Announcements

Dettingen/Erms, July 26, 2022 +++ ElringKlinger AG has honored its best supplier of the past year in the category "Raw Materials". The Turkish company ASAŞ Alüminyum Sanayi Ve Ticaret A.Ş. was convincing with an excellent performance during the whole year 2021. The award ceremony took place at ASAŞ's main manufacturing site in Sakarya, Turkey.

ASAŞ is a company that is involved in the manufacturing of flat rolled aluminum products. The business relationship with ElringKlinger has been initiated about 5 years ago and has been increasing significantly with higher volumes in the past two years.

The supplier was able to impress in 2021 with an overall supplier rating of 97 percent.

"This award honors the excellent performance of the whole ASAŞ team and especially all their employees in the operations. The company is a perfect example to show that even in a challenging environment an outstanding delivery performance is possible. ASAŞ was showing high flexibility in terms of demands and was able to deliver the required quantities on time and even without any quality complaint. This in combination with the cooperative manner and the focus on our requirements of innovation and sustainability. That’s what we are expecting from our strategic partners like ASAŞ." says Pascal Stoll, Vice President Purchasing, describing the business relationship during the award ceremony.

ElringKlinger has long honored its best suppliers. The decisive factor for nomination is the assessment of various performance criteria by different company departments such as Quality Management, Supply Chain management and Purchasing. In total, ElringKlinger is supplied by over 1,000 companies which have the chance to win this award.

Dettingen/Erms (Germany), July 8, 2022 +++ ElringKlinger AG (ISIN DE0007856023 / WKN 785602) conducted an ad hoc review of the Group's business prospects in light of the significant rise in interest rates in the second quarter of 2022. This prompted a non-cash impairment of goodwill recognized in the consolidated statement of financial position with regard to the Original Equipment segment. It amounted to EUR 86.1 million, which had an impact on the Group's earnings in the second quarter of 2022.

The adjustment of goodwill is attributable to several factors. The general increase in interest rates led to a change in the post-tax cost of capital rate used to discount goodwill to 7.40% as of June 30, 2022 (December 31, 2021: 6.99%). In addition, an increase in working capital and the direction taken by exchange rates were factors prompting an expansion in total assets at Group level. As part of the ad hoc impairment test, the recoverable amount determined in this case was below its carrying amount. This resulted in an impairment loss of EUR 86.1 million in the Original Equipment segment, which was recognized in other operating expenses in the reporting period.

Based on preliminary figures, the ElringKlinger Group generated revenues of EUR 430.6 million in the second quarter of 2022 (Q2 2021: EUR 393.6 million) and earnings before interest and taxes (EBIT) of EUR -97.0 million (Q2 2021: EUR 23.0 million). It should be noted that, in addition to the adjustment of goodwill, impairments in property, plant, and equipment also led to higher cost of sales. Excluding the aforementioned impairments, EBIT before interest and taxes came to EUR -1.6 million in the reporting quarter.

The persistently difficult economic conditions also had an impact on earnings. This was due in particular to the sharp rise in the cost of energy, raw materials, and transportation, which have been thrown into disarray by a variety of factors such as the coronavirus pandemic, the ongoing war in Ukraine, and logistical challenges. Due to this, stockpiling is also being adjusted as appropriate to ensure the availability of production materials.

From the Management Board's perspective, in addition to the impairments described above, the aforementioned macroeconomic factors will continue to impact the earnings performance of ElringKlinger AG over the year as a whole. Due to the existing risks associated with the war in Ukraine, the sharp rise in energy and commodity prices, as well as potential renewed coronavirus-related lockdowns in China and other regions, it is still not possible to reliably assess the impact on Group revenues and earnings.

The Group will publish its full financial figures for the second quarter of 2022 on August 4, 2022.

Disclaimer
This release contains forward-looking statements. These statements are based on expectations, market evaluations and forecasts by the Management Board and on information currently available to them. In particular, the forward-looking statements shall not be interpreted as a guarantee that the future events and results to which they refer will actually materialize. Whilst the Management Board is confident that the statements as well as the opinions and expectations on which they are based are realistic, the aforementioned statements rely on assumptions that may conceivably prove to be incorrect. Future results and circumstances depend on a multitude of factors, risks and imponderables that can alter the expectations and judgments that have been expressed. These factors include, for example, changes to the general economic and business situation, variations of exchange rates and interest rates, poor acceptance of new products and services, and changes to business strategy.

• Supply of battery systems for protoypes of a grid-autonomous fast-charging station developed by industry specialist Schäfer Elektronik GmbH
• Purchase order includes 35 kWh battery packs at a voltage of up to 800 V
• Wide range of potential applications thanks to ElringKlinger's proven track record in battery technology

Dettingen/Erms (Germany), May 30, 2022 +++ New forms of drive technology are making a significant contribution to sustainable mobility. Given the sizeable increase in the number of electric vehicles, however, the sector as a whole is faced with the challenge of expanding its charging infrastructure. Schaefer-e-Solutions has developed a grid-autonomous fast-charging station to meet more buoyant demand within this area. The system represents a pioneering solution designed in particular for locations with low levels of grid connection or without any grid connection whatsoever. The modular battery packs engineered by ElringKlinger boast high-end performance characteristics for this field of application and provide the basis for ultra-fast vehicle charging. The charging stations are to be powered by battery packs with a capacity of 35 kWh at a voltage of up to 800 V.

