MBB SE — Interim / Quarterly Report 2022

Aug 12, 2022

HALF-YEAR FINANCIAL REPORT JUNE 30, 2022

MBB SE, Berlin

MBB in figures

Half-year	2022	2021	Δ 2022
(unaudited)			/ 2021
Earnings figures (adjusted*)	€k	€k	%
Revenue	378,305	326,628	15.8
Operating performance	379,113	327,770	15.7
Total performance	393,803	338,501	16.3
Cost of materials	-214,999	-170,832	25.9
Staff costs	-114,218	-103,644	10.2
EBITDA	38,087	40,535	-6.0
EBITDA margin	10.0%	12.4%
EBIT	19,871	25,111	-20.9
EBIT margin	5.2%	7.7%
EBT	16,880	22,357	-24.5
EBT margin	4.5%	6.8%
Consolidated net profit after non-controlling interests	5,074	9,076	-44.1
eps in €	0.87	1.53	-43.1
Average number of shares in circulation	5,824	5,931
Earnings figures (IFRS)	€k	€k	%
EBITDA	37,427	18,751	99.6
Consolidated net profit or loss	3,496	-14,159	124.7
eps in €	0.60	-2.39	125.1
Figures from the statement of financial position (IFRS)	30-Jun	31-Dec
	€k	€k	%
Non-current assets	388,230	483,383	-19.7
Current assets	714,823	668,937	6.9
thereof liquid funds**	498,427	622,503	-19.9
Issued capital (share capital)	5,804	5,847	-0.7
Other equity	749,921	802,632	-6.6
Total equity	755,725	808,479	-6.5
Equity ratio	68.5%	70.2%
Non-current liabilities	123,851	125,447	-1.3
Current liabilities	223,478	218,394	2.3
Total assets	1,103,053	1,152,320	-4.3
Net cash (+) or net debt (-) **	418,518	534,563	-21.7
Employees (as of closing date)	3,606	3,541	1.8

* For a detailed account of the adjustments, please refer to the information provided in the section on results of operations , financial position and net assets.

** This figure includes the value of physical gold stocks and securities.

Percentages and figures in this report may be subject to rounding differences.

MBB in figures 1
Contents2
Welcome Note from the Executive Management 3
Interim Group management report4
Business and economic conditions4
Business Development4
Results of operations, financial position and net assets 5
Segment performance 7
Employees 7
Report on risks and opportunities 7
Outlook 8
IFRS interim consolidated financial statements 9
Notes to the interim consolidated financial statements 17
Accounting 17
Accounting policies 17
Review 17
Business combinations 17
Dividend 17
Changes in contingent liabilities 17
Related party transactions 17
Segment reporting 17
Events after the end of the reporting period 19
Responsibility statement 19
Financial calendar 20
Contact20
Imprint20

Welcome Note from the Executive Management

the list of economic risks has not become any shorter in the first half of 2022. While Covid-19 continues to cause considerable restrictions in China and the USA is feeling the effects of a tighter monetary policy, we are experiencing a Russian war of aggression in Europe, which is leading to rapidly rising energy prices and further exacerbating supply chain bottlenecks.

At the MBB Group, we were able to increase our revenue by 16% to €378 million in the first six months despite these challenges. Growth accelerated from 15% in the first quarter to 17% in the second quarter. Adjusted EBITDA in the first half of the year was down 6% year-on-year at €38 million, but this was mainly due to a weaker first quarter. In the second quarter, adjusted EBITDA at €23 million was as much as 11% higher year-on-year. The adjusted EBITDA margin increased from 9% in the first quarter to 11% in the second quarter and was thus 10% for the entire first half of the year.

In the Service & Infrastructure segment, Friedrich Vorwerk was able to win numerous significant orders in the first half of the year. In particular, the strategic order for the laying of cables for the Suedlink electricity freeway and the LNG connecting pipelines for Wilhelmshaven and Brunsbüttel caused order intake to grow to €252 million, which corresponds to an increase of 142% compared with the previous year. However, profitability was slightly below expectations with an adjusted EBITDA margin of 16%, which was mainly due to start-up costs for newly launched projects, the integration of the Puhlmann Group and the partially drastic price increases for materials and personnel.

DTS grew by 32% in the first half of the year, contributing €51 million to the Service & Infrastructure segment's revenues. Adjusted EBITDA at DTS was €8 million, corresponding to an EBITDA margin of 16%. In view of the recent increase in attention to the topic of IT security, the €100 million mark in annual revenue appears to be within reach for the first time in the history of DTS.

In the Technological Applications segment, Aumann increased its order intake in the first half of the year by 59% to €166 million compared to the already strong previous year. The company's revenues grew by 27% and reached €92 million. At €3 million, adjusted EBITDA was significantly higher than the still negative prior-year figure, underlining the gradual recovery of profitability levels.

