RENK Group AG

Investor Presentation • Mar 27, 2024

Trusted Partner

FY 2023 Investor & Analyst Presentation

27 March, 2024

Disclaimer

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This presentation has been prepared for information and background purposes only. It does not constitute or form part of, and should not be construed as, an offer of, a solicitation of an offer to buy, or an invitation to subscribe for, underwrite or otherwise acquire, any securities of RENK Group AG (the "Company", and together with its subsidiaries, the "Group"), nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or with any other contract, commitment or investment decision whatsoever.

Certain financial data included in this presentation consists of non-IFRS financial measures. These non-IFRS financial measures may not be comparable to similarly titled measures presented by other companies, nor should they be construed as an alternative to other financial measures determined in accordance with IFRS. You are cautioned not to place undue reliance on any non-IFRS financial measures included herein. Past events or performances should not be taken as a guarantee or indication of future events or performance. Financial information presented in parentheses denotes the negative of such number presented. Any assumptions, views or opinions (including statements, projections, forecasts or other for-ward-looking statements) contained in this presentation represent the assumptions, views or opinions of the Company as of the date indicated and are subject to change without notice. All information not separately sourced is from Company data and estimates. To the extent available and unless denoted otherwise, the industry and market data contained in this presentation has been derived from Company estimates as well as official or third-party sources. Market and market share data has been derived from Company estimates as well as official or third-party sources. Market and market share data are based on company internal estimates derived from continuous analysis and aggregation of local management feedback on market share and ongoing market development. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Company believes that each of these publications, studies and surveys has been prepared by a reputable source, the Company has not independently verified the data contained therein. In addition, certain of the industry and market data, if not labelled otherwise, contained in this presentation are derived from the Company's internal research and estimates based on the knowledge and experience of its management in the markets in which it operates. The Company believes that such research and estimates are reasonable and reliable, but their underlying methodology and assumptions have not been verified by any independent source for accuracy or completeness and are subject to change without notice. Accordingly, undue reliance should not be placed on any of the industry or market data contained in this presentation. Information contained in this presentation related to past performance is not an indication of future performance. The information in this presentation is not intended to predict actual results, and no assurances are given with respect thereto.

Certain Information included in this Presentation is taken or derived from third-party market studies or reports, including a market study commissioned by RENK from Roland Berger. Market studies are usually based on certain assumptions and expectations that may not be accurate or appropriate, and their methodology is by nature predictive and speculative and therefore subject to uncertainties. The data reflected in market studies is typically based on other industry publications as well as market research, which itself is based on sampling and subjective judgments by both the researchers and the respondents, including judgments about what types of products and transactions should be included in the relevant market. Accordingly, market studies generally state that the information contained therein is believed to be accurate but that no representation or warranty is given by the market study provider as to the accuracy or completeness of such information and that the opinions and analyses provided in the relevant market study are not representations of fact. The information contained in this presentation has not been independently verified, and no representation or warranty, express or implied, is made by the Company nor its affiliates, advisers, connected persons or any other person as to the fairness, accuracy, completeness or correctness of the information contained herein, and no reliance should be placed on it. Neither the Company nor its affiliates, advisers, connected persons, and/or any third-party provider of industry and market data referred to in this Presentation (including Roland Berger) or any other person accepts any liability for any loss howsoever arising (in negligence or other-wise), directly or indirectly, from this presentation or its contents or otherwise arising in connection with this presentation. This shall not, however, restrict or exclude or limit any duty or liability to a person under any applicable law or regulation of any jurisdiction which may not lawfully be disclaimed (including in relation to fraudulent misrepresentation). This presentation includes "forward-looking statements". These statements contain the words "anticipate", "believe", "intend", "estimate", "expect" or words of similar meaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including cost savings and productivity improvement plans) are forward-looking statements. By their nature, such forwardlooking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the market environment in which the Company will operate in the future. These forward-looking statements speak only as of the date of this presentation. Each of the Company, the relevant subsidiaries and their respective agents, employees and advisers, expressly disclaims any obligation or undertaking to update any forward-looking statements contained herein. You are urged to consider these factors carefully in evaluating the forward-looking statements in this presentation and not to place undue reliance on such statements.

This presentation is confidential and its distribution in certain jurisdictions is restricted by law. Therefore, it must not be distributed, published or reproduced (in whole or in part) or disclosed by its recipients to any other person for any purpose without the Company's consent.

The information contained in this presentation is provided as of the date of this presentation and is subject to change without notice.

Management team (from 1 April 2024)

Years industry experience

1. RENK introduction

2. FY-23 performance

3. Summary and outlook

RENK – snapshot

Sources: Company information, Renaissance Strategic Advisors, Roland Berger where indicated above. Further footnotes summarized at the end of the presentation.

RENK introduction

6

Successful transformation of RENK into a global growth platform

Sources: Company information, Renaissance Strategic Advisors, Roland Berger where indicated above above. Further footnotes summarized at the end of the presentation.

