Wacker Neuson SE — Interim / Quarterly Report 2013

Aug 14, 2013

H1/2013 Half-year report

Figures at a Glance

April 1 through June 30 and January 1 through June 30

	Apr. 1–Jun. 30,	Apr. 1–Jun. 30,		Jan. 1– Jun. 30,	Jan. 1– Jun. 30,
in € million	2013	2012	Change	2013	2012	Change
Key figures
Revenue	329.0	284.2	+15.8%	586.1	558.1	+5.0%
by region
Europe	237.0	203.6	+16.4%	416.3	398.5	+4.5%
Americas	81.7	70.3	+16.2%	151.2	141.2	+7.1%
Asia-Pacific	10.3	10.4	-1.0%	18.6	18.5	+0.5%
by business segment 1
Light equipment	120.6	107.5	+12.2%	214.3	209.5	+2.3%
Compact equipment	145.7	122.2	+19.2%	262.3	249.7	+5.0%
Services	66.9	58.6	+14.2%	116.6	106.8	+9.2%
EBITDA	44.9	37.3	+20.4%	69.7	76.1	-8.4%
Depreciation and amortization	15.6	14.5	+7.6%	29.3	27.0	+8.5%
EBIT	29.3	22.8	+28.5%	40.4	49.2	-17.9%
EBT	27.5	20.8	+32.2%	36.8	45.6	-19.3%
Profit for the period	18.5	13.8	+34.1%	24.9	30.9	-19.4%
Number of employees	4,093	3,907	+4.8%	4,093	3,907	+4.8%
Share
Earnings per share in €	0.26	0.20	+30.0%	0.36	0.44	-18.2%
Key profit figures
Gross profit in %	30.3	29.5	0.8 PP	29.8	30.3	-0.5 PP
EBITDA margin as a %	13.6	13.1	0.5 PP	11.9	13.6	-1.7 PP
EBIT margin as a %	8.9	8.0	0.9 PP	6.9	8.8	-1.9 PP
Key figures from the						Changes
balance sheet			Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012	Dec. 31, 2012
Non-current assets			805.3	790.2	777.8	1.9%
Current assets			588.5	554.6	545.8	6.1%
Equity before minority interests			913.0	914.7	902.7	-0.2%
Net financial debt			254.7	214.2	195.1	18.9%
Liabilities			477.1	426.6	417.6	11.8%
Equity ratio before minority interests as a %			65.5	68.0	68.2	-2.5 PP
Working capital			486.7	456.8	436.2	6.5%
	Apr. 1–Jun. 30,	Apr. 1–Jun. 30,		Jan. 1– Jun. 30,	Jan. 1– Jun. 30,
Cash flow	2013	2012	Change	2013	2012	Change
Cash flow from operating
activities Cash flow from investing	51.9	22.8	127.6%	31.6	-8.8	-
activities	-30.6	-31.8	-3.8%	-49.6	-59.1	-16.1%
Capital expenditure
(property, plant and equipment
and intangible assets)	-30.8	-32.7	-5.8%	-51.4	-62.7	-18.0%
Cash flow from financing
activities	-25.7	-13.6	89.0%	14.4	63.8	-77.4%
Free cash flow	21.4	-9.0	-	-17.9	-67.9	-73.6%

1 Consolidated sales before discounts.

Latest Developments from the First Six Months of 2013

At a glance

Poor weather conditions resulted in a slow first quarter for Wacker Neuson in 2013. A strong second quarter, however, saw the company post the highest half year revenue result in its history. The Group showcased its entire product portfolio over an area of 6,000 m2 at bauma, the world's largest construction equipment trade show, in April of this year. On May 28, 2013, the AGM approved a dividend payout of EUR 0.30 per share for fiscal 2012.

H1 2013 compared to H1 2012

• Revenue for the first half of 2013 rose 5 percent to EUR 586.1 million.
• The rise in revenue was fueled by increasing demand across all Group business segments (light equipment +2 percent; compact equipment +5 percent; services +9 percent), as well as strong performance in Europe (+5 percent) and the Americas (+7 percent).
• Poor weather conditions and the resulting weak first quarter had an impact on profit in the first half of 2013: EBIT fell 18 percent to EUR 40 million (EBIT margin: 6.9 percent). EBITDA dropped 8 percent to EUR 70 million (EBITDA margin: 11.9 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: EUR appr. 1.1 billion) and the EBITDA margin to exceed 13.0 percent (2012: 13.0 percent). Wacker Neuson remains committed to its strategy and intends to increase its presence in core markets and continue as planned with its expansion measures.

02

| 19

| 04 Letter from the CEO

Group Management Report

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 Review Report
• | 29 Financial Calendar/IR Contact

Cem Peksaglam CEO

Dear Ladies and Gentlemen,

The predictions we made in May of this year proved correct – the second quarter was a successful period for Wacker Neuson. The overall mood at the world's largest construction equipment trade show, bauma, in April of this year was positive, and this buoyant atmosphere translated into increased sales for us. Revenue for the second quarter amounted to EUR 329 million, a rise of 16 percent relative to the previous year. Our strong performance saw us rapidly make up for the drop in revenue during the first quarter. A quarter-on-quarter comparison is even more favorable, revealing a 28 percent rise in Q2 revenue relative to Q1 2013.

At EUR 586 million, revenue for the first half of 2013 was five-percent higher than the previous year's figure. This clearly reverses the Q1 trend, where we reported a drop of 6 percent. We are proud of these achievements, especially in light of the current volatile environment. Our revenue figures for the first half year and the second quarter represent new record highs for the Group.

We also improved our profit margins during the second quarter of the year. The EBITDA margin increased to 13.6 and the EBIT margin rose from just 4.3 percent in the first quarter to 8.9 percent in the second.

All business segments contributed to our success in the second quarter, reporting double-digit revenue growth on the previous year. The light equipment segment achieved revenue growth of 12 percent relative to the previous year. Order intake increased markedly after the close of bauma. Revenue from compact equipment, which we are increasingly distributing to markets outside of Europe, rose by 19 percent. Revenue from the services segment rose 14 percent. This was primarily down to the expansion of our repair and spare parts offering as well as dynamic used equipment sales.

In Europe, we managed to grow a further 16 percent from what was already a healthy baseline. This underscores the strong competitive position of our products and the effectiveness of our highperformance organization.

During the second quarter, severe flooding in Germany, Austria and parts of Eastern Europe caused major damage to buildings and infrastructure in these regions. Fortunately, our own companies in these regions were unaffected by the floods. Our employees, however, were involved in rebuilding efforts in many locations. Wacker Neuson provided machines and equipment free-of-charge to communities and aid organizations in the regions affected by the floods. Our trash water pumps, dehumidifiers, light towers, excavators and wheel loaders proved particularly useful here. Rebuilding work will continue throughout the course of the year.

In the Americas, we were able to further strengthen our market position in the construction industry and other target markets such as the industrial and energy sectors. We are benefitting from crossselling across our product segments and from diversifying into different markets.

