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Stabilus SE

Quarterly Report Aug 2, 2021

6214_10-q_2021-08-02_339fc9a8-9bdf-43ff-85a1-9d7d4cc43c90.pdf

Quarterly Report

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QUARTERLY STATEMENT Q3 FY2021

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

KEY FIGURES

Three months ended June 30, Nine months ended June 30,
IN € MILLIONS 2021 2020 CHANGE % CHANGE IN € MILLIONS 2021 2020 CHANGE % CHANGE
Revenue 228.7 147.0 81.7 55.6% Revenue 708.1 599.4 108.7 18.1%
EBIT 27.4 (21.8) 49.2 >100.0% EBIT 90.8 30.1 60.7 >100.0%
Adjusted EBIT 30.9 5.7 25.2 >100.0% Adjusted EBIT 101.1 66.8 34.3 51.3%
Profit for the period 15.9 (16.4) 32.3 >100.0% Profit for the period 56.2 18.1 38.1 >100.0%
Capital expenditure (29.4) (37.7) 8.3 (22.0)%
EBIT as % of revenue 12.0% (14.8)% Free cash flow (FCF) 81.0 13.7 67.3 >100.0%
Adjusted EBIT as % of revenue 13.5% 3.9% Adjusted FCF 81.0 14.8 66.2 >100.0%
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%

CONTENTS

A
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
C ADDITIONAL INFORMATION 22
FINANCIAL CALENDAR 22
DISCLAIMER 22

D INFORMATION RESOURCES 23

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

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%)

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

15

34

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 (Schuldscheindarlehen) 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.

RESULTS OF OPERATIONS

THIRD QUARTER AND FIRST NINE MONTHS OF FISCAL YEAR 2021

The tables below set out Stabilus Group's consolidated income statement for the third quarter and the first nine months of the fiscal years 2021 and 2020:

Income statement T_001

IN € MILLIONS 2021 2020 Change % change
Revenue 228.7 147.0 81.7 55.6%
Cost of sales (161.9) (112.6) (49.3) 43.8%
Gross profit 66.8 34.4 32.4 94.2%
Research and development expenses (10.7) (8.9) (1.8) 20.2%
Selling expenses (20.1) (42.7) 22.6 (52.9)%
Administrative expenses (9.6) (7.6) (2.0) 26.3%
Other income 1.7 3.3 (1.6) (48.5)%
Other expenses (0.8) (0.3) (0.5) >100.0%
Profit from operating activities (EBIT) 27.4 (21.8) 49.2 >100.0%
Finance income 0.2 0.1 0.1 100.0%
Finance costs (4.5) (2.6) (1.9) 73.1%
Profit / (loss) before income tax 23.1 (24.3) 47.4 >100.0%
Income tax income / (expense) (7.1) 7.9 (15.0) >100.0%
Profit / (loss) for the period 15.9 (16.4) 32.3 >100.0%

Three months ended June 30,

RESULTS OF OPERATIONS

Nine months ended June 30,
IN € MILLIONS 2021 2020 Change % change
Revenue 708.1 599.4 108.7 18.1%
Cost of sales (496.5) (433.7) (62.8) 14.5%
Gross profit 211.6 165.7 45.9 27.7%
Research and development expenses (31.6) (30.4) (1.2) 3.9%
Selling expenses (61.2) (86.7) 25.5 (29.4)%
Administrative expenses (30.5) (26.0) (4.5) 17.3%
Other income 4.8 8.1 (3.3) (40.7)%
Other expenses (2.3) (0.6) (1.7) >100.0%
Profit from operating activities (EBIT) 90.8 30.1 60.7 >100.0%
Finance income 0.6 5.1 (4.5) (88.2)%
Finance costs (12.1) (8.4) (3.7) 44.0%
Profit / (loss) before income tax 79.3 26.8 52.5 >100.0%
Income tax income / (expense) (23.1) (8.7) (14.4) >100.0%
Profit / (loss) for the period 56.2 18.1 38.1 >100.0%

Revenue

The Group's total revenue developed as follows:

Revenue by region and business unit T_003

Three months ended June 30,
IN € MILLIONS 2021 2020 Change % change % currency effect % organic growth
EMEA
Automotive Gas Spring 30.5 16.6 13.9 83.7% 0.0% 83.7%
Automotive Powerise® 21.6 13.5 8.1 60.0% (2.7)% 62.7%
Industrial 65.2 48.0 17.2 35.8% (1.3)% 37.1%
Total EMEA1) 117.3 78.1 39.2 50.2% (1.3%) 51.5%
Americas
Automotive Gas Spring 21.1 10.2 10.9 106.9% (3.2)% 110.1%
Automotive Powerise® 25.3 8.4 16.9 201.2% 38.6% 162.6%
Industrial 28.9 23.7 5.2 21.9% (10.2)% 32.1%
Total Americas1) 75.4 42.3 33.1 78.3% 1.1% 77.2%
APAC
Automotive Gas Spring 19.4 16.0 3.4 21.3% (0.8)% 22.1%
Automotive Powerise® 11.7 6.8 4.9 72.1% (0.2)% 72.3%
Industrial 5.0 3.9 1.1 28.2% 0.9% 27.3%
Total APAC1) 36.0 26.7 9.3 34.8% (0.4)% 35.2%
Stabilus Group
Total Automotive Gas Spring 70.9 42.7 28.2 66.0% (1.1)% 67.1%
Total Automotive Powerise® 58.6 28.7 29.9 104.2% 9.9% 94.3%
Total Industrial 99.1 75.6 23.5 31.1% (4.0)% 35.1%
Revenue1) 228.7 147.0 81.7 55.6% (0.4)% 56.0%

1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").

