Montana Aerospace : Interim Financial Report – First Half-Year 2023

About this update from Montana Aerospace Ag

INTERIM FINANCIAL REPORT FIRST HALF-YEAR 2024 WE SHAPE THE FUTURE. WITH EXPERIENCE, A SPIRIT OF INNOVATION AND THE HIGHEST STANDARDS, WE ARE SETTING OUT FOR NEW HORIZONS. 2 INTERIM REPORT H1 2024 | MONTANA AEROSPACE AG MONTANA AEROSPACE AG - SELECTED KEY FIGURES (financial figures in M€) Net Sales EBITDA Adjusted EBITDA Adjusted EBITDA margin (%) Operating Profit (EBIT) Result from continuing operations Result for the period Cash Flow from operating activities Cash Flow from investing activities Cash Flow from financing activities Free Cash Flow CAPEX spent Trade Working Capital * Equity Ratio (%) * Net Debt (cash) * Total Assets * Employees ** comparison period is December 2023 still including employees of the E-Mobility segment For the six months ended 30 June 2024 2023 719.5 614.0 75.2 51.3 79.3 54.9 11.0% 8.9% 28.7 4.3 9.2 -21.4 -17.4 -23.1 -4.3 -37.0 -38.3 -38.0 -45.3 -20.7 -75.3 -42.3 -38.8 -31.8 342.2 294.7 48.0% 48.3% 342.4 275.8 1,900.5 1,935.5 6,848 7,553 yoy change 105.5 23.9 24.4 2.1% 24.4 30.6 5.7 32.7 0.3 24.6 33.0 -7.0 47.5 -0.3% 66.6 -35.0 705 3 INTERIM REPORT H1 2024 | MONTANA AEROSPACE AG TABLE OF CONTENTS MONTANA AEROSPACE AG - SELECTED KEY FIGURES 3 FINANCIAL OVERVIEW 5 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 11 THE MONTANA AEROSPACE EQUITY STORY 33 ABOUT MONTANA AEROSPACE 35 DISCLAIMER 36 4 INTERIM REPORT H1 2024 | MONTANA AEROSPACE AG FINANCIAL OVERVIEW Earnings For the six months ended 30 June (in TEUR) Net Sales Change in finished and unfinished goods Own work capitalized Other operating income Cost of materials, supplies and services Personnel expenses Other operating expenses EBITDA * Legal costs M&A and PMI related expenses Stock option plans (share-based payment) MSOP Adjusted EBITDA Adjusted EBITDA margin Depreciation and amortization Operating Profit (EBIT) Financial result Share of result of equity-accounted investees, net of tax Result before tax Income tax expense / income Result from continuing operations Result from discontinued operation, net of tax *** Result for the period Thereof attributable to: Owners of the company Non-controlling interests 2024 2024 (adjustments) 719 ,549 30,603 4,558 7,857 -464,070 -139,159 -84,118 75,220 3,443 - 681 79,344 11.0% -46,545 28,675 -17,624 383 11,434 -2,239 9,195 -26,621 -17,426 -17,260 -166 2023 restated** 614,010 8,291 6,187 14,009 -394,019 -121,406 -75,812 51,260 -47,007 4,253 -26,601 -83 -22,431 1,016 -21,415 -1,679 -23,094 -22,888 -206 2023 (adjustments) 1,656 925 1,091 54,931 8.9% EBITDA is calculated as result for the period before income tax expense, interest income, other financial income, interest expenses, other financial expenses and depreciation and amortization. The comparative information has been restated due to a discontinued operation (see Note 10). The Group has elected to present the result after tax of the discontinued operation in a separate amount in the statement of comprehensive income and has disaggregated this separate amount into revenue, expenses and result before tax in Note 10. 5 INTERIM REPORT H1 2024 | MONTANA AEROSPACE AG FINANCIAL OVERVIEW Net Sales In the first six months of 2024, Montana Aerospace generated consolidated net sales of EUR 719.5 million, representing a 17.2% increase compared to EUR 614.0 million in the first half of the previous year. The largest contribution to net sales was made by the Aerostructures segment, which generated EUR 409.0 million, followed closely by the Energy segment, which contributed EUR 311.7 million. Despite lower build rates from major OEMs such as Airbus and Boeing in Q2 2024 compared to previous quarters, Aerostructures was able to largely compensate for the shortfall in volumes on existing work packages by gaining market share from competition. The Energy segment continues to reap benefits from structural market shift as evidenced by higher production volumes and better pricing. EBITDA After accounting for non-recurring and non-operational items, mainly expenses related to legal fees and the Management Stock Option Program (MSOP), the adjusted EBITDA reached EUR 79.3 million in the first