Wacker Neuson SE — Interim / Quarterly Report 2014

May 16, 2014

Q1/2014

Wacker Neuson First quarter report

Figures at a Glance

January 1 through March 31

		Jan 1–Mar. 31,	Jan 1–Mar.
in € million		2014	31,2013	Change
Key figures
Revenue		291.6	257.1	13.4%
by region
Europe		216.1	179.3	20.5%
Americas		67.9	69.5	-2.3%
Asia-Pacific		7.6	8.3	-8.2%
by business segment1
Light equipment		94.4	93.7	0.8%
Compact equipment		141.1	116.6	21.0%
Services		59.7	49.7	20.2%
EBITDA		36.2	24.8	45.9%
Depreciation and amortization		14.1	13.8	2.7%
EBIT		22.1	11.1	99.4%
EBT		20.6	9.3	121.4%
Profit for the period		14.3	6.4	122.1%
Number of employees		4,152	4,112	1.0%
Share
Earnings per share in €		0.20	0.09	122.1%
Key profit figures
Gross profit as a %		29.4	29.2	0.2PP
EBITDA margin as a %		12.4	9.7	2.7PP
EBIT margin as a %		7.6	4.3	3.3PP
Key figures from the balance sheet	Jan 1–Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Change Mar. 31, 2013
Non-current assets	806.6	792.0	796.1	1.3%
Current assets	580.4	530.4	611.9	-5.2%
Equity before minority interests	949.7	935.5	925.6	2.6%
Net financial debt	184.8	177.2	257.0	-28.1%
Liabilities	433.2	383.1	478.9	-9.5%
Equity ratio before minority interests as a %	68.5	70.7	65.7	2.8PP
Working capital	468.7	453.1	502.4	-6.7%
Cash flow		Jan 1–Mar. 31,	Jan 1–Mar. 31,
		2014	2013	Change
Cash flow from operating activities		18.9	-20.3	–
Cash flow from investing activities		-27.7	-19.0	45.7%
Capital expenditure (property, plant and equipment and intangible assets)		28.2	20.5	37.6%
Cash flow from financing activities Free cash flow		16.2 -8.9	40.1 -39.3	-59.6% –

¹ Consolidated revenue before discounts.

All consolidated figures prepared according to IFRS.

Latest developments from the first three months of 2014

At a glance

In Europe, the mild winter and steady economic upturn made customers more willing to invest. Adjusted to discount currency fluctuations, the Americas and Asia-Pacific regions also recorded increases in revenue.

Q1 2014 compared with Q1 2013

• Revenue rose 13 percent to EUR 292 million, or 17 percent when adjusted to discount currency fluctuations.
• The compact equipment (+21%) and services (+20%) segments recorded particularly high increases in revenue.
• Revenue growth in Europe was exceptionally strong at 21 percent. First quarter profit was also significantly higher than the prior-year figure, with an EBIT margin of 7.6 percent and an EBITDA margin of 12.4 percent.

Forecast

Wacker Neuson has confirmed its annual forecast for 2014. The Group expects revenue to increase to between EUR 1.25 and 1.30 billion (2013: EUR 1.16 billion). The EBITDA margin is expected to lie somewhere between 13.0 and 14.0 percent (2013: 13.2 percent), and the EBIT margin should amount to between 8.0 and 9.0 percent (2013: 8.2 percent). Wacker Neuson remains committed to its strategy and intends to increase its reach in core markets and continue as planned on its expansion path.

• | 02 Letter from the CEO
• | 04 Group Management Report
• | 17 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
• | 23 Selected Explanatory Notes to the Interim Financial Statements
  • | 25 Financial Calendar/IR Contact

Cem Peksaglam CEO

Dear Ladies and Gentlemen,

2014 got off to a promising start for the Wacker Neuson Group. Our business was bolstered by the steady upturn in the European construction industry, a more upbeat mood across the European agricultural sector coupled with a relatively mild winter and a general revival in the US construction industry. For these reasons, we can be satisfied with our revenue and in particular our profit situation after the first three months of the year. This development is something we had anticipated – not least because of the weak start to fiscal 2013 – and it was evident across the entire industry.

Up 13 percent at EUR 292 million, Q1 revenue again set a new record for the first quarter despite the continued and significant effects of currency fluctuations. If we discount these, our revenue actually rose by 17 percent.

While revenue in our core market of Europe was a good 20 percent higher than the Q1 2013 level, the respective figures for the Americas (-2 percent) and Asia-Pacific (-8 percent) regions, which are shown in euro, were both down because of exchange rate fluctuations. In North America, the severe weather in January and February curtailed activity in the construction sector. By the end of the quarter, however, business had clearly picked up in the US, Mexico and Brazil in particular. Discounting currency effects, revenue in the Americas region increased 6 percent on the previous year. Adjusted for currency effects, Asia-Pacific revenue grew 5 percent. Even though this increase was achieved from a low baseline, the region remains an important growth market for Wacker Neuson because of the ongoing need for infrastructure maintenance and repair, especially in the region's megacities. In China, we recently added compact equipment to our product portfolio.

The strong revenue growth of the first quarter had an even stronger impact on our profit margins. Compared with the same period last year, we doubled our profit before interest and tax (EBIT) to EUR 22 million. Profit before interest, tax, depreciation and amortization (EBITDA) rose by 46 percent to EUR 36 million, and the EBITDA margin increased from 9.7 percent to 12.4 percent.

This profitability gain was achieved not only through increased synergies within our sales organization and across our plants, but also through increasingly effective Group-wide efficiency and cost-trimming initiatives. Despite a greater volume of business, the Group's operating costs fell by a good 3 percent in the first three months of the year. Within this block, there was a big drop in general administrative costs in particular, which are down 15 percent. These impressive results would not be possible without our highly motivated and committed workforce, and I would like to take this opportunity to thank all of our employees and managers for contributing such a successful start to the year.

Our successful performance has also worked to the benefit of our shareholders. The Wacker Neuson share rose from EUR 11.73 at the start of the year to well over EUR 14.00 at the start of May. This gain of more than 20 percent means that it outperformed both the DAX and the SDAX over the same period.

