Stabilus SE

Investor Presentation • Nov 27, 2015

Preliminary results FY2015

Disclaimer

Stabilus S.A. (the "Company", later "Stabilus") has prepared this presentation solely for your information. It should not be treated as giving investment advice. Neither the Company, nor any of its directors, officers, employees, direct or indirect shareholders and advisors nor any other person shall have any liability whatsoever for any direct or indirect losses arising from any use of this presentation.

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1.	FY2015 highlights
2.	Business by geography
3.	Business by market
4.	Outlook
5.	Appendix

Highlights FY2015 (preliminary)

Fiscal year-end September

Revenue	• Revenue up by 20.5% to €611.3mm (+€104.0mm vs. FY14) • Growth in all regions with NAFTA (+29.7%), Asia / Pacific and RoW (+16.3%) as well as Europe (+15.4%) • Growth in all markets with Powerise (+62.9%), Gas Spring (+15.5%), Swivel Chair (+14.5%) and Capital Goods (+4.9%)
Adj. EBITDA	• Adj. EBITDA up by 16.0% to €107.3mm (+€14.8mm vs. FY14) • Adj. EBITDA margin at 17.6% (vs. FY14 margin of 18.2%)
Adj. EBIT	• Adj. EBIT up by 17.1% to €76.2mm (+€11.1mm vs. FY14) • Adj. EBIT margin at 12.5% (vs. FY14 margin of 12.8%)
Net debt	• Refinancing of the high-yield bond concluded on June 16, 2015, resulting in interest savings of c. €13mm p.a. • Net financial debt of €224.2mm • Net financial debt / adj. EBITDA LTM decreased to 2.1x (vs. 2.5x as per FY2014)
Outlook	• FY2016 revenue guidance: approx. €660mm , i.e. c. 8% y-o-y organic growth (\$/€ rate assumption: 1.15\$/€) • Adj. EBIT margin is expected to be in line with historic results at 12-13%

Operational achievements in FY2015

Powerise	• Powerise revenue up by €54mm (+62.9%) to €139.8mm • Penetration of mass market platforms in Europe (e.g. Ford Mondeo and VW Passat) • Key business wins of major platforms from key customers worldwide • Powerise capacity expanded in Mexico (4th production line started production in May 2015); ongoing
	ramp-up in Romania (set-up of 3rd production line), supplying key brands like Audi, BMW and Ford
Asia	• Industrial sales force expanded, local Industrial business application R&D team set up • Dedicated new facility for Industrial Gas Spring and Powerise production in China finalized • Powder paint line successfully ramped-up in Korea
Production	• Footprint Europe reorganization: transfer of small lot-size tube production from Germany to Romania • Construction of a fully-automated gas spring production line in Germany in progress
STAR	• Turnaround of Swivel Chair business completed • Further cascade of refined strategies and targets for the overall organization • STAR - Next Ignition: growth strategy until 2025

2. Business by geography

1. 1. 5.

1.

Stabilus shows strong operating performance in FY2015 (y-o-y)

Note: Stabilus fiscal year-end is September

¹ Adj. EBIT/ EBITDA represents EBIT/ EBITDA, as adjusted by management primarily in relation to advisory fees, IPO-related expenses, restructuring / ramp-up expenses and pension interest

²Simplified definition of FCF differs to the more detailed presentation in quarterly/annual report

Revenue and adj. EBIT growth – by region (y-o-y)

Note: Stabilus fiscal year-end is September. Numbers rounded to one decimal. Due to rounding, numbers presented may not add up precisely to the totals provided. ¹ Billed-from view, without intersegment revenue.

² Adj. EBIT represents EBIT, as adjusted by management primarily in relation to advisory fees, IPO-related expenses, restructuring / ramp-up expenses and pension interest.

3 thereof €0.3mm other/consolidation and rounding.

