Announcements

• Organic revenue growth of 10.1% to EUR 1,624 million in 2021
• EBIT at EUR 102.0 million; EBIT margin at 6.3%, up on prior-year level of 1.9%
• Operating free cash flow again well into positive territory at EUR 72.0 million
• Net financial liabilities scaled down by a further EUR 90 million in 2021; net debt/EBITDA at 1.7

Dettingen/Erms (Germany), February 25, 2022 +++ Based on preliminary, unaudited figures for 2021, ElringKlinger AG put in a successful performance in the financial year just ended. Compared to the previous year, the Group managed to lift revenue by 9.7% to EUR 1,624.4 million. Assuming constant exchange rates, revenue growth in the last twelve months amounted to EUR 150.2 million or 10.1%. According to the data service IHS, global automobile production expanded by 3.4% in the same period. The key contributors to the Group's revenue growth at a regional level were the Rest of Europe (EUR +65.4 million) and Asia-Pacific (EUR +50.6 million), but also North America (EUR +26.0 million), while revenue generated in Germany was down slightly at EUR -8.9 million.

The efficiency enhancement program that ElringKlinger has been pursuing since 2019 was again reflected in improved earnings in the financial year just ended. The Group recorded earnings before interest and taxes (EBIT) of EUR 102.0 million (2020: EUR 27.7 million), which corresponds to a margin of 6.3% (2020: 1.9%). The EBIT margin was thus at the upper end of the Group's guidance range - raised in October 2021 - of around 6% for the financial year. Alongside non-cash impairments, the previous year's final quarter had included the recognition of proceeds from a fuel cell partnership of around EUR 25 million.

Dr. Stefan Wolf, CEO of ElringKlinger AG, commented: "We are very satisfied with the 2021 financial year. Despite difficult underlying conditions such as semiconductor bottlenecks, supply chain problems, raw material shortages, and the coronavirus pandemic, we again significantly outpaced market growth in terms of revenue. Our earnings performance improved markedly, with an EBIT margin of 6.3%. Overall, we have thus fully achieved the goals of our three-year Management Board program - and even exceeded them in many areas. ElringKlinger is strongly positioned for the next stage of transformation that is now coming up."

The Management Board implemented the global efficiency enhancement program with the aim of strengthening profitability, consistently improving cash flow, and significantly reducing net financial liabilities. After a further reduction of EUR 90 million in 2021, the net debt ratio, i.e., net financial liabilities in relation to EBITDA, was 1.7 at the end of the financial year. This figure had been as high as 4.7 when the program was initiated in the first quarter of 2019.

In addition, numerous measures were implemented for the purpose of streamlining costs, optimizing net working capital, and ensuring the consistent generation of operating free cash flow, which amounted to EUR 72.0 million in the financial year just ended. At the same time, the Group continued to pursue a disciplined and focused investment approach, investing 4.3% of revenue in 2021 (2020: 3.9%) primarily in new drive technologies and lightweighting. In total, the Group has generated operating free cash flow of EUR 412.5 million over the last three years and more than halved net financial debt from EUR 795.5 million as of March 31, 2019, to EUR 369.2 million at the end of 2021.

The Group will present its full, audited results for the financial year just ended as well as its outlook for the current financial year as part of its 2021 annual report to be published on March 29, 2022.

Preliminary, unaudited figures for FY 2021 and Q4 2021

• Armin Diez, formerly one of the three General Managers at EKPO Fuel Cell Technologies, left the company at his own request and for personal reasons as of December 31, 2021
• Stefan Schmid, Chairman of the Management Board at ElringKlinger Kunststofftechnik GmbH, was appointed as his successor effective from February 1, 2022
• Following the appointment of Stefan Schmid, the EKPO board of management that includes the two other general managers Dr. Gernot Stellberger and Julien Etienne is once again complete

Dettingen/Erms (Germany), February 21, 2022 +++ After more than 30 years with the ElringKlinger Group and on the board of management of EKPO Fuel Cell Technologies GmbH (EKPO), Armin Diez left the company at his own request and for personal reasons as of December 31, 2021. Having joined the ElringKlinger Group in 1990, he managed the Research and Development department of the Cylinder-head Gaskets division from 1999 onward. In 2005, he was appointed head of this division, while also assuming responsibility for Battery Technology as from 2011. In 2016, he was also entrusted with the management of the Fuel Cell Technology division, while relinquishing responsibility for the Cylinder-head Gaskets division. Upon the inception of EKPO in March 2021, he became one of three general managers of this entity.