The compact equipment segment proved to be a strong revenue driver in the first quarter. Our pro-active and targeted strategy of pushing compact sales through our existing global sales network is increasingly paying dividends. We also saw stronger demand for our Weidemann- and Kramer-branded compact equipment. A significantly higher order intake and backlog for compact equipment compared with the previous year gives us good cause for optimism for the coming months. We will continue to look for sales opportunities in markets other than the construction and agriculture sectors and intend to align our products and services more closely with the needs of local customers. Last year, we developed a new platform for skid steer loaders tailored to the US market. These new products were very well received by dealers and trade professionals at the CONEXPO event held in Las Vegas in March.

Demand for light equipment has also risen. Given the international footprint of this segment, it is particularly susceptible to exchange rate fluctuations. When adjusted to discount these effects, light equipment revenue was 8 percent higher than the same period last year. In euro, however, the increase was only 1 percent. At EUR 94 million, this segment accounted for around 32 percent of Group revenue in the first quarter.

Research and development – and the resulting innovations – are high priorities for our Group, as they are instrumental in our efforts to achieve our climate protection goals. Our aim is to ensure that we continue to deliver needs-driven ergonomic, environmentally sound and safe products as we move forward. Our innovations include the new 803 dual power mini excavator, which has an electrohydraulic drive for zero-emission operation with no loss of performance or maneuverability, and the new battery-powered e-Hoftrac® electro-wheel loader from Weidemann. We have introduced the ECO seal to highlight products that are particularly environmentally friendly and cost efficient.

In the first quarter of 2014, our services business segment benefitted from the strong new equipment sales of previous years, but also from the longer service lives of light and compact equipment, which results in greater demand for maintenance. Revenue from the repair and spare parts business, the used equipment business and rental in Central Europe increased by around 20 percent to EUR 60 million. This corresponded to just over 20 percent of Group revenue in the first quarter.

For the rest of the year, we expect that revenue from all three segments – light equipment, compact equipment and services – will continue to grow. The continued health of our balance sheet with an equity ratio of 68 percent and a relatively low net financial debt provide a solid foundation for our confident outlook.

Increasingly positive signals from Southern Europe, and – even more importantly – strong traction from established markets in Europe and North America, plus the momentum from our current strategy path are all set to benefit our business over the current year. As such, we confirm our forecast for fiscal 2014. We stand by our forecast of an overall increase in revenue to between EUR 1.25 and 1.30 billion, which would correspond to growth of between 8 and 12 percent on the previous year. Our EBITDA margin should still be on target with 13 to 14 percent, and we expect EBIT margin to lie between 8 and 9 percent.

We want our shareholders to benefit from the success of the Group over the past year. We will propose a dividend of EUR 0.40 per eligible share at the AGM on May 27, 2014, which is a third higher than last year's pay-out.

We thank you for your continued loyalty.

Best regards,

Cem Peksaglam CEO Wacker Neuson SE

Group Management Report

Economic and business trends

The global economy continued to recover in the first quarter of 2014. In contrast to recent years, this was mainly driven by developed economies. The business mood was generally upbeat in these countries, prompted to a large extent by continued low interest rates. Raw material prices declined in March 2014.

There was a steady upward trend in the eurozone economy in the first quarter of 2014, although certain member countries are still lagging behind. The sovereign debt crises continued to ease, with the deficit ratios of Greece, Ireland and Portugal all coming down. The comparatively mild winter gave the European construction industry a good start to the year. In March 2014, however, the Crimean crisis led to growing uncertainty.

In Germany, the more optimistic Ifo Business Climate Index published at the start of the year pointed towards continued economic momentum. Indeed, economic activity did increase in Germany during the first three months of 2014. Exporting companies are profiting from improved market opportunities in the eurozone. Favorable financing conditions, positive developments in the labor market and solid economic growth are fueling investment and a higher tax take.

In the US, economic growth was stalled by severe winter conditions, and there was a noticeable decline in private consumption and investment during January and February. By April, however, clear upward movement was evident, as were signs of catch-up. The US labor market reported a strong increase in employment in April.

The economic slowdown in China, caused in particular by a decline in construction investment, more restrictive financial market conditions (balance of payments problems), decelerating growth in productivity and reduced competitiveness, added to pressures on emerging countries in the first quarter of 2014, with the result that growth slowed down in comparison with previous years.

Positive trends in the agricultural sector

At the start of 2014, sentiment among European agricultural machinery manufacturers had much improved. The first quarter of the year saw a strong increase in food prices – a factor which also had a positive impact on demand for machinery. There was strong willingness to invest among European landholders in this period, particularly in Germany, the UK, Poland and France. The aim of investments was to increase productivity on holdings with largely limited labor resources.

In March 2014, Wacker Neuson presented new products from the fields of concrete technology, compaction and worksite technology as well as new compact equipment at CONEXPO in Las Vegas. The highlight of the event was the unveiling of our new range of skid steer loaders, which were specially designed for the North American market.

Business trends and highlights from the first three months of 2014

Quarterly revenue significantly higher than prior-year figure

Group revenue rose by 13.4 percent to EUR 291.6 million in the first three months of 2014 (previous year: EUR 257.1 million).

Central Europe and the US are the Group's core markets. In Europe in particular, the mild winter and continued upswing in the economy increased willingness to invest among customers in the construction and agricultural industries as well as among companies in the gardening, landscaping, industrial and logistics sectors. As a result, Q1 revenue for Europe was 20.5 percent higher than the prior-year figure. The Americas region reported a 2.3 percent drop in revenue in the same period. The main reasons behind this were the severe winter in North America and exchange rate fluctuations. If the unfavorable exchange rates are discounted, revenue in the Americas region actually rose by 5.5 percent. Currency fluctuations also had a big impact on revenue figures for the Asia-Pacific region, where Q1 revenue was down 8.2 percent on the corresponding period in 2013. When adjusted to discount exchange rate fluctuations, however, revenue was 4.6 percent higher than in the previous year.

The EBITDA margin1 rose in the first three months of 2014 to 12.4 percent (previous year: 9.7 percent), and the EBIT margin2 also increased to 7.6 percent (previous year: 4.3 percent).

Assets remain strong with an equity ratio before minority interests of 68.5 percent at the closing date. At March 31, 2014, gearing3 came to 19.5 percent, thus remaining close to the 2013 end-of-year figure (18.9 percent).