1. RENK introduction

2. FY-23 performance

3. Summary and outlook

Executive summary FY 2023

O d i k t r e r n a e	A l l- i h i h d i k f € 1 3 b ( 1 4 ), t t m e g o r e r n a e o n r e e n e x v u & d i b i i t T t l d r v e n y w n s a c r o s s r e g o n s s e g m e n s o a o r e r f € b k l 4 6 b i D 2 3 a c o g o n n e c-
M i & a r n e I d t n u s r y	M & I h i d i i f i i h i F Y 2 3 i h t t t a c e v e s g n c a n e a r n n g s g r o w n w - f t h i d i t k d i t b i l i t F t h g r o w n o r e r n a e r e v e n u e a n p r o a y. u r e r , , f i t b l N t h t d i F Y 2 4 p r o a a g r o e p e c e n y v y w x -
V M S	H i h- i l d i i l i h i h E B I T d j. i t t t t g s n g e g o p n e g r o a n a m a r g n w w 2 0 % b d i t l h i h l l i l l a o v e e s p e s u p p y c a n c a e n g e s e s p e c a y , d i H 1 2 0 2 3 u r n g
R f i i e n a n c n g	N f i l ( € 2 ) d € 4 0 l i t 5 5 5 t e w v e -y e a r e r m o a n m a n m m u f € ( ) t i l i t 7 5 t l d c u r r e n c y g u a r a n e e a c y, m c u r r e n y u n u s e f S Q l i d i t i l i t h h l d l t t l d i 3 r e o n g c r e a c a r e o e r o a n s e e n v v y. - 2 3 H Y b d i d i F b- 2 4 o n r e p a n e ,
D i i d d l i v e n p o c y	f € % f D i i d d l 2 0 2 3 0 3 0 4 0 t h t t l v e n p r o p o s a o r : o e o a ~ , , d j d i ( € 6 4 ) t t 7 a u s e n e n c o m e m
	f f % f D i i d d l i t 4 0 5 0 d j t d t v e n p o c y o r u u r e y e a r s : o a u s e n e - i n c o m e

Source: Company informationinformation. Further footnotes summarized at the end of the presentation.

Business highlights: Strong defense momentum boosting total order backlog

Commentary

• Fixed order backlog: Orders turned into revenue since Sep-23 compensated by newly contracted order inflow, such as the RSY testing rigs for the US Navy (€45m) as well as the Leopard II A7V transmissions for Norway (€30m) in VMS and an order from the Dutch Navy (€27m) in M&I1
• Frame order backlog: Aftermarket and new business converted by signed frame contracts2
• Soft order backlog: Highly visible sole source projects and successor business until 2027 – increase driven by concretization of upcoming business 3
• Total order backlog of ~€4.6bn and ~5.0x revenue coverage as of Dec-234

Source: Company information. Further footnotes summarized at the end of the presentation.

FY-23 Group performance at a glance

Book-to-bill ratioYoY growth(1)

Commentary

• Increase in order intake to 1.4x revenue driven by significant order wins across regions and segments, with an increase of 32.7% YoY in VMS and 28.5% YoY in M&I (especially in Navy)
• Considerable revenue growth of 9.0% YoY across all segments
• Fixed order backlog increased substantially as of Dec-23 compared to Dec-22 with 26.6% YoY, underlining continued strong demand

Source: Company information. Further footnotes summarized at the end of the presentation.

FY-23 Group performance at a glance (cont'd)

FY-22FY-23Q4-23144 150 46 Adj. EBIT(1), €m Net debt(2), €m FY-22FY-23Q4-23236 258 73 Commentary Dec-2250 391 Dec-23382 441 Translation of strong revenue growth into considerable increase in adj. gross profit and adj. gross profit margin Mainly driven by solid volume growth, higher operating leverage & ongoing efficiency improvements across all segments Achieved despite VMS revenue growth held back by supply chain challenges esp. in H1-2023 Further increase in adj. EBIT reaching €150m in FY-23, as increased overhead costs from our inorganic growth and the strengthening of central functions were more than compensated by higher gross profit Increase in net debt and leverage ratio driven by decrease in cash position mainly resulting from repayment of shareholder loan in Q3-23 (€50m) As a result of our solid financials, S&P Global has upgraded RENK GmbH to 'B+' 27.7% 27.9% 9.7% 3.9% Adj. gross profit, €m 17.0% 16.2% 2.2x 2.4x Thereof €50m impact from repayment of shareholder loan in Q3-23

Adj. EBIT marginNet debt / LTM Adj. EBITDA(3)YoY growth Adj. gross profit margin

Source: Company information. Further footnotes summarized at the end of the presentation.

11

12

Focus on Vehicle Mobility Solutions segment

Segment financials, €m

YoY growthAdj. EBIT margin

Commentary

Substantial increase in order intake by 32.7% YoY especially driven by growth in North America

• Considerable increase in revenue of 8.8% YoY

  • Around 54% resulting from acquisition of General Kinetics (GK) in Jan-23

• Increased organic revenue output anticipated for upcoming months with corresponding build-up of work-inprogress inventory in Q3-23 after significant progress in resolving supply chain bottlenecks

• Positive mix effect resulting in increase in adj. gross profit margin more than compensated by costs incurred for ongoing debottlenecking of production in VMS segment, resulting in moderate decrease in adj. EBIT

13

Focus on Marine & Industry segment

Segment financials, €m

YoY growthAdj. EBIT margin

Commentary

Order intake overall developed favorably, exceeding prior year figures, underlining strong demand, especially driven by Navy

• Considerable revenue growth of 7.3% YoY driven mainly by substantial growth in industry (new business and aftersales)
• Navy revenues down as expected (weak order intake in 2019 and 2021), significant recent order intake indicates trend change; on the back of record order intake on the Navy side, continued positive segment momentum is expected
• After contraction of adj. EBIT and adj. EBIT margin in H1-23, strong recovery in Q3-23 as adj. EBIT increasing by 37.5% YoY while adj. EBIT margin also increased by 2.1 p.p.

