Announcements

• ElringKlinger secures contract to develop and supply battery system prototypes for Piëch Engineering AG
• Project to commence as early as end of 2021
• Initial volume in the mid-single-digit million euro range

Dettingen/Erms (Germany), December 16, 2021 +++ ElringKlinger AG has been awarded a contract by Piëch Engineering AG in the field of battery technology. As part of this contract, ElringKlinger will develop and supply prototypes of a battery system for an all-electric sports car engineered by the Swiss-German manufacturer. In addition to the battery modules, the battery units also include the battery management system. Including development, supply, and testing, the project will initially cover a volume in the mid-single-digit million euro range and is scheduled to begin as early as the end of 2021.

"The contract illustrates that ElringKlinger's innovatory and performance capabilities in the field of battery technology have become a compelling proposition. After all, Piëch places the highest demands on the fully electric drive of its vehicles, which we are able to meet with our battery solutions," says Theo Becker, Chief Technology Officer at ElringKlinger AG. "The first stages of the project are now already being implemented. Our Center of Excellence in Neuffen provides the best possible prerequisites for the project."

The Piëch battery concept is based on a pack with over 400 pouch cells, which, in combination with the control unit, forms the core element of the system. One of the technical highlights of this concept is the ability to switch the voltage from 800 V to 400 V. Thus, charging can be performed on the basis of 800 V technology, while driving operations are based on a voltage of 400 V. In addition, the innovative battery technology enables a range of 500 km at a capacity of more than 70 kWh and achieves high charging rates by reaching 80% battery capacity in under five minutes.

Piëch Automotive is a Swiss sports car manufacturer with a development center in Memmingen, Germany. Piëch's engineers rely on a flexible, modular concept for the vehicle architecture as a basis for further variants. The Piëch GT2 is scheduled to be launched in 2024 as the first vehicle in a product family of three models.

ElringKlinger has been developing and producing components for lithium-ion batteries for various hybrid- and battery-electric vehicle models for a period spanning more than ten years. The company's expertise in development and series production in the field of battery technology covers battery systems and battery modules as well as components for batteries, such as cell contact systems, module connectors, cell covers, sealing systems, and pressure equalization systems.

• Agreement signed by EKPO and DR Powertrain to establish fuel cell cooperation with focus on Chinese market
• As part of it, EKPO supplies DR Powertrain with fuel cell stacks for systems integration into automotive and non-automotive applications produced by local manufacturers
• EKPO's Chinese site in Suzhou located in close proximity to Shanghai as hub for further activities in Asia within future-oriented field of fuel cell technology

Dettingen/Erms (Germany), 8. Dezember 2021 +++ 

EKPO Fuel Cell Technologies GmbH (EKPO), the joint venture between ElringKlinger (60%) and Plastic Omnium (40%), and Chinese systems integrator DR Powertrain System Co. Ltd. have signed a partnership agreement to develop fuel cell systems equipped with EKPO stacks for automotive and non-automotive applications with a focus on Chinese market. In this context, the partnership with DR Powertrain is to be extended in the long term and targets numerous Chinese market applications. The Suzhou site, which is located in close proximity to Shanghai, provides a suitable basis for intensifying EKPO's activities in the field of engineering, testing and the production of small-scale volumes for the Asian region.

DR Powertrain is a Sino-German joint venture headquartered in Jiaxing, Zhejiang Province, China. The company focuses on fuel cell vehicles, engineering and special vehicle powertrain systems, as well as hydrogen energy storage systems. Now the status of serial production of 5 - 120kW fuel cell systems and core balance-of-plant (BOP) components has been achieved, and the products have already passed the inspection certification by Chinese authoritative testing organization. DR Powertrain has completed the development and matching of several fuel cell electric vehicle (FCEV) types with Chinese national and international first-class automobile enterprises. Meanwhile, the technical indicators of the products are in the Chinese leading level. The agreement has now been reached to provide the fuel cell systems in FCEVs at this level with technologically excellent stacks.

