Wacker Neuson SE — Interim / Quarterly Report 2015

Nov 17, 2015

9M/2015

Nine-month report

Figures at a Glance

July 1 through September 30 and January 1 through September 30

July 1–Sept. 30,	July 1–Sept. 30,		Jan. 1–Sept. 30,	Jan. 1–Sept. 30,
2015	2014	Change1	2015	2014	Change1
311.0	316.2	-1.6% (-4.4%)	1,017.4	936.2	8.7% (4.0%)
220.4	230.1	-4.2% (-4.3%)	730.7	689.3	6.0% (5.3%)
79.2	76.8	3.1% (-7.4%)	254.1	220.2	15.4% (-0.3%)
11.4	9.3	22.6% (19.8%)	32.6	26.6	22.6% (12.0%)
107.2	105.9	1.2% (-4.8%)	320.4	309.3	3.6% (-5.3%)
136.4	144.2	-5.4% (-5.8%)	506.6	441.4	14.8% (13.3%)
73.7	70.7	4.2% (1.0%)	207.1	198.5	4.3% (0.2%)
32.1	55.1	-41.7%	130.3	148.1	-12.0%
16.6	15.0	10.7%	49.1	44.6	10.1%
15.5	40.1	-61.3%	81.2	103.5	-21.5%
13.9	38.7	-64.1%	76.4	99.0	-22.8%
8.5	26.5	-67.9%	53.7	69.0	-22.2%
4,696	4,271	10.0%	4,696	4,271	10.0%
					-21.4%
					25.0%
27.8	30.3	-2.5 PP	28.9	30.2	-1.3 PP
10.3	17.4	-7.1 PP	12.8	15.8	-3.0 PP
5.0	12.7	-7.7 PP	8.0	11.1	-3.1 PP
	0.12 0.50	0.38 0.40	-68.4% 25.0%	0.77 0.50	0.98 0.40

				Changes
Key figures from the balance sheet	Sept. 30, 2015	Dec. 31, 2014	Sept. 30, 2014	Dec. 31, 2014
Non-current assets	844.7	814.1	816.3	3.8%
Current assets	743.0	633.5	651.7	17.3%
Equity before minority interests	1,045.8	1,011.7	990.1	3.4%
Net financial debt	241.0	179.5	198.8	34.3%
Liabilities	573.1	431.3	473.7	32.9%
Equity ratio before minority interests as a %	65.9	69.9	67.5	-4.0 PP
Working capital	609.6	532.2	523.0	14.5%

	July 1–Sept. 30,	July 1–Sept. 30,		Jan. 1–Sept. 30,	Jan. 1–Sept. 30,
Cash flow	2015	2014	Change	2015	2014	Change
Cash flow from operating activities	41.3	23.7	74.3%	52.8	76.6	-31.1%
Cash flow from investment
activities	-26.5	-20.5	29.3%	-81.2	-72.4	12.2%
Capital expenditure
(property, plant and equipment
and intangible assets)	28.1	21.0	33.8%	83.6	73.6	13.6%
Cash flow from financing activities	-17.9	1.3	–	33.6	-2.2	–
Free cash flow	14.8	3.2	362.5%	-28.4	4.2	–

1 In brackets, adjusted to discount currency effects.

2 Consolidated revenue before discounts.

3 Dividend payment in May for the previous fiscal year.

All consolidated figures prepared according to IFRS. To improve readability, the figures in this report have been rounded to the nearest EUR million. Percentage changes refer to these rounded amounts.

Latest developments from the first nine months of 2015

At a glance

The Group reported a rise in revenue for the first nine months of 2015 in all three regions – Europe, the Americas and Asia-Pacific. Once again, compact equipment – distributed to an increasingly international market – proved to be the main growth driver. For the first time in its history, the Group exceeded the EUR 1 billion mark for the first nine months of the year, despite a clear fall in demand in the third quarter.

9M 2015 compared with 9M 2014

• Revenue increased by 9 percent to EUR 1,017 million. When adjusted to discount currency effects, this corresponds to an increase of 4 percent.
• Revenue increased by 15 percent in the Americas, by 23 percent in Asia-Pacific and by 6 percent in Europe. Compact equipment proved the strongest of the Group's business segments, posting a 15-percent rise in revenue. Revenue rose by 4 percent in both the light equipment and services segments.
• Demand in the raw material and energy sectors and the European agricultural technology industry declined markedly in the third quarter. Numerous markets across all regions are struggling with a drop in demand. Group revenue and Group earnings were thus below the figure for the prior-year quarter.
• The EBIT margin fell to 8.0 percent in the first nine months of the year (9M 2014: 11.1 percent).

Forecast

Due to the unexpectedly strong downturn in demand in the third quarter, the Group revised its forecast for the current fiscal year on October 14, 2015. The Executive Board now expects Group revenue for fiscal 2015 to amount to between EUR 1.35 and 1.40 billion (2014: EUR 1.28 billion) with an EBIT margin of between 7.0 and 8.0 percent (2014: 10.6 percent). The March 2015 forecast previously predicted revenue of between EUR 1.40 and 1.45 billion and an EBIT margin of between 9.5 and 10.5 percent.

Letter from the CEO | 02

Group Management Report | 04

Interim Financial Statements | 19

Consolidated Income Statement Consolidated Statement of Comprehensive Income Consolidated Balance Sheet Consolidated Statement of Changes in Equity Consolidated Cash Flow Statement Consolidated Segmentation

• Selected Explanatory Notes | 26
• Financial Calendar/IR Contact | 29

Cem Peksaglam CEO

Dear Ladies and Gentlemen,

During the first quarter of 2015, we reported a rise in revenue of almost 11 percent relative to the previous year. In the second quarter, our business grew even faster, with revenue increasing by an impressive 16 percent. During the course of the summer, however, the pace of growth slowed significantly with market conditions proving particularly difficult in September. This ultimately led us to revise our revenue and earnings forecast for 2015. We expect revenue for the year to amount to between EUR 1.35 and 1.40 billion and our profit before interest and tax (EBIT) margin to range between 7 and 8 percent.1

There are a number of reasons for this and I would like to outline them here. Demand for light equipment in the raw material and energy sectors fell particularly sharply in the third quarter. Raw material prices are extremely low at present, making it almost impossible for companies to extract oil and gas profitably in North America. This has brought the industry more or less to a standstill, with the result that Q3 sales of worksite equipment, in particular generators, heaters and light towers, showed a slowdown. Canada was particularly affected by the oil and gas crisis. The knock-on effects are increasingly spreading to other industries there, including the Canadian construction sector. Declining demand for commodities is putting enormous pressure on economies that are heavily dependent on the extraction of raw materials, in particular South America, South Africa and Australia. The sharp depreciation in South American currencies in recent months had a clear impact on revenue and earnings. The strong US dollar made worldwide exports from our two production sites in the US more expensive. This also had negative effects on profit levels. Profitability in South America, especially in Brazil, developed unfavorably under the pressure of the escalating crises.

Declining demand in the European agricultural equipment sector also had an unexpectedly strong impact on our business in Q3, squeezing revenue from the compact equipment segment to 5 percent below the prior-year figure. Unfortunately, demand in key markets such as France, Russia and Australia continued to fall in the third quarter. Cumulatively, these effects caused third-quarter revenue to fall to EUR 311 million, a drop of 2 percent relative to the previous year.

As is to be expected, this had a negative impact on cost ratios. EBIT for the past quarter amounted to EUR 16 million, which is 61 percent below the same figure for the prior-year quarter. The EBIT margin amounted to 5.0 percent (previous year: 12.7 percent).

¹ In fiscal 2014, the Group reported revenue of EUR 1.28 billion and the EBIT margin totaled 10.6 percent.

It should be noted, however, that the prior-year quarter was an unusually strong period for revenue and earnings. Our robust performance here was fueled by major orders, a favorable regional and product mix and clearly favorable currency gains.

Looking at the first nine months of the year overall, however, Group revenue rose 9 percent to EUR 1,017 million. This is a good performance in light of the difficult conditions that are currently affecting the construction equipment industry as a whole. It is the first time that we have broken the one-billion euro barrier for the first nine months of a year. EBIT for the period amounted to EUR 81 million, which corresponds to an EBIT margin of 8.0 percent. This is around 3 percentage points lower than the strong prior-year figure, but still above the 2013 result for the same period.

As a result of the unexpectedly sharp downturn in business in key markets during the third quarter, we were unable to reduce levels of finished light and compact equipment inventory as planned. In addition, stricter emissions regulations and the unfortunate lack of regulatory harmonization at international level are forcing us to stock more variants of individual products. Since the middle of the year, we have been implementing targeted measures to decrease inventory levels. These will start to take effect in the fourth quarter so that the current high level of working capital will fall by the end of the year.

