Announcements

• New company, jointly owned by ElringKlinger and Plastic Omnium, ready to supply fuel cell stacks and components for broad range of applications
• Initial annual production capacity of up to 10,000 stacks already available
• In parallel, Plastic Omnium takes ownership of ElringKlinger's subsidiary for integrated hydrogen systems to complement its global hydrogen strategy

Dettingen/Paris +++ EKPO Fuel Cell Technologies, the joint venture of ElringKlinger (60%) and Plastic Omnium (40%), is now ready to start operations, having implemented all contractual arrangements and been granted the necessary antitrust approvals. The newly created company offers best-in-class and cost-competitive fuel cell stacks and components for a broad range of applications. Initially, the company will focus on commercial vehicles and buses and then on passenger cars. Special vehicles, trains, and ships are also fields of the growth potential.

Commenting on EKPO's launch, the two CEOs of the parent groups, Dr. Stefan Wolf and Laurent Favre, said, "We are pleased that business is now underway. We see tremendous market potential ahead of us and are determined to achieve our revenue target of EUR 700 million to EUR 1 billion in 2030. Our commercial pipeline is very strong and production capacity is in place. In addition, we can build on compelling technology, centered around high power density, in our efforts to translate our joint vision into reality. By successfully establishing fuel cell drives, we make our contribution on the road to emission-free mobility."

The company site in Dettingen/Erms, Germany, is already able to produce up to 10,000 fuel cell stacks per year according to automotive industrial standards as well as key components of a stack, such as bipolar plates or media modules. In the coming years, EKPO will drive investments for accelerating innovation, extending the commercial pipeline, and increasing production capacity, with the aim to achieve a market share of 10 to 15% in 2030.

The joint venture is headed by a group of three general managers. Armin Diez (58), previously in charge of ElringKlinger's fuel cell business, is responsible for the technical and operational activities. Julien Etienne (43) from Plastic Omnium New Energies is in charge of sales, marketing, and program management. Dr. Gernot Stellberger (41), Head of Global Strategy, M&A, and Innovations at ElringKlinger, is responsible for financial and strategic tasks.

As part of the agreement signed in October 2020, Plastic Omnium also acquires ElringKlinger Fuelcell Systems Austria GmbH (EKAT), ElringKlinger's subsidiary specialized in integrated hydrogen systems. With this acquisition, Plastic Omnium complements its expertise in energy management and control of hydrogen systems.

The website of EKPO Fuel Cell Technologies is now online: www.ekpo-fuelcell.com

For further information, please contact:

About ElringKlinger
As an independent and globally positioned supplier, ElringKlinger is a powerful and reliable partner to the automotive industry. Be it passenger car or commercial vehicle, equipped with an optimized combustion engine, with hybrid technology or with an all-electric motor, the Group offers innovative solutions for all types of drive system. Developing cutting-edge battery and fuel cell technology as well as electric drive units, ElringKlinger was among the frontrunners when it came to positioning itself as a specialist in the field of e-mobility. Alongside its proprietary fuel cell stacks, ElringKlinger is acknowledged in particular for its innovative fuel cell components, including patented designs for metallic bipolar plates and plastic media modules that complement the product range. ElringKlinger PEMFC stacks provide exceptional performance characteristics, thus setting an international benchmark: With an electrical output of up to 200 kWel and a volumetric power density of up to 6 kW/l, the NM12 fuel cell stacks are suitable for use in both passenger cars and commercial vehicles as well as in other applications requiring a high level of performance. The smaller NM5 fuel cell stacks provide an electrical output of 6 to 73 kWel. Moreover, the Group provides sealing technology, shielding systems and lightweight products around the engine and the body structure of a vehicle. These efforts are supported by a dedicated workforce of around 10,000 people at 45 ElringKlinger Group locations around the globe.

About Plastic Omnium
Around the world, Plastic Omnium provides carmakers with innovative solutions for more connected and sustainable mobility. A global leader in its three businesses, the Group develops and produces intelligent exterior systems, clean energy systems and customized complex modules. With an international footprint of 135 plants, 25 R&D centers and a 2,200 patent portfolio, Plastic Omnium relies on its 31,000 employees to meet the challenges of clean and smart mobility.

