Stabilus SE — Investor Presentation 2022

Aug 1, 2022

Q3 FY2022 RESULTS

AUGUST 1, 2022

¹ MOTION CONTROL

Stabilus SE (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

SIGNIFICANT EVENTS

FINANCIAL RESULTS

RESULTS BY OPERATING SEGMENT

OUTLOOK

5 APPENDIX

SIGNIFICANT EVENTS

Key highlights in Q3 FY2022

• › Double-digit revenue growth of 18.5% y/y, resulting in the revenue guidance increase to €1,070m for the full year
• › Strong Powerise business in the APAC region: APAC's revenue up by 53.1% y/y, with triple-digit revenue growth of 140.2% y/y in the APAC's Automotive Powerise division
• › Strong revenue growth in Americas, supported by favorable US\$/€ exchange rate: +29.4% y/y reported, +15.2% y/y organic; double-digit / high single-digit organic growth rates in all three divisions: Automotive Gas Spring + 6.7% y/y, Automotive Powerise + 29.6% y/y, Industrial + 9.3% y/y
• › Increase of profitability in Q3 FY22 y/y due to stringent cost management and increases in sales prices to compensate for higher cost inflation; these ongoing measures will also lead to a positive impact in Q4 FY22
• › Contingency plan in place in Operations to overcome headwinds, e.g., supply issues, shortages of chips or of natural gas
• › However, uncertainty remains high due to the cost inflation, the Ukraine war, the supply chain issues, as well as the COVID-19 situation in China

Stefan Bauerreis, CFO

CV

› Born 1972, German citizen

• › Professional background
  • › Since June 2022: Stabilus Group, CFO
  • › 2000 ²⁰²²: Schaeffler Group, various management positions in finance:
    • › CFO of the Europe region
    • › CFO of the Germany region
    • › Head of Corporate Accounting, Chief Accountant
  • › 1998 2000: Mannesmann Internal Audit GmbH
• › Professional education
  • › Degree in business administration from Otto Friedrich University of Bamberg with a focus on finance, corporate management and controlling as well as taxes and auditing

EXTRAORDINARY GENERAL MEETING PLEASE VOTE

Two EGMs on August 11, 2022

• › Two EGMs on August 11, 2022, by written resolution only, due to COVID-19 legislation in Luxembourg
• › Agenda: resolutions on authorized capital (up to 10% of total shares), relocation of the registered office to Germany, approval of the new articles of association et al.
• › Quorum: At least half of the share capital must be present or represented at the EGMs for the proposed resolutions to become effective
• › Deadline for the receipt of attestation and voting forms: August 5, 2022
• › Refer to www.stabilus.com/investors/gm for further details
• › Please cast your vote. Your participation / voting is very much appreciated.

SECURING FINANCIAL RESOURCES FOR GROWTH AND ACQUISITIONS

Debt structure as of June 30, 2022 – principal amounts (€m)		Comments
600.0		› In addition to €150m promissory notes issued in FY21 and FY22 (€95m + €55m), in June 2022, Stabilus replaced existing senior loans with new credit facilities
350.0	syndicated revolving credit facility	› New credit facilities comprise a syndicated term loan facility of €100m and a syndicated revolving credit facility of€350m (currently undrawn) › Duration: 5 years (plus extension option for 2 additional years)
	(commited, unutilized)	› Interest rates: 50 – 150 basis points above Euribor, depending on the Group's leverage ratio, reasonably low commitment fees on undrawn revolver
100.0	syndicated term loan facility	› Use of funds: the new term loan facility was used for the redemption of the existing senior loan from June 2016
150.0	promissory notes	› By refinancing existing loans, Stabilus secured attractive conditions and increased flexibility for further organic growth and acquisitions
June 30, 2022

