Announcements

• Revenue up by 10.7% to record level of EUR 1,798 million
• EBIT before exceptional items at EUR 61.1 million; operating EBIT margin slightly above guidance at 3.4%; EBIT at EUR -42.2 million
• Operating free cash flow at EUR 14.8 million in positive territory yet again
• 2023 Annual General Meeting scheduled as a virtual event

Dettingen/Erms (Germany), February 21, 2023 +++ Based on preliminary and unaudited figures, ElringKlinger AG put in a successful performance in the 2022 financial year and fully met its annual guidance targets published in August. Compared to the previous year, the Group managed to drive revenue forward by 10.7% to EUR 1,798.4 million (2021: EUR 1,624.4 million). Adjusted for currency effects, growth stood at 7.4%, thus slightly outpacing the market as expected. According to industry service provider S&P Global Mobility (Feb. 2023), global automotive production grew by 6.7% in 2022. 

The Group recorded earnings before interest and taxes (EBIT) of EUR -42.2 million in the 2022 financial year (2021: EUR 102.0 million), which corresponds to a margin of -2.3% (2021: 6.3%). This figure includes exceptional items from impairments totaling EUR 103.3 million that are recognized in profit and loss but are non-cash in nature. The impairment of goodwill amounting to EUR 86.1 million at the end of the first half of the year was attributable primarily to the significant increase in interest rates in the second quarter. In addition, the Group recognized impairment losses of EUR 17.2 million relating to property, plant, and equipment as well as intangible assets in the financial year just ended. Adjusted for these exceptional items, consolidated EBIT totaled EUR 61.1 million from an operating perspective, which corresponds to an operating EBIT margin of 3.4%. Thus, the Group slightly exceeded its guidance of around 2 to 3% published in August 2022, while reported EBIT was within the target range of -2 to -3%.

Asked to comment on the preliminary results, Dr. Stefan Wolf, CEO of ElringKlinger AG, said, "The 2022 financial year was dominated by geopolitical conflicts, inflationary pressures, and spiraling commodity and energy prices. Despite these exogenous factors, we recorded a strong final quarter in respect of revenue and earnings. Looking at the year as a whole, we again outperformed the market in terms of revenue growth, while also achieving a satisfactory level of operating EBIT. In a world full of uncertainty, we managed to meet our annual targets. We remain fully focused on pursuing our strategic route and are committed to positioning the Group as best possible for the future of mobility."

Amid difficult market conditions, net debt was scaled back slightly to EUR 364.2 million in the 2022 financial year (2021: EUR 369.2 million). With EBITDA amounting to EUR 174.2 million (2021: EUR 216.1 million), the net debt-to-EBITDA ratio was 2.1 (2021: 1.7). After higher figures recorded over the course of the year (Q1 2022: 2.1; Q2 2022: 2.5; Q3 2022: 2.7), this ratio had returned to the first-quarter level by the end of the financial year and is positioned at the lower end of the guidance range of 2.0 to 3.0. Operating free cash flow was in positive territory, as expected, at EUR 14.8 million (2021: EUR 72.0 million).

In consultation with the Supervisory Board, the Management Board of ElringKlinger AG has decided to hold the 2023 Annual General Meeting on May 16 in a virtual format. The decision was made primarily within the context of the sustainability of corporate events and in acknowledgement of the more flexible options for participation open to domestic and foreign shareholders.

The complete and audited 2022 results, together with the 2022 annual report and the outlook for the current financial year, will be published as planned on March 28, 2023.

Preliminary, unaudited figures for FY 2022 and Q4 2022

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.

• EKPO secures contract for development of fuel cell stacks and supply of prototypes for future series production vehicle to be manufactured by a European car manufacturer
• Development of customized stacks for OEM with high peak power in challenging design space
• Initial contract volume in the mid-single-digit million euro range
• Delivery of fuel cell stacks scheduled for as early as 2023

Dettingen/Erms (Germany), February 02, 2023 +++ EKPO Fuel Cell Technologies GmbH (EKPO) has secured a contract from a European car manufacturer for fuel cell stacks to be fitted to a future series production vehicle. The agreement includes the development of a custom-made stack for the global OEM's future mass-produced vehicle that is to be powered by a fuel cell. In addition to development work, the contract also covers the supply of prototypes and has an initial volume in the single-digit million euro range. Delivery of the stacks is scheduled to commence as early as 2023.

