Corporate PresentationJanuary 2020
Corporate presentation | January 2020 2
In a nutshell
ElringKlinger
Headquartered in
Dettingen/Erms, close to Stuttgart
EUR 1,699 mnin sales
More than
10,000employees
5.9%EBIT margin pre PPA
45 locations
Family as a
strong anchor shareholder
Founded in
1879+10% CAGR since 2005
All figures refer to FY 2018
Corporate presentation | January 2020 3
Megatrends trigger technological transformation process
Markets
Global
megatrends
transform the
automotive
industry
Technological progress
Urbanization
Scarcity of resources
Globalization
Climate change
Safety systems
Autonomous driving
Efficient propulsion
Connectivity
Shared mobility
Corporate presentation | January 2020 4
EU tightens CO2 limits until 2030 even further
Markets
CO2 limits – in g/km
China 202594g CO2/km average
fleet emissions
Japan 203032% reduction of average fleet
emissions (base year: 2016)
EU 202195g CO2/km average
fleet emissions
EU 2025 15 % reduction of average fleet
emissions (base year: 2021)
EU 2030 37.5 % reduction of average fleet
emissions (base year: 2021)
USA 202591g CO2/km average
fleet emissions
South Korea 202097g CO2/km average
fleet emissions
Source: Fraunhofer ISI, ElringKlinger research
Corporate presentation | January 2020 5
New drive trains will be single growth driver from 2025 onward
Markets
Source: PWC Autofacts, ElringKlinger research
2017 20232019 20292018 2020 2021 20252022 2024 2026 2027 2028 2030
CAGR
+2%
Combustion Hybrids Full electric
Managing the growth…
Global light vehicle production per drivetrain – in million units
…for tapping the potential
Corporate presentation | January 2020 6
Managing the growth in classical business areas
Group strategy
Cylinder-head
gaskets
• Strong market positions associated with technological niches
• Benefiting from global production network
• Utilizing profound and detailed product and process know-how
• Concentrating on improved processes to avoid additional costs
• Optimizing inventories
• Repayment of financial debt
• Disciplined investments for managing the growth
• Stable growth path of sales in the medium term according to market development
Specialty
gaskets
Shielding
technologyPlastic housing
modules
Corporate presentation | January 2020 7
Generating future growth in new business areas
Group strategy
•Established supplier for large series of Battery components, i.e. cell contacting systems
•Next step: industrialization of complete battery systems
•PEM fuel cell stack ready for marketing
•Components available as well
•Next step: installation of automated production line
• Strategic minority stake in engineering service provider hofer powertrain
•Currently set-up of small series production
•Unique production technology
• Series orders in delivery phase
•Next step: further ramp-ups and new contracts expected
• Focused capex spending
• Strong growth of e-mobility areas from 2020/21 on with lightweighting further ramping up
Fuel cell
systems
Electric
drive unit
Battery
systemsStructural
lightweighting
Corporate presentation | January 2020 8
ElringKlinger with expertise for components, modules and systems
Group strategy
Battery
Fuel cell
EDU
SystemsModulesComponents Customers‘needs
Corporate presentation | January 2020 9
ElringKlinger’s sales structure of products will change
Group strategy
Sales split (actual and ambition) – in % of total sales
79%
7%
5%
Functional
components
Structural
lightweight
and e-mobility
products
9%
Non-automotive
productsAftermarket
Actual 2018 Ambition 2030
<55%
Structural
lightweight and
e-mobility
products
Functional
components
>25%
~10%
Aftermarket ~10%
Non-automotive
products
Corporate presentation | January 2020 10
