Announcements

Dettingen/Erms, Ulm, August 27, 2021 +++ Science and industry are currently driving forward the industrial production of fuel cells for vehicles. To this end, the Research Factory for Hydrogen and Fuel Cells (HyFaB) is being established at the Center for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW) in Ulm. Here, experts are developing the necessary prerequisites and processes for large-scale production. In cooperation with EKPO Fuel Cell Technologies (EKPO), the ZSW is currently realizing a generic fuel cell stack as a pre-competitive and manufacturer-independent development platform. Its size, design and power density will correspond to the fuel cell systems currently used in the automotive sector. Its components should be available for research projects and for companies from mid-2022.

"Fuel cells were already on the verge of market launch twenty years ago. However, at that time they failed primarily due to the availability of hydrogen. This is now changing fundamentally with the European Green Deal and the German Hydrogen Strategy," says Prof. Dr. Markus Hölzle, ZSW board member and head of the Electrochemical Energy Technologies business unit in Ulm. Now the fuel cell must also be industrialized quickly so that it becomes available on the market in large quantities at low cost. That is the goal of the new ZSW project within HyFaB.

"The 'generic fuel cell stack' will create a kind of universal tool for the further technological development of the fuel cell. In addition, we can then provide medium-sized companies with components or entire fuel cells for their own product development," says Hölzle.

Pre-competitive offer to industry
The stack concept is designed for a maximum output of 150 kilowatts. This requires 500 individual cells, each with two metal bipolar plates, to build this generic fuel cell stack. The advantage of metal bipolar plates is that they can be manufactured using forming production processes and thus enable high volumes with short cycle times. However, the thin wall thicknesses of only a tenth of a millimeter at a length of over 40 centimeters per plate are challenging in terms of production technology.

The bipolar plates are crucial components of a fuel cell: On the two outer sides, the so-called cathode and anode, they ensure the even distribution of hydrogen and atmospheric oxygen. At the same time, the cooling water is conducted through the inside of the plates. This is achieved by means of extremely filigree channel and web geometries as well as a distribution and sealing concept. These structures are simulated and optimized using computational fluid dynamics (CFD).

"Participation in this lighthouse project, the close contact with institutional research with the ZSW and the knowledge gained about series production processes as a result offers real added value for us. Above all, HyFaB's highly interesting network for fuel cell stack production, for example with the ZSW or even with the Fraunhofer Institute ISE in Freiburg with their decades of experience in fuel cell research, is enormously important for the automotive and industrial locations of Baden-Württemberg, Germany and Europe. The close cooperation with the plant manufacturers involved in HyFaB opens up exciting new opportunities for us," says EKPO CCO Julien Etienne.

The project is being funded by the Baden-Württemberg Automotive Industry Strategy Dialogue through the Baden-Württemberg Ministry for the Environment, Climate and Energy Management.

The HyFaB
In order to rapidly advance the mass production of fuel cells, the ZSW is establishing HyFaB at the Ulm site as an open industry platform to develop automated manufacturing and quality assurance processes, factory acceptance tests and commissioning of fuel cell stacks. HyFaB is open to partners from the automotive and fuel cell supplier industry as well as mechanical and plant engineering, especially small and medium-sized enterprises (SMEs).

HyFaB is a publicly funded project: the Baden-Württemberg Ministry of Economics is supporting a new building with 3,300 square meters at the ZSW site in Ulm on Lise-Meitner-Strasse with 10.4 million euros. Construction work officially began on February 9, 2021. The German Federal Ministry of Transport has announced a further 30 million euros for industrial projects for production and process research. In addition to the ZSW, Fraunhofer ISE from Freiburg and the VDMA (German Engineering Federation) are also involved in the HyFaB project.

• German government selected 62 large-scale hydrogen projects, 12 of them from the mobility sector
• Establishment of hydrogen technologies as a further step towards achieving climate neutrality
• ElringKlinger submitted application for development and industrialization of a new generation of fuel cell stacks
• Subsidiary EKPO Fuel Cell Technologies shall be responsible for realization

Dettingen/Erms (Germany), August 25, 2021 +++ The German government has recently made its selection to promote hydrogen technology as part of an "Important Project of Common European Interest" (IPCEI). ElringKlinger has applied to develop a new generation of fuel cell stacks for the commercial vehicle sector and has been pre-selected. The stacks will be used primarily in commercial vehicles, but also in buses and in maritime applications, on rail or as stationary units. In addition to development, series production of the innovative, high-performance fuel cell stacks is being targeted. Its subsidiary EKPO Fuel Cell Technologies shall be responsible for the realization of this project.

