Slide 1: ElringKlinger – A Transformation Story
ElringKlinger – A Transformation Story Analysts‘ Conference Thomas Jessulat, CEO March 27, 2024 Analysts’ Conference | March 27, 2024
Slide 2: FY 2023 Some highlights
FY 2023 Some highlights Large-scale New positioning of “Metal nomination from Forming & Assembly New management team: Technology” business unit – Thomas Jessulat new CEO, BMW Group to transformation underpinned Dirk Willers new Board supply cell contacting by new orders for e-mobility member systems
Slide 3: Executing on our vision and mission
ElringKlinger Executing on our vision and mission PURPOSE VISION MISSION Pioneering The preferred partner Shaping the future of ElringKlinger by… innovative technologies in driving (1) transforming the product portfolio; for a sustainable future innovative technologies (2) implementing sustainable t
Slide 4: Focused on growth markets: electrification
Markets Focused on growth markets: electrification Expected E-Mobility LV production – in million units CAGR CAGR +12.6% +12.8% CAGR +18.7% 11.7 +20% 15.7 +29% 27.2 +15% 3.6 4.4 7.6 8.6 15.3 7.2 11.9 4.2 3.6 5.9 8.1 4.4 5.9 11.3 5.1 4.5 19.6 2.0 2.6 5.1 2.5 2.2 9.4 2.0 2.7 7.3 1.2 1.6 3.0 2021 2023
Slide 5: Focused on growth markets: hydrogen economy
Markets Focused on growth markets: hydrogen economy Cumulative electrolysis capacity (announced) – in GW 305 GW Oct 2023 232 GW Jan 2023 175 GW May 2022 115 GW Dec 2021 55 GW Dec 2020 2020 2022 2024e 2026e 2028e 2030e For projects without known deployment timeline, capacity additions were interpolat
Slide 6: Success factors: driving forces for Group's transformation
Group strategy Success factors: driving forces for Group’s transformation #1 #2 #3 #4 #5 PRODUCT PERFOR- DIGITAL TRANS- SUSTAIN- MANCE & TRANS- CORPORATE FORMATION ABILITY PROCESS FORMATION CULTURE EXCELLENCE Analysts’ Conference | March 27, 2024 6
Slide 7: Focusing on a transformed product portfolio
Success factor #1: Product Transformation Focusing on a transformed product portfolio • ElringKlinger’s product portfolio geared towards sustainable mobility at an early stage • New sales strategy in implementation phase • Focused innovation management • Target: >50% of revenues in E-Mobility applic
Slide 8: ElringKlinger segments
Success factor #1: Product Transformation ElringKlinger segments Original Equipment Aftermarket Engineered Plastics • Strong market • Outstanding market • Diversifying Group’s position of position in core portfolio by broad established business regions results in range of products for units as a bac
Slide 9: OE Segment: Preparing growth period by investments in E-Mobility
OE Segment Preparing growth period by investments 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 bu
Slide 10: Transformation within the OE segment
Success factor #1: Product Transformation Transformation within the OE segment Classical business units New business units Maximizing value Newly developed products New technologies by classical products Capitalizing strong market position Unlocking strong market potential of innovative technologies
Slide 11: Two key transformational areas within OE segment
Success factor #1: Product Transformation Two key transformational areas within OE segment Engineered Original Equipment Aftermarket Plastics Metal Sealing Metal Forming Lightweighting/ Systems & E-Mobility & Assembly Elastomer Drivetrain Technology Technology Components ICE Components E-Mobility Ap
Slide 12: Transforming the OE segment
Success factor #1: Product Transformation 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
Slide 13: Strong market position of classical business units
Success factor #1: 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 busi
Slide 14: An investment today for profitable growth in the future
Success factor #1: OE Segment – E-Mobility Applications An investment today for profitable growth in the future Non-ICE revenue* – in mEUR EU-Taxonomy: +572.7% +54.5% +11.3% eligible activities – in % of Group total 7.4 58.6 25.2 37.9 22.6 1.1 Sales Capex Opex 2022 2023 2022 2023 2022 2023 +6.3% Tod
