Wacker Neuson SE — Interim / Quarterly Report 2013

Nov 21, 2013

Q3/2013 Nine-month report

Figures at a Glance

July 1 through September 30 and January 1 through September 30

	July 1–Sep. 30,	July 1–Sep. 30,		Jan. 1–Sep. 30,	Jan. 1–Sep. 30,
in € million	2013	2012	Change	2013	2012	Change
Key figures
Revenue	276.3	254.5	+8.6%	862.4	812.6	+6.1%
by region
Europe	202.0	179.1	+12.8%	618.3	577.6	+7.0%
Americas	66.3	64.2	+3.3%	217.5	205.4	+5.9%
Asia-Pacific	8.0	11.1	-27.9%	26.5	29.6	-10.5%
by business segment 1
Light equipment	94.4	96.7	-2.4%	308.7	306.2	+0.8%
Compact equipment	115.4	95.1	+21.3%	377.7	344.8	+9.5%
Services	70.7	66.2	+6.8%	187.3	173.0	+8.3%
EBITDA	41.2	34.1	+20.8%	110.9	110.3	+0.5%
Depreciation and amortization	14.7	14.0	+5.0%	44.1	41.0	+7.6%
EBIT	26.5	20.1	+31.8%	66.9	69.3	-3.5%
EBT	24.6	18.2	+35.2%	61.4	63.9	-3.9%
Profit for the period	16.9	13.5	+25.2%	41.8	44.5	-6.1%
Number of employees	4,180	4,023	+3.9%	4,180	4,023	+3.9%
Share
Earnings per share in €	0.24	0.19	+26.3%	0.60	0.63	-4.8%
Key profit figures
Gross profit in %	31.4	32.3	-0.9 PP	30.3	30.9	-0.6 PP
EBITDA margin as a %	14.9	13.4	1.5 PP	12.9	13.6	-0.7 PP
EBIT margin as a %	9.6	7.9	1.7 PP	7.8	8.5	-0.7 PP
Key figures from the balance sheet			Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Change Dec. 31, 2012
Non-current assets			800.0	790.2	783.1	+1.2%
Current assets			566.2	554.6	550.3	+2.1%
Equity before minority interests			923.8	914.7	913.0	+1.0%
Net financial debt			214.1	214.2	194.9	-0.0%
Liabilities			438.6	426.6	417.1	+2.8%
Equity ratio before minority
interests as a %			67.6	68.0	68.5	-0.4 PP
Working capital			466.5	456.8	440.4	+2.1%
Cash flow	July 1–Sep. 30, 2013	July 1–Sep. 30, 2012	Change	Jan. 1–Sep. 30, 2013	Jan. 1–Sep. 30, 2012	Change
Cash flow from operating
activities	55.8	21.5	+159.5%	87.4	12.7	588.2%
Cash flow from investing
activities	-16.1	-20.6	-21.8%	-65.7	-79.7	-17.6%
Capital expenditure (property,
plant and equipment and
intangible assets) Cash flow from financing	-16.2	-20.9	-22.5%	-67.6	-83.6	-19.1%
activities	-38.8	5.3	-	-24.4	69.1	-
Free cash flow	39.7	1.0	+>100.0%	21.7	-66.9	-

1 Consolidated sales before discounts.

Latest Developments from the First Nine Months of 2013

At a glance

After experiencing a slow start to 2013 due to poor weather conditions, Wacker Neuson posted high revenue figures through the second and third quarters to report the strongest nine-month period in company history.

9M 2013 compared with 9M 2012

• Revenue in the first nine months of 2013 rose 6 percent to EUR 812.6 million.
• The rise in revenue was fueled by increasing demand across all Group business segments (light equipment +1 percent; compact equipment +10 percent; services +8 percent), as well as strong performance in Europe (+7 percent) and the Americas (+6 percent).
• A slow start to the year had an impact on profit for the first nine months of 2013: EBIT fell 4 percent to EUR 67 million (EBIT margin: 7.8 percent). EBITDA, on the other hand, rose 1 percent to EUR 111 million (EBITDA margin: 12.9 percent).

Forecast

Wacker Neuson has confirmed its forecast for 2013 as a whole. The Group thus expects revenue to increase to around EUR 1.2 billion (2012: approx. EUR 1.1 billion), and the EBITDA margin to exceed 13 percent (2012: 13.0 percent). As line with its strategy, Wacker Neuson plans to increase penetration of its core markets and continue as planned with its expansion measures.

• | 02 Letter from the CEO
• | 04 Group Management Report
• | 19 Interim Financial Statements Consolidated Income Statement Consolidated Total Profit/Loss Consolidated Balance Sheet Consolidated Statement of Changes in Equity Consolidated Cash Flow Statement Consolidated Segmentation
• | 25 Selected Explanatory Notes to the Interim Financial Statements
  • | 28 Financial Calendar/IR Contact

Cem Peksaglam CEO

Dear Ladies and Gentlemen, Dear Shareholders,

2013 is slowly drawing to a close. Our core markets of Europe and North America continue to face economic difficulties and uncertainties, although these pressures are diminishing. Countries in the euro zone are increasingly regaining control over the financial crisis and its impacts, and the recession in countries like Spain seems to have bottomed out. Since the onset of the crisis, our markets have displayed previously unknown levels of volatility. The mining industry is a case in point here. As recently as last year, the sector was reporting record revenue levels but in 2013, the industry slumped into a major crisis.

At Wacker Neuson, we have also seen a slowdown in growth over 2013 as compared to previous years. However, when viewed against negative market trends overall and our competitive situation, we can still be satisfied with a 6-percent rise in revenue to reach EUR 862 million for the first nine months of 2013. Although this figure is below our expectations, it is still the highest 9-month revenue generated by the company since the merger of Wacker and Neuson. We were able to expand our market share, and in many cases in markets that were actually contracting.

2013 began with a slow start due to harsh weather conditions and economic difficulties. After a weak first quarter, however, we reported strong growth in Q2 and a 5-percent revenue growth for the first half of the year. We also made good progress in the third quarter and saw our revenue increase by 9 percent from the previous year. This meant that revenue for the first nine months of the year was 6 percent higher than the prior-year period. In 2013, we felt the effects of currency fluctuations quite intensely. When adjusted to discount currency fluctuations, growth in the first nine months of the year amounted to 8 percent.

Our weak first quarter along with a number of one-off effects still impacted profit for the first nine months of the year. Earnings are only slightly higher than in the previous year. Profit before interest, tax, appreciation and depreciation (EBITDA) increased by just 1 percent to EUR 111 million. At 12.9 percent, the EBITDA margin was slightly below the previous year's figure of 13.6 percent.

Thanks to our continued efforts to control costs, we were able to significantly increase profit in the third quarter. EBITDA rose 21 percent from the previous year to EUR 41 million, which resulted in an EBITDA margin of 14.9 percent - a clear increase on last year's 13.4 percent.

All business segments and market regions, with the exception of Asia-Pacific, contributed to our performance in the first nine months of the year. Growth was strongest in our core market Europe, which reported a rise of 7 percent and accounted for almost 72 percent of Group revenue. The Americas region saw revenue rise by 6 percent, which was below our expectations. Expressed in local currencies, however, growth in this region amounted to 9 percent. Falling demand in China and reticence among key customers in Australia and New Zealand decreased revenue in Asia-Pacific by almost 10 percent (4 percent when adjusted to discount currency fluctuations). However, the region remains a key growth market for our business.

On the product side, our compact equipment segment proved a key growth driver, underscoring the success of our strategy to expand the segment's international footprint. Revenue from the compact equipment segment rose by 10 percent in the first nine months of 2013 and by an impressive 21 percent in the third quarter. The increase in new machine sales is also driving growth in the services segment, which expanded by 8 percent in the first nine months of the year. Weak demand in Asia-Pacific had a particularly strong impact on the light equipment business. Major currency fluctuations also dampened growth in this segment. At the close of September, revenue generated by light equipment grew by just 1 percent worldwide, which corresponds to 4 percent when adjusted to discount currency fluctuations.

In 2013, we continued to set the course for future growth, launching a wide range of new products in all areas. Despite the increase in the volume of business, we were able to keep research and development costs at 2.4 percent of revenue for the year. We have established a stronger presence in emerging key markets and this gives us confidence as we move forward. China, India, Mexico, Turkey and Russia will all be investing billions in infrastructure over the coming years. And we aim to benefit from this growth. Our strategy of international expansion will therefore play a key role here.

Our investments for this year will amount to around EUR 80 million. This is less than the EUR 104 million we invested last year and less than the annual average over the past three years, where we invested EUR 303 million in total. This reduction has resulted in a positive free cash flow of EUR 22 million for the nine-month reporting period. Net financial debt has decreased since the 6-month reporting period.