Update on FY-23 performance

Focus on Slide Bearings segment

Segment financials, €m

YoY growthAdj. EBIT margin

Commentary

Order intake continues to grow YoY mainly driven by marine horizontal bearings and special client applications

• Continued, significant increase in revenue and adj. EBIT driven by e-bearings and marine horizontal bearings
• Further margin expansion driven by slightly higher share of aftersales business
• As of November 1, Mathias Rusch has been appointed as new CEO of the Slide Bearings segment

Source: Company information. Further footnotes summarized at the end of the presentation.

14

15

Deep-dive into selected P&L positions

Source: Company information. Further footnotes summarized at the end of the presentation.

Adjustments to operating profit mainly relate to M&A activities, inflation compensation premium, severance provisions, and capital market readiness costs

For the period, €m

	2 2 F Y-	2 3 F Y-
O t in f i t p er a g p ro	6 5. 2	8 9. 0
P P A de ia ion d iza ion l l a inc / los fro P P A t t t p re c a n am or a s w e s om e se s m t d isp ls as se os a	6 6. 4	6. 9 4
O in f i be fo P P A de ia io d iza io l l a t t t t t p er a g p ro re p re c n an am or n as w e s in / lo fro P P A d is ls t co m e ss es m as se p os a	1 3 1. 6	1 3 5. 9
M & A iv i la d t ty te ts ac re co s	0. 1	2. 0
f In la t ion t ion ium co m p en sa p re m	3. 3	1 3. 5
Se is ion ve ra nc e p ro v	2 4. 8	1. 7
Ca i ta l m ke t r d ine ts p ar ea ss co s	3 -	3. 1
O t he d j tm ts r a us en	4 4. 5	3. 9
A d j. E B I T	1 4 4. 3	1 5 0. 0
( De ia t ion t iza t ion d im irm t los lu d ing P P A p re c am or a n p a en se s ex c , ) de ia t ion d t iza t ion p re c a n am or	2 9. 9	3 1. 7
A d j. E B I T D A	1 7 4. 3	1 8 1. 7

Commentary

• Expenses for inflation compensation premium of €3.5m1
• Expenses related to severance contracts with key management personnel2
• Cost incurred in the context of achieving capital market readiness 3
• Other adjustments in FY-23 and FY-22 include expenses mainly related to4
  • Expenses for customer and employee events as well as marketing expenses related to RENK's 150-year anniversary
  • Consultancy & advisory expenses for full-potential-plan activities in FY-22, restructuring and introduction of salescampaign-office in FY-23

16Source: Company information. Further footnotes summarized at the end of the presentation.

17

Temporary increase in net working capital due to mitigation of supply chain bottlenecks and resolution of H1-23 challenges in production

Commentary

• Temporary increase in inventory mainly caused by
  • Build-up of raw material and externally sourced components inventory, mainly in VMS, in order to mitigate and reduce risk of supply chain bottlenecks
  • Increase in work-in-progress inventory, also mostly in VMS, as resolution of H1- 23 challenges in production led to temporary bottleneck in final testing, which has been partially reduced in Q4- 23. Yet, projected business growth and project ramp-ups in 2024 might continuously drive working capital requirements
  • Acquisition of General Kinetics
• Positive impact on working capital resulting from growth in trade payables and prepayments received, partially offset by increase in customer receivables in line with business growth

18

Solid cash flow generation from operations despite increase in working capital, providing opportunity to invest in future growth

Key cash flow items, €m

	F Y- 2 2	F Y- 2 3
( 1) A d j. E B I T D A	1 7 4. 3	1 8 1. 7
A d j ( 2) tm ts us en	( 1 2. 9 )	( 1 4. 1 )
Inc ta i d om e xe s p a	( ) 1 0. 7	( ) 2 8. 2
( 3) C ha in t w k ing i ta l ng e ne or c ap	( 2 0. 2 )	( 4 1. 4 ) 1
Ca ( 4) p ex	( ) 2 6. 0	( ) 2 8. 1 2
O ( 5) t he r	( 1 1. 1 )	( 2 2. 1 )
Un lev d fre h f lo er e e ca s w	9 3. 3	4 7. 8 3
In te t p ts re s ay m en	( ) 2 9. 8	( ) 2 6. 7
f Fr h lo ee c as w	6 3. 5	2 1. 1
Ac is i ion ( 6) t q s u	–	( 3 4. 3 ) 4
f s ( 7) Re t o ha ho l de loa p ay m en re r n	–	( ) 5 0. 0 5
C ha in h & h iva le ( M & A d f ts t t o ng e c as ca s eq n p os an re p ay m en u ha ho l de lo ) s re r an	6 3. 5	( 6 3. 2 )

Commentary

• Negative change in net working capital driven by 1

  • Build-up of inventories (€41.2m) of raw materials and externally sourced components to mitigate and reduce risk of supply chain bottlenecks as well as increase in work-in-progress inventory, both mainly in VMS segment

• Increase of trade receivables and contract assets of €47.8m in line with the considerable increase in revenues, partially offset by an increase in trade payables of €55.4m

• Capex in FY-23 in line with prior year at 3.0% of FY-23 revenue 2
• Continuously strong operational cash generation in FY-23 reflecting stable operating performance despite increase in net working capital3
• Related to acquisition of General Kinetics closed in Jan-234
• Related to repayment of shareholder loan to Rebecca BidCo in Q3-23 (€50m)5

Increase in net debt impacted by repayment of shareholder loan

Net debt(1), €m

19

Commentary

• Increase in net debt and net leverage driven by decrease in cash and cash equivalents resulting from
  • Repayment of shareholder loan with Rebecca BidCo in Q3-23 (€50m)
    • o Shareholder loan with Rebecca BidCo originally amounted to ~€95m
    • o During Q3-23, shareholder has contributed €45m as contribution-inkind into RENK's equity
  • Acquisition of General Kinetics in Jan-23 (€34.5m)