FINANCIAL RESULTS

Revenue	› Revenue at €271.1m (vs. €228.7m in Q3 FY21), + €42.4m or + 18.5% y/y › Acquisition effect: 0% y/y, currency translation effect: 6.0% y/y, organic growth: 12.5% y/y
Adj. EBIT	› Adj. EBIT at €37.9m (vs. €30.9m in Q3 FY21), + 22.7% y/y › Adj. EBIT margin at 14.0% (vs. 13.5% in Q3 FY21)
Profit	› Profit at €24.3m (vs. €15.9m in Q3 FY21), + 52.8% y/y › Profit margin at 9.0% (vs. 7.0% in Q3 FY21)
Adj. FCF	› Adj. FCF (i.e., FCF before acquisitions) = FCF: there were no payments for acquisitions in Q3 FY22 › Adj. FCF at €26.8m (vs. €30.3m in Q3 FY21), - 11.6% y/y
Net leverage ratio	› Net leverage ratio at 0.6x (vs. 0.6x as of end FY2021 and 0.6x as of end Q3 FY21) › Net financial debt at €121.9m (vs. €107.0m as of end FY2021 and €112.0m as of end Q3 FY21)
Outlook	› FY2022 forecast for revenue raised to c. €1,070m and for adjusted EBIT margin specified to c. 14%, corresponding to round €150m adj. EBIT (previous outlook, released in Nov 2021: €940m - €990m revenue, 14% - 15% adj. EBIT margin, corresponding to round €140m adj. EBIT at midpoint)

KEY FIGURES

Q3 FY2022

KEY FIGURES

9M FY2022

RESULTS BY OPERATING SEGMENT

13

Revenue (€m) Comments

Adj. EBIT (€m)

• › Light vehicle production (LVP) in Europe, Middle East and Africa in Q3 FY22 at 4.5m units, - 3.9% vs. Q3 FY21
• › EMEA's revenue up by €1.1m or 0.9% y/y to €118.4m in Q3 FY22, organically + 1.9% y/y
• › Automotive Gas Spring revenue 2.6% y/y and Automotive Powerise + 10.2% y/y organically; Automotive Powerise growth was supported by higher production of Powerise units for, e.g., BMW: 4-series, iX (EV); Geely XC40 Coupé; Hyundai Kia Sportage; Mercedes EQS (EV); Tesla Model Y (EV); VW Group: Audi A6, e-tron (EV), Porsche: Macan, Taycan (EV), Cayenne Coupé; VW: Arteon, Passat, Transporter, T7
• › Industrial revenue roughly on the level of Q3 FY21 at c. €65m, organic growth at 1.4%y/y, driven by improvements in all industrial market segments, partially offset by soft business in Health, Recreation & Furniture (HRF)
• › Adj. EBIT margin decreased by 3.3pp to 10.1% in Q3 FY22, as a result of material and energy cost inflation, and delayed customer reimbursements

AMERICAS Q3 FY2022

Revenue (€m) Comments

Adj. EBIT (€m)

• › Light vehicle production (LVP) in Americas in Q3 FY22 at 4.3m units, + 11.9% vs. Q3 FY21
• › Americas' revenue up by €22.2m or 29.4% y/y, currency translation effect at 14.2%, organic growth at 15.2% y/y
• › Automotive Gas Spring revenue up by 6.7% y/y and Automotive Powerise revenue up by 29.6% y/y organically; Automotive Powerise growth was driven by higher production of Powerise units for, e.g., BMW X3, FCA: Jeep Cherokee, Chrysler Pacifica, Jeep Grand Cherokee, Ford: F-150, Expedition, Navigator, Lincoln Aviator, Explorer; GM: Chevrolet Equinox, Cadillac XT4, Hyundai Kia Sorento; Lucid Air (EV); Rivian R1T (EV); Tesla: Model S, 3, X, Y (EVs)
• › Industrial revenue up by 22.1% y/y, organic growth at + 9.3%y/y, driven by strong growth in all industrial market segments
• › Adj. EBIT margin up by 2.4pp to 15.3% in Q3 FY22, as a consequence of revenue growth and better fixed cost absorption

