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Stabilus SE

Quarterly Report Feb 13, 2017

6214_10-q_2017-02-13_86a42290-8e02-4e06-997d-7b9d7a8649b4.pdf

Quarterly Report

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INTERIM REPORT Q1 FY2017

KEY FIGURES

Three months ended Dec 31, IN € MILLIONS 2016 2015 CHANGE % CHANGE Revenue 210.7 167.3 43.4 25.9% EBIT 24.1 17.5 6.6 37.7% Adjusted EBIT 29.4 20.7 8.7 42.0% Profit for the period 29.8 13.5 16.3 >100.0% Capital expenditure (9.5) (13.5) 4.0 (29.6)% Free cash flow (FCF) 6.8 (4.6) 11.4 <(100.0)% EBIT as % of revenue 11.4% 10.5% Adjusted EBIT as % of revenue 14.0% 12.4% Profit in % of revenue 14.1% 8.1% Capital expenditure as % of revenue 4.5% 8.1% FCF in % of revenue 3.2% (2.7)%

T _ 001

REVENUE BY MARKETS IN Q1 FY2017 REVENUE BY REGION IN Q1 FY2017 (LOCATION OF STABILUS COMPANY)

CONTENT

02 INTERIM GROUP

MANAGEMENT REPORT

  • Results of operations
  • Development of operating segments
  • Financial position
  • Liquidity
  • Risks and opportunities
  • Subsequent events
  • Outlook

11 CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

  • C o n s o l i d a t e d s t a t e m e n t o f comprehensive income
  • C o n s o l i d a t e d s t a t e m e n t o f financial position
  • Consolidated statement of changes in equity
  • C o n s o l i d a t e d s t a t e m e n t o f cash flows
  • N o t e s t o c o n d e n s e d i n t e r i m consolidated financial statements

1 General information

  • 2 Revenue
  • 3 Finance income
  • 4 Finance costs
  • 5 Earnings per share

  • 6 Property, plant and equipment

  • 7 Other intangible assets
  • 8 Other financial assets
  • 9 Other assets
  • 10 Inventories
  • 11 Equity
  • 12 Financial liabilities
  • 13 Other financial liabilities
  • 14 Provisions
  • 15 Pension plans and similar obligations
  • 16 Other liabilities
  • 17 Contingent liabilities and other financial commitments
  • 18 Financial instruments
  • 19 Risk reporting
  • 20 Notes to the consolidated statement of cash flows
  • 21 Segment reporting
  • 22 Related party relationships
  • 23 Subsequent events
  • Responsibility statement

ADDITIONAL INFORMATION

  • Financial calendar
  • Disclaimer

INFORMATION RESOURCES

INTERIM GROUP MANAGEMENT REPORT

for the three months ended December 31, 2016

RESULTS OF OPERATIONS

The table below sets out Stabilus Group's consolidated income statement for the first quarter of fiscal 2017 in comparison to the first quarter of fiscal 2016:

Income statement T _ 002

Three months ended Dec 31, IN € MILLIONS 2016 2015 Change % change Revenue 210.7 167.3 43.4 25.9% Cost of sales (150.8) (126.9) (23.9) 18.8% Gross profit 59.9 40.4 19.5 48.3% Research and development expenses (7.9) (5.8) (2.1) 36.2% Selling expenses (19.9) (11.2) (8.7) 77.7% Administrative expenses (9.0) (6.6) (2.4) 36.4% Other income 3.9 2.4 1.5 62.5% Other expenses (2.8) (1.6) (1.2) 75.0% Profit from operating activities (EBIT) 24.1 17.5 6.6 37.7% Finance income 20.3 4.1 16.2 >100.0% Finance costs (2.8) (1.8) (1.0) 55.6% Profit / (loss) before income tax 41.6 19.8 21.8 >100.0% Income tax income / (expense) (11.8) (6.3) (5.5) 87.3% Profit / (loss) for the period 29.8 13.5 16.3 >100.0%

Revenue

Group's total revenue developed as follows:

Revenue by region (location of Stabilus company) T _ 003

Revenue 210.7 167.3 43.4 25.9%
Asia / Pacific and RoW 26.8 19.6 7.2 36.7%
NAFTA 81.6 67.3 14.3 21.2%
Europe 102.2 80.5 21.7 27.0%
IN € MILLIONS 2016 2015 Change % change
Three months ended Dec 31,

Revenue by markets T _ 004

Three months ended Dec 31,
IN € MILLIONS 2016 2015 Change % change
Automotive Gas Spring 83.2 78.1 5.1 6.5%
Automotive Powerise 53.4 42.5 10.9 25.6%
Automotive business 136.5 120.6 15.9 13.2%
Industrial / Capital Goods 45.9 39.7 6.2 15.6%
Vibration & Velocity Control 21.4 21.4 n / a
Commercial Furniture 6.8 7.0 (0.2) (2.9)%
Industrial business 74.1 46.7 27.4 58.7%
Revenue 210.7 167.3 43.4 25.9%

In the first quarter of fiscal 2017, revenue of our European entities increased by 27.0% and revenue generated by our US and Mexican entities by 21.2%. Revenue for Europe and NAFTA continues to benefit from the strong growth in the Powerise business. The newly acquired entities Hahn Gasfedern, ACE as well as Fabreeka /Tech Products contributed €16.7 million to Europe's revenue and €8.7 million to NAFTA's revenue in the first quarter of fiscal 2017. Approximately €1.1 million of the revenue increase in NAFTA was due to the stronger US dollar, i.e. due to the currency translation of NAFTA's revenue from US dollar to euro (average rate per €1: \$1.08 in Q1 FY2017 versus \$1.10 in Q1 FY2016). The revenue of Stabilus plants located in Asia / Pacific and RoW region increased by 36.7% from €19.6 million in first quarter of fiscal 2016 to €26.8 million in the first quarter of fiscal 2017, essentially due to new customer wins and increased production capacity in China. The newly acquired entities contributed €1.2 million to the revenue increase in Asia / Pacific and RoW.

Revenue in the Automotive business increased by €15.9 million or 13.2% to €136.5 million (Q1 FY2016: €120.6 million). This is particularly due to our Powerise business. The increase in the Powerise business by 25.6% is mainly the result of new OEM platform wins and the subsequent launch of new Powerise programs for a number of key vehicle OEMs. In addition, the share of end customers (buyers of new vehicles) opting for this extra equipment continues to rise as well.

