Stabilus SE

Investor Presentation • Jan 27, 2025

01 FY2025 RESULTS

ANALYST \& INVESTOR WEB CONFERENCE JANUARY 27, 2025

Stabilus SE (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.

In Q1 FY25, revenue increased by $6.7 \%$ y/y due to the consolidation of Destaco. Excluding acquisition and currency translation effects, group revenue declined by $5.8 \%$.

Adj. EBIT ${ }^{1}$ margin improved by 70bp to $11.6 \%$.
Our initiatives to further improve robustness and resilience are ongoing.
Destaco integration is progressing successfully.
Net leverage ratio stable at 2.8 .
The market environment continues to be challenging; we expect our revenues and earnings to be back-end loaded.

We confirm our guidance given on December 9, 2024: For FY2025 we expect group revenues of $€ 1.3 \mathrm{bn}-€ 1.45 \mathrm{bn}$, adj. EBIT margin of $11 \%-13 \%$ and adj. FCF of $€ 90 \mathrm{~m}-€ 140 \mathrm{~m}$.

DESTACO'S PERFORMANCE AND REVENUE SYNERGIES

STABILLUS

INDUSTRIAL AUTOMATION(DESTACO)(€M)

01 FY25
(Oct-Dec)
Actual
Revenue
45.0

EBIT
8.5
\% revenue
$18.9 \%$
FCF
3.5
\% revenue

STABILUS GROUP IN Q1 FY2025 REVENUE AND EARNINGS INCREASE DRIVEN BY DESTACO CONSOLIDATION

REVENUE ( $€ \mathrm{M}$ )

$\qquad$ \% organic growth

Revenue $\mathbf{\Delta} 6.7 \% \mathrm{y} / \mathrm{y}$

Organic $-5.8 \%$, M\&A +14.7\%, FX $-2.2 \% \mathrm{y} / \mathrm{y}$
M\&A effect: Destaco $€ 45.0 \mathrm{~m}$
Growth in IMA ${ }^{1}$ and DIAMEC largely offset by decline in other market segments
${ }^{1}$ See list of acronyms in appendix.

ADJ. EBIT (€M)

Adj. EBIT margin $\mathbf{\Delta} 70 \mathrm{bp} \mathrm{y} / \mathrm{y}$

Adj. EBIT +13.5\% y/y: Organic -11.1\%, M\&A +25.5\%, FX -0.9\%
M\&A: Destaco $€ 8.5 \mathrm{~m}$ (18.9\% EBIT margin)

PROFIT (€M)

Adj. EBIT margin $\mathbf{\Delta} 40 \mathrm{bp} \mathrm{y} / \mathrm{y}$

Higher profit from operating activities (EBIT) partly offset by higher finance costs and higher income taxes y/y

$\operatorname{ADJ} . \operatorname{FCF}(\mathrm{€M})$

Adj. FCF \% revenue ₹ 9.2pp y/y

M\&A: Destaco $€ 3.5 \mathrm{~m}$
Adjustments to FCF $€ 2.0 \mathrm{~m}$ (PY $€ 3.7 \mathrm{~m}$ )
Reversal of positive one-off effects from Q4 FY24; temporarily higher NWC, esp. higher inventories

BUSINESS DEVELOPMENT BY REGION IN Q1 FY25

AMERICAS

REMEA
ASIA-PACIFIC

Revenue
$\Delta 14.7 \% \mathrm{y} / \mathrm{y}$
$\Delta 6.1 \% \mathrm{y} / \mathrm{y}$
$\nabla 1.4 \% \mathrm{y} / \mathrm{y}$
adj. EBIT margin
$8.5 \%$
$\Delta 320 \mathrm{bp} \mathrm{y} / \mathrm{y}$
$8.9 \%$
$\Delta 50 \mathrm{bp} \mathrm{y} / \mathrm{y}$
$19.4 \%$
$\nabla 100 \mathrm{bp} \mathrm{y} / \mathrm{y}$

Revenue increase in Americas and EMEA due to the consolidation of Destaco.

