SAF-HOLLAND SE

Investor Presentation • Mar 30, 2023

SAF-HOLLAND SE Investors and Analysts Conference FY 2022

MARCH 30, 2023

Financial Figures 2022 - Highlights

Q4 2022 Highlights

Double-digit sales growth	Continued strong customer demand led to sales growth of 21.0% YoY to EUR 389.5 mn in Q4 2022; organic growth of 13.0%
Inflation mitigation	Higher input costs(steel, freight and energy) largely passed on to customers; additional efficiency gains achieved in production processes
Dynamic OE business	Momentum remained strong in Q4 2022, with sales in OE increasing 24.8%; Americas and APAC regions were main growth drivers
Solid aftermarket	Overall solid performance with sales increasing 11.2%
Strong earnings	Adjusted EBIT margin at 8.3% in Q4 2022, up 150 basis points; Result for the period benefited from normalized tax rate
Cashflow	SAF-HOLLAND generated EUR 62.5 mn in OFC in Q4 2022 taking OFCF for the full year to EUR 120.0 mn. Cash deployed according to capital allocation priorities incl. a dividend of EUR 0.60 per share.

Guidance exceeded: Strong performance in FY 2022 despite a challenging economic environment

* Pre-acquisitions/excl. purchase of Haldex shares

Group sales – Double-digit growth in each quarter

Sales (In EUR million)

• FY 2022 sales up 25.6%; adjusted for FX and M&A effects +17.9%
• Favorable FX effects add EUR 78.7 mn or 6.3 percentage points (related mainly to US dollar)
• Main drivers: strong customer demand, market share gains and higher prices

• Strong performance in Q4 2022 despite difficult macroeconomic conditions as fleet operators continue to renew fleets (catch-up effects after pandemic)
• Q4 2022 sales up 21.0%, adjusted for FX an M&A effects +13.0 %
• Americas and APAC regions with strong momentum
• Europe up slightly in Q4 (+1.0%)

Top line drivers: Americasregion bolstering its share of Group sales – Trailer OE business accounts for more than 60%

Sales development (by region, by customer category)

Group gross margin – Sequential yoy improvement in the course of 2022

2021 2022

Gross profit by quarter

(In EUR mn and % ofsales)

• Q4 gross margin reached 16.2% (PY 13.6%), mainly supported by the successful passing on of higher input prices to customers
• Additional efficiency gains and costsavings achieved
• Supply chain bottlenecks have continued to ease
• Q4 gross margin rose to 16.2% (PY: 13.6%)

Group adjusted EBIT margin reaches the upper end of the target corridor

• Group adjusted EBIT increased by 33.8%
• Adjusted EBIT margin at 8.0%, reaching the upper end of the target corridor of 7.0-8.0%
• Margin improvement mainly a result of strict cost discipline in administrative areas and efficiency measures
• SG&A costsincreased at a significantly lowerrate than sales

Adj. EBIT by quarter (In EUR mn and % ofsales)

Adj. EBIT

2021 2022

• At EUR 32.3 mn, the adjusted EBIT rose by 47.9 % in Q4
• Despite the usual plant vacations at year-end, the adjusted EBIT margin reached 8.3% (PY: 6.8%)
• YoY improvement due to recovery in the gross margin and fixed cost degression in the administrative areas
• Q4 already includes one-off payment of EUR 1.7 mn from collective wage agreement in Germany

EMEA FY and Q4 2022 – Sales

Sales (In EUR mn)

• FY 2022 sales up 11.0%, driven by truck and trailer OE business as well as the aftermarket
• OE business in parts benefited from catch-up investments of fleet operators following a low level of investments during the pandemic
• Organic growth at 7.8%
• Fleet age still above average

168.3 192.7 184.1 208.5 215.0 200.5 189.5 191.4 Q1 Q2 Q3 Q4 2021 2022

• Q4 2022 sales slightly up by 1.0%
• Adjusted for FX and M&A effects, sales decreased by 3.5% against strong prior-year comparisons
• Softness in aftermarket business at year-end 2022 as customers were very cautious in stocking up on spare parts due to economic and industry-related uncertainties for 2023

Sales by quarter

(In EUR mn)