Total revenue of €708.1 million in the first nine months of fiscal year 2021 increased by €108.7 million or 18.1% compared to the first nine months of fiscal year 2020. The effect from exchange rate changes amounted to €23.8 million, which led to an organic growth of €132.5 million or 22.1% in the first nine months of fiscal year 2021.

RESULTS OF OPERATIONS

The increase in Group revenue in the first nine months of fiscal year 2021 occurred in all regions, EMEA (€51.5 million or 16.8%, organic growth rate 17.9%) and APAC (€28.3 million or 36.6%, organic growth rate 38.1%). Americas revenue increased by €28.9 million or 13.4%, the region is materially influenced by the weak Mexican peso and US dollar compared to the Euro. Americas organic growth rate was 22.3%.

Revenue by region and business unit T_004
Nine months ended June 30,
IN € MILLIONS 2021 2020 Change % change % currency effect % organic growth
EMEA
Automotive Gas Spring 98.1 82.1 16.0 19.5% 0.0% 19.5%
Automotive Powerise® 73.2 59.4 13.8 23.2% (2.3)% 25.5%
Industrial 186.9 165.2 21.7 13.1% (1.2)% 14.3%
Total EMEA1) 358.2 306.7 51.5 16.8% (1.1)% 17.9%
Americas
Automotive Gas Spring 70.0 61.8 8.2 13.3% (9.8)% 23.1%
Automotive Powerise® 93.4 70.5 22.9 32.5% (7.9)% 40.4%
Industrial 80.7 83.0 (2.3) (2.8)% (9.1)% 6.3%
Total Americas1) 244.2 215.3 28.9 13.4% (8.9)% 22.3%
APAC
Automotive Gas Spring 61.9 48.3 13.6 28.2% (1.8)% 30.0%
Automotive Powerise® 29.9 17.1 12.8 74.9% (1.6)% 76.5%
Industrial 14.0 12.0 2.0 16.7% (0.2)% 16.9%
Total APAC1) 105.7 77.4 28.3 36.6% (1.5)% 38.1%
Stabilus Group
Total Automotive Gas Spring 230.0 192.2 37.8 19.7% (3.6)% 23.3%
Total Automotive Powerise® 196.5 147.0 49.5 33.7% (4.9)% 38.6%
Total Industrial 281.6 260.2 21.4 8.2% (3.7)% 11.9%
Revenue1) 708.1 599.4 108.7 18.1% (4.0)% 22.1%

1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").

Cost of sales and overhead expenses

Cost of sales

Cost of sales increased from €(443.7) million in the first nine months of fiscal year 2020 by 14.5% to €(496.5) million in first nine months of fiscal year 2021. This increase is generally due to the increased business volume compared to previous year. Material price inflation over the last couple of months, e.g. steel and plastic, is having a negative impact on cost of sales. At the same time, we continue with our stringent cost saving measures, i.e. flexibilization of personnel costs tailored to the requirements of the respective market situation. The prior year includes impairment losses on other intangible assets amounting to €(1.3) million. The cost of sales increase (14.5%) is less than the revenue increase (18.1%), consequently the cost of sales as a percentage of revenue decreased by 230 basis points to 70.1% (PY: 72.4%) and the gross profit margin improved to 29.9% (PY: 27.6%).

R&D expenses

R&D expenses (net of R&D cost capitalization) increased from €(30.4) million in the first nine months of fiscal year 2020 by 3.9% to €(31.6) million in the first nine months of fiscal year 2021. The Group continues to invest in engineering activities aimed to develop new products and product applications, e.g. into the development of the Automotive Powerise® product range to open new areas of business for Stabilus. As a percentage of revenue, R&D expenses decreased by 60 basis points to 4.5% (PY: 5.1%). The capitalization of R&D expenses (less related customer contribution) decreased from €(12.4) million in the first nine months of fiscal year 2020 to €(11.2) million in the first nine months of fiscal year 2021. The Group recognized non-recurring impairment charges of €(0.6) million in the first nine months of fiscal year 2021 compared to €(0.7) million in the first nine months of fiscal year 2020.

Selling expenses

Selling expenses decreased from €(86.7) million in the first nine months of fiscal year 2020 by (29.4)% to €(61.2) million in the first nine months of fiscal year 2021. This decrease is primarily due to a non-recurring impairment loss on a customer relationship in the prior year in the aerospace business amounting to €(24.4) million. Excluding the effect from this impairment, selling expenses decreased from €(62.3) million in the first nine months of fiscal year 2020 by (1.8)% or €1.1 million to €(61.2) million in the first nine months of fiscal year 2021. Amongst other reasons, this decrease is due to a leaner cost structure, reflecting the merger of the business units Industrial / Capital Goods and Vibration & Velocity initiated in the first quarter of fiscal year 2020, lower travelling costs (€(0.9) million) as well as decreased ongoing amortization of other intangible assets (customer relationship) from the PPA 2019 (€(1.1) million). As a percentage of revenue, selling expenses decreased by 590 basis points to 8.6% (PY: 14.5%). Excluding the prior year impairment effect, selling expenses decreased by 180 basis points to 8.6% (PY: 10.4%).

Administrative expenses

Administrative expenses increased from €(26.0) million in the first nine months of fiscal year 2020 by 17.3% to €(30.5) million in the first nine months of fiscal year 2021. This increase is driven by the ongoing digital transformation and harmonization of our IT systems especially the change to the SAP-Hana database and to cloud-based solutions (+€2.8 million), as well as increased personnel-related provisions (+€2.3 million). As a percentage of revenue, administrative expenses were unchanged at 4.3% (PY: 4.3%).

