SAF-HOLLAND SE

Quarterly Report • May 13, 2020

2020 SAF-HOLLAND Quarterly Statement Q1

KEY FIGURES

Results of operations

in E tho nds UR usa
	/20 Q1 20	/20 Q1 19
Sal es	283 ,41 1	345 ,96 8
Adj ed rofi ust t gro ss p	52, 261	62, 091
Adj ed rofi in i n % ust t m gro ss p arg	18. 4	17. 9
Adj ed EBI TDA ust	27, 508	31, 912
Adj ed rgin in % ust EBI TDA ma	9.7	9.2
Adj ed EBI T ust	18, 441	24, 775
Adj ed EBI T m in i n % ust arg	6.5	7.2
Adj ed ult for the riod ust res pe	11, 288	16, 374
Adj ed und ilut ed har nin e in EU R ust ear gs p er s	0.2 5	0.3 6
Dilu ted ad ted har jus rnin e in EU R ea gs p er s	0.2 1	0.3 1

Financial position

in EUR thousands

	/20 Q1 20	/20 Q1 19
Cas h fl fro atin ctiv itie ow m o per g a s	32, 014	8,5 59
h fl fro s (p lan d Cas m i stin ctiv itie erty t an ow nve g a rop , p
/ in ipm gi ble ) ent tan ets equ ass	–6, 323	–14 ,25 2
fre sh f low Op ting era e ca	25, 691	–5, 693
al f h fl Tot ree cas ow	4,0 56	–18 ,12 0
h a nd h e val Cas qui ent cas s	319 ,39 3	135 ,30 7
de bt Net	–25 6,2 25	–25 0,9 23

Employees

	/20 Q1 20	/20 Q1 19
loy the dat Em ing at ort p ees rep e	3,4 28	3,8 99
loy (on ) Em p ees av era ge	3,4 91	3,9 00

Net assets in EUR thousands 03/31/2020 1,181,276 318,554

Yie ld
in %
	/20 Q1 20	/20 Q1 19
pita l em loy ed (RO CE) * Ret urn on ca p	12. 1	15. 2

	03/ 31/ 202 0	12/ 31/ 201 9
Bal e sh al eet tot anc	1,1 81, 276	979 ,24 4
Equ ity	318 ,55 4	318 ,00 7
Equ ity rati o in %	27. 0	32. 5
rkin pita l Net wo g ca	159 ,16 9	183 ,76 3
rkin l in f sa les Net pita % o wo g ca	13. 0	14 .3

NOTE:

All figures shown are rounded, minor discrepancies may arise from addiƟons of these amounts.

Net working capital raƟo = RaƟo of inventories and trade receivables less trade payables to sales of last twelve months. Net working capital raƟo for Q1 2019 retrospecƟvely adjusted according to the new definiƟon.

OperaƟng Free Cash Flow = Net cash flow from operaƟng acƟviƟes less net cash flow from invesƟng acƟviƟes (purchase of PP&E and intangible assets less proceeds from sales of PP&E). OperaƟng free cash flow for Q1 2019 retrospecƟvely adjusted according to the new definiƟon.

ROCE = Adjusted EBIT / (total equity + financial liabiliƟes (excl. refinancing costs, incl. lease liabiliƟes) + pension and other similar benefits ‐ cash and cash equivalents). ROCE for Q1 2019 retrospecƟvely adjusted according to the new definiƟon.

—Table of Contents

4 Group Interim Management Report

• 4 Key events in the first three months of 2020
• 6 Industry environment
• 7 Sales and earnings performance
• 13 Opportunities and Risk Report
• 14 Outlook
• 16 Events after the Balance Sheet Date
• 17 Alternative Performance Measures

18 Selected Financial Data

• 18 Consolidated Statement of Comprehensive Income
• 19 Consolidated Balance Sheet
• 20 Consolidated Statement of Cash Flows
• 21 Segment information

22 Additional Information

• 22 Financial calendar and contact information
• 22 Imprint

KEY EVENTS IN THE FIRST THREE MONTHS OF 2020

NEW SEGMENTATION IN CORPORATE MANAGEMENT

The regions of APAC and China were combined into one region effecƟve January 1, 2020 which was named APAC. Commencing January 1, 2020 the geographic segmentaƟon of SAF‐HOLLAND therefore consists of EMEA, the Americas and APAC.

Mike Ginocchio, the President of the APAC region to date, assumed responsibility for the new APAC region on this date. He is a member of the ExecuƟve CommiƩee and reports directly to Alexander Geis, CEO of SAF‐ HOLLAND.

CHANGES TO THE GROUP MANAGEMENT BOARD

Dr. MaƩhias Heiden, Chief Financial Officer (CFO) of the SAF‐HOLLAND Group, has informed the Board of Directors that he would like to terminate his contract of service at the end of 2020 at the latest as he will pursue a new professional challenge. The Board of Directors has started a selecƟon process to idenƟfy a suitable successor for Dr. Heiden. UnƟl his departure – at the latest by the end of 2020 – Dr. Heiden will conƟnue to fully perform his duƟes. It is possible that an earlier terminaƟon date will be agreed on by mutual consent.

ACQUISITION OF THE REMAINING SHARES IN V.ORLANDI S.P.A.

In January 2020, SAF‐HOLLAND acquired the remaining 30 per cent of the shares in the coupling specialist, V.Orlandi S.p.A. for a purchase price of EUR 21.2 million. As a result, SAF‐HOLLAND now holds all the shares in V.Orlandi S.p.A. aŌer already acquiring a stake of 70 per cent in the first quarter of 2018.

EXTRAORDINARY GENERAL MEETING APPROVES RESOLUTION TO CONVERT THE LEGAL FORM INTO A EUROPEAN COMPANY (SE)

The extraordinary general meeƟng of SAF‐HOLLAND S.A. held on February 14, 2020 in Luxembourg, passed a resoluƟon to convert the legal form into a European Company (Societas Europaea, SE) under the name of SAF‐HOLLAND SE.

In a second step, the company plans to transfer of the registered office of the company to Germany. An extraordinary general meeƟng, which will be held on May 20, 2020 immediately aŌer the Annual General MeeƟng has been concluded, will vote on the required resoluƟons – a capital increase from company funds, the transfer plan and the restatement of the arƟcles of associaƟon of SAF‐HOLLAND SE with its future registered office in Germany.

CONVERSION INTO A EUROPEAN COMPANY CONCLUDED

SAF‐HOLLAND S.A. completed its conversion into a European Company (Societas Europaea, SE) upon being entered into the Luxembourg business register on February 24, 2020 under the name of SAF‐HOLLAND SE.

PROMISSORY NOTE LOAN SUCCESSFULLY PLACED – ORIGINAL TARGETED VOLUME OF AT LEAST EUR 100 MILLION OVERSUBSCRIBED MULTIPLE TIMES, STEPPED UP TO EUR 250 MILLION

On March 9, 2020 SAF‐HOLLAND SE successfully placed a promissory note transacƟon with a volume of EUR 250 million via its subsidiary, SAF‐HOLLAND GmbH. Because of the high demand and the resulƟng over‐ subscripƟon, the final amount exceeded the target volume of EUR 100 million by EUR 150 million.

