Trusted Partner

Q3 Investor & Analyst update presentation

29 January, 2024

Disclaimer

By accessing this presentation, you agree to be bound by the following limitations.

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 no-tice. 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 correct-ness 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 material-y different from results, performance or achievements expressed or implied by such for-ward-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.

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Management team

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

1. RENK introduction

Update on 9M-23 performance
Summary and outlook

RENK's mission – empowering a secure and sustainable future

Empowering Forces

Enabling a sustainable future

Trusted Partner

(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 Jul 23 to Dec 27
(3) Based on 2022A 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)
(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 2022A 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) 2022A 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

(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 2020-2022 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 ("selffunded") 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 2022A. 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)

1. RENK introduction

Update on 9M-23 performance
Summary and outlook

Executive summary Q3 2023

Order intake	Increase in order intake to 1.4x revenue driven by wins across regions and segments with total order backlog growing by €0.4bn to €4.6bn compared to Jun-23
Marine & Industry	M&I achieved performance improvement in Q3-23 with growth in order intake, revenue, and profitability and additional significant order intake growth going forward
Supply chain	Significant progress made in resolving supply chain bottlenecks which have been main driver for temporary increase in net working capital
Shareholder loan	Termination of shareholder loan from Rebecca BidCo by way of €50m repayment and contribution-in-kind into RENK's equity by the owner of remaining €45m
S&P Credit Rating upgrade	As a result of RENK's solid financials, S&P Global has upgraded RENK GmbH to 'B+' on improved credit metrics; positive outlook confirmed

Business highlights: Strong defense momentum boosting total order backlog

Commentary

Fixed order backlog: Orders turned into revenue since Jun-23 compensated by newly contracted order inflow, such as the Thor III (€87m) as well as the Leopard A7V replacement transmissions (€17m) in VMS and the Taiwan Light Frigate TALIF (€25m) in Navy M&I 1
Frame order backlog: Aftermarket and new business converted by signed frame contracts 2
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 ~5.1x revenue coverage as of Sep-23, up from ~€4.2bn and ~4.8x, respectively 4
(1) Defined as total order backlog as of Sep-23 / LTM revenue for the period ended September 30, 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 informati on or historical call offs over the entire contract duration, booked for the period of the frame contract term. The numbers as of 30.09 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 Jul 23 to Dec 27

9M-23 Group performance at a glance

Book-to-bill ratio YoY growth (1)

Commentary

Increase in order intake to 1.4x revenue driven by significant order wins across regions and segments, with an increase of 29.0% YoY in VMS and 18.0% YoY in M&I (especially in Navy)
Considerable revenue growth of 9.9% YoY across all segments
Fixed order backlog increased considerably as of Sep-23 compared to Sep-22 with 19.4% YoY, underlining continued strong demand

(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

9M-23 Group performance at a glance (cont'd)

Commentary

Translation of strong revenue growth into considerable increase in adj. gross profit and adj. gross profit margin

Adj. EBIT margin Net debt / LTM Adj. EBITDA(3)

YoY growth Adj. gross profit margin

− 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 €104m in 9M-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 resulting from
- − Repayment of shareholder loan in Q3-23 (€50m)
− Temporary build-up of inventory (€49m), coming from raw material 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
As a result of our solid financials, S&P Global has upgraded RENK GmbH to 'B+'

(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"

Trusted Partner

Focus on Vehicle Mobility Solutions segment

Segment financials, €m Commentary

YoY growth Adj. EBIT margin

Substantial increase in order intake by 29.0% YoY especially driven by growth in North America
Strong increase in revenue of 7.2% YoY
- − Around 67% 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
- − Increased overhead costs from inorganic growth and strengthening of central functions

resulting in minor decrease in adj. EBIT

Trusted Partner

Focus on Marine & Industry segment

Segment financials, €m

YoY growth Adj. EBIT margin

Commentary

Order intake overall developed favorably, exceeding prior year figures, underlining strong demand, especially driven by Navy
Strong revenue growth of 9.4% YoY driven by significant growth in industry (new business and aftersales)
Navy revenues down as expected (weak order intake in 2019 and 2021), strong recent order intake indicates trend change and further large Navy project deliveries planned for Q4-23
After contraction of adj. EBIT and adj. EBIT margin in H1-23, strong recovery in Q3-23
- − Adj. EBIT increasing by 6.8% YoY while adj. EBIT margin remained stable
- − Q3-23 adj. EBIT more than doubled compared to Q3-22

Focus on Slide Bearings segment

Segment financials, €m

Commentary

Order intake continues to grow YoY mainly driven by horizontal bearings and orders for new high-speed bearings

YoY growth Adj. EBIT margin

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

Deep-dive into selected cost positions

Commentary

Adj. gross profit: Translation of strong revenue growth into considerable increase in adj. gross profit and adj. gross profit margin
- − 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
Adj. distribution expenses: Stable level of adj. distribution expenses in line with business growth and delivery volumes
Adj. general and administrative expenses: Increased due to
- − Inorganic growth resulting from GK acquisition
- − Strengthening of central functions

