distributed worldwide (with the exception of Japan). Both partners expect that the alliance will enable them to consolidate their competitive positions in this highly fragmented market more quickly. Our Farm Mobility concept will also drive growth within the Group. We have just started to launch selected models previously distributed exclusively in the construction sector in agricultural markets. The mood in the agricultural sector is upbeat due to rising milk and grain prices. This, in turn, is fuelling demand for our Weidemann-brand machines.

I believe that the company is excellently positioned for growth thanks to its forwardlooking strategies. A lot of groundwork has already been laid for our future development. And so I am confident that the company will quickly return to its pre-crisis profit levels. My decision to leave the company and focus on new challenges after 15 interesting years will certainly do nothing to change this. The healthy state of the company and clear signs of market recovery mean that this is a good time for me to move on. All remaining members of the Executive Board have been with the company for over ten years and are committed to the company in the long term. As already announced, the Group is looking for an external successor. At the request of the Supervisory Board, I will be bridging the interim period as far as possible by extending my term of office.

Sincerely yours,

Dr.-Ing. Georg Sick CEO and President

Interim review

Economic and business trends

Upturn in global economy gains momentum

Based on the drop in GDP last year, experts were still predicting slow recovery for the global economy at the start of the year. Concern that national economic stimulus packages would not have the required impact and that stringent lending policies might dampen investment were major factors here. During the second quarter, however, experts became increasingly confident that the recovery would be more pronounced than originally thought.

Economic development was particularly upbeat in the US due to the positive impact of national recovery packages and a backlog of investments that had previously been put on hold.

Recovery across Europe was more heterogeneous. While the economies in German-speaking countries showed a distinct upturn, other countries were forced to implement drastic austerity measures as a result of the debt crisis. The second quarter of 2010 was characterized by a drop in the external value of the euro – a development that boosted exports and benefited export-oriented EU countries such as Germany.

The promising economic conditions prompted institutions and banks to raise their growth predictions for this year for Germany.

Trends in construction and agricultural markets

Construction industry returning to normal levels

Although the global construction industry was shaped by the unusually harsh winter in Europe and North America during the first quarter, there are now increased signs of recovery across the industry. Investments in construction equipment were again up significantly in the second quarter on the back of a broad-scale reduction in the high levels of inventory held by the markets last year. In addition, the

mood among market players was also predominantly positive during "bauma 2010", the world's largest construction industry trade fair held in April in Munich.

In the US, recovery measures outlined in the national economic stimulus plan proved increasingly effective, particularly those aimed at improving infrastructure across the country. This resulted in increased investment activity among construction companies.

Economic growth in Asia remained strong. Major infrastructure, high-speed train, port and tunnel projects as well as residential construction provided impetus for the construction industry in China during the first six months of the year.

According to economic researchers at Euroconstruct, Europe's construction industry is gradually returning to normal levels. The second quarter saw a distinct rise in construction activity due to a backlog of projects delayed by weather conditions during Q1.

The German Engineering Federation (VDMA) reported that incoming orders for construction equipment during the first four months of 2010 were up by more than 50 percent on the same period last year. Germany saw a surprisingly sharp increase in orders for non-residential construction, a sector that was particularly hit by the general economic recession. The speed at which demand picked up was cause for some concern, however, as this resulted in longer delivery times.

Brighter prospects on agricultural markets

Although the agricultural sector was hit by the economic crisis significantly later than the construction industry, it also showed signs of recession last year. A rebound in this sector is tied to general trends in the global economy. Consequently, agricultural markets also showed signs of recovery in the second quarter of 2010. Due to low prices in the sector, improving the cost efficiency of agricultural holdings remained a key factor behind investment decisions during the first half of 2010.

Group business development

Upturn in demand for light and compact equipment

Although Q1 sales for 2010 were marked by a harsh winter in the US and Europe, demand for light and compact equipment picked up with the start of the construction season. The mood at the world's largest construction trade fair "bauma 2010" was also upbeat. The event was a resounding success for Wacker Neuson, with orders up by over 25 percent on figures for the last bauma in 2007, which was a boom year.

Significant rise in revenue and earnings during the first half-year

Revenue during the first half of fiscal 2010 was up by a total of 21.0 percent, to EUR 355.6 million (previous year: EUR 293.8 million). At EUR 205.3 million (previous year: EUR 156.5 million), Q2 revenue for 2010 was up 31.2 percent on the same period last year and 36.6 percent on the first quarter (EUR 150.3 million). This compensates for the firstquarter loss of EUR 5.7 million. With a net profit of EUR 5.2 million for the first half-year, the Group has returned to profit zone as predicted. The cost-cutting measures from previous years have therefore proven to be of lasting effect.

Following on from the low revenue recorded for the same period last year, new machine sales in the light equipment segment in particular were encouragingly positive, confirming the trend that has been emerging over the last twelve months. The continued upswing in the US was the key driving force here.

As anticipated, investments in compact equipment that had thus far been put on ice due to the economic crisis also picked up as customers started to replace existing equipment. At June 30, 2010, accumulated order intake for this segment was almost double the figure for the previous year, with order backlog up by around 350 percent in comparison to the previous year. This high figure, however, is also due to delivery bottlenecks on the part of some suppliers.

