Announcements

• 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.

Dettingen/Erms, Germany, Chicago, USA, October 25, 2021 +++ ElringKlinger has won "The Coolest German Thing Made in the USA" award which was established by the German-American Chambers of Commerce (GACCs). The company's cockpit cross car beam was able to succeed against renowned competition. The award ceremony took place as part of the German American Business Awards on October 22 in Chicago, Illinois.

The award highlights the development and manufacturing of unique German products made in the USA. ElringKlinger came out on top against 9 competitors. The company was chosen by a public online voting and convinced with an innovative lightweight component for vehicle bodies, the cockpit cross-car beam. This combines maximum functionality with minimum weight. It accommodates instrument panel, steering column, heating and ventilation modules, airbags, glove box, center console and other fittings and connects them securely to the car bodywork.

Dr. Stefan Wolf, CEO of ElringKlinger AG, said: “The fact that our cockpit cross-car beam is "The Coolest German Thing Made in the USA" makes us proud and shows how innovative this product is. We deliver real added value with it. It's impressive that we were able to beat well-known competitors, which is a testament to our technology and processes.”

Long-standing operations in the US
ElringKlinger became active in the USA in 1994 with the establishment of a sales subsidiary. In 1997, the company set up a production facility for shielding components. Since then, ElringKlinger has continued to grow. The USA is part of ElringKlinger's success story. The company is now represented at 6 locations here - in Fort Wayne, Indiana, Fremont, California, Southfield and Plymouth, Michigan, Buford, Georgia and San Antonio, Texas - Cockpit cross car beams are also produced here. A corresponding plant is currently being built.

Dettingen/Erms (Germany), October 12, 2021 +++ Based on its preliminary results, ElringKlinger AG (ISIN DE 0007856023 / WKN 785602) posted strong year-on-year growth in the third quarter of 2021. At EUR 400.6 million, the Group saw revenue expand by EUR 19.5 million or 5.1% compared to the figure recorded in the period from July to September 2020. Earnings before interest and taxes, standing at EUR 27.0 million, were also up significantly on the prior-year level, rising by EUR 8.1 million or 42.9%. This corresponds to an EBIT margin of 6.7%.

The performance outlined above similarly applies to the nine-month period: with revenues of EUR 1,218.2 million, revenue increased by EUR 188.6 million or 18.3% compared to the same period last year (9M 2020: EUR 1,029.6 million). This resulted in EBIT of EUR 98.5 million, after EUR 2.5 million in the first nine months of the previous year. The EBIT margin for the current financial year thus stands at 8.1% (9M 2020: 0.2%).

The Group's operating free cash flow in Q3 2021 also remained in positive territory at EUR 8.1 million (Q3 2020: EUR 78.6 million) despite the adverse conditions seen in some areas of the market, while its operating free cash flow after the first nine months of 2021 amounted to EUR 73.7 million (9M 2020: EUR 102.3 million). As planned, the Group is thus fully on track to achieve operating free cash flow in the positive double-digit million euro range for the financial year as a whole.

On the back of another strong quarterly performance, ElringKlinger is adjusting its guidance for the current year. The general market outlook has deteriorated considerably in recent weeks in view of bottlenecks in the semiconductor industry, strains in the supply of raw materials, and elevated commodity prices. Uncertainty relating to the stability of sales volumes as well as demand for raw materials and their availability continues. Against this backdrop, ElringKlinger is currently forecasting sales revenue that is several percentage points higher than the expected changes in global light vehicle production. The industry service provider IHS had most recently estimated year-on-year growth in global production of 1.6% for 2021. As for earnings before interest and taxes, the Group expects an EBIT margin of around 6%. The Group's projections for its other key performance indicators remain unchanged for the annual period as a whole.

The full results for the third quarter and the first nine months of 2021 will be published as planned on Thursday, 4 November 2021.

Dettingen/Erms, October 11, 2021 +++ ElringKlinger AG has received the SPE Award (Society of Plastics Engineers) from the international Society for Plastics Engineering (SPE Central Europe). The company impressed the jury with its innovative front-end module carrier, which is used in a vehicle produced by US electric car manufacturer Lucid Motors. 

This year, for the 20th time in total, SPE Central Europe awarded prizes for outstanding developments in plastic parts for vehicle construction. In the "Chassis unit/Structural component" category, ElringKlinger impressed the panel of 30 experts chaired by department coordinator Thilo Stier with an innovative front-end module carrier. The awards were presented to the most innovative plastic parts and components in a total of eight categories.

The front-end module support, which is manufactured in a hybrid design, can act as a support for the charge air cooler, the headlamp modules, the spray water tank, the horn, the distance radar module or the air intake. It also supports the hood by connecting hood latches.

Complex manufacturing process
"Receiving the "Oscar for Plastics", the SPE Award, makes us proud and is an excellent example of our exceptional machine, tooling, process and integration expertise. Lightweight construction is the key to the mobility of the future. The technology behind it paves the way for many new applications," says Klaus Bendl, Vice President Lightweight at ElringKlinger. 

ElringKlinger manufactures the front-end module carrier using a single-shot injection molding process. In this process, pre-cut organic sheets are inserted into an injection mold, shaped and combined with several additional inserts, which are overmolded together to form a complex composite hybrid. Within this process, ElringKlinger has succeeded in minimizing the number of pre- and post-processing steps as well as costs, despite a total of 37 inserts. 

"By using glass fiber-reinforced plastic and organic sheets, we reduce the overall weight of the component while maintaining a high level of rigidity. A classic example of "design follows loadcase." The extremely high level of functional integration in the injection molding process thus results in less assembly work and, consequently, lower labor costs," explains Bendl.

The front-end module carrier is used in the first electric vehicle model "Air" from the US car manufacturer Lucid Motors.