1. RENK introduction

2. FY-23 performance

3. Summary and outlook

Guidance

21

Guidance

Key highlights FY Q1 2024

P b l i L i t i u c s n g	S f f S l l i t i F k t t k E h i t h u c c e s s u s n g o n r a n u r o c x c a n g e w 2 % f f l d l i d h i f 7 t r e e o a a n s o s a r e p r c e p e r o r m a n c e ~ ( f i i d i d ) t t o u p e r o r m n g c o u n r y n c e s a n p e e r s
M d 's t i o o y r a n g d u p g r a e	M d 's h d d R E N K G b H t 'B 3 ' i t h o o a s p g r a e m o a y u w i i l k, d i b b d i i d t t t t t p o s v e o u o o r v e n y r o u s c r e m e r c s a n a f t i b l d i i l l i c o n s e r v a v e a a n c e n a n c a p o c y ,
R f i i e n a n c n g l t d c o m p e e	N f i l ( € 5 2 5 ) d € 4 5 0 l i t t e e e a r e r m o a n m a n m m w v -y u f € ( ) t i l i t 7 5 t l d c u r r e n c y g u a r a n e e a c y, m c u r r e n y u n u s e f l i d i t i l i t H Y b d i d i F b- 2 4 r e v o v n g c r e a c y. o n r e p a n e T l i l h d d i F b- 2 4 t t t t e r m o a n n e r e s r a e p a r y e g e n e -
S h i t t r e n g e n n g f O i t o p e r a o n s	D E i h S h i l l j i d M D P d i t r. m m e r c c e r o n e a s n e w r o u c o n S C d l h i 1 F b 2 0 2 4 a n u p p y a n o n e r u a r y ; D A l d S l i l l j i b d b f r. e a n e r a g e o n a s n e o a r m e m e r o x w w R E N K G A G f A i l 1 r o u p a s o p r
O d i k t r e r n a e	O d i l i i i h l i d b d t t r e r p p e n e r e m a n s s r o n g w s o a s e o r e r s ( f ) i l d i t k t k l l i i n c u n g a e r m a r e p a c a g e s a s w e a s p r o m s n g l l d h l d b d d d i 2 0 2 4 t t a r g e -s c a e o r e r s a c o e a a r e r n g u w u

Priorities and key challenges for 2024

O t t p u u i V M S n c r e a s e	A l i f f i d b k l d t t c c e e r a e e x e c u o n o v e -y e a r o r e r a c o g a n t h i l l i A b r e e n e g r o e s p e c a n g s r g v u w y u u ,
O i l t p e r a o n a E l l c e e n c e x A i m e r c a s	T k f i i l f f R E N K A i h t t a e n a n c a p e r o r m a n c e o m e r c a s o e f t l l R d d b k l i t h i i i t n e x e v e : e c o r o r e r a c o g w s g n c a n i l i i F Y 2 3 b d i t t t c o m m e r c a n s n o e c o n e r e n o w v - f i b l t p r o a e r e v e n u e s
N W C t i i t i o p m s a o n	W h i l N W C i i d t f i l i t t t i f t h e s r e q r e o a c a e e e c o n o e u x u d i b k l b i t t t s r o n g a n g r o w n g a c o g m e a s u r e s o e p u n , C l t d t t l N W l l p a c e o r e u c e s r u c u r a e v e
O d i t k r e r n a e	P i i d i l i i t h t t t i t i l d r o m s n g o r e r p p e n e w a r a c v e n a o n a a n , i i l j i i t t t t t n e r n a o n a p r o e c o p p o r u n e s
F i h t t o s e r n g e d i l i h t a o g e u w i t n e s o r s v	f F t i t d i l t t i i l r e q u e n n v e s o r a o g u e r a n s p a r e n n a n c a , i i l N D R d f t c o m m n c a o n s e e r a s a n c o n e r e n c e u v , i i i d i h i h t t t t p a r c p a o n s u r n g e c o m n g m o n s

Financial Calendar H1 2024

April 2024:

• •London Roadshow (9 Apr)
• •Paris Roadshow (10 Apr)
• • Frankfurt Roadshow (15 Apr)

May 2024:

• •Q1 2024 Quarterly Statement (15 May)
• •Hauck & AufhäuserStockpickerSummit(16/17 May)
• •BerenbergConference NYC (21 May)
• • dbAccess Conference Dt. Bank, Frankfurt (22/23 May)

June 2024:

• •EurosatoryParis Investor Meetings (18/19 June)
• • Annual General Meeting (26 June)

**********

September 2024:

• Capital Markets Day (10 September)

Q & A SESSION

Question & Answers?

TRUSTED PARTNER

Thanks for your attention

Investor Relations Ingo Schachel, Head of IR Phone: +49 821 5700 1439 E-Mail: investors@renk.com www.ir.renk.com

RENK Group / Company presentation

/ March 2023

RENK Group AG

Goegginger Straße 73 D-86159 Augsburg Germany www.renk.com

Management Board: Susanne Wiegand (Chairman), Christian Schulz Supervisory Board: Claus von Hermann (Chairman) Registration Court: District court of Augsburg, HRB 39189 VAT ID number: DE 363351811

