MBB : Interim Statement September 30, 2020

INTERIM STATEMENT 30 SEPTEMBER 2020

MBB SE, Berlin

MBB in figures

Page 1

MBB in figures

Nine months	2020	2019	2020
(unaudited)			/2019
Earnings figures (adjusted*)	€k	€k	%
Revenue	510,568	407,827	25.2
Operating perfomance	506,969	407,806	24.3
Total perfomance	523,410	421,485	24.2
Cost of materials	-277,189	-253,993	9.1
Staff costs	-150,897	-101,893	48.1
EBITDA	52,827	40,381	30.8
EBITDA-margin	10.4%	9.9%
EBIT	31,368	27,298	14.9
EBIT-margin	6.2%	6.7%
EBT	17,685	23,546	-24.9
EBT-margin	3.5%	5.8%
Consolidated net profit after non-controlling interests	9,002	9,215	-2.3
eps in €	1.52	1.51	0.6
Average number of shares in circulation	5,935	6,111	-2.9
Earnings figures (IFRS)	€k	€k	%
EBITDA	48,900	51,703	-5.4
Consolidated net profit	4,983	19,171	-74.0
eps in €	0.84	3.14	-73.2
Figures from the statement	30 Sep	31 Dec
of financial position (IFRS)	€k	€k	%
Non-current assets	359,161	346,084	3.8
Current assets	462,123	498,608	-7.3
thereof cash and equivalents**	301,884	340,194	-11.3
Issued capital (share capital)	5,932	5,941	-0.1
Other equity	463,104	468,612	-1.2
Total equity	469,037	474,552	-1.2
Equity ratio	57.1%	56.2%
Non-current liabilities	151,425	149,919	1.0
Current liabilities	200,823	220,221	-8.8
Total assets	821,284	844,692	-2.8
Net debt (-) or net cash (+)**	213,155	249,838	-14.7
Employees	3,471	3,505	-1.0

• For a detailed account of the adjustments please refer to the information provided in the section on results of operations, financial position and net assets.
• This figure includes the value of physical gold stocks and securities.

Business development, result of operations, financial position and net assets Page 2

Business development, result of operations, financial position and net assets

Business development

In the first nine months of 2020, MBB grew revenues by 25.2% to €510.6 million despite the challenges posed by the COVD-19 pandemic. EBITDA even increased by 30.8% to €52.8 million in the same period. The EBITDA margin was thus 10.4%, around half a percentage point higher than in the same period last year. Adjusted earnings per share amounted to €1.52 and thus remained stable compared with the same period of the previous year. As of 30 September 2020, the MBB Group employed around 3,500 staff.

After a very successful start to 2020 for MBB, the effects of the COVID -19 pandemic led to a drop in sales and earnings in some business units in the second quarter. In the third quarter of 2020, revenues of €181.7 million and adjusted EBITDA of €24.1 million significantly exceeded expectations. The high adjusted EBITDA margin of 13.4% underlines the resilience of the MBB group.

The positive business development for the group is mainly driven by the growth of the Service & Infrastructure segment, which generated total revenues of €277.7 million in the first three quarters. The development of the Friedrich Vorwerk Group, which is benefiting from significant investments in the wake of the Energiewende, is particularly noteworthy. In addition to a growing interest in solutions for the transport and processing of hydrogen, sales in the area of gas and electricity infrastructure have grown in recent months. This led to sales of €221.9 million in the first three quarters with an EBITDA margin of 17.8%. In order to further accelerate the strong growth of the company, Friedrich Vorwerk is currently examining possible growth options, which may include an IPO.

The Consumer Goods segment, which comprises the mattress manufacturer CT Formpolster and Hanke, a specialist in tissue products, recorded a 14.0% decline in sales to €56.2 million with a stable EBITDA margin of 9%. Despite the positive effect of the easing of raw material costs, EBITDA decreased by €0.9 million compared to the same period of the previous year. The effects of the COVID -19 pandemic on the Consumer Goods segment are significant.