Current positive business trends are expected to continue over the coming weeks. Following the negative effects of currency fluctuations on revenue in the third quarter, it is not possible to predict these effects on fourth quarter revenue at this point. We still expect to achieve our total forecast revenue for the year of around EUR 1.2 billion (previous year: EUR 1,092 million). We anticipate that the EBITDA margin will slightly exceed the previous year's figure of 13 percent.

We are optimistic about the future because we know we can build on our strengths. For me, the most important factor is our highly qualified and extremely motivated employees. The commitment to performance and quality shown by every individual in the company makes us who we are.

Our progress in 2013 confirms that Wacker Neuson is firmly on the road to an even better future.

Best regards,

Cem Peksaglam CEO Wacker Neuson SE

Group Management Report

Economic and business trends

Global economy growing – albeit at a slower pace In 2013, global economic growth was slower than anticipated. In October of this year, the International Monetary Fund (IMF) lowered its forecasts for 2013 and 2014. It now expects global GDP for 2013 to increase by just 2.9 percent, whereas in April it had forecast a rise of 4.0 percent. In contrast, the seventeen countries in the euro zone seem to be increasingly regaining control over the financial crisis. Here, economic output dropped by just 0.4 percent rather than the 0.6 percent that had been forecast.

During the third quarter of 2013, economic growth in emerging markets was a major cause for concern, especially the slowdown in the Chinese economy. Emerging economies only achieved an average growth of around 4 percent (previous year: +7 percent). Demand for industrial goods was particularly hard hit, revealing sharp drops at times. These developments come on the back of strong growth in the previous three years, which resulted in individual markets becoming oversaturated.

According to the Spanish government, the recession bottomed out during the third quarter of 2013. However, the Spanish economy continues to stagnate.

In contrast, the German economy continued to receive important growth impetus from the industrial and construction sectors – above all from the rising share of exports. However, German companies still see mounting energy and raw materials prices as a threat to economic growth.

Governments in developed countries are still having problems balancing their budgets. Attempts to reduce budget deficits remain hampered by weak and in some cases recessionary economic developments in certain European countries. The private sector in the US and in many countries across Europe continues to adapt debt

levels to the sustained drop in income expectations as a result of the crisis. This continues to dampen economic performance. For weeks now, the budget dispute in the US has hampered global economic growth forecasts and caused renewed uncertainty across financial markets. The US dollar fell significantly against the euro as a result.

Developed economies continue to adopt clearly expansionary monetary policies. Central banks have announced that they will keep interest rates at their current low levels and continue with quantitative easing1 until the economy shows visible signs of recovery. There are no signs the US will be changing its low interest rate policy in the near future especially in light of the new nomination for the position of chairman of the Federal Reserve Bank.

Trends in construction and agricultural markets

Regional differences – reduced insecurity

Regional differences in economic growth rates called on manufacturers of construction and agricultural equipment to display a high degree of flexibility. Dealers trimmed stock to reduce capital tied up in inventory. Investment in new machines was sluggish and selective. Manufacturers had to ensure rapid delivery capabilities to benefit from new machine sales made by dealers.

Overall, the European construction industry is still shrinking. This is primarily due to the drop in construction activity in Italy, Portugal, Poland, France and the Netherlands in 2013. Construction activity also fell markedly in the Middle East. In contrast, Hungary, Romania, Spain and Sweden saw a rise in construction activity in Q3 of 2013 relative to the previous year. Residential construction is also growing in the UK.

¹ Central banks that have already significantly reduced their prime rates can purchase bonds to boost economic activity.

With the debt crisis calming in Europe, confidence levels have risen among construction companies. The German construction industry improved significantly in the second quarter, pushing up capacity utilization and employment levels. However, the pace of growth slowed somewhat towards the end of the third quarter. In the second quarter of the year, buildings and infrastructure in Germany and Eastern Europe were damaged by extreme flooding. This led to increased demand for repair and construction work here in the third quarter. According to the German Engineering Federation (VDMA), demand for compact equipment in Germany fell, however, during the first nine months of the year. This was due to a comparatively high baseline as unit sales for the majority of these products are higher than the long-term average. In addition, customers are still cautious about making investments despite the healthy order situation. This means that machines are being used for longer periods of time.

In North America, demand in Q3 2013 remained above the previous year's level, although the dynamic pace of growth that characterized the first half of the year did slow somewhat. Overall, the US construction sector is still far below the high levels of 2006.

In China, demand for construction equipment is highly cyclical. Q3 figures, for example, were again lower than the previous year. The mining sector, in particular, continued to report significant losses. Local manufacturers are reporting a shift in demand for light and compact equipment. Customers looking to invest are now placing more importance on a machine's lifecycle and therefore expect significantly higher levels of quality. This represents a potential opportunity for western companies. In addition, the rapid increase in production volumes in recent years saturated the market and resulted in large numbers of used machines in China. This, in turn, has reduced demand for new equipment.

From mid-2012 on, falling industrial metal prices caused mining companies to cut back on investments. As a result, demand for equipment in Australia was below the previous year's level.

Landholders remain cautious

Economic assessments in the agricultural sector are closely linked to price changes in agricultural sectors and operating resources as well as political developments and the general competitive situation. The financial situation on agricultural holdings is influenced by a range of factors, including income (which itself is determined by variables such as harvests) and the prices of energy, fertilizer, feed and leasing agreements. According to the VDMA, revenue

generated by agricultural machines is set to rise by four percent in Europe in 2013 and by five percent worldwide. The latest forecasts for the rest of the year are more reserved, however.

The Common Agricultural Policy (CAP) reform approved at the end of September provides a financial basis for more sustainable farming practices across Europe.

Business trends and highlights from the first nine months

Nine-month revenue at record high

Although some of our main markets in Europe shrunk by as much as two digits this year, Wacker Neuson again increased its volume of business in highly competitive markets. The Group benefitted from its strategy to leverage sales synergies for the international distribution of products and from its diversification into different markets.

During the first nine months of 2013, revenue increased by 6.1 percent to EUR 862.4 million (9M 2012: EUR 812.6 million). Revenue for the first quarter of the year decreased due to harsh weather conditions in the northern hemisphere. The company quickly made up for this downturn during the second quarter, however. Q3 revenue amounted to EUR 276.3 million, a rise of 8.6 percent relative to the previous year (Q3 2012: EUR 254.5 million). This positive development marks a new revenue high for the Group – for both the first nine months of the year and the third quarter.

From a geographical perspective, revenue in the first nine months of the year rose by 7 percent in Europe and 6 percent in the Americas. Central Europe and the US are the Group's core markets. In these regions, customers in the construction and agricultural sectors as well as gardening, landscaping, industrial and logistics companies showed increased willingness to invest. Revenue in the Asia-Pacific region was 10 percent lower than the previous year. This was primarily due to dampened markets in Australia and New Zealand.

During the first nine months of the year, all three business fields (light equipment, compact equipment and services) reported a rise in revenue relative to the prior-year period. Growth was strongest in the compact equipment segment, which reported a 9.5 percent rise. This was followed by an 8.3 percent rise in the services segment and by a slight increase of 0.8 percent in the light equipment segment, which was primarily due to currency fluctuations (all figures before cash discounts).

The Nordbau construction trade fair has been held in Neumünster since 1956. It focuses primarily on the construction sector and equipment used by municipal bodies. The theme for this year's show was "zu Hause bei Freunden" (At home among friends). Wacker Neuson was on site from September 12 to 17, showcasing its latest innovations from 2013 on a 1,000 square-meter outdoor site. Visitors had the opportunity to test some of the machines.

The EBITDA margin1 amounted to 12.9 percent in the first nine months of 2013 (9M 2012: 13.6 percent). The EBIT margin2 came to 7.8 percent (9M 2012: 8.5 percent).

In the third quarter of 2013, Wacker Neuson's EBITDA margin was posted at 14.9 percent (Q3 2012: 13.4 percent) and the EBIT margin also improved at 9.6 percent (Q3 2012: 7.9 percent).

At September 30, 2013, gearing3 amounted to around 23 percent. With an equity ratio before minority interests of around 68 percent at the closing date, assets remain strong. For further details, refer to the "Financials and assets" section.

Capital market communication and share trends

During the period under review, the Executive Board regularly kept capital market players updated on current company developments and strategy. They accomplished this through a variety of channels, including national and international conferences and roadshows.

Although capital markets developed positively overall, the Wacker Neuson share performed below German equity indexes and industry peers. The share started 2013 at EUR 10.51 and peaked at EUR 12.48 on March 20. At the

close of the reporting period (September 30, 2013), it closed at EUR 11.00. This corresponds to a rise of around 5 percent since the start of the year. The share thus performed below the SDAX (+22 percent) and the DAX (+13 percent) over the same period. In October, the DAX reached the 9,000 point mark for the first time in its 25-year history and the Wacker Neuson share also improved markedly. It is currently listed at around EUR 12.00. Market capitalization amounted to EUR 771.5 million at September 30 (70,140,000 shares).

