SAF-HOLLAND SE

Quarterly Report • May 12, 2021

SAF-HOLLAND SE

Quarterly Statement Q1 2021

KEY FIGURES

Results of operations

in E tho nds UR usa
	/20 Q1 21	/20 Q1 20
Sal es	285 ,62 0	283 ,41 1
Adj ed rofi ust t gro ss p	55, 985	52, 261
Adj ed rofi in i n % ust t m gro ss p arg	19. 6	18. 4
Adj ed EBI TDA ust	31, 042	27, 508
Adj ed rgin in % ust EBI TDA ma	10. 9	9.7
Adj ed EBI T ust	21, 957	18, 441
Adj ed EBI T m in i n % ust arg	7.7	6.5
Adj ed ult for the riod ust res pe	14, 875	11, 288
Adj ed und ilut ed har nin e in EU R ust ear gs p er s	0.3 3	0.2 5

Financial position

in EUR thousands

	/20 Q1 21	/20 Q1 20
h fl fro Cas atin ctiv itie ow m o per g a s	5,6 98	32, 014
h fl fro m i stin ctiv itie Cas ow nve g a s
(pro lan d e / in ble ) qui gi ty, t an ent tan ets per p pm ass	–5, 201	–6, 323
Op ting fre sh f low era e ca	497	25, 691
al f h fl Tot ree cas ow	497	4,0 56
h a nd h e val Cas qui ent cas s	179 ,50 7	319 ,39 3
Net de bt	195 ,61 4	–25 6,2 25

Employees

tho nds in E UR usa
	03/ 31/ 202 1	/31 /20 12 20
Bal e sh al eet tot anc	998 ,59 8	920 ,48 6
Equ ity	325 ,19 8	300 ,46 3
ity rati o in % Equ	32. 6	32. 6
Net rkin pita l wo g ca	138 ,43 4	114 ,59 9
rkin l in f sa les (LTM ) Net pita % o wo g ca	14. 4	11 .9

	/20 Q1 21	/20 Q1 20
Em loy the ing dat at ort p ees rep e	3,5 13	3,7 44
loy (on ) Em p ees av era ge	3,4 40	3,8 11

Return on capital employed (ROCE)* 11.3 12.1

Yie ld
in %
	/20 Q1 21	/20 Q1 20

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.

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).

ROCE = Adjusted EBIT / (total equity + financial liabiliƟes (excl. refinancing costs, incl. lease liabiliƟes) + pension and other similar benefits ‐ cash and cash equivalents).

—Contents

Group Interim Management Report

h h h f h i i 2 0 2 K E F T M Y 1 t t t t t e y v e n s n e r s r e e o n s o e e a r	4
d I E i t t n u s r y n v r o n m e n	5
l f d l R O i N A F i i P i i t t t t t e s u s o p e r a o n s, e s s e s a n n a n c a o s o n	6
k d i O i R R t t t s a n p p o r n e p o r u y	1 3
l k O t u o o	1 4
f h l h E B S D t t t t t v e n s a e r e a a n c e e e a e	1 6

Interim Consolidated Financial Statements

l f h d d C i S C i I t t t t o n s o a e a e m e n o o m p r e e n s v e n c o m e	1 7
l d d l h C i B S t t o n s o a e a a n c e e e	1 8
l d d f h l C i S C F t t t t o n s o a e a e m e n o a s o s w	1 9
f S i I t t e g m e n n o r m a o n	2 0

Additional Information

l l d d f F i i C C I i t t t n a n c a a e n a r a n o n a c n o r m a o n	2 1
I i t m p r n	2 1

KEY EVENTS IN THE FIRST THREE MONTHS OF THE YEAR 2021

There have not been any significant events in the first three months of 2021 of relevance for the quarterly statement.

INDUSTRY ENVIRONMENT

SECTOR DEVELOPMENT: GLOBAL TRUCK AND TRAILER MARKETS ON THE ROAD TO RECOVERY

The recovery seen in the producƟon of heavy‐duty trucks and trailers that started in the second half of 2020 carried on through to the first quarter of 2021. Most of the relevant regions for SAF‐HOLLAND – Europe, North and South America, China and India – recorded conƟnued growth. In China and India, in parƟcular, producƟon figures at the end of March were substanƟally above previous years' figures.

EUROPEAN TRUCK REGISTRATIONS ABOVE THE LEVEL OF THE PREVIOUS YEAR

According to the European Automobile Manufacturers AssociaƟon (ACEA), registraƟons of new heavy‐duty trucks (above 16 tons) in the European Union in the first three months of the year 2021 were 15.1 per cent above the level of the previous year. The two largest‐volume markets, Germany and France, recorded increases of 10.1 per cent and 11.1 per cent respecƟvely.

EUROPEAN TRAILER MARKET REMAINS ON A GROWTH TRAJECTORY

The European trailer market conƟnued to recover in the first quarter with growth of roughly 12 per cent for the period from January to March.

NORTH AMERICAN TRUCK MARKET SEES SUSTAINED RECOVERY

According to ACT Research, producƟon of Class 8 trucks in the first three months of 2021 lay 12.3 per cent above the comparable figure for the previous year. Thanks to higher order intake (+ 176 per cent in comparison to Q1 2020) the order backlog rose by roughly 137 per cent to almost 238,000 units (Q1 2020: approximately 100,000 units).

IMPROVEMENT IN THE NORTH AMERICAN TRAILER MARKET

The North American trailer market, like the truck market, conƟnued to recover in the first quarter with a rise in producƟon of 7.2 per cent in the first three months of 2021.

