Announcements

• The funding will enable ElringKlinger to develop innovative battery cell housing components and get them ready for industrial-scale production
• The German Federal Ministry for Economic Affairs and Energy and the state of Baden-Württemberg will provide a total of EUR 33.8 million by the end of 2026
• Dr. Stefan Wolf, CEO of ElringKlinger AG: "With our innovative battery cell housing design, we want to make a lasting contribution toward climate-neutral battery cell manufacture in Europe."

Dettingen/Erms (Germany), April 27, 2021 +++ ElringKlinger AG's project to develop innovative battery cell housing components and get them ready for industrial-scale production is to be funded by the German Federal Ministry for Economic Affairs and Energy (BMWi) and the state of Baden-Württemberg as part of the second European large-scale IPCEI (Important Project of Common European Interest) for battery technology. Thomas Bareiß, Parliamentary State Secretary at the BMWi, and Dr. Nicole Hoffmeister-Kraut, Minister of Economic Affairs of the State of Baden-Württemberg, presented Dr. Stefan Wolf, CEO of ElringKlinger AG, with the official funding approval earlier today. The small-scale ceremony at the chamber of commerce and industry in Reutlingen was held behind closed doors due to the coronavirus pandemic, although the speeches, the presentation of the official approval, and the subsequent panel debate were live-streamed on the BMWi website for journalists and the general public.

The second battery IPCEI, entitled "European Battery Innovation - EuBatIn," is being coordinated by Germany. It was approved by the European Commission in late January 2021, at the same time as the companies involved were also announced. All in all, twelve EU countries are providing up to EUR 2.9 billion in funding to develop a European value chain for battery production. ElringKlinger is one of only eleven German companies to obtain funding of this kind as part of the EuBatIn program.

ElringKlinger's project is geared toward the development and industrial-scale production of innovative battery cell housing components and stands to receive a total of EUR 33.8 million in funding by the end of 2026. The innovative design of the cell lid allows fewer and less complex components to be used and reduces the need for energy-intensive raw materials such as aluminum and copper. The cell lid ensures that power is transmitted into and out of the cell via its poles. ElringKlinger's innovative concept means that up to a quarter of the components can be eliminated in full, reducing the amount of manufacturing work and materials required and thus shrinking the product's carbon footprint by around 40 percent.

Dr. Stefan Wolf, CEO of ElringKlinger AG, comments: "In the project for which we've secured funding, we're putting our core skills such as forming and injection molding, coating technologies and toolmaking to targeted use in order to develop a battery cell housing design and manufacture it on an industrial scale. Building on the insights and experience we've gained, we not only want to harness the market potential for cell housings in Europe but also to make a lasting contribution to European climate-neutral battery cell production."

Thomas Bareiß, Parliamentary State Secretary at the BMWi, adds: "With the battery IPCEIs, the battery value chain in Europe is continuing to take shape. As well as cell manufacture, however, it's also about components like battery housings or the production machinery for batteries. With its IPCEI project, ElringKlinger will be helping to create a competitive value chain for the European battery industry by developing an innovative cell housing design and getting it ready for industrial-scale production. A project like this is a source of pride: the company is opening up new areas of business, thus securing value creation and jobs in the region, particularly at this time of major technological change."

Dr. Nicole Hoffmeister-Kraut, Minister of Economic Affairs of the State of Baden-Württemberg, also underlines the importance of a battery industry: "Battery technology is a key technology for the future that will be absolutely indispensable in all areas of industrial value creation. We want to be covering around 30 percent of global demand for battery cells from German and European production by 2030. Baden-Württemberg is also to play a leading role in this area and adopt a vital position along the whole of the value chain. Thanks to ElringKlinger's IPCEI project, we're a big step closer to achieving this goal."

In the battery technology segment, ElringKlinger's product range includes components such as cell contact systems, module connectors, and pressure equalizers. The Group has been manufacturing cell contact systems on an industrial scale for around ten years now. Besides components, ElringKlinger also offers high-performance prismatic and cylindrical modules as well as complete battery systems. Its first orders for series production are currently in the pre-production phase.

Shanghai, Dettingen/Erms, 21. April 2021 +++ At AUTO SHANGHAI 2021, ElringKlinger will be showcasing suitable solutions for vehicles of all drive types - be they classic combustion engines, hybrids or purely electrically powered cars. In addition to innovative gaskets and thermal and acoustic shielding systems, the company will be presenting complete fuel cell stacks and components, products from the field of battery technology and components for use in electric drive units. Extensive safety precautions will be taken at the booth so that visitors can enjoy their stay even in times of pandemic.