Innovation-driven since its creation, Plastic Omnium is now paving the way for the zero carbon car through its investments in hydrogen solutions, for which the Group has ambitions to become world leader throughout the entire value chain.

• Revenue at EUR 1,480 million - organic decline of 11.7% better than market performance (-16.2%)
• EBITDA of EUR 180.9 million despite sales decline comparable to prior-year figure (EUR 181.0 million)
• EBIT at EUR 27.2 million; EBIT margin at 1.8%
• Operating free cash flow for fourth quarter again visibly in positive territory - EUR 164.7 million on an annual basis
• Net financial liabilities scaled down by a further EUR 136 million in 2020; net debt/EBITDA at 2.5

Dettingen/Erms (Germany), February 23, 2021 +++ Based on preliminary, unaudited figures for the 2020 financial year, ElringKlinger AG recorded revenue of EUR 1,480.4 million for the period as a whole. Against the backdrop of general restrictions associated with the coronavirus pandemic, this corresponds to a year-on-year decline of 14.3%. According to data published by the information provider IHS, global automobile production, which encompasses so-called light vehicles, contracted by 16.2% in the same period.

Despite the pandemic-induced downturn in revenue, earnings before interest, taxes, depreciation, and amortization (EBITDA), totaling EUR 180.9 million, were largely unchanged on the prior-year figure of EUR 181.0 million. Earnings before interest and taxes (EBIT) of EUR 27.2 million include, besides non-cash impairments in the mid-double-digit million euro range, proceeds of around EUR 25 million attributable to a fuel cell partnership. The EBIT margin stood at 1.8%.

In terms of both revenue and earnings, the Group thus remained within the guidance range it had adjusted in May 2020 in response to the first covid-19 lockdown. Revenue had been expected to decline by a slightly smaller percentage than the market as a whole. As for EBIT, excluding proceeds from the fuel cell partnership, the outlook had been for a margin that was noticeably lower than the prior-year figure of 3.5%.

At an operational level, the impact of the pandemic resulted in an earnings shortfall of around EUR 42 million. This figure factors in the positive effects of instruments utilized by the company, such as short-time work in Germany. At the same time, earnings improved by EUR around 47 million due to the global program aimed at raising efficiency levels. It includes comparatively short-term effects such as the reduction in travel and non-personnel costs as well as structural elements such as a cut in material costs or the adjustment of sales prices to current levels. Additionally, the Group recognized impairment losses relating to non-current assets in accordance with IAS 36 as well as impairments regarding current assets and made provisions.

Commenting on the preliminary results for the financial year, Dr. Stefan Wolf, CEO of ElringKlinger AG, said, "In view of the challenges presented by the coronavirus pandemic, the 2020 financial year was certainly not an easy year. Given the underlying conditions, we can indeed be satisfied with our results. We outperformed the market on the basis of revenue, our EBIT margin was 1.8%, and we once again managed to generate strong operating free cash flow. Overall, therefore, we were able to further strengthen the Group's position."

Implemented by the Management Board at the beginning of 2019, the global program aimed at raising efficiency levels continued to take effect in 2020. With the help of these measures, the Group managed to generate operating free cash flow of EUR 164.7 million and achieve structural improvements to its cost base. Not least as a result of these factors, net financial liabilities were reduced by a further EUR 136.5 million to EUR 458.8 million in 2020. This translates into a net debt ratio (net debt in relation to EBITDA) of 2.5. Twelve months earlier, the figure had stood at 3.3.

The Group will present its full results for the financial year just ended as well as its outlook for the current financial year in its 2020 annual report to be published on March 30, 2021.

Preliminary, unaudited figures for FY 2020 and Q4 2020

To underpin the revision required to the ISO standard for the quality of hydrogen dispensed at fueling stations, ElringKlinger will be supplying a total of 68 fuel cell short stacks by the end of 2022 to a research consortium made up of several leading institutes in Germany. The stacks are to be used as part of a three-year research project at the ZSW's testing facilities in Ulm.