HIGHER PRODUCTION IN THE SOUTH AMERICAN TRUCK AND TRAILER MARKET

Boosted by the economic recovery in Brazil (projected GDP growth of 3.7 per cent for 2021, InternaƟonal Monetary Fund, World Economic Outlook April 2021), trailer producƟon grew by 41 per cent and heavy‐duty truck producƟon by 25 per cent.

DEMAND FOR TRAILERS IN CHINA SEES STRONG RECOVERY

AŌer a weak first quarter 2020 due to COVID‐19, demand for trailers in China conƟnued to recover strongly in the following quarters. The producƟon of trailers in the first three months of 2021 is just over 140 per cent up on the level of the previous year. Truck producƟon is up by almost 100 per cent on the previous year.

RISING PRODUCTION VOLUMES IN INDIA

The nascent economic recovery led to an increase of 110 per cent in truck producƟon and 37 per cent in trailer producƟon in the reporƟng period from January to March 2021.

RESULTS OF OPERATIONS, NET ASSETS AND FINANCIAL POSITION

tho nds in E UR usa
		al Tot	/20 Q1 21	in %		al Tot	/20 Q1 20	in %
	/20 Q1 21	Adj ust nts me	adj ed ust	of s ale s	/20 Q1 20	Adj ust nts me	adj ed ust	of s ale s
Sal es	285 ,62 0	–	285 ,62 0	100 .0%	283 ,41 1	–	283 ,41 1	100 .0%
Cos t of les sa	–23 0,1 59	524	–22 9,6 35	–80 .4%	–23 2,4 54	1,3 04	–23 1,1 50	–81 .6%
rof Gro it ss p	55, 461	524	55, 985	19. 6%	50, 957	1,3 04	52, 261	18. 4%
Oth er i nco me	276	–	276	0.1 %	494	–	494	0.2 %
Sel ling ex pen ses	–14 ,69 2	1,7 94	–12 ,89 8	–4. 5%	–16 ,24 9	1,9 34	–14 ,31 5	–5. 0%
Adm inis ive trat exp ens es	–15 ,84 7	–12 5	–15 ,97 2	–5. 6%	–16 ,63 9	742	–15 ,89 7	–5. 6%
ch and de vel Res ent sts ear opm co	–6, 034	311	723 –5,	–2. 0%	567 –4,	88	479 –4,	6% –1.
fit Op ting era pro	19, 164	2,5 04	21, 668	7.6 %	13, 996	4,0 68	18, 064	6.4 %
Sha f ne ofit of d fo inv t pr est nts nte re o me ac cou r
usin he ity tho d g t equ me	289	–	289	0.1 %	377	–	377	0.1 %
EBI T	19, 453	2,5 04	21, 957	7.7 %	14, 373	4,0 68	18, 441	6.5 %
Fin e in anc com e	927	–	927	0.3 %	1,2 22	–	1,2 22	0.4 %
Fin anc e e xpe nse s	–2, 605	–	–2, 605	–0. 9%	–4, 048	–	–4, 048	–1. 4%
Fin sul t anc e re	–1, 678	–	–1, 678	6% –0.	–2, 826	–	–2, 826	0% –1.
Res ult bef tax ore es	17, 775	2,5 04	20, 279	7.1 %	11, 547	4,0 68	15, 615	5.5 %
Inco tax me es	–6, 508	1,1 04	–5, 404	–1. 9%	–2, 890	–1, 437	–4, 327	–1. 5%
es i n % Inco tax me	6% 36.		7% 26.		0% 25.		7% 27.
for Res ult the riod pe	11, 267	3,6 08	14, 875	5.2 %	8,6 57	2,6 31	11, 288	4.0 %

EXTRAORDINARY ITEMS

SAF‐HOLLAND eliminates certain income and expenses for the management of its operaƟons. The adjusted earnings presented below correspond to the management perspecƟve.

The figures in this report have been rounded using commercial principles. In isolated instances, this can lead to rounding differences in the sum totals and percentages.

In the first quarter of 2021 net expenses totalling EUR 2.5 million (previous year: EUR 4.1 million) were eliminated from earnings before interest and taxes (EBIT). These consist of restructuring expenses of EUR 0.2 million (previous year: EUR 1.6 million) and depreciaƟon and amorƟsaƟon of EUR 2.3 million (previous year: EUR 2.4 million) arising from purchase price allocaƟons. Restructuring expenses mainly originate from the FORWARD 2.0 restructuring programme as well as the costs of liquidaƟng several Chinese enƟƟes that became redundant on account of the successfully completed restructuring measures (see the segment reporƟng, page 8).

Net expenses totalling EUR 0.5 million were eliminated from the cost of sales in the first quarter of 2021 (previous year: EUR 1.3 million). These consist of restructuring expenses of EUR 0.0 million (previous year: EUR 0.8 million) and depreciaƟon and amorƟsaƟon of EUR 0.5 million (previous year: EUR 0.6 million) arising from purchase price allocaƟons.

Net expenses totalling EUR 1.8 million were eliminated from selling expenses in the first quarter of 2021 (previous year: EUR 1.9 million). These consist of restructuring expenses of EUR 0.1 million (previous year: EUR 0.2 million) and depreciaƟon and amorƟsaƟon of EUR 1.7 million (previous year: EUR 1.8 million) arising from purchase price allocaƟons.

Moreover, an amount of EUR –0.1 million (previous year EUR 0.7 million) was eliminated from general administraƟve expenses, almost all of which relates to restructuring income.

With regard to research and development costs, an amount of EUR 0.3 million (previous year: EUR 0.1 million) was eliminated, consisƟng almost solely of depreciaƟon and amorƟsaƟon arising from purchase price allocaƟons.

