Slide 1: Investor Presentation June 2024
INVESTOR PRESENTATION JUNE 2024 Investor Presentation | June 2024
Slide 2: In a Nutshell
IN A NUTSHELL 1.9 bEUR in revenue with rising E-Mobility share in future 45 locations worldwide form a strong network 465 mEUR operating free cash flow generated over the past 5 years 0% Net financial debt considerably reduced by more than 400 mEUR over past 5 years – thus, net debt to EBITDA no
Slide 3: FY 2023 – Some Highlights
FY 2023 – SOME HIGHLIGHTS NEW POSITIONING OF “METAL FORMING & LARGE-SCALE NOMINATION FROM ASSEMBLY TECHNOLOGY” BUSINESS UNIT – BMW GROUP TO SUPPLY CELL TRANSFORMATION UNDERPINNED BY NEW CONTACTING SYSTEMS ORDERS FOR E-MOBILITY APPLICATIONS EXPANSION OF BATTERY TECHNOLOGY EKPO ORDER COMPETENCE CENTER
Slide 4: Purpose Vision Mission
PURPOSE VISION MISSION PIONEERING THE PREFERRED SHAPING THE FUTURE OF ELRINGKLINGER ON INNOVATIVE PARTNER IN THE BASIS OF TECHNOLOGIES DRIVING #1 PRODUCT TRANSFORMATION FOR A SUSTAINABLE INNOVATIVE #2 SUSTAINABILITY FUTURE. TECHNOLOGIES. #3 PROCESS AND PERFORMANCE EXCELLENCE #4 DIGITAL TRANSFORMATIO
Slide 5: Two Growth Markets
TWO GROWTH MARKETS E-MOBILITY HYDROGEN 5 Investor Presentation | June 2024
Slide 6: Focused on Growth Markets: Electrification
FOCUSED ON GROWTH MARKETS: ELECTRIFICATION Light vehicle production by region in million units NORTH AMERICA EUROPE GREATER CHINA 15.7 16.0 16.1 17.9 17.5 18.1 33.1 15.9 29.0 29.7 13.0 6% 4% 47% 24.8 11% 21% 58% 12% 57% 9% 23% 85% 73% 28% 79% 26% 30% 14% 17% 2021 2023 2024e 2030e 2021 2023 2024e 20
Slide 7: Focused on Growth Markets: Hydrogen Economy
FOCUSED ON GROWTH MARKETS: HYDROGEN ECONOMY +73 GW INCREASE IN ANNOUNCED ELECTROLYSIS CAPACITY BY 2030 BETWEEN JANUARY 23 AND Cumulative electrolysis capacity (announced) – in GW OCTOBER 23 305 GW Oct 2023 232 GW Jan 2023 >60% 175 GW CAPACITY ANNOUNCEMENTS FOUND May 2022 IN 3 REGIONS, I.E., EUROPE,
Slide 8: Product Transformation, Sustainability, Performance, Digital, Corporate Culture
#1 PRODUCT #2 SUSTAINABILITY #3 PERFORMANCE & #4 DIGITAL #5 CORPORATE TRANSFORMATION PROCESS EXCELLENCE TRANSFORMATION CULTURE 8 Investor Presentation | June 2024
Slide 9: Product Transformation
#1 PRODUCT TRANSFORMATION TRANSFORMING THE PRODUCT PORTFOLIO • ElringKlinger’s product portfolio geared towards sustainable mobility at an early stage • New strategy with market, product group, and plant dimension to be implemented • Focused innovation management • Target: >50% of sales revenues in
Slide 10: ElringKlinger Segments
ORIGINAL ENGINEERED AFTERMARKET EQUIPMENT PLASTICS ELRINGKLINGER • Strong market position of • Outstanding market • Diversifying Group’s SEGMENTS established business units position in core regions portfolio by broad range as a backbone for results in strong earnings of products for different transf
Slide 11: OE Segment: Preparing Growth Period by Investing in E-Mobility
OE-SEGMENT PREPARING GROWTH PERIOD BY INVESTING IN E-MOBILITY Revenue – in mEUR EBIT adjusted* (margin) – in mEUR (%) +0.1% 37 76% Group ->100% of 1,411 1,412 1,280 2.9 10 -2.0 -0.0 0.7 1,186 Revenue (FY 2023) -1 -24 2020 2021 2022 2023 2020 2021 2022 2023 Today: Strong and profitable classical busi
Slide 12: Transformation within the OE Segment
Classical business units New business units Classical products Newly developed products New technologies TRANSFORMATION WITHIN THE Capitalizing strong market Unlocking strong market potential of innovative OE SEGMENT position technologies #1 Product Transformation ICE Components E-Mobility Applicat