The EKPO stack family around the NM5 and NM12 types meets the customer's exacting standards in respect of durable, compact fuel cell stack design alongside high power density of up to 6.2 kW/l in the cell block. In addition to the comparatively low weight, the nearly 600 cells of the NM12-Twin, for example, achieve a high power spectrum of up to 205 kW in pressure mode. Furthermore, the stack design offers the best possible basis when it comes to scaling and modularization, thus allowing the end customer to design its usage application with maximum flexibility and efficiency.

In commenting on the latest deal, Julien Etienne, EKPO's Managing Director for Sales, said: "With DR Powertrain, we are pleased to have joined forces with a partner with high technology demands and broad market access. Together, we are now working towards further contracts for cars and other applications. China is an important future market for us to contribute to modern mobility with our stack technologies. The location in Suzhou is an excellent starting point for our activities in Asia, particularly in China."

Dr. Haiyu Gao, Deputy General Manager of DR Powertrain and responsible for sales, appreciated the cooperation between the two companies: "DR Powertrain and EKPO have cooperated smoothly during the development and supply of high-level passenger vehicle projects for various domestic first-class automobile enterprises, the excellent technology and product standards have been highly recognized by users. Through the cooperation with EKPO, DR Powertrain will apply new generation of system integration solutions and leverage the performance advantages of our own BOP component products. The cooperation with EKPO will enable both companies to gather stronger R&D and production capabilities, bring higher integration and cost-effective products to users, and provide timely service support."

Through its parent company ElringKlinger, EKPO has been actively pursuing fuel cell research and development for around 20 years. The compact stacks are based on proton-exchange membrane (PEM) technology and convert chemical into electrical energy using hydrogen and oxygen. EKPO offers stacks in various configurations for integration into customer systems. Stacks with peripheral components and system functionalities integrated into the media module are also available as an option. These features enable considerable simplification and cost reduction with regard to the fuel cell system. Drawing on the system solutions of its parent company Plastic Omnium, EKPO can cover the entire value chain of a hydrogen-based fuel cell drive. EKPO has an initial production capacity of up to 10,000 stacks per year, which will be gradually expanded in line with its order intake.

About EKPO Fuel Cell Technologies
EKPO Fuel Cell Technologies (EKPO), headquartered in Dettingen/Erms (Germany), is a leading joint venture in the development and large-scale production of fuel cell stacks for CO₂-neutral mobility. The company is a full-service supplier for fuel cell stacks and components used in passenger cars, light commercial vehicles, trucks, buses, as well as in train and marine applications. Within this context, the company is building on the industrialization expertise of two established international automotive suppliers - ElringKlinger and Plastic Omnium. The aim of the joint venture is to develop and mass-produce high-performance fuel cell stacks in order to further advance CO₂-neutral mobility - whether on the road, rail, water or off-road.

About DR Powertrain Systems
DR Powertrain has started to engage in the industrialization of fuel cells in China 15 years ago. DR Powertrain's industrial layout covers four major sectors, including vehicle products (sightseeing car), system products (fuel cell system and powertrain system), core components (air compressor, hydrogen supply and return assembly, etc.) and engineering service. The company has realized its "1+2+6+1 vehicle-system-component-service" business layout, completed dozens of product finalizations and vehicle matching. Through technical iterations with high-standard passenger vehicle and high-quality commercial vehicle applications, DR Powertrain has become a leading company in the fuel cell industry and has received key support from local governments. In the future, DR Powertrain will deepen promotion in the transportation field, explore multi-scenario applications such as energy storage, and actively devote itself to the Chinese "dual-carbon" plans as well as practices.

Dettingen/Erms, Fellbach, November 5, 2021 +++ ElringKlinger AG has come second in the "Material Efficiency" category of this year's Baden-Wuerttemberg Environmental Technology Award. The company was honored for "InnoCap", an innovative cap design for prismatic lithium-ion cells. The award ceremony by Sibylle Hepting-Hug, Head of the Department of Principle, Sustainability, Climate Protection, Resource Efficiency and Circular Economy at the Ministry of Environment took place yesterday evening at the Schwabenlandhalle in Fellbach. .