In the first half of the year, market conditions in the European agricultural sector were much more challenging than in the previous year. Falling agricultural prices and poor harvests made landholders more reluctant to invest. As a result, revenue from agricultural equipment did not meet our expectations. However, the trend toward investing in efficient stable and yard equipment continues. Cuts in state subventions are reducing willingness to invest in renewable energies such as biogas and solar power.

Stronger sales led to an increase of working capital. This was primarily due to the rise in receivables resulting from more of our customers taking advantage of our financing offers. As such, we will be working more closely with global financing partners to support sales financing in future. Our sales affiliates made targeted efforts to reduce stock, which enabled us to reduce inventory as planned in the second quarter. The working capital to revenue ratio improved to 37 percent due to the rise in revenue. Investments were down on the previous year, which led to positive free cash flow of EUR 21 million in the second quarter.

Our corporate strategy has kept us on course during economic boom times and in these more recent challenging and increasingly competitive times. We will therefore continue with our plans to increase core market penetration and expand into new markets, focusing on profitable growth at every step and not simply expansion for expansion's sake.

Order intake for the first half of the year was up by double figures on the previous year. We therefore remain confident that we will achieve our forecast for 2013 as a whole. We expect revenue to increase to around EUR 1.2 billion and the EBITDA margin to total at least 13 percent.

Building on the truly remarkable efforts of all employees at Wacker Neuson, I firmly believe that we can master the challenges that lie ahead. I would also like to extend my sincere thanks to our shareholders for their trust and loyalty.

Best regards,

Cem Peksaglam CEO Wacker Neuson SE

Group Management Report

Economic and business trends

Between recession, stagnation and growth

During the first six months of 2013, overall economic conditions remained challenging. The global economy did pick up somewhat, however, and industrial production and world trade also rose.

Economic growth in emerging countries, however, slowed. During the second quarter of 2013, emerging economies grew by a total of around just four percent. This is significantly lower than the average value for the previous ten years, which was around seven percent.

Spain managed to slow its economic downturn in the second quarter of 2013. According to the latest figures extrapolated by the European Central Bank, the country's economic output was only marginally lower than in the first quarter. For the period from January through March, the drop was 0.5 percent. Despite this slight upturn, the eurozone's fourth largest economy is still in recession and has been since the end of 2011.

The German economy received important growth impetus from the industrial and construction sectors. After the weak start to 2013, which was caused by poor weather conditions, the economy expanded significantly during the second quarter. Some of this growth, however, is attributable to overdue projects that had been put on hold during Q1.

Governments in developed countries are still having problems balancing their budgets. Attempts to reduce budget deficits are being hampered by weak and in some cases dwindling economic performance in some 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 expected as a result of the

crisis. This continues to curb economic activity, although there are several signs in the US that this situation is starting to ease.

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.

Trends in construction and agricultural markets

Visible recovery following dampened first quarter of 2013

Demand for construction equipment during the first six months of 2013 was characterized by government austerity measures and weak economic growth. Non-residential construction was affected by the general reluctance to invest on the part of companies. The downturn in public construction was primarily due to economic recovery packages coming to an end. Customers delayed investments in new machinery due to economic uncertainties and the long winter in the northern hemisphere.

Fortunately, this situation improved in the second quarter of 2013 with the start of the construction season. This could also be seen in April of this year in the overall positive atmosphere at the bauma trade fair, the most important event worldwide in the construction industry calendar.

The German construction industry also reported strong growth during the second quarter, making up for the slow start to the year caused by poor weather conditions. Capacity utilization and activity also increased. According to the Federation of the German Construction Industry, the number of permits for new apartments increased by 15 percent during the first five months of the year.

Purchasing bonds is a means of boosting economic activity for central banks that have already significantly reduced their prime rates.

In Germany and Eastern Europe, flooding caused major damage to buildings and infrastructure during the second quarter. This will necessitate increased construction activity during the course of the year.

The housing market and the number of building permits issued had been developing positively in the US. A rise in interest rates caused these figures to drop somewhat in June. The overall trend, however, remains positive. No positive momentum was evident in the all-important infrastructure sector, however. The US construction sector developed positively overall during the first half-year, although it remains far below the high levels of 2006.

Construction activity slowed in the Asia-Pacific region, with demand in China down on the previous year.

Nevertheless, Wacker Neuson was able to increase its volume of business thanks to its strong position in many markets.

Agricultural sector remains 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 general competitive situations. The financial situation on agricultural holdings is influenced by a range of factors, including income (which itself depends on variables such as harvests) and the prices of energy, fertilizer, feed and leasing agreements. Landholders were already starting to delay major investments back in 2012. Weather conditions also had a negative impact on harvests in the first half of 2013, in particular the flooding in Germany, Austria and Eastern Europe.

Business trends and highlights from the first half-year

Six-month revenue reaches new record high

Despite the challenging overall economic conditions, Wacker Neuson's performance improved during the first half of 2013, with business developing particularly well during the second quarter of the year. The Group benefitted from its strategy to leverage sales synergies for the global distribution of products and from its diversification into different markets.

During the first six months of 2013, revenue increased 5.0 percent to EUR 586.1 million (H1 2012: EUR 558.1 million). At EUR 329.0 million, revenue for the second quarter increased by an impressive 15.8 percent on the previous year (Q2 2012: EUR 284.2 million). This strong performance enabled the Group to quickly make up for the drop in revenue in Q1 2013, which was caused by poor weather conditions and customers, primarily in Central Europe, delaying investments until the start of the bauma trade show in April. The quarter-on-quarter results are even more positive. Revenue for the second quarter was 28.0 percent above the first (Q1 2013: EUR 257.1 million). The company reported record revenue for the second quarter and the first half-year of 2013.

Around 530,000 people from all over the globe came to the bauma 2013 trade fair in April. The Group showcased a wide range of new products over an area of 6,000 m2 . The trade show is held every three years and was a resounding success for Wacker Neuson. This was reflected in the positive feedback from industry players and in the revenue generated during the show, which was significantly higher than during the last bauma in 2010.

From a geographical perspective, revenue in the first six months of the year was up in Europe and the Americas. Revenue in Asia-Pacific remained on a par with the previous year. This was primarily due to dampened markets in Australia and New Zealand.

From July 23 through 25, 2013, Wacker Neuson showcased its broad portfolio of products to industry specialists at the demopark exhibition. Held every two years, demopark is Europe's largest open-air exhibition for professionals in the park maintenance, gardening and landscaping sectors and municipal bodies. The event attracted around 36,000 industry players. Visitors had the opportunity to view a range of new products under the Wacker Neuson and Kramer brands. The Group also showcased its new ECO seal for particularly economic and environmentally friendly products.

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 services segment, which reported a 9.2 rise in revenue. This was followed by a 5.0 rise in the light equipment segment and an increase of 2.3 percent in compact equipment segment (figures before cash discounts).