Nominated e-mobility volumes create a healthy basis for future sales
Group strategy
Nominated volumes* – in EUR million
2022e2019e
~60%
~25%
~40%~35%
2020e
~50%
~25%~35%
~15%
2021e
~15%
~55%
~30%
~15%
2023e
EDU Fuel cell systems Battery systems and components
• Strong growth particularly in the
fuel cell and battery business
• Acceleration especially after
ramp-up years 2019 and 2020
• Includes systems as well as
components nominations by
different OEMs worldwide
* Scheduled revenues in e-mobility products according to received OEM nomination letters, final revenues dependent on definitely called volumes
1,000
Corporate presentation | January 2020 11
New US OEM
Cross-car beam
SOP 2020
Major new contract wins for new business fields
Group strategy
New US OEM
Cross-car beam
SOP 2020
New US OEM
#
Front-end carrier
Battery system
SOP 2021
Chinese OEMs
Fuel cell systems
More than
20 development
projects
Corporate presentation | January 2020 12
Higher degree of vertical integration results in more content per car
Group strategy
Present Future
Content per car – in EUR
40 - 60 EUR(100-150 EUR incl. cross-car beam)
100 - 10,000 EURContent per car
Financials
Corporate presentation | January 2020 14
Strong sales growth despite market downturn
Q3 2019
412 391498
420 438
Q1Q3 2018 Q3 2019Q4 Q2
+6.3%FX adjusted: 0.8%
Organic
+9.9+2.4%
Q3 2018
405.8
FX
-0-0%
M&A
+16.2+4.0%
Q3 2019
431.9
+6.4%
Sales – in EUR million
Order intake – in EUR million Order backlog – in EUR million
Sales bridge – in EUR million/ in %
Q4Q3 2018 Q1 Q2 Q3 2019
1,063
1,027 1,020
1,0771,069
+4.0%FX adjusted: +1.9%
406 432 441 434 432
Q1Q3 2018 Q3 2019Q4 Q2
+6.4%
Corporate presentation | January 2020 15
Sales in North America continue to grow strongly
Q3 2019
Sales by region – in EUR million
Share of total sales – in %
2018
22%
(25%)
Asia-Pacific
80 (77)
Germany
97 (103)
19%
(19%)
Rest of Europe
120 (115)
28%
(28%)
4%
(5%)
27%
(23%)
North America
115 (92)
South America and Rest of World
20 (19)
Previous year’s Q3 figures in brackets
EUR
432
million
Corporate presentation | January 2020 16
Sequential improvement of earnings over the 2019 quarters
Q3 2019
Net income (attr. to shareholders) – in EUR mn
EBIT (pre PPA) – in EUR million
EBIT margin (pre PPA) – in % of total sales EBIT (pre PPA) bridge – in EUR million
Earnings per share – in EUR
10.7
Q2
5.9%
Q3 2018 Q4
23.9
Q1 Q3 2019
4.8%
11.86.9
20.8
-13.0%
+2
20.8
+4
Q3 2018
-5
Tariffs/
duties
-4
NAFTA/
Ramp-ups
Cost
savings
Others* Q3 2019
23.9
-13.0%
Q3 2019Q3 2018 Q2Q4 Q1
10.8
-1.2 -1.5
-8.6
6.7
-38.0%
Q1
0.17
Q3 2018 Q4 Q2 Q3 2019
0.11
-0.02 -0.02
-0.14
-35.3%
* Net impact includes increase personnel cost, R&D capitalization and othersDifferences due to rounding
Corporate presentation | January 2020 17
Aftermarket segment expanded its sales and improved its margin
Q3 2019
Sales – in EUR million
EBIT margin – in % of segmental sales
Original Equipment (OE)
38 3745 41 45
15.7%
Q3 2018 Q4 Q1 Q3 2019Q2
18.8%
+20.2%
Aftermarket
3027
3229 30
Q2
21.9%
Q3 2019Q1Q3 2018 Q4
16.3%
-0.3%
Engineered Plastics
2.4
Industrial Parks1.0
Q3 2018 Q2Q4 Q1 Q3 2019
Services
3.3
2.42.5
3.7 3.5 3.13.6
2.3
1.2 1.21.1
2.0
1.1
+9.1%
Industrial Parks & Services
(sales only)
335 365 361 361 353
1.8%
Q1
3.1%
Q4Q3 2018 Q2 Q3 2019
+5.4%
Corporate presentation | January 2020 18
Strong focus on cash flow optimization
Q3 2019
Earnings
Improvement of operating free cash flow
Capex
Disciplined
approach
continued
Net working capital
Measures:
• Extending payment terms for
trade payables
• Reducing level of trade receivables
• Improving inventories
Measures with short and mid-term
impact:
• Group-wide cost reduction program
