Westag AG — Interim / Quarterly Report 2015

Nov 10, 2015

INTERIM REPORT

1st nine months of 2015

INTERIM REPORT ON THE FIRST SIX MONTHS 0F 2015

Sales

The first nine months of the financial year saw Westag & Getalit AG generate sales revenues of € 170.1 million. While this was still 0.3 % down on the prior year's period (€ 170.6 million), it is mainly a reflection of the weaker first quarter. Export sales developed very encouragingly during the nine-month period, rising by 3.8 % to € 35.4 million (previous year: € 34.2 million) despite the significant slump in Russia. The export ratio consequently climbed from 20.0 % to 20.8 %.

Sales revenue in € '000	Jan. 1-Sept. 30, 2015	Jan. 1-Sept. 30, 2014	Change in %
Doors/Frames	90,049	90,019	0.0
Surfaces/Elements	75,181	75,250	- 0.1

Divisions

Sales revenues in the Doors/Frames Division during the first nine months came in at € 90.1 million, remaining almost unchanged from the prior-year figure of € 90.0 million.

The Surfaces/Elements Division contributed € 75.2 million to the nine-month sales figure, which was marginally below the prior-year figure (€ 75.3 million).

As already reported at the half-year stage, total sales revenues were adversely affected by external revenues from the co-generation plant coming in lower due to downtimes necessitates by routine maintenance work being brought forward.

Earnings

Profit data in € '000	Jan. 1-Sept. 30, 2015	Jan. 1-Sept. 30, 2014	Change in %
Earnings before income taxes	7,673	7,639	0.4
Net Profit	5,371	5,348	0.4
Earnings per ordinary share (in €)	0.97	0.96	0,5
Earnings per preference share (in €)	1.03	1.02	0.4

The company's earnings performance during the first nine months was satisfactory. At € 7.7 million, earnings before taxes were up 0.4 % on the prior year period. This trend was mirrored in net profit which also increased by 0.4% % to € 5.4 million. At the end of the nine-month period, net profit per ordinary share and preference share stands at € 0.97 and € 1.03, respectively.

Capital expenditure

Capital expenditure in excess of € 13 million is budgeted for the current financial year. Apart from an extension of the production halls, the Doors/Frames Division is also moving forward with its investment in a new frames production line. This multi-year project requires certain advance payments for equipment to be delivered only in 2016. Also, the expansion of the Surface/ Element Division's cut-to-site worktop operation will include the installation of a new processing plant. These investments highlight the company's efforts to gear up for current and future market needs.

Employees

Personalstärke	30.09.2015	30.09.2014	Veränderung in %
Anzahl Mitarbeiter	1,308	1,295	1.0

The employee headcount on the September 30, 2015 reporting date rose to 1,308 (previous year: 1,295) as a result of agency staff being converted to full employee status.

Portfolio of own shares

As of September 30, 2015, Westag & Getalit AG held 310,828 own shares, all of which were preference shares.

Outlook

The economic environment looks positive overall, even though trading conditions in certain regions are bound to suffer from the political uncertainties around the globe. It remains to be seen to what extent European housing construction will be driven in the medium term by demographic changes through immigration from crisis regions. Encouraging factors include the strong situation in domestic housing construction as well as the slowly recovering activity in public and commercial construction. This is also reflected in Westag & Getalit AG's order book which suggests a positive and improved revenues and earnings trend for the fourth quarter compared to the prior year.

Management therefore continues to expect a slight rise in both sales and earnings.

Rheda-Wiedenbrück, November 2015 Westag & Getalit AG The Executive Board

BALANCE SHEET

Assets in € '000	Sept. 30, 2015	Dec. 31, 2014
Intangible assets	847	930
Tangible assets	72,954	72,160
Financial assets	1,240	1,270
Deferred tax liabilities	2,537	2,499
Non-current assets	77,578	76,859
Inventories	37,584	34,165
Receivables and other assets	33,996	27,805
Cash at banks or in hand	10,847	17,316
Current assets	82,427	79,286
Total assets	160,005	156,145

Equity and liabilities in € '000	Sept. 30, 2015	Dec. 31, 2014
Subscribed Capital	14,644	14,644
Capital reserve	24,399	24,399
Revenue reserves	60,711	60,711
Accumulated profit	4,699	4,565
Equity and reserves	104,453	104,319
Pension provisions	25,012	24,882
Other non-current provisions	1,641	1,443
Deferred tax liabilities	0	0
Non-current liabilities	26,653	26,325
Trade payables	9,011	7,973
Other current liabilities	19,327	16,917
Current provisions	561	611
Current liabilities	28,899	25,501
Total equity and liabilities	160,005	156,145

QUARTERLY STATEMENT OF COMPREHENSIVE INCOME

in € '000	Jul. 1- Sept. 30, 2015	Jul. 1- Sept. 30, 2014
Sales	58,528	58,193
In/decrease in inventories	-721	-1,106
Own work capitalised	121	144
Total operating performance	57,928	57,231
Other operating income	665	1,680
Cost of materials	27,991	27,904
Personnel expenses	18,242	17,846
Depreciation and amortisation	2,576	2,336
Other operating expenses	7,106	7,922
Other taxes	78	67
Operating result	2,600	2,836
Financial result	1	4
Extraordinary items	0	0
Earnings before income taxes	2,601	2,840
Income taxes	781	851
Net profit	1,820	1,989
Income components recognised in equity	0	0
Comprehensive income	1,820	1,989
Earnings per ordinary share (undiluted and diluted)	0.34	0.37
Earnings per preference share (undiluted and diluted)	0.34	0.37
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.