Increased demand for light and compact equipment resulted in higher utilization of all our manufacturing facilities. This enabled us to cancel short-time work measures by the end of April. We also hired new staff in some areas of the company.

Despite making more investments in the first half-year, the Group's net financial debt is low. Group finances and assets remain extremely strong, with liquidity at EUR 52.4 million and the equity ratio at 79.0 percent.

AGM and dividend resolution

During the AGM held in Munich on May 28, 2010, the Executive Board informed the 230 or so Wacker Neuson SE shareholders who attended the meeting of the developments in fiscal 2009 and provided information on the current situation. Based on a share capital of 70,140,000 shares, 87.2 percent of shareholders were present.

In light of the previous year's drop in earnings, the Executive Board and Supervisory Board proposed that no dividends be distributed for fiscal 2009 (previous year: EUR 0.19 per share) and that the balance sheet profit be carried forward. The AGM approved this proposal. Executive Board and Supervisory Board members' actions were approved for fiscal 2009. All incumbent shareholder representatives were re-elected to the Supervisory Board during the Supervisory Board elections. The incumbent employee representatives had already been re-appointed to the Supervisory Board by the Wacker Neuson SE works council. Hans Neunteufel was elected Chairman and Dr. Ulrich Wacker Deputy Chairman of the Supervisory Board at the subsequent constituent Supervisory Board meeting. There have therefore been no changes to the members of the Wacker Neuson SE Supervisory Board.

Alliance with Caterpillar

Wacker Neuson SE, Munich, and Caterpillar Inc., Peoria, USA, signed an alliance agreement on June 24, 2010. The long-term strategic collaboration has a term of 20 years. From 2011 onwards, Wacker Neuson will develop mini excavators with a total weight of up to three tons exclusively for Caterpillar and manufacture the machines at Wacker Neuson's Austrian production plant in Linz. These machines will then be distributed worldwide (with the exception of Japan) to meet demand from Caterpillar customers for equipment in this class. The Wacker Neuson Group expects this collaboration to significantly increase production volumes and cut manufacturing costs, bringing benefits to customers of both companies. Both partners expect that the alliance will enable them to consolidate their competitive positions in this highly fragmented market more quickly.

Wacker Neuson will produce exclusively Caterpillar branded mini hydraulic excavators with an operating weight of 0,8 to 3 tons. The agreement with a term of 20 years will bring benefits to customers of both companies.

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

Capital market communication and share trends

During the first half-year, the Executive Board again actively reported on company performance, including presentations at investor conferences in Munich, Frankfurt and London, and at national and international roadshows. In April, we invited analysts and investors to a Capital Market Day at our stand at "bauma 2010" in Munich.

During the first six months of the year, our share managed to outperform the upward SDAX trend. At the start of the year, the share was listed at EUR 8.49. By February 9, it had initially fallen to EUR 7.63, but went on to peak at EUR 11.18 on April 26. Over the first half of the year, our share price continued to develop positively, closing at EUR 9.72 on June 30. Since the close of the first half-year, the share has also climbed significantly to pass the 11-euro mark.

WACKER NEUSON MANITOU HAULOTTE PALFINGER DEUTZ WACKER NEUSON SDAX DAX

Share price trends

Profit, finances and assets

The figures include the effects of purchase price allocation (PPA). As of fiscal 2010, EBITDA is unaffected by PPA. Purchase price allocation results from the merger of the former Wacker Construction Equipment AG and Neuson Kramer Baumaschinen AG in fall 2007 and describes the process where purchase costs resulting from the acquisition are allocated to individually acquired assets, liabilities and contingent liabilities, which are measured at fair value.

Profit

Clear rise in revenue and earnings during the first half-year

Group revenue and earnings during the first half-year of fiscal 2010 were characterized by a rise in customer investments and increased sales of our product and services.

Sales Q2/H1 2010 and 2009

in € million

Q2/2010		205.3
Q2/2009		156.5
H1/2010		355.6
H1/2009		293.8

Group revenue was up 21.0 percent to EUR 355.6 million (previous year: EUR 293.8 million) during the first half-year. Adjusted to discount currency fluctuations, this corresponds to an increase of 17.7 percent. Demand continued to rise during the second quarter. Second quarter revenue increased to EUR 205.3 million, 36.6 percent up on Q1 (EUR 150.3 million) and 31.2 percent up on the same quarter last year (EUR 156.5 million).

Manufacturing costs rose to EUR 239.4 million (previous year: EUR 209.7 million). Increases in raw material prices, in particular for steel and steel components, only had a small impact on production costs since the company protects itself against price fluctuations by closing longer-term contracts with its suppliers.

Gross profit on revenue increased to EUR 116.2 million (previous year: EUR 84.1 million) in the first six months. The gross profit margin rose to 32.7 percent (previous year: 28.6 percent). The upturn in sales pushed the Q1 margin up to 34.4 percent in Q2. The high proportion of revenue generated by the light equipment segment plus higher revenue from the Group's rental business in Central and Eastern Europe contributed to this.

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 first half of 2009. In the past, the Group had not restricted R&D activities in order to maintain pace on forward-looking development projects. The first six months of the current fiscal year in particular are testament to the lasting impact of the company's long-term cost-cutting measures.

