Stabilus S A : Q2 FY2020 Results Presentation

Q2 FY2020

RESULTS

May 4, 2020

Disclaimer

Stabilus S.A. (the "Company", later "Stabilus") has prepared this presentation solely for your information. It should not be treated as giving investment advice. Neither the Company, nor any of its directors, officers, employees, direct or indirect shareholders and advisors nor any other person shall have any liability whatsoever for any direct or indirect losses arising from any use of this presentation.

While the Company has taken all reasonable care to ensure that the facts stated in this presentation are accurate and that the opinions contained in it are fair and reasonable, this presentation is selective in nature. Any opinions expressed in this presentation are subject to change without notice and neither the Company nor any other person is under any obligation to update or keep current the information contained in this presentation. Where this presentation quotes any information or statistics from any external source, you should not interpret that the Company has adopted or endorsed such information or statistics as being accurate. This presentation contains forward-looking statements, which involve risks, uncertainties and assumptions that could cause actual results, performance or events to differ materially from those described in, or expressed or implied by, such statements. These statements reflect the Company's current knowledge and its expectations and projections about future events and may be identified by the context of such statements or words such as "anticipate," "believe", "estimate", "expect", "intend", "plan", "project" and "target". No obligation is assumed to update any such statement.

Numbers were rounded to one decimal. Due to rounding, numbers presented may not add up precisely to the totals provided.

1

Agenda

1. Operational update
2. Financial results
3. Results by operating segment
4. Outlook
5. Appendix

2

Agenda

1. Operational update

2.

3.

4.

5.

3

Impact of COVID-19 pandemic on Stabilus operations

Status quo		Corporate actions

Light vehicle production in Q2 FY20 decreased by almost a quarter (-23% y/y); current LVP forecast for FY20 (Oct-Sept) expects a reduction by one fifth (c. -21% y/y)

Production shut-downs at major western OEMs from mid March to the beginning of May, with slow start in May

All Stabilus plants have been in operation (though, at reduced capacity in March 2020) and continue to be up and running, with the exception of New Zealand (headcount < 10) due to a government order in NZ

Chinese plant is in a ramp-up phase since the end of March 2020, current capacity utilization above 90% for Powerise and above 70% for gas springs; no reduction in customer demand at our Korean plan

Financial impact of the expected deep recession (following the coronavirus pandemic) on the Stabilus FY20 results can not be reliably quantified at this moment in time

Top priorities: ensuring safety of our employees and business continuity (keeping the production running) as far as possible

Pandemic plan activated: strict hygiene rules, social distancing, shift crew mixing stopped, home office enabled et al.

Cost flexibilization (EBIT recovery) program intensified

Aligning/adjusting our production capacity to customer demand by utilizing short-time work scheme, plant shut-downs for several days, selected layoffs et al.

State of the balance sheet: stable net leverage ratio of 1.1x EBITDA, c. €120m cash as of March 2020

Diligent capex phasing started

4

Agenda

1.

2. Financial results

3.

4.

5.

5

Q2 FY2020 financial results

Revenue

Adj. EBIT

Profit

Adj. FCF

Net leverage ratio

Outlook

Revenue at €221.0m (vs. €239.1m in Q2 FY19), - 7.6% y/y

Acquisition effect: + 1.9% y/y, currency translation effect: 0.0% y/y, organic growth: - 9.5% y/y

Adj. EBIT at €31.1m (vs. €35.7m in Q2 FY19), - 12.9% y/y

Adj. EBIT margin at 14.1% (vs. 14.9% in Q2 FY19)

Profit at €18.1m in Q2 FY20 (vs. €20.4m in Q2 FY19)

Profit margin at 8.2% (vs. 8.5% in Q2 FY19)

Adj. FCF (i.e. FCF before acquisitions) = FCF adjusted by payments for acquisitions in Q2 FY20 of €1.1m Adj. FCF at €13.0m (vs. €6.6m in Q2 FY19) and FCF at €11.9m (vs. €6.6m in Q2 FY19)

