Announcements

ElringKlinger maintains strong growth during fiscal year with key strategic milestones

- Revenue grows substantially by 6.8% to EUR 1,664 million and by as much as 8.1% in organic terms

- EBIT before purchase price allocation up slightly year on year at EUR 142 million; EBIT margin of 8.5% before purchase price allocation

- Proposed dividend stable at EUR 0.50

- Key strategic milestones: closing of transaction for investment in hofer, cooperation agreement with Chinese battery manufacturer CITC, sale of Hug Group agreed

- Guidance for 2018: organic revenue growth of 2 to 4 percentage points above market growth; EBIT margin before purchase price allocation around 9%

- New dedicated Management Board role for E-Mobility as of April 1, 2018

Dettingen/Erms (Germany), March 27, 2018 +++ Over the course of the 2017 financial year, ElringKlinger AG achieved a number of important strategic milestones for the sustained development of its business. In February and March, a transaction covering its investment in the hofer Group was formally concluded. As a result, the ElringKlinger Group now produces complete electric drive systems, primarily for the premium sports and luxury car segment. Within the area of battery technology, ElringKlinger signed a cooperation agreement in November with Chinese battery manufacturer CALB via that entity's parent company CITC. Together, the focus will be on supplying battery systems to automotive markets around the globe. Additionally, ElringKlinger reached an agreement in December with a major French automotive supplier covering the sale of Hug Engineering AG. This divestment will allow ElringKlinger to concentrate fully on efforts to further develop its e-mobility business.

As CEO Dr. Stefan Wolf pointed out: "In implementing these strategic measures, we have brought the Group further in line with the mobility market of the future. Thus, ElringKlinger's product portfolio includes high-performance fuel cell systems as well as battery systems and complete electric drive units." The Group's prospects are outstanding in all these areas. "We are currently working on a string of projects covering all of these fields, and there is significant potential with regard to new drive technologies," said Dr. Wolf.

Strong growth in revenue
ElringKlinger AG again recorded strong revenue growth in the fourth quarter of 2017. Compared with the particularly solid final quarter of 2016, the Group managed to lift its sales revenue by a further 3.0% in the last three months of 2017, taking the quarterly total to EUR 419.3 (407.2) million. Against this backdrop, revenues totaled EUR 1,664.0 million in the 2017 financial year as a whole. This corresponds to a year-on-year increase of 6.8%. Taking into account the effects of foreign exchange movements and acquisitions, organic growth was as much as EUR 126 million or 8.1% in the financial year just ended.

EBIT up slightly year on year
At EUR 141.8 million, EBIT before purchase price allocation was slightly up on the previous year's figure (EUR 140.4 million). This corresponds to an EBIT margin of 8.5 (9.0)%. The Group benefited from the favorable effects of revenue growth as well as cost streamlining at the Swiss site in Sevelen. However, these positive contributions to earnings were almost completely offset by additional costs incurred in connection with the implementation of a Group-wide ERP system in Sevelen, the visible increase in commodity prices, and the follow-on costs associated with consistently high volumes ordered by customers in the NAFTA region as part of their production scheduling.

As became evident over the course of the year, the impact of foreign exchange movements on net finance costs, which stood at EUR 27.3 (11.5) million, also had a dilutive effect on Group earnings. With lower income tax expenses of EUR 36.3 (41.5) million and a slight reduction in non-controlling interests of EUR 3.9 (4.1) million, net annual income attributable to shareholders totaled EUR 69.9 (78.6) million. Calculated on this basis, earnings per share stood at EUR 1.10, which was down on the prior-year figure of EUR 1.24.

Proposed dividend payment remains stable
A fundamental principle adopted by ElringKlinger is to provide shareholders with an appropriate return on their investment. In keeping with this policy, the Supervisory Board and Management Board will jointly propose to the Annual General Meeting, scheduled for May 16, 2018, a stable dividend payment of EUR 0.50 per share. The dividend ratio will therefore improve to 45 (40)%.

Highly successful placement of Schuldscheindarlehen
The Group's key performance indicators with regard to its balance sheet remain solid. Its equity ratio was 44.0 (47.2)% at the end of the financial year, which is still well within the target range of 40 to 50% of total assets.

Furthermore, the financial year just ended saw the Group complete the very first placement of a Schuldscheindarlehen (loan granted to the company against a form of promissory note) in its corporate history. Due to strong demand, the issue volume originally planned was doubled to EUR 200 million; the average interest rate is 1.23%. The cash proceeds were used for the purpose of extinguishing existing liabilities. The Schuldscheindarlehen replaces the overnight maturities of short-term liabilities with maturities of five, seven, and ten years, thus considerably improving the Group's overall debt maturity structure.