As a result, selling expenses totaled EUR 71.4 million, remaining at virtually the same level as the previous year (EUR 71.3 million) despite the increase in revenue. The same applies to R&D costs, which totaled EUR 10.6 million (previous year: EUR 10.7 million). General administrative costs remained almost unchanged at EUR 24.7 million in the first half-year (previous year: EUR 24.8 million). Expressed as a percentage of revenue, administrative costs fell to 6.9 percent (previous year: 8.5 percent).

Expressed as a percentage of revenue, selling expenses, R&D and administrative costs were down to 30.0 percent as a result of the increase in revenue (previous year: 36.4 percent).

Return to the profit zone

Profit before interest, tax, depreciation and amortization (EBITDA) rose significantly in the first six months of the year from EUR 1.1 million last year to EUR 30.7 million. The EBITDA margin increased to 8.6 percent (previous year: 0.4 percent). Depreciation and amortization amounted to EUR 19.5 million in the first half-year (previous year: EUR 20.5 million).

EBITDA

Q2/H1 2010 and 2009 in € million

Q2/2010	27.0
Q2/2009	13.4
H1/2010	30.7
H1/2009	1.1

At EUR 11.2 million (previous year: EUR -19.3 million), profit before interest and tax (EBIT) for the first six months was up on last year, buoyed by strong earnings during the second quarter of 2010. This pushed the EBIT margin up to 3.2 percent (previous year: -6.6 percent).

EBIT

Q2/H1 2010 and 2009 in € million

Q2/2010	17.2
Q2/2009	3.2
H1/2010	11.2
H1/2009	- 19.3

Exchange rate fluctuations only have minimal impact on profit due to natural currency hedging within the Group. During the first half of fiscal 2010, the average euro/dollar exchange rate was 1 euro to 1.32 dollars (previous year: EUR 1 to USD 1.34).

Profit before tax (EBT) rose to EUR 9.1 million (previous year: EUR -20.4 million). Tax expenditure amounted to EUR 3.7 million (previous year: tax revenue of EUR 5.3 million). The tax ratio rose from 25.8 percent to 40.6 percent.

At EUR 5.2 million, profit for the half-year was clearly above earnings for the same period last year (EUR -15.2 million). The high profit (after tax and minority interest) of EUR 10.9 million generated during the second quarter enabled the company to compensate for the Q1 loss (EUR -5.7 million) and return to the profit zone as planned. Based on a weighted average number of ordinary shares in circulation during the period of 70.14 million, earnings per share totaled EUR 0.07 (previous year: EUR -0.22).

Finances

Rising investments influence cash flow

Cash flow from operating activities reached EUR -2.4 million at the end of the first half-year (previous year: EUR 49.6 million). While the Group focused on actively reducing working capital to increase liquidity last year, investments to build up inventory plus the planned increase in receivables held resulted in negative operative cash flow at the end of this half-year. Cash flow from investment activities also reflected renewed investment projects, which we had drastically cut back in 2009 and partially deferred until 2010. During the first six months of the year, we invested a total of EUR 35.7 million in property, plant and equipment (previous year: EUR 18.2 million). This was channeled in part into construction of our new Research and Development Centre and company headquarters in Munich. It also included the expansion of our rental business in Central and Eastern Europe as well as the purchase of a plot of land in Hörsching (Austria) during the first quarter. Cash flow from investment activities came to EUR -40.1 million (previous year: EUR -18.5 million).

During the first six months of 2010, cash flow from financing activities totaled EUR 6.8 million (previous year: EUR -19.8 million). Last year's figure for the same period was influenced by the dividend payout of EUR 13.33 million. Free cash flow came to EUR -42.5 million (previous year: EUR 31.2 million).

Free cash flow

in € K	H1/2010	H1/2009
Cash flow from operating activities	- 2,372	49,632
Cash flow from investment activities	- 40,141	- 18,479
Change in consolidation structure	0	+ 162
Free cash flow	- 42,513	31,315

Comfortable liquid reserves

With liquid assets amounting to EUR 52.4 million at the closing date (December 31, 2009: EUR 85.0 million), the Group continues to demonstrate healthy levels of liquidity. We are able to meet existing liquidity needs through a combination of our own liquid assets and credit lines extended to Wacker Neuson by credit institutes. We continue to draw on less than half of all available credit lines.

Working capital up in line with positive revenue development

During the first half of 2010, working capital rose by 24.0 percent to EUR 270.2 million (December 31, 2009: EUR 217.9 million). Inventory increased to EUR 168.7 million (December 31 2009: EUR 148.3 million) due to higher production volumes and targeted inventory build-up to secure our ability to deliver products. This in turn drove trade payables up to EUR 44.3 million (December 31, 2009: EUR 21.3 million). Trade receivables were up to EUR 145.8 million (December 31, 2009: EUR 90.8 million). The rise in working capital reflects positive market dynamics fuelled by the economic recovery.

Assets

Assets in strong position with continued high equity ratio

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 1,038.6 million (December 31, 2009: EUR 971.7 million). Assets increased to EUR 625.3 million (December 31, 2009: EUR 597.8 million). Due to an increase in production levels, the value of finished products rose to EUR 109.8 million (December 31, 2009: EUR 107.1 million). The increase in working capital resulted in current assets growing to EUR 379.5 million (December 31, 2009: EUR 339.0 million).

