Announcements

• Major European vehicle manufacturer has placed an order with EKPO for development and supply of bipolar plate prototypes
• Bipolar plate intended for use in future stack generations
• Development aimed at combining superior power density with compact design

Dettingen/Erms (Germany), September 20th, 2022 +++ EKPO Fuel Cell Technologies GmbH (EKPO) has received an order from one of European leading carmakers covering the development of a new bipolar plate. Under the terms of the contract, EKPO develops prototypes and supplies them to the vehicle manufacturer for planned use in a fuel cell vehicle. Taking pole position in a competitive field, EKPO had been awarded the contract in acknowledgement of the high power density and compact design delivered by its market-leading bipolar plates.

"This contract from a well-known European car manufacturer is a testimony to EKPO's first-class competence in fuel cell technology, as a supplier of stacks and individual components," says Julien Etienne, Chief Commercial Officer at EKPO. "Combining high performance and compact design, our product portfolio is a truly compelling proposition. In addition, customers trust EKPO's demonstrable industrialization skills and our ability to deliver stacks and components in automotive quality standard and high-volume quantities."

Another key factor when it came to securing the development contract was the long-standing spirit of collaboration between the two companies. EKPO can build on a proven track record of developing and researching fuel cell technology that spans more than 20 years, benefiting from the market leading metal forming competence of its parent company ElringKlinger. Operations surrounding the development and production of the prototypes to be supplied to the major OEM are based locally in Germany.

PEMFC metal bipolar plates offer tangible advantages with regard to costs and – an aspect that is particularly important for mobile applications – power density and the cold-start capability of fuel cells. Using high-precision, progressive die suited to volume production, EKPO manufactures bipolar plates in a fully automated, interlinked manufacturing process.

Hanover, Dettingen/Erms (Germany), September 15, 2022 +++ "Transporting experiences" is the motto adopted by ElringKlinger for its presentation at this year's IAA TRANSPORTATION. The long-standing supplier and partner to the commercial vehicle industry will be focusing on the topics of electromobility and lightweight construction at the event. The world's leading trade fair for mobility, transport and logistics is scheduled to take place in Hanover from September 20 to 25, 2022. The ElringKlinger exhibition booth is located in Hall 12, C44. Visitors will also have the opportunity to experience ElringKlinger technologies for themselves during a test drive in Hall 11.

The highlight of ElringKlinger's appearance at this year's event is a show truck illustrating the Group's extensive portfolio for the commercial vehicle sector. These include innovations in the field of battery technology, such as a 60 volt module based on cylindrical lithium-ion cells for integration into a battery storage unit up to a total system voltage of 500 volts as well as numerous components.

ElringKlinger will also be showcasing a high-performance torque vectoring Electric Drive Unit (EDU), which consists of two identical EDUs that are controlled independently. This provides the basis for active torque vectoring. This EDU version is used primarily in high-power or all-wheel drive vehicles.

In future years, hydrogen mobility is set to play an important role in the commercial vehicle sector. In establishing the EKPO Fuel Cell Technologies joint venture, ElringKlinger, together with Plastic Omnium, took a decisive step forward when it comes to series production in the field of fuel cell technology. Various stack platforms will be presented at IAA Transportation 2022: they include the "NM12 Twin" low-temperature fuel cell stack module with 598 cells based on metallic bipolar plates – with a power rating of up to 205 kWel.

Every kilogram counts in pursuit of lower fuel consumption and CO2 emissions in conventional drives or an extended range in the case of electric vehicles, particularly with regard to the commercial sector. The solution is lightweighting, an area of engineering expertise that ElringKlinger will also be showcasing at its booth – including innovative underbody protection for battery storage units made of a thermoplastic composite material (vs. conventional underbody protection made of aluminum).

Last but not least, the company's presentation will include optimized products within the field of sealing and shielding technology.

ElringKlinger at IAA Transportation 2022
Hall 12 | Booth C44

• EKPO strengthens its commitment in China with establishment of Chinese subsidiary
• Joint investment and funding agreement signed between EKPO and local government (SND)
• Production of first fuel cell stacks on site in Suzhou before the end of this year

Dettingen/Erms (Germany), September 6th, 2022 +++ EKPO Fuel Cell Technologies GmbH (EKPO) is significantly expanding its activities in China. For this, the company will initially invest a volume in mid-single-digit million euro at its site in Suzhou. Humphrey Chen, Board Member of the now established Chinese subsidiary of EKPO, attended an official ceremony in the presence of numerous government representatives to seal a joint declaration between EKPO and the local government (SND). The signed agreement outlines EKPO’s planned investments and SND's supporting subsidies. This agreement furthers EKPO’s involvement in the local Hydrogen ecosystem, after the establishment of the Chinese subsidiary EKPO China also in Suzhou, formally completed in legal terms in June.

