Stabilus SE — Investor Presentation 2015

Feb 16, 2015

First quarter 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.

While the Company has taken all reasonable care to ensure that the facts stated in this presentation are accurate and that the opinions contained in it are fair and reasonable, this presentation is selective in nature. Any opinions expressed in this presentation are subject to change without notice and neither the Company nor any other person is under any obligation to update or keep current the information contained in this presentation. Where this presentation quotes any information or statistics from any external source, you should not interpret that the Company has adopted or endorsed such information or statistics as being accurate. This presentation contains forward-looking statements, which involve risks, uncertainties and assumptions that could cause actual results, performance or events to differ materially from those described in, or expressed or implied by, such statements. These statements reflect the Company's current knowledge and its expectations and projections about future events and may be identified by the context of such statements or words such as "anticipate," "believe", "estimate", "expect", "intend", "plan", "project" and "target". No obligation is assumed to update any such statement.

Agenda

1.	Financial highlights
2.	Business by region
3.	Business by customer market
4.	Outlook
5.	Appendix

First quarter results FY2015

1. Financial highlights 1.

Highlights Q1 FY2015

Fiscal year-end September

Sales	• Sales up by 16.3% to €135.1mm (+€18.9mm vs. Q1 FY14) • Growth in all geographies with NAFTA (+21.3%), Europe (+14.9%) and Asia / RoW (+8.6%) • Growth in all markets with Powerise (+71.5%), Gas Spring (+8.3%), Capital Goods (+3.2%) and Swivel Chair (+10.3%)
Adj. EBITDA	• Adj. EBITDA up by 22.2% to €22.6mm (+€4.1mm vs. Q1 FY14) • Adj. EBITDA margin at 16.7% (vs. Q1 FY14 margin of 15.9%) • Strong growth in NAFTA (+47.9%) and Europe (+14.6%)
Adj. EBIT	• Adj. EBIT up by 25.4% to €15.3mm (+€3.1mm vs. Q1 FY14) • Adj. EBIT margin at 11.3% (vs. Q1 FY14 margin of 10.5%)
Net debt	• Net financial debt of €234mm • Net financial debt / adj. EBITDA LTM decreased to 2.43x
Outlook	• Full year revenue guidance of €550–560mm confirmed and potential revenues upside of ~€25mm if US/€ stays at 1.20 for the rest of the year • EBITDA and EBIT margins in line with historic results • Refinancing of senior secured notes in June 2015 could deliver annualized cash interest savings of ~€13mm − New syndicated loan contract signed on December 19, 2014

Stabilus strong operating performance in Q1 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 costs, restructuring / ramp-up costs and pension interest

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

3.

1.

4.

5.

First quarter results FY2015

2. Business by region

Quarterly revenue and adj. EBITDA growth – by region (y-o-y)

Note: Stabilus fiscal year-end is September; Detailed segmental data reflected in the Q1 report has been rounded for presentational reasons; Growth rates based on actual numbers

¹ Billed-from view

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

NAFTA – Revenue growth (y-o-y)

• Revenue from US and Mexican entities increased by 21.3% year-over-year to €49.5mm
• − Revenue in US\$ terms improved +11.4%: \$61.9mm Q1 FY15 vs. \$55.5mm in Q1 FY14
• − Underlying FX rate development:

\$/€1.25 in Q1 FY15 vs. \$/€1.36 in Q1 FY14

• Powerise increased to €18.2mm/\$22.8mm in Q1 FY15 vs. €14.5mm/\$19.7mm in Q1 FY14
• − Strong SUV sales and 2014 model launches
• NAFTA car production in Q1 FY15 at 4.2mm units +4.3% vs. previous year
• Strengthening US\$ has positive impact on profitability

Note: Stabilus fiscal year-end is September; Detailed segmental financials reflected in the Q1 report have been rounded for presentational reasons; Growth rates based on actual numbers

Europe – Revenue growth (y-o-y)

• European revenue at €68.0mm (+14.9% vs. previous year)
• Car production flat at ~5.0mm units in Q1 FY15
• Very strong sales growth of +321% in Powerise at €11.2mm vs. €2.7mm in Q1 FY14
• − Successful premium model launches in 2014 driving volume (e.g. Porsche Macan, BMW X3)
• − Launches in high-volume models drive further growth potential (e.g. VW Passat, Ford Mondeo)

Note: Stabilus fiscal year-end is September; Detailed segmental financials reflected in the Q1 report have been rounded for presentational reasons; Growth rates based on actual numbers

Asia/RoW – Revenue growth (y-o-y)

• Strong year-over-year revenue growth of 8.6% in Q1 FY15 mainly driven by automotive Gas Springs
• Asia/Pacific car production remained constant at about 11.5mm units vs. previous year
• − China revenue at €10.6mm (+18.3% vs. previous year)
• − Ongoing contract wins and increasing market share in China
• Brazilian market continues to be weak
• − Sales decreased to €1.8mm (-16.9% vs. previous year)
• − Negative overall economic climate and shrinking automotive sales

Note: Stabilus fiscal year-end is September; Detailed segmental financials reflected in the Q1 report have been rounded for presentational reasons; Growth rates based on actual numbers

2.

