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EDAG Engineering Investor Presentation 2021

Nov 11, 2021

9318_ip_2021-11-10_98500a81-b6e7-4bfe-8dbb-e80457315a85.pdf

Investor Presentation

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YOUR GLOBAL MOBILITY ENGINEERING EXPERTS

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EDAG ENGINEERING GROUP AG

ANALYST-CALL 9M 2021

EDAG

November 11th, 2021


DISCLAIMER

EDAC

  • For the purposes of the following disclaimer, references to "this Presentation" shall be deemed to include references to this document, the presenters' speeches, the question and answer session and any other related verbal or written communications.
  • The information contained in this Presentation has been prepared solely for use in the call on November 11th, 2021.
  • This Presentation is confidential and does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company or any of its subsidiaries 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 any of its subsidiaries, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Accordingly, any investment decision to purchase or subscribe for any securities of the Company should be made solely on the basis of the information that is issued by the Company and available in the public domain.
  • This Presentation has been presented to you solely for your information and must not be copied, reproduced, distributed or passed (in whole or in part) to any other person at any time. Presentations are by their nature abbreviated information and cannot substitute for narrative information. In addition, the information herein is preliminary and is not comprehensive. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this Presentation or on its completeness, accuracy or fairness. Neither the Company, the remainder of its Group, its shareholders nor any financial or other advices mandated by the Company nor any other manager, their respective affiliates, directors, officers, employees, advisers or agents accepts any responsibility or liability whatsoever for or makes any representation or warranty, express or implied, as to the accuracy, completeness or fairness of the information or opinions in this Presentation (or whether any information has been omitted from this Presentation) or any other information relating to the Group, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of this Presentation or its contents or otherwise arising in connection therewith. In particular, no representation or warranty is given as to the likelihood of achievement or reasonableness of, and no reliance should be placed on, any projections, targets, ambitions, estimates or forecasts contained in this Presentation, and nothing in this Presentation is or should be relied on as a promise or representation as to the future.
  • Certain industry and market information in this Presentation and/or related materials and/or given at the presentation has been obtained by the Company from third party sources. The Company has not independently verified such information and neither the Company nor any of its directors provides any assurance as to the accuracy, fairness or completeness of such information or opinions contained in this document and neither the Company nor any of its directors takes any responsibility for such information.
  • Without prejudice to the foregoing, neither the Company nor any of its directors accept any liability whatsoever for any loss howsoever arising, directly or indirectly, from use of this document or its contents or otherwise arising in connection therewith.

  • This Presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, are reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company, or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of regulators and other factors such as the Company's ability to continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which the Group operates or in economic or technological trends or conditions. These forward-looking statements speak only as at the date of this Presentation. Given these risks, uncertainties and other factors, recipients of this Presentation are cautioned not to place undue reliance on these forward-looking statements.

  • All information in this Presentation is current at the time of publication but may be subject to change in the future. The Company disclaims any obligation to update or revise any statements, in particular forward-looking statements, to reflect future events or developments. Statements contained in this Presentation regarding past events or performance should not be taken as a guarantee of future events or performance. Recipients of this Presentation should not treat the contents of this Presentation as advice relating to legal, taxation or investment matters, and must make their own assessments concerning such matters and other consequences of a potential investment in the Company and its securities, including the merits of investing and related risks.
  • This presentation is confidential and is being distributed to selected recipients only. In receiving or otherwise accessing this Presentation, you will be deemed to have represented, agreed and undertaken that (i) you will observe the foregoing provisions, limitations and conditions; (ii) you have read and agree to comply with the contents of this disclaimer including, without limitation, the obligation to keep the information given at the presentation and this document and its contents confidential; and (iii) you will not at any time have any discussion, correspondence or contact concerning the information given at the presentation with any of the directors or employees of the Company or its subsidiaries nor with any of its customers or suppliers, or any governmental or regulatory body without the prior written consent of the Company.
  • This Presentation and any materials distributed in connection with this Presentation are 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 locality, state, county 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. Failure to comply with this restriction may constitute a violation of applicable securities laws.
  • This Presentation is not for publication, release or distribution in the United States, Australia, Canada or Japan. The distribution of this Presentation in other jurisdictions may also be restricted by law.
  • This Presentation and the information contained herein are not an offer of securities for sale in the United States. The securities described herein have not been and will not be registered under the under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold in the United States except pursuant to an exemption from, or transaction not subject to, the registration requirements of the U.S. Securities Act.

© 2021 EDAG Engineering Group AG. All rights reserved.

Q1-Q3 2021


MARKET ENVIRONMENT

EDAG

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  • Continued global economic recovery with rising volatility, as inflation increases and supply-chains are partially disturbed
  • Automotive markets heavily impacted by supply-chain restraints
  • Current ESP-market environment:
  • Utilization in Q3 at a high level
  • Number of RFQs is still high, whilst on the other hand supply restraints at OEM lead to decreasing dynamics in order placements at ESPs
  • Elevated price pressure still present

© 2021 EDAG Engineering Group AG. All rights reserved.

