Key financial information

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2 Key financial information Profit & loss (Millions of euros) Q2 Q Change H1 H Change Revenues % % thereof Western Europe % % thereof Central, Northern & Eastern Europe % % thereof Southern Europe % % thereof Asia & Africa % % thereof Chimneys & Energy Systems % % thereof Central Products & Services % % Reconciliation / inter-segment revenues % % Gross Profit % % in % of revenues 31.1% 27.9% 28.0% 24.0% Operating EBITDA (1) % % in % of revenues 19.1% 15.3% 14.3% 8.6% thereof Western Europe % % thereof Central, Northern & Eastern Europe % >100% thereof Southern Europe % % thereof Asia & Africa % % thereof Chimneys & Energy Systems % % thereof Central Products & Services % % Operating income (1) % >100% in % of revenues 11.9% 8.3% 5.9% -0.1% Non-operating result (1) >100% >100% EBIT >100% >100% Net financial result % % Profit (Loss) for the period >100% >100% Other key figures (Millions of euros) Q2 Q Change H1 H Change Net cash from operating activities >-100% % Capital expenditure (2) % % June Dec Change Equity >100% Capital employed (1) / (3) % Net debt (4) % Net debt/operating EBITDA 2.3 x 2.8 x Operating EBITDA/net interest expense 5.1 x 5.6 x Employees, full-year equivalents at end of period 7,333 7, % Revenues by product group (Millions of euros) Q2 Q Change H1 H Change Concrete roof tiles % % Clay roof tiles % % Components % % Chimneys % % Other % % Total Revenues % % (1) Non-IFRS-GAAP figure (2) Represents additions to intangible assets and property, plant and equipment (3) Defined as tangible assets plus inventories plus trade and other receivables minus total payables (4) Defined as long term and short term liabilities to banks minus cash and cash equivalents 2013 figures restated for IFRS 11. Due to rounding, slight discrepancies in totals and percentage figures may occur. 2 / 45

3 Highlights first half-year and Outlook Transformational capital market transactions o Refinancing in April o Initial Public Offering in June Excellent operating performance in first-half o Solid revenue growth of 4% (like-for-like: 6%) o Revenues up in all product categories, strong market growth visible in some countries o Substantial increase in Operating EBITDA of 73% (like-for-like: 77%) and margin rising to 14.3% o Positive net profit achieved o Leverage significantly reduced to 2.3x Operating EBITDA Outlook for confirmed o Continued profitability improvement in growing markets through operating leverage and cost control o Strong focus on cost control in weaker markets to maintain profitability Top Line Growth program (TLG) introduced to focus on delivering above-market growth 3 / 45

4 Contents Interim Group Management Report... 5 Interim consolidated financial statements Notes to the interim consolidated financial statements BRAAS MONIER BUILDING GROUP S.A. at a glance / 45

5 Interim Group Management Report Market development We are a leading manufacturer and supplier of pitched roof products, including both roof tiles and roofing components, in Europe, parts of Asia and South Africa. In 2013, we generated close to 90% of our revenues in Europe, with Germany (27% of total revenues in 2013) being the most dominant single market, followed by France (12%), the UK (9%) and Italy (7%). In most European countries, favourable weather condition created a perfect start into the year, followed by a more pronounced seasonal correction in the second quarter. Extremely strong growth characterises the UK market. Since 2013, the UK construction sector has been profiting from several financial programmes such as the affordable houses programme (funded by 2 billion) or the help to buy loan scheme (funded by 7 billion). Increasing real estate prices and a decreasing unemployment rate have served to further substantiate the upswing. In Germany, the overall attractive economic situation and rising immigration are supporting market growth. The renovation sector profits from the extension of state subsidies for energy related renovation measures. The French market has declined in the first half of year. Drivers are macro-economic aspects such as a rising unemployment rate, decreasing house prices and less attractive governmental subsidies. The market environment in Italy has been quite challenging. In contrast to current market surveys, Italy has experienced a further weakening in the residential sector, in particular in the second quarter. To date the visibility regarding a short term recovery is limited. In other European markets, increasing construction activity is being seen in countries such as Poland or Hungary. The Czech Republic and Slovakia still remain rather difficult while in contrast to some expert forecasts, the Dutch market surprised positively, even though this still appears to be fragile. In Asia & Africa, strong growth has been seen in India and South Africa, but flat market developments in China, Indonesia and Malaysia. 5 / 45