The tranches of the promissory note feature fixed as well as variable interest rates and maturiƟes of three, three and a half, five, seven and ten years. All tranches were allocated at the lowest end of the respecƟvely offered price range. The loan will be paid out to the company at the end of March and at the end of September 2020.

The proceeds will be used to finance the company generally and, in parƟcular, to refinance the converƟble bond that falls due on September 12, 2020 (volume: EUR 99.8 million) and the 5‐year tranches of the promissory note issued in November 2015 that falls due on November 27, 2020 (volume: EUR 140.5 million).

The issue will contribute to smoothing out the maturity profile and will widen the investor base of the SAF‐HOLLAND Group.

SITE‐SPECIFIC ADJUSTMENT OF PRODUCTION TAKING INTO ACCOUNT THE RESPECTIVE REQUIREMENTS

On March 30, 2020, SAF‐HOLLAND announced that it is adjusƟng the producƟon in its global producƟon network site specific, taking into account the respecƟve requirements. This affects the two German plants in Bessenbach and Singen as well as the producƟon and assembly plants in Turkey, Italy, Brazil, India and South Africa and some sales companies. The measures range from introducƟon of parƟal short Ɵme work in Germany to temporary site closures – largely by official order. The duraƟon and extent of the producƟon cutbacks will be adjusted flexibly to match the condiƟon of the supply chain and the sales markets.

INDUSTRY ENVIRONMENT

SECTOR‐SPECIFIC DEVELOPMENTS: TRUCK AND TRAILER MARKETS CONTRACT

The global commercial vehicle markets contracted in Q1 2020, also in response to the uncertainƟes about future economic prospects caused by the coronavirus. As a result, noƟceably fewer units were produced in North America, Europe, China and India than in the previous year.

TRUCK REGISTRATIONS IN EUROPE BELOW THE LEVEL OF THE PREVIOUS YEAR

According to the European Automobile Manufacturers AssociaƟon, ACEA, the number of new registraƟons for heavy‐duty trucks (over 16 tons) in the European Union in the first quarter of 2020 was below the level of the previous year (–27 per cent).

For example, the high‐volume markets of Germany (–26 per cent) and France (–28 per cent) both recorded a sharp contracƟon.

PRODUCTION ON THE NORTH AMERICAN TRUCK MARKET AT LOW LEVELS

AŌer a sudden fall (–20 per cent) in the producƟon of Class 8 trucks in the fourth quarter of 2019, producƟon conƟnued to decline in the first three months of 2020. In addiƟon to the record level of producƟon and also new registraƟons of heavy‐duty trucks in 2019, a key driver of the 25 per cent decrease in producƟon was uncertainty surrounding the future development of the economy on account of the coronavirus.

DECLINING PRODUCTION ON THE SOUTH AMERICAN TRUCK AND TRAILER MARKET

The South American market for trailers and heavy‐duty trucks was not able to shield itself from the general market trend and also posted falls in the producƟon of trailers (–7 per cent) and heavy‐duty trucks (–6 per cent).

NEGATIVE DEVELOPMENT ON THE EUROPEAN TRAILER MARKET

Due to the uncertain macroeconomic situaƟon, numerous trailer manufacturers closed down their producƟon at the end of the first quarter of 2020. Correspondingly, the producƟon of trailers fell by 15 per cent in the reporƟng period.

TRAILER MARKET IN NORTH AMERICA CONTRACTS SHARPLY

Due to the COVID‐19 pandemic, according to industry experts, the decline in producƟon expected at the beginning of the year for the first quarter increased from the low double‐digit percentage range to minus 25 percent.

DECLINING DEMAND FOR TRAILERS IN CHINA

In light of the deterioraƟng trade conflict between China and the USA and the potenƟal impact of the coronavirus on the future economic development of China, producƟon of trailers dropped by roughly 45 per cent at the beginning of the year. The premium segment, which is relevant for the business development of SAF‐HOLLAND (consisƟng of disc brake technology and air suspension systems to meet more stringent legal requirements), was unable to shield itself from the negaƟve market trend and also recorded a significant drop in demand.

PRODUCTION DECREASES IN INDIA

The weakness in the truck and trailer sector that started in 2019 conƟnued at the beginning of 2020. From January to March 2020, around 60 per cent fewer trailers and around 56 per cent fewer trucks were manufactured than in the same period last year.

SALES AND EARNINGS PERFORMANCE

kEU R
		al Tot	/20 Q1 20	in %		al Tot		in %
	/20 Q1 20	Adj ust nts me	adj ed ust	of s ale s	/20 Q1 19	Adj ust nts me	adj ed Q1 ust	of s ale s
Sal es	283 ,41 1	–	283 ,41 1	.0% 100	345 ,96 8	–	345 ,96 8	.0% 100
t of Cos les sa	–23 2,4 54	1,3 04	–23 1,1 50	–81 .6%	–28 5,7 16	1,8 39	–28 3,8 77	–82 .1%
rof it Gro ss p	50, 957	1,3 04	52, 261	18. 4%	60, 252	1,8 39	62, 091	17. 9%
Oth er i nco me	494	–	494	0.2 %	365	–	365	0.1 %
Oth er e xpe nse s	–	–	–	0.0 %	–	–	–	0.0 %
Sel ling ex pen ses	–16 ,24 9	1,9 34	–14 ,31 5	–5. 0%	–18 ,21 7	1,7 13	–16 ,50 4	–4. 8%
Adm inis ive trat exp ens es	–16 ,63 9	742	–15 ,89 7	–5. 6%	–18 ,36 0	2,2 01	–16 ,15 9	–4. 7%
ch and de vel Res ent sts ear opm co	–4, 567	88	–4, 479	–1. 6%	–5, 590	86	–5, 504	–1. 6%
Op ting fit era pro	13, 996	4,0 68	18, 064	6.4 %	18, 450	5,8 39	24, 289	7.0 %
Sha f ne ofit of inv d fo t pr est nts nte re o me ac cou r
usin he ity tho d g t equ me	377	–	377	% 0.1	486	–	486	% 0.1
EBI T	14, 373	4,0 68	18, 441	6.5 %	18, 936	5,8 39	24, 775	7.2 %
Fin e in anc com e	1,2 22	–	1,2 22	0.4 %	359	–	359	0.1 %
Fin anc e e xpe nse s	–4, 048	–	–4, 048	–1. 4%	–2, 765	–	–2, 765	–0. 8%
sul Fin t anc e re	–2, 826	–	–2, 826	–1. 0%	–2, 406	–	–2, 406	–0. 7%
ult bef Res tax ore es	11, 547	4,0 68	15, 615	% 5.5	16, 530	5,8 39	22, 369	% 6.5
Inco tax me es	–2, 890	–1, 437	–4, 327	–1. 5%	092 –5,	–90 3	995 –5,	–1. 7%
Gro tax rat up e	25. 0%		27. 7%		30. 8%		26. 8%
ult for the riod Res pe	8,6 57	2,6 31	11, 288	% 4.0	11, 438	4,9 36	16, 374	% 4.7

EXTRAORDINARY ITEMS

SAF‐HOLLAND eliminates certain income and expense items to facilitate its operaƟonal management (see the notes on alternaƟve performance measures on page 17). The adjusted earnings presented below correspond to the management perspecƟve.

