Slide 1: Analysts' Conference FY 2022 Figures
Analysts’ Conference FY 2022 Figures March 28, 2023
Slide 2: Strategic Overview
Strategic Overview Dr. Stefan Wolf CEO
Slide 3: Automotive remains a growing market
Markets Automotive remains a growing market Global light vehicle production – in million units CAGR +1% +3.3% +3.8% +6.7% 96.4 97.1 92.0 93.2 95.1 89.0 88.3 91.0 82.4 85.1 74.6 77.2 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: S&P Global Mobility (02/2023) Analysts‘ Conference
Slide 4: Transformation of mobility sector is picking up speed
Markets Transformation of mobility sector is picking up speed Global light vehicle production by powertrain – in million units CAGR 70.7 +23% Battery/Fuel cell Hybrid +35.0% 47.0 44.1 29.4 21.4 21.8 12.0 14.9 8.8 7.4 10.0 5.0 25.7 26.6 2.0 2.4 13.0 17.4 5.5 7.5 9.9 2020 2023 2025 2030 Differences du
Slide 5: Corporate transformation results in growth path
Group strategy Corporate transformation results in growth path Classic market Classic business units (BUs) EK success factors Managing the demand Capitalizing in the classical business strong market position ① Product Transformation ② Corporate Culture & Developing new products Organization within c
Slide 6: Managing the demand in the classical business
Success factor: Product transformation Managing the demand in the classical business Global light vehicle production by powertrain – in million units • Utilizing strong market position • Proactive management of capacities CAGR 87.0 -4% • Consolidation possible when needed 5.5 72.2 72.2 73.5 73.1 69.
Slide 7: Developing new products within classic business areas
Success factor: Product transformation Developing new products within classic business areas Decomposition of electric drive unit (EDU) with selective ElringKlinger components Exemplary battery electric vehicle platform Elastomer gasket Metal elastomer gasket Plastic modules Analysts‘ Conference | M
Slide 8: New technologies added to product portfolio
Success factor: Product transformation New technologies added to product portfolio Business unit E-Mobility Fuel Cell Technology Battery Technology Drivetrain Technology • Start of developing activities more • Serial supplier of components for • Combining power of two strong than 20 years ago more t
Slide 9: Continuing to develop innovations in new technologies
Success factor: Product transformation Continuing to develop innovations in new technologies • IPCEI funding* for innovative battery cell house design • Total funding volume of EUR 33.8m by end of 2026 • Some key technological facts: • Innovative sealing and simpler geometries of single parts State
Slide 10: Broad product portfolio for future technologies
Success factor: Sustainability Broad product portfolio for future technologies ICE Parts Lightweighting (e.g. Gaskets & Shields) Components Fuel Cell Technology Battery Technology Drivetrain Technology Higher temperature and/or Less weight Higher range Alternative technology Alternative technology A
Slide 11: Production set up to be CO2-neutral by 2030
Success factor: Sustainability Production set up to be CO2-neutral by 2030 Scope-1 and Scope-2 emissions – in metric tons Reduction of CO2 and energy efficiency -33.2% -2.5 % CO2 emissions p.a. at every production site (base: 2019) 110.8 110.3 • Increase energy efficiency of buildings and machines •
Slide 12: On track to a digital-driven enterprise for managing the growth
Success factor: Digital transformation On track to a digital-driven enterprise for managing the growth D I G I TA L P L AT F O R M D I G I TA L LY D I G I TA L BUSINESS O P E R AT I N G EMPOWERED INTELLIGENT P L AT F O R M S MODEL PEOPLE ENTERPRISE • New process and system architecture aligned with
Slide 13: Broad product spectrum in systems and components business
Group strategy Broad product spectrum in systems and components business • Developed over the past decades Stacks and systems • Mass market production in fuel cell business, niche markets for battery systems and electric drive units • Mainly in ramp-up phase • Recognized in sales of E-Mobility busin
Slide 14: Transformation starting to materialize: high-end car segment
Transformation starting to materialize In serial production for high-end car market segment • Development and supply of drive units and sub-systems • Order for European all-electric high-end sports car model received Systems • New plant in UK for production • Production started in 2021 • Recognized
Slide 15: Major order for global battery manufacturer ramping up
Transformation starting to materialize Major order for global battery manufacturer ramping up • Contract for prototypes of battery systems received in 2021, including development, supply and testing • Initial volume in single-digit million-euro range Systems • Designated for all-electric sports car
Slide 16: Large-scale order for EKPO by global OEM for bipolar plates