Other income and expense

Other income decreased from €8.1 million in the first nine months of fiscal year 2020 by €(3.3) million to €4.8 million in the first nine months of fiscal year 2021. This decrease is due to a non-recurring effect of €2.8 million from an anticipated purchase price adjustment related to the acquisition of General Aerospace GmbH in the prior year, which was partly offset by a reimbursement related to the acquisition of SKF Group entities in 2016 amounting to €1.6 million in the current fiscal year. Furthermore, the prior year includes foreign currency translation gains from the operating business amounting to €3.5 million.

Other expenses increased from €(0.6) million in the first nine months of fiscal year 2020 by €(1.7) million to €(2.3) million in the first nine months of fiscal year 2021. This mainly comprises foreign currency translation losses from the operating business amounting to €(2.0) million, primarily occurred in Americas.

Finance income and costs

Finance income decreased from €5.1 million in the first nine months of fiscal year 2020 by €(4.5) million to €0.6 million in the first nine months of fiscal year 2021. The prior year includes net foreign exchange gains amounting to €4.7 million from the translation of intragroup loans, cash and cash equivalents as well as from other financial liabilities (lease liabilities).

Finance costs increased from €(8.4) million in the first nine months of fiscal year 2020 by €(3.7) million to €(12.1) million in the first nine months of fiscal year 2021. The increase mainly results from net foreign exchange losses amounting to €(3.0) million and from increased interest expenses on financial liabilities as described below.

Finance costs contain primarily ongoing interest expense. Interest expense in the first nine months of fiscal year 2021 of €(8.6) million (PY: €(8.0) million) especially related to the term-loan facility, of which €(3.7) million (PY: €(3.7) million) is cash interest. In addition, an amount of €(4.9) million (PY: €(4.3) million) is due to the amortization of debt issuance cost and the amortization of the adjustment of the carrying value using the effective interest rate method. Thereof €(1.5) million (PY: €(0.9) million) relates to a prepayment of the term-loan facility in March 2021, which led to a derecognition of unamortized debt issuance costs and unamortized adjustments of the carrying value.

Income tax expense

Income tax expense increased from €(8.7) million in the first nine months of fiscal year 2020 by €(14.4) million to €(23.1) million in the first nine months of fiscal year 2021, especially due to the improved operating performance compared to prior year. The effective tax rate in the first nine months of fiscal year 2021 is 29.1% (PY: 32.5%). The higher tax rate in the first nine months of fiscal year 2020 relates to withholding taxes charged on higher intra-group dividend payments mainly from Mexico, US and China.

Reconciliation of EBIT to adjusted EBIT

The following tables show a reconciliation of EBIT (earnings before interest and taxes) to adjusted EBIT for the third quarter and the first nine months of the fiscal years 2021 and 2020:

Reconciliation of EBIT to adjusted EBIT T_005

Three months ended June 30,
IN € MILLIONS 2021 2020 Change % change
Profit from operating activities (EBIT) 27.4 (21.8) 49.2 >100.0%
PPA adjustments – depreciation and amortization 3.5 4.6 (1.1) (23.9)%
PPA adjustments – impairment on intangible assets 25.7 (25.7) n/a
Purchase price adjustment (2.8) 2.8 n/a
Adjusted EBIT 30.9 5.7 25.2 >100.0%
Nine months ended June 30,
IN € MILLIONS 2021 2020 Change % change
Profit from operating activities (EBIT) 90.8 30.1 60.7 >100.0%
PPA adjustments – depreciation and amortization 10.3 13.8 (3.5) (25.4)%
PPA adjustments – impairment on intangible assets 25.7 (25.7) n/a
Purchase price adjustment (2.8) 2.8 n/a
Adjusted EBIT 101.1 66.8 34.3 51.3%

Adjusted EBIT represents EBIT, adjusted for exceptional non-recurring items (e.g. restructuring or one-time advisory costs) and depreciation / amortization of fair value adjustments from purchase price allocations (PPAs).

Adjusted EBIT is presented because we believe it helps understanding our operating performance.

The PPA adjustments for depreciation and amortization in the first nine months of fiscal year 2021 amounted to €10.3 million (PY: €13.8 million). Of that amount, €3.5 million (PY: €5.2 million) stem from the April 2010 PPA, which decreased due to the full amortization of unpatented technology, and €6.1 million (PY: €6.3 million) result from the June 2016 PPA. Furthermore, €0.7 million (PY: €2.3 million) relate to the acquisitions in fiscal year 2019, which decreased due to lower amortization as a consequence of the impairment of customer relationship (€(25.7) million) in prior year.

The prior year PPA adjustment for impairment on other intangible assets, especially customer relationship, in the first nine months of fiscal year 2020 amounted to €25.7 million, and, an adjustment amounting to €(2.8) million relates to an anticipated purchase price reduction from the acquisition of General Aerospace GmbH.

DEVELOPMENT OF OPERATING SEGMENTS

The Stabilus Group is organized and managed primarily on a regional level. The three reportable operating segments of the Group are EMEA (Europe, Middle East and Africa), Americas (North and South America) and APAC (Asia Pacific).