In the first quarter of 2020 net expenses totalling EUR 4.1 million (previous year: EUR 5.8 million) were eliminated from earnings before interest and taxes (EBIT). These consist of restructuring expenses of EUR 1.6 million (previous year: EUR 3.5 million) and depreciaƟon and amorƟzaƟon of EUR 2.4 million (previous year: EUR 2.3 million) arising from purchase price allocaƟons. The significant decrease in restructuring expenses can be primarily aƩributed to the EMEA and APAC regions (see the segment reporƟng, page 9).

Net expenses totalling EUR 1.3 million were eliminated from the cost of sales in the first quarter of 2020 (previous year: EUR 1.8 million). These consist of restructuring expenses of EUR 0.8 million (previous year: EUR 1.3 million) and depreciaƟon and amorƟzaƟon of EUR 0.6 million (previous year: EUR 0.6 million) arising from purchase price allocaƟons.

Net expenses totalling EUR 1.9 million were eliminated from selling expenses in the first quarter of 2020 (previous year: EUR 1.7 million). These consist of restructuring expenses of EUR 0.2 million (previous year: EUR 0.0 million) and depreciaƟon and amorƟzaƟon of EUR 1.8 million (previous year: EUR 1.7 million) arising from purchase price allocaƟons.

Moreover, eliminations from general administrative expenses came to EUR 0.7 million (previous year: EUR 2.2 million) and consist solely of restructuring expenses.

With regard to research and development costs, depreciaƟon and amorƟzaƟon of EUR 0.1 million (previous year: EUR 0.1 million) arising from purchase price allocaƟons were eliminated.

The uniform Group tax rate used to calculate the net result for the period increased slightly to 27.7 per cent (previous year: 26.8 per cent).

FINANCIAL PERFORMANCE

The development described below describes the changes in the most significant line items of the income statement in the reporƟng period aŌer eliminaƟng the extraordinary effects discussed above.

GROUP SALES BELOW THE PREVIOUS YEAR DUE TO MARKET CONDITIONS

Group sales in the first quarter of 2020 came to EUR 283.4 million, roughly 18.1 per cent down on the figure for the previous year of EUR 346.0 million. The additional sales contributed by the entities acquired since January 2019 amounted to EUR 1.6 million.

The exchange rate gains, most of which originate from the appreciaƟon of the USD against the EUR, amounted to EUR 1.9 million. Consequently, aŌer eliminaƟng the effects of exchange rates and acquisiƟons, sales decreased by 19.1 per cent to EUR 279.9 million.

SHARE OF SPARE PARTS BUSINESS IN TOTAL SALES INCREASES SIGNIFICANTLY

Sales in the OE business decreased by 20.7 per cent or EUR 54.5 million to EUR 209.2 million in the reporƟng period from January to March 2020. The share of total sales accounted for by the OE business decreased from 76.2 per cent to 73.8 per cent.

in E UR tho nds usa
			Cha nge
	/20 Q1 20	/20 Q1 19	abs olu te	Cha in % nge
al e bu Ori gin qui sine ent pm ss	209 ,22 8	263 ,77 6	–54 ,54 8	–20 .7%
bu Spa sine arts re p ss	74, 183	82, 192	–8, 009	–9. 7%
Gro sale up s	283 ,41 1	345 ,96 8	–62 ,55 7	–18 .1%
al e bu Ori gin qui sine ss i n % ent pm
of G les rou p sa	73. 8%	76. 2%
bu f Spa sin in % o arts re p ess
Gro sale up s	26. 2%	23. 8%

By contrast, sales in the spare parts business only decreased by EUR –8.0 million or 9.7 per cent to EUR 74.2 million. As a result, the share of total sales accounted for by the spare parts business increased from 23.8 per cent to 26.2 per cent.

ADJUSTED GROSS PROFIT MARGIN IMPROVES TO 18.4 PER CENT

Adjusted gross profit slipped to EUR 52.3 million in the first quarter of 2020 due to the sales situaƟon (previous year: EUR 62.1 million). However, due to an increase in the share of the high‐margin spare parts business, the adjusted gross profit margin of 18.4 per cent is 50 base points above the level of the first quarter of the previous year of 17.9 per cent.

ADJUSTED EBIT MARGIN AT 6.5 PER CENT

Adjusted EBIT amounted to EUR 18.4 million in the first quarter of 2020 (previous year: EUR 24.8 million). The adjusted EBIT margin came to 6.5 per cent (previous year: 7.2 per cent). A factor burdening the margin is the relatively small decrease of 7.6 per cent in adjusted selling and administrative expenses to EUR 30.2 million (previous year: EUR 32.7 million) as not all cost‐ savings measures that have been initiated in all regions have shown their full effect yet.

HEADCOUNT NOTICEABLY DECLINING

As of March 31, 2020 SAF‐HOLLAND employed 3,428 people worldwide (previous year: 3,899 ). Compared to the previous year, the number of employees decreased by 12.1 per cent. The reducƟon in the headcount was spread over all regions in order to address the change in the market condiƟons.

Number of employees by region

	03/ 31/ 202 0	03/ 31/ 201 9
EM EA	1,4 29	1,4 67
eric Am as	1,6 80	61 1,7
APA C	319	671
al Tot	3,4 28	3,8 99

FINANCIAL RESULT BURDENED BY FOREIGN EXCHANGE EFFECTS

The financial result decreased slightly over the reporting period from January to March 2020 to EUR –2.8 million (previous year: EUR –2.4 million). Financial income improved by EUR 0.9 million to EUR 1.2 million chiefly on account of the realized exchange rate gains on loans denominated in foreign currency and dividends. Financial expenses rose by EUR 1.3 million to EUR 4.0 million, mainly on account of unrealized exchange rate losses on loans denominated in foreign currency and dividends.

ADJUSTED NET PROFIT FOR THE PERIOD SIGNIFICANTLY DOWN ON THE PREVIOUS YEAR

When calculaƟng the adjusted net profit for the period, a uniform tax rate of 27.7 per cent (previous year: 26.8 per cent) was applied. The adjusted net profit for the first quarter of 2020 of EUR 112.9 million lies 31.1 per cent below the previous year's level (previous year: EUR 16.4 million).