Share price trends January through October 2013

EBITDA margin = EBITDA/revenue.

EBIT margin = EBIT/revenue.

Gearing = net financial debt/equity ratio before minority interests.

bauma Africa took place in Johannesburg from September 18 to 21. This was the first time that the international trade fair for construction equipment, building materials equipment, mining equipment and construction vehicles was held in Africa. The exhibition formed an area of 60,000 square meters, making it the largest industry event for the sector in Africa. Wacker Neuson's 500 square-meter outdoor stand featured a number of different "action areas" and provided the perfect backdrop for showcasing the broad portfolio of Wacker Neuson products.

Profit, financials and assets

Revenue and earnings1

Revenue up on previous year

In the first nine months of 2013, Group revenue rose 6.1 percent to EUR 862.4 million (9M 2012: EUR 812.6 million). This is a record result for the period. Adjusted to discount currency fluctuations, this corresponds to an increase of 7.9 percent.

The increase was fueled primarily by positive trends in the compact equipment segment and by the rising pace of growth in the services segment.

Demand for Wacker Neuson machines increased significantly in the second quarter with the start of the construction season and remained at a high level throughout the summer months.

Revenue in the third quarter thus rose to EUR 276.3 million (Q3 2012: EUR 254.5 million), which corresponds to an increase of 8.6 percent relative to the prior-year quarter.

Revenue Q3/9M 2013 and 2012 in € million

Q3/2013			276.3
Q3/2012			254.5
9M/2013			862.4
9M/2012			812.6

¹ The figures include the effects of purchase price allocation (PPA) resulting from the merger between the former Wacker Construction Equipment AG and Neuson Kramer Baumaschinen AG in fall 2007. These effects will have significantly less impact on earnings from 2014 on and will no longer be reported separately.

Manufacturing costs rose 7.0 percent to EUR 601.0 million in the first nine months of 2013 (9M 2012: EUR 561.6 million) due to the upturn in sales.

Gross profit for the period under review rose to EUR 261.4 million (9M 2012: EUR 251.0 million). This corresponds to an increase of 4.1 percent. The gross profit margin amounted to 30.3 percent (9M 2012: 30.9 percent).

Markets were highly competitive during the period under review. The sharp rise in revenue from compact equipment also resulted in higher variable manufacturing costs, although this segment also generates lower sales costs than light equipment. The gross profit margin amounted to 31.4 percent in the third quarter (Q3 2012: 32.3 percent).

SG&A and R&D expenses as percentage of revenue

The rise in the volume of business in the first nine months of 2013 was accompanied by an increase in selling expenses, R&D and administrative costs. Their relative share of revenue remained consistent, however, at 22.7 percent (9M 2012: 22.7 percent).

Selling expenses rose 7.9 percent to EUR 126.0 million in the first nine months of the year (9M 2012: EUR 116.8 million). This figure reflects the additional expenses related to the bauma trade fair in the second quarter. The Group also made targeted efforts to strengthen its international sales team.

R&D costs amounted to EUR 20.6 million, a rise of 4.5 percent (9M 2012: EUR 19.7 million).

General administrative costs came to EUR 48.8 million (9M 2012: EUR 48.1 million). Administrative costs thus accounted for 5.7 percent of revenue, only a slight decrease on the previous year (9M 2012: 5.9 percent).

Key profit indicators

Profit before interest, tax, depreciation and amortization (EBITDA) increased slightly by 0.6 percent to EUR 110.9 million in the first nine months of the year (9M 2012: EUR 110.3 million). The EBITDA margin was at 12.9 percent (9M 2012: 13.6 percent). Lower than anticipated revenue and earnings in Q1 2013 impacted profit, limiting the rise in EBITDA. The weak results in Q1 2013 were caused by harsh weather conditions in the northern hemisphere and ongoing economic concerns in Europe, which affected all manufacturers.

EBITDA Q3/9M 2013 and 2012

in € million

Q3/2013		41.2
Q3/2012		34.2
9M/2013		110.9
9M/2012		110.3

Fortunately, the Group's profit results improved significantly during the third quarter. At EUR 41.2 million, Wacker Neuson's EBITDA was 20.7 percent higher than the prioryear quarter, resulting in an EBITDA margin of 14.9 percent (Q3 2012: EUR 34.2 million; 13.4 percent). Profit results for the previous year were impacted by one-off start-up costs for the new production facility in Hörsching.

Development 9M 2008 – 2013 of revenues and EBITDA margin Revenue in € million

9M/2013	12.9	862.4
9M/2012	13.6	812.6
9M/2011	16.7	727.6
9M/2010	10.1	551.7
9M/2009	3.8	442.8
9M/2008	13.3	684.7

EBITDA margin as a %

Development Q3 2008 – 2013 of revenues and EBITDA margin Revenue in € million

Q3/2013	14.9	276.3
Q3/2012	13.4	254.5
Q3/2011	19.9	248.9
Q3/2010	12.7	196.0
Q3/2009	10.5	149.0
Q3/2008	13.3	212.3

EBITDA margin as a %

Depreciation and amortization for the first nine months of 2013 amounted to EUR 44.1 million (9M 2012: EUR 41.0 million) and EUR 14.7 million for the third quarter (Q3 2012: EUR 14.0 million).

Profit before interest and tax (EBIT) was posted at EUR 66.9 million for the first nine months of 2013 (9M 2012: EUR 69.3 million).1 The EBIT margin amounted to 7.8 percent (9M 2012: 8.5 percent). In Q3 2013, EBIT rose 31.8 percent to EUR 26.5 million, which corresponds to an EBIT margin of 9.6 percent (Q3 2012: EUR 20.1 million; 7.9 percent).

			Change			Change
in € million	Q3/2013	Q3/2012	as a %	9M/2013	9M/2012	as a %
Revenue	276.3	254.5	8.6	862.4	812.6	6.1
Gross profit margin as a %	31.4	32.3	-0.9 PP	30.3	30.9	-0.6 PP
EBITDA	41.2	34.2	20.7	110.9	110.3	0.5
EBITDA margin as a %	14.9	13.4	+1.5 PP	12.9	13.6	-0.7 PP
EBIT	26.5	20.1	31.8	66.9	69.3	-3.5
EBIT margin as a %	9.6	7.9	1.7 PP	7.8	8.5	-0.7 PP
EBT	24.6	18.2	35.2	61.4	63.9	-3.9
Profit for the period	16.9	13.5	25.2	41.8	44.5	-6.1

¹ Purchase price allocation (PPA) reduced EBIT by EUR 2.6 million (9M 2012: EUR 3.1 million). In June 2012, a one-off impairment loss in the amount of EUR K 516 was reported on an investment property in Tredegar, UK. This loss was allocated to the Neuson Kramer subgroup.

Key figures

Revenue for the period under review was impacted by the euro's strong performance against the US dollar. However, due to natural currency hedging, exchange rate fluctuations arising from the international flow of goods have little effect on Group profit. In the first nine months of 2013, the average euro/dollar exchange rate was EUR 1 to USD 1.32 (9M 2012: EUR 1 to USD 1.29). The Group uses derivative financial instruments to hedge other currencies to the greatest possible extent.

At EUR -5.4 million, the financial result remained at the same level as the prior-year period (9M 2012: EUR -5.4 million).

Profit before tax (EBT) amounted to EUR 61.4 million in the first nine months of 2013 (9M 2012: EUR 63.9 million). Tax revenue was posted at EUR 19.3 million (9M 2012: EUR 19.0 million). The tax rate was thus 31.5 percent (9M 2012: 29.8 percent).

At EUR 41.8 million, profit for the first nine months of 2013 was lower than the previous year's figure of EUR 44.5 million. This figure was also affected by the difficult first quarter, which saw profit fall 37.6 percent relative to the previous year. Earnings per share for the first nine months of 2013 amounted to EUR 0.60 (9M 2012: EUR 0.63) based on 70.14 million ordinary shares.

Profit for the third quarter of 2013 bucked this trend and increased 25.2 percent on the previous year to EUR 16.9 million (Q3 2012: EUR 13.5 million). As a result, quarterly earnings per share increased significantly to EUR 0.24 (Q3 2012: EUR 0.19).

Financial position

Positive cash flow developments

Cash flow from operating activities was posted at EUR 87.4 million at the close of September 2013 (9M 2012: EUR 12.7 million) and was thus clearly higher than in the previous year. Before investments in working capital1 , cash flow from operating activities amounted to EUR 97.1 million. The Group generated operating cash flow of EUR 55.8 million in the third quarter alone (Q3 2012: EUR 21.5 million).

Cash flow from investment activities came to EUR -65.7 million in the first nine months of 2013 (9M 2012: EUR -79.7 million) and EUR -16.1 million in the third quarter (Q3 2012: EUR -20.6 million). The Group made scheduled investments in the amount of EUR 67.6 million. EUR 57.4 million of this was channeled into property, plant and equipment. This included maintenance work as well as investments in the expansion of international sales and the Group's own rental fleet. Overall, investments during the first nine months of the year were down on the prior-year period. Investments, however, remained higher than write-downs.