Revenue (€m) Comments

Adj. EBIT (€m)

• › Light vehicle production (LVP) in Asia-Pacific in Q3 FY22 at 10.0m units, - 2.6% vs. Q3 FY21
• › APAC's revenue up by €19.1m or 53.1% to €55.1m in in Q3 FY22, currency translation effect at 11.8%, organic growth at 41.3% y/y
• › Despite lower LVP, the automotive divisions in APAC grew in Q3 and performed better than LVP: organic growth in Automotive Gas Spring 3.3% y/y and in Automotive Powerise 121.4% y/y; Automotive Powerise growth was driven by higher production for, e.g., Ford Everest; Geely Zeekr 001 (EV); GAC Trumpchi: GS4, GS 5, GS8; Human Horizon HiPhi; Hyundai: Genesis G90, Kia EV6 (EV), K8, Niro; Li Xiang One; Tesla: Model 3, Y (EVs); Toyota: Highlander, Sienna, Corolla Cross, Harrier; VW: ID. Roomzz (EV)
• › Industrial revenue up by €0.3m or 6.0% y/y, supported by favorable currency translation impact
• › Adj. EBIT margin strongly improved by 4.7pp to 20.0% in Q3 FY22, corresponding to higher sales, better production capacity utilization, and thus, better fixed-cost absorption

REVENUE BY BUSINESS UNIT

Q3 FY2022

17

Q3 FY2022

Distributors, Independent Aftermarket, E-commerce (DIAMEC) Mobility (M) Healthcare, Recreation & Furniture (HRF)

Energy, Construction, Industrial Machinery & Automation (ECIMA)

› Industrial revenue at €105.6m, up by 6.6% or €6.5m y/y

• › The growth in industrial business was primarily driven by market segments Energy, Construction, Industrial Machinery & Automation (ECIMA), Distributors, Independent Aftermarket, Ecommerce (DIAMEC) and Mobility, partly offset by soft business development in Healthcare, Recreation & Furniture (HRF)
• › As a result, the revenue share of ECIMA has increased from 17% of total industrial revenue in Q3 FY21 to 19% in Q3 FY22, and the revenue share of HRF has decreased from 18% to 15%, respectively

OUTLOOK

Guidance			Comments
	FY2021 Actual	FY2022 Guidance
Revenue	€937.7m	c. €1,070m
Adj. EBIT margin	14.4%	c. 14%

• › Global light vehicle production (LVP) in FY2022 (Oct 2021 Sept 2022) expected to be slightly, 0.5%, above the prior-year level: 80.0m in FY22 vs. 79.6m in FY21. (Source: IHS Markit, July 2022)
• › Stabilus has further specified its FY2022 outlook by raising the revenue forecast to c. €1,070m with an adj. EBIT margin of c. 14% which corresponds to around €150m adj. EBIT. (The previous outlook, released at the beginning of the FY2022, in November 2021, projected €940m-€990m revenue with 14%-15% adj. EBIT margin, corresponding to around €140m adj. EBIT at midpoint.)
• › 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 an adj. EBIT margin of 15%.

APPENDIX

REVENUE AND ADJUSTED EBIT MARGIN BY QUARTER

REVENUE OVERVIEW THREE MONTHS ENDED JUNE 30, 2022

Revenue (€m)