Based on unchanged approximately 45.4 million ordinary shares outstanding, adjusted basic earnings per share for the reporƟng period from January to March 2020 amounted to EUR 0.25 (previous year: EUR 0.36) and adjusted diluted earnings per share amounted to EUR 0.21 (previous year: EUR 0.31).

SEGMENT REPORTING

EMEA REGION: ADJUSTED EBIT MARGIN RELATIVELY STABLE EMEA

in E UR tho nds usa
			Cha nge
	/20 Q1 20	/20 Q1 19	abs olu te	Cha in % nge
Sal es	157 ,22 6	176 ,11 5	–18 ,88 9	–10 .7%
EBI T	14, 019	14, 649	–63 0	–4. 3%
EBI T m in i n % arg	8.9 %	8.3 %
Add nal dep and itio iati rec on izat ion of lan ort ty, t am pro per p and uip nd inta ngi ble nt a eq me
fro m P PA ets ass	1,1 62	1,0 74	88	8.2 %
fro m i PPA ste nto p‐u p nve ry of ring uisi tion me asu acq	–	–	–	–
Val ion eff s fr ll a nd uat ect om ca tion put op s	–	–	–	–
ring d tr ion Res tru ctu act an ans ts cos	–34 7	1,3 42	–1, 689	–12 5.9 %
Adj ed EBI ust T	14, 834	17, 065	–2, 231	–13 .1%
Adj ed EBI T m in i n % ust arg	9.4 %	9.7 %
iati and izat ion of Dep ort rec on am lan d e qui ty, t an ent pro per p pm and int ible (ex clu din ets ang ass g
) PPA	4,4 77	3,2 85	1,1 92	3% 36.
in % of sale s	2.8 %	1.9 %
Adj ed EBI TDA ust	19, 311	20, 350	–1, 039	–5. 1%
Adj ed rgin in % ust EBI TDA ma	3% 12.	5% 11.

In the EMEA region, sales declined in the first quarter of 2020 by 10.7 per cent to EUR 157.2 million (previous year: EUR 176.1 million). The enƟƟes acquired since January 2019 contributed an addiƟonal EUR 1.6 million to sales. Organic sales fell by 11.7 per cent to EUR 155.6 million.

The EMEA region generated an adjusted EBIT of EUR 14.8 million in the reporting period from January to March 2020 (previous year: EUR 17.1 million) and an adjusted EBIT margin of 9.4 per cent (previous year: 9.7 per cent). The OEM business and the spare parts business both had a positive effect on the gross margin. On the other hand, the relatively low decrease in adjusted selling and administrative expenses burdened the margin as not all cost‐savings measures that have been initiated have shown their full effect yet.

AMERICAS REGION: EARNINGS SITUATION DIMMED DUE TO LOWER VOLUME

Americas

in E tho nds UR usa
	/20 Q1 20	/20 Q1 19	Cha nge abs olu te	Cha in % nge
Sal es	105 3 ,11	131 ,31 7	–26 ,20 4	–20 .0%
EBI T	2,8 60	6,1 59	–3, 299	–53 .6%
EBI T m in i n % arg	2.7 %	4.7 %
Add itio nal dep iati and rec on of lan izat ion ort ty, t am pro per p ble and uip nd inta ngi nt a eq me fro ets m P PA ass	619	629	–10	6% –1.
fro PPA m i ste nto p‐u p nve ry ring of uisi tion me asu acq	–	–	–	–
Val eff s fr ll a nd ion uat ect om ca tion put op s	–	–	–	–
d tr Res ring ion tru ctu act an ans ts cos	641	–	641	–
Adj ed EBI T ust	4,1 20	6,7 88	–2, 668	–39 .3%
Adj ed in i n % ust EBI T m arg	% 3.9	% 5.2
of Dep iati and izat ion ort rec on am lan d e qui ty, t an ent pro per p pm and ible (ex clu din int ets ang ass g
) PPA	3,8 80	2,8 14	1,0 66	37. 9%
of sale in % s	3.7 %	2.1 %
Adj ed EBI TDA ust	8,0 00	9,6 02	–1, 602	–16 .7%
Adj ed EBI TDA rgin in % ust ma	7.6 %	7.3 %

In the Americas region, sales declined in the first quarter of 2020 by 20.0 per cent to EUR 105.1 million (previous year: EUR 131.3 million). AŌer eliminaƟng the effects of exchange rates, sales decreased by 21.5 per cent to EUR 103.1 million.

Adjusted EBIT of EUR 4.1 million is significantly down on the previous year of EUR 6.8 million. The adjusted EBIT margin comes to 3.9 per cent (previous year: 5.2 per cent). The spare parts business had a posiƟve effect and the OEM business a negaƟve effect on the gross margin. Another burden was placed on the margin by the relaƟvely low decrease in adjusted administraƟve expenses as not all cost‐savings measures that have been iniƟated have shown their full effect yet.

APAC REGION: SUSTAINED SLUMP IN CUSTOMER DEMAND BURDENS RESULTS

APAC

in E tho nds UR usa
			Cha nge
	/20 Q1 20	/20 Q1 19	abs olu te	Cha in % nge
Sal es	21, 072	38, 536	–17 ,46 4	.3% –45
EBI T	–2, 506	–1, 872	–63 4	33. 9%
EBI T m in i n % arg	–11 .9%	–4. 9%
Add itio nal dep iati and rec on of lan izat ion ort ty, t am pro per p and uip nd inta ngi ble nt a eq me fro ets m P PA ass	655	635	20	% 3.1
Imp airm ent	–
fro PPA m i ste nto p‐u p nve ry ring of uisi tion me asu acq	–	–	–	–
Val eff s fr ll a nd ion uat ect om ca tion put op s	–	–	–	–
d tr Res tru ctu ring act ion an ans ts cos	1,3 38	2,1 59	–82 1	–38 .0%
Adj ed ust EBI T	–51 3	922	–1, 435	% –15 5.6
Adj ed EBI T m in i n % ust arg	–2. 4%	2.4 %
and of Dep iati izat ion ort rec on am lan d e qui ty, t an ent pro per p pm and int ible (ex clu din ets ang ass g
) PPA	710	1,0 38	–32 8	–31 .6%
in % of sale s	3.4 %	2.7 %
Adj ed EBI TDA ust	197	1,9 60	–1, 763	–89 .9%
Adj ed EBI TDA rgin in % ust ma	0.9 %	5.1 %

The APAC region generated sales of EUR 21.1 million in the first quarter of 2020 (previous year: EUR 38.5 million). After eliminating the effects of exchange rates, sales decreased by 44.8 per cent to EUR 21.3 million in a year‐on‐year comparison. The main reason for this sharp slump in sales was the ongoing weakness of demand from customers in India.

Adjusted EBIT of EUR –0.5 million was well down on the result of the previous year of EUR 0.9 million. The adjusted EBIT margin came to –2.4 per cent (previous year: 2.4 per cent). The OEM business had a particularly negative effect on the gross margin. Another burden was placed on the margin by the relatively low decrease in adjusted selling and administrative expenses as not all cost‐savings measures that have been initiated have shown their full effect yet.