The Ministry of Environment, Climate and Energy Management Baden-Wuerttemberg has been awarding the Environmental Technology Prize every two years since 2009 for outstanding and innovative products in environmental technology. The prize money amounts to 100,000 euros and is divided among four categories and a special jury prize. In the categories "Energy Efficiency," "Material Efficiency," "Emission Reduction, Processing & Separation," and "Measurement and Control Technology, Industry 4.0," awards are given to products that make a significant contribution to resource efficiency and environmental protection and are about to be launched on the market or have been on the market for no longer than two years. Companies based in Baden-Wurttemberg are eligible to enter the competition.

ElringKlinger took second place in the "Material Efficiency" category. The company impressed the jury with an innovative, resource-saving lid design for prismatic lithium-ion cells, which act as energy storage devices and are usually interconnected to form modules. The new cell lid ensures that power is transmitted into and out of the cell via the cell poles. ElringKlinger is a member of the second battery IPCEI project "EuBatIn" and contributes to the establishment of a sustainable European battery value chain.

"The second place for our "InnoCap" is not only a great confirmation of the good work we have done in the Battery Technology and Electromobility business area in recent years. It is also proof of how far we have already come at ElringKlinger in terms of sustainable mobility," says CEO Dr. Stefan Wolf.

The excellent battery cell housing design makes it possible to reduce the number and complexity of components as well as the use of energy-intensive raw materials such as aluminum and copper. "We are saving up to a quarter of the components as a result. The resulting reduced manufacturing effort and material requirements mean that the CO2 footprint for this product can be reduced by around 40 percent. Likewise, due to the reduced number of components and efficient assembly, the scrap rate is significantly reduced," explains Gunnar Deichmann, Vice President Battery Technology & E-Mobility.

"I am impressed by the determination and consistency with which companies are contributing to sustainability and environmental protection with resource-efficient processes and products. With the Baden-Wuerttemberg Environmental Technology Award, we are honoring this commitment and giving companies the opportunity to present their innovative developments," explained Environment Minister Thekla Walker.

The other jurors are Prof. Dr. Thomas Hirth (Vice President for Innovation and International Affairs at the Karlsruhe Institute of Technology KIT), Prof. Dr.-Ing. Peter Elsner (Director of the Fraunhofer Institute for Chemical Technology ICT), Dr. Christian Kühne (Managing Director THINKTANK Industrial Resource Strategies), Dr.- Ing. Ursula Schließmann (Fraunhofer Institute for Interfacial Engineering and Biotechnology IGB, Head of Business Field Environmental and Climate Protection Technologies), Dr.-Ing. Hannes Spieth (Managing Director of Umwelttechnik Baden-Wuerttemberg GmbH - Landesagentur für Umwelttechnik und Ressourceneffizienz Baden-Wuerttemberg), Dr. Silke Wagener (Freudenberg Technology Innovation SE & Co. KG, Head of Technology Innovation Communication).

• Revenue up by 5.1% to EUR 401 million in third quarter of 2021 and by 18.3% to EUR 1,218 million after first nine months
• EBIT margin at 6.7% in third quarter of 2021 and 8.1% after first nine months
• Operating free cash flow again in positive territory, prompting further reduction in net financial liabilities to EUR 361 million; net debt/EBITDA now at 1.3
• Confirmation of slight upward revision of guidance in October 2021

Dettingen/Erms (Germany), November 4, 2021 +++ 

ElringKlinger AG managed to defy the general market trend within the automotive sector in the third quarter just ended: while global production output fell by around 20% according to data published by IHS, the Group saw its revenue expand by EUR 19.5 million, or 5.1%, year on year to EUR 400.6 million.