	Q3 FY2021 Actual	Q3 FY2022 Actual	Change	% change	Acquisition effect	Currency effect	Organic growth
Automotive Gas Spring	30.5	29.7	(0.8)	(2.6)%	-	0.0%	(2.6)%
Automotive Powerise	21.6	23.7	2.1	9.7%	-	(0.5)%	10.2%
Industrial	65.2	65.0	(0.2)	(0.3)%	-	(1.7)%	1.4%
EMEA	117.3	118.4	1.1	0.9%	-	(1.0)%	1.9%
Automotive Gas Spring	21.1	25.5	4.4	20.9%	-	14.2%	6.7%
Automotive Powerise	25.3	36.8	11.5	45.5%	-	15.9%	29.6%
Industrial	28.9	35.3	6.4	22.1%	-	12.8%	9.3%
AMERICAS	75.4	97.6	22.2	29.4%	-	14.2%	15.2%
Automotive Gas Spring	19.4	21.7	2.3	11.9%	-	8.6%	3.3%
Automotive Powerise	11.7	28.1	16.4	140.2%	-	18.8%	121.4%
Industrial	5.0	5.3	0.3	6.0%	-	7.7%	(1.7)%
APAC	36.0	55.1	19.1	53.1%	-	11.8%	41.3%
Total Automotive Gas Spring (AGS)	70.9	76.9	6.0	8.5%	-	6.6%	1.9%
Total Automotive Powerise (APR)	58.6	88.6	30.0	51.2%	-	10.4%	40.8%
Total Industrial (IND)	99.1	105.6	6.5	6.6%	-	3.0%	3.6%
Total	228.7	271.1	42.4	18.5%	-	6.0%	12.5%

REVENUE OVERVIEW NINE MONTHS ENDED JUNE 30, 2022

Revenue (€m)

	9M FY2021 Actual	9M FY2022 Actual	Change	% change	Acquisition effect	Currency effect	Organic growth
Automotive Gas Spring	98.1	86.6	(11.5)	(11.7)%	-	0.0%	(11.7)%
Automotive Powerise	73.2	69.4	(3.8)	(5.2)%	-	(1.1)%	(4.1)%
Industrial	186.9	192.7	5.8	3.1%	-	(1.6)%	4.7%
EMEA	358.2	348.7	(9.5)	(2.7)%	-	(1.0)%	(1.7)%
Automotive Gas Spring	70.0	74.5	4.5	6.4%	-	7.9%	(1.5)%
Automotive Powerise	93.4	101.9	8.5	9.1%	-	7.6%	1.5%
Industrial	80.7	93.7	13.0	16.1%	-	8.2%	7.9%
AMERICAS	244.2	270.1	25.9	10.6%	-	7.9%	2.7%
Automotive Gas Spring	61.9	74.3	12.4	20.0%	-	8.2%	11.8%
Automotive Powerise	29.9	85.8	55.9	187.0%	-	20.9%	166.1%
Industrial	14.0	17.1	3.1	22.1%	-	7.8%	14.3%
APAC	105.7	177.2	71.5	67.6%	-	11.7%	55.9%
Total Automotive Gas Spring (AGS)	230.0	235.4	5.4	2.3%	-	4.6%	(2.3)%
Total Automotive Powerise (APR)	196.5	257.1	60.6	30.8%	-	6.4%	24.4%
Total Industrial (IND)	281.6	303.5	21.9	7.8%	-	1.7%	6.1%
Total	708.1	796.0	87.9	12.4%	-	4.0%	8.4%

P&L OVERVIEW

THREE MONTHS ENDED JUNE 30, 2022

P&L (€m)

	Q3 FY2021 Actual	Q3 FY2022 Actual	Change	% change
Revenue	228.7	271.1	42.4	18.5%
Cost of sales	(161.9)	(194.6)	(32.7)	20.2%
Gross Profit	66.8	76.5	9.7	14.5%
% margin	29.2%	28.2%
R&D expenses	(10.7)	(10.2)	0.5	(4.7)%
Selling expenses	(20.1)	(22.1)	(2.0)	10.0%
Administrative expenses	(9.6)	(10.9)	(1.3)	13.5%
Other income/expenses	0.9	1.1	0.2	22.2%
EBIT	27.4	34.4	7.0	25.5%
% margin	12.0%	12.7%
Finance income/costs	(4.4)	0.5	4.9	<(100.0)%
EBT	23.1	34.9	11.8	51.1%
% margin	10.1%	12.9%
Income tax	(7.1)	(10.6)	(3.5)	49.3%
Profit	15.9	24.3	8.4	52.8%
% margin	7.0%	9.0%
EPS in €	0.64	0.97	0.33	51.6%