RESULTS OF OPERATIONS

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

GROUP SALES UP SLIGHTLY ON THE PREVIOUS YEAR DUE TO MARKET CONDITIONS AND COVID‐19

Due to market condiƟons and COVID‐19, Group sales in the first quarter of 2021 came up slightly to EUR 285.6 million, 0.8 per cent above the previous year's level of EUR 283.4 million. Currency effects amounted to EUR –13.7 million and resulted primarily from currency changes of the US dollar, the Turkish lira, the Australian dollar and the Brazilian real against the Euro. Adjusted for currency translaƟon effects, sales increased by 5.6 per cent.

SHARE OF SPARE PARTS BUSINESS INCREASES BY 1.2 PERCENTAGE POINTS

Sales in the OE business decreased by 0.8 per cent or EUR 1.8 million to EUR 207.5 million in the reporƟng period from January to March 2021. The share of Group sales accounted for by the OE business decreased from 73.8 per cent to 72.6 per cent.

tho nds in E UR usa
			Cha nge
	/20 Q1 21	/20 Q1 20	abs olu te	Cha in % nge
al e bu Ori gin qui sine ent pm ss	207 ,46 3	209 ,22 8	–1, 765	–0. 8%
Spa bu sine arts re p ss	78, 157	74, 183	3,9 74	5.4 %
sale Gro up s	285 ,62 0	283 ,41 1	2,2 09	0.8 %
al e bu Ori gin qui sine ss i n % ent pm
of sale Gro up s	72. 6%	73. 8%
bu sin in % Spa arts re p ess
of sale Gro up s	27. 4%	26. 2%

By contrast, sales in the spare parts business increased by 5.4 per cent or EUR 4.0 million to EUR 78.2 million. Consequently, the share of the spare parts business in Group sales increased from 26.2 per cent to 27.4 per cent.

ADJUSTED GROSS MARGIN SIGNIFICANTLY ABOVE THE LEVEL OF THE PREVIOUS YEAR

Adjusted gross profit improved to EUR 56.0 million in the first quarter of 2021 due to the sales and cost situaƟon (previous year: EUR 52.3 million). Due to the higher share of the high‐margin spare parts business, the adjusted gross margin came to 19.6 per cent, which lies significantly above the gross margin achieved in the comparable period of the previous year of 18.4 per cent.

ADJUSTED EBIT MARGIN AT 7.7 PER CENT

Adjusted EBIT amounted to EUR 22.0 million in the first quarter of 2021 (previous year: EUR 18.4 million). This corresponds to an adjusted EBIT margin of 7.7 per cent (previous year: 6.5 per cent). The lower raƟo of selling expenses and administraƟve expenses to Group sales was slightly margin accreƟve.

FINANCIAL RESULT SIGNIFICANTLY IMPROVED

The financial result improved in the reporƟng period from January to March 2021 to ^a loss of EUR – 1.7 million (previous year: ^a loss of EUR –2.8 million). In addiƟon to lower interest expenses in associaƟon with interest bearing loans and bonds, the main reason was the posiƟve balance of realised/unrealised exchange gains/losses on loans denominated in foreign currencies and dividends.

RESULT FOR THE PERIOD SIGNIFICANTLY IMPROVED BY 30.1 PER CENT COMPARED TO THE PREVIOUS YEAR

With a Group tax rate of 36.6 per cent (previous year: 25.0 per cent) a net profit of EUR 11.3 million was generated in the first quarter of 2021, surpassing the figure of EUR 8.7 million for the previous year by 30.1 per cent.

Based on approximately 45.4 million ordinary shares outstanding, unchanged on the previous year, basic earnings per share for the reporƟng period from January to March 2021 amounted to EUR 0.24 (previous year: EUR 0.20).

SEGMENT REPORTING

EMEA REGION: ADJUSTED EBIT MARGIN REMAINS STABLE AT A HIGH LEVEL

EMEA

in EUR thousands

			Cha nge	Cha nge
	/20 Q1 21	/20 Q1 20	abs olu te	in %
Sal es	168 ,31 8	157 ,22 6	11, 092	7.1 %
EBI T	15, 124	14, 019	1,1 05	% 7.9
EBI T m in i n % arg	9.0 %	8.9 %
Add nal dep and itio iati rec on isat ion of lan d ort ty, t an am pro per p ipm d in gi ble ent tan ets equ an ass
fro m P PA	1,1 62	1,1 62	–	–
Val ion eff s fr ll a nd uat ect put om ca ion opt s	–	–	–	–
ring d tr ion Res tru ctu act sts an ans co	–88	–34 7	259	.6% –74
Adj ed EBI T ust	16, 198	14, 834	1,3 64	9.2 %
Adj ed EBI T m in i n % ust arg	9.6 %	9.4 %
Dep iatio d a rtis atio n of rec n an mo lant d e d qui ty, p ent pro per an pm an ble lud inta PPA	11	77	6
(exc ) ngi ing ets ass	4,3	4,4	–16	–3. 7%
in % of sale s	% 2.6	% 2.8
Adj ed EBI TDA ust	20, 509	19, 311	1,1 98	6.2 %
Adj ed EBI TDA rgin in % ust ma	12. 2%	12. 3%

Sales in the EMEA region improved by 7.1 per cent to EUR 168.3 million (previous year: EUR 157.2 million) in the first quarter of 2021, primarily on account of ^a strong upturn in OE business and further gains in market share. Adjusted for currency translaƟon effects, ^a sales growth of 9.4 per cent was recorded.

The EMEA region generated an adjusted EBIT of EUR 16.2 million in the reporƟng period from January to March 2021 (previous year: EUR 14.8 million) and an adjusted EBIT margin of 9.6 per cent (previous year: 9.4 per cent). The OE business and spare parts business had ^a similarly posiƟve impact on the gross margin. A slightly higher raƟo of selling expenses, administraƟve expenses and research and development expenses to segment sales was margin diluƟve.