Net leverage ratio at 1.1x (vs. 1.1x as of end Q2 FY19 and 1.0x as of end FY19)

Net financial debt at €205.1m (vs. €205.5 as of end Q2 FY19 and €189.1m as of end FY19), after €27.2m dividend payment in February 2020

On March 17, 2020, the FY2020 revenue and adj. EBIT guidance from November 2019 was withdrawn A new forecast can only be given at a later point in time

6

Q2 FY2020 - Key figures
Revenue (€m)			Adj. EBIT (€m)
y-o-y organically			% margin	14.1%
(7.6)%		(9.5)%	14.9%
239.1	221.0			(12.9)%
		35.7	31.1
APAC
			APAC
AMERICAS			AMERICAS
EMEA			EMEA
Q2 FY19	Q2 FY20		Q2 FY19	Q2 FY20

Profit (€m)		Adj. FCF (€m)

% margin

8.5%	8.2%
		(11.3)%
20.4	18.1

% revenue

2.8%	5.9%
			97.0%
		13.0
6.6		€2.5m y/y
			IFRS 16 impact

Q2 FY19

Q2 FY20

Q2 FY19

Q2 FY20

7

H1 FY2020 - Key figures

Revenue (€m)		Adj. EBIT (€m)

y-o-y organically		% margin	13.5%
(2.5)%	(5.4)%	14.3%
464.0	452.3		(8.0)%
66.4	61.1
APAC
		APAC
AMERICAS		AMERICAS
EMEA		EMEA
H1 FY19	H1 FY20	H1 FY19	H1 FY20

Profit (€m)		Adj. FCF (€m)

% margin

8.2%	7.6%
		(9.4)%
38.1	34.5

% revenue

4.1%4.6%

	9.5%
19.0	20.8

€4.9m y/y IFRS 16 impact

H1 FY19

H1 FY20

H1 FY19

H1 FY20

8

Agenda

1.

2.

3. Results by operating segment

4.

5.

9

Q2 FY2020 - EMEA

	Revenue (€m)			Comments
		y-o-y organically			Light vehicle production in Europe, Middle East and Africa in
		(6.0)%	(9.2)%

126.0	Q2 FY20 at 5.0m units, i.e. - 19.2% vs. Q2 FY19
118.4

IND	62.9	63.0
APR	24.7	22.1
AGS
38.4
33.3

EMEA's Q2 revenue down by €7.6m or 6.0% y/y, despite positive acquisition effect (+3.5% y/y); currency translation effect at - 0.3% y/y at organic growth at - 9.2% y/y

Q2 FY19Q2 FY20

Adj. EBIT (€m)

% margin	13.1%
14.8%

	(17.1)%
18.7	15.5

Q2 FY19

Q2 FY20

EMEA's Automotive Gas Spring (- 13.3% y/y organically) and Automotive Powerise (- 9.4% y/y organically) revenue in Q2 FY20 impacted by weaker automotive markets, as consequence of COVID-19 pandemic

Industrial revenue grew by 0.2% y/y, up to €63.0m (vs. 62.9m in Q2 FY19) and up to 53% share of EMEA's sales (from a share of 50% in Q2 FY19); organically the revenue decreased by 6.7% y/y

Adj. EBIT margin decreased by 1.7pp to 13.1% due to limited short-term cost flexibility

10

Q2 FY2020 - AMERICAS

Revenue (€m)				Comments
		y-o-y organically				Light vehicle production in Americas in Q2 FY20 at 4.5m units,
		(8.6)%	(9.4)%
90.5			82.7			i.e. - 11.3% vs. Q2 FY19
		IND
28.1			27.8			Americas' revenue down by €7.8m or 8.6% y/y; organically
		APR
32.0			29.1			revenue was 9.4% lower than in Q2 of the previous fiscal year
		AGS
		30.4			25.8
				Q2 FY19	Q2 FY20			Organically, automotive Gas Spring revenue declined by 15.6%
					y/y (product mix impact) and Automotive Powerise revenue by
Adj. EBIT (€m)				7.8% y/y

