Stabilus SE

Earnings Release • Jan 29, 2024

Q1 FY2024 RESULTS

ANALYST & INVESTOR WEB CONFERENCE JANUARY 29, 2024

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.

KEY MESSAGES

Closing of the DESTACO acquisition on track and expected as planned until end of February 2024.

Stabilus revenue has grown by 5% y/y in Q1 FY24, despite challenging environment (especially in Americas)

Particularly strong growth in APAC1 ( 21.9% y/y) and EMEA ( 8.2% y/y)

Market segments Automotive, HRF, AMR and CV were driving the growth.

Continuing strong FCF generation, NWC reduced, net leverage ratio reduced to 0.2

Investment in the development of radar technology to drive future growth

We expect FY2024 to show back-end loaded results, as in the past two FY. Despite softer margin in Q1, we confirm our FY2024 guidance.

STABILUS GROUP IN Q1 FY2024

CONTINUING STRONG REVENUE GROWTH AND FCF GENERATION

32.7 36.2 Q1 FY23 Q1 FY24

Revenue 5.1% y/y

• › Strong growth in APAC1 and EMEA
• › Strong growth in Automotive, HRF, AMR and CV

Adj. EBIT margin 30bp y/y

• › Challenging market environment in Americas
• › Continuing high raw material and labor cost inflation

Profit margin 1.7pp y/y

› Negative impact from advisory and integration costs for announced acquisition of DESTACO

Adj. FCF % revenue 70bp y/y

• › NWC/revenue ratio further improved
• › Acquisition-related costs of €3.7m adjusted (PY: €0.3m)

BUSINESS DEVELOPMENT BY REGION IN Q1 FY2024

Very strong and profitable growth in APAC Strong growth and margin improvement in EMEA

CHALLENGING MARKET ENVIRONMENT IN AMERICAS

REVENUE (€M)

Revenue 9.2% y/y

• › Revenue in all market segments negatively affected
• › In absolute terms (in €m) particularly soft business in EC1 and APR, reflecting lower LVP, negative impacts from strikes and short-term call-off changes in December

• › High raw material and labor cost inflation

• › Product mix effect: revenue dip in market segments with above-average margins

STRONG REVENUE GROWTH AND MARGIN IMPROVEMENT IN EMEA Y/Y

REVENUE (€M)

Q1 FY23 Q1 FY24

Revenue 8.2% y/y

• › Revenue growth driven by Automotive (APR1 as well as AGS), HRF, AMR and CV
• › Softer business particularly in EC

Adj. EBIT margin 3.6pp y/y

• › Stringent cost management and efficiency increasing measures
• › Initiatives to recover the margin bear fruit

VERY STRONG AND PROFITABLE GROWTH IN ASIA-PACIFIC

REVENUE (€M)

15.4 18.0

Q1 FY23 Q1 FY24

Revenue 21.9% y/y

• › Revenue growth in all market segments
• › Particularly strong Automotive business, both in APR1 and AGS

Adj. EBIT margin 0.9pp y/y

• › Stable margin on a high level, well above group average
• › Slight decrease from a record 21.3% in PY due to the product mix effect: faster growing Automotive business

BUSINESS DEVELOPMENT BY MARKET SEGMENT

ICON	MARKET SEGMENT	% CHANGE Y/Y
	Automotive	10% 
	Distributors, Independent Aftermarket, E commerce (DIAMEC)	2% 
	Commercial Vehicles (CV)	 5%
	Health, Recreation & Furniture (HRF)	 21%
	Industrial Machinery & Automation (IMA)	8% 
	Energy & Construction (EC)	42% 
	Aerospace, Marine & Rail (AMR)	52% 

Strong growth in AMR, HRF, Automotive and CV.

