Slide 1: Analysts Conference FY 2021 figures
Analysts Conference FY 2021 figures March 29, 2022
Slide 2: FY 2021 Headlines
FY 2021 Headlines Top line increase of 9.7% to EUR 1,624m, organically up by 10.1%, while global LV production increased by 3.4% EBIT increased from EUR 27.7m to EUR 102.0m, EBIT margin at 6.3 % Strong positive operating free cash flow for the third year in a row, in 2021 amounting to EUR 72m Furthe
Slide 3: 2021 – an eventful and all in all successful year
Fiscal year in brief 2021 – an eventful and all in all successful year Q1 Q2 Q3 Q4 Strong start Solid spring Convincing interim spurt Satisfying final quarter ▪ Start of new site in Neuffen, ▪ IPCEI funding of a total of ▪ German government backing ▪ Collaboration of EKPO and close to headquarters E
Slide 4: Strategic overview
Strategic overview
Slide 5: Three major fields of activity – all based on healthy financials
Group strategy Three major fields of activity – all based on healthy financials Product portfolio 1 ▪ Acting in a growing and transforming market ▪ Strong backbone in classical business while positioned for future through transformed portfolio Digitization and process optimization 2 ▪ Implementing a
Slide 6: Automotive remains a growing market
Group strategy: Product portfolio Automotive remains a growing market Global light vehicle production – in million units CAGR +1.3% +0.5% +8.5% 102.8 +5.7% 98.6 99.9 101.4 102.3 +3.4% 95.8 98.5 89.0 88.5 81.6 74.6 77.1 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 New estimates in 03
Slide 7: Strong growth in new technologies, slow decrease in ICE
Group strategy: Product portfolio Strong growth in new technologies, slow decrease in ICE Global light vehicle production by powertrain – in million units Global light vehicle production by powertrain – in million units New technologies ICE 72.3 CAGR CAGR -2.6% +22.9% 87.0 37.7 5.5 80.0 45.2 72.2
Slide 8: Classic business units (BUs)
Group strategy: Product portfolio Strategic approach corresponds to market demand Classic market Classic business units (BUs) Managing the demand • High dependency on ICE technology Capitalizing in the classical business • Established customers strong market position Developing new products • Esta
Slide 9: Capitalizing strong market position in ICE business
Group strategy: Product portfolio Capitalizing strong market position in ICE business Engine-related Cylinder-head Gaskets Special Gaskets Shielding Systems Lightweighting ▪ Strong market position of already proven products ▪ High expertise as a result of long-term experience in R&D and production
Slide 10: Transformation through products for mobility of future
Group strategy: Product portfolio Transformation through products for mobility of future Gaskets Shielding Technology Elastomer Technology Lightweighting ▪ Cover with integrated ▪ R&D activities for inno- ▪ Sealing of battery ▪ New products around gasket applied for high vative battery cover housi
Slide 11: Key areas for future mobility in innovative technologies
Group strategy: Product portfolio Key areas for future mobility in innovative technologies Structural Lightweighting Fuel Cell Technology Battery Technology Drivetrain ▪ Strong development ▪ Joint company with ▪ New center of ▪ Addressing particularly over past years Plastic Omnium competence in N
Slide 12: Fuel cell technology is essential for mobility of the future
Group strategy: Product portfolio Fuel cell technology is essential for mobility of the future Total Cost of Ownership for Long Haul Truck in 2030 – in EUR/km Comparison of incremental recharging vs. refuelling investment (Illustrative scenario) (Capex to serve 1,000 passenger vehicles, USD millio
Slide 13: Order situation drives Group transformation
