Announcements

Annual General Meeting approves dividend of EUR 0.50 per share

- Dividend volume remains stable year on year at EUR 31.7 million;
dividend ratio improves to 45.3%

- Actions of Management Board and Supervisory Board approved by a large
majority in both cases

- Review 2017 and outlook 2018: key strategic milestones for future business development

Stuttgart, Dettingen/Erms (Germany), May 16, 2018 +++ The shareholders of ElringKlinger AG approved a dividend of EUR 0.50 per share for the 2017 financial year at the company's Annual General Meeting (AGM) in Stuttgart. The dividend payment is to be completed on May 22, 2018, the third business day subsequent to the resolution passed by the AGM. All investors holding shares in ElringKlinger AG on May 16, 2018, are entitled to a dividend.

As part of his review of 2017, CEO Dr. Stefan Wolf looked back on a financial year that included important strategic milestones with regard to future business development. "In taking these strategic steps, we have brought the Group further in line with the mobility market of the future. With a product portfolio that includes high-performance fuel cell systems as well as battery systems and complete electric drive units, ElringKlinger is well prepared for the dynamic transition facing the automotive industry," said Dr. Stefan Wolf.

Among the key events for ElringKlinger during the 2017 financial year were the investment in the hofer Group transacted in February and March, the placement in July of a Schuldscheindarlehen (loan granted to the company against a form of promissory note) - covering a total volume of EUR 200 million - for the first time in its corporate history, the signing of a cooperation agreement with Chinese battery manufacturer CITC in November, and an understanding reached in December for the sale of the Hug Group.

In March 2018 the Supervisory Board of ElringKlinger AG made a number of other far-reaching decisions. Effective from April 1, 2018, a new area of Management Board responsibility - covering the field of e-mobility - was introduced under the supervision of Theo Becker. At the same time, Reiner Drews, who had previously been responsible for the Cylinder-head Gaskets and Specialty Gaskets divisions, was appointed to the Management Board. As successor to Theo Becker, he became the Group's new COO. Furthermore, the Supervisory Board extended the contract of CFO Thomas Jessulat by five years as from January 1, 2019, i.e., until the end of December 2023.

In addition to charting its strategic course, ElringKlinger again saw its business grow significantly at an operational level in fiscal 2017. Group revenue expanded by 6.8% to EUR 1,664 million, while earnings before interest and taxes totaled EUR 137.3 (135.2) million. In terms of ElringKlinger's bottom-line result, however, the positive effects of revenue growth were offset by adverse factors over the course of the year, such as rising commodity prices, additional costs due to the introduction of SAP at a Swiss subsidiary, and follow-on costs associated with consistently high volumes ordered by customers in the NAFTA region as part of their production scheduling. As a result, net income attributable to shareholders fell to EUR 69.9 (78.6) million.

The shareholders of ElringKlinger AG approved by a majority of 99.96% the proposal put forward by the Management Board and Supervisory Board for a dividend of EUR 0.50 (0.50) per share for fiscal 2017, unchanged on the previous financial year. The total distribution will thus remain stable year on year at EUR 31.7 million. The dividend ratio is up at 45.3% (40.3%), i.e., in excess of the Group's dividend policy, as part of which between 30 and 40% of Group net income after non-controlling interests shall be distributed.

As regards fiscal 2017, the AGM approved the actions of the Management Board members with 93.88% and the actions of the Supervisory Board members with 76.92% of the votes. Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft was appointed as the auditor for the financial year 2018.

The AGM, held at the Stuttgart Culture and Congress Center, was attended by around 800 shareholders and guests. In total, 71.52% of the company's share capital was represented at the meeting.

For further information, please contact:
ElringKlinger AG
Dr. Jens Winter
Strategic Communications
Max-Eyth-Straße 2
72581 Dettingen/Erms
Germany
Phone: +49 7123 724-88335
Fax: +49 7123 724-85 8335
E-mail: jens.winter[at]elringklinger.com

About ElringKlinger AG
As an automotive supplier, ElringKlinger has become a trusted partner to its customers - with a firm commitment to shaping the future of mobility. Be it optimized combustion engines, high-performance hybrids, or environmentally-friendly battery and fuel cell technology, ElringKlinger provides innovative solutions for all types of drive systems. ElringKlinger's lightweighting concepts help to reduce the overall weight of vehicles. As a result, vehicles powered by combustion engines consume less fuel and emit less CO2, while those equipped with alternative propulsion systems benefit from an extended range. In response to increasingly complex combustion engine technology, the Group also continues to make refinements with regard to gaskets in order to meet the highest possible standards. This is complemented by solutions centered around thermal and acoustic shielding technology. Additionally, the Group's portfolio includes products made of the high-performance plastic PTFE which are also marketed to industries beyond the automotive sector. These efforts are supported by a dedicated workforce of more than 9,600 employees at 45 ElringKlinger Group locations around the globe.