6 Further initiatives for above-market growth With the Top Line Growth (TLG) program, Braas Monier has started a multi-year group-wide program to achieve sustainable above-market revenue growth. The program focuses on the product portfolio, further development of the services the company provides to its customers, rolling out best practices in Sales & Marketing, as well as capacity expansion in high growth markets and value-creating bolt-on M&A transactions. With the current set-up, existing initiatives and TLG, Braas Monier is perfectly positioned to profit significantly from further growth in its markets in the short and medium term as well as from megatrends such as ever rising demand for energy efficient building envelopes through its components business. Financial review Income statement In both, growing and contracting markets, Braas Monier has managed through focused initiatives to outperform in a number of countries, such as Germany, the Netherlands, Malaysia, Sweden, Poland or Austria. Revenues in the first half of rose by 3.9% to million (H1 2013: million). The weakening of some currencies against the Euro, most notably in Asia & Africa, the Nordic countries and Turkey, negatively impacted revenues by roughly 11.2 million or 2.1%. Therefore, on a like-for-like basis, revenue growth would have been 6.0% in the first half of. This increase was mostly driven by increased volumes in roofing tiles (+3.8%). Slightly positive average selling prices backed this positive volume growth. The components business continued to show accelerated growth. In local currency, the KPI for European Components, which measures the amount of component revenues 1 per square meter roofing tiles sold, grew by about 2% compared the first six months of There were no changes in the company s portfolio affecting revenues. The individual quarters within the first half of were impacted by seasonal effects. In the first quarter, revenues increased by 15.9% from million to million, strongly profiting from warm weather, with construction activity being performed earlier in the year than normal. The second quarter therefore contained a more pronounced seasonal correction, resulting in lower revenues. Revenues in the second quarter of were million, 13.3 million or 4.1% lower than the corresponding period of the previous year. On a like-for-like basis, excluding foreign exchange effects of 5.9 million, the decline would have been a more moderate -2.3%. 1 excluding the components-only brand Klöber 6 / 45

7 Despite the slightly lower revenues in the second quarter of, Braas Monier has continued to increase profitability through an unwaning focus on strict control of costs. With a revenue increase of 21.0 million in the first six months of, Braas Monier was able to increase Operating EBITDA by 34.0 million or 72.7% to 80.9 million (H1 2013: 46.9 million). In 2013, within the framework of Step 200+, Braas Monier reduced its workforce significantly, focussing on sustainable reductions of fixed costs. From January to June, total fixed costs decreased by about 16 million, mainly due to Step 200+ cost savings initiated in The savings in fixed cost of production as well as improvements in manufacturing efficiency, some decreases in input prices and improvement of average selling prices allowed Braas Monier to further improve its gross profit margin from 24.0% to 28.0% (+4.0 percentage points). Compared to the same period in 2013, selling and administrative expenses were 7.3 million lower in the first half of. Hence, the Operating EBIDTA margin rose even more strongly than the gross profit margin and gained 5.7 percentage points, rising to 14.3% (H1 2013: 8.6%). In the second quarter, despite lower sales, Braas Monier continued to increase the gross profit margin and the Operating EBITDA. The gross profit margin rose from 27.9% in the second quarter of 2013 to 31.1% in the second quarter of, Operating EBITDA from 50.3 million to 60.2 million (+19.7% or 9.9 million). Again, this improvement was related to fixed cost savings from Step 200+ described above as well as a continued focus on management of fixed and variable costs. While the first half of 2013 still saw significant expenses related to the restructuring of the Group ( 25.5 million), similar expenses did not occur in. Other operating income as well as other operating expenses and results from associates were significantly lower than last year and in total did not materially impact the half-year results in. Depreciation and amortization decreased in the reporting period from 49.1 million in 2013 to 47.7 million in. Reported EBIT from January to June thus improved strongly over last year s level turning from a loss of 26.5 million to a profit of 34.3 million ( million). In the second quarter, EBIT more than tripled, jumping from 10.3 million in 2013 to 38.0 million in. The net financial result ( million in versus million in 2013) was strongly influenced by a number of different factors. In the first quarter of this year, the net financial result dropped to million (Q1 2013: -6.1 million) while in the second quarter it improved to -8.0 million (Q2 2013: -9.7 million). The decline in the first quarter was due to a step up of the interest level under the old 7 / 45

8 financing structure, triggered by the amendment and extension of senior debt in November In April, Braas Monier successfully refinanced this senior debt (around 656 million at the time) by issuing a Senior Secured Floating Rate Note of 315 million, a Term Loan B of 250 million and in addition paid down nearly 100 million from existing funds. With the interest rates of the new financing (Euribor plus 500 basis points for the Senior Secured Floating Rate Note and Euribor plus 450 basis points for the Term Loan B) being significantly lower than the ones of the old financing (around 7.25%) and the overall lower debt level due to the pay down of nearly 100 million, the interest charge in the second quarter declined compared to the first three months of. The financial result in the second quarter included a positive one-time non-cash income of roughly 13 million due to the extinguishment of the LIBOR floor of 1% included in the previous financing structure. Total fees for the refinancing amounted to ca. 20 million. According to IAS 39, these fees are amortised in the P&L over the duration of the financing (i.e. until 2020). In the second quarter, their impact on the finance expenses was around 0.6 million. Fees and costs directly related to the IPO in June amounted to roughly 14.5 million. Around 10 million thereof are reflected in the finance costs in Q2. Based on a strongly improved earnings before taxes (EBT), amounting to 7.8 million after the first six months of, income taxes rose accordingly to 2.6 million in the first half of (H showed a tax gain of 5.2 million due to negative EBT of million). The same applies to the second quarter, where an EBT of 30.0 million led to income taxes of 9.2 million, comparing with only 0.1 million of income taxes in the previous year s period (Q EBT: 0.5 million). The Group s consolidated effective tax rate for the first six months ended on 30 June was 32.89% (30 June 2013: 12.21%). Braas Monier was able to record a positive net income for the period, not only in the second quarter but also in the complete first half of. From January to June net income increased by 42.4 million to deliver a profit of 5.2 million (H minus 37.2 million). The months of April to June contributed 20.4 million to that improvement ( 20.8 million in Q2 versus 0.5 million in Q2 2013). Divided by the number of shares outstanding following the IPO (39,1666,667), the net income per share for the first half of amounts to 0.14 and to 0.53 for the second quarter. 8 / 45