half of 2024, up from EUR 54.9 million in the same period of 2023. This equates to an adjusted EBITDA margin of 11.0%, up from 8.9% in the same period last year. On an unadjusted basis, the Group's reported EBITDA increased from EUR 51.3 million in the first six months of 2023 to EUR 75.2 million in 2024, representing a 46.7% growth rate. This is in line with the increase in adjusted EBITDA, which grew by 44.4% compared to the previous period. In both segments, the positive EBITDA development was driven by a favorable price-volume mix, better capacity utilization and the impact of operating leverage. The two adjustments to the reported EBITDA in the first six months of 2024 were the final legal costs for the Arconic lawsuit (EUR 3.4 million) and the expenses related to the management stock option program (MSOP) (EUR 0.7 million), resulting in a total of EUR 4.1 million. Concerning trade working capital (TWC), we expect to reach significantly lower and more sustainable TWC levels across both segments by the end of 2024, as previously guided. The higher trade working capital in the period ended June 2024 (as compared to December 2023) is the result of expected higher deliveries in the second half of 2024. At the end of 2023, we had observed some delayed payments due to optimization initiatives. This will change in the future, however, as payments will be made earlier, in line with previous first quarters of the respective financial years. As net sales grew by approximately 17%, inventories increased by only around 3%, which we view as a positive indicator of our effective trade working capital management. The financial result improved from EUR -26.6 million at the end of H1 2023 to EUR -17.6 million at the end of H1 2024, positively influenced by net FX gains compared to net FX losses in H1 2023. The combination of the new syndicated loan and the use of up to EUR 250 million of cash to repay existing debt at the end of 2023 further strengthens the balance sheet and reduces interest expense during 2024. 6 INTERIM REPORT H1 2024 | MONTANA AEROSPACE AG FINANCIAL OVERVIEW Net Sales and adj. EBITDA development per segment in EURm Net Sales yoy growth Adj. EBITDA yoy growth Aerostructures Energy E-Mobility (discontinued operation) H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 332.7 409.0 282.0 311.7 90.3 80.9 +22.9% +10.5% -10.4% 37.8 63.5 13.5 18.2 4.4 0.6 +68.3% +35.1% -86.9% Segment sales and EBITDA in the first six months of 2024 showed Aerostructures and Energy as the main drivers of Montana Aerospace's business expansion. Aerostructures showed growth of +22.9% with total net sales of EUR 409.0 million, while Energy showed growth of +10.5% with total net sales of EUR 311.7 million. The Energy segment achieved an adj. EBITDA of EUR 18.2 million, an increase of +35.1% compared to end of June 2023, establishing itself as a strong growth business and reflecting the state of the market, which is shifting from a pull to a push market. Aerostructures also showed a significant improvement of +68.3% compared to the same period of the previous year and achieved an adj. EBITDA of EUR 63.5 million, despite the issues from one of the main customers Spirit AeroSystems and supply chain challenges within ASCO. Operating Result (EBIT) As a result of the strong EBITDA, the operating result (EBIT) reached EUR 28.7 million as of 30 June 2024, a considerable improvement compared to EUR 4.3 million EBIT in the first six months of 2023. Total depreciation and amortization expenses amounted to EUR 46.5 million in the first six months of 2024 compared to EUR 47.0 million in the same period of 2023. No adjustments to depreciation and amortization (impairment) were made. 7 INTERIM REPORT H1 2024 | MONTANA AEROSPACE AG FINANCIAL OVERVIEW Cash flow statement (in TEUR) Cash and cash equivalents at the beginning of the period Net cash provided / used in operating activities Net cash used in investing activities Net cash used in / from financing activities +/- effect of exchange rate fluctuations on cash held Cash and cash equivalents at the end of the period For the six months ended 30 June 2024 2023 175,252 426,215 -4,290 -36,978 -37,996 -38,339 -20,658 -45,283 -278 -740 112,030 304,875 