Announcements

EQS-News: ElringKlinger AG / Key word(s): AGM/EGM/Dividend
ElringKlinger: Annual General Meeting approves constant dividend and elects new Supervisory Board member
16.05.2025 / 14:07 CET/CEST
The issuer is solely responsible for the content of this announcement.

PRESS RELEASE

• Proposal for consistent dividend payment of EUR 0.15 per share approved
• Further proposed resolutions each adopted by a large majority
• Re-election of five members of the Supervisory Board, Dr. Sabine Lutz newly elected
• CEO Thomas Jessulat: “Against the backdrop of the transformation of mobility, it is essential that we hone ElringKlinger's profile so that we can continue to play an active role in shaping the future. We have reached key milestones in this respect and are fully committed to continuing on the path set out in our SHAPE30 strategy."

At today's 120th Annual General Meeting convened by ElringKlinger AG (ISIN DE0007856023/ WKN 785602), all items on the agenda were approved by the company's shareholders with the required majorities. The other proposed resolutions put to the vote were also approved by the shareholders with a large majority. Around 61 % of the voting share capital took part in the virtual Annual General Meeting.

Broad approval for items on the agenda
In the interests of dividend continuity and in consideration of operating profitability, the Management Board, in consultation with the Supervisory Board, proposed to the Annual General Meeting the payment of a constant dividend of EUR 0.15 per share. This proposal was accepted by a large majority of 99.7 %. The company's shareholders also ratified the actions of the Management Board and Supervisory Board with 94.7 % of the votes respectively, in addition to approving the compensation report and the Supervisory Board's compensation system. Deloitte GmbH Wirtschaftsprüfungsgesellschaft, Stuttgart, was re-appointed as the auditor for the 2025 financial year.

Dr. Sabine Lutz succeeds Andreas Wilhelm Kraut on the Supervisory Board
As part of the Supervisory Board elections, five members were re-elected with a broad majority of the votes. Andreas Wilhelm Kraut had already informed the Board in advance that he would not be standing for re-election. He has been succeeded by Dr. Sabine Lutz, who was elected as a new member of the Supervisory Board.

Helmut P. Merch, Chairman of the Supervisory Board, thanked the outgoing member: “Andreas Wilhelm Kraut was a member of the Supervisory Board of ElringKlinger AG for a period of eight years in total. His tenure coincided with a number of significant events such as the far-reaching transformation of the industry, the covid pandemic, and the war in Ukraine. I would like to thank Mr. Kraut personally and on behalf of the entire Supervisory Board for the excellent spirit of cooperation and his valuable perspectives on ElringKlinger's business." Helmut P. Merch continued: “At the same time, I would like to congratulate Dr. Sabine Lutz on her appointment and look forward to working with her in the future. In her, we have gained an industry expert for our Board." In addition to Helmut P. Merch – and Dr. Sabine Lutz for the first time –, Ingeborg Guggolz, Ludger Heuberg, Gabriele Sons, and Manfred Strauß were re-elected to the Supervisory Board.

Implementation of SHAPE30 on track
In his review, CEO Thomas Jessulat emphasized that the company's business performance in 2024 had been solid overall, even in the face of highly challenging circumstances: “Despite all the uncertainties around the globe, it should be noted that we are on track. On track against a very difficult backdrop. On track because we were an early adopter of new technologies and have been applying them in a targeted manner – in keeping with our corporate purpose: "Pioneering Innovative Technologies for a Sustainable Future." And on track when it comes to implementing our SHAPE30 transformation strategy."

Focusing on five success factors, SHAPE30 describes ElringKlinger's route through the industry's far-reaching transformation. In the context of Factor #1 Product Transformation, the Group drew up a strategic package of measures in 2024. On this basis and following in-depth analysis, the decision was made to sell the two plants in Sevelen and Buford. The Group also decided to withdraw from its systems business for electric drive units and instead focus on its profitable components business. The discontinuation of operations at the plants in Thale and Fremont is also to be seen in the context of these measures.

The strategic package of measures serves SHAPE30's goal of improving the Group's profitability and generating sustainable cash flow. The same applies to the STREAMLINE cost-cutting program, which the Group initiated in 2025 and through which it plans to scale back its global staff costs by EUR 30 million.
 

Upcoming growth cycle
In addition to outlining the Group's focus on profitable operations, Thomas Jessulat also addressed the tangible transformation of ElringKlinger: "On the back of the Group's upcoming growth cycle, particularly in the area of e-mobility applications, by 2030 we will generate more than 50% of our revenue with products beyond the combustion engine." The high-volume series production orders already received for cell contacting systems, bipolar plates, and other e-mobility products will contribute to this forward momentum. All in all, ElringKlinger is well positioned, as Thomas Jessulat emphasized: “Against the backdrop of the transformation of mobility, it is essential that we hone ElringKlinger's profile so that we can continue to play an active role in shaping the future. We have reached key milestones in this respect and are fully committed to continuing on the path set out in our SHAPE30 strategy."