Positive free cash flow

As expected, cash flow from operating activities was higher than cash flow from investment activities at the close of September 2013. This resulted in positive free cash flow of EUR 21.7 million (9M 2012: EUR -66.9 million). The Group generated free cash flow of EUR 39.7 million in the third quarter of 2013 alone (Q3 2012: EUR 1.0 million).

Cash flow from financing activities amounted to EUR -24.4 million in the first nine months of 2013 (9M 2012: EUR 69.1 million). In the prior-year period, the Schuldschein

Financial position

in € K	Q3/2013	Q3/2012	9M/2013	9M/2012
Cash flow from operating activities	55,778	21,523	87,412	12,719
Cash flow from investing activities	-16,119	-20,562	-65,697	-79,665
Free cash flow	39,659	961	21,715	-66,946
Cash flow from financing activities	-38,807	5,281	-24,414	69,050
Change in cash and cash equivalents due to consolidation	-395	-343	135	-466
Change in cash and cash equivalents	457	5,899	-2,564	1,718
Cash and cash equivalents at beginning of period	15,846	12,709	18,867	16,890
Cash and cash equivalents at end of period	16,303	18,608	16,303	18,608

¹ Working capital = inventory + trade receivables - trade payables.

loan agreement generated extra funds and resulted in a higher cash flow from financing activities. In May 2013, Wacker Neuson SE paid a dividend to its shareholders in the amount of EUR 21.0 million (May 2012: EUR 35.1 million).

Any changes to the consolidation structure are described in more detail in the Notes.

Comfortable liquidity situation

The Group demonstrates healthy and stable levels of liquidity at EUR 16.3 million at September 30, 2013 (December 31, 2012: EUR 18.9 million). The Group is able to meet its liquidity needs for the current year through a combination of existing liquid assets and credit lines extended by credit institutes. At the closing date, the company had not drawn on around 45 percent of funds available through credit lines, providing it with sufficient financial headroom. This healthy position was recently acknowledged by the Deutsche Bundesbank, which confirmed Wacker Neuson SE was eligible for credit.

Assets

Assets in stable position and high equity ratio

The equivalent figures from the previous closing date (September 30, 2012) are included to make comparing assets easier.

After the first nine months of the year, the balance sheet again shows that Group assets remain strong. The balance sheet total rose to EUR 1,366.1 million at September 30, 2013 (December 31, 2012: EUR 1,344.8 million; September 30, 2012: EUR 1,333.5 million).

Assets increased to EUR 754.9 million (December 31, 2012: EUR 746.5 million; September 30, 2012: EUR 746.2 million).

The value of finished products increased to EUR 247.1 million (December 31, 2012: EUR 237.7 million). This corresponds to a rise of 6.0 percent on the prior-year period (September 30, 2012: EUR 233.2 million).

Inventory reduced slightly by 3.0 percent to EUR 349.4 million (December 31, 2012: EUR 360.1 million) in line with the working capital strategy. This brings inventory to the same level as the previous year (September 30, 2012: EUR 350.5 million). Sales affiliates were able to reduce inventory. The production sites, however, increased stock to ensure they had the flexibility to respond promptly to short-term orders and deliver products rapidly.

Trade receivables grew to EUR 180.8 million since the start of the year (December 31, 2012: EUR 147.8 million; September 30, 2012: EUR 153.5 million). This rise was fueled by the increase in revenue and also by increased interest in Wacker Neuson financing options among our customers the world over. In certain cases, Wacker Neuson provides customers with longer payment terms in line with standard industry practices.

Attractive financing options for customers

Customers in all industries are increasingly making use of financing options to maintain liquidity despite large investments. Today, a higher percentage of all new machine sales in the compact equipment and light equipment segments are purchased in conjunction with financing plans. To provide customers with information on financing options locally, the Group entered a global collaboration

in € K	Sep. 30, 2013	Dec. 31, 2012	Change as a %	Sep. 30, 2012	Change as a %
Total non-current assets	799,997	790,207	1.2	783,134	2.2
Total current assets	566,152	554,598	2.1	550,347	2.9
Total assets	1,366,149	1,344,805	1.6	1,333,481	2.4
Equity before minority interests	923,750	914,658	1.0	913,016	1.2
Total non-current liabilities	203,636	207,138	-1.7	199,416	2.1
Total current liabilities	234,992	219,509	7.1	217,716	7.9
Minority interests	3,771	3,500	7.7	3,333	13.1
Total liabilities	1,366,149	1,344,805	1.6	1,333,481	2.4

Assets, equity and liabilities

with De Lage Landen (DLL) in July 2013. DLL is a specialist provider of financing solutions for equipment manufacturers, dealers and distributors. In Germany, the partners work very closely together to provide customers with tailored financing solutions from DLL under the "Wacker Neuson Finance" brand. This collaboration minimizes risks for the Group from this business.

Total current assets rose to EUR 566.2 million (December 31, 2012: EUR 554.6 million; September 30, 2012: EUR 550.3 million).

Group equity before minority interests amounted to EUR 923.8 million at the close of September 2013 (December 31, 2012: EUR 914.7 million; September 30, 2012: EUR 913.0 million). At 67.6 percent, equity ratio before minority interests remained high for the industry (December 31, 2012: 68.0 percent; September 30, 2012: 68.5 percent). The company's share capital remained unchanged at EUR 70.14 million.

Non-current liabilities were posted at EUR 203.6 million (December 31, 2012: EUR 207.1 million; September 30, 2012: EUR 199.4 million). Due to an increase in production volumes, trade payables rose to EUR 63.6 million and were thus equal with the prior-year figure (December 31, 2012: EUR 51.1 million; September 30, 2012: EUR 63.6 million). Short-term borrowings increased relative to the previous year. This was primarily due to the rise in working capital. As such, total current liabilities amounted to EUR 235.0 million (December 31, 2012: EUR 219.5 million; September 30, 2012: EUR 217.7 million).

Improved working capital to revenue ratio

The increase in receivables resulting from the rise in revenue and the financing models caused working capital to grow by 2.1 percent to EUR 466.5 million in the first nine months of 2013 (December 31, 2012: EUR 456.8 million). Working capital increased by 5.9 percent relative to the previous year (September 30, 2012: EUR 440.4 million).

The higher revenue figures also caused the working capital to revenue ratio based on annualized Q3 2013 revenue to improve to 42.21 percent and was thus below the equivalent ratio for the previous year (Q3 2012: 43.32 percent). Wacker Neuson secures its delivery capabilities by implementing an efficient and above all forward-looking component and product procurement strategy.

Solid financing structure

At September 30, 2013, net financial debt3 amounted to EUR 214.1 million and thus remained on a par with the figure at the start of the year (December 31, 2012: EUR 214.2 million; September 30, 2012: EUR 194.9 million). The Group was thus able to reduce net financial debt as planned from the EUR 254.7 million reported at June 30, 2013.

Gearing4 was reported at 23.2 percent at the closing date (December 31, 2012: 23.4 percent; September 30, 2012: 21.3 percent). The Group's financing structure thus remains strong for the industry.

Net financial position

in € K	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012
Long-term borrowings	-132,577	-134,807	-134,981
Short-term borrowings	-97,423	-97,853	-78,060
Current portion of long-term borrowings	-424	-437	-445
Cash and cash equivalents	16,303	18,867	18,608
Total	-214,121	-214,230	-194,878

Off-balance-sheet assets and financial instruments

In addition to the assets shown in the consolidated balance sheet, the Group also makes customary use of assets that cannot be recognized in the balance sheet. These generally refer to leased, let or rented assets (operating leases).

Off-balance-sheet financing instruments in the form of return obligations and guarantees vis-à-vis our financing partners are utilized to a limited extent.

Judgments and estimates

During the period under review, no voting rights were exercised and no balance-sheet disclosures made which, if exercised or disclosed differently, would have had a material effect on the net assets, financials and earnings of the Group.

Note on calculation: 466.5/ (276.3x4) = 42.2 percent.

Note on calculation: 440.4/ (254.5x4) = 43.3 percent.

³ Net financial debt = long- and short-term borrowings + current portion of long-term borrowings – marketable securities (provided these exist and are available for sale) – cash and cash equivalents.

Gearing = net financial debt/equity ratio before minority interests.

Segment reporting

The Wacker Neuson Group supports customers across the globe with its broad product and service portfolio. The company systematically leverages sales synergies through active cross-selling across different product groups.

Segment reporting provides an overview of business developments according to region (Europe, Americas and Asia-Pacific). The Group also breaks revenue down according to business segment (light equipment, compact equipment and services).

