Stabilus SE — Investor Presentation 2021

Aug 2, 2021

Q3 FY2021 RESULTS AUGUST 2, 2021

¹ MOTION CONTROL

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.

Numbers were rounded to one decimal. Due to rounding, numbers presented may not add up precisely to the totals provided.

AGENDA

OPERATIONAL HIGHLIGHTS

FINANCIAL RESULTS

RESULTS BY OPERATING SEGMENT

OUTLOOK

APPENDIX

OPERATIONAL HIGHLIGHTS

	Status quo		Corporate actions
› ›	Global light vehicle production (LVP) in Q3 FY21 at 18.8m vehicles, + 48.6% y/y (i.e., vs. Q3 of the previous fiscal year, the quarter most affected by lockdown measures last year) and – 8.9% q/q Demand from Automotive customers improving; but due to semiconductor supply issues somewhat softer development in Q3 quarter-on-quarter (i.e., vs. Q2 FY21): our Automotive business units were impacted by plant shutdowns at several OEMs	› › ›	Cost flexibilization (EBIT recovery) program Aligning/adjusting our production capacity to customer demand by utilizing short-time work schemes, furloughs, plant shut- downs for several days, selected layoffs et al. Stabilus pandemic rules (incl. social distancing, disinfection et al.) continue to be effective and operational; close monitoring of all activities continues, in order to reduce COVID-19 risks for
›	Continuing recovery in our Industrial business in Q3 FY21: we experienced a noteworthy rebound in subsegments Commercial Vehicles and Distributors, Independent Aftermarket, E-commerce (DIAMEC)	›	Stabilus employees and operations; testing and vaccination programs started Powerise Pinghu plant, Stabilus (Zhejiang) Ltd., recently inaugurated; both Powerise production lines moved from
›	Flexible production set-up continues to be very important in the current market environment		Changzhou plant and installed, additional lines in construction
›	Strict safety procedures are in place (pandemic plan); only very few active Covid-19 cases at Stabilus Mexico, continuing testing and vaccination at our major plants worldwide

STABILUS (ZHEJIANG) LTD., PINGHU, CHINA

FINANCIAL RESULTS

Revenue	› Revenue at €228.7m (vs. €147.0m in Q3 FY20), + €81.7m or + 55.6% y/y › Acquisition effect: 0% y/y, currency translation effect: - 0.4% y/y, organic growth: + 56.0% y/y › In Q3 FY21, rebound in all regions and all business units (vs. Q3 FY20, the quarter most affected by Covid-19 crisis last year)
Adj. EBIT	› Adj. EBIT at €30.9m (vs. €5.7m in Q3 FY20), + 442.1% y/y › Adj. EBIT margin at 13.5% (vs. 3.9% in Q3 FY20)
Profit	› Profit at €15.9m (vs. €(16.4)m in Q3 FY20) › Profit margin at 7.0% (vs. (11.2)% in Q3 FY20)
Adj. FCF	› Adj. FCF (i.e., FCF before acquisitions) = FCF: there were no payments for acquisitions in Q3 FY21 › Adj. FCF at €30.3m (vs. €(6.0)m in Q3 FY20), i.e., 13.2% of revenue (vs. (4.1)% in Q3 FY20)
Net leverage ratio	› Net leverage ratio at 0.6x (vs. 1.2x as of end FY2020 and 1.4x as of end Q3 FY20) › Net financial debt at €112.0m (vs. €172.3m as of end FY2020 and €214.2m as of end Q3 FY20)
Outlook	› Forecast refined to revenue of €930m - €950m (previously: €900m - €950m) with an adjusted EBIT margin of 14% - 15% (previously: 13% - 15%)

KEY FIGURES

Q3 FY2021

KEY FIGURES

9M FY20 9M FY21

9M FY2021

9M FY20 9M FY21

RESULTS BY OPERATING SEGMENT

12

Revenue (€m) Comments

Adj. EBIT (€m)