The automotive industry is in a state of flux. In addition, the world has been in a state of emergency for over a year now. "It is all the more pleasing that we can once again come into direct contact with our customers this year. This important trade fair offers a first-class platform to take a step back into normality. It is nice that we will be able to present a number of premieres at our stand this year," says a delighted Humphrey Chen, General Manager of ElringKlinger China Ltd.

These include various products from the field of fuel cell technology, for the first time also of the newly founded join venture EKPO Fuel Cell Technologies. The "NM12 Single" fuel cell stack module (PEMFC) with 359 cells based on metallic bipolar plates with an electrical output of 123 kWel is designed for high power requirements. ElringKlinger will also be exhibiting the "NM5-EVO" fuel cell stack module (PEMFC) with integrated system functionalities. This 335-cell stack module has an electrical output of 76 kWel and can be used for integration into drive systems as a fuel cell-battery hybrid system or range extender. "Especially in China, our fuel cell stacks are a competitive alternative to battery electric drives or the internal combustion engine due to their high performance," Chen explains.

Two battery modules and production-ready components
In addition to its long-standing expertise in the field of fuel cells, ElringKlinger has also been active in the area of battery technology for a good decade. As part of AUTO SHANGHAI 2021, the company will be presenting two different battery modules - a 48 V module made of prismatic lithium-ion cells and a 60 V module made of cylindrical lithium-ion cells for integration into a battery storage system up to a total system voltage of 400 V. "In addition, there are various components on display at our booth that underscore the fact that ElringKlinger also has broad-based expertise in this area. In addition to pressure equalization elements for protecting battery storage housings, these include cell contacting systems that are used in traction batteries for hybrid and battery-electric vehicles," Mr. Dirk Schneider, Vice President of Sales AP explains in detail.

Wide range of products for the modern combustion engine
Despite the increasing shift towards alternative drive technologies, the modern combustion engine will also still play an important role in the coming years. ElringKlinger has more than 100 years of experience in the field of gasket technology and has, for example, developed the cylinder-head gasket into a high-tech product over time. There are several examples of this to look at.

From the field of shielding technology, various ElroActive^TM systems (thermal shielding) and ElroShield^TM systems (thermal and acoustic shielding) will be on display at AUTO SHANGHAI 2021.

Lightweight plastic components are used in all vehicles, regardless of their powertrain type. These include cockpit cross members and a door module carrier made from thermoplastic composites and plastic injection, which can be viewed.

Extensive hygiene concept at the booth
To ensure that all visitors feel safe, ElringKlinger has taken various precautions. "The safety of all is important for us - for our customers, visitors at our booth and teams organizing and executing the exhibition. Therefore we will organize special prevention in helping social distancing, face masks protection and assure hygienic prevention in order to make this event not only a success in terms of business but also a good example for getting back to business together with the challenging pandemic threats," says Chen.

ElringKlinger at AUTO SHANGHAI 2021
Hall 1.2, Booth 5BI101

Dettingen/Erms (Germany), April 16, 2021 +++ ElringKlinger AG (ISIN DE 0007856023 / WKN 785602) recorded a strong performance in the first quarter of 2021. According to preliminary figures, the Group generated revenue of EUR 424 million (Q1 2020: EUR 396 million) and earnings before interest and taxes (EBIT) of EUR 48.4 million (Q1 2020: EUR 16.0 million) in the first three months of the current financial year. This corresponds to an EBIT margin of 11.4% (Q1 2020: 4.0%). Alongside consistently solid aftermarket business, this was attributable to the high level of revenue seen across the board. The bottom-line result also includes a gain of EUR 10.9 million from the sale of ElringKlinger's Austrian subsidiary to the French partner Plastic Omnium.

In addition to revenue and earnings, other key financial indicators for the first quarter of 2021 also proved very favorable: operating free cash flow, for example, amounted to EUR 28.6 million (Q1 2020: EUR -2.2 million). Not included in this figure are the proceeds of EUR 13.4 million from the sale of the Austrian subsidiary subsidiary and a payment of EUR 30 million received by the company on the basis of an agreement between ElringKlinger and the French supplier Plastic Omnium as part of their fuel cell partnership. The latter is aimed at accelerating further capacity expansion of the joint company EKPO Fuel Cell Technologies GmbH, which will be fully consolidated within the ElringKlinger Group.

Net working capital was further optimized in the first quarter just ended: after EUR 453 million as of March 31, 2020, it now stood at EUR 430 million. Based on the Group's positive operating free cash flow, net debt was also further reduced to EUR 400 million (Q1 2020: EUR 603 million), resulting in a significant improvement in the net debt ratio (net debt/EBITDA) of 1.9 (Q1 2020: 3.1).