In the Technological Applications segment, which includes the listed companies Aumann and Delignit, as well as OBO, which specializes in tooling products, a 33 .1% decline in turnover to €176.7 million was recorded. A large part of this decline was expected and is due to the weak order intake at Aumann in the past financial year. In addition, both Delignit and OBO clearly felt the effects of the COVID -19 pandemic after an initially promising start to the year. EBITDA in this segment was therefore 86 .5% lower than in the same period of the previous year. The adjusted EBITDA margin for the first nine months was 1.7%. Within MBB, the Technological Applications segment is expected to be the most affected by the impact of the COVID-19 pandemic, in the fourth quarter of 2020 and beyond.

The Board and the Managing Directors of MBB SE have proposed to the Annual General Meeting on 24 August 2020 to pay a dividend of €0.70 per eligible share. This is the tenth consecutive year in which the basic dividend has been increased, and it has never been reduced since the IPO of MBB in 2006. The Annual General Meeting approved the company's proposal with a large majority. The dividend was paid out on the 27 August 2020.

By resolution of 24 August 2020, the Annual General Meeting approved the 2020 stock option program and authorized the Board of Directors to grant 240,000 subscription rights. The term and waiting period of the subscription rights is 4 years. The extent to which the subscription rights can be exercized is determined using a price-based model. This model consists of a criterion A (exceeding of share price thresholds) and a criterion B (achieved average price). The exercize price of a subscription right is €60.00. On 24 August 2020, a total of 230,000 subscription rights were granted.

Result of operations, financial position and net assets

The result of operations, financial position and net assets continue to be positive. The MBB Group's consolidated revenues after the first nine months of the 2020 financial year amounted to €510.6 million, up 25.2% versus prior year (previous year: €407.8 million). This significant growth is mainly attributable to the companies acquired in the second half of 2019.

Business development, result of operations, financial position and net assets Page 3

Revenue by quarter in millions of €

200	172	157					182	184
						156
150	129	123
100
50
0
Q1	Q2		2019		2020	Q3	Q4

Other operating income of €16.4 million (previous year: €13.7 million) includes income from the at-equity valuation of €7.9 million, income from capitalized own work of €1.5 million, income from the offsetting of non-cash compensation of €1.1 million, income from securities of €0.2 million and other income of €5.8 million. Capitalized development costs are predominantly attributable to Aumann.

The adjusted cost of materials increased by 9.1% to €277.2 million, which is disproportionately low compared to sales growth, while adjusted personnel expenses rose by 48.1% to €150.9 million in the first three quarters of 2020. The change in the cost structure results from the changed portfolio structure compared to the same period of the previous year.

Adjusted overhead costs amounted to €42.5 million (previous year: €25.2 million). These include maintenance and repair expenses, legal and consulting fees, advertising expenses, insurance premiums, travel expenses and other third-party services. The increase is mainly due to the acquisition of the Friedrich Vorwerk Group in the second half of 2019.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) rose by 30.8% to €52.8 million (previous year: €40.4 million) with a margin of 10.4%. Adjustments were made to the costs related to the optimization of the Aumann Group's cost structure and vertical range of manufacture. In particular, these include €3.5 million incurred by the discontinuation of business operations at the Hennigsdorf site , and €0.4 million of expenses incurred at other sites related to capacity reduction initiatives.

Adjusted EBITDA by quarter in millions of €

30									24	27
25
20	13	16		13					16
15		11
10
5
0
Q1	Q2		2019		2020	Q3	Q4

Adjusted depreciation and amortization increased by €8.4 million to €21.5 million compared to the same period of the previous year. €6.8 million of depreciation and amortization on assets capitalized as part of purchase price allocations were adjusted in the results. In addition, impairment losses of €0.3 million on fixed assets at the Aumann Hennigsdorf site were adjusted.

This resulted in an adjusted EBIT (earnings before interest and taxes) of €31.4 million (previous year: €27.3 million).

Taking into account the net finance costs of €-13.7 million (previous year: €-3.8 million), this results in

an adjusted EBT (earnings before taxes) of €17.7 million (previous year: €23.5 million). The negative increase in finance costs is mainly due mainly due to the earnings of the non controlling shareholders of the Friedrich Vorwerk KG (GmbH & Co.).

The adjusted consolidated net income after non-controlling interests amounts to €9.0 million (previous year: €9.2 million) or €1.52 (previous year: €1.51) per share for the nine-month period.