• Optimizing op. performance in
Switzerland and North America
• Paybacks of duties in Q3
Corporate presentation | January 2020 19
• Reduction of share of overdue receivables
• Reduction of payment periods to <60 days
• …
Gradual improvement of net working capital in 2019
Q3 2019
Net working capital – in EUR million
• Focus on supplier-owned inventories
• Increase of inventory turnover
• …
Balancing trade receivables and trade payables
• Extending payment terms to 60 days
• …
Improving payment terms of trade payables
306 332277 266
401415
393 387
-136 -140 -168 -166
9
606
-9
106
-13-10
Dec. 31,
2018
9
Mar. 31 Jun. 30
-17
499
Sep. 30,
2019
Current contract assets
Inventories
Trade receivables
Trade payables
Current contract liabilities
568478
-15.8%
Optimizing inventories in locations worldwide
Corporate presentation | January 2020 20
Disciplined capex approach continued
Q3 2019
Operating free cash flow – in EUR millionCapex (in PPE) – in EUR million
Capex ratio – in % of total sales
Q2Q4Q3 2018 Q1 Q3 2019
30.8
-46.5
2.6
-19.3
98.6>+100%
25.4
Q3 2018 Q4 Q1 Q2
13.3
Q3 2019
53.9
41.9
5.9
28.8
20.7
-52.9%
Corporate presentation | January 2020 21
Cash flow used for net debt reduction
Q3 2019
Net financial debt – in EUR million Maturity structure of financial debt – in EUR mn
-107-130
48
514
46177
180
Cash and cash
equivalents
Credit linesused
Credit lines
unused
Current <1 year
Non-current
(2-5 years)
3
Non-current
(>5 years)
due 2019
472
617556 520
297
196
187 218
-63 -88 -107
796
Jun. 30
Non-current
financial debt
Dec. 31,
2018
-45
70046
IFRS 16
Sep. 30,
2019
50
Mar. 31
45
Current
financial debt
Cash
and cash
equivalents
724 681
-5.9%
Outlook
Corporate presentation | January 2020 23
Production estimates adjusted downwards monthly
Outlook 2019: Markets
Forecasts global auto production 2019 – in %
Source: JP Morgan, IHS, PWC Autofacts, ElringKlinger research
5.9
Q4e
3.7
Q3
0.2
4.9
3.3
-3.2
3.3
0.2
-1.1
-5.5
Jan 19 Oct 19
Mar 19
May 19
Jul 19
Estimation in
Forecasts auto production China 2019 – in %
11.2
8.8
Q3 Q4e
8.3
6.1
2.0
-5.3-3.8
4.2
-0.8
3.4
Corporate presentation | January 2020 24
Global production forecast for FY 2019
Outlook 2019: Markets
Source: IHS, PWC Autofacts, ElringKlinger research
Light vehicle production growth – in % vs. 2018
-4 to -2 %
North America• Strong demand for SUV
• Trade conflict unresolved
• Strike with impact on
production
-3 to -1%
Europe• Lowered production
schedules
• Brexit unclear
-9 to -7 %
China• Suffering from trade
conflict
• Premium segment still
solid
-3 to -1 %
South America• Slight growth in Brazil
• Growth due to base effect
-6 to -4%
Global
Corporate presentation | January 2020 25
• Optimization of operating performance
in North America
• Further improving fixed cost base in
Switzerland
• Scheduled real estate sale
• Tightened cost saving measures, esp.:
– Reduction of personnel cost
– Reduction of discretionary cost
– Hiring freeze in classical business areas
• Material cost and duties
– Antidumping and countervailing duties
avoided in H2
– Expansion of supplier base
– Incremental effect from higher raw
material prices will phase out
• Personnel cost: Collective wage increase
as of April 2018 with no incremental effect
as from Q2
Various factors with positive impact on FY 2019 earnings
Expectations for FY 2019
External factors Internal factors
Expected EBIT margin pre PPA of around 4 to 5% in FY 2019
Corporate presentation | January 2020 26
2019 – A year of transformation
Outlook 2019: Group
Global LV production:
0 –1%
EBIT margin pre PPA:
~ 4 – 5%
2019
Organic sales:
2 to 4 %-points
above global markets
Mid-term
LV production CAGR:
+2%
Organic sales:
above global markets
