Wacker Neuson SE — Interim / Quarterly Report 2015

Aug 10, 2015

H1/2015

Half-year report

Figures at a Glance

April 1 through June 30 and January 1 through June 30

	Apr. 1–Jun. 30,	Apr. 1–Jun. 30,		Jan. 1– Jun. 30,	Jan. 1– Jun. 30,
in € million	2015	2014	Change	2015	2014	Change
Key figures
Revenue	382.1	328.4	16.4%1	706.4	620.0	13.9%2
by region
Europe	279.0	243.2	14.7%	510.3	459.2	11.1%
Americas	91.1	75.5	20.7%	175.0	143.4	22.0%
Asia-Pacific	12.0	9.7	23.7%	21.1	17.4	21.3%
by business segment3
Light equipment	113.3	109.0	3.9%	213.2	203.4	4.8%
Compact equipment	204.1	156.1	30.7%	370.2	297.2	24.6%
Services	70.9	68.1	4.1%	133.4	127.9	4.3%
EBITDA	50.8	56.8	-10.6%	98.2	93.0	5.6%
Depreciation and amortization	16.8	15.4	9.1%	32.5	29.6	9.8%
EBIT	34.0	41.3	-17.7%	65.7	63.4	3.6%
EBT	32.3	39.8	-18.9%	62.5	60.4	3.5%
Profit for the period	23.9	28.2	-15.2%	45.2	42.5	6.4%
Number of employees	4,573	4,217	8.4%	4,573	4,217	8.4%
Share
Earnings per share in €	0.34	0.40	-15.2%	0.64	0.61	6.4%
Dividend per share in €4	0.50	0.40	25.0%	0.50	0.40	25.0%
Key profit figures
Gross profit as a %	29.1	30.7	-1.6 PP	29.4	30.1	-0.7 PP
EBITDA margin as a %	13.3	17.3	-4.0 PP	13.9	15.0	-1.1 PP
EBIT margin as a %	8.9	12.6	-3.7 PP	9.3	10.2	-0.9 PP

				Changes
Key figures from the balance sheet	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Jun. 30, 2014
Non-current assets	839.7	814.1	810.6	3.6%
Current assets	776.2	633.5	592.8	30.9%
Equity before minority interests	1,045.9	1,011.7	951.9	9.9%
Net financial debt	256.1	179.5	202.7	26.3%
Liabilities	565.2	431.3	447.3	26.4%
Equity ratio before minority interests as a %	64.7	69.9	67.8	-3.1 PP
Working capital	630.7	532.2	487.6	29.3%

	Apr. 1–Jun. 30,	Apr. 1–Jun. 30,		Jan. 1– Jun. 30,	Jan. 1– Jun. 30,
Cash flow	2015	2014	Change	2015	2014	Change
Cash flow from operating activities	32.1	34.2	-6.1%	11.5	52.9	-78.3%
Cash flow from investment	-29.4	-24.2	21.5%	-54.7	-51.9	5.4%
activities
Capital expenditure
(property, plant and equipment
and intangible assets)	29.7	24.9	19.3%	55.5	52.6	5.5%
Cash flow from financing activities	0.7	-19.9	–	51.5	-3.6	–
Free cash flow	2.7	10.0	-73.0%	-43.2	1.0	–

1 Adjusted to discount currency effects: 10.5 %.

2 Adjusted to discount currency effects: 8.2 %.

3 Consolidated revenue before discounts.

4 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 Six Months of 2015

At a glance

The Group reported a rise in revenue for the first six months of 2015 in all three regions – Europe, the Americas and Asia-Pacific. Once again, the compact equipment segment proved to be the main growth driver. The Group is distributing its portfolio in this segment to an increasingly international market. On May 27, 2015, the Annual General Meeting approved a dividend payout of EUR 0.50 per share for fiscal 2014. This is a 25-percent increase on the previous year.

H1 2015 compared with H1 2014

• Revenue increased by 14 percent to EUR 706 million. When adjusted to discount currency effects, this corresponds to an increase of 8 percent.
• The rise in revenue in the Americas (+22 percent) and Asia-Pacific (+21 percent) was primarily due to exchange rate effects. In Europe, revenue increased 11 percent. Compact equipment proved the strongest of the Group's business segments, posting a 25-percent rise in revenue. Revenue from the light equipment segment increased by 5 percent and the services segment reported a 4-percent increase.
• Profitability for the first six months of the year remained at a healthy level for the industry. The EBIT margin amounted to 9.3 percent (H1 2014: 10.2 percent).

Forecast

The Wacker Neuson Group has confirmed its annual forecast for 2015. Revenue is expected to increase to between EUR 1.40 and 1.45 billion (2014: EUR 1.28 billion), with an EBIT margin between 9.5 and 10.5 percent (2014: 10.6 percent). The Group remains committed to its strategy and intends to increase its reach in core markets and continue as planned on its expansion path.

• Letter from the CEO | 02
• Group Management Report | 04
• Interim Financial Statements | 18
• 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 | 25

• Review Report | 28
• Financial Calendar/IR Contact | 29

Cem Peksaglam CEO

Dear Ladies and Gentlemen,

The Wacker Neuson Group again reported above average results for the first half of 2015. For the first time ever, we can report revenue in excess of EUR 700 million for the first six months of a year. To be more exact, the final result of EUR 706 million is an impressive 14 percent higher than our record figure for 2014, clearly underscoring our continued progress on our growth path.

The situation in the global construction and agricultural industries during the first half of 2015 did not make this an easy task for us. Although the construction industry in North America performed solidly, the current crisis in the energy sector in that region continued to make itself felt. In South America, the situation in distressed countries such as Chile, Brazil and Argentina remained very difficult. In Europe, the majority of light and compact equipment markets remained intact. However, demand in France dropped significantly, bringing equipment sales down to the lowest level in the last five years. The Russian market contracted heavily once again and investments there have also fallen to levels equivalent to those in the last global economic crisis. In Asia, overcapacities in China continued to depress the market in this region and Australia showed no tangible signs of recovery. The agricultural sector is in recession, resulting in a marked reluctance to invest amongst farmers.

In light of these market downturns, many of our competitors reported what were in some cases significant negative impacts. The Wacker Neuson Group's business model, however, showed itself to be very robust. The fact that we are able to report revenue gains in all three regions – Europe (+11 percent), the Americas (+22 percent) and Asia-Pacific (+21 percent) underscores the effectiveness of our growth strategy. Increasing our international reach and proactively leveraging cross-selling opportunities both within our product segments and – thanks to diversification – across different industries have enabled us to offset fluctuations in individual market segments.

Our compact equipment business is the perfect example of this. Today, we distribute our excavators, wheel loaders, telescopic handlers and dumpers to a much more international customer base than we did five years' ago; an approach that has enabled us to gain market shares the world over. During the first half of 2015, revenue for this segment increased by 25 percent relative to the previous year and by more than 80 percent relative to 2011. Our success in the agricultural sector with Weidemannand Kramer-branded equipment highlights just how important it is for us to branch out into different industries. Our revenue from agricultural equipment for the first half of the year increased 17 percent against the backdrop of a contracting market climate. This corresponds to a rise of over 40 percent compared with 2011.

