Announcements

• Order for metal battery housing assemblies placed by major global battery manufacturer 
• Global vehicle manufacturer as end customer
• SOP at Hungarian plant scheduled for 2023
• Extensive expertise in stamping and forming technology applied to new applications

Dettingen/Erms (Germany) +++ ElringKlinger AG has received an order for metal battery housing assemblies from a major global battery manufacturer whose systems are destined for the battery platform of a global vehicle maker. Series production at the ElringKlinger plant in Hungary is scheduled to commence before the end of 2023. 

Asked to comment, Dr. Stefan Wolf, Chairman of the Management Board of ElringKlinger AG reaffirmed: "ElringKlinger is geared up for the transformation of the mobility market. Established over the course of several decades, our know-how in stamping and forming technology provides the basis for our competitive offering centered around innovative components for battery housings. This order is a prime example. In addition, we have again been able to expand our customer base to include a global battery manufacturer who is currently setting up production in Europe."

The series production order covers several stamped, assembled, and specially coated sheet metal components that are installed as adapters between the battery housing and the battery's degassing valve. The tools required for the associated processes are designed and produced by the Group's in-house toolmaking department.

The order placed by the major battery manufacturer is worth several million euros and covers a period up to 2030; it is to be executed at ElringKlinger's plant in Kecskemét, Hungary. As a global technology group, ElringKlinger operates plants at all major automotive locations for the purpose of supplying customers locally.

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 a decade. 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 elements.

• 73.2% of voting share capital represented at Annual General Meeting
• Proposal for unchanged dividend payment of EUR 0.15 per share approved
• Other proposed resolutions each adopted by a large majority
• CEO Dr. Stefan Wolf: "Against the backdrop of difficult and challenging conditions, ElringKlinger can look back on a financial year that proved encouraging overall from an operational perspective. Our course has also been clearly charted with regard to successfully completing the next stages of the transformation process."

Dettingen/Erms (Germany), May 16, 2023 +++ At today's 118th Annual General Meeting the shareholders of ElringKlinger AG approved all items on the agenda by a large majority. The event was held in a virtual format. The decision to do so was made by the Management Board of ElringKlinger AG at the beginning of the year with the approval of the Supervisory Board. It is to be seen primarily within the context of the sustainability of corporate events and as an acknowledgement of the more flexible options for participation open to domestic and foreign shareholders. In total, 73.2% of the voting share capital was represented at the Annual General Meeting.

In view of the fact that earnings were adversely affected by exceptional items and that a further positive trajectory of bottom-line results is expected for the Group in the future, the Management Board and the Supervisory Board had jointly decided to ensure dividend continuity and proposed to the Annual General Meeting a distribution of EUR 0.15 per share, which is unchanged year on year. Based on a large majority of 99.7%, this proposal was approved by the Annual General Meeting.

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 99.6% and 96.9% of the votes and approved the compensation report. Deloitte GmbH Wirtschaftsprüfungsgesellschaft, Stuttgart, was appointed as the auditor for the current financial year.

In his speech, CEO Dr. Stefan Wolf took stock of a financial year that was encouraging overall amid major challenges: "Against the backdrop of difficult, challenging conditions, ElringKlinger can look back on a financial year that proved encouraging overall from an operational perspective, but we are by no means content with this." He added that the course had also been clearly charted with regard to successfully completing the next stages of the transformation process.

As regards the far-reaching scope of transformation, the CEO emphasized the Group's early strategic focus. As Dr. Wolf pointed out, "ElringKlinger prepared for change at an early stage and took the right steps in good time." He went on to explain that the Group had aligned itself with this transformation to an even greater extent in recent years. Dr. Wolf continued, "We have taken the first step and can offer a wide range of products for today's and tomorrow's world of mobility. At the same time, we have already secured substantial contracts that will shape the Group's transition and growth in the new fields of technology over the coming years."

As regards the current financial year, Dr. Wolf looked ahead with confidence despite the persistent challenges within the economic arena as a whole. Revenue growth is expected to be substantially higher than that generated by the global vehicle market in terms of production output, while earnings are set to improve.

Klaus Eberhardt, Chairman of the Supervisory Board of ElringKlinger AG, concluded his report by thanking the outgoing CEO for his many years of service. At the beginning of April, the Supervisory Board and Dr. Wolf had agreed by mutual consent to terminate Dr. Wolf's contract as of June 30, 2023. In addition, Eberhardt emphasized that the succession process had been initiated immediately and that information would be provided as soon as a solution had been found. In the meantime, the business will continue to be managed by the two board members Thomas Jessulat and Reiner Drews as from July 1, 2023. Dr. Wolf's duties will be performed on an interim basis by Thomas Jessulat, Chief Financial Officer of ElringKlinger AG. Jessulat will also temporarily assume the role of Spokesperson of the Management Board.