"China is a key future market for EKPO. Our market-leading stack technology offers high-performance products and makes a decisive contribution to sustainable mobility in the world's largest automotive market," says Dr. Gernot Stellberger, EKPO's managing director responsible for strategic issues. "The establishment of EKPO China at the Suzhou site provides EKPO with an excellent basis to further tap the potential of the Chinese fuel cell market. This is the logical next step in establishing local value creation in fuel cell technology in China. The goal is to manufacture the first stacks in Suzhou before the end of this year."

The investments in Suzhou and the establishment of EKPO Chinese subsidiary are key to serve the Chinese market and create a base for fuel cell technology in Asia. This production capacity complements the installation of a fuel cell test bench at the beginning of the year, in materializing EKPO's ambitions in China, against the background of very positive feedback from several successful fuel cell projects with local customers.

• Group revenue up by 9.4% to EUR 430.6 million in the second quarter (Q2 2021: EUR 393.6 million) despite difficult economic conditions
• Operating EBIT at EUR -1.6 million, operating EBIT margin at -0.4%; EBIT including impairments of EUR 95,4 million at EUR -97.1 million
• Order backlog again at record level of EUR 1,553 million; order intake of EUR 453.2 million translates into growth of EUR 23.7 million (Q2 2021: EUR 429.5 million) 
• Outlook for 2022: Organic growth in revenue slightly above market level and operating EBIT margin of around 2 to 3% expected

Dettingen/Erms (Germany), August 4, 2022 +++ ElringKlinger AG (ISIN DE 0007856023 / WKN 785602) has published its financial results for the second quarter of 2022. The Group posted revenue of EUR 430.6 million (Q2 2021: EUR 393.6 million), thus generating growth of 9.4 % amid persistent strains on supply chains as well as the repercussions of the war in Ukraine and the coronavirus pandemic. The expansion in revenue was underpinned by exchange rate movements, especially with regard to the Chinese yuan, the US dollar, and the Mexican peso. Organically, i.e., adjusted for exchange rate and M&A effects, revenue in the second quarter of 2022 increased by EUR 21.9 million or 5.6% compared to the same period of the previous year.

Asked to comment on the quarterly results, Dr. Stefan Wolf, CEO of ElringKlinger AG, said: "The difficult economic conditions make for a challenging market environment. In spite of this, we were again able to expand revenue in the second quarter of 2022 and outperform the market as a whole in terms of growth. This performance, also seen in conjunction with our encouraging order situation, illustrates that ElringKlinger is very well positioned and that we are delivering the right solutions with the help of our products."

Global vehicle production showed no signs of growth in the second quarter of 2022, according to industry data provider IHS. The first half of 2022 actually saw the market decline by 1.8%, while ElringKlinger recorded organic revenue growth of 2.6%.

Growth in all regions
ElringKlinger saw revenue expand in all sales regions in the second quarter of 2022. The most pronounced rate of growth compared to the same quarter last year was attributable to North America and South America/Rest of the World by 24.4% resp. 31.1%. In the quarter under review, 79.5% (Q2 2021: 77.8%) of revenue was generated abroad, in the first half of 2022 79.3% (H1 2021: 77,8 %) or 78.8% when adjusted for currency effects (H1 2021: 77.8%).

Brimming order book at record level
Despite challenging economic conditions, ElringKlinger also benefited from forward momentum with regard to orders. Its order backlog in the second quarter of 2022 rose to a new record level of EUR 1,552.5 million, which translates into an expansion of EUR 330.9 million or 27.1% compared to the figure reported for the same period last year (Jun. 30, 2021: EUR 1,221.6 million).

ElringKlinger was also able to increase its order intake compared to the same quarter of the previous year. In the period from April to June 2022, the Group recorded incoming orders of EUR 453.2 million (Q2 2021: EUR 429.5 million), an increase of EUR 23.7 million or 5.5%.

Earnings performance affected by persistently high raw material, energy, and logistics costs as well as impairments
Having already been exposed to severe macroeconomic strains, world markets were buffeted further in the first three months of the year by the war between Russia and Ukraine. The situation was compounded from March 2022 onward by government lockdown measures introduced in several regions across China, as a result of which the disruption of global supply chains continued and intensified. Overall, the aforementioned factors had an impact on ElringKlinger's earnings in the period under review, as did the persistently high level of raw material, energy, and logistics costs. EBITDA (earnings before interest, taxes, depreciation, and amortization) stood at EUR 26.7 million in the second quarter of 2022, compared to EUR 50.4 million in the months from April to June 2021.

In recognition of the rapid surge in interest rates in the second quarter of 2022, the Group conducted an impairment test on an ad hoc basis, which led to impairment losses of goodwill totaling EUR 86.1 million. In addition, the Group recognized an impairment loss of EUR 9.3 million for property, plant, and equipment.

