Announcements

• Group revenue up by 10.7% to all-time high of EUR 1,798 million
• EBIT before exceptional items at EUR 61.0 million; operating EBIT margin slightly above guidance at 3.4%; EBIT at EUR -42.4 million
• Continuity in dividend payment: proposal of EUR 0.15 per share
• Guidance 2023: revenue growth projected to be substantially above market level and adjusted EBIT margin at around 5%
• CEO Dr. Stefan Wolf: "ElringKlinger is very well positioned to embrace the transformation as an opportunity for profitable growth."

Dettingen/Erms (Germany), March 28, 2023 +++ ElringKlinger AG has presented its definitive, audited results for the 2022 financial year as part of its 2022 annual report. In the financial year just ended, the Group managed to propel revenue by 10.7% to EUR 1,798.4 million (2021: EUR 1,624.4 million). Compared to the pre-pandemic year of 2019, ElringKlinger expanded its sales revenues by 4.1%. Generating organic revenue growth of 7.4% and performing in line with the Group's outlook, the ElringKlinger Group succeeded in outpacing the global automobile industry as a whole, which saw production output increase by 6.7% according to data published by industry service provider S&P Global Mobility.

Asked to comment, Dr. Stefan Wolf, CEO of ElringKlinger AG, said, "The financial year just ended was dominated by geopolitical conflicts, spiraling inflation, and elevated commodity and energy prices. Despite these challenging exogenous factors, ElringKlinger met, and in some instances exceeded, the annual targets it had set itself in August. Having set its strategic focus on electromobility at an early stage, ElringKlinger now holds an excellent vantage point. Building on stable cash flows and a transformed product portfolio, ElringKlinger has established a very solid base position for the future. Among other things, we have secured high-volume contracts in the field of new drive technologies, and these projects are now gradually being implemented. Against this backdrop, we can embrace the far-reaching transformation as an opportunity for profitable growth under our own steam."

Revenue growth in all regions
ElringKlinger's strongest growth during the 2022 financial year was attributable to North America, where sales revenue rose by 17.6% or EUR 69.1 million to EUR 462.8 million (2021: EUR 393.7 million). The Asia-Pacific region, meanwhile, saw ElringKlinger generate revenue of EUR 354.5 million (2021: EUR 325.4 million), despite partial lockdowns in the wake of China's zero-covid strategy, representing growth of EUR 29.1 million or 8.9%. The region encompassing the Rest of Europe, ElringKlinger's strongest revenue driver, delivered growth of EUR 37.8 million or 7.7%, taking the figure to EUR 526.6 million in the 2022 financial year (2021: EUR 488.8 million). ElringKlinger's home region, Germany, also produced forward momentum, with revenue expanding by EUR 19.2 million or 5.5% in the year under review. In total, domestic sales revenue thus amounted to EUR 365.9 million (2021: EUR 346.7 million).

Earnings influenced by exceptional factors
In terms of earnings, ElringKlinger slightly exceeded its guidance presented in August 2022, with EBIT before exceptional items of EUR 61.0 million and an operating margin of 3.4%. In this context, a major influencing factor was the cost of raw materials, energy, and transportation, which remained at a very high level in the financial year just ended. As early as the second quarter of 2022, the Group had also recognized goodwill-related impairment losses in response to the rapid rise in interest rates. These, together with impairments of intangible assets and property, plant, and equipment, exerted downward pressure on earnings before interest and taxes (EBIT). Including these exceptional items, the Group's reported EBIT stood at 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 was within the target range of -2 to - 3%.

After deducting income tax expenses and having factored in the share of net income attributable to non-controlling interests, net income attributable to the shareholders of ElringKlinger AG for the year under review stood at EUR -89.1 million (2021: EUR 55.7 million). Correspondingly, earnings per share totaled EUR -1.41 (2021: EUR 0.88).