Skid steer loaders for the US market

Last year, Wacker Neuson developed a new range of skid steer loaders for the US market at its production facility near Linz. This move will also open up new sales channels for other compact equipment products in North America. Skid steer loaders are used in the US construction industry primarily for transporting material. Wacker Neuson unveiled the new products, which were very well received by our dealers, at CONEXPO in Las Vegas in March 2014. Four models will be launched in the North and South American markets initially, with more added on a phased basis.

¹ EBITDA margin = EBITDA/revenue.

² EBIT margin = EBIT/revenue.

³ Gearing = Net financial debt/equity ratio before minority interests.

2014 AGM: Suggested appropriation of net profit

The Executive Board and Supervisory Board of Wacker Neuson SE will propose a dividend of EUR 0.40 per eligible share (previous year: EUR 0.30) at the AGM on May 27, 2014 (based on a total of 70.14 million eligible shares). In total therefore, the Group will be paying out EUR 28.1 million (previous year: EUR 21.0 million). The distribution ratio pans out at around 46 percent (previous year: around 39 percent) based on Group profit for the year in the amount of EUR 61.2 million (previous year: EUR 54.1 million).

The General Meeting will also elect two new shareholder representatives to the Supervisory Board. For more information, see the Explanatory Notes.

Capital market communication and share trends

During the period under review, the Executive Board regularly kept stakeholders updated on current Group developments and corporate strategy. It accomplished this through a variety of channels, including (tele)conferences with capital market players and by visiting investors.

The global economy continued to grow strongly in Q1 2014, and the climate of low interest rates boosted the stock markets. Some are performing better than others, however, with the crisis in Ukraine providing one source of reticence. The slight improvement in key economic indicators from the eurozone and above all the greater uptake of the eurozone bonds of peripheral and formerly crisis-hit countries like Portugal and Greece, which only recently made a successful return to the markets, ensured that the capital markets were once again in a healthy position in April.

The Wacker Neuson share price has increased since the beginning of the year. Starting 2014 at EUR 11.73, the share peaked at EUR 12.70 on January 20, 2014. At the end of the reporting period (March 31, 2014), it closed at EUR 12.53. This corresponds to a rise of around 7 percent since the start of the year and a market capitalization of EUR 878.9 million (70,140,000 shares). The Wacker Neuson share thus outperformed the DAX (+1.7 percent) and the SDAX (+4.9 percent) during the period under review.

Share price trends January through May 2014

Profit, financials and assets Revenue and earnings

Positive development of revenue

Group revenue performed as expected during the first three months of 2014, increasing by 13.4 percent to EUR 291.6 million (previous year: EUR 257.1 million). This represented a record first quarter high.

One reason for this significant increase is the comparatively weak performance recorded in Q1 2013. Unfavorable weather conditions in Europe and North America had delayed the start of the 2013 construction season, and the prevailing market uncertainty had a stifling effect on investment. By the second quarter of 2013, the markets had picked up speed.

Revenue Q1 2014 and 2013 In € million

Q1/2014	291.6
Q1/2013	257.1

The Group uses hedging instruments to protect itself against unfavorable exchange rates in key currencies. However, these instruments are subject to certain assumptions and opinions from experts in the financial sector. The euro performed very strongly against some key currencies in Q1 2014 compared with the previous year. This

Key figures

in € million	Q1/2014	Q1/2013	Change as a %
Revenue	291.6	257.1	13.4
Gross profit margin as a %	29.4	29.2	0.2 PP
EBITDA	36.2	24.8	45.9
EBITDA margin as a %	12.4	9.7	2.7 PP
EBIT	22.1	11.1	99.4
EBIT margin as a %	7.6	4.3	3.3 PP
EBT	20.6	9.3	121.4
Profit for the period	14.3	6.4	122.1

increase in value had a negative impact on revenue in the Group's consolidated financial statements, which are drawn up in euros. The average euro/dollar exchange rate in the first quarter of 2014 was EUR 1 to USD 1.38 (previous year: EUR 1 to USD 1.32).

Adjusted to discount these currency fluctuations, revenue for the first quarter rose by 17.1 percent.

Manufacturing costs rose by 13.0 percent to EUR 205.7 million during the first three months of the year (previous year: EUR 182.1 million).

This figure reflects strong growth in the compact equipment sector (+21 percent), which typically involves higher manufacturing costs but also reports lower selling expenses. Compact equipment accounted for the biggest share of total revenue at 48 percent (previous year: 45 percent), followed by light equipment at 32 percent (previous year: 36 percent). The services segment accounted for the remaining 20 percent (previous year: 19 percent).

At EUR 85.8 million, gross profit for the first three months of the year was up 14.4 percent (previous year: EUR 75.0 million). The gross profit margin amounted to 29.4 percent, just above the previous year's figure (Q1 2013: 29.2 percent).

SG&A, R&D and administrative expenses down in relation to revenue

Despite the increase in the volume of business, operating costs decreased by 3.1 percent in the first three months of 2014. Expressed as a percentage of revenue, total expenses dropped to 22.2 percent (previous year: 26.0 percent).

EBITDA Q1 2014 and 2013

in € million

EBIT Q1 2014 and 2013

in € million

Q1/2014	22.1
Q1/2013	11.1

At EUR 42.0 million, selling expenses were 2.6 percent lower than the prior-year period (previous year: EUR 40.9 million). R&D costs dropped 3.3 percent to EUR 6.9 million (previous year: EUR 7.2 million) and there was a significant 15.4 percent decrease in general administrative costs. In the first three months of the year, these amounted to EUR 15.8 million (previous year: EUR 18.7 million). Administrative costs thus accounted for only 5.4 percent of revenue (previous year: 7.3 percent).

Profit bolstered

The growth in revenue is reflected in the Group's profit situation. Profit before interest, tax, depreciation and amortization (EBITDA) rose 45.9 percent in the first quarter to EUR 36.2 million (previous year: EUR 24.8 million). The EBITDA margin thus increased to 12.4 percent (previous year: 9.7 percent).

Development Q1 2010 – 2014 of revenues and EBIT margin

Revenue in € million

EBIT margin as a %

Depreciation and amortization amounted to EUR 14.1 million in the first quarter of 2014 (previous year: EUR 13.8 million).