Group strategy: Product portfolio Order situation drives Group transformation Current sales split Group transformation pathway FY 2021 100% Non-ICE Non-ICE 20% ICE 80% 0% ICE 2020 2025e 2030e New orders Sales projection 2020 – Feb 2022 Structural Lightweighting (by annual turnover) EDU Fuel cell B
Slide 14: Changing the mindset by internal transformation
Group strategy: Digitization and process optimization Changing the mindset by internal transformation • Optimization of processes with main directions: − Robustness of production − Global harmonization and standardization − Automation • Defining roles, responsibilities and workflows • Goal: Contri
Slide 15: Internal transformation driven by digitization
Group strategy: Digitization and process optimization Internal transformation driven by digitization • Cross-sectional digitization approach for developing a holistic implementation strategy • Three main tasks: − Being more efficient in existing scope of activities − Improving value of products −
Slide 16: Sustainability is a key priority for ElringKlinger
Group strategy: Sustainability Sustainability is a key priority for ElringKlinger Total CO2 emissions – in metric ton million* +58% • Limitation of global heating is key for protecting 1990 the environment 35,963 2020 Transport sector • European Green Deal with clear target to make accounts for Eu
Slide 17: Broad product portfolio enabling green mobility
Group strategy: Sustainability Broad product portfolio enabling green mobility 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
Slide 18: On track to be CO2-neutral by 2030
Group strategy: Sustainability On track to be CO2-neutral by 2030 Scope-1 and Scope-2 emissions – in metric tons -18.8% Reduction of CO2 and energy efficiency -2.5 % CO2 emissions p.a. at every production site (base: 2019) 110.8 110.3 • Increase energy efficiency of buildings and machines • Optimi
Slide 19: Financial details
Financial details
Slide 20: Firm increase in organic sales
FY 2021 Firm increase in organic sales Order intake – in EUR million Order backlog – in EUR million Sales – in EUR million +33% +34% +9.7% 1,978 1,386 Organic: +10.1% 1,624 1,735 1,737 1,483 1,020 1,030 1,033 150 1,480 -6 0 2018 2019 2020 2021 2018 2019 2020 2021 2020 FX M&A Organic 2021 Analysts‘ C
Slide 21: Lightweighting strongly contributes to Group sales growth
FY 2021 Lightweighting strongly contributes to Group sales growth Sales by segment/business unit – in EUR million Share of sales – in % Other OE 7 Metal Sealing (<1%) Lightweighting/ Systems & Elastomer Drivetrain Shielding Others Technology Components Technology E-Mobility 4 (<1%) 423 411 291 55 18
Slide 22: ElringKlinger significantly outperforms in all major markets
FY 2021 ElringKlinger significantly outperforms in all major markets Growth rate light vehicle production vs. Group sales – in % 7.2% Share of sales – in % of total sales -5.5% 18.4% Market EK Europe 7.1% 6.4% 0.2% South America and Rest of World Market EK 4% Germany Market EK North America Asia-Pac
Slide 23: Diversified customer base
FY 2021 Diversified customer base Sales by customer – in EUR million Share of sales – in % of total sales American OEMs 8% 17% (18%) Other 5% 31% (29%) 4% 9% EUR German OEMs 1,624m 19% (21%) 6% 4% 5% Aftermarket 1% 13% (12%) European OEMs Tier 1 6% (5%) 15% (14%) Differences due to rounding Analysts
Slide 24: Profitability on back of disciplined cost management
FY 2021 Profitability on back of disciplined cost management EBITDA – in EUR million EBIT bridge – in EUR million EBITDA margin – in % +19% 216 197 -32 181 182 14 -30 102 69 13.3 12 12.3 11.6 11 12 28 43 -25 2018 2019 2020 2021 2020 Fuel cell Impair- Provisions Divestment Sales Raw Efficiency Provis
Slide 25: Dividend payment of EUR 0.15 proposed