Asked to comment on the latest contract, Dr. Gernot Stellberger, Managing Director of EKPO Fuel Cell Technologies, said, "Our customer has exacting quality standards with regard to its vehicles and the associated production conditions. We are all the more delighted that we were able to present a compelling proposition based on our development and technological expertise." EKPO's stacks meet the challenging demands for a durable and compact design combined with high power density, offering the best combination currently available within the market. Achieving in excess of 6.0 kW/l in the cell block, the existing EKPO stack family is seen as a market benchmark. In addition, EKPO already has the necessary facilities at its headquarters in Dettingen/Erms to ensure production of up to 10,000 stacks per year in compliance with automotive standards. This makes EKPO a dependable and innovative partner. One thing is certain, as Dr. Stellberger points out: "Hydrogen plays a key role as an energy carrier on the path to climate neutrality. The latest contract illustrates that hydrogen is also set to become increasingly important when it comes to personal mobility. EKPO's fuel cell technology offers matching solutions for this purpose."

The customer will receive a tailor-made fuel cell stack for use in the vehicle. The challenge with regard to this project is the combination of performance and compact design, as the vehicle's installation footprint for the stack is limited. The combination of a customized bipolar plate and the matching high-power MEA is designed to ensure that the stack delivers an excellent peak performance. The bipolar plate developed and produced by EKPO is to include a seal on the metal plate and a special coating in support of high performance and durability. Initially, the stacks are to be produced at EKPO's headquarters in Dettingen/Erms.

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.

• New name reflects evolution of the business unit into a supplier of stamped and formed metal components and assemblies in the field of e-mobility
• Extensive product range for new types of drive system
• Demand in 2022 already centered predominantly on products for all-electric vehicles

Dettingen/Erms (Germany), January 3, 2023 +++ ElringKlinger AG has renamed its "Shielding Technology" business unit "Metal Forming & Assembly Technology." The new name reflects the broad positioning of the business unit, whose portfolio encompasses not only shielding products for combustion engines but increasingly also stamped and formed metal components as well as assemblies targeted at the e-mobility sector. In 2022, demand was already centered mainly on products beyond the market associated with combustion engines.

Asked to comment, Reiner Drews, COO of ElringKlinger AG, said, "The new name is a reflection of the route that ElringKlinger is consistently pursuing. We are helping to shape the process of transformation in the field of mobility and are evolving from a supplier of components used in vehicles with combustion engines into a global provider of e-mobility solutions. In this context, we can draw specifically on our core competencies, such as those relating to forming processes and toolmaking, for the purpose of developing, producing, and marketing components destined for the new generation of drive systems."

The Metal Forming & Assembly Technology business unit will develop and produce stamped and formed metal components and modules as well as assemblies of structural relevance. This will be complemented by established product groups for shielding applications, such as ElroShieldTM or ElroCousticTM. The product portfolio will continue to be consistently targeted at new types of drive systems and will include covers and housings for batteries and drive trains – from stamped parts to assemblies such as battery boxes, battery covers, module covers, module housings, adapter venting, and inverter covers. In addition, the portfolio includes shielding parts such as high-voltage connector caps, brake cover plates, and acoustic and thermal shielding parts.

ElringKlinger has many years of experience in the field of "Metal Forming & Assembly Technology" and has established itself as a full-range supplier at a global level. Drawing on its simulation, tooling, and process expertise developed over decades, the Group is in a position to offer tailor-made solutions for vehicles of all drive types – be it for the classic combustion engine or for hybrid or all-electric vehicles.

• Group revenue up by 15.9% in third quarter to EUR 464.1 million (Q3 2021: EUR 400.6 million) amidst economic and geopolitical volatility
• EBIT at EUR 18.1 million in third quarter, EBIT margin at 3.9% (Q3 2021: EUR 27.0 million and 6.7%) – positive trend in each case compared to previous quarter
• Order backlog up significantly on prior-year figure, expanding by EUR 157.8 million or 12.1% to EUR 1,465 million (Q3 2021: EUR 1,307 million)
• Group confirms 2022 guidance

Dettingen/Erms (Germany), November 3, 2022 +++ ElringKlinger AG (ISIN DE 0007856023 / WKN 785602) has published its results for the third quarter of 2022. In the period from July to September, the Group generated revenue of EUR 464.1 million. This is the highest quarterly revenue ever posted by ElringKlinger. Compared to the same period of the previous year (Q3 2021: EUR 400.6 million), the Group thus recorded growth of 15.9% or EUR 63.5 million. Aggregated with the previous quarters, which also saw a strong sales performance, revenue for the year to date totaled EUR 1,329.3 million (9M 2021: EUR 1,218.2 million), an increase of EUR 111.0 million or 9.1%.