9 Balance sheet The balance sheet total increased by 0.7% compared to the end of 2013 to 1,502.8 million. Depreciation and amortisation during the first half of amounted to 47.1 million (previous year s period: 49.1 million), thereof 39.7 million relating to property, plant and equipment and 7.4 million relating to intangible assets (H1 2013: 42.4 million and 6.7 million, respectively). In the first six months of, Braas Monier acquired property, plant and equipment in the amount of 11.0 million as well as intangible assets in the amount of 1.1 million (H1 2013: 12.5 million and 1.0 million respectively). In total, the Group acquired assets in the amount of 12.1 million in the first half of (H1 2013: 13.5 million). The difference between depreciation and amortisation and capital expenditure explains the major changes in non-current assets, decreasing from million at the end of 2013 to million at the end of June. Current assets increased compared to year end 2013 by 42.9 million to million, mainly driven by higher inventories and trade accounts receivables, that were only partly offset by slightly lower cash levels. This increase in inventories (from million at the end of 2013 to million at end of June ) and trade accounts receivables (from million to million) is mainly related to typical seasonal patterns. In the cash position, the gross proceeds from the Initial Public Offering in June and the cash used to pay down debt in April were at a comparable level of roughly 100 million and therefore compensated each other to a large extent in the first half of. However, the cash cost attached to both capital market transactions decreased the cash position, in addition to the usual working capital swing and outflows from the use of provisions that mainly were built at the end of 2013 in relation to the restructuring. Therefore the amount of cash and cash equivalents reduced to million at the end of the first half of (compared to million at the closing date of the 2013 business year) despite a significantly improved EBIT (see Cash flow on page 10 for further details). As a result of the capital increase of approximately 100 million in connection with the IPO, total equity rose from 16.2 million at 31 December 2013 to million at 30 June. Long term liabilities to banks declined by million to million, mainly due to the pay down of debt in April as part of the successful refinancing. During the second quarter of, the company decided to draw 40.0 million of the 100 million revolving credit facility (RCF) which is reflected in the short term liabilities to banks that stood at 57.0 million at the end of the first half of (end of H1 2013: 12.5 million). 9 / 45

10 Provisions for pension liabilities and similar obligations rose to million euro ( million at 31 December 2013) on the back of lower discount rates, driven by the European Central Bank s reduction of the base rate in June. Cash flow Despite the direct costs in relation to the refinancing and the IPO as well as the use of provisions, built in 2013 relating to the personnel reductions of Step 200+, net cash from operating activities after six months in the current business year showed a material improvement of 23.0 million or 25.0% to million in the first half of versus million in the first half of From April to June, net cash from operating activities declined from 13.8 million last year to -9.3 million in, driven by the oneoff transactional effects and higher cash interest charges masking the underlying positive operating performance. In net cash used in investing activities, a decrease of 4.8 million in capital expenditures to 6.3 million in the first quarter of was completely compensated for by a similar increase in capital expenditures (plus 4.7 million to 11.8 million) in the second quarter of the reporting period. Cash outflows from investments in intangible assets and property, plant and equipment therefore remains close to the prior year level after the first six months ( 18.2 million). Including proceeds from disposals (predominantly in the first quarter) net cash from investing activities decreased by 3.9 million to minus 16.5 million in. Free cash flow for the first half of stood at million (H1 2013: million) and million during the second quarter (Q2 2013: 8.4 million). Adjusted for one-time cash costs, Adjusted free cash flow increased in H1 by 39.0% from million in 2013 to million in. The adjusted figure for the second quarter in reaches 6.8 million (previous year s comparison: 27.0 million). Cash flow and adjusted free cash flow (Millions of euros) Q2 Q H1 H Net cash from operating activities >-100% % Net cash from / (used) in investing activities % % Free Cash Flow >-100% % Net cash from / (used) in financing activities >100% >100% Net Cash Flow % % Cash and cash equivaltents at the beginning of the period % % Effect of exchange rate fluctuations on cash and cash equivalents >100% % Cash and cash equivaltents at the end of the period % % Adjustments on 'Free Cash Flow' (above): Acquisitions and dispositions >-100% % Debt restructuring >100% >100% Operational restructuring % % Litigation % % Adjusted free cash flow % % 10 / 45