Our long-term shareholders, together with experts in those industries in which the Wacker Neuson Group distributes its products and services, know that these markets can be very volatile. The current difficult earnings situation is largely attributable to external factors which are outside of the company's control. Our substance and performance capabilities remain as rock-solid as ever. As such, this quarterly snapshot of our overall performance and development does not do our company justice. One look at the performance of the majority of our competitors shows that our company is doing very well by comparison in this difficult environment.

We are working hard to adapt to this rapid change in conditions. However, in the construction equipment industry, this is not something that happens overnight. We have to take a measured approach here.

As part of our day-to-day approach to business, we are firmly committed not only to strict cost control, but also to targeted implementation of cost-optimization programs and continual improvements in the quality and efficiency of processes across all areas of the company. We systematically analyze and leverage synergies and potential for improvement. All of these initiatives are already paying dividends and will have an even more positive impact on earnings when markets recover.

Our corporate strategy is bearing fruit and will gradually enable us to achieve our medium- and longterm goals. We are committed to continually strengthening our position as innovation leader and expanding our international footprint. We are systematically enhancing and expanding our portfolio of products and services. Greater diversification across a wider range of target markets increases the stability of our company.

We firmly believe that we are well positioned for the future – and prepared for even difficult market conditions.

We would like to thank our shareholders and employees for the trust and loyalty they have shown us.

Best regards,

Cem Peksaglam CEO of Wacker Neuson SE

Interim Group Management Report

Economic and business trends

Economic and business trends

According to the International Monetary Fund (IMF), key global trends continued into the third quarter. These include relatively robust development in established economies and a slowdown in the pace of growth in emerging markets. From the middle of the year onwards, however, negative trends have become more pronounced and the general outlook has become more subdued in recent weeks.

Economic recovery in Europe remains on track, bolstered by low oil prices, the weak euro and solid domestic demand. However, performance in individual countries continues to vary significantly. While Germany and the UK made an above-average contribution to growth, economic performance in France and Italy in particular proved disappointing. The high debt levels of some southern European countries remain a risk to the European economy. The large numbers of refugees travelling to western Europe during the third quarter represents an additional element of uncertainty and EU member states have not yet reached a consensus on how to deal with this influx.

According to the collective forecast published by leading German economic research institutes in fall 2015, the moderate pace of economic growth in Germany was primarily fueled by a strong service sector as well as by depreciation of the euro and low raw materials prices – two factors that both favor exports. Private consumption benefited from positive labor market trends and rising wages. In contrast, investment levels were modest in numerous key export markets in light of a slowdown in economic growth.

The US economy remained largely stable throughout the course of the year. Key factors providing momentum here included low energy prices, favorable financing options and a marked drop in unemployment relative to the previous year. A number of sectors benefited from this, including the US housing market. However, the crisis in the oil and gas markets resulting from the drop in oil prices had a tangible impact.

In China, economic growth in the third quarter of 2015 fell just short of the target value of 7 percent for the first time since the start of 2009. Structural reforms initiated by the government negatively impacted key sectors of the economy such as the construction industry, the manufacturing sector and international trade. Expansionary measures such as tax incentives, interest rate cuts and increased government spending did not have the desired effect.

Falling energy and raw material prices coupled with strong deflationary pressure on local currencies has in recent times again exerted a negative impact on the situation in many emerging countries. Economic growth has contracted significantly over the course of the year thus far in the two key economies of Brazil and Russia.

Construction industry trends

Global construction equipment sales developed at an uneven rate during the first three quarters of 2015. Europe, the US and the Middle East reported growth, in some cases in the double-digit range. This was offset by a marked drop in demand in some other regions. In China, for example, sales of earth-moving machines collapsed by more than a third in the first half of 2015. Loss of sales on a similar scale was also reported in South America. In Russia, the market contracted by over 70 percent.

Agricultural industry trends

The European agricultural technology industry contracted in the first half of the year, in some cases by more than 20 percent. The situation continued to deteriorate tangibly during the third quarter. This dampened willingness to invest among agricultural landholders, above all in central and northern Europe. This was due on the one hand to

market saturation following high levels of investment in agriculture in recent years and, on the other, to the strained liquidity situation in many holdings. According the German Farmers' Association (DBV), low milk and pig prices were a key factor that depressed incomes and the mood among German landholders. This situation was further exacerbated by rising feed and fertilizer prices. The price of milk, for example, fell from 45 cents in January 2014 to just 23 cents in September 2015.

Business developments and highlights in the first nine months of the year

High levels of volatility in 2015

Following an increase in revenue relative to the previous year of 11.2 percent in Q1 and even stronger growth of 16.4 percent in Q2, the third quarter was characterized by an unexpectedly sharp drop in demand, in particular in the European agricultural machinery sector. This resulted in a fall in compact equipment revenue in the third quarter. In addition, demand for light equipment from the raw material and energy sectors in North and South America continued to fall, which increasingly also impacted the compact equipment business. In Europe, the extremely weak market conditions in France and Russia worsened further in the third quarter.

In the first nine months of 2015, the Group nonetheless managed to increase revenue by 8.7 percent to EUR 1,017.4 million (9M 2014: EUR 936.2 million). This is a new nine-month revenue high for the Wacker Neuson Group. It is also the first time that the Group has broken the one-billion euro barrier for the first nine months of a year.

The Group benefited from its targeted efforts to leverage sales synergies for the global distribution of its broad product portfolio and from its strategy to diversify into different application segments.

From a geographical perspective, all three regions reported a rise in revenue for the first nine months of the year (Europe +6.0 percent, the Americas +15.4 percent and Asia-Pacific +22.6 percent). Growth in the Americas and Asia-Pacific was fueled by currency movements.

Compact equipment proved the strongest of the Group's business segments, although the dynamic pace of growth reported during the first half-year did slow somewhat.

Revenue for this segment increased by 14.8 percent relative to the previous year. The light equipment segment, which is distributed to a much more international market, developed below expectations from the start of the year, with revenue rising by just 3.6 percent. The services segment grew by 4.3 percent.

Over the course of previous quarters, the Group aligned its cost structures with a higher level of revenue overall for the fiscal year. However, the squeeze in recent months was a key factor that led to a drop in earnings for the third quarter and subsequently the entire nine-month period. Profit before interest and tax (EBIT) for the first nine months of the year decreased 21.5 percent to EUR 81.2 million (9M 2014: EUR 103.5 million). This corresponds to an EBIT margin1 of 8.0 percent (9M 2014: 11.1 percent). Last year, key markets were not yet distressed and the high profit levels in the prior-year period were also bolstered by beneficial exchange rate developments.

Forecast for the year revised

Revenue and profit developed below expectations due to the downturn in business in the third quarter. In light of this, the company revised its forecast for 2015 in mid-October. It now expects revenue to amount to between EUR 1.35 and 1.40 billion (previously: EUR 1.40 to 1.45 billion; 2014: EUR 1.28 billion) and the EBIT margin to range between 7.0 and 8.0 percent (previously: 9.5 to 10.5 percent; 2014: 10.6 percent).

Stable assets and finances

The Group's asset position remains strong with an equity ratio before minority interests of 65.9 percent at the closing date. At September 30, 2015, gearing2 amounted to 23.0 percent. For further details, refer to the "Financials and assets" section.

Consolidation of research and production

The Group is planning to relocate its research and development activities for light equipment from Munich to the Reichertshofen plant, located north of Munich. This move will intensify collaboration between the Group's product development and production departments.

Expansion of aftermarket business

The Wacker Neuson Group aims to realign the organizational structure of its aftermarket business at Group level in order to leverage potential it has identified in the spare parts, attachments and accessories business.

EBIT margin = EBIT/revenue.

Gearing = net financial debt/equity before minority interests.

For four days in September 2015, Wacker Neuson invited customers, dealers and journalists to the "Wacker Neuson Universe". This unique event was held in a gravel pit near Munich and gave guests the opportunity to experience the world of Wacker Neuson first hand. Over an area of around 6,000 m², guests were able to find out about the latest products and innovations from Wacker Neuson and test them live on site.

Capital market communication and share trends

From November 2014 through April 2015 – in other words, over a period of six months – the Wacker Neuson share increased in value by 58.0 percent, reaching its high for the year at EUR 24.60 on April 27, 2015. In recent months, however, the share price has followed a downwards path. At September 30, 2015, the Wacker Neuson share closed at EUR 12.96. This corresponds to a 23.6-percent decrease in value since the start of the year and a 47.3-percent decrease from the highest point in the year. At September 30, 2015, market capitalization for Wacker Neuson amounted to EUR 909.0 million (70.14 million shares). The DAX fell by around 1.5 percent since the start of the year. In contrast, the SDAX increased by 12.7 percent.

This negative share price development was partly prompted by reports and profit warnings issued by numerous key competitors in the construction equipment sector, anticipating dwindling sales and measures such as layoffs and factory closures as a result of the difficult economic climate. After the Group revised its own annual forecast in mid-October, the Wacker Neuson share decreased again temporarily.

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 as well as capital market conferences and investor visits.

