Westag AG — Interim / Quarterly Report 2014

Nov 11, 2014

Quaterly Report

1st to 3rd Quarter 2014

Interim Report on the first nine months 0f 2014

Sales

In the first nine months of the year, Westag & Getalit AG increased its sales revenues by 1.2% on the prior year period (€ 168.6 million) to € 170.6 million. The company thus benefited from the stable situation to date in the German construction sector.

By contrast, business in the company's European export markets was moderate. Export revenues declined by 1.7% to € 34.2 million (previous year: € 34.8 million). Due to the drop in sales revenues in conjunction with higher domestic revenues, the export share declined to 20.0% (previous year: 20.6%).

Divisions

Sales revenue in € '000	Jan. 1- Sep. 30, 2014	Jan. 1- Sep. 30, 2013	Change in %
Doors/Frames	90,019	85,031	5.9
Surfaces/Elements	75,250	78,602	-4.3

The Doors/Frames Division boosted its sales revenues by 5.9% to € 90.0 million. This increase on the prior year period is attributable to stable housing construction activity.

By contrast, the Surfaces/Elements division reported a 4.3% drop in sales revenues to € 75.3 million during the same period. The reduction in revenues is primarily attributable to lower export demand, which, in turn, is due to the current international crises.

Earnings

Profit data in € '000	Jan. 1- Sep. 30, 2014	Jan. 1- Sep. 30, 2013	Change in %
Earnings before income taxes	7,639	6,744	13.3
Net Profit	5,348	4,721	13.3
Earnings per ordinary share (in €)	0.96	0.84	13.7
Earnings per preference share (in €)	1.02	0.90	12.8

At € 7.6 million, earnings before taxes for the first nine months were up on the previous year's € 6.7 million. This 13.3% improvement in the company's result is attributable to the moderate increase in sales revenues and the improved total output in conjunction with an optimised cost structure. Net profit after taxes increased in sync with the result and reached € 5.4 million (previous year: € 4.7 million).

Net profit for the period per share amounted to € 0.96 for the ordinary shares (previous year: € 0.84) and to € 1.02 for the preference shares (€ 0.90).

Capital expenditure

Investments clearly in excess of € 15 million are planned for the current fiscal year.

Investments will focus on the completion of the two large-scale projects – a double belt press for laminates and a new lock and hinge processing plant – and on selective capacity expansions in the context of the modernisation strategy, which will continue to be pushed ahead in the current fiscal year.

Employees

Workforce	Sep. 30,	Sep. 30,	Change
	2014	2013	in %
Number of staff	1,295	1,295	0.0

As compared to last year's reporting date the personnel strength remained unchanged at 1,295 employees.

Portfolio of own shares

As of September 30, 2014, Westag & Getalit AG held 310,828 own shares, all of which were preference shares.

Outlook

Developments in the European export markets that are relevant for the company remain difficult to predict and currently tend to be marked by risks. The outlook for the German economy is positive. Domestic economic activity in the year to date has been good and suggests that sales revenues for the full year 2014 will be higher than in the previous year. By the end of the year, however, the increasing predictions of a slowing German economy will probably also influence our business activities.

As we will realise potential savings and seize growth opportunities in our target markets, we stick to our aim of growing both our sales revenues and earnings in the current year in line with the macroeconomic environment.

Rheda-Wiedenbrück, November 2014 Westag & Getalit AG The Executive Board

Balance sheet

Assets in € '000	Sep. 30, 2014	Dec. 31, 2013
Intangible assets	867	934
Tangible assets	70,688	66,386
Financial assets	1,280	1,310
Deferred tax liabilities	676	638
Non-current assets	73,511	69,268
Inventories	37,316	35,340
Receivables and other assets	35,875	31,074
Cash at banks or in hand	12,657	21,290
Current assets	85,848	87,704
Total assets	159,359	156,972

Equity and liabilities in € '000	Sep. 30, 2014	Dec. 31, 2013
Subscribed Capital	14,644	14,644
Capital reserve	24,399	24,399
Revenue reserves	60,311	60,311
Accumulated profit	7,821	7,711
Equity and reserves	107,175	107,065
Pension provisions	19,285	19,147
Other non-current provisions	1,571	1,434
Deferred tax liabilities	0	0
Non-current liabilities	20,856	20,581
Trade payables	11,291	9,801
Other current liabilities	19,345	18,925
Current provisions	692	600
Current liabilities	31,328	29,326
Total equity and liabilities	159,359	156,972

Quarterly statement of comprehensive income

in € '000	Jul. 1- Sep. 30, 2014	Jul. 1- Sep. 30, 2013
Sales	58,193	58,518
In/decrease in inventories	-1,106	-733
Own work capitalised	144	65
Total operating performance	57,231	57,850
Other operating income	1,680	796
Cost of materials	27,904	28,085
Personnel expenses	17,846	17,791
Depreciation and amortisation	2,336	2,474
Other operating expenses	7.922	7.534
Other taxes	67	63
Operating result	2,836	2,699
Financial result	4	7
Extraordinary items	0	0
Earnings before income taxes	2,840	2,706
Income taxes	851	812
Net profit	1,989	1,894
Income components recognised in equity	0	0
Comprehensive income	1,989	1,894
Earnings per ordinary share (undiluted and diluted)	0.37	0.35
Earnings per preference share (undiluted and diluted)	0.37	0.35
Number of shares (undiluted and diluted)	5,409,172	5,409,172

Earnings per share as defined in IAS 33 are calculated for both ordinary and preference shares by dividing the net profit attributable to the respective share type by the average number of shares of the respective type. In the contextof this division, the portion of the net profit that will not be distributed is allocated to the respective number of shares.