With this so-called hydrogen IPCEI, the German government is fully committed to developing hydrogen technology for mobility. Green hydrogen and fuel cells across all modes of transport are an important complement to battery-only vehicles, he said. This confirms ElringKlinger's view that both pure battery-electric drive and fuel cell technology represent decisive pillars for the future. Depending on the application, the most advantageous drive technology will be selected to make tomorrow's mobility climate-friendly.

The implementation of the IPCEI is part of the German government's National Hydrogen Strategy and aims to establish hydrogen technology competitively in Europe and especially in Germany. For Germany, the Federal government selected 62 out of 230 project outlines, 12 of which were from the mobility sector. The selected projects cover large parts of the hydrogen market's value chain. A total of more than EUR 8 billion will be made available for this purpose jointly by the German Federal Ministry of Economics and the German Federal Ministry of Transport, as well as the respective German states.

The aim is for the national proposals to be approved by the European Commission as regards state aid law before the end of the year. As part of the European initiative, cooperation between the respective nationally proposed companies is also to be promoted to build a European hydrogen economy. With its two parent companies from Germany and France, ElringKlinger and Plastic Omnium, EKPO already fully embodies this European idea. Thanks to Plastic Omnium's expertise in hydrogen storage as well as the know-how of its Austrian subsidiary for hydrogen system solutions, the two partners can provide a full response to the challenges of the entire European on-board value chain for hydrogen vehicles.

• Revenue up markedly in second quarter (+56%) and first half of 2021 (+26%)
• EBIT at EUR 23.0 million in second quarter and EUR 71.4 million in first half of 2021 despite challenging environment; EBIT margin at 5.9% and 8.7% respectively
• Operating free cash flow again widened to EUR 65.6 million in first half; net debt reduced by further EUR 216.6 million to now EUR 363.3 million
• Existing syndicated loan facility expanded by EUR 100 million to EUR 450 million and extended until early 2026
• Outlook for 2021 financial year confirmed

Dettingen/Erms (Germany), August 5, 2021 +++ ElringKlinger continued its strong start to the year in the second quarter of 2021. The Group generated revenue of EUR 393.6 million, an increase of EUR 141.4 million or 56.1% compared to the same period last year. If exchange rates had remained unchanged, the figure would have been up by EUR 146.3 million or 58.0%. According to data presented by industry service provider IHS, global automobile production grew by 48.6% in the same period. The Group also made strong gains in the first half of 2021 as a whole, with revenue expanding by EUR 169.2 million to EUR 817.6 million when compared to the first six months of the previous year (EUR 648.8 million). Without currency effects, revenue would have been up by an additional EUR 19.4 million.

After a sharp pandemic-induced drop in revenue in the previous year, there were signs of recovery in all regions. In Germany, Group revenue increased by 37% year on year in the second quarter of 2021 and by 92% in the region encompassing the Rest of Europe. Revenue from sales in North America also expanded strongly with an increase of 67%. In the Asia-Pacific region, meanwhile, growth was more modest at 20%, as the first quarter of the previous year in particular had been affected by closures and a decline in revenues in China.

Marked improvement in orders
The global recovery is also reflected in the Group's order books: the positive trend seen in the first three months continued in the second quarter of 2021 with incoming orders of EUR 429.5 million. Overall, this represents a significant increase compared to the second quarter of 2020, when the Group had recorded incoming orders worth EUR 192.6 million against the backdrop of lockdown measures.

As a result, the Group's order backlog also increased. After EUR 1,186 million as of March 31, 2021, the order book was expanded once again in the period under review, taking the figure to EUR 1,222 million at the end of the first half. A year earlier, under the impact of the pandemic, the figure had stood at EUR 929.4 million. This translates into a gain of 31.4%.

Earnings visibly stronger
After the slump in revenue last year, the Group managed to improve its earnings performance noticeably, benefiting in part from the successful continuation of its efficiency enhancement program. In the second quarter of 2021, it generated earnings before interest and taxes (EBIT) of EUR 23.0 million, up EUR 55.4 million on the prior-year figure (EUR -32.4 million). As a result, earnings per share attributable to the shareholders of ElringKlinger AG amounted to EUR 0.13 in the second quarter and EUR 0.72 in the first six months.

Asked to comment on the Group's performance, Dr. Stefan Wolf, CEO of ElringKlinger AG, said: "Our quarterly results confirm that we are fully on track. Our global efficiency enhancement program continues to take effect, on the back of which the Group's key financial indicators have improved noticeably both in terms of revenue and earnings as well as in respect of cash flow. At 5.9% in the quarter, our EBIT margin is within the targeted range of around 5 to 6% for the full 2021 financial year. In addition, we generated substantial operating free cash flow in the first six months, allowing us to further reduce our net financial liabilities. From a financial perspective, this puts us in an even more robust position than before - in support of the ongoing transformation process and our future endeavors."