Share price trends January through October 2015

Profit, financials and assets Revenue and earnings

Revenue higher than previous year 160

Despite sluggish markets, Group revenue for the first nine months of 2015 increased to EUR 1,017.4 million and was thus 8.7 percent above the same figure for the previous year (9M 2014: EUR 936.2 million). Adjusted to discount currency effects, this corresponds to a rise in revenue of 4.0 percent. 120 100

The market clearly contracted in the third quarter. After high revenue levels in the first half of 2015 (+13.9 percent to EUR 706.4 million), revenue for the third quarter decreased by 1.6 percent relative to the previous year to EUR 311.0 million 30.03.12 30.04.12 31.05.12 30.06.12 26.07.12 Mar 30, 12 Apr 30, 12 May 31, 12 Jun 30, 12 Jul 26, 12

From September 15 to 20, Kramer-Werke GmbH celebrated its 90-year anniversary under the motto "Future built on strong foundations". The company hosted a number of evening events and open days as part of the celebrations. The anniversary week proved a great success, with the Kramer team welcoming around 16,000 visitors and guests to the factory in Pfullendorf.

(Q3 2014: EUR 316.2 million). Adjusted to discount currency effects, this corresponds to a fall of 4.4 percent.

The average euro/dollar exchange rate in the first nine months of 2015 was EUR 1 to USD 1.11 (previous year: EUR 1 to USD 1.35).

Manufacturing costs increased 10.7 percent to EUR 723.5 million (9M 2014: EUR 653.7 million). This was due to the increased sales volume and the compact equipment segment's greater share of total revenue.

At EUR 293.9 million, gross profit increased by 4.1 percent during the period under review (9M 2014: EUR 282.4 million). The gross profit margin narrowed to 28.9 percent (9M 2014: 30.2 percent). During the third quarter, the gross profit margin amounted to 27.8 percent (Q3 2014: 30.3 percent). This was primarily due to the changed regional and product mix.

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

SG&A and R&D expenses increased within the framework of the Group's planned growth trajectory.

In the first nine months, selling expenses rose 10.9 percent to EUR 138.7 million (9M 2014: EUR 125.1 million). However, this increase was also partly attributable to currency translation effects as part of these costs were incurred in currencies other than the euro.

Revenue Q3/9M 2015 and 2014

in € million

Q3/2015	311.0
Q3/2014	316.2
9M/2015	1,017.4
9M/2014	936.2

The R&D expenses that appear on the income statement also rose 19.9 percent relative to the previous year, reaching EUR 25.3 million (9M 2014: EUR 21.1 million). In particular, the Group invested more funding in 2015 in ensuring that its products meet stricter emissions legislation on time. It is also working on new innovations for bauma 2016. In relation to revenue, the research and development ratio (including capitalized R&D expenses) amounted to 3.3 percent and was thus slightly above the prior-year level (9M 2014: 3.2 percent).

General administrative costs rose 16.5 percent to EUR 54.3 million (9M 2014: EUR 46.6 million). This was also partly due to currency effects. Expressed as a percentage of revenue, administrative costs rose to 5.3 percent (9M 2014: 5.0 percent).

Operating costs (expressed as the sum total of all SG&A and R&D expenses) accounted for a 21.5-percent share of revenue (9M 2014: 20.6 percent) and are thus above the previous year's level.

Other operating income and other operating expenses (primarily due to the valuation of cash balances and loans in foreign currencies) totaled EUR 5.6 million for the ninemonth period (9M 2014: EUR 13.8 million). The balance from these two items for the third quarter came to just EUR 1.0 million (Q3 2014: EUR 9.3 million).

Cost trends

During the first nine months of the year, earnings were influenced by several factors:

• ^gThe crises in emerging markets (in which Wacker Neuson primarily distributes light equipment), in particular South America, Russia and South Africa.
• ^gFalling demand in countries that are dependent on raw material prices, in particular Canada, the US, Chile, Australia, South Africa and Russia.
• ^gA marked drop in revenue in crisis-hit France, which is a key market for the Group.

These effects resulted in a change in the regional and product mix and, as such, had a negative impact on profit levels in the individual segments. The situation was further compounded by the following factors:

^gThe expansion of production capacities to keep pace with increased demand; around two-thirds of new hires relative to the previous year were for positions in the Group's plants.

The following factors had an additional impact in the third quarter:

^gA more pronounced decline in demand in crisis-hit markets since the middle of the year.

• ^gAn unexpectedly sharp drop in investments in agricultural machines caused by lower incomes and an even less optimistic outlook among land-holders.
• ^gFewer currency gains from valuations. These had a much more positive influence on earnings in the previous year (posted under "Other income and expenses": at EUR 1.0 million, the balance here was significantly lower than the previous year (Q3 2014: EUR 9.3 million)).

Earnings for the corresponding period in the previous year (Q3 2014) were unusually high (revenue was bolstered for example by major orders, a favorable regional and product mix and significantly higher currency gains), resulting in an unfavorable base effect when compared with Q3 2015.

Key profit figures

Profit before interest, tax, depreciation and amortization (EBITDA) contracted by 12.0 percent to EUR 130.3 million in the first nine months of the year (9M 2014: EUR 148.1 million). The EBITDA margin amounted to 12.8 percent (9M 2014: 15.8 percent). During the third quarter of 2015, EBITDA decreased 41.7 percent to EUR 32.1 million. The EBITDA margin was 10.3 percent (EBITDA Q3 2014: EUR 55.1 million; 17.4 percent).

Depreciation and amortization amounted to EUR 49.1 million in the first nine months of 2015 (9M 2014: EUR 44.6 million) and EUR 16.6 million in the third quarter (Q3 2014: EUR 15.0 million).

EBIT

Q3/9M 2015 and 2014 in € million

Q3/2015	15.5
Q3/2014	40.1
9M/2015	81.2
9M/2014	103.5

in € million	Q3/2015	Q3/2014	Change as a %	9M/2015	9M/2014	Change as a %
Revenue	311.0	316.2	-1.6	1,017.4	936.2	8.7
Gross profit margin as a %	27.8	30.3	-2.5 PP	28.9	30.2	-1.3 PP
EBITDA	32.1	55.1	-41.7	130.3	148.1	-12.0
EBITDA margin as a %	10.3	17.4	-7.1 PP	12.8	15.8	-3.0 PP
EBIT	15.5	40.1	-61.3	81.2	103.5	-21.5
EBIT margin as a %	5.0	12.7	-7.7 PP	8.0	11.1	-3.1 PP
EBT	13.9	38.7	-67.9	76.4	99.0	-22.8
Profit for the period (less minority interests)	8.5	26.5	-67.9	53.7	69.0	-22.2

Key figures

Development of revenue and EBIT margin 9M 2011–2015

Revenue in € million

9M/2015	8.0	1,017.4
9M/2014	11.1	936.2
9M/2013	7.8	862.4
9M/2012	8.5	812.6
9M/2011	11.9	727.6

EBIT margin as a %

Development of revenue and

EBIT margin Q3 2011–2015

Revenue in € million

Q3/2015	5.0	311.0
Q3/2014	12.7	316.2
Q3/2013	9.6	276.3
Q3/2012	7.9	254.5
Q3/2011	15.1	248.9

EBIT margin as a %

At EUR 81.2 million, profit before interest and tax (EBIT) for the first nine months of 2015 was 21.5 percent lower than the previous year's figure (9M 2014: EUR 103.5 million). The EBIT margin decreased to 8.0 percent (9M 2014: 11.1 percent). In the third quarter of 2015, the Group reported EBIT of EUR 15.5 million. This corresponds to an EBIT margin of 5.0 percent (Q3 2014: 12.7 percent).

The financial result for the period under review amounted to EUR -4.8 million (9M 2014: EUR -4.4 million).

Profit before tax (EBT) for the first nine months of 2015 came to EUR 76.4 million (9M 2014: EUR 99.0 million). Tax expenditure amounted to EUR 22.3 million (9M 2014: EUR 29.8 million). The tax rate was thus 29.1 percent (9M 2014: 30.1 percent).

Profit for the first nine months of 2015 (after minority interests) was EUR 53.7 million and thus 22.2 percent lower than the prior-year figure of EUR 69.0 million. Based on 70.14 million ordinary shares, earnings per share amounted to EUR 0.77 (9M 2014: EUR 0.98). At EUR 8.5 million, profit for Q3 2015 was 67.9 percent lower than the previous year (Q3 2014: EUR 26.5 million). This corresponds to quarterly earnings of EUR 0.12 per share (Q3 2014: EUR 0.38).

Financial position

Positive cash flow in third quarter

Cash flow from operating activities amounted to EUR 52.8 million at the close of September 2015 (9M 2014: EUR 76.6 million). Discounting investments in working capital1 (since the start of the year), cash flow from operating activities was posted at EUR 119.8 million (9M 2014: EUR 129.3 million). In the third quarter, cash flow from operating activities increased 74.3 percent to EUR 41.3 million (Q3 2014: EUR 23.7 million). This was primarily due to changes in trade receivables.