The tables below show the development of our operating segments for the third quarter and the first nine months of the fiscal years 2021 and 2020:

Operating segments T_006

Three months ended June 30,
IN € MILLIONS 2021 2020 Change % change
EMEA
External revenue1) 117.3 78.1 39.2 50.2%
Intersegment revenue1) 6.1 5.1 1.0 19.6%
Total revenue1) 123.4 83.2 40.2 48.3%
Adjusted EBIT 15.7 1.8 13.9 >100.0%
as % of total revenue 12.7% 2.2%
as % of external revenue 13.4% 2.3%
Americas
External revenue1) 75.4 42.3 33.1 78.3%
Intersegment revenue1) 6.2 5.0 1.2 24.0%
Total revenue1) 81.6 47.3 34.3 72.5%
Adjusted EBIT 9.7 (0.4) 10.1 >100.0%
as % of total revenue 11.9% (0.8)%
as % of external revenue 12.9% (0.9)%
APAC
External revenue1) 36.0 26.7 9.3 34.8%
Intersegment revenue1) 0.1 0.1 n/a
Total revenue1) 36.1 26.7 9.4 35.2%
Adjusted EBIT 5.5 4.3 1.2 27.9%
as % of total revenue 15.2% 16.1%
as % of external revenue 15.3% 16.1%

1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").

T_007

Nine months ended June 30,
IN € MILLIONS 2021 2020 Change % change
EMEA
External revenue1) 358.2 306.7 51.5 16.8%
Intersegment revenue1) 22.3 19.2 3.1 16.1%
Total revenue1) 380.5 325.9 54.6 16.8%
Adjusted EBIT 50.0 30.8 19.2 62.3%
as % of total revenue 13.1% 9.5%
as % of external revenue 14.0% 10.0%
Americas
External revenue1) 244.2 215.3 28.9 13.4%
Intersegment revenue1) 18.3 16.5 1.8 10.9%
Total revenue1) 262.5 231.8 30.7 13.2%
Adjusted EBIT 34.3 27.9 6.4 22.9%
as % of total revenue 13.1% 12.0%
as % of external revenue 14.0% 13.0%
APAC
External revenue1) 105.7 77.4 28.3 36.6%
Intersegment revenue1) 0.2 0.1 0.1 100.0%
Total revenue1) 105.9 77.5 28.4 36.6%
Adjusted EBIT 16.8 8.1 8.7 >100.0%
as % of total revenue 15.9% 10.5%
as % of external revenue 15.9% 10.5%

1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").

DEVELOPMENT OF OPERATING SEGMENTS

The external revenue generated by our companies located in the EMEA region increased from €306.7 million in the first nine months of fiscal year 2020 by 16.8% or €51.5 million to €358.2 million in the first nine months of fiscal year 2021. The currency translation effect amounted to €(3.4) million, resulting in an organic growth rate of 17.9%. Growth was driven by our Automotive Powerise® business which increased from €59.4 million by 23.2% or €13.8 million to €73.2 million. Organic growth rate of the Automotive Powerise® was 25.5%. Our Automotive Gas Spring business grew from €82.1 million by 19.5% or €16.0 million to €98.1 million. The organic growth of the Automotive Gas Spring business was 19.5%. The Automotive business market recovery increased against the backdrop of the COVID-19 pandemic in the prior year, which is reflected in the increasing light-vehicle production and new car registrations in EMEA. Our business also benefits from the various stimulus programs from governments to support the recovery of the economy, but the market environment is still challenging through the uncertainties in the global supply chain and shortages of electronic components (semiconductors). The Industrial business increased from €165.2 million by 13.1% or €21.7 million to €186.9 million, organically the growth rate of the Industrial business was 14.3%. The recovery of the Industrial business from the first half of fiscal year 2021 continues in the third quarter, which reflects the strong demand in our broad product portfolio with double digit growth rates in the market subsegments commercial vehicles and distributors, independent aftermarket and e-commerce. The subsegment aerospace, marine & rail is still weak in comparison to prior year. The adjusted EBIT of the EMEA segment increased by 62.3% or €19.2 million and the adjusted EBIT margin, i.e. adjusted EBIT in percent of external revenue, increased in the first nine months of fiscal year 2021 to 14.0% (PY: 10.0%).

The external revenue of our companies located in Americas increased from €215.3 million in the first nine months of fiscal year 2020 by 13.4% or €28.9 million to €244.2 million in the first nine months of fiscal year 2021. The currency translation effect amounted to €(19.3) million resulting in an organic growth rate of 22.3% and especially stems from the weak Mexican peso and US dollar. The Automotive Powerise® business increased from €70.5 million by 32.5% or €22.9 million to €93.4 million and organically 40.4%. The Automotive Gas Spring business increased from €61.8 million by 13.3% or €8.2 million to €70.0 million. The organic growth rate was 23.1%. The Automotive industry is recovering in the US, especially with a strong demand for our Powerise® products. The light-vehicle market in the region was further supported by customer discounts of various OEMs and by government grants to support the economy, but the light-vehicle market is flattening in the third quarter of fiscal year 2021 through the shortages of electronic components (semiconductors). Our Industrial business decreased from €83.0 million by (2.8)% or €(2.3) million to €80.7 million whereas organically the Industrial business increased by 6.3% or €5.3 million. The Industrial market in the region recovered slowly from the COVID-19 pandemic and is almost behind the market expectations in all sectors in which we operate. In our third quarter, especially in June, the market appreciations increased in the subsegments commercial vehicles and distributors, independent aftermarket and e-commerce. The adjusted EBIT of the segment Americas increased by 22.9% or €6.4 million, and the adjusted EBIT margin increased in the first nine months of fiscal year 2021 to 14.0% (PY: 13.0%).