% margin
17.1%	19.0%
					1.3%
15.5	15.7

Q2 FY19

Q2 FY20

Industrial revenue down by €0.3m or 1.1% y/y, organically

• 4.2% y/y: growth in IAM was offset by lower revenues in transportation (bus, truck, rail, aerospace), agriculture and construction machinery, less business with distributors

Americas' adj. EBIT margin improved from 17.1% in Q2 FY19 to 19.0% in Q2 FY20 due to cost and sourcing management

11

Q2 FY2020 - APAC

Revenue (€m)						Comments
		y-o-y organically
								(11.5)%	(10.7)%		Light vehicle production in Asia-Pacific in Q2 FY20 at 8.2m
					22.6	20.0				units, i.e. - 21.0% vs. Q2 FY19
					3.9
		IND	3.9
		3.5				APAC's revenue decreased by €2.6m or 11.5% y/y, suffering
		APR				3.5
		AGS		15.2	12.5				from customer shutdowns
												Organically, automotive Gas Spring revenue in Q2 FY20
					Q2 FY19		Q2 FY20
												declined by 17.2% y/y

Adj. EBIT (€m)

% margin

6.6%

(0.5)%

1.5

(0.1)

Automotive Powerise and Industrial revenues in Q2 FY20 were on the prior year's Q2 level

Substantially lower earnings in Q2 FY20 as a consequence of limited cost variability: y-o-y, adj. EBIT decreased by €1.6m in Q2 FY20

Q2 FY19

Q2 FY20

12

Q2 FY2020 - Revenue by business unit

Revenue (€m)

	y-o-y organically				(7.6)%
								(9.5)%
						239.1			221.0
		IND			94.9			94.7	(5.7)%
		APR			60.1			54.7	(7.8)%
		AGS
				84.1			71.6	(15.0)%
						Q2 FY19	Q2 FY20
				Industrial	Industrial
				40%					43%
							Automotive		Automotive
						60%			57%

Comments

Industrial revenue in Q2 FY20 was roughly on the level of prior year's Q2, i.e. €94.7m in Q2 FY20 vs. €94.9m in Q2 FY19; organically, the revenue declined by 5.7% y/y; organic growth in the segments independent aftermarket, commercial furniture, construction technology (i.e. applications in roof windows, doors, waste containers etc.) as well as e-commerce was offset by weaker business with distributors, lower revenues in the segments transportation (bus, truck, rail, aerospace), agriculture and construction machinery

Share of industrial revenue increased from 40% of group's total revenue in Q2 FY19 to 43% in Q2 FY20, i.e. from 38% in H1 FY19 to 41% in H1 FY20

Global light vehicle production in Q2 FY20 at 17.6m units, i.e. - 23.0% vs. Q2 FY19

Automotive Gas Spring revenue in Q2 FY20 decreased by 15.0% y/y organically

Automotive Powerise revenue in Q2 FY20 declined by 7.8% y/y organically

13

Agenda

1.

2.

3.

4. Outlook

5.

14

Outlook

Guidance				Comments
	FY2019	FY2020		Guidance from November 2019 is no longer realistic. In light of
	Actual	Guidance
				the dynamics and ongoing uncertainties of the global
				developments in connection with COVID-19, a new forecast of
Revenue	€951.3m	TBD at a later point in time		revenue and adj. EBIT margin can only be given at a later
				point in time.
				As of April 27, 2020, global light vehicle production (LVP) in
		TBD at a later point in time		FY2020 (Oct-Sept) is expected to be c. 21% below the prior
Adj. EBIT margin	15.0%		year's level (i.e. c. 71m in FY20 vs. c. 90m in FY19). The return
				to the annual production level of c. 90m is expected for
				FY2024. (Source: leading forecast institutes, IHS Markit et al.)
				We continue to pursue our long-term strategy STAR 2025
				focusing on sustainable, profitable growth, globalization,
				excellence, innovation as well as team spirit (One Stabilus).The
				currently significantly lower forecasts for global GDP and LVP
				impact our expectations for group's mid-term growth. Based on
				these assumptions, organic revenue CAGR 2019-25 of at least
				6% appears to be uncertain. Stabilus will update its forecast at
				a later point in time.

