Westag AG — Interim / Quarterly Report 2015

May 12, 2015

Quaterly Report

1st Quarter 2015

Interim Report on the first Quaterl y 2015

Sales

Westag & Getalit AG reported a moderate reduction in sales revenues in the first quarter of 2015. During the first three months of the year, revenues declined by 2.0% to € 55.8 million (previous year: € 57.0 million). Export sales showed a positive trend in spite of the continued difficult economic environment in the company's individual markets. Exports picked up by 5.5% to € 11.2 million in the reporting period (previous year: € 10.6 million). Consequently, the export share climbed to 20.0% (previous year: 18.6%).

Divisions

Sales revenue in € '000	Jan. 1- Mar. 31, 2015	Jan. 1- Mar. 31, 2014	Change in %
Doors/Frames	28,905	29,824	-3.1
Surfaces/Elements	25,439	25,424	0.1

The Doors/Frames Division generated revenues of € 28.9 million in the first quarter, down by 3.1% on the good prior year quarter (previous year: € 29.8 million).

Sales revenues in the Surfaces/Elements Division remain unchanged from the previous year at € 25.4 million.

Earnings

Profit data in € '000	Jan. 1- Mar. 31, 2015	Jan. 1- Mar. 31, 2014	Change in %
Earnings before income taxes	2,455	2,161	13.6
Net Profit	1,719	1,513	13.6
Earnings per ordinary share (in €)	0.29	0.25	15.1
Earnings per preference share (in €)	0.35	0.31	12.2

Despite the moderate decline in sales revenues, earnings before taxes increased thanks to the improved cost structure. At € 2.5 million, earnings were up by 13.6% on the previous year's € 2.2 million. Accordingly, net profit for the period also showed a positive trend and climbed from € 1.5 million in the previous year to € 1.7 million. Net profit for the period per share amounted to € 0.29 for the ordinary shares and to € 0.35 for the preference shares.

Capital expenditure

The company plans to invest a good € 10 million in the current fiscal year, with the main focus on selective capacity expansions in the context of the modernisation strategy, which will be pushed ahead further this year. The Doors/Frames Division will not only extend its production halls but also plans to start a multiyear investment project for a new frames production line. In addition, the Surface/Elements Division intends to invest in a new processing plant for cut-to-size worktops at the Wadersloh plant. With these investments, the company continues to respond to current market requirements.

Employees

Workforce	Mar.	Mar.	Change
	31, 2015	31, 2014	in %
Number of staff	1,301	1,279	1.7

As of March 31, 2015, the headcount rose to 1,301 (previous year: 1,279). As outlined in the 2014 Annual Report, this increase is attributable to the fact that permanent employment contracts were signed with previously temporary workers.

Portfolio of own shares

As of March 31, 2015, Westag & Getalit AG held 310,828 own shares, all of which were preference shares.

Outlook

After the first few months of 2015, the macroeconomic background suggests that the market environment will remain differentiated. The good situation in the housing construction sector and the slowly recovering public and commercial construction sector give cause for optimism. In spite of the good export trend in the past months, the projections for the export business remain subdued for the time being.

The investment projects realised in the past have laid the basis for new areas of growth in Germany and abroad, which will lead to growing revenues in the context of a marketing offensive.

The earnings forecast for 2015 is subject not only to sales revenues but also to raw materials prices, which are influenced, among other things, by oil-based chemicals. Assuming a stable economic trend in the further course of the year, in conjunction with the planned distribution offensive and strict cost management, the company's management believes, however, that the conditions are in place for future earnings growth. Against this background, the Management Board continues to project a moderate increase in sales revenues and earnings for 2015.