Equity amounted to EUR 820.6 million (December 31, 2009: EUR 791.5 million). The equity ratio was 79.0 percent (December 31, 2009: 81.5 percent), and, in our 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 5.7 percent to EUR 94.4 million (December 31, 2009: EUR 89.3 million). Due to the increase in trade payables, total current liabilities increased to EUR 123.6 million (December 31, 2009: EUR 90.9 million).

At the close of the first half-year, net financial debt amounted to EUR 15.8 million (December 31, 2009: net cash position of EUR 24.9 million.

Net financial position

in € K	Jun. 30, 2010	Dec. 31, 2009
Non-current liabilities	- 38,575	- 33,583
Current borrowings from banks	- 16,948	- 14,889
Current portion of non-current
liabilities	- 12,630	- 11,698
Cash and cash equivalents	+ 52,398	+ 85,024
Total	- 15,755	+ 24,854

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.

Our 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).

We are happy to report that the Group increased revenue across all regions and business segments during the first half of 2010 – in most cases, with double-digit percentage growth. The compact equipment segment, which discloses accumulated order intake relative to the prior year, reports a significant improvement in this area for the current year.

Results for Europe, the Americas and Asia

Sales up in Europe

As predicted, Europe continued to account for the majority of Group turnover, with 72.4 percent of total revenue (previous year: 78.4 percent). At the close of the first six months of fiscal 2010, the region's revenue rose 11.9 percent to EUR 257.6 million (previous year: EUR 230.3 million). Profit before interest and tax (EBIT) increased from EUR -13.0 million for the same period last year to EUR 5.4 million.

Europe H1 2010 and 2009 in € million

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

Significant growth in the Americas

Revenue in the Americas was up 63.3 percent on the previous year, to EUR 82.9 million (previous year: EUR 50.7 million). Profit before interest and tax (EBIT) rose from EUR -6.6 million to EUR 8.4 million. This region increased its share of total revenue from 17.3 percent to 23.3 percent. Discounting exchange rate fluctuations, revenue in the region was up by 54.0 percent.

Americas H1 2010 and 2009

in € million

The first half of 2010 thus confirms that the positive trend we first reported in mid-2009 has continued and is gaining momentum. Over the two previous years, business in the US had been shaped by negative market conditions and a sharp decline in investment in residential, non-residential and underground construction. In local currency (US dollars), revenue generated by our affiliate Wacker Neuson Corporation was also up around 56 percent on the previous year's level. Business in Canada, Mexico and South America also profited from the upbeat market.

Clear revenue growth also in Asia

In the Asia region, revenue during the first half of 2010 rose 18.2 percent relative to the same period last year, up from EUR 12.8 million to EUR 15.1 million. Profit before interest and tax (EBIT) totaled EUR -0.2 million (previous year: EUR 0.4 million). This was due to increased air transport costs for our production plant in Manila caused by delivery bottlenecks among our suppliers. The region's share of revenue remained constant at 4.3 percent.

Asia

H1 2010 and 2009

in € million

Overall, the construction industry showed signs of recovery in the Asia region, especially in Australia and New Zealand. Our 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.

Results for the light equipment, compact equipment and services segments

Sales by business segment

in € K	H1/ 2010	H1/ 2009
Segment revenue from external customers
Light Equipment	145,775	104,156
Compact Equipment	125,263	107,984
Services	87,206	84,290
	358,244	296,430
Less cash discounts	- 2,640	- 2,630
Total	355,604	293,800

Upward trend continues for light equipment

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 40.0 percent to EUR 145.8 million during the first six months of fiscal 2010 (previous year: EUR 104.2 million). This was particularly fuelled by the anticipated increase in construction activity as project backlogs started to clear. This confirms our expectation of an early recov-

In April during the trade fair "bauma" a wide range of new innovative and powerful machines was launched under the Wacker Neuson and Kramer Allrad brands.

ery for this segment, which had been affected by the crisis since fall 2007 following the initial downturn in the US. Global demand for light equipment has risen considerably over the last year. This segment's share of total revenue was 40.7 percent (previous year: 35.1 percent).

The first half of the year saw a wide range of new machines from this segment being launched, some during the trade fair "bauma 2010". New products included the DPU 130, the strongest vibratory plate on the market, a new range of small premium vibratory plates, maintenance-free electric breakers with impressive percussion power and powerful new pumps.

Revenue growth and strong order intake for compact equipment segment

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 six months of 2010, sales before discounts in this segment rose from EUR 108.0 million to EUR 125.3 million. This represents an increase of 16.0 percent. Although this rise followed on from a very low baseline, it nevertheless confirmed that demand for our products is experiencing an upward trend. This segment's share in total revenue was 35.0 percent (previous year: 36.4 percent).

Accumulated order intake for the construction and agricultural sectors also followed a very positive growth path. Figures for the first six months of 2010 were almost double those for the previous year. In our view, this was primarily fuelled by increased demand from our customers and was only partly due to a build-up of stock. At the end of June 2010, the order backlog was around 350 percent up on the same closing date in 2009. One major factor behind this rise, however, was the situation with some of our suppliers, who, as we had anticipated, had difficulties meeting deliveries as the market recovered. As a result, parts such as steering columns or hydraulic components for wheel loader production were delivered late, which led to delays in deliveries of our products. This situation, which affected the entire industry, improved somewhat toward the end of the second quarter, and we therefore expect a significant rise in revenue and earnings for this segment in the coming two quarters.