15

Agenda

1.

2.

3.

4.

5. Appendix

16

Revenue overview (3M ended March 31, 2020)

Revenue (€m)

	Q2 FY2019	Q2 FY2020	Change	% change	Acquisition effect	Currency effect	Organic growth
	Actual	Actual
Automotive Gas Spring	38.4	33.3	(5.1)	(13.3)%	-	0.0%	(13.3)%
Automotive Powerise	24.7	22.1	(2.6)	(10.5)%	-	(1.1)%	(9.4)%
Industrial	62.9	63.0	0.1	0.2%	7.0%	(0.1)%	(6.7)%
EMEA	126.0	118.4	(7.6)	(6.0)%	3.5%	(0.3)%	(9.2)%
Automotive Gas Spring	30.4	25.8	(4.6)	(15.1)%	-	0.5%	(15.6)%
Automotive Powerise	32.0	29.1	(2.9)	(9.1)%	-	(1.3)%	(7.8)%
Industrial	28.1	27.8	(0.3)	(1.1)%	0.8%	2.3%	(4.2)%
AMERICAS	90.5	82.7	(7.8)	(8.6)%	0.3%	0.5%	(9.4)%
Automotive Gas Spring	15.2	12.5	(2.7)	(17.8)%	-	(0.6)%	(17.2)%
Automotive Powerise	3.5	3.5	-	0.0%	-	(1.5)%	1.5%
Industrial	3.9	3.9	-	0.0%	-	(1.2)%	1.2%
APAC	22.6	20.0	(2.6)	(11.5)%	-	(0.8)%	(10.7)%
Total Automotive Gas Spring (AGS)	84.1	71.6	(12.5)	(14.9)%	-	0.1%	(15.0)%
Total Automotive Powerise (APR)	60.1	54.7	(5.4)	(9.0)%	-	(1.2)%	(7.8)%
Total Industrial (IND)	94.9	94.7	(0.2)	(0.2)%	4.9%	0.6%	(5.7)%
Total	239.1	221.0	(18.1)	(7.6)%	1.9%	0.0%	(9.5)%

17

Revenue overview (H1 ended March 31, 2020)

Revenue (€m)

	H1 FY2019	H1 FY2020	Change	% change	Acquisition effect	Currency effect	Organic growth
	Actual	Actual
Automotive Gas Spring	73.8	65.5	(8.3)	(11.2)%	-	0.0%	(11.2)%
Automotive Powerise	49.3	45.9	(3.4)	(6.9)%	-	(1.7)%	(5.2)%
Industrial	115.4	117.1	1.7	1.5%	8.5%	(0.1)%	(6.9)%
EMEA	238.5	228.6	(9.9)	(4.2)%	4.1%	(0.4)%	(7.9)%
Automotive Gas Spring	58.4	51.7	(6.7)	(11.5)%	-	1.9%	(13.4)%
Automotive Powerise	64.5	62.1	(2.4)	(3.7)%	-	2.3%	(6.0)%
Industrial	52.9	59.3	6.4	12.1%	0.9%	3.1%	8.1%
AMERICAS	175.8	173.0	(2.8)	(1.6)%	0.3%	2.4%	(4.3)%
Automotive Gas Spring	33.3	32.3	(1.0)	(3.0)%	-	0.5%	(3.5)%
Automotive Powerise	8.4	10.3	1.9	22.6%	-	0.2%	22.4%
Industrial	8.0	8.1	0.1	1.3%	-	(0.1)%	1.4%
APAC	49.6	50.7	1.1	2.2%	-	0.3%	1.9%
Total Automotive Gas Spring (AGS)	165.5	149.5	(16.0)	(9.7)%	-	0.8%	(10.5)%
Total Automotive Powerise (APR)	122.1	118.3	(3.8)	(3.1)%	-	0.6%	(3.7)%
Total Industrial (IND)	176.4	184.5	8.1	4.6%	5.9%	0.8%	(2.1)%
Total	464.0	452.3	(11.7)	(2.5)%	2.2%	0.7%	(5.4)%