Delignit's revenues of €32 million in the first half of the year did not quite match the previous year's figure, but this was mainly due to the first quarter. In the second quarter, revenues were even slightly higher than a year earlier. The adjusted EBITDA margin also increased significantly in the course of the first half, but still remained under previous year's levels. OBO, which also belongs to the Technological Applications segment, grew revenues by 35% to €13 million in the first half of the year and increased its profitability very significantly.

Revenues in the Consumer Goods segment rose by 29% to €48 million in the first half of the year. Whereas growth in the first quarter was 14%, an increase in revenues of 45% was achieved in the second quarter. After a somewhat weaker start to the year, CT Formpolster posted significant gains in both revenues and EBITDA over the course of the first half. However, the development at Hanke, which also belongs to the segment, was even more dramatic. While higher energy and raw material costs weighed heavily on margins at the beginning of the year, these were successively passed on to customers in the form of price increases in the second quarter.

MBB's balance sheet strength again paid off in the first half of 2022. Overall, the Group's liquidity at the end of the first half of the year was down on the previous year at €498 million and net liquidity of €419 million, which was due in particular to a temporary increase in working capital at Friedrich Vorwerk and growth investments. The holding company MBB SE also recorded net liquidity of €353m, down 10% on the previous year, due to the extensive share buybacks, the increase in the stake in Aumann and the value development of securities. Both the MBB subsidiaries and the holding company see this strong capitalization as a good basis for the acquisition of new companies. For the current financial year, MBB continues to expect revenue growth to more than €740 million at an EBITDA margin of at least 10%.

Yours,

The Executive Management of MBB

Dr Constantin Mang Dr Jakob Ammer Torben Teichler

Chief Executive Officer Chief Operating Officer Chief Investment Officer

Interim Group management report

MBB SE is a medium-sized, family-owned company that forms the MBB Group together with its subsidiaries.

Business and economic conditions

The macro-economic environment in the first half of 2022 was characterized by high volatility, as the Russian war of aggression in the Ukraine and continuously strained supply chains led to increased price levels. The continuing restrictions caused by the COVID-19 pandemic in China, the already advanced tightening of monetary policy in the USA and increasing uncertainty with regard to energy supplies in Europe additionally slowed investment and consumption.

After moderate growth in the first quarter of 2022, German gross domestic product (GDP) stagnated in the second quarter. Retail revenue decreased year-on-year, particularly due lowered demand in response to higher prices. The war exacerbated bottlenecks in raw materials and intermediates supply, resulting in temporary production stoppages, especially in the automotive industry. These bottlenecks, together with sharp rises in energy prices, drove up production costs and producer prices. According to the German Federal Statistical Office, the inflation rate in Germany was 7.5% in July 2022. The outlook for the German industrial economy in the coming months remains muted and is characterized by uncertainties relating to the course of the Russia-Ukraine war and the threat of a supply freeze for Russian gas, as well as a weakening consumer sentiment. For 2022, the ifo Institute expects price-adjusted GDP to grow by 2.5%. The German Bundesbank expects an average annual inflation rate of 7.1% for 2022.

According to the German Association of the Automotive Industry (VDA), disrupted value and logistics chains, the shortage of semiconductors, war-related uncertainties and high price dynamics weighed on demand for passenger cars and light commercial vehicles. Compared with the first half of 2021, sales in the EU (European Union) fell by 14% and in the USA by 18%, whereas sales in China grew by 4%. Passenger car registrations in Germany also fell by around 11% compared with the first half of 2021. At 24.7%, the share of newly registered e-vehicles increased by 1.1 percentage points compared with the first half of 2021.

The digital association Bitkom sees a significant improvement in business expectations for the German IT and telecommunications sector due to full order backlog and a two-year high in incoming orders. For the year as a whole, the association expects revenue in the information technology sector to increase by 6.7%. Industry growth is expected to be strongly driven by cloud business and investments in digital work and secure, resilient infrastructure.

Since the beginning of the Russian war of aggression on the Ukraine, EU countries and Germany in particular have been faced with the challenge of making their energy supply both crisis -proof and more climate-friendly. Reduced Russian gas supplies prompted the German Federal Ministry of Economics and Climate Protection to declare the second stage of the Gas Emergency Plan on June 23, 2022. The state has implemented strong measures to replete its gas stockpiles and to conserve energy. These include a state purchase program for natural gas, financial resources to replete gas stockpiles, the temporary substitution of gas-fired power generation with coal-fired power generation, and a planned gas auction model to incentivize the industrial sector to lower their gas consumption.

The EU sanctions packages against Russia and the risk of a Russian energy supply freeze are causing Germany to seek independence from Russian oil, coal and gas. The measures introduced include increased energy imports from other nation-states, investment in liquefied natural gas terminals and pipeline infrastructure, promoted by an acceleration law, which must also be usable for green energy sources such as hydrogen. They also include an amendment to the energy policy law aimed at accelerating the expansion of renewables to increase their share of gross electricity consumption to at least 80% in 2030.