As a consequence of these factors, earnings before interest and taxes (EBIT) amounted to EUR
-97.1 million (Q2 2021: EUR 23.0 million). The EBIT margin for the period from April to June 2022 was -22.5% (Q2 2021: 5.9%). For the first half of the year, the EBIT margin was -9.6% (H1 2021: 8.7%). Adjusting EBIT for the one-off exceptional item of impairments, operating EBIT was EUR -1.6 million in the second quarter of 2022 and EUR 12.5 million in the first half of 2022, corresponding to an EBIT margin of -0.4% for the second quarter and 1.4% for the first half under review.

Positive actuarial effects on pension provisions
Higher interest rates also had an impact on equity and liabilities. Pension provisions decreased significantly by EUR 45.7 million to EUR 95.0 million in the second quarter of 2022, compared to EUR 140.7 million at the end of 2021, due to the actuarial effect of higher interest rates at the end of the first half. This was largely recognized directly in equity.

Due to the tense situation within the procurement markets, as evidenced by higher prices for materials and bottlenecks in supply, for example, inventories were adjusted for the purpose of safeguarding availability of essential materials in production. As a result, net working capital (i.e., inventories and trade receivables less trade payables) increased by EUR 52.9 million to EUR 465.9 million, which corresponds to a ratio of 27.9% (Q2 2021: 25.0%) in relation to Group revenue. With investments trending slightly higher, especially with regard to the strategic future areas, operating free cash flow amounted to EUR -16.0 million in the second quarter of 2022 (Q2 2021: EUR 65.6 million). The Group's net financial liabilities totaled EUR 389.5 million as of June 30, 2022, a significantly lower level when compared across multiple years. The higher net debt ratio of 2.5 (Q2 2021: 1.4) was attributable primarily to the Group's earnings performance, mainly to persistently high raw material, energy, and logistics costs as well as the exceptional items in the fuel cell business, which were still included in the second quarter of 2021.

Outlook 2022: Organic growth in revenue above market level, operating EBIT margin of around 2 to 3%
The positive situation in terms of orders and the general forecasts in respect of global demand for light vehicles point to potential revenue growth in the current financial year. According to the latest estimates, industry service provider IHS anticipates global light vehicle production to increase by 4.7%. Against this background, ElringKlinger expects to exceed this level of expansion slightly on the basis of organic revenue growth.

Earnings continue to be influenced by a wide range of multifaceted factors, the effects and extent of which are currently difficult to ascertain. The associated risks remain significant and the uncertainties are still considerable. Based on these underlying conditions, the Group anticipates an operating EBIT margin of around 2 to 3% in relation to Group revenue for the current financial year, excluding the exceptional effects of impairments. This corresponds to an EBIT margin at Group level of around -2 to -3%.

Prospect of positive operating free cash flow
Given the challenges facing the market as a whole, a prudent approach to working capital management is considered essential in an effort to ensure the availability of raw materials and primary products at all times. As regards investments, the Group will continue to focus on new drive technologies and maintain its disciplined approach. Overall, the Group expects slightly positive operating free cash flow in 2022.

Based on the projections described above, the Group expects its net debt ratio (net financial liabilities in relation to EBITDA) for the current financial year to be between 2.0 and 3.0. With regard to the equity ratio, the Group expects to remain within the long-term target range of 40% to 50% of total capital in 2022.

Mid-term outlook
Despite the challenging factors currently driving the business environment in which ElringKlinger operates, the company considers itself to be well positioned in the medium to long term. ElringKlinger was quick off the mark in its efforts to embrace the transition towards e-mobility with components engineered specifically for battery and fuel cell systems. Addi­tionally, the Group has a strong market position centered around its long-standing business. Provided that things do not develop abruptly amid the many uncertainties to which the markets are currently exposed, ElringKlinger essentially continues to take the view that it will outpace global vehicle production growth at an organic level. With regard to earnings performance, the Group has again set itself the goal of gradually improving its EBIT margin in the medium term. The Group can also confirm its other medium-term targets.

Key financials for the second quarter and first half 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, July 26, 2022 +++ ElringKlinger AG has honored its best supplier of the past year in the category "Raw Materials". The Turkish company ASAŞ Alüminyum Sanayi Ve Ticaret A.Ş. was convincing with an excellent performance during the whole year 2021. The award ceremony took place at ASAŞ's main manufacturing site in Sakarya, Turkey.

ASAŞ is a company that is involved in the manufacturing of flat rolled aluminum products. The business relationship with ElringKlinger has been initiated about 5 years ago and has been increasing significantly with higher volumes in the past two years.

The supplier was able to impress in 2021 with an overall supplier rating of 97 percent.

"This award honors the excellent performance of the whole ASAŞ team and especially all their employees in the operations. The company is a perfect example to show that even in a challenging environment an outstanding delivery performance is possible. ASAŞ was showing high flexibility in terms of demands and was able to deliver the required quantities on time and even without any quality complaint. This in combination with the cooperative manner and the focus on our requirements of innovation and sustainability. That’s what we are expecting from our strategic partners like ASAŞ." says Pascal Stoll, Vice President Purchasing, describing the business relationship during the award ceremony.

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 which have the chance to win this award.