DEVELOPMENT OF OPERATING SEGMENTS

The external revenue of our companies located in APAC increased from €77.4 million in the first nine months of fiscal year 2020 by 36.6% or €28.3 million to €105.7 million in the first nine months of fiscal year 2021. The currency translation effect amounted to €(1.2) million resulting in an organic growth rate of 38.1%. This strong increase was especially driven by the Automotive Gas Spring business which increased from €48.3 million by 28.2% or €13.6 million to €61.9 million, while the organic growth rate was 30.0%. The Automotive Powerise® business increased from €17.1 million by 74.9% or €12.8 million to €29.9 million, organically the growth rate was 76.5%. Especially the Chinese light-vehicle market showed a strong growth compared to the prior year, according to the information by the China Association of Automobile Manufactures (CAAM) for the period January until June 2021. The sales of passenger cars increased by 27.0% compared to the same period in 2020, but with declined sales in June 2021 (-11.1%) compared to June 2020. Industrial business increased from €12.0 million by 16.7% or €2.0 million to €14.0 million, organic growth rate was 16.9%. The adjusted EBIT of the segment APAC increased by 107.4% or €8.7 million, and the adjusted EBIT margin increased in the first nine months of fiscal year 2021 to 15.9% (PY: 10.5%).

FINANCIAL POSITION

Balance sheet T_008

IN € MILLIONS June 30, 2021 Sept 30, 2020 Change % change
Assets
Non-current assets 667.5 678.2 (10.7) (1.6)%
Current assets 511.6 405.4 106.2 26.2%
Total assets 1,179.1 1,083.6 95.5 8.8%
Equity and liabilities
Total equity 523.5 469.6 53.9 11.5%
Non-current liabilities 471.0 425.5 45.5 10.7%
Current liabilities 184.6 188.4 (3.8) (2.0)%
Total liabilities 655.6 614.0 41.6 6.8%
Total equity and liabilities 1,179.1 1,083.6 95.5 8.8%

Total assets

The Group's balance sheet total increased from €1,083.6 million as of September 30, 2020, by 8.8% or €95.5 million to €1,179.1 million as of June 30, 2021.

Non-current assets

Our non-current assets decreased from €678.2 million as of September 30, 2020, by (1.6)% or €(10.7) million to €667.5 million as of June 30, 2021. This reduction is driven by the ongoing amortization of €(20.5) million on other intangible assets mainly from purchase price allocations and by the ongoing depreciation of €(26.7) million on property, plant and equipment. Furthermore, non-current assets were further reduced by foreign exchange rate related carrying value adjustments, e.g. a decrease in goodwill of €(1.1) million. This was partly offset by investments of €17.6 million in fixed assets for ongoing capacity expansion projects as well as €11.8 million for intangible assets.

Current assets

Current assets increased from €405.4 million as of September 30, 2020, by 26.2% or €106.2 million to €511.6 million as of June 30, 2021. This was primarily driven by an increased cash balance (+€76.0 million), attributable to the cash inflow from the promissory note loan amounting to €95.0 million as well as driven by the strong operating free cash flow, which was partly offset by a prepayment of the term-loan facility amounting to €(47.4) million in March 2021 and by the dividend payment amounting to €(12.4) million paid out in February 2021. In addition, inventories increased by €27.2 million in order to secure our global supply chain and to ensure our ability to facilitate the rising demand. Furthermore, other assets increased by €8.8 million due to increased VAT receivables (+€5.1 million) and increased deferred charges (+€3.5 million) as well as trade accounts receivable (+€1.9 million). This increase was partly offset by a decrease in current tax assets by €(3.8) million due to a tax reimbursement related to the US restructuring in fiscal year 2018 and by a

decrease of other financial assets by €(3.9) million due to the cash inflow from the anticipated purchase price adjustment related to the acquisition of General Aerospace GmbH.

Equity

The Group's equity increased from €469.6 million as of September 30, 2020, by 11.5% or €53.9 million to €523.5 million as of June 30, 2021. This increase mainly results from the profit of €56.2 million as well as from the other comprehensive income, which increased by €10.7 million. This comprises unrealized actuarial gains on pensions (net of tax) amounting to €1.2 million and unrealized gains from foreign currency translation amounting to €9.5 million. This increase was partly offset by the dividend payment to our shareholders amounting to €(12.4) million in the second quarter of fiscal year 2021.

Non-current liabilities

Non-current liabilities liabilities increased from €425.5 million as of September 30, 2020, by 10.7% or €45.5 million to €471.0 million as of June 30, 2021. This increase especially relates to the issue of a promissory note loan amounting to €95.0 million, partly offset by a prepayment of the term-loan facility amounting to €(47.4) million in March 2021. Furthermore, the pension liabilities decreased by €(2.5) million as a consequence of the increased discount rate (June 30, 2021: 1.41% versus September 30, 2020: 1.14%).

Current liabilities

Current liabilities decreased from €188.4 million as of September 30, 2020, by (2.0)% or €(3.8) million to €184.6 million as of June 30, 2021. Financial liabilities decreased by €(30.2) million due to the full repayment of the revolving credit facility. The overall decrease was almost offset by increased trade accounts payable by €8.9 million and by increased provisions by €11.1 million (personnel-related expenses +€4.3 million and warranties +€4.6 million), as a consequence of the increased business volume in the first nine months of fiscal year 2021. In addition, other liabilities increased by €5.1 million due to vacation expenses (+€2.7 million) and outstanding costs (€+1.8 million).

LIQUIDITY

Cash flow T_009

Nine months ended June 30,
IN € MILLIONS 2021 2020 Change % change
Cash flow from operating activities 109.8 52.1 57.7 >100.0%
Cash flow from investing activities (28.8) (38.4) 9.6 (25.0)%
Cash flow from financing activities (6.4) (35.7) 29.3 (82.1)%
Net increase / (decrease) in cash 74.6 (22.0) 96.6 >100.0%
Effect of movements in exchange rates on cash held 1.4 (3.0) 4.4 >100.0%
Cash as of beginning of the period 162.4 139.0 23.4 16.8%
Cash as of end of the period 238.4 114.0 124.4 >100.0%

Cash flow from operating activities

Cash flow from operating activities increased from €52.1 million in the first nine months of fiscal year 2020 by €57.7 million to €109.8 million in the first nine months of fiscal year 2021. The increase is mainly due to the improved operating performance compared to the prior year as well as from lower income tax payments of €10.0 million, including a tax reimbursement of €3.0 million from the US restructuring in fiscal year 2018. To mitigate risks in the global supply chain, Stabilus invested into inventories.