AMERICAS REVENUE AND EARNINGS INCREASED MAINLY DUE TO DESTACO CONSOLIDATION

REVENUE (EM)

ADJ. EBIT (EM)

01 FY24
01 FY25

Revenue 14.7\% y/y

) Organic -4.7\%, M\&A +26.4\%, FX -7.0\%
) M\&A: Destaco $€ 26.2 \mathrm{~m}$
) Substantially lower revenues in Automotive and lower revenues in CV ${ }^{1}$ and HRF, partially offset by organic growth in DIAMEC, AMR and EC

Adj. EBIT margin 320bp y/y

Adj. EBIT +83.0\% y/y: Organic -7.6\%, M\&A +98.1\%, FX -7.5\% y/y
) M\&A: Destaco $€ 5.2 \mathrm{~m}$

EMEA GROWTH DRIVEN BY ACQUISITION AND DIAMEC

REVENUE ( $€ \mathrm{M}$ )

ADJ. EBIT( $€ \mathrm{M}$ )

Revenue 6.1\% y/y

Organic -4.6\%, M\&A +10.9\%, FX -0.2\%
M\&A: Destaco $€ 12.9 \mathrm{~m}$
Lower organic revenues in all market segments, partially offset by growth in DIAMEC ${ }^{1}$ (spare parts)

Adj. EBIT margin $\mathbf{4} 50 \mathrm{bp} \mathrm{y} / \mathrm{y}$

Adj. EBIT +13.1\% y/y: Organic -8.1\%, $\mathrm{M} \& \mathrm{~A}+21.2 \%, \mathrm{FX} 0.0 \% \mathrm{y} / \mathrm{y}$
M\&A: Destaco $€ 2.1 \mathrm{~m}$

APAC IS IMPACTED BY WEAK AUTOMOTIVE BUSINESS

REVENUE (EM)

Revenue ₹ $1.4 \%$ y/y
) Organic - $8.6 \%, \mathrm{M} \& \mathrm{~A}+6.7 \%, \mathrm{FX}+0.5 \%$
) M\&A: Destaco $€ 5.9 \mathrm{~m}$
) Substantially lower revenues in Automotive, partially offset by organic growth in DIAMEC' (spare parts)

Adj. EBIT margin ₹ 100bp y/y

Adj. EBIT -6.1\% y/y: Organic -13.4\%, $\mathrm{M} \& \mathrm{~A}+6.7 \%, \mathrm{FX}+0.6 \% \mathrm{y} / \mathrm{y}$
) M\&A: Destaco $€ 1.2 \mathrm{~m}$

BUSINESS DEVELOPMENT BY MARKET SEGMENT IN 01 FY25

Despite the challenging market environment, IMA and DIAMEC grew in 01 FY25 y/y.

NET DEBT RATIO STABLE AT 2.8

Net leverage ratio stable at 2.8 and well below 3.0.
Our goal is to reduce net leverage ratio well below 2.0 within the next two to three years.
Our mid-term target leverage ratio is 1.0 .

NWC/REVENUE RATIO STABLE ON THE LEVEL OF 20\%

STABILLUS

NWC/revenue ratio at $20.4 \%$, incl. Destaco's NWC and proforma LTM revenue.
Our forecast for NWC in FY2025: 17\%-20\% of LTM revenue
NWC/revenue ratio of $20.4 \%$ in 01 FY25 mainly due to temporary inventory increase.
We expect a prompt normalization of the inventory level.

INVESTMENT FOCUS ON INNOVATIVE NEW PRODUCTS SUCH AS DOOR ACTUATORS

Investment focus in 01 FY25: radar technology, smart door actuation and automation of production facilities.
The investments in automation and efficiency reached its peak in FY2024 and will phase out in FY2025.
Our forecast for total capex in FY2025: c. 6\% of revenue (thereof c. $€ 60 \mathrm{~m}$ for PPE).

WE CONFIRM OUR GUIDANCE FOR FY2025

	FY2024 Actual	FY2025 Forecast
Revenue	$€ 1,305.9 \mathrm{~m}$	$€ 1.3 b n-€ 1.45 b n$
Adj. EBIT margin	$12.0 \%$	$11 \%-13 \%$
Adj. FCF	$€ 132.8 \mathrm{~m}$	$€ 90 \mathrm{~m}-€ 140 \mathrm{~m}$

The market environment continues to be challenging.
The range of our expectations reflects higher macroeconomic and geopolitical uncertainty.
We expect the FY2025 earnings to be back-end loaded.

Despite the challenging market environment, Stabilus showed increased revenues and earnings in 01 FY25.

Diversification by market segment provides stability.
We continue to work on NWC1 reductions and CAPEX optimization to ensure FCF stability.

The integration of Destaco is well on track.
We confirm our guidance for FY2025.
We continue to pursue our long-term strategy STAR 2030, focusing on profitable and sustainable growth, customer and employee satisfaction, innovation and sustainability.