Cash flow from investment activities came to EUR -81.2 million in the first nine months of the year (9M 2014: EUR -72.4 million) and EUR -26.5 million in the third quarter (Q3 2014: EUR -20.5 million). As planned, the Group made investments in the amount of EUR 83.6 million during the period under review, of which EUR 72.3 million

¹ Working capital = inventories + trade receivables - trade payables

Financial position

in € million	Q3/2015	Q3/2014	9M/2015	9M/2014
Cash flow from operating activities	41.3	23.7	52.8	76.6
Cash flow from investment activities	-26.5	-20.5	-81.2	-72.4
Free cash flow	14.8	3.2	-28.4	4.2
Cash flow from financing activities	-17.9	1.3	33.6	-2.2
Effect of exchange rates on cash and cash equivalents	-1.1	0.3	-0.5	0.5
Change in cash and cash equivalents	-4.2	4.9	4.7	2.5
Cash and cash equivalents at beginning of period	23.1	13.1	14.2	15.5
Cash and cash equivalents at end of period	18.9	18.0	18.9	18.0

was channeled into property, plant and equipment. This included expansion initiatives and maintenance work, as well as investments in the expansion of the international sales network and the Group's own rental fleet.

Free cash flow corresponds to cash flow from operating activities plus cash flow from investment activities1 . At EUR -28.4 million, free cash flow was still negative at September 30 due to the increase in inventory in the first half of the year (9M 2014: EUR 4.2 million). In the third quarter, the high level of cash flow from operating activities meant that free cash flow was positive at EUR 14.8 million (Q3 2014: EUR 3.2 million).

Cash flow from financing activities for the first nine months of 2015 amounted to EUR 33.6 million (9M 2014: EUR -2.2 million). This is primarily due to cash receipts from short-term borrowings that the Group drew on to finance working capital in the first half of the year. The dividend (payout in May 2015) amounted to EUR 35.1 million (9M 2014: EUR 28.1 million).

See the Explanatory Notes for details of companies acquired or sold during the reporting period and for information about changes to the consolidation structure.

Healthy liquidity levels

The Group's liquidity levels increased from EUR 14.2 million at the start of the year to EUR 18.9 million at September 30, 2015.

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 half of the funds available through credit lines, providing it with sufficient financial headroom. The Group continues to demonstrate

healthy and stable levels of liquidity. This strong position was confirmed by the German Bundesbank, which again approved Wacker Neuson SE's eligibility for credit.

Assets

Stable assets position and high equity ratio

After the first nine months of the year, the balance sheet shows that Group assets remain strong. At September 30, 2015, the balance sheet total amounted to EUR 1,587.7 million (December 31, 2014: EUR 1,447.6 million; September 30, 2014: EUR 1,468.0 million), exceeding EUR 1.5 billion for the first time ever.

Assets rose to EUR 787.5 million (December 31, 2014: EUR 761.3 million; September 30, 2014: EUR 769.1 million). The value of finished products rose to EUR 385.3 million (December 31, 2014: EUR 296.6 million) due to the increase in inventory during the first half of 2015. This corresponds to an increase of 36.4 percent relative to the prior-year period (September 30, 2014: EUR 282.5 million).

At September 30, 2015, inventories rose 21.2 percent to EUR 513.8 million (December 31, 2014: EUR 424.0 million) and were thus 25.0 percent higher than the prior-year period (September 30, 2014: EUR 411.2 million). Due to the unexpectedly sharp downturn in demand at the close of the third quarter, inventories again increased slightly by 3.8 percent as compared with the first half of the year (H1 2015: EUR 494.9 million). Trade receivables decreased 20.3 percent to EUR 186.8 million since the middle of the year. This figure is 7.8 percent higher than the value at the start of the year but lower than the prior-year figure (December 31, 2014: EUR 173.3 million; September 30, 2014: EUR 200.4 million).

¹ If available, plus amounts accruing from the issue of new shares including the costs of raising capital.

in € million	Sept. 30, 2015	Dec. 31, 2014	Change as a %	Sept. 30, 2014	Change as a %
Total non-current assets	844.7	814.1	3.8	816.3	3.6
Total current assets	743.0	633.5	17.3	651.7	14.0
Total assets	1,587.7	1,447.6	9.7	1,468.0	8.2
Equity before minority interests	1,045.8	1,011.7	3.4	990.1	5.6
Total non-current liabilities	203.8	209.1	-2.4	203.9	0.0
Total current liabilities	333.3	222.2	50.0	269.9	23.3
Minority interests	4.9	4.5	8.9	4.2	25.0
Total liabilities	1,587.7	1,447.6	9.7	1,468.0	8.2

Assets, equity and liabilities

Total current assets rose to EUR 743.0 million (December 31, 2014: EUR 633.5 million; September 30, 2014: EUR 651.7 million).

Group equity before minority interests (equity attributable to shareholders in the parent company) amounted to EUR 1,045.8 million at the close of September 2015 (December 31, 2014: EUR 1,011.7 million; September 30, 2014: EUR 990.1 million). The equity ratio before minority interests decreased to 65.9 percent as a result of the Group drawing on loans (December 31, 2014: 69.9 percent; September 30, 2014: 67.5 percent) and thus remained at a high level for the industry. The company's share capital remained unchanged at EUR 70.14 million.

Non-current financial liabilities decreased to EUR 124.5 million (December 31, 2014: EUR 126.6 million; September 30, 2014: EUR 128.4 million). Trade payables rose to EUR 91.0 million as a result of longer payment periods (December 31, 2014: EUR 65.2 million; September 30, 2014: EUR 88.6 million). Total current liabilities amounted to EUR 333.3 million (December 31, 2014: EUR 222.2 million; September 30, 2014: EUR 269.9 million). This reflects the rise in short-term borrowings from banks since the start of the year to finance working capital in the first half of the year.

Working capital developments

Working capital rose 14.5 percent to EUR 609.6 million in the first nine months of the year (December 31, 2014: EUR 532.2 million). This represents an increase of 16.6 percent relative to the prior year (September 30, 2014: EUR 523.0 million). The increase in working capital is attributable to the increase in inventories and currency effects.

The ratio of working capital to annualized revenue based on Q3 revenue amounted to 49.01 percent (Q3 2014: 41.42 percent). This is attributable to the lower revenue levels for the quarter. This figure is also higher than the Q2 2015 value (41.3 percent).

Solid financing structure

At September 30, 2015, net financial debt3 increased to EUR 241.1 million (December 31, 2014: EUR 179.5 million; September 30, 2014: EUR 198.9 million). This is attributable to the short-term loans that the Group drew on during the first half of the year. Net financial debt has decreased slightly since the middle of the year (Q2 2015: EUR 256.1 million).

• ³ Net financial debt = long- and short-term borrowings + current portion of long-term borrowings - marketable securities
• (if available and freely disposable) cash and cash equivalents.

Net financial position

in € million	Sept. 30, 2015	Dec. 31, 2014	Sept. 30, 2014
Long-term borro wings from banks	-124.5	-126.6	-128.4
Short-term borro wings from banks	-135.1	-66.7	-88.0
Current portion of long-term borro wings from banks	-0.4	-0.4	-0.5
Cash and cash equivalents	18.9	14.2	18.0
Total	-241.1	-179.5	-198.9
Gearing as a %	23.1	17.7	20.1

Gearing4 was posted at 23.1 percent at the closing date (December 31, 2014: 17.7 percent). The Group's financing structure thus remains strong.

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).

The Wacker Neuson Group utilizes off-balance-sheet financial instruments, such as the sale of receivables, to a limited extent only. In connection with the sale of receivables, customers are offered financing models through external companies. These are in part interestsubsidized (with a negative impact on revenue) and can also be reported as factoring in the wider context. However, the Wacker Neuson Group only uses these schemes to support product sales.

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: 609.6/(311.0*4) = 49.0 percent.

Note on calculation: 523.0/(316.2*4) = 41.4 percent.

⁴ Gearing = net financial debt/equity before minority interests.

Segment reporting

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

Segment reporting provides an overview of business developments according to region (Europe1 , Americas and Asia-Pacific). The Group also breaks revenue down according to business segment (light equipment, compact equipment and services).

In the first nine months of 2015, all regions reported a rise in revenue. At times, currency effects had a significant impact on revenue in the Americas and Asia-Pacific.

Results for Europe, the Americas and Asia-Pacific

Revenue by region 9M 2015 as a % (previous year)

Differences attributable to rounding.

Revenue growth in core market Europe

At 71.8 percent, Europe1 accounted for the lion's share of Wacker Neuson Group revenue (9M 2014: 73.6 percent of total revenue). Group revenue for the region increased 6.0 percent to EUR 730.7 million in the first nine months of 2015 (9M 2014: EUR 689.3 million). Profit before interest and tax (EBIT) amounted to EUR 94.9 million, which corresponds to a decrease in profitability of 10.7 percent relative to the previous year (9M 2014: EUR 106.3 million).