In the first nine months of 2013, all regions and business areas developed positively, with the exception of Asia-Pacific. Europe was the main growth driver here, reporting double-digit growth in the third quarter. The Americas also followed a strong growth path. On the product side, revenue from the compact equipment segment grew faster than light equipment revenue. The services segment also reported strong growth.

Results for Europe, the Americas and Asia-Pacific

Revenue by region 9M 2013 as a % (previous year)

25.2 Americas (25.3) 3.1 Asia-Pacific (3.6) 71.7 Europe (71.1)

Revenue growth in core market Europe

At 71.7 percent, Europe accounts for the lion's share of Wacker Neuson revenue (9M 2012: 71.1 percent of total revenue). Wacker Neuson reported revenue of EUR 618.3 million for this region (9M 2012: EUR 577.6 million), which corresponds to a solid 7.0-percent growth rate. Profit before interest and tax (EBIT) amounted to EUR 46.4 million (9M: EUR 44.9 million).

In Q3, revenue for Europe rose 12.8 percent relative to the previous year to EUR 202.1 million (Q3 2012: EUR 179.1 million). The compact equipment segment took the lead here, reporting double-digit revenue growth in Europe.

Wacker Neuson saw revenue develop positively in many European countries during the first nine months of the year, above all in German-speaking countries but also in the UK, Norway, Turkey and Russia. Poland, Hungary and Italy were the only countries that experienced a drop in equipment investments. For Poland, however, this follows on from two years of above-average growth.

Growth in the Americas

Revenue in the Americas region rose 5.9 percent on the previous year to EUR 217.5 million in the first nine months of the year (9M 2012: EUR 205.4 million). Adjusted to reflect exchange rate fluctuations, this corresponds to a rise in revenue of 9.3 percent. The region's share of overall revenue remained almost unchanged at 25.2 percent (9M 2012: 25.3 percent). Profit before interest and tax (EBIT) decreased to EUR 16.9 million (9M 2012: EUR 26.4 million) due to the change in product mix.

Revenue for the third quarter rose 3.3 percent on the previous year to EUR 66.3 million (Q3 2012: EUR 64.2 million) and thus performed below expectations.

Demand for our products was particularly high in the US, Canada, Chile and Mexico. Although current uncertainties had an impact on demand in Brazil, the Group continues to view Brazil as a promising market.

Revenue was bolstered by our light equipment business and also by increased sales of compact equipment, which Wacker Neuson is distributing to more and more markets via its American sales network.

Americas
9M 2013 and 2012
in € million
Revenue
9M/2013	217.5
9M/2012	205.4
EBIT
9M / 2013	16.9
9M / 2012	26.4

Asia-Pacific below previous year's level

Revenue in the Asia-Pacific region for the first nine months of the year amounted to EUR 26.5 million, 10.5 percent lower than the previous year (9M 2012: EUR 29.6 million). Profit before interest and tax (EBIT) amounted to EUR 0.3 million (9M 2012: EUR 2.1 million). This region's share of total revenue decreased to 3.1 percent (9M 2012: 3.6 percent).

Asia-Pacific 9M 2013 and 2012 in € million

Revenue

9M/2013	26.5
9M/2012	29.6

EBIT

9M/2013	0.3
9M/2012	2.1

Revenue and earnings in the region were particularly impacted by key customers in Australia and New Zealand adopting a cautious approach to investments and by falling demand in China. Revenue generated by compact equipment fell slightly in the Asia-Pacific region.

The company continues to view Asia-Pacific as a key growth market. Demand for high-quality products is steadily rising here. The focus lies in particular on China and India. Wacker Neuson established its first affiliate in China over fifteen years ago and its first one in India five years ago. We have launched a selected range of light equipment products tailored to the needs of Asian markets and will continue to expand our remaining product portfolio to meet market needs here and strengthen our competitive position.

Emerging markets1 accounted for 12.3 percent of total revenue in the first nine months of the year (9M 2012: 12.5 percent).

Results for the light equipment, compact equipment and services segments

Revenue by business segment 9M 2013 as a % (previous year)

Demand for light equipment remains on the same high level as the previous year

The light equipment business segment covers Wacker Neuson Group activities within the strategic business fields of concrete technology, compaction and worksite technology. Production is synchronized with demand and delivery times are short. The Group therefore does not report order backlog for this segment.

¹ The term emerging markets refers to 35 countries according to the Dow Jones definition: Argentina, Bahrain, Brazil, Bulgaria, Chile, China, Colombia, the Czech Republic, Egypt, Estonia, Hungary, India, Indonesia, Jordan, Kuwait, Latvia, Lithuania, Malaysia, Mauritius, Mexico, Morocco, Oman, Pakistan, Peru, Philippines, Poland, Qatar, Romania, Russia, Slovakia, South Africa, Sri Lanka, Thailand, Turkey, United Arab Emirates.

Revenue by business segment

in € K	Q3/2013	Q3/2012	9M/2013	9M/2012
Segment revenue
Light equipment	94,414	96,758	308,721	306,223
Compact equipment	115,388	95,141	377,669	344,830
Services	70,707	66,209	187,266	172,984
	280,509	258,108	873,656	824,037
Less cash discounts	-4,192	-3,646	-11,273	-11,434
Total	276,317	254,462	862,383	812,603

Demand for light equipment increased only slightly in the first nine months of 2013. At the close of September 2013, revenue before cash discounts from the light equipment segment rose 0.8 percent to EUR 308.7 million (9M 2012: EUR 306.2 million). Due to strong growth in the other segments, this segment's share of overall revenue dropped to 35.3 percent (9M 2012: 37.2 percent). Falling demand in Asia-Pacific had a particularly strong impact on the light equipment segment in the third quarter of the year. As a result, revenue generated by light equipment fell slightly to EUR 94.4 million, a drop of 2.4 percent relative to the previous year (Q3 2012: EUR 96.7 million).

During the course of the year, Wacker Neuson launched a host of new light equipment products that deliver greater productivity and safety to end customers. The EH 100 electric breaker delivers 100 joules of single stroke impact – a huge amount of power for an electric breaker weighing only 32 kilograms. This powerful electric breaker features full-hood spring mounting, which enables operators to work with utmost precision, accurately positioning the breaker while keeping a close eye on the drill bit. The breaker is also extremely efficient and generates hand-arm vibrations of just 5.8 meters per second.

Another Wacker Neuson innovation, the Compatec compaction display system, was developed specifically for the DPU 6555 vibratory plate. The display system tells operators when a surface is sufficiently compacted, thus preventing them from carrying out unnecessary work or over-compacting surfaces. It also eliminates the risk of overload.

Wacker Neuson also optimized the performance and size of its AR 36 external vibrator for exposed concrete surfaces. The resulting AR 26 external vibrator delivers the same performance as its predecessor but is around two kilograms lighter.

The LBS 80M light balloon is easy to use and diffuses light highly effectively. It also features a robust stand. The LTN 6LV light tower features a telescopic mast that can be electrically extended and retracted, allowing it to be put into action or packed away for transport in no time at all.

Clear revenue growth in compact equipment segment

The compact equipment business segment covers machines targeted at construction and agricultural companies, gardening, landscaping and industrial firms as well as recycling companies and municipal bodies. The portfolio includes excavators, wheel loaders, skid steer loaders, telescopic handlers as well as wheel and track dumpers weighing up to approximately 14 tons. The Group is targeting its compact equipment portfolio at more and more markets outside of Europe.

Revenue before cash discounts in the compact equipment segment rose from EUR 344.8 million in the previous year to EUR 377.7 million in the first nine months of 2013. This corresponds to a of 9.5-percent increase. Demand for compact equipment developed particularly well in North and South America, the UK, Norway, Turkey and South Africa.

In the third quarter, segment revenue amounted to EUR 115.4 (Q3 2012: EUR 95.1 million), an increase of 21.3 percent on the previous year. The prior-year quarter was affected by a backlog in compact equipment deliveries resulting from delays in our relocation to the new plant in Hörsching (near Linz, Austria) and the start of production there.

The compact equipment segment's share of overall revenue for the period under review rose to 43.2 percent (previous year: 41.8 percent).

Our customers continue to place orders at short notice. As such, our forecasts are restricted to a period of three to four months. It is therefore crucial that these short-term orders are delivered as quickly as possible.

For the nine-month period under review, accumulated order intake for compact equipment for the construction and agricultural sectors showed a clear increase compared with the previous year. Order intake for September 2013 also showed an increase on September 2012. There were also orders for 2014 included.

Revenue generated by agricultural equipment at the Group decreased by 5.0 percent to EUR 116.0 million in the first nine months of the year (9M 2012: EUR 122.1 million). However, order intake was higher than in the previous year at the closing date and so we expect revenue to improve towards the end of the year.

Compact equipment for the agricultural sector accounted for 13.3 percent of total Group revenue at the closing date (9M 2012: 14.8 percent). The Group expects demand for innovative Weidemann- and Kramer-branded machines, which are primarily used for yard work, to continue to rise.

