SAF-HOLLAND SE

Investor Presentation • Dec 8, 2022

Investor Presentation

December 2022

OUR VISION

To be the most trusted and reliable systems partner in the commercial vehicle industry

Unique Opportunity To Invest in a Global Leader in Commercial Vehicle Systems

Diversified, asset-light and resilient business model

Aftermarket Powerhouse safeguarding profitability in crisis times

Driven by global megatrends: Electrification, digitalisation, automated driving

SAF-HOLLAND + Haldex Scale & Market Position Create Firm Foundations For:

A Compelling Equity Story

Leading Positions in Oligopolistic Markets Further Enhanced by Haldex Acquisition 1

		SAF-HOLLAND	Haldex
	Trailer Axles	Fifth Wheels	Landing Gear	Suspensions / Air Controls	Foundation Brake
Global positioning	#1-2	#2	#2	#1-3
Regional positioning	#1 EMEA #1 India #3 NA*	#1 NA* #2 EMEA	#2 NA* #2 EMEA	#2 Europe: Air Disc Brakes, Trailer #1 Europe: Air Suspension, Trailer #3 Europe: Trailer EBS #1 Europe / NA: Brake Adjusters
Top 3 positions across key products

Comprising High-Quality Product Portfolio That Fulfils Customer Needs 2

SUPERIOR QUALITY – HIGH SAFETY – LIGHTWEIGHT – HIGH DURABILITY – INTEGRATED

* EBS: Electronic Brake System; ABS: Anti-Lock Braking System

2 Significant Customer Benefits From Increasingly Integrated Mechatronic Offering

Sole system supplier worldwide for all chassis-related products

3 Balanced and Regional Set-Up Covering All Major Growth Markets Globally

4 Direct Access to Broad and Diversified End Customer Base: The Fleets

• Long established relationships with fleet owners and trailer builders
• High brand recognition and superior product performance combined with unique aftermarket network
• Fleet managers specify SAF-HOLLAND products with trailer builders
• Top 10 customers represent less than one-third

End users choose SAF-HOLLAND because of lower total costs of ownership and higher efficiency over the life cycle

4 Aftermarket Powerhouse With Increased Scale, Resilience and Profitability

High share of aftermarket business effectively bolsters SAF-HOLLAND's resilience profile

4 The Most Comprehensive Aftermarket Spare Parts and Service Network Worldwide

~12,000 spare parts dealers and service stationsin more than 80 countries guarantee spare parts availability

Axle population in EMEA has more than tripled

Leading Service Network in Europe and North America: key asset for fleet customers and significant barrier to market entry

Counter-Balances volatility in OE industries and generates growth based on increasing product population in the field ("razor and blade" business model")

Unique Ability to Drive Industry Transformation and Profit from Megatrends Via Smart Solutions and Mechatronic Systems

6 Driving Key Innovation Trends in the Trailer & Truck Industry

Investor Presentation December 2022 < 13 >

6 SAF-HOLLAND + Haldex Already Offer a Broad Range of Integrated Smart Solutions

The Future: In 2025+ Commercial Vehicles to roll out partially autonomous, electrified and connected

We have broadened our footprint and portfolio over the past several years. Now our focus lies on:

• Optimising returns on investment
• Achieving economies of scale
• Optimising production facilities

integration of Haldex with focus on achieving:

• Significant synergy potential
• Value creation aligned with ~ 15% RoCE target ambition
• Balance sheet resilience

We are reviewing our combined R&D capabilities and intend to enhance our internal process:

• Rigorous on all R&D and CapEx
• Projects must demonstrate a meaningful return above WACC (2021: EMEA 7.3%, Americas 8.8%, APAC 10.5%)
• Projects are subject to scenario analysis

We continue to be committed to providing shareholder payments to an appropriate level:

• It is our target to pay-out 40% - 50% of our available Net Income to our Shareholders

Capital allocation framework is designed to achieve enhanced (1) margins, (2) cash conversion, (3) asset turn and (4) returns

Financials

SAF-HOLLAND and Haldex at a Glance

NOTE: 2021 average FX rate of 0.0986 SEK/EUR used; * TA: Trailer Axles; FW: Fifth Wheels; AS: Air Suspension; ADB: Air Disc Brakes; TEBS: Trailer Electronic Braking System; ABA: Automatic Brake Adjusters