APPENDIX

27

Income statement

For theperiod, €m

	F Y 2 0 2 2	F Y 2 0 2 3
Rev enu e	849 .0	925 .5
A(1 ) Co f sa les cl. PP st o ex	( 617 .7)	( 669 .9)
Gro fit ss pro	231 .2	255 .6
Oth atin inc er o per g om e	11. 3	11. 6
Ne t al low fina nci al a ts anc es on sse	2.3	( 0.5 )
Dis trib utio n e xpe nse s	( 48. 1)	( 51. 7)
Ge al a dm inis trat ive ner ex pen ses	( 49. 8)	( 66. 0)
Oth atin er o per g e xpe nse s	( 15. 3)	( 13. 1)
Op tin rof it b efo PP A era g p re	131 .6	135 .9
A(1 ) PP	( 66. 4)	( 46. 9)
Op tin rof it a fte r P PA era g p	65. 2	89. 0
Inte t ex res pen ses	( 7) 41.	( 8) 39.
Oth er f ina nci al ult res	( ) 8.7	( 2.6 )
Fin ial ult anc res	( 4) 50.	( 4) 42.
Pro fit bef ta ore xes	14. 8	46. 6
Inc e ta om x e xpe nse	1.4	( 14. 3)
Pro fit afte r ta x	16. 1	32. 3

Note: Due to commercial rounding of amounts on the basis of € million, minor deviations may occur on addition

Balance sheet – Total assets

As of, €m

28

28

	De 3 1, 2 0 2 2 c	De 3 1, 2 0 2 3 c
Inta ible set ng as s	389 .0	383 .9
Pro ty, lan t an d e ipm ent per p qu	323 .0	319 .0
Oth er f ina nci al i stm ent nve s	21. 9	9.4
Def d ta ts erre x a sse	13. 7	18. 2
Oth nt f ina nci al a ts er non -cu rre sse	2.0	0.4
Oth nt r iva ble er non -cu rre ece s	2.4	4.8
No ent set n-c urr as s	751 .9	735 .7
Inv ent orie s	275 .6	326 .2
Tra de eiv abl rec es	144 .7	163 .3
Co ntra ct a ts sse	83. 5	96. 6
Cu t in e ta cei vab les rren com x re	5.6	8.6
Oth nt f ina nci al a ts er c urre sse	10. 7	24. 4
Oth nt r iva ble er c urre ece s	12. 0	15. 6
Ca sh and sh iva len ts ca equ	158 .7	102 .2
Cu nt a ts rre sse	690 .7	736 .9
Tot al	144 2.7	147 2.6

Note: Due to commercial rounding of amounts on the basis of € million, minor deviations may occur on addition

Balance sheet – Total equity and liabilities

As of, €m

29

29

	De 3 1, 2 0 2 2 c	De 3 1, 2 0 2 3 c
Su bsc ribe d c ital ap	0.0	100 .0
Ca ital p re ser ves	308 .6	223 .8
Re tain ed nin ear gs	-7. 1	57. 5
Cu lati oth hen siv e in mu ve er c om pre com e	23. 0	22. 5
f R G Equ ity attr ibu tab le t har eho lde EN K A o s rs o	-	403 .8
Equ ity attr ibu tab le t tro lling int sts o n on- con ere	-	0.1
of w hic h n tro lling int sts in sol ida ted t in e fo r th on- con ere con ne com e y ear	-	0.0
Eq uity	324 .5	403 .9
nt f No ina nci al l iab ilitie n-c urre s	617 .7	527 .5
Pe nsi vis ion on pro s	1.5	2.0
Def d ta x li abi litie erre s	77. 9	73. 0
Co ntra ct l iab ilitie t s, n on- cur ren	72. 8	44. 1
Oth nt p isio er non -cu rre rov ns	11. 3	11. 0
Oth nt f ina nci al l iab ilitie er non -cu rre s	0.3	3.8
Oth nt l iab ilitie er non -cu rre s	0.0	0.0
No ent lia bili ties d p isio n-c urr an rov ns	781 .4	661 .3
Cu t fin ial liab ilitie rren anc s	17. 7	18. 6
Inc x li abi litie e ta om s	9.5	13. 2
Tra de ab les pay	66. 6	123 .6
Co ntra ct l iab ilitie nt s, c urre	141 .3	171 .8
Cu t in ble e ta rren com x p aya s	7.2	-
Oth isio t p er cur ren rov ns	65. 2	40. 3
Oth t fi cia l lia bili ties er cur ren nan	2.6	1.3
Oth nt l iab ilitie er c urre s	33. 8	38. 5
Cu nt liab iliti and ovi sio rre es pr ns	336 .8	407 .4
Tot al	144 2.7	147 2.6

Note: Due to commercial rounding of amounts on the basis of € million, minor deviations may occur on addition

