Corporate presentation. August 2018

Transcription

1 Corporate presentation August 2018

2 ElringKlinger In a nutshell Founded in 1879 Worldwide 45 locations 9,611 employees as of Dec 31, 2017 Family as a strong anchor shareholder Sales of EUR 1,664 million in % annual growth in sales since % EBIT margin pre PPA in 2017 Headquartered in Dettingen, close to Stuttgart 2

3 Mission statement What is driving us Our vision Our mission Green mobility 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 3

4 Markets Megatrends trigger technological transformation process Urbanization Safety systems Scarcity of resources Globalization Technological progress Global megatrends transform the automotive industry Autonomous driving Efficient propulsion Connectivity Climate change Shared mobility 4

5 Markets Automotive growth driven by new drive systems from 2021 on Global combustion engines production Global EV production CAGR +1% CAGR -1% CAGR +24% Source: Morgan Stanley, ElringKlinger Research 5

6 Markets Main driver: Stricter emissions legislation for vehicles Values adjusted to the European NEDC* test cycle USA g CO 2 /km average fleet emissions EU g CO 2 /km average fleet emissions EU 2030 ** 30 % reduction of average fleet emissions (base year: 2021) India g CO 2 /km average fleet emissions China g CO 2 /km average fleet emissions Japan g CO 2 /km average fleet emissions * New European Driving Cycle ** Proposal submitted by the EU commission in November 2017 Source: ICCT, ElringKlinger research 6

7 Markets Uncertainties characterize transformation process? Will OEMs Will develop a next generation of combustion engine? Are full-hybrid cars be too costly? OEM plans Will regarding fullelectric cars too ambitious? urban and rural demand be different Internal combustion Hybrid Full-electric Will there be a next stage of emission regulations? What will drive customers acceptance of the change? What are the global leading markets for E-mobility? Who will be the player in EV market? How environmentfriendly is total balance of power generation? 7

8 Markets ElringKlinger already well prepared for transformation Present Bridge Future Internal combustion Hybrid Full-electric Cylinder-head gaskets Specialty gaskets Shielding parts Plastic modules Structural components Battery components Drivetrain systems Fuel cell systems ElringKlinger with traditional product portfolio, neither to diesel nor to gasoline significantly exposed ElringKlinger with extended range of products ElringKlinger with broadened and transformed product portfolio, based on strong innovation power 8

9 Group ElringKlinger s sales structure of products will change Sales split (actual and ambition) in % of total sales Actual 2017 Ambition 2030 Non-Automotive products Aftermarket Structural 5% lightweight and 9% e-mobility 4% products Aftermarket Non-Automotive products ~10% ~10% 82% Functional components Structural lightweight and e-mobility products >25% <55% Functional components 9

10 Group ElringKlinger prepared to play an active role in the transformation Sales split (ambition) in % of total sales Ambition 2030 Structural lightweighting Less weight and higher degree of functionality Unique production E-Mobility Battery, fuel cell, and drivetrain system Track record of successful R&D work and proven competence, e.g. as series producer of e-mobility components Aftermarket Structural lightweight and e-mobility products Non-Automotive products ~10% >25% ~10% <55% Functional components Functional components Continuous high market share Benefitting from global footprint as well as profound material and process know-how 10

11 Three strategic areas of ElringKlinger: Lightweighting Lightweight products help to meet CO 2 regulations Technology Markets ElringKlinger -100 kg CO 2 km kg weight reduction corresponds to 0.4l/100 km less fuel consumption Less weight helps to lower fuel consumption and thus, to reduce CO 2 emissions Less weight means a higher range of driving for full EVs Advanced materials enable new application areas Improving driving dynamics Technology independent of the drivetrain system Lightweighting trend enforced by emission regulations, imposing penalties on those OEMs which do not meet the reference values Products like the cross-car beam reduce the weight of a car up to 40% Focus: in-house tooling technology enabling the production of complex geometries Broad range of products: Organo sheets (e.g. door module carrier) Hydroform-hybrid (e.g. cross-car beams, front-end carrier, front-end adapter) 11