NET ASSETS

in E UR tho nds usa
			Cha nge
	03/ 31/ 202 0	12/ 31/ 201 9	abs olu te	Cha in % nge
No ent ets n‐c urr ass	514 ,66 7	520 ,80 5	–6, 138	–1. 2%
of w hic h in ble gi tan ets ass	256 ,37 7	257 ,92 6	–1, 549	–0. 6%
of w hic h p lan d erty t an rop , p
ipm ent equ	213 ,24 8	216 ,73 6	–3, 488	–1. 6%
r ( l) of w hic h o the fina ncia
ets ass	45, 042	46, 143	–1, 101	–2. 4%
Cur t as set ren s	666 ,60 9	458 ,43 9	208 ,17 0	45. 4%
of w hic h in ies tor ven	166 ,76 7	168 ,12 9	–1, 362	–0. 8%
of w hic h tr ade eiv abl rec es	135 ,34 0	126 ,00 0	9,3 40	% 7.4
of w hic h li qui d a ts sse	319 ,39 3	131 ,16 6	188 ,22 7	143 .5%
of w hic h o the r ( fina l) ncia
ets ass	45, 109	33, 144	11, 965	36. 1%
Bal e sh al eet tot anc	1,1 81, 276	979 ,24 4	202 ,03 2	20. 6%

BALANCE SHEET TOTAL TEMPORARILY INCREASED DUE TO PROMISSORY NOTE LOAN

Total assets have increased EUR 202.0 million or 20.6 per cent compared to the end of the 2019 financial year and amount to EUR 1,181.3 million as of March 31, 2020. The main factor underlying the increase is the temporary rise in cash and cash equivalents of EUR 188.2 million to EUR 319.4 million following the very successful issue of a promissory note loan in March 2020. The balance of cash and cash equivalents will decrease again aŌer it is used to repay the converƟble bond that falls due on September 12, 2020 (volume: EUR 99.8 million) and the 5‐year tranche of a promissory note loan issued in November 2015 that falls due on November 27, 2020 (volume: EUR 140.5 million).

EQUITY RATIO TEMPORARILY LOWER DUE TO PROMISSORY NOTE LOAN

tho nds in E UR usa
	03/ 31/ 202 0	12/ 31/ 201 9	Cha nge abs olu te	Cha in % nge
ity Equ	318 ,55 4	318 ,00 7	547	0.2 %
No lia bili ties ent n‐c urr	517 ,14 8	326 ,08 1	191 ,06 7	58. 6%
of w hic h in ‐be arin ter est g loa nd bon ds ns a	389 ,76 1	195 ,79 3	193 ,96 8	99. 1%
e le lia bili Fin ties anc ase	24, 465	25, 521	–1, 056	–4. 1%
of w hic h o the ent r no n‐c urr liab iliti es	102 ,92 2	104 ,76 7	–1, 845	–1. 8%
t lia bili ties Cur ren	345 ,57 4	335 ,15 6	10, 418	% 3.1
of w hic h in ‐be arin ter est g loa nd bon ds ns a	153 ,19 8	153 ,39 3	–19 5	1% –0.
Fin e le lia bili ties anc ase	8,1 94	8,1 26	68	0.8 %
of w hic h tr ade ble pa ya s	142 ,93 8	110 ,36 6	32, 572	29. 5%
of w hic h o the nt r cu rre liab iliti es	41, 244	63, 271	–22 ,02 7	.8% –34
Bal e sh al eet tot anc	1,1 81, 276	979 ,24 4	202 ,03 2	20. 6%

In comparison to December 31, 2019, equity has remained nearly unchanged at EUR 318.6 million. The net profit for the period of EUR 8.7 million increased equity accordingly. Exchange differences arising from the translaƟon of foreign operaƟons of EUR –8.1 million had the contrary effect. The significant increase in the balance sheet total results in a temporary deterioraƟon in the equity raƟo to 27.0 per cent.

Non‐current liabiliƟes increased by EUR 191.1 million in comparison to December 31, 2019 to EUR 517.1 million. The main factor was the issue of a promissory note loan in March 2020.

The increase in current liabiliƟes is mainly due to the significant increase in trade payables.

With the repayment of the converƟble bond on September 12, 2020 and the repayment of the 5‐year tranche of the promissory note loan issued in November 2015, which falls due on November 27, 2020, the liabiliƟes side of the balance sheet will be reduced in step with total assets.

NET WORKING CAPITAL RATIO IMPROVED SIGNIFICANTLY

ork l Ne ing ita t w ca p
in E UR tho nds usa
			Ver änd eru ng
			31. 03. 19 zu
	03/ 31/ 202 0	03/ 31/ 201 9	31. 03. 20	Cha in % nge
orie Inv ent s	166 ,76 7	195 ,89 6	–29 ,12 9	.9% –14
de ble Tra eiva rec s	135 ,34 0	186 ,88 9	–51 ,54 9	–27 .6%
de abl Tra pay es	–14 2,9 38	–16 8,4 45	25, 507	.1% –15
Net rkin pita l wo g ca	159 ,16 9	214 ,34 0	–55 ,17 1	–25 .7%
Sal es ( ) LTM	1,2 21, 598	1,3 51, 653	–13 0,0 55	–9. 6%
rkin pita l ra tio Net wo g ca	13. 0%	9% 15.

The net working capital raƟo, measured as the raƟo of net working capital to sales over the last 12 months, improved significantly in comparison to the same period of the previous year, falling from 15.9 per cent to 13.0 per cent. The reasons for the decline lie in much lower inventories and trade receivables that were only parƟally compensated by lower trade payables.

FINANCIAL POSITION

Financial position

in EUR thousands

	/20 Q1 20	/20 Q1 19
h fl fro atin ctiv itie Cas ow m o per g a s	32, 014	8,5 59
s (p Cas h fl fro m i stin ctiv itie lan d erty t an ow nve g a rop , p
/ in ipm gi ble ) ent tan ets equ ass	–6, 323	,25 2 –14
fre sh f low Op ting era e ca	25, 691	–5, 693
h fl fro s (a of sub sid es) Cas m i stin ctiv itie isit ion iari ow nve g a cqu	–21 ,63 5	–12 ,42 7
al f h fl Tot ree cas ow	4,0 56	–18 ,12 0
Oth er	–8, 614	–1, 229
Cha in fin ial liab iliti net nge anc es	–4, 558	–19 ,34 9

CLEARLY POSITIVE OPERATING FREE CASH FLOW

The cash flow from operaƟng acƟviƟes in the first quarter of 2020 came to EUR 32.0 million, significantly above the previous year's quarter of EUR 8.6 million. This improvement is largely due to the significant progress made in working capital management.

The cash flow from invesƟng acƟviƟes in property, plant and equipment and intangible assets of EUR –6.3 million lay EUR 7.9 million, or 55.6 per cent, below the comparable prior‐year figure. The focus of invesƟng acƟviƟes was on the further automaƟon of producƟon processes at various locaƟons in the Americas region and Germany.