This positive performance was underpinned to some extent by exchange rate movements over the past twelve months. Changes relating to the Chinese yuan, the US dollar, the Mexican peso, and the Brazilian real in particular provided a boost to sales revenue, while the Turkish lira had an opposite effect. Adjusted for exchange rate effects, revenue expanded by EUR 67.4 million or 5.5% year on year in the first nine months of 2022 and by EUR 45.9 million or 11.5% in the third quarter of 2022.

Dr. Stefan Wolf, CEO of ElringKlinger AG, commented as follows on the Group's performance in the quarter just ended: "The quarterly results are very satisfactory. We are still in a period dominated by high levels of uncertainty and risk due to more pronounced geopolitical conflicts and economic challenges. Despite these complexities, ElringKlinger is on track to meet its targets for the year. In this context, we are benefiting from the fact that we were quick off the mark in aligning our product portfolio with the transition toward electromobility as well as from our ability to draw on a strong market position in our long-standing fields of business."

Strong revenue growth in Asia-Pacific and North and South America
In the third quarter of 2022, sales revenue expanded across the board in regional terms, with Asia-Pacific, North America, and South America/Rest of the World recording the most buoyant growth. At 81.3%, the share of foreign sales in total Group revenue was slightly higher than in the same quarter of the previous year (Q3 2021: 79.0%). In the first nine months of 2022, 80.0% of revenue was generated abroad (9M 2021: 78.2%).

Order backlog up 12% on previous year
After the exceptionally strong previous quarters and a record order backlog, order intake decelerated slightly in the third quarter of 2022. Against the backdrop of buoyant revenue, the volume ordered as part of customer production scheduling in the period from July to September 2022 was well below the previous year's level of EUR 376.7 million (Q3 2021: EUR 486.3 million). In the first nine months of 2022, new orders totaled EUR 1,408.2 million, compared to EUR 1,492.4 million in the previous year.

Compared to the same period last year (Q3 2021: EUR 1,307.3 million), the Group's order backlog increased noticeably by EUR 157.8 million or 12.1% to EUR 1,465.1 million in the third quarter of 2022. Overall, the Group's order book benefited from the direction taken by exchange rates. Assuming stable exchange rates, however, growth compared to September 30, 2021, would still have been significant at EUR 100.9 million or 7.7%.

Earnings influenced by substantial raw material, energy, and logistics costs
Originally, a period of economic recovery had widely been anticipated following the severe constraints of the coronavirus pandemic. Instead, economic activity is being shaped not only by high volatility and broad-based cost inflation but also by geopolitical tensions such as the war in Ukraine. Due to the elevated cost base, especially in respect of raw materials, energy, and logistics, EBITDA (earnings before interest, taxes, depreciation, and amortization) was EUR 8.0 million or 14.5% below the previous year's figure (Q3 2021: EUR 55.0 million) at EUR 47.0 million in the third quarter of 2022. EBITDA totaled EUR 116.5 million in the first nine months (9M 2021: EUR 182.6 million).

Earnings before interest and taxes (EBIT) amounted to EUR 18.1 million in the third quarter (Q3 2021: EUR 27.0 million) and EUR -64.9 million in the first nine months of 2022 (9M 2021: EUR 98.5 million). This translates into an EBIT margin of 3.9% in the period from July to September 2022 (Q3 2021: 6.7%) and -4.9% in the financial year to date (9M 2021: 8.1%). Adjusting reported EBIT for the exceptional items recognized in the second quarter, operating EBIT for the first nine months stood at EUR 30.5 million, corresponding to an operating EBIT margin of 2.3%.