Our light equipment business, however, was impacted by a fall in demand across a number of markets, in particular South America, Canada, Russia, China and Australia. As a result, revenue for this segment developed below our expectations, rising by just 5 percent. When adjusted to discount currency effects, revenue for the segment actually fell 6 percent. Currency effects – above all the strength of the US dollar relative to the euro – had a major impact on our figures (translation effects).

Changes in the regional and product mix relative to the previous year impacted earnings. The compact equipment segment's share of Group revenue climbed to over 51 percent while the light equipment segment's share fell to just under 30 percent. The services business accounted for 19 percent of revenue. Although gross profit rose, the gross profit margin (as a percentage of revenue) fell slightly from 30.1 percent in the previous year to 29.4 percent this year, due to the differences in profit contributions from the individual business segments and regions.

We invested in our structures in recent months as a result of our strong growth. The expansion of our production, R&D and sales activities affected profit. These investments are important, however, as they provide a strong basis for our future growth. Translation effects also had an impact on costs, especially as quite a significant portion of our expansion initiatives took place outside of the eurozone. Nevertheless, profit before interest and tax (EBIT) rose by 4 percent relative to the previous year. With an EBIT margin of 9.3 percent for the first half of the year, the Wacker Neuson Group continues to demonstrate strong earnings potential, even though this figure is 0.9 percentage points lower than the prior-year figure. This drop is primarily attributable to profit figures for the second quarter of the year.

Our solid balance sheet ratios also support the Group's growth strategy. The balance sheet total increased 15 percent relative to the previous year to reach EUR 1.6 billion. Equity increased by 10 percent to EUR 1.05 billion. This gives us a healthy equity ratio of 65 percent. Investments in inventories pushed up working capital which, in turn, reduced cash flow from operating activities. However, this move is aimed at securing our delivery capabilities and supporting our international expansion; the H1 level marks the working capital high of the year and we expect it to fall towards the end of the year.

We have confirmed our annual forecast for 2015 and expect revenue to increase to between EUR 1.40 and EUR 1.45 billion. The EBIT margin is still forecast in a corridor between 9.5 and 10.5 percent. Our order books are full and give us every reason to remain optimistic. Our plans to launch truly new and innovative products to the market together with continued stable business in the US, initial signs of improvement in various crisis-hit countries and our stronger services segment should all have a positive impact on Group performance in the second half of 2015.

Fueled by the unwavering dedication and commitment of our employees and management teams, we are confident that we will be able to master the challenges facing our global business. I would like to thank all of our people for their efforts here and our shareholders for their continuous support.

Best regards,

Cem Peksaglam CEO, Wacker Neuson SE

Interim Group Management Report

Economic and business trends

Economic and business trends

Key trends in the world's economy also continued into the first half of 2015. These included robust development in established economies offset by slowing growth rates in emerging countries.

The eurozone economy continued to recover, fueled by the continued low in oil prices, a sharp drop in the value of the euro and rising demand in domestic markets. However, the situation continues to vary significantly from country to country. While Germany and Spain contributed disproportionately to the upturn, economic growth in France and Italy developed at a disappointing rate. The debt crisis in Greece reached a dramatic climax in the middle of the year and continues to pose high risks for the European economy. In July, following controversial negotiations, eurozone finance ministers approved an extensive third bailout package in return for wide-reaching reforms.

According to the German Institute for Economic Research (DIW), economic growth in Germany was primarily fueled by a strong service sector as well as the drop in value of the euro (especially against the US dollar) and current raw material prices, both of which helped drive exports. Private consumption benefited from positive labor market trends and rising wages. This was checked by concerns about Greece and ongoing political tensions with Russia, which dampened investment in the manufacturing industry.

The US economy suffered an unexpected downturn in the first half of 2015. This was triggered primarily by a harsh winter in the north-east of the country and port closures caused by strikes. These are considered to be temporary

factors, however. According to the International Monetary Fund (IMF), the underlying drivers for economic growth – such as low energy prices, attractive financial conditions and an unemployment rate that is significantly lower than the previous year – remain intact. The US real estate market was one of the sectors that benefited from these factors.

In the second quarter of 2015, the Chinese economy met the growth targets set by the government for the year as a whole. Nevertheless, the world's second largest economy continues to suffer from weak demand both in domestic and foreign markets. Expansionary measures such as tax incentives, interest rate reductions and increased government spending have not had the desired effect. A major crash on Chinese stock markets was an additional cause for concern from June onwards. Growth in other emerging economies was also more restrained compared with earlier periods, with economic growth declining in the two key economies of Brazil and Russia.

Construction industry trends

Global construction equipment sales developed at an uneven rate during the first half of 2015. Whereas the US reported solid growth for the period, demand in Canada was down as a result of falling demand from the energy sector. Sales were again down in crisis-hit countries in South America such as Chile, Brazil and Argentina.

In contrast, the market developed solidly in the majority of European countries, with the exception of France, where equipment sales fell to a level not seen since the crisis year of 2009. Sales were also down in Russia. In Asia, the difficult market situation in China caused a further decline in the region and there were also no tangible signs of recovery in Australia.

Trends in the agricultural sector

The European agricultural technology industry slumped in some cases by over 20 percent in the first half of 2015. This was due on the one hand to the high levels of investment in agriculture over the past three years, which saturated the market and led to a surplus offering of used equipment. On the other hand, falling prices for a wide range of agricultural products in 2014 reduced the incomes of agricultural landholders. Russia extending and tightening its import ban as well as increased price pressure on dairy products, the EU Commission's announcement to reduce financing and concerns about increased operating costs have all contributed to uncertainty over investments. In addition, a lack of land and high labor costs were key factors that prevented dairy farmers from expanding.

Business developments and highlights in the first half of the year

Six-month revenue and earnings at record level

The Wacker Neuson Group reported an overall upturn in business during the first half of 2015. The Group benefited from its targeted efforts to leverage sales synergies for the global distribution of its products and its strategy to diversify into different user segments.

Revenue for the second quarter of 2015 amounted to EUR 382.1 million and was thus 16.4 percent higher than the previous year (Q2 2014: EUR 328.4 million). This means that the second quarter again grew at a stronger rate than the first (Q1 2015: +11.2 percent; EUR 324.3 million). In the first six months of 2015, Group revenue grew 13.9 percent to EUR 706.4 million (H1 2014: EUR 620.0 million). This represents a new six-month revenue high for the Wacker Neuson Group.

From a geographical perspective, all three regions (Europe, the Americas and Asia-Pacific) reported a rise in revenue for the first half of the year. When adjusted to discount currency effects, growth was strongest in Europe.

Growth rates varied across the Group's business segments during the first half of 2015. The compact equipment segment grew strongest, with revenue for the segment rising by 24.6 percent relative to the previous year. The light equipment segment, which is distributed to a much more international market, developed below expectations, with revenue rising by just 4.8 percent. The services segment reported an increase of 4.3 percent.