In his overall assessment, Dr. Stefan Wolf, CEO of ElringKlinger AG, takes a very positive view of the quarter just ended: "ElringKlinger can look back on an extremely encouraging quarterly performance. Despite downside market factors, we were able to increase our revenue in the third quarter. As regards our EBIT margin, we improved further compared to the previous year and again achieved positive operating cash flow, thus allowing us to further reduce our net financial liabilities. On this basis, the efficiency enhancement program being pursued for almost three years now has clearly had a very favorable impact."

Producing revenue growth of 5.1%, the third quarter contributed to a strong aggregate performance after nine months in which ElringKlinger generated sales revenue totaling EUR 1,218.2 million. As a result, the Group was up 18.3% or EUR 188.7 million on the figure posted for the same period a year ago, which had still been affected by the repercussions of the lockdown. Assuming constant exchange rates, growth would have been as high as 19.5%. The market in general, by contrast, managed to grow by just 9.5% in the first nine months of 2021 compared to the same period of the previous year.

The positive trajectory of growth was evident in the Engineered Plastics and Aftermarket segments as well as in the Original Equipment segment. In this area, growth was strong within the E-Mobility business unit, which brings together the Group's activities centered around battery technology and electric drive units in addition to fuel cell technology. The business unit managed to increase significantly its share of revenue in total Group sales from 1% in the third quarter of 2020 to 6% in the reporting period. This illustrates ElringKlinger's strong foothold in the vehicle market relying on new drive technologies, particularly as this share of revenue is further underpinned by revenues from components from the traditional business areas and lightweight structural components that are used in the series production of all-electric vehicles.

Order intake up markedly, order backlog at record level
Against the backdrop of more expansive revenue, ElringKlinger recorded consistently solid order books. After substantial growth rates in the previous quarters of 62.4% (Q1) and 123.0% (Q2), order intake in the third quarter of 2021 was also up markedly on the prior-year level with an increase of 14.8%, taking the total to EUR 486.3 million. On the back of this particularly buoyant order intake, ElringKlinger's order backlog also increased significantly. As of September 30, 2021, i.e., the end of the quarter, the Group had orders worth EUR 1,307.3 million - an increase of 7.0% compared to Q2 2021 and 34.5% compared to Q3 2020.

Significant improvement in earnings
In line with revenue growth, ElringKlinger was able to improve its earnings significantly in the reporting period. In this context, the continuation of the efficiency enhancement program, which the Group has been successfully implementing since the beginning of 2019, provided a solid foundation. Indeed, it also helped to cushion negative effects such as high commodity prices. In the third quarter, earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at EUR 55.0 million, up EUR 6.0 million, or 12.3%, on the figure for the previous year. In the first nine months of 2021, ElringKlinger managed to almost double EBITDA year on year to EUR 182.6 million (9M 2020: EUR 93.9 million).

After nine months, earnings before interest and taxes (EBIT) amounted to EUR 98.5 million, compared to EUR 2.5 million in the period from January to September 2020. In the reporting quarter, EBIT stood at EUR 27.0 million, up EUR 8.1 million on the figure posted for the third quarter of 2020. As a result, the EBIT margin was 6.7% for the third quarter of 2021 and 8.1% for the first nine months of 2021, a significant improvement compared to the prior-year levels (Q3 2020: 5.0% and 9M 2020: 0.2%).

The bottom line also includes the effects of persistently high commodity prices. As was the case over the course of the year to date, the prices of raw materials that are of particular relevance to ElringKlinger, such as steel, aluminum, and polyamides (plastic granules, also known as pellets), remain at an elevated level. In the reporting quarter, the cost of materials increased by 11.3% compared to the same quarter of the previous year. Staff costs also increased again in the third quarter of 2021 as business picked up. Staff costs in relation to Group revenue stood at 30.9%, up year on year (Q3 2020: 29.3%) but down from the previous quarters (Q1 2021: 32.0% and Q2 2021: 32.8%), partly due to the consistent implementation of the global efficiency enhancement program.

