Westag AG — Interim / Quarterly Report 2016

May 10, 2016

QUATERLY REPORT

1st Quarter 2016

INTERIM REPORT ON THE FIRST QUATERLY 2016

Sales

Westag & Getalit AG increased its sales revenues by an impressive 7.3% to € 59.9 million in the first quarter of 2016 (previous year: € 55.8 million). The company primarily benefited from the good business climate in the housing construction sector at the beginning of the year. The company's export business also showed a positive trend. Export sales increased by 11.7% to € 12.5 million in the reporting period (previous year: € 11.2 million). As a result, the export share climbed to 20.8% (previous year: 20.0%).

Divisions

Sales revenue in € '000	Jan. 1- Mar. 31, 2016	Jan. 1- Mar. 31, 2015	Change in %
Doors/Frames	32,765	28,905	13.4
Surfaces/Elements	25,452	25,439	0.1

Posting a 13.4% increase in sales revenues, the Doors/Frames Division made a significant contribution to the good performance. The Division continued to benefit from the positive trend in the housing construction sector and generated sales revenues of € 32.8 million in the first three months of the year (previous year: € 28.9 million).

At € 25.5 million, sales revenues of the Surfaces/Elements were on a par with the previous year (€ 25.4 million) in the reporting period.

Earnings

Profit data in € '000	Jan. 1- Mar. 31, 2016	Jan. 1- Mar. 31, 2015	Change in %
Earnings before income taxes	2,580	2,455	5.1
Net Profit	1,806	1,719	5.1
Earnings per ordinary share (in €)	0.31	0.29	5.6
Earnings per preference share (in €)	0.37	0.35	4.7

Westag & Getalit AG's earnings also showed a positive trend in the reporting period. Earnings before taxes (EBT) climbed from € 2.5 million in 2015 to € 2.6 million as of March 31, 2016. Moving in sync with EBT, net profit for the period increased by 5.1% from € 1.7 million to € 1.8 million.

Net profit per share amounted to € 0.31 for the ordinary shares (previous year: € 0.29) and to € 0.37 for the preference shares (previous year: € 0.35).

Capital expenditure

Capital expenditures of roughly € 12.0 million are planned for the fiscal year 2016. In view of the current capacity utilisation, investments will focus on capacity increases in the Doors/Frames Division. This primarily comprises the completion of a new frames production line in summer 2016. Capital expenditures in the Surfaces/Elements Division primarily relate to the optimisation of processes and the existing technical equipment.

Employees

Workforce	Mar.	Mar.	Change
	31, 2016	31, 2015	in %
Number of staff	1,304	1,301	0.2

As of March 31, 2016, the company employed a total of 1,304 people, three more than at the prior year reporting date.

Portfolio of own shares

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

Outlook

In spite of the positive developments at the beginning of the year, the outlook for the coming months remains difficult. The Management Board assumes that the company will continue to benefit from the positive trend in the German construction sector. Based on current estimates, the relevant export markets will generally also show a positive trend. This expectation is supported by the intensified distribution activities abroad and the product portfolios customised to the individual markets.

Against this background, the Management Board projects a moderate increase in sales revenues and earnings for 2016 based on the assumption that the economic environment will remain unchanged.

Rheda-Wiedenbrück, May 2016 Westag & Getalit AG The Executive Board

BALANCE SHEET

Assets in € '000	Mar. 31, 2016	Dec. 31, 2015
Intangible assets	953	1,044
Tangible assets	72,907	73,830
Financial assets	1,220	1,230
Deferred tax liabilities	2,170	2,154
Non-current assets	77,250	78,258
Inventories	35,898	34,566
Receivables and other assets	36,164	27,938
Cash at banks or in hand	12,897	16,835
Current assets	84,959	79,339
Total assets	162,209	157,597

Equity and liabilities in € '000	Mar. 31, 2016	Dec. 31, 2015
Subscribed Capital	14,644	14,644
Capital reserve	24,399	24,399
Revenue reserves	60,911	60,911
Accumulated profit	8,383	6,577
Equity and reserves	108,337	106,531
Pension provisions	22,937	22,891
Other non-current provisions	1,302	1,304
Non-current liabilities	24,239	24,195
Trade payables	9,754	7,602
Other current liabilities	19,541	18,763
Current provisions	338	506
Current liabilities	29,633	26,871
Total equity and liabilities	162,209	157,597