Americas in EUR thousands

Additional depreciation and amortisation of property, plant and equipment and intangible

Valuation effects from call and

Restructuring and transaction

Depreciation and amortisation of property, plant and equipment and intangible assets (excluding

costs

AMERICAS REGION: EBIT MARGIN SIGNIFICANTLY IMPROVED

Q1/2021 Q1/2020

Sales 90,190 105,113 –14,923 –14.2% EBIT 4,695 2,860 1,835 64.2% EBIT margin in % 5.2% 2.7%

assets from PPA 542 619 –77 –12.4%

put options – – – –

PPA) 3,485 3,880 –395 –10.2% in % of sales 3.9% 3.7% Adjusted EBITDA 8,857 8,000 857 10.7% Adjusted EBITDA margin in % 9.8% 7.6%

135 641 –506 –78.9% Adjusted EBIT 5,372 4,120 1,252 30.4% Adjusted EBIT margin in % 6.0% 3.9%

Change absolute

Change in %

APAC REGION: OPERATING RESULT BACK IN THE BLACK

APAC

			Cha nge
	/20 Q1 21	/20 Q1 20	abs olu te	Cha in % nge
Sal es	27, 112	21, 072	6,0 40	28. 7%
EBI T	–36 6	–2, 506	2,1 40	–85 .4%
in i n % EBI T m arg	3% –1.	.9% –11
nal Add itio dep iati and rec on isat ion of lan ort ty, t am pro per p and nd ble uip inta ngi nt a eq me
fro m P PA ets ass	586	655	–69	–10 .5%
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	167	1,3 38	–1, 171	–87 .5%
Adj ed ust EBI T	387	–51 3	900	% –17 5.4
Adj ed EBI T m in i n % ust arg	1.4 %	–2. 4%
and of Dep iati isat 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	1,2 89	710	579	81. 5%
in % of sale s	% 4.8	% 3.4
Adj ed EBI TDA ust	1,6 76	197	1,4 79	750 .8%
Adj ed EBI TDA rgin in % ust ma	6.2 %	0.9 %

In the Americas region, sales declined in the first quarter of 2021 by 14.2 per cent to EUR 90.2 million (previous year: EUR 105.1 million) due to streamlining of the product porƞolio and the winter storms in Texas. Adjusted for currency translaƟon effects, sales decreased by 5.4 per cent.

In spite of the decline in sales, the Americas region generated an improved adjusted EBIT of EUR 5.4 million in the first quarter of 2021 (previous year: EUR 4.1 million) and ^a significantly improved adjusted EBIT margin of 6.0 per cent (previous year: 3.9 per cent). The OE business had a slightly negaƟve impact on the gross margin, which, however, was more than compensated for by the spare parts business. In AddiƟon, the significantly lower raƟo of selling expenses, administraƟve expenses and research and development expenses to segment sales was margin accreƟve.

The APAC region generated sales of EUR 27.1 million in the first quarter of 2021 (previous year: EUR 21.1 million). Adjusted for currency translaƟon effects, sales increased by 32.6 per cent compared with the previous year. The main cause for the significant increase in sales was the jump in business in India and the pleasing development of demand in Australia.

Adjusted EBIT improved by EUR 0.9 million to EUR 0.4 million. The adjusted EBIT margin amounted to 1.4 per cent (previous year: –2.4 per cent). The spare parts business had a slightly negaƟve impact on the gross margin, which, however, was more than compensated for by the OE business. The significantly lower raƟo of selling expenses, administraƟve expenses and research and development expenses to segment sales was margin accreƟve.

NET ASSETS

			Cha nge
	03/ 31/ 202 1	/31 /20 12 20	abs olu te	Cha in % nge
No ent ets n‐c urr ass	499 ,06 8	495 ,37 2	3,6 96	0.7 %
of w hic h in gi ble tan ets ass	241 ,07 9	239 ,90 0	1,1 79	0.5 %
of w hic h p lan d erty t an rop , p ipm ent equ	208 ,17 1	207 ,12 3	1,0 48	0.5 %
of w hic h o the r ( fina l) ncia ets ass	49, 818	48, 349	1,4 69	3.0 %
Cur t as set ren s	499 ,53 0	425 ,11 4	74, 416	17. 5%
of w hic h in ies tor ven	155 ,77 7	126 ,42 4	29, 353	23. 2%
of w hic h tr ade abl eiv rec es	130 ,02 7	95, 347	34, 680	36. 4%
of w hic h li qui d a ts sse	179 ,50 7	170 ,98 2	8,5 25	5.0 %
of w hic h o the r ( fina l) ncia
ets ass	34, 219	32, 361	1,8 58	% 5.7
Bal e sh al eet tot anc	998 ,59 8	920 ,48 6	78, 112	8.5 %

EQUITY RATIO AT 32.6 PER CENT

in E UR tho nds usa
			Cha nge
	03/ 31/ 202 1	/31 /20 12 20	abs olu te	Cha in % nge
Equ ity	325 ,19 8	300 ,46 3	24, 735	8.2 %
lia bili No ties ent n‐c urr	448 ,62 6	448 ,89 6	–27 0	–0. 1%
of w hic h in ‐be arin ter est g
loa nd bon ds ns a	322 ,48 4	322 ,52 9	–45	0.0 %
Fin e le lia bili ties anc ase	35, 372	35, 766	–39 4	1% –1.
of w hic h o the ent r no n‐c urr
liab iliti es	90, 770	90, 601	169	0.2 %
t lia bili Cur ties ren	224 ,77 4	171 ,12 7	53, 647	31. 3%
of w hic h in ‐be arin ter est g
loa nd bon ds ns a	9,9 59	1,5 39	8,4 20	547 .1%
e le lia bili Fin ties anc ase	7,3 06	7,8 49	–54 3	–6. 9%
of w hic h tr ade ble pa ya s	147 ,37 0	107 ,17 2	40, 198	37. 5%
of w hic h o the nt r cu rre
liab iliti es	60, 139	54, 567	5,5 72	10. 2%
Bal e sh al eet tot anc	998 ,59 8	920 ,48 6	78, 112	8.5 %