Capex ratio scaled back substantially, operating free cash flow down year on year
At 9.3%, the capex ratio (capital expenditure on property, plant, and equipment and on investment property) for the 2017 financial year was well below the prior-year figure of 11.0%. Despite a disciplined approach, ElringKlinger put in place key measures over the course of the year and made targeted investments for future growth. In Fremont, USA, for example, a new production facility was equipped for the manufacture of lightweight structural components. At the same time, a new plant was built at the Hungarian site in Kecskemét, which will focus on the production of door module carriers and shielding parts. Last but not least, a new logistics building commenced operations at the company's headquarters in Dettingen/Erms.

As regards working capital, the Group initiates and continuously implements measures aimed at optimizing procurement processes and inventory levels, while also actively controlling trade payables. Overall, net working capital amounted to EUR 553.3 (524.6) million, which corresponds to 33.3% of Group revenue. Due to the Group's earnings performance and the level of net working capital, and despite a disciplined capex approach, its operating free cash flow has not improved. Instead, as expected, operating free cash flow was down on the prior-year figure at EUR -66.6 (-3.8) million.

Outlook: industry operating in a challenging environment - ElringKlinger anticipates sustained growth
Looking to the future, the level of global uncertainty in recent months has become more pronounced. National interests are becoming more widespread, thereby undermining the position of multinational institutions and eroding trade agreements. At the same time, tariffs or barriers to entry pose a threat to free trade. Meanwhile, the automotive industry is having to contend with stricter emission standards - a genuine challenge for the sector as a whole. Additionally, ongoing debate surrounding an inner-city ban on diesel-powered vehicles as well as recent court judgments and a wave of new accusations against manufacturers or suppliers are causing uncertainty among consumers. The result is a challenging industry backdrop exposed to a number of influencing factors. Operating within this environment, it is increasingly difficult to make projections that go beyond a short-term horizon.

Given its very solid order books and its extensive portfolio of innovative products, the Group remains confident that it can outpace growth within the global automotive market in the short and in the medium term. For 2018, ElringKlinger expects to expand at a rate that is 2 to 4 percentage points above global market growth. Industry experts predict global market growth of between 1.9 and 4.3%, while ElringKlinger's projections point to growth of 2 to 3%.

Projected revenue growth - together with further cost streamlining at the Swiss site - will have a positive impact on earnings, while elevated commodity prices and consistently strong demand in the NAFTA region will have a dilutive effect on earnings. Overall, ElringKlinger is targeting an EBIT margin before purchase price allocation of around 9%. In the medium term, the Group will be looking to achieve a step-by-step improvement in profitability.

New dedicated Management Board role for E-Mobility
ElringKlinger recently confirmed its strong strategic commitment to electromobility in organizational terms, too, by creating a dedicated function within the Management Board for the areas of battery technology and fuel cell technology as well as for the integration of its hofer investees. Former Chief Operating Officer Theo Becker will assume overall responsibility for this future-looking field of business as from April 1, 2018. At the same time, Reiner Drews, who has until now headed the Cylinder-head Gaskets and Specialty Gaskets divisions, will take up the role of Chief Operating Officer.

In addition, at its recent meeting the Supervisory Board extended by five years, i.e., up to January 31, 2023, the contract of Chief Financial Officer Thomas Jessulat.

* Proposal to 2018 AGM
 

For further information, please contact:
ElringKlinger AG
Dr. Jens Winter
Investor Relations / Corporate PR
Max-Eyth-Straße 2
D-72581 Dettingen/Erms
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.

ElringKlinger sees substantial growth in revenue and slight improvement in earnings based on preliminary figures for 2017 - Sale of Hug completed

- Revenue up by 6.8% to EUR 1,664 million, organically by 8.1%

- EBIT before purchase price allocation slightly up on previous year at EUR 141.8 million

- Q4 2017: revenue increases by 3.0% to EUR 419.3 million, organically by 6.7%; EBIT before purchase price allocation stands at EUR 30.7 million, EBIT margin at 7.3%

- Sale of Hug formally completed as of March 1, 2018; income from deconsolidation within low double-digit million euro range

- Outlook for current financial year on March 27, 2018

Dettingen/Erms (Germany), March 1, 2018 +++ Based on preliminary, unaudited figures, the ElringKlinger Group grew significantly in the financial year just ended. Revenue totaled EUR 1,664.0 (1,557.4) million, up 6.8% year on year. Taking into account the effects of currencies and acquisitions, organic growth was as high as EUR 126.0 million or 8.1%. Changes in the scope of consolidation - primarily, hofer powertrain products GmbH, Nürtingen, Germany, a company in which ElringKlinger AG holds a 53% stake and that has been fully consolidated within the Group since February 6, 2017 - contributed EUR 9.3 million or 0.6% to growth in the financial year just ended. Currency translation diluted revenue generated by the Group by EUR 28.7 million in total, equivalent to -1.8%.