EBIT margin pre PPA:
Successive improvement
-6% to -4%
in a challenging environment
(prev.: -4 to -2%)
Corporate presentation | January 2020 27
Further indicators for FY 2019 and in the medium term
Outlook 2019: Group
FY 2018
actual
FY 2019
expected Mid-term
ROCE in % 5.5% Below prior year level Increasing based on
earnings and NWC
improvements
R&D costs
(incl. capitalization)
in % of total sales 5.1% ~ 5 - 6% ~ 5 - 6%
Capex
(in PPE)
in % of total sales 9.6% Below 9% Ongoing disciplined
approach
Net working capital
(NWC)
in % of total sales 33.4%* Below prior year level Slight step-by-step
improvement
Operating FCF in EUR million -86.2 Positive Positive
Equity ratio in % of total assets 42.8% 40 - 50% 40 - 50%
Net debt/EBITDA 3.7 Below prior year level <2.0
* Incl. reclassification due to IFRS 15
Appendix
Corporate presentation | January 2020 29
ElringKlinger Group
Original EquipmentSales: EUR 1,408 million
Employees: 9,23283%
of Group sales
AftermarketSales: EUR 159 million
Employees: 203
9%of Group sales
Engineered PlasticsSales: EUR 118 million
Employees: 784
7%of Group sales
ServicesSales: EUR 10 million
Employees: 204
1%of Group sales
Industrial ParksSales: EUR 4 million
Employees: 2
<1%of Group sales
Sales EUR 1,699 million EBIT (pre PPA) EUR 100.2 million
Employees 10,429 EBIT margin (pre PPA) 5.9 %
Shielding Technology
24%
Specialty Gaskets
19%
Cylinder-head Gaskets
11%
E-Mobility
1%
Exhaust Gas Purification
1%Others <1%
Lightweighting/Elastomer
27%
Structural overview
ElringKlinger
All figures refer to FY 2018
Corporate presentation | January 2020 30
What is driving us
Mission statement
Green mobility
Our vision
Being an essential partner by
(1)Providing technologically sophisticated solutions for customers’ needs
(2)Shaping performance and quality to the next level
(3)Assuming social responsibility as a global corporate player
Our mission
Corporate presentation | January 2020 31
Key figures
Group – Last 5 quarters
Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018
Order intake 438 420 498 391 412
Order backlog 1069 1,063 1,077 1,020 1,027
Sales 432 434 441 432 406
EBITDA 50 39 35 38 48.4
EBIT pre PPA 20.8 10.7 6.9 11.8 23.8
EBIT margin pre PPA (in %) 4.8 2.5 1.6 2.7 5.9
EBIT (reported) 20.3 10.2 6.4 10.6 22.9
EBT 15.3 1.5 5.4 7.2 21.8
Net income attributable to shareholders 6.7 -8.6 -1.5 -1.2 10.8
Earnings per share (in EUR) 0.11 -0.14 -0.02 -0.02 0.17
Capex (in PPE) 25.4 20.7 28.8 41.9 53.9
Operating free cash flow 30.8 98.6 -19.3 2.6 -46.5
Net working capital 478* 499* 606* 567 618
Equity ratio (in %) 40.7 40.7 40.9 42.8 42.1
Net financial debt 682 700 796 724 729
Employees (as at quarter-end) 10,492 10,411 10,485 10,429 10,231
All figures in EUR million unless otherwise described, differences due to rounding * Incl. current contract assets, less current contract liabilities
Corporate presentation | January 2020 32
Segmental figures
Group – Last 5 quarters
Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018
Group Sales 432 434 441 432 406
EBIT (reported) 20.3 10.2 6.4 10.6 22.9
EBIT margin (in %) 4.7 2.3 1.5 2.5 5.6
Original Equipment Sales 353 361 361 365 335
EBIT (reported) 6.4 2.0 -5.3 2.2 10.3
EBIT margin (in %) 1.8 0.6 -1.5 0.6 3.1
Aftermarket Sales 45 40.9 44.7 36.7 37.6
EBIT (reported) 8.5 6.7 7.3 4.1 5.9
EBIT margin (in %) 18.8 16.4 16.3 11.2 15.7
Engineered Plastics Sales 30 28.7 32.2 27.0 30.2
EBIT (reported) 4.9 1.7 4.1 3.7 6.6
EBIT margin (in %) 16.3 5.9 12.7 13.7 21.9
Services Sales 2.4 2.0 2.4 2.5 2.3
EBIT (reported) 0.3 -0.4 0.3 0.3 0.0
EBIT margin (in %) 12.5 -20.0 12.5 10.1 0.0
Industrial Parks Sales 1.2 1.1 1.1 1.2 1.0
EBIT (reported) 0.2 0.1 0.0 0.3 0.1