Earnings did not fully compensate for the downturn during the first quarter. The competitive situation on the markets remains tense. The EBITDA margin1 for the first six months of 2013 totaled 11.9 percent (H1 2012: 13.6 percent). The EBIT margin2 amounted to 6.9 percent (H1 2012: 8.8 percent).

During the second quarter of 2013, the Group had to absorb the costs for bauma 2013. Despite this, the Group's EBITDA margin increased on the previous year at 13.6 percent (Q2 2012: 13.1 percent). The EBIT margin also increased to 8.9 percent (Q2 2012: 8.0 percent).

At June 30, 2013, gearing3 amounted to 27.9 percent. With an equity ratio before minority interests of 65.5 percent at the closing date, the assets remain strong. For further details, refer to the "Financials and assets" section.

2013 AGM

At the AGM held in Munich on May 28, 2013, CEO Cem Peksaglam informed around 220 Wacker Neuson SE shareholders about the previous fiscal year and business developments during the first quarter of 2013.

Based on a share capital of 70,140,000 shares, 82.1 percent of shareholders with voting rights were present. Shareholders approved a proposal by the Executive Board and the Supervisory Board to pay out around 39 percent of Group profit for 2012 as dividends for fiscal 2012. In total, the company paid out EUR 21.0 million, which corresponds to a dividend per share of EUR 0.30 (2012: EUR 0.50).

1 EBITDA margin = EBITDA/revenue. 2 EBIT margin = EBIT/revenue. 3 Gearing = net financial debt/equity ratio before minority interests.

The Executive Board and the Supervisory Board at the AGM on May 28, 2013 in Munich.

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 investor conferences and roadshows in Germany and abroad.

Although the capital markets developed positively overall, the share values of some construction equipment manufacturers did not perform as strongly. The Wacker Neuson share made good headway at the beginning of the year. Starting 2013 at EUR 10.51, the share peaked at EUR 12.48 on March 20, 2013. At the end of the reporting period (June 30, 2013), it closed at EUR 10.35. This corresponds to a drop of around 1.5 percent since the start of the year. The share thus performed below the SDAX (+8.6 percent) and the DAX (+2.3 percent) over the same period. Market capitalization amounted to EUR 725.9 million at the closing date (70,140,000 shares).

Share price trends January through July 2013

Profit, financials and assets

Revenue and earnings1

Revenue up on previous year

At EUR 257.1 million, revenue for the first quarter of 2013 took a 6.2-percent drop compared to the prior-year period (Q1 2012: EUR 274.0 million). However, demand picked up significantly during the second quarter as the construction season got underway.

Revenue for the second quarter thus rose to EUR 329.0 million (Q2 2012: EUR 284.2 million). This corresponds to a 15.8 percent rise on the prior-year quarter. Part of this increase is attributable to overdue orders that had been put on hold during the first quarter. The harsh winter in the northern hemisphere delayed construction activity here during this period. Customers were also waiting for the bauma trade show in Munich, which meant that orders and deliveries were not made until the second quarter.

Revenue Q2/H1 2013 and 2012 in € million

Q2/2013	329.0
Q2/2012	284.2
H1/2013	586.1
H1/2012	558.1

The second quarter more than made up for the drop in revenue in the first, with Group revenue for the first six months of the year increasing 5.0 percent to EUR 586.1 million (H1 2012: EUR 558.1 million). Adjusted to discount currency fluctuations, this corresponds to an increase of 5.8 percent.

¹ Earnings 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 will continue to have an – albeit diminishing – impact on balance sheet earnings into 2013.

Manufacturing costs rose 5.7 percent to EUR 411.3 million in the first half of 2013 (H1 2012: EUR 389.3 million) due to the upturn in sales.

Gross profit for the period under review totaled EUR 174.7 million (H1 2012: EUR 168.9 million). This corresponds to an increase of 3.5 percent. The gross profit margin amounted to 29.8 percent (H1 2012: 30.3 percent). Markets were rather competitive during the reporting period. In addition, the sharp rise in revenue from compact equipment resulted in higher manufacturing costs, although this segment also generates fewer sales costs than light equipment. In the second quarter, the gross profit margin rose to 30.3 percent (Q2 2012: 29.5 percent).

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

The rise in the volume of business in H1 2013 was accompanied by an increase in selling expenses, R&D and administrative costs. Their relative share of revenue amounted to 23.2 percent (H1 2012: 22.0 percent).

Selling expenses rose 12.1 percent in the first six months of the year to EUR 87.6 million (H1 2012: EUR 78.2 million). This figure reflects the additional expenses related to the bauma trade fair. The Group also made targeted efforts to strengthen its international sales team.

R&D costs amounted to EUR 14.0 million, a rise of 8.0 percent (H1 2012: EUR 13.0 million).

General administrative costs amounted to EUR 34.5 million (H1 2012: EUR 31.7 million). Administrative costs thus accounted for 5.9 percent of revenue, which is roughly the same as the previous year (H1 2012: 5.7 percent).

Key profit indicators

Profit before interest, tax, depreciation and amortization (EBITDA) fell 8.4 percent to EUR 69.7 million (H1 2012: EUR 76.1 million) in the first half year. This primarily due to the difficult start to the year. The EBITDA margin was at 11.9 percent (H1 2012: 13.6 percent).

EBITDA Q2/H1 2013 and 2012 in € million

Q2/2013			44.9
Q2/2012			37.3
H1/2013			69.7
H1/2012			76.1

Despite the impact of one-off expenses from the bauma trade fair on Q2 figures, the Group's EBITDA rose 20.4 percent to EUR 44.9 million in the second quarter of 2013 (Q2 2012: EUR 37.3 million). The EBITDA margin came in at 13.6 percent (Q2 2012: 13.1 percent). At the close of Q1 2013, the EBITDA margin was just 9.7 percent.

Development H1 2008 – 2013 of revenues and EBITDA margin Revenue in € million

EBITDA margin as a %

			Change			Change
in € million	Q2/2013	Q2/2012	as a %	H1/2013	H1/2012	as a %
Revenue	329.0	284.2	15.8	586.1	558.1	5.0
Gross profit margin as a %	30.3	29.5	0.8 PP	29.8	30.3	-0.5 PP
EBITDA	44.9	37.3	20.4	69.7	76.1	-8.4
EBITDA margin as a %	13.6	13.1	0.5 PP	11.9	13.6	-1.7 PP
EBIT	29.3	22.8	28.5	40.4	49.2	-17.9
EBIT margin as a %	8.9	8.0	0.9 PP	6.9	8.8	-1.9 PP
EBT	27.5	20.8	32.2	36.8	45.6	-19.3
Profit for the period	18.5	13.8	34.1	24.9	30.9	-19.4

Key figures

Development Q2 2008 – 2013 of revenues and EBITDA margin Revenue in € million

Q2/2013	13.6	329.0
Q2/2012	13.1	284.2
Q2/2011	17.1	266.9
Q2/2010	13.2	205.3
Q2/2009	8.6	156.5
Q2/2008	13.8	244.2

EBITDA margin as a %

Depreciation and amortization totaled EUR 29.3 million for the first six months of 2013 (H1 2012: EUR 27.0 million). This figure was EUR 15.6 million for the second quarter (Q2 2012: EUR 14.5 million).

