Novem Group S.A.

Investor Presentation • Aug 7, 2025

07 August 2025

Q1 2025/26 Results

• Novem generated total revenue of €128.9 million (-8.0% y/y) amid an increasingly challenging trading environment in all regions
• Year-on-year decrease primarily driven by Tooling segment due to different and back-end loaded project phasing
• Series business broadly in line with prior year, buoyed by volumes of a premium US EV model
• Top line impacted by temporary OEM production halts, including a three-week customer plant shutdown in Americas
• Delayed SOPs and slower-than-expected ramp-up curves of new business further dampened turnover and profitability
• All factors collectively burdened profitability, resulting in an Adj. EBIT margin of 6.0% for the quarter under review
• Further cost optimisation initiatives are underway, focusing on central functions in Germany
• Despite the challenging environment, Novem secured new business wins with Volvo and General Motors

Weak demand and insufficient cost coverage weigh on performance, prompting strategic action and cost discipline

2 GROUP RESULTS

Page 5

Revenue

• Total revenue of €128.9m in the first quarter of 2025/26 fell behind previous year by €-11.2m or -8.0%
• Top line was negatively affected by FX effects; revenue would have been higher by €+5.2m or +4.0% at constant FX rates
• Revenue Series of €116.8m diminished by €-3.0m or -2.5% versus prior year and contributed 90.6% to total revenue
• Decline in Series turnover was mainly related to continued lower customer call-offs, customer plant closures and slow ramp-up curves of new programs, above all in Asia and Americas
• Latest publicly available data on the LVP market indicates a yearon-year increase of +2.6% for the period under review
• Tooling added €12.2m to total revenue, which was well below last year by €-8.1m or -40.1% due to a different project phasing
• In the last twelve months, total revenue of €530.3m declined by -2.1% against the preceding quarter

• Adj. EBIT in Q1 2025/26 of €7.7m recorded significantly behind prior year by €-6.5m, resulting in a profit margin of 6.0%
• Operating result was once again negatively impacted by the continued poor top line, predominantly in Americas and Asia
• Consequently, lower sales resulted in an unfavourable cost coverage and diminished profitability
• Additionally, bottom line was diluted by less favourable Tooling business y/y and a negative FX impact
• Further restructuring measures and cost control initiatives were initiated to protect the operating result
• Moreover, customer compensations, one-off pricing impacts and the release of accruals helped to mitigate the negative effects
• LTM Adj. EBIT stood at €42.4m and recorded below previous quarter by €-6.5m

Free cash flow

• In the first quarter of 2025/26, Novem generated a free cash flow of €1.3m and outperformed last year by €+4.4m
• Cash flow from operating activities of €2.3m was ahead of prior year by €+1.6m because of the following reasons:
• Higher profit for the period (€+13.5m), cash received from income taxes (€+10.4m) and increased other liabilities (€+7.5m); conversely, lower trade payables (€-17.9m) and increased other receivables (€-11.3m) as well as Others (€-0.6m)
• Favourable impact from cash received from income taxes driven by corporate tax and trade tax repayments related to prior years
• Cash out-flow for investing activities of €-1.8m was below prior year's figure of €-5.0m mainly because of lower investments
• Free cash flow for the last rolling twelve months of €32.9m exceeded previous quarter by €+4.4m or +15.3%

Capital expenditure

• Capital expenditure stood at €1.8m in the first quarter of 2025/26 and was therefore €-3.2m lower than previous year
• As a result of reduced investments, the underlying capex ratio of 1.4% came in below last year's figure of 3.6%
• Nearly half of the capital expenditure for the quarter under review was invested in Pilsen (€0.9m)
• Majority of the investments was growth-related and necessary for the ramp-up of new projects
• Capex ratio for the last twelve months decreased from 3.2% to 2.7% compared to previous quarter based on total revenue of €530.3m

Total working capital

Inventories Receivables Tooling net Contract assets Payables

LTM total working capital (€m)

• As of 30 June 2025, total working capital recorded at €136.9m and was -3.8% below last year (€142.2m)
• Favourable deviation of €+5.3m y/y came from lower inventories (€+10.4m) and trade receivables (€+3.2m); on the other hand, higher contract assets (€-4.6m) and tooling net (€-2.4m) as well as lower trade payables (€-1.3m)
• Positive development in inventories was linked to lower stock levels, to the largest extent in Americas as a result of rigorous working capital management
• As percentage of LTM revenue, total working capital recorded at 25.8% as of 30 June 2025 (23.7% PY)
• Trade working capital, excluding tooling net and contract assets, also developed favourably from €56.1m last year to €43.9m
• Reported in days outstanding, DIO of 40 (47 PY) improved, while DSO of 34 (PY 32) and DPO of 51 (54 PY) worsened