The Group continued to successfully deliver special financing options for customers in the compact equipment business.

Wacker Neuson also launched a wealth of innovative compact equipment in 2013.

For the first time, the company presented an alternative drive concept for compact equipment. The Group's smallest excavator, the 803, is the first model to showcase the new dual power drive. The external plug & play electrohydraulic drive can be connected to the excavator to provide an alternative power source to the diesel engine. This costeffective option turns the 803 into a zero-emissions, fullpower excavator on any construction site, also delivering enough cooling power for the 803 to be operated in temperatures of up to 45°C. The 803 is the first excavator in this weight class with this capability.

Wacker Neuson's EZ17 excavator is the company's newest and smallest Zero Tail model. It combines maximum maneuverability, digging power and ergonomics with Wacker Neuson's proven design expertise. The large volume diesel engine raises the bar in performance. Its low rpm reduces noise emissions and fuel consumption.

Wacker Neuson also launched the compact WL 20 wheel loader. This new and smallest addition brings the Group's wheel loader range to nine models. The most powerful machine in the range is the WL 57. It transports large amounts of material with ease thanks to its operating weight of 5,760 kilograms, tipping load of 3,663 kilograms, bucket capacity of 0.95 cubic meters and an engine that delivers 74.5 KW / 101 hp of power. The WL 57 is particularly suited to work on roads and in underground construction.

Wacker Neuson has opened up new market segments with the launch of its TH412 and TH625 telescopic handlers: The TH412 mini telescopic handler offers an impressive combination of compact footprint and powerful performance. The TH625 is a compact telescopic handler and a powerhouse in the popular 2x2-meter class.

At a major dealer event in the US in October of this year, Wacker Neuson announced its plans to develop powerful skid steer loaders for the North American market. The company will be unveiling the new products at CONEXPO in Las Vegas in March 2014. Skid steer loaders are used in the US construction industry primarily for transporting material. The first models were well received by US dealers.

Revenue growth in services segment

Wacker Neuson complements new equipment sales with an extensive range of services. The services segment covers the business fields of repair and spare parts, the reconditioned equipment business (for example, the European used equipment center in Gotha) and rental in Central Europe.

Flanking the rise in new machine sales, the services segment is growing steadily. Wacker Neuson is also strengthening its international spare parts business as part of its strategy to expand into new international markets and ensure a seamless supply of spare parts the world over. Segment revenue before cash discounts rose 8.3 percent to EUR 187.3 million in the first nine months of 2013 (9M 2012: EUR 173.0 million). The services segment thus accounted for 21.4 percent of total revenue (9M 2012: 21.0 percent).

Other factors that impacted on results

Slight increase in headcount in 2013

At the interim closing date, Group headcount came to 4,180 (December 31, 2012: 4,096; September 30, 2012: 4,023)1 .

Research and development activities secure leading position

Wacker Neuson is a global technology leader in the manufacture of construction equipment. More than half of the revenue generated by the company stems from light and compact equipment launched within the past five years.

Much of our light and compact equipment is subject to particularly high stresses. R&D activities for these products thus focus on ensuring robust design, shorter downtimes and longer maintenance intervals. Our aim here is to keep operating costs as low as possible over the entire product lifecycle. Our products are also designed to deliver the highest productivity levels for our customers by providing optimum power in vibratory plates, for example, or through innovations such as our Vertical Digging System for excavators. Our development activities also aim to extend our pioneering position in product safety, operator safety and environmental protection. Noise and vibration reduction features such as hand-arm vibration systems in breakers as well as safety features such as infrared remote controls for trench rollers or our Smart Handling System for telescopic handlers are just some examples of operator safety innovations here. In addition, research, development and innovation are becoming increasingly important in the bid to achieve climate protection goals. We have a long tradition in these areas and prioritize on our efforts here. We intend to maintain our high standards in the delivery of environmentally sound, safe products as we move forward, and will therefore continue to focus our R&D efforts on compliance with more stringent environmental regulations governing combustion engine emissions.

The company benefits from steady investments in its R&D activities. Research and development continues to account for 2.4 percent of revenue (9M 2012: 2.4 percent).

Changes to the opportunity and risk situation

In the first nine months of 2013, the Wacker Neuson Group continued to implement its risk management system as a key steering tool for business decisions and processes. This internal control and risk management system is described in detail in the consolidated financial statements for 2012.

The remaining risks to the Group relevant to the period under review are listed in the 2012 Annual Report on pages 107 to 109.

Company management is not currently aware of any other significant risks to the Wacker Neuson Group. It also has not identified any single or collective risks to its continued existence as a going concern that might negatively affect individual companies within the Group or the Group as whole in the foreseeable future.

Business opportunities are described in detail in the 2012 Annual Report on pages 109 and 110, and in the Outlook section of this interim management report.

Supplementary report

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

Outlook

Global economy provides opportunities, continued risk of disruptions

According to the International Monetary Fund (IMF), the global economy is growing. The pace of growth, however, is slower than expected. Economic growth for the coming year is forecast at 3.6 percent, which is also lower than originally predicted. This is due to the economic slowdown in China and other emerging markets. The budget dispute in the US has also dampened global growth forecasts.

¹ Headcount figures do not reflect the actual number of people employed. They are calculated by converting the number of positions within the company into full-time jobs. China is set to be the biggest growth driver in the global economy once again. Although the pace of growth in some emerging markets has slowed recently, these regions still offer the greatest growth potential. European companies that are well-positioned to export to importing Asian markets will profit from this trend. European companies generally have a strong competitive position in global markets and are continually increasing their presence in growing emerging countries.

The IMF expects the US economy to pick up in the coming year. However, the risks to the economy remain high and economic conditions are still far from normal. The world's largest economy is expected to grow by 1.7 percent this year and by 2.7 percent next year.

The euro zone economy is expected to grow as companies slowly start to look beyond the debt crises. The euro zone is forecast to grow 1 percent in 2014, 0.1 percent more than was predicted in August of this year. The growth forecast for Germany has also been increased from 0.3 to 0.5 percent for the current year and from 1.3 to 1.4 for the coming year.

The situation is also slowly stabilizing in crisis countries such as Spain and Greece. After a further downturn in 2013, both countries are expected to achieve weak growth over the coming year.

Uncertainties remain as to whether the euro zone countries in crisis will be able to remain politically stable and maintain the momentum of their reforms. All recovery scenarios are therefore based on the assumption that the euro crisis will not escalate again. It is unlikely therefore that we will see the market flip in favor of strong investment momentum in the near future. According to the IMF, Europe continues to face risks due to increasingly restricted political maneuverability and continued fragmentation across the banking sector. The situation is further compounded by social and political tensions and the knock-on risks for the rest of the world.

Construction industry is important pillar in global economy

Emerging markets in particular will be investing heavily in infrastructure over the coming years. China and India will be leading the field here. However, countries such as Mexico, Argentina, Turkey, Russia and South Africa will also be pouring billions into a range of infrastructure projects, notably roads, airports and rail networks, utility services (energy, waste and water), public buildings such as schools, universities and hospitals, and telecommunication networks. In Europe, future construction investment will be focused on road, rail and other transport networks and on telecommunications. Other priorities include general renovation and modernization projects and measures to protect the climate and the environment. Residential investments are due to rise. However, cuts in government spending in certain countries could dampen willingness to invest in construction equipment.

In Germany, construction investment is providing important positive impetus. The residential construction sector is proving particularly strong here as it is benefitting from very low interest rates and the widespread feeling that property represents a safe investment haven. Forecasts for Germany in 2014 are reserved. Some manufacturers are already seeing signs of a slight revival while others expect further market consolidation. Overall, the compact equipment business is expected to experience a single-digit drop again. Flat growth is forecast for the heavy equipment sector.

Cautious outlook for European agricultural sector

According to the VDMA, the outlook for agricultural technology and the European agricultural industry in 2013 is positive. The association is more cautious about the coming year, however, and expects global production volumes of agricultural machines to fall by 2 percent. Universal trends – such as the world's growing population and the resulting increase in demand for foodstuffs – continue to have a positive effect on demand for agricultural equipment. The basic need for modern machines, particularly to work agricultural holdings efficiently, will continue to increase.

Agricultural landholders are currently focusing investments on barns and barn equipment. In contrast, investments plans for renewable energy such as biogas or solar power are being scaled back. Rising agricultural prices should bolster landholders' income – a factor which, in turn, should fuel demand for Weidemann- and Kramer-branded equipment.

In June 2013, the European Parliament, the Council of the European Union and the European Commission approved a reform of the Common Agricultural Policy (CAP) which will come into force after 2013. The reform will see payments to agricultural landholders in the EU distributed more fairly. It will also strengthen ecological sustainability across the agricultural sector and improve its market orientation. The direct payment system is therefore set to become fairer and more environmentally sound, strengthening the position of landholders in the food supply chain. This will also create a more secure basis for future investments.