TOTAL ASSETS INCREASED BY 8.5 PER CENT

Total assets increased by EUR 78.1 million or 8.5 per cent compared to the end of the 2020 financial year and amount to EUR 998.6 million as of March 31, 2021. This increase is due primarily to the increase in inventories and trade receivables.

In comparison to December 31, 2020, equity has improved by EUR 24.7 million to EUR 325.2 million. Equity was bolstered by the addiƟon of the result for the period of EUR 11.3 million as well as exchange differences on the translaƟon of foreign operaƟons of EUR 13.5 million. Coupled with the 8.5 per cent increase in the balance sheet, this leads to an unchanged equity raƟo of 32.6 per cent.

Non‐current liabiliƟes decreased by EUR 0.3 million in comparison to December 31, 2020 to EUR 448.6 million. The main factor in this regard was a slight decline in lease liabiliƟes.

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

NET WORKING CAPITAL RATIO UP ON THE PREVIOUS YEAR DUE TO SALES

Net working capital in EUR thousands 03/31/2021 03/31/2020 Change 03/31/2020 to 03/31/2021 Change in % Inventories 155,777 166,767 –10,990 –6.6% Trade receivables 130,027 135,340 –5,313 –3.9% Trade payables –147,370 –142,938 –4,432 3.1% Net working capital 138,434 159,169 –20,735 –13.0% Sales (last 12 month) 961,728 1,221,598 –259,870 –21.3% Net working capital ratio 14.4% 13.0%

The net working capital raƟo, measured as the raƟo of net working capital to Group sales over the last 12 months, increased year‐on‐year from 13.0 per cent to 14.4 per cent. A decrease in inventories and trade receivables was countered by higher trade payables. This was offset by the decline in 12‐month sales due to market condiƟons and COVID‐19.

FINANCIAL POSITION

Financial position

in EUR thousands

	/20 Q1 21	/20 Q1 20
h fl fro Cas atin ctiv itie ow m o per g a s	5,6 98	32, 014
Cas h fl fro m i stin ctiv itie ow nve g a s
(pro lan d e / in ble ) qui gi ty, t an ent tan ets per p pm ass	–5, 201	–6, 323
Op ting fre sh f low era e ca	497	25, 691
h fl fro s (a of sub sid es) Cas m i stin ctiv itie isit ion iari ow nve g a cqu	–	–
al f h fl Tot ree cas ow	497	25, 691
Oth er	590	–30 ,24 9
Cha in fin ial liab iliti net nge anc es	1,0 87	–4, 558

BALANCED OPERATING FREE CASH FLOW

The net cash flow from operaƟng acƟviƟes reached ^a level of EUR 5.7 million in the first quarter of 2021 (previous year: EUR 32.0 million). The decrease can be aƩributed primarily to changes in net working capital as a consequence of the rapidly increasing business acƟvity. In addiƟon, it should be considered that the volume of factoring increased only slightly from EUR 40.1 million in the previous year to EUR 40.3 million in the reporƟng period from January to March 2021.

The net cash flow from invesƟng acƟviƟes in property, plant and equipment and intangible assets of EUR –5.2 million lay EUR 1.1 million, or 17.7 per cent, below the comparable figure for the previous year. The main focus of investment acƟvity lay on the conƟnuing expansion of automaƟon in our producƟon processes at the locaƟon in Bessenbach and post‐ contractual payments for the Chinese locaƟon in Yangzhou.

The operaƟng free cash flow and total free cash flow was balanced at EUR 0.5 million (previous year: EUR 25.7 million). In the first quarter of 2020 the line item "Other" was affected to the tune of EUR 21,2 million on account of the purchase of the remaining shares in V.Orlandi.

NET FINANCIAL LIABILITIES SCALED BACK

Net financial debt (including lease liabiliƟes) decreased by EUR 1.1 million to EUR 195.6 million as of March 31, 2021 compared to the reporƟng date of December 31, 2020. As of March 31, 2021 SAF‐HOLLAND carries cash and cash equivalents of EUR 179.5 million (December 31, 2020: EUR 171.0 million).

RISK AND OPPORTUNITY 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 2020 (pages 74 to 84).

OUTLOOK

SECTOR‐SPECIFIC DEVELOPMENT: RECOVERY OF THE GLOBAL COMMERCIAL VEHICLE MARKETS

The prospects for 2021 have further improved on the commercial vehicle markets of most relevance for SAF‐HOLLAND – North and South America, Europe, China and India. While the trailer and truck markets were sƟll heavily impacted by the COVID‐19 pandemic in the first half of 2020, some markets, such as North and South America and Europe, began to recover as early as the fourth quarter of 2020. According to economic research by ACT Research, slightly higher producƟon figures are expected for North America in 2021 than at the beginning of the year due to the rising order intake and order backlog for Class 8 trucks and trailers at the end of the first quarter of 2021. While a decline in producƟon of trailers was expected to be seen in China at the beginning of the year, the forecast has since shiŌed to gradual growth. For the European region, higher levels of producƟon of both trucks and trailers are anƟcipated.