18

P&L overview (3M ended March 30, 2020)

P&L (€m)							Comments
	Q2 FY2019		Q2 FY2020	Change	% change		IFRS 16 impact: Recognition of all leases in the balance sheet
	Actual		Actual
Revenue	239.1		221.0	(18.1)	(7.6)%		leads to depreciation (instead of leasing expenses) in the same
		functional costs and in similar magnitude, i.e. there is no
Cost of sales	(169.0)		(156.5)	12.5	(7.4)%
		significant impact from IFRS 16 on the functional costs; interest
Gross Profit	70.1		64.5	(5.6)	(8.0)%
		expense from leases amounted to €0.3m in Q2 FY20 ( =
% margin	29.3%		29.2%
				positive effect on Q2 FY20's EBIT)
R&D expenses	(9.8)		(10.9)	(1.1)	11.2%
Selling expenses	(21.0)		(22.0)	(1.0)	4.8%
Administrative expenses	(8.9)		(10.0)	(1.1)	12.4%
Other income/expenses	0.9		4.8	3.9	>100.0%
EBIT	31.3		26.5	(4.8)	(15.3)%
% margin	13.1%		12.0%
Adjustments	4.4		4.6	0.2	4.5%
Adj. EBIT	35.7		31.1	(4.6)	(12.9)%
% margin	14.9%		14.1%
PPA adjustments (2010 PPA)	2.3		1.7
PPA adjustments (2016 PPA)	2.1		2.1
PPA adjustments (2019 PPA)	-		0.8
Advisory costs (M&A)	-		-
Total adjustments	4.4		4.6

19

P&L overview (H1 ended March 30, 2020)

P&L (€m)							Comments
	H1 FY2019		H1 FY2020	Change	% change		Capitalized R&D expenses in H1 FY20 at €8.3m (vs. €5.9m in
	Actual		Actual
Revenue	464.0		452.3	(11.7)	(2.5)%		H1 FY19), due to expansion of Powerise product family
Cost of sales	(330.3)		(321.1)	9.2	(2.8)%		Increase in selling expenses results from acquired entities
Gross Profit	133.8		131.2	(2.6)	(1.9)%
							General Aerospace, Clevers and Piston which operate in
% margin	28.8%		29.0%
				industrial business with higher selling expenses ratio as well as
R&D expenses	(19.6)		(21.4)	(1.8)	9.2%
		comparative payroll inflation
Selling expenses	(41.3)		(44.0)	(2.7)	6.5%
Administrative expenses	(18.0)		(18.4)	(0.4)	2.2%		IFRS 16 impact: Recognition of all leases in the balance sheet
Other income/expenses	2.4		4.5	2.1	87.5%
		leads to depreciation (instead of leasing expenses) in the same
EBIT	57.1		51.9	(5.2)	(9.1)%
		functional costs and in similar magnitude, i.e. there is no
% margin	12.3%		11.5%
				significant impact from IFRS 16 on the functional costs; interest
Adjustments	9.3		9.2	(0.1)	(1.1)%
		expense from leases amounted to €0.7m in H1 FY20 ( =
Adj. EBIT	66.4		61.1	(5.3)	(8.0)%
		positive effect on H1 FY20's EBIT)
% margin	14.3%		13.5%
PPA adjustments (2010 PPA)	4.6		3.5
PPA adjustments (2016 PPA)	4.2		4.2
PPA adjustments (2019 PPA)	-		1.5
Advisory costs (M&A)	0.5		-
Total adjustments	9.3		9.2