Profit before interest and tax (EBIT) almost doubled in the first three months of the year from EUR 11.1 million to EUR 22.1 million. The EBIT margin thus increased to 7.6 percent (previous year: 4.3 percent).

The financial result in the period under review amounted to EUR -1.5 million (previous year: EUR -1.8 million).

Profit before tax (EBT) for the first quarter increased 121.4 percent to EUR 20.6 million (previous year: EUR 9.3 million). Tax expenditure amounted to EUR 6.2 million (previous year: EUR 2.8 million). The tax rate was thus 30.1 percent (previous year: 29.9 percent).

At EUR 14.3 million, profit for the first quarter of 2014 was 122.1 percent higher than the prior-year figure of EUR 6.4 million. Earnings per share amounted to EUR 0.20 based on 70.14 million ordinary shares (previous year: EUR 0.09).

Financial position

Development of cash flow from operating activities

By the end of March 2014, cash flow from operating activities had improved significantly to EUR 18.9 million (previous year: EUR -20.3 million). Discounting investments in working capital1 , cash flow from operating activities amounted to EUR 34.5 million (previous year: EUR 25.3 million).

Cash flow from investment activities came to EUR -27.7 million in the first quarter of 2014 (previous year: EUR -19.0 million). The Group made investments in the amount of EUR 28.2 million, of which EUR 23.9 million was channeled into property, plant and equipment. This figure notably included investment in the expansion of the Group's international sales network and in its own rental pool in Europe.

Once again, investments exceeded write-downs. Free cash flow also developed in line with expectations, coming in negative at EUR -8.9 million at the close of March 2014. However, this figure still marks an improvement on the corresponding prior-year period (previous year: EUR -39.3 million).

Cash flow from financing activities came to EUR 16.2 million in the first quarter of 2014 (previous year: EUR 40.1 million).

See the Explanatory Notes for details of companies acquired or sold during the reporting period. There were no changes to the consolidation structure.

Comfortable liquidity situation

Liquidity increased from EUR 15.5 million at the start of the year to EUR 22.9 million at March 31, 2014. As planned, 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 Group had not drawn on around 50 percent of funds available through credit lines, providing it with sufficient financial headroom. The Group continues to demonstrate healthy levels of liquidity.

Assets

Assets in healthy position with continued high equity ratio

The equivalent figures from the previous closing date (March 31, 2013) are included for ease of comparison.

After the first three months of the year, the balance sheet again shows that Group assets remain strong. The balance sheet total rose to EUR 1,386.9 million at March 31, 2014 (December 31, 2013: EUR 1,322.4 million; March 31, 2013: EUR 1,408.1 million).

Assets increased to EUR 758.7 million (December 31, 2013: EUR 749.6 million; March 31, 2013: EUR 750.7 million). The value of finished products rose relative to the year-end figure by 4.1 percent to EUR 250.3 million (December 31, 2013: EUR 240.5 million) and dropped by 2.1 percent relative to March 31, 2013 (EUR 255.6 million). Inventories were up 3.1 percent to EUR 344.1 million (December 31, 2013: EUR 333.8 million) but decreased by 6.6 percent relative to the same prior-year period (March 31, 2013: EUR 368.5 million). Trade receivables grew to EUR 196.6 million since the start of the year (December 31, 2013: EUR 164.0 million; March 31, 2013: EUR 191.2 million). With revenue growth at 13.4 percent, this represented an increase of only 2.8 percent on the previous year. This was down to strong growth in the first quarter of 2014 in markets with shorter payment periods. Total current assets were down compared with the same period in 2013, falling to EUR 580.4 million (December 31, 2013: EUR 530.4 million; March 31, 2013: EUR 611.9 million).

Group equity before minority interests amounted to EUR 949.7 million at the end of March 2014 (December 31, 2013: EUR 935.5 million; March 31, 2013: EUR 925.6 million). At 68.5 percent, the equity ratio before minority interests remains high (December 31, 2013: 70.7 percent; March 31, 2013: 65.7 percent). The Group's share capital remained unchanged at EUR 70.14 million.

Non-current liabilities were posted at EUR 202.4 million (December 31, 2013: EUR 203.2 million; March 31, 2013: EUR 206.8 million). Trade payables amounted to EUR 71.9 million (December 31, 2013: EUR 44.7 million; March 31, 2013: EUR 57.3 million). Total current liabilities amounted to EUR 230.8 million, reflecting the rise in shortterm borrowings from banks in the first three months of the year (December 31, 2013: EUR 179.8 million; March 31, 2013: EUR 272.1 million).

Working capital developments

We optimized our inventory management in previous years to enable us to ensure rapid delivery capabilities. On the one hand, these measures helped us to respond more quickly to the needs of the global market, and on the other to ensure compliance with the stricter inventory requirements imposed by legislation (especially emission standards).

This has led to an increase in working capital. In the first three months of 2014, working capital amounted to EUR 468.7 million (December 31, 2013: EUR 453.1 million). The rise in revenue was accompanied by a EUR 15.7 million investment in working capital (+3.5 percent relative to December 31, 2013). Overall, however, working capital was 6.7 percent lower than the prior-year figure (March 31, 2013: EUR 502.4 million).

in € K	Mar. 31, 2014	Dec. 31, 2013	Change as a %	Mar. 31, 2013	Change as a %
Total non-current assets	806,555	792,047	1.8	796,122	1.3
Total current assets	580,352	530,360	9.4	611,939	-5.2
Total assets	1,386,907	1,322,407	4.9	1,408,061	-1.5
Equity before minority interests	949,687	935,481	1.5	925,564	2.6
Total non-current liabilities	202,417	203,216	-0.4	206,788	-2.1
Total current liabilities	230,820	179,845	28.3	272,114	-15.2
Minority interests	3,983	3,865	3.1	3,595	10.8
Total liabilities	1,386,907	1,322,407	4.9	1,408,061	-1.5

Assets, equity and liabilities

At 40.21 percent, the working capital to annualized revenue ratio was well below the equivalent figure for 2013 (previous year: 48.9 percent). This is just one positive outcome of the ongoing working capital optimization process.