Balance sheet (in TEUR) ASSETS Non-current assets Current assets o/w cash and cash equivalents Total Assets EQUITY AND LIABILITIES Total equity Non-current liabilities Current liabilities Total equity and liabilities 30 June 2024 1,032,717 867,821 108,893 1,900,538 912,866 534,547 453,125 1,900,538 31 December 2023 1,148,124 787,336 175,252 1,935,460 934,358 548,943 452,159 1,935,460 As of 30 June 2024, total assets amounted to EUR 1,900.5 million (31 December 2023: EUR 1,935.5 million), with total non-current assets of EUR 1,032.7 million (31 December 2023: EUR 1,148.1 million). Total non-current assets included mainly intangible assets and goodwill of EUR 283.5 million (31 December 2023: EUR 290.4 million) and property, plant, and equipment of EUR 632.4 million (31 December 2023: EUR 723.0 million). Within the total current assets of EUR 867.8 million (31 December 2023: EUR 787.3 million), inventories amounted to EUR 342.9 million (31 December 2023: EUR 334.4 million), trade receivables to EUR 170.0 million (31 December 2023: EUR 159.3 million), other receivables and assets to EUR 73.7 million (31 December 2023: EUR 83.6 million), and cash and cash equivalents to EUR 108.9 million (31 December 2023: EUR 175.3 million). Total liabilities were at EUR 987.7 million as of 30 June 2024 (31 December 2023: EUR 1,001.1 million), of which EUR 453.1 million are current liabilities (31 December 2023: EUR 452.2 million) and EUR 534.5 million are non-current liabilities (31 December 2023: EUR 548.9 million). 8 INTERIM REPORT H1 2024 | MONTANA AEROSPACE AG FINANCIAL OVERVIEW Non-current liabilities include bank loans and borrowings of EUR 297.0 million (31 December 2023: EUR 258.9 million), other financial liabilities of EUR 90.7 million (31 December 2023: EUR 95.1 million) and other liabilities and accruals of EUR 49.8 million (31 December 2023: EUR 85.1 million). Current liabilities include loans and borrowings of EUR 61.4 million (31 December 2023: EUR 82.3 million) and trade payables of EUR 218.7 million (31 December 2023: EUR 230.4 million). Total equity decreased slightly to EUR 912.9 million (31 December 2023: EUR 934.4 million) and includes EUR 921.9 million of share premium (31 December 2023: EUR 921.1 million). At 30 June 2024, Montana Aerospace's trade working capital amounted to EUR 342.2 million compared to EUR 371.8 million in Q2 2023. The main changes in the balance sheet positions are the result of presenting the previously reportable segment "E-Mobility " as a disposal group held for sale and is also classified as a discontinued operation (see note 10). 9 INTERIM REPORT H1 2024 | MONTANA AEROSPACE AG FINANCIAL OVERVIEW Supplemental financial information USAGE OF ALTERNATIVE PERFORMANCE MEASURES Montana Aerospace AG is managed in accordance with internally defined financial and non-financial key figures in the interest of achieving a sustainable increase in value. The following key financial figures are used for the purpose of value-oriented management and in the context of the H1 2024 Interim Report: Organic Growth refers to increases in Net Sales (in %) excluding any contributions from acquired companies. EBITDA refers to operating profit before interest, taxes, depreciation and amortization. Adjusted EBITDA refers to operating profit before interest, taxes, depreciation and amortization adjusted for one-off effects. Operating Cash Flow is defined as net cash used / provided in operating activities. Investing Cash Flow is defined as net cash used / provided in investing activities. Financing Cash Flow is defined as net cash used / provided in financing activities. Free Cash flow is defined as the sum of operating cash flow and investing cash flow. CAPEX (capital expenditures) refers to payments made for purchase of PPE and intangible assets. Equity Ratio refers to total equity in % of total equity and liabilities. Trade Working Capital includes trade receivables and inventories less trade payables and advances received from customers. Due to the Group's dynamic growth, the trend in the number of employees is also an important non-financial indicator. 10 INTERIM REPORT H1 2024 | MONTANA AEROSPACE AG

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