Stabilus SE — Investor Presentation 2016

Feb 17, 2016

First quarter results FY2016

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 FY2016

1. Financial highlights 1.

Highlights Q1 FY2016

Fiscal year-end September

Revenue	• Revenue up by 23.8% to €167.3mm (+€32.2mm vs. Q1 FY15) • Growth in all regions with NAFTA (+36.0%), Europe (+18.4%) as well as Asia / Pacific and RoW (+11.4%) • Growth in all markets with Powerise (+44.1%), Capital Goods (+22.5%), Gas Spring (+16.7%) and Swivel Chair (+9.4%)
Adj. EBITDA	• Adj. EBITDA up by 27.0% to €28.7mm (+€6.1mm vs. Q1 FY15) • Adj. EBITDA margin at 17.2% (vs. Q1 FY15 margin of 16.7%)
Adj. EBIT	• Adj. EBIT up by 37.3% to €21.0mm (+€5.7mm vs. Q1 FY15) • Adj. EBIT margin at 12.6% (vs. Q1 FY15 margin of 11.3%)
Net debt	• Net financial debt1 of €233.7mm • Net financial debt / adj. EBITDA LTM decreased to 2.1x (vs. 2.4x as per Q1 FY15)
Outlook	• Full year revenue guidance for FY2016 increased from €660 million to €680mm • Adj. EBIT margin is expected to be in line with historic results at 12-13%

Note: ¹ Net financial debt = principal amount of senior facilities (€267.5 million) less cash (€33.8 million)

Stabilus strong operating performance in Q1 FY2016 (y-o-y)

Note: Stabilus fiscal year-end is September

¹ Adjusted EBIT / EBITDA represents EBIT/ EBITDA, as adjusted by management primarily in relation to severance, consulting, restructuring, one-time legal disputes and other non-recurring costs, as well as interest on pension charges and – in case of adj. EBIT – depreciation and amortization of PPA.

²Simplified definition of FCF differs from more detailed presentation in the quarterly report and page 22 of this presentation

3.

1.

4.

5.

First quarter results FY2016

2. Business by region

6

Q1 FY2016 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 Adjusted EBIT represents EBIT, as adjusted by management primarily in relation to severance, consulting, restructuring, one-time legal disputes and other non-recurring costs, as well as interest on pension charges and the depreciation and amortization of Group's assets to fair value resulting from April 2010 purchase price allocation (PPA).

NAFTA – Q1 FY2016 revenue and adj. EBIT growth (y-o-y)

• NAFTA car production in Q1 FY16 at 4.3mm units, i.e. +1.9% vs. previous year
• NAFTA Q1 FY16 revenue increased by 36.0% to €67.3mm (40.2% of group revenue vs. 36.6% in Q1 FY15)
• Revenue in US\$ terms improved by 19.1% to \$73.7mm in Q1 FY16 vs. \$61.9mm in Q1 FY15
• Strong US auto economy combined with good SUV sales provide a stable base for future growth
• Gas Spring capacity increase in the US plant by 6.4mm units in summer 2016
• 5 th Powerise line in Mexico in ramp up; these actions provide strong base for future customer demand

Europe – Q1 FY2016 revenue and adj. EBIT growth (y-o-y)

• Car production in Q1 FY16 at 5.1mm units, i.e. +2.3% vs. previous year
• Europe's Gas Spring revenue increased by 6.5% to €32.9mm in Q1 FY16, supported by increased Federbein sales
• European Powerise revenue increased by 56.3% to €17.5mm in Q1 FY16 following various launches
• Capital Goods grew by 18.0% to €24.3mm in Q1 FY16 positively impacted by closing backlogs from last fiscal year as well as new projects
• Margin improvement due to footprint optimization and better loading of the Romanian Powerise plant

Asia / Pacific and RoW – Q1 FY2016 revenue and adj. EBIT growth (y-o-y)

• Asia/Pacific and RoW car production in Q1 FY16 at 12.2mm units, i.e. +4.8% vs. previous year
• Strong year-over-year revenue growth of 11.4% in Q1 FY16 mainly driven by automotive gas springs
• China: China's Q1 FY16 revenue at €12.7mm (+19.8% vs. Q1 FY15)
• Chinese market shows a trend to increased SUVs and "boxy cars", which is very supportive for our revenue outlook in this market
• Weak Renminbi impacts (-5 % vs. previous year) Euro revenue and profit
• Adj. EBIT margin impacted by change-over costs at our Korean plant due to new powder paint equipment

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1.