At EUR 141.8 (140.4) million, Group earnings before interest, taxes, and purchase price allocation were slightly above the figure posted a year ago. Progress made at the Swiss site was a planned, although additional expenses associated with the introduction of a local ERP system had a dilutive effect on earnings growth. Volumes requested by customers as part of their production scheduling remained high at the North American sites, while the cost of raw materials increased markedly. In combination, this exerted downward pressure on earnings. These factors are also expected to have an influencing effect in the course of the current financial year.

"Global demand for our products is very strong, as illustrated by significant organic growth in revenue by 8.1%," explains Dr. Stefan Wolf, Chief Executive Officer of ElringKlinger AG. "We have seen growth in all regions around the world." Group revenue increased by 5.1% (and by as much as 6.5% adjusted for currencies) in Europe, while Asia-Pacific recorded growth of 6.1% (9.5% adjusted for currencies) and the NAFTA region 10.7% (13.6% adjusted for currencies). The direction taken by exchange rates for the Chinese yuan, the Turkish lira, and the US dollar, in particular, had an adverse effect on revenue. "Currency effects are a natural consequence of ElringKlinger's global reach. The effects of foreign currency translation are reflected in revenue and - as was the case in the first nine months - are also expected to be noticeable in our net finance result for the 2017 financial year as a whole," adds Chief Financial Officer Thomas Jessulat.

Turning to other matters, the transaction covering the sale of Swiss subsidiary Hug Engineering AG was closed effective from March 1, 2018. ElringKlinger had already reached an agreement on December 21, 2017, for the sale of this company to a major French automotive supplier. Following this divestment, the Group can now focus on lightweighting and e-mobility, which encompass the three pillars of battery technology, fuel cell technology, and electric drive systems as promising fields for the future. The continuation of business would have necessitated significant investment to support the global advancement of the Exhaust Gas Purification division. As Dr. Wolf explains: "We were able to negotiate a favorable agreement for ElringKlinger. The positive effect on earnings in fiscal 2018 is expected to be in the low double-digit million euro range."

ElringKlinger will publish its full and definitive results for the 2017 financial year on March 27, 2018, together with its outlook for 2018.

For further information, please contact:
ElringKlinger AG
Dr. Jens Winter | Investor Relations/Corporate PR
Max-Eyth-Straße 2 | D-72581 Dettingen/Erms
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 vehicle manufacturers - 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. Additional solutions include thermal and acoustic shielding components as well as particulate filters and end-to-end exhaust gas purification systems for engines used in stationary and mobile applications. The Group's portfolio is complemented by 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 9,300 people at 49 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.

ElringKlinger wins further large-scale serial production contract for lightweight components

- Byton places order for hybrid cockpit cross-car beams for premium SUV

- Order represents double-digit million euro turnover covering a period of six years

- Start of production in 2019 at ElringKlinger's plant in Suzhou, China

Dettingen/Erms (Germany), January 30, 2018 +++ ElringKlinger AG has been awarded another major contract for its innovative lightweight structural components. Electric vehicle manufacturer Byton has placed an order with ElringKlinger for the supply of cockpit cross-car beams to be used in the company's premium SUV model. Both parties are also targeting to integrate the same lightweight technology into other, future Byton models. Development work for this project will be conducted at the technical centers in Silicon Valley and Southern Germany. Starting 2019 the components will be produced at ElringKlinger's plant in Suzhou, China. In total, the contract covers a double-digit million euro turnover over a period of six years.

"Byton is the second innovative supplier of the next generation of vehicles to have opted for our cockpit cross-car beams. This clearly illustrates the value of this lightweight component to customers: the tangible weight savings and its flexible adaptability to individual requirements are of tremendous relevance to manufacturers," explains Dr. Stefan Wolf, CEO of ElringKlinger AG. "It comes as no surprise that the cockpit cross-car beam was one of the first interior components of the new SUV model for which the customer placed an order at such an early stage."