EBIT margin (in %) 16.7 9.1 0.0 27.3 10.0
All figures in EUR million unless otherwise described, differences due to rounding
Corporate presentation | January 2020 33
Consolidated income statement
Group – FY 2018
2018 2017
Sales revenue 1,699 1,664
Cost of sales -1,329 -1,256
Gross profit 370 408
Gross margin in % 21.8 24.5
Selling expenses -147 -142
General and administrative expenses -84 -77
Research and development costs -76 -71
Other operating income 46 31
Other operating expenses -13 -12
Operating result (EBIT) 96 137
Finance income 33 21
Finance costs -43 -48
Share of result of associates -5 0
Net finance costs -15 -27
Earnings before taxes (EBT) 81 110
Income tax expenses -34 -36
Net income 48 74
of which: attributable to non-controlling interests 4 4
of which: attributable to shareholders of ElringKlinger AG 44 70
Basic and diluted earnings per share (EPS) in EUR 0.69 1.10
All figures in EUR million unless otherwise describe, differences due to rounding
Corporate presentation | January 2020 34
Consolidated statement of financial position
Group – FY 2018
All figures in EUR million unless otherwise describe, differences due to rounding
AssetsAs of Dec
31, 2018
As of Dec
31, 2017
Intangible assets 190 190
Property, plant, and equipment 998 930
Investment property 17 17
Financial assets 3 1
Shares in associates 23 29
Non-current income tax assets 0 0
Other non-current assets 15 4
Deferred tax assets 12 17
Non-current assets 1,257 1,188
Inventories 401 370
Current contract assets 6 0
Trade receivables 306 303
Current income tax assets 9 7
Other current assets 51 48
Cash and cash equivalents 45 45
Current assets 816 773
Assets held for sale 6 62
Total assets 2,080 2,022
Liabilities and equityAs of Dec
31, 2018
As of Dec
31, 2017
Share capital 63 63
Capital reserves 118 118
Revenue reserves 721 711
Other reserves -50 -40
Equity attr. to shareh. of ElringKlinger AG 853 852
Non-controlling interest in equity 37 37
Equity 890 890
Provisions for pensions 124 126
Non-current provisions 20 12
Non-current financial liabilities 472 479
Deferred tax liabilities 15 14
Other non-current liabilities 12 4
Non-current liabilities 642 635
Current provisions 11 23
Trade payables 136 119
Current financial liabilities 297 222
Current contract liabilities 10 0
Tax payable 12 15
Other current liabilities 81 96
Current liabilities 547 474
Liabilities in connection with assets held for sale 0 24
Total liabilities and equity 2,080 2,022
Corporate presentation | January 2020 35
Consolidated statement of cash flows
Group – FY 2018
All figures in EUR million unless otherwise describe, differences due to rounding
2018 2017
Earnings before taxes (EBT) 81 110
Depreciation/amortization (less write-
ups) of non-current assets 100 101
Net interest 15 13
Change in provisions -6 7
Gains/losses on disposal of non-current
assets 0 1
Share of result of associates 5 0
Change in inventories, trade receivables
and other assets not resulting from
financing and investing activities -52 -115
Change in trade payables and other
liabilities not resulting from financing and
investing activities 20 27
Income taxes paid -31 -51
Interest paid -12 -11
Interest received 1 0
Other non-cash expenses and income -30 11
Net cash from operating activities 92 95
2018 2017
Proceeds from disposals of PPE, intangible
assets and investment property 1 1
Proceeds from disposals of financial assets 3 3
Proceeds from the disposal of subsidiaries 57 0
Payments for investments in intangible
assets -15 -11
Payments for investments in PPE and
investment property -164 -156
Payments for investments in financial assets -3 -3
Payments for the acquisition of associates 0 -29