11 Net cash from financing activities increased from 6.1 million in the first six months of 2013 to 47.6 million in the first six months of primarily due to the proceeds from the Primary offering of close to 100 million, offset by the borrowing of 40.0 million under the RCF in the second quarter and the pay down of debt of close to 100 million in the first quarter. Financing and Treasury In April, Braas Monier successfully refinanced its debt (around 656 million at the time) by issuing a Senior Secured Floating Rate Note of 315 million, a Term Loan B of 250 million and in addition paid down roughly 100 million from exiting funds. The interest rates for the Senior Secured Floating Rate Note (Euribor plus 500 basis points) and the Term Loan B (Euribor plus 450 basis points) are significantly lower than the ones of the old financing (Euribor floor of 1% plus 625 basis points). Total fees for the refinancing in April amounted to ca. 20 million, whereof around 17 million were paid as of 30 June. The Primary Issuance at the IPO on 25 June led to proceeds of close to 100 million. Fees and cost directly related to taking the company public in June amounted to roughly 14.5 million, of which 3.5 million were paid as of 30 June. During the second quarter of, the company decided to draw 40.0 million of the 100 million revolving credit facility (RCF) which has subsequently been paid back in July. Braas Monier has also in July used further IPO proceeds and existing funds to reduce its financial liabilities through a 50 million voluntary prepayment of its Term Loan B. Following the voluntary prepayment in July the financial liabilities of the Group mainly consist of the Senior Secured Floating Rate Note of 315 million and the remaining outstanding amounts under the Term Loan of 200 million. Both instruments mature in Further financial flexibility is provided by the now completely undrawn Revolving Credit Facility of 100 million. Net debt at the end of H1 stood at million, a material improvement over last year s level of million. Pension liabilities, accrued interest and capitalised fees are not part of the company s net debt definition. On a rolling twelve-month basis (LTM), Operating EBITDA reached million. Hence, net debt to Operating EBITDA (LTM) fell to 2.3 times. One year earlier, this ratio was 4.2 times. Operating EBITDA in relation to interest result improved likewise from 4.4 times (H1 2013) to 5.1 times (H1 ). Both ratios show significant headroom to maintenance covenants included in the financial documentation. 11 / 45

12 Treasury Ratios June December December Net debt/operating EBITDA 2.3 x 2.8 x 3.3 x Operating EBITDA/net interest expense 5.1 x 5.6 x 4.0 x According to the Senior Facility Agreement in connection with the refinancing, Braas Monier is required to hedge roughly two thirds of its variable interest until beginning of October. In July, the vast majority of this hedging took place in the amount of 315 million for the Senior Secured Floating Rate Note, fixing the floating potion at 0.727% giving rise to a revised total interest rate of 5.727%. The remaining portion to be hedged under the Term Loan amounts to around 28 million. 12 / 45

13 Segment reporting Western Europe Western Europe (1) (Millions of euros) Q2 Q H1 H Revenues % % Operating EBITDA (2) % % in % of revenues 17.2% 13.0% 14.9% 10.2% Operating income (2) >100% >100% in % of revenues 8.3% 2.4% 5.7% -0.6% Non-operating result (2) >100% >100% EBIT >100% >100% Q2 Q H1 H Capital expenditure (3) % % Volumes sold tiles (in msqm) % % (1) incl. France, United Kingdom, Netherlands, Belgium (2) Non-IFRS-GAAP figure (3) Represents additions to intangible assets and property, plant and equipment The reporting segment Western Europe showed an extremely positive performance in the reporting period with revenues and Operating EBITDA strongly outgrowing last year s figures. These improvements have been delivered despite a further tightening of the French market, particularly in the second quarter of. In the first six months, revenues were mainly driven by higher volumes and increased price levels in the UK as well as by further growth in the components business. In Belgium we were able to outperform the market. The Netherlands has surprised with strong growth rates in the first half of the year. In addition, a favourable movement of the British Pound against the Euro positively affected revenues by around 1.9 million or 1.4 percentage points. In the second quarter the foreign exchange effect was 1.1 million or 1.6 percentage points. The high operational leverage on volume growth, improved price levels and higher component revenues substantially impacted the Operating EBITDA. Coupled with a significant reduction in variable costs, especially in France, Operating EBITDA improved by 8.4 million to 22.8 million (H1 2013: 14.4 million). Currency exchange rates only had a negligible impact on Operating EBITDA, accounting for not more than 0.1 million in the first quarter and in the first half of. All restructuring related costs were already digested in 2013 (H1 2013: 8.1 million) and did not occur again in. Therefore, reported EBIT rose even stronger from -9.0 million in the previous year to 8.6 million in. 13 / 45