In the first half of 2022, renewables covered around 49% of gross domestic electricity consumption in Germany. The increase of 6 percentage points compared with the first half of the previous year is mostly due to a weather-related increase in electricity generation from onshore wind turbines and photovoltaic systems.

Business Development

The MBB Group increased its revenue in the first six months of the financial year by 15.8% from €326.6 million to €378.3 million despite a challenging environment. In the same period, adjusted EBITDA decreased from €40.5 million to €38.1 million. Thus, the adjusted EBITDA margin of 10.0% for the first half of 2022 was below the level of the prior-year period, when it was 12.4%. Adjusted earnings per share amounted to €0.87.

The Service & Infrastructure segment, which comprises Friedrich Vorwerk and DTS, increased its revenue by 13.0% to €193.7 million. Friedrich Vorwerk contributed to this growth with an increase in revenue of 7.6% and DTS with an increase in revenue of 31.6%. At €30.4 million, adjusted EBITDA for the segment was down on the previous year's figure of €33.7 million. While DTS maintained its high level of profitability with a significant increase in revenue, EBITDA at Friedrich Vorwerk was €5.2 million lower than the previous year. This was particularly due to the simultaneous start-up of various major projects and the associated start-up costs. In addition, price increases for raw materials impacted profitability. Thanks to newly won major orders, the order backlog of Friedrich Vorwerk was at a record level of €421.9 million as of June 30, 2022. Particularly noteworthy in this context are two major contracts won for the realization of connecting lines for the liquefied natural gas terminals in Brunsbüttel and Wilhelmshaven, as well as the commissioning of Bohlen & Doyen as part of a joint venture for cable laying and logistics as part of the planned high-voltage direct current transmission line SuedLink. On April 27, 2022, Friedrich Vorwerk also acquired Hempel Aluminiumbau GmbH, a strategically important supplier of special switchgear cabinets.

The Technological Applications segment, which comprises the listed companies Aumann and Delignit as well as OBO, which specializes in tooling products, recorded revenue growth of 15.6% to €137.2 million in the first half-year (previous year: €118.7 million). In the same period, adjusted EBITDA more than doubled to €5.3 million (previous year: €2.1 million). Aumann performed particularly well year-on-year, increasing its revenue by a substantial 26.8% to €92.2 million. The order intake of Aumann continued the strong performance of the previous quarters and reached €165.6 million for the first half of the year, a year-on-year increase of 59.1%. The e-mobility segment generated order intake of €127.8 million, accounting for around 77.1% of total order intake. Delignit faced challenges in the supply chain in the first half of the year despite unabated high demand. In particular, production interruptions at OEM customers, often announced at very short notice and raw material price increases impacted revenue and the company's profitability. Compared to the previous year, revenue decreased by 11.7% to €32.1 million while EBITDA came out significantly below previous year's levels.

The Consumer Goods segment, comprising the mattress manufacturer CT Formpolster and Hanke, which specializes in tissue products, recorded a 29.0% increase in revenue to €47.7 million (previous year: €36.9 million). However, the segment's profitability was significantly lower than in the previous year against the backdrop of rapidly rising energy and raw material prices. The EBITDA margin in the first half of the year was 5.2% (previous year: 9.1%). Because of successful price increases, profitability should improve noticeably in the second half of the year. While Hanke was able to increase its revenue by 53.6% to €30.4 million, CT Formpolster recorded revenue at the level of the previous year with the same profitability.

The Board and the Executive Management of MBB SE have proposed to the Annual General Meeting on June 30, 2022 a dividend payment of €1.98 per dividend-bearing share. The basic dividend included therein of €0.99 has been raised for the 13th consecutive time and has been continuously increased since the IPO of MBB SE in 2006. The Annual General Meeting approved the company's proposal by a large majority. The dividend was paid on July 5, 2022.

MBB SE resolved on February 21, 2022 to make use of the authorization granted by the Annual General Meeting on May 28, 2019 to acquire treasury shares in accordance with Section 71 (1) no. 8 AktG. As from February 23, 2022, the company intended to purchase treasury shares with a maximum volume of €6.0 million via the stock exchange. As of the balance sheet date, 42,640 shares with a total value of €5.2 million were acquired under the program. The share buyback program ended on April 30, 2022.

Results of operations, financial position and net assets

Against the backdrop of a volatile economic environment, the results of operations, financial position and net assets of the MBB Group remain positive. At €378.3 million, consolidated revenue after six months of the financial year 2022 is 15.8% above last year's level (previous year: €326.6 million).

Income from joint ventures and associates amounts to €6.2 million (previous year: €0.4 million). Other adjusted operating income of €8.5 million (previous year: €10.4 million) includes income from securities of €1.9 million, income from the reversal of provisions of €0.9 million, income from capitalized own work of €1.3 million, income from the offsetting of remuneration in kind of €1.2 million, and other income of €3.2 million. Own work capitalized mainly relates to the capitalization of development costs at Aumann.