Payments made/received for the acquisition
of subsidiaries and other entities 0 1
Net cash from investing activities -121 -193
Dividends paid to shareholders and to
non-controlling interests -34 -34
Proceeds from addition of long-term loans 77 235
Payments for the repayment of long-term
loans -73 -44
Changes in current loans 60 -47
Net cash from financing activities 30 109
Changes in cash 1 12
Effects of currency exchange rates on cash -1 -3
Cash at beginning of the period 45 39
Cash at end of period (as per financial
statement) 45 45
Corporate presentation | January 2020 36
Key figures
Group – Last 5 years
2018 2017 2016 2015 2014
Order intake 1,735 1,732 1,694 1,615 1,419
Order backlog 1,020 1,001 933 796 688
Sales 1,699 1,664 1,557 1,507 1,326
EBITDA 197 238 231 223 233
(Adjusted) EBIT pre PPA 100 142 140 140 162
(Adjusted) EBIT margin pre PPA in % 5.9 8.5 9.0 9.3 12.2
EBIT (reported) 96 137 136 135 154
EBT 81 110 124 129 153
Net income attributable to shareholders 44 70 79 92 106
Earnings per share in EUR 0.69 1.10 1.24 1.45 1.67
Dividend per share in EUR 0.00 0.50 0.50 0.55 0.55
Capex (in PPE) 164 156 171 176 147
Operating free cash flow -86 -67 -4 -65 -12
ROCE in % 5.5 8.2 8.7 9.5 12.4
Net working capital 567 553 525 523 466
Equity ratio in % 42.8 44.0 47.2 48.5 49.7
Net financial debt 724 655 539 487 348
Employees (as at Dec. 31) 10,429 9,611 8,591 7,912 7,255
All figures in EUR million unless otherwise describe, differences due to rounding
Corporate presentation | January 2020 37
Segmental figures
Group – Last 5 years
All figures in EUR million unless otherwise describe, differences due to rounding
2018 2017 2016 2015 2014
Group Sales 1,699 1,664.0 1,557.4 1,507.3 1,325.8
EBIT (reported) 96 137.3 135.6 135.2 154.0
EBIT margin in % 5.7 8.3 8.7 9.0 11.6
Original Equipment Sales 1,407.7 1,382.4 1,294.3 1,255.8 1,089.7
EBIT (reported) 50.7 86.3 88.9 91.2 111.2
EBIT margin in % 3.6 6.2 6.9 7.3 10.2
Aftermarket Sales 159.5 156.7 147.3 142.2 130.7
EBIT (reported) 24.9 31.8 30.5 28.2 25.1
EBIT margin in % 15.6 20.3 20.7 19.8 19.2
Engineered Plastics Sales 117.8 111.1 101.7 96.6 92.9
EBIT (reported) 19.5 18.5 14.9 13.2 15.4
EBIT margin in % 16.6 16.7 14.7 13.7 16.6
Services Sales 9.7 9.5 9.7 8.3 8.1
EBIT (reported) 0.7 1.2 1.6 2.0 1.9
EBIT margin in % 7.2 12.6 16.5 24.1 23.5
Industrial Parks Sales 4.3 4.3 4.5 4.3 4.5
EBIT (reported) 0.3 -0.5 -0.3 0.7 0.4
EBIT margin in % 7.0 n.a. n.a. 16.3 8.9
Corporate presentation | January 2020 38
Product portfolio
Group
Cylinder-head Gaskets
Specialty Gaskets
Shielding Technology
Thermal shielding
Acoustic shielding
Lightweighting/
Elastomer Technology
Door module carrier
Cockpit cross-car beam
Plastic modules
(cam cover)
E-Mobility
Battery module
PEM fuel cell
Electric drive unit (EDU)
Corporate presentation | January 2020 39
ElringKlinger provides a transformed portfolio
Group strategy
Cylinder-head Gaskets
Shielding Technology
Lightweighting/Elastomer
E-Mobility
Specialty Gaskets
Underbody
protection
Metal-
elastomer
gaskets
Front-end
carrier
Tank
shielding
Disk
carrier
Metallic
bipolar
plate
Cross-car
beam
Dampening
pan
Door
module
carrier
Battery
module
Stra
teg
ic a
rea
s
Functional
Components
E-Mobility
Light-
weighting
Engine
shielding
Brake
hat
Side
impact
protection
Cell
casing
Electric
drive train
PEM
Fuel cell
stack
Cell
contact
system
Present Future
Corporate presentation | January 2020 40
Fuel cell systems will be essential for certain applications
• Suitable for long distances, recurring applications (e.g. buses) and commercial vehicles
• High customer interest esp. in Asia perceived, numerous development projects in progress
Group strategy
Why fuel cell technology?