NAFTA – Revenue growth (y-o-y)

• NAFTA car production in FY15 at 17.4mm units, i.e. +3.5% vs. previous year
• NAFTA FY15 external revenue increased by 29.7% to €229.3mm
• External revenue in US\$ terms improved by 10.8% to \$266.0mm in FY15 vs. \$240.0mm in FY14
• NAFTA business share of the group from 34.9% in FY14 to 37.5% in FY15 – improving the regional business mix
• US: preparation for the installation of an additional fully automated gas spring production line and for the set up of an improved aftermarket distribution process
• Mexico: preparation for the installation of the fifth Powerise line; Powerise capacity increase up to ~2.3mm units p.a. for 2016 in execution

Europe – Revenue growth (y-o-y)

• Europe car production in FY15 at 20.7mm units, i.e. +2.8% vs. previous year
• Europe's Gas Spring revenue increased by 4.9% to €134.0mm in FY15; European Powerise revenue more than doubled in FY15 (€54.8mm in FY15 vs. €21.8mm in FY14)
• Select European Powerise launches in FY15: Porsche Macan, Porsche Cayenne, Audi A7, Ford S-Max, Mercedes CLA, Mercedes GLA, VW Passat, Ford Mondeo
• EBIT margin impacted by disproportionately high Automotive growth
• Germany: construction of a fully-automated gas spring production line with capacity of ~7mm units p.a. in progress; expected start of production: March 2016
• Footprint Europe reorganization: preparation to relocate further ~150 jobs to Romania over the next three years; Koblenz key management rejuvenation finalized

Asia / Pacific and RoW – Revenue growth (y-o-y)

¹ External revenue only

• Asia/Pacific and RoW car production in FY15 at 49.9mm units, i.e. -0.4% vs. previous year
• Strong year-over-year revenue growth of 16.3% in FY15 mainly driven by Automotive Gas Spring – increased SUV demand in China supports plant loading
• China: China FY15 revenue at €42.8mm (+27.4% vs. FY14); China's revenue is approx. 7% of group revenue
• China R&D, sales and application headcount increased to 30 in FY15 (up 7 heads incl. 3 expatriates)
• Korea: new powder coating line installed and in production; extensive launch training and cost for customer approval
• Brazil continues to show revenue weakness as well as poor profitability: high import content combined with weak currency (BRL) burdens result

Revenue growth – by market (y-o-y)

Revenue growth – Automotive business (y-o-y)

Revenue growth – Industrial business (y-o-y)

Outlook FY2016: Financial performance

	FY2015 Preliminary	FY2016 Guidance
Revenue	€611.3mm	ca. €660mm
% Growth	20.5%	ca. 8.0%
% Adj. EBIT margin	12.5%	12-13%

Comments

• On track to deliver another record year, aiming for ambitious revenue and EBIT targets
• Regional diversification improving with higher share of business in NAFTA and Asia
• Powerise continues to be a clear growth driver going forward
• Revenue guidance for FY2016: approx. €660mm (\$/€ rate assumption: 1.15\$/€)
• Adj. EBIT margin guidance stable at 12-13%

Financial calendar

December 21, 2015	• Annual Report 2015
February 15, 2016	• Interim Report Q1 FY2016
Investor Relations Andreas Schröder Phone: +352 286 770 21 E-Mail: anschroeder@stabilus.com
For further information please visit: www.ir.stabilus.com

Strategic priorities for FY2016

Growth	• Focus on product and application innovation • Winning key platforms and increasing market share with existing and new applications • Focus on product and process robustness
Powerise	• Further capitalize on extremely strong end-market momentum • Production footprint optimization towards mass production
Industrial	• Focus on industrial aftermarket • Transfer of Powerise solutions into industrial applications

