MEDIA RELEASE

Schwerzenbach, February 24, 2015

WALTER MEIER REPORTS ENCOURAGING RESULT FOR 2014

THANKS TO A DYNAMIC SECOND HALF OF THE YEAR

n Fall in net sales at midway point offset for the year as a whole, mainly due to strong sales in the Machining Solutions segment

n EBIT margin amounted to 8.0 percent

(prior year: 8.7 percent)

n Group profit per share: CHF 2.73

n Proposed distribution remains stable at CHF 2.50 per share

n Outlook uncertain because of the euro exchange rate

The two continued segments, Climate and Machining Solutions, generated net sales of CHF 313.1 million in 2014 as whole. This corresponds almost exactly to the comparable prior-year figure. While the Climate segment reported a result of minus
2.4 percent, the weak half-yearly figure in the Machining Solutions segment
was more than offset by a strong second half of the year. The Machining Solutions segment achieved sales growth of 10.4 percent for the year as a whole.
In the continued segments, Walter Meier reported EBITDA of CHF 27.5 million, following CHF 29.8 million in the comparable prior-year period. EBIT came to CHF 25.0 million compared to CHF 27.2 million in 2013. This resulted in an EBIT margin of 8.0 percent (prior year: 8.7 percent).
The Climate segment reported a decrease in EBIT of CHF 1.7 million compared to the previous year; by contrast, the Machining Solutions segment exceeded the prior-
year figure by CHF 0.7 million. While the Climate segment faced increasingly difficult market conditions from mid-2014 onward, the Machining Solutions segment benefited in the second half of the year from a number of major orders processed for the watchmaking and medical technology industries.
As a result, the continued segments reported group profit of CHF 19.9 million, corresponding to a profit of CHF 2.73 per participating share as of year-end 2014.
Due to consolidation, the cash flow statement is no longer comparable with the prior year. Taking into account the effects of the spin-off, free cash flow amounted to
CHF -18.3 million.
Financial liabilities came to CHF 17.3 million and net debt to CHF 6.5 million as of year- end 2014. Despite the seasonally high cash flows, these figures were reduced only slightly in the second half of the year as a result of the investments in the new central warehouse for the climate business and the acquisition of Friap Feuron. Equity amounted to CHF 40.9 million as of year-end 2014, giving an equity ratio of 30.2 percent.
The number of employees increased compared to year-end 2013 from 844 to 907 (full-time equivalents) mainly due to acquisitions.

2 WALTER MEIER - MEDIA RELEASE

January 1 to December 31



in thousand CHF 2014 1) 2013 2) Variation in %

Sales

Climate segment

Machining Solutions segment


EBITDA EBIT

Climate segment

Machining Solutions segment

Group adjustments

as a % of net sales

Climate segment

Machining Solutions segment

Group profit

per registered share 3) in CHF

Free cash flow 313 710 -0.2


260 056 -2.4


53 654 10.4


29 778 -7.5


27 226 -8.2


21 118 -7.8


3 744 19.6


2 364

8.7%

8.1%

7.0%

16 822

1.73


196 108



in thousand CHF 12/31/2014 06/30/2014



Financial liabilities Liquidity, net Equity

as a % of total assets

Number of employees (FTEs)

18 029

-10 386

26 954

23.4


851

1) Only continued business segments

2) Only continued business segments and adjusted for the disposal of Walter Meier (Klima Deutschland) GmbH

(effects on sales CHF -16 341, EBITDA CHF -824, EBIT CHF -485, Group profit CHF -9 734 and free cash flow CHF -13 164)

3) Profit per participating registered share

4) To improve comparability, balance sheet ratios as of June 30, 2014 were selected

Climate segment

The Climate segment reported a decrease in net sales of 2.4 percent compared to the figure for the comparable prior-year period. This was chiefly due to the postpone- ment of various large-scale projects for air-conditioning systems and a generally more challenging market in the Swiss construction industry. In particular, implementa- tion of the second-home initiative ("Zweitwohnungsinitiative") had a marked effect in the mountain regions and in Ticino. The integration of Friap Feuron, which was acquired in August 2014, and the construction of the new service and logistics center in Egolzwil are progressing according to plan. However, they will continue to require considerable resources.

Machining Solutions segment

Following a 15.5 percent year-on-year drop in net sales at the end of the first half of the year, the Machining Solutions segment executed various large-scale projects for the watchmaking and medical technology industries. Its net sales of CHF 59.2 million represent growth of 10.4 percent compared to 2013 as a whole.

WALTER MEIER - MEDIA RELEASE 3

Personnel

In addition to his function as a delegate of the Board of Directors, Jochen Nutz has been responsible for managing the Machining Solutions segment since October 15, 2014.

Annual shareholders' meeting

The Board of Directors of Walter Meier will propose a distribution in the form of a dividend of CHF 2.50 per share to the annual shareholders' meeting on March 25, 2015. This systematically continues the stable distribution policy pursued since 2010.
All current members of the Board of Directors and the incumbent Chairman are standing for reelection.

Outlook

Until the SNB unexpectedly cancelled the minimum euro exchange rate, Walter Meier had anticipated continued encouraging business development in 2015. Now the outlook is highly uncertain, and appreciable effects on earnings must be expected.
If the Swiss franc remains significantly lower against the euro than the prior year's level of CHF 1.20, there will be sales losses in 2015 as a consequence of additional discounts to customers due to the exchange rate. A one-time reduction in earnings is expected for the financial year 2015 as a result of the inventory cycle and because the majority of the procurement volume planned in the eurozone for 2015 was set at a euro exchange rate of CHF 1.20. Total procurement volume of
EUR 54 million is set for the period from February 15 to December 31, 2015 at an exchange rate of CHF 1.20 per euro. There are no hedging transactions for the subsequent years.
In addition, it must be assumed that the export-oriented customers in the metal- processing industry will reduce their investments, which could push down demand in the Machining Solutions segment.
All of these developments notwithstanding, Walter Meier sees no evidence at present of any threat to the stable distribution policy.

Further information

Walter Meier, Corporate Communications

Phone +41 44 806 49 00 / group@waltermeier.com

Key dates February 24, 2015, Media and financial analysts' conference on the 2014 annual financial statements March 25, 2015, Annual Shareholders' Meeting August 20, 2015, Half-year Report December 31, 2015, End of the 2015 Financial Year

Walter Meier is a wholesale and service group involved in the areas of climate and manufacturing technology. The company was founded in 1937 and today generates sales of over CHF 300 million with approx. 900 employees. Shares in Walter Meier are listed on the SIX Swiss Exchange (symbol WMN).

This media release and the Annual Report 2014 are available at

www.waltermeier.com/investors.

Walter Meier Ltd.

Bahnstrasse 24, 8603 Schwerzenbach, Switzerland Phone +41 44 806 41 41, Fax +41 44 806 49 49 group@waltermeier.com, www.waltermeier.com

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