Stabilus S A : Q3 statement / Q3 financial report 2020/2021

Q U A R T E R L Y S T A T E M E N T Q 3 F Y 2 0 2 1

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A INTERIM MANAGEMENT STATEMENT

B SUPPLEMENTARY FINANCIAL INFORMATION

C ADDITIONAL INFORMATION

D INFORMATION RESOURCES

KEY FIGURES

	Three months ended June 30,				Nine months ended June 30,
IN € MILLIONS	2021	2020	CHANGE	% CHANGE	IN € MILLIONS	2021	2020
Revenue	228.7	147.0	81.7	55.6%	Revenue	708.1	599.4
EBIT	27.4	(21.8)	49.2	> 100.0%	EBIT	90.8	30.1
Adjusted EBIT	30.9	5.7	25.2	> 100.0%	Adjusted EBIT	101.1	66.8
Profit for the period	15.9	(16.4)	32.3	> 100.0%	Profit for the period	56.2	18.1
					Capital expenditure	(29.4)	(37.7)
EBIT as % of revenue	12.0%	(14.8)%			Free cash flow (FCF)	81.0	13.7
Adjusted EBIT as % of revenue	13.5%	3.9%			Adjusted FCF	81.0	14.8
Profit in % of revenue	7.0%	(11.2)%
					EBIT as % of revenue	12.8%	5.0%
					Adjusted EBIT as % of revenue	14.3%	11.1%
					Profit in % of revenue	7.9%	3.0%
					Capital expenditure as % of revenue	4.2%	6.3%
					FCF in % of revenue	11.4%	2.3%
					Adjusted FCF in % of revenue	11.4%	2.5%
					Net leverage ratio	0.6x	1.4x

CHANGE % CHANGE

1. 18.1%

1. > 100.0%

1. 51.3%

1. > 100.0%

8.3(22.0)%

67.3> 100.0%

66.2> 100.0%

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CONTENTS

A

B

INTERIM MANAGEMENT STATEMENT	3
RESULTS OF OPERATIONS	4
DEVELOPMENT OF OPERATING SEGMENTS	10
FINANCIAL POSITION	13
LIQUIDITY	14
RISKS AND OPPORTUNITIES	17
SUBSEQUENT EVENTS	17
OUTLOOK	17

SUPPLEMENTARY FINANCIAL INFORMATION	18
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME	18
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	19
CONSOLIDATED STATEMENT OF CASH FLOWS	20
SEGMENT REPORTING	21

C

D

ADDITIONAL INFORMATION	22
FINANCIAL CALENDAR	22
DISCLAIMER	22

INFORMATION RESOURCES

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S TA B I L U S Q U A R T E R LY S T A T E M E N T Q 3 F Y 2 0 2 1

1

A INTERIM MANAGEMENT STATEMENT

B SUPPLEMENTARY FINANCIAL INFORMATION

C ADDITIONAL INFORMATION

D INFORMATION RESOURCES

HIGHLIGHTS 9M FY2021

Revenue growth due to the market recovery against the backdrop of the COVID-19 pandemic

• Total Group´s revenue increased by €108.7 million or 18.1% to €708.1 million (organic growth rate + 22.1%)
• Revenue in APAC up by 36.6% (organic growth rate + 38.1%), ­ EMEA up by 16.8% (organic growth rate + 17.9%) and Americas ­ up by 13.4% (organic growth rate + 22.3%)
• Revenue in Automotive Powerise® up by 33.7% (organic growth ­ rate + 38.6%), Automotive Gas Spring business up by 19.7% ­ (organic growth rate + 23.3%), and Industrial business up by 8.2% (organic growth rate + 11.9%)

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

IN %

15

	51
	51%	EMEA
34	34%	AMERICAS
	15%	APAC

Key events

• Based on the improved market environment, Stabilus outlook refined
• • Revenue of between €930 million and €950 million for fiscal year 2021
  • Adjusted EBIT margin of between 14% and 15% for fiscal year 2021
• Stabilus issues its first promissory note loan (Schuldschein­darlehen) in the total amount of €95.0 million
• Stabilus is planning to change its legal form into an Societas Europaea (SE) and subsequently to transfer its registered office from Luxembourg to Germany