The fuel cell will play a key role in the transformation of mobility. Estimates suggest that, by 2030, more than 5 million fuel cell vehicles around the globe will need filling with hydrogen. There are plans to build 400 hydrogen fueling stations by 2025 in Germany alone.

To deliver the underlying data on which to base a revision of the ISO standard governing the quality of the hydrogen dispensed at these stations, Duisburg-based Zentrum für BrennstoffzellenTechnik GmbH (ZBT) is coordinating the "H2Fuel" research project. This involves deploying fuel cell stacks at testing facilities run by the Center for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW). As part of the project, which is funded by the German government via the National Organisation Hydrogen and Fuel Cell Technology (NOW), ZBT is partnering with the Fraunhofer Institute for Solar Energy Systems in Freiburg, the ZSW in Ulm, Ludwig-Bölkow-Systemtechnik GmbH in Ottobrunn, and the Institute for Physical Chemistry at Heinrich Heine University Düsseldorf. Mercedes-Benz FuelCell, Toyota, BMW, and Ford are also on board as associate partners.

To enable the project to come to fruition, ElringKlinger AG will be supplying a total of 68 fuel cell short stacks to the research consortium by the end of 2022. The stacks will be put through their paces at the ZSW's testing facilities in Ulm over a three-year period. Short stacks have only a small number of cells, which are being designed to have a lower power output than usual for the purpose of the tests. The contract also covers membrane electrode assemblies (MEA), where the electrochemical reaction takes place. The first stacks will be delivered as early as the beginning of 2021.

Dr. Stefan Wolf, CEO of ElringKlinger AG, commented: "For us, the fact that ElringKlinger's fuel cell stacks have been chosen to deliver the underlying scientific data that will inform everyday use is further proof of how pioneering our best-in-class technology really is. We'll be delighted if our stacks help to gain valuable insights into hydrogen quality in fueling stations as part of this project."

Over the course of the tests, the "H2Fuel" project is planning to expose the stacks to various stress situations relating to hydrogen use in order to establish new technically and economically appropriate limits for hydrogen quality. This is because the quality requirements that the hydrogen to be used has to meet will have a material impact on how much it will cost and how long the fuel cells will last. For this reason, the project is also aiming to quantify how contaminants in the hydrogen could potentially impact on the performance and service life of the MEA and to use this as a basis for determining requirements for hydrogen purity. Building on the research findings obtained from "H2Fuel," the intention is for Germany's network of hydrogen fueling stations to play a pioneering role in the application of sound, practicable standards.

As part of its ongoing transformation, ElringKlinger AG has created a new "Metal Sealing Systems & Drivetrain Components" business unit, which pools the expertise of two former units - Cylinder-head Gaskets and Specialty Gaskets. As the new unit offers product solutions for all drive types, the Group is also continuing to position itself for the future in a targeted way

The transformation of the mobility sector is progressing apace. Although many of the new vehicles manufactured every year around the world are still being fitted with combustion engines, car makers are launching more and more hybrid and full-electric models onto the market in order to combat climate change and cut CO₂ emissions in the mobility sector for the long term. ElringKlinger AG is playing a decisive role in shaping this trend with its pioneering battery and fuel cell technologies.

As part of this transformation process, the Group has now set up a new "Metal Sealing Systems & Drivetrain Components" business unit. It combines the expertise of two former units - Cylinder-head Gaskets and Specialty Gaskets - and brings their products together under one new roof.

Reiner Drews, COO of ElringKlinger AG, commented: "In taking this organizational step, not only are we pooling our skills, we are also giving the unit a new focus: besides our tried-and-tested gasket solutions for combustion engines, we will also be expanding our product range further. In the future, we will also offer solutions that cover metallic gasket systems and precision stamping and forming components for all drive types. In so doing, we are continuing purposefully along our journey toward getting the Group well placed for the mobility of the future."