Adjusted cost of materials increased by 25.9% to €215.0 million, adjusted staff costs increased by 10.2% to €114.2 million.

Adjusted other operating expenses amounted to €26.5 million (previous year: €23.5 million) after six months. These include maintenance and repair expenses, legal and consulting fees, advertising expenses, insurance premiums, travel expenses and other third-party services.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) decreased by 6.0% to €38.1 million with a margin of 10.0% (previous year: 12.4%). Adjustments were made for staff costs in the amount of €1.1 million, which consist of costs related to MBB SE's and Aumann AG's stock option programs. In addition, other income of €0.4 million was adjusted, resulting from the sale of property, plant and equipment at Aumann, which was written off and adjusted in the previous year as part of a restructuring project. In the same period of the previous year, staff costs of €20.0 million and other costs of €1.1 million were adjusted that related each to the IPO of Friedrich Vorwerk Group SE.

Adjusted depreciation and amortization increased by 18.1% year-on-year to €18.2 million after six months of the financial year 2022. The adjusted figure includes depreciation and amortization of assets amounting to €1.9 million capitalized as part of purchase price allocations (previous year: €2.3 million).

This resulted in an adjusted EBIT (earnings before interest and taxes) of €19.9 million (previous year: €25.1 million).

Taking into account net negative finance costs of €-3.0 million (previous year: €-2.8 million), adjusted EBT (earnings before taxes) amounted to €16.9 million (previous year: €22.4 million).

The adjusted consolidated net income after minority interests amounted to €5.1 million in the first halfyear (previous year: €9.1 million) or €0.87 per share (previous year: €1.53).

Consolidated equity as of June 30, 2022 amounts to €755.7 million (December 31, 2021: €808.5 million). In relation to the consolidated balance sheet total of €1,103.1 million (December 31, 2021: €1,152.3 million), the equity ratio slightly decreased to 68.5% compared to 70.2% as of December 31, 2021.

As of June 30, 2022 the MBB Group had liquid funds (including securities and physical gold holdings) of €498.4 million (December 31, 2021: €622.5 million), of which MBB SE accounted for €353.9 million (December 31, 2021: €402.2 million). After deducting the Group's financial liabilities of €79.9 million (December 31, 2021: €87.9 million), the MBB Group's net cash position amounts to €418.5 million, compared to €534.6 million as of December 31, 2021. Of this amount, €353.1 million (December 31, 2021: €401.2 million) was attributable to MBB SE.

The decrease in net cash is partly attributable to a negative cash flow from operating activ ities of €-39.2 million. Significant effects arose at Friedrich Vorwerk, whose operating cash flow is characterized by a seasonal increase in net working capital over the course of the year, which was further intensified in the first half-year of 2022 by the simultaneous start-up of several major projects. Furthermore, the operating cash flow in the first half-year was impacted by various temporary capital gain tax and value added tax effects, which will mostly be reversed over the year. Net cash was also reduced by net investments in intangible assets and property, plant and equipment (€-18.8 million), by the acquisition of an additional 4.69% shareholding in Aumann (€-11.6 million), the purchase of treasury shares (€-5.2 million), dividend payments to non-controlling interests (€-3.8 million) and the fair value measurement of securities (€-30.2 million).

Due to current economic uncertainties, MBB SE and Aumann increased their investments in short-term government bonds by €29.0 million in the first half of the year, while their holdings of stocks were reduced by €73.4 million. In the consolidated statement of cash flows, the effect of this portfolio shift is presented in the cash flows from investing activities. They represent a transfer within net cash.

Segment performance

The following segments are reported:

• Service & Infrastructure
• Technological Applications
• Consumer Goods

In first half-year 2022, the Service & Infrastructure segment could raise revenue to €193.7 million (previous year: €171.4 million), while adjusted EBITDA amounted to €30.4 million for the same period (previous year: €33.7 million). This corresponds to an EBITDA margin of 15.7% (previous year: 19.7%).

In the Technological Applications segment, revenue also increased to €137.2 million (previous year: €118.7 million), while adjusted EBITDA increased significantly to €5.3 million (previous year: €2.1 million).

Revenue in the Consumer Goods segment increased to €47.7 million (previous year: €36.9 million). Segment EBITDA is down year-on-year at €2.5 million (previous year: €3.3 million).

Employees

The number of people employed by the MBB Group slightly increased from 3,541 as of December 31, 2021 to 3,606 as of June 30, 2022. In addition, the MBB Group is currently training 217 apprentices and employees in dual study programs.

Report on risks and opportunities

The risks and opportunities for the business development of the MBB Group are described in the Group management report for the 2021 financial year, which is available on our website www.mbb.com. The assessment remains unchanged. MBB SE's risk management system is designed to identify risks early on and to take immediate action.