Acquisition Increases SAF-HOLLAND's Aftermarket Business and North American Presence

SAF-HOLLAND: Solid Long-Term Growth and Attractive Margin Profile

120 140 160 Adj. EBIT and Adj. EBIT margin 2014 - 2022 (in EUR mn and %)

SAF-HOLLAND's resilient profile ensures robust profitability – even in times of crisis

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

SAF-HOLLAND: EMEA YTD and Q3 2022 – Sales and EBIT

Adj. EBIT by Quarter (in EUR million and % of sales)

• Q3 2022 sales adjusted for FX and M&A effects increased by + 4.0% as compared to a strong PY quarter
  • Still pent-up demand from fleets for new trailers due to lower production figures during the pandemic.
  • By contrast, high material price inflation and the associated increase in manufacturing costs and selling prices has a noticeable dampening effect on customer demand
  • Solid aftermarket business

2021 2022

• Adj. EBIT margin in Q3 2022 came in at 7.9% still below PY level (9,8%)
• Adj. EBIT improved further sequentially coming from 6.2% in Q2 and 4.9% in Q1
  • Reason is that the passing on of significant parts of material price inflation and manufacturing cost increase was possible but with a time lag
• Normalisation of input costs within some product groups and efficiency measures proved to be marginsupportive
• Disproportionately high growth of the AM

SAF-HOLLAND: Americas YTD and Q3 2022 – Sales and EBIT

Q1 Q2 Q3 Q4

• Q3 2022 sales adjusted for FX and M&A effects increased by 31.8%
• Ongoing strong sales growth in the trailer OE business with market share gains
• Expansion of the trailer axle production capacities in USA and Mexico and fifth wheel production capacities in Mexico on track
• Aftermarket business gains further momentum

2021

2022

• Q3 adj. EBIT margin reached the 10% threshold at 10.3%
• Favourable product mix in Q3 2022

SAF-HOLLAND: APAC YTD and Q3 2022 – Sales and EBIT

• Q3 2022 sales adjusted for FX effects: +37.3%
• Salesincreased further in Q3 compared to the strong previous quarter driven by India and Australia
• To meet increasing customer demand in India, new facility in Pune will start operations in the course of the first quarter 2023 with capacities expanded by 50% in a first step

Adj. EBIT by Quarter (in EUR million and % of sales)

• Product mix, successfully implemented efficiency enhancement measures and automation steps in production in particular have a beneficial effect

2021 2022

• The aftermarket business, which at 17.6% of total sales still contributed significantly less than the EMEA and Americas regions, also grew noticeably
• Impairment losses of EUR 2.0 million recognised for a Chinese subsidiary in cost ofsales (EUR 1.2 million) and in administrative expenses (EUR 0.8 million) were adjusted accordingly

NWC Sequentially Improved Offering Further Cash Generation Potential

EUR MN	12/31/ 2020	03/31/ 2021	06/30/ 2021	09/30/ 2021	12/31/ 2021	03/31 2022	06/30/ 2022	09/30/ 2022
Inventories	126.4	155.8	176.0	195.3	194.0	211.9	237.0	237.9
Trade receivables	95.3	130.0	148.9	147.2	136.3	176.1	184.6	187.0
Trade payables	-107.2	-147.4	-163.4	-160.6	-145.8	-179.3	-176.2	-187.3
NWC	114.6	138.4	161.5	181.9	184.4	208.7	245.5	237.6
Sales (LTM)	959.5	961.7	1,091.4	1,175.6	1,246.6	1,330.7	1,411.7	1,497.5

• Net working capital decreased slightly in Q3 despite sustained strong sales growth
• Inventory levels with some product groups deliberately higher related to supply chain uncertainties and material price inflation
• Whereas the level in inventories and trade receivables remained largely unchanged trade payables were expanded by EUR 11.1 mn
• Net working capital ratio in Q3 improved sequentially by 150 BPS to 15.9 %
• Cash-is-King program to be stepped up until year-end 2022 to focus on inventories by reducing DIO