Solid financing structure

At EUR 184.8 million, net financial debt2 was slightly higher than the equivalent figure at the close of 2013 (December 31, 2013: EUR 177.2 million; March 31, 2013: EUR 257.0 million).

Gearing3 increased marginally from 18.9 percent at the start of the year to 19.5 percent at the interim closing date. The Group's financing structure thus remains strong for the industry.

Net financial position

	Mar. 31,	Dec. 31,	Mar. 31,
in € K	2014	2013	2013
Long-term
borrowings	-130,300	-130,594	-134,566
Short-term
borrowings	-76,971	-61,698	-141,745
Current porti
on of long-term
borrowings	-435	-428	-436
Cash and cash
equivalents	22,889	15,533	19,766
Total	-184,817	-177,187	-256,981
Gearing (%)	19.5	18.9	27.8

Financial position

in € K	Q1/2014	Q1/2013
Cash flow from operating activities	18,859	-20,314
Cash flow from investing activities	-27,711	-19,018
Free cash flow	-8,852	-39,332
Cash flow from financing activities	16,186	40,086
Effect of exchange rates on cash
and cash equivalents	22	145
Change in cash and cash
equivalents	7,356	899
Cash and cash equivalents at
beginning of period	15,533	18,867
Cash and cash equivalents at
end of period	22,889	19,766

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 financial 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 profits of the Group.

Note on calculation: 468.7/(291.6*4) = 40.2 percent.

• ² Net financial debt = Long- and short-term borrowings + current portion of long-
• term borrowings marketable securities cash and cash equivalents.

Net financial debt/equity ratio before minority interests.

Segment reporting

The Wacker Neuson Group supplies customers across the globe with its broad product and service portfolio.

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

In the first quarter of 2014, the Group achieved strong revenue growth in Europe, whereas the Americas region reported a small drop in revenue due to weather and currency effects. Revenue was also down in the Asia-Pacific region. When exchange rate factors are discounted, all regions achieved a growth in revenue.

Results for Europe, the Americas and Asia-Pacific

Revenue significantly up in Europe region

Europe accounts for the lion's share of Wacker Neuson revenue. Thanks to the strong growth recorded in this region, its share of total revenue increased to 74.1 percent (previous year: 69.7 percent). Revenue for the period increased by 20.5 percent to EUR 216.1 million (previous year: EUR 179.3 million). Profit before interest and tax (EBIT) increased from EUR 8.2 million for the same period last year to EUR 18.6 million.

Europe Q1 2014 and 2013 in € million

Wacker Neuson was able to report growth in almost all of its European markets.

Americas outperform last year when exchange rate fluctuations are discounted

At EUR 67.9 million, revenue in the Americas region fell 2.3 percent relative to the first three months of 2013 (previous year: EUR 69.5 million). This lower figure was due to severe weather conditions and exchange rate fluctuations. Profit before interest and tax (EBIT) increased from EUR 3.2 million to EUR 4.2 million. When adjusted to discount currency fluctuations, revenue actually grew by 5.5 percent. At 23.3 percent, the region's share of total revenue was below the Q1 2013 level (previous year: 27.0 percent).

Americas Q1 2014 and 2013 in € million

Revenue

Q1/2014	67.9
Q1/2013	69.5

EBIT
Q1/2014		4.2
Q1/2013		3.2

The Group experienced particularly strong growth in the US. In Chile, revenue was lower than last year, but both Mexico and Brazil achieved positive growth. The expansion of our sales network to incorporate the distribution of compact equipment in the Americas is increasingly paying dividends.

Asia-Pacific

Asia-Pacific region also impacted by exchange rate fluctuations

At EUR 7.6 million, revenue for the Asia-Pacific region was 8.2 percent lower than the Q1 2013 level (previous year: EUR 8.3 million). Discounting exchange rate fluctuations, revenue in the region increased by 4.6 percent. Profit before interest and tax (EBIT) totaled EUR 0.2 million (previous year: EUR 0.04 million). The region's share of total revenue fell to 2.6 percent (previous year: 3.2 percent).

Q1 2014 and 2013
in € million
Revenue
Q1/2014	7.6
Q1/2013	8.3
EBIT
Q1/2014	0.2
Q1/2013	0.04

Asia-Pacific is an important growth market for Wacker Neuson. Demand for high-quality products is steadily rising here. The Group is therefore committed to developing dedicated measures for this region. For example, Wacker Neuson has launched a selected range of products tailored to the needs of the Chinese market. The Group plans to target its range of market-directed, competitive products at further emerging economies. The products are robust and built to Wacker Neuson's high quality standards.

As a result of exceptionally strong growth in the established markets, especially Europe, emerging markets1 accounted for only 10 percent of total revenue in the first three months of the year (previous year: 12 percent).

Results for the light equipment, compact equipment and services segments

Revenue by business segment Q1 2014 as a % (previous year)

Light equipment trends

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 an order backlog for this segment.

Demand for light equipment rose slightly in the first quarter of 2014. By the end of March 2014, revenue before cash discounts from the light equipment segment increased by 0.8 percent to EUR 94.4 million (previous year: EUR 93.7 million), or by 7.7 percent when adjusted to discount currency fluctuations. This segment's share of total revenue was 32.0 percent (previous year: 36.0 percent).

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

Revenue by business segment

in € K	Q1/2014	Q1/2013	Change as a %
Segment revenue
Light equipment	94,390	93,669	0.8
Compact equipment	141,107	116,602	21.0
Services	59,722	49,702	20.2
Less cash discounts	-3,635	-2,874	26.5
Total	291,584	257,099	13.4

Compact equipment trends

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 15 tons. The Group is targeting its compact equipment portfolio at more and more markets outside of Europe.

Revenue before cash discounts from the compact equipment segment increased by 21.0 percent from EUR 116.6 million in the previous year to EUR 141.1 million in the first quarter of 2014. The segment's share of total revenue increased to 47.8 percent (previous year: 44.9 percent).

Already in 2013, the compact equipment segment was the largest revenue driver (+12 percent) thanks to the expansion of our global sales network capabilities to include compact equipment.

Our customers continue to place orders at short notice. It is therefore crucial that these orders are delivered as quickly as possible.