Q\&A SESSION

๑

APPENDIX

REVENUE

THREE MONTHS ENDED DECEMBER 31, 2024

REVENUE (€M)

	O1FY2024 Actual	O1FY2025 Actual	Change	\% change	Acquisition effect	Currency effect	Organic growth
Automotive Gas Spring	30.2	29.0	(1.2)	(4.0)\%	$0.0 \%$	$0.0 \%$	(4.0)\%
Automotive Powerise	28.7	26.1	(2.6)	(9.1)\%	$0.0 \%$	$(0.1) \%$	(9.0)\%
Industrial Components	59.3	57.3	(2.0)	(3.4)\%	$0.0 \%$	$(0.4) \%$	(3.0)\%
Industrial Automation (Destaco)	-	12.9	12.9	n/a	n/a	n/a	n/a
EMEA	118.2	125.4	7.2	6.1\%	10.9\%	(0.2)	(4.8)
Automotive Gas Spring	27.7	25.5	(2.2)	(7.9)\%	$0.0 \%$	(5.2)\%	(2.7)\%
Automotive Powerise	39.4	29.8	(9.6)	(24.4)\%	$0.0 \%$	(10.0)\%	(14.4)\%
Industrial Components	32.0	32.2	0.2	$0.6 \%$	$0.0 \%$	(4.9)\%	$5.5 \%$
Industrial Automation (Destaco)	-	26.2	26.2	n/a	n/a	n/a	n/a
AMERICAS	99.1	113.7	14.8	14.7\%	26.4\%	(7.0)	(4.7)
Automotive Gas Spring	31.5	29.8	(1.7)	(5.4)\%	$0.0 \%$	$0.5 \%$	(5.9)\%
Automotive Powerise	50.6	44.6	(6.0)	(11.9)\%	$0.0 \%$	$0.5 \%$	(12.4)\%
Industrial Components	6.0	6.7	0.7	11.7\%	$0.0 \%$	$0.8 \%$	10.9\%
Industrial Automation (Destaco)	-	5.9	5.9	n/a	n/a	n/a	n/a
APAC	88.1	86.9	(1.2)	(1.4)\%	6.7\%	0.5\%	(8.8)
Total Automotive Gas Spring (AGS)	89.4	84.3	(5.1)	(5.7)\%	$0.0 \%$	(1.5)\%	(4.2)\%
Total Automotive Powerise (APR)	118.7	100.5	(18.2)	(15.3)\%	$0.0 \%$	(3.1)\%	(12.2)\%
Total Industrial Components (IC)	97.3	96.2	(1.1)	(1.1)\%	$0.0 \%$	(1.8)\%	$0.7 \%$
Total Industrial Automation (Destaco)	-	45.0	45.0	n/a	n/a	n/a	n/a
Total	305.4	328.0	20.8	6.7\%	14.7\%	(2.2)	(5.8)

ADJUSTED EBIT

THREE MONTHS ENDED DECEMBER 31, 2024

ADJUSTED EBIT(€M)

	O1FY2024 Actual	O1FY2025 Actual	Change	\% change	Acquisition effect	Currency effect	Organic change
EMEA	9.9	11.2	1.3	$13.1 \%$	$21.2 \%$	$0.0 \%$	$(8.1) \%$
AMERICAS	5.3	9.7	4.4	$83.0 \%$	$98.1 \%$	$(7.5) \%$	$(7.6) \%$
APAC	18.0	16.9	$(1.1)$	$(6.1) \%$	$6.7 \%$	$0.6 \%$	$(13.4) \%$
Total	33.3	37.8	4.5	$13.5 \%$	$25.5 \%$	$(0.9) \%$	$(11.1) \%$

P\&L AND ADJUSTED EBIT

THREE MONTHS ENDED DECEMBER 31, 2024

P\&L (€M)

ADJUSTED EBIT (€M)

	01 FY2024 Actual	01 FY2025 Actual	Change	\% change
Revenue	305.4	326.0	20.6	6.7\%
Cost of sales	(230.9)	(238.7)	(7.8)	3.4\%
Gross Profit	74.5	87.2	12.7	17.0\%
\% margin	24.4\%	26.7\%
R\&D expenses	(8.1)	(9.4)	(1.3)	16.0\%
Selling expenses	(26.5)	(33.4)	(6.9)	26.0\%
Administrative expenses	(21.2)	(20.9)	0.3	(1.4)\%
Other income/expenses	1.6	4.7	3.1	$>100.0 \%$
EBIT	20.3	28.1	7.8	38.4\%
\% margin	6.6\%	8.6\%
Finance income/costs	(3.4)	(7.3)	(3.9)	$>100.0 \%$
EBT	16.9	20.9	4.0	23.7\%
\% margin	5.5\%	6.4\%
Income tax	(4.7)	(6.6)	(1.9)	40.4\%
Profit	12.2	14.3	2.1	17.2\%
\% margin	4.0\%	4.4\%
EPS in €	0.47	0.56	0.09	19.1\%