Transformation starting to materialize Large-scale order for EKPO by global OEM for bipolar plates • Broad area of fuel cell applications reflected in order situation • Contracts received for commercial aviation sector, for maritime applications like boats and ships, for intralogistics vehicles, and
Slide 17: Numerous orders in established business units
Transformation starting to materialize Numerous orders in established business units, e.g. Lightweighting Cross-car beam • Global OEM • Volume: mid double-digit million-euro area p.a. • Production from 2023 onwards Structural plastic component • Global OEM • Volume: low double-digit million-euro are
Slide 18: At the starting point of growth period
At the starting point of growth period Substantial growth by products for new drive technologies Stacks and systems Strong sales growth for the Group expected by both systems and components Components Analysts‘ Conference | March 28, 2023 18
Slide 19: Ambition to achieve more than EUR 3 bn in sales by 2030
At the starting point of growth period Ambition to achieve more than EUR 3 bn in sales by 2030 Actual FY 2022 Ambition EK 2030 1.8 >3 EUR bn EUR bn There is strong growth in strategic future areas: fuel cell, battery, drivetrain, and structural lightweighting as well. By ramping up business, they
Slide 20: Product transformation prevails
At the starting point of growth period Product transformation prevails Current sales split Group transformation pathway FY 2022 100% Non-ICE Non-ICE 20% ICE 80% 0% ICE 2020 2025e 2030e New orders Sales projection 2021 – Feb 2023 Structural Lightweighting incl. bipolar plate order (by annual turnover
Slide 21: Financials
Financials Thomas Jessulat CFO
Slide 22: Solid order situation and sales on record level
FY 2022: Orders and sales Solid order situation and sales on record level Order intake – in EUR million Order backlog – in EUR million Sales – in EUR million -5% +5% +10.7% 1,978 1,462 Organic: +7.4% 1,798 1,874 1,386 1,737 1,483 120 1,030 1,033 0 54 1,624 2019 2020 2021 2022 2019 2020 2021 2022 202
Slide 23: Revenue expansion across all major segments
FY 2022: Sales Revenue expansion across all major segments Sales by segment/business unit – in EUR million Share of sales – in % Other OE 4 Metal Sealing (<1%) Lightweighting/ Systems Metal Forming Elastomer & Drivetrain & Assembly Others Technology Components Technology E-Mobility 4 (<1%) 500 448 2
Slide 24: Sales growth above market level in all regions
FY 2022: Sales Sales growth above market level in all regions Growth rate light vehicle production vs. Group sales – in % Share of sales – in % of total sales 5.9% 6.8% 17.6% 9.7% Market EK 8.9% 8.3% Europe (excl. Russia) Market EK North America South America and Rest of World 5% Germany 26.9% Marke
Slide 25: Broadly diversified customer base
FY 2022: Sales Broadly diversified customer base Sales by customer – in EUR million Share of sales – in % of total sales American OEMs 8% 19% (17%) Other 29% (31%) 6% 5% EUR 9% German OEMs 1,798m 19% (19%) 6% 4% Aftermarket 1% 4% 14% (13%) European OEMs Tier 1 5% (6%) 13% (15%) Differences due to ro
Slide 26: Cost inflation affecting operating EBIT
FY 2022: Earnings Cost inflation affecting operating EBIT EBITDA – in EUR million EBIT bridge – in EUR million EBITDA margin – in % -19% 102 -11 216 +21 -11 -11 -17 181 182 174 -11 61 13.3 -1 12.3 10.5 9.7 -86 -17 -42 2019 2020 2021 2022 EBIT Divestment Sales Raw HR- AdditionalRamp-up Others Operati
Slide 27: Adjusted EBIT for comparing operating profitability
New KPI Adjusted EBIT for comparing operating profitability EBIT (reported) + Amortization of intangible assets from purchase price allocation (PPA) +/- Changes in scope of consolidation + Impairment on goodwill + Impairment on assets - Write-ups +/- Gains/losses from disposal of entities +/- Restru
Slide 28: Stable dividend payment proposed for reasons of continuity
FY 2022: Earnings Stable dividend payment proposed for reasons of continuity EBT – in EUR million Earnings per share – in EUR Dividend payment per share – in EUR ->100% +0% 101 ->100% 0.15 0.15* 0.88 42 0.06 -14 -0.64 -56 -1.41 0.00 0.00 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 *P
Slide 29: NWC ratio almost on prior-year level, op. free cash flow positive
FY 2022: Cash flow NWC ratio almost on prior-year level, op. free cash flow positive Capex – in EUR million Net Working Capital (NWC) – in EUR million Operating Free Cash Flow – in EUR million Capex ratio – in % of total sales NWC ratio – in % of total sales 92 +13% 176 -1% 455 424 70 69 403 402 165
Slide 30: Net financial debt at the lower end of expectations
FY 2022: Balance sheet Net financial debt at the lower end of expectations Net Financial Debt – in EUR million Net Financial Debt/EBITDA 700 682 595 603 580 512 459 -1% 400 390 411 369 387 363 361 364 3.3 2.5 3.0 2.1 2.0 1.7 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 Analysts‘