12 Three strategic areas of ElringKlinger: E-Mobility Battery JV with CITC targets China and global markets Technology Markets ElringKlinger 0 gco 2 30 min + 4,000 Zero emission possible Batteries can be recharged to a 80% level within 30 minutes Lower maintenance costs than a combustion engine car Public recharging stations in Germany with upward trend E-mobility as main contributor to Automotive growth from 2021 on Emission reduction targets as key driver of the industry National quota regulations for electric vehicles in discussion in many countries State-funded incentive programs support the forward movement Expanding recharging infrastructure Established e-mobility supplier as series producer of cell contacting systems since 2011 Cooperation with Chinese battery manufacturer CITC/CALB Signed in 2017 Targeting global markets CALB in charge of the cell, ElringKlinger responsible for design, cell contacts and housing Enhancing driving comfort by lowest acoustic emission 12

13 Three strategic areas of ElringKlinger: E-Mobility Fuel cell market with substantial growth potential Technology Markets ElringKlinger >500 km 0 gco 2 + Large range of driving Zero emission possible for both power generation and fuel cell in use Multiple applications (e.g. cars, LCVs, trucks, buses, trains, forklifts) China as main market opportunity subsidizing each vehicle driven by a fuel cell system Market entry in Europe supported by economies of scale in the mid-term perspective PEM fuel cell stack developed: 300 cells generate 63 kwel Broad range of products: Full PEMFC stack Components: Metallic bipolar plates, end and media modules, casings R&D and testing Patents for several designs of bipolar plates and media modules 2-5 min Easy and fast to refuel Increasing number of H 2 fueling stations 13

14 Three strategic areas of ElringKlinger: E-Mobility Stake in hofer complementing the e-mobility path Technology Markets ElringKlinger EDU 4 Combines power management electronics, transmission and electric engine Production-ready system enables acceleration from 0 to 100 km/h in 4 seconds Smart control of power flow via intelligent software technology Strong growth of PHEV, BEV and FCEV forecast, particularly from 2021 onward Differentiated market: mass market, premium market as well as luxury segment Acquisition of stake in hofer 28.9% of hofer AG 53% of hofer powertrain products Broad range of products, e.g.: System integration Control software Power management electronics Thermal management Safety concepts Intelligent thermal managementimproves cooling performance By offering sophisticated high-tech solutions, addressing high-end sports and luxury car segment + To be flexibly integrated into PHEV, BEV, and FCEV 14

15 Three strategic areas of ElringKlinger: Functional Components Continuous growth prospects in a transforming world Cylinder-head Gaskets division Only Cylinder-head Gaskets division fully dependenton combustion and hybrid world Profound material and process know-how that is also used for new products (e.g. for bipolar plates or cell contacting systems) High global market share of 40-50% Divisions Specialty Gaskets, Lightweighting/Elastomer Technology (with its plastic modules) and Shielding Technology simultaneously offer products only for the combustion engine world, products which are independent of the type of drivetrain, and new products for alternative drivetrain systems Combustion engine technology continues to be relevant, particularly in certain regions and for certain applications 15

16 Group Broader scope of ElringKlinger content by wide product range Content per car in EUR Present Future EUR Content per car ,000 EUR ( EUR incl. cross-car beam) 16

17 Financials

18 Q Substantial organic sales growth of 12% Order intake in EUR million Order backlog in EUR million +11.0% (FX adj.: +13.3%) +3.9% (FX adj.: +6.3%) ,001 1,027 1,038 Q Q3 Q4 Q1 Q Q Q3 Q4 Q1 Q Sales in EUR million Sales in EUR million % % +5.6% % % Q Q3 Q4 Q1 Q Q FX M&A Organic Q

19 Q Earnings operationally on improving track q-o-q EBITDA in EUR million EBIT pre PPA in EUR million % % Oneoff Hug EBIT marginpre PPA (Q adjusted for one-off) Q Q3 Q4 Q1 Q Q Q3 Q4 Q1 Q Net income (attr. to shareholders) in EUR million Earnings per share in EUR % % Q Q3 Q4 Q1 Q Q Q3 Q4 Q1 Q

20 Q Net working capital and net debt reflect strong business growth Net working capital in EUR million Capex (in PPE) in EUR million % % Q Q3 Q4 Q1 Q Q Q3 Q4 Q1 Q Operating free cash flow in EUR million Net financial debt in EUR million -86.3% % Q Q3 Q4 Q1 Q Q Q3 Q4 Q1 Q