14 Central, Northern & Eastern Europe Central, Northern & Eastern Europe (1) (Millions of euros) Q2 Q H1 H Revenues % % Operating EBITDA (2) % >100% in % of revenues 19.4% 14.2% 14.6% 7.5% Operating income (2) % >100% in % of revenues 15.2% 9.8% 9.2% 1.4% Non-operating result (2) >100% >100% EBIT % >100% Q2 Q H1 H Capital expenditure (3) % % Volumes sold tiles (in msqm) % % (1) incl. Germany, Norw ay, Sw eden, Denmark, Finland, Estonia, Latvia, Lithuania, Poland, Russia, Ukraine (2) Non-IFRS-GAAP figure (3) Represents additions to intangible assets and property, plant and equipment Central, Northern & Eastern Europe showed the strongest revenue growth of all roofing segments within the Group. In particular, Germany and Poland showed a very healthy performance. In both countries, as well as for example in Sweden, we outperformed the market. In most European countries, favourable weather conditions allowed a perfect start to the year, followed by some seasonal corrections in the second quarter. On a half-year basis, tile volumes increased by 10.6% with average selling prices being rather stable, albeit with some weakness shown in Germany in the second quarter. Coupled with strong components sales revenues increased by 9.8%, reaching million in H1. Negative currency effects in the Nordic & Baltic region as well as Russia negatively impacted reported revenues by 3.0 million. Excluding these effects, revenues grew by 11.7% on a like-for-like basis. In the second quarter, revenues decreased by 3.1%, whereas on a like-for-like basis excluding foreign exchange effects they decreased by 1.6%. The additional revenues of 17.7 million from January to June contributed to an increase of 15.4 million in Operating EBITDA which stood at 29.0 million at the end of June (H1 2013: 13.6 million). Pressure on pricing in Germany was more than overcompensated by positive volume development, a stronger contribution from components and cost reduction efforts, mainly in fixed costs of production. Movements in exchange rates only played a limited role in the evolution of the operating EBITDA. Adjusted for these, Operating EBITDA in the first half would have grown by 115.6%. Despite the slight revenue decrease, Operating EBITDA in the second quarter increased by 5.3 million or 32.3% (like-for-like 34.4%). Reported EBIT for the first half of at 18.2 million, an increase of 16.0 million compared with / 45

15 Southern Europe Southern Europe (1) (Millions of euros) Q2 Q H1 H Revenues % % Operating EBITDA (2) % % in % of revenues 21.9% 18.3% 14.7% 10.6% Operating income (2) % >100% in % of revenues 11.8% 8.9% 2.3% -1.6% Non-operating result (2) % % EBIT >100% >100% Q2 Q H1 H Capital expenditure (3) % >-100% Volumes sold tiles (in msqm) % % (1) incl. Italy, Austria, Czech Republic, Slovakia, Hungary, Turkey, Romania, Slovenia, Croatia, Bosnia-Herzegow ina, Bulgaria, Serbia, Albania (2) Non-IFRS-GAAP figure (3) Represents additions to intangible assets and property, plant and equipment The market environment in Southern Europe has been challenging, most of all in Italy. In contrast to current market surveys, Italy has experienced a further weakening in the residential sector, in particular in the second quarter. To date the visibility regarding a short term recovery is limited. The situation in Italy strongly impacted the revenue development in our Southern European segment. In some countries, like in Austria or Romania, we outperformed the market. Revenues declined in the first half by 4.4% to 79.7 million and by 12.3% to 49.1 million in the second quarter. While average pricing held up in all parts of the region, the volume of tiles sold as well as component revenues decreased significantly in Italy, an effect that the other countries were not able to compensate. Negative foreign exchange effects impacted reported revenues by 3.0 million. Excluding these effects, revenues decreased by 2.1% on a like-for-like basis in the first half and by 10.6% in the second quarter of. Despite the challenging environment in Italy, Braas Monier has been able, through continued focus on cost management, to not only keep Operating EBITDA stable, but to even improve it significantly in the first half of (by 31.7% to 11.7 million) and slightly in the second quarter (by 4.8% to 10.8 million). The increase in Operating EBITDA in the first half of is driven by pricing effects, savings in variable cost and in fixed costs which overcompensated the negative volume impacts. In the first six months, foreign exchange effects negatively impacted the Operating EBITDA by -0.3 million, with -0.2 million being the impact in the second quarter. The absence of restructuring expenses (H1 2013: 6.4 million) led to a significant increase in reported EBIT, from -7.7 million at the end of June 2013 to 1.8 million at the end of June. 15 / 45

16 Asia & Africa Asia & Africa (1) (Millions of euros) Q2 Q H1 H Revenues % % Operating EBITDA (2) % % in % of revenues 18.4% 17.9% 15.8% 13.7% Operating income (2) % % in % of revenues 12.0% 16.0% 8.4% 9.7% Non-operating result (2) >100% >100% EBIT % % Q2 Q H1 H Capital expenditure (3) % % Volumes sold tiles (in msqm) % % (1) incl. Malaysia, China, Indonesia, India, Thailand and South Africa (2) Non-IFRS-GAAP figure (3) Represents additions to intangible assets and property, plant and equipment Outside Europe, markets developed positively in the first half of. In particular India and South Africa showed strong growth. The markets in China and Malaysia were flat. In euro terms, revenues declined by 5.1% from 65.6 million in the first half of 2013 to 62.2 million in the first half of. This decrease is exclusively related to negative foreign exchange effects. In local currency, revenues were up by 7.0% in the first six months. From January to June, volumes increased by 3.0% (in Q2 : 1.4%). Average selling prices and components sales were also up in the first half of. In the second quarter, revenues declined from 37.3 million to 35.2 million (-5.5%). Excluding negative foreign exchange effects, revenues increased by 5.3 percent. Operating EBITDA grew from 9.0 million in H to 9.8 million in H1, an increase of 8.9 %. On a like-for-like basis, earnings would have grown with a rate almost twice as high (by 19.1%). In Q2, Operating EBITDA slightly declined by 2.7% from 6.7 million to 6.5 million. Without the foreign exchange effects, Operating EBITDA would have increased by 6.8%. Operating EBITDA in the first six months grew on the basis of higher volumes, favourable average selling prices and a strengthened components business. Higher variable costs inhibited an even stronger increase in Operating EBITDA. In 2013, we streamlined our portfolio by divesting our interests in certain non-core Asian subsidiaries. Therefore, results from associates (H1 2013: 1.2 million; Q2 2013: 0.9 million) did not occur again in. The same is true for restructuring expenses that amounted to minus 1.9 million in the first half of 2013 and 1.5 million in the second quarter of Together with slightly higher depreciations and amortisation in, these effects balanced out each other. EBIT increased by 0.7 million in the first half of (from 4.5 million to 5.2 million). 16 / 45