(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

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

For the period, €m Commentary

	9M-22	9M-23
Operating profit	44.8	57.0
PPA depreciation and amortization as well as income / losses from PPA asset disposals	49.6	35.1
Operating profit before PPA depreciation and amortization as well as income / losses from PPA asset disposals	94.3	92.1
M&A activity related costs	(0.3)	2.0
Inflation compensation premium	0.0	1 2.5
Severance provision	2 1.1	1.3
Capital market readiness costs	3 -	1.6
Other adjustments	4 2.9	4.3
Adj. EBIT	98.1	104.0
Depreciation, amortization and impairment losses (excluding PPA depreciation and amortization)	21.8	23.2
Adj. EBITDA	119.9	127.2

Expenses for inflation compensation premium of €2.5m 1
Expenses related to severance contracts with key management personnel 2
Cost incurred in the context of achieving capital market readiness 3
Other adjustments in 9M-23 and 9M-22 include expenses mainly related to 4
- − Expenses for customer and employee events as well as marketing expenses related to RENK's 150-year anniversary in 9M-23
- − Consultancy & advisory expenses for full-potential-plan activities in 9M-22, restructuring and service push activities in 9M-23

Source: Company information

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

€49m 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 is expected to be partially solved in Q4-23
- − Acquisition of General Kinetics
€23m positive impact on working capital resulting from growth in trade payables and prepayments received, partially offset by €14m increase in customer receivables in line with business growth

(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

(4) Calculated as % of the LTM revenue for the period ended September 30, 2023

Update on 9M-23 performance

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

Key cash flow items, €m Commentary

	9M-22	9M-23
Adj. EBITDA(1)	119.9	127.2
Adjustments(2)	(3.9)	(11.8)
Income taxes paid	(6.5)	(22.3)
Change in net working capital(3)	(104.3)	(48.1)
Change in other working capital(4)	48.2	1 (7.5)
Capex(5)	(15.2)	(14.8) 2
Other(6)	(5.5)	2.1
Unlevered free cash flow	32.7	24.8 3
Interest payments	(30.0)	(29.4)
Free cash flow	2.7	(4.6)
Acquisitions(7)	–	(34.5) 4
Repayment of shareholder loan(8)	-	(50.0) 5
Free cash flow post M&A and repayment of shareholder loan	2.7	(89.2)
Other changes	(0.1)	0.2
Change in cash & cash equivalents	(2.6)	(88.9)

(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 9M-22 and 9M-23, respectively

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

(4) Includes change in provisions and liabilities

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

(6) 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 9M-23 also cash and cash equivalents related to the acquisition of General Kinetic Cash (€210k)

(7) Includes acquisition of subsidiaries, acquisition of non-controlling interest and in 9M-23 less cash and cash equivalents related to the acquisition of General Kinetic Cash (€210k)

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

Negative change in net working capital 1
- − Driven by build-up of inventory 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
- − Change in other working capital driven by increase in accounts payable in line with growing business, partially offset by increase in other provisions
Capex in 9M-23 in line with prior year at 2.3% of 9M-23 revenue 2
Continuously strong operational cash generation in 9M-23 reflecting stable operating performance despite increase in net working capital 3
Related to acquisition of General Kinetics closed in Jan-23 4
Related to repayment of shareholder loan to Rebecca BidCo in Q3-23 (€50m) 5

Increase in net debt with significant impact from repayment of shareholder loan

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
- − Aforementioned, temporary build-up of inventory (€49m), coming from raw material 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
- − Acquisition of General Kinetics in Jan-23 (€34.5m)

(1) Net financial debt includes senior secured notes, and lease liabilities less cash and cash equivalents based on the carrying amounts 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.

RENK introduction
Update on 9M-23 performance
Summary and outlook

Guidance

RENK – well positioned to capture growth in defense and energy transition

1	High-growth markets	Exposed to high-growth areas in accelerating end markets	~10%	Market CAGR 2022-27E(1)
2	Global leadership	Innovation and technology-led global leadership positions	#1 & #2	Market positions(2)
3	Locked-in business model	Platform-agnostic and sole-source incumbency positions across a diversified customer base	31%	Aftermarket share(3)
4	Strong financial profile	Highly profitable and cash generative with strong visibility and resilience	17%	2022A Adj. EBIT (4) margin
5	Growth platform	Well-invested platform to deliver multi-decade growth	~€4.6bn	Total order backlog(5) Sep-23

(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 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) 2022A 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

QUESTIONS & ANSWERS?

TRUSTED PARTNER

Thanks for your attention

Investor Relations

Ingo Schachel, Head of IR Phone: +49 821 5700 1439 E-Mail: [email protected] 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

AI Terminal

RENK Group AG

6515_ip_2023-11-29_33076b71-bafb-4f00-b155-82cd0a520398.pdf

Trusted Partner

Disclaimer

Management team

1. RENK introduction

Empowering Forces

1. RENK introduction

Business highlights: Strong defense momentum boosting total order backlog

Commentary

9M-23 Group performance at a glance

Commentary

9M-23 Group performance at a glance (cont'd)

Commentary

Focus on Vehicle Mobility Solutions segment

Focus on Marine & Industry segment

Segment financials, €m

Commentary

Focus on Slide Bearings segment

Segment financials, €m

Commentary

Deep-dive into selected cost positions

Commentary

Update on 9M-23 performance

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

Key cash flow items, €m Commentary

Increase in net debt with significant impact from repayment of shareholder loan

Guidance

RENK – well positioned to capture growth in defense and energy transition

QUESTIONS & ANSWERS?

TRUSTED PARTNER

Thanks for your attention

Investor Relations

RENK Group AG

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