• H2 production by solar or wind power enables
CO2-neutral propulsion
• Better storability of hydrogen
• Use of the existing filling station infrastructure
• Fast refueling
Why ElringKlinger?
• Ready for series production
• Electrical output of 2 to 150kW possible based on
sophisticated metallic bipolar plates
• Optional integration of peripheral components and
system functionalities into the module
Corporate presentation | January 2020 41
Battery technology enables mobility based on renewable resources
• Battery-powered vehicles are an eco-friendly solution for short distances
• First order for the production of complete battery systems received in 2018
Group strategy
Why battery technology?
• Reduced emissions
• Lower operating and maintenance costs
• Electric motor: quiet and efficient
Why ElringKlinger?
• Ready for series production of battery systems
• Long service life due to robust design with cell
clamping concept and use of proven ElringKlinger
busbars
• Cell contact system for prismatic lithium-ion cells in
series production since 2012
Corporate presentation | January 2020 42
Electric drive unit completes full electric product range
Why electric drive unit (EDU)?
• Hybrid, fuel cell and e-vehicles are reliant on highly
efficient electric drives
• EDU reduces the complexity and powertrain
becomes more compact and efficient
Why ElringKlinger?
• ElringKlinger and hofer powertrain offer
complementary core competencies
• High-end solution with focus on small-series
production in sports and luxury car segment
• Compact coaxial electrive drive unit
• Customer-specific planetary gearing in conjunction
with a differential
• EDU is needed in every hybrid and battery driven vehicle.
• High system efficiency ensures a higher electrical range or, alternatively, a reduction in the battery capacity required.
Group strategy
Corporate presentation | January 2020 43
ElringKlinger represented in all important auto regions
Group
South Africa
Southeast Asia
China
Japan
Korea
Eastern
Europe/
Turkey
South
America
Germany
Italy
Spain
France
UK
USA/Canada
Mexico
India
Production locations of global top 15 OEMs ( )
ElringKlinger production sites ( )
147
176 171156 164
11.1 11.7 11.09.3 9.6
2016 2017 20182014 2015
Capex (in PPE)/ratio – in EUR million/in %
Corporate presentation | January 2020 44
Sales increase primarily driven by strong demand in NAFTA
FY 2018: Sales
EKMarket Market EK
+15.5%
27.8%
-1.0%
1.1%
Market EK
-0.4%
+1.2%
+1.4%
Market
-1.3%
EK
Growth LV production vs. sales ElringKlinger (FX adjusted) – in %
Sales by region – in EUR million resp. %
NAFTA
Europe
Asia
25%
30%
21%
19%
5%
Germany
NAFTA
Rest of Europe
Asia-Pacific
South America and Rest of World
36%
15%
11%
33%
5%
2008
2018
FY 2018 Q4 2018
FY 2018
FY 2018
Corporate presentation | January 2020 45
International diversified customer base
FY 2018: Sales
Sales by customer group – in % of total sales
Other
30% (38%)
American
OEMs
18% (19%)
German
OEMs
22% (16%)
French
OEMs
5% (4%)Tier 1
16% (14%)
Aftermarket
9% (9%)
9%
6%
3%
10%
7%
5%
EUR
1,699
million
Corporate presentation | January 2020 46
Focused R&D activities
Group
R&D – in EUR million
R&D ratio – in % of total sales
5.0% 4.7% 4.8% 4.6% 5.1%
9 10 7 411
5861
5771
76
2014
7167
2015 2016 2017 2018
75
64
87
thereof
capitalized
• Integration of tools implies a
technological lead position in the
development of ideas
• Main focus: lightweight components,
e-mobility
• 590 R&D employees at sites of parent
company
• 80 new international patents in 2018
• Target R&D ratio (incl. capitalization):
5 – 6% of total sales, capitalization rate
~20%
Corporate presentation | January 2020 47
Senior management
Group
Dr. Stefan Wolf, CEO (since 2005)
Responsible for Group companies, the corporate units Legal, HR, Strategic Communications, Marketing & Communications and OE Sales as well as the Aftermarket division | With ElringKlinger since 1997 | Chairman of Baden-Württemberg‘s Employers‘ Association of the Metal and Electric Industry (Südwestmetall) | Member of the Management Board of the German Association of the Automotive Industry (VDA)