HALF-YEAR STATEMENT OF COMPREHENSIVE INCOME

in € '000	Jan. 1- Sept. 30, 2015	Jan. 1- Sept. 30, 2014
Sales	170,132	170,623
In/decrease in inventories	1,731	1,166
Own work capitalised	220	346
Total operating performance	172,083	172,135
Other operating income	1,804	4,152
Cost of materials	83,356	84,060
Personnel expenses	54,739	54,154
Depreciation and amortisation	7,818	7,521
Other operating expenses	20,438	23,028
Other taxes	210	173
Operating result	7,326	7,351
Financial result	347	288
Extraordinary items	0	0
Earnings before income taxes	7,673	7,639
Income taxes	2,302	2,291
Net profit	5,371	5,348
Income components recognised in equity	0	0
Comprehensive income	5,371	5,348
Earnings per ordinary share (undiluted and diluted)	0.97	0.96
Earnings per preference share (undiluted and diluted)	1.03	1.02
Number of shares (undiluted and diluted)	5,409,172	5,409,172

CASH FLOW STATEMENT

in € '000	Jan. 1- Sept. 30, 2015	Jan. 1- Sept. 30, 2014
Operating result/EBIT	7,326	7,351
Income tax payments	-2,148	-1,832
Depreciation and amortisation	7,818	7,521
Result from asset retirements	-33	-76
Change in current assets	-9,802	-7,274
Change in liabilities	3,723	2,277
Cash flow from operating activities	6,884	7,967
Investments in fixed assets	-8,558	-11,868
Change in financial assets	30	30
Income from investments	333	266
Income from fixed asset retirements	63	189
Cash flow from investment activities	-8,132	-11,383
Interest income	16	21
Interest expenses	0	0
Repayment of non-current financial liabilities	0	0
Acquisition/sale of own shares	0	0
Dividend payments	-5,237	-5,238
Cash flow from financing activities	-5,221	-5,217
Change in liquid funds	-6,469	-8,633
Cash and cash equivalents as of Jan. 1	17,316	21,290
Cash and cash equivalents as of Jun. 30	10,847	12,657

in € '000	Subscribed capital	Capital reserve	Revenue reserve	mulated profit Accu	Total
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	0
Changes not recognised in profit/loss				0	0
Dividend				-5,238	-5,238
Net profit				5,348	5,348
As of Sept. 30, 2014	14,644	24,399	60,311	7,821	107,175
As of Jan. 1, 2015	14,644	24,399	60,711	4,565	104,319
Transfer to other reserve					0
wn shares Change in o				0	0
Changes not recognised in profit/loss				0	0
Dividend				-5,237	-5,237
Net profit				5,371	5,371
As of Sept. 30, 2015	14,644	24,399	60,711	4,699	104,453

STATEMENT OF CHANGES IN EQUITY

in € '000	Jan. 1-Sept. 30, 2015	Jan. 1-Sept. 30, 2014	Change in %
Germany
Sales	134,688	136,468	- 1.3
Earnings before income taxes	6,192	6,421	- 3.6
Export
Sales	35,444	34,155	3.8
Earnings before income taxes	1,481	1,218	21.6
Full Company
Sales	170,132	170,623	- 0.3
Earnings before income taxes	7,673	7,639	0.4

SEGMENT REPORT FOR THE FIRST SIX MONTHS 2015

NOTES ON THE REPORT

1. Accounting principles

Westag & Getalit AG's quarterly report for the period ended September 30, 2015 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 2014 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 2014.

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 2014 as of the reporting date.

6. Purchase commitments

As of September 30, 2015, purchase commitments amounted to € 4,630 thousand, compared to € 4,913 thousand in the previous year.

7. Opportunity and Risk Report

The opportunities and risks to which the company is exposed and which remain unchanged, are specified in the Management Report of the current Annual Report. From today's point of view, no additional assessable risks are discernible.

8. 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.

9. 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 29, 2016	Press release Report on the results
March 31, 2016	of the fiscal year 2015
	Publication of Financial Report 2015
May 10, 2016	(on the Internet)
August 10, 2016	Report on the first three months of 2016
August 23, 2016	Interim report on the first six months 2016
	Annual General Meeting in Rheda-Wiedenbrück
November 11, 2016	Presentation of Westag & Getalit AG at the
	Small Cap Conference in Düsseldorf
November 10, 2016	Report on the first 9 months of 2016

* 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