Group profit for the first half of 2015 was higher than the prior-year figure. EBIT rose 3.6 percent to EUR 65.7 million. This corresponds to an EBIT margin1 of 9.3 percent (H1 2014: 10.2 percent). This drop in profitability relative to the previous year is mainly attributable to developments in the second quarter. The Group's EBIT margin amounted to 8.9 percent here and was thus below the previous year's level (Q2 2014: 12.6 percent). This was primarily due to the product mix, the services segments' lower share of total revenue and the loss of currency gains that the Group had benefited from in the previous year.

At June 30, 2015, gearing2 amounted to 24.5 percent and was thus higher than the previous year. The Group's asset position remains strong with an equity ratio before minority interests of 64.7 percent at the closing date. For further details, refer to the "Profit, financials and assets" section.

Changes to alliances

In February 2015, Hamm AG, a member of the Wirtgen Group, and the Wacker Neuson Group entered a strategic collaboration for the production of rollers for soil and asphalt compaction. The rollers manufactured in Germany by Hamm will initially be distributed under the Wacker Neuson brand in Germany, Austria and Switzerland via the Wacker Neuson sales and distribution network. The Group will then gradually start distributing to more global markets. The collaboration rounds off the Group's portfolio in the soil and asphalt compaction sector, enabling it to offer tandem rollers in the 1.8- to 4.5-ton category and, in future, compactors.

There has also been a change to the Group's alliance in the field of telescopic handlers. The CLAAS Group, headquartered in the German town of Harsewinkel, and Kramer-Werke GmbH, a member of the Wacker Neuson Group, reached a mutual agreement in June to terminate their partnership in the area of agricultural telescopic handlers as of 2018. Customers are assured of the longterm availability of services and spare parts even after the collaboration has ended. On termination of the alliance,

1 EBIT margin = EBIT/revenue.

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

The demopark + demogolf exhibition was held in the city of Eisenach from June 21 through 23, 2015, under the motto "Informieren. Ausprobieren. Weiterbilden." (See more. Try more. Discover more.). The Wacker Neuson Group received a further accolade for its commitment to innovation at the event when the WL20e electric wheel loader was awarded a gold medal at the exhibition's innovation show.

the Wacker Neuson Group plans to continue to execute its successful sales strategies and does not expect any signifi cant impact on Group revenue and earnings.

2015 Annual General Meeting

At the Annual General Meeting on May 27, 2015, in Munich, the Executive Board informed around 240 shareholders in Wacker Neuson SE about the past fi scal year and business developments in the fi rst quarter of 2015.

Based on a share capital of 70,140,000 shares, 82.6 percent of shareholders were present. Shareholders approved a proposal by the Executive Board and the Supervisory Board to pay out around 38 percent of profi t for 2014 as dividends. In total, the company will therefore be paying out EUR 35.1 million, which corresponds to a dividend per share of EUR 0.50 (previous year: EUR 0.40). WACKER NEUSON SDAX DAX Peergroup

Changes to the Supervisory Board

The terms of all four shareholder representatives on the Supervisory Board ended with the close of the Annual General Meeting. The incumbent members of the Supervisory Board, Mr. Kurt Helletzgruber, Mr. Hans Neunteufel, Dr. Matthias Schüppen and Mr. Ralph Wacker, were re-appointed for a further term. Prior to the meeting, the two previous employee representatives, Mr. Elvis Schwarzmair and Mr. Hans Haßlach were also re-appointed for a further term on the Supervisory Board by resolution of the SE Works Council. Mr. Hans Neunteufel remains chairman of the Supervisory Board and Mr. Ralph Wacker has again been appointed deputy chairman. WACKER NEUSON SDAX DAX Peergroup 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

Share price trends January through July 2015

Capital market communication and share trends

The Wacker Neuson share continued its dynamic upwards trend in the fi rst half of 2015, reaching its highpoint for the period on April 27 when it was listed at EUR 24.60. At June 30, it closed at EUR 18.80 and was thus 10.8 percent higher than the price at the end of 2014 (EUR 16.96). Over the same period, the DAX and SDAX rose 11.6 and 19.4 percent respectively against the backdrop of an increasingly volatile market environment. At the close of the six-month period, market capitalization amounted to EUR 1,318.6 million (70.14 million shares). 140 160 80 120 100

CEO Cem Peksaglam.

The Executive Board and Supervisory Board at the Annual General Meeting on May 27, 2015, in Munich.

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, attendance at capital market conferences and visits to investors.

Profit, financials and assets Revenue and earnings

Revenue higher than previous year

The Wacker Neuson Group reported strong revenue results for the first quarter of 2015 (+11.2 percent increase to EUR 324.3 million). This strong performance continued into the second quarter, with revenue rising 16.4 percent to EUR 382.1 million (Q2 2014: EUR 328.4 million).

Group revenue for the first six months of the year thus amounted to EUR 706.4 million, which corresponds to an increase of 13.9 percent relative to the previous year (H1 2014: EUR 620.0 million); adjusted to discount currency effects, revenue increased by 8.2 percent.

In the Group's financial statements, which are drawn up in euros, the significant devaluation of the euro against some key currencies such as the US dollar had a positive impact on six-month revenue for 2015 relative to the prior-year period. The average euro/dollar exchange rate in the first half of 2015 was EUR 1 to USD 1.12 (previous year: EUR 1 to USD 1.37).

Revenue Q2/H1 2015 and 2014 in € million

Q2/2015	382.1
Q2/2014	328.4
H1/2015	706.4
H1/2014	620.0

Manufacturing costs increased 15.1 percent to EUR 498.9 million (H1 2014: EUR 433.3 million). This was due to the increased sales volume and changes to the product mix.

At EUR 207.5 million, gross profit increased by 11.1 percent during the first half of 2015 (H1 2014: EUR 186.7 million). The gross profit margin decreased to 29.4 percent as a result of changes to product mix (H1 2014: 30.1 percent). The gross profit margin for the second quarter came to 29.1 percent (Q2 2014: 30.7 percent).

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

The rise in the volume of business resulted in higher SG&A and R&D expenses. Currency translation effects had an impact here as part of these costs were incurred in currencies other than the euro.

In the first six months of the year, selling expenses rose 12.7 percent to EUR 93.9 million (H1 2014: EUR 83.3 million). The item of R&D expenses relevant to the income statement also rose 26.1 percent relative to the previous year to EUR 17.4 million (H1 2014: EUR 13.8 million). One of the main contributing factors here in 2015 was the increased resources that the Group has channeled into R&D to ensure that its products meet stricter emissions standards on time. The Group is also working on new innovations to be showcased at bauma 2016. In relation to revenue, the research and development ratio (including capitalized R&D expenses) amounted to 3.2 percent and was thus almost the same as the prior year figure (H1 2014: 3.3 percent).

General administrative costs rose 14.7 percent to EUR 35.2 million (H1 2014: EUR 30.7 million). Administrative costs accounted for a 5.0-percent share of revenue, remaining almost unchanged compared with the previous year (H1 2014: 4.9 percent).

Operating costs (expressed as the sum total of all SG&A and R&D expenses) accounted for a 20.7-percent share of revenue (H1 2014: 20.6 percent) and thus remains at the same level as the previous year.

