EDAG Engineering

Investor Presentation • Mar 28, 2025

March 27th, 2025

EDAG ENGINEERING GROUP AG

ANALYST CALL FINANCIAL YEAR 2024

YOUR GLOBAL MOBILITY AND INDUSTRY ENGINEERING EXPERTS

WELCOME TO TODAY'S ANALYST CALL

Harald Keller CEO

Holger Merz CFO

EDAG GROUP FINANCIAL YEAR 2024 KEY FIGURES

m. EUR Revenues

Adj. EBIT margin

9,133

Employees

4.5 %

Apprentices

22.9

m. EUR Investments

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Q & A

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Q & A

MARKET ENVIRONMENT GLOBAL ECONOMIC TRENDS 2025

IMF global economic growth expectations for 2025 still at 3.3% and for Germany only at 0.3%.(1)

Potential tax cuts and deregulation offer opportunities and provide impulses; however, uncertainties persist, particularly regarding political developments in the US (e.g., tariffs for imports into the US).

Global car sales are expected to increase by 2 percent in 2025, reaching 80.4 m. vehicles.(2) In Europe, the CO₂ fleet regulation is expected to drive a significant expansion of electromobility.

Radical measures by OEMs and Tier 1 suppliers go beyond previously announced cost cuts and restructuring, while R&D investments remain under pressure due to the ongoing shift in OEM strategies and the reassessment of model portfolios.

European automakers primarily operate their R&D departments in high-wage countries near their home markets. Expectation of suppliers to create further add-value from best-cost countries.

Notes: 1. IMF World Economic Outlook Update, January 17, 2025. 2. German Automobile Association (VDA), press release from January 21, 2025

MARKET ENVIRONMENT ENGINEERING SERVICE PROVIDERS

~320 bn. EUR

R&D spending of German automotive industry 2025-2029 worldwide(1)

~540 bn. EUR

R&D expenses and

invests

until 2029

~220 bn. EUR

Invest into new and modified plants 2025-2029 worldwide(1)

The mobility industry's fundamental transformation continues:

• − Ongoing major transformation in the automotive industry
• − Allocation of further significant investments
• − Creating opportunities for innovative, adaptable, and globally operating ESPs like EDAG

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KEY ACTIVITIES RECAP ACTIVITIES

ZERO PROTOTYPE LAB

• Opening of Zero Prototype Lab in Wolfsburg in June 2024
• Vehicles can be driven virtually
• Reduction construction of costintensive prototypes and shortens development cycles

EMC COMPETENCE CENTER

• Opening of EMC Center in Fulda in July 2024
• Testing of electro-magnetic compatibility of products for customers from fields such as medical technology, agriculture, construction and mobility

LIGHT LABORATORY

• Opening of Light Laboratory in Wolfsburg in September 2024
• Ensuring functionality, quality, user-friendliness, energy efficiency and durability of devices and components

EDAG SMART INDUSTRY SUMMIT

• In-house exhibition in September 2024
• Information stands, expert talks and panel discussions across key industrial portfolio sectors: Smart Product, Smart Factory, Smart People, Smart Ecosystem and Industrial Metaverse

KEY ACTIVITIES OPERATIONAL MEASURES

STRENGHTENING OF POSITION IN BCC

• Purchase of two Indian companies to strenghten resouces in one of our best-cost country
• Enabling EDAG to increase competitiveness throughout the entire group

REDUCTION OF TIME-2-MARKET

• Reduced development times by utilizing the EDAG product engineering process
• Maximized use of virtual development tools
• Generative AI tools support the use of virtual tools

EXPANSION OF PORTFOLIO INTO THREE SECTORS

• Diversification of portfolio: Mobility, Industry and Public Solutions

• 30% growth in other industries

• Newly identified target industries medical products, renewable energies, defense, rail transport, chemicals and the semiconductor industry offer high innovation potential and long-term growth perspective
• Exhibiting at Hannover Trade Fair for first time ever next week

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FINANCIAL YEAR 2024 REVENUES

Notes: 1. Revenue defined as sales revenue plus change in inventories 2. Figures include sales revenue with other segments

FINANCIAL YEAR 2024 ADJUSTED EBIT

Notes: 1. Adj. for one-offs (purchase price allocation, cyber security insurance refunds and restructuring costs)

2023 2024

FINANCIAL YEAR 2024 HEADCOUNT, EAT, CAPEX, EQUITY

Notes: 1. Including apprentices

FINANCIAL YEAR 2024 TRADE WORKING CAPITAL

Trade Working Capital [m€]

FINANCIAL YEAR 2024 CASH FLOWS

FINANCIAL YEAR 2024 NET FINANCIAL DEBT

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OUTLOOK FINANCIAL YEAR 2025

The EDAG Group expects further challenges in the 2025 financial year, which will also be reflected in the development of revenue and earnings. In addition to the opportunities, the forecast is also associated with risks that arise for our customers and, consequently, for us, primarily from ongoing market dynamics and geopolitical uncertainties.

Revenue is expected to decrease up to around 8 percent

The adjusted EBIT margin is expected to be positive up to around 3 percent

The investment rate is expected in a range of around 3 percent

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INVESTOR RELATIONS FINANCIAL CALENDER

− Annual press briefing

EDAG Group FY 2024 Author: Investor Relations Version: 1 Release: 27.03.2025 Scope: EDAG Group © 2025 EDAG Group. All rights reserved.

INVESTOR RELATIONS CONTACT

IR Contact

EDAG Engineering Group AG Schlossgasse 2 CH – 9320 Arbon

Phone: +41 (0)71 544 33 -11 Email: ir@edag-group.ag Internet: ir.edag.com

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THANK YOU

INVESTOR RELATIONS CONTACT

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