The ElringKlinger Group's financial position and cash flows remained stable and very solid in the 2022 financial year. Capital expenditure on property, plant, and equipment amounted to €69.3 million (2021: €70.0 million). ElringKlinger adapted its approach to inventory management in line with prevailing circumstances in an effort to ensure smooth production processes at all times, particularly against the backdrop of supply chain issues and the limited availability of materials in some cases. Nevertheless, the net working capital ratio remained largely unchanged year on year at 25.3% (2021: 24.8 %). At EUR 14.8 million (2021: EUR 72.0 million), ElringKlinger again generated positive operating free cash flow, which provided the basis for a slight reduction in net debt to EUR 364.2 million (Dec. 31, 2021: EUR 369.2 million) despite challenging underlying conditions. At 43.8% (Dec. 31, 2021: 47.0%), the equity ratio at the end of the 2022 financial year remained within the long-term target range of 40% to 50%.

Proposed dividend of EUR 0.15
The annual financial statements of ElringKlinger AG, which are relevant for the payment of dividends, showed a net loss of EUR 45.5 million at the end of the reporting period (2021: net income of EUR 70.11 million).

Taking into consideration the far-reaching process of transformation and the net loss for the year posted by ElringKlinger AG on the one hand as well as the investment interests of shareholders in the Group on the other, the Management Board and the Supervisory Board are looking to retain a balanced dividend policy. At the same time, both boards are committed to ensuring continuity, particularly against the background of the favorable projections made for the coming financial years.

In the 2022 financial year, therefore, reversals of revenue reserves amounting to EUR 55.0 million (2021: allocation of EUR 26.6 million) were made. Thus, the reported unappropriated surplus was identical to the previous year at EUR 9.5 million. In unison with the Supervisory Board, the Management Board therefore proposes to the Annual General Meeting that an unchanged dividend of EUR 0.15 per share (2021: EUR 0.15 per share) be paid out for the 2022 financial year.

Guidance 2023: revenue growth projected to be substantially above market level and adjusted EBIT margin at around 5%
With the outcome of the war in Ukraine impossible to predict and other potential geopolitical conflicts brewing, the general situation is still one of major uncertainty and high volatility on the world’s markets. Raw material, energy, and transportation costs are expected to remain largely unchanged overall.

Against this background of persistently challenging underlying conditions that are plagued by uncertainty, the Group is anticipating further growth in the future as well in light of the favorable projections for global automobile production and its own healthy order book. This will be driven above all by orders in the strategic fields of the future, i.e., in the area of lightweighting and in the various fields of electromobility. Therefore, the Group is anticipating a level of organic revenue growth in the 2023 financial year that will substantially outstrip the trend in global automotive production. The latter has been estimated at +3.3% for 2023 by S&P Global Mobility.

In addition, ElringKlinger expects to further improve its earnings situation in the current financial year thanks to its strict cost discipline and the anticipated increase in revenue. Overall, the Group is forecasting adjusted EBIT of around 5% of its revenue for 2023. In future, ElringKlinger will report adjusted EBIT so that it can compare the Group's operating profitability over several periods in a way that discounts the effect of exceptional items, such as impairment losses, restructuring costs, or changes in the scope of consolidation.

Medium-term forecast
ElringKlinger considers itself to be in an excellent strategic 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. In the medium term, the Group anticipates disproportionately high organic growth compared to global automotive production levels and continues to expect to improve its adjusted EBIT margin gradually over this period.

The annual report for 2022 is available online at:
https://gb2022.elringklinger.de/

Key financials for FY 2022 and Q4 2022

* Proposal to Annual Meeting 2023

For further information, please contact:

ElringKlinger AG  I  Strategic Communications
Dr. Jens Winter
Phone: +49 7123 724-88335 | E-Mail: jens.winter[at]elringklinger.com

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.

• Purchase order covers total volume in mid-triple-digit million euro range over five year
• Supply of metallic bipolar plates for carmaker's future fuel cell system
• Production to commence in 2026
• EKPO plans substantial double-digit million euro investment

Dettingen/Erms, March 20, 2023 +++ EKPO Fuel Cell Technologies GmbH (EKPO), an entity fully consolidated within the Group of majority shareholder ElringKlinger AG (ISIN DE0007856023, WKN 785602), and operated in partnership with French automotive supplier Plastic Omnium, which holds the remaining ownership interests, secured a contract from a global automotive manufacturer to supply mass-produced bipolar plates for the carmaker's future fuel cell system. The contract covers an initial term of five years as from 2026 and a total volume in the mid-triple-digit million euro range. EKPO intends to invest a figure in the high double-digit million euro range for production at a new site.

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.

• 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.