Theo Becker, CTO (since 2006)
Responsible for the business units E-Mobility, New Business Areas, Tooling Technology divisions as well as the corporate units Purchasing, Real Estate & Facility Management and the Thale plant | With ElringKlinger since 1994
Thomas Jessulat, CFO (since 2016)
Responsible for the corporate units Finance, Controlling, IT, Logistics and Business Development as well as the Industrial Parks division | With ElringKlinger since 2005
Reiner Drews, COO (since 2018)
Responsible for the business units Cylinder-head Gaskets, Specialty Gaskets, Lightweight/ Elastomer Technology and Shielding Technology, the corporate units Production Management and Quality & Environmental Management as well as ElringKlinger AG plants | With ElringKlinger since 2006
Corporate presentation | January 2020 48
140 years of experience and solid shareholder structure
Group
History of ElringKlinger in very brief
1879 Paul Lechler establishes a merchandising business in Stuttgart for technical products and gaskets. 1885 Richard Klinger
establishes an engineering office in Vienna.
1924 The first Lechler cylinder-head gaskets are produced.
1964 Elring production and development moves from Stuttgart to Dettingen/Erms.1993 Elring goes to Asia: The
joint venture Changchun Elring Gaskets Co. Ltd. has been founded.
1994 Elring GmbH merges with Automotive Division of Richard Klinger GmbH to ElringKlinger GmbH.1997 ElringKlinger founds new
plants in UK, Brazil, Mexico, and the U.S. 2000 ElringKlinger GmbH merges
with parent company ZWL Grundbesitz- und Beteiligungs-AG and is renamed as ElringKlinger AG.2001 ElringKlinger AG intensifies
R&D work on fuel cell components, especially on its internal sealing. 2002 Registered shares of
ElringKlinger AG are traded at Frankfurt and at Stuttgart Stock Exchange.
2010 ElringKlinger AG receives its first order for series production of cell contact systems used in lithium-ion batteries.
2013 ElringKlinger AG acquires tool maker Hummel Formen GmbH which enables the company to offer structural lightweight components.2017 ElringKlinger AG acquires a
stake in hofer powertrain and thus, extends its portfolio to alternative drive technologies.
Shareholder structure as at November, 2019
23.6%
Lechler
Family
52.0%
Institutional
investors
24.4%
Private
investors
2018 ElringKlinger sells interest in Hug and in new enerday
Corporate presentation | January 2020 49
IR calendar and contact
Date Event
Jan 21, 2020 Conference Frankfurt
Mar 30, 2020 Annual Report 2019
May 7, 2020 Q1 2020
May 19, 2020 Annual General Meeting
From left to right:
Heiderose Mall, Christoph Staib, Kathrin Graf, Sabrina Haufler, Dr. Jens Winter
ElringKlinger AG
Strategic Communications
Max-Eyth-Str. 2 |
72581 Dettingen/Erms | Germany
Investor contacts
Dr. Jens WinterHead of Strategic Communications
T: +49 7123 724 88335
Kathrin GrafSenior Manager Strategic Communications
T: +49 7123 724 88279
Corporate presentation | January 2020 50
Disclaimer
Forward-looking statements and predictions
This presentation contains statements about the future. These statements are based on current
expectations, market evaluations and predictions by the Management Board, and on information
that is currently available to them. The statements about the future should not be interpreted as
guarantees of the future developments and results that they refer to. Whilst the Management
Board is convinced that the statements that have been made, and the convictions and
expectations on which they are based, are realistic, they rely on suppositions that may
conceivably prove to be incorrect; future results and developments are dependent on a multitude
of factors, they involve various risks and imponderabilities that can affect whether the ongoing
development deviates from the expectations 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.