Walter Meier : Market environment remains challenging for Walter Meier - New central logistics facility opened on schedule

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WALTER MEIER J MEDIA RELEASE 2/3

Ja nua ry to June 30

in thousand CHF 2016 2015 '' Variation in %

Sales no SIS IB- 522 -2.6

EBITDA S 242 S 557 -5.7

EBIT 3 435 3 821 -IO.I

as a % of n et sales 3.1 3.4

Grou p profit 2 761 2 247

per registerect share in CHF 0 38 0 31

Free cash flow -19 747 -4 3.99

in thousand CHF 06/30/2016 12/31/2015

Financial liabilities: Liquidity, net Equity

as a % of tota I assets

45 000

-41481

20 346

15.7

!1004

-6 673

32174

29.4

Number of employees (FTEs-) 11 784 774

1

' Prior year figures only reported for continuingoperat ions.

Outlook

The slight recovery that Walter Meier anticipated in February has failed to materialize in the heating market so far. Althoughthe pressure on prices has eased slightly compared ta the prior year , it has remained persistently high.Thefall in demandfor heat generators. actually accelerated inthe first half of 2016,with no clear indications ofan upturn as yet.

By contrast,the project bus=iness. with its air conditioning solutions for functional buildings is enjoying high demand, which translated into a very solid backlog of orders as of theend of June.With many of these set to generate sales before the year is out. the decline in sales is expected to slow inthe second six months of 2016.

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