In the first three months of the year, accumulated order intake for compact equipment for the construction and agricultural sectors was more than 50% higher than the prior-year figure despite the change in order patterns.

Demand for our innovative Weidemann- and Kramerbranded machines was fueled by our customers' growing need to raise efficiency and productivity levels. In the first quarter of 2014, agricultural compact equipment accounted for 15.8 percent of total Group revenue (previous year: 17.1 percent).

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

Services segment trends

Wacker Neuson complements new equipment sales with an extensive range of services. The services segment covers the global repair and spare parts business, the reconditioned equipment business (for example, the European used equipment center in Gotha) and rental in Central Europe. Customers are using light and compact equipment for longer periods. This trend, coupled with strong new equipment sales in previous years, boosted this segment's revenue in the first quarter by 20.2 percent to EUR 59.7 million (previous year: EUR 49.7 million). This segment's share of revenue thus rose to 20.2 percent (previous year: 19.1 percent).

Other factors that impacted on results

Headcount

Wacker Neuson increased headcount in specific areas in 2013 as a result of the Group's strong performance. During the first quarter of 2014, headcount had fallen by just a small margin relative to the year-end figure. At the interim closing date, Group headcount came to 4,152 (December 31, 2013: 4,157; March 31, 2013: 4,112)1 .

Research and development activities secure leading position

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

¹ Headcount figures do not reflect the actual number of people employed. They are calculated by converting the number of jobs within the Group into full-time equivalents (not including temporary staff).

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, for example, by ensuring a long service life and high reliability. 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 efforts 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 loaders are just some examples of operator safety innovations here.

In addition, research, development and innovation are key to achieving climate protection goals. Our activities here have a particularly high priority as we intend to maintain our high standards in the delivery of environmentally sound, safe products as we move forward. We will therefore continue to focus our R&D efforts on compliance with more stringent environmental regulations governing combustion engine emissions.

Changes to the opportunity and risk situation

In the first quarter of 2014, 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 2013.

We have identified the following risks to the Wacker Neuson Group as of March 31, 2014 that deviate from the 2013 consolidated financial statements:

There is an underlying risk that the Ukraine-Russia crisis will escalate and that economic sanctions imposed by the EU, the US and Russia will negatively impact the economy.

The remaining risks to the Group relevant to the period under review are listed in the 2013 Annual Report on pages 77 to 81.

Business opportunities for the Wacker Neuson Group are described in detail on page 81 of the 2013 Annual Report and the Outlook section of this interim management report.

Supplementary report

Please refer to the Notes for future changes to the Supervisory Board.

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

Solid growth in the global economy, continued recovery in Europe

Based on figures for the first quarter of 2014, the Organization for Economic Cooperation and Development (OECD) predicts that the seven leading industrial nations (G7) will achieve growth of 2.2 percent over the course of the year.

Because of the severe weather which hit the country at the start of the year, the US economy is expected to see growth of only 1.7 percent in 2014. US job growth is well ahead of last year, however, and the outlook for the economy is good.

The European economy is continuing on the road to recovery, albeit at a slower pace and on a later timescale than other major economies. Countries like Italy and France are struggling to pick up momentum. The Center for European Economic Research (ZEW) has recently revised its economic forecast for the eurozone downwards due to the threat of Russian sanctions, which could have a serious impact on European industrial enterprises. Russia has threatened to lock out foreign firms.

Leading economic research institutes expect Germany to experience stable and strong growth up until the end of 2015. Gross domestic product (GDP) is predicted to grow by 1.9 percent this year and 2.0 percent in 2015 (2013: +0.4 percent). The Business Climate Index of the Ifo Institute continued to rise against expectations in April. The 7,000 or so managers surveyed said that both their business situation and their outlook for the next six months were more positive.

Japan is experiencing particularly strong growth at present, fueled in part by a consumer boom in anticipation of a rise in sales tax.

China's economic growth was slower than expected in the first quarter of 2014. This weak growth in the world's second largest economy is being watched with concern by other countries. In particular, China's real estate market has slowed down of late. Following years of double-digit growth, the Chinese government is overseeing a restructuring of the economy and setting a course for more sustainable

development. This will likely entail lower growth rates than in the past, provided a sufficient number of jobs can be created. The International Monetary Fund (IMF) expects that Beijing will achieve its target of 7.5 percent growth for 2014.

Construction industry remains 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 at the vanguard, but countries like Mexico, Argentina 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, construction investment over the coming years 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 environment and limit climate change. Residential investments are due to rise.

In the US, investment in residential construction has intensified in recent months. Growth in the non-residential construction sector is also expected to continue in the coming years. The raw materials and energy sectors are likewise on an upwards curve (especially the oil and gas industry). The construction industry is expected to see strong recovery momentum in the second quarter of 2014 following the bad weather-related weaker performance in the first quarter.

Bright prospects for European agricultural sector

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. Rising agricultural prices should bolster landholders' income – a factor which, in turn, should further fuel demand for Weidemann- and Kramerbranded equipment. According to the spring 2014 trend monitor of the German Agricultural Society (DLG), European landholders are much more likely to invest this year, particularly in Germany, the UK, Poland and France.

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. On the compact equipment front, the Group's strategy to expand its sales and distribution network worldwide, flanked by strategic alliances, will deliver further growth potential in this 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. With good market penetration in the Europe region, the Wacker Neuson Group is well placed to benefit from the generally positive economic situation in the eurozone.

Forecast for 2014 confirmed

The Executive Board is still predicting overall revenue for fiscal 2014 to come to between EUR 1.25 and 1.30 billion (2013: EUR 1.16 billion) with an EBITDA margin of between 13.0 and 14.0 percent (2013: 13.2 percent). The EBIT margin is expected to lie somewhere between 8.0 and 9.0 percent (2013: 8.2 percent).

We predict further growth through 2014 for all three business segments – light equipment, compact equipment and services. Compact equipment is expected to continue realizing dynamic growth figures, attributable in particular to increased international sales and our existing strategic alliances. As the services segment continues to grow, we expect its share of revenue to remain at more or less the same level.

For the current fiscal year, we have earmarked around EUR 85 million in total (2013: EUR 87 million) for investments. As in 2013, we are again expecting a positive free cash flow for 2014, with cash flow from operating activities exceeding cash flow from investment activities.