NWC/REVENUE RATIO FURTHER IMPROVED

› NWC/revenue ratio improved y/y and q/q in Q1 FY24

HIGHER CAPEX TO DRIVE FUTURE GROWTH

• › Higher capex in the last three quarters
• › Investment in radar technology
• › This investment will facilitate and drive our future revenue growth with DA90 actuator systems

FURTHER DELEVERAGING TO NET LEVERAGE RATIO OF 0.2

SOLID FINANCING STRUCTURE FACILITATING FURTHER GROWTH

Net financial debt as of end of quarter in €m | Net leverage ratio = net financial debt / LTM adj. EBITDA

CONFIRMING FY2024 GUIDANCE

	FY2023 Actual	FY2024 Guidance
Revenue	€1,215.3m	€1.4bn - €1.5bn
Adj. EBIT margin	13.0%	13% -14%

ASSUMPTIONS:

GDP GROWTH

• › + 2.9% in CY2024 (October 2023 IMF World Economic Outlook)
• › + 2.7% in CY2024 (OECD, September 2023)

› +1.0% to c. 88.7m vehicles in FY2024 (IHS Markit, October 2023)

› +5.2% in CY2024 (ifo Institute)

For further details and our outlook by region please refer to our 2023 Annual Report, p. 69 ff.

¹⁴ MOTION CONTROL

APPENDIX

¹⁵ MOTION CONTROL

REVENUE AND ADJUSTED EBIT MARGIN BY QUARTER

REVENUE OVERVIEW

THREE MONTHS ENDED DECEMBER 31, 2023

REVENUE (€M)

	Q1 FY2023 Actual	Q1 FY2024 Actual	Change	% change	Acquisition effect	Currency effect	Organic growth
Automotive Gas Spring	26.2	30.2	4.0	15.3%	8.8%	0.0%	6.5%
Automotive Powerise	26.8	28.7	1.9	7.1%	0.0%	(1.1)%	8.2%
Industrial	56.2	59.3	3.1	5.5%	2.6%	(1.9)%	4.8%
EMEA	109.2	118.2	9.0	8.2%	3.5%	(1.2)%	5.9%
Automotive Gas Spring	27.7	27.7	-	0.0%	0.0%	(0.5)%	0.5%
Automotive Powerise	42.0	39.4	(2.6)	(6.2)%	0.0%	5.4%	(11.6)%
Industrial	39.4	32.0	(7.4)	(18.8)%	0.0%	(7.8)%	(11.0)%
AMERICAS	109.2	99.1	(10.1)	(9.2)%	0.0%	(0.9)%	(8.3)%
Automotive Gas Spring	28.2	31.5	3.3	11.7%	1.5%	(7.5)%	17.7%
Automotive Powerise	39.0	50.6	11.6	29.7%	0.0%	(8.4)%	38.1%
Industrial	5.2	6.0	0.8	15.4%	2.0%	(7.9)%	21.3%
APAC	72.3	88.1	15.8	21.9%	0.7%	(8.0)%	29.2%
Total Automotive Gas Spring (AGS)	82.1	89.4	7.3	8.9%	3.3%	(2.7)%	8.3%
Total Automotive Powerise (APR)	107.8	118.7	10.9	10.1%	0.0%	(1.2)%	11.3%
Total Industrial (IND)	100.8	97.3	(3.5)	(3.5)%	1.7%	(4.5)%	(0.7)%
Total	290.7	305.4	14.7	5.1%	1.5%	(2.8)%	6.4%

P&L OVERVIEW AND ADJUSTED EBIT

THREE MONTHS ENDED DECEMBER 31, 2023

	Q1 FY2023 Actual	Q1 FY2024 Actual	Change	% change
Revenue	290.7	305.4	14.7	5.1%
Cost of sales	(218.2)	(230.9)	(12.7)	5.8%
Gross Profit	72.5	74.5	2.0	2.8%
% margin	24.9%	24.4%
R&D expenses	(9.5)	(8.1)	1.4	(14.7)%
Selling expenses	(23.8)	(26.5)	(2.7)	11.3%
Administrative expenses	(10.5)	(21.2)	(10.7)	>100.0%
Other income/expenses	0.4	1.6	1.2	>100.0%
EBIT	29.1	20.3	(8.8)	(30.2)%
% margin	10.0%	6.6%
Finance income/costs	(7.9)	(3.4)	4.5	(57.0)%
EBT	21.1	16.9	(4.2)	(19.9)%
% margin	7.3%	5.5%
Income tax	(5.6)	(4.7)	0.9	(16.1)%
Profit	15.5	12.2	(3.3)	(21.3)%
% margin	5.3%	4.0%
EPS in €	0.61	0.47	(0.14)	(23.0)%