In the third quarter of the year, the Group posted revenue of EUR 220.4 million for Europe (Q3 2014: EUR 230.1 million), a 4.2-percent decrease compared with the previous year. This is primarily attributable to the decline in revenue from agricultural machinery and a further downturn in French, South African and Russian markets, particularly in the third quarter. The weak performance of the euro means that the products manufactured in the Group's US factories can only be sold in Europe with significantly reduced margins.

¹ Including South Africa, Turkey and Russia. The Wacker Neuson Group includes these countries in its Europe segment even though – geographically speaking – they are located outside of the region.

Europe 9M 2015 and 2014 in € million

Revenue trends in the Americas

Revenue in the Americas region rose 15.4 percent relative to the previous year to reach EUR 254.1 million in the first nine months of the year (9M 2014: EUR 220.2 million). The region's share of total revenue rose to 25.0 percent (9M 2014: 23.5 percent). When adjusted to discount currency effects, revenue remained on the same level as the previous year.

At EUR 79.2 million, third-quarter revenue rose 3.1 percent relative to the previous year (Q3 2014: EUR 76.8 million). Adjusted to discount currency effects, this corresponds to a decrease of 7.4 percent.

Canada in particular is suffering under the effects of the crisis in the oil and gas sector. Since the third quarter of the year, demand in the construction sector also started to decline here. This has brought down demand for equipment – in particular compact equipment. The increase in value of the US dollar relative to the Canadian dollar is compounding the situation further by making imports from the US more expensive. The oil and gas crisis is also having

Revenue

254.1
220.2
7.5
16.7

in € milion	Europe		Americas		Asia-Pacific		Consolidation		Group
	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014
9M
Total sales	1,270.8	1,164.1	662.7	555.4	68.3	40.7			2,001.8	1,760.2
Sales to third parties	730.7	689.3	254.1	220.2	32.6	26.6			1,017.4	936.2
EBIT	94.9	106.3	7.5	16.7	2.0	0.8	-23.2	-20.3	81.2	103.5
EBIT margin1 (as a %)	7.5	9.1	1.1	3.0	2.9	2.0
Q3
Total sales	378.5	385.3	207.3	193.5	31.6	13.5			617.4	592.2
Sales to third parties	220.4	230.1	79.2	76.8	11.4	9.3			311.0	316.2
EBIT	21.6	41.2	-4.4	7.2	0.7	0.3	-2.3	-8.6	15.5	40.1
EBIT margin1 (as a %)	5.7	10.7	-2.1	3.7	2.2	2.2

EBIT margin on total sales.

a negative impact on Wacker Neuson's business in the US construction industry. The Group was able to largely offset any downturns here with business in other industries.

While Mexico developed positively, demand for light and compact equipment in South America was again weak. This is primarily attributable to the ongoing crisis in Brazil and Chile. Profitability was particularly affected by exchange rates in South American markets, which fell sharply against the US dollar and the euro.

EBIT fell to EUR 7.5 million over the first nine months of the year (9M 2014: EUR 16.7 million).

Revenue trends in Asia-Pacific

Asia-Pacific is an important growth market for the Wacker Neuson Group. Demand for high-quality products is steadily rising in that region. The Group is therefore committed to developing dedicated measures for this region and offers a selected range of products tailored to the needs of local markets. These products are robust with a less complex design and built to Wacker Neuson's high quality standards.

At EUR 32.6 million, revenue for the first nine months of the year in Asia-Pacific rose 22.6 percent relative to the previous year (9M 2014: EUR 26.6 million). The region's share of total revenue amounted to 3.2 percent (9M 2014: 2.8 percent). When adjusted to discount currency effects, revenue grew by 12.1 percent.

Asia-Pacific 9M 2015 and 2014 in € million

Revenue

Profit before interest and tax (EBIT) amounted to EUR 2.0 million (9M 2014: EUR 0.8 million).

At EUR 11.4 million, third-quarter revenue rose 22.6 percent relative to the previous year (Q3 2014: EUR 9.3 million). This corresponds to a rise of 19.7 percent when adjusted to discount currency effects.

At 11.6 percent, emerging markets' ¹ share of total revenue in the first nine months of 2015 was slightly below the previous year's level (9M 2014: 12.0 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.

Results for the light equipment, compact equipment and services segments

Revenue by business segment 9M 2015 as a % (previous year)

Light equipment revenue 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. In this segment, production is demand-driven with short delivery times. The Wacker Neuson Group therefore does not report an order backlog for this segment.

Light equipment revenue (before cash discounts) in the first nine months of 2015 developed below expectations due to weak demand in numerous countries and strong currency movements. At EUR 320.4 million, revenue from this segment was 3.6 percent higher than the prior-year period (9M 2014: EUR 309.3 million).

The segment's share of total revenue narrowed to 31.0 percent (9M 2014: 32.6 percent). When adjusted to discount currency effects, revenue for the first nine months of the year decreased by 5.3 percent. Currency effects have a greater impact on the light equipment segment as it has a more international footprint than the compact equipment segment. The light equipment business was therefore affected more strongly by negative trends in distressed markets such as South America, Canada and Russia.

In the third quarter of 2015, revenue rose by just 1.2 percent to EUR 107.2 million (Q3 2014: EUR 105.9 million). When adjusted to discount currency effects, revenue fell 4.8 percent.

Revenue growth strongest in the compact equipment segment

The compact equipment business segment covers compact machinery targeted at the construction and agricultural industries, gardening, landscaping and industrial firms as well as recycling companies and municipal bodies. The portfolio includes excavators, wheel loaders, skid steer loaders and telescopic handlers as well as wheel and track dumpers weighing up to 15 tons.

Revenue before cash discounts from the compact equipment segment increased 14.8 percent from EUR 441.4 million in the previous year to EUR 506.6 million in the first nine months of 2015. The segment's share of total revenue rose to 49.0 percent for the period under review (9M 2014: 46.5 percent). Adjusted to discount currency effects, this corresponds to an increase of 13.3 percent.

Segment revenue for the third quarter fell 5.4 percent relative to the previous year. This is primarily attributable to the unexpectedly sharp drop in sales of equipment for the agricultural sector. When adjusted to discount currency effects, third quarter revenue decreased 5.8 percent.

During the first half of 2015, revenue from agricultural equipment grew 16.6 percent relative to the previous year. In the third quarter, however, the Group reported an unexpectedly sharp drop in revenue of 28.4 percent due to falling demand.

The strained liquidity situation in many holdings drastically dampened willingness to invest among landholders. As a result, revenue from agricultural equipment for the first nine months of 2015 was only slightly higher than the previous year at EUR 140.6 million (9M 2014: EUR 139.2 million). Agricultural compact equipment's share of total Group revenue thus fell to 13.8 percent (9M 2014: 14.7 percent).

The Group's customers continue to place orders at short notice. It is therefore crucial that the Group is also able to deliver these short-term orders as quickly as possible (which, in turn, requires sufficient inventory). At the closing date, accumulated order intake (for the period from January 1 through September 30) for compact equipment for the construction and agricultural sectors remained at the same level as the previous year.

Financing options are becoming increasingly important for customers in the compact equipment segment. The Wacker Neuson Group is extending its offering here to more international markets and collaborating with strong, independent financing partners.

Revenue by business segment

in € million	Q3/2015	Q3/2014	9M/2015	9M/2014
Segment revenue
Light equipment	107.2	105.9	320.4	309.3
Compact equipment	136.4	144.2	506.6	441.4
Services	73.7	70.7	207.1	198.5
	317.3	320.7	1,034.1	949.2
Less cash discounts	-6.3	-4.6	-16.7	-13.0
Total	311.2	316.2	1,017.4	936.2

Revenue trends in the services segment

The Wacker Neuson Group complements new equipment sales with an extensive range of services. The services segment covers the global repair and spare parts business, the used equipment business and rental in Central Europe.

Revenue before cash discounts from the services segment in the first nine months of 2015 rose by 4.3 percent to EUR 207.1 million (9M 2014: EUR 198.5 million). Adjusted to discount currency effects, revenue remained at the same level as the previous year. The services segment's share of total revenue amounted to 20.0 percent (9M 2014: 20.9 percent).

Other factors that impacted on results

Headcount trends

In the first nine months of 2015, the number of permanent employees rose to 4,696 since the start of the year (December 31, 2014: 4,372). This corresponds to a rise of 10.0 percent relative to the previous year (September 30, 2014: 4,271).1

Research and development activities secure leading position

Much of the Wacker Neuson Group's 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. The Group's 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. Its products are also designed to deliver the highest productivity levels for customers by providing optimum power in vibratory plates, for example, or through innovations such as the Vertical Digging System® for excavators.