"Drawing on many years of experience in battery technology, ElringKlinger has acquired extensive expertise in this line of business. We are now in a position to exploit this know-how in various areas of application, as this contract illustrates," says Thomas Jessulat, the Management Board member responsible for the Battery Technology unit at ElringKlinger AG. "The quality of our battery packs proved to be a compelling proposition for Schaefer-e-Solutions, allowing us to add an innovative provider of fast-charging solutions to our list of customers. In addition to performance, the modular design of our EK-X units is to be seen as a decisive advantage here and paves the way for a wide range of applications in different storage sizes."

The modular high-performance charging station developed by Schaefer-e-Solutions is grid-autonomous due to the optional supply of energy via a hydrogen-powered fuel cell. Therefore, it is the perfect choice for critical infrastructures where the power grid is not available or underdeveloped. Thus, complex and expensive grid expansion can be avoided. The system is designed as a grid-autonomous charging station and thus enables simultaneous fast charging of two cars or a bus. The Schaefer-e-Solutions system is developed and manufactured entirely in Germany.

Drawing on ten years' experience as a series supplier in the field of battery technology, ElringKlinger offers both components and complete systems. Its portfolio encompasses battery systems, battery modules, and components for batteries such as cell contact systems, module connectors, cell covers, and sealing and pressure equalization systems. Having steadily expanded its simulation, tooling, and process expertise in the area of battery technology, the company is now also attracting more and more customers outside of the automotive industry.

• 63.5 % of voting share capital represented at meeting
• Proposed resolutions approved by large majority in each case
• Total dividend payout of EUR 9.5 million confirmed, equivalent to a dividend of EUR 0.15 per share
• CEO Dr. Stefan Wolf looks back on financial year that was successful overall amid difficult conditions

Dettingen/Erms (Germany), May 19, 2022 +++ At today's 117th Annual General Meeting the shareholders of ElringKlinger AG approved all items on the agenda by a large majority. The event was again held in a virtual format. In consultation with the Supervisory Board, the Management Board had decided in favor of this approach at the beginning of February, given the heightened levels of uncertainty as to whether and how an in-person event could be held against the backdrop of the pandemic. 63.5 % of the voting share capital was represented at the Annual General Meeting.

In addition to the presentation of ElringKlinger's approved annual financial statements, the agenda also included a replacement election to the Supervisory Board. The proposal submitted by the Supervisory Board for the election of Ingeborg Guggolz as a shareholder representative onto the Supervisory Board of ElringKlinger AG was approved by a clear majority. The previous Supervisory Board member Rita Forst had resigned from her post effective from May 19, 2022.

In view of the distributable profit generated by ElringKlinger, the company was in a position to pay a dividend again in respect of the financial year just ended. The Management Board and the Supervisory Board had jointly decided to take a balanced approach with regard to the company's dividend policy. While shareholders are to benefit from the company's profitability, there is also a commitment to further strengthening ElringKlinger AG's position in support of the far-reaching process of transformation within the industry. The proposed dividend of EUR 0.15 per share was approved by a large majority of 99.9%.

The other proposals for resolutions put to the vote were also adopted by a large majority of the shareholders. In addition, the Annual General Meeting approved the actions of the Management Board and the Supervisory Board with 99.2 or rather 96.5 % of the votes and approved the compensation report. Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft, Stuttgart, was appointed as auditor. Furthermore, the creation of new Authorized Capital, including the authorization to exclude subscription rights and an amendment to the Articles of Association, was approved with 92.8 % of the votes.

2021 financial year
In his speech, CEO Dr. Stefan Wolf looked back on a financial year that was considered successful overall: "Fiscal 2021 was dominated by shortages of raw materials, disrupted supply chains, availability constraints with regard to semiconductors, and the repercussions of the coronavirus pandemic. Taking these underlying conditions into account, our performance was more than satisfactory in 2021. Despite the external adversities outlined above, we were able to increase revenue by 9.7% to EUR 1,624 million. Organically, growth was actually in excess of 10%. Compared to the direction taken by global car production, which saw a change of 3.5%, our revenue growth can be considered very solid. In a nutshell: ElringKlinger's products are in demand around the globe."

Complex situation in the short term – strong position in the long term
Looking to the future of the Group, the CEO highlighted a number of major milestones achieved in 2021, particularly in the area of new drive technologies. On March 1, 2021, for instance, EKPO Fuel Cell Technologies GmbH (EKPO) commenced operations at the Group's headquarters in Dettingen/Erms, the aim being to unlock the market's significant potential for fuel cell components and stacks. In addition, Battery Technology moved into its new premises at the center of excellence in Neuffen. Dr. Wolf also noted that several high-volume orders in the rapidly expanding E-Mobility business unit had cemented the company's position as a series supplier and system provider.

With regard to the current financial year, Dr. Wolf pointed to the significant uncertainties still remaining: "Given the fact that the present situation is challenging, difficult to gauge, and at the same time complex, we will have to take a safe and targeted approach when it comes to navigating through this environment in the short term. The armed conflict between Russia and Ukraine continues. As evidenced by developments in China, the pandemic is far from over. Supply chain bottlenecks have led to spiraling prices. Commodity prices continue to rise, as do transport and energy costs." At the same time, ElringKlinger's CEO took a confident stance with regard to the company's medium and long-term future: "Despite all the risks, we remain on course when it comes to pursuing the considerable opportunities that lie ahead. The process of transformation in the automotive sector is entering the next phase, and ElringKlinger is very well positioned in this respect."

A detailed summary of the individual voting results and a transcript of the speech given by the CEO can be found on the homepage of ElringKlinger AG (www.elringklinger.de) – in the Investor Relations section under the heading "Annual General Meeting."