Dr. Stefan Wolf, Chairman of the Supervisory Board of EKPO, said: "I would like to express my tremendous gratitude and appreciation to Armin Diez for his many years of commitment and his exceptional accomplishments. He brought his extensive knowledge and experience to bear in spearheading ElringKlinger's fundamental advances in battery technology and its fuel cell business. Most recently, he played a pivotal role during the founding stages of EKPO Fuel Cell Technologies in his capacity as General Manager. At the same time, I am delighted that we have found an experienced successor in Stefan Schmid, who leads ElringKlinger Kunststofftechnik in a highly accomplished manner as Chairman of the Management Board. With Stefan Schmid succeeding Armin Diez, EKPO continues to be very well positioned as it pursues its ambitions of further industrialization and the sustained cultivation of the global fuel cell market."

Stefan Schmid, born in 1965, can draw on many years of management experience and has been with the ElringKlinger Group since 2003. Having initially overseen production in what is now the Lightweighting/Elastomer Technology business unit, the qualified chemical engineer took over as Chairman of the Management Board of ElringKlinger Kunststofftechnik GmbH in 2012, where he is responsible for Production, IT, and Human Resources. During this time, the Stuttgart-born manager succeeded in expanding the Group's high-growth plastics business at a global level and implemented industrial-scale production both domestically and internationally.

The area of responsibility of Stefan Schmid, who took up his new post at EKPO on February 1, 2022, includes Production and IT as well as Quality and Sustainability Management. He thus joins the executive management team consisting of Dr. Gernot Stellberger, who is responsible for Strategy, Finance, Purchasing, Human Resources, and Advanced Development, and Julien Etienne, who oversees Sales, Marketing, Programs, and Product Engineering.

• Another order from Aerostack GmbH, the joint venture of Airbus and ElringKlinger, to further develop fuel cell technology
• Contract covers development services as well as delivery of stack components and prototypes
• With its benchmark performance characteristics, EKPO's NM12 stack technology serves as the baseline platform for the development of bespoke aerospace products

Dettingen/Erms (Germany), February 3, 2022 +++ EKPO Fuel Cell Technologies GmbH (EKPO) has received another large order from Aerostack GmbH, the joint venture of Airbus and ElringKlinger. As a follow-up order to the successful cooperation to date, this contract confirms EKPO as a significant development partner. Over the next two years, EKPO will provide development services and deliver fuel cell stacks optimized for aerospace applications. The stacks, based on the NM12 platform, will be integrated into the customer's further development, aiming to use fuel cell power for the commercial aerospace sector.

Julien Etienne, Chief Commercial Officer of EKPO, comments: "This order and the entire partnership with Aerostack demonstrate not only the wide range of applications of fuel cells, but also the technological leadership of EKPO. As the logical next step in our cooperation with Aerostack, we will provide stack components, prototypes and industrial development services to optimize the performance of Aerostack's first stack generation. Through this project, EKPO will further expand its unique know-how in key components, such as the bipolar plates and sealing technology. In return, this innovation will flow into our next generation of stacks, allowing us to bring even more attractive and performant products to market in the future."

The NM12 stack family is the most powerful of EKPO's portfolio with an output of up to 205 kWel and benchmark power density of above 6.0 kW/l. The scalable and modular stack design offers the best possible basis to suit a wide range of applications with maximum flexibility and efficiency. This platform was the ideal starting point to address the unique performance expectations of aviation.

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 already installed in its Dettingen/Erms plant, and which will be gradually expanded in line with its order intake.

• 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.