21 Q OE: Lightweighting/Elastomer strongest business unit in sales Sales by segment in EUR million Share of total sales in % Aftermarket 42.3 (40.2) 10% (10%) Engineered Plastics 30.0(26.3) 7% (6%) Services 2.5 (2.4) 1% (1%) Industrial Parks 1.0 (1.1) <1% (<1%) Original Equipment (OE) (337.9) 82% (83%) Cylinder-Head Gaskets: 12% (12%) Specialty Gaskets: 18% (18%) Lightweighting/Elastomer: 26% (23%) Shielding Technology: 24% (26%) Exhaust Gas Purification: 1% (3%) E-Mobility: 1% (1%) Other OE business: <1% (<1%) Previous Q2 s figures grey-colored in brackets 21

22 Q Engineered Plastics growing profitably by 14% Sales in EUR million EBIT margin in % Original Equipment (OE) +5.0% Aftermarket +5.2% Q Q3 Q4 Q1 Q Q Q3 Q4 Q1 Q Engineered Plastics +14.1% Services & Industrial Parks % Industrial Parks Services Q Q3 Q4 Q1 Q Q Q3 Q4 Q1 Q

23 FY 2017 Ongoing internationalization and diversified customer structure Sales by region in % of total sales Sales 2017 by customer group in % of total sales +6.9% 608 5% 17% 10% 30% 33% 35% 2007 South America/ Rest of World 1,127 6% 16% 18% 30% 2012 Asia- Pacific 1,557 4% 19% 19% 31% 27% 2016 NAFTA 1,664 5% 19% 19% 31% 26% 2017 Rest of Europe Germany Other 38% Aftermarket 9% Tier 1 14% American OEMs 19% French OEMs 4% German OEMs 16% 23

24 Profit and loss statement Important factors on earnings level Aluminum Nantiat (F) Part 1 Sevelen (CH) 20 Part 2 18 Kecskemét (HU) High-grade steel C-steel Reus (E) Polyamides Optimization of Swiss site on track Main part of migration finalized Next step: migration of second part to new factory in Hungary completion scheduled for end of 2018 Continuing optimization of cost structure at Swiss site to be finished by end of 2019 Annual optimization impact of EUR 10 million planned for 2018 and 2019 Commodity prices further increased Aluminum: cut of supply by China C-Steel: EU anti-dumping measures resulting in shortage of supply Polyamide: prices triggered by high global demand for lightweighting products 24

25 Profit and loss statement The path of resolving the high-demand situation in NAFTA ElringKlinger NAFTA sales in EUR million (left-hand side) LV production NAFTA in thousand units (right-hand side) ,000 4,500 0 Q Q Q Q Q [ ] 0 Production Installation of additional production lines Logistics Personnel Optimization of logistics processes Hiring additional personnel and implementing training programs Sales Cost Gradual adjustment of product prices Optimizing fixed cost base EBIT improvement dueto enhanced execution 25

26 FY 2017 Stable dividend payment Dividend payment in EUR Payout ratio in % of Group EPS Equity in EUR million Equity ratio in % of total assets Employees headcount as of Dec % 44.0% +0.4% +11.9% ,591 9, % 60% Abroad 41% 40% Germany

27 FY 2017 Net working capital mainly driven by inventories Net Working Capital (NWC) in EUR million NWC ratio in % of total sales Inventories bridge in EUR million 33.7% 33.3% +12.5% % +5.5% % thereof: tools Inventories Trade receivables Trade payables 2016 FX M&A Sales growth Tools (FXadj.) Aftermarket Others

28 FY 2017 Improved maturity structure by issued Schuldscheindarlehen Net financial debt in EUR million Maturity structure of financial debt in EUR million +21.5% Current financial debt Non-current financial debt Cash and cash equivalents -45 Cash and cash equivalent Current (up to 1 year) Non-current (between 1 and 5 years) Non-current (>5 years) 28

29 FY 2017 Disciplined capex, increased inventories and SSD affected cash flow Capex (in PPE) in EUR million Capex (in PPE) ratio in % of total sales Cash flow bridge in EUR million 11.0% 9.3% +15.5% % Capex (in PPE) Cash 2016 Operating cash flow Financing activities Investments FX/ Others Cash 2017 SSD = Schuldscheindarlehen 29