Slide 31: No major refinancing in 2023, equity ratio remains robust
FY 2022: Balance sheet No major refinancing in 2023, equity ratio remains robust Loans and credit lines by year of maturity – in EUR million Equity – in EUR million Equity ratio – in % of total assets 465 -9% 15 982 891 897 813 47.0 50% 450 41.5 41.4 43.8 40% 99 47 49 0 0 0 25 22 2022 2023 2024 2025
Slide 32: Aftermarket and Engineered Plastics deliver strong results
Segments Aftermarket and Engineered Plastics deliver strong results Sales – in EUR million EBIT margin – in % of segmental sales Original Equipment (OE) Aftermarket +16.9% +10.2% 215 251 1,423 1,186 1,280 1,411 173 182 0.4 2.9 -7.9 17.6 21.4 19.6 20.0 -2.0 2019 2020 2021 2022 2019 2020 2021 2022 Eng
Slide 33: What's on the financial agenda of FY 2023 and beyond
Looking ahead What’s on the financial agenda of FY 2023 and beyond Focusing on working capital Managing top-line growth Ensuring cost discipline Pushing digitization management • Preparing for top-line • Continuing strict cost • Preparing for strong • Supply chain bottlenecks growth particularly in
Slide 34: Markets and Outlook
Markets and Outlook Dr. Stefan Wolf CEO
Slide 35: Economic environment remains challenging
Outlook: FY 2023 Economic environment remains challenging • Modest growth of global GDP expected for 2023 − Inflation slowing down corporate and private spending − Central banks continue to increase interest rates • Geopolitical uncertainties − War in Ukraine with unpredictable outcome − Tensions in
Slide 36: Global growth, but not really recovering after Covid drop
Outlook: Markets Global growth, but not really recovering after Covid drop Light vehicle production by region – in million units +5.2% 19.5 15.3 16.1 +0.9% +5.4% 2019 … 2022 2023 EUROPE (excl. Russia) 24.7 26.4 26.6 16.3 14.3 15.1 Prevailing Accelera- uncertainty ting electri- 2019 … 2022 2023 ficat
Slide 37: Outlook: FY 2023 and mid-term
Outlook: FY 2023 and mid-term Assessment of key figures 2023 Organic growth substantially above Mid-term Actual 2022 Organic growth Sales market level Organic growth above market level of 7.4 % EBIT margin (adjusted) Approx. 5 % of Group revenue Sustained improvement 3.8 % Operating FCF Slight year-
Slide 38: The ElringKlinger Difference
The ElringKlinger Difference 1 With our strong technological orientation, we provide solutions for mobility demand. We will grow profitably by systems as well as components business. 4 2 We will utilize our strong market position in ICE business, but focus on new technologies. We will further shape
Slide 39: Financial calendar
FY 2023 Financial calendar Preliminary figures FY 2022 Annual General Meeting February 21, 2023 May 16, 2023 Q3 Full figures FY 2022 March 28, 2023 Q2 Q1 AGM Q3 2023 November 7, 2023 FY Prelim. 2022 FY 2022 Q1 2023 Q2 2023 May 9, 2023 August 3, 2023 Analysts‘ Conference | March 28, 2023 39
Slide 40: Appendix
Appendix
Slide 41: Structural overview
ElringKlinger Structural overview Original Equipment Aftermarket 78% Sales: EUR 1,411 million 14% Sales: EUR 251 million Employees: 7,959 of Group sales Employees: 276 of Group sales Lightweighting/ Metal Sealing Systems & Metal Forming & Elastomer Technology Drivetrain Components Assembly Technolog
Slide 42: Consolidated income statement
Group – FY 2022 Consolidated income statement 2022 2021 Sales revenue 1,798 1,624 Cost of sales -1,460 -1,273 Gross profit 338 351 Gross margin in % 18.8 21.6 Selling expenses -140 -121 General and administrative expenses -90 -84 Research and development costs -70 -65 Other operating income 18 33 Ot
Slide 43: Consolidated statement of financial position
Group – FY 2022 Consolidated statement of financial position As of Dec As of Dec As of Dec As of Dec Assets Liabilities and equity 31, 2022 31, 2021 31, 2022 31, 2021 Intangible assets 147 216 Share capital 63 63 Property, plant, and equipment 906 939 Capital reserves 118 118 Financial assets 14 16
Slide 44: Consolidated statement of cash flows
Group – FY 2022 Consolidated statement of cash flows 2022 2021 2022 2021 Earnings before taxes (EBT) -56 101 Proceeds from disposals of PPE, intangible assets and investment property 5 4 Depreciation/amortization (less write-ups) of non-current assets 217 114 Proceeds from disposals of financial ass
Slide 45: Key figures
Group – Last 5 years Key figures 2022 2021 2020 2019 2018 Order intake 1,874 1,978 1,483 1,737 1,735 Order backlog 1,462 1,386 1,033 1,030 1,020 Sales 1,798 1,624 1,480 1,727 1,699 EBITDA 174 216 182 181 197 EBIT (reported) -42 102 28 61 96 EBIT margin in% -2.3 6.3 1.9 3.5 5.7 EBT -56 101 -14 42 81
Slide 46: Segmental figures
Group – Last 5 years Segmental figures 2022 2021 2020 2019 2018 Group Sales 1,798 1,624 1,480 1,727 1,699 EBIT (reported) -42.2 102.0 28 61 96 EBIT margin in % -2.3 6.3 1.9 3.5 5.7 Original Equipment Sales 1,411 1,280 1,186 1,423 1,408 EBIT (reported) -111 37 -24 5.1 51 EBIT margin in % -7.9 2.9 -2.