20

Balance sheet overview

Balance sheet (€m)						Comments
	Sept 2019	March 2020	Change	% change		First time adoption of the IFRS 16 in FY2020 (from Oct 1, 2019
	Actual	Actual
Property, plant and equipm.	199.9	232.4	32.5	16.3%		on, recognition of all leases in the balance sheet) led to an
	increase of PPE and other liabilities by €43.7m; as of March
Goodwill	214.8	213.3	(1.5)	(0.7)%
	2020, change in PPE amounts to a lower amount of €32.5m,
Other intangible assets	276.2	267.2	(9.0)	(3.3)%
	primarily due to scheduled depreciation; change in other
Inventories	100.3	104.7	4.4	4.4%
	liabilities amounts to €32.9m (March 20 vs. Sept 19)
Trade receivables	130.3	114.4	(15.9)	(12.2)%
Other assets	38.7	46.9	8.2	21.2%		Decrease in other intangible assets by €9.0m comprises
Cash	139.0	122.7	(16.3)	(11.7)%		scheduled amortization of €16.6m, partially offset by capitalized
Total assets	1,099.2	1,101.6	2.4	0.2%		development costs
Equity incl. minorities	499.6	493.1	(6.5)	(1.3)%		Trade receivables and payables decreased due to lower
Debt (incl. accrued interest)	311.6	314.4	2.8	0.9%		business activity
Pension plans	59.9	50.7	(9.2)	(15.4)%		Lower cash (- €16.3m vs. end of FY19) essentially due to
Deferred tax liabilities	55.9	54.9	(1.0)	(1.8)%
	dividend payment of €27.2m in Feb 2020, partially offset by
Trade accounts payable	91.0	74.4	(16.6)	(18.2)%
	lower capex (see following pages for further details)
Other liabilities	81.2	114.1	32.9	40.5%
Total equity and liabilities	1,099.2	1,101.6	2.4	0.2%		Pension liability decreased by €9.2m as a consequence of
						higher discount rate (0.93% as of Sept 2019 vs. 1.88% as of
Net leverage ratio	1.0x	1.1x				March 2020)

Net leverage ratio as of March 2020 stable at 1.1x EBITDA (vs. 1.0x as of Sept 2019 and 1.1x as of March 2019)

21

Cash flow overview (3M ended March 31, 2020)

Cash Flow Statement (€m)						Comments
	Q2 FY2019	Q2 FY2020	Change	% change		Capex in Q2 FY20 at €10.9m (vs. €17.3m in Q2 FY19), -37%
	Actual	Actual
Cash flow from operating activities	23.5	23.8	0.3	1.3%		y/y
Cash flow from investing activities	(16.9)	(11.9)	5.0	(29.6)%
Cash flow from financing activities	(25.9)	(29.4)	(3.5)	13.5%		Cash outflow for financing activities in Q2 FY20 includes
Net increase / (decrease) in cash	(19.3)	(17.5)	1.8	(9.3)%		€27.2m dividend payments, €20.0m redemption of senior
Effect of movements in exchange rates	1.6	(2.1)	(3.7)	<(100.0)%		facilities (which was performed before the coronavirus
Cash as of beginning of the period	154.3	142.3	(12.0)	(7.8)%		outbreak) and €21.6m receipt under senior facility agreement,
Cash as of end of the period	136.5	122.7	(13.8)	(10.1)%
	i.e. utilization of the revolving credit facility (as a precautionary
						measure after coronavirus outbreak)

Adj. FCF (€m)