Slide 13: Two Key Transformational Areas within OE Segment
TWO KEY TRANSFORMATIONAL AREAS WITHIN OE SEGMENT ENGINEERED ORIGINAL EQUIPMENT AFTERMARKET PLASTICS Metal Sealing Metal Forming & Lightweighting/ E-Mobility Systems & Assembly Elastomer Drivetrain Technology Technology Components ICE Components E-Mobility Applications 13 Investor Presentation | June
Slide 14: Transforming the OE Segment
TRANSFORMING THE OE SEGMENT Free Cashflow Years Classical business New business Generating Inducing earnings and cash start-up losses Portfolio Limitations regarding profitability and cash generation Non-core revenues Discontinued: Production location in Germany, ICE Engineering Services 14 In
Slide 15: OE Segment: ICE Components
OE SEGMENT: ICE COMPONENTS STRONG MARKET POSITION OF CLASSICAL BUSINESS UNITS ICE revenue* – in mEUR Today: Strong market position with established products facing a continuous market decrease regarding the production of ICE light vehicles +0% Tomorrow: Transformation of the business managed by a sh
Slide 16: OE Segment: E-Mobility Applications
OE SEGMENT: E-MOBILITY APPLICATIONS AN INVESTMENT TODAY FOR PROFITABLE GROWTH IN THE FUTURE Non-ICE revenue* – in mEUR EU-Taxonomy: eligible activities – in % of Group total +572.7% +54.5% +11.3% 7.4 58.6 25.2 37.9 22.6 1.1 Sales Capex Opex 2022 2023 2022 2023 2022 2023 +6.3% Today: Already series p
Slide 17: Transformed Product Range Based on Core Competencies
TRANSFORMED PRODUCT RANGE BASED ON CORE COMPETENCIES Coating, Stamping, Embossing Material Process Injection knowledge + know-how + Molding Metal Forming 17 Investor Presentation | June 2024 17
Slide 18: Cutting-Edge Products for Mobility of Today and Tomorrow
CUTTING-EDGE PRODUCTS FOR MOBILITY OF TODAY AND TOMORROW Fuel Cell (EKPO) Battery & Drivetrain Lightweighting Metal Forming • Fuel cell stacks highly efficient • Full range of products for • Replacement of metal by plastic • Using core competencies for with market-leading power prismatic as well as
Slide 19: Important Nominations Fueling Nomination Backlog
IMPORTANT NOMINATIONS FUELING NOMINATION BACKLOG Battery Technology & Electric Drive Units Metal Forming & Assembly Technology • Cell contacting systems for global battery • Battery housings for global Tier 1 supplier manufacturer • Low triple-digit million-euro range over • Mid-triple-digit million
Slide 20: High Volume of Nominations Confirms Transformation
HIGH VOLUME OF NOMINATIONS CONFIRMS TRANSFORMATION Fuel Cell Battery Technology Technology & EDU >4,000 Other nominations Components Nominations for electrolyzers Nominations Fuel cell received 3-digit mEUR >2 bEUR received for Non-ICE Lightweighting components Battery module housings for E-Mobility
Slide 21: Profitable Growth to Embark on Transformation Path
PROFITABLE GROWTH TO SUCCESSFULLY EMBARK ON TRANSFORMATION PATH Current segmental revenue projection – in mEUR Segment transformation path – in % Group transformation path – in % 100% 100% Fuel Cell 80% 80% Battery Non-ICE E-Mobility Applications 60% 60% Drivetrain Lightweighting 40% 40% Metal Busin
Slide 22: Aftermarket Segment: Growth Strategy in Americas and Asia