17 Chimneys & Energy Systems Chimneys & Energy Systems (Millions of euros) Q2 Q H1 H Revenues % % Operating EBITDA (1) % % in % of revenues 17.6% 19.1% 9.8% 6.7% Operating income (1) % >100% in % of revenues 11.8% 12.7% 3.5% -0.3% Non-operating result (1) >100% >100% EBIT % >100% Q2 Q H1 H Capital expenditure (2) % % Chimneys sold (in tkm) % % (1) Non-IFRS-GAAP figure (2) Represents additions to intangible assets and property, plant and equipment The market development in the Chimneys & Energy Systems business was not very favourable in the first half of. Italy saw strong declines due to a weak macro-economical environment. The Balkan states suffered from wide-spread flooding in the second quarter. Other core markets, like the UK, Germany or Poland, held up well, but were only able to slightly overcompensate the decline in Southern and South- Eastern Europe. In the UK and Poland, we also outperformed the market. Volumes grew slightly in the first six months of by 2.4%. Revenues in the first half of reached 79.8 million, a marginal increase of 0.2% over last year s figures (H1 2013: 79.6 million). Negative foreign exchange effects amounted to -0.8 million. Like-for-like, revenues would have grown by 1.2% in the first half. Due to strong cost discipline, particularly in SG&A costs, the Operating EBITDA improved by 46.6% to 7.9 million in the first half of (H1 2013: 5.4 million). Foreign exchange effects amounted to less than 0.1 million in the reporting period and only impacted Operating EBITDA growth by 1.8 percentage points. In the second quarter of, revenues decreased by 8.2% to 44.8 million. Excluding negative foreign exchange effects of 0.4 million, revenues would have declined by 7.5%. Operating EBITDA of the second quarter reached 7.9 million (Q2 2013: 9.3 million). Foreign exchange effects had no material impact, amounting to only -13 T. No further restructuring expenses occurred in (H1 2013: 0.8 million, Q2 2013: 1.0 million). The cancellation of an exceptional amortisation booked in 2013 led to a non-operating income in the first half of of 0.6 million (Q2 : 0.6 million). Therefore, EBIT improved from January to June by 4.4 million to 3.3 million (H1 2013: -1.1 million). 17 / 45

18 Central Products & Services Central Products & Services (Millions of euros) Q2 Q H1 H Revenues % % Operating EBITDA (1) % % in % of revenues -0.1% -8.7% -0.2% -9.0% Operating income (1) % % in % of revenues -5.4% -13.6% -5.5% -14.3% Non-operating result (1) >100% >100% EBIT % % Q2 Q H1 H Capital expenditure (2) % % Volumes sold tiles (in msqm) n/a n/a - n/a n/a - (1) Non-IFRS-GAAP figure (2) Represents additions to intangible assets and property, plant and equipment Revenues in Central Products & Services, which mainly result from components centrally produced and sold to other segments, rose by 12.4% from 48.2 million in the first half of 2013 to 54.1 million in the first half of. In the first six months of as well in the previous year s period, the components business achieved an Operating EBITDA margin above Group levels. However, this positive contribution to Group Operating EBITDA was consumed by holding costs that are also accounted for in this segment. The resulting negative Operating EBITDA of -0.1 million showed a significant improvement over the Operating EBITDA of the first six months of 2013 ( -4.3 million). This sizeable improvement is mainly attributable to cost savings initiated last year as part of the comprehensive repositioning program Step Foreign exchange effects on revenues and Operating EBITDA were negligible in the first half of as well as in the second quarter. The absence of restructuring expenses (H1 2013: 8.6 million) led to a significant increase in reported EBIT, from million at the end of June 2013 to -3.0 million at the end of June. 18 / 45