EMEA FY and Q4 2022 – Adj. EBIT

Adj. EBIT

• (In EUR mn and % ofsales) Earnings impacted by high steel and intermediate prices as well as sharp increases in freight and energy costs
  • Price inflation passed on to a large extend but with a significant delay
  • FY 2022 adjusted margin at 6.5%, down 2.7 pp YoY
  • Margin decline occurred primarily in H1

Adj. EBIT by quarter (In EUR mn and % ofsales)

2021 2022

• Adjusted EBIT margin in Q4 2022 close to prior year level at 6.9%
• Passing on of higher input costs largely implemented in contracts
• Q4 adjusted EBIT includes EUR 1.7 mn non-recurring personnel costsresulting fromthe special payment of the inflation compensation premium as part of the German metal and electrical industry's collective wage agreement
• OE growth rate outpacing AM

Americas FY and Q4 2022 – Sales

• Strong momentum continued in Q4 2022, with organic sales growth of 33.0%
• Growth fuelled by strong demand in the trailer OE business due to market share gains and customers shifting to disc brakes
• Record order intake

cost reductions

Sales by quarter

(In EUR mn)

Americas FY and Q4 2022 – Adj. EBIT more than doubles

• Q4 adjusted EBIT margin at a solid level of 9.6%
• Strong momentum of the first three quarters continued
• Strong net order intake with regard to trailer build throughout Q4

Adj. EBIT by quarter (In EUR mn and % ofsales)

APAC FY and Q4 2022 – Sales

Sales (In EUR mn)

• Organic growth of 37.5%
  • Growth fuelled by strong trailer OE business in India and Australia
• Capacity expansion at the site in Pune (India) by a total of 50% to serve the expected rising demand
• Governmental subsidies (scrappage) fueling demand for new trailers
• Structural growth of air suspension technology

• Q4 2022 sales adjusted for FX effects: +49.2%
• SAF-HOLLAND continues to profit from market leading position in axles systems in India due to the extended government infrastructure build-out program

Sales by quarter

(In EUR mn)

APAC FY and Q4 2022 – Adj. EBIT

• Q4 adjusted EBIT margin sound at 9.7%
• YoY margin improvement driven by operational leverage in India and effective implementation of costsaving measures in China

Adj. EBIT by quarter (In EUR mn and % ofsales)

Group P&L: Reconciliation from adjusted EBIT to EPS

In EUR thsd.	Q4 2022	Q4 2021	Change in %	FY 2022	FY 2021	Change in %
Adjusted EBIT	32,320	21,852	47.9	124,601	93,128	33.8
Adjusted EBIT margin in %	8.3	6.8	1.5PP	8.0	7.5	0.5 pp
Total adjustments	6,505	12,370	-47.4	23,110	20,988	10.1
EBIT	25,815	9,482	172.3	101,491	72,140	40.7
Finance result	-6,483	-2,848	127.6	-12,993	-9,445	37.6
Result before income tax	19,332	6,634	191.4	88,498	62,695	41.2
Income tax	-5,844	-6,949	-15.9	-27,271	-25,899	5.3
Tax rate	30.2	104.7	-74.5 pp	30.8	41.3	-10.5 pp
Resultfor the period	13,488	-315	–	61,227	36,796	66.4
Earnings per share	0.31	-0.01	–	1.35	0.81	66.7
Adjusted earnings per share	0.44	0.31	41.9	1.82	1.35	34.8

Group P&L: Disproportionate earnings growth

• Adjusted EBIT amounted to a record-breaking EUR 124.6 mn up 33.8% on PY Major one-offs adjusted: Restructuring and transaction cost totalling EUR 9.1 mn (of which EUR 6.2 mn transaction and legal fees in connection with Haldex transaction) as well as depreciation and amortization from purchase price allocations of EUR 9.5 mn (previous year: EUR 9.1 million)
• Finance result was marked by the stepped-up interest payments related to the financing of the Haldex acquisition and came in at EUR -13.0 mn as compared to EUR -9.4 mn in 2021 Net interest result amounted to EUR -13.3 mn in FY2022 vs. EUR -7.6 mn in FY2021
• Result before income tax increased by 41.2% yoy to EUR 88.5 mn
• Fuelled by the normalized income tax rate, the result for the period increased disproportionately by EUR 24.4 mn to EUR 61.2 mn (+ 66.4% yoy)
• EPS thus improved significantly to EUR 1.35 (FY 2021: EUR 0.81)
• Excluding one-offs adjusted EPS amounted to EUR 1.82 per share implying an attractive price-earnings-ratio versus peers of 5.8, based upon last week's share closing price of EUR 10.6