$\%$ change

EBIT
PPA adj. - D\&A
Advisory costs
Total adjustments
Adjusted EBIT
\% margin

Change	\% change
7.8	38.4\%
4.7	$>100.0 \%$
(8.0)	(90.9)
(3.3)	(25.4)
4.5	13.5\%

BALANCE SHEET

DECEMBER 31, 2024

BALANCE SHEET( $€ \mathrm{M}$ )

	Sept 2024 Actual	Dec 2024 Actual	Change	\% change
Property, plant and equipm.	300.3	309.1	8.8	$2.9 \%$
Goodwill	540.0	557.3	17.3	$3.2 \%$
Other intangible assets	477.9	489.1	11.2	$2.3 \%$
Other investments	6.0	6.0	-	$0.0 \%$
Inventories	223.6	239.2	15.6	$7.0 \%$
Trade receivables	203.4	203.1	$(0.3)$	$(0.1) \%$
Other assets	50.3	62.8	12.5	$24.9 \%$
Cash	109.4	97.5	$(11.9)$	$(10.9) \%$
Total assets	1,910.9	1,964.1	53.2	2.8\%
Equity incl. minorities	677.7	736.2	58.5	$8.6 \%$
Debt (incl. accrued interest)	777.8	761.2	$(16.6)$	$(2.1) \%$
Pension plans	47.3	48.8	1.5	$3.2 \%$
Deferred tax liabilities	64.2	66.6	2.4	$3.7 \%$
Trade payables	159.7	161.7	2.0	$1.3 \%$
Other liabilities	184.2	189.6	5.4	$2.9 \%$
Total equity and liabilities	1,910.9	1,964.1	53.2	2.8\%

CASH FLOW

THREE MONTHS ENDED DECEMBER 31, 2024

CASH FLOW STATEMENT (€M)

	O1 FY2024 Actual	O1 FY2025 Actual	Change	\% change
Cash flow from operating activities	49.8	29.7	(20.1)	$(40.4) \%$
Cash flow from investing activities	(17.4)	(22.8)	$(5.4)$	$31.0 \%$
Cash flow from financing activities	$(4.2)$	(21.4)	(17.2)	$>100.0 \%$
Net increase / (decrease) in cash	28.3	(14.5)	(42.8)	$<$ (100.0)
Effect of movements in exchange rates	(2.7)	2.5	5.2	$<100.01 \%$
Cash as of beginning of the period	193.1	109.4	(83.7)	$(43.3) \%$
Cash as of end of the period	218.7	97.5	(121.2)	$(55.4) \%$

ADJ. FCF (€M)

	O1 FY2024 Actual	O1 FY2025 Actual	Change	\% change
Cash flow from operating activities	49.8	29.7	(20.1)	$(40.4) \%$
Cash flow from investing activities	(17.4)	(22.8)	(5.4)	$31.0 \%$
Free cash flow	32.4	6.9	(25.5)	(78.7)
Adjustments	3.7	2.0	(1.7)	$(45.9) \%$
Adj. FCF	36.2	8.9	(27.3)	(75.4)

LVP DEVELOPMENT / FORECAST

QUARTERLY VIEW: Q1 FY24 - Q4 FY25

Source: leading market forecast institutes, January 2025

LVP DEVELOPMENT / FORECAST

STABILUS

YEARLY VIEW: FY2023 - FY2025

Source: leading market forecast institutes, January 2025

ACRONYMS AND ABBREVIATIONS

Adj.	Adjusted	FX	Foreign exchange, currency effect
AGS	Automotive Gas Spring	FY	Fiscal year
AMR	Aerospace, Marine \& Rail	GDP	Gross domestic product
APAC	Asia-Pacific	HRF	Health, Recreation \& Furniture
APR	Automotive Powerise	IMA	Industrial Machinery \& Automation
bp	Basis point	LTM	Last twelve months
CAPEX	Capital expenditure	LVP	Light vehicle production
CV	Commercial Vehicles	M\&A	Mergers \& Acquisitions, acquisition effect
CY	Calendar year	NWC	Net working capital
D\&A	Depreciation and amortization	pp	Percentage point
DIAMEC	Distributors, Independent Aftermarket, E-commerce	PPA	Purchase price allocation
EMEA	Europe, Middle East \& Africa	PPE	Property, plant and equipment
EBIT	Earnings before interest and taxes	Prelim	Preliminary
EBITDA	Earnings before interest, taxes, depreciation and amortization	PY	Prior year
EBT	Earnings before taxes	q/q	Quarter-on-quarter
EC	Energy \& Construction	$y / y$	Year-on-year
FCF	Free cash flow

STABILLUS
M O T I O N C O N T R O L