1.

First quarter results FY2015

3. Business by customer market

Revenue growth – by business (y-o-y)

actual numbers; ¹Industrial including Swivel Chair revenue

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

Note: Stabilus fiscal year-end is September; Detailed segmental data reflected in the Q1 report has been rounded for presentational reasons; Growth rates based on actual numbers

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

Note: Stabilus fiscal year-end is September; Detailed segmental data reflected in the Q1 report has been rounded for presentational reasons; Growth rates based on actual numbers

First quarter results FY2015

Outlook FY2015: Financial performance

	FY2014 Actual	FY2015 Guidance
Sales	€507mm	€550-560mm
% Growth	10.3%	9-10%
Sales at constant FX rates of €/\$ 1.20 for the year % Growth		€575-585mm 14-15%
% Adj. EBIT margin	12.8%	12-13%

Comments

• On track to deliver another record year, achieving ambitious revenue and EBIT targets
• Strong European results support solid sector outlook
• Powerise is a clear growth driver going forward
• Company will benefit from stronger US\$ going forward

Q&A

Financial calendar

February 18, 2015	• Annual General Meeting
May 15, 2015	• Interim Report Q2 for financial year 2015

Investor Relations Andreas Schröder Phone: +352 286 770 21 E-Mail: aschroeder@stabilus.com

For further information please visit: www.ir.stabilus.com

First quarter results FY2015

P&L overview

P&L (€mm)
3 months ended		Q1 FY	December 2013 Actual	December 2014 Actual
Revenue			116.2	135.1
COGS			(90.3)	(104.4)
Gross Profit			25.8	30.8
% margin			22.2%	22.8%
R&D			(4.5)	(5.4)
S&M			(9.9)	(10.4)
G&A			(4.6)	(7.3)
Other income/expenses			0.3	1.9
Adjustments			5.0	5.9
Adj. EBIT			12.2	15.3
% margin			10.5%	11.3%
Depreciation & amortization (exc. PPA)			6.3	7.3
Adj. EBITDA			18.5	22.6
% margin			15.9%	16.7%
Advisory	1 1.0 0.7
Restructuring / Ramp-up	2 0.4 1.7
Pension interest add-back	0.4 0.3
PPA adjustments	3.2 3.2
Total Adjustments	5.0 5.9

Note: Numbers are rounded to one decimal, margins calculated based on actual financials ¹ Advisory includes €0.5mm new financing related charges and further €4.5mm are assumed to be amortized over the loan duration ² Restructuring and Ramp-up includes €1.5mm for Koblenz site management changes and relocation of production between plants

Balance sheet overview

Balance sheet (€mm)
	September 2014 Actual	December 2014 Actual
Property, plant and equipment	119.6	119.7
Goodwill	51.5	51.5
Other intangible assets	171.0	169.8
Inventories	49.5	54.3
Trade receivables	56.5	54.3
Other assets	38.7	48.2
Cash	33.5	23.0
Total assets	520.3	520.8
Equity incl. minorities	76.1	76.6
Debt (incl. accrued interest)	262.3	257.4
Pension plans and similar obligations	48.4	51.6
Deferred tax liabilities	43.8	42.7
Trade accounts payable	53.7	49.3
Other liabilities	36.0	43.3
Total equity and liabilities	520.3	520.8
Net financial debt	228.9	234.3
Net financial debt / adj. EBITDA LTM	2.5x	2.4x

Note: EUSIs were extinguished during the reorganization prior to the IPO and are no longer recognized on the company's balance sheet; Numbers rounded to one decimal

Stabilus has successfully increased its cash flow generation (3M ended December 31, 2014)

Cash Flow Statement (€mm)
3 months ended	Q1 FY	December 2013 Actual	December 2014 Actual
Cash flows from operating activities		4.6	9.5
Cash flows from investing activities		(10.1)	(9.9)
Receipts under revolving credit facility		8.0	-
Payments for finance leases and interest		(13.1)	(10.1)
Cash flows from financing activities		(5.1)	(10.1)
Net increase / (decrease) in cash		(10.6)	(10.5)
Effect of movements in exchange rates		0.0	0.1
Cash as of beginning of the period		21.8	33.5
Cash as of end of period		11.2	23.0

Note: Numbers rounded to one decimal

External sales by region and customer market (3M ended December 31, 2014)

External sales (€mm)
3 months ended	Q1 FY	December 2013 Actual	December 2014 Actual
Europe		59.2	68.0
Gas spring		30.1	30.9
Powerise		2.7	11.2
Industrial		21.3	20.6
Swivel Chair		5.1	5.3
NAFTA		40.8	49.5
Gas spring		17.3	20.2
Powerise		14.5	18.2
Industrial		8.3	10.0
Swivel Chair		0.7	1.0
RoW		16.2	17.6
Gas spring		14.4	15.8
Powerise		-	-
Industrial		1.8	1.8
Swivel Chair		-	-
Total		116.2	135.1
Note: Numbers rounded to one decimal

Review of revenue performance by quarter

Review of adj. EBITDA development by quarter

Note: Stabilus fiscal year-end is September

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

Review of adj. EBIT development by quarter

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