The Russian war of aggression in the Ukraine impacts the MBB Group mainly indirectly, as almost no revenue was generated with Russian business partners even before the onset of the war. The group companies are affected by the indirect consequences of the conflict to varying degrees, such as increased energy costs and supply bottlenecks. Within the MBB Group, the increased energy costs mainly affect the more energy-intensive companies, above all Hanke, which specializes in the manufacture of tissue products. However, the increases could largely be passed on to customers in the form of price increases. In the event that gas supplies to industrial companies are to be rationed or interrupted in the coming winter, we currently expect that the MBB Group would be affected to a lesser extent and that the situation would remain manageable.

On the other hand, the current situation also presents opportunities for the subsidiaries of MBB. For example, the need for investment in a stable and independent energy supply and IT security, which has been brought into focus by the conflict, means that Friedrich Vorwerk and DTS have the opportunity to

benefit significantly from future investments with their business models and thus make a significant contribution to strengthening the energy and IT infrastructure.

Outlook

The Executive Management of MBB continues to expect total revenue of more than €740 million in 2022 with an adjusted EBITDA margin of over 10%.

Berlin, August 12, 2022

The Executive Management of MBB SE

IFRS interim consolidated financial statements

Percentages and figures in this report may be subject to rounding differences.

IFRS consolidated statement of profit or loss	Jan 1 - Jun 30, 2022	Jan 1 - Jun 30, 2021
(unaudited)	€k	€k
Revenue	378,305	326,628
Increase (+) or decrease (-) in finished goods and work in progress	808	1,142
Operating performance	379,113	327,770
Income from joint ventures and associates	6,188	380
Income from initial consolidation	0	203
Other operating income	8,940	10,350
Total performance	394,241	338,704
Cost of raw materials and supplies	-135,221	-103,018
Cost of purchased services	-79,779	-67,814
Cost of materials	-214,999	-170,832
Wages and salaries	-90,896	-102,687
Social security and pension costs	-24,419	-21,841
Staff costs	-115,316	-124,528
Other operating expenses	-26,499	-24,593
Earnings before interest, taxes, depreciation and amortization
(EBITDA)	37,427	18,751
Depreciation and amortization expense	-20,158	-17,759
Earnings before interest and taxes (EBIT)	17,269	992
Finance income	99	68
Finance costs	-1,862	-1,061
Earnings attributable to non-controlling interests	-1,140	-1,653
Net finance costs	-2,903	-2,645
Earnings before taxes (EBT)	14,366	-1,654
Income tax expense	-4,661	-7,489
Other taxes	-468	-435
Profit or loss for the period	9,236	-9,578
Non-controlling interests	-5,741	-4,582
Consolidated net profit	3,496	-14,159
Basic earnings per share (in €)	0.60	-2.39
Diluted earnings per share (in €)	0.76	-2.15

IFRS consolidated statement of comprehensive income	Jan 1 - Jun 30, 2022	Jan 1 - Jun 30, 2021
(unaudited)	€k	€k
Consolidated net profit	3,496	-14,159
Non-controlling interests	5,741	4,582
Profit or loss for the period	9,236	-9,578
Items that may be subsequently reclassified to profit and loss
Fair value changes bonds and gold	574	-64
Currency translation differences	-177	423
Items that may not be subsequently reclassified to profit and loss
Fair value changes shares	-30,808	17,666
Other comprehensive income after taxes	-30,411	18,025
Comprehensive income for the reporting period	-21,175	8,447
thereof attributable to:
- Shareholders of the parent company	-24,125	1,868
- Non-controlling interests	2,950	6,579

(unaudited) €k €k Revenue 206,102 176,403 Increase (+) or decrease (-) in finished goods and work in progress 975 1,428 Operating performance 207,077 177,831 Income from joint ventures and associates 1,268 505 Other operating income 5,904 5,060 Total performance 214,249 183,396 Cost of raw materials and supplies -72,502 -53,700 Cost of purchased services -45,069 -42,506 Cost of materials -117,572 -96,207 Wages and salaries -47,366 -43,590 Social security and pension costs -12,778 -11,044 Staff costs -60,144 -54,634 Other operating expenses -13,411 -12,052 Earnings before interest, taxes, depreciation and amortization (EBITDA) 23,122 20,503 Depreciation and amortization expense -10,316 -9,074 Earnings before interest and taxes (EBIT) 12,806 11,429 Finance income 22 51 Finance costs -963 -798 Impairment on securities 0 46 Earnings attributable to non-controlling interests -695 -1,036 Net finance costs -1,635 -1,737 Earnings before taxes (EBT) 11,171 9,692 Income tax expense -3,263 592 Other taxes -226 -232 Profit or loss for the period 7,682 10,052 Non-controlling interests -4,060 -4,317 Consolidated net profit or loss 3,622 5,735 Basic earnings per share (in €) 0.62 0.97 Diluted earnings per share (in €) 0.69 1.01	IFRS consolidated statement of profit or loss	Apr 1 - Jun 30, 2022	Apr 1 - Jun 30, 2021