Revenue in the Industrial business increased by €27.4 million or 58.7% to €74.1 million (Q1 FY2016: €46.7 million) in the three months ended December 31, 2016. This is especially due to the acquisition of SKF entities in June 2016. ACE, Fabreeka and Tech Products form the new business unit Vibration & Velocity Control with €21.4 million revenue in Q1 FY2017 and Hahn Gasfedern is part of the business unit Industrial / Capital Goods and contributes €5.2 million revenue.

STABILUS

Commercial Furniture (former: Swivel Chair) revenue decreased by 2.9% from €7.0 million in the first quarter of fiscal 2016 to €6.8 million in the first quarter of fiscal 2017.

Cost of sales and overhead expenses

COST OF SALES

Cost of sales increased from €(126.9) million in the three months ended December 31, 2015 by 18.8% to €(150.8) million in the three months ended December 31, 2016. Due to better fixed cost absorption (economies of scale especially from continuing growth of our Powerise business) and lower cost of sales as a percentage of revenue of the newly acquired companies, the cost of sales increased less than the revenue growth of 25.9%. As a result, the cost of sales as a percentage of revenue decreased by 430 basis points to 71.6% (PY: 75.9%) and the gross profit margin improved to 28.4% (PY: 24.1%).

The newly acquired companies Hahn Gasfedern, ACE and Fabreeka / Tech Products are active in the industrial market and offer custommade products with small lot sizes combined with short lead times. This market approach provides stronger gross profit margins to Stabilus. On the other hand this approach drives higher overhead cost and necessitates a different manufacturing approach, relative to the Automotive business.

R&D EXPENSES

R&D expenses (net of R&D cost capitalization) increased by 36.2% from €(5.8) million in the first quarter of fiscal 2016 to €(7.9) million in the first quarter of fiscal 2017. As a percentage of revenue, R&D expenses increased slightly by 20 basis points to 3.7% (PY: 3.5%). The capitalization of R&D expenses decreased from €(3.6) million in the first quarter of fiscal 2016 to €(3.2) million in the first quarter of fiscal 2017.

SELLING EXPENSES

Selling expenses increased from €(11.2) million in the first quarter of fiscal 2016 by 77.7% to €(19.9) million in the first quarter of fiscal 2017, mainly due to Hahn Gasfedern, ACE, Fabreeka and Tech Products which have higher selling expenses to revenue

ratios, compared to old Stabilus companies. As a percentage of revenue, the selling expenses increased to 9.4% (Q1 FY2016: 6.7%).

ADMINISTRATIVE EXPENSES

Administrative expenses increased from €(6.6) million in the first quarter of fiscal 2016 by 36.4% to €(9.0) million in the first quarter of fiscal 2017 essentially due to the acquisition of Hahn Gasfedern, ACE, Fabreeka and Tech Products. As a percentage of revenue, administrative expenses increased by 40 basis points to 4.3% (FY2016: 3.9%).

OTHER INCOME AND EXPENSE

Other income increased from €2.4 million in the first quarter of fiscal 2016 by €1.5 million to €3.9 million in the first quarter of fiscal 2017. This mainly comprises foreign currency translation gains.

Other expenses increased from €(1.6) million in the first quarter of fiscal 2016 by €(1.2) million to €(2.8) million in the first quarter of fiscal 2017. This mainly comprises foreign currency translation losses.

FINANCE INCOME AND COSTS

Finance income increased from €4.1 million in the first quarter of fiscal 2016 to €20.3 million in the first quarter of fiscal 2017 primarily due to higher net foreign exchange gains especially on euro loans of our US entities. Besides intragroup loans €160.0 million of the euro term loan facility is borrowed by a US entity.

Finance costs increased from €(1.8) million in the first quarter of fiscal 2016 to €(2.8) million in the first quarter of fiscal 2017. This increase is mainly due to increased financial liabilities following the acquisition of SKF entities in June 2016.

I N C O M E TA X E X P E N S E

Driven essentially by the higher pre-tax profit of €41.6 million in FY2016 (PY: €19.8 million), the income tax expense increased from €(6.3) million in the first quarter of fiscal 2016 to €(11.8) million in the first quarter of fiscal 2017.

EBIT AND ADJUSTED EBIT

Adjusted EBIT is defined as EBIT, adjusted for non-recurring costs like severance, consulting, and restructuring cost as well as expenses for one-time legal disputes or launch costs for new products. Furthermore, the depreciation / amortization of fair value adjustments from purchase price allocations is adjusted. In this period the definition of adjusted EBIT has been slightly modified as interest cost on pensions recognized in EBIT will not be adjusted out anymore. The presentation of prior periods has been changed accordingly.

The following table shows a reconciliation of earnings before interest and taxes (EBIT) to adjusted EBIT for the first quarter of fiscal 2017 and 2016.

Reconciliation of EBIT to adjusted EBIT T _ 005

Three months ended Dec 31,
IN € MILLIONS 2016 2015 Change % change
Profit from operating activities (EBIT) 24.1 17.5 6.6 37.7%
PPA adjustments – depreciation and amortization 5.3 3.2 2.1 65.6%
Adjusted EBIT 29.4 20.7 8.7 42.0%

The PPA adjustments in the current year reflect the PPAs from June 2016 and April 2010 whereas the prior year figures only reflect the April 2010 PPA.

In the periods presented there have been no adjustments except for PPA adjustments.

DEVELOPMENT OF OPERATING SEGMENTS

Stabilus Group is organized and managed primarily on a regional level. The three reportable operating segments of the Group are Europe, NAFTA, Asia / Pacific and RoW.

The table below sets out the development of our operating segments for the first quarter of fiscal 2017 and 2016.

Operating segments T _ 006

Three months ended Dec 31,
IN € MILLIONS 2016 2015 Change % change
Europe
External revenue1) 102.2 80.5 21.7 27.0%
Intersegment revenue1) 7.1 6.4 0.7 10.9%
Total revenue1) 109.3 86.8 22.5 25.9%
Adjusted EBIT 12.1 10.2 1.9 18.6%
as % of total revenue 11.1% 11.8%
as % of external revenue 11.8% 12.7%
NAFTA
External revenue1) 81.6 67.3 14.3 21.2%
Intersegment revenue1) 5.7 1.3 4.4 >100.0%
Total revenue1) 87.4 68.6 18.8 27.4%
Adjusted EBIT 12.3 7.9 4.4 55.7%
as % of total revenue 14.1% 11.5%
as % of external revenue 15.1% 11.7%
Asia / Pacific and RoW
External revenue1) 26.8 19.6 7.2 36.7%
Intersegment revenue1) 0.1 0.2 (0.1) (50.0)%
Total revenue1) 26.9 19.7 7.2 36.5%
Adjusted EBIT 5.0 2.6 2.4 92.3%
as % of total revenue 18.6% 13.2%
as % of external revenue 18.7% 13.3%

1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").