RELEVANCE OF THE MARKETS FOR SAF‐HOLLAND

Due to the breakdown by customer segment into the Original Equipment (truck, trailer) and the AŌermarket business, the regions relevant to SAF‐HOLLAND vary in their importance. While the EMEA region (approximately 4 per cent of Group sales) and the Americas region (approximately 8 per cent of Group sales) are the most relevant for the truck OE segment, in the trailer OE and aŌermarket segments SAF‐HOLLAND operates worldwide.

EUROPEAN TRUCK MARKET RECOVERS

Following a decline in the previous year, European producƟon of heavy‐ duty trucks is expected to recover in 2021, according to analysts at Deutsche Bank. For example, the experts expect to see an increase of 20 per cent (previously 15 per cent) in the producƟon of heavy‐duty trucks. It should be noted, however, that the European truck market is only of minor importance for SAF‐HOLLAND.

RISING DEMAND FOR TRAILERS IN EUROPE

It is assumed that the producƟon of trailers will return to its growth trajectory in 2021. Consequently, SAF‐HOLLAND expects trailer producƟon to rise by roughly 20 per cent.

GROWTH IN THE NORTH AMERICAN TRUCK MARKET

ACT Research expects Class 8 truck producƟon numbers in North America to increase by roughly 42 per cent to approximately 303,000 units in 2021 following the cyclical downturn and COVID‐19‐related decline in 2020. While Mexico and Canada are expected to see an increase of almost 78 per cent and 71 per cent respecƟvely, growth of around 37 per cent is forecast for the largest market by volume, the United States.

TRAILER MARKET IN NORTH AMERICA – HIGHER ORDER BACKLOG THAN IN PREVIOUS YEAR

The recovery in order intake on the North American trailer market, the first signs of which were seen in the third quarter of 2020, has already had an impact on the order backlog. At the end of 2020, for instance, order backlog was approximately 70 per cent higher than the order backlog at year‐end 2019. In the meanƟme, the order backlog (Q1 2021) is up roughly 10 per cent on the value recorded at the end of 2020. Against this background, SAF‐HOLLAND expects approximately 42 per cent more trailers to come off the producƟon lines in 2021 than in the weaker previous year 2020.

POSITIVE OUTLOOK FOR COMMERCIAL VEHICLE MARKETS IN SOUTH AMERICA

AŌer ^a decline in heavy‐duty truck producƟon in 2020, SAF‐HOLLAND expects producƟon to increase by around 30 per cent in the current year. The increase in producƟon will be supported by an economic recovery in Brazil. AŌer ^a contracƟon of 4.5 per cent in 2020, the InternaƟonal Monetary Fund (IMF) is forecasƟng economic growth of 3.7 per cent for 2021. For the trailer market, SAF‐HOLLAND expects demand to exceed the previous year's level (up approximately 16 per cent).

DEMAND FOR TRAILERS IN CHINA UP ON THE PREVIOUS YEAR

For the current year SAF‐HOLLAND is forecasƟng an increase of up to 5 per cent in trailer producƟon on account of the improving economic recovery. At the beginning of the year, a contracƟon of 5 to 10 per cent was forecast. However, in contrast to the trailer market, the Chinese truck market has no significance for SAF‐HOLLAND. Here, a decline of roughly 5 to 10 per cent is projected for 2021 – aŌer a producƟon increase of around 50 per cent in 2020.

Following last year's decline in new truck and trailer registraƟons in Australia, SAF‐HOLLAND expects the markets of the APAC region, which are important from a Group perspecƟve, to recover in 2021. SAF‐HOLLAND is projecƟng growth in the region of approximately 25 per cent for trailers and roughly 40 per cent for trucks.

With regards to the Indian market, producƟon of trucks is now forecast to rise by 114 per cent and trailer producƟon by 182 per cent due to signs of a much more rapid economic recovery than originally forecast – the IMF has raised its economic growth projecƟon from 8.5 per cent at the beginning of 2021 to 12.5 percent.

BUSINESS OUTLOOK

In light of the expected 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 coronavirus SARS‐CoV‐2) the Management Board of SAF‐HOLLAND SE conƟnues to expect Group sales for the 2021 financial year of between EUR 1,050 million and EUR 1,150 million (2020: EUR 959.5 million).

Under this assumpƟon, SAF‐HOLLAND is sƟll expecƟng an adjusted EBIT margin of around 7 per cent for the 2021 financial year (2020: 6.1 per cent).

In order to support its strategic objecƟves, the company is planning investments of approximately 2.5 per cent of Group sales once again for the 2021 financial year. This capital expenditure will focus primarily on conƟnuing the introducƟon of a Global Manufacturing Plaƞorm, further automaƟon and the programme FORWARD 2.0 as well as IT.

It should also be noted that the economic impacts on SAF‐HOLLAND from the current spread of COVID‐19 cannot be suitably determined or reliably measured at present.