Capital structure

• As of 30 June 2025, gross financial debt of €293.9m declined by €-11.6m in comparison to the same reporting date last year
• Lease liabilities, by definition included in the gross financial debt, stood at €43.5m (€55.6m PY)
• Principal sources of funds contained €143.2m cash (€134.4m PY) and €37.9m from non-recourse factoring (€39.1m PY)
• Net financial debt as of 30 June 2025 amounted to €150.7m and showed a considerable decrease versus prior year (€171.2m)
• However, net leverage ratio of 2.0x remained at a higher level than previous year (1.8x Adj. EBITDA)

Revenue by operating segments

• Geographically, sharp revenue decrease in Americas and Asia, while Europe outperformed prior year
• Revenue increase in Europe (€+4.6m y/y) resulting from higher revenue in both Series and Tooling business
• Increase in Series sales predominantly driven by the ramp-up of a large US EV platform and higher customer compensations
• Revenue shortfall in Americas (€-13.7m y/y) stemmed primarily from lower revenue Tooling because of a different project phasing, while Series turnover noted slightly below prior year mainly due to a three-week customer plant shutdown and an adverse FX effect
• Revenue decline in Asia (€-2.1m y/y) mainly resulted from Series business because of ongoing lower call-offs of BMW X5 and X3 as well as the slow ramp-up of Volvo S90L
• LTM revenue showed the following allocation across the regions: 50.4% Americas, 39.7% Europe and 9.9% Asia

Adj. EBIT by operating segments

• Adj. EBIT recorded at €7.7m and decreased by €-6.5m compared to €14.2m in prior year across all regions
• In Europe, Adj. EBIT of €-3.3m (€-1.2m PY) was diluted by Tooling business and a continued weak cost coverage due to ongoing poor customer call-offs
• On the other hand, customer compensation payments and cost control initiatives helped to partially mitigate the negative impacts
• Adj. EBIT of €10.4m (€14.7m PY) in Americas fell short of prior year, predominantly attributable to the drop in revenue
• In Asia, Adj. EBIT of €0.5m (€0.7m PY) remained on a stable level; decline in top line was offset by tight cost management
• In Q1 2025/26, LTM Adj. EBIT of €42.4m decreased by €-6.5m in comparison to previous quarter and resulted in a profit margin of 8.0%

Profit and loss statement

Profit and loss statement (€m)

	Q1 2024/25	Q1 2025/26
Revenue	140 1	128 9
Increase or decrease in finished goods and work in process	1 9	0 4
Total operating performance	142 0	129 4
Other operating income	1 4	3 3
Cost of materials	-68 0	-62 6
Personnel expenses	-39 3	-38 0
Depreciation , amortisation and impairment	-8 1	9 -7
Other operating expenses	-13 9	-16 4
Adj EBIT	14 2	7 7
Adjustments	-2 8	-0 2
Operating result (EBIT)	11 4	7 5
Finance income	1 3	17 7
Finance costs	-9 9	-4 2
Financial result	-8 6	13 4
Income taxes	-2 6	-1 6
Deferred taxes	1 9	-3 7
Income result tax	-0 7	3 -5
Profit for the period	2 1	15 6

Balance sheet

Balance sheet (€m)
	30 Jun 2024	30 Jun 2025		30 Jun 2024	30 Jun 2025
			Total equity	92 1	92 1
Intangible assets and	2 8 188 8	2 8 163 1	Pensions and similar obligations Other	28 7 2 1	26 4 2 5
Property , plant equipment Trade receivables	48 1	43 8	provisions Financial liabilities	248 9	249 4
Other non-current assets	15 9	16 8	Trade	0 0
Deferred tax assets	12 5	1 5	payables Other liabilities	53 3	- 42 2
			Deferred tax liabilities	1 3	5 4
Total non-current assets	268 0	231 7	Total non-current liabilities	334 3	326 0
Inventories	105 5	95 6	Tax liabilities	4 4	1 7
Trade receivables	44 0	45 4	Other provisions	39 6	25 8
Other receivables	24 0	23 4	Financial liabilities	1 1	1 0
Other current assets	12 4	14 8	Trade payables	43 2	42 8
Cash and cash equivalents	134 4	143 2	Other liabilities	73 6	64 8
Total current assets	320 3	322 4	Total current liabilities	161 8	136 0
Assets	588 3	554 1	Equity and liabilities	588 3	554 1

Cash flow statement

Cash flow statement (€m)

	Q1 2024/25	Q1 2025/26
Profit for the period	2 1	15 6
Income expense (+)/income (-) tax	2 6	1 6
Financial result (+)/(-) net	4 1	-13 4
Depreciation , amortisation and impairment (+)	8 1	9 7
Other non-cash expenses (+)/income (-)	2 1	15 7
Increase (-)/decrease (+) in inventories	-6 2	-2 4
Increase (-)/decrease (+) in trade receivables	-1 0	-9 4
Increase (-)/decrease (+) in other assets	8 3	-3 0
Increase (-)/decrease (+) in deferred taxes	-1 9	3 7
Increase (-)/decrease (+) in prepaid expenses/deferred income	-2 2	0 2
Increase (+)/decrease (-) in provisions	-2 6	-1 4
Increase (+)/decrease (-) in trade payables	-0 6	-18 4
Increase (+)/decrease (-) in other liabilities	-7 2	0 3
Gain (-)/loss (+) on disposals of non-current assets	-	-0 0
Cash received (+) from/cash paid (-) for income taxes	-5 0	5 4
Cash flow from operating activities	0 6	2 3