30 Outlook

31 Expectations for 2018 Stable growth situation on global markets Light vehicle production growth in % vs % Europe Stable situation in Germany Growth in Southern Europe +1% NAFTA Rising truck market Subdued demand for LVs +3% Asia-Pacific High demand for SUVs in China Japan taking a breather +10% South America Low basis Turnaround achieved +2-3% Global Solid growth prospects Supported by Europe and China Source: PWC Autofacts, OICA, HSBC, JP Morgan, ElringKlinger research 31

32 Expectations for 2018 Numerous factors intensify general environment of uncertainty 2018 Mid-term Ongoing discussion on diesel subject and court decisionson city bans of diesel cars Geopolitical tensions and higher national interests as risk factors Development of raw material prices Costs for shaping production facilities to Group standard Costs of the transformation process of the industry Optimized cost structure esp. at highly utilized locations Increasing sales Continuous improvement of production processes on a global basis Optimized purchasing and logistic processes within the Group Benefitting from early preparationsfor future Automotive technologies 32

33 Group Outlook 2018 updated in June 2018 Mid-term 2 4 percentage points above global market growth Organic sales Above global market growth updated: ~ 7% (previously: ~ 9%) EBIT margin pre PPA Successive improvement Conference call Q August 7,

34 Group Further indicators for FY 2018 updated FY 2017 actual FY 2018 originally expected ROCE in % 8.2% Slight year-on-year improvement R&D costs in % of total sales 4.6% ~ 5-6% Capex (in PPE) in % of total sales 9.3% ~ 9-10% Net working capital (NWC) FY 2018 updated Slightly below prior-year level in % of total sales 33.3% Below prior-yearlevel Slightly above prior-year level Operating FCF in EURmillion Slight year-on-year improvement Equity ratio in % of total assets % Slightly below prior-year level 34

35 Appendix

36 ElringKlinger Structural overview ElringKlinger Group Sales EUR 1,664 million EBIT EUR million Employees 9,611 EBIT margin 8.3 % 83.1% of Group sales Original Equipment Sales: EUR 1,382 million Employees: 8, % of Group sales Aftermarket Sales: EUR 157 million Employees: 181 E-Mobility 1% Other <1% Cylinder-head Gaskets 12% 6.7% of Group sales Engineered Plastics Sales: EUR 111 million Employees: 739 Exhaust Gas Purification 3% Shielding Technology 26% Specialty Gaskets 18% Lightweighting/ Elastomer Technology 23% 0.6% of Group sales 0.3% of Group sales Services Sales: EUR 10 million Employees: 190 Industrial Parks Sales: EUR 4 million Employees: 2 All figures refer to FY

37 Group FY 2017 Consolidated statement of financial position Assets As of Dec 31, 2017 As of Dec 31, 2016 Intangible assets Property, plant, and equipment Investment property Financial assets 1 1 Shares in associates 29 0 Non-current income tax assets 0 0 Other non-current assets 4 4 Deferred tax assets Non-current assets 1,188 1,168 Inventories Trade receivables Current income tax assets 7 4 Other current assets Cash and cash equivalents Current assets Assets held for sale 62 0 Total assets 2,022 1,878 All figures in EUR million unless otherwise described, differences due to rounding Liabilities and equity As of Dec 31, 2017 As of Dec 31, 2016 Share capital Capital reserves Revenue reserves Other reserves Equity attr. to shareh. of ElringKlinger AG Non-controlling interest in equity Equity Provisions for pensions Non-current provisions Non-current financial liabilities Deferred tax liabilities Other non-current liabilities 4 4 Non-current liabilities Current provisions Trade payables Current financial liabilities Tax payable Other current liabilities Current liabilities Liabilities in connection with assets held for sale 24 0 Total liabilities and equity 2,022 1,878 37

38 Group FY 2017 Consolidated income statement Sales revenue 1,664 1,557 Cost of sales -1,256-1,162 Gross profit Gross margin in % Selling expenses General and administrative expenses Research and development costs Other operating income Other operating expenses Operating result (EBIT) Finance income Finance costs Share of result of associates 0 0 Net finance costs Earnings before taxes (EBT) Income tax expenses Net income of which: attributable to non-controlling interests 4 4 of which: attributable to shareholders of ElringKlinger AG Basic and diluted earnings per share (EPS) in EUR All figures in EUR million unless otherwise described, differences due to rounding 38