Key profit figures

Profit before interest, tax, depreciation and amortization (EBITDA) grew 5.6 percent to EUR 98.2 million in the first half of 2015 (H1 2014: EUR 93.0 million). The EBITDA margin amounted to 13.9 percent (H1 2014: 15.0 percent).

In contrast, EBITDA for the second quarter of 2015 decreased 10.6 percent to EUR 50.8 million. The EBITDA margin was 13.3 percent (EBITDA Q2 2014: EUR 56.8 million; 17.3 percent). The rise in operating costs had a particular impact on results in the last quarter. At the close of Q1 2015, the EBITDA margin was 14.6 percent (Q1 2014: 12.4 percent).

Depreciation and amortization amounted to EUR 32.5 million in the first six months of 2015 (H1 2014: EUR 29.6 million) and EUR 16.8 million in the second quarter (Q2 2014: EUR 15.4 million).

At EUR 65.7 million, profit before interest and tax (EBIT) for the first half of 2015 was just 3.6 percent higher than the prior-year figure (H1 2014: EUR 63.4 million). The EBIT margin amounted to 9.3 percent (H1 2014: 10.2 percent). In Q2 2015, the Group reported EBIT of EUR 34.0 million. This corresponds to a margin of 8.9 percent (Q2 2014: 12.6 percent). At the close of Q1 2015, the EBIT margin was posted at 9.8 percent (Q1 2014: 7.6 percent).

The financial result for the period under review amounted to EUR -3.2 million (H1 2014: EUR -3.0 million).

Profit before tax (EBT) for the first half of 2015 was EUR 62.5 million (H1 2014: EUR 60.4 million). Tax expenditure amounted to EUR 17.0 million (H1 2014: EUR 17.6 million). The tax rate was thus 27.2 percent (H1 2014: 29.1 percent).

EBIT Q2/H1 2015 and 2014 in € million

Q2/2015		34.0
Q2/2014		41.3
H1/2015		65.7
H1/2014		63.4

Key figures

in € million	Q2/2015	Q2/2014	Change as a %	H1/2015	H1/2014	Change as a %
Revenue	382.1	328.4	16.4	706.4	620.0	13.9
Gross profit margin as a %	29.1	30.7	-1.6 PP	29.4	30.1	-0.7 PP
EBITDA	50.8	56.8	-10.6	98.2	93.0	5.6
EBITDA margin as a %	13.3	17.3	-4.0 PP	13.9	15.0	-1.1 PP
EBIT	34.0	41.3	-17.7	65.7	63.4	3.6
EBIT margin as a %	8.9	12.6	-3.7 PP	9.3	10.2	-0.9 PP
EBT	32.3	39.8	-18.9	62.5	60.4	3.5
Profit for the period	23.9	28.2	-15.2	45.2	42.5	6.4

Development of revenue and EBIT margin H1 2015 –2011

Revenue in € million

H1/2015	9.3	706.4
H1/2014	10.2	620.0
H1/2013	6.9	586.1
H1/2012	8.8	558.1
H1/2011	10.2	478.7

EBIT margin as a %

Quarterly development of revenue and EBIT margin Q2 2015 – 2011 Revenue in € million

Q2/2015 Q2/2014 Q2/2013 Q2/2012 Q2/2011 8.9 12.6 8.9 8.0 12.6 382.1 328.4 284.2 266.9 329.0

EBIT margin as a %

Profit for the first half of 2015 was EUR 45.2 million and thus 6.4 percent higher than the prior-year figure of EUR 42.5 million. Based on 70.14 million ordinary shares, earnings per share for the first half of 2015 amounted to EUR 0.64 (H1 2014: EUR 0.61).

At EUR 23.9 million, profit for Q2 2015 was 15.2 percent lower than the previous year (Q2 2014: EUR 28.2 million). This corresponds to quarterly earnings of EUR 0.34 per share (Q2 2014: EUR 0.40).

Financial position

Free cash flow affected by investments in working capital

Cash flow from operating activities amounted to EUR 11.5 million at the close of June 2015 (H1 2014: EUR 52.9 million). Discounting investments in working capital1 since the start of the year, cash flow from operating activities was posted at EUR 87.4 million. Cash flow from operating activities was EUR 32.1 million for the second quarter of the year (Q2 2014: EUR 34.2 million).

Cash flow from investment activities came to EUR -54.7 million in the first half of 2015 (H1 2014: EUR -51.9 million) and EUR -29.4 million in the second quarter (Q2 2014: EUR -24.2 million). As planned, the Group made investments in the amount of EUR 55.5 million during the first half of the year, of which EUR 47.9 million was channeled into property, plant and equipment. This included 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 activities2 . At EUR -43.2 million, free cash flow was negative at the close of the first six months of 2015 due to increased investments in working capital (H1 2014: EUR 1.0 million). Free cash flow for the second quarter came in at EUR 2.7 million (Q2 2014: EUR 10.0 million).

Cash flow from financing activities for the first half-year amounted to EUR 51.5 million (H1 2014: EUR -3.6 million). This is primarily due to cash receipts from short-term borrowings that the Group drew on to finance working capital. The dividend totaled EUR 35.1 million (Q2 2014: EUR 28.1 million).

Working capital = inventories + trade receivables - trade payables.

² If available, discounting changes to the consolidation structure, plus amounts accruing from the issue of new shares including the costs of raising capital.

in € K	Q2/2015	Q2/2014	H1/2015	H1/2014
Cash flow from operating activities	32,073	34,166	11,503	52,866
Cash flow from investment activities	-29,364	-24,205	-54,737	-51,916
Free cash flow	2,709	9,961	-43,234	950
Cash flow from financing activities	703	-19,930	51,512	-3,576
Effect of exchange rates on cash and cash equivalents	-453	180	608	193
Change in cash and cash equivalents	2,959	-9,789	8,886	-2,433
Cash and cash equivalents at beginning of period	20,127	22,889	14,200	15,533
Cash and cash equivalents at end of period	23,086	13,100	23,086	13,100

Financial position

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 23.1 million at June 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 six months of the year, the balance sheet shows that Group assets remain strong. The balance sheet total increased to EUR 1,615.8 million at June 30, 2015 (December 31, 2014: EUR 1,447.6 million; June 30, 2014: EUR 1,403.4 million).

Assets rose to EUR 784.9 million (December 31, 2014: EUR 761.3 million; June 30, 2014: EUR 762.8 million). The value of finished products rose to EUR 372.3 million (December 31, 2014: EUR 296.6 million). This corresponds to an increase of 48.4 percent relative to the previous year (June 30, 2014: EUR 250.9 million).

By June 30, 2015, inventories had increased 16.7 percent to EUR 494.9 million (December 31, 2014: EUR 424.0 million) and were thus 39.2 percent higher than the prior-year period (June 30, 2014: EUR 355.6 million). The value of inventory in the second quarter of 2015 remained at almost the same level as the first quarter (Q1 2015: EUR 495.4 million). Trade receivables increased 35.3 percent to EUR 234.4 million since the start of the year (December 31, 2014: EUR 173.3 million; June 30, 2014: EUR 204.1 million).