• › Light vehicle production (LVP) in Europe, Middle East and Africa in Q3 FY21 at 4.7m units, i.e., + 83.6% vs. Q3 FY20
• › EMEA's revenue up by €39.2m or 50.2% y/y to €117.3m in Q3 FY21, organic growth at 51.5% y/y
• › Organic growth in Automotive Gas Spring division 83.7% y/y and in Automotive Powerise 62.7% y/y: Powerise y-o-y growth driven by higher production for e.g., Audi A6, Audi A5, Audi A3, Audi Q2, Audi e-tron, Porsche Macan, Porsche Taycan, Porsche Cayenne, Skoda Octavia, VW Transporter, VW T-Roc, VW Passat, Mini Countryman, BMW X3, BMW 5-series, Ford Puma, Daimler EQS
• › Both Automotive Gas Spring and Automotive Powerise were impacted by plant shutdowns at several OEMs in Europe (due to supply chain issues) and less favorable product mix
• › Noticeable recovery of the Stabilus Industrial business in EMEA: Industrial revenue up by 35.8% to €65.2m in Q3 FY21 (vs. 48.0m in Q3 FY20); organic growth at 37.1% y/y: rebound in all market segments except for Energy & Construction and Aerospace, Marine & Rail where revenues were still below prior year's Q3
• › Adj. EBIT margin improved to 13.4%, corresponding to higher sales

AMERICAS Q3 FY2021

Revenue (€m) Comments

Adj. EBIT (€m)

• › Light vehicle production (LVP) in Americas in Q3 FY21 at 3.8m units, i.e., + 149.6% vs. Q3 FY20
• › Americas' revenue up by €33.1m or 78.3% y/y, currency translation effect at 1.1%, organic growth at 77.2% y/y
• › Organic growth in Automotive Gas Spring division at 110.1% y/y and in Automotive Powerise at 162.6%; Powerise growth particularly due to higher production for e.g., Audi Q5, BMW X3, BMW X4, BMW X6, Ford Everest, Ford Nautilus, Ford Expedition, Tesla Model 3, Tesla Model Y, GM XT6, GM Chevrolet Blazer, GM Chevrolet Equinox, Jeep Grand Cherokee
• › Both Automotive Gas Spring and Automotive Powerise revenues were impacted by plant shutdowns at several OEMs in Americas (due to supply chain issues)
• › Americas' Industrial revenue up by €5.2m or 21.9% y/y, organic growth at 32.1%: rebound in all market segments apart from Healthcare, Recreation & Furniture and Energy & Construction
• › Adj. EBIT margin improved to 12.9%, but still impacted by less favorable product mix and higher raw material prices

Revenue (€m) Comments

Adj. EBIT (€m)

• › Light vehicle production (LVP) in Asia-Pacific in Q3 FY21 at 10.3m units, i.e., + 20.0% vs. Q3 FY20
• › APAC's revenue grew by €9.3m or 34.8% to €36.0m in Q3 FY21, organic growth at 35.2% y/y (note: prior year's Q3 was to a lower degree impacted by Covid-19 in APAC, above all China, than in other regions)
• › Organic growth in Automotive Gas Spring division at 22.1% y/y and in Automotive Powerise at 72.3% y/y; Powerise growth driven by higher production for e.g., CHJ Leading Ideal One (EV, full-sized SUV), VW ID. Roomzz (EV, SUV), Tesla Model Y (EV), SAIC MG GS (SUV), Hyundai Kia K7, Hyundai Ioniq 5 (EV, compact crossover SUV)
• › Organic growth of APAC's Industrial revenue at 27.3% y/y strong growth in all market segments, particularly in Distributors, Independent Aftermarket, E-commerce (DIAMEC) and Commercial Vehicles, to a lower degree in Healthcare, Recreation & Furniture and Industrial Machinery & Automation
• › Adj. EBIT margin 80bp below prior year's Q3, due to the less favorable product mix and higher raw material prices

REVENUE BY BUSINESS UNIT

Q3 FY2021

Q3 FY2021

Distributors, Independent Aftermarket, E-commerce (DIAMEC) Mobility (M)

Healthcare, Recreation & Furniture (HRF)

Energy, Construction, Industrial Machinery & Automation (ECIMA)

›	Industrial revenue at €99.1m, up by 31.1% or €23.5m y/y
›	The industrial business recovered in Distributors, Independent Aftermarket, E-commerce (DIAMEC) and Mobility market segments, with growth rates of +40% y/y (+ c. €11m y/y) and +59% y/y (+ c. €10m), respectively
›	Healthcare, Recreation & Furniture (HRF) and Energy, Construction, Industrial Machinery & Automation (ECIMA) businesses were each c. €1m above the respective prior year's level
›	As a result, the revenue share of DIAMEC and Mobility segments increased to 37% (PY: 34%) and 28% (PY: 23%) of total industrial revenue and of HRF and ECIMA decreased to 18% (PY: 22%) and 17% (PY: 20%), respectively
›	Within Mobility segment the recovery was mainly driven by Commercial Vehicles and within ECIMA by Industrial Machinery & Automation business; the Energy & Construction subsegment with -10% y/y (- c. €1m y/y) continue to be impacted by the current COVID-19 crisis