Slide 15: Already transformed product range based on core competencies
Success factor #1: OE Segment – E-Mobility Applications Already transformed product range based on core competencies Coating, Stamping, Embossing Material Process Injection knowledge + know-how + Molding Metal Forming Analysts’ Conference | March 27, 2024 15
Slide 16: Cutting-edge products for mobility of today and tomorrow
Success factor #1: OE Segment – E-Mobility Applications 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 competen
Slide 17: Important nominations fueling nomination backlog
Success factor #1: OE Segment – E-Mobility Applications 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-
Slide 18: High volume of received nominations confirms transformation
Success factor #1: OE Segment – E-Mobility Applications High volume of received nominations confirms transformation Total nomination value for E-Mobility applications receives in the period from January 2021 to March 2024 – in mEUR Fuel Cell Battery >4,000 Technology Technology & EDU Other nominatio
Slide 19: Profitable growth to successfully embark on transformation path
Success factor #1: OE Segment 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 Ligh
Slide 20: Aftermarket Segment: Growth strategy in Americas and Asia takes effect
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 19.6 50 20.0 72 23.9 2020 2021 2022 2023 2020 2021 2022 2023 Today: Cost discipline ensures profitabil
Slide 21: Engineered Plastics Segment: Diversifying the portfolio of the Group
Engineered Plastics Segment Diversifying the portfolio of the Group Revenue – in mEUR EBIT adjusted* (margin) – in mEUR (%) -0,3% 7% Group -15.8% of 133 132 24 125 20 17 108 14 Revenue (FY 2023) 18.9 13.1 14.9 12.5 2020 2021 2022 2023 2020 2021 2022 2023 Today: Successful segment with less than 40%
Slide 22: Sustainability: a core priority for the Group
Success factor #2: Sustainability 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 • Social commitment in line with Group‘s values and according to the fou
Slide 23: Success factors: driving forces for Group's transformation
Group strategy 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 app
Slide 24: Group financials
Group financials Analysts’ Conference | March 27, 2024 24
Slide 25: Revenue growth driven by Aftermarket and E-Mobility unit
Group financials: 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 Wo
Slide 26: Broadly diversified customer base
Group financials: FY 2023 Broadly diversified customer base Revenue 2023 by customer – in mEUR (%) American OEMs 7% 19% (19%) 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 Analysts’ Confe
Slide 27: On track to improve profitability
Group financials: 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 20
Slide 28: Optimized working capital and capex for cash flow generation
Group financials: 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
Slide 29: Strong free cash flow for continuing debt reduction
Group financials: 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 2
Slide 30: Aftermarket segment again with strong performance
Segment financials: 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) After
Slide 31: Outlook
Outlook Analysts’ Conference | March 27, 2024 31
Slide 32: Global market sideways – better in China, worse in Europe
Markets Global market sideways – better in China, worse in Europe Expected LV production – in million units Change vs. prior year’s quarter – in % +0.6% -2.8% +2.3% 15.7 15.8 17.9 17.4 29.0 29.7 14.3 15.8 26.4 3.9 4.1 3.9 3.8 4.4 4.5 4.0 4.5 11.3 8.5 10.1 7.2 1.5 1.0 1.1 -3.2 7.5 -1.3 -5.0 -4.0 6.5
Slide 33: Group Outlook
Group Outlook FY 2024 Mid-term Actual 2023 Revenue Slight organic growth Organic growth of 5 to 7% annually 1.85 bEUR 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 % Net D
Slide 34: 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 Analysts’ Conference | March 27, 2024 34
Slide 35: The ElringKlinger difference