Comments

• › Gross profit margin 1pp lower y/y, as a consequence of material and energy cost inflation, and a time lag of offsetting measures
• › Other income/expenses in Q3 FY2022 include €0.2m income from the equity-accounted investment in Cultraro Automazione Engineering
• › Change in net finance income/costs of €4.9m mainly due to €5.6m net fx gain in Q3 FY22 (vs. €2.1m net fx loss in Q3 FY21)
• › Income tax expense up by €3.5m as a result of higher EBT in Q3 FY22

P&L OVERVIEW

NINE MONTHS ENDED JUNE 30, 2022

P&L (€m)

	9M FY2021 Actual	9M FY2022 Actual	Change	% change
Revenue	708.1	796.0	87.9	12.4%
Cost of sales	(496.5)	(574.2)	(77.7)	15.6%
Gross Profit	211.6	221.8	10.2	4.8%
% margin	29.9%	27.9%
R&D expenses	(31.6)	(34.9)	(3.3)	10.4%
Selling expenses	(61.2)	(63.3)	(2.1)	3.4%
Administrative expenses	(30.5)	(31.1)	(0.6)	2.0%
Other income/expenses	2.5	3.5	1.0	40.0%
EBIT	90.8	96.1	5.3	5.8%
% margin	12.8%	12.1%
Finance income/costs	(11.5)	(0.5)	11.0	(95.7)%
EBT	79.3	95.6	16.3	20.6%
% margin	11.2%	12.0%
Income tax	(23.1)	(27.1)	(4.0)	17.3%
Profit	56.2	68.5	12.3	21.9%
% margin	7.9%	8.6%
EPS in €	2.27	2.74	0.47	20.7%

Comments

• › Gross profit margin 2pp lower y/y, as a consequence of material price inflation and the time lag of offsetting measures
• › R&D expenses up by €3.3m or 10.4% y/y, reflecting group's increased focus on innovation (cf. Stabilus long-term strategy); capitalized R&D cost at €12.1m in 9M FY22 (vs. €12.7m in 9M FY21)
• › Other income/expenses in 9M FY2022 include €0.1m income from the equity-accounted investment in Cultraro Automazione Engineering
• › Net finance costs down by €11.0m primarily due to the €7.9m net fx gain in 9M FY22 (vs. €3.0m net fx loss in 9M FY21)

EBIT ADJUSTMENTS

THREE AND NINE MONTHS ENDED JUNE 30, 2022

Adjusted EBIT (€m)

	Q3 FY2021 Actual	Q3 FY2022 Actual	Change	% change
EBIT	27.4	34.4	7.0	25.5%
PPA adj. - D&A (2010 PPA)	1.2	1.2	-	0.0%
PPA adj. - D&A (2016 PPA)	2.0	2.1	0.1	5.0%
PPA adj. - D&A (2019 PPA)	0.2	0.2	-	0.0%
Total adjustments	3.5	3.5	-	0.0%
Adjusted EBIT	30.9	37.9	7.0	22.7%
% margin	13.5%	14.0%

	9M FY2021 Actual	9M FY2022 Actual	Change	% change
EBIT	90.8	96.1	5.3	5.8%
PPA adj. - D&A (2010 PPA)	3.5	3.5	-	0.0%
PPA adj. - D&A (2016 PPA)	6.1	6.3	0.2	3.3%
PPA adj. - D&A (2019 PPA)	0.7	0.6	(0.1)	(14.3)%
Total adjustments	10.3	10.4	0.1	1.0%
Adjusted EBIT	101.1	106.5	5.4	5.3%
% margin	14.3%	13.4%

Comments

› PPA adjustments comprise depreciation and amortization of step-ups and intangible assets acquired during 2010, 2016 and 2019 acquisitions