The external revenue generated by our European companies increased by 27.0% from €80.5 million in the first quarter of fiscal 2016 to €102.2 million in the first quarter of fiscal 2017. A major portion of the revenue growth, i.e. €4.1 million out of the €21.7 million revenue increase was generated by our Powerise business; in addition, a total of €16.7 million was contributed by the newly acquired companies

Hahn Gasfedern, ACE, Fabreeka and Tech Products. In particular, Hahn Gasfedern which is now part of our Industrial/Capital Goods business unit contributed €5.2 million and the entities ACE, Fabreeka, Tech Products which form the new business unit Vibration & Velocity Control contributed €11.5 million to Europe's revenue in the first quarter of fiscal 2017. Adjusted EBIT of the European segment increased by

18.6%. €2.1 million thereof is the contribution of the newly acquired entities. As a result, the adjusted EBIT margin, i.e. adjusted EBIT in percent of external revenue, decreased by 90 basis points to 11.8% in the first quarter of fiscal 2017 (Q1 FY2016: 12.7%).

The external revenue of our companies located in the NAFTA region increased from €67.3 million in the first quarter of fiscal 2016 by 21.2% to €81.6 million in the first quarter of fiscal 2017. An amount of €5.8 million out of the €14.3 million increase was contributed by our Automotive Powerise business and €8.7 million were generated by the acquired entities ACE, Fabreeka, Tech Products. Adjusted EBIT as percentage of external revenue increased in the first quarter of fiscal 2017 by 340 basis points to 15.1% (Q1 FY2016: 11.7%).

In the first quarter of fiscal 2017, the external revenue of our companies in Asia / Pacific and RoW increased by €7.2 million or 36.7%. Powerise contributed €1.0 million to the region`s revenue. Another €1.2 million was generated by our new Vibration & Velocity Control business unit.

The adjusted EBIT in Asia / Pacific and RoW increased by €2.4 million or 92.3%.

FINANCIAL POSITION

Balance sheet T _ 007
IN € MILLIONS Dec 31, 2016 Sept 30, 2016 Change % change
Assets
Total non-current assets 677.3 671.9 5.4 0.8%
Total current assets 263.5 265.6 (2.1) (0.8)%
Total assets 940.8 937.4 3.4 0.4%
Equity and liabilities
Total equity 286.9 262.9 24.0 9.1%
Non-current liabilities 514.5 522.4 (7.9) (1.5)%
Current liabilities 139.4 152.1 (12.7) (8.3)%
Total liabilities 653.9 674.5 (20.6) (3.1)%
Total equity and liabilities 940.8 937.4 3.4 0.4%

TOTAL ASSETS

NON-CURRENT ASSETS

The Group's balance sheet total increased from €937.4 million as of September 30, 2016 by 0.4% to €940.8 million as of December 31, 2016.

Our non-current assets increased from €671.9 million as of September 30, 2016 by 0.8% or €5.4 million to €677.3 million as of December 31, 2016. This increase is due to ongoing capacity expansion projects, but also to foreign exchange rate related value adjustments, e.g. an increase in goodwill of €3.8 million.

CURRENT ASSETS

Current assets decreased from €265.6 million as of September 30, 2016 by 0.8% or €2.1 million to €263.5 million as of December 31, 2016. This is essentially the consequence of a €5.3 million lower cash balance that results from a voluntary early repayment of €10 million of the term loan facility. The effect from the decreased cash balance on current assets was partly offset by an increase in inventories of €3.6 million that reflects our ongoing revenue growth.

EQUITY

The Group's equity increased from €262.9 million as of September 30, 2016 by €24.0 million to €286.9 million as of December 31, 2016. This increase results from the profit of €29.8 million that has been generated in the first quarter of fiscal 2017, which has been partially offset by other comprehensive income of €(5.8) million. Other comprehensive income comprises unrealized actuarial gains on pensions (net of tax) amounting to €2.9 million and unrealized losses from foreign currency translation amounting to €(8.7) million.

NON-CURRENT LIABILITIES

Non-current liabilities decreased from €522.4 million as of September 30, 2016 by €7.9 million to €514.5 million as of December 31, 2016 mainly due to the decrease of the non-current financial liabilities that in turn result from a €10 million voluntary early repayment of the term loan facility. As a consequence, the remaining principal amount of the term loan facility as of December 31, 2016 has been reduced to €395 million. The pension liabilities decreased by €4.1 million mainly due to a higher discount rate while the deferred tax liability increased by €5.9 million mainly due to the recognition of deferred taxes on foreign currency translation gains on intragroup and external loans.

CURRENT LIABILITIES

Current liabilities decreased from €152.1 million as of September 30, 2016 by 8.3% or €12.7 million to €139.4 million as of December 31, 2016. This decrease was essentially driven by a significant reduction of our trade accounts payables by €13.0 million or 16.2%. The other liabilities decreased by €3.9 million which aided in the reduction of the current liabilities, whereas the current tax liabilities and the current provisions increased by €2.5 million and €2.6 million respectively.

LIQUIDITY

Cash flow T _ 008

Three months ended Dec 31,
IN € MILLIONS 2016 2015 Change % change
Cash flow from operating activities 16.3 8.8 7.5 85.2%
Cash flow from investing activities (9.5) (13.4) 3.9 (29.1)%
Cash flow from financing activities (12.5) (1.6) (10.9) >100.0%
Net increase / (decrease) in cash (5.7) (6.2) 0.5 (8.1)%
Effect of movements in exchange rates on cash held 0.4 0.4 0.0%
Cash as of beginning of the period 75.0 39.5 35.5 89.9%
Cash as of end of the period 69.7 33.8 35.9 >100.0%

CASH FLOW FROM OPERATING ACTIVITIES

Cash flow from operating activities increased from €8.8 million in the first quarter of fiscal 2016 by €7.5 million to €16.3 million in the first quarter of fiscal 2017. This increase is mainly due to the strong revenue growth and partly offset by higher net working capital as a consequence of the continuing growth.

CASH FLOW FROM INVESTING ACTIVITIES

Cash outflow for investing activities decreased from €(13.4) million in the first quarter of fiscal 2016 by €3.9 million to €(9.5) million in the first quarter of fiscal 2017 due to higher capital expenditures in the three months ended December 31, 2015.