A detailed summary of the individual voting results and a transcript of the speech given by the CEO can be found on the homepage of ElringKlinger AG (www.elringklinger.de) – in the Investor Relations section under the heading "Annual General Meeting."

About ElringKlinger  
As an independent supplier operating worldwide, the ElringKlinger Group has established itself as a powerful and trusted partner to the automotive industry – acknowledged for its exceptional depth of expertise. Our product portfolio encompasses innovative solutions for passenger cars and commercial vehicles powered by electric motors, hybrid technology, or combustion engines. Alongside the powertrain, other areas of application include the underbody, chassis, braking system, interior, and vehicle body. We were among the frontrunners when it came to positioning ourselves as a specialist in the field of e-mobility – with pioneering battery and fuel cell technology, and associated components and assemblies, such as plastic housings, and punched and formed metal parts.
Customized lightweight components engineered by ElringKlinger can be used throughout the entire vehicle; they deliver tangible benefits in terms of weight reduction, efficiency, and functional integration, especially in e-mobility applications.
Additionally, we serve the aftermarket in more than 140 countries with an extensive range of spare parts.
These efforts are supported by a dedicated workforce of more than 9,000 people employed within the ElringKlinger Group. Operating at more than 40 sites worldwide, ElringKlinger has established a global presence and is closely aligned with its customers in all major automotive regions.

16.05.2025 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group.
The issuer is solely responsible for the content of this announcement.

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EQS-News: ElringKlinger AG / Key word(s): Quarterly / Interim Statement/Quarter Results
ElringKlinger: Q1 2025 on track – next stage of transformation underway
08.05.2025 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

PRESS RELEASE

• Results for the first quarter of 2025: 
  • Group revenue at EUR 423.1 million (Q1 2024: EUR 465.3 million), year-on-year improvement of 2.2% in organic terms
  • Adjusted EBIT margin of 4.9% (Q1 2024: 5.2%) in line with annual target of around 5%
  • Operating free cash flow at EUR -120.3 million (Q1 2024: -5.8 million EUR) due to pre-financing of projects and extensive investment activity, net financial liabilities at EUR 370.4 million (Q1 2024: EUR 329.1 million)
• Management Board adopts STREAMLINE cost reduction program to enhance competitiveness; savings target: at least EUR 30 million p.a. from 2026
• CEO Thomas Jessulat: “We have already made strategic decisions for the purpose of focusing our activities, and we will concentrate on our profitable areas of business as we move forward. As part of the STREAMLINE program, we are now adapting our internal structures to ensure we are effectively positioned for the next stage of transformation."

ElringKlinger AG (ISIN DE0007856023 / WKN 785602) has presented its financial results for the first quarter of 2025. In the period under review, the ElringKlinger Group generated revenue of EUR 423.1 million (Q1 2024: EUR 465.3 million). In this context, it should be noted that the two divested Group entities in Switzerland and the United States had contributed revenue of EUR 44.7 million in the first quarter of 2024, i.e., the corresponding comparative base with regard to the same quarter of the previous year is EUR 420.6 million. Additionally, revenue was diluted by currency effects equivalent to EUR 7.9 million or 1.7%. In organic terms, i.e., adjusted for currency and M&A effects, revenue increased by EUR 10.4 million or 2.2%. This translates into a better performance than the market as a whole, which changed by +1.3% globally and -6.7% in Europe in the first quarter of 2025.

Sustained growth of E-Mobility business unit
While the Aftermarket segment expanded by 12.8% and Engineered Plastics by 12.1%, the Original Equipment segment saw a slight contraction, taking into account the sale of the two Group entities. Within the segment, the E-Mobility business unit once again more than doubled its revenue from EUR 11.3 million to EUR 26.8 million. This was driven in particular by the further ramp-up of a large-scale series production order for cell contacting systems at the Neuffen (Germany) site.

Adjusted EBIT margin on track
In terms of earnings, the Group remained on course amid difficult conditions in the first quarter of the year and recorded an adjusted EBIT margin of 4.9% (Q1 2025: 5.2%) on the back of adjusted EBIT of EUR 20.5 million (Q1 2024: EUR 24.0 million). With investments amounting to EUR 45.0 million (Q1 2024: EUR 16.9 million) and net working capital standing at EUR 454.4 million (Q1 2024: EUR 489.3 million), operating free cash flow totaled EUR -120.3 million in the first quarter of 2025 (Q1 2024: EUR -5.8 million); around a third of this was attributable to investments in property, plant, and equipment. In view of the forthcoming ramp-up of further high-volume series production orders and the associated preparations, elevated figures had been anticipated for investments and diluted figures with regard to cash flow compared to previous year’s quarter. As a result of these changes, net financial liabilities of EUR 370.4 million (March 31, 2024: EUR 329.1 million) were up on the corresponding prior-year figure.