Dividend increase to EUR 0.60 per share proposed to AGM

Target payoutratio of 40-50%*

• Management Board and Supervisory Board propose a dividend of EUR 0.60 per share at the Annual General Meeting on May 23, 2023
• Dividend proposal in line with long-term dividend policy of distributing 40-50% of the available net result forthe period attributable to equity holders of the parent
• Dividend payment underscores management's confidence in the financing of the Haldex acquisition from existing cash and free cash flows
• Attractive dividend yield of 6.8% based on yearend 2022 share price

	2015	2016	2017	2018	2019	2020	2021	2022
Dividend per share (EUR)	0.40	0.44	0.45	0.45	0.00	0.00	0.35	0.60
Total dividend (EUR mn)	18.1	20.0	20.4	20.4	0.0	0.0	15.9	27.2

Equity ratio declines exclusively due to the acquisition of Haldex

Equity 300 325 335 354 371 391 431 468 441

Total assets 920 999 1,010 1,023 1,014 1,060 1,156 1,457 1,498

• Compared to December 31, 2021, equity rose by a total of EUR 70.3 mn as of year-end 2022
• Equity increased due to the result for the period of EUR 61.2 million, currency effects of EUR 12.7 million and the remeasurement of defined benefit plans of EUR 8.1 million, partially offset by the EUR 15.9 million dividend payment for the 2021 financial year
• Due to the acquisition of Haldex (EUR 292.2 mn), total assets increased significantly and consequently the equity ratio decreased to 29.5% (December 31, 2021: 36.6%)

280 basis points improvement in the net working capital ratio

11.9% 14.4% 14.8% 15.5% 14.8% 15.7% 17.4% 15.9% 12.0% 12/2020 03/2021 06/2021 09/2021 12/2021 03/2022 06/2022 09/2022 12/2022 10% 12% 14% 16% 18% 20%

Net working capital (In % ofsales)

EUR MN	12/ 2020	03/ 2021	06/ 2021	09/ 2021	12/ 2021	03/ 2022	06/ 2022	09/ 2022	12/ 2022
Inventories	126.4	155.8	176.0	195.3	194.0	211.9	237.0	237.9	202.2
Trade receivables	95.3	130.0	148.9	147.2	136.3	176.1	184.6	187.0	144.7
Trade payables	-107.2	-147.4	-163.4	-160.6	-145.8	-179.3	-176.2	-187.3	-159.0
NWC	114.6	138.4	161.5	181.9	184.4	208.7	245.5	237.6	188.0
Sales(LTM)	959.5	961.7	1,091.4	1,175.6	1,246.6	1,330.7	1,411.7	1,497.5	1,565.1

• Net working capital ratio at 12.0%, down 2.8 pp from previous year
• YoY increase in net working capital of only 1.9% to EUR 188.0 mn compared to sales growth of 25.6%
• Build-up of inventories and trade receivables curbed as a result of the strict working capital management under the "Cash is King" program

Improvements in all NWC components

Inventories (in EUR mn of sales) andDIO(in days)

Trade receivables (in EUR mn ofsales) andDSO(in days)

Trade payables (in EUR mn ofsales) andDPO(in days)

• Easing ofsupply chain tensions and strict management guidelines enabled reduction in inventory levels; DIO drops YoY from 67 to 56 days
• DSO improved slightly compared to 2021
• DPO at 44 days; the plan is to increase DPO level to 60 days

Cash flows: Sequentially improved operating free cash flow generation

• FY2022 net cash flow from operating activities reached EUR 153.4 mn, almost 4 times the amount of 2021
• Cash generation benefited from significantly increased earnings
• Improvement mainly due to NWC management, which resulted in proceeds of EUR 2.1 mn from change in NWC in 2022 versus outflows of EUR 65.5 mn in 2021

Operating free cash flow* (in EUR million)

• Net cash flow frominvesting activities reached EUR -431.7 mn in 2022, including the purchase of Haldex shares (EUR 287.8 mn) and the granting of a loan to Haldex (EUR 110.0 mn)

2021 2022

• Excluding Haldex (purchase ofshares and loan) and the acquisition of IMS, operating free cash flow was EUR 120.0 mn in 2022 as compared to EUR 16.1 mn in 2021