Profit before interest and tax (EBIT) totaled EUR 40.4 million during the first half of 2013 (H1 2012: EUR 49.2 million).1 The EBIT margin amounted to 6.9 percent (H1 2012: 8.8 percent). In the second quarter it was 8.9 percent (Q2 2012: 8.0 percent). At the close of Q1 2013, the EBIT margin was just 4.3 percent.

Group profit is hardly affected by exchange rate fluctuations arising from the international flow of goods due to natural currency hedging, in particular with regard to the euro/US dollar. In the first six months of 2013, the average euro/dollar exchange rate was EUR 1 to USD 1.31 (H1 2012: EUR 1 to USD 1.30). The Group uses derivative financial instruments to hedge other currencies.

At EUR -3.5 million, the financial result remained at the same level as the prior-year period.

Profit before tax (EBT) amounted to EUR 36.8 million in the first half of 2013 (H1 2012: EUR 45.6 million). Tax expenditure totaled EUR 11.7 million (H1 2012: EUR 14.4 million). The tax rate was thus 31.8 percent (H1 2012: 31.5 percent).

At EUR 24.9 million, profit for the first six months of 2013 decreased from the previous year's figure of EUR 30.9 million. This figure was affected by the difficult first quarter, which saw profit fall 37.6 percent relative to the previous year. Earnings per share for the first half of 2013 amounted to EUR 0.36 (H1 2012: EUR 0.44) based on 70.14 million ordinary shares.

In contrast, profit for the second quarter of 2013 increased 34.1 percent on the previous year to EUR 18.5 million (Q2 2012: EUR 13.8 million). As a result, quarterly earnings per share increased to EUR 0.26 (Q2 2012: EUR 0.20).

Financial position

Positive free cash flow in second quarter

Cash flow from operating activities totaled EUR 31.6 million at the close of June 2013 (H1 2012: EUR -8.8 million) and was thus clearly positive. Before investments in working capital2 , cash flow from operating activities totaled EUR 61.5 million. The Group generated operating cash flow of EUR 51.9 million in the second quarter alone (Q2 2012: EUR 22.8 million).

Cash flow from investment activities came to EUR -49.6 million in the first six months of 2013 (H1 2012: EUR -59.1 million) and EUR -30.6 million in the second quarter (Q2 2012: EUR -31.8 million). The Group made scheduled investments in the amount of EUR 51.4 million. EUR 44.9 million of this was channeled into property, plant and

Financial position

in € K	Q2/2013	Q2/2012	H1/2013	H1/2012
Cash flow from operating activities	51,948	22,829	31,634	-8,804
Cash flow from investing activities	-30,560	-31,781	-49,578	-59,103
Free cash flow	21,388	-8,952	-17,944	-67,907
Cash flow from financing activities	-25,693	-13,590	14,393	63,769
Change in cash and cash equivalents due to consolidation	385	82	530	-123
Change in cash and cash equivalents	-3,920	-22,460	-3,021	-4,181
Cash and cash equivalents at beginning of period	19,766	35,169	18,867	16,890
Cash and cash equivalents at end of period	15,846	12,709	15,846	12,709

¹ Purchase price allocation (PPA) reduced EBIT by EUR 1.7 million (H1 2012: EUR 2.3 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 is allocated to the Neuson Kramer subgroup.

² Working capital = inventory + trade receivables - trade payables.

equipment. This included maintenance work as well as investments in the expansion of international sales and the Group's own rental fleet. Investments during the first half-year were down on the prior-year period. Investments, however, remained higher than write-downs.

At the close of June 2013, free cash flow totaled EUR -17.9 million (H1 2012: EUR -67.9 million). Cash flow from operating activities in the second quarter was higher than cash flow from investment activities. This resulted in positive free cash flow of EUR 21.4 million (Q2 2012: EUR -9.0 million).

If there are any changes to the consolidation structure, they were described in more detail in the Notes.

During the first six months of 2013, cash flow from financing activities totaled EUR 14.4 million (H1 2012: EUR 63.8 million). This figure reflects the dividend payout in the amount of EUR 21.0 million (Q2 2012: EUR 35.1 million). In the prior-year period, the Schuldschein loan agreement generated extra funds and resulted in a higher cash flow from financing activities.

Comfortable liquidity situation

As planned, liquidity fell from EUR 18.9 million at the start of the year to EUR 15.8 million at June 30, 2013.

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 37 percent of funds available through credit lines, providing it with sufficient financial headroom. The Group continues to demonstrate healthy and stable levels of liquidity. This healthy position was also acknowledged by the Deutsche Bundesbank, which confirmed that the Group was eligible for credit.

Assets

Assets in stable position and high equity ratio

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

After the first six months of the year, the balance sheet again shows that Group assets remain strong. The balance sheet total rose to EUR 1,393.9 million at June 30, 2013 (December 31, 2012: EUR 1,344.8 million; June 30, 2012: EUR 1,323.6 million).

Assets increased to EUR 758.8 million (December 31, 2012: EUR 746.5 million; June 30, 2012: EUR 742.5 million). The value of finished products decreased slightly to EUR 236.8 million (December 31, 2012: EUR 237.7 million). However, it rose 11.2 percent on the prior-year period (June 30, 2012: EUR 213.0 million).

Inventory was reduced by 5.9 percent to EUR 338.8 million (December 31, 2012: EUR 360.1 million) in line with the working capital strategy. The sales affiliates in particular made targeted efforts to reduce stock levels. In the second quarter of 2013, inventory dropped 8.1 percent on the first quarter of 2013 (Q1 2013: EUR 368.5 million), but remained slightly above the previous year's figure (June 30, 2012: EUR 327.6 million).

Trade receivables grew to EUR 210.3 million since the start of the year (December 31, 2012: EUR 147.8 million; June 30, 2012: EUR 176.3 million). This increase is due on one hand to the increase in revenue and on the other to the financing conditions used by our customers. In certain cases, Wacker Neuson provides customers with longer payment terms in line with standard industry practices.

in € K	Jun. 30, 2013	Dec. 31, 2012	Change as a %	Jun. 30, 2012	Change as a %
Total non-current assets	805,322	790,207	1.9	777,787	3.5
Total current assets	588,540	554,598	6.1	545,765	7.8
Total assets	1,393,862	1,344,805	3.6	1,323,552	5.3
Equity before minority interests	913,042	914,658	-0.2	902,680	1.1
Total non-current liabilities	205,928	207,138	-0.6	200,636	2.6
Total current liabilities	271,193	219,509	23.5	216,968	25.0
Minority interests	3,699	3,500	5.7	3,268	13.2
Total liabilities	1,393,862	1,344,805	3.6	1,323,552	5.3

Assets, equity and liabilities

We will be working more closely with global players in the sales financing business in the future to minimize any risks that these transactions may pose for the Group.