Cash flow from investing activities

Cash outflow for investing activities decreased from €(38.4) million in the first nine months of fiscal year 2020 by €9.6 million or (25.0)% to €(28.8) million in the first nine months of fiscal year 2021. This is due to lower capital expenditures for property, plant and equipment decreasing by €7.0 million from €(24.6) million to €(17.6) million and for intangible assets decreasing by €1.3 million from €(13.1) million to €(11.8) million. In prior year €(1.1) million was paid in relation to the acquisition of Piston.

Cash flow from financing activities

Cash flow from financing activities strongly decreased from €(35.7) million in the first nine months of fiscal year 2020 by €29.3 million or (82.1)% to €(6.4) million in the first nine months of fiscal year 2021. This was mainly attributable to the cash inflow from the promissory note loan of €95.0 million offset by the partial repayment of the term-loan facility amounting to €(47.4) million (PY: €(20.0) million) and of our financial liabilities (especially the revolving credit facility) amounting to €(31.3) million. In addition, the decrease was partly offset by lower dividends of €(12.4) million (PY: €(27.2) million) paid to our shareholders in February 2021.

Free cash flow (FCF)

Free cash flow (FCF) is defined as the total of cash flow from operating and investing activities. The Group considers FCF as an essential alternative performance measure as it aids in the evaluation of the Group´s ability to generate cash that can be used, among others, for further investments.

The following table sets out the composition of FCF:

Free cash flow T_010

IN € MILLIONS Nine months ended June 30, % change
2021 2020 Change
Cash flow from operating activities 109.8 52.1 57.7 >100.0%
Cash flow from investing activities (28.8) (38.4) 9.6 (25.0)%
Free cash flow 81.0 13.7 67.3 >100.0%

Adjusted free cash flow

Adjusted free cash flow is defined as the total of cash flow from operating and investing activities before acquisitions. The adjusted free cash flow increased from €14.8 million in the first nine months of fiscal year 2020 to €81.0 million in the first nine months of fiscal year 2021. In fiscal year 2021 no comparable payment for acquisitions have been made.

Adjusted free cash flow T_011

IN € MILLIONS Nine months ended June 30, % change
2021 2020 Change
Cash flow from operating activities 109.8 52.1 57.7 >100.0%
Cash flow from investing activities before acquisitions (28.8) (37.3) 8.5 (22.8)%
Adjusted FCF 81.0 14.8 66.2 >100.0%

Net leverage ratio

The net leverage ratio is defined as net financial debt divided by adjusted EBITDA for the last twelve months (adjusted EBITDA LTM).

Net financial debt is the nominal amount of financial debt, i.e. current and non-current financial liabilities, less cash and cash equivalents. Adjusted EBITDA is defined as adjusted EBIT before depreciation / amortization and before exceptional non-recurring items (e.g. restructuring or one-time advisory costs).

The net leverage ratio is presented because we believe it is a useful indicator to evaluate the Group's debt leverage and financing structure.

The net leverage ratio decreased from 1.4x for the twelve months ending June 30, 2020, to 0.6x for the twelve months ending June 30, 2021 (September 30, 2020, at 1.2x). Further details are set out in the following tables:

Net leverage ratio T_012

IN € MILLIONS June 30, 2021 June 30, 2020 Change % change
Financial debt 350.4 328.2 22.2 6.8%
Cash and cash equivalents (238.4) (114.0) (124.4) >100.0%
Net financial debt 112.0 214.2 (102.2) (47.7)%
Adjusted EBITDA (LTM ended June 30) 181.7 155.2 26.5 17.1%
Net leverage ratio1) 0.6x 1.4x

1) The net leverage ratio is defined as net financial debt divided by adjusted EBITDA for the last twelve months.

Financial debt T_013

Adjusted EBITDA (LTM ended June 30) T_014
IN € MILLIONS June 30, 2021 June 30, 2020
Financial liabilities (non-current) 338.7 291.7
Financial liabilities (current) 4.1 24.1
Adjustment carrying value 7.5 12.4
Financial debt 350.4 328.2
IN € MILLIONS June 30, 2021 June 30, 2020 Change % change
Profit from operating activities (EBIT) 116.8 67.4 49.4 73.3%
Depreciation 35.6 34.0 1.6 4.7%
Amortization 29.5 34.2 (4.7) (13.7)%
PPA adjustments – impairment on intangible assets 25.7 (25.7) n/a
EBITDA 181.9 161.3 20.6 12.8%
Purchase price adjustment (0.2) (6.1) 5.9 (96.7)%
Adjusted EBITDA 181.7 155.2 26.5 17.1%

RISKS AND OPPORTUNITIES SUBSEQUENT EVENTS

The COVID-19 pandemic is still affecting the macroeconomic environment and the global economy is characterized by the consequential uncertainties, which bear various risks for Stabilus as well. The Group 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 prices in the global supply chain, e.g. steel and plastic, as well as the shortage of electronic components (semiconductors) having negative impacts on the business of the Group. 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 using of home office reduces the risk of the virus spreading further.

We also refer to the Group Management Report and the audited consolidated financial statements as of and for the fiscal year ended September 30, 2020, for the general risk-related disclosures.