RoCE Consistently Above WACC Creating Value

ROCE = Adjusted EBIT (LTM) / (total equity + financial liabilities + lease liabilities + pension and other similar benefits ‐ cash and cash equivalents). Note: Capital employed 2012-2018 excluding lease liabilities (IFRS 16)

• For comparability reasons, we have adjusted the net financial debt for the second quarter and third quarter of 2022 for the purchase of the Haldex shares
• Without the acquisition of Haldex shares the net debt to EBITDA ratio in Q2/2022 would have been at 1,6x instead of 1,8x
• Without the acquisition of the Haldex shares the net debt to EBITDA ratio in Q3/2022 would have been at 1.1x due to the strong operating free cash flow generated in the quarter
• For FY 2024 a net debt to EBITDA ratio of 2x or below is targeted

Outlook

	March 17, 2022	May 5, 2022	July 28, 2022
Sales	EUR 1.15bn to EUR 1.3bn	EUR 1.2bn to EUR 1.35bn	EUR 1.4 bn to EUR 1.5 bn
Adjusted EBIT margin	Significantly below 2021	6.5% to 7.0%	7.0% to 8.0%
Capex ratio	2% to 2.5%	2% to 2.5%	Outlook slide from 2% to 2.5% Q3

Comments

• Based on the expected overall economic environment, the current level of orders on the books in the OE business and sustained solid demand in the aftermarket business, the Management Board now forecasts Group sales for the full year 2022 around the upper end of the forecast range of between EUR 1.4 billion to 1.5 billion.
• In July 2022, the company had already raised its sales projection for the second time ranging from EUR 1.4 to 1.5 billion
• Unchanged the company projects an adjusted EBIT margin of between 7.0% to 8.0%

2023 Outlook: Markets Trends

	EUROPE		NORTH AMERICA		SOUTH AMERICA		CHINA		INDIA
	Truck	Trailer	Truck	Trailer	Truck	Trailer	Truck	Trailer	Truck	Trailer
2023	-5%	-5% to -8%	-4%	-5 %	-9%	-8 %	+25%	+25%	+14%	+21%

Down moderately from record levels amidst above-average age of truck and trailer park, share gains and growing resilient AM share

Financial Calendar & IR Contact

Issuer & contact	Additional information
SAF-HOLLAND SE Hauptstrasse 26 63856 Bessenbach	ISIN DE000SAFH001 WKN SAFH00 Listing Prime Standard	Frankfurt Stock Exchange
Stephan Haas Tel: +49 6095 301 – 803	Financial calendar
Michael Schickling Tel: +49 6095 301 – 617	December 8, 2022	Berenberg European Conference 2022
Alexander Pöschl Tel: +49 6095 301 – 117	January 10, 2023	Oddo BHF Forum 2023
Email: ir@safholland.de	January 17, 2023	UniCredit /Kepler Cheuvreux German Corporate Conference 2023
	January 26, 2023	Capital Markets Day

Annex

in EUR thousands	Q3 2022	Q3 2021	Change absolute	Change in %
EBIT	26,957	21,396	5,561	26.0%
EBIT margin in %	6.7%	6.8%	–	–
Additional depreciation and amortisation of property, plant and equipment and intangible assets from PPA	2,416	2,258	158	7.0%
Valuation effects from call and put options	35	–	–	–
Restructuring and transactions costs	5,271	699	4,572	687.9%
Impairment	1,985	–	–	–
Adjusted EBIT	36,664	24,323	12,341	50.7%
Adjusted EBIT margin in %	9.1%	7.7%	–	–