Total current assets rose to EUR 588.5 million (December 31, 2012: EUR 554.6 million; June 30, 2012: EUR 545.8 million).

Group equity before minority interests totaled EUR 913.0 million at the close of June 2013 (December 31, 2012: EUR 914.7 million; June 30, 2012: EUR 902.7 million). At 65.5 percent, equity ratio remained high for the industry (December 31, 2012: 68.0 percent; June 30, 2012: 68.2 percent). The company's share capital remained unchanged at EUR 70.14 million.

Non-current liabilities were posted at EUR 205.9 million (December 31, 2012: EUR 207.1 million; June 30, 2012: EUR 200.6 million). Due to an increase in production volumes, trade payables rose to EUR 62.4 million (December 31, 2012: EUR 51.1 million; June 30, 2012: EUR 67.7 million). Shortterm borrowings were up during the first half of the year. This was primarily due to the rise in short-term receivables. As such, total current liabilities amounted to EUR 271.2 million (December 31, 2012: EUR 219.5 million; June 30, 2012: EUR 217.0 million).

Improved working capital to revenue ratio

The increase in receivables resulting from the rise in revenue caused working capital to grow by 6.5 percent to EUR 486.7 million (December 31, 2012: EUR 456.8 million). This corresponds to a rise of 11.6 percent relative to the previous year (June 30, 2012: EUR 436.2 million).

The higher revenue figures also caused the working capital to revenue ratio based on annualized Q2 2013 revenue to improve to 37.01 percent and was thus below the equivalent ratio for the previous year (Q2 2012: 38.42 percent). In the first quarter of 2013, this figure was 48.9 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 June 30, 2013, net financial debt3 had increased to EUR 254.7 million since the start of the year (December 31, 2012: EUR 214.2 million; June 30, 2012: EUR 195.1 million). This rise was planned and is lower than the figure at the close of the first quarter of 2013 (EUR 257.0 million).

Gearing (net financial debt as a percentage of equity before minority interests) totaled around 27.9 percent at the closing date. The Group's financing structure thus remains strong for the industry.

Net financial position in € K Jun. 30, 2013 Dec. 31, 2012 Jun. 30, 2012 Long-term borrowings -134,377 -134,807 -134,600 Short-term borrowings -135,731 -97,853 -72,807 Current portion of long-term borrowings -431 -437 -430 Cash and cash equivalents 15,846 18,867 12,709 Total -254,693 -214,230 -195,128

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).

We utilize off-balance-sheet financing instruments to a limited extent in the form of return obligations and guarantees vis-à-vis our financing partners.

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: 436.2/(284.2x4) = 38.4 percent.

Note on calculation: 486.7/(329.0x4) = 37.0 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.

Segment reporting

The Wacker Neuson Group supplies 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 half of 2013, all regions and business segments developed positively. The Americas was the main growth driver among the regions although Europe was also able to build on its already strong position. On the product side, revenue from the compact equipment segment grew faster than light equipment revenue. The services segment reported above-average growth.

Results for Europe, the Americas and Asia-Pacific

25.8 Americas (25.3) 3.2 Asia-Pacific (3.3) 71.0 Europe (71.4)

Revenue growth in core market Europe

At 71.0 percent, Europe accounts for the lion's share of Wacker Neuson revenue (H1 2012: 71.4 percent of total revenue). Despite difficult market conditions in Europe, Wacker Neuson reported revenue of EUR 416.3 million in the first six months of 2013, a solid 4.5 percent increase on the previous year (H1 2012: EUR 398.5 million). The intense competitive landscape together with the costs of the bauma trade show in April impacted on profit for the region. Profit before interest and tax (EBIT) amounted to EUR 22.8 million (H1 2012: EUR 29.8 million).

Europe H1 2013 and 2012 in € million

Demand for light and compact equipment from Wacker Neuson increased markedly during the second quarter. At EUR 237.0 million, revenue for the Europe region rose 16.5 percent on the previous year (Q2 2012: EUR 203.5 million). The light equipment, compact equipment and services segments all reported double-digit gains in the region. These positive figures more than compensated for the 8.0 percent drop in revenue during the first quarter (Q1 2013: EUR 179.3 million).

Wacker Neuson saw revenue rise in almost all European countries during the second quarter. Central Europe, Scandinavia and Eastern Europe developed particularly well here. Poland was the only country that experienced a slight drop in equipment – however this follows on from two years of above-average growth. Wacker Neuson does not own Group companies in crisis countries such as Portugal, Greece or Ireland.

Above-average growth in the Americas

Revenue in the Americas was 7.1 percent above the previous year at EUR 151.2 million (H1 2012: EUR 141.2 million). This rise was fueled by positive economic activity in North America and strong growth in regions throughout South America. Profit before interest and tax (EBIT) amounted to EUR 13.6 million (H1 2012: EUR 21.6 million). Adjusted to reflect exchange rate fluctuations, this corresponds to a rise in revenue of 8.3 percent. At 25.8 percent, the region's share of revenue increased slightly on the previous year (H1 2012: 25.3 percent).

Revenue developed well during the second quarter, increasing 16.2 percent on the previous year to EUR 81.7 million (Q2 2012: EUR 70.3 million).

The expansion of our sales network to incorporate the distribution of compact equipment in the Americas is paying increasing dividends here. Demand for our products was particularly high in the US, Canada, Mexico and Chile.

Asia-Pacific maintains previous year's level

Revenue for the first six months of the year in the Asia-Pacific region amounted to EUR 18.6 million and thus remained at the same level as the previous year (H1 2012: EUR 18.5 million). Profit before interest and tax (EBIT) amounted to EUR 0.3 million (H1 2012: EUR 1.4 million). The region's share of revenue remained almost constant at 3.2 percent (H1 2012: 3.3 percent).

Asia-Pacific H1 2013 and 2012 in € million

Revenue

H1/2013	18.6
H1/2012	18.5

EBIT

H1/2013													0.3
H1/2012													1.4

Asia-Pacific is an important growth market for Wacker Neuson. Demand for high-quality products is steadily rising here. China and India, in particular, are key future markets for us. 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.

Growth in China and Southeast Asia was offset by reticence among important customers in Australia and New Zealand.

Emerging markets1 accounted for 12.2 percent of total revenue in the first six months of the year (H1 2012: 11.3 percent).

Results for the light equipment, compact equipment and services segments

Revenue by business segment H1 2013 as a % (previous year)

Rising demand for light equipment

The light equipment business segment covers the Wacker Neuson Group's 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	Q2/2013	Q2/2012	H1/2013	H1/2012
Segment revenue
Light equipment	120,638	107,458	214,307	209,462
Compact equipment	145,679	122,178	262,281	249,691
Services	66,857	58,557	116,559	106,775
	333,174	288,193	593,147	565,928
Less cash discounts	-4,207	-4,042	-7,081	-7,788
Total	328,967	284,151	586,066	558,140

Demand for light equipment rose in the first half of 2013. At the close of June 2013, revenue from the light equipment segment rose 2.3 percent to EUR 214.3 million (H1 2012: EUR 209.5 million). This corresponds to a 36.1 percent share of overall revenue (H1 2012: 37.0 percent). Segment revenue for the second quarter increased to EUR 120.6 million and was thus 12.2 percent above the previous year (Q2 2012: EUR 107.5 million) and 28.8 percent above the first quarter of 2013 (Q1 2013: EUR 93.7 million).