Revenue by business unit

IN %

28

40

39

40% Industrial business

32% Automotive Gas Spring business

28% Automotive Powerise® business

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S TA B I L U S Q U A R T E R LY S TAT E M E N T Q 3 F Y 2 0 2 1

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A INTERIM MANAGEMENT STATEMENT

B SUPPLEMENTARY FINANCIAL INFORMATION

C ADDITIONAL INFORMATION

D INFORMATION RESOURCES

INTERIM MANAGEMENT STATEMENT

for the three and nine months ended June 30, 2021

Alternative Performance Measures (APMs) in the interim

­management statement for the first nine months of ­fiscal ­ year 2021

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 acquisitions, 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 nine months of fiscal year 2021

The Stabilus fiscal year 2021 (beginning on October 1, 2020) is still ­affected by uncertainties of the COVID-19 pandemic. However in the third quarter­ of fiscal year 2021, the COVID-19 cases decreased in several countries­ as a consequence of increasing vaccination rates. Stabilus implemented testing and vaccination offers at its sites to support the vaccination of Stabilus employees.

Due to the strong market recovery and the Group's diversified product portfolio, the Stabilus Group's total revenue increased organically by 22.1% in the first nine months of the fiscal year 2021. The positive global development is reflected in the positive development of the markets in which we operate. According to the forecast of IHS Markit from July 2021 the global light-vehicle production is expected to grow in fiscal year 2021 (October 2020 - September 2021) by c. 12%. The Automotive Powerise® business increased organically by 38.6% and the Automotive Gas Spring business increased organically by 23.3%. However, our Industrial business recovered more slowly from the COVID-19 pandemic and shows a mixed picture. The revenue in the Industrial business increased organically by 11.9% (we refer to the development of operating segments on page 10).

At the same time, the strong recovery of the global economy over the last months is leading to material price inflation. The development of material prices in the global supply chain, e.g. steel and plastic, influence our cost base. The shortage of electronic components (semiconductors) impact the production of our automotive customers and our planning stability.

Based on the improved market environment, Stabilus outlook was specified to the upper end of the forecast range raised in April 2021. The full year guidance confirmed revenue of between €930 million and €950 million (before: between €900 million and €950 million) and with an adjusted

EBIT margin of between 14% and 15% (before: between 13% and 15%). This is reflecting a continued stabilizing global economy and recovery in the global automotive production without disruptions within the global supply chain and shortages of electronic components (semiconductors).

On March 4, 2021, Stabilus issued its first promissory loan note (Schuld- scheindarlehen) with a total volume of €95.0 million, via its subsidiary Stabilus GmbH. The tranches of the promissory loan note with maturities of five and seven years bear variable interest rates. The promissory note loan is part of our long-term financing strategy and grants us flexibility in the implementation of our growth plans. The financial stability of the Stabilus Group is comfortable. Our net leverage ratio is now at 0.6x compared to 1.2x at September 30, 2020 (we refer to net leverage ratio on page 16).

On March 8, 2021, the Stabilus S. A. announced its plan to change the legal form from Société Anonyme (S. A.) into an Societas Europaea (SE) and the subsequent transfer of the registered office from Luxembourg to Germany. The change of the legal form as well as the transfer of the registered office of the Company require the approval of the general ­meeting of the Company.

The intended change of the legal form into an European Company is due to the increasing international orientation of Stabilus, which has gained in importance following the acquisitions of companies in recent years. The relocation will simplify the Group's structures and thus reduce complexity, which will lead to cost savings and efficiency gains. At the same time, the transfer of the registered office means that in the future both the Group headquarters and the stock exchange listing of Stabilus will be located in Germany. This process is expected to be finalized in the first quarter of the calendar year 2022. Further information on the planned measures can be found at: www.stabilus.com/investors/se.

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