We continued to implement measures aimed at launching compact equipment via the global sales and service network, and have made particular strong headway in South America, Canada, South Africa and Switzerland.

Increased pressure on prices was still noticeable in the compact equipment segment during the first half-year. We also successfully implemented special financing options for customers.

During the first six months of the year, we launched new compact equipment providing added value for customers. Products here included a range of five remodeled compact wheel loaders under the Kramer Allrad brand, a tele wheel loader, two compact telehandlers and a compact 14504 track excavator from Wacker Neuson – the most powerful machine to date in the weight class up to 14 tons. We also launched numerous mini excavator models with our own innovative features such as Vertical Digging System (VDS) and Easy Lock. In addition, Wacker Neuson overhauled its cab concept for compact equipment.

Following a relatively late drop in investment in the second half of 2009, demand for agricultural machinery picked up again. The order situation here is comparable to the healthy order book in the construction industry. The Weidemann brand produces well-designed, innovative machines for the agricultural sector that are primarily used for work on agricultural holdings.

Upturn in repair and spare parts business in the services segment

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 half-year, we were again able to increase sales before discounts here. Revenue was up 3.5 percent in the period under review, to EUR 87.2 million (previous year: EUR 84.3 million). This segment's share in total revenue was thus 24.3 percent (previous year: 28.4 percent).

Sales before discounts in the after-market business field (which covers the traditional repair and spare parts business) were up 4.6 percent to EUR 61.3 million (previous year: EUR 58.6 million). We increased spare parts prices by three percent on April 1, 2010.

Our rental business in Central and Eastern Europe initially suffered from unfavorable weather conditions in Europe at the start of the year, but went on to recover with the start of the construction season in the second quarter. At EUR 25.9 million, revenue from the rental business in Central and Eastern Europe thus remained almost level with the previous year's figure of EUR 25.7 million.

Other factors that impacted on results

Rise in demand leads to improved utilization of production capacity

The rise in demand for our products resulted in higher output at our manufacturing facilities. The Group was able to utilize flexitime options and reduce short-time work in order to ramp up production. Wacker Neuson ended shorttime work at the end of April as planned. Products in the light equipment business segment were largely delivered promptly. The delivery timeframe for compact equipment is currently around four months. This is due to the order situation described previously.

Headcount virtually unchanged

At June 30, 2010, Group headcount totaled 3,076 (same period last year: 3,232; 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. The drop in headcount in comparison to the same period last year is due to the measures implemented in 2009 to reduce manpower capacity. At the beginning of the year, we also started hiring new staff for dedicated tasks within the company – in the US for example.

Price of raw materials rises

The price of raw materials, especially steel, increased. However, longer-term contracts minimize major effects on manufacturing costs. Manufacturing costs for compact excavators are up on the previous year due to euro/yen exchange rate fluctuations influencing the price for diesel engines and hydraulic components.

Research and development costs unchanged

Research and development expenses in the first quarter remained stable at EUR 10.6 million (previous year: EUR 10.7 million). The research and development ratio was at 3.0 percent (previous year: 3.7 percent). In April, the Group presented numerous innovative products at the world's largest construction industry trade fair, "bauma 2010" in Munich, thus proving the clear benefits of maintaining research and development activities during the economic downturn.

Wacker Neuson at "bauma 2010"

"bauma 2010" was a great success for the Wacker Neuson Group. This was the first time that the Group displayed its wide range of high-quality light and compact equipment under the Wacker Neuson and Kramer Allrad brands. Over an approximately 5,800 m² site, various exhibits, presentations and practical demos showed customers the benefits of our product portfolio, which has expanded substantially since the 2007 merger. Customer feedback was extremely upbeat, with direct sales staff closing over 25 percent more deals at the trade fair than at "bauma 2007". This figure does not include results from dealers. Costs for the trade fair, which is held every three years, totaled around EUR 2.0 million.

Changes to the opportunity and risk situation

In the first six 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 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 June 30, 2010, that deviate from the 2009 consolidated financial statements and the Q1 report 2010.

From the company's perspective, there is an increased risk of delayed deliveries or financial problems on the part of suppliers. Deliveries may be delayed, for example, if suppliers who have made drastic changes during the recession, such as staff rationalization, can no longer meet orders in the event of swift economic recovery. This may affect our ability to deliver products on time. Supply bottlenecks may also result in increased prices. Wacker Neuson counters this risk by maintaining close ties with our partners and by concluding specific standard and umbrella agreements, and developing innovative cooperation strategies.

We are not currently aware of any other significant risks to the Wacker Neuson Group. We also have not identified any single 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

Dr. Georg Sick, CEO and President of Wacker Neuson SE, informed the Supervisory Board on July 30 that he will not be seeking to renew his contract, which expired on July 31 of this year. At the request of the Supervisory Board, Dr. Sick has agreed to continue as CEO until the end of the calendar year. The company is looking for an external successor.

