Stabilus S A : Q1 statement / Q1 financial report 2021/2022

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A INTERIM MANAGEMENT STATEMENT

B SUPPLEMENTARY FINANCIAL INFORMATION

C ADDITIONAL INFORMATION

KEY FIGURES

			Three months ended Dec 31,
IN € MILLIONS		2021		2020			Change		% change
Revenue		243.7		235.4	8.3	3.5%
EBIT		25.9		28.1	(2.2)	(7.8)%
Adjusted EBIT		29.3		32.3	(3.0)	(9.3)%
Profit for the period		18.0		14.3	3.7	25.9%
Capital expenditure		(9.4)		(9.7)	0.3	(3.1)%
Free cash flow (FCF)		(15.2)		21.9	(37.1)	<(100.0)%
Adjusted FCF		7.4		21.9	(14.5)	(66.2)%
EBIT as % of revenue		10.6%		11.9%
Adjusted EBIT as % of revenue		12.0%		13.7%
Profit in % of revenue		7.4%		6.1%
Capital expenditure as % of revenue		3.9%		4.1%
FCF in % of revenue		(6.2)%		9.3%
Adjusted FCF in % of revenue		3.0%		9.3%
Net leverage ratio			0.7x			1.0x

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D INFORMATION RESOURCES

Revenue by operating segment (i.e. region, location of Stabilus company)

APAC _ 25%
REVENUE
BY OPERATING	EMEA _ 43%
SEGMENT
IN %
AMERICAS _ 32%

Revenue by business unit

Industrial _ 37%

Automotive

Gas Spring _ 31%

REVENUE BY

BUSINESS UNIT

IN %

Automotive

Powerise® _ 32%

A INTERIM MANAGEMENT STATEMENT

B SUPPLEMENTARY FINANCIAL INFORMATION

C ADDITIONAL INFORMATION

D INFORMATION RESOURCES

INTERIM MANAGEMENT STATEMENT				2
RESULTS OF OPERATIONS					3
DEVELOPMENT OF OPERATING SEGMENTS			6
FINANCIAL POSITION						8
LIQUIDITY						9
RISKS AND OPPORTUNITIES			12
SUBSEQUENT EVENTS			12
OUTLOOK			12

SUPPLEMENTARY FINANCIAL INFORMATION				13
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME				13
CONSOLIDATED STATEMENT OF FINANCIAL POSITION		14
CONSOLIDATED STATEMENT OF CASH FLOWS		15
SEGMENT REPORTING				16

ADDITIONAL INFORMATION		17
FINANCIAL CALENDAR			17
DISCLAIMER			17

INFORMATION RESOURCES

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1

A INTERIM MANAGEMENT STATEMENT

B SUPPLEMENTARY FINANCIAL INFORMATION

C ADDITIONAL INFORMATION

D INFORMATION RESOURCES

• INTERIM MANAGEMENT STATEMENT

INTERIM MANAGEMENT STATEMENT

for the three months ended December 31, 2021

Alternative Performance Measures (APMs) in the interim management statement of the first quarter of fiscal year 2022

In accordance with the European Securities and Markets Authority (ESMA) guidelines on Alternative Performance Measures, the Stabilus Group ­provides a definition, the rationale for use and a reconciliation of APMs used. The Group uses the following APMs: organic growth, adjusted EBIT, free cash flow (FCF), adjusted free cash flow and the net leverage ratio. The calculation of the net leverage ratio is based on net financial debt and adjusted EBITDA, which are also considered APMs.

The APM organic growth is presented because we believe it aids in ­understanding our operating performance. Organic growth is defined as the reported revenue growth after removing the effects of acquisi- tions, divestitures and at constant foreign exchange rates. The effects resulting from constant foreign exchange rates are calculated as

current­ year sales converted at current year exchange rates less current year sales ­converted at prior year exchange rates.

The definitions and required disclosures of all other APMs are provided in the relevant sections of this quarterly statement.

Key events in the first quarter of fiscal year 2022 / Impact of COVID-19 on the Stabilus Group

In the first quarter of fiscal year 2022 (October 1 to December 31, 2021) Stabilus is still affected by uncertainties of the COVID-19 pandemic and its various variants. The Group further offers vaccination on its sites for the employees to provide a safer working environment. The Group also continues with its global multidisciplinary crisis management team to monitor and analyze the situation on a weekly basis on a local and a global level and is taking actions to address and mitigate identified risks.

The risks of material price increases in the global supply chain, e.g. steel and resin, as well as the shortage of electronic components (semiconduc- tors) are having negative impacts on the business of the Group, i.e. impact the production of our automotive customers and our planning stability. Furthermore, Stabilus emphasizes a very strict monitoring of cost, liquidity as well as impairment risks. All employees are well informed about safety measures in business and private life and the further use of home office.