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."

Dettingen/Erms, May 11, 2023 +++ Carole Brinati has joined the executive team of EKPO Fuel Cell Technologies GmbH (EKPO), taking up her new role with effect from March 1, 2023. She succeeds Julien Etienne, who decided to leave the company end of 2022.

Carole Brinati can draw on many years of managerial experience and has been with EKPO's French parent company, Plastic Omnium, since 2001. She holds a Master's degree in Chemistry and an MBA from IAE University of Caen. She began her professional career in various roles centered around purchasing. Having held management positions in France, North America, and Asia, she moved to sales, an area in which she was responsible for major international OEMs. In her most recent position as Director Sales and Programs at Plastic Omnium Automotive Exteriors in Munich, she oversaw business dealings with Mercedes-Benz.

Carole Brinati's responsibilities include Sales, Marketing, and Programs at EKPO. She thus joins the executive team consisting of Dr. Gernot Stellberger, who is responsible for Strategy, Finance, Purchasing, Human Resources, and Advanced Development, and Stefan Schmid, who oversees Production, Product Engineering, IT, and Quality and Sustainability Management.

• Group revenue up substantially by EUR 53.1 million or 12.2% to EUR 487.7 million in first quarter of 2023 (Q1 2022: EUR 434.6 million)
• Year-on-year improvement in adjusted EBIT at EUR 26.4 million and adjusted EBIT margin at 5.4% (Q1 2022: EUR 15.0 million and 3.5 %)
• Solid financial position and cash flows: equity ratio of 44.4%, net financial liabilities down year on year at EUR 372.3 million (Q1 2022: EUR 387.4 million) 

Dettingen/Erms (Germany), May 9, 2023 +++ ElringKlinger AG (ISIN DE 0007856023 / WKN 785602) has published its results for the first quarter of 2023. The Group generated revenue of EUR 487.7 million (Q1 2022: EUR 434.6 million), which represents a year-on-year increase of 12.2%. The effects of currency translation were negligible at EUR 0.4 million or 0.1%.

Commenting on the quarterly results, Dr. Stefan Wolf, CEO of ElringKlinger AG, said, "We are delighted to have once again generated record sales revenue in the first three months of 2023. At the same time, we managed to increase the Group's EBIT and EBIT margin despite the economic challenges and persistently high commodity prices. ElringKlinger is right on track with its determined and early focus on electromobility, underpinned by a strong position in its long-standing fields of business. This is illustrated not least by the high-volume order placed by the BMW Group for cell contact systems, as announced at the end of last week."

Strong revenue growth in Europe and North America
Revenue expanded significantly in the first quarter of 2023, particularly in the two strongest sales regions of the Group. The Rest of Europe accounted for growth of 18.3%, which was in excess of the Group average of 12.2%. Revenue in this region increased by EUR 24.6 million to EUR 159.1 million (Q1 2022: EUR 134.5 million). The region encompassing North America saw revenue grow by 23.1% or EUR 24.0 million to EUR 127.7 million in the first quarter of 2023 (Q1 2022: EUR 103.7 million). Revenue also trended higher in Germany, up by EUR 6.6 million or 7.3% to EUR 97.2 million (Q1 2022: EUR 90.6 million).

Adjusted EBIT margin at 5.4%
Against the backdrop of buoyant revenue growth and elevated material prices in the first quarter of 2023, the Group managed to propel earnings before interest, taxes, depreciation, and amortization (EBITDA) by EUR 10.8 million to EUR 53.6 million (Q1 2022: EUR 42.8 million). At EUR 27.5 million, depreciation and amortization were slightly below the previous year's level (Q1 2022: EUR 28.6 million). In total, the Group generated adjusted earnings before interest and taxes (adjusted EBIT) of EUR 26.4 million (Q1 2022: EUR 15.0 million), which corresponds to an adjusted EBIT margin of 5.4% (Q1 2022: 3.5%).

Equity ratio remains stable within target range of 40 to 50%, net financial liabilities down
The ElringKlinger Group's financial position and cash flows remained solid at the end of the first quarter of 2023. At the end of the quarter, the Group's equity ratio stood at 44.4% (Dec. 31, 2022: 43.8 %) and net financial liabilities at EUR 372.3 million. The latter were thus below the comparable figure of EUR 387.4 million posted for the same quarter last year. The net debt ratio (net financial liabilities in relation to EBITDA) was scaled back from 2.1 to 2.0. As regards cash flows in the first quarter, the substantial funds committed to net working capital in particular resulted in negative operating free cash flow of EUR -20.3 million (Q1 2022: EUR -19.8 million).