Further reduction in net financial liabilities amid consistently positive operating free cash flow
Both earnings performance and financial liabilities developed favorably over the course of the year, leading to a significant improvement in the net debt/EBITDA ratio. It stood at 1.3 at the reporting date of September 30, 2021, following 2.5 at the end of 2020 and 3.4 a year earlier. Net working capital increased in absolute terms by 4.2% to EUR 424.3 million. However, this increase was disproportionately lower than revenue growth, as a result of which net working capital as a percentage of revenue improved to 25.4% as of September 30, 2021, compared to 28.1% at the quarterly reporting date of the previous year and 27.2% at the end of 2020. In conjunction with the disciplined investment approach again taken by the Group, the third quarter also saw operating free cash flow remain in positive territory. In fact, the third quarter of 2021 contributed EUR 8.1 million to operating free cash flow of EUR 73.7 million generated in the first nine months of 2021 as a whole. As a result of this, among other aspects, the Group was able to reduce its net financial liabilities by EUR 151.6 million year on year, taking the figure to EUR 360.8 million as of September 30, 2021.

Confirmation of slight upward revision of guidance in October 2021
Based on its strong quarterly performance, ElringKlinger adjusted its forecast for the current 2021 financial year as part of the preliminary publication of its results in October 2021. In this context, it should be noted that the general market outlook deteriorated considerably in the final weeks of the quarter under review, with bottlenecks in the semiconductor industry, strains in the supply of raw materials, and elevated commodity prices taking their toll. Uncertainty relating to the stability of sales volumes as well as demand for raw materials and their availability continues. Against this backdrop, ElringKlinger now expects revenue to be several percentage points higher than the anticipated change in global light vehicle production (previously: roughly in line with the percentage change). Most recently, the industry service provider IHS estimated global production growth of 1.6 % for 2021 compared to the previous year and has since revised this slightly downwards to 0.3%. As regards earnings, the Group expects an EBIT margin of around 6% (previously: around 5 to 6%), having taken into account the site optimizations planned within the Shielding Technology unit. The Group's projections for its other key performance indicators remain unchanged for the annual period as a whole. The Group has also confirmed its medium-term targets.

Key financials for the third quarter and the first nine months of 2021

Differences due to rounding
¹ Payments for investments
² Figure adjusted, as working students and vocational trainees are no longer included as from 2021

Dettingen/Erms (Deutschland), 28. Oktober 2021 +++ The automotive industry is undergoing profound changes as part of the process of transformation in the field of mobility. Committed to successfully meeting the challenges of change in the future, too, the Group aims to pool forces within the Shielding Technology unit as part of strategic efforts and optimize its site structure in this area. To this end, the plan is to gradually discontinue production activities at the Langenzenn site and to cover the plant's ongoing projects via other entities operating in this business unit.

The automotive industry is currently undergoing a process of far-reaching transformation. In order to reduce CO2 emissions in the field of mobility and to meet increasingly strict regulatory requirements, car makers are launching more and more hybrid and all-electric vehicles. This trend affects ElringKlinger in the area of near-engine shielding parts and heat shields fitted around the exhaust tract. At the same time, production figures for battery and fuel cell vehicles are expected to be higher in the coming years than estimated in the past. This process of transition has been further accelerated as a result of the coronavirus pandemic, and the overall volume of demand relating to classic drive technologies has dipped to a greater extent than originally expected. This, too, explains the more pronounced levels of competition now seen in the field of shielding technology.

Against this background, forces within the Shielding Technology unit are to be pooled and capacities consolidated. This includes optimizing the site structure of this business unit and implementing continuous improvement measures in order to avoid inefficiencies associated with changing conditions and to utilize capacities more effectively. The Group's goal is to further improve the competitiveness of its Shielding Technology unit and to be in a position in which it can offer its customers high-end solutions tailored to their needs well into the future.

In the context of these comprehensive plans, ElringKlinger intends to gradually discontinue significant parts of its operations at the Langenzenn site. This applies in particular to the various production areas and supporting units. In addition, research and development activities are to be continued in close proximity to this site. Based on current considerations, the measures planned for this site can commence in the third quarter of 2022.

The Langenzenn site currently employs about 200 people, around 20% of whom work in research and development.