Total current assets rose to EUR 776.2 million (December 31, 2014: EUR 633.5 million; June 30, 2014: EUR 592.8 million).

Group equity before minority interests amounted to EUR 1,045.9 million at the close of June 2015 (December 31, 2014: EUR 1,011.7 million; June 30, 2014: EUR 951.9 million). The equity ratio before minority interests decreased to 64.7 percent as a result of loans (December 31, 2014: 69.9 percent; June 30, 2014: 67.8 percent) and thus remained at a high level for the industry. The Group's share capital remained unchanged at EUR 70.14 million.

Non-current liabilities remained almost unchanged at EUR 205.1 million (December 31, 2014: EUR 209.1 million; June 30, 2014: EUR 203.8 million). Trade payables rose to EUR 98.7 million as a result of longer payment periods (December 31, 2014: EUR 65.2 million; June 30, 2014: EUR 72.0 million). Total current liabilities amounted to EUR 360.1 million (December 31, 2014: EUR 222.2 million; June 30, 2014: EUR 243.5 million). This reflects the rise in short-term borrowings from banks since the start of the year to finance working capital.

	Jun. 30,	Dec. 31,	Change as	Jun. 30,	Change as
in € K	2015	2014	a %	2014	a %
Total non-current assets	839,654	814,067	3.2%	810,607	3.6%
Total current assets	776,179	633,500	22.5%	592,760	30.9%
Total assets	1,615,833	1,447,567	11.6%	1,403,367	15.1%
Equity before minority interests	1,045,850	1,011,749	3.4%	951,902	9.9%
Total non-current liabilities	205,147	209,138	-1.9%	203,760	0.7%
Total current liabilities	360,059	222,206	62.0%	243,548	47.8%
Minority interests	4,777	4,474	6.8%	4,157	14.9%
Total liabilities	1,615,833	1,447,567	11.6%	1,403,367	15.1%

Assets, equity and liabilities

Working capital developments

Working capital rose 18.5 percent to EUR 630.7 million in the first six months of the year (December 31, 2014: EUR 532.2 million). Relative to the prior-year period, working capital increased 29.3 percent (June 30, 2014: EUR 487.7 million). The rise in working capital, in particular inventories, is attributable to increased demand and exchange rate effects. The Group financed the increase in working capital through cash flow from operating activities and short-term borrowings from banks.

The ratio of working capital to annualized revenue based on Q2 revenue was thus higher than in the previous year at 41.31 percent (Q2 2014: 37.12 percent). This is a slight improvement on the 48.2 percent reported for the first quarter of 2015.

Solid financing structure

At June 30, 2015, net financial debt3 amounted to EUR 256.1 million and was thus higher than at the start of the year (December 31, 2014: EUR 179.5 million; June 30, 2014: EUR 202.7 million). This is attributable to the short-term loans that the Group drew on. This figure is also a slight increase on the first quarter (Q1 2015: EUR 225.5 million).

As a result, gearing4 increased from 17.7 percent at the start of the year to 24.5 percent at the interim closing date. 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).

Net financial position

in € K	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Long-term
borrowings	-126,249	-126,593	-130,156
Short-term
borrowings	-152,590	-66,682	-85,203
Current portion
of long-term
borrowings	-358	-441	-485
Cash and cash
equivalents	23,086	14,200	13,100
Total	-256,111	-179,516	-202,744
Gearing as a %	24.5	17.7	21.3

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.

1 Note on calculation: 630.7/(382.1*4) = 41.3 percent.

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

² Note on calculation: 487.7/(328.4*4) = 37.1 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 half of 2015, all regions reported a rise in revenue. Currency fluctuations had an at times significant impact on revenue in the Americas and Asia-Pacific.

Results for Europe, the Americas and Asia-Pacific

Revenue by region H1 2015 as a % (previous year)

Revenue growth in core market Europe

At 72.2 percent, Europe accounted for the lion's share of Wacker Neuson Group revenue (H1 2014: 74.1 percent of total revenue). Group revenue for the region increased 11.1 percent to EUR 510.3 million in the first six months of 2015 (H1 2014: EUR 459.2 million). Profit before interest and tax (EBIT) amounted to 73.3 million, which corresponds to an increase in profitability of 12.6 percent relative to the previous year (H1 2014: EUR 65.1 million).

In the second quarter of the year, the Group posted revenue of EUR 279.0 million (Q2 2014: EUR 243.2 million), which is a 14.7-percent increase on the previous year's record quarter.

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

H1 2015 and 2014

in € million

Revenue for the second quarter of 2015 was 20.6 percent higher than in the first quarter (Q1 2015: EUR 231.3 million).

The Wacker Neuson Group reported positive revenue trends in almost all European countries for the first halfyear. Central Europe proved a major driver here, although southern European countries also contributed to growth once again. France, Denmark, Belgium and Russia were the only countries where demand dropped below the prior-year level. The Group has no affiliate in Greece.

Revenue trends in the Americas

In the Americas region, revenue for the first six months of the year rose 22.0 percent relative to the previous year to EUR 175.0 million (H1 2014: EUR 143.4 million). The region's share of total revenue rose to 24.8 percent (H1 2014: 23.1 percent). This corresponds to a rise of 3.4 percent when adjusted to discount currency effects.

Profit before interest and tax (EBIT) came to EUR 11.9 million in the first half-year (H1 2014: EUR 9.5 million).

At EUR 91.1 million, second-quarter revenue rose 20.7 percent relative to the previous year (Q2 2014: EUR 75.5 million). Adjusted to discount currency effects, this corresponds to an increase of 1.8 percent.

The Group experienced particularly strong growth in the US and Mexico. Its strategy of expanding its sales network to distribute compact equipment in the Americas is increasingly fueling growth in that region. In contrast, Canada struggled with falling investments from the energy sector and the strong US dollar, which made imports more expensive. The ongoing crises in Chile and Brazil are also preventing these markets from recovering.

Americas
H1 2015 and 2014
in € million
Revenue
H1/2015	175.0
H1/2014	143.4
EBIT
H1/ 2015	11.9
H1/ 2014	9.5

Revenue trends in Asia-Pacific

Revenue for the first half of the year in Asia-Pacific rose 21.3 percent relative to the previous year to EUR 21.1 million (H1 2014: EUR 17.4 million). The region's share of total revenue amounted to 3.0 percent (H1 2014: 2.8 percent). When adjusted to discount currency effects, revenue actually grew by 8.3 percent.

Profit before interest and tax (EBIT) amounted to EUR 1.3 million (H1 2014: EUR 0.5 million).

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. The products are robust and built to the Group's high quality standards.

At 11.2 percent, emerging markets'1 share of total revenue in the first six months of 2015 remained at the same level as the previous year (H1 2014: 11.3 percent).

Results for the light equipment, compact equipment and services segments

Revenue by business segment H1 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 half of 2015 was affected by weak demand in individual countries and therefore developed below expectations. At EUR 213.2 million, revenue from this segment was only 4.8 percent higher than the prior-year period (H1 2014: EUR 203.4 million). The segment's share of total revenue narrowed to 29.7 percent (H1 2014: 32.4 percent). When adjusted to discount currency effects, revenue for the first half of the year decreased by 5.6 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, Russia and China.