AFTERMARKET SEGMENT GROWTH STRATEGY IN AMERICAS AND ASIA TAKES EFFECT Revenue – in mEUR EBIT adjusted* (margin) – in mEUR (%) +19.6% +42.8% 16% Group of Revenue (FY 2023) 182 215 251 300 39 21.4 42 50 72 23.9 19.6 20.0 2020 2021 2022 2023 2020 2021 2022 2023 Today: Cost discipline ensures profitabil
Slide 23: Engineered Plastics Segment: Diversifying the Portfolio
ENGINEERED PLASTICS SEGMENT DIVERSIFYING THE PORTFOLIO OF THE GROUP Revenue – in mEUR EBIT adjusted* (margin) – in mEUR (%) -0.3% -15.8% 7% Group 24 of 18.9 20 133 132 125 17 14.9 14 12.5 108 Revenue (FY 2023) 13.1 2020 2021 2022 2023 2020 2021 2022 2023 Today: Successful segment with less than 40%
Slide 24: Sustainability: A Core Priority for the Group
A CORE PRIORITY FOR THE GROUP • Optimizing product and production footprint • Focus on employees‘ engagement, motivating them to best performance by attractive and favorable working environment SUCCESS FACTOR • Social commitment in line with Group‘s values and #2 Sustainability according to the foun
Slide 25: Success Factors: Driving Forces for Group's Transformation
SUCCESS FACTORS: DRIVING FORCES FOR GROUP’S TRANSFORMATION #1 #2 #3 #4 #5 PRODUCT SUSTAINABILITY PERFORMANCE & DIGITAL CORPORATE TRANSFORMATION PROCESS EXCELLENCE TRANSFORMATION CULTURE • Product portfolio geared • Optimizing product and • Optimizing processes via • Platform-based approach • Modern
Slide 26: Group Financials
GROUP FINANCIALS Investor Presentation | June 2024
Slide 27: FY 2023: Revenue Growth Driven by Aftermarket and E-Mobility
FY 2023: REVENUE GROWTH DRIVEN BY AFTERMARKET AND E-MOBILITY UNIT Revenue – in mEUR Revenue 2023 (outer circle) vs. 2022 (inner circle) Revenue 2023 (outer circle) vs. 2022 (inner circle) by business unit – in % by region – in % +2.7% South America Other Lightweighting/ & Rest of World 1,847 Enginee
Slide 28: FY 2023: Broadly Diversified Customer Base
FY 2023: BROADLY DIVERSIFIED CUSTOMER BASE Revenue 2023 by customer – in % American OEMs 19% (19%) 7% Other 6% 29% (29%) 6% EUR 8% German OEMs 1,847m 18% (19%) 6% 3% 5% Aftermarket 1% 16% (14%) European OEMs Tier 1 6% (5%) 12% (13%) Differences due to rounding 28 Investor Presentation | June 2024 28
Slide 29: FY 2023: On Track to Improve Profitability
FY 2023: ON TRACK TO IMPROVE PROFITABILITY EBITDA (margin) – in mEUR (%) EBIT adjusted* (margin) – in mEUR (%) EPS reported – in EUR +46.4% +15.1% 216 102 0.88 +>100% 100 200 182 0.62 174 68 13.3 12.3 10.8 9.7 -0.64 28 6.3 5.4 3.8 1.9 -1.41 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023
Slide 30: FY 2023: Optimized Working Capital and Capex
FY 2023: OPTIMIZED WORKING CAPITAL AND CAPEX FOR CASH FLOW GENERATION R&D (ratio) – in mEUR (%) Net working capital – in mEUR (%) Capex (ratio) – in mEUR (%) +4.6% +2.5% +2.8% 96 455 466 70 69 71 92 82 403 402 76 57 27.2 24.8 25.3 25.2 5.1 5.1 5.1 5.2 3.9 4.3 3.9 3.9 2020 2021 2022 2023 2020 2021 20
Slide 31: FY 2023: Strong Free Cash Flow for Debt Reduction
FY 2023: STRONG FREE CASH FLOW FOR CONTINUING DEBT REDUCTION Operating Free Cash Flow – in mEUR Net Debt (to EBITDA) – in mEUR Equity (ratio) – in mEUR (%) +1.5% 165 459 982 72 -11.3% 897 911 369 813 364 323 +>100% 37 47.0 45.3 41.4 43.8 2.5 2.1 15 1.7 1.6 2020 2021 2022 2023 2020 2021 2022 2023 202
Slide 32: FY 2023: Aftermarket Segment Again with Strong Performance
FY 2023: AFTERMARKET SEGMENT AGAIN WITH STRONG PERFORMANCE Sales – in mEUR +19.6% Adjusted EBIT margin* – in % of segmental sales 0.0% 300 1,411 1,412 251 1,186 1,280 215 182 23.8 2.9 21.4 0.0 0.7 20.1 -2.0 19.6 2020 2021 2022 2023 2020 2021 2022 2023 Original Equipment (OE) Aftermarket -0.3% -18.2%