BALANCE SHEET OVERVIEW

JUNE 30, 2022

Balance sheet (€m)					Comments
	Sept 2021 Actual	June 2022 Actual	Change	% change
Property, plant and equipm.	223.1	226.6	3.5	1.6%
Goodwill	208.1	213.0	4.9	2.4%
Other intangible assets	222.6	216.4	(6.2)	(2.8)%
Other investments	-	23.3	23.3	n/a
Inventories	136.9	164.7	27.8	20.3%
Trade receivables	136.7	170.7	34.0	24.9%
Other assets	46.0	50.5	4.5	9.8%
Cash	193.2	135.0	(58.2)	(30.1)%
Total assets	1,166.6	1,200.2	33.6	2.9%
Equity incl. minorities	544.3	616.3	72.0	13.2%
Debt (incl. accrued interest)	294.8	254.1	(40.7)	(13.8)%
Pension plans	54.7	42.8	(11.9)	(21.8)%
Deferred tax liabilities	47.7	52.3	4.6	9.6%
Trade payables	90.4	98.7	8.3	9.2%
Other liabilities	134.7	136.0	1.3	1.0%
Total equity and liabilities	1,166.6	1,200.2	33.6	2.9%
Net leverage ratio	0.6x	0.6x

	Comments
›	Other investments comprise Company's interest in Synapticon (12% of total shares at the time of acquisition) and Cultraro (32% of total shares) which were acquired recently
›	Inventories up by €27.8m primarily due to higher stock of raw materials and supplies (+ €13.6m y/y), merchandise (+ €10.0m y/y), work in progress (+ €3.7m) and finished goods (+ €0.6m) – larger buffers as mitigation of supply chain risks and short-notice customer call-off changes
›	Changes in cash and debt reflect issuance of €55m promissory note in Q2 FY22 and redemption of senior facilities by €95m in Q3 FY22 (refinancing of senior loans); the new €450m facilities agreement, signed in June 2022, comprises a €100m syndicated term loan facility and a €350m syndicated revolving credit facility (unutilized as of June 2022), with variable interest rates between 50bp and 150bp above Euribor, depending on the Company's leverage ratio, and a term of 5 years (with an extension option by 2 additional years)

› Pension liabilities down by €11.9m due to higher discount rate (2.86% as of end June 2022 vs. 1.31% as of end Sept 2021)

CASH FLOW OVERVIEW THREE MONTHS ENDED JUNE 30, 2022

Cash Flow Statement (€m)

	Q3 FY2021 Actual	Q3 FY2022 Actual	Change	% change
Cash flow from operating activities	39.9	39.1	(0.8)	(2.0)%
Cash flow from investing activities	(9.6)	(12.3)	(2.7)	28.1%
Cash flow from financing activities	(7.1)	(98.3)	(91.2)	>100.0%
Net increase / (decrease) in cash	23.3	(71.4)	(94.7)	<(100.0)%
Effect of movements in exchange rates	-	2.6	2.6	n/a
Cash as of beginning of the period	215.2	203.8	(11.4)	(5.3)%
Cash as of end of the period	238.4	135.0	(103.4)	(43.4)%

Adj. FCF (€m)

	Q3 FY2021 Actual	Q3 FY2022 Actual	Change	% change
Cash flow from operating activities	39.9	39.1	(0.8)	(2.0)%
Cash flow from investing activities	(9.6)	(12.3)	(2.7)	28.1%
Free cash flow	30.3	26.8	(3.5)	(11.6)%
Adjustments	-	-	-	n/a
Adj. FCF	30.3	26.8	(3.5)	(11.6)%