Financial strength further cemented
The Group maintained its disciplined investment approach in the quarter under review and was able to further optimize net working capital. Its ratio (in % of Group revenue) improved from 27.8% a year ago to 25.0% at the end of the reporting period. Overall, the Group generated operating free cash flow of EUR 37.0 million in the second quarter of 2021 and EUR 65.6 million in the first half of the year. Net debt was slashed by EUR 216.6 million, down from EUR 579.9 million as of June 30, 2020, to EUR 363.3 million. Upon introduction of the efficiency enhancement program at the end of the first quarter of 2019 net debt had amounted to EUR 795.5 million. Since then, ElringKlinger has significantly reduced its net debt ratio (net debt in relation to EBITDA) - from 3.8 to 1.4 in the past twelve months alone.

Expansion of syndicated loan
In order to provide additional room for maneuver in financial terms, ElringKlinger agreed an extension to the financing framework with the existing partners of the syndicated loan concluded in 2019. As part of this new arrangement agreed after the first-half reporting period in July 2021, the syndicate banks will make a further EUR 100 million available to the Group. Additionally, the term of the entire borrowing facility of now EUR 450 million was extended by two years until early 2026.

Guidance confirmed
Despite the persistently high risk of infection associated with the coronavirus pandemic, global economic activity has been recovering visibly. Fundamentally, this is also evident in the automotive industry, although markets around the globe continue to be exposed to major uncertainties. The situation within commodity markets is tense, and bottlenecks in the semiconductor industry may have a regional or global impact on vehicle production output. In addition, there are concerns over the possibility of new waves of covid-19 infection later in the year, which could again have an impact on economic activity.

Against this backdrop, ElringKlinger continues to anticipate a level of organic revenue growth that is likely to roughly match the rate of expansion in global automobile production. In terms of consolidated earnings, ElringKlinger again anticipates an EBIT margin of around 5 to 6% calculated in relation to Group revenue. The outlook for the other key financial indicators also remains unchanged.

Key financials for the second quarter and first half of 2021

• 63.2% of voting share capital represented at meeting
• All proposed resolutions approved by significant majority in each case
• CEO Dr. Stefan Wolf looks back on challenging year in which the company charted important routes for the future

Dettingen/Erms (Germany), May 18, 2021 +++ At today's 116th Annual General Meeting, which was again held in a virtual format due to the pandemic, the shareholders of ElringKlinger AG approved all items on the agenda by a large majority. A total of 63.2% of the voting share capital were represented. At last year's Annual General Meeting, which was also held in a virtual format, this figure had stood at 60.4%. Turnout was expected to be high, as 2,364 shareholders had registered prior to the specified deadline - 237 or 11% more than in the previous year.

2020 financial year
In his speech, CEO Dr. Stefan Wolf looked back on an extraordinary and challenging year in which the coronavirus had impacted heavily on the automotive industry: "Despite the pandemic-induced decline in revenue, we were able to achieve a solid bottom-line result overall, in addition to further optimizing net working capital and reducing debt by a significant margin." Special thanks were extended to the employees of the Group, whose commitment, dedication, and flexibility had been key contributors to this performance, especially in the 2020 year of the coronavirus.

The CEO also focused on the future of the Group. Alongside its operational accomplishments, the company also laid important strategic groundwork in 2020, as Dr. Wolf emphasized: "Both the strategic partnership with Airbus and the strategic alliance with Plastic Omnium clearly illustrate that ElringKlinger is on track. This is complemented by the financial achievements of our efficiency enhancement program, which again allowed us to sustainably increase our financial clout in 2020 - despite the coronavirus." As ElringKlinger's CEO pointed out, the start to 2021 had been very encouraging not only due to the program aimed at raising efficiency levels. In addition to recording a buoyant first quarter in financial terms, the Group secured a high-volume order for battery components in the mid-triple-digit million euro range. Furthermore, ElringKlinger was one of only eleven companies to receive government funding for the establishment of a European battery value chain. Drawing on its innovative cell housing design, ElringKlinger helps to reduce the CO2 footprint in manufacturing by up to 40% by using less material.

Approval of all items on the agenda
In addition to the submission of the approved annual financial statements, the agenda also included the resolution on a new compensation system for the Management Board, which was passed by the Annual General Meeting and is applicable as from January 1, 2021. It focuses on the performance-based remuneration of the Management Board with regard to their contribution to the sustainable and long-term development of the company. Alongside core financial performance indicators, the key performance criteria defined for this purpose also take into account the achievement of sustainability goals for the very first time.