Statement of financial position	Jun 30, 2022	Dec 31, 2021
Assets (IFRS)	unaudited	audited
	€k	€k
Non-current assets
Concessions, industrial property rights and similar rights	22,562	24,344
Goodwill	47,719	46,141
Advance payments	4	4
Intangible assets	70,285	70,489
Land and buildings including buildings on third-party land	88,032	90,756
Technical equipment and machinery	61,869	62,862
Other equipment, operating and office equipment	29,957	27,067
Advance payments and assets under development	4,936	2,999
Property, plant and equipment	184,793	183,684
Joint ventures and associates	15,372	8,900
Other participations	1	1
Long-term securities	96,465	201,309
Other loans	1,261	1,310
Financial assets	113,098	211,519
Deferred tax assets	20,054	17,691
	388,230	483,383
Current assets
Raw materials and supplies	27,785	20,890
Work in progress	9,903	8,399
Finished goods and commodities	12,882	11,210
Advance payments	9,384	5,497
Inventories	59,954	45,996
Trade receivables	63,405	58,447
Contract assets	154,427	119,168
Income tax receivables	11,761	9,615
Other current assets	21,270	24,082
Trade receivables and other current assets	250,862	201,695
Gold	4,476	4,153
Securities	29,181	266
Derivative financial instruments	200	52
Financial assets	33,857	4,471
Cash in hand	123	108
Bank balances	368,182	416,668
Cash in hand and bank balances	368,305	416,775
Assets held for sale	1,845	0
	714,823	668,937
Total assets	1,103,053	1,152,320

Statement of financial position	Jun 30, 2022	Dec 31, 2021
Equity and liabilities (IFRS)	unaudited	audited
	€k	€k
Equity
Issued capital	5,804	5,847
Capital reserve	474,777	479,089
Legal reserve	61	61
Retained earnings and other comprehensive income	56,812	96,124
Non-controlling interests	218,270	227,357
	755,725	808,479
Non-current liabilities
Liabilities to banks	35,500	40,563
Lease liabilities	10,348	13,488
Liabilities from participation rights	10,213	10,213
Liabilities to non-controlling interests	2,444	1,304
Other liabilities	6,643	5,111
Pension provisions	28,244	28,255
Other provisions	2,908	2,447
Deferred tax liabilities	27,551	24,067
	123,851	125,447
Current liabilities
Liabilities to banks	25,415	25,437
Lease liabilities	8,646	8,452
Trade payables	58,981	53,364
Contract liabilities	34,043	34,421
Liabilities to non-controlling interests	4,637	4,997
Other liabilities	35,572	30,737
Accruals	27,781	23,634
Income tax liabilities	12,224	12,939
Other provisions	16,178	24,414
	223,478	218,394
Total equity and liabilities	1,103,053	1,152,320

Consolidated statement of cash flows	Jan 1 - Jun 30, 2022	Jan 1 - Jun 30, 2021
(unaudited)	€k	€k
1. Cash flow from operating activities
Earnings before interest and taxes (EBIT)	17,269	992
Depreciation and amortization expense	20,158	17,759
Increase (+), decrease (-) in provisions	-9,186	2,332
Gains (-), Losses (+) from disposal of non-current assets	-184	-1,612
Income from joint ventures and associates	-6,188	-380
Other non-cash expenses and income	585	-2,404
Adjustments for non-cash transactions	5,184	15,696
Increase (-), decrease (+) in inventories, trade receivables and other as sets	-63,353	-44,961
Decrease (-), increase (+) in trade payables and other liabilities	6,561	10,999
Change in working capital	-56,791	-33,962
Income taxes paid	-5,717	-8,402
Interest received	99	68
Dividend proceeds from joint ventures and associates	770	806
Cash flow from operating activities	-39,186	-24,802
2. Cash flow from investing activities
Investments (-), divestments (+) of intangible assets	-2,953	-3,396
Investments (-), divestments (+) of property, plant and equipment	-15,876	-16,707
Investments (-), divestments (+) of long-term financial assets and securi ties	44,599	-21,720
Business combination (less cash received)	-181	-890
Cash flow from investing activities	25,588	-42,713
3. Cash flow from financing activities
Proceeds from IPO of Friedrich Vorwerk Group SE	0	306,000
Payments for transaction costs from the issue of equity instruments	0	-12,650
Purchase of own shares	-5,207	-464
Payments to non-controlling interests	-3,762	-8,929
Profit distribution to shareholders	0	-10,441
Payments for (-), proceeds from disposal of (+) shares without change of control	-11,561	0
Proceeds from borrowings	8,065	18,879
Repayments of loans	-15,768	-8,995
Payments for lease liabilities	-4,835	-6,232
Interest payments	-1,843	-1,595
Cash flow from financing activities	-34,911	275,573