	Q2 FY2019	Q2 FY2020	Change	% change
	Actual	Actual
Cash flow from operating activities	23.5	23.8	0.3	1.3%
Cash flow from investing activities	(16.9)	(11.9)	5.0	(29.6)%
Free cash flow	6.6	11.9	5.3	80.3%
Adjustments	-	1.1	1.1	n/a
Adj. FCF	6.6	13.0	6.4	97.0%

IFRS 16 impact in Q2 FY20: no impact on net cash flow, positive effect of €2.5m on cash flow from operating activities (and consequently free cash flow) and negative effect on cash flow from financing activities in the same amount

Adjustment to FCF in Q2 FY20 amounting to €1.1m relates to acquisition of assets and liabilities within business combination, net of cash acquired

22

Cash flow overview (H1 ended March 31, 2020)

Cash Flow Statement (€m)						Comments
	H1 FY2019	H1 FY2020	Change	% change		Capex in H1 FY20 at €23.2m (vs. €29.8m in H1 FY19), -22.1%
	Actual	Actual
Cash flow from operating activities	48.1	43.6	(4.5)	(9.4)%		y/y
Cash flow from investing activities	(29.1)	(23.9)	5.2	(17.9)%
Cash flow from financing activities	(27.2)	(33.0)	(5.8)	21.3%		Cash outflow for financing activities in H1 FY20 includes
Net increase / (decrease) in cash	(8.2)	(13.3)	(5.1)	62.2%		€27.2m dividend payments, €20.0m redemption of senior
Effect of movements in exchange rates	1.7	(3.1)	(4.8)	<(100.0)%		facilities (which was performed before the coronavirus
Cash as of beginning of the period	143.0	139.0	(4.0)	(2.8)%		outbreak) and €21.6m receipt under senior facility agreement,
Cash as of end of the period	136.5	122.7	(13.8)	(10.1)%
	i.e. utilization of the revolving credit facility (as a precautionary
						measure after coronavirus outbreak)

Adj. FCF (€m)

	H1 FY2019	H1 FY2020	Change	% change
	Actual	Actual
Cash flow from operating activities	48.1	43.6	(4.5)	(9.4)%
Cash flow from investing activities	(29.1)	(23.9)	5.2	(17.9)%
Free cash flow	19.0	19.7	0.7	3.7%
Adjustments	-	1.1	1.1	n/a
Adj. FCF	19.0	20.8	1.8	9.5%

IFRS 16 impact in H1 FY20: no impact on net cash flow, positive effect of €4.9m (€2.4m in Q1 FY20 and €2.5m in Q2 FY20) on cash flow from operating activities (and consequently free cash flow) and negative effect on cash flow from financing activities in the same amount

Adjustment to FCF in H1 FY20 amounting to €1.1m relates to acquisition of assets and liabilities within business combination, net of cash acquired

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Currency exchange rates overview (H1 ended March 31, 2020)

Closing and average currency exchange rates

1 EURO in	ISO code	Closing rate	Closing rate	Average rate	Average rate	Average rate
March 2019	March 2020	H1 FY2019	H1 FY2020	% change
Australian dollar	AUD	1.5821	1.7967	1.5919	1.6490	3.6%
Argentine peso	ARS	48.6476	70.5479	43.3336	66.7026	53.9%
Brazilian real	BRL	4.3865	5.7001	4.3123	4.7357	9.8%
Chinese yuan (renminbi)	CNY	7.5397	7.7784	7.7769	7.7467	(0.4)%
South Korean won	KRW	1,276.4600	1,341.0300	1,282.4259	1,308.9539	2.1%
Mexican peso	MXP	21.6910	26.1772	22.2169	21.6844	(2.4)%
Romanian leu	RON	4.7608	4.8283	4.6983	4.7820	1.8%
Turkish lira	TRY	6.3446	7.2063	6.1947	6.5773	6.2%
United States dollar	USD	1.1235	1.0956	1.1384	1.1048	(3.0)%

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