In view of the strong start to the year, ElringKlinger is adjusting its guidance for the current financial year. While organic revenue is still expected to develop roughly in line with market levels, the EBIT margin is now projected at around 5 to 6% (previously: around 4 to 5%). The outlook for the remainder of the year continues to be subject to considerable uncertainty, with underlying conditions remaining challenging and difficult. Commodity prices, for instance, are trending at very high levels and supply chains are not consistently robust. Additionally, in the course of the pandemic, it cannot be ruled out that production activities may have to be suspended temporarily at some of the 44 sites worldwide. This would have corresponding effects on revenue and earnings. - The outlook for the other key financial indicators remains unchanged from the statements made in the 2020 annual report.

ElringKlinger will publish its full quarterly results and the report on the first quarter of 2021 as planned on May 6, 2021.

• Revenue in 2020 year of coronavirus down 11.7% organically at EUR 1,480 million, compared with global market slump of 16.2%
• EBITDA of EUR 181 million comparable to prior-year figure despite downturn in revenue; EBIT at EUR 28 million
• Operating free cash flow in positive triple-digit million euro range for second year in a row; net debt scaled back significantly
• Guidance 2021: revenue growth at market level and higher profitability
• Dividend suspended to strengthen internal financing
• Annual General Meeting to be held in a virtual format

Dettingen/Erms (Germany), March 30, 2021 +++ ElringKlinger AG has presented its full results for the 2020 financial year, a period marked by the coronavirus pandemic. The impact can be seen, among other things, in global automobile production, which slumped by 16.2%. As a result, revenues generated by the Group fell by EUR 246.6 million or 14.3% to EUR 1,480.4 million (2019: EUR 1,727.0 million). However, excluding the effects of currencies and acquisitions, the year-on-year decline was only 11.7%. The Group thus succeeded in meeting its expectations of performing slightly better than the market as a whole in 2020 based on the direction taken by organic revenue.

The pandemic developed along different lines in the Asia-Pacific region over the course of the first quarter of 2020. While China saw an extension to its New Year holidays as well as plant closures, little impact was initially felt in other parts of Asia. As the year progressed, China recovered quickly from the crisis experienced in the first quarter, while other parts of Asia felt the repercussions of the pandemic. In this region, Group revenues fell by EUR 30.2 million or 9.7% to EUR 279.8 million (2019: EUR 310.0 million). It was not until mid-March that Europe saw the introduction of lockdown measures. Against this backdrop, economic recovery in the region as a whole was more sluggish than in China. Overall, the Group generated revenue - adjusted for currency effects - of EUR 785.2 million (2019: EUR 889.2 million), which corresponds to a decline of EUR 104.0 million or 11.7%. The downturn was more pronounced in North America. Here, revenue stood at EUR 384.9 million (2019: EUR 450.9 million), down EUR 66.0 million or 14.6% on the prior-year figure after adjusting for exchange rate effects.

Asked to comment, Dr. Stefan Wolf, CEO of ElringKlinger AG, said, "The effects of the pandemic were felt in all regions in 2020. However, we were able to cushion the blow relatively well and improve key performance indicators for the Group. Despite the decline in revenue, earnings before interest, taxes, depreciation, and amortization remained at the previous year's level. We also further optimized net working capital. Benefiting from this, among other things, we thus managed to achieve operating free cash flow in the triple-digit million euro range for the second time in a row, in addition to further reducing net debt by a significant margin. This illustrates that our global program aimed at raising efficiency levels is fully on track."

Efficiency enhancement program continues to deliver in second year
Having been successfully implemented in 2019, the program aimed at improving efficiency continued to be rolled out over the course of the financial year just ended. The measures were aimed, among other things, at avoiding costs for special freight movements and additional shifts through process optimization, staff training, and the elimination of inefficiencies in administration and production. In addition, both the materials and personnel expense ratios were reduced in a targeted manner in 2020. Benefiting from these improvements, the Group was able to partially offset the effects of the pandemic-induced decline in demand.

Overall, earnings before interest and taxes (EBIT) for the 2020 financial year stood at EUR 27.7 million, while the EBIT margin amounted to 1.9%. As originally expected, this was noticeably lower than the previous year's figure of EUR 61.2 million or 3.5%. Unrealized foreign exchange losses and losses from associated companies prompted an increase in net finance costs. Income taxes decreased by EUR 10.2 million to EUR 26.4 million (2019: EUR 36.6 million). This resulted in net income attributable to share-holders of EUR -40.8 million in 2020 (2019: EUR 4.1 million). Correspondingly, at EUR -0.64, earnings per share were significantly below the previous year's level of EUR 0.06.