Slide 47: Key figures (last quarters)
Group – Last 5 quarters Key figures Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Order intake 466 377 453 578 485 Order backlog 1,462 1,465 1,553 1,530 1,386 Sales 469 464 431 435 406 EBITDA 57.7 47.0 26.7 42.8 33.5 EBIT 22.6 18.1 -97.1 14.1 3.6 EBIT margin in % 4.8 3.9 -22.5 3.3 0.9 EBT 6.1 17.7 -90.7 1
Slide 48: Segmental figures (last quarters)
Group – Last 5 quarters Segmental figures Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Group Sales 469 464 431 435 406 EBIT (reported) 22.6 18.1 -97.1 14.1 3.6 EBIT margin in % 4.8 3.9 -22.5 3.3 0.9 Original Equipment Sales 378 360 338 335 325 EBIT (reported) 10.3 -3.6 -112.7 -5.0 -9.3 EBIT margin in % 2
Slide 49: Product portfolio
Group Product portfolio Metal Sealing Systems & E-Mobility Drivetrain Components ▪ Battery module ▪ PEM fuel cell ▪ Electric drive unit (EDU) Lightweighting/ Metal Forming & Assembly Elastomer Technology Technology ▪ Cockpit cross-car beam ▪ Thermal shielding ▪ Door module carrier ▪ Acoustic shieldi
Slide 50: Transformation and innovations push content per car
Group Transformation and innovations push content per car Selective indicative examples for ElringKlinger’s rising content per vehicle – in EUR ICE NON-ICE Cylinder-head gasket 3 - 12 Cell contacting system 100 - 300 Cylinder-head gasket 3 - 12 Bipolar plates* 350 - 600 Exhaust gas Underbody battery
Slide 51: ElringKlinger represented in all important auto regions
Group ElringKlinger represented in all important auto regions Production locations of global top 15 OEMs ( ) ElringKlinger production sites ( ) Germany UK China Eastern France Europe/ Spain Turkey Korea Italy Japan USA/Canada India Southeast Asia Mexico South South Africa America Analysts‘ Conferenc
Slide 52: Focused R&D activities
Group Focused R&D activities R&D – in EUR million R&D ratio – in % of total sales 4.7% 4.8% 4.6% 5.1% 4.7% 5.1% 5.1% 5.1% 92 87 81 82 • Integration of tools implies a technologically 75 76 71 leading position in developing ideas 64 • Main focus: E-Mobility, Lightweighting 70 components 76 64 65 • 60
Slide 53: Senior management
Group Senior management From left to right: Reiner Drews, COO (since 2018) Corporate units Production and Tooling Product Risk Management Quality & Sustainability Management Real Estate & Facility Management Business units Lightweighting/Elastomer Technology Metal Sealing Systems & Drivetrain Compon
Slide 54: More than 140 years of experience
Group More than 140 years of experience History of ElringKlinger in very brief Shareholder structure as at December 31, 2022 1879 Paul Lechler establishes a merchandising business in Stuttgart for technical products and gaskets. 1885 Richard Klinger establishes an Institutional Private Lechler engin
Slide 55: Disclaimer
Disclaimer Forward-looking statements and predictions This presentation contains statements about the future. These statements are based on current expectations, market evaluations and predictions by the Management Board, and on information that is currently available to them. The statements about t