As of July 29, 2021, there were no further events or developments that could have materially affected the measurement and presentation of the Group's assets and liabilities as of June 30, 2021.

OUTLOOK

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).

Luxembourg, July 29, 2021

Dr. Michael Büchsner Mark Wilhelms Andreas Schröder Andreas Sievers

Management Board

A INTERIM MANAGEMENT STATEMENT B SUPPLEMENTARY FINANCIAL INFORMATION C ADDITIONAL INFORMATION D INFORMATION RESOURCES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

SUPPLEMENTARY FINANCIAL INFORMATION

as of and for the three and nine months ended June 30, 2021

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the three and nine months ended June 30, 2021 (unaudited)

Consolidated statement of comprehensive income T_015
Three months ended June 30, Nine months ended June 30,
IN € THOUSANDS 2021 2020 2021 2020
Revenue 228,688 147,025 708,095 599,367
Cost of sales (161,865) (112,620) (496,492) (433,723)
Gross profit 66,823 34,405 211,603 165,644
Research and development expenses (10,673) (8,943) (31,587) (30,350)
Selling expenses (20,057) (42,709) (61,200) (86,716)
Administrative expenses (9,551) (7,583) (30,506) (26,029)
Other income 1,689 3,318 4,824 8,120
Other expenses (783) (291) (2,357) (598)
Profit from operating activities 27,448 (21,803) 90,777 30,071
Finance income 174 95 581 5,136
Finance costs (4,537) (2,590) (12,069) (8,422)
Profit / (loss) before income tax 23,085 (24,298) 79,289 26,785
Income tax income / (expense) (7,144) 7,879 (23,083) (8,725)
Profit / (loss) for the period 15,941 (16,419) 56,206 18,060
thereof attributable to non-controlling interests 155 (1,767) 123 (1,533)
thereof attributable to shareholders of Stabilus 15,786 (14,652) 56,083 19,593
Other comprehensive income / (expense)
Foreign currency translation difference1) 597 (4,813) 9,496 (24,727)
Unrealized actuarial gains and losses2) 348 (2,310) 1,172 3,730
Other comprehensive income / (expense), net of taxes 945 (7,123) 10,668 (20,997)
Total comprehensive income / (expense) for the period 16,886 (23,542) 66,874 (2,937)
thereof attributable to non-controlling interests (68) (1,767) (2,410) (1,533)
thereof attributable to shareholders of Stabilus 16,954 (21,775) 69,284 (1,404)
Earnings per share (in €):
basic 0.64 (0.59) 2.27 0.79
diluted 0.64 (0.59) 2.27 0.79

1) Item that may be reclassified ('recycled') to profit and loss at a future point in time when specific conditions are met.

2) Item that will not be reclassified to profit and loss.

The accompanying notes form an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as of June 30, 2021 (unaudited)

Consolidated statement of financial position T_016

IN € THOUSANDS June 30, 2021 Sept 30, 2020
Assets
Property, plant and equipment 226,321 229,809
Goodwill 206,560 207,661
Other intangible assets 220,380 229,251
Other assets 1,041 281
Deferred tax assets 13,221 11,149
Total non-current assets 667,523 678,151
Inventories 124,424 97,237
Trade accounts receivable 118,988 117,071
Current tax assets 5,780 9,591
Other financial assets 3,407 7,274
Other assets 20,603 11,816
Cash and cash equivalents 238,378 162,431
Total current assets 511,580 405,420
Total assets 1,179,103 1,083,571
IN € THOUSANDS June 30, 2021 Sept 30, 2020
Equity and liabilities
Issued capital 247 247
Capital reserves 225,848 225,848
Retained earnings 331,435 287,702
Other reserves (38,919) (52,120)
Equity attributable to shareholders of Stabilus 518,611 461,677
Non-controlling interests 4,870 7,921
Total equity 523,481 469,598
Financial liabilities 338,709 288,078
Other financial liabilities 30,191 33,066
Provisions 3,241 3,699
Pension plans and similar obligations 54,539 57,029
Deferred tax liabilities 44,287 43,656
Total non-current liabilities 470,967 425,528
Trade accounts payable 79,983 71,080
Financial liabilities 4,144 34,306
Other financial liabilities 17,818 16,345
Current tax liabilities 9,451 9,658
Provisions 51,284 40,168
Other liabilities 21,975 16,888
Total current liabilities 184,655 188,445
Total liabilities 655,622 613,973
Total equity and liabilities 1,179,103 1,083,571

Consolidated statement of financial position T_016

The accompanying notes form an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENT OF CASH FLOWS

for the nine months ended June 30, 2021 (unaudited)

Consolidated statement of cash flows T_017

Nine months ended June 30,
IN € THOUSANDS 2021 2020
Profit / (loss) for the period 56,206 18,060
Income tax expense 23,083 8,725
Net finance result 11,487 3,286
Interest received 287 422
Depreciation and amortization (incl. impairment losses) 47,195 77,899
Gains / losses from the disposal of assets (170) (10)
Changes in inventories (27,187) (2,755)
Changes in trade accounts receivable (1,917) 36,381
Changes in trade accounts payable 8,903 (41,254)
Changes in other assets and liabilities 4,511 (10,089)
Changes in provisions 9,710 (6,268)
Income tax payments (22,304) (32,316)
Cash flow from operating activities 109,804 52,081
Proceeds from disposal of property, plant and equipment 653 347
Purchase of intangible assets (11,817) (13,114)
Purchase of property, plant and equipment (17,638) (24,555)
Acquisition of assets and liabilities within the business combination, net of cash acquired (1,062)
Cash flow from investing activities (28,802) (38,384)
Receipts from financial liabilities 95,000 22,559
Payments for redemption of financial liabilities (31,340) (1,206)
Payments for redemption of senior facilities (47,358) (20,000)
Payments for lease liabilities (6,034) (6,226)
Dividends paid (12,350) (27,170)
Dividends paid to non-controlling interests (641)
Payments for interest (3,700) (3,694)
Cash flow from financing activities (6,423) (35,737)
Net increase / (decrease) in cash and cash equivalents 74,579 (22,040)
Effect of movements in exchange rates on cash held 1,368 (2,980)
Cash and cash equivalents as of beginning of the period 162,431 139,020
Cash and cash equivalents as of end of the period 238,378 114,000

The accompanying notes form an integral part of these consolidated financial statements.