In the first half of 2013, we unveiled a wide range of new products at the bauma trade show.

The EH 100 breaker was a particular highlight and a world-first in the field of demolition. It delivers 100 joules of single stroke impact – a huge amount of power for an electric breaker – yet weighs just 32 kilograms, giving it an outstanding power/weight ratio. One of the standout features of the EH 100 is its full-hood spring mounting concept. This feature 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 low 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. The compaction display enables users to reliably assess the level of compaction. It features eight LED lights that light up while the operator is working to show the current stage of compaction.

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 Group also unveiled two new innovations in lighting technology at bauma 2013. 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.

Further 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 249.7 million in the previous year to EUR 262.3 million in the first half of 2013. This corresponds to a rise of 5.0 percent. Demand for compact equipment developed particularly well in the UK, Norway, Turkey, South Africa and North and South America.

In the second quarter, segment revenue increased 19.2 percent on the previous year. It should be noted, however, that 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 here.

Overall, the compact equipment segment's share of total revenue remained more or less constant at 44.2 percent during the period under review (previous year: 44.1 percent).

Our customers continue to place orders at short notice. As such, our mid-term forecasts are restricted to a period of three to four months. It is therefore crucial that these shortterm orders are delivered as quickly as possible. This trend should be taken into consideration when comparing the current order situation with the situation last year.

Accumulated order intake for compact equipment for the construction and agricultural sectors in the last six months was 14 percent up on the previous year. Order intake for June 2013 also showed a two-digit increase on June 2012.

Economic uncertainty and falling agricultural prices for grain, pork and beef have dampened the mood among agricultural landholders over recent months. This trend was reflected in revenue generated by agricultural equipment at the Group, which fell 10.6 percent to EUR 83.3 million in the first half year (H1 2012: EUR 93.1 million). We expect business here to improve during the second half of the year.

Compact equipment for the agricultural sector accounted for 14.0 percent of total Group revenue at the closing date (H1 2012: 16.5 percent). Demand for our innovative Weidemann- and Kramer-branded machines, which are primarily used for yard work, continues to be fueled by a growing need to raise efficiency and productivity levels across the agricultural sector.

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

As with light equipment, Wacker Neuson also showcased a wealth of innovative compact equipment at bauma 2013.

The company unveiled an alternative drive concept for compact equipment for the first time at the show. The new dual power drive is designed for use with the Group's smallest 803 excavator. The external, plug & play electrohydraulic drive can be connected to the excavator and used as an alternative power source to the diesel engine. This cost-effective option turns the 803 into a zero-emissions powerhouse on any construction site. The 803 delivers full power in zero-emissions mode. In addition, the unit delivers enough cooling power for the 803 to be operated in temperatures of up to 45°C, making with the first excavator in this weight class with this capability.

Wacker Neuson has also expanded its Zero Tail range of machines to include the EZ17 – the company's newest and smallest Zero Tail model in the 1- to 2-ton weight class. The EZ17 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. The load-sensing hydraulic system with variable displacement pump enables smooth, harmonious, precision-controlled excavator arm movements, ensuring powerful, economic operation and optimum payload capacity over any given time slot. Regardless of the load and job at hand, Wacker Neuson's EZ17 is easy to use and enables operators to work with extreme precision right from the first touch.

At bauma 2013, Wacker Neuson launched the compact WL 20 wheel loader. The new addition brings the Group's wheel loader range to nine models: WL 20, WL 25, WL 30, WL 36, WL 37, WL 48, WL 50, WL 55 and WL 57. The WL 57 is the most powerful machine in the range. 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.

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 rental in Central Europe, the global repair and spare parts business and the reconditioned equipment business (for example, the European used equipment center in Gotha). Due to increased construction activity and the enhanced portfolio, segment revenue before cash discounts rose 9.2 percent to EUR 116.6 million in the first half of 2013 (H1 2012: EUR 106.8 million). The segment's relative share of total revenue thus grew to 19.7 percent (H1 2012: 18.9 percent).

Other factors that impacted on results

Headcount remains constant in 2013

At the interim closing date, Group headcount came to 4,093 (December 31, 2012: 4,096; June 30, 2012: 3,907)1 .

Research and development activities secure leading position

Wacker Neuson is a global technology leader in the manufacture of construction equipment. Over half of revenue generated by Wacker Neuson 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 vibrationreduction 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 of working in these areas and place a particularly high priority on our activities 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 here from its decision to continually invest in its R&D activities. Research and development currently accounts for 2.4 percent of revenue (H1 2012: 2.3 percent).

Changes to the opportunity and risk situation

In the first half 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 to 110 and in the Outlook section of this interim management report.

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.

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 IMF1 , the global economy is set to grow by around 3 percent in 2013. China is set to be the biggest growth driver again, contributing around 1.2 percent to global economic growth. India, Russia, Brazil and Mexico will also fuel further growth. Although there is a chance of the Chinese economy slowing somewhat, the country is still set to expand further from its already strong position. European economies that are well-positioned to export to importing Asian markets will profit from this trend. European companies have a strong competitive position in global markets and are continually increasing their presence in fast-growing emerging countries.

Experts now expect a slow but positive turnaround in the euro zone. Spain, Italy and Portugal are expected to remain in recession for the present, however. Should this be the case, the GDP of the euro zone would shrink once more by 0.6 percent in 2013.

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 crises will not escalate again. This means that uncertainties remain, and these are causing many companies to postpone major investment projects. It is unlikely therefore that we will see a turnaround driving strong investment momentum in the near future.

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 decision of many individuals to invest in property. It is still unclear as to whether the economy will continue along this upward path in the second half of the year. Experts predict that growth will slow somewhat during the course of the summer.

In light of these developments, companies tend to remain as flexible as possible to meet any challenges that may arise.

Construction industry is important pillar in global economy

Emerging markets in particular will be investing heavily in infrastructure over the coming years. China, India and Brazil 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 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. Economic uncertainties could, however, dampen willingness to invest in construction equipment. Cuts in government spending are compounding this situation.

Cautious outlook for European agricultural sector

Experts remain cautious about prospects for agricultural technology and the European agricultural industry in 2013. However, 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, while planned investments in renewable energy such as biogas or solar power are currently on the wane. Rising agricultural prices should bolster landholders' income – a factor which, in turn, should further fuel demand for Weidemann- and Kramer-branded equipment.

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. The market environment in Europe is set to remain difficult in the short term. Nevertheless, 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 concrete sales potential, for example, in emerging markets such as South America, Eastern Europe and Asia.