Next to the actions regarding the COVID-19 pandemic, Stabilus set a strong focus on its sustainability initiatives for the next fiscal years. We believe that sustainability will be one of the major issues of the next ­decades. One of our aims is to become climate-neutral by 2030 and to source our energies from renewable sources.

The planned change of the legal form into a European Company (Societas Europaea) and the transfer of the registered office are to be implemented in 2022. The terms of conversion, including the Articles of Association of the future Stabilus SE and the required increase in the Company's share capital from own funds will be submitted for approval to an Extraordinary General Meeting. Another Extraordinary General Meeting is to ­resolve on the plan to transfer the registered office from Luxembourg to Germany, including the Articles of Association of Stabilus SE. Further information on the planned measures can be found at: www.stabilus.com/investors/se.

As reported on October 7, 2021, Stabilus entered into a partnership with the technology company Synapticon GmbH, located in Schönaich (near Stuttgart), Germany. For this strategic partnership, Stabilus subscribed a minority stake of 12% of the shares in Synapticon via a capital increase. The transaction was completed in October 2021. The cash purchase price for 12% shares was €6.0 million. The partnership enables Stabilus to

expand­ its digital competence, which offers significant opportunities ­especially for its Powerise® product line.

As reported on November 22, 2021, Stabilus entered into a partnership with Cultraro Automazione Engineering S.r.l. located in Rivoli (near Turin), Italy. For this strategic partnership, Stabilus acquired 32% of the shares from the company's founders. The cash purchase price for 32% shares was €16.6 million. The partnership focuses on expanding the product range in the field of motion control. The transaction was completed in November 2021. Currently, the Group is preparing the purchase price allocation in accordance with IAS 28 and intends the implementation as equity ­accounted investment in the second quarter of fiscal year 2022.

Due to the strong performance in the APAC region, the Group's total revenue increased by 3.5% to €243.7 million in the first quarter of fiscal year 2022. This is especially driven by the opening of our Powerise® production site in Pinghu, China, during the fiscal year 2021 which plays a central role in the growth of our Automotive Powerise® in the APAC region. In terms of our regions, revenue in APAC increased by 63.4% to €61.1 million and is ­offset by a decline in EMEA by (7.1)% to €105.5 million and Americas by (8.5)% to €77.2 million.

In terms of our business units, our Industrial business is back on course for growth after the weakness in prior year and increased organically by 10.3% to €90.5 million in the first quarter of fiscal year 2022. Our Automotive Powerise® business increased organically by 2.4% to €76.7 million in the first quarter of fiscal year 2022. In contrast to that our Automotive Gas Spring business decreased organically by (9.0)% to €76.5 million in the first quarter of fiscal year 2022. However, both automotive business

S TA B I L U S Q U A R T E R LY S TAT E M E N T Q 1 F Y 2 0 2 2

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A INTERIM MANAGEMENT STATEMENT

B SUPPLEMENTARY FINANCIAL INFORMATION

C ADDITIONAL INFORMATION

D INFORMATION RESOURCES

• INTERIM MANAGEMENT STATEMENT
• RESULTS OF OPERATIONS

units outperformed the global automotive market assumptions. According to the forecast of IHS Markit the global light-vehicle production declined in the first quarter of fiscal year 2022 (October 2021 - December 2021) by approximately (13.2)% compared to prior year.

RESULTS OF OPERATIONS

The table below sets out Stabilus Group's consolidated income statement for the first quarter of fiscal year 2022 in comparison to the first quarter of fiscal year 2021:

Income statement										T _ 001
			Three months ended Dec 31,
IN € MILLIONS		2021			2020		Change		% change
Revenue		243.7			235.4		8.3	3.5%
Cost of sales		(178.1)			(165.4)		(12.7)	7.7%
Gross profit		65.7			70.1		(4.4)	(6.3)%
Research and development expenses		(11.9)			(10.5)		(1.4)	13.3%
Selling expenses		(20.2)			(20.5)		0.3	(1.5)%
Administrative expenses		(9.9)			(10.0)		0.1	(1.0)%
Other income		2.6			1.2		1.4	>100.0%
Other expenses		(0.3)			(2.2)		1.9	(86.4)%
Profit from operating activities (EBIT)		25.9			28.1		(2.2)	(7.8)%
Finance income		1.4			0.1		1.3	>100.0%
Finance costs		(2.2)			(8.2)		6.0	(73.2)%
Profit / (loss) before income tax		25.2			20.0		5.2	26.0%
Income tax income / (expense)		(7.2)			(5.7)		(1.5)	26.3%
Profit / (loss) for the period		18.0			14.3		3.7	25.9%

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