19 Risk and opportunity report With the Braas Monier Building Group conducting its business throughout the world, it is exposed to numerous potential risks. The goal of corporate management is to minimise risks and take advantage of opportunities in order to systematically and continuously improve shareholder value and achieve targets. The Group constantly and systematically identifies external and internal risks in all business areas and subsidiaries and evaluates them consistently throughout the Group with respect to their potential level of damage and the likelihood of the events occurring. Appropriate provisions are recognized in the balance sheet. Opportunity and risk management at Braas Monier Building Group is closely linked by Group-wide planning and monitoring systems. During the budget periods, in the context of continuous business reviews and the annual closing and pre-closing process, risks and opportunities are identified by the local management boards. A documented process is in place to report and evaluate ad hoc risks as they may occur in the course of the year. A detailed risk and opportunity report, describing the most relevant aspects for Braas Monier Building Group is available in the IPO Prospectus ( Risk Factors, page 1 ff). In the first six months of no events have to be reported that could threaten the existence of the Group. The current political crisis in the Ukraine has only a limited effect on our business as the exposure both to the Ukraine and Russia are limited. However, a continuation of this political crisis could pose a risk to an economic recovery in Europe. The risks arising from volatile energy prices as well as from adverse exchange rate developments remain high. The Group attempts to mitigate the risk of fluctuating energy prices by entering into supply agreements for significant portions of the expected energy requirements with periods typically ranging between 12 and 36 months. Through the successful refinancing of the Group in April the financing of the Group is secured until 2020 and improved financing terms had been achieved. In addition, the capital increase at the IPO created further financial flexibility and brings Braas Monier into the position to reach its target leverage much faster. 19 / 45

20 Outlook for and beyond Although to date the market performances in Europe has been very uneven, market research consensus foresees growth to happen in the European residential building sector already in, with a further acceleration in the following years. For the second half of the year, we anticipate strong growth to continue in the UK and Poland. The German market is still foreseen to grow in with a low single-digit percentage figure. The French market is expected to decline in the second half of the year and in the light of limited visibility, we have assumed that Italy will also stay difficult. For Malaysia and China, we assume a flat development, while India and Indonesia should experience higher growth rates after major political elections have meanwhile taken place. For South Africa, the current growth path is expected to continue. The components business is expected to further profit from its strong position in the market and from the rising demand for energy efficient building envelopes. The revenue outlook for Chimneys and Energy Systems is positive for the second half of. For the full year, we are assuming a slight revenue growth for the Group close to the growth rate reached in the first six months, driven by volume and price increases. We will continue focusing at implementing further TLG initiatives attempting to outperform general market developments. From a cost perspective management expects moderate increases in input costs (raw materials and wage inflation). The fixed cost structure will be positively impacted by the roll-over effects from headcount reductions that took place in 2013 under the framework of the restructuring program (Step 200+). The majority of this effect has already taken place in the first half of. Management does not expect operational restructuring costs in, however, some provisions made in 2013 will be paid in cash in. Non-recurring financial expenses in will consist primarily of refinancing cost and transaction costs for the Initial Public Offering. Based on the described revenue growth assumptions as well as in the light of efficiency gains and improved cost structure including roll-over-effects from Step 200+, management is confident that the Group will further improve its profitability in the second half of, leading to a substantial increase in Operating EBITDA in. Looking beyond, in principle we are very positive in regards to the residential market development in continental Europe, Asia and South Africa. However, political issues, such as the crisis in the Ukraine or Russian sanctions might negatively influence future developments. The same is true for European or national governmental policies, such as the current political debate in Germany on limiting rental price 20 / 45

21 increases. On a positive note, governmental policies, such as the help to buy loan scheme in the UK clearly had a positive impact on the market and similar programs are also being contemplated in France. 21 / 45

22 Interim consolidated financial statements Consolidated income statement Consolidated income statement for the first six months (Thousands of euros) Revenues 315, , , ,315 Cost of sales -217, , , ,812 Gross profit 98,157 91, , ,503 Selling expenses -38,013-40,649-77,315-82,506 Administrative expenses -23,579-25,094-48,582-50,682 Other operating income 1,290 1,844 1,798 6,151 Other operating expenses ,363-1,012-6,268 Restructuring expenses 0-16, ,512 Reversal of impairments Result from associates 179 1, ,767 Earnings before interest and taxes (EBIT) 37,995 10,276 34,272-26,547 Finance income 14,741 5,207 16,176 12,237 Finance costs -22,721-14,954-42,679-28,084 Earnings before taxes (EBT) 30, ,769-42,394 Income taxes -9, ,555 5,176 Profit (loss) for the period 20, ,214-37,218 Thereof attributable to: Equity holders of the parent company 20, ,383-36,613 Non-controlling interests Earnings per share attributable to the parent company in / 45

23 Consolidated statement of comprehensive income for the first six months (Thousands of euros) Profit (loss) for the period 20, ,214-37,218 Other comprehensive income Items that will never be reclassified to profit or loss Actuarial gains and losses on pension plans -25, ,266-2,284 Income tax effect 7, ,093 0 Items that are or may be reclassified to profit or loss Foreign exchange differences 1,197-7, ,538 Foreign exchange differences from at-equity accounted investments -32-1, Other comprehensive income for the period, net of tax -17,008-8,483-17,621-17,771 Total comprehensive income for the period, net of tax 3,809-8,019-12,407-54,989 Thereof attributable to: Equity holders of the parent company 3,756-8,067-12,142-54,252 Non-controlling interests / 45