Commenting on the quarterly results, Thomas Jessulat, CEO of the ElringKlinger Group, said: “We are currently investing in the manufacture of E-Mobility products on the basis of the high-volume orders we have received. In Neuffen, production relating to the first order for cell contacting systems continues to ramp up, with work on a further order scheduled to commence at the end of the year. We are also making preparations for series production in China and are in the process of setting up our Battery Hub Americas in South Carolina in the United States. These key steps towards growth are reflected in investments as well as in cash flow and net financial liabilities. Essentially, we are on track to meet our annual targets for 2025."

Guidance confirmed
The Group's projections for revenue in 2025 remain in line with the prior-year figure in organic terms, while the adjusted EBIT margin is expected to be around 5%. As regards operating free cash flow, ElringKlinger's guidance remains at around 1 to 2% of Group revenue. The Group's target for its net debt-to-EBITDA ratio (net financial liabilities in relation to EBITDA) is around 2. Alongside the other key metrics for 2025, the medium-term outlook has also been confirmed.

STREAMLINE cost reduction program in support of greater competitiveness
In an effort to further bolster ElringKlinger's targeted positioning for the future and to improve the Group's ability to compete on a sustainable basis, the Management Board has resolved to implement the STREAMLINE program aimed at reviewing and trimming the Group's staff cost structure. STREAMLINE includes selective measures for various groups of employees and is aimed at optimizing the Group's capacity levels in its individual corporate and business units. The guiding principle for employees at the German locations is that all actions are mutually voluntary in nature. In this context, one of the core elements of the program is an intragroup job market to help reassign employees to other areas. The program aims to streamline the Group's staff costs by at least EUR 30 million per annum from 2026.

Thomas Jessulat, CEO: “Over the past few years, ElringKlinger has established a broad product portfolio and evolved its organizational capabilities accordingly. As part of the transformation of our industry, we have already made strategic decisions for the purpose of focusing our activities, and we will concentrate on our profitable areas of business as we move forward. Our STREAMLINE program is aimed at adapting our internal structures to the new circumstances so that we are effectively positioned for the next stages of transformation."

In rolling out its SHAPE30 transformation strategy, the Group has already put in place key measures to ensure it remains competitive well into 2030. Alongside the sale of two entities in Switzerland and the United States, this also includes the decision to discontinue its system business for electric drive units and concentrate on the profitable components business. The Group is also consolidating its global network of sites.

Key financials for Q1 2025

* The figures for the first quarter of 2025 reflect the completion of the divestiture of the two subsidiaries in Buford, GA (USA) and Sevelen (CH) at the end of 2024.

^◊ Figures adjusted for the contribution of the two subsidiaries in Buford, GA (USA) and Sevelen (CH)

About ElringKlinger  
As an independent supplier operating worldwide, the ElringKlinger Group has established itself as a powerful and trusted partner to the automotive industry – acknowledged for its exceptional depth of expertise. Our product portfolio encompasses innovative solutions for passenger cars and commercial vehicles powered by electric motors, hybrid technology, or combustion engines. Alongside the powertrain, other areas of application include the underbody, chassis, braking system, interior, and vehicle body. We were among the frontrunners when it came to positioning ourselves as a specialist in the field of e-mobility – with pioneering battery and fuel cell technology, and associated components and assemblies, such as plastic housings, and punched and formed metal parts.

Customized lightweight components engineered by ElringKlinger can be used throughout the entire vehicle; they deliver tangible benefits in terms of weight reduction, efficiency, and functional integration, especially in e-mobility applications.

Additionally, we serve the aftermarket in more than 140 countries with an extensive range of spare parts.

These efforts are supported by a dedicated workforce of more than 9,000 people employed within the ElringKlinger Group. Operating at more than 40 sites worldwide, ElringKlinger has established a global presence and is closely aligned with its customers in all major automotive regions.

Legal notice
This release contains forward-looking statements. These statements are based on the expectations, market assessments, and forecasts of the Management Board and the information currently available to it. These forward-looking statements shall, in particular, not be construed as guarantees of future developments and results referred to therein. Although the Management Board is of the firm opinion that the statements made and their underlying beliefs and expectations are realistic, they are based on assumptions that may prove to be incorrect. Future results and developments depend on a variety of factors, risks, and uncertainties that may lead to changes in the expectations and judgments that have been expressed. These factors include, for example, changes in general economic and business conditions, fluctuations in exchange rates and interest rates, lack of acceptance of new products and services, and changes in business strategy.

08.05.2025 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group.
The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com