30

Cash flow statement

For theperiod, €m

	F Y- 2 2	F Y- 2 3
Ca sh and sh iva len at b inn ing of rio d ts ca equ eg pe	97. 5	158 .7
Pro fit b efo re t axe s	14. 8	46. 6
Inc e ta id om xes pa	-10 .7	-28 .2
De cia tion d a rtiz atio n ( inc l. im irm n in ) ent tme nts pre an mo pa s o ves	97. 9	79. 7
Ch e in nsi vis ion nd liab ilitie ang pe on pro s a s	-4.2	-2.6
Ga ins /los fro t di sal ses m a sse spo s	0.6	0.0
Oth sh and inc er non -ca exp ens es om e	-16 .8	-3.2
Ch e in inv orie iva ble nd oth vis ion ent ont t as set ang s, r ece s, c rac s a er pro s	-16 .1	-58 .5
Fin ial ult anc res	50. 4	42. 4
Ca sh flow s f tin ctiv itie rom op era g a s	115 .8	76. 2
Pa ent s to ire ty, lan t an d e ipm ent d in tan ible set ym ac qu pro per p qu an g as s	-26 .0	-28 .1
Acq uis itio f su bsi dia ries n o	0	-34 .3
Pro ds fro et dis als cee m ass pos	0.7	0.1
Ca sh flow s fr sh dep osi ts om ca	0.9	1.4
Div ide nd inc om e	1.8	0.4
Ca sh flow s f inv est ing tivi ties rom ac	-22 .5	-60 .9
Equ ity trib utio con ns	0	1.9
Ch in c ash ol ang es po	2.1	0.2
Oth han in fina nci al a ts a nd liab ilitie er c ges sse s	-4.5	-50 .0
Inte t a nd lea nts res se pay me	-31 .9	-28 .9
Ca sh flow s f fin ing tivi ties rom anc ac	-34 .3	-76 .8
Eff ect of han rate ch h a nd h e iva len ts exc ge ang es on cas cas qu	2.1	-0.3
Eff of of c ect cha s in ba sis olid atio ash d c ash uiv ale nts nge ons n o n c an eq	0	4.9
Ch e i ash d c ash uiv ale nts ang n c an eq	61. 1	-56 .5
Ca of sh and sh iva len ts at e nd iod ca equ per	158 .7	102 .2
Ca flow s fr sh loa cei vab les om n re	1.8	0.3
Re stri d c ash cte	7.9	6.4
Gr liq uid ity nd of iod at e oss per	168 .4	109 .0
Fin ial liab ilitie anc s	-63 3	-63 5.4
Ne t liq uid ity nd of iod at e per	-46 4.7	-52 6.4

Note: Due to commercial rounding of amounts on the basis of € million, minor deviations may occur on addition

RENK 2023 group performance at a glance

Endnotes (1/4)

p.2

(1) 25 years industry experience including >20 years in defense

(2) 25 years industry experience including >18 years in defense

p.5

(1) Market CAGR of ~10% calculated as a blended rate by weighting 2022-27 CAGRs of total addressable market for defense (12.9% as per Renaissance market study) and civil (4.7% as per Roland Berger market study) with the defense / civil revenue split of around 70% / 30% in 2022A. Global defense addressable market defined as total military vehicle and naval addressable markets, incl. new build, upgrade and overhaul, as of 2022A, based on RENK product portfolio used in defense applications, excluding platforms of Chinese origin in-service outside of China and embargoed countries, i.e. Afghanistan, Belarus, Benin, China, Central African Republic, Cuba, DPRK, DRC, Eritrea, Iran, Iraq (not embargoed, but excluded), Libya, Myanmar, Russia, Somalia, South Sudan, Syria, Venezuela, Yemen, Zimbabwe (the "Embargo(ed) Countries"), as per Renaissance market study; global civil addressable market defined as total annual spend in commercial marine & industrial applications (incl. gearboxes, couplings, slide bearings and test systems) including new build and aftermarket comprising service, spare parts and software updates, based on 2022A (as per Roland Berger market study)

(2) Total order backlog comprised of fixed order backlog, frame order backlog and soft order backlog; Fixed order backlog represents with respect to binding customer contracts and purchase orders concluded and/or received the portion of the associated transaction price for which the amount of revenue has not yet been recognized in accordance with IFRS; Frame order backlog includes signed frame contracts or prolongation character of linked frame contracts with fixed annual volumes or volume estimates based on customer information or historical call offs over the entire contract duration, booked for the period of the frame contract term; Soft order backlog includes estimated volumes of sole source projects and successor business until 2027 based on public information and customer information, booked for the period Jan 24 to Dec 27

(3) Based on 2023A revenue split, defense and civil are defined by end market product application

(4) Refers to systems / subsystems, such as transmissions for tracked military vehicles, gearboxes for large naval surface combatants and slide e-bearings, that are critical for the mechanical operation of military vehicles & vessels. Based on being "positioned on 75% of NATO & Allied tracked vehicles" and "RENK provides mission-critical mechanical systems and subsystems at various stages in the lifecycle" (as per Renaissance market study based on 2022)

(5) Includes any product with RENK's presence on tracked military vehicles by number of installed base globally (2022A), excluding platforms of Russian and Chinese origin in-service outside of Russia and China and Embargo Countries (as per Renaissance market study)

(6) Based on 2023A revenues, reconciliation to reported figures: EMEA includes Germany, other EU Countries, other European Countries and Africa; Americas includes Americas; APAC includes Asia and Australia and Oceania

(7) Adj. EBIT is defined as operating profit before the PPA depreciation and amortization as well as income / losses from PPA asset disposals and adjusted for certain items which management considers to be exceptional or non-recurring in nature. EBIT margin and adj. EBIT margin are defined as EBIT or adj. EBIT, as applicable, divided by revenue

(8) 2023A revenue split; New build refers to new product sales; aftermarket refers to depot MRO (maintenance, repair, overhaul) and upgrades of products and platforms, incl. spare parts and other aftermarket services; replacement of installed RENK products in defense applications is considered as aftermarket and

in civil applications as new build

p.6

(1) 2019A EBIT displays EBIT unadjusted based on the as-if consolidated income statement information for the former RENK AG for the twelve-month period ended 31 December 2019; Adj. EBIT is defined as operating profit before the PPA depreciation and amortization as well as income / losses from PPA asset disposals and adjusted for certain items which management considers to be exceptional or non-recurring in nature. EBIT margin and adj. EBIT margin are defined as EBIT or adj. EBIT, as applicable, divided by revenue. For a detailed breakdown of EBIT adjustments, please refer to the page "Adjustments to operating profit"