The shareholders also approved the compensation system for the Supervisory Board and the associated amendment to the Articles of Association. In addition, they approved the actions of the Management Board and the Supervisory Board with 98% and 97% of the votes respectively. Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft, Stuttgart, was appointed as auditor. Due to the company's earnings performance in the 2020 financial year, ElringKlinger had already announced the suspension of its dividend in March 2021 in order to further strengthen the Group in support of its ongoing transformation process.

A detailed summary of the individual voting results and the speech of the CEO for viewing and reading can be found on the homepage of ElringKlinger AG (http://www.elringklinger.com) - in the Investor Relations section under the heading "Annual General Meeting."

• Subsidiary of ElringKlinger and Plastic Omnium receives series production order covering a projected total volume in the high double-digit million euro range
• Contract with AE Driven Solutions for exclusive, multi-year supply of NM5-evo fuel cell stacks from 2022 onward
• AE Driven Solutions equips delivery vehicles for urban spaces with fuel cell systems

Dettingen/Erms (Germany), May 17, 2021 +++ The order pipeline of EKPO Fuel Cell Technologies GmbH (EKPO), the joint venture between ElringKlinger (60%) and Plastic Omnium (40%), is continuing to fill up: Aachen-based mobility company AE Driven Solutions GmbH (AEDS) has awarded EKPO an exclusive, multi-year contract to supply fuel cell stacks of the type NM5-evo. The order covers a planned volume in the high double-digit million euro range. The stacks are designed to meet AEDS's key criteria of performance, durability, and smooth operation and are to be fitted to delivery vehicles as part of the company's system integration efforts, the aim being to offer environmentally friendly drive technology in urban spaces. Series production of the stacks is scheduled to commence in the first half of 2022.

The NM5-evo stack is the newest addition to EKPO's stack portfolio. Alongside high power density of up to 4.6 kW/l in the cell block, it meets the customer's exacting standards in respect of durable, compact fuel cell stack design. In addition to the comparatively low weight, this includes a high power spectrum of up to 76 kW in pressure mode. Furthermore, the stack design offers the best possible basis when it comes to scaling and modularization, thus allowing the end customer to design its usage application with maximum flexibility and efficiency.

Like EKPO, AEDS has geared its business to next-generation mobility. The Aachen-based company equips vehicles for inner-city transport with eco-friendly fuel cell systems. In this context, the AEDS team can draw on its extensive expertise in the field of e-mobility. Following the successful development of the Streetscooter as a battery-powered delivery vehicle by the company's core team and its launch as a series application, AEDS is now using its experience to deploy fuel-cell-powered vehicles in conjunction with new mobility concepts in urban regions. In addition to CEO Tobias Reil, a former member of the executive board and head of production at Streetscooter GmbH, the AEDS team includes the shareholders Prof. Achim Kampker, one of the founders of Streetscooter GmbH, and Stefanie and Alexander Peters, managing partners of the NEUMAN & ESSER GROUP, which covers the entire value chain from the generation, compression, production and storage of hydrogen as well as green gases. In collaboration with other companies and institutions such as TÜV Rheinland, the PEM Group, and RWTH Aachen University, a next-generation mobility cluster centered around battery and hydrogen technologies is currently being created at the AEDS site in Aachen.

When it comes to evolving climate-friendly mobility, AEDS sees, similar to EKPO, the significant benefits associated with hydrogen-based technologies. In those cases in which the requisite hydrogen is produced by wind, solar, or water power, the drive system that relies on such fuel cell technology can be considered completely CO2-neutral. In the field of mobility, the advantages of hydrogen come to the fore wherever idle time is costly. In addition to long-distance transport, this applies above all to the area of last-mile delivery, i.e., applications with a long range or cyclical operation. Areas of use for vehicles include commercial and delivery vehicles as well as buses, but also industrial applications in the mobile sector such as special vehicles and materials handling equipment. In addition, hydrogen-based fuel cell drives are suitable for trains, ships, or aircraft.

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.

About EKPO Fuel Cell Technologies
EKPO Fuel Cell Technologies (EKPO), headquartered in Dettingen/Erms (Germany), is a leading joint venture in the development and large-scale production of fuel cell stacks for CO2-neutral mobility. The company is a full-service supplier for fuel cell stacks and components used in passenger cars, light commercial vehicles, trucks, buses, as well as in train and marine applications. Within this context, the company is building on the industrialization expertise of two established international automotive suppliers - ElringKlinger and Plastic Omnium.

The aim of the joint venture is to develop and mass-produce high-performance fuel cell stacks in order to further advance CO2-neutral mobility - whether on the road, rail, water or off-road.