39 Group FY 2017 Consolidated statement of cash flows Earnings before taxes (EBT) Depreciation/amortization (less write-ups) of non-current assets Net interest Change in provisions 7 0 Gains/losses on disposal of non-current assets 1-1 Share of result of associates 0 0 Dividends from associates 0 0 Change in inventories, trade receivables and other assets not resulting from financing and investing activities Change in trade payables and other liabilities not resulting from financing and investing activities Income taxes paid Interest paid Interest received 0 0 Other non-cash expenses and income 11 2 Net cash from operating activities All figures in EUR million unless otherwise described, differences due to rounding Proceeds from disposals of PPE, intangible assets and investment property 1 3 Proceeds from disposals of financial assets 3 0 Payments for investments in intangible assets Payments for investments in PPE and investment property Payments for investments in financial assets -3-5 Payments for the acquisition of associates Payments made/received for the acquisitionof subsidiaries and other entities, less cash 1-5 Net cash from investing activities Payments to non-controlling interests for the purchase of shares 0 0 Dividends paid to shareholders and to non-controlling interests Proceeds from addition of financial liabilities Payments for the repayment of financial liabilities Changes in current loans Net cash from financing activities Changes in cash 12-9 Effects of currency exchange rates on cash -3 0 Cash at beginning of the period Cash at end of period

40 Group Last 5 years Key figures Order intake 1,732 1,694 1,615 1,419 1,284 Order backlog 1, Sales 1,664 1,557 1,507 1,326 1,150 EBITDA (Adjusted) EBIT pre PPA (Adjusted) EBIT margin pre PPA in % EBIT (reported) EBT Net income attributable to shareholders Earnings per share in EUR Dividend per share in EUR Capex(in PPE) Operating free cash flow ROCE in % Net working capital Equity ratio in % Net financial debt Employees (as at Dec. 31) 9,611 8,591 7,912 7,255 6,716 All figures in EUR million unless otherwise described, differences due to rounding 40

41 Group Last 5 years Segmental figures Group Sales 1, , , , ,150.1 EBIT (reported) EBIT margin in % Original Equipment Sales 1, , , , EBIT (reported) EBIT margin in % Aftermarket Sales EBIT (reported) EBIT margin in % Engineered Plastics Sales EBIT (reported) EBIT margin in % Services Sales EBIT (reported) EBIT margin in % Industrial Parks Sales EBIT (reported) EBIT margin in % n.a. n.a All figures in EUR million unless otherwise described, differences due to rounding 41

42 Last 5 quarters Key figures Q Q Q Q Q Order intake Order backlog 1,038 1,027 1, Sales EBITDA EBIT pre PPA EBIT margin pre PPA (in%) EBIT (reported) EBT Net income attributable to shareholders Earnings per share (in EUR) Capex (in PPE) Operating free cash flow Net working capital Equity ratio (in%) Net financial debt Employees (as at quarter-end) 9,954 9,618 9,611 9,376 9,012 All figures in EUR million unless otherwise describe, differences due to rounding 42

43 Group Last 5 quarters Segmental figures Q Q Q Q Q Group Sales EBIT (reported) EBIT margin (in %) Original Equipment Sales EBIT (reported) EBIT margin (in %) Aftermarket Sales EBIT (reported) EBIT margin (in %) Engineered Plastics Sales EBIT (reported) EBIT margin (in %) Services Sales EBIT (reported) EBIT margin (in %) Industrial Parks Sales EBIT (reported) EBIT margin (in %) All figures in EUR million unless otherwise describe, differences due to rounding 43

44 Group Product portfolio Cylinder-head Gaskets Specialty Gaskets E-Mobility Battery module Fuel cell Electric drive unit (EDU) Shielding Technology Thermal shielding Acoustic shielding Lightweighting/ Elastomer Technology Door module carrier Cockpit cross-car beam Plastic modules (cam cover) 44

45 Group Track record of focused acquisitions Year of selected acquisition and product area SEVEX Group 2008 Heat shields Marusan JV 2008 Gaskets, heat shields ElringKlinger Group 2005: EUR 475 million 2017: EUR 1,664 million new enerday Fuel cell technology 2014 Polytetra Heat management 2014 Freudenberg (parts) 2011 Gaskets M&W Transmission plates 2015 Hummel 2011 Tools, plastics Maier Formenbau Tools 2016 ThaWa 2012 Metal housing Stake in hofer Transmission systems, electronics, software