FY 2021 Dividend payment of EUR 0.15 proposed EBT – in EUR million Net income (attributable to shareholders) – in EUR million Earnings per share – in EUR +24% +27% +28% 100.8 55.7 0.88 81.4 43.8 0.69 41.7 4.1 0.06 -13.6 -40.8 -0.64 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 Analysts
Slide 26: Net working capital unchanged despite supply chain issues
FY 2021 Net working capital unchanged despite supply chain issues 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 164 568 -56% 176 165 0% 424 403 402 92 33.7 9.6 +22% 27.2 70
Slide 27: Further year-on-year reduction of net financial debt
FY 2021 Further year-on-year reduction of net financial debt Net Financial Debt – in EUR million Net Financial Debt/EBITDA 796 724 700 682 595 603 580 512 -20% 4.7 459 400 363 361 369 3.3 2.5 1.7 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 Analysts‘ Conference | March 29, 2022 27
Slide 28: Strong performance of Engineered Plastics
Segments Strong performance of Engineered Plastics Sales – in EUR million EBIT margin – in % of segmental sales Original Equipment (OE) Aftermarket +18.1% +7.9% 1,408 1,423 182 215 1,186 1,280 159 173 3.6 0.4 2.9 17.6 21.4 19.6 -2.0 15.6 2018 2019 2020 2021 2018 2019 2020 2021 Engineered Plastics Ot
Slide 29: Global efficiency program successfully completed
Financials Global efficiency program successfully completed Profitability strengthened Capex spent in a disciplined way Net working capital optimized (despite challenges like COVID, raw mats and semiconductors) EBIT margin – in % of total sales Capex ratio – in % of total sales Net working capital r
Slide 30: Markets and Outlook
_,Markets and Outlook . Pap
Slide 31: Post-Covid recovery slowed down due to several factors
Outlook: Markets Post-Covid recovery slowed down due to several factors Light vehicle production by region – in million units +7% 21.2 16.6 15.8 17.0 2019 2020 2021 2022 +13% +1% EUROPE 16.3 13.0 13.0 14.7 24.7 23.6 24.8 25.0 High uncertainty 2019 2020 2021 2022 2019 2020 2021 2022 NORTH AMERICA +6%
Slide 32: Dealing with a challenging environment
Outlook FY 2022 Dealing with a challenging environment • Geopolitical conflicts arising − Russian-Ukrainian conflict escalated with uncertain outcome − Potential for conflict in the Pacific region and possible resurgence of tensions in Middle East • Inflationary pressures taking place − Raw material
Slide 33: Outlook suspended due to high uncertainty
FY 2022 Outlook suspended due to high uncertainty Extremely high level of uncertainty, particularly due to outbreak of Russian-Ukrainian conflict, its intensity, and uncertainties associated with both its future course and possible global repercussions If conflict with lasting impact on value chains
Slide 34: Financial calendar
FY 2022 Financial calendar Preliminary figures FY 2021 Q1 2022 Q2 2022 February 25, 2022 May 5, 2022 August 4, 2022 Q3 Q2 Q1 AGM Q3 2022 November 3, 2022 FY Prelim. 2021 FY 2021 Full figures FY 2021 Annual General Meeting March 29, 2022 May 19, 2022 Analysts‘ Conference | March 29, 2022 34
Slide 35: Appendix
Appendix
Slide 36: Structural overview
ElringKlinger Structural overview Original Equipment Aftermarket 79% Sales: EUR 1,280 million 13% Sales: EUR 215 million Employees: 8,204 of Group sales of Group sales Employees:286 Exhaust Gas E-Mobility Purification Others <1% 5% <0% Shielding Engineered Plastics Technology 21% 8% Sales: EUR 125 m
Slide 37: Consolidated income statement
Group – FY 2021 Consolidated income statement 2021 2020 Sales revenue 1,624 1,480 Cost of sales -1,273 -1,196 Gross profit 351 285 Gross margin in % 21.6 19.2 Selling expenses -121 -107 General and administrative expenses -84 -73 Research and development costs -65 -64 Other operating income 33 10 Ot
Slide 38: Consolidated statement of financial position