First quarter results FY2016

3. Business by customer market

Q1 FY2016 revenue growth – by business (y-o-y)

Q1 FY2016 revenue growth – Automotive business (y-o-y)

Q1 FY2016 revenue growth – Industrial business (y-o-y)

First quarter results FY2016

Outlook FY2016: Financial performance

	FY2015 Actual	FY2016 Guidance
Revenue	€611mm	€680mm
% Growth	20.5%
% Adj. EBIT margin	12.5%	12-13%

Comments

• On track to deliver another record year, aiming for ambitious revenue and EBIT targets
• Strong European results support solid sector outlook
• Powerise continues to be a clear growth driver going forward
• Revenue guidance for FY2016 increased from €660mm (guidance given in 2015 Annual Report which assumed an average \$-€-exchange rate of 1.15 for FY2016) to €680mm reflecting increased customer order intake; adj. EBIT margin guidance unchanged at 12-13%

Q&A

Financial calendar

February 17, 2016	• Annual General Meeting
May 13, 2016	• Interim Report Q2 for financial year 2016
Investor Relations Andreas Schröder Phone: +352 286 770 21 E-Mail: anschroeder@stabilus.com
For further information please visit: www.ir.stabilus.com

First quarter results FY2016

Q1 FY2016 P&L overview

P&L (€mm)
3 months ended			Q1 FY	December 2014 Actual	December 2015 Actual
Revenue				135.1	167.3
COGS				(104.4)	(126.9)
Gross Profit				30.8	40.4
% margin				22.8%	24.1%
R&D				(5,4)	(5.8)
S&M				(10.4)	(11.2)
G&A				(7.3)	(6.6)
Other income/expenses				1.9	0.7
Adjustments				5.9	3.5
Adj. EBIT				15.3	21.0
% margin				11.3%	12.6%
Depreciation & amortization (exc. PPA)				7.3	7.7
Adj. EBITDA				22.6	28.7
% margin				16.7%	17.2%
Advisory	0.7	-
Restructuring / ramp-up	1.7	-
Pension interest add-back	0.3	0.3
PPA adjustments	3.2	3.2
Total Adjustments	5.9	3.5

Balance sheet overview

Balance sheet (€mm)
	September 2015 Actual	December 2015 Actual
Property, plant and equipment	134.0	139.9
Goodwill	51.5	51.5
Other intangible assets	166.5	164.8
Inventories	59.8	62.4
Trade receivables	62.8	66.3
Other assets	28.3	26.7
Cash	39.5	33.8
Total assets	542.2	545.4
Equity incl. minorities	76.7	88.3
Debt (incl. accrued interest)	263.6	263.9
Pension plans and similar obligations	48.0	48.1
Deferred tax liabilities	39.0	40.4
Trade accounts payable	68.9	56.6
Other liabilities	46.0	48.1
Total equity and liabilities	542.2	545.4

Cash flow overview and free cash flow (3M ended December 31, 2015)

Cash Flow Statement (€mm)
3 months ended	Q1 FY	December 2014 Actual	December 2015 Actual
Cash flow from operating activities		9.5	8.8
Cash flow from investing activities		(9.9)	(13.4)
Cash flow from financing activities		(10.1)	(1.6)
Net increase / (decrease) in cash		(10.5)	(6.2)
Effect of movements in exchange rates		0.1	0.4
Cash as of beginning of the period		33.5	39.5
Cash as of end of the period		23.0	33.8

Free Cash Flow (€mm)

3 months ended	Q1 FY	December 2014 Actual	December 2015 Actual
Cash flow from operating activities		9.5	8.8
Cash flow from investing activities		(9.9)	(13.4)
Payments for interest		(10.0)	(1.4)
Free cash flow		(10.4)	(6.0)

Comments

• Cash flow from operating activities in Q1 FY2016 includes income tax payments of €3.3 million (Q1 FY2015: €1.8 million)

External revenue by region and customer market (3M ended Dec 31, 2015)

External revenue (€mm)
3 months ended	Q1 FY	December 2014 Actual	December 2015 Actual
Gas Spring		30.9	32.9
Powerise		11.2	17.5
Industrial		20.6	24.3
Swivel Chair		5.3	5.7
Europe		68.0	80.5
Gas Spring		20.2	27.5
Powerise		18.2	25.0
Industrial		10.0	13.6
Swivel Chair		1.0	1.1
NAFTA		49.5	67.3
Gas Spring		15.8	17.7
Powerise		-	-
Industrial		1.8	1.9
Swivel Chair		-	-
Asia / Pacific and RoW		17.6	19.6
Total Gas Spring		66.9	78.1
Total Powerise		29.5	42.5
Total Industrial		32.4	39.7
Total Swivel Chair		6.4	7.0
Total		135.1	167.3

Q1 FY2016 adj. EBITDA by region (3M ended Dec 31, 2015)

3 months ended	Q1 FY	December 2014 Actual	December 2015 Actual
Europe		11.8	15.5
NAFTA		7.1	9.6
Asia / Pacific and RoW		3.7	3.6
Total		22.6	28.7