CASH FLOW FROM FINANCING ACTIVITIES

The cash outflow from financing activities increased from €(1.6) million in the first quarter of fiscal 2016 by €(10.9) million to €(12.5) million in the first quarter of fiscal 2017. This is essentially due to a €10 million voluntary repayment of the term loan facility in December 2016.

FREE CASH FLOW (FCF)

In the past periods the Group used the following definition of free cash flow (FCF): Free cash flow (FCF) comprises IFRS cash flow statement items "cash flow from operating activities", "cash flow from investing activities" and "payments for interest" (net interest payments). Going forward FCF will be defined as the total cash flow from operating and investing activities.

Free cash flow (before interest payments) increased from €(4.6) million in the first quarter of fiscal 2016 by €11.4 million to €6.8 million in the first quarter of fiscal 2017. The table below (T_009) sets out the composition of both FCF definitions.

Free cash flow T _ 009

Three months ended Dec 31,
IN € MILLIONS 2016 2015 Change % change
Cash flow from operating activities 16.3 8.8 7.5 85.2%
Cash flow from investing activities (9.5) (13.4) 3.9 (29.1)%
Free cash flow (before interest payments) 6.8 (4.6) 11.4 <(100.0)%
Payments for interest (2.4) (1.4) (1.0) 71.4%
Free cash flow after interest payments 4.4 (6.0) 10.4 <(100.0)%

RISKS AND OPPORTUNITIES

We refer to the risk-related disclosures in the Group Management Report and in the audited Consolidated Financial Statements as of and for the fiscal year ended September 30, 2016.

OUTLOOK

We confirm our revenue guidance for fiscal 2017 of approximately €865 million from the Annual Report 2016, which corresponds to a revenue growth rate of around 17% and an adjusted EBIT margin in the range of 13% – 14% under the assumptions outlined in the Annual Report 2016.

SUBSEQUENT EVENTS

As of February 10, 2017, there were no further events or developments that could have materially affected the measurement and presentation of Group's assets and liabilities as of December 31, 2016.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

as of and for the three months ended December 31, 2016

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the three months ended December 31, 2016 (unaudited)

Consolidated Statement of Comprehensive Income T_010

Three months ended Dec 31,
IN € THOUSANDS NOTE 2016 2015
Revenue 2 210,682 167,289
Cost of sales (150,760) (126,919)
Gross profit 59,922 40,370
Research and development expenses (7,898) (5,793)
Selling expenses (19,934) (11,242)
Administrative expenses (9,015) (6,563)
Other income 3,868 2,415
Other expenses (2,819) (1,642)
Profit from operating activities 24,122 17,545
Finance income 3 20,340 4,080
Finance costs 4 (2,820) (1,803)
Profit / (loss) before income tax 41,642 19,822
Income tax income / (expense) (11,824) (6,275)
Profit / (loss) for the period 29,817 13,547
thereof attributable to non-controlling interests 8 3
thereof attributable to shareholders of Stabilus 29,809 13,544
Other comprehensive income / (expense)
Foreign currency translation difference 1) 11 (8,732) (1,960)
Unrealized actuarial gains and losses 2) 11 2,923
Other comprehensive income / (expense), net of taxes (5,808) (1,960)
Total comprehensive income / (expense) for the period 24,009 11,587
thereof attributable to non-controlling interests 8 3
thereof attributable to shareholders of Stabilus 24,001 11,584
Earnings per share (in €):
Basic 5 1.21 0.65
Diluted 5 1.21 0.65

1) Item that may be reclassified ('recycled') to profit and loss at a future point in time when specific conditions are met.

2) Item that will not be reclassified to profit and loss.

The accompanying Notes form an integral part of these Consolidated Financial Statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as of December 31, 2016 (unaudited)

Consolidated Statement of Financial Position T _ 011

IN € THOUSANDS NOTE Dec 31, 2016 Sept 30, 2016
Assets
Property, plant and equipment 6 168,671 167,569
Goodwill 201,214 197,457
Other intangible assets 7 294,835 295,815
Other assets 9 3,749 3,267
Deferred tax assets 8,802 7,743
Total non-current assets 677,272 671,851
Inventories 10 78,331 74,681
Trade accounts receivable 97,914 97,600
Current tax assets 686 1,160
Other financial assets 8 4,507 3,160
Other assets 9 12,402 13,923
Cash and cash equivalents 69,695 75,037
Total current assets 263,534 265,561
Total assets 940,806 937,412

Consolidated Statement of Financial Position T _ 011

IN € THOUSANDS NOTE Dec 31, 2016 Sept 30, 2016
Equity and liabilities
Issued capital 247 247
Capital reserves 225,848 225,848
Retained earnings 102,344 72,535
Other reserves 11 (41,640) (35,832)
Equity attributable to shareholders of Stabilus 286,799 262,798
Non-controlling interests 103 94
Total equity 286,901 262,892
Financial liabilities 12 386,393 396,095
Other financial liabilities 13 2,107 2,314
Provisions 14 3,966 3,781
Pension plans and similar obligations 15 54,629 58,738
Deferred tax liabilities 66,530 60,634
Other liabilities 16 879 879
Total non-current liabilities 514,504 522,441
Trade accounts payable 67,382 80,389
Financial liabilities 12 5,000 5,000
Other financial liabilities 13 8,568 9,399
Current tax liabilities 13,426 10,904
Provisions 14 33,454 30,898
Other liabilities 16 11,571 15,489
Total current liabilities 139,400 152,079
Total liabilities 653,904 674,520
Total equity and liabilities 940,806 937,412

The accompanying Notes form an integral part of these Consolidated Financial Statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the three months ended December 31, 2016 (unaudited)

Consolidated Statement of

Changes in Equity T _ 012
IN € THOUSANDS NOTE Issued
capital
Capital
reserves
Retained
earnings
Other
reserves
Equity
attributable to
shareholders
of Stabilus
Non
controlling
interests
Total equity
Balance as of Sept 30, 2015 207 73,091 24,871 (21,484) 76,685 24 76,709
Profit / (loss) for the period 13,544 13,544 3 13,547
Other comprehensive
income / (expense)
11 (1,960) (1,960) (1,960)
Total comprehensive income
for the period
13,544 (1,960) 11,584 3 11,587
Balance as of Dec 31, 2015 207 73,091 38,415 (23,444) 88,269 28 88,297
Balance as of Sept 30, 2016 247 225,848 72,535 (35,832) 262,798 94 262,892
Profit / (loss) for the period 29,809 29,809 8 29,817
Other comprehensive
income / (expense)
11 (5,808) (5,808) (5,808)
Total comprehensive income
for the period
29,809 (5,808) 24,001 8 24,009
Balance as of Dec 31, 2016 247 225,848 102,344 (41,640) 286,799 103 286,901

The accompanying Notes form an integral part of these Consolidated Financial Statements.