The Group's development efforts also aim to secure a pioneering position in product safety, operator safety and environmental protection. Noise- and vibration-reduction features (such as low hand-arm vibrations in vibratory plates), as well as safety features (such as infrared remote controls for trench rollers or the Smart Handling® system for telescopic handlers) are key examples of operator safety innovations here.

In addition, research, development and innovation are key to achieving the Group's climate protection goals. These activities have a high priority for the Wacker Neuson Group as it intends to maintain high standards in the delivery of environmentally sound, safe products moving forward. The Group will therefore continue to focus its R&D efforts on compliance with more stringent international environmental regulations governing combustion engine emissions and on the development of alternative drive technologies.

Wacker Neuson is currently raising the bar with its innovative, zero-emissions range of products. These models are particularly kind to operators and the environment, delivering the same performance levels as conventional machines without producing any emissions at all. In 2013, the Wacker Neuson Group also launched its ECO seal of approval to highlight particularly environmentally friendly and efficient products.

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.

Changes to the opportunity and risk situation

In the first nine months of 2015, the Wacker Neuson Group continued to implement its risk management system as a key risk steering tool for business decisions and processes. This internal control and risk management system is described in detail in the consolidated financial statements for 2014.

Environment and industry risks have increased since the start of the year. There is a risk that individual markets could be hit by a stronger economic downturn than was previously expected. Downturns in construction and agriculture in key markets for the Group could increasingly dampen sales of light and compact equipment and continue to negatively impact profit levels. The Group is committed to offsetting fluctuations in individual countries and industries with the growth initiatives it has already implemented and through targeted cost-saving measures.

Financial and economic risks have increased since the start of the year. This is primarily linked to the risk of currencies in some emerging markets losing value against the currencies in which the Group manufactures its products (EUR/USD). Expected revenue and earnings from these countries would lose value significantly when consolidated into the Group's financial statements, which are prepared in euros. The Group is monitoring the corresponding currencies on an ongoing basis. To counteract this risk, wherever possible, the Group is agreeing prices with some customers based on the currency in which the products in question were manufactured at the time the contracts are concluded.

In addition, liabilities in foreign currencies are higher than in the previous year. If the exchange rates related to these liabilities develop unfavorably for the company, in particular with regard to the US dollar, this could have a negative impact on the value of liabilities (expressed in euros). The Group is monitoring this risk closely within the framework of its treasury management activities and, where necessary, is implementing appropriate countermeasures to hedge against these foreign currency items in the balance sheet.

The remaining, unchanged risk factors are outlined in the Annual Report 2014 on pages 84 to 87.

Company management is not currently aware of any other significant risks to the Group. The company has also 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 on page 88 of the 2014 Annual Report and in the Outlook section of this interim management report.

Supplementary report

On October 14, 2015, the Executive Board reported that it would no longer be able to commit to its previous revenue and earnings forecast for the fiscal year and thus revised its forecast for 2015. The Executive Board now expects revenue to amount to between EUR 1.35 and EUR 1.40 billion (previously: EUR 1.40 to 1.45 billion; 2014: EUR 1.28 billion) with an EBIT margin between 7.0 and 8.0 percent (previously: 9.5 to 10.5 percent; 2014: 10.6 percent).

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

Outlook

Slight decline in global economy expected

In light of developments in the Chinese economy, which is in need of reform, and weak economic signals from emerging markets, the International Monetary Fund (IMF) revised its global economic growth forecast downwards in October 2015 for the second time this year. The IMF now expects the global economy to grow by just 3.1 percent instead of its previous forecast of 3.3 percent. It expects established economies to continue providing stabilizing impetus here.

Economic recovery in the eurozone is likely to continue at a modest pace, with Italy the last of the major European economies to emerge from the recession. The IMF continues to anticipate an increase in economic output of 1.5 percent for Europe. High-export countries, in particular, should continue to benefit from a much weaker euro relative to last year. In addition, many countries in the eurozone are reporting increases in domestic demand, fueled in part by the sharp drop in energy prices. In addition to the high debt levels of southern European countries, the refugee crisis emerged as a further risk factor for the European economy

during the third quarter. A long-term solution for this influx has yet to be found.

The IMF revised its 2015 growth forecast for Germany downwards slightly from 1.6 to 1.5 percent. Nevertheless, Germany should still remain one of the pillars of the economic recovery in Europe, together with the UK. The IMF also remains positive about Spain and expects the country to achieve economic growth of 3.1 percent. In contrast, the French economy is expected to continue developing at a very modest rate, at least for the remainder of this year. There is a lot of uncertainty in the country – in particular in the construction sector – due to political reforms, which include reorganization of the country's national administrative structures.

Initially the IMF had cut back its forecast for the US economy significantly. Following a comparably strong second quarter, it has increased its prognosis for the region slightly again. The US economy is now expected to expand by 2.6 percent in 2015. The experts' medium-term growth prognosis also remains positive.

In light of declining prices for crude oil and other key industrial commodities, the IMF again reduced its growth projections for numerous emerging markets in its latest report. Brazil's economic output is thus set to contract significantly by 3.0 percent and the Russian economy by 3.8 percent in 2015. The experts' growth forecast for China remains unchanged at 6.8 percent while India is set to expand by 7.3 percent, which is a slightly slower rate than was previously expected.

Pace of growth slowing in the construction equipment industry

Although individual application segments have developed at varying rates recently, the Committee for European Construction Equipment (CECE) remains cautiously optimistic in general about the remaining months of 2015. The majority of markets in Europe are stable or expanding. This includes heavyweights such as Germany and the UK. However, this overall picture is dampened by significant downturns in France and Russia. The German Engineering Federation (VDMA) forecasts revenue growth of around 4 percent for German construction equipment manufacturers.

The pace of growth in the US construction equipment industry has slowed recently. With regards to the year as a whole, however, positive trends in commercial and residential construction should offset the slowdown in investments in the oil and gas sector. The prospects for markets in South America, many of which are dependent on the distressed mining industry, remain much more subdued. According to the CECE, loss mitigation will also be the only avenue open to suppliers in China for the remainder of the year. It does not expect the slight upturn in India and continued solid demand in the Middle East make any real difference to this overall negative picture.

Agriculture under increasing pressure to increase efficiency levels

Germany and other European markets are not expected to provide any positive impetus in the short term. This is attributable to ongoing pressure on landholders' earnings caused by a number of factors including the lowest milk prices for many years (close of September 2015: EUR 0.23/ liter) and high dealer inventory levels (for new and used equipment). According to an economic barometer drawn up by the German Farmers' Association's (DBV), investments have fallen to a record low. Based on the current situation, the milk price is not expected to recover to any significant extent.

Geopolitical crises (including the Russian embargo and the crisis in Ukraine and Russia) continue to impact the economic situation. The European umbrella association of the agricultural machinery industry (CEMA) forecasts a drop in revenue of around 5 percent for 2015. The German Engineering Federation's (VDMA) short-term forecast for the German agricultural sector is somewhat more pessimistic, with revenue for 2015 expected to fall by as much as 10 percent.

Nevertheless, universal trends – such as the world's growing population and the resulting increase in demand for foodstuffs – should continue to have a positive effect on the agricultural equipment sector in the medium and long term. The basic need for modern machines, particularly to work agricultural holdings efficiently, should therefore continue to increase. Falling market prices for agricultural commodities could increase pressure to raise efficiency levels further. In its Agricultural Outlook 2015, the OECD projects that, in real terms, prices will decrease over the next ten years.

Strategies for further growth

The Wacker Neuson Group has set itself ambitious goals for the coming years. The Group's focus is set on increasing market penetration and expanding its market share. In addition, the company remains committed to strengthening its position as an international innovation leader in the industry. By concentrating more on user processes and market requirements, the Wacker Neuson Group 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 the strategic alliance with Caterpillar, will deliver further growth potential in this segment. The Wacker Neuson Group also intends to increase its presence in regions in which it has identified concrete sales potential.

Revised forecast for 2015

The Executive Board now expects revenue for fiscal 2015 to range between EUR 1.35 and EUR 1.40 billion (2014: EUR 1.28 billion) with an EBIT margin of between 7.0 and 8.0 percent (2014: 10.6 percent). This is a lower revenue range than the forecast from March 2015, which predicted revenue of between EUR 1.40 and 1.45 billion and an EBIT margin of between 9.5 and 10.5 percent.

For the current fiscal year, the Group has earmarked around EUR 95 million in total for investments (2014: EUR 90 million). This includes investments in the expansion of the compact equipment plant in Hörsching, Austria.

The Group has already initiated measures aimed at reducing working capital, in particular inventory, and adapting costs to the current revenue forecast.

The Group aims to maintain its solid balance sheet structure with a comparatively high equity ratio. Equity ratio is currently around 66 percent and net financial debt is comparatively low. Gearing is not expected to rise significantly. As such, the Group is in a comfortable financial position. It aims to continue leveraging its strong financials and assets to drive further profitable growth over the coming two years.