24 Consolidated cash flow statement for the first six months (Thousands of euros) EBIT Adjustments for: Amortization, depreciation (Reversal of) Impairment losses on non-current assets, net (Gains) / losses on the disposal of non-current assets Result from associates Dividends received Interest and finance fees paid Interest received Net income tax paid Change in provisions Change in working capital Change in inventories Change in trade and other receivables Change in trade and other payables Net cash from operating activities Investments in intangible assets and property, plant and equipment Acquisition of other financial assets Proceeds from the disposal of property, plant and equipment and intangible assets Proceeds from the disposal of subsidiaries and other financial assets Net cash from / (used in) investing activities Net cash from / (used in) operating and investing activities Decrease in loans Increase in loans Proceeds from capital increases Dividends paid to parent company Net cash from / (used in) financing activities Change in cash and cash equivalents Cash and cash equivalents at the beginning of the period Effect of exchange rate fluctuations on cash and cash equivalents Cash and cash equivalents at the end of the period / 45

25 Consolidated statement of financial position as of June 30, (Thousands of euros) Jun. 30, Dec. 31, 2013 Non-current assets Goodwill 43,117 43,788 Other intangible assets 238, ,916 Property, plant and equipment 602, ,001 Investments accounted for using the equity method 7,993 7,706 Other financial assets 2,852 3,125 Other non-current assets 3,152 3,140 Deferred tax assets 13,653 13,289 Total non-current assets 912, ,965 Current assets Inventories 237, ,481 Trade accounts receivables 146, ,323 Other current assets 31,829 39,715 Cash and cash equivalents 170, ,481 Assets held for sale 4,224 4,832 Total current assets 590, ,832 Total assets 1,502,759 1,491,797 Equity Subscribed capital Additional paid-in capital 404, ,015 Retained earnings -279, ,391 Foreign currency translation reserve -21,463-22,111 Total equity attributable to the shareholders of the parent 104,746 13,526 Non-controlling interests 2,409 2,674 Total equity 107,155 16,200 Non-current liabilities Provisions for pension liabilities and similar obligations 343, ,918 Deferred tax liabilities 7,532 19,567 Long term portion of provisions for other risks 106, ,949 Long term liabilities to parent companies 0 0 Long term liabilities to banks 549, ,433 Long term tax liabilities 20,644 18,873 Other long term liabilities 1,040 14,577 Total non-current liabilities 1,027,623 1,135,317 Current liabilities Trade accounts payable 100,761 96,855 Short term tax liabilities 23,695 14,824 Short term portion of provisions for other risks 48,891 63,657 Short term liabilities to parent companies 0 8,197 Short term loans and liabilities to banks 56,955 12,482 Other short term liabilities 137, ,265 Total current liabilities 367, ,280 Total equity and liabilities 1,502,759 1,491, / 45

26 Consolidated statement of changes in equity for the first six months (Thousands of euros) Subscribed capital Attributable to equity holders of the parent Foreign Additional paid-in capital Retained earnings currency translation reserve Total Noncontrolling interests Total equity Balance as of Jan. 1, , ,391-22,111 13,526 2,674 16,200 Actuarial gains and losses , , ,173 Foreign exchange effects Other comprehensive income , , ,621 Consolidated loss for the period 0 0 5, , ,214 Total comprehensive income , , ,407 Capital increase , , ,987 Dividends paid 0-2, , ,625 Balance as of June. 30, , ,181-21, ,746 2, , / 45

27 Western Europe (1) (Thousands of euros) Jan. 1, - Jun. 30, Jun. 1, Jun. 30, 2013 Jan. 1, Dec. 31, 2013 External revenues 150, , ,847 Inter-segments revenues 2,451 2,410 4,926 Revenues 152, , ,773 year-to-year change 8.0% % Operating EBITDA (2) 22,774 14,416 27,830 in % of revenues 14.9% 10.2% 9.6% Depreciation & amortization 14,301 15,412 25,658 Result from associates Operating income (2) 8, ,101 in % of revenues 5.7% -0.6% 0.7% Non-operating result (2) 4-8,074-1,895 EBIT 8,638-8, Capital expenditure (3) -2,983-1,600-7,569 Capital employed (2) / (4) 214, , ,555 Return on capital employed (2) / (5) % Volumes sold tiles in msqm (2) / (7) Average employees (2) / (6) / (7) 1,287 1,413 1,376 Employees as of period ended (2) / (7) 1,283 1,399 1,305 (1) Incl. France, United Kingdom, Netherlands, Belgium (2) Non-IFRS-GAAP figure (3) Represents additions to intangible assets and property, plant and equipment Jun. 30, Jun. 30, 2013 (4) Defined as tangible assets plus inventories plus trade and other receivables minus total payables (5) Operating income divided through average of opening and closing capital employed for the period (6) Average of employees determined on a monthly basis (also considering the beginning of the period) (7) Unaudited supplementary information Dec. 31, / 45