The production process of cockpit cross-car beams manufactured by ElringKlinger includes an innovative method of hydroforming and plastic injection-molding combined into a single-step process. The resulting structural parts made of polymer and metal combine the benefits of both materials: design freedom, tremendous integration opportunities of complex geometries, excellent precision in terms of shape and dimensions with minimal tolerances as well as outstanding structural resistance in the event of an accident. At the same time, the cross-car beams can help to achieve significant weight reductions compared to conventional metal carrier designs.

ElringKlinger has been working on substituting metal by plastics over a period spanning more than 15 years and has accumulated considerable know-how in this field with regard to materials and production methods. The Group has already been manufacturing structural parts made of polymer-metal hybrids at its sites in Leamington (Canada) and Suzhou (China) since 2015 as well as in Fremont (USA) since mid-2017. The latest order confirms and encourages the strategy of ElringKlinger into lightweight body and chassis components.

For further information, please contact:
ElringKlinger AG
Dr. Jens Winter
Investor Relations / Corporate PR
Max-Eyth-Straße 2
D-72581 Dettingen/Erms
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 vehicle manufacturers - 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 9,300 people at 49 ElringKlinger Group locations around the globe.

ElringKlinger and Chengfei Integration Technology conclude framework agreement on joint venture for battery technology

- Establishment of a joint venture for the development, production, and distribution of lithium-ion battery modules

- Complementary business operations: Chengfei Integration Technology contributes battery cells and ElringKlinger all other module components to joint venture

- Focus on international e-mobility projects in Asia, Europe, and the US

Dettingen/Erms (Germany), November 27, 2017 +++ ElringKlinger AG has reached an agreement with Sichuan Chengfei Integration Technology Co., Ltd. (CITC), China, outlining the companies' collaboration within the area of battery technology. A framework agreement covering the terms of the joint venture was signed by the partner companies on November 24, 2017. The agreement initially runs for a period of ten years up to December 31, 2027. The framework agreement stipulates the establishment of a joint venture entity for the development, production, and distribution of lithium-ion battery modules for the global automotive market. In this context, the focus is on international e-mobility projects in Asia, Europe, and the United States.

The joint venture brings together complementary operations of the two parties to the contract: while CITC is responsible, via its subsidiary China Aviation Lithium Battery Co., Ltd. (CALB), for the electrochemical constituents of the cell, ElringKlinger will be contributing the remaining components of the module, such as highly innovative cell contact systems and cell housings. Furthermore, ElringKlinger will oversee the areas of battery module design and production. In addition to gaining mutual access to resources, the two joint venture partners will benefit from each other's expertise and the many years of experience amassed by both companies in various sub-disciplines of battery technology. The aim of this collaborative approach in the field of battery technology is to evolve business activities in pursuit of a sustained improvement in market penetration.

Dr. Stefan Wolf, CEO of ElringKlinger AG, commented as follows: "The joint venture framework agreement provides a classic win-win constellation for the two partners. CITC now has at its side a global automotive supplier with expertise in industrialization and sales, while ElringKlinger will in future be working with one of the leading cell producers." "This is another important step forward with regard to our strategic positioning in the area of sustainable mobility," he added.

ElringKlinger has been active in the field of battery technology since as early as 2009 and commenced serial production of various components and cell contact systems for lithium-ion batteries several years ago. Additionally, ElringKlinger develops and manufactures complete battery modules and systems as well as aggregate energy storage units.

CITC is a subsidiary of the state-owned enterprise Aviation Industry Corporation of China. Among other shareholdings, CITC has a stake in CALB, which produces batteries and power supply systems for various applications. As a certified manufacturer of lithium-ion cells and energy storage systems, CALB will contribute the electrochemical constituents of the battery cell to the joint venture.

For further information, please contact:
ElringKlinger AG
Dr. Jens Winter
Investor Relations / Corporate PR
Max-Eyth-Straße 2
D-72581 Dettingen/Erms
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 vehicle manufacturers - with a firm commitment to shaping the future of mobility. Whether optimized combustion engines, high-performance hybrids, or environmentally-friendly battery and fuel cell technology, ElringKlinger provides innovative solutions for all types of drive system. 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 refine and evolve its offering within the area of seals and gaskets in order to meet the highest possible standards. This is complemented by thermal and acoustic shielding technology as well as particulate filters and end-to-end exhaust gas purification systems for engines used in stationary and mobile applications. Additionally, the Group's portfolio includes products made of the high-performance plastic PTFE, which is also marketed to industries beyond the automotive sector. These efforts are supported by a dedicated workforce of more than 9,300 people at 49 ElringKlinger Group locations around the globe.