OUTLOOK

Guidance			Comments
	FY2020 Actual	FY2021 Guidance
Revenue	€822.1m	€930m - €950m
Adj. EBIT margin	11.8%	14% - 15%

› Global light vehicle production (LVP) in FY2021 (Oct 2020-Sept 2021) is expected to grow by c. 12% y/y (i.e., c. 82.9m in FY21 vs. c. 73.9m in FY20). The return to the annual production level of c. 90m is expected for FY2022. (Source: leading forecast institutes, IHS Markit July 2021 et al.) › The Covid-19 pandemic has affected all our customer markets and target industries. The semiconductor supply issues at OEMs are not yet conclusively resolved. In addition, price increases for certain raw materials and components can not be ruled out. With only few weeks left until the end of our fiscal year, we have reviewed and further refined our forecast: We now expect revenue of €930m - €950m (previously: €900m - €950m) with an adjusted EBIT margin of 14% - 15% (previously: 13% - 15%). › We continue to pursue our long-term strategy, focusing on sustainable, profitable growth, globalization, excellence, innovation as well as team spirit (One Stabilus). Based on the current LVP and GDP assumptions, we strive for organic revenue CAGR 2020-2025 of 6% and the return to an adj. EBIT margin of 15%.

APPENDIX

REVENUE AND ADJUSTED EBIT MARGIN BY QUARTER

REVENUE OVERVIEW THREE MONTHS ENDED JUNE 30, 2021

Revenue (€m)

Actual	Actual	Change	% change	Acquisition effect	Currency effect	Organic growth
16.6	30.5	13.9	83.7%	-	0.0%	83.7%
13.5	21.6	8.1	60.0%	-	(2.7)%	62.7%
48.0	65.2	17.2	35.8%	-	(1.3)%	37.1%
78.1	117.3	39.2	50.2%	-	(1.3)%	51.5%
10.2	21.1	10.9	106.9%	-	(3.2)%	110.1%
8.4	25.3	16.9	201.2%	-	38.6%	162.6%
23.7	28.9	5.2	21.9%	-	(10.2)%	32.1%
42.3	75.4	33.1	78.3%	-	1.1%	77.2%
16.0	19.4	3.4	21.3%	-	(0.8)%	22.1%
6.8	11.7	4.9	72.1%	-	(0.2)%	72.3%
3.9	5.0	1.1	28.2%	-	0.9%	27.3%
26.7	36.0	9.3	34.8%	-	(0.4)%	35.2%
42.7	70.9	28.2	66.0%	-	(1.1)%	67.1%
28.7	58.6	29.9	104.2%	-	9.9%	94.3%
75.6	99.1	23.5	31.1%	-	(4.0)%	35.1%
147.0	228.7	81.7	55.6%	-	(0.4)%	56.0%
	Q3 FY2020	Q3 FY2021

REVENUE OVERVIEW NINE MONTHS ENDED JUNE 30, 2021

Revenue (€m)

	9M FY2020 Actual	9M FY2021 Actual	Change	% change	Acquisition effect	Currency effect	Organic growth
Automotive Gas Spring	82.1	98.1	16.0	19.5%	-	0.0%	19.5%
Automotive Powerise	59.4	73.2	13.8	23.2%	-	(2.3)%	25.5%
Industrial	165.2	186.9	21.7	13.1%	-	(1.2)%	14.3%
EMEA	306.7	358.2	51.5	16.8%	-	(1.1)%	17.9%
Automotive Gas Spring	61.8	70.0	8.2	13.3%	-	(9.8)%	23.1%
Automotive Powerise	70.5	93.4	22.9	32.5%	-	(7.9)%	40.4%
Industrial	83.0	80.7	(2.3)	(2.8)%	-	(9.1)%	6.3%
AMERICAS	215.3	244.2	28.9	13.4%	-	(8.9)%	22.3%
Automotive Gas Spring	48.3	61.9	13.6	28.2%	-	(1.8)%	30.0%
Automotive Powerise	17.1	29.9	12.8	74.9%	-	(1.6)%	76.5%
Industrial	12.0	14.0	2.0	16.7%	-	(0.2)%	16.9%
APAC	77.4	105.7	28.3	36.6%	-	(1.5)%	38.1%
Total Automotive Gas Spring (AGS)	192.2	230.0	37.8	19.7%	-	(3.6)%	23.3%
Total Automotive Powerise (APR)	147.0	196.5	49.5	33.7%	-	(4.9)%	38.6%
Total Industrial (IND)	260.2	281.6	21.4	8.2%	-	(3.7)%	11.9%
Total	599.4	708.1	108.7	18.1%	-	(4.0)%	22.1%