CONSOLIDATED STATEMENT OF CASH FLOWS

for the three months ended December 31, 2016 (unaudited)

Consolidated Statement of Cash Flows T _ 013
Three months ended Dec 31,
IN € THOUSANDS NOTE 2016 2015
Profit / (loss) for the period 29,817 13,547
Current income tax expense 8,963 6,492
Deferred income tax expense 2,862 (216)
Net finance result 3 / 4 (17,520) (2,277)
Depreciation and amortization 14,454 10,864
Other non-cash income and expenses (959) (1,160)
Changes in inventories (3,650) (2,611)
Changes in trade accounts receivable (314) (3,435)
Changes in trade accounts payable (13,007) (12,367)
Changes in other assets and liabilities (266) (433)
Changes in provisions 2,677 3,487
Changes in deferred tax assets and liabilities (2,862) 216
Income tax payments 20 (3,869) (3,267)
Cash flow from operating activities 16,327 8,840
Proceeds from disposal of property, plant and equipment 9 71
Purchase of intangible assets 7 (2,858) (3,295)
Purchase of property, plant and equipment 6 (6,663) (10,194)
Cash flow from investing activities (9,512) (13,418)
Payments for redemption of senior facilities (10,000)
Payments for finance leases (136) (136)
Payments for interest 20 (2,409) (1,439)
Cash flow from financing activities (12,545) (1,575)
Net increase / (decrease) in cash and cash equivalents (5,730) (6,153)
Effect of movements in exchange rates on cash held 388 443
Cash and cash equivalents as of beginning of the period 75,037 39,473
Cash and cash equivalents as of end of the period 69,695 33,763

The accompanying Notes form an integral part of these Consolidated Financial Statements.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

as of and for the three months ended December 31, 2016

1 General information

Company information

Stabilus S.A., Luxembourg, hereinafter also referred to as "Stabilus" or the "Company" is a public limited liability company (société anonyme) incorporated in Luxembourg and governed by Luxembourg law. The Company is registered with the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés Luxembourg) under No. B0151589 and its registered office is located at 2, rue Albert Borschette, L-1246 Luxembourg, Grand Duchy of Luxembourg. The Company was founded under the name Servus HoldCo S.à r.l. on February 26, 2010.

The Company's fiscal year is from October 1 to September 30 of the following year (twelve-month period). The consolidated financial statements of Stabilus S.A. include Stabilus and its subsidiaries (hereafter also referred to as "Stabilus Group" or the "Group").

The Stabilus Group is a leading manufacturer of gas springs and dampers, as well as electric tailgate opening and closing equipment. The products are used in a wide range of automotive and industrial applications, as well as in the furniture industry. Typically the products are used to support the lifting and lowering or dampening of movements. As world market leader for gas springs, the Group ships to all key vehicle manufacturers. Various Tier 1 suppliers of the global car industry as well as large technically focused distributors further diversify the Group's customer base.

Basis for preparation

The accompanying Condensed Interim Consolidated Financial Statements present the operations of Stabilus, Luxembourg, and its subsidiaries. The Company has prepared these statements under the going-concern assumption.

The Condensed Interim Consolidated Financial Statements as of and for the three months ended December 31, 2016 have been prepared in accordance with IAS 34 "Interim Financial Reporting"; they comply with the International Financial Reporting Standards (IFRS) as adopted by the European Union. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the financial position and performance of Stabilus Group since the last annual Consolidated Financial Statements as of and for the fiscal year ended September 30, 2016. These Interim Consolidated Financial Statements are condensed and do not include all information for full annual financial statements prepared in accordance with International Financial Reporting Standards and therefore should be read in connection with the Consolidated Financial Statements as of September 30, 2016.

The accounting policies adopted in the preparation of the Condensed Interim Consolidated Financial Statements are consistent with those followed in the preparation of the Group's annual financial statements for the fiscal year ended September 30, 2016.

Presentation

These Condensed Interim Consolidated Financial Statements as of and for the three months ended December 31, 2016 comprise the Consolidated Statement of Comprehensive Income for the three months ended December 31, 2016, the Consolidated Statement of Financial Position as of December 31, 2016, the Consolidated Statement of Changes in Equity for the three months ended December 31, 2016, the Consolidated Statement of Cash Flows for the three months ended December 31, 2016 and explanatory Notes to the Condensed Interim Consolidated Financial Statements. The Condensed Interim Consolidated Financial Statements are prepared in euros (€) rounded to the nearest thousand. Due to rounding, numbers presented may not add up precisely to the totals provided.

The Condensed Interim Consolidated Financial Statements were authorized for issue by the Management Board on February 10, 2017.

2 Revenue

The Group's revenue developed as follows:

Revenue by region (location of Stabilus company) T_014

Revenue 210,682 167,289
Asia / Pacific and Rest of World 26,799 19,555
NAFTA 81,639 67,281
Europe 102,244 80,453
IN € THOUSANDS 2016 2015
Three months ended Dec 31,

Revenue by markets T_015

m
I
Three months ended Dec 31
IN € THOUSANDS 2016 2015
Automotive Gas Spring 83,165 78,143
Automotive Powerise 53,382 42,466
Automotive business 136,547 120,609
Industrial / Capital Goods 45,883 39,706
Vibration & Velocity Control 21,422
Commercial Furniture 6,830 6,974
Industrial business 74,135 46,680
Revenue 210,682 167,289

3 Finance income

Finance income T_016
Three months ended Dec 31,
IN € THOUSANDS 2016 2015
Interest income on loans and financial receivables 55 8
Net foreign exchange gain 20,231 4,023
Other interest income 54 49
Finance income 20,340 4,080

4 Finance costs

Finance costs T_017
Three months ended Dec 31,
IN € THOUSANDS 2016 2015
Interest expenses on financial liabilities (2,754) (1,705)
Interest expenses finance lease (13) (25)
Other interest expenses (53) (73)
Finance costs (2,820) (1,803)

5 Earnings per share

The weighted average number of shares used for the calculation of earnings per share in the three months ended December 31, 2016 and 2015 is set out in the following table.