Q1-Q3 2021


KEY HIGHLIGHTS Q1-Q3 2021

EDAG

  • Revenues at 506.2 m€ (+4.8%)
  • Q3 up by 15.1%
  • All segments growing dynamically in Q3
  • Adjusted EBIT at 23.8 m€; margin at 4.7%
  • All segments profitable in Q2 and Q3
  • Margin at 7.6% in Q3
  • Strong growth in Software & Digitalisation
  • Opening of new Engineering-Hub in Munich and new E/E Test Centre in Shanghai

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© 2021 EDAG Engineering Group AG. All rights reserved.

Q1-Q3 2021


REVENUES

EDAG

Revenues [m€] (1)
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Revenues by Segment [m€] (2)
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change to 9M 2020
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Notes:
1. Revenue defined as sales revenue plus change in inventories
2. Figures include sales revenue with other segments

© 2021 EDAG Engineering Group AG. All rights reserved.

Q1-Q3 2021


REVENUES BY REGION(1)
EDAG

9M 2020
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Germany
RoW

9M 2021
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Notes:
1. Revenue defined as sales revenue plus change in inventories

© 2021 EDAG Engineering Group AG. All rights reserved.
Page 6
Q1-Q3 2021


ADJUSTED EBIT

3

EDAG

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Adjusted EBIT [m€]
(1)

Adjusted EBIT by Segment [m€]

9M 2020 margin 9M 2021 margin
Vehicle Engineering -6.0 -2.0% 18.9 5.8%
Electrics / Electronics 3.8 3.0% 8.1 5.9%
Production Solutions -5.5 -7.4% -3.2 -4.5%

Notes:
1. Adj. for one-offs (purchase price allocation, consolidation effects, restructuring, a. o.)

4

adjusted EBIT-Margin

© 2021 EDAG Engineering Group AG. All rights reserved.

Q1-Q3 2021


EXPENSES

EDAG

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Total cost structure breakdown (as % of revenues)

© 2021 EDAG Engineering Group AG. All rights reserved.

Q1-Q3 2021


EAT AND EQUITY

EDAG

  • EAT positive in Q2 and Q3
  • EPS at EUR 0.34 after 9 months

  • Equity from end of 2020 up by 10.0 m€

  • Equity-ratio decreased due to higher balance-sheet total

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© 2021 EDAG Engineering Group AG. All rights reserved.

Page 9

Equity / Balance Sheet total

Q1-Q3 2021


HEADCOUNT AND CAPEX

EDAG

Headcount down by 139 employees (yoy)
- up by 110 employees (qoq)
- Quarterly growth in E/E and VE

  • CapEx up to 13.2 m€
  • CapEx levels at about 2.6% of revenues
  • Further increase over coming months expected

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Headcount (1)

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CapEx [m€]

Notes

  1. Including Trainees and work-study students

© 2021 EDAG Engineering Group AG. All rights reserved.

Q1-Q3 2021


TRADE WORKING CAPITAL

EDAG

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© 2021 EDAG Engineering Group AG. All rights reserved.

Page 11

Q1-Q3 2021


CASH FLOW

EDAG

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Operating CF [m€]

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Free CF [m€]

© 2021 EDAG Engineering Group AG. All rights reserved.

Page 12

Q1-Q3 2021


NET FINANCIAL DEBT
W/. AND W/O. LEASING
EDAG

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© 2021 EDAG Engineering Group AG. All rights reserved.
Page 13
Net Gearing w/. leasing (Net financial debt / equity)
Net Gearing w/o. leasing (Net financial debt / equity)
Q1-Q3 2021


OUTLOOK

EDAG

  • The current dynamically changing situation and the resulting extraordinary uncertainties pose considerable challenges for companies across all industries when it comes to forecasting economic development and deriving a reliable and resilient quantitative forecast.
  • Based on the expected continuation of the global economic recovery, sales are expected to increase in a range of round 3 to 5 percent for the full year 2021.
  • As a result of the cost-saving measures implemented, we continue to expect a notable improvement in adjusted EBIT in positive territory. Based on current estimates, the Group's adjusted EBIT margin is expected to be at the upper end of the range of round 3 to 4 percent.
  • This assessment remains largely dependent on further developments in global supply chain disruptions as well as the Corona pandemic. As a globally operating company, the EDAG Group is closely monitoring further developments and is prepared to take all necessary countermeasures in close contact with its customers.

© 2021 EDAG Engineering Group AG. All rights reserved.

Q1-Q3 2021


EDAG

QUESTIONS / ANSWERS

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© 2021 EDAG Engineering Group AG. All rights reserved.

Page 15

Q1-Q3 2021


INVESTOR RELATIONS

EDAG

IR Contact

EDAG Engineering Group AG
Schlossgasse 2
CH – 9320 Arbon

Phone:
+41 (0)71 544 33 – 11

Email:
[email protected]

Internet:
ir.edag.com

Financial Calendar

Date
31 Mar 22 - Publication Annual Report 2021
- Analyst Call FY 2021
31 Mar 22 - Annual press briefing
06 May 22 Publication interim report 1Q22
23 Jun 22 General Shareholders’ Meeting
25 Aug 22 - Publication interim report 1H22
- Analyst Call 1H22
10 Nov 22 Publication interim report 3Q22

© 2021 EDAG Engineering Group AG. All rights reserved.

Page 16

Q1-Q3 2021