We aim to maintain our sound balance sheet structure with a comparatively high equity ratio. Our equity ratio currently stands at around 68 percent, net financial debt is relatively low – we do not intend to increase gearing by a significant margin – and our financial situation is correspondingly healthy. Strong financials and assets will help to drive our growth over the next two years.

With a view to enhancing our product portfolio and expanding our international footprint, we are planning further partnerships and acquisitions.

Munich, May 8, 2014 Wacker Neuson SE

The Executive Board

CEO CFO

Cem Peksaglam Günther C. Binder

Martin Lehner CTO (Deputy CEO)

Consolidated Income Statement

January 1 through March 31

	Jan. 1 – Mar. 31,	Jan. 1 – Mar. 31,
in € K	2014	2013
Revenue	291,584	257,099
Cost of sales	-205,750	-182,061
Gross profit	85,834	75,038
Sales and service expenses	-41,979	-40,934
Research and development expenses	-6,940	-7,180
General administrative expenses	-15,811	-18,691
Other income	2,823	5,517
Other expenses	-1,834	-2,673
Profit before interest and tax (EBIT)	22,093	11,077
Financial income	634	363
Financial expenses	-2,086	-2,117
Profit before tax (EBT)	20,641	9,323
Taxes on income	-6,222	-2,788
Total profit/loss for the period	14,419	6,535
Of which are attributable to:
Shareholders in the parent company	14,301	6,440
Minority interests	118	95
	14,419	6,535
Earnings per share in EUR (diluted and undiluted)	0.20	0.09

Consolidated Statement of Comprehensive Income January 1 through March 31

in € K	Jan. 1 – Mar. 31, 2014	Jan. 1 – Mar. 31, 2013
Total profit/loss for the period	14,419	6,535
Other income
Profit/loss to be recognized in the income statement for subsequent periods:
Exchange differences	-84	4,480
Profit from securing cash flows	0	0
Effect of taxes on income	0	0
Profit/loss to be recognized in the income statement for subsequent periods	-84	4,480
Profit/loss not to be recognized in the income statement for subsequent periods:
Actuarial gains/losses from pension obligations	-15	-14
Effect of taxes on income	4	0
Profit/loss not to be recognized in the income statement for subsequent periods:	-11	-14
Other comprehensive income after tax	-95	4,466
Total comprehensive income after tax	14,324	11,001
Of which are attributable to:
Shareholders in the parent company	14,206	10,906
Minority interests	118	95
	14,324	11,001

Consolidated Balance Sheet

As at March 31

in € K	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Assets
Property, plant and equipment	393,519	386,384	390,787
Investment properties	18,375	18,476	18,963
Goodwill	236,261	236,259	236,843
Intangible assets	110,547	108,505	104,105
Other investments	487	0	0
Deferred tax assets	32,646	30,285	33,655
Other non-current financial assets	13,115	10,457	9,665
Other non-current non-financial assets	1,605	1,681	2,104
Total non-current assets	806,555	792,047	796,122
Inventories	344,060	333,812	368,527
Trade receivables	196,623	163,953	191,192
Tax offsets	4,232	4,673	6,923
Other current financial assets	1,235	2,091	9,909
Other current non-financial assets	11,313	10,298	15,622
Cash and cash equivalents	22,889	15,533	19,766
Total current assets	580,352	530,360	611,939
Total assets	1,386,907	1,322,407	1,408,061
Equity and liabilities
Subscribed capital	70,140	70,140	70,140
Other reserves	576,501	576,596	600,364
Net profit/loss	303,046	288,745	255,060
Equity attributable to shareholders in the parent company	949,687	935,481	925,564
Minority interests	3,983	3,865	3,595
Total equity	953,670	939,346	929,159
Long-term borrowings	130,300	130,594	134,566
Deferred tax liabilities	32,524	33,124	32,894
Long-term provisions	39,593	39,498	39,328
Total non-current liabilities	202,417	203,216	206,788
Trade payables	71,938	44,702	57,320
Short-term borrowings from banks	76,971	61,698	141,745
Current portion of long-term borrowings	435	428	436
Short-term provisions	12,182	12,948	12,049
Tax liabilities	756	310	994
Other short-term financial liabilities	18,729	22,241	16,748
Other short-term non-financial liabilities	49,809	37,518	42,822
Total current liabilities	230,820	179,845	272,114
Total liabilities	1,386,907	1,322,407	1,408,061

Consolidated Statement of Changes in Equity As at March 31

in € K	Sub scribed capital	Capital reserves	Exchange diffe rences	Other neutral changes	Net profit/ loss	Equity at tributable to share holders in the parent company	Minority interests	Total equity
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	6,440	6,440	95	6,535
Other income	0	0	4,480	-14	0	4,466	0	4,466
Total comprehensive income	0	0	4,480	-14	6,440	10,906	95	11,001
Balance at March 31, 2013	70,140	618,661	-10,800	-7,497	255,060	925,564	3,595	929,159
Balance at December 31, 2013	70,140	618,661	-33,888	-8,177	288,745	935,481	3,865	939,346
Total profit/loss for the period	0	0	0	0	14,301	14,301	118	14,419
Other income	0	0	-84	-11	0	-95	0	-95
Total comprehensive income	0	0	-84	-11	14,301	14,206	118	14,324
Balance at March 31, 2014	70,140	618,661	-33,972	-8,188	303,046	949,687	3,983	953,670

Consolidated Cash Flow Statement January 1 through March 31

in € K Jan. 1 – Mar. 31, 2014 EBT 20,641 9,323 Adjustments to reconcile profit before tax to net cash flows: Depreciation and amortization 14,123 13,751 Foreign exchange result -329 3,076 Gains/losses from sale of intangible assets and property, plant and equipment 86 109 Book value from the disposal of rental equipment 4,160 2,241 Gains/losses from derivates (cash flow hedging) 0 -14 Actuarial gains/losses from pension obligations -11 0 Financial result 1,452 1,754 Changes in misc. assets -3,950 857 Changes in provisions -671 -283 Changes in misc. liabilities 9,440 6,613 Changes in net current assets: Changes in inventories -10,248 -8,406 Changes in trade receivables -32,670 -43,354 Changes in trade payables 27,236 6,177 -15,682 -45,583 Interest paid -4,921 -4,941 Income tax paid -6,113 -7,808 Interest received 634 591 Cash flow from operating activities 18,859 -20,314 Purchase of property, plant and equipment -23,876 -17,804