ElringKlinger records organic growth of 5.4% in first quarter

- First-quarter revenue down 0.6% year on year in 2018 at EUR 431 million due to
currency effects but up 5.4% in organic terms

- EBIT margin of 8.9% before purchase price allocation

- Earnings figures include gain on disposal of Hug Group, which was deconsolidated effective from March 1, 2018

- Guidance for 2018 confirmed

Dettingen/Erms (Germany), May 14, 2018 +++ ElringKlinger AG matched its prior-year performance with regard to both revenue and earnings in the first quarter of 2018. At EUR 430.7 million, revenue was slightly lower than in the same quarter a year ago. However, this was influenced to some extent by the absence of revenue from the Hug Group in March 2018, an entity that was deconsolidated effective from March 1, 2018. As regards the scope of consolidation, revenue contributions from the subsidiary hofer powertrain products GmbH, included in the consolidated group for the first time in February 2017, also have to be taken into consideration. In total, the effects on revenue from changes to the scope of consolidation were equivalent to EUR -4.2 million.

Additionally, the direction taken by foreign exchange rates had a dilutive effect on revenue, primarily in respect of the US dollar, the Swiss franc, and the Brazilian real. Calculated on the basis of stable exchange rates and taking into account the above-mentioned changes in the scope of consolidation, the Group saw revenue grow by 5.4% or EUR 23.2 million. On the basis of organic revenue growth, therefore, ElringKlinger significantly outperformed the automotive industry in terms of global vehicle production, which trended sideways to slightly lower year on year.

"The Group's strong revenue growth again illustrates how innovative and marketable our products are," concludes Dr. Stefan Wolf, CEO of ElringKlinger AG. "The same applies to our order book situation, taking currency effects into account: our order intake has grown yet again. Our order backlog is actually up by as much as 8.9% compared to the first quarter of 2017, and at more than EUR 1 billion it has reached a new all-time high."

Quarterly earnings reported by ElringKlinger also include a EUR 21.1 million gain on disposal of the Hug Group. This positive effect on profit was offset to some extent by several internal and external influencing factors: the rise in prices for key commodities such as aluminum and steel had a dilutive effect on earnings, as did the follow-on costs associated with unexpectedly high volumes ordered by customers in the NAFTA region as part of their production scheduling. In Switzerland, meanwhile, operational relocations largely progressed as planned. While finance costs rose to EUR 5.3 million, influenced to some extent by currency effects, net income for the period (after non-controlling interests) and earnings per share were both slightly up on the prior-year figures at EUR 25.7 (25.1) million and EUR 0.41 (0.40) respectively.

Given its solid order intake and backlog, the Group remains confident that it can outpace the expansion in global automobile production by 2 to 4 percentage points in terms of organic revenue growth. Turning to earnings, the first quarter of 2018 has seen no improvement in regard to exogenous factors influencing the current financial year. Commodity prices continue to rise and will again exert downward pressure on Group earnings in the current financial year. Additionally, it is impossible to rule out higher costs attributable to the introduction of tariffs. At the same time, the Group is committed to implementing optimization measures at its Swiss site as planned and streamlining cost structures associated with the sizeable volumes ordered by customers in the NAFTA region as part of their production scheduling. Taking these factors into consideration, too, the Group at present continues to anticipate that it will achieve an EBIT margin (before purchase price allocation) of around 9% in the current financial year, despite the fact that general conditions as a whole remain challenging.

* Incl. gain from sale of Hug subgroup

For further information, please contact:
ElringKlinger AG
Dr. Jens Winter
Strategic Communications
Max-Eyth-Straße 2
72581 Dettingen/Erms
Germany
Phone: +49 7123 724-88335
Fax: +49 7123 724-85 8335
E-mail: jens.winter[at]elringklinger.com

About ElringKlinger AG
As an automotive supplier, ElringKlinger has become a trusted partner to its customers - with a firm commitment to shaping the future of mobility. Be it optimized combustion engines, high-performance hybrids, or environmentally-friendly battery and fuel cell technology, ElringKlinger provides innovative solutions for all types of drive systems. ElringKlinger's lightweighting concepts help to reduce the overall weight of vehicles. As a result, vehicles powered by combustion engines consume less fuel and emit less CO₂, while those equipped with alternative propulsion systems benefit from an extended range. In response to increasingly complex combustion engine technology, the Group also continues to make refinements with regard to gaskets in order to meet the highest possible standards. This is complemented by solutions centered around thermal and acoustic shielding technology. Additionally, the Group's portfolio includes products made of the high-performance plastic PTFE which are also marketed to industries beyond the automotive sector. These efforts are supported by a dedicated workforce of more than 9,600 employees at 45 ElringKlinger Group locations around the globe.

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.