ElringKlinger records strong revenue growth in third quarter of 2017

- Sizeable delivery schedule requests by customers prompt organic revenue growth of 10% in third quarter and 9% in financial year to date

- EBIT before purchase price allocation rises by EUR 2.2 million or 7% year on year to EUR 34.8 million in third quarter

- Schuldscheindarlehen covering EUR 200 million is issued in mid-July for the first time

- Revenue and earnings guidance for 2017 confirmed

Dettingen/Erms (Germany), November 7, 2017 +++ The ElringKlinger Group continued to see its business develop during the third quarter of 2017: revenue improved by 7.9% year on year to EUR 403.6 million and earnings (EBIT before purchase price allocation) by 6.7% to EUR 34.8 million. Due to the appreciation of the euro, currency effects - particularly relating to the Chinese yuan, US dollar, and Swiss franc - diluted revenue by EUR 10.9 million or 2.9%. At the same time, hofer powertrain products GmbH, which has been fully consolidated since February 2017, contributed EUR 1.4 million or 0.4% to revenue. As a result, organic growth stood at EUR 38.9 million or 10.4%.

The Group's substantial growth in revenue was driven primarily by a wide range of global product rollouts as well as by sizeable requests by customers in the NAFTA region for the delivery of components as part of their production scheduling. In fact, the American markets in general represent a strong growth region for ElringKlinger at present. In the NAFTA region alone the Group recorded revenue growth of 16.0% in the quarter just ended, while sales in South America expanded by an equally buoyant 14.3%. Group revenue growth in the Asia-Pacific region was slightly less pronounced at 6.1% but nevertheless perceptively strong. At 6.8% (Germany) and 4.0% (Rest of Europe), revenue generated in Europe also expanded at a significant rate.

"In addition to showing strong revenue growth, the Group's figures for the third quarter also point to an improvement in our performance at an operational level," says CEO Dr. Stefan Wolf. Despite the rise in commodity prices over the course of the year, ElringKlinger's gross profit margin rose to 25.7 (25.0)% in the third quarter and to as much as 25.9 (25.1)% in the first nine months. However, this positive performance was dampened in part by higher selling costs attributable to additional expenditure at sites having to respond to sizeable requests from customers as part of their production scheduling. In total, EBIT (before purchase price allocation) amounted to EUR 34.8 (32.6) million in the third quarter and EUR 111.1 (100.8) million in the first nine months, which corresponds to a margin of 8.6 (8.7)% and 8.9 (8.8)% respectively.

Similar to the situation in the second quarter, the strength of the euro led to exchange differences, the net result of which increased finance costs by EUR 4.2 (0.0) million. Additionally, higher income tax expenses of EUR 8.7 (7.8) million reduced earnings per share by 5 cents to EUR 0.25 (0.30) in the third quarter. In the first nine months, however, earnings per share rose slightly to EUR 0.94 (0.93).

In July 2017, ElringKlinger successfully issued a Schuldscheindarlehen (loan granted to the company against a form of promissory note) for the first time in its corporate history. The placement was heavily oversubscribed, as a result of which the volume originally planned by the company was doubled to EUR 200 million. With an average fixed interest rate of 1.23% and maturities of 5, 7, and 10 years, the Group secured attractive terms for the purpose of refinancing existing liabilities while also optimizing its maturity structure.

The Management Board has reaffirmed its guidance for sales and earnings in 2017. Having outpaced the expansion of global vehicle production by around 6 percentage points in the first nine months on the basis of organic revenue growth, ElringKlinger's market outlook for the fourth quarter is slightly more restrained. Against the backdrop of differing projections for the respective regions of the world, the Group remains confident that it can exceed the global market growth rate by 2 to 4 percentage points on the basis of organic growth in sales.

Assuming that the fourth quarter does not produce any macroeconomic turbulence, e.g., due to an escalation of the conflict in North Korea, and that the situation in Catalonia is not exacerbated, e.g., in the form of a general strike, the Group continues to anticipate that it will improve its operating result (EBIT before purchase price allocation) and achieve an EBIT margin (before purchase price allocation) of around 9 to 10% in the year as a whole.

For further information, please contact:
ElringKlinger AG
Dr. Jens Winter
Investor Relations / Corporate PR
Max-Eyth-Straße 2
D-72581 Dettingen/Erms
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 vehicle manufacturers - 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. Additional solutions include thermal and acoustic shielding components as well as particulate filters and end-to-end exhaust gas purification systems for engines used in stationary and mobile applications. The Group's portfolio is complemented by 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 9,300 people at 49 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.