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

Outlook

Ongoing recovery of global economy

Experts agree that the global economic recovery is set to continue. However, certain players are debating whether the current pace and reach of the upturn will be sustained or whether developments will pan out at a more moderate level.

Economic institutions expect recovery in the US to maintain pace this year but to develop along more moderate lines as the economic stimulus packages are phased out moving into next year and beyond.

Prospects for ongoing economic recovery over the current fiscal year are good across the EU. Experts predict GDP for Western and Eastern Europe to improve slightly. Recovery is also forecast for countries affected by the debt crisis, many of which had to implement drastic consolidation measures. However, the pace of development here, may differ from other EU countries. The general economic trend in Germany continues upward. The euro seems to have overcome its weaknesses, the banking sector has stabilized and exports are on the rise. The economic climate has improved, industrial production is up and order intake has increased significantly in recent months.

Positive outlook for the 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. This trend was also visible at "bauma 2010", the world's largest construction machine trade fair, which was held in Munich in April of this year.

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 stronger growth rates for 2012.

Experts predict that the construction industry in Asia, and China in particular, will continue to grow throughout the second half-year.

Euroconstruct recently slightly adjusted its overall forecasts for the European construction industry for 2010 downwards, in light of dampened prospects for Ireland, Spain and the Czech Republic. The market research experts forecast that the construction sector in Germany and Great Britain will experience the most improvement 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).

According to the German Engineering Federation (VDMA), construction machine manufacturers will see revenue rise this year by five percent.

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 drives medium-term demand for agricultural machinery worldwide.

Positive business development expected to continue

The Wacker Neuson Group currently expects the upturn in construction industry and agricultural markets to continue.

The high order backlog for compact equipment is set to return to normal levels by the end of the current fiscal year as supplier bottlenecks continue to ease. There are already some signs of this. Delivery of compact equipment will thus have a positive impact on revenue and earnings over the next two quarters, raising this segment's share in total revenue.

Continued high demand for light equipment in Europe, the US and Asia, plus the seasonal increase in rental business for the Wacker Neuson Group in Central and Eastern Europe are further factors that make us optimistic about development during fiscal 2010.

We predict that the current upturn in business in the US will continue – albeit slightly less dynamically than before. However, we do not expect larger rental companies to make major investments until the first half of 2011. We therefore intend to continue implementing measures for launching compact equipment in the US market and establishing a network of exclusive Wacker Neuson dealers. We are currently expanding this concept to South America and the Middle East.

We intend to flexibly adjust manpower capacity to meet the rise in orders and therefore increase HR capacity slightly.

Higher forecasts for 2010

The upturn in the overall economic situation has led us to revise our previous prognosis of an increase in revenue of at least 5 percent compared with last year and a return to the profit zone at operative level. We now expect revenue for fiscal 2010 to be over ten percent up on the figure for last year. We expect profit before interest, tax, depreciation and amortization (EBITDA) to improve and correspond to at least 9 percent of revenue.

Despite the recent crisis, the Wacker Neuson Group is in a strong financial position, with liquid assets totaling EUR 52.4 million, low net debt and an equity ratio of 79.0 percent. We intend to finance planned investments from current cash flow. The Group plans to invest around EUR 70.0 million throughout the course of fiscal 2010.

Under the umbrella of our Farm Mobility concept, we have been distributing compact equipment for the agricultural sector under the Weidemann brand since mid 2010. This move has opened up new opportunities for the Group. During the second half of the year, the former Weidemann production plant in Gotha is set to become a European used equipment center and a repairs hub for all Group-brand products.

This year will see us developing numerous mini excavator models for our alliance partner, Caterpillar Inc. We expect this 20-year alliance agreement to make an initial contribution to revenue during the first half of 2011. However, we do not expect to see the full impact on revenue and economies of scale until 2012. The alliance has accelerated investment in a new production facility in Hörsching, near Linz (Austria).

We will continue to expand our product offering to capitalize on developments in emerging markets such as South America, India and China.

Acquisitions and partnerships will continue to be part of our medium-term strategy insofar as these strengthen our product offering and provide added value to our customers or enhance our international footprint.

Prospects for the Wacker Neuson Group in the current fiscal year and beyond are positive and we are confident that we can fully utilize the opportunities in our markets.

Munich, August 9, 2010 Wacker Neuson SE

The Executive Board

Dr.-Ing. Georg Sick (CEO and President)

Martin Lehner (Deputy CEO)

Richard Mayer

Günther C. Binder

Werner Schwind

Income Statement

April 1 through June 30 and January 1 through June 30

	Apr. 1–	Apr. 1–	Jan. 1–	Jan. 1–
in € K	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Revenue	205,287	156,522	355,604	293,800
Cost of sales	- 134,696	- 104,149	- 239,430	- 209,662
Gross profit	70,591	52,373	116,174	84,138
Sales and service expenses	- 37,293	- 33,871	- 71,380	- 71,335
Research and development expenses	- 5,486	- 4,762	- 10,647	- 10,727
General administrative expenses	- 11,592	- 11,496	- 24,667	- 24,833
Other income	1,847	2,296	3,748	6,848
Other expenses	- 913	- 1,306	- 1,998	- 3,408
Profit before interest and tax (EBIT)	17,154	3,234	11,230	- 19,317
Financial result	- 1,313	- 642	- 2,086	- 1,064
Profit before tax (EBT)	15,841	2,592	9,144	- 20,381
Taxes on income	- 4,744	- 1,156	- 3,716	5,252
Profit before minority interests	11,097	1,436	5,428	- 15,129
Minority interests	- 167	- 18	- 221	- 64
Profit for the period	10,930	1,418	5,207	- 15,193
Earnings per share in EUR	0.16	0.02	0.07	- 0.22