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

Balance sheet

Assets in € '000	Mar. 31, 2015	Dec. 31, 2014
Intangible assets	967	930
Tangible assets	70,920	72,160
Financial assets	1,260	1,270
Deferred tax liabilities	2,516	2,499
Non-current assets	75,663	76,859
Inventories	35,654	34,165
Receivables and other assets	34,523	27,805
Cash at banks or in hand	12,226	17,316
Current assets	82,403	79,286
Total assets	158,066	156,145

Equity and liabilities in € '000	Mar. 31, 2015	Dec. 31, 2014
Subscribed Capital	14,644	14,644
Capital reserve	24,399	24,399
Revenue reserves	60,711	60,711
Accumulated profit	6,284	4,565
Equity and reserves	106,038	104,319
Pension provisions	24,917	24,882
Other non-current provisions	1,596	1,443
Deferred tax liabilities	0	0
Non-current liabilities	26,513	26,325
Trade payables	9,743	7,973
Other current liabilities	15,321	16,917
Current provisions	451	611
Current liabilities	25,515	25,501
Total equity and liabilities	158,066	156,145

Quarterly statement of comprehensive income

in € '000	Jan. 1- Mar. 31, 2015	Jan. 1- Mar. 31, 2014
Sales	55,838	56,977
In/decrease in inventories	1,310	750
Own work capitalised	24	84
Total operating performance	57,172	57,811
Other operating income	542	1,078
Cost of materials	27,788	28,353
Personnel expenses	18,506	18,567
Depreciation and amortisation	2,621	2,610
Other operating expenses	6,627	7,414
Other taxes	57	58
Operating result	2,115	1,887
Financial result	340	274
Extraordinary items	0	0
Earnings before income taxes	2,455	2,161
Income taxes	736	648
Net profit	1,719	1,513
Income components recognised in equity	0	0
Comprehensive income	1,719	1,513
Earnings per ordinary share (undiluted and diluted)	0.29	0.25
Earnings per preference share (undiluted and diluted)	0.35	0.31
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.

Cash flow statement

in € '000	Jan. 1- Mar. 31, 2015	Jan. 1- Mar. 31, 2014
Operating result/EBIT	2,115	1,887
Income tax payments	-785	-882
Depreciation and amortisation	2,621	2,610
Result from asset retirements	-13	-45
Change in current assets	-8,175	-7,423
Change in liabilities	206	-559
Cash flow from operating activities	-4,031	-4,412
Investments in fixed assets	-1,432	-3,966
Change in financial assets	10	10
Income from investments	333	266
Income from fixed asset retirements	27	81
Cash flow from investment activities	-1,062	-3,609
Interest income	3	9
Interest expenses	0	0
Repayment of non-current financial liabilities	0	0
Acquisition/sale of own shares	0	0
Dividend payments	0	0
Cash flow from financing activities	3	9
Change in liquid funds	-5,090	-8,012
Cash and cash equivalents as of Jan. 1	17,316	21,290
Cash and cash equivalents as of March 30	12,226	13,278

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
Dividend				0	0
Net profit				1,513	1,513
Mar. 31, 2014 As of	14,644	24,399	60,311	9,224	108,578
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
Dividend				0	0
Net profit				1,719	1,719
Mar. 31, 2015 As of	14,644	24,399	60,711	6,284	106,038

Statement of changes in equity

Segment report for the First

in € '000	Jan. 1- Mar. 31, 2015	Jan. 1- Mar. 31, 2014	Change in %
Germany
Sales	44,660	46,384	-3.7
Earnings before income taxes	2,085	1,801	15.8
Export
Sales	11,178	10,593	5.5
Earnings before income taxes	370	360	2.8
Full Company
Sales	55,838	56,977	-2.0
Earnings before income taxes	2,455	2,161	13.6

Notes on the report for the First period ended March 31, 2015

1. Accounting principles

Westag & Getalit AG's quarterly report for the period ended March 31, 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 € 471 thousand for the settlement of the hail damage in 2014 as of the reporting date.

6. Purchase commitments

As of March 31, 2015, purchase commitments amounted to € 6,431 thousand, compared to € 6,203 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