(2) Refers to 2020-2023 cumulative capex and R&D investments as well as acquisition costs related to General Kinetics (signed and closed in 2023) and L3 Magnet-Motor GmbH and the Combat Propulsion Systems from L3Harris. R&D investments refer to business-sponsored ("self-funded") research and development (R&D) costs expensed as incurred; does not include customer-sponsored R&D costs incurred pursuant to contractual arrangements; capex defined as payments to acquire property, plant and equipment and intangible assets

(3) Market CAGR of ~10% calculated as a blended rate by weighting 2022-27 CAGRs of total addressable market for defense (12.9% as per Renaissance market study) and civil (4.7% as per Roland Berger market study) with the defense / civil revenue split of around 70% / 30% in 2023A. Global defense addressable market defined as total armored vehicle and naval addressable markets, incl. new build, upgrade and overhaul, as of 2022A, based on RENK product portfolio used in defense applications, excluding platforms of Chinese origin in-service outside of China and Embargo Countries (as per Renaissance market study); global addressable civil market defined as total annual spend in commercial marine & industrial applications (incl. gearboxes, couplings, slide bearings and test systems) including new build and aftermarket comprising service, spare parts and software updates, based on 2022A (as per Roland Berger market study)

Endnotes (2/4)

p.9

(1) Defined as total order backlog as of Dec-23 / LTM revenue for the period ended December 31, 2023. Total order backlog comprised of fixed order backlog, frame order backlog and soft order backlog

(2) Fixed order backlog represents with respect to binding customer contracts and purchase orders concluded and/or received the portion of the associated transaction price for which the amount of revenue has not yet been recognized in accordance with IFRS

(3) Frame order backlog includes signed frame contracts with fixed annual volumes or volume estimates based on customer information or historical call offs over the entire contract duration, booked for the period of the frame contract term. The numbers as of 31.12 include a contract with the character of a binding follow-up contract with the amount of €0.2bn

(4) Soft order backlog includes estimated volumes of sole source projects and successor business until 2027 based on public information and customer information, booked for the period Jan 24 to Dec 27

p.10

(1) Book-to-bill ratio defined as order intake / revenue

(2) Fixed order backlog represents with respect to binding customer contracts and purchase orders concluded and/or received the portion of the associated transaction price for which the amount of revenue has not yet been recognized in accordance with IFRS

p.11

(1) Adj. EBIT is defined as operating profit before the PPA depreciation and amortization as well as income / losses from PPA asset disposals and adjusted for certain items which management considers to be exceptional or non-recurring in nature. Adj. EBIT margin are defined as adj. EBIT divided by revenue.

(2) Net debt includes senior secured notes, and lease liabilities less cash and cash equivalents based on the carrying amounts in the IFRS financial statements

(3) LTM Adj. EBITDA is defined as operating profit before depreciation, amortization and impairment losses on intangible assets and property, plant and equipment, the PPA depreciation and amortization as well as income / losses from PPA asset disposals and adjusted for certain items which management considers to be exceptional or non-recurring in nature. For a detailed breakdown of EBIT adjustments, please refer to the page "Adjustments to operating profit"

p.12

(1) Adj. EBIT is defined as operating profit before the PPA depreciation and amortization as well as income / losses from PPA asset disposals and adjusted for certain items which management considers to be exceptional or non-recurring in nature. Adj. EBIT margin is defined as adj. EBIT divided by revenue. For a detailed breakdown of EBIT adjustments, please refer to the page "Adjustments to operating profit"

p.13

(1) Adj. EBIT is defined as operating profit before the PPA depreciation and amortization as well as income / losses from PPA asset disposals and adjusted for certain items which management considers to be exceptional or non-recurring in nature. Adj. EBIT margin is defined as adj. EBIT divided by revenue. For a detailed breakdown of EBIT adjustments, please refer to the page "Adjustments to operating profit"

p.14

(1) Adj. EBIT is defined as operating profit before the PPA depreciation and amortization as well as income / losses from PPA asset disposals and adjusted for certain items which management considers to be exceptional or non-recurring in nature. Adj. EBIT margin is defined as adj. EBIT divided by revenue. For a detailed breakdown of EBIT adjustments, please refer to the page "Adjustments to operating profit"

p.15

(1) Adj. gross profit defined as revenue minus cost of sales before the depreciation and amortization effect of purchase price allocations and adjusted for certain items which management considers to be exceptional or non-recurring in nature

(2) Adj. distribution expenses means distribution expenses and adjusted for certain items which management considers to be exceptional or non-recurring in nature

(3) Adj. general and administrative means general and administrative expenses and adjusted for certain items which management considers to be exceptional or non-recurring in nature

(4) Based on LTM revenue

Endnotes (3/4)

p.17

(1) Comprises contract assets and trade receivables excluding customer prepayment receivables

(2) Comprises contract liabilities excluding liabilities from customer prepayment receivables

(3) Calculation of 2021A net working capital as % of revenue based on 2021A revenue €698m plus revenue of €110m that would have been taken into account if the acquisition of RENK America and Magnet Motor had closed on 1st January 2021

p.18

(1) Adj. EBITDA is defined as operating profit before depreciation, amortization and impairment losses on intangible assets and property, plant and equipment, the PPA depreciation and amortization as well as income / losses from PPA asset disposals and adjusted for certain items which management considers to be exceptional or non-recurring in nature

(2) For a detailed breakdown of EBIT adjustments, please refer to the page "Adjustments to operating profit"; includes additional impact on EBITDA from PPA depreciation and amortization as well as income / losses from PPA asset disposals in FY-22 and FY-23, respectively

(3) Includes change in inventories, receivables and contract assets, and changes in provisions and liabilities

(4) Capex defined as payments to acquire property, plant and equipment and intangible assets