The new unit's product range includes conventional gaskets such as cylinder-head and turbocharger gaskets as well as innovative components for alternative drive types. The disk carrier, which has been in series production for a German sports car manufacturer's full-electric vehicle since 2019, exemplifies the diversity of products offered by the new business unit. Unlike a conventional gasket, it transfers and transmits the drive torque from the electric motor to the rear axle. To do its job properly, the disk carrier has to withstand very high mechanical stresses and rotational speeds and work efficiently and precisely. As well as unbeatable accuracy and functional reliability, the disk carrier also brings the added benefit of being much more lightweight thanks to its hybrid design - a mixture of forgings and sheet-metal-formed components. It is with products like these that ElringKlinger is delivering technically sophisticated solutions tailored to specific requirements, including for the mobility of the future.

The new business unit is headed up by Wojtek Kolasinski, who was previously in charge of the Specialty Gaskets unit. Gunnar Deichmann, former Head of the Cylinder-head Gaskets unit, is assuming responsibility for the Battery Technology unit. He is replacing Armin Diez, who will be devoting his full attention to his role as Head of the Fuel Cell Technology unit in the future. The change to the organizational structure took effect on October 1, 2020.

Dettingen/Erms (Germany), Eindhoven (Netherlands), November 12, 2020 +++ ElringKlinger AG and the Dutch vehicle manufacturer VDL Bus & Coach BV have agreed on a strategic partnership within the area of fuel cell technology. The cooperation agreement provides for the development and industrialization of fuel cell stacks and systems for mobile and stationary applications.

Within this partnership, ElringKlinger AG will focus on the customer-specific development and production of fuel cell stacks. VDL will be primarily responsible for system integration and testing under real conditions. Another cooperation partner is ElringKlinger Fuelcell Systems Austria GmbH (EKAT), which has expertise within the area of complete fuel cell systems. Plastic Omnium will also bundle its know-how, once EKPO Fuel Cell Technologies, the joint venture in fuell cell stacks between ElringKlinger and Plastic Omnium, is created and the acquisition of ElringKlinger's Austrian subsidiary EKAT is completed in early 2021.

The declared aim of the partnership is to bring the developed fuel cell systems to production maturity in the coming year. These will be used in mobile and stationary applications such as gensets, hybrid vehicles or vehicles with range extender. The cooperation agreement is therefore initially limited until 2021. Subsequently, concrete customer projects are already planned and under negotiation, which are to be signed before the cooperation agreement expires.

"With this cooperation, we are not only intensifying our collaboration with VDL in fuel cell technology, but also creating the basis for further developing hydrogen-based drive technologies for heavy duty mobility. Together with our contractual partner, we are working towards establishing the fuel cell as a pioneering drive technology within the commercial vehicle sector over the coming years," commented Armin Diez, Vice President Fuel Cell at ElringKlinger AG.

Henk Coppens, CEO of VDL Bus & Coach BV, said: "As a frontrunner in the field of sustainable mobility solutions, VDL Bus & Coach strongly believes that hydrogen will become an important and strategic part of our portfolio. VDL's motto is 'strength through cooperation' and I am pleased that we can fulfill this motto for the subject of hydrogen with this cooperation with ElringKlinger."

Fuel cell technology at ElringKlinger
ElringKlinger has been active within the area of fuel cell technology for around 20 years and serves the market as both a component and a system supplier. The Group's focus is on low-temperature fuel cells (PEMFC). Combining the benefits of high power density and highly dynamic power supply, PEMFC stacks are the perfect choice for mobile applications and - in conjunction with a decentralized supply of hydrogen - they are already a viable option for today's mobility needs.

ElringKlinger PEMFC stacks designed for integration into customer systems are available with an electrical output of 10 to over 200 kWel. Stacks with peripheral components and system functionalities integrated into the end plate module are also available as an option. These features enable considerable simplification and cost reduction with regard to the fuel cell system. They are suitable for use in both passenger cars and light commercial vehicles such as forklifts as well as buses and trucks.

Alongside its proprietary fuel cell stacks, ElringKlinger is acknowledged in particular for its innovative fuel cell components, including patented designs for metallic bipolar plates and plastic media modules that complement the product range.