Consolidated statement of cash flows	Jan 1 - Jun 30, 2022	Jan 1 - Jun 30, 2021
(unaudited)	€k	€k
Cash and cash equivalents at end of period
Change in cash and cash equivalents (Subtotal 1-3)	-48,509	208,058
Change in liquidity from changes in the scope of consolidation	0	2
Effects of changes in foreign exchange rates (non-cash)	39	71
Cash and cash equivalents at beginning of period	416,775	209,728
Cash and cash equivalents at end of period	368,305	417,860
Composition of cash and cash equivalents
Cash in hand	123	108
Bank balances	368,182	417,752
Reconciliation to liquid funds as of Jun 30	2022	2021
Cash and cash equivalents at end of period	368,305	417,860
Gold	4,476	3,832
Securities	125,646	157,697
Liquid funds as of Jun 30	498,427	579,389

Statement of changes in consolidated equity
					Retained earnings and other comprehensive income
	Issued	Capital re	Legal re	Currency	Fair value	Reserve	Other re	Retained	Attributa	Non-con	Consoli
	capital	serve	serve	translation	reserve	for pen	serve	earnings	ble to	trolling	dated
				difference		sions			MBB SE	interests	equity
									sharehold
									ers
	€k	€k	€k	€k	€k	€k	€k	€k	€k	€k	€k
Jan 1, 2021	5,932	253,180	61	-2,072	16,748	-3,010	-2,274	86,291	354,856	144,835	499,692
Dividends paid	0	0	0	0	0	0	0	-10,441	-10,441	-8,471	-18,912
Subtotal	5,932	253,180	61	-2,072	16,748	-3,010	-2,274	75,850	344,415	136,365	480,781
Amounts recognized in other comprehensive income	0	0	0	0	15,733	0	0	0	15,733	1,869	17,602
Currency translation difference	0	0	0	295	0	0	0	0	295	128	423
Consolidated net profit	0	0	0	0	0	0	0	-14,159	-14,159	4,582	-9,578
Total comprehensive income	0	0	0	295	15,733	0	0	-14,159	1,868	6,579	8,447
Capital transactions involving a change in ownership interest	0	0	0	37	0	0	1,336	-1,814	-441	-118	-559
Share buy-back program	-3	-460	0	0	0	0	0	0	-464	0	-464
IPO and capital increase of Friedrich Vorwerk Group SE	0	232,778	0	2	0	7	0	-11,487	221,300	72,629	293,929
Changes in the scope of consolidation	0	0	0	0	0	0	0	0	0	343	343
Other changes	0	472	0	0	0	0	0	0	472	0	472
Jun 30, 2021	5,929	485,969	61	-1,738	32,481	-3,004	-937	48,390	567,150	215,797	782,949
Jan 1, 2022	5,847	479,089	61	-1,970	54,517	-2,390	-937	46,903	581,120	227,357	808,479
Dividends	0	0	0	0	0	0	0	-11,492	-11,492	-3,403	-14,895
Subtotal	5,847	479,089	61	-1,970	54,517	-2,390	-937	35,410	569,628	223,954	793,584
Amounts recognized in other comprehensive income	0	0	0	0	-27,350	0	0	0	-27,350	-2,884	-30,234
Currency translation difference	0	0	0	-271	0	0	0	0	-271	93	-177
Consolidated net profit	0	0	0	0	0	0	0	3,496	3,496	5,741	9,236
Total comprehensive income	0	0	0	-271	-27,350	0	0	3,496	-24,125	2,950	-21,175
Capital transactions involving a change in ownership interest	0	0	0	24	413	-124	0	-3,210	-2,897	-8,664	-11,561
Share buy-back program	-43	-5,165	0	0	0	0	0	0	-5,207	0	-5,207
Changes in the scope of consolidation	0	0	0	0	0	0	0	0	0	-476	-476
Other changes	0	853	0	-198	28	-95	-734	203	55	506	561
Jun 30, 2022	5,804	474,777	61	-2,414	27,609	-2,609	-1,672	35,899	537,455	218,270	755,725

Notes to the interim consolidated financial statements

Accounting

The interim financial report of the MBB Group for the period January 1 to June 30, 2022 was prepared on the basis of the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB) as adopted in the EU. It was prepared in accordance with IAS 34.

Accounting policies

The accounting policies adopted are the same as those applied in preparing the consolidated financial statements as of December 31, 2021. The preparation of the financial statements is influenced by accounting policies and assumptions and estimates affecting the amount and reporting of recognized assets, liabilities, contingent liabilities and income and expense items. Matters relating to revenue are deferred intra-year.

Review

The condensed interim consolidated financial statements as of June 30, 2022 and the Interim Group management report were neither audited in accordance with section 317 of the Handelsgesetzbuch (HGB – German Commercial Code) nor reviewed by an auditor.

Business combinations

As part of the initial consolidation of Hempel Aluminiumbau GmbH as of April 30, 2022, goodwill of €0.2 million was recognized.