Agritechnica is the world's largest exhibition for agricultural machines and equipment. It is being held Hanover in November of this year. The event will provide important information on the current mood among agricultural landholders and other decision-makers. It will also reveal which areas customers are keen to invest in. Cuttingedge technology, for example, has the potential to improve efficiency levels on agricultural holdings and in crop production. This is a promising area and manufacturers have been deploying electronics and automation technology and also raising the bar in power and performance to meet increased expectations across the industry.

Strategies for further profitable growth

Wacker Neuson has set itself ambitious goals for the coming years. The Group's focus is firmly set on increasing market penetration, expanding market share and strengthening its position as an international innovation leader. By concentrating more on user processes and market requirements, Wacker Neuson aims to align its sales and distribution activities even more closely with customer needs and priorities. Although the market environment in Europe is set to remain difficult in the short term, the global expansion of our sales network and our existing strategic alliances will open up further growth opportunities for the compact equipment segment. We also intend to increase our presence in regions in which we have identified interesting sales potential, for example, in emerging markets in South America, Eastern Europe and Asia.

Forecast for 2013

The uncertainties described above can cause results to change without notice, thus making it very difficult for companies to post accurate predictions. Currency fluctuations are exerting a negative effect on our revenue in 2013.

As current positive business trends are due to continue over the coming weeks, we can confirm our forecast for fiscal 2013. We expect annual revenue to come to around EUR 1.2 billion, as forecast, with the EBITDA margin amounting to over 13.0 percent. In 2012, we reported revenue of EUR 1,091.7 million and an EBITDA margin of 13.0 percent.

We continue to keep strict control over costs and have implemented cost-saving measures to increase profit. We therefore expect revenue and earnings for Q4 to exceed prior-year levels, provided that markets are not disrupted by unexpected external forces.

The Group's strategy to expand its global sales and distribution activities will increase market share as well as product and brand penetration. In the medium term, these efforts will impact profit. However, we view this as a vital investment in our future growth. We will be investing around EUR 80 million in total over the course of this fiscal year (2012: EUR 104.0 million). This reduction in investment relative to the previous year will result in positive free cash flow at the close of the year.

The Group aims to spread risk further and absorb economic fluctuations in individual industries and countries more effectively by diversifying its products and services. Its strong financial position, expanding international footprint, flexible production processes and efficient organizational structures provide extra stability for the Wacker Neuson Group.

With an equity ratio of around 68 percent, Wacker Neuson's financial position is healthy. From our current standpoint, we do not expect gearing to increase further for the rest of the year. Our strong financials and assets will again help us achieve our growth goals for the next two years.

With a view to enhancing our product portfolio and expanding our international footprint, we will also investigate further partnerships and acquisitions in the medium to long term.

Munich, November 8, 2013 Wacker Neuson SE

The Executive Board

Cem Peksaglam CEO

Martin Lehner CTO (Deputy CEO)

Günther C. Binder CFO

Consolidated Income Statement

July 1 through September 30 and January 1 through September 30

	Jul. 1– Sep. 30,	Jul. 1– Sep. 30,	Jan. 1– Sep. 30,	Jan. 1– Sep. 30,
in € K	2013	2012	2013	2012
Revenue	276,318	254,462	862,383	812,603
Cost of sales	-189,621	-172,285	-600,968	-561,574
Gross profit	86,697	82,177	261,415	251,029
Sales and service expenses	-38,395	-38,612	-126,016	-116,782
Research and development expenses	-6,610	-6,763	-20,602	-19,718
General administrative expenses	-14,338	-16,322	-48,831	-48,067
Other income	2,845	1,343	10,603	10,373
Other expenses	-3,725	-1,705	-9,719	-7,539
Profit before interest and tax (EBIT)	26,474	20,118	66,850	69,296
Financial income	442	375	1,170	992
Financial expenses	-2,358	-2,258	-6,630	-6,404
Profit before tax (EBT)	24,558	18,235	61,390	63,884
Taxes on income	-7,608	-4,630	-19,319	-19,026
Profit before minority interests	16,950	13,605	42,071	44,858
Minority interests	-72	-65	-271	-405
Profit for the period	16,878	13,540	41,800	44,453
Earnings per share in EUR (diluted and undiluted)	0.24	0.19	0.60	0.63

Consolidated Total Profit/Loss

July 1 through September 30 and January 1 through September 30

	Jul. 1– Sep. 30,	Jul. 1– Sep. 30,	Jan. 1– Sep. 30,	Jan. 1– Sep. 30,
in € K	2013	2012	2013	2012
Profit/loss before minority interests	16,950	13,605	42,071	44,858
Items not recognized in profit/loss for the period
Exchange differences 1	-6,152	-3,204	-11,707	2,885
Actuarial gains/losses from pension obligations 2	-18	0	41	0
Securing cash flows: 1
Profit/loss incurred in the current period	0	0	0	16
Tax effects from items in total profit/loss for the
period1	0	0	0	-5
Items not recognized in profit/loss
for the period after tax	-6,170	-3,204	-11,666	2,896
Total profit/loss for the period after tax	10,780	10,401	30,405	47,754
Of which are attributable to:
Shareholders in the parent company	10,708	10,336	30,134	47,349
Minority interests	72	65	271	405
Total profit/loss for the period after tax	10,780	10,401	30,405	47,754

Shall be recognized in the Consolidated Income Statement in future periods.

Shall not be recognized in the Consolidated Income Statement in future periods.

Consolidated Balance Sheet

As at September 30

in € K	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012
Assets
Property, plant and equipment	393,750	386,075	385,772
Investment property	18,708	20,666	20,878
Goodwill	236,420	236,603	237,514
Intangible assets	106,044	103,178	102,011
Deferred tax assets	32,535	31,706	26,997
Other non-current assets	12,540	11,979	9,962
Total non-current assets	799,997	790,207	783,134
Inventories	349,374	360,121	350,514
Trade receivables	180,798	147,838	153,513
Current tax receivables	5,061	4,915	5,952
Other current assets	14,616	16,812	15,479
Cash and cash equivalents	16,303	18,867	18,608
Non-current assets held for sale	0	6,045	6,281
Total current assets	566,152	554,598	550,347
Total assets	1,366,149	1,344,805	1,333,481
Equity and liabilities
Subscribed capital	70,140	70,140	70,140
Other reserves	584,232	595,898	603,934
Net profit/loss	269,378	248,620	238,942
Equity before minority interests	923,750	914,658	913,016
Minority interests	3,771	3,500	3,333
Total equity	927,521	918,158	916,349
Long-term borrowings	132,577	134,807	134,981
Deferred tax liabilities	33,473	33,475	30,626
Long-term provisions	37,586	38,856	33,809
Total non-current liabilities	203,636	207,138	199,416
Trade payables	63,635	51,143	63,590
Short-term borrowings from banks	97,423	97,853	78,060
Current portion of long-term borrowings	424	437	445
Short-term provisions	11,767	12,804	13,887
Current tax payable	476	1,834	3,083
Other current liabilities	61,267	55,438	58,651
Total current liabilities	234,992	219,509	217,716
Total liabilities	1,366,149	1,344,805	1,333,481

Consolidated Statement of Changes in Equity As at September 30

						Equity
	Sub		Exchange	Other		before
	scribed	Capital	diffe	neutral	Net profit/	minority	Minority	Total
in € K	capital	reserves	rences	changes	loss	interests	interests	equity
Balance at December 31, 2011	70,140	618,661	-13,680	-3,942	229,886	901,065	2,928	903,993
Total profit/loss for the period	0	0	0	0	44,453	44,453	405	44,858
Other income	0	0	2,885	10	0	2,895	0	2,895
Change in consolidation structure	0	0	0	0	-327	-327	0	-327
Dividends	0	0	0	0	-35,070	-35,070	0	-35,070
Balance at September 30, 2012	70,140	618,661	-10,795	-3,932	238,942	913,016	3,333	916,349
Balance at December 31, 2012	70,140	618,661	-15,280	-7,483	248,620	914,658	3,500	918,158
Total profit/loss for the period	0	0	0	0	41,800	41,800	271	42,071
Other income	0	0	-11,707	41	0	-11,666	0	-11,666
Change in consolidation structure	0	0	0	0	0	0	0	0
Dividends	0	0	0	0	-21,042	-21,042	0	-21,042
Balance at September 30, 2013	70,140	618,661	-26,987	-7,442	269,378	923,750	3,771	927,521