(5) Includes write-downs / reversals on other and financial investments, gains / losses from asset disposals, non-cash expenses and income, proceeds from asset disposals, cash flows from cash deposits, effects of exchange rate change on cash and cash equivalents, effects of changes in basis of consolidation on cash and cash equivalents, and in FY-23 also cash and cash equivalents related to the acquisition of General Kinetic Cash (€210k)

(6) Includes acquisition of subsidiaries, acquisition of non-controlling interest and in FY-23 less cash and cash equivalents related to the acquisition of General Kinetic Cash (€210k)

(7) Includes repayment of shareholder loan (€50m)

p.19

(1) Net financial debt includes senior secured notes, and lease liabilities less cash and cash equivalents based on the carryingamounts in the IFRS financial statements

(2) Adj. EBITDA is defined as operating profit before depreciation, amortization and impairment losses on intangible assets and property, plant and equipment, the PPA depreciation and amortization as well as income / losses from PPA asset disposals and adjusted for certain items which management considers to be exceptional or non-recurring in nature.

p.20

(1) Adj. EBIT is defined as operating profit before the PPA depreciation and amortization as well as income / losses from PPA asset disposals and adjusted for certain items which management considers to be exceptional or non-recurring in nature. Adj. EBIT margin is defined as adj. EBIT divided by revenue.

Endnotes (4/4)

p.24

(1) Based on market CAGR of ~10% calculated as a blended rate by weighting 2022-27 CAGRs of total addressable market for defense (12.9% as per Renaissance market study) and civil (4.7% as per Roland Berger market study) with the defense / civil revenue split of around 70% / 30% in 2022A. Global defense addressable market defined as total military vehicle and naval addressable markets, incl. new build, upgrade and overhaul, as of 2022A, based on RENK product portfolio used in defense applications, excluding platforms of Chinese origin in-service outside of China and Embargo Countries (as per Renaissance market study); global civil addressable market defined as total annual spend in commercial marine & industrial applications (incl. gearboxes, couplings, slide bearings and test systems) including new build and aftermarket comprising service, spare parts and software updates, based on 2022A (as per Roland Berger market study)

(2) Refers to leadership positions for transmissions for tracked military vehicles (Based on 2022A; overall positioning across all tracked categories including main battle tanks (MBT), tracked infantry fighting vehicles (IFV), tracked self-propelled howitzers (SPH), tracked military personnel carriers (APCs) and specialized support vehicles by number of installed base globally (2022A), excluding platforms of Russian and Chinese origin in-service outside of Russia and China and Embargoed Countries, as per Renaissance market study) gearboxes for large naval surface combatants (Based on overall positioning for gearboxes with a global share of 32% across large naval surface combatants (frigates, destroyers, corvettes and amphibious assault ships), based on 2022A, by number of installed base of gearbox products (excluding slip rings) of large surface combatants globally, excluding platforms of Russian and Chinese origin in-service outside of Russia and China and Embargo Countries, as per Renaissance market study), turbo-gear solutions for industrial applications (Based on 2022A market share of RENK's total addressable market by value in turbo-gear solutions in industrial application globally, as per Roland Berger market study) and Slide E-bearings (Based on 2022A market share of RENK's total addressable market by value in standardized slides bearings (E-bearings) globally, as per Roland Berger market study).

(3) 2023A revenue split, aftermarket refers to depot MRO (maintenance, repair, overhaul) and upgrades of products and platforms, incl. spare parts and other aftermarket services; replacement of installed RENK products in defense applications is considered as aftermarket and in civil applications as new build

(4) Adj. EBIT is defined as operating profit before the PPA depreciation and amortization as well as income / losses from PPA asset disposals and adjusted for certain items which management considers to be exceptional or non-recurring in nature. Adj. EBIT margin are defined as adj. EBIT divided by revenue. For a detailed breakdown of EBIT adjustments, please refer to the page "Adjustments to operating profit"

(5) Total order backlog comprised of fixed order backlog, frame order backlog and soft order backlog

p.28

(1) Not part of the IAS 34 financial statement.

p.31

(1) Acquisition price was €34.5m but includes €0.2m cash from GK recognized separately in cash flow statement

p.31

(1) Refers to systems / subsystems, such as transmissions for tracked military vehicles, gearboxes and bearings that are critical for the mechanical operation of military vehicles & vessels. Based on being "positioned on 75% of NATO & Allied tracked vehicles" and "RENK provides mission-critical mechanical systems and subsystems at various stages in the lifecycle" (as per Renaissance market study)

(2) Adj. EBIT is defined as operating profit before the PPA depreciation and amortization as well as income / losses from PPA asset disposals and adjusted for certain items which management considers to be exceptional or non-recurring in nature. EBIT margin and adj. EBIT margin are defined as EBIT or adj. EBIT, as applicable, divided by revenue

(3) As of December 2023. Total order backlog comprised of fixed order backlog, frame order backlog and soft order backlog; Fixed order backlog represents with respect to binding customer contracts and purchase orders concluded and/or received the portion of the associated transaction price for which the amount of revenue has not yet been recognized in accordance with IFRS; Frame order backlog includes signed frame contracts or prolongation character of linked frame contracts with fixed annual volumes or volume estimates based on customer information or historical call offs over the entire contract duration, booked for the period of the frame contract term; Soft order backlog includes estimated volumes of sole source projects and successor business until 2027 based on public information and customer information, booked for the period Jan 24 to Dec 27

(4) Based on 2022A revenue split, defence and civil are defined by end market product application

(5) Based on 2022A revenues, reconciliation to reported figures: EMEA includes Germany, other EU Countries, other European Countries and Africa; Americas includes North and South America; APAC includes Asia and Australia and Oceania