Slide 33: Markets & Outlook
MARKETS & OUTLOOK Investor Presentation | June 2024
Slide 34: Global LV Production 2024 Flattish Y-o-Y
GLOBAL LV PRODUCTION 2024 FLATTISH Y-O-Y Expected LV production in million units Change vs. prior year’s quarter in % NORTH AMERICA +2.1% EUROPE GREATER CHINA +2.3% -2.2% 15.7 16.0 17.9 17.5 29.0 29.7 14.3 15.8 26.4 3.9 4.1 4.0 3.9 4.5 4.5 4.5 7.5 8.7 4.0 6.2 7.3 3.8 1.4 1.5 1.7 -2.5 -3.0 -3.3 11.5
Slide 35: Outlook Confirmed
OUTLOOK CONFIRMED FY 2024 Mid-term Actual 2023 Organic growth of Revenue Slight organic growth 1.85 bEUR 5% to 7% annually Adjusted EBIT Margin Approx. 5% of revenue Approx. 7% of revenue 5.4% Operating Free Cash Flow Approx. 2% of revenue Approx. 3% of revenue 2.0% ROCE Around 6% Around 11% 5.6% N
Slide 36: Financial Calendar
FINANCIAL CALENDAR Preliminary figures FY 2023 Annual General Meeting March 13, 2024 May 16, 2024 Q3 Full figures FY 2023 March 27, 2024 Q2 Q1 AGM Q3 2024 November 12, 2024 FY Prelim. 2023 FY 2023 Q1 2024 Q2 2024 May 7, 2024 August 7, 2024 36 Investor Presentation | June 2024
Slide 37: Let's Shape the Future
LET‘S SHAPE THE FUTURE. Investor Presentation | June 2024
Slide 38: The ElringKlinger Difference
THE ELRINGKLINGER DIFFERENCE With our strong technological We will grow profitably orientation, we pioneer innovative in a transforming framework. solutions. We will utilize our strong market We will further shape key financial position in ICE business, but focus on performance indicators. new techn
Slide 39: Appendix
APPENDIX Investor Presentation | June 2024
Slide 40: Senior Management
SENIOR MANAGEMENT Thomas Jessulat, CEO (Board member since 2016, CEO since 2023) Corporate units Corporate Sustainability Finance Global Strategy & Digital Transformation HR IT Legal & Compliance M&A and Innovations Strategic Communications Business units Electric Drive & Battery Technology Fuel Cel
Slide 41: Product Portfolio
PRODUCT PORTFOLIO Metal Sealing Systems & E-Mobility Drivetrain Components • Battery module • PEM fuel cell • Electric drive unit (EDU) Metal Forming & Assembly Lightweighting/ Technology Elastomer Technology • Thermal shielding • Door module carrier • Acoustic shielding • Cockpit cross-car beam • P
Slide 42: ElringKlinger Represented in All Important Auto Regions
ELRINGKLINGER REPRESENTED IN ALL IMPORTANT AUTO REGIONS Production locations of global top 15 OEMs ( ) ElringKlinger production sites ( ) Germany UK China Eastern Europe/ France Turkey USA/Canada Korea Spain Italy Japan India Southeast Asia Mexico South America South Africa 42 Investor Presentation
Slide 43: EKPO Fuel Cell Technologies
EKPO FUEL CELL TECHNOLOGIES A LEADING POSITION IN FUEL CELL TECHNOLOGY ElringKlinger OPmobility* 60% 40% A German-French joint venture of strong partners, headquartered in the center of Europe Technology leadership Sales ~1.85 bn EUR Sales >11 bn EUR for fuel cell stacks and components 45 locations
Slide 44: Partnerships for Success
PARTNERSHIPS FOR SUCCESS Joint venture with Airbus on aeronautic application Strategic partnerships as success factor in an early-stage market cycle AIRBUS ELRINGKLINGER = AEROSTACK 44 Source: Airbus Newsroom Investor (www.airbus.com, Presentation Nov | June 2024 30th, 2022) 44
Slide 45: Focused R&D Activities