Net working capital influenced by several factors
The ElringKlinger Group saw net working capital increase to EUR 518.5 million at the end of the quarter under review, up from EUR 454.7 million at the end of 2022 and up from EUR 449.2 million twelve months earlier. The expansion in net working capital was driven by several factors. The noticeable upturn in revenue in the first quarter led to higher trade receivables. As of March 31, 2023, the latter amounted to EUR 291.5 million (Dec. 31, 2022: EUR 264.9 million). In addition, persistently high material prices and tensions still afflicting some of the procurement markets, coupled with solid order books and factors relating to upcoming series production ramp-ups, propelled inventories upward to EUR 435.9 million (Dec. 31, 2022: EUR 414.0 million). Trade payables, which have a dilutive effect on net working capital, totaled EUR 209,0 million as of the quarter-end (Dec. 31, 2022: EUR 224,1 milion).

Slight increase in headcount
Whereas the ElringKlinger Group employed 9,396 people at the end of the first quarter of 2022, this figure had risen by 2.5% to 9,635 by March 31, 2023. In particular, the Group expanded its workforce in Asia-Pacific and Germany. In Germany, upstaffing was centered around fuel cell technology, an area of strategic importance to the future.

Guidance for 2023 confirmed
Confirming its guidance for the current 2023 financial year, the Group continues to expect organic revenue growth to be substantially above the global market level. According to its latest projections, industry service provider S&P Global Mobility estimates that global light vehicle production will expand by 3.8% in 2023. In addition, ElringKlinger expects to further improve its earnings situation in the current financial year thanks to its strict cost discipline and the anticipated increase in revenue. Overall, the Group is forecasting adjusted EBIT of around 5% of its revenue for 2023.

Medium-term forecast
ElringKlinger considers itself to be in an excellent strategic position in the medium and long term. The company was quick off the mark in its efforts to structure its product portfolio in line with the transition toward electromobility and can also build on a first-class market position in its long-standing fields of business. In the medium term, the Group anticipates disproportionately high organic growth compared to global automotive production levels and continues to expect to improve its adjusted EBIT margin gradually over this period.

Key financials for Q1 2023

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.

• High-volume order for E-Mobility business unit covering period of several years
• Supply of cell contact systems of the latest generation for BMW Group's "NEUE KLASSE"
• ElringKlinger to invest an amount in the double-digit million euro range in new production machinery and infrastructure measures by the start of production in 2025

Dettingen/Erms (Germany), May 05, 2023 +++ ElringKlinger AG, a leading automotive supplier with a global presence and a broad range of products tailored to the e-mobility market, has been awarded a new high-volume series production contract covering a period of several years. Headquartered in Dettingen/Erms, Germany, ElringKlinger will supply the BMW Group with cell contact systems for the new series of "NEUE KLASSE" electric models.

Asked to comment, Dr. Stefan Wolf, CEO of ElringKlinger AG, said, "We are delighted to have been awarded this contract, which marks another milestone on the road to transformation for ElringKlinger. It will contribute toward propelling revenue beyond the EUR 3 billion mark in 2030. It is orders like these in the areas of electromobility and lightweighting, our strategic fields of the future, that will help us in our pursuit of profitable growth until the end of the decade."

In securing this contract, the E-Mobility business unit has won another high-volume series production order for battery components. As Jürgen Weingärtner, Senior Vice President Electric Drive and Battery Technology, explains, "Our cell contact system meets the most exacting standards in respect of technology and quality. The development and production process for cell contact systems is based on ElringKlinger's core capabilities, and it is precisely this aspect that allows us to achieve a high proportion of value creation within the Group itself. Overall, the order bears testimony to ElringKlinger's extensive expertise in battery technology."

Cell contact systems form an integral part of ElringKlinger's broad product portfolio for the next generation of mobility and have been in series production for more than ten years. They are precisely tailored to customer requirements and are fitted directly onto the cell combination. In addition to performing the functional tasks of voltage tapping, they also include voltage and temperature sensors, thus boasting a high degree of integration.

The machinery used in the series production of cell contact systems is fully automated and all processes are set up to meet the latest standards. The European start of production (SOP) for this order is scheduled for 2025 in Neuffen, Baden-Württemberg. This is to be followed by production and delivery for the Asian market. In the run-up to SOP, ElringKlinger will invest an amount in the double-digit million euro range in new production machinery and infrastructure measures.