P&L OVERVIEW

THREE MONTHS ENDED JUNE 30, 2021

P&L (€m)

	Q3 FY2020 Actual	Q3 FY2021 Actual	Change	% change
Revenue	147.0	228.7	81.7	55.6%
Cost of sales	(112.6)	(161.9)	(49.3)	43.8%
Gross Profit	34.4	66.8	32.4	94.2%
% margin	23.4%	29.2%
R&D expenses	(8.9)	(10.7)	(1.8)	20.2%
Selling expenses	(42.7)	(20.1)	22.6	(52.9)%
Administrative expenses	(7.6)	(9.6)	(2.0)	26.3%
Other income/expenses	3.0	0.9	(2.1)	(70.0)%
EBIT	(21.8)	27.4	49.2	<(100.0)%
% margin	(14.8)%	12.0%
Finance income/costs	(2.5)	(4.4)	(1.9)	76.0%
EBT	(24.3)	23.1	47.4	<(100.0)%
% margin	(16.5)%	10.1%
Income tax	7.9	(7.1)	(15.0)	<(100.0)%
Profit	(16.4)	15.9	32.3	<(100.0)%
% margin	(11.2)%	7.0%
EPS in €	(0.59)	0.64	1.23	<(100.0)%

• › Q3 of the previous fiscal year was the quarter most severely affected by Covid-19 crisis; gross profit margin rebounded to 29.2% in Q3 FY21
• › Cost of sales and selling expenses in Q3 of the previous fiscal year included a one-off, non-cash write-down (impairment) of customer relationships in aerospace business, as a result of the Covid-19 crisis: the impairment of intangibles assets amounted to €25.7m, €24.4m thereof were included in the selling expenses and €1.3m in the cost of sales

P&L OVERVIEW

NINE MONTHS ENDED JUNE 30, 2021

P&L (€m)

	9M FY2020 Actual	9M FY2021 Actual	Change	% change
Revenue	599.4	708.1	108.7	18.1%
Cost of sales	(433.7)	(496.5)	(62.8)	14.5%
Gross Profit	165.7	211.6	45.9	27.7%
% margin	27.6%	29.9%
R&D expenses	(30.4)	(31.6)	(1.2)	3.9%
Selling expenses	(86.7)	(61.2)	25.5	(29.4)%
Administrative expenses	(26.0)	(30.5)	(4.5)	17.3%
Other income/expenses	7.5	2.5	(5.0)	(66.7)%
EBIT	30.1	90.8	60.7	>100.0%
% margin	5.0%	12.8%
Finance income/costs	(3.3)	(11.5)	(8.2)	>100.0%
EBT	26.8	79.3	52.5	>100.0%
% margin	4.5%	11.2%
Income tax	(8.7)	(23.1)	(14.4)	>100.0%
Profit	18.1	56.2	38.1	>100.0%
% margin	3.0%	7.9%
EPS in €	0.79	2.27	1.48	>100.0%

• › Gross profit margin at roughly 30% in 9M FY21 (vs. 27.6% in 9M FY20)
• › R&D expenses up by €1.2m or 3.9% y/y; capitalized R&D expenses at €12.7m in 9M FY21 (vs. €13.1m in 9M FY20)
• › Cost of sales and selling expenses in Q3 of the previous fiscal year included a one-off, non-cash write-down (impairment) of customer relationships in aerospace business, as a result of the Covid-19 crisis: the impairment of intangibles assets amounted to €25.7m, €24.4m thereof were included in the selling expenses and €1.3m in the cost of sales

EBIT ADJUSTMENTS

THREE AND NINE MONTHS ENDED JUNE 30, 2021

Adjusted EBIT (€m)