Within the measurement period as defined by IFRS 3.45, the purchase price allocation of Gottfried Puhlmann GmbH Havelländische Bauunternehmung was adjusted due to the now finalized assessment of the contract assets and liabilities. Consequently, this lead to a change in the net assets acquired. Compared with the preliminary purchase price allocation and the presentation published within the Annual Report 2021, contract assets have decreased by €0.8 million and intangible assets by €0.3 million, while other provisions have increased by €1.4 million. Taking into account deferred taxes and a decrease in non-controlling interests of €0.5 million, goodwill increased by €1.4 million to €2.8 million.

Dividend

On June 30, 2022, the Annual General Meeting of MBB SE resolved to distribute a dividend of €11.5 million (€1.98 per dividend-bearing share) for the financial year 2021. The dividend was paid out on July 5, 2022.

Changes in contingent liabilities

There were no material changes in contingent liabilities compared to December 31, 2021.

Related party transactions

Business transactions between consolidated Group companies and unconsolidated Group companies are conducted at arm's-length conditions.

Segment reporting

The management of the MBB Group defines the segments as reported in the Interim Group management report. Segment liabilities do not include any liabilities for taxes, finance lease liabilities or liabilities to banks.

Segment reporting
Half-year (unaudited)	2022 €k	2021 €k	∆ 2022 / 2021 €k	in %
Service & Infrastructure
Revenue EBITDA (adjusted)	193,713 30,429	171,366 33,688	22,347 -3,259	13.0% -9.7%
Segment assets	251,946	209,201	42,745	20.4%
Segment liabilities	80,393	85,889	-5,496	-6.4%
Technological Applications
Revenue	137,230	118,675	18,555	15.6%
EBITDA (adjusted)	5,283	2,139	3,144	146.9%
Segment assets	243,450	237,604	5,846	2.5%
Segment liabilities	107,572	95,773	11,799	12.3%
Consumer Goods
Revenue	47,667	36,943	10,724	29.0%
EBITDA (adjusted)	2,546	3,345	-799	-23.9%
Segment assets	58,889	54,999	3,890	7.1%
Segment liabilities	22,963	16,296	6,667	40.9%
Reconciliation
Revenue intersegment Consumer Goods	-43	-60	17	-28.2%
Revenue intersegment Service & Infrastructure	-262	-296	34	-11.3%
Revenue	-306	-356	50	-14.2%
EBITDA (adjusted)	-172	1,362	-1,534	-112.6%
Group
Third party revenue Technological Applications	137,230	118,675	18,555	15.6%
Third party revenue Consumer Goods	47,624	36,883	10,741	29.1%
Third party revenue Service & Infrastructure	193,451	171,070	22,381	13.1%
Revenue	378,305	326,628	51,677	15.8%
EBITDA (adjusted)	38,087	40,535	-2,448	-6.0%

Adjusted EBITDA for the segments is reconciled to consolidated net profit as follows:

Reconciliation of EBITDA to consolidated net profit	2022	2021
Half-year	€k	€k
Total EBITDA (adjusted) of the segments	38,258	39,172
Adjustments of EBITDA	-660	-21,784
Reconciliation to Group EBITDA	-172	1,362
Group EBITDA	37,427	18,751
Depreciation and amortization expense	-20,158	-17,759
Net finance costs	-2,903	-2,645
Earnings before taxes (EBT)	14,366	-1,654
Income tax expense	-4,661	-7,489
Other taxes	-468	-435
Profit or loss for the period	9,236	-9,578
Non-controlling interests	-5,741	-4,582
Consolidated net profit	3,496	-14,159

The Adjustments of EBITDA in the first half-year 2022, on the one hand include staff costs in connection with the stock option programs of MBB SE and Aumann AG in the amount of €1.1 million. In addition, other income of €0.4 million was adjusted, resulting from the sale of property, plant and equipment at Aumann, which was written off and adjusted in the previous year as part of a restructuring project. In the

prior-year period, the main adjustments were one-off staff costs €20,0 million and other costs of €1.1 million each incurred in the course of the IPO of Friedrich Vorwerk Group SE.

The reconciliation to the Group EBITDA includes consolidation effects between the segments and t he holding company's income and expenses that are not based on transactions with subsidiaries. This includes, in particular, income and expenses from securities and the remuneration of the holding company's staff.

Events after the end of the reporting period There were no significant events after the end of the reporting period.

Responsibility statement

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the results of operations, financial position and net assets of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the po sition of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.

Berlin, August 12, 2022

The Executive Management of MBB SE

Financial calendar

Commerzbank and ODDO BHF - Corporate Conference September 6 – 8, 2022

Berenberg / GS German Corporate Conference September 20, 2022

Quarterly Statement Q3 2022

November 11, 2022

Deutsches Eigenkapitalforum November 28 – 30, 2022

End of Fiscal Year

December 31, 2022

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