• Q3 2022 impairment includes China write-down

	Q1-Q3	Q1-Q3	Change	Change			Change	Change
in EUR thousands	2022	2021	abs.	in %	Q3 2022	Q3 2021	abs.	in %
Sales	1,175,641	924,762	250,879	27.1%	402,388	316,638	85,750	27.1%
Cost of sales	–979,212	-759,384	-219,828	28.9%	-330,703	-263,281	-69,422	26.4%
Gross profit	196,429	165,378	31,051	18.8%	69,685	53,357	16,328	30.6%
in % of sales	16.7%	17.9%			17.3%	16.9%
Gross profit adjusted	199,916	167,563	32,353	19,3%	71,906	54,337	17,569	32.3%
in % of sales	17.0%	18.1%			17.9%	17.2%
SG&A	-121,950	-103,722	-18,228	17.6%	-43,149	-32,384	-10,765	33.2%
in % of sales	-10.4%	-11.2%			-10.7%	-10.6%
Operating profit	74,479	61,656	12,823	20.8%	26,536	20,973	5,563	26.5%
Share of net profit of
investments accounted	1,197	1,002	195	19.5%	421	423	-2	-0.5%
for using the equity
method
EBIT	75,676	62,658	13,018	20.8%	26,957	21,396	5,561	26.0%
in % of sales	6.4%	6.8%			6.7%	6.8%
EBIT adjusted	92,281	71,276	21,005	29.5%	36,664	24,323	12,341	50.7%
in % of sales	7.8%	7.7%			9.1%	7.7%
Finance result	-6,510	-6,597	87	-1.3%	-3,167	-2,174	-993	45.7%
Result before taxes	69,166	56,061	13,105	23.4%	23,790	19,222	4,568	23.8%
Income taxes	-21,427	-18,950	-2,477	13.1%	-7,322	-4,659	-2,663	57.2%
Tax rate (%)	30.9%	33.8%			30.8%	24.2%
Result for the period	47,739	37,111	10,628	28.6%	16,468	14,563	1,905	13.1%
in % of sales	4.1%	4.0%			4.1%	4.6%

Disclaimer

This presentation has been prepared by SAF-HOLLAND SE ("SAF-HOLLAND") and comprises written materials concerning SAF-HOLLAND and Haldex AB ("Haldex"). 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, Haldex 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.

This presentation contains certain statements related to our future business and financial performance and future events or developments involving SAF-HOLLAND, Haldex and/or the industry in which SAF-HOLLAND and Haldex operate that may constitute forward-looking statements. These statements may be identified by words such as "believes," "expects," "predicts," "intends," "projects," "plans," "estimates," "aims," "foresees," "anticipates," "targets," and similar expressions. Forward-looking statements are not historical facts, but solely opinions, views and forecasts which are based on current expectations and certain assumptions of SAF-HOLLAND's management or cited from third party sources which are uncertain and subject to risks. Actual events may differ significantly from the anticipated developments due to a number of factors, including without limitation, changes in general economic conditions, changes affecting the fair values of the assets held by SAF-HOLLAND and its subsidiaries, changes affecting interest rate levels, changes in competition levels, changes in laws and regulations, environmental damages, the potential impact of legal proceedings and actions and the SAF-HOLLAND Group's ability to achieve operational synergies from past or future acquisitions. Should any of these risks or uncertainties materialise or should underlying expectations not occur or assumptions prove to be incorrect, actual results, performance or achievements of SAF-HOLLAND may (negatively or positively) vary materially from those described, explicitly or implicitly, in the relevant forward-looking statement.

The information contained in this presentation, including any forward-looking statements expressed herein, speaks only as of the date hereof and reflects current legislation and the current business and financial affairs of the SAF-HOLLAND which are subject to change and audit. Neither the delivery of this presentation nor any further discussions of SAF-HOLLAND with any of the recipients thereof shall, under any circumstances, create any implication that there has been no change in the affairs of SAF-HOLLAND since such date. Consequently, SAF-HOLLAND neither accepts any responsibility for the future accuracy of the information contained in this presentation, including any forward-looking statements expressed herein, nor assumes any obligation, to update or revise this information to reflect subsequent events or developments which differ from those anticipated.

* This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. This presentation is for information purposes only and does neither constitute an offer to sell securities, nor any recommendation of, or solicitation of an offer to buy, any securities of SAF-HOLLAND or Haldex in the United States, Germany or any other jurisdiction. In the United States, any securities may not be offered or sold absent registration or an exemption from registration under the U.S. Securities Act of 1933.

The information contained in this document has not been subject to any independent audit or review. Information derived from unaudited financial information should be read in conjunction with the relevant audited financial statements, including the notes thereto. Certain financial data included in the document 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 and ratios included herein.