	Q3 FY2020 Actual	Q3 FY2021 Actual	Change	% change
EBIT	(21.8)	27.4	49.2	<(100.0)%
PPA adj. -impairment	25.7	-	(25.7)	(100.0)%
PPA adj. - D&A (2010 PPA)	1.7	1.2	(0.5)	(29.4)%
PPA adj. - D&A (2016 PPA)	2.1	2.0	(0.1)	(4.8)%
PPA adj. - D&A (2019 PPA)	0.7	0.2	(0.5)	(71.4)%
PPA adj. – purchase price GA	(2.8)	-	2.8	(100.0)%
Total adjustments	27.5	3.5	(24.0)	(87.3)%
Adjusted EBIT	5.7	30.9	25.2	>100.0%
% margin	3.9%	13.5%

	9M FY2020 Actual	9M FY2021 Actual	Change	% change
EBIT	30.1	90.8	60.7	>100.0%
PPA adj. -impairment	25.7	-	(25.7)	(100.0)%
PPA adj. - D&A (2010 PPA)	5.2	3.5	(1.7)	(32.7)%
PPA adj. - D&A (2016 PPA)	6.3	6.1	(0.2)	(3.2)%
PPA adj. - D&A (2019 PPA)	2.3	0.7	(1.6)	(69.6)%
PPA adj. – purchase price GA	(2.8)	-	2.8	(100.0)%
Total adjustments	36.7	10.3	(26.4)	(71.9)%
Adjusted EBIT	66.8	101.1	34.3	51.3%
% margin	11.1%	14.3%

• › PPA adjustments comprise depreciation and amortization of step-ups and intangible assets acquired during 2010, 2016 and 2019 acquisitions
• › The decrease of the depreciation & amortization related to 2010 PPA and of the corresponding EBIT adjustment is the consequence of unpatented technology being fully amortized now (useful life of 10 years)
• › The decrease of the depreciation & amortization related to 2019 PPA and of the corresponding EBIT adjustment is the consequence of the Q3 FY20's impairment of customer relationships in aerospace business

BALANCE SHEET OVERVIEW

JUNE 30, 2021

Balance sheet (€m)
	Sept 2020 Actual	June 2021 Actual	Change	% change
Property, plant and equipm.	229.8	226.3	(3.5)	(1.5)%
Goodwill	207.7	206.6	(1.1)	(0.5)%
Other intangible assets	229.3	220.3	(9.0)	(3.9)%
Inventories	97.2	124.4	27.2	28.0%
Trade receivables	117.1	119.0	1.9	1.6%
Other assets	40.1	44.1	4.0	10.0%
Cash	162.4	238.4	76.0	46.8%
Total assets	1,083.6	1,179.1	95.5	8.8%
Equity incl. minorities	469.6	523.5	53.9	11.5%
Debt (incl. accrued interest)	322.4	342.9	20.5	6.4%

Net leverage ratio 1.2x 0.6x

Pension plans 57.0 54.5 (2.5) (4.4)% Deferred tax liabilities 43.7 44.3 0.6 1.4% Trade payables 71.1 80.0 8.9 12.5% Other liabilities 119.9 133.9 14.0 11.7% Total equity and liabilities 1,083.6 1,179.1 95.5 8.8%

• › Other intangible assets down by €9.0m mainly due to scheduled amortization
• › Inventories up by €27.2m primarily due to higher stock of raw materials and supplies (larger buffer during the current Covid-19 crisis and short-notice customer call-off changes)
• › Cash up by €76.0m primarily as a result of higher cash inflows from operating activities; see 9M cash flow overview on following pages
• › Debt up by €20.5m primarily due to the issue of €95m promissory note (Schuldschein) in Q2 FY21, partly offset by redemption of senior loans and revolving credit facility in the same quarter of FY21
• › Trade payables up by €8.9m, corresponding to higher production level
• › Other liabilities up by €14.0m, largely due to higher provisions for warranties, employee related costs and other risks

CASH FLOW OVERVIEW THREE MONTHS ENDED JUNE 30, 2021

Cash Flow Statement (€m)

	Q3 FY2020 Actual	Q3 FY2021 Actual	Change	% change
Cash flow from operating activities	8.5	39.9	31.4	>100.0%
Cash flow from investing activities	(14.5)	(9.6)	4.9	(33.8)%
Cash flow from financing activities	(2.7)	(7.1)	(4.4)	>100.0%
Net increase / (decrease) in cash	(8.7)	23.3	32.0	<(100.0)%
Effect of movements in exchange rates	0.1	-	(0.1)	(100.0)%
Cash as of beginning of the period	122.7	215.2	92.5	75.4%
Cash as of end of the period	114.0	238.4	124.4	>100.0%