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.

Wacker Neuson SE | Half-year report 2015

Revenue by business segment

in € K	Q2/2015	Q2/2014	H1/2015	H1/2014
Segment revenue
Light equipment	113,260	108,986	213,211	203,376
Compact equipment	204,063	156,104	370,195	297,211
Services	70,922	68,148	133,413	127,870
	388,245	333,238	716,819	628,457
Less cash discounts	-6,144	-4,829	-10,393	-8,464
Total	382,100	328,409	706,426	619,993

In the second quarter of 2015, revenue rose 3.9 percent to EUR 113.3 million (Q2 2014: EUR 109.0 million). When adjusted to discount currency effects, revenue actually fell 6.5 percent. Compared with the first quarter of 2015, revenue increased 13.3 percent (Q1 2015: EUR 100.0 million).

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 an impressive 24.6 percent from EUR 297.2 million in the previous year to EUR 370.2 million in the first half of 2015. The segment's share of total revenue rose to 51.6 percent for the period under review (previous year: 47.3 percent). Adjusted to discount currency effects, this corresponds to an increase of 22.5 percent.

Segment revenue for the second quarter increased by 30.7 percent relative to the previous year and by 28.6 percent when adjusted to discount currency effects.

In the first six months of the year, accumulated order intake for compact equipment for the construction and agricultural sectors remained on the same high level as the previous year. The Group's customers continue to place orders at short notice. It is therefore crucial that these orders are also delivered as quickly as possible.

Revenue from agricultural equipment rose 16.6 percent to EUR 105.8 million in the first half of 2015 (H1 2014: EUR 90.7 million). Agricultural compact equipment's share of Group revenue thus amounted to 14.8 percent (H1 2014: 14.3 percent). In light of the weak economic situation in the European agricultural technology sector, this strong performance is confirmation that the Group's diversification and multi-brand strategy is paying off. Demand for innovative Weidemann- and Kramer-branded machines is also being fueled by customers' growing need to raise efficiency and productivity levels.

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 partners.

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 half of 2015 rose by 4.3 percent to EUR 133.4 million (H1 2014: EUR 127.9 million). Adjusted to discount currency effects, this corresponds to a drop of 0.3 percent. Due to strong growth in the compact equipment segment, the services segment's share of total revenue fell to 18.6 percent (H1 2014: 20.3 percent).

Other factors that impacted on results

Headcount trends

The Wacker Neuson Group had already increased headcount in specific areas in 2014 as a result of its strong performance. During the first half of 2015, headcount again increased relative to the year-end figure. At the interim closing date, the Group employed a total of 4,573 people. This is an 8.4-percent increase on the prior-year figure (December 31, 2014: 4,372; June 30, 2014: 4,217)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 just some 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 environmental regulations governing combustion engine emissions.

Changes to the opportunity and risk situation

In the first half 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 dampen sales of light and compact equipment and impact Wacker Neuson Group profit levels. The Group is committed to offsetting fluctuations in individual countries and industries with the growth initiatives it has already implemented.

The risks to the Group relevant to the period under review are listed in the 2014 Annual Report 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

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.

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.

Outlook

Slight decline in global economy expected

According to the International Monetary Fund (IMF), the pace of global economic growth is set to slow slightly in 2015. In light of unexpected weak economic activity in the US in the first months of this year, experts revised their forecast downward by 0.2 percentage points in July. The global growth projection is now 3.3 percent. Developed economies will continue to provide the main economic impetus here.

Economic recovery in the eurozone is likely to continue at a modest level, 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 the value of the euro, which has depreciated significantly against the US dollar since the previous year. In addition, many countries in the eurozone are reporting increases in domestic demand. Nevertheless, countries in southern Europe – particularly Greece – remain a source of uncertainty due to their high debt levels. This could subdue overall willingness to invest.

For Germany, the IMF's GDP growth forecast of 1.6 percent for 2015 remains unchanged. Germany should therefore remain one of the pillars of the economic recovery in Europe, together with the UK. The IMF is also positive about Spain and expects the economy there to grow by 3.1 percent. In contrast, the French economy is expected to develop at a very modest rate. There is a lot of uncertainty in the country – in particular in the construction sector – due to planned political reforms, which include the reorganization of the country's national administrative structures.

The IMF cut its forecast for the US significantly in July as a result of the effects described in brief above, the majority of which are thought to be temporary in nature. The US economy is expected to expand by just 2.5 percent in 2015. Experts' medium-term growth prognosis, however, remains positive.

The IMF also cuts its forecasts for many emerging economies – in some cases by a significant margin – in its latest update. Brazil's economic output is set to shrink by 1.5 percent and Russia's economy is expected to contract by 3.4 percent in 2015. The growth projection for China is 6.8 percent. India is expected to expand by 7.5 percent.

Construction equipment industry remains cautiously optimistic

Although it is unlikely that the construction equipment sector will achieve the same high level as the previous year, the Committee for European Construction Equipment (CECE) remains cautiously optimistic about the remainder of 2015. With the exception of France and Russia, markets in Europe are either stable or expanding. The UK is again expected to be the main growth driver in this region, although Germany and Scandinavia could also provide positive impetus here. Correspondingly, the German Engineering Federation (VDMA) forecasts revenue growth of around 4 percent for German construction equipment manufacturers.

2015 is also set to be another good year for the US construction equipment sector. A tangible slowdown in investments in the oil and gas sector should be offset by continued positive trends in commercial and residential construction. The prospects for markets in Latin America, many of which are dependent on the distressed mining industry, are much more subdued. The CECE also predicts at best stagnation for China while other markets in Southeast Asia and India are showing signs of positive momentum.

Agriculture under increasing pressure to increase efficiency levels

According to the European umbrella association of the agricultural machinery industry (CEMA), the short-term outlook for the European agricultural industry has picked up again somewhat. Early indicators such as order intake for component manufacturers suggest that demand is at least starting to stabilize. In light of the high levels of investment in machinery in recent years, the sector is not expected to grow in 2015. The VDMA expects revenue for manufacturers of agricultural machinery to fall by around 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, in particular 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 profitable 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, for example, in South America, Eastern Europe, Africa and Asia.

Forecast for 2015 confirmed

The Executive Board is still predicting overall revenue for fiscal 2015 to range between EUR 1.40 and EUR 1.45 billion (2014: EUR 1.28 billion) with an EBIT margin of between 9.5 and 10.5 percent (2014: 10.6 percent).

The Group predicts further growth for all three business segments – light equipment, compact equipment and services – with the compact equipment segment again expected to be the main growth driver.

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. As in 2014, it again expects a positive free cash flow at the close of 2015, with cash flow from operating activities covering investment needs over the year. The Group has already initiated measures aimed at reducing working capital, in particular inventory.