SEGMENT REPORTING

Segment information for the nine months ended June 30, 2021 and 2020 is as follows:

Segment reporting T_018
EMEA Americas APAC
Nine months ended June 30, Nine months ended June 30, Nine months ended June 30,
IN € THOUSANDS 2021 2020 2021 2020 2021 2020
External revenue1) 358,187 306,651 244,182 215,319 105,726 77,397
Intersegment revenue1) 22,280 19,192 18,301 16,489 172 135
Total revenue1) 380,467 325,843 262,483 231,808 105,898 77,532
Depreciation and amortization
(incl. impairment losses)
(25,550) (54,125) (11,562) (12,407) (6,590) (6,140)
EBIT 45,645 1,963 31,963 25,321 16,662 8,014
Adjusted EBIT 50,019 30,780 34,316 27,906 16,776 8,131
Total segments
Nine months ended June 30,
Other / Consolidation
Nine months ended June 30,
Stabilus Group
Nine months ended June 30,
IN € THOUSANDS 2021 2020 2021 2020 2021 2020
External revenue1) 708,095 599,367 708,095 599,367
Intersegment revenue1) 40,753 35,816 (40,753) (35,816)
Total revenue1) 748,848 635,183 (40,753) (35,816) 708,095 599,367
Depreciation and amortization
(incl. impairment losses)
(43,702) (72,672) (3,493) (5,227) (47,195) (77,899)
EBIT 94,270 35,298 (3,493) (5,227) 90,777 30,071
Adjusted EBIT 101,111 66,817 101,111 66,817

1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").

ADDITIONAL INFORMATION

FINANCIAL CALENDAR

Financial calendar T_019

DATE 1)2) PUBLICATION / EVENT
August 2, 2021 Publication of the third-quarter results for fiscal year 2021 (Quarterly Statement Q3 FY2021)
November 12, 2021 Publication of preliminary financial results for fiscal year 2021
December 10, 2021 Publication of full-year results for fiscal year 2021 (Annual Report 2021)
January 31, 2022 Publication of the first-quarter results for fiscal year 2022 (Quarterly Statement Q1 FY2022)
February 16, 2022 Annual General Meeting
May 2, 2022 Publication of the second-quarter results for fiscal year 2022 (Interim Report Q2 FY2022)
August 1, 2022 Publication of the third-quarter results for fiscal year 2022 (Quarterly Statement Q3 FY2022)
November 11, 2022 Publication of preliminary financial results for fiscal year 2022
December 9, 2022 Publication of full-year results for fiscal year 2022 (Annual Report 2022)

1) We cannot rule out changes of dates. We recommend checking them on our website in the Investors / Financial Calendar section (www.stabilus.com/investors/financial-calendar).

2) Please note that our fiscal year (FY) comprises a twelve-month period from October 1 until September 30 of the following calendar year, e.g. the fiscal year 2021 comprises a year ending September 30, 2021.

DISCLAIMER

Forward-looking statements

This quarterly statement contains forward-looking statements that relate to the current plans, objectives, forecasts and estimates of the management of Stabilus S. A. These statements take into account only information that was available up to and including the date that this quarterly statement was prepared. The management of Stabilus S. A. makes no guarantee that these forward-looking statements will prove to be right. The future development of Stabilus S. A. and its subsidiaries and the results that are actually achieved are subject to a variety of risks and uncertainties, which could cause actual events or results to differ significantly from those reflected in the forward-looking statements. Many of these factors are beyond the control of Stabilus S. A. and its subsidiaries and therefore cannot be precisely predicted. Such factors include, but are not limited to, changes in economic conditions and the competitive situation, changes in the law, interest rate or exchange rate fluctuations, legal disputes and investigations, and the availability of funds. These and other risks and uncertainties are set forth in the Group Management Report. However, other factors could also have an adverse effect on our business performance and results. Stabilus S. A. neither intends nor assumes any separate obligation to update forward-looking statements or to change these to reflect events or developments that occur after the publication of this quarterly statement.

Rounding

Certain numbers in this quarterly statement have been rounded up or down. There may therefore be discrepancies between the actual totals of the individual amounts in the tables and the totals shown as well as between the numbers in the tables and the numbers given in the corresponding analyses in the text of the quarterly statement. All percentage changes and key figures in the quarterly statement were calculated using the underlying data in millions of euros rounded to one decimal place (€ millions).

INFORMATION RESOURCES

Further information including news, reports and publications can be found in the Investors section of our website at www.stabilus.com/investors.

Investor Relations

Phone: +352 286 770 21 Fax: +352 286 770 99 Email: [email protected] STABILUS QUARTERLY STATEMENT Q3 FY2021 24 A INTERIM MANAGEMENT STATEMENT B SUPPLEMENTARY FINANCIAL INFORMATION C ADDITIONAL INFORMATION D INFORMATION RESOURCES

2 , R U E A L B E R T B O R S C H E T T E , L - 1 2 4 6 L U X E M B O U R G G R A N D D U C H Y O F L U X E M B O U R G

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