The operaƟng free cash flow improved markedly from EUR –5.7 million to EUR 25.7 million. The total free cash flow of EUR 4.1 million (previous year: EUR –18.1 million) was affected by the cash ouƞlow associated with the purchase of the remaining shares in V.Orlandi of EUR 21.6 million.

NET FINANCIAL DEBT VIRTUALLY UNCHANGED

Net financial debt (including the liabiliƟes from finance leases) increased by EUR 4.5 million to EUR 256.2 million as of March 31, 2019 compared to the reporƟng date of December 31, 2019. As of March 31, 2019 SAF‐HOLLAND carries cash and cash equivalents of EUR 319.4 million (December 31, 2019: EUR 131.2 million).

OPPORTUNITIES AND RISK REPORT

With regard to an assessment of the opportuniƟes and risks for the SAF‐HOLLAND Group, there have not been any significant changes to the statements made on risks and opportuniƟes in the Annual Report 2019 (pages 74 to 83), with the following excepƟon:

The extent of impairment risks presented under operaƟve risks has increased in light of the spread of COVID‐19 from "low" to "medium".

OUTLOOK

SECTOR‐SPECIFIC DEVELOPMENT: CORONAVIRUS DAMPENING GLOBAL COMMERCIAL VEHICLE MARKETS

The prospects for 2020 remain challenging in the commercial vehicle markets that are relevant for SAF‐HOLLAND. Due to declining incoming orders and lower stocks of Class 8 trucks and trailers in North America, a significant downturn in producƟon is expected. In China, the premium segment that is of relevance to SAF‐HOLLAND will not be able to fully shield itself from the sustained market downturn. AŌer several years of growth, the producƟon of trailers in the core market of Europe is expected to fall, as already assumed in 2019.

RELEVANCE OF THE MARKETS FOR SAF‐HOLLAND

Due to the breakdown by customer segment into the OE (truck, trailer) and the aŌermarket business, the regions relevant to SAF‐HOLLAND vary in their importance.

While the EMEA region (approximately 3 per cent of Group sales) and the Americas region (approximately 10 per cent of Group sales) are the most relevant for the OE truck segment, the OE trailer and aŌermarket segments serve all markets worldwide.

EUROPEAN TRUCK MARKET DOWN ON THE PREVIOUS YEAR

European truck producƟon will decrease significantly in 2020. Leading manufacturers of commercial vehicles expect a decline in producƟon of 35 to 40 per cent. It should be noted, however, that the Western European truck market is only of minor importance for SAF‐HOLLAND.

DECLINING DEMAND FOR TRAILERS IN EUROPE IN 2020

AŌer sustained growth in the years 2012 to 2018 market researchers forecast a fall in producƟon of trailers in the year 2020, as already seen in the year 2019 (producƟon down by 7 per cent). Aside from the dampening effect of the coronavirus, the experts base their assessment on the fact that catch‐up effects had given an addiƟonal boost to demand for trailers and that many European fleet operators have modernized and expanded their vehicle fleets in recent years. Industry experts predict a decline in producƟon of 20 per cent.

TRUCK MARKET IN NORTH AMERICA CONTRACTS SHARPLY

AŌer record levels of producƟon and new registraƟons of heavy‐duty trucks, market researchers project a contracƟon of 40 to 50 per cent in the producƟon of Class 8 trucks in North America compared to 2019.

NORTH AMERICAN TRAILER MARKET AT A LOWER LEVEL

In spite of the sustained trend towards disc brakes, a sharp downturn is expected on the North American trailer market for 2020. It is expected to see 40 to 50 per cent fewer trailers rolling off the producƟon belts in 2020 than in the strong previous year.

DECLINING SALES IN SOUTH AMERICA FOR TRUCKS AND TRAILERS

AŌer projecƟng rising producƟon for heavy‐duty trucks and trailers at the beginning of the year, market researchers now project a sharp fall of 30 per cent in the producƟon of heavy‐duty trucks and 35 per cent in trailers.

DECLINING DEMAND FOR TRAILERS IN CHINA

AŌer high growth rates in recent years, a contracƟon of truck and trailer demand in China, which many market observers expected, will conƟnue in 2020. Due to the potenƟal impact of the coronavirus and the uncertainƟes relaƟng to the outcome of the trade war between China and the USA, a 30 per cent fall in the producƟon of heavy‐duty trucks is projected for the current year. SƟll, it is important to keep in mind that the Chinese truck market has no significance for SAF‐HOLLAND. According to industry experts, the producƟon of trailers will fall by 40 per cent on the previous year due to the adverse market environment. It is expected that the premium segment, which is relevant to SAF‐HOLLAND, will not be able to fully shield itself from the market downturn, despite the new loading limits and safety requirements for trailers.

With regard to the truck and trailer market in India, a further decline in producƟon of 25 per cent respecƟvely 30 per cent is anƟcipated in each of the two segments.

BUSINESS OUTLOOK

In light of the macroeconomic environment and the sector‐specific framework condiƟons and aŌer weighing up the risk and opportunity potenƟals (including the currently foreseeable impact on business from the corona pandemic) the Group Management Board of SAF‐HOLLAND anƟcipates a decrease in Group sales of 20 to 30 per cent for the 2020 financial year compared to 2019.

Under this assumpƟon, SAF‐HOLLAND is projecƟng an adjusted EBIT margin of between 3 per cent and 5 per cent for the 2020 financial year. The higher shares of sales accounted for by the spare parts business is helping to stabilize the margin. On the other hand, factors burdening the margin are the OEM business and the relaƟvely slow decline in selling and administraƟve expenses as the savings measures that have been iniƟated will develop their full effect unƟl the remaining course of the year.

In order to support the strategic objecƟves, SAF‐HOLLAND is planning investments of approximately 3 per cent of Group sales in the 2020 financial year (previous year: 4.1 per cent). These will focus primarily on conƟnuing the introducƟon of a Global Manufacturing Plaƞorm, further automaƟon and program FORWARD.

The exact commercial impact of the current COVID‐19 pandemic on SAF‐ HOLLAND however can sƟll not be precisely idenƟfied or reliably quanƟfied.

EVENTS AFTER THE BALANCE SHEET DATE

INKA KOLJONEN WILL BE THE NEW CHIEF FINANCIAL OFFICER (CFO) EFFECTIVE SEPTEMBER 1, 2020

On May 5, 2020 SAF‐HOLLAND announced that Inka Koljonen will be responsible as the new Chief Financial Officer for Finance, AccounƟng and Controlling, IT, Legal and Compliance, Internal Audit as well as Investor RelaƟons and Corporate CommunicaƟons in the SAF‐HOLLAND Group effecƟve September 1, 2020.

Inka Koljonen succeeds Dr. MaƩhias Heiden at SAF‐HOLLAND, who will leave the company on June 30, 2020.

