Renk : Release of the RENK AG halfyear financial report 2020

Press information

RENK Aktiengesellschaft

Order intake far higher than in previous year,

Sales revenue higher than previous year,

Operating profit up significantly on previous year

RENK Group

In € million	2020	2019
H1	H1
Order intake	387	238
Sales revenue	246	215
Order backlog1)	958	821
Headcount (no.)1)	2,573	2,569
Operating profit	19	4
Operating return on sales (%)	7.9	1.6

1) As of June 30, 2020, as against December 31, 2019.

Order intake far higher than in previous year

The RENK Group generated an order intake of € 387 million in the first six months of 2020 (previous year: € 238 million). Growth was driven by Special Gear Units and Vehicle Transmissions. Slide Bearings maintained its 2019 level, whereas Standard Gear Units declined slightly year over year.

Sales revenue higher than previous year

At € 246 million, RENK's sales revenue in the first half of 2020 was € 31 million higher than the previous year figure of € 215 million. Special Gear Units, in particular, saw its sales revenue recover considerably against the previous year, with Vehicle Transmissions also reporting an increase in sales revenue.

Order backlog

As of June 30, 2020, RENK had an order backlog of € 958 million (December 31, 2019: € 821 million).

Operating profit up significantly on previous year

At € 19 million, operating profit for the first half of 2020 was far better than in the comparative period in 2019 (€ 4 million). The Vehicle Transmissions and Slide Bearings businesses achieved gains. The negative impact that Special Gear Units had on profit in the previous year declined considerably in the first half of 2020. As expected, profit in the Standard Gear Units business remained below that of the previous year. RENK therefore generated an operating return on sales of 7.9% in the 2020 reporting period (previous year: 1.6%).

Increased headcount

The RENK Group employed 2,573 people as of June 30, 2020, after 2,569 as of December 31, 2019. This includes 63 subcontracted employees (December 31, 2019: 68).

Augsburg,

August 4, 2020

No. 6/2020

RENK Aktiengesellschaft

Gögginger Str. 73

86159 Augsburg, Germany

In case of questions:

[e-mail]

www.renk-ag.com

RENK AG is an internationally renowned manufacturer of high-quality special gear units for tracked vehicles, industrial applications and shipbuilding, and of drive technology and test system components.

The company is a world leader in automatic transmissions for heavy tracked vehicles, gear systems for navy ships and horizontal slide bearings.

2

Press information no. 6

RENK Aktiengesellschaft

Research and development

At € 7 million, spending on internally financed research and development projects was stable year over year in the first six months of 2020 (€ 7 million).

Capital expenditures

RENK invested a total of € 16 million in intangible assets and property, plant and equipment in the period until June 30, 2020 (previous year: € 13 million). Capital expenditure again focused on the Augsburg site.

Outlook

While the COVID-19 pandemic did not take such a severe toll on RENK in the first half of the year as it did on many other companies, the consequences will nonetheless negatively affect key performance indicators for 2020. Provided that the situation does not continue to deteriorate in the second half of the year and in fact improves somewhat (e.g. because more travel is able to resume), management anticipates the following for 2020 as a whole: as expected at the start of the year, the order intake should be far higher than in the previous year. Sales revenue, by contrast, will remain more or less on par with the previous year on account of the current restrictions. In light of this, operating profit/loss and the operating return on sales will remain slightly below the previous year figures.

3

Press information no. 6

RENK Aktiengesellschaft

RENK Group - At a glance

In € million	2020	2019	Change
H1	H1	(%)
Order intake	387	238	+62.5
Sales revenue	246	215	+14.6
Order backlog1)	958	821	+16.7
Headcount1)	2,573	2,569	+0.2
In € million	2020	2019	Change
H1	H1	in € million
Operating profit	19	4	+15
Profit before taxes	19	4	+15
Profit after tax	13	3	+10
Earnings per share in €	1.95	0.39	-
Operating return on sales in %	7.9	1.6	-
Capital expenditures2)	16	13	+3
Depreciation and amortization on non-	12	10	+2
current assets
Internally financed R&D expenditures	7	7	-
Cash flows from operating activities	44	-4	+48
Cash flows from investing activities	-16	-55	+39
Net cash flow	28	-59	+87
Net liquidity1)	110	96	+14
Total equity1)	476	484	-8

1. As of June 30, 2020, as against December 31, 2019
2. For property, plant and equipment and intangible assets

RENK Aktiengesellschaft

The Executive Board