Confirmation of forecast for 2013

The uncertainties described above can cause results to change at any time, thus making it difficult for companies to post accurate predictions.

Based on current business trends as well as our solid order situation and positive signs from our sales markets, in particular the optimistic outlook for the Americas for the second half of the year, we can confirm our forecast for fiscal 2013. We expect revenue to increase to around EUR 1.2 billion (2012: EUR 1,091.7 million) and the EBITDA margin to total at least 13.0 percent (2012: 13.0 percent).

We continue to keep strict control over costs and have implemented cost-saving measures to increase profit. The first months of this year were marked by a number of one-off effects. We therefore expect profit to rise in the second half of the year, provided that no unexpected disruptions occur.

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 put our margins slightly below the record levels we achieved in 2011. However, we view this as a vital investment in our future growth. We will be investing up to EUR 80 million in total over the course of this fiscal year (2012: EUR 104.0 million). This reduction in investments relative to the previous year will significantly boost free cash flow.

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 66 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, August 1, 2013 Wacker Neuson SE

The Executive Board

Cem Peksaglam CEO

Martin Lehner CTO (Deputy CEO)

Günther C. Binder CFO

Consolidated Income Statement

April 1 through June 30 and January 1 through June 30 // Figures have been reviewed by group auditor

	Apr. 1–Jun. 30,	Apr. 1–Jun. 30,	Jan. 1–Jun. 30,	Jan. 1–Jun. 30,
in € K	2013	2012	2013	2012
Revenue	328,967	284,151	586,066	558,140
Cost of sales	-229,287	-200,203	-411,348	-389,288
Gross profit	99,680	83,948	174,718	168,852
Sales and service expenses	-46,686	-39,949	-87,621	-78,170
Research and development expenses	-6,813	-6,628	-13,993	-12,955
General administrative expenses	-15,802	-16,384	-34,492	-31,745
Other income	2,241	4,615	7,758	9,030
Other expenses	-3,321	-2,765	-5,994	-5,834
Profit before interest and tax (EBIT)	29,299	22,837	40,376	49,178
Financial income	386	271	749	617
Financial expenses	-2,176	-2,286	-4,293	-4,146
Profit before tax (EBT)	27,509	20,822	36,832	45,649
Taxes on income	-8,923	-6,862	-11,711	-14,396
Profit before minority interests	18,586	13,960	25,121	31,253
Minority interests	-104	-180	-199	-340
Profit for the period	18,482	13,780	24,922	30,913
Earnings per share in EUR (diluted and undiluted)	0.26	0.20	0.36	0.44

Consolidated Total Profit/Loss

April 1 through June 30 and January 1 through June 30 // Figures have been reviewed by group auditor

	Apr. 1–Jun. 30,	Apr. 1–Jun. 30,	Jan. 1–Jun. 30,	Jan. 1–Jun. 30,
in € K	2013	2012	2013	2012
Profit/loss before minority interests	18,586	13,960	25,121	31,253
Items not recognized in profit/loss for the period
Exchange differences1	-10,035	8,455	-5,555	6,089
Actuarial gains/losses from pension obligations2	73	0	59	0
Securing cash flows:1
Profit/loss incurred in the current period	0	16	0	16
Tax effects from items in total profit/loss for the period1	0	-5	0	-5
Items not recognized in profit/loss
for the period after tax	-9,962	8,466	-5,496	6,100
Total profit/loss for the period after tax	8,624	22,426	19,625	37,353
Of which are attributable to:
Shareholders in the parent company	8,520	22,246	19,426	37,013
Minority interests	104	180	199	340
Total profit/loss for the period after tax	8,624	22,426	19,625	37,353

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

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

Consolidated Balance Sheet

As at June 30 // Figures have been reviewed by group auditor

in € K	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012
Assets
Property, plant and equipment	398,435	386,075	381,396
Investment property	18,692	20,666	20,950
Goodwill	236,672	236,603	237,733
Intangible assets	105,046	103,178	102,383
Deferred tax assets	32,967	31,706	26,237
Other non-current assets	13,510	11,979	9,088
Total non-current assets	805,322	790,207	777,787
Inventories	338,830	360,121	327,606
Trade receivables	210,310	147,838	176,261
Current tax receivables	6,287	4,915	5,810
Other current assets	17,267	16,812	17,024
Cash and cash equivalents	15,846	18,867	12,709
Non-current assets held for sale	0	6,045	6,355
Total current assets	588,540	554,598	545,765
Total assets	1,393,862	1,344,805	1,323,552
Equity and liabilities
Subscribed capital	70,140	70,140	70,140
Other reserves	590,402	595,898	607,138
Net profit/loss	252,500	248,620	225,402
Equity before minority interests	913,042	914,658	902,680
Minority interests	3,699	3,500	3,268
Total equity	916,741	918,158	905,948
Long-term borrowings	134,377	134,807	134,600
Deferred tax liabilities	33,282	33,475	31,034
Long-term provisions	38,269	38,856	35,002
Total non-current liabilities	205,928	207,138	200,636
Trade payables	62,416	51,143	67,670
Short-term borrowings from banks	135,731	97,853	72,807
Current portion of long-term borrowings	431	437	430
Short-term provisions	11,720	12,804	14,163
Current tax payable	389	1,834	1,469
Other current liabilities	60,506	55,438	60,429
Total current liabilities	271,193	219,509	216,968
Total liabilities	1,393,862	1,344,805	1,323,552

Consolidated Statement of Changes in Equity

As at June 30 // Figures have been reviewed by group auditor

						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	30,913	30,913	340	31,253
Other income	0	0	6,089	10	0	6,099	0	6,099
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 June 30, 2012	70,140	618,661	-7,591	-3,932	225,402	902,680	3,268	905,948
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	24,922	24,922	199	25,121
Other income	0	0	-5,555	59	0	-5,496	0	-5,496
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 June 30, 2013	70,140	618,661	-20,835	-7,424	252,500	913,042	3,699	916,741

Consolidated Cash Flow Statement

April 1 through June 30 and January 1 through June 30 // Figures have been reviewed by group auditor