During the transiƟon period, CEO Alexander Geis will provisionally assume responsibility for the CFO division. He will be supported by the Financial Experts on the Board of Directors, Ingrid Jägering and Dr. MarƟn KleinschmiƩ.

ALTERNATIVE PERFORMANCE MEASURES

In addiƟon to the key figures defined or specified in the IFRS financial reporƟng framework, SAF‐HOLLAND also reports key financial raƟos derived from or based on the prepared financial statements. These are known as AlternaƟve Performance Measures (APM).

SAF‐HOLLAND considers these key financial raƟos as important supplemental informaƟon for investors and other readers of the financial reports and press releases. These financial raƟos should therefore be seen in addiƟon to rather than as a subsƟtute for the informaƟon prepared in accordance with IFRS.

In complying with the requirements of the European SecuriƟes and Markets Authority (ESMA) Guidelines on AlternaƟve Performance Measures (APM), SAF‐HOLLAND provides an overview of the Alternative Performance Measures used, as well as their definition and compilation, on the SAF‐HOLLAND website at https://corporate.safholland.com/en/investor‐ relations/alternative‐performance‐measures.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

kEU R
	/20 Q1 20	/20 Q1 19
Sal es	283 ,41 1	345 ,96 8
t of les Cos sa	–23 2,4 54	–28 5,7 16
Gro rof it ss p	50, 957	60, 252
Oth er i nco me	494	365
Sel ling ex pen ses	–16 ,24 9	–18 ,21 7
Adm inis ive trat exp ens es	–16 ,63 9	–18 ,36 0
ch and de vel Res ent ear opm ex pen ses	–4, 567	–5, 590
Op ting ult era res	13, 996	18, 450
Sha f ne ofit of d fo the tho d inv ing uity t pr est nts nte re o me ac cou r us eq me	377	486
nin bef int nd Ear st a tax gs ore ere es	14, 373	18, 936
Fin e in anc com e	1,2 22	359
Fin anc e e xpe nse s	–4, 048	–2, 765
Fin sult anc e re	–2, 826	–2, 406
Res ult bef inc e ta ore om x	11, 547	16, 530
Inco tax me	–2, 890	–5, 092
ult for the riod Res pe	8,6 57	438 11,
ribu tab le t Att o:
hol der s of the Equ ity t pa ren	8,8 57	11, 307
Sha of n llin g in tro ter est res on‐ con s	–20 0	131
Oth hen sive inc er c om pre om e
s th be lass ifie d s ubs ly t rof it o r lo Item at m ent ay rec equ o p ss
Exc han diff lati of f ign tion n tr ge ere nce s o ans on ore op era s	–8, 110	8,4 30
Oth hen sive inc er c om pre om e	–8, 110	8,4 30
Com hen sive inc e fo r th erio d pre om e p	547	19, 868
Att ribu tab le t o:
hol der s of the Equ ity t pa ren	1,2 80	19, 298
Sha of n llin g in tro ter est res on‐ con s	–73 3	570
har Bas ic e ing e in EU R arn s p er s	0.2 0	0.2 5
Dilu ted rnin har e in EU R ea gs p er s	0.1 7	0.2 2

CONSOLIDATED BALANCE SHEET

kEU R
	31. 03. 202 0	31. 12. 201 9
Ass ets
No ent ets n‐c urr ass	514 ,66 7	520 ,80 5
dw ill Goo	79, 110	78, 826
Oth er i ngi ble nta ets ass	177 ,26 7	179 ,10 0
lan d e Pro qui ty, t an ent per p pm	213 ,24 8	216 ,73 6
d fo ing the uity tho d Inv est nts nte me ac cou r us eq me	089 17,	16, 522
ial a Fin ts anc sse	848	1,1 47
Oth t as set er n on‐ cur ren s	2,7 54	2,8 68
Def ed tax ets err ass	24, 351	25, 606
Cur t as set ren s	666 ,60 9	458 ,43 9
orie Inv ent s	166 ,76 7	168 ,12 9
Tra de eiva ble rec s	135 ,34 0	126 ,00 0
abl Inco eiv tax me rec es	7,0 58	4,0 66
Oth ent ets er c urr ass	33, 925	25, 741
ial a Fin ts anc sse	4,1 26	3,3 37
h a nd h e qui val Cas ent cas s	319 ,39 3	131 ,16 6
Bal e sh al eet tot anc	1,1 81, 276	979 ,24 4

	31. 03. 202 0	31. 12. 201 9
ity and lia bili ties Equ
al e ity Tot qu	318 4 ,55	318 ,00 7
ribu tab le t hol der s of the Equ ity ity att t o e qu pa ren	315 ,05 5	304 ,98 1
Sub ibe d s har l pita scr e ca	454	454
Sha ium re p rem	269 ,04 4	269 ,04 4
al r Leg ese rve	45	45
Oth er r ese rve	720	720
Ret ain ed nin ear gs	77, 646	59, 903
ula ted her reh Acc ive inco ot um co mp ens me	–32 ,85 4	–25 ,18 5
Sha of n llin g in tro ter est res on‐ con s	3,4 99	13, 026
lia bili No ties ent n‐c urr	517 ,14 8	326 ,08 1
nd oth lar ben efit Pen sio imi ns a er s s	31, 233	30, 894
Oth isio er p rov ns	7,7 40	7,6 37
be loa nd bon ds Inte arin rest g ns a	389 ,76 1	195 ,79 3
se l iab iliti Lea es	24, 465	25, 521
Oth er f l lia bili ina ncia ties	10, 796	13, 031
Oth er l iab iliti es	708	691
Def ed lia bili ties tax err	52, 445	52, 514
t lia bili Cur ties ren	345 ,57 4	335 ,15 6
Oth isio er p rov ns	9,9 84	12, 552
Inte be arin loa nd bon ds rest g ns a	153 ,19 8	153 ,39 3
se l iab iliti Lea es	8,1 94	8,1 26
Tra de abl pay es	142 ,93 8	110 ,36 6
lia bili Inco ties tax me	704	244
Oth er f ina ncia l lia bili ties	411	21, 719
Oth er l iab iliti es	30, 145	28, 756
Bal e sh al eet tot anc	1,1 81, 276	979 ,24 4