The Group aims to maintain its solid balance sheet structure with a comparatively high equity ratio. Equity ratio is currently around 65 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 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, July 31, 2015 Wacker Neuson SE

The Executive Board

Cem Peksaglam CEO

CTO CFO (Deputy CEO)

Martin Lehner Günther C. Binder

Consolidated Income Statement

April 1 through June 30 and January 1 through June 30

	Apr. 1–Jun. 30,	Apr. 1–Jun. 30,	Jan. 1–Jun. 30,	Jan. 1–Jun. 30,
in € K	2015	2014	2015	2014
Revenue	382,100	328,410	706,426	619,993
Cost of sales	-271,002	-227,560	-498,878	-433,309
Gross profit	111,098	100,850	207,548	186,684
Sales and service expenses	-48,615	-41,309	-93,855	-83,288
Research and development expenses	-9,251	-6,868	-17,351	-13,807
General administrative expenses	-17,762	-14,861	-35,247	-30,673
Other income	351	4,979	13,669	7,802
Other expenses	-1,796	-1,469	-9,068	-3,303
Profit before interest and tax (EBIT)	34,025	41,322	65,696	63,415
Financial income	429	699	962	1,333
Financial expenses	-2,137	-2,264	-4,179	-4,350
Profit before tax (EBT)	32,317	39,757	62,479	60,398
Taxes on income	-8,265	-11,373	-16,958	-17,595
Total profit/loss for the period	24,052	28,384	45,521	42,803
Of which are attributable to:
Shareholders in the parent company	23,883	28,210	45,218	42,511
Minority interests	169	174	303	292
	24,052	28,384	45,521	42,803
Earnings per share in EUR (diluted and undiluted)	0.34	0.40	0.64	0.61

Consolidated Statement of Comprehensive Income April 1 through June 30 and January 1 through June 30

in € K	Apr. 1–Jun. 30, 2015	Apr. 1–Jun. 30, 2014	Jan. 1–Jun. 30, 2015	Jan. 1–Jun. 30, 2014
Total profit/loss for the period	24,052	28,384	45,521	42,803
Other income
Profit/loss to be recognized in the income statement
for subsequent periods:
Exchange differences	-9,118	3,014	22,370	2,930
Profit/loss to be recognized in the income
statement for subsequent periods	-9,118	3,014	22,370	2,930
Profit/loss not to be recognized in the income state
ment for subsequent periods:
Actuarial gains/losses from pension obligations	2,274	-1,328	2,247	-1,343
Effect of taxes on income	-654	375	-664	379
Profit/loss not to be recognized in the income
statement for subsequent periods	1,620	-953	1,583	-964
Other comprehensive income after tax	-7,498	2,061	23,953	1,966
Total comprehensive income after tax	16,554	30,445	69,474	44,769
Of which are attributable to:
Shareholders in the parent company	16,385	30,271	69,171	44,477
Minority interests	169	174	303	292
	16,554	30,445	69,474	44,769

Consolidated Balance Sheet

As at June 30

in € K	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Assets
Property, plant and equipment	407,880	388,907	395,765
Investment properties	17,981	17,998	18,269
Goodwill	238,023	237,290	236,333
Intangible assets	121,065	117,095	112,397
Deferred tax assets	42,091	35,018	33,797
Other non-current financial assets	10,156	16,170	12,426
Other non-current non-financial assets	2,458	1,589	1,620
Total non-current assets	839,654	814,067	810,607
Inventories	494,911	424,036	355,588
Trade receivables	234,424	173,317	204,104
Tax offsets	3,193	2,834	5,283
Other current financial assets	3,192	5,071	1,890
Other current non-financial assets	17,373	14,042	12,795
Cash and cash equivalents	23,086	14,200	13,100
Total current assets	776,179	633,500	592,760
Total assets	1,615,833	1,447,567	1,403,367
Equity and liabilities
Subscribed capital	70,140	70,140	70,140
Other reserves	613,361	589,408	578,562
Net profit/loss	362,349	352,201	303,200
Equity attributable to shareholders in the parent company	1,045,850	1,011,749	951,902
Minority interests	4,777	4,474	4,157
Total equity	1,050,627	1,016,223	956,059

126,249	126,593	130,156
32,253	33,187	33,211
46,645	49,358	40,393
205,147	209,138	203,760
98,652	65,187	72,042
152,590	66,682	85,203
358	441	485
12,680	12,827	13,127
491	1,357	658
27,990	25,347	21,460
67,298	50,365	50,573
360,059	222,206	243,548
1,615,833	1,447,567	1,403,367

Consolidated Statement of Changes in Equity As at June 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	42,511	42,511	292	42,803
Other comprehensive income	0	0	2,930	-964	0	1,966	0	1,966
Total comprehensive income	0	0	2,930	-964	42,511	44,477	292	44,769
Dividends	0	0	0	0	-28,056	-28,056	0	-28,056
Balance at June 30, 2014	70,140	618,661	-30,958	-9,141	303,200	951,902	4,157	956,059
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	45,218	45,218	303	45,521
Other comprehensive income	0	0	22,370	1,583	0	23,953	0	23,953
Total comprehensive income	0	0	22,370	1,583	45,218	69,171	303	69,474
Dividends	0	0	0	0	-35,070	-35,070	0	-35,070
Balance at June 30, 2015	70,140	618,661	8,648	-13,948	362,349	1,045,850	4,777	1,050,627

Consolidated Cash Flow Statement

April 1 through June 30 and January 1 through June 30

in € K	Apr. 1–Jun. 30, 2015	Apr. 1–Jun. 30, 20141 (adjusted)	Jan. 1–Jun. 30, 2015	Jan. 1–Jun. 30, 20141 (adjusted)
Profit before tax (EBT)	32,317	39,757	62,479	60,398
Adjustments to reconcile profit before tax with gross cash flow:
Depreciation and amortization expense	16,788	15,432	32,487	29,555
Other non-cash income/expenditure	3,959	-1,852	-10,908	-1,574
Gains/losses from sale of intangible assets and property, plant and equipment	161	352	-254	438
Book value from the disposal of rental equipment	4,973	5,733	10,269	9,893
Actuarial gains/losses from pension obligations	1,620	-953	1,583	-964
Financial result	1,708	1,565	3,217	3,017
Changes in misc. assets	-4,680	-2,053	4,046	-6,114
Changes in provisions	-3,011	1,639	-3,385	965
Changes in misc. liabilities	7,064	-1,880	13,689	7,580
Interest paid	-1,066	-1,368	-6,162	-6,289
Income tax paid	-10,987	-7,902	-20,624	-14,039
Interest received	493	702	962	1,336
Gross cash flow	49,339	49,172	87,399	84,202
Changes in inventories	-9,353	-9,201	-53,740	-19,556
Changes in trade receivables	-10,994	-5,746	-54,010	-38,968
Changes in trade payables	3,081	-59	31,854	27,188
Changes in working capital	-17,266	-15,006	-75,896	-31,336
Cash flow from operating activities	32,073	34,166	11,503	52,866
Purchase of property, plant and equipment	-25,316	-21,112	-47,874	-44,988
Purchase of intangible assets	-4,416	-3,799	-7,632	-7,621
Proceeds from the sale of property, plant and equipment, intangible assets and non-current assets held for sale	395	219	1,194	693
Change in consolidation structure	-27	487	-425	0
Cash flow from investment activities	-29,364	-24,205	-54,737	-51,916
Free cash flow2	2,709	9,961	-43,234	950
Dividends	-35,070	-28,056	-35,070	-28,056
Cash receipts from short-term/long-term borrowings	35,951	8,270	87,009	24,918
Repayments from short-term/long-term borrowings	-178	-144	-427	-438
Cash flow from financing activities	703	-19,930	51,512	-3,576
Increase/decrease in cash and cash equivalents	3,412	-9,969	8,278	-2,626
Effect of exchange rates on cash and cash equivalents	-453	180	608	193
Change in cash and cash equivalents	2,959	-9,789	8,886	-2,433
Cash and cash equivalents at beginning of period	20,127	22,889	14,200	15,533
Cash and cash equivalents at end of period	23,086	13,100	23,086	13,100

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. 26).