P&L overview

P&L (€mm)
				2014 Actual	2015 Preliminary
Revenue				507.3	611.3
COGS				(387.7)	(463.6)
Gross Profit				119.6	147.7
% margin				23.6%	24.2%
R&D				(20.3)	(24.2)
S&M				(38.7)	(44.1)
G&A				(32.6)	(27.3)
Other income/expenses				3.1	3.6
Adjustments				33.9	20.5
Adj. EBIT				65.1	76.2
% margin				12.8%	12.5%
Depreciation & amortization (excl. PPA)				27.4	31.1
Adj. EBITDA				92.5	107.3
% margin				18.2%	17.6%
Advisory	17.6	1.4
Restructuring 1 / ramp-up	2.1	5.3
Pension interest add-back	1.5	1.1
PPA adjustments	12.7	12.7
Total Adjustments	33.9	20.5

1 thereof Footprint Europe restructuring €4.7mm in FY15, incl. €4.2 million Koblenz Management rejuvenation.

Balance sheet overview

Balance sheet (€mm)
	September 2014 Actual	September 2015 Preliminary
Property, plant and equipment	119.6	134.0
Goodwill	51.5	51.5
Other intangible assets	171.0	166.5
Inventories	49.5	59.8
Trade receivables	56.5	62.8
Other assets	38.7	28.2
Cash	33.5	39.5
Total assets	520.3	542.2
Equity incl. minorities	76.1	76.7
Debt (incl. accrued interest)	262.3	263.6
Pension plans and similar obligations	48.4	48.0
Deferred tax liabilities	43.8	39.0
Trade accounts payable	53.7	68.9
Other liabilities	36.0	46.0
Total equity and liabilities	520.3	542.2
Net financial debt	228.9	224.2
Net financial debt / adj. EBITDA LTM	2.5x	2.1x

Refinancing in June 2015

•	Old financing structure (until June 16, 2015):
	− High-yield bond due 2018 with the remaining €256.1
	principal amount and 7.75% interest rate and a
	committed €25 million revolving credit facility
•	New financing structure (from June 16, 2015):
	− €270 million term loan facility and €50 million
	revolving credit facility (both due 2020) with an
	interest rate of currently 2% over Euribor
•	Refinancing impact on FY2015 earnings and cash flow:
	− €9.9 million early redemption fee
	− €5.7 million transaction costs, thereof €5.0 million
	capitalized
	− €15.4 million loss from the derecognition of embed
	ded derivatives (from other assets; non-cash item)

Cash flow overview

Cash Flow Statement (€mm)
	2014 Actual	2015 Preliminary
Cash flow from operating activities	87.8	86.0
Cash flow from investing activities	(35.6)	(51.2)
Cash flow from financing activities	(41.2)	(28.4)
Net increase / (decrease) in cash	11.0	6.4
Effect of movements in exchange rates	0.7	(0.4)
Cash as of beginning of the period	21.8	33.5
Cash as of end of period	33.5	39.5

Comments

• In FY14 begin of sale of receivables program (factoring); €20.2mm trade receivables were sold to a factor, resulting in a cash-in of €19.1mm in March 2014.
• In Q4 FY15 factoring of Romanian Powerise receivables implemented resulting in €6.7 million cash-in.

External revenue by region and customer market

External revenue (€mm)
	2014 Actual	2015 Preliminary
Gas Spring	127.8	134.0
Powerise	21.8	54.8
Industrial	96.7	96.4
Swivel Chair	21.0	23.3
Europe	267.3	308.5
Gas Spring	72.2	95.3
Powerise	64.0	85.0
Industrial	37.4	44.6
Swivel Chair	3.2	4.4
NAFTA	176.8	229.3
Gas Spring	55.0	65.1
Powerise	-	-
Industrial	8.1	8.3
Swivel Chair	0.1	0.1
Asia / Pacific and RoW	63.2	73.5
Total	507.3	611.3

Adj. EBITDA by region (y-o-y)

Adj. EBITDA by region (€mm)
	2014 Actual	2015 Preliminary
Europe	57.5	62.5
NAFTA	22.8	31.6
Asia / Pacific and RoW	12.2	13.2
Total	92.5	107.3