P&L (€M) ADJUSTED EBIT (€M)

	Q1 FY2023 Actual	Q1 FY2024 Actual	Change	% change
EBIT	29.1	20.3	(8.8)	(30.2)%
PPA adj. - D&A	3.5	4.2	0.7	20.0%
Advisory costs	-	8.8	8.8	n/a
Total adjustments	3.5	13.0	9.5	>100.0%
Adjusted EBIT	32.6	33.3	0.7	2.1%
% margin	11.2%	10.9%

BALANCE SHEET OVERVIEW

DECEMBER 31, 2023

BALANCE SHEET (€M)

	Sept 2023 Actual	Dec 2023 Actual	Change	% change
Property, plant and equipm.	247.2	244.9	(2.3)	(0.9)%
Goodwill	236.6	233.7	(2.9)	(1.2)%
Other intangible assets	230.0	227.6	(2.4)	(1.0)%
Other investments	6.0	6.0	-	0.0%
Inventories	177.3	177.4	0.1	0.1%
Trade receivables	198.0	182.0	(16.0)	(8.1)%
Other assets	46.1	53.4	7.3	15.8%
Cash	193.1	218.7	25.6	13.3%
Total assets	1,334.3	1,343.7	9.4	0.7%
Equity incl. minorities	712.0	695.9	(16.1)	(2.3)%
Debt (incl. accrued interest)	258.0	257.6	(0.4)	(0.2)%
Pension plans	37.7	41.9	4.2	11.1%
Deferred tax liabilities	44.6	36.7	(7.9)	(17.7)%
Trade payables	124.3	142.6	18.3	14.7%
Other liabilities	157.7	169.0	11.3	7.2%
Total equity and liabilities	1,334.3	1,343.7	9.4	0.7%

CASH FLOW OVERVIEW

THREE MONTHS ENDED DECEMBER 31, 2023

CASH FLOW STATEMENT (€M)

	Q1 FY2023 Actual	Q1 FY2024 Actual	Change	% change
Cash flow from operating activities	45.1	49.8	4.7	10.4%
Cash flow from investing activities	(12.7)	(17.4)	(4.7)	37.0%
Cash flow from financing activities	(3.1)	(4.2)	(1.1)	35.5%
Net increase / (decrease) in cash	29.3	28.3	(1.0)	(3.4)%
Effect of movements in exchange rates	(5.2)	(2.7)	2.5	(48.1)%
Cash as of beginning of the period	168.4	193.1	24.7	14.7%
Cash as of end of the period	192.5	218.7	26.2	13.6%

ADJ. FCF (€M)

	Q1 FY2023 Actual	Q1 FY2024 Actual	Change	% change
Cash flow from operating activities	45.1	49.8	4.7	10.4%
Cash flow from investing activities	(12.7)	(17.4)	(4.7)	37.0%
Free cash flow	32.4	32.4	-	0.0%
Adjustments	0.3	3.7	3.4	>100.0%
Adj. FCF	32.7	36.2	3.5	10.7%

ACRONYMS AND ABBREVIATIONS

Adj.	Adjusted
AGS	Automotive Gas Spring
AMR	Aerospace, Marine & Rail
APAC	Asia-Pacific
APR	Automotive Powerise
bp	Basis point
CAPEX	Capital expenditure
CV	Commercial Vehicles
CY	Calendar year
D&A	Depreciation and amortization
DIAMEC	Distributors, Independent Aftermarket, E-commerce
EMEA	Europe, Middle East & Africa
EBIT	Earnings before interest and taxes
EBITDA	Earnings before interest, taxes, depreciation and amortization
EBT	Earnings before taxes
EC	Energy & Construction

FCF Free cash flow

FY	Fiscal year
HRF	Health, Recreation & Furniture
IMA	Industrial Machinery & Automation
LTM	Last twelve months
LVP	Light vehicle production
NWC	Net working capital
pp	Percentage point
PPA	Purchase price allocation
PY	Prior year
q/q	Quarter-on-quarter
y/y	Year-on-year

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