Comments

• › Cash inflow from operating activities roughly on the prior year's level: €39.1m in Q3 FY22 vs. €39.9m in Q3 FY21
• › Cash outflow for investing activities up by €2.7m y/y mainly due to higher capex; capex in Q3 FY22 at €12.4m (vs. €9.5m in Q3 FY21), + 30.5% y/y
• › Cash outflow for financing activities up by €91.2m y/y primarily due to the redemption of the term loan facility by €95m in Q3 FY22
• › As a consequence of steady cash inflow from operating activities and only slightly higher cash outflow for investing activities (capex), adj. FCF was stable y/y: €26.8m in Q3 FY22 vs. €30.8m in Q3 FY21

CASH FLOW OVERVIEW NINE MONTHS ENDED JUNE 30, 2022

Cash Flow Statement (€m)

	9M FY2021 Actual	9M FY2022 Actual	Change	% change
Cash flow from operating activities	109.8	75.1	(34.7)	(31.6)%
Cash flow from investing activities	(28.8)	(53.9)	(25.1)	87.2%
Cash flow from financing activities	(6.4)	(84.5)	(78.1)	>100.0%
Net increase / (decrease) in cash	74.6	(63.3)	(137.9)	<(100.0)%
Effect of movements in exchange rates	1.4	5.1	3.7	>100.0%
Cash as of beginning of the period	162.4	193.2	30.8	19.0%
Cash as of end of the period	238.4	135.0	(103.4)	(43.4)%

Adj. FCF (€m)

	9M FY2021 Actual	9M FY2022 Actual	Change	% change
Cash flow from operating activities	109.8	75.1	(34.7)	(31.6)%
Cash flow from investing activities	(28.8)	(53.9)	(25.1)	87.2%
Free cash flow	81.0	21.2	(59.8)	(73.8)%
Adjustments	-	23.2	23.2	n/a
Adj. FCF	81.0	44.4	(36.6)	(45.2)%

Comments

• › Cash inflow from operating activities down by €34.7m essentially due to higher net working capital
• › Cash outflow for investing activities up by €25.1m y/y mainly due to the €23.2m payment for the acquisition of shares in Synapticon and Cultraro in H1 FY22 (PY: €0m): €17.2m for Cultraro shares and €6.0m for Synapticon shares; capex in 9M FY22 at €31.0m (vs. €29.4m in 9M FY21), + 5.4% y/y
• › Cash outflow for financing activities up by €78.1m y/y primarily due to lower funds from issued promissory notes by €40m (€55m note issued in 9M FY22 vs. €95m note in 9M FY21), higher redemption of credit facilities by around €20m and higher dividend payment by €18.5m
• › As a result of lower cash inflow from operating activities and higher cash outflow for investing activities, the adj. FCF (i.e., FCF before acquisitions) amounted to €44.4m in 9M FY22 vs. €81.0m in 9M FY21; €23.2m adjustment relates to afore-mentioned payment for acquisition of shares in Synapticon and Cultraro

CURRENCY EXCHANGE RATES NINE MONTHS ENDED JUNE 30, 2022

Closing and average currency exchange rates

1 EURO in	ISO code	Closing rate June 2021	Closing rate June 2022	Average rate 9M FY2021	Average rate 9M FY2022	Average rate % change
Australian dollar	AUD	1.5853	1.5099	1.5858	1.5368	(3.1)%
Argentine peso	ARS	113.7985	130.5782	105.0484	119.9410	14.2%
Brazilian real	BRL	5.9050	5.4229	6.4739	5.8328	(9.9)%
Chinese yuan (renminbi)	CNY	7.6742	6.9624	7.8318	7.1598	(8.6)%
South Korean won	KRW	1,341.4100	1,351.6000	1,342.6003	1,349.8231	0.5%
Mexican peso	MXN	23.5784	20.9641	24.3814	22.6896	(6.9)%
Romanian leu	RON	4.9280	4.9464	4.8915	4.9467	1.1%
Turkish lira	TRY	10.3210	17.3220	9.4755	15.0799	59.1%
United States dollar	USD	1.1884	1.0387	1.2014	1.1106	(7.6)%

MOTION CONTROL

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