With a view to enhancing its product portfolio and expanding its international footprint, the Group is not ruling out the possibility of further partnerships and acquisitions.

Munich, November 10, 2015 Wacker Neuson SE

The Executive Board

Cem Peksaglam CEO

CTO CFO (Deputy CEO)

Martin Lehner Günther C. Binder

Consolidated Income Statement

July 1 through September 30 and January 1 through September 30

	Jul. 1– Sept. 30,	Jul. 1– Sept. 30,	Jan. 1– Sept. 30,	Jan. 1– Sept. 30,
in € K	2015	2014	2015	2014
Revenue	310,979	316,164	1,017,405	936,157
Cost of sales	-224,637	-220,410	-723,515	-653,719
Gross profit	86,342	95,754	293,890	282,438
Sales and service expenses	-44,809	-41,787	-138,663	-125,075
Research and development expenses	-7,976	-7,301	-25,327	-21,108
General administrative expenses	-19,052	-15,901	-54,299	-46,574
Other income	6,608	10,523	20,277	18,324
Other expenses	-5,592	-1,220	-14,661	-4,522
Profit before interest and tax (EBIT)	15,521	40,068	81,217	103,483
Financial income	588	725	1,550	2,058
Financial expenses	-2,193	-2,143	-6,372	-6,493
Profit before tax (EBT)	13,916	38,650	76,395	99,048
Taxes on income	-5,309	-12,174	-22,267	-29,769
Total profit/loss for the period	8,607	26,476	54,128	69,279
Of which are attributable to:
Shareholders in the parent company	8,524	26,462	53,742	68,973
Minority interests	83	14	386	306
	8,607	26,476	54,128	69,279
Earnings per share in EUR (diluted and undiluted)	0.12	0.38	0.77	0.98

Consolidated Statement of Comprehensive Income July 1 through September 30 and January 1 through September 30

	Jul. 1– Sept. 30,	Jul. 1– Sept. 30,	Jan. 1– Sept. 30,	Jan. 1– Sept. 30,
in € K	2015	2014	2015	2014
Total profit/loss for the period	8,607	26,476	54,128	69,279
Other income
Profit/loss to be recognized in the income statement
for subsequent periods:
Exchange differences	-8,646	13,659	13,724	16,589
Profit/loss to be recognized in the income
statement for subsequent periods	-8,646	13,659	13,724	16,589
Profit/loss not to be recognized in the income state
ment for subsequent periods:
Actuarial gains/losses from pension obligations	41	-2,641	2,288	-3,984
Effect of taxes on income	-10	745	-674	1,124
Profit/loss not to be recognized in the income
statement for subsequent periods	31	-1,896	1,614	-2,860
Other comprehensive income after tax	-8,615	11,763	15,338	13,729
Total comprehensive income after tax	-8	38,239	69,466	83,008
Of which are attributable to:
Shareholders in the parent company	-91	38,225	69,080	82,702
Minority interests	83	14	386	306
	-8	38,239	69,466	83,008

Consolidated Balance Sheet

As at September 30

in € K	Sept. 30, 2015	Dec. 31, 2014	Sept. 30, 2014
Assets
Property, plant and equipment	410,013	388,907	398,781
Investment properties	17,728	17,998	18,233
Goodwill	238,011	237,290	236,987
Intangible assets	121,743	117,095	115,070
Deferred tax assets	43,123	35,018	36,179
Other non-current financial assets	11,833	16,170	9,528
Other non-current non-financial assets	2,224	1,589	1,559
Total non-current assets	844,675	814,067	816,337
Inventories	513,838	424,036	411,178
Trade receivables	186,793	173,317	200,436
Tax offsets	3,504	2,834	4,189
Other current financial assets	3,815	5,071	3,153
Other current non-financial assets	16,137	14,042	14,744
Cash and cash equivalents	18,922	14,200	17,988
Total current assets	743,009	633,500	651,688
Total assets	1,587,684	1,447,567	1,468,025
Equity and liabilities
Subscribed capital	70,140	70,140	70,140
Other reserves	604,746	589,408	590,325
Net profit/loss	370,873	352,201	329,662
Equity attributable to shareholders in the parent company	1,045,759	1,011,749	990,127
Minority interests	4,860	4,474	4,171
Total equity	1,050,619	1,016,223	994,298
Long-term borrowings	124,480	126,593	128,360
Deferred tax liabilities	31,978	33,187	32,502
Long-term provisions	47,310	49,358	43,003
Total non-current liabilities	203,768	209,138	203,865
Trade payables	90,995	65,187	88,591
Short-term borrowings from banks	135,100	66,682	87,999
Current portion of long-term financial borrowings	370	441	463
Short-term provisions	12,462	12,827	12,850
Tax liabilities	938	1,357	1,414
Other short-term financial liabilities	29,108	25,347	26,056
Other short-term non-financial liabilities	64,324	50,365	52,489
Total current liabilities	333,297	222,206	269,862
Total liabilities	1,587,684	1,447,567	1,468,025

Consolidated Statement of Changes in Equity As at September 30

						Equity at tributable
						to share
	Sub		Exchange	Other		holders in
	scribed	Capital	differ	neutral	Net profit/	the parent	Minority	Total
in € K	capital	reserves	ences	changes	loss	company	interests	equity
Balance at January 1, 2014	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	68,973	68,973	306	69,279
Other comprehensive income	0	0	16,589	-2,860	0	13,729	0	13,729
Total comprehensive income	0	0	16,589	-2,860	68,973	82,702	306	83,008
Dividends	0	0	0	0	-28,056	-28,056	0	-28,056
Balance at September 30, 2014	70,140	618,661	-17,299	-11,037	329,662	990,127	4,171	994,298
Balance at January 1, 2015	70,140	618,661	-13,722	-15,531	352,201	1,011,749	4,474	1,016,223
Total profit/loss for the period	0	0	0	0	53,742	53,742	386	54,128
Other comprehensive income	0	0	13,724	1,614	0	15,338	0	15,338
Total comprehensive income	0	0	13,724	1,614	53,742	69,080	386	69,466
Dividends	0	0	0	0	-35,070	-35,070	0	-35,070
Balance at September 30, 2015	70,140	618,661	2	-13,917	370,873	1,045,759	4,860	1,050,619

Consolidated Cash Flow Statement

July 1 through September 30 and January 1 through September 30

in € K	Jul. 1– Sept. 30, 2015	Jul. 1– Sept. 30, 20141 (adjusted)	Jan. 1– Sept. 30, 2015	Jan. 1– Sept. 30, 20141 (adjusted)
Profit before tax (EBT)	13,916	38,650	76,395	99,048
Adjustments to reconcile profit before tax with gross
cash flow:
Depreciation and amortization expense	16,612	15,018	49,098	44,573
Other non-cash income/expenditure	7,633	-5,038	-3,275	-6,612
Gains/losses from sale of intangible assets and property,
plant and equipment	-513	970	-767	1,408
Book value from the disposal of rental equipment	3,938	4,697	14,207	14,590
Actuarial gains/losses from pension obligations	31	-1,896	1,614	-2,860
Financial result	1,605	1,422	4,822	4,439
Changes in misc. assets	-1,648	-12	2,398	-6,126
Changes in provisions	630	1,916	-2,755	2,881
Changes in misc. liabilities	-1,472	1,818	12,217	9,398
Interest paid	-1,075	-1,104	-7,237	-7,393
Income tax paid	-7,747	-12,017	-28,371	-26,056
Interest received	529	714	1,491	2,050
Gross cash flow	32,439	45,138	119,837	129,340
Changes in inventories	-26,837	-44,908	-80,577	-64,464
Changes in trade receivables	43,160	8,355	-10,850	-30,613
Changes in trade payables	-7,427	15,113	24,427	42,301
Changes in working capital	8,896	-21,440	-67,000	-52,776
Cash flow from operating activities	41,335	23,698	52,837	76,564
Purchase of property, plant and equipment	-24,425	-16,963	-72,299	-61,951
Purchase of intangible assets	-3,688	-4,063	-11,320	-11,684
Proceeds from the sale of property, plant and equipment,
intangible assets and non-current assets held for sale	1,598	539	2,792	1,232
Change in consolidation structure	27	0	-397	0
Cash flow from investment activities	-26,488	-20,487	-81,224	-72,403
Free cash flow2	14,847	3,211	-28,387	4,161
Dividends	0	0	-35,070	-28,056
Cash outgoings/receipts from short-term/
long-term borrowings	-16,192	3,128	70,817	28,046
Repayments from short-term/long-term borrowings	-1,757	-1,769	-2,184	-2,234
Cash flow from financing activities	-17,949	1,332	33,563	-2,244
Increase/decrease in cash and cash equivalents	-3,102	4,543	5,176	1,917
Effect of exchange rates on cash and cash equivalents	-1,062	345	-454	538
Change in cash and cash equivalents	-4,164	4,888	4,722	2,455
Cash and cash equivalents at beginning of period	23,086	13,100	14,200	15,533
Cash and cash equivalents at end of period	18,922	17,988	18,922	17,988

The cash flow from the previous year has been adjusted in line with the new presentation of cash flow for the year under review (see p. 27).