Consolidated Cash Flow Statement

July 1 through September 30 and January 1 through September 30

in € K	Jul. 1– Sep. 30, 2013	Jul. 1– Sep. 30, 2012	Jan. 1– Sep. 30, 2013	Jan. 1– Sep. 30, 2012
EBT	24,558	18,235	61,390	63,884
Depreciation and amortization	14,734	14,018	44,078	40,973
Foreign exchange result	-3,711	-1,768	-7,234	2,144
Gains/losses from sale of intangible assets and property,
plant and equipment	306	284	552	-999
Book value from the disposal of rental equipment	2,956	1,529	8,059	3,890
Gains/losses from derivates (cash flow hedging)	0	0	0	11
Actuarial gains/losses from pension obligations	-18	0	41	0
Financial result	1,904	1,884	5,448	5,413
Changes in inventories	-10,544	-22,908	10,747	-74,674
Changes in trade receivables and other assets	31,848	23,794	-24,798	8,821
Changes in provisions	-636	-1,469	-2,307	-3,864
Changes in trade payables and other liabilities	-413	-2,500	20,258	3,338
Interest paid	-1,313	-1,286	-7,403	-4,069
Income tax paid	-4,314	-8,621	-22,812	-33,017
Interest received	421	331	1,393	868
Cash flow from operating activities	55,778	21,523	87,412	12,719
Purchase of property, plant and equipment	-12,494	-18,572	-57,376	-77,121
Purchase of intangible assets	-3,754	-2,350	-10,232	-6,514
Proceeds from the sale of property, plant and equipment,
intangible assets and non-current assets held for sale	129	360	1,911	3,970
Cash flow from investing activities	-16,119	-20,562	-65,697	-79,665
Dividends	0	0	-21,042	-35,070
Cash receipts from short-term/long-term borrowings	0	5,281	1,156	119,744
Repayments from short-term/long-term borrowings	-38,807	0	-4,528	-15,624
Cash flow from financing activities	-38,807	5,281	-24,414	69,050
Increase/decrease in cash and cash equivalents	852	6,242	-2,699	2,104
Change in cash and cash equivalents due to consolidation	0	0	0	80
Effect of exchange rates on cash and cash equivalents	-395	-343	135	-466
Change in cash and cash equivalents	457	5,899	-2,564	1,718
Cash and cash equivalents at beginning of period	15,846	12,709	18,867	16,890
Cash and cash equivalents at end of period	16,303	18,608	16,303	18,608

Consolidated Segmentation

January 1 through September 30

Segmentation (geographical segments)

in € K	Europe	Americas	Asia-Pacific	Consolidation	Group
9M 2013
Segment revenue
Total external sales	1,022,240	303,801	39,131
Less intrasegment sales	-354,702	-51,253	-2,197
	667,538	252,548	36,934
Intersegment sales	-49,197	-35,047	-10,393
Total	618,341	217,501	26,541	0	862,383
EBIT	46,362	16,919	300	3,269	66,850
EBITDA	85,036	21,695	928	3,269	110,928
Net financial debt	199,796	9,442	4,882	0	214,120
Working capital	304,351	156,175	23,878	-17,867	466,537
9M 2012
Segment revenue
Total external sales	961,532	285,285	42,625
Less intrasegment sales	-325,408	-46,063	-2,331
	636,124	239,222	40,294
Intersegment sales	-58,524	-33,816	-10,697
Total	577,600	205,406	29,597	0	812,603
EBIT	44,888	26,361	2,147	-4,100	69,296
EBITDA	80,879	30,793	2,697	-4,100	110,269
Net financial debt	185,215	5,985	3,679	0	194,879
Working capital	284,806	147,646	25,135	-17,149	440,438

Revenue with non-Group companies generated by affiliates headquartered in Germany amounted to EUR K 327,384 (previous year: EUR K 329,186).

Segmentation (business segments)

	Jan. 1– Sep. 30,	Jan. 1– Sep. 30,
in € K	2013	2012
Segment revenue from external customers
Light equipment	308,721	306,223
Compact equipment	377,669	344,830
Services	187,266	172,984
	873,656	824,037
Less cash discounts	-11,273	-11,434
Total	862,383	812,603

Selected Explanatory Notes to the Interim Financial Statements for Q3 2013

Accounting rules

The Wacker Neuson SE consolidated interim financial statements to September 30, 2013 were prepared in accordance with the International Financial Reporting Standards (IFRS) and their interpretation as valid on the reporting date and adopted in 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, 2012. The comments there also apply to the quarterly and half-year statements for fiscal 2013, unless explicitly stated otherwise.

The general accounting principles, valuation methods and estimates used for the fiscal 2012 consolidated statements have also been applied to these interim financial statements.

Legal changes to company structure

On July 11, 2013, a merger agreement was signed, whereby STG Stahl- und Maschinenbautechnik Gutmadingen GmbH became part of Kramer-Werke GmbH, Pfullendorf and thus of the Wacker Neuson Group.

At September 30, 2013, there were no further legal changes to the company structure.

Seasonal fluctuations

The construction industry is dependent on a number of factors including weather. Revenue is thus subject to seasonal fluctuations. The annual analysis of the seasonal distribution of consolidated revenue over the year clearly shows that seasonal fluctuations can have an impact on Group business.

The quarterly distribution of consolidated revenue from fiscal 2010 through 2012 was as follows:

as a %	2012	2011	2010
Q1	25	21	20
Q2	26	27	27
Q3	23	25	26
Q4	26	27	27

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 period shown.

	2013	2012
Q3
Quarterly earnings attributable to shareholders in € K	16,878	13,540
Weighted average number of ordinary shares in circulation during the period in thousands	70,140	70,140
Earnings per share in EUR (diluted and undiluted)	0.24	0.19
9M
Quarterly earnings attributable to shareholders in € K	41,800	44,453
Weighted average number of ordinary shares in circulation during the period in thousands	70,140	70,140
Earnings per share in EUR (diluted and undiluted)	0.60	0.63

Information on financial instruments

Additional information on financial instruments must be provided in this interim report due to the application of IFRS 13 for the first time in fiscal 2013.

The book values and fair values of financial assets and liabilities are presented in the following table:

in € K	Sep. 30, 2013 Fair value	Sep. 30, 2013 Book value
Assets
Other non-current assets	12,540	12,540
Trade receivables	180,798	180,798
Other current assets	14,616	14,616
Cash and cash equivalents	16,303	16,303

in € K	Sep. 30, 2013 Fair value	Sep. 30, 2013 Book value
Liabilities
Long-term borrowings	132,577	132,577
Trade payables	63,635	63,635
Short-term borrowings from banks	97,423	97,423
Current portion of long-term borrowings	424	424
Other current liabilities	61,267	61,267

At September 30, 2013, only financial assets in the amount of EUR K 1,599 existed. Their fair value is calculated using prices listed on active markets for identical financial assets (level 1 evaluation).

Related party disclosures

In the case of the Group, IAS 24 defines a related party necessitating disclosures as shareholders, entities over which shareholders have control or significant influence (sister companies), non-consolidated companies, members of the Executive Board, members of the Supervisory Board and the pension fund. We refer to the Annual Report 2012 for further information on the type and scope of related party disclosures, with the exception of the transaction given below.

The fixtures on third-party property or in third-party buildings in Leonding, Austria, which were disclosed under "Non-current assets held for sale" at December 31, 2012, were sold to a related party during the first half of 2013.

Important events

Shareholders of Wacker Neuson SE approved a dividend payout in the amount of EUR 0.30 per share at the AGM on May 28, 2013. The actions of the Executive Board and Supervisory Board were approved for fiscal 2012.

On January 22, 2013, the Supervisory Board of Wacker Neuson SE came to a mutual agreement with Mr. Werner Schwind that he would step down from the Executive Board on March 31, 2013 due to a difference in opinion regarding the future direction of the Group's international sales strategy. Mr. Schwind's areas of responsibility have been taken on by CEO Mr. Cem Peksaglam.

Events since the interim statements reporting date

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

Munich, November 8, 2013 Wacker Neuson SE

The Executive Board

Cem Peksaglam CEO

Martin Lehner CTO (Deputy CEO)

Günther C. Binder CFO

Financial Calendar

Financial Calendar 2013

November 12, 2013 Publication of nine-month report 2013 November 13, 2013 German Equity Forum, Frankfurt November 19, 2013 Roadshow, Frankfurt November 26, 2013 Roadshow, London November 27, 2013 Roadshow, Zurich December 13, 2013 Kepler Cheuvreux One-Stop-Shop, London

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 - 298

ir@wackerneuson.com www.wackerneuson.com

Publishing Details

Issued by: Wacker Neuson SE, Department: Corporate Communication/ Investor Relations

Concept, design & realization:

Kirchhoff Consult AG

Content:

Wacker Neuson SE

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 any way 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, 2013. 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 München Deutschland Tel. +49 - (0)89 - 354 02 - 0 Fax +49 - (0)89 - 354 02 - 390 Wacker Neuson SE Preussenstrasse 41, 80809 Munich, Germany Phone +49 - (0)89 - 354 02 - 0 Fax +49 - (0)89 - 354 02 - 390 www.wackerneuson.com

www.wackerneuson.com