Strong operating free cash flow
Committed to strengthening its operating free cash flow for the long term, the Group optimized its net working capital as part of the package of measures. To this end, receivables were scaled back, payment terms extended, and inventories actively managed. In the 2020 financial year, the Group generated operating free cash flow of EUR 164.7 million (2019: EUR 175.8 million), which provided the basis for further reducing net financial liabilities. These were cut by EUR 337 million within 21 months to EUR 458,8 million as of December 31, 2020 (Dec. 31, 2019: EUR 595,3 million). In addition, with a robust equity ratio of 41.4% (2019: 41.5%), the Group remains within its long-term target range of 40% to 50%.

Two strategic milestones in fuel cell technology
ElringKlinger also charted two important routes for the future in the financial year just ended. First, the Group entered into a strategic partnership with Airbus to jointly develop and validate aviation-compatible fuel cell stacks over the coming years. ElringKlinger is providing access to key technology for this purpose and, in return, received proceeds of EUR 25 million during the fourth quarter of 2020. Following extensive market analysis, Airbus had selected ElringKlinger as its partner primarily because of the high power density of its fuel cell stacks and its expertise in the field of industrial-scale production. Secondly, ElringKlinger holds the majority interest (60%) in EKPO Fuel Cell Technologies, a joint venture with Plastic Omnium. The aim of both partners is to develop the global market for fuel cell stacks and components.

Guidance for 2021
Due to the ongoing pandemic and many other factors, the current fiscal year is subject to a high degree of uncertainty. In light of these risks and opportunities, the Group expects organic growth in revenue over 2021 as a whole to be roughly in line with the percentage increase in global vehicle production. Market experts currently estimate the latter at around 13%.

The efficiency enhancement program will continue into its third year in 2021. If global car production develops as projected, the Group expects an EBIT margin of around 4 to 5% for the 2021 financial year as a whole.

Suspension of dividend
Due to the earnings situation in 2020, the dividend for the 2020 financial year has been suspended. In taking this approach, the Group is looking to strengthen its internal financing for the ongoing transformation process.

Virtual Annual General Meeting
In view of the current rate of infection, the Management Board and the Supervisory Board have jointly decided to hold the Annual General Meeting, scheduled for May 18, 2021, in a virtual format, as in the previous year.

As Dr. Wolf points out, "For us, the health of everyone involved remains our top priority. Currently, cases of infection are on the rise again, and the government has only just extended the protective measures aimed at containing the pandemic. At the same time, the vaccination campaign has not really taken off yet. Taking these factors into consideration, we have decided to hold the AGM as a virtual event again this year in order to protect the health of everyone involved. Additionally, it can be considered unlikely that an Annual General Meeting with shareholders present would be approved by the competent authorities."

Having registered prior to the specified deadline, shareholders may participate in the Annual General Meeting via the internet and exercise their voting rights by granting power of attorney to the proxies nominated by the company or by means of postal voting. Questions on the agenda can be submitted in advance. Further details will be contained in the invitation to the Annual General Meeting, which is to be published in the electronic Federal Gazette in due time in April 2021.

Key financials for FY 2020 and Q4 2020

The annual report for 2020 is available online at:https://elringklinger.de/investor/2020-gb-en.pdf

• Serial production order for cell contacting systems placed by global battery manufacturer for series platform of German premium car maker
• Total volume in mid-triple-digit million euro range over contractual term of approximately nine years
• Start of production at Neuffen-based plant in the first half of 2022
• Dr. Stefan Wolf, CEO of ElringKlinger AG: "This contract is another important step for ElringKlinger in the context of transformation."

Dettingen/Erms (Germany), March 9, 2021 +++ ElringKlinger AG has received a high-volume order for cell contacting systems. From the first half of 2022 onwards, the Group will supply the German plant of a global battery manufacturer who produces battery systems for the series platform of a German premium car marker. The contract covers a total volume in the mid-triple-digit million euro range and will span over a period of approximately nine years. Series production at the site in Neuffen is scheduled to commence within the next fifteen months.

Dr. Stefan Wolf, CEO of ElringKlinger AG, commented: "This contract is another important step for ElringKlinger in the context of transformation and highlights our expertise as a leading supplier within the field of e-mobility. We are very pleased that a global battery manufacturer has decided in favor of our know-how relating to battery components and see this as confirmation of our approach of positioning ourselves early for the technologies of the future."

ElringKlinger has been mass-producing battery components such as cell contacting systems for around ten years. Tailored precisely to customer requirements, they can be fitted directly onto the battery cells and welded on the cell terminals accordingly. Cell contacting systems consist of a plastic carrier frame that accommodates the cell connectors and ensures assembly in all tolerance positions. The required voltage and temperature sensors are already included, while the electronic cell supervision circuit can also be integrated.

Alongside components, the Group also offers high-performance modules using prismatic and cylindrical cells as well as complete battery systems. The first series production orders are currently in the pre-manufacturing phase.