EVENTS AFTER THE BALANCE SHEET DATE

There have not been any events of relevance since the reporƟng date that would require reporƟng here.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

in E tho nds UR usa
	/20 Q1 21	/20 Q1 20
Sal es	285 ,62 0	283 ,41 1
t of les Cos sa	–23 0,1 59	–23 2,4 54
rof it Gro ss p	55, 461	50, 957
Oth er i nco me	276	494
Sel ling ex pen ses	–14 ,69 2	–16 ,24 9
Adm inis ive trat exp ens es	,84 –15 7	–16 ,63 9
ch vel Res and de ent ear opm ex pen ses	–6, 034	–4, 567
ting ult Op era res	19, 164	13, 996
Sha f ne ofit of inv d fo ing the uity tho d t pr est nts nte re o me ac cou r us eq me	289	377
bef nd Ear nin int st a tax gs ore ere es	19, 453	14, 373
Fin e in anc com e	927	1,2 22
Fin anc e e xpe nse s	–2, 605	–4, 048
sult Fin anc e re	–1, 678	–2, 826
ult bef inc Res e ta ore om x	17, 775	11, 547
Inco tax me	–6, 508	–2, 890
ult for the riod Res pe	11, 267	8,6 57
ribu tab le t Att o:
s of Equ ity hol der the t pa ren	10, 959	8,8 57
Sha of n llin g in tro ter est res on‐ con s	308	–20 0
Oth hen sive inc er c om pre om e
s th ill n ot b clas sifi ed sub tly rof r lo Item it o at w to p e re seq uen ss
of def ine d b fit lan Rem nts eas ure me ene p s	256	–
Inco eff n it nise d in her reh ive inco tax ect ot me s o em s re cog co mp ens me	–23 4	–
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
han diff lati of f ign tion Exc n tr ge ere nce s o ans on ore op era s	13, 446	–8, 110
Oth hen sive inc er c om pre om e	13, 468	–8, 110
hen sive inc e fo r th erio d Com pre om e p	24, 735	547
ribu tab le t Att o:
hol der s of the Equ ity t pa ren	24, 499	1,2 80
Sha of n llin tro g in ter est res on‐ con s	236	–73 3
Bas ic e ing har e in EU R arn s p er s	0.2 4	0.2 0
Dilu ted har rnin e in EU R ea gs p er s	0.2 4	0.1 7

CONSOLIDATED BALANCE SHEET

in E tho nds UR usa
	03/ 31/ 202 1	/31 /20 12 20
Ass ets
No ent ets n‐c urr ass	499 ,06 8	495 ,37 2
dw ill Goo	78, 165	77, 119
Oth er i ngi ble nta ets ass	162 ,91 4	162 ,78 1
lan d e Pro qui ty, t an ent per p pm	208 ,17 1	207 ,12 3
d fo ing Inv est nts nte me ac cou r us
the tho d uity eq me	16, 392	15, 400
Fin ial a ts anc sse	1,3 42	1,2 89
Oth t as set er n on‐ cur ren s	2,4 71	2,4 83
Def ed tax ets err ass	29, 613	29, 177
Cur t as set ren s	499 ,53 0	425 ,11 4
Inv orie ent s	155 ,77 7	126 ,42 4
de eiva ble Tra rec s	130 ,02 7	95, 347
Inco eiv abl tax me rec es	3,1 07	3,4 49
Oth ent ets er c urr ass	28, 610	26, 743
Fin ial a ts anc sse	2,5 02	2,1 69
h a nd h e val Cas qui ent cas s	179 ,50 7	170 ,98 2
Bal e sh al eet tot anc	998 ,59 8	920 ,48 6

in E tho nds UR usa
	03/ 31/ 202 1	/31 /20 12 20
and lia bili Equ ity ties
al e ity Tot qu	325 ,19 8	300 ,46 3
ity ribu tab le t ity hol der s of the Equ att t o e qu pa ren	322 ,31 8	297 ,81 9
Sub ibe d s har l pita scr e ca	45, 394	45, 394
Sha ium re p rem	224 ,10 4	224 ,10 4
Ret ain ed nin ear gs	95, 382	84, 423
ula ted her reh Acc ive inco ot um co mp ens me	–42 ,56 2	–56 ,10 2
Sha of n llin g in tro ter est res on‐ con s	2,8 80	2,6 44
lia bili No ties ent n‐c urr	448 ,62 6	448 ,89 6
nd oth lar ben efit Pen sio imi ns a er s s	32, 178	31, 415
Oth isio er p rov ns	8,6 11	8,7 13
be loa nd bon ds Inte arin rest g ns a	322 ,48 4	322 ,52 9
se l iab iliti Lea es	35, 372	35, 766
Oth er f ina ncia l lia bili ties	556	905
Oth er l iab iliti es	710	1,5 51
Def ed lia bili ties tax err	48, 715	48, 017
t lia bili Cur ties ren	224 ,77 4	171 ,12 7
Oth isio er p rov ns	14, 881	11, 945
Inte be arin loa nd bon ds rest g ns a	9,9 59	1,5 39
se l iab iliti Lea es	7,3 06	7,8 49
de abl Tra pay es	,37 0 147	107 2 ,17
Inco lia bili ties tax me	7,0 15	4,0 22
Oth er f l lia bili ina ncia ties	10, 154	9,9 50
Oth er l iab iliti es	28, 089	28, 650
Bal e sh al eet tot anc	998 ,59 8	920 ,48 6