The ElringKlinger difference 1 With our strong technological orientation, we pioneer innovative solutions. We will grow profitably in a transforming framework. 4 2 We will utilize our strong market position in ICE business, but focus on new technologies. We will further shape key financial performan
Slide 36: Appendix
Appendix Analysts’ Conference | March 27, 2024 36
Slide 37: Management Board focusing on continued transformation
Senior Management Management Board focusing on continued transformation 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 Busin
Slide 38: 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 39: A leading position in fuel cell technology
EKPO Fuel Cell Technologies A leading position in fuel cell technology 60% 40% A German-French joint venture of strong partners, headquartered in the center of Europe Technology leadership Sales ~1.8 bn EUR for fuel cell stacks and components Sales >8.5 bn EUR 46 factories 150 factories Assembly ~9,
Slide 40: 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% 5.2% 96 92 87 • Integration of tools implies a technologically 81 82 75 76 leading position in developing ideas 64 • Main focus: E-Mobility, Lightweighting 69 components 70 76 64 65 •
Slide 41: Adjusted EBIT for comparing operating profitability
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 +/- Restructuring
Slide 42: Improved margin at year-end
Group financials: Q4 2023 Improved margin at year-end Revenue – in mEUR EBIT adjusted (margin) – in mEUR (%) Operating Free Cash Flow – in mEUR +1,5% -6,4% -20.5% 488 33 41 42 469 469 26 26 25 452 23 439 12 7.1 5.4 5.3 6.0 5.0 4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 -20 2022 2023 2022 2023 Q4 Q1 Q2 Q3 Q4 20
Slide 43: Reduction of net working capital and net debt in Q4
Group financials: Q4 2023 Reduction of net working capital and net debt in Q4 Capex (ratio) – in mEUR (%) Net Working Capital (ratio) – in mEUR (%) Net Debt (to EBITDA) – in mEUR +1.2% +2.4% -11.7% 25 25 518 529 372 380 510 364 366 455 466 323 17 2.1 17 2.0 1.9 1.8 28.0 28.0 27.1 1.6 12 25.3 25.2 5.
Slide 44: Consolidated income statement
FY 2023: Group P&L 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
Slide 45: Consolidated statement of financial position
FY 2023: Group balance sheet 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
Slide 46: Consolidated statement of cash flows
FY 2023: Group cash flow Consolidated statement of cash flows 2023 2022 2023 2022 Earnings before taxes (EBT) 53 -56 Proceeds from disposals of PPE, intangible assets and investment property 6 5 Depreciation/amortization (less write-ups) of non-current assets 121 217 Proceeds from disposals of finan
Slide 47: Key figures
Group – Last 5 years Key figures 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 48: Segmental figures
Group – Last 5 years Segmental figures 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 i
Slide 49: Key figures – last quarters
Group – Last 5 quarters Key figures Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Order intake 465 377 374 475 466 Order backlog 1,305 1,279 1,354 1,449 1,462 Sales 439 452 469 488 469 EBITDA 52.3 47.7 46.8 53.6 57.7 EBIT 18.8 21.4 16.7 26.0 22.6 EBIT margin in % 4.3 4.7 3.6 5.3 4.8 EBIT adjusted1 26.3 22
Slide 50: Segmental figures – last quarters
Group – Last 5 quarters Segmental figures Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Group Sales 439 452 469 488 469 Adjusted EBIT1 26.3 22.7 24.8 26.4 33.1 Adjusted EBIT margin1 in % 6.0 5.0 5.3 5.4 7.1 Original Equipment Sales 340 343 360 369 378 Adjusted EBIT 3.3 2.1 3.4 1.1 20.8 Adjusted EBIT margi
Slide 51: History and shareholder structure
Group More than 140 years of experience History of ElringKlinger in very brief Shareholder structure as at December 31, 2023 1879 Paul Lechler establishes a merchandising business in Stuttgart for technical products and gaskets. Institutional 1885 Richard Klinger establishes an engineering office in
Slide 52: Contact
ElringKlinger Group Investor Relations 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.co
Slide 53: 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