	Cash flow statement (€m)
--	--------------------------	--

	Q1 2024/25	Q1 2025/26
Cash received (+) from disposals of property , plant and equipment	-	0 0
Cash paid (-) for investments in intangible assets	-0 1	-0 0
Cash paid (-) for investments in property , plant and equipment	-4 8	-1 8
Interest received (+)	1 3	0 9
Cash flow from investing activities	-3 7	-0 9
Cash paid (-) for subsidies/grants	-	-
Cash paid (-) for lease liabilities	1 0	-3 9
Interest paid (-)	-4 6	-3 4
Cash flow from financing activities	-3 6	3 -7
(+)/decrease (-) Net increase in cash and cash equivalents	-6 6	-6 0
Effect of exchange rate fluctuations on cash and cash equivalents	-0 5	-0 9
Cash of and cash equivalents at the beginning the reporting period	141 5	150 1
Cash and cash equivalents at the end of the reporting period	134 4	143 2

EBIT adjustments

EBIT adjustments (€m)
	Q1 2024/25	Q1 2025/26
Revenue	140 1	128 9
EBIT	11 4	7 5
EBIT margin	8 1%	8% 5
Restructuring	0 0	0 2
Single impairments	2 6	-
Others	0 2	0 0
Exceptional items	2 8	0 0
Discontinued operations	-	-
Adjustments	2 8	0 2
Adj EBIT	14 2	7 7
Adj EBIT margin	1% 10	0% 6

Definitions and basis of preparation of the financial information

• Adj. EBIT is defined as EBIT adjusted for certain adjustments which management considers to be non-recurring in nature, as Novem believes such items are not reflective of the ongoing performance of the business
• Adj. EBIT margin is defined as Adj. EBIT divided by revenue
• Adj. EBITDA is defined as profit for the year before income tax result, financial result and amortisation, depreciation and write-downs adjusted for certain adjustments which management considers to be non-recurring in nature, as Novem believes such items are not reflective of the ongoing performance of the business
• Adj. EBITDA margin is defined as Adj. EBITDA divided by revenue
• Capital expenditure is defined as the sum of cash paid for investments in property, plant and equipment and cash paid for investments in intangible assets excluding currency translation effects
• Cash conversion is defined as free cash flow divided by Adj. EBITDA
• Days inventory outstanding (DIO) is defined by dividing inventories (as shown in the consolidated statement of financial position, but excluding tooling) by revenue generated from the sale of series trim elements in the last three months
• Days payables outstanding (DPO) is defined by dividing trade payables (as shown in the consolidated statement of financial position, but excluding tooling) by net costs series incurred in the three months
• Days sales outstanding (DSO) is defined by dividing trade receivables (as shown in the consolidated statement of financial position, but excluding tooling) by revenue generated from the sale of series trim elements in the last three months
• EBIT is defined as profit for the year before income tax result and financial result
• EBITDA is defined as profit for the year before income tax result, financial result and amortisation and depreciation
• Free cash flow is defined as the sum of cash flow from operating and investing activities
• Gross financial debt is defined as the sum of liabilities to banks and lease liabilities
• Net financial debt is defined as gross financial debt less cash and cash equivalents
• Net leverage ratio is defined as the ratio of net financial debt to Adj. EBITDA
• Tooling net is defined as all costs and revenue related to tools, tool development and prototypes as well as pre-series business
• Total operating performance is defined as the sum of revenue and increase or decrease in finished goods
• Total working capital is defined as the sum of inventories, trade receivables and contract assets excluding expected losses less trade payables, tooling advance payments received and other provisions related to tooling
• Trade working capital is defined as the sum of inventories non-tooling and trade receivables related to non-tooling less trade payables related to non-tooling

Date of publication

07 August 2025

Contact

investor.relations@novem.com | All information is constantly updated and available. Please visit the Investor Relations Portal on the Company website: https://ir.novem.com

Editor

Novem Group S.A. | 19, rue Edmond Reuter | 5326 Contern | Luxembourg | www.novem.com

Financial information

This presentation contains unaudited financial information for Novem, which may be subject to change.

Disclaimer

Novem Group S.A. (the "Company", "Novem") 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 eventsand 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, the numbers presented may not add up precisely to the totals provided.

Novem Group S.A. 19, rue Edmond Reuter | 5326 Contern | Luxembourg

Email: investor.relations@novem.com www.novem.com