in € K	Apr. 1–Jun. 30, 2013	Apr. 1–Jun. 30, 2012	Jan. 1–Jun. 30, 2013	Jan. 1–Jun. 30, 2012
EBT	27.509	20.822	36.832	45.649
Depreciation and amortization	15.593	14.502	29.344	26.955
Foreign exchange result	-6.599	4.191	-3.523	3.912
Gains/losses from sale of intangible assets and property,
plant and equipment	137	547	246	-1.283
Book value from the disposal of rental equipment	2.862	1.335	5.103	2.361
Gains/losses from derivates (cash flow hedging)	0	11	0	11
Actuarial gains/losses from pension obligations	73	0	59	0
Financial result	1.790	2.015	3.544	3.529
Changes in inventories	29.697	-22.793	21.291	-51.766
Changes in trade receivables and other assets	-14.149	18.598	-56.646	-14.973
Changes in provisions	-1.388	-1.625	-1.671	-2.395
Changes in trade payables and other liabilities	7.881	-2.690	20.671	5.838
Interest paid	-1.149	-1.193	-6.090	-2.783
Income tax paid	-10.690	-11.138	-18.498	-24.396
Interest received	381	247	972	537
Cash flow from operating activities	51.948	22.829	31.634	-8.804
Purchase of property, plant and equipment	-27.078	-30.504	-44.882	-58.549
Purchase of intangible assets	-3.740	-2.202	-6.478	-4.164
Proceeds from the sale of property, plant and equipment,
intangible assets and non-current assets held for sale	258	925	1.782	3.610
Cash flow from investing activities	-30.560	-31.781	-49.578	-59.103
Dividends	-21.042	-35.070	-21.042	-35.070
Cash receipts from short-term/long-term borrowings	862	22.333	38.378	119.348
Repayments from short-term/long-term borrowings	-5.513	-853	-2.943	-20.509
Cash flow from financing activities	-25.693	-13.590	14.393	63.769
Increase/decrease in cash and cash equivalents	-4.305	-22.542	-3.551	-4.138
Change in cash and cash equivalents due to consolidation	0	0	0	80
Effect of exchange rates on cash and cash equivalents	385	82	530	-123
Change in cash and cash equivalents	-3.920	-22.460	-3.021	-4.181
Cash and cash equivalents at beginning of period	19.766	35.169	18.867	16.890
Cash and cash equivalents at end of period	15.846	12.709	15.846	12.709

Consolidated Segmentation

January 1 through June 30 // Figures have been reviewed by group auditor

Segmentation (geographical segments)

in € K	Europe	Americas	Asia-Pacific	Consolidation	Group
H1 2013
Segment revenue
Total external sales	703,350	210,499	27,610
Less intrasegment sales	-252,663	-36,615	-1,510
	450,687	173,884	26,100
Intersegment sales	-34,417	-22,659	-7,529
Total	416,270	151,225	18,571	0	586,066
EBIT	22,813	13,565	298	3,700	40,376
EBITDA	48,534	16,767	720	3,700	69,721
Net financial debt	238,763	11,641	4,289	0	254,693
Working capital	314,996	165,794	23,811	-17,877	486,724
H1 2012
Segment revenue
Total external sales	654,661	196,036	27,872
Less intrasegment sales	-219,165	-30,798	-1,579
	435,496	165,238	26,293
Intersegment sales	-37,039	-24,064	-7,784
Total	398,457	141,174	18,509	0	558,140
EBIT	29,827	21,639	1,374	-3,662	49,178
EBITDA	53,571	24,499	1,726	-3,663	76,133
Net financial debt	177,387	10,698	7,042	0	195,127
Working capital	271,018	153,237	27,921	-15,978	436,198

Revenue with non-Group companies generated by affiliates headquartered in Germany amounted to EUR K 222,372 (previous year: EUR K 233,756).

Segmentation (business segments)

	Jan. 1–Jun. 30,	Jan. 1–Jun. 30,
in € K	2013	2012
Segment revenue from external customers
Light equipment	214.307	209.462
Compact equipment	262.281	249.691
Services	116.559	106.775
	593.147	565.928
Less cash discounts	-7.081	-7.788
Total	586.066	558.140

Selected Explanatory Notes to the Interim Financial Statements for H1 2013

Accounting rules

The Wacker Neuson SE consolidated interim financial statements to June 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

At June 30, 2013 there were no 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
Q2
Quarterly earnings attributable to shareholders in € K	18,482	13,780
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)	0.26	0.20
H1
Quarterly earnings attributable to shareholders in € K	24,922	30,913
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)	0.36	0.44

Information on financial instruments

Additional information on financial instruments must be provided in this half-year 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	June 30, 2013 Fair value	June 30, 2013 Book value
Assets
Other non-current assets	13,510	13,510
Trade receivables	210,310	210,310
Other current assets	17,267	17,267
Cash and cash equivalents	15,846	15,846

in € K	June 30, 2013 Fair value	June 30, 2013 Book value
Liabilities
Long-term borrowings	134,377	134,377
Trade payables	62,416	62,416
Short-term borrowings from banks	135,731	135,731
Current portion of long-term borrowings	431	431
Other current liabilities	60,506	60,506

At June 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.

Responsibility statement

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, financials and earnings of the Wacker Neuson 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 1, 2013 Wacker Neuson SE

The Executive Board

Cem Peksaglam CEO

Martin Lehner CTO (Deputy CEO)

Günther C. Binder CFO

Review Report

To Wacker Neuson SE, Munich, Germany

We have reviewed the interim condensed consolidated financial statements, comprising the consolidated income statement, the consolidated statement of comprehensive income, the consolidated balance sheet, the consolidated statement of changes in equity, the consolidated statement of cash flows and selected explanatory notes, and the interim group management report of Wacker Neuson SE, Munich for the period from January 1 to June 30, 2013 which are part of the six-monthly financial report pursuant to Sec. 37w WpHG ["Wertpapierhandelsgesetz": German Securities Trading Act]. The preparation of the interim condensed consolidated financial statements in accordance with IFRSs on interim financial reporting as adopted by the EU and of the group management report in accordance with the requirements of the WpHG applicable to interim group management reports is the responsibility of the Company's management. Our responsibility is to issue a report on the interim condensed consolidated financial statements and the interim group management report based on our review.

We conducted our review of the interim condensed consolidated 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 [Institute of Public Auditors in Germany] (IDW). Those standards require that we plan and perform the review to obtain a certain level of assurance in our critical appraisal to preclude that the interim condensed consolidated financial statements are not prepared, in all material respects, in

accordance with IFRSs on interim financial reporting as adopted by the EU and that the interim group management report is not prepared, in all material respects, in accordance with the provisions of the WpHG applicable to interim group management reports. A review is limited primarily to making inquiries of company personnel and applying analytical procedures and thus does not provide the assurance that we would obtain from an audit of financial statements. In accordance with our engagement, we have not performed an audit and, accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IFRSs on interim financial reporting as adopted by the EU or that the interim group management report is not prepared, in all material respects, in accordance with the provisions of the WpHG applicable to interim group management reports.

Munich, August 1, 2013

Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft

Keller Schönhofer Wirtschaftsprüfer Wirtschaftsprüfer

[German Public Auditor] [German Public Auditor]

Financial Calendar

Financial Calendar 2013

August 6, 2013 Publication of half-year report 2013 September 24, 2013 Baader Investment Conference, Munich September 25, 2013 German Corporate Conference, Berenberg and Goldman Sachs, Munich September 25, 2013 German Investment Conference, UniCredit, Munich November 12, 2013 Publication of nine-month report 2013 November 13, 2013 German Equity Forum, Frankfurt

IR Contact

Contact

Wacker Neuson SE Investor Relations Preußenstraße 41 80809 München 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 anyway guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by Wacker Neuson SE and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside the Company's control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. The Company neither plans nor undertakes to update any forward-looking statements.

All rights reserved. Valid August, 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