Total profit/loss for the period

April 1 through June 30 and January 1 through June 30

in € K	Apr. 1– Jun. 30, 2010	Apr. 1– Jun. 30, 2009	Jan. 1– Jun. 30, 2010	Jan. 1– Jun. 30, 2009
Profit/loss for the quarter	11,097	1,436	5,428	- 15,129
Items not recognized in profit/ loss for the period:
Exchange differences	14,366	- 2,263	23,727	3,214
Securing cash flows:
Losses incurred in the current period	115	- 899	- 109	- 1,901
Tax effects from items in total profit/ loss for the period	- 15	274	57	594
Items not recognized in profit/ loss after tax for the period	14,466	- 2,888	23,675	1,907
Total profit/loss after tax for the period	25,563	- 1,452	29,103	- 13,222
Of which are attributable to:
- Shareholders in the parent company	25,396	- 1,470	28,882	- 13,286
- Minority interests	167	18	221	64
Total profit/loss after tax for the period	25,563	- 1,452	29,103	- 13,222

Balance Sheet

As at June 30

in € K	Jun. 30, 2010	Dec. 31, 2009
Assets
Property, plant and equipment	291,872	267,408
Investment property	2,495	2,618
Goodwill	237,243	236,016
Intangible assets	90,147	87,624
Other investments	3,537	4,144
Deferred taxes	15,375	13,344
Other non-current assets	18,416	21,542
Total non-current assets	659,085	632,696
Inventories	168,715	148,301
Trade receivables	145,775	90,837
Current tax receivables	1,312	6,165
Other current assets	11,289	8,715
Cash and cash equivalents	52,398	85,024
Total current assets	379,489	339,042
Total assets	1,038,574	971,738

Equity and liabilities
Subscribed capital	70,140	70,140
Other reserves	609,583	585,908
Retained earnings	138,208	133,001
Equity before minority interests	817,931	789,049
Minority interests	2,694	2,473
Total equity	820,625	791,522
Long-term borrowings	38,575	33,583
Deferred taxes	25,400	25,530
Long-term provisions	30,410	30,167
Total non-current liabilities	94,385	89,280
Trade payables	44,265	21,251
Short-term borrowings from banks	16,948	14,889
Current portion of long-term borrowings	12,630	11,698
Short-term provisions	9,974	13,583
Current tax payable	1,845	413
Other current liabilities	37,902	29,102
Total current liabilities	123,564	90,936
Total liabilities	1,038,574	971,738

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, 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
Dividend	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
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	23,727	- 52	5,207	28,882	221	29,103
Dividend	0	0	0	0	0	0	0	0
Balance at June 30, 2010	70,140	618,661	- 8,768	- 310	138,208	817,931	2,694	820,625

Cash Flow Statement

January 1 through June 30

	Jan. 1 –	Jan. 1 –
in € K	Jun. 30, 2010	Jun. 30, 2009
EBT	9,144	- 20,381
Depreciation and amortization	19,478	20,451
Foreign exchange result	10,554	1,967
Gains/losses from sale of intangible assets and property, plant and equipment	236	- 58
Book value from the disposal of rental equipment	2,462	2,897
Gains/losses from derivates (cash flow hedging)	- 52	- 1,307
Financial result	2,086	1,064
Changes in inventories	- 20,414	27,792
Changes in trade receivables and other assets	- 53,243	19,957
Changes in provisions	- 3,366	1,365
Changes in trade payables and other liabilities	31,683	- 6,181
Interest paid	- 2,307	- 2,599
Income tax received	572	3,110
Interest received	795	1,555
Cash flow from operating activities	- 2,372	49,632
Purchase of property, plant and equipment	- 35,723	- 18,184
Purchase of intangible assets	- 4,962	- 3,198
Proceeds from the sale of property, plant and equipment and intangible assets	544	1,171
Proceeds received on the sales of marketable securities	0	1,894
Change in consolidation structure	0	- 162
Cash flow from investing activities	- 40,141	- 18,479
Dividends	0	- 13,327
Proceeds/income from short-term borrowings	1,847	- 3,724
Proceeds/repayments of long-term borrowings	4,992	- 2,700
Cash flow from financing activities	6,839	- 19,751
Increase/decrease in cash and cash equivalents	- 35,674	11,402
Effect of exchange rates on cash and cash equivalents	3,048	896
Change in cash and cash equivalents	- 32,626	12,298
Cash and cash equivalents at beginning of period	85,024	37,339
Cash and cash equivalents at end of period	52,398	49,637