46 Group ElringKlinger provides a transformed portfolio Present Future Cylinder-head Gaskets Specialty Gaskets Shielding Technology Lightweighting/Elastomer E-Mobility Underbody protection Cell casing Metalelastomer gaskets Front-end carrier Tank shielding Metallic bipolar plate Brake hat Cross-car beam Cell contact system Dampening pan Door module carrier Fuel cell stack Disk carrier Battery module Engine shielding Side impact protection Electric drive train Functional Components Lightweighting E-Mobility Strategic areas 46

47 Global network of production sites is key to success ElringKlinger represented in all important auto regions Production locations of global top 15 OEMs ( ) ElringKlinger production sites ( ) Germany UK France Spain Italy Eastern Europe/ Turkey China Korea Japan USA/Canada India Southeast Asia Mexico Capex (in PPE)/ratio in EUR million/in % South America South Africa

48 Group Focused R&D activities, tooling affects working capital R&D in EUR million R&D ratio in % of total sales % 5.0% 4.7% 4.8% 4.6% thereof capitalized R&D highlights Integration of tools implies a technological lead position in the development of ideas Main focus: lightweight components, e-mobility 597 R&D employees at sites of parent company 69 new international patents in 2017 Net working capital (NWC) in EUR million NWC ratio in % of total sales % 35% 35% 34% 33% Trade payables Trade receivables Inventories Working capital highlights Tools for customers included in inventories until sale with start of series production Organizational measures with positive impact Mid-term indication: Slight step-by-step improvement 48

49 Senior Management Theo Becker, CTO (since 2006) Responsible for the E-Mobility, New Business Areas and Tooling Technology divisions as well as the corporate functions Purchase and Real Estate and Facility Management With ElringKlinger since years of professional experience Reiner Drews, COO (since 2018) In charge of Production and Technology, Quality and Environment, Production Engineering & Standardization Management and all domestic plants With ElringKlinger since years of professional experience Dr. Stefan Wolf, CEO (since 2005) In charge of OE Sales, Aftermarket, HR, Legal, Corporate Communications, and Group companies 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) Thomas Jessulat, CFO (since 2016) In charge of Finance, Controlling, Tax, Business Development, Logistics, IT and the Industrial Park segment With ElringKlinger since years of professional experience 49

50 Group 140 years of experience and solid shareholder structure History of ElringKlinger in very brief Shareholder structure as at Dec. 31, Paul Lechler establishes a merchandising business in Stuttgart for technical products and gaskets The first Lechler cylinderhead gaskets are produced Elring goes to Asia: The joint venture Changchun Elring Gaskets Co. Ltd. has been founded. 1997ElringKlinger founds new plants in UK, Brazil, Mexico, and the U.S ElringKlinger AG intensifies R&D work on fuel cell components, especially on its internal sealing. 2010ElringKlinger AG receives its first order for series production of cell contact systems used in lithium-ion batteries. 2017ElringKlinger AG acquires a stake in hofer powertrain and thus, extends its portfolio to alternative drive technologies. 1885Richard Klinger establishes an engineering office in Vienna. 1964Elring production and development moves from Stuttgart to Dettingen/Erms. 1994Elring GmbH merges with Automotive Division of Richard Klinger GmbH to ElringKlinger GmbH. 2000ElringKlinger GmbH merges with parent company ZWL Grundbesitzund Beteiligungs-AG and is renamed as ElringKlinger AG Registered shares of ElringKlinger AG are traded at Frankfurt and at Stuttgart Stock Exchange ElringKlinger AG acquires tool maker Hummel FormenGmbH which enables the company to offer structural lightweight components. Institutional investors 31.8% Private investors 16.2% Lechler Family 52.0% 50

51 IR calendar and contact Date Aug 29, 2018 Sep 24, 2018 Sep 25, 2018 Oct 2, 2018 Nov 6, 2018 Event Conference, Frankfurt Conference, Munich Conference, Munich Conference, Paris Motor Show Q32018 YourIR team From left to right: Heiderose Mall, Christoph Staib, Kathrin Graf, Sabrina Haufler, Dr. Jens Winter ElringKlinger AG Strategic Communications Max-Eyth-Str Dettingen/Erms Germany investor-relations@elringklinger.com Investor contacts Dr. Jens Winter Head of Strategic Communications E: jens.winter@elringklinger.com T: Sabrina Haufler Senior Manager Strategic Communications E: sabrina.haufler@elringklinger.com T:

52 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 imponderabilitiesthat 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. 52