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

Consolidated Segmentation

January 1 through June 30

in € K	Europe	Americas	Asia-Pacific	Consolidation	Group
H1 2015
Segment revenue
Total sales	892,309	455,386	36,738		1,384,433
Less intrasegment sales	-313,428	-257,888	-2,412		-573,728
	578,881	197,498	34,326		810,705
Intersegment sales	-68,557	-22,542	-13,180		-104,279
Total	510,324	174,956	21,146		706,426
EBIT	73,343	11,854	1,310	-20,811	65,696
Depreciation/amortization	31,431	4,301	472	-3,717	32,487
EBITDA1	104,774	16,155	1,782	-24,528	98,183
H1 2014
Segment revenue
Total sales	778,825	361,894	27,224		1,167,943
Less intrasegment sales	-280,819	-195,988	-1,182		-477,989
	498,006	165,906	26,042		689,954
Intersegment sales	-38,775	-22,522	-8,664		-69,961
Total	459,231	143,384	17,378		619,993
EBIT	65,113	9,491	493	-11,682	63,415
Depreciation/amortization	28,774	3,469	404	-3,091	29,556
EBITDA1	93,887	12,960	897	-14,773	92,971

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

Information at company level

Products and services

	Jan. 1–Jun. 30,	Jan. 1–Jun. 30,
in € K	2015	2014
Segment revenue from external customers
Light equipment	213,211	203,376
Compact equipment	370,195	297,211
Services	133,413	127,870
	716,819	628,457
Less cash discounts	-10,393	-8,464
Total	706,426	619,993

Geographical areas

Revenue according to company location

	Jan. 1–Jun. 30,	Jan. 1–Jun. 30,
in € K	2015	2014
Wacker Neuson overall	706,426	619,993
of which Germany	272,295	247,471
of which outside Germany	434,131	372,522
of which USA	131,636	100,133

Non-current assets according to company location

in € K	Jun. 30, 2015	Jun. 30, 2014
Wacker Neuson overall	787,407	764,384
of which Germany	267,306	283,534
of which outside Germany	520,101	480,850
of which Austria	348,180	340,715

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 H1 2015

Accounting rules

The Wacker Neuson SE consolidated interim financial statements to June 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 first half of the year.

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.

The consolidated interim financial statements have not been audited.

Legal changes to company structure

The following companies were included in the consolidation structure in the first six months of 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 increased demand 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. 19) was largely due to the development of the US dollar (USD) and Swiss franc (CHF).

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
Q2
Quarterly earnings attributable to shareholders in € K	23,883	28,210
Weighted average number of ordinary shares in circulation
during the period in thousands	70,140	70,140
Earnings per share in €
(diluted and undiluted)	0.34	0.40
H1
Quarterly earnings attributable to shareholders in € K	45,218	42,511
Weighted average number of ordinary shares in circulation
during the period in thousands	70,140	70,140
Earnings per share in €
(diluted and undiluted)	0.64	0.61

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 – Jun. 30, 2014		Jan. 1 – Jun. 30, 2014
	as	Adjust
in € K	reported	ment	adjusted
Cash flow from operating
activities	53,376	-510	52,866
Cash flow from invest
ment activities	-51,916	-	-51,916
Cash flow from financing
activities	-3,650	74	-3,576
Decrease in cash and cash equivalents	-2,190	-436	-2,626
Effect of exchange rates on cash and cash
equivalents	-243	436	193
Change in cash and cash
equivalents	-2,433	-	-2,433

	Apr. 1 – Jun. 30, 2014		Apr. 1 – Jun. 30, 2014
in € K	as reported	Adjust ment	adjusted
Cash flow from operating
activities	34,517	351	34,166
Cash flow from invest ment activities	-24,205	-	-24,205
Cash flow from financing activities	-19,836	-94	-19,930
Decrease in cash and cash equivalents	-9,524	-445	-9,969
Effect of exchange rates on cash and cash equivalents	-265	445	180
Change in cash and cash equivalents	-9.789	-	-9.789

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	Jun. 30, 2015 Fair value	Jun. 30, 2015 Book value
Assets
Other non-current assets	12,614	12,614
Trade receivables	234,424	234,424
Other current assets	20,565	20,565
Cash and cash equivalents	23,086	23,086

in € K	Jun. 30, 2015 Fair value	Jun. 30, 2015 Book value
Liabilities
Long-term borrowings	130,480	126,249
Trade payables	98,652	98,652
Short-term borrowings from banks	152,590	152,590
Current portion of long-term borrowings	358	358
Other current liabilities	95,288	95,288

At June 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

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

Munich, July 31, 2015 Wacker Neuson SE

The Executive Board

Cem Peksaglam CEO

CTO CFO (Deputy CEO)

Martin Lehner Günther C. Binder

Review Report

To Wacker Neuson SE, Munich, Germany

We have reviewed the interim condensed consolidated financial statements, comprising the consolidated income statement, the consolidated statement of comprehensive income, the consolidated balance sheet, the consolidated statement of changes in equity, the consolidated cash flow statement and selected explanatory notes, and the interim group management report of Wacker Neuson SE, Munich for the period from January 1 to June 30, 2015, which are part of the six-monthly financial report pursuant to Section 37w WpHG ("Wertpapierhandelsgesetz"; German Securities Trading Act). The preparation of the interim condensed consolidated financial statements in accordance with IFRSs on interim financial reporting as adopted by the EU and of the group management report in accordance with the requirements of the WpHG applicable to interim group management reports is the responsibility of the Company's management. Our responsibility is to issue a report on the interim condensed consolidated financial statements and the interim group management report based on our review.

We conducted our review of the interim condensed consolidated financial statements and the interim group management report in accordance with German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Those standards require that we plan and perform the review to obtain a certain level of assurance in our critical appraisal to preclude that the interim condensed consolidated financial statements are not prepared, in all material respects, in

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

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

Munich, July 31, 2015

Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft

Keller Berger [Public Auditor] [Public Auditor]

Wirtschaftsprüfer Wirtschaftsprüfer

Financial Calendar

Financial Calendar 2015

Publication of half-year report 2015
Commerzbank Sector Conference 2015, Frankfurt
Baader Investment Conference 2015, Munich
Fourth German Corporate Conference 2015, Munich
Publication of nine-month report 2015, Analyst Conference, Frankfurt
German Equity Forum 2015, 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 forwardlooking statements.

All rights reserved. Valid August, 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