Segmentation

January 1 through June 30

Segmentation (geographical segments)

in € K	Europe	Americas	Asia	Consolidation	Group
H1 2010
Segment revenue
Total external sales	362,999	122,923	21,149
Less intrasegment sales	- 85,737	- 20,909	- 875
	277,262	102,014	20,274
Intersegment sales	- 19,674	- 19,131	- 5,141
Total	257,588	82,883	15,133	0	355,604
EBIT	5,368	8,364	- 246	- 2,256	11,230
EBITDA	22,250	10,663	69	- 2,274	30,708
Net financial debt	- 1,516	21,042	- 1,701	- 2,070	15,755
Working capital	176,845	91,427	14,512	- 12,559	270,225
H1 2009
Segment revenue
Total external sales	319,270	75,485	15,684
Less intrasegment sales	- 76,408	- 10,835	- 554
	242,862	64,650	15,130
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	199,759	69,274	14,289	- 11,872	271,450

Sales by business segment

	Jan. 1 –	Jan. 1 –
in € K	Jun. 30, 2010	Jun. 30, 2009
Segment revenue from external customers
Light Equipment	145,775	104,156
Compact Equipment	125,263	107,984
Services	87,206	84,290
	358,244	296,430
Less cash discounts	- 2,640	- 2,630
Total	355,604	293,800

Selected explanatory notes to the interim financial statements for the first half year 2010

Accounting Rules

The Wacker Neuson SE consolidated interim financial statements to June 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.

Legal changes to company structure

The Finnish affiliate Wacker Neuson Oy in Kerava is set to close in fiscal 2010.

The New Zealand affiliate Wacker Neuson Ltd. in Auckland is also set to close during the course of fiscal 2010.

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

Seasonal fluctuations

The annual analysis of the distribution of consolidated revenue 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 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
Q2
Quarterly earnings attributable to shareholders in € K	10,930	1,418
Weighted average number of ordinary shares in circulation during the period in thousands	70,140	70,140
Earnings per share in EUR	0.16	0.02
H1
Quarterly earnings attributable to shareholders in € K	5,207	- 15,193
Weighted average number of ordinary shares in circulation during the period in thousands	70,140	70,140
Earnings per share in EUR	0.07	- 0.22

Important events and events since the interim statements reporting date

At the AGM of Wacker Neuson SE in Munich on May 28, 2010, shareholders resolved not to pay out dividends for 2009. Executive and Supervisory Board members' actions were approved for fiscal 2009. The incumbent shareholder representatives were reelected to the Supervisory Board. The incumbent employee representatives had already been reappointed to the Supervisory Board prior to the AGM.

In June 2010, Wacker Neuson SE and Caterpillar Inc., Peoria, USA, agreed to enter a strategic alliance. This alliance covers the development, manufacture, distribution and maintenance of mini excavators with a total weight of up to 3 tons. The aim of the cooperation is that the two parties form a long-term strategic alliance. Wacker Neuson plans to begin producing mini excavators for Caterpillar from mid-2011.

The differences of opinion within the Supervisory Board have now been permanently settled by mutual consent. Mr. Neunteufel remains Chairman of the Supervisory Board of the company.

Legal and consulting costs relating to this matter amounted to EUR 1.6 million (December 31, 2010: EUR 0.2 million).

Dr. Georg Sick, CEO and President of Wacker Neuson SE, informed the Supervisory Board on July 30 that he will not be seeking to renew his contract, which expired on July 31 of this year. At the request of the Supervisory Board, Dr. Sick has agreed to continue as CEO until the end of the calendar year. The company is looking for an external successor. 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.

Responsibility statement by the management

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 9, 2010

The Executive Board

Dr.-Ing. Georg Sick (CEO and President)

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, 2010 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 9, 2010

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, 2010	PPA	Jan.1–Jun. 30, 2010
Wacker Neuson	without PPA1		with PPA1
Revenue	355,604		355,604
Cost of sales	- 239,423	-7	- 239,430
Gross profit	116,181	-7	116,174
Sales and service expenses	- 71,380		- 71,380
Research and development expenses	- 9,067	- 1,580	- 10,647
General administrative expenses	- 24,499	- 168	- 24,667
Other income	3,748		3,748
Other expenses	- 1,998		- 1,998
Profit before interest and tax (EBIT)	12,985	- 1,755	11,230
Financial result	- 1,930	-156	- 2,086
Profit before tax (EBT)	11,055	- 1,911	9,144
Taxes on income	- 4,222	506	- 3,716
Profit before discontinued operations, minority interests	6,833	- 1,405	5,428
Result from discontinued operations	0		0
Minority interests	- 248	27	- 221
Profit for the period	6,585	- 1,378	5,207
Profit before interest and tax (EBIT)	12,985	- 1,755	11,230
Depreciation and amortization	17,723	1,755	19,478
EBITDA	30,708	0	30,708

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

Ressort Investor Relations

Concept & Design: Kirchhoff Consult AG, Hamburg

Content: Wacker Neuson SE

Financial Calendar 2010

August 24	Roadshow London
August 30	Roadshow Frankfurt
August 31	Roadshow Collogne, Dusseldorf
September 21	German Investment Conference, Munich
November 12	Publication of nine-month 2010
November 23	Eigenkapitalforum Deutsche Börse AG, Frankfurt

Disclaimer

This 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 forwardlooking statements.

All rights reserved. Valid August 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