CONSOLIDATED STATEMENT OF CASH FLOWS

in E tho nds UR usa
		/20 Q1 21	/20 Q1 20
h fl fro Cas atin ow m o per	ctiv itie g a s
ult bef inc Res e ta ore om	x	17, 775	11, 547
Fin e in anc com e –		–92 7	222 –1,
Fin + anc e e xpe nse s		2,6 05	4,0 48
+/– Sh of fit o net are pro	f in d tme nts nte ves ac cou
for the ing uity us eq	tho d me	–28 9	–37 7
+/– O the ash tra r no n‐c	ctio nsa ns	714	898
Am isat ion d d ort + an	of ecia tion inta ngi ble d ets epr ass an
lan ty, t an pro per p	d e qui ent pm	374 11,	503 11,
of Allo + wa nce cur ren	t as set s	1,9 12	2,4 30
+/– ss/ n d Lo Gai ispo n o	sal of p lan d e qui erty t an ent rop , p pm	–81	8
Div ide nds fro m i nve	d fo ing the stm ent nte s ac cou r us
tho d ity + equ me		19	21
Cas h fl be for han ow e c	of n ork ing ital et w ge ca p	33, 102	28, 856
+/– Ch her e in ot ang pro	d p visi ion ons an ens s	2,7 25	–2, 054
+/– Cha in inv ent nge	orie s	–27 ,83 3	–5, 916
+/– Ch e in de tra ang rec	ts1 eiv abl nd oth es a er a sse	–34 ,96 6	–46 ,86 5
+/– Cha de in tra nge pay	abl nd oth er l iab iliti es a es	36, 105	62, 853
Cha of rkin net nge wo	ital g ca p	–23 ,96 9	8,0 18
h fl fro Cas atin ow m o per	s b efo ctiv itie g a re
inc aid e ta om x p		9,1 33	36, 873
aid Inc e ta om x p –		–3, 435	–4, 860
sh f low fro Net ca m o per	atin ctiv itie g a s	5,6 98	32, 014
Cas h fl fro m i stin ow nve	ctiv itie g a s
cha f pr Pur se o ope –	lan d e qui rty, t an ent p pm	–4, 701	–5, 446
cha f in gi Pur tan se o –	ble ets ass	–63 2	–1, 295

in E	UR tho nds usa
		/20 Q1 21	/20 Q1 20
+	ds f les of p lan d e qui Pro erty t an ent cee rom sa rop , p pm	132	418
+	Pro ds f les of f ina ncia l as set cee rom sa s	63	–
+	d Int ive st r ere ece	124	212
Net	sh f low fro m i stin ctiv itie ca nve g a s	014 –5,	–6, 109
Cas	h fl fro m f ina nci ivit ies act ow ng
+	ds f loa Pro mis ote cee rom pro sor y n n	–	230 ,00 0
–	s of nd nt f ina ncia l Rep ent nt a aym cu rre non ‐cu rre liab iliti es	–	–35 ,25 9
–	pai d tr ion rela ting the iss f th act sts to ans co uan ce o e loa mis ote pro sor y n n	–5	–1, 627
–	Pro ds f for eig der ivat ives cee rom n c urr enc y	–66	–
–	for lea se l iab iliti Pay nts me es	–2, 333	–2, 383
–	aid Int st p ere	–3, 226	610 –1,
+/–	Cha dra n th red it li and in win nge gs o e c ne oth er f ina nci ivit ies act ng	9,5 48	–2, 341
+/–	ith olli Tra ctio inte ntr ts nsa ns w non ‐co ng res	–	–21 ,63 5
Net	sh f low fro m f ina nci ivit ies act ca ng	3,9 18	165 ,14 4
Net	se/ inc dec se i sh a nd h e iva len ts rea rea n ca cas qu	4,6 02	191 ,04 8
+/–	Effe f ch xch sh es i ct o tes ang n e ang e ra on ca and sh e qui val ent ca s	3,9 23	–2, 821
Cas	h a nd h e len t th e b iva inn ing ts a cas qu eg
of t	he iod per	170 ,98 2	131 ,16 6
Cas of t	h a nd h e len t th nd iva ts a cas qu e e he iod per	179 ,50 7	319 ,39 3

1 As of March 31, 2021, trade receivables in the amount of € 40.3 million (previous year: € 40.1 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 as² EM Am eric		C³ APA		al Tot
in E UR th and ous s	/20 Q1 21	/20 Q1 20	/20 Q1 21	/20 Q1 20	/20 Q1 21	/20 Q1 20	/20 Q1 21	/20 Q1 20
Sal es	168 ,31 8	157 ,22 6	90, 190	105 ,11 3	27, 112	21, 072	285 ,62 0	283 ,41 1
Adj ed ust EBI T	16, 198	834 14,	5,3 72	20 4,1	387	3 –51	21, 957	18, 441
Adj ed EBI T m in i n % ust arg	9.6	9.4	6.0	3.9	1.4	–2. 4	7.7	6.5
and of lan Dep iati isat ion ort ty, t rec on am pro per p and nd ble (ex clu din uip inta ngi nt a ets eq me ass g ) PPA	4,3 11	4,4 77	3,4 85	3,8 80	1,2 89	710	9,0 85	9,0 67
of sale in % s	2.6	2.8	3.9	3.7	4.8	3.4	3.2	3.2
Adj ed ust EBI TDA	20, 509	19, 311	8,8 57	8,0 00	1,6 76	197	31, 042	27, 508
Adj ed EBI TDA rgin in % ust ma	12. 2	12. 3	9.8	7.6	6.2	0.9	10. 9	9.7
cha f pr lan d e Pur qui rty, t an ent se o ope p pm and int ible ets ang ass	2,3 72	2,1 03	527	3,8 30	2,4 34	808	5,3 33	6,7 40
of sale in % s	1.4	1.3	0.6	3.6	9.0	3.8	1.9	2.4
Em loy the ing dat at ort p ees rep e	1,4 53	1,4 74	1,4 96	1,7 03	564	567	3,5 13	3,7 44

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

June 10, 2021 Annual General MeeƟng

August 12, 2021 PublicaƟon of the Half‐Year Financial Report 2021

November 15, 2021 PublicaƟon of the Quarterly Statement Q3 2021

CONTACTS

SAF‐HOLLAND SE 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 Hauptstraße 26 D‐63856 Bessenbach

Date of publicaƟon: May 12, 2021

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

Produced inhouse using www.firesys.de.

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

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 the 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 condiƟons and economic developments, the behaviour of other market parƟcipants, the achievement of anƟcipated synergies, and legal and poliƟcal decisions. Readers are cauƟoned that these forward‐looking statements only apply 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.