Net working capital influenced by prudent inventory management
Against the backdrop of more expansive revenue, both trade receivables and trade payables increased to an essentially similar extent over the past twelve months (EUR 56.5 million and EUR 46.3 million respectively). At the same time, inventories expanded by EUR 70.8 million, which was attributable primarily to the difficult economic environment. The tense situation within procurement markets, which was reflected in spiraling prices for materials, energy, and logistics as well as in persistent supply-side bottlenecks, necessitated a prudent approach to stockpiling in the Group in order to ensure the availability of raw materials and primary products in support of smooth manufacturing processes. Net working capital, which takes into account not only inventories but also trade receivables and payables, totaled EUR 505.4 million at the end of the third quarter of 2022 (Sept. 30, 2021: EUR 424.3 million). Accordingly, its share of revenue in the last twelve months was 29.1%, compared to 25.4% a year earlier.

The difficulties seen within the economic environment are also reflected in the Group's cash flow figures. Due in part to higher net working capital, but also to more substantial expenses, operating free cash flow amounted to EUR -10.2 million in the third quarter (Q3 2021: EUR 8.1 million) and to EUR -26.2 million in the first nine months of 2022 (9M 2021: EUR 73.7 million).

Net financial liabilities at EUR 411 million
The dynamic growth in revenue also had an impact on the financial items of the balance sheet. Current and non-current financial liabilities increased by EUR 55.4 million to EUR 555.7 million (Sept. 30, 2021: EUR 500.3 million). At the same time, the Group had cash and cash equivalents of EUR 131.6 million (Sept. 30, 2021: 126.4 million). In total, this translates into net financial liabilities of EUR 411.0 million (Sept. 30, 2021: EUR 360.8 million). In conjunction with EBITDA, which is affected by the general hike in raw material, energy, and logistics costs, this results in a debt ratio (net financial debt in relation to EBITDA) of 2.7. As of September 30, 2021, this figure had stood at 1.3, while at the end of 2021 it had been 1.7.

Guidance for 2022 confirmed
Confirming its guidance for the current 2022 financial year, the Group continues to expect organic revenue growth to be slightly above the global market level. According to its October estimates, industry service provider IHS Markit expects global light vehicle production to increase by 6.0% in 2022, with the year-end quarter likely to grow by 2.2% year on year.

With regard to earnings before interest and taxes (EBIT), the Group anticipates a margin of around -2% to -3%. Adjusted for the exceptional items of the second quarter of 2022, totaling EUR 95.4 million, this corresponds to an EBIT margin of around 2% to 3%. The Group's projections for its other key performance indicators also remain unchanged for the annual period as a whole.

Mid-term outlook
Faced with a complex economic and geopolitical market environment, ElringKlinger considers itself to be in an excellent 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. With this in mind, ElringKlinger anticipates that it will continue to see its organic growth outpace that of global vehicle production in the future, provided that there are no abrupt and unexpected market developments against the backdrop of a general environment characterized by a high degree of uncertainty and, in some cases, considerable volatility. With regard to the earnings situation, the Group has again set itself the goal of gradually improving its EBIT margin in the medium term. The Group has also confirmed its other medium-term targets.

Key financials for the third quarter and the first nine months of 2022

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.

Dettingen/Erms, October 12, 2022 +++ ElringKlinger AG has honored its best supplier of the past year in the category "Components". The company Press Kogyo Sweden was convincing with an excellent performance during the whole year 2021. The award ceremony took place at ElringKlinger’s headquarters in Germany to also introduce & discuss future business possibilities in the E-mobility sector.

Press Kogyo Sweden is a company that is involved in the manufacturing of sheet metal products. The business relationship with ElringKlinger is existing for more than 10 years and has been increasing constantly in the past. The supplier was able to impress in 2021 with an overall supplier rating of more than 90% and was best performing in all different evaluation categories.

"This award honors the extraordinary performance of Press Kogyo Sweden in all aspects from Supply-Chain to Quality and Commercial requirements in a supplier-customer-relationship. We are looking forward to extending our reliable long-term business relationship with high-performing suppliers like PKS. The key target will be to focus together on innovative products for our e-mobility sector and deliver these under sustainable and cost competitive conditions.” says Pascal Stoll, Vice President Purchasing, describing the business relationship during the award ceremony in Dettingen/Erms.

ElringKlinger has long honored its best suppliers. The decisive factor for nomination is the assessment of various performance criteria by different company departments such as Quality Management, Supply Chain management and Purchasing. In total, ElringKlinger is supplied by over 1,000 companies for direct materials which have the chance to win this award.