QUARTERLY STATEMENT OF COMPREHENSIVE INCOME

in € '000	Jan. 1- Mar. 31, 2016	Jan. 1- Mar. 31, 2015
Sales	59,902	55,838
In/decrease in inventories	1,372	1,310
Own work capitalised	73	24
Total operating performance	61,347	57,172
Other operating income	441	542
Cost of materials	30,031	27,788
Personnel expenses	19,376	18,506
Depreciation and amortisation	2,697	2,621
Other operating expenses	7,400	6,627
Other taxes	70	57
Operating result	2,214	2,115
Financial result	366	340
Extraordinary items	0	0
Earnings before income taxes	2,580	2,455
Income taxes	774	736
Net profit	1,806	1,719
Income components recognised in equity	0	0
Comprehensive income	1,806	1,719
Earnings per ordinary share (undiluted and diluted)	0.31	0.29
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. Accordingly, net profit for the year must be divided into the different share types taking into account the higher dividend for the preference shares. Diluted earnings are equivalent to earnings per share.

CASH FLOW STATEMENT

in € '000	Jan. 1- Mar. 31, 2016	Jan. 1- Mar. 31, 2015
Operating result/EBIT	2,214	2,115
Income tax payments	- 666	- 785
Depreciation and amortisation	2,697	2,621
Result from asset retirements	- 9	- 13
Change in current assets	- 9,559	- 8,175
Change in liabilities	2,681	206
Cash flow from operating activities	- 2,642	- 4,031
Investments in fixed assets	- 1,731	- 1,432
Change in financial assets	10	10
Income from investments	366	333
Income from fixed asset retirements	59	27
Cash flow from investment activities	- 1,296	- 1,062
Interest income	0	3
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	0	3
Change in liquid funds	- 3,938	- 5,090
Cash and cash equivalents as of Jan. 1	16,835	17,316
Cash and cash equivalents as of March 31	12,897	12,226

in € '000	Subscribed capital	Capital reserve	Revenue reserve	mulated profit Accu	Total
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
Changes not recognised in profit/loss					0
Dividend					0
Net profit				1,719	1,719
Mar. 31, 2015 As of	14,644	24,399	60,711	6,284	106,038
As of Jan. 1, 2016	14,644	24,399	60,911	6,577	106,531
Transfer to other reserve					0
wn shares Change in o					0
Changes not recognised in profit/loss					0
Dividend					0
Net profit				1,806	1,806
Mar. 31, 2016 As of	14,644	24,399	60,911	8,383	108,337

STATEMENT OF CHANGES IN EQUITY

SEGMENT REPORT FOR THE FIRST THREE MONTHS

in € '000	Jan. 1- Mar. 31, 2016	Jan. 1- Mar. 31, 2015	Change in %
Germany
Sales	47,420	44,660	6.2
Earnings before income taxes	2,201	2,085	5.6
Export
Sales	12,482	11,178	11.7
Earnings before income taxes	379	370	2.4
Full Company
Sales	59,902	55,838	7.3
Earnings before income taxes	2,580	2,455	5.1

NOTES ON THE REPORT FOR THE FIRST PERIOD ENDED MARCH 31, 2016

1. Accounting principles

Westag & Getalit AG's quarterly report for the period ended March 31, 2016 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 2015 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 2015.

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. Purchase commitments

As of March 31, 2016, purchase commitments amounted to € 3,297 thousand, compared to € 6,203 thousand in the previous year.

6. 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.

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.

FINANZKALENDER*

March 29, 2016	Press release
	Report on the results of the fiscal year 2015
March 30, 2016	Publication of Financial Report 2015
	(on the Internet)
April 28, 2016	Annual Accounts Press Conference
	in Rheda-Wiedenbrück
May 10, 2016	Report on the first three months of 2016
August 10, 2016	Interim report on the first six months 2016
August 23, 2016	Annual General Meeting (AGM) of Shareholders
	in Rheda-Wiedenbrück
November 3, 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