Group – FY 2021 Consolidated statement of financial position As at Dec 31, As at Dec 31, As at Dec 31, As at Dec 31, Assets 2021 2020 Liabilities and equity 2021 2020 Intangible assets 216 201 Share capital 63 63 Property, plant, and equipment 939 940 Capital reserves 118 118 Investment property 0 0
Slide 39: Consolidated statement of cash flows
Group – FY 2021 Consolidated statement of cash flows 2021 2020 2021 2020 Earnings before taxes (EBT) 101 -14 Proceeds from disposals of PPE, intangible assets and investment property 4 18 Depreciation/amortization (less write-ups) of non-current assets Proceeds from disposals of financial assets 8 3
Slide 40: Key figures – Last years
Group – Last 5 years Key figures 2021 2020 2019 2018 2017 Order intake 1,978 1,483 1,737 1,735 1,732 Order backlog 1,386 1,033 1,030 1,020 1,001 Sales 1,624 1,480 1,727 1,699 1,664 EBITDA 216 182 181 197 238 EBIT (reported) 102 28 61 96 137 EBIT margin in % 6.3 1.9 3.5 5.7 8.3 EBT 101 -14 42 81 110
Slide 41: Segmental figures – Last years
Group – Last 5 years Segmental figures 2021 2020 2019 2018 2017 Group Sales 1,624 1,480 1,727 1,699 1,664 EBIT (reported) 102.0 27.7 61.2 96.2 137.3 EBIT margin in % 6.3 1.9 3.5 5.7 8.3 Original Equipment Sales 1,280 1,186 1,423 1,408 1,382 EBIT (reported) 36.9 -23.7 5.1 50.7 86.3 EBIT margin in % 2
Slide 42: Key figures – Last quarters
Group – Last 5 quarters Key figures Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Order intake 485 486 430 577 512 Order backlog 1,386 1,307 1,222 1,186 1,033 Sales 406.1 400.6 393.6 424 451 EBITDA 33.5 55.0 50.4 77 88 EBIT (reported) 3.6 27.0 23.0 48.4 25.2 EBIT margin (in %) 0.9 6.7 5.9 11.4 5.6 EBT 9.0
Slide 43: Segmental figures – Last quarters
Group – Last 5 quarters Segmental figures Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Group Sales 406 401 394 424 451 EBIT (reported) 3.6 27.0 23.0 48.4 25.2 EBIT margin (in %) 0.9 6.7 5.9 11.4 5.6 Original Equipment Sales 325 313 308 334 378 EBIT (reported) -9.3 9.6 7.3 29.3 12.8 EBIT margin (in %) -2.
Slide 44: Product portfolio
Group Product portfolio Metal Sealing Systems & E-Mobility Drivetrain Components ▪ Battery module ▪ PEM fuel cell ▪ Electric drive unit (EDU) Shielding Technology Lightweighting/ ▪ Thermal shielding Elastomer Technology ▪ Acoustic shielding ▪ Door module carrier ▪ Cockpit cross-car beam ▪ Plastic mo
Slide 45: Transformation and innovations driving content per car
Group strategy: Product portfolio Transformation and innovations driving content per car Content per vehicle – in EUR ICE NON-ICE Cylinder-head gasket 3-7 Cell contacting system 100 - 240 Cylinder-head gasket 3-7 Bipolar plates* 350 - 500 Cam cover 15 - 20 Media module 20 - 40 Exhaust gas Underbod
Slide 46: 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 47: Focused R&D activities
Group Focused R&D activities R&D – in EUR million R&D ratio – in % of total sales 5.0% 4.7% 4.8% 4.6% 5.1% 4.7% 5.1% 5.1% 87 81 82 75 76 • Integration of tools implies a technologically 71 67 leading position in developing ideas 64 • Main focus: lightweight components, 65 e-mobility 76 64 61 71 64 •
Slide 48: Senior management
Group Senior management Reiner Drews, COO Thomas Jessulat, CFO Dr. Stefan Wolf, CEO Theo Becker, CTO (since 2018) (since 2016) (since 2005) (since 2006) Corporate units Corporate units Corporate units Corporate units Production Finance Legal & Compliance Tool Shop/ Technology Quality & Sustainabilit
Slide 49: 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, 2021 1879 Paul Lechler establishes a merchandising business in Stuttgart for technical products and gaskets. 1885 Richard Klinger establishes an Institutional Private Lechler engin
Slide 50: 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