Net debt/EBITDA: Target for 2024 remains in place: 2 x or lower

• For comparability reasons, net financial debt has been adjusted for the purchase of the Haldex shares and granting of the loan to Haldex since the second quarter of 2022
• Excluding the effectsfrom Haldex, net debt to EBITDA ratio at year-end 2022 was 0.7x
• The significant deleveraging in Q3 and Q4 2022 wasthe result of the strong operating free cash flow, which in turn was due to improved working capital management
• The target for 2024 is a net debt to EBITDA ratio of 2x or lower
• Including pro-forma EBITDA contribution of Haldex according to preliminaries, the net debt/EBITDA ratio would have amounted to approx. 2.6

ROCE impacted by Haldex transaction, still well above WACC

Adjusted EBIT (LTM) 58.8 62.3 82.1 91.5 93.1 94.7 101.8 114.1 124.6

• SAF-HOLLAND's cost of capital (WACC) amounted to close to 12%
• The Group's target is to consistently achieve returns well in excess of capital cost, creating sustainable value for shareholders
• FY 2022 ROCE at 12.9%, significantly impacted by capital employed required to finance the Haldex acquisition
• Adjusted for Haldex according to preliminaries, ROCE of 22.1%
• Target for 2027, including Haldex, is an ROCE of >=15%

Update Haldex Integration

Outlook ²⁰²³ Integration of HALDEX continues as PATA consent allows for closing of transaction and inclusion into the scope of consolidation of SAF-HOLLAND Group

Status of Haldex integration: Another two milestones achieved

Closing	Transaction finally closed with the approval of the Polish antitrust authority on February 21, 2023
Squeeze-out	Squeeze-out to be legally completed in due time as SAF-HOLLAND is holding 100% of Haldex AB shares since March 1, 2023
Haldex 2022 annual report	In its 2022 stand-alone IFRS financialstatements (to be published until end of May 2023), Haldex will fully align its accounting and reporting principles with those of SAF-HOLLAND; thisis expected to result in adjustments up to a maximum of 6-8% of the purchase price but will have no impact on SAF-HOLLAND's Group results going forward

	Haldex will first be included in SAF-HOLLAND's Q1 2023 consolidated financialstatements to be
First-time consolidation	published on May 26, 2023 (with effect of the closing date of Feb. 21, 2023)

SAF-HOLLAND's 2023 outlook includes Haldex as of the closing date Feb. 21, 2023; 2023 outlook In addition, SAF-HOLLAND guides a pro-forma view (Haldex included for the full 12-month period)
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Haldex sales trend 2022 (based upon preliminary figures)

• Sales according to preliminary figures amounted to EUR 526.1 mn (PY EUR 454.9 mn), up 15.7% on the prior year
• Overall sales growth in FY 2022 of 20.9 % in SEK;
• FY sales driven by strong Trailer OE (+10.5% currency adjusted) and AM business (+8.9% currency adjusted)
• Q4 2022 sales up 6.2 % in EUR (+13.9% in SEK), impacted by reluctant restocking of AM customers and slow yearend in EMEA and Americas
• APAC saw strong recovery in Q4
• Internal sale to SAFH amounted to approx. EUR 50 mn

in EUR mn	Haldex 2022	SAF-HOLLAND Group 2023
Impairments on capitalized development cost	stand-alone	_
Value adjustments on inventories	stand-alone	_
Tooling and other	stand-alone	_
Total	6 - 8 % of purchase price	_
Goodwill		+ 30 – 70
PPA		~ 10 per annum ~ 3 in 2023 Step-up Inventory

• The first-time consolidation of the acquired company could not take place until February 21, 2023, due to delayed approval of the Polish antitrust authority.
• SAF-HOLLAND will roll out its group accounting and valuation principles to Haldex and, where applicable, align its group accounting and reporting principles with those of the SAF-HOLLAND Group.
• Effects that may potentially result will merely be reflected in the separately prepared consolidated financial statements of Haldex AB.
• They will therefore have no impact on the outlook given for the combined SAF-HOLLAND Group in FY 2023.
• The purchase price allocation for Haldex is expected to result in increased goodwill of EUR 30 to 70 mn and additional PPA amortization of approx. EUR 10 mn per annum.