Adj. FCF (€m)

	Q3 FY2020 Actual	Q3 FY2021 Actual	Change	% change
Cash flow from operating activities	8.5	39.9	31.4	>100.0%
Cash flow from investing activities	(14.5)	(9.6)	4.9	(33.8)%
Free cash flow	(6.0)	30.3	36.3	<(100.0)%
Adjustments	-	-	-	n/a
Adj. FCF	(6.0)	30.3	36.3	<(100.0)%

• › Capex in Q3 FY21 at €9.5m (vs. €14.5m in Q3 FY20), 34.5% y/y
• › Cash inflow from operating activities up by €31.4m essentially due to higher earnings
• › Cash outflow for financing activities up by €4.4m essentially due to the redemption of the revolving credit facility
• › As a result of higher cash inflow from operating activities and lower cash outflow for investing activities (i.e., lower capex), the adj. FCF increased substantially from €(6.0)m in Q3 FY20 to €30.3m in Q3 FY21; in Q3 FY21 there were no payments for acquisitions, and consequently no adjustments to FCF, adj. FCF (i.e., FCF before acquisitions) equals FCF

CASH FLOW OVERVIEW NINE MONTHS ENDED JUNE 30, 2021

Cash Flow Statement (€m)

	9MFY2020 Actual	9M FY2021 Actual	Change	% change
Cash flow from operating activities	52.1	109.8	57.7	>100.0%
Cash flow from investing activities	(38.4)	(28.8)	9.6	(25.0)%
Cash flow from financing activities	(35.7)	(6.4)	29.3	(82.1)%
Net increase / (decrease) in cash	(22.0)	74.6	96.6	<(100.0)%
Effect of movements in exchange rates	(3.0)	1.4	4.4	<(100.0)%
Cash as of beginning of the period	139.0	162.4	23.4	16.8%
Cash as of end of the period	114.0	238.4	124.4	>100.0%

Adj. FCF (€m)

	9M FY2020 Actual	9M FY2021 Actual	Change	% change
Cash flow from operating activities	52.1	109.8	57.7	>100.0%
Cash flow from investing activities	(38.4)	(28.8)	9.6	(25.0)%
Free cash flow	13.7	81.0	67.3	>100.0%
Adjustments	1.1	-	(1.1)	(100.0)%
Adj. FCF	14.8	81.0	66.2	>100.0%

• › Capex in 9M FY21 at €29.4m (vs. €37.7m in 9M FY20), 22.0% y/y
• › Cash inflow from operating activities up by €57.7m essentially due to higher earnings and lower income tax payments
• › Cash outflow for financing activities down by €29.3m essentially due to the issue of promissory note (Schuldschein) and lower y/y dividend payment, partly offset by higher y/y redemption of senior facilities (senior loan and revolver)
• › As a result of higher cash inflow from operating activities and lower cash outflow for investing activities (i.e., lower capex), the adj. FCF increased substantially from €14.8m in 9M FY20 to €81.0m in 9M FY21; in 9M FY21 there were no payments for acquisitions, and consequently no adjustments to FCF, adj. FCF (i.e., FCF before acquisitions) equals FCF

CURRENCY EXCHANGE RATES NINE MONTHS ENDED JUNE 30, 2021

Closing and average currency exchange rates

1 EURO in	ISO code	Closing rate June 2020	Closing rate June 2021	Average rate 9M FY2020	Average rate 9M FY2021	Average rate % change
Australian dollar	AUD	1.6344	1.5853	1.6584	1.5858	(4.4)%
Argentine peso	ARS	78.7852	113.7985	69.2517	105.0484	51.7%
Brazilian real	BRL	6.1118	5.9050	5.1314	6.4739	26.2%
Chinese yuan (renminbi)	CNY	7.9219	7.6742	7.7653	7.8318	0.9%
South Korean won	KRW	1,345.8300	1,341.4100	1,320.2001	1,342.6003	1.7%
Mexican peso	MXN	25.9470	23.5784	23.0128	24.3814	5.9%
Romanian leu	RON	4.8397	4.9280	4.8006	4.8915	1.9%
Turkish lira	TRY	7.6761	10.3210	6.9065	9.4755	37.2%
United States dollar	USD	1.1198	1.1884	1.1034	1.2014	8.9%

BRIEF REMINDER: CONVERSION AND RELOCATION

CHANGE TO SOCIETAS EUROPAEA (SE) AND TRANSFER TO GERMANY

MOTION CONTROL