Weighted average number of shares T _ 018
DATE Number of days Transaction Change Total shares Total shares
(time-weighted)
October 1, 2015 92 20,723,256 20,723,256
December 31, 2015 20,723,256 20,723,256
October 1, 2016 92 24,700,000 24,700,000
December 31, 2016 24,700,000 24,700,000

The earnings per share for the three months ended December 31, 2016 and 2015 were as follows:

Earnings per share T _ 019
Three months ended Dec 31,
2016 2015
Profit / (loss) attributable to shareholders of Stabilus 29,809 13,544
Weighted average number of shares 24,700,000 20,723,256
Earnings per share (in €) 1.21 0.65

Basic and diluted earnings per share are calculated by dividing the profit attributable to the shareholders of the Company by the weighted average number of shares outstanding.

6 Property, plant and equipment

Property, plant and equipment as of December 31, 2016 amounted to €168,671 thousand (Sept 30, 2016: €167,569 thousand). Additions to property, plant and equipment in the first three months of fiscal 2017 amounted to €6,218 thousand (Q1 FY2016: €11,067 thousand).

Disposals occurred only in the ordinary course of business. The net value of disposed property, plant and equipment in the first quarter of fiscal 2017 amounted to €27 thousand (Q1 FY2016: €20 thousand).

The Group did not recognize any impairment losses in the reporting period.

7 Other intangible assets

Other intangible assets as of December 31, 2016 amounted to €294,835 thousand (Sept 30, 2016: €295,815 thousand). Additions to intangible assets in the first three months of fiscal 2017 amounted to €2,858 thousand (Q1 FY2016: €3,295 thousand) and mainly comprised capitalized development cost (less related customer contributions) of €2,521 thousand (Q1 FY2016: €2,918 thousand). Borrowing costs capitalized in the first three months of fiscal 2017 amounted to €45 thousand (Q1 FY2016: €49 thousand).

In the first three months of fiscal 2017, total amortization expenses on intangible assets amounted to €7,801 thousand (Q1 FY2016: €5,110 thousand). The increase is mainly due to the amortization of intangibles from business combinations. Amortization expenses on development costs include impairment losses of €147 thousand (Q1 FY2016: €141 thousand) due to withdrawal of customers from the respective projects.

Significant disposals have not been recognized.

8 Other financial assets

Other financial assets as of December 31, 2016 amounting to €4,507 thousand (Sept 30, 2016: €3,160 thousand) comprised only assets related to the sale of trade accounts receivable program.

9 Other assets

Other assets T _ 020
Dec 31, 2016 Sept 30, 2016
IN € THOUSANDS Current Non-current Total Current Non-current Total
VAT 4,139 4,139 5,698 5,698
Prepayments 2,562 1,191 3,753 2,925 746 3,671
Deferred charges 3,633 3,633 3,178 3,178
Other miscellaneous 2,068 2,558 4,626 2,122 2,521 4,643
Other assets 12,402 3,749 16,151 13,923 3,267 17,190

Non-current prepayments comprise prepayments on property, plant and equipment.

10 Inventories

Inventories T _ 021
IN € THOUSANDS Dec 31, 2016 Sept 30, 2016
Raw materials and supplies 39,956 38,076
Finished products 18,049 17,103
Work in progress 12,761 12,616
Merchandise 7,565 6,886
Inventories 78,331 74,681

11 Equity

The development of the Group's equity is presented in the Statement of Changes in Equity.

Other reserves

Other reserves comprise all foreign currency differences arising from the translation of the financial statements of foreign operations and unrealized actuarial gains and losses. The following table shows the changes in other reserves recognized in equity through other comprehensive income as well as the income tax recognized in equity through other comprehensive income:

Other reserves and other comprehensive income / (expense) T_022

IN € THOUSANDS Unrealized actuarial
gains and losses
Unrealized gains /
(losses)
from foreign
currency translation
Total
Balance as of Sept 30, 2015 (8,717) (12,767) (21,484)
Before tax (7,841) (8,858) (16,699)
Tax (expense) / benefit 2,351 2,351
Other comprehensive income / (expense), net of taxes (5,490) (8,858) (14,348)
Non-controlling interest
Balance as of Sept 30, 2016 (14,207) (21,625) (35,832)
Before tax 4,045 (8,732) (4,687)
Tax (expense) / benefit (1,122) (1,122)
Other comprehensive income / (expense), net of taxes 2,923 (8,732) (5,808)
Non-controlling interest
Balance as of Dec 31, 2016 (11,285) (30,356) (41,640)

1) See also Consolidated Statement of Comprehensive Income above.

12 Financial liabilities

The financial liabilities comprise the following items:

The Group's liability under the term loan facility with an initial principal amount of €455 million was measured at amortized cost taking into consideration transaction costs. Next to the prepayment of €50 million on August 31, 2016, another prepayment of €10 million was made on December 31, 2016 and reduced the outstanding principal amount to €395 million. The current portion of the financial liability reflects the next two semi-annual prepayments of €2.5 million each (payable on March 31, 2017 and September 30, 2017).

Financial liabilities T _ 023

Dec 31, 2016 Sept 30, 2016
IN € THOUSANDS Current Non-current Total Current Non-current Total
Senior facilities 5,000 386,393 391,393 5,000 396,095 401,095
Financial liabilities 5,000 386,393 391,393 5,000 396,095 401,095

As of December 31, 2016, the Group had no liability under the committed €70 million revolving credit facility.

13 Other financial liabilities

Other financial liabilities T _ 024

Dec 31, 2016 Sept 30, 2016
IN € THOUSANDS Current Non-current Total Current Non-current Total
Liabilities to employees 6,308 6,308 6,648 6,648
Social security contribution 1,951 1,951 2,440 2,440
Finance lease obligation 309 2,107 2,416 311 2,314 2,625
Other financial liabilities 8,568 2,107 10,675 9,399 2,314 11,713

The liabilities to employees mainly comprise outstanding salaries and wages. The finance lease obligation relates to leasing contracts for land and buildings for the production facility in Romania.

14 Provisions

Provisions T _ 025

Dec 31, 2016 Sept 30, 2016
IN € THOUSANDS Current Non-current Total Current Non-current Total
Anniversary benefits 86 86 61 61
Early retirement contracts 2,599 2,599 36 2,599 2,635
Employee-related costs 13,715 13,715 11,050 11,050
Environmental protection 340 1,020 1,360 415 990 1,405
Other risks 2,020 2,020 1,521 1,521
Legal and litigation costs 121 121 115 115
Warranties 12,744 12,744 12,227 12,227
Other miscellaneous 4,514 261 4,775 5,534 131 5,665
Provisions 33,454 3,966 37,420 30,898 3,781 34,679

The provision for environmental protection, in particular long-term bioremediation of the former Colmar US site, decreased in the first three months of fiscal 2017 from €1,405 thousand to €1,360 thousand, mainly due to the change of the US dollar exchange rate. This provision is to cover the contractor expense to finish the bioremediation program in the next years.