statement of comprehensive income First Nine Month

in € '000	Jan. 1- Sep. 30, 2014	Jan. 1- Sep. 30, 2013
Sales	170,623	168,591
In/decrease in inventories	1.166	783
Own work capitalised	346	135
Total operating performance	172,135	169,509
Other operating income	4,152	2,132
Cost of materials	84,060	83,194
Personnel expenses	54,154	52,988
Depreciation and amortisation	7,521	7,499
Other operating expenses	23,028	21,348
Other taxes	173	173
Operating result	7,351	6,439
Financial result	288	305
Extraordinary items	0	0
Earnings before income taxes	7,639	6,744
Income taxes	2,291	2,023
Net profit	5,348	4,721
Income components recognised in equity	0	0
Comprehensive income	5,348	4,721
Earnings per ordinary share (undiluted and diluted)	0.96	0.84
Earnings per preference share (undiluted and diluted)	1.02	0.90
Number of shares (undiluted and diluted)	5,409,172	5,409,172

Cash flow statement

in € '000	Jan. 1- Sep. 30, 2014	Jan. 1- Sep. 30, 2013
Operating result/EBIT	7,351	6,439
Income tax payments	-1,832	-2,636
Depreciation and amortisation	7,521	7,499
Result from asset retirements	-76	-88
Change in current assets	-7,274	-3,208
Change in liabilities	2,277	4,604
Cash flow from operating activities	7,967	12,610
Investments in fixed assets	-11.868	-8.178
Change in financial assets	30	20
Income from investments	266	273
Income from fixed asset retirements	189	136
Cash flow from investment activities	-11,383	-7,749
Interest income	21	36
Interest expenses	0	0
Repayment of non-current financial liabilities	0	0
Acquisition/sale of own shares	0	0
Dividend payments	-5,238	-5,238
Cash flow from financing activities	-5,217	-5,202
Change in liquid funds	-8,633	-341
Cash and cash equivalents as of Jan. 1	21,290	15,526
Cash and cash equivalents as of Jun. 30	12,657	15,185

in € '000	Subscribed capital	Capital reserve	Revenue reserve	mulated profit Accu	Total
As of Jan. 1, 2013	14,644	24,399	59,511	10,354	108,908
Transfer to other reserve					0
wn shares Change in o					0
Changes not recognised in profit/loss					0
Dividend				-5,238	-5,238
Net profit				4,721	4,721
As of Sep. 30, 2013	14,644	24,399	59,511	9,837	108,391
As of Jan. 1, 2014	14,644	24,399	60,311	7,711	107,065
Transfer to other reserve					0
wn shares Change in o					0
Changes not recognised in profit/loss					0
Dividend				-5,238	-5,238
Net profit				5,348	5,348
As of Sep. 30, 2014	14,644	24,399	60,311	7,821	107,175

Statement of changes in equity

in € '000	Jan. 1- Sep. 30, 2014	Jan. 1- Sep. 30, 2013	Change in %
Germany
Sales	136,468	133,834	2.0
Earnings before income taxes	6,421	5,408	18.7
Export
Sales	34,155	34,757	-1.7
Earnings before income taxes	1,218	1,336	-8.8
Full Company
Sales	170,623	168,591	1.2
Earnings before income taxes	7,639	6,744	13.3

Segment report for the first Nine months 2014

Notes on the report for the Nine-month period ended September 30, 2014

1. Accounting principles

Westag & Getalit AG's quarterly report for the period ended September 30, 2014 was, except for IFRS 8 "Operating Segments", compiled in full compliance with the Financial Reporting Standards (IFRS) as valid on the reporting date. All accounting and valuation principles are consistent with those used for the 2013 financial statements. The waiver of applying IFRS 8 was conducted in order to prevent our company from expected business harm. As regards further reasoning, we refer to our Annual Report 2013.

2. Cash flow statement

The cash flows in the cash flow statement were determined using the indirect method.

3. Liquid funds

Liquid funds shown in the balance sheet doesn't include securities.

4. Composition of subscribed capital

The subscribed capital of € 14,643,200 is composed of 2,860,000 no-par ordinary shares and 2,860,000 non-voting no-par preference shares with a total value of € 7,321,600.

5. Other operating income/expenses

Other operating income and other operating expenses each include an amount of € 2.435 thousand for the settlement of the hail damage in 2013 as of the reporting date.

6. Purchase commitments

As of September 30, 2013, purchase commitments amounted to € 4,913 thousand, compared to € 5,823 thousand in the previous year.

7. Review

The interim financial statements and the interim management report have been neither audited in accordance with section 317 HGB nor reviewed by the auditors.

8. Responsibility statement

The legal representatives of Westag & Getalit AG assure, to the best of their knowledge, that, in accordance with the applied principles of proper interim reporting, the present interim financial statements provide a true and fair view of the net worth, financial and earnings position of the company, that the interim management report presents a true and fair view of the business results and the situation of the company and that the main risks and opportunities of the expected development of the company during the rest of the fiscal year have been outlined.

FINANCIAL CALENDAR*

March 24, 2015	Press release Report on the results
	of the fiscal year 2014
March 27, 2015	Publication of Financial Report 2014
	(on the Internet)
May 12, 2015	Report on the first three months of 2015
August 11, 2015	Interim report on the first six months 2015
August 18, 2015	Annual General Meeting in Rheda-Wiedenbrück
	Präsentation der Westag & Getalit AG
September 1, 2015	Presentation of Westag & Getalit AG at the
	Small Cap Conference in Frankfurt/Main
November 10, 2015	Report on the first 9 months of 2015

* For updates refer to: www.westag-getalit.de/financial-calendar

Westag & Getalit AG

Postfach 26 29 | 33375 Rheda-Wiedenbrück | Germany Tel. +49 5242 17-0 | Fax +49 5242 17-750 00 www.westag-getalit.de | ir@westag-getalit.de