Free cash flow = cash flow from operating activities + cash flow from investment activities.

Consolidated Segmentation January 1 through September 30

in € K	Europe	Americas	Asia-Pacific	Consolidation	Group
9M 2015
Segment revenue
Total sales	1,270,807	662,675	68,310		2,001,792
Less intrasegment sales	-440,766	-372,670	-18,323		-831,759
	830,041	290,005	49,987		1,170,033
Intersegment sales	-99,330	-35,891	-17,407		-152,628
Total	730,711	254,114	32,580		1,017,405
EBIT	94,898	7,457	2,017	-23,155	81,217
Depreciation/amortization	47,598	6,519	680	-5,699	49,098
EBITDA1	142,496	13,976	2,697	-28,854	130,315
9M 2014
Segment revenue
Total sales	1,164,127	555,372	40,688		1,760,187
Less intrasegment sales	-406,413	-299,888	-2,251		-708,552
	757,714	255,484	38,437		1,051,635
Intersegment sales	-68,399	-35,279	-11,800		-115,478
Total	689,315	220,205	26,637		936,157
EBIT	106,265	16,722	753	-20,257	103,483
Depreciation/amortization	44,204	5,426	608	-5,665	44,573
EBITDA1	150,469	22,148	1,361	-25,922	148,056

¹ EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization.

Information at company level

Products and services

	Jan. 1–Sept. 30,	Jan. 1–Sept. 30,
in € K	2015	2014
Sales to third parties
Light equipment	320,378	309,276
Compact equipment	506,623	441,383
Services	207,081	198,532
	1,034,082	949,191
Less cash discounts	-16,677	-13,034
Total	1,017,405	936,157

Geographical areas

Revenue according to company location

	Jan. 1–Sept. 30,	Jan. 1–Sept. 30,
in € K	2015	2014
Wacker Neuson overall	1,017,405	936,157
of which Germany	385,327	370,476
of which outside Germany	632,078	565,681
of which USA	195,792	155,526

Non-current assets according to company location

in € K	Sept. 30, 2015	Sept. 30, 2014
Wacker Neuson overall	789,719	770,630
of which Germany	267,863	283,194
of which outside Germany	521,856	487,436
of which Austria	352,691	340,989

The non-current assets reported here include property, plant and equipment, investment properties, intangible assets and other non-current non-financial assets that are not classified as financial instruments.

Selected Explanatory Notes to the Interim Financial Statements for Q3 2015

Accounting rules

The Wacker Neuson SE consolidated interim financial statements to September 30, 2015 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, 2014. The comments there also apply to the quarterly and half-year statements for fiscal 2015, unless explicitly stated otherwise.

The general accounting principles, valuation methods and estimates used for the fiscal 2014 consolidated statements have also been applied to these interim financial statements.

With regards to pension provisions, the effects of the change in interest rate were determined and entered on the balance sheet. This primarily covers the interest rate change in the reporting period.

Amendments to IAS 19 (Defined benefit plans: employee contributions) as well as the changes contained in the Annual Improvement to IFRSs 2010 – 2012 and 2011– 2013 cycles apply for the first time in the current fiscal year. These have not had any effect on the company.

Legal changes to company structure

The following companies were included in the consolidation structure in 2015:

Company name	Country
Wacker Neuson Bogotá S.A.S.	Colombia
Wacker Neuson Lima S.A.C.	Peru
Wacker Neuson Shanghai Ltd.	China
Wacker Neuson (Singapore) PTE. LTD	Singapore
Wacker Neuson Holding Limited	Thailand

These companies were not previously consolidated within the Group due to their minor impact on the Group's net assets, financials and earnings.

Seasonal fluctuations

The construction and agricultural industries are 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 2012 through 2014 was as follows:

as a %	2014	2013	2012
Q1	23	22	25
Q2	25	28	26
Q3	25	24	23
Q4	27	26	26

The increase in working capital, and inventories in particular, is attributable to the expected increase in demand in the first half-year and currency effects. The Group financed the increase in working capital through cash flow from operating activities and through short-term borrowings from banks.

The large change relative to the previous year in the "Exchange differences" item in the Consolidated Statement of Comprehensive Income (see p. 20) was largely due to the development of the US dollar (USD) and Swiss franc (CHF).

Other operating income and expenses are primarily influenced by currency effects.

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.

	2015	2014
Q3
Quarterly earnings attributable to shareholders in € K	8,524	26,462
Weighted average number of ordinary shares in circulation during the period in thousands	70,140	70,140
Earnings per share in €
(diluted and undiluted)	0.12	0.38
9M
Quarterly earnings attributable to shareholders in € K	53,742	68,973
Weighted average number of ordinary shares in circulation
during the period in thousands	70,140	70,140
Earnings per share in € (diluted and undiluted)	0.77	0.98

Cash flow statement

The previous year's cash flow has been adjusted in line with the change in how cash flow is presented in the period under review. At the end of 2014, the Group determined the currency-related adjustments of all balance sheet items and allocated these individually instead of netting them under "Other non-cash income/expenditure" within the cash flow from operating activities. The comparative periods were adjusted as follows.

	Jan. 1 – Sept. 30, 2014 as	Adjust	Jan. 1 – Sept. 30, 2014
in € K	reported	ment	adjusted
Cash flow from operating activities	75,985	579	76,564
Cash flow from investment activities	-72,403	–	-72,403
Cash flow from financing activities	-1,436	-808	-2,244
Increase in cash and cash equivalents	2,146	-229	1,917
Effect of exchange rates on cash and cash equivalents	309	229	538
Change in cash and cash equivalents	2,455	–	2,455

in € K	Jul. 1 – Sept. 30, 2014 as reported	Adjust ment	Jul. 1 – Sept. 30, 2014 adjusted
Cash flow from operating activities	22,609	1,089	23,698
Cash flow from investment activities	-20,487	–	-20,487
Cash flow from financing activities	2,214	-882	1,332
Increase in cash and cash equivalents	4,336	207	4,543
Effect of exchange rates on cash and cash equivalents	552	-207	345
Change in cash and cash equivalents	4,888	–	4,888

Information on financial instruments

Additional information on financial instruments must be provided in this interim report due to the application of IFRS 13 in fiscal 2015.

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

in € K	Sept. 30, 2015 Fair value	Sept. 30, 2015 Book value
Assets
Other non-current assets	11,833	11,833
Trade receivables	186,793	186,793
Other current financial assets	3,815	3,815
Cash and cash equivalents	18,922	18,922

	Sept. 30, 2015	Sept. 30, 2015
in € K	Fair value	Book value
Liabilities
Long-term borrowings	129,711	124,480
Trade payables	90,995	90,995
Short-term borrowings from banks	135,100	135,100
Current portion of long-term borrowings	370	370
Other current financial liabilities	29,108	29,108

At September 30, 2015, only financial assets in the amount of EUR K 1,554 existed (previous year: EUR K 1,554) whose fair value is calculated using prices listed on active markets for identical financial assets (level 1 evaluation).

Segmentation

Segment reporting has been adjusted due to further developments in internal reporting and the presentation of information has been improved for users of the financial statements.

Intrasegment business transactions were previously reported under EBIT for the individual segments. Now they are listed in the Consolidation column.

Non-current assets and revenue will be reported according to key countries in the future.

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 a pension fund. The type and scope of related party disclosures are comparable to the previous year. Please refer to the 2014 Annual Report for more information.

Important events

At the Annual General Meeting on May 27, 2015, the shareholders of Wacker Neuson SE approved a dividend payout of EUR 0.50 per registered share. The actions of the Executive Board and Supervisory Board were approved for fiscal 2014.

Events since the interim statements

On October 14, 2015, the Wacker Neuson Group revised its revenue and earnings forecast for the current fiscal year downwards. For further information on this, please refer to the "Forecast for the year revised" section on page 5.

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

Munich, November 10, 2015 Wacker Neuson SE

The Executive Board

Cem Peksaglam CEO

CTO CFO (Deputy CEO)

Martin Lehner Günther C. Binder

Financial Calendar

Financial Calendar

2015

November 12, 2015 Publication of nine-month report 2015, Analyst Conference, Frankfurt November 23–25, 2015 German Equity Forum 2015, Frankfurt

2016

March 15, 2016	Publication of financial results 2015; Press Conference, Munich; Analyst Conference Call
May 12, 2016	Publication of first-quarter report 2016; Analyst Conference Call
May 31, 2016	AGM, Munich
August 4, 2016	Publication of half-year report 2016; Analyst Conference Call
November 10, 2016	Publication of nine-month report 2016; Analyst Conference, Frankfurt

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.wackerneusongroup.com

Publishing Details

Issued by: Wacker Neuson SE

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 November, 2015. 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.wackerneusongroup.com