Provision for warranties increased from €12,227 thousand as of September 30, 2016 to €12,744 thousand as of December 31, 2016 partially due to higher sales as well as the regional mix of these sales to provide for potential warranty cases.

15 Pension plans and similar obligations

The Group's liability for pension plans and similar obligations decreased from €58,738 thousand as of September 30, 2016 by €4,109 thousand to €54,629 thousand as of December 31, 2016. The decrease was mainly due to a higher discount rate (Dec 31, 2016: 1.77% versus Sept 30, 2016: 1.35%).

16 Other liabilities

The following table sets out the breakdown of Group's other current and non-current liabilities:

Other liabilities T _ 026

Dec 31, 2016 Sept 30, 2016
Current Non-current Total Current Non-current Total
1,264 879 2,143 1,353 879 2,232
3,657 3,657 3,329 3,329
3,703 3,703 6,964 6,964
2,730 2,730 3,619 3,619
217 217 224 224
11,571 879 12,450 15,489 879 16,368

The other personnel-related expenses decreased from €6,964 thousand as of September 30, 2016 to €3,703 thousand as of December 31, 2016 due to Christmas bonuses.

17 Contingent liabilities and other financial commitments

Contingent liabilities

Contingent liabilities are uncertainties for which the outcome has not been determined. If the outcome is probable and estimable, the liability is shown in the statement of financial position.

In regards to the potential contingent obligation in the EPA Colmar case, please refer to Note 25 in the Annual Report 2016.

Guarantees

A detailed description of the guarantees the Group has issued can be found in the 2016 Annual Report.

Other financial commitments

The nominal values of the other financial commitments as of December 31, 2016 are as follows:

Other financial commitments T _ 027

IN € THOUSANDS Dec 31, 2016 Sept 30, 2016
Capital commitments for fixed and other intangible assets 5,522 8,611
Obligations under rental and leasing agreements 25,825 23,785
Total 31,347 32,396

18 Financial instruments

The following table shows the carrying amounts and fair values of the Group's financial instruments. The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Financial instruments T _ 028 Dec 31, 2016 Sept 30, 2016 IN € THOUSANDS Measurement category acc. to IAS 39 Carrying amount Fair value Carrying amount Fair value Trade accounts receivables LaR 97,914 97,914 97,600 97,600 Cash LaR 69,695 69,695 75,037 75,037 Other financial assets LaR 4,507 4,507 3,160 3,160 Total financial assets 172,116 172,116 175,797 175,797 Financial liabilities FLAC 391,393 384,795 401,095 376,191 Trade accounts payable FLAC 67,382 67,382 80,389 80,389 Finance lease liabilities – 2,415 3,955 2,625 3,557 Total financial liabilities 461,190 456,132 484,109 460,137 Aggregated according to categories in IAS 39: Loans and receivables (LaR) 172,116 172,116 175,797 175,797 Financial liabilities measured at amortized cost (FLAC) 458,775 452,177 481,484 456,580

The following table provides an overview of the classification of financial instruments presented above in the fair value hierarchy, except for financial instruments with fair values corresponding to the carrying amounts (i.e. trade accounts receivable and payable, cash, other financial assets and finance lease liabilities).

Financial instruments T _ 029
Dec 31, 2016 Sept 30, 2016
IN € THOUSANDS Total Level 11) Level 22) Level 33) Total Level 11) Level 22) Level 33)
Financial liabilities
Senior facilities 384,795 384,795 376,191 376,191
Finance lease liabilities 3,955 3,955 3,557 3,557

1) Fair value measurement based on quoted prices (unadjusted) in active markets for these or identical instruments.

2) Fair value measurement based on inputs that are observable on active markets either directly (i.e. as prices) or indirectly (i.e. derived from prices).

3) Fair value measurement based on inputs that are not observable market data.

The fair value is the price that would be received to sell an asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values.

The determination of the fair value of the senior facilities is based on the discounted cash flow model where the projected cash flows are discounted to the valuation date using independently sourced market data.

The valuation technique used for the determination of the obligations under finance leases is the discounted cash flow method. The valuation model considers the present value of the expected payments, discounted using a risk-adjusted discount rate depending on the maturity of the payment. The expected payments are determined by considering contractual redemption payments and interest payments with the currently agreed interest rate. Significant unobservable inputs are the risk-adjusted discount rates, which range from 7.5% to 10.1%, and the forecast interest payments. Therefore, the fair value would change if the risk-adjusted discount rate or the interest rate changed.

19 Risk reporting

All aspects of the Group's financial risk management objectives and policies are consistent with those disclosed in the Consolidated Financial Statements as of and for the fiscal year ended September 30, 2016.

20 Notes to the consolidated statement of cash flows

The statement of cash flows is prepared in compliance with IAS 7. The statement of cash flows of the Stabilus Group shows the development of the cash flows from operating, investing and financing activities. Inflows and outflows from operating activities are presented in accordance with the indirect method and those from investing and financing activities by the direct method.

The cash funds reported in the statement of cash flows comprise all liquid funds, cash balances and cash at banks reported in the statement of financial position.

Interest payments in the first three months of fiscal 2017 amounting to €(2,409) thousand (Q1 FY2016: €(1,439) thousand) are taken into account in the cash outflows from financing activities. Income tax payments in the same period of €(3,869) thousand (Q1 FY2016: €(3,267) thousand) are reflected in operating activities.

21 Segment reporting

The Stabilus Group is organized and managed primarily on a regional level. The three reportable operating segments of the Group are Europe, NAFTA and Asia / Pacific including RoW. The product portfolio is largely similar in these three regional segments.

The Group measures the performance of its operating segments through a measure of segment profit or loss (key performance indicator) which is referred to as "adjusted EBIT". Adjusted EBIT is defined as EBIT, as adjusted by management primarily in relation to non-recurring costs like severance, consulting, restructuring cost as well as expenses for one-time legal disputes or launch costs for new products. Furthermore, the depreciation / amortization of fair value adjustments from purchase price allocations is adjusted.