Outlook 2023

Expected development of trailer and truck production in 2023

	Trailer	Trucks
Europe	-5%	-1%
North America	-4%	-4%
Brazil	-10%	-15%
China	+15%	+15%
India	+17%	+14%

Sources: Market data for trucks and trailers based on ACT Research (January 2023), CLEAR International (Nov. 2022), IHS ( Jan 2023), ANFAVEA, SIAM

EMEA

• European trailer market expected to decline moderately, mainly due to the uncertain macroeconomic environment
• SAF-HOLLAND supported by market share gains
• Truck market assumed to consolidate slightly; component shortages increasingly overcome

North America

• Due to strong order books, trailer production in H1 2023 expected solid
• SAFH gaining market share in mechanical suspension and structural growth in air disc brakes
• Truck production could decline by 4% yoy albeit still at a solid level
• AM marked by high customer demand

Brazil

• Following strong growth in recent years, commercial vehicle production is set to drop by 10-15% in 2023 affected by economic crisis in Argentina
• SAF-HOLLANDoutperforming due to major new steering axle contracts

China

• Easing of COVID-19 restrictions and economic recovery supposed to fuel a surge of approx. 15% in truck and trailer production in 2023

India

• Trailer and truck production expected to further increase driven by continued large-scale governmental infrastructure program and subsidies

FY 2023 Outlook SAF-HOLLAND Group incl. Haldex

	IFRS (incl. Haldex as of Feb. 21)	Pro-forma (incl. Haldex as of Jan. 1)
Sales	EUR 1,800 - 1,950 mn	EUR 1,850 - 2,000 mn
Adjusted EBIT margin	7.5% to 8.5%	7.5% to 8.5%
Capex ratio	Up to 3%	Up to 3%

Sales

• Demand from trailer and truck OE customers assumed to decline moderately in 2023 whereas demand in the AM is expected to remain stable
• Both SAF-HOLLAND and Haldex are expected to moderately outperform the underlying markets due to structural drivers and new ordersramping
• Salesforecast of EUR 1,800 to 1,950 mn excludes currency and exchange rate effects and includes Haldex as of February 21, 2023
• On a pro-forma basis (i.e. Haldex included for the full-year 2023), the corresponding guidance is EUR 1,850 – 2,000 mn
• Sales guidance takes into account intra-group sales elimination from Haldex to SAF-HOLLAND in the amount of approx. EUR 50 – 55 mn

• Efficiency gains by operational excellence and automation
• Netsynergies from Haldex integration of EUR 10 12 mn mainly from SG&A
• Positive mix effect from higher AM share
• Eliminating losses in China
• Customers being highly price sensitive
• Continued inflationary burdens, among others increasing personnel cost worldwide, i.e. 5.2% in Germany
• In case of organic sales decrease, negative economies ofscale

Capex ratio

• Capex in 2023 will focus on expanding capacity in Mexico, Brazil Sweden and India as well as on automation projects in the EMEA and Americas regions; Reflects firststeps in ERP system upgrade

Next info touch-points and contact

Financial calendar & IR contact

Issuer & contact	Additional information
SAF-HOLLAND SE Hauptstrasse 26 63856 Bessenbach	ISIN WKN Listing	DE000SAFH001 SAFH00 Frankfurt Stock Exchange Prime Standard
Stephan Haas Head of IR Tel: +49 6095 301 – 803	Financial	calendar 2023
Alexander Pöschl	May 26, 2023	Quarterly Statement Q1 2023
Senior IR Tel: +49 6095 301 – 117	May 23, 2023	Annual General Meeting
Email: ir@safholland.de	August 3, 2023	Half-Year Financial Report 2023
	November 9, 2023	Quarterly Statement Q3 2023

Disclaimer

This presentation has been prepared by SAF-HOLLAND SE ("SAF-HOLLAND") and comprises written materials concerning SAF-HOLLAND. It is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. It contains summary information only and does not purport to be comprehensive and is not intended to be (and should not be used as) the sole basis of any analysis or other evaluation of SAF-HOLLAND or its business. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither SAF-HOLLAND nor any of the members of its management board or any of its officers, employees or advisors nor any other person shall have any responsibility or liability whatsoever (for negligence or otherwise) arising, directly or indirectly, from the use of this presentation, or its contents or otherwise in connection with this presentation.

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