FOCUSED R&D ACTIVITIES R&D – in EUR million R&D ratio – in % of total sales • Integration of tools implies a 4.7% 4.8% 4.6% 5.1% 4.7% 5.1% 5.1% 5.2% technologically leading position in 96 developing ideas 92 87 82 • Main focus: E-Mobility, 81 75 76 Lightweighting components 64 • 627 R&D employees 69
Slide 46: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT 2023 2022 Sales revenue 1,847 1,798 Cost of sales -1,444 -1,460 Gross profit 403 338 Gross margin in % 21.8 18.8 Selling expenses -152 -140 General and administrative expenses -90 -90 Research and development costs -69 -70 Other operating income 18 18 Other operating e
Slide 47: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of Dec As of Dec As of Dec As of Dec Assets Liabilities and equity 31, 2023 31, 2022 31, 2023 31, 2022 Intangible assets 168 147 Share capital 63 63 Property, plant, and equipment 858 906 Capital reserves 118 118 Financial assets 12 14 Revenue reserve
Slide 48: Consolidated Statement of Cash Flows
CONSOLIDATED STATEMENT OF CASH FLOWS 2023 2022 [Continued] 2023 2022 Earnings before taxes (EBT) 53 -56 Proceeds from disposals of PPE and intangible assets 6 5 Depreciation/amortization (less write-ups) of non-current Proceeds from disposals of financial assets 17 5 assets 121 217 Payments for inv
Slide 49: Key Group Figures – Last 5 Years
KEY GROUP FIGURES – LAST 5 YEARS 2023 2022 2021 2020 2019 Order intake 1,691 1,874 1,978 1,483 1,737 Order backlog 1,305 1,462 1,386 1,033 1,030 Sales 1,847 1,798 1,624 1,480 1,727 EBITDA 200 174 216 182 181 Adjusted EBIT1 100 68 102 28 61 Adjusted EBIT margin1 in% 5.4 3.8 6.3 1.9 3.5 EBT 53 -56 101
Slide 50: Key Segmental Figures – Last 5 Years
KEY SEGMENTAL FIGURES – LAST 5 YEARS 2023 2022 2021 2020 2019 Group Sales 1,847 1,798 1,624 1,480 1,727 Adjusted EBIT1 100.1 68.4 102.0 28 61 Adjusted EBIT margin1 in % 5.4 3.8 6.3 1.9 3.5 Original Equipment Sales 1,412 1,411 1,280 1,186 1,423 Adjusted EBIT1 9.9 -1 37 -24 5 Adjusted EBIT margin1 in
Slide 51: Key Group Figures – Last 5 Quarters
KEY GROUP FIGURES – LAST 5 QUARTERS Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Order intake 489 465 377 374 475 Order backlog 1,329 1,305 1,279 1,354 1,449 Sales 465 439 452 469 488 EBITDA 50.8 52.3 47.7 46.8 53.6 EBIT 23.8 18.8 21.4 16.7 26.0 EBIT margin in % 5.1 4.3 4.7 3.6 5.3 EBIT adjusted 24.0 26.
Slide 52: Key Segmental Figures – Last 5 Quarters
KEY SEGMENTAL FIGURES – LAST 5 QUARTERS Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Group Sales 465 439 452 469 488 Adjusted EBIT 24.0 26.3 22.7 24.8 26.4 Adjusted EBIT margin in % 5.2 6.0 5.0 5.3 5.4 Original Equipment Sales 339 340 343 360 369 Adjusted EBIT -2.4 3.3 2.1 3.4 1.1 Adjusted EBIT margin in
Slide 53: More Than 140 Years of Experience
MORE THAN 140 YEARS OF EXPERIENCE History of ElringKlinger in very brief Shareholder structure as at March 31, 2024 1879 Paul Lechler establishes a merchandising business in Stuttgart for technical products and gaskets. 1885 Richard Klinger establishes an engineering office in Vienna. 1924 The first
Slide 54: Contact
CONTACT DR. JENS WINTER HEIDEROSE MALL DR. PHILIPP OTTENSTEIN Vice President Strategic Communications Strategic Communications Strategic Communications Phone: +49 7123 724-88335 Phone: +49 7123 724-463 Phone: +49 7123 724-9594 Mail: jens.winter@elringklinger.com Mail: heiderose.mall@elringklinger.co
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