Segment information for the three months ended December 31, 2016 and 2015 is as follows:

Segment reporting T _ 030

Europe
Three months ended Dec 31,
NAFTA
Three months ended Dec 31,
Asia / Pacific and RoW
Three months ended Dec 31,
IN € THOUSANDS 2016 2015 2016 2015 2016 2015
External revenue1) 102,244 80,454 81,639 67,281 26,799 19,555
Intersegment revenue1) 7,100 6,372 5,739 1,321 107 158
Total revenue1) 109,344 86,826 87,378 68,602 26,906 19,713
Depreciation and amortization
(incl. impairment losses)
(7,073) (5,061) (3,002) (1,651) (1,209) (982)
EBIT 10,904 10,162 11,452 7,935 4,936 2,618
Adjusted EBIT 12,141 10,172 12,305 7,935 4,977 2,618
Total segments Other / Consolidation Stabilus Group
Three months ended Dec 31, Three months ended Dec 31, Three months ended Dec 31,
IN € THOUSANDS 2016 2015 2016 2015 2016 2015
External revenue1) 210,682 167,290 210,682 167,289
Intersegment revenue1) 12,946 7,851 (12,946) (7,851)
Total revenue1) 223,628 175,141 (12,946) (7,851) 210,682 167,289
Depreciation and amortization
(incl. impairment losses)
(11,284) (7,694) (3,170) (3,170) (14,454) (10,863)
EBIT 27,292 20,715 (3,170) (3,170) 24,122 17,545
Adjusted EBIT 29,423 20,725 29,423 20,725

1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").

The column "Other / Consolidation" includes the effects from the purchase price allocation for the April 2010 business combination. The effects from the purchase price allocation for the June 2016 business combination are included in the regions.

The following table sets out the reconciliation of the total segments' profit (adjusted EBIT) to profit before income tax.

Reconciliation of the total segments' profit to profit / (loss) before income tax T _ 031

Three months ended Dec 31, IN € THOUSANDS 2016 2015 Total segments' profit (adjusted EBIT) 29,423 20,725 Other / consolidation – – Group adjusted EBIT 29,423 20,725 Adjustments to EBIT (5,300) (3,180) Profit from operating activities (EBIT) 24,122 17,545 Finance income 20,340 4,080 Finance costs (2,820) (1,803) Profit / (loss) before income tax 41,642 19,822

The adjustments to EBIT in the periods presented only include the depreciation and amortization of the Group`s assets to fair value resulting from the April 2010 and June 2016 purchase price allocations (PPA). In this period the definition of adjusted EBIT has been slightly modified as interest cost on pensions recognized in EBIT will not be adjusted out anymore. The presentation of prior periods has been changed accordingly.

22 Related party relationships

In accordance with IAS 24, persons or entities that control or are controlled by the Stabilus Group shall be disclosed, unless they are included in the scope of consolidation as a consolidated entity.

The disclosure obligation under IAS 24 furthermore extends to transactions with persons who exercise a significant influence on the financial and business policies of the Stabilus Group, including close family members or interposed entrepreneurs. A significant influence on the financial and business policies of the Stabilus Group can hereby be based on a shareholding in Stabilus of 20% or more, a seat on the Stabilus Management Board or another key position.

Related parties of the Stabilus Group in accordance with IAS 24 primarily comprise the Stabilus Group management which holds an investment in the Company.

23 Subsequent events

As of February 10, 2017, there were no further events or developments that could have materially affected the measurement and presentation of Group's assets and liabilities as of December 31, 2016.

RESPONSIBILITY STATEMENT

To the best of our knowledge, and in accordance with the applicable accounting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the corporation, and the interim management report of the corporation includes a fair review of the development and performance of the business and the position of the corporation, together with a description of the principal opportunities and risks associated with the expected development of the corporation for the remaining months of the fiscal year.

Luxembourg, February 10, 2017

Dietmar Siemssen Mark Wilhelms Andreas Schröder Andreas Sievers

Management Board

STABILUS

ADDITIONAL INFORMATION

FINANCIAL CALENDAR

Financial calendar T _ 032
DATE 1)2) PUBLICATION / EVENT
February 13, 2017 Publication of the first-quarter results for fiscal year 2017 (Interim Report Q1 FY17)
February 15, 2017 Annual General Meeting
May 15, 2017 Publication of the second-quarter results for fiscal year 2017 (Interim Report Q2 FY17)
August 11, 2017 Publication of the third-quarter results for fiscal year 2017 (Interim Report Q3 FY17)
November 27, 2017 Publication of preliminary financial results for FY2017
December 15, 2017 Publication of full year results for fiscal year 2017 (Annual Report 2017)

1) We cannot rule out changes of dates. We recommend checking them on our website in the Investor Relations/ Financial Calendar section (www.ir.stabilus.com). 2) Please note that our fiscal year (FY) comprises a twelve-month period from October 1 until September 30 of the following calendar year, e.g. the fiscal year 2017 comprises a year ended September 30, 2017.

DISCLAIMER

Forward-looking statements

This interim report contains forward-looking statements that relate to the current plans, objectives, forecasts and estimates of the management of Stabilus S.A. These statements take into account only information that was available up to and including the date that this interim report was prepared. The management of Stabilus S.A. makes no guarantee that these forward-looking statements will prove to be right. The future development of Stabilus S.A. and its subsidiaries and the results that are actually achieved are subject to a variety of risks and uncertainties which could cause actual events or results to differ significantly from those reflected in the forward-looking statements. Many of these factors are beyond the control of Stabilus S.A. and its subsidiaries and therefore cannot be precisely predicted. Such factors include, but are not limited to, changes in economic conditions and the competitive situation, changes in the law, interest rate or exchange rate fluctuations, legal disputes and investigations, and the

availability of funds. These and other risks and uncertainties are set forth in the Group Management Report. However, other factors could also have an adverse effect on our business performance and results. Stabilus S.A. neither intends nor assumes any separate obligation to update forward-looking statements or to change these to reflect events or developments that occur after the publication of this interim report.

Rounding

Certain numbers in this interim report have been rounded up or down. There may therefore be discrepancies between the actual totals of the individual amounts in the tables and the totals shown as well as between the numbers in the tables and the numbers given in the corresponding analyses in the text of the interim report. All percentage changes and key figures in the Group Management Report were calculated using the underlying data in millions of euros to one decimal place (€ millions).

INFORMATION RESOURCES

Further information including news, reports and publications can be found in the Investor Relations section of our website at www.ir.stabilus.com.

Investor Relations

Phone: +352 286 770 21 Fax: +352 286 770 99 Email: [email protected]

Stabilus S.A. 2, rue Albert Borschette, L-1246 Luxembourg Grand Duchy of Luxembourg

Phone: +352 286 770 1 Fax: +352 286 770 99 Email: [email protected] Internet: www.stabilus.com

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