CONSOLIDATED STATEMENT OF CASH FLOWS

kEUR Q1/2020 Q1/2019 Cash flow from operating activities Result before income tax 11,547 16,530 – Finance income –1,222 –359 + Finance expenses 4,048 2,765 +/– Share of net profit of investments accounted for using the equity method –377 –486 +/– Other non‐cash transactions 898 – + Amortization and depreciation of intangible assets and property, plant and equipment 11,503 9,475 + Allowance of current assets 2,430 1,238 +/– Loss/Gain on disposal of property, plant and equipment 8 34 + Dividends from investments accounted for using the equity method 21 20 Cash flow before change of net working capital 28,856 29,217 +/– Change in other provisions and pensions –2,054 1,780 +/– Change in inventories –5,916 –8,846 +/– Change in trade receivables and other assets –46,865^¹ –46,874^¹ +/– Change in trade payables and other liabilities 62,853 38,592 Change of net working capital 8,018 –15,348 Cash flow from operating activities before income tax paid 36,874 13,869 – Income tax paid –4,860 –5,310 Net cash flow from operating activities 32,014 8,559 Cash flow from investing activities – Purchase of other short term investments – –976 – Purchase of property, plant and equipment –5,446 –13,304 – Purchase of intangible assets –1,295–1,112

kEU	R
		/20 Q1 20	/20 Q1 19
+	ds f les of p lan d e qui Pro erty t an ent cee rom sa rop , p pm	418	164
+	nt f he of the ndi sha Pay uisi tion or t tsta me acq ou ng res
	in V .Or lan di S .p.A	–21 ,63 5	–
–	for of s ubs idia t of sh Pay qui siti ries nts me ac on ne ca	–	–12 ,42 7
+	ceiv ed Inte t re res	212	56
Net	sh f low fro m i stin ctiv itie ca nve g a s	–27 ,74 6	–27 ,59 9
Cas	h fl fro m f ina nci ivit ies act ow ng
+	ds f mis loa Pro ote cee rom pro sor y n n	230 ,00 0	–
–	Rep s of nd nt f ina ncia l ent nt a aym cu rre non ‐cu rre
	liab iliti es	–35 ,25 9	–
–	d tr rela the f th pai ion ting iss act sts to ans co uan ce o e
	mis loa ote pro sor y n n	627 –1,	–
–	for lea se l iab iliti Pay nts me es	–2, 383	–2, 010
–	id Inte t pa res	–1, 610	–1, 292
+/–	Cha in dra win n th red it li and her ot nge gs o e c ne
	fina nci act ivit ies ng	–2, 341	85
Net sh f low fro m f ina nci ivit ies act ca ng		186 ,78 0	–3, 217
se/ dec sh a nd h e len Net inc se i iva ts rea rea n ca cas qu		191 ,04 8	–22 ,25 7
	Effe f ch es i xch sh a nd h ct o tes ang n e ang e ra on ca cas
+/–	len iva ts equ	–2, 821	2,5 55
Cas h a nd h e iva len t th e b inn ing of the riod ts a cas qu eg pe		131 ,16 6	,00 9 155
of t Cas h a nd h e iva len t th nd he iod ts a cas qu e e per		319 ,39 3	135 ,30 7

1 As of March 31, 2020, trade receivables in the amount of € 40.1 million (previous year: € 42.9 million) were sold in the context of a factoring contract. Assuming the legal validity of receivables, no further rights of recourse to SAF‐HOLLAND exist from the receivables sold.

SEGMENT INFORMATION

	EA¹ EM		as² Am eric		C³ APA		Tot
in E th and UR ous s	/20 Q1 20	/20 Q1 19	/20 Q1 20	/20 Q1 19	/20 Q1 20	/20 Q1 19	/20 Q1 20	/20 Q1 19
Sal es	157 ,22 6	176 ,11 5	105 ,11 3	131 ,31 7	21, 072	38, 536	283 ,41 1	345 ,96 8
Adj ed EBI T ust	14, 834	17, 065	4,1 20	6,7 88	–51 3	922	18, 441	24, 775
Adj ed in i n % ust EBI T m arg	9.4	9.7	3.9	5.2	–2. 4	2.4	6.5	7.2
of Dep iati and izat ion lan d e qui d ort ty, t an ent rec on am pro per p pm an inta ngi ble (ex clu din PA) ets g P ass	4,4 77	3,2 85	3,8 80	2,8 14	710	1,0 38	9,0 67	7,1 37
of sale in % s	2.8	1.9	3.7	2.1	3.4	2.7	3.2	2.1
Adj ed ust EBI TDA	19, 311	20, 350	8,0 00	9,6 02	197	1,9 60	27, 508	31, 912
Adj ed EBI TDA rgin in % ust ma	12. 3	11. 5	7.6	7.3	0.9	5.1	9.7	9.2
cha f pr lan d e d in ble Pur qui gi rty, t an ent tan ets se o ope p pm an ass	2,1 03	4,6 81	3,8 30	6,5 71	808	3,1 65	6,7 40	14, 416
in % of sale s	1.3	2.7	3.6	5.0	3.8	8.2	2.4	4.2
loy ork for (at the da te) Em ing ort p ees co re w ce rep	1,4 29	1,4 67	1,6 80	1,7 61	319	671	3,4 28	3,8 99

1 Includes Europe, Middle East and Africa.

2 Includes Canada, the USA as well as Central and South America.

3 Includes Asia/Pacific, India and China.

FINANCIAL CALENDAR AND CONTACT INFORMATION

FINANCIAL CALENDAR

May 20, 2020 Annual General MeeƟng Extraordinary General MeeƟng

August 13, 2020 Half‐Year Financial Report 2020

November 18, 2020 Quarterly Statement Q1–Q3 2020

CONTACT INFORMATION

SAF‐HOLLAND Group Hauptstraße 26 D‐63856 Bessenbach

www.saĬolland.com

Michael Schickling

ir@saĬolland.de Phone: + 49 (0) 6095 301‐617

Alexander Pöschl

ir@saĬolland.de Phone: + 49 (0) 6095 301‐117

Klaus Breitenbach

ir@saĬolland.de Phone: + 49 (0) 6095 301‐565

IMPRINT

Responsibility:

SAF‐HOLLAND SE 68 – 70, Boulevard de la Pétrusse L – 2320 Luxembourg

Date of publicaƟon: May 13, 2020

Editors: Michael Schickling, SAF‐HOLLAND Group; Alexander Pöschl, SAF‐HOLLAND Group; Klaus Breitenbach, SAF‐HOLLAND Group

Produced inhouse using www.firesys.de.

The Quarterly Statement is also available in German. In cases of doubt, the German version shall prevail.

Legal Disclaimer

This report contains certain statements that are neither reported financial results nor other historical informaƟon. This report contains forward‐ looking statements. Such forward‐looking statements are based on certain assumpƟons, expectaƟons and forecasts made at the Ɵme of publicaƟon of this report. Consequently, they are inherently subject to risks and uncertainƟes. Moreover, the actual events could diverge significantly from the events described in the forward‐looking statements. Many of these risks and uncertainƟes relate to factors that are beyond the ability of SAF‐HOLLAND SE to control or esƟmate precisely, such as future market and economic condiƟons, the behavior of other market parƟcipants, the achievement of anƟcipated synergies, and the acƟons of government regulators. Readers are cauƟoned not to place undue reliance on these forward‐looking statements, which apply only as of the date of this publicaƟon. Likewise, SAF‐HOLLAND SE does not undertake any obligaƟon to publicly release any revisions to these forward‐looking statements to reflect events or circumstances aŌer the date of publicaƟon of these materials.