Jan. 1 – Mar. 31,

2013

Purchase of intangible assets -3,822 -2,738 Proceeds from the sale of property, plant and equipment, intangible assets and non-current assets held for sale 474 1,524 Proceeds from the sale of marketable securities 0 0 Change in consolidation structure -487 0 Cash flow from investing activities -27,711 -19,018 Costs of raising capital 0 0 Dividends 0 0 Cash receipts from short-term/long-term borrowings 16,480 43,891 Repayments from short-term/long-term borrowings -294 -3,805 Payment of finance lease liabilities 0 0 Cash flow from financing activities 16,186 40,086 Increase/decrease in cash and cash equivalents 7,334 754 Effect of exchange rates on cash and cash equivalents 22 145 Change in cash and cash equivalents 7,356 899 Cash and cash equivalents at beginning of period 15,533 18,867 Cash and cash equivalents at end of period 22,889 19,766

Consolidated Segmentation

January 1 through March 31

in € K	Europe	Americas	Asia-Pacific	Consolidation	Group
Q1 2014
Segment revenue
Total external sales	367,600	172,661	12,920
Less intrasegment sales	-136,166	-95,529	-621
	231,434	77,132	12,299
Intersegment sales	-15,360	-9,251	-4,670
Total	216,074	67,881	7,629	0	291,584
EBIT	18,590	4,190	212	-899	22,093
EBITDA	30,794	5,909	412	-899	36,216
Net financial debt	121,398	56,723	6,694	0	184,815
Working capital	319,811	140,464	25,278	-16,808	468,745
Non-current assets	689,785	60,290	10,232	0	760,307
Average number of employees	3,190	718	244	0	4,152
Q1 2013
Segment revenue
Total external sales	317,404	97,459	12,415
Less intrasegment sales	-121,259	-16,804	-557
	196,145	80,655	11,858
Intersegment sales	-16,862	-11,146	-3,551
Total	179,283	69,509	8,307	0	257,099
EBIT	8,168	3,216	38	-345	11,077
EBITDA	20,129	4,797	248	-345	24,829
Net financial debt	237,110	11,995	5,261	2,614	256,980
Working capital	328,128	166,499	26,215	-18,443	502,399
Non-current assets	675,292	65,708	11,802	0	752,802
Average number of employees	3,200	666	246	0	4,112

Revenue with non-Group companies generated by affiliates headquartered in Germany amounted to EUR K 117,838 (previous year: EUR K 99,612).

	Jan. 1 – Mar. 31,	Jan. 1 – Mar. 31,
in € K	2014	2013
Segment revenue from external customers
Light equipment	94.390	93.669
Compact equipment	141.107	116.602
Services	59.722	49.702
	295.219	259.973
Less cash discounts	-3.635	-2.874
Total	291.584	257.099

Selected Explanatory Notes to the Interim Financial Statements for Q1 2014

Accounting rules

The Wacker Neuson SE consolidated interim financial statements to March 31, 2014 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, 2013. The comments there also apply to the quarterly and half-year statements for fiscal 2014, unless explicitly stated otherwise.

The general accounting principles, valuation methods and estimates used for the fiscal 2013 consolidated statements have also been applied to these interim financial statements.

Legal changes to company structure

On February 14, 2014, the Swedish affiliate Wacker Neuson AB acquired the company Skanska Mark och Exploatering Bygg Invest AB. This is not an operational company; however, it owns real estate on which the Swedish affiliate intends to build its future headquarters. It will be merged shortly with the Swedish affiliate. A contract for work and services to construct the new headquarters was signed on the same date.

At March 31, 2014 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 2011 through 2013 was as follows:

in %	2013	2012	2011
Q1	22	25	21
Q2	28	26	27
Q3	24	23	25
Q4	26	26	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.

	2014	2013
Q1
Quarterly earnings attributable to shareholders in € K	14,301	6,440
Weighted average number of ordinary shares in circulation during the period in thousands	70,140	70,140
Undiluted earnings per share in €	0.20	0.09
Diluted earnings per share in €	0.20	0.09

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 2013 for further information on the type and scope of related party disclosures.

Important events

At the AGM on May 27, 2014, the Executive Board and Supervisory Board of Wacker Neuson SE will propose a dividend payout of EUR 0.40 per registered share for fiscal 2013.

Changes to the Wacker Neuson SE Supervisory Board:

At the close of the AGM on May 27, 2014, Dr. Eberhard Kollmar will be retiring from his position on the Supervisory Board on age grounds. The Supervisory Board has nominated Mr. Ralph Wacker as his replacement.

For personal reasons, Dr. Matthias Bruse will also be stepping down from the Supervisory Board on May 27, 2014 at the close of the AGM. Group shareholders proposed the nomination of the former CEO of Wacker Neuson, Dr. Georg Sick, as a replacement for Dr. Bruse. However, the Supervisory Board has deemed Dr. Sick to be an unsuitable candidate and is not in favor of this suggestion. There are no other candidates at this time.

Shareholders will decide on the appointment of the new Supervisory Board members at the AGM on May 27, 2014.

Events since the interim statements

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

Munich, May 8, 2014 Wacker Neuson SE

The Executive Board

Cem Peksaglam Günther C. Binder

(CEO)

Martin Lehner (Deputy CEO)

Financial Calendar

Financial Calendar 2014

May 13, 2014 Publication of first-quarter report 2014 May 27, 2014 AGM, Munich June 12, 2014 German, Swiss & Austrian Conference 2014, Berlin August 05, 2014 Publication of half-year report 2014 November 11, 2014 Publication of nine-month report 2014

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. Forwardlooking 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. This report of Wacker Neuson SE has not been certified or approved.

All rights reserved. Valid May, 2014. Wacker Neuson SE accepts no liability for the accuracy and completeness of information provided in this brochure. Reprint only with the written approval of Wacker Neuson SE in Munich, Germany. The German version shall govern in all instances. In the event of discrepancies between the German and the English version, the German version shall prevail.

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