Stabilus SE

Quarterly Report • Aug 1, 2022

1

QUARTERLY STATEMENT Q3 FY2022

Capital expenditure as % of revenue 3.9% 4.2% FCF in % of revenue 2.7% 11.4% Adjusted FCF in % of revenue 5.6% 11.4% Net leverage ratio 0.6x 0.6x

Three months ended June 30,				Nine months ended June 30,
IN € MILLIONS	2022	2021	CHANGE	% CHANGE	IN € MILLIONS	2022	2021	CHANGE	% CHANGE
Revenue	271.1	228.7	42.4	18.5%	Revenue	796.0	708.1	87.9	12.4%
EBIT	34.4	27.4	7.0	25.5%	EBIT	96.1	90.8	5.3	5.8%
Adjusted EBIT	37.9	30.9	7.0	22.7%	Adjusted EBIT	106.5	101.1	5.4	5.3%
Profit for the period	24.3	15.9	8.4	52.8%	Profit for the period	68.5	56.2	12.3	21.9%
					Capital expenditure	(31.0)	(29.4)	(1.6)	5.4%
EBIT as % of revenue	12.7%	12.0%			Free cash flow (FCF)	21.2	81.0	(59.8)	(73.8)%
Adjusted EBIT as % of revenue	14.0%	13.5%			Adjusted FCF	44.4	81.0	(36.6)	(45.2)%
Profit in % of revenue	9.0%	7.0%
					EBIT as % of revenue	12.1%	12.8%
					Adjusted EBIT as % of revenue	13.4%	14.3%
					Profit in % of revenue	8.6%	7.9%

CONTENTS

3
5
11
14
15
18
18
18

SUPPLEMENTARY FINANCIAL INFORMATION 19

CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME	19
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	20
CONSOLIDATED STATEMENT OF CASH FLOWS	21
SEGMENT REPORTING	22

HIGHLIGHTS 9M FY2022

Revenue increased despite to the challenging market circumstances and the difficult geopolitical situation

• Total Group´s revenue increased by €87.9 million or 12.4% to €796.0 million compared to prior year (organic growth rate +8.4%), which is the highest first 9-month revenue in history of Stabilus
• Revenue in APAC up by 67.6% (organic growth rate +55.9%), Americas up by 10.6% (organic growth rate + 2.7%) and EMEA down by - 2.7% (organic growth rate - 1.7%)
• Revenue in Automotive Powerise® up by 30.8% (organic growth rate +24.4%), Industrial business up by 7.8% (organic growth rate +6.1%) and Automotive Gas Spring business up by +2.3% (organic growth rate - 2.3%)

Key events

• Stabilus specified its fiscal year 2022 company outlook
• Revenue raised to approx. €1,070 million (previous: range of €940 million to €990 million)
• Adjusted EBIT margin confirmed to approx. 14% (previous: range of 14% and 15%)
• Stabilus secures long-term financing by signing a new €450.0 million credit facilities agreement in June 2022, replacing the senior facilities agreement from June 2016
• Stefan Bauerreis is appointed as new CFO of the Stabilus Group effective June 1, 2022
• An extraordinary general meeting resolved the change of the legal form from Société Anonyme (S. A.) under Luxembourg law to a Societas Europaea (SE) on March 24, 2022. This change is effective with registration in the Luxembourg Commercial Register on April 5, 2022

Revenue by region in Q3 FY2022 Revenue by markets in Q3 FY2022

INTERIM MANAGEMENT STATEMENT

for the three and nine months ended June 30, 2022

Alternative Performance Measures (APMs) in the interim management statement for the first nine months of fiscal year 2022

In accordance with the European Securities and Markets Authority (ESMA) guidelines on Alternative Performance Measures, the Stabilus Group provides a definition, the rationale for use and a reconciliation of APMs used. The Group uses the following APMs: organic growth, adjusted EBIT, free cash flow (FCF), adjusted free cash flow and the net leverage ratio. The calculation of the net leverage ratio is based on net financial debt and adjusted EBITDA, which are also considered as APMs.

The APM organic growth is presented because we believe it aids in understanding our operating performance. Organic growth is defined as the reported revenue growth after removing the effects of acquisitions, divestitures and at constant foreign exchange rates. The effects resulting from constant foreign exchange rates are calculated as current year revenue converted at current year exchange rates less current year revenue converted at prior year exchange rates.

The definitions and required disclosures of all other APMs are provided in the relevant sections of this quarterly statement.

Key events in the first nine months of fiscal year 2022

In the first nine months of fiscal year 2022 (October 1, 2021, to June 30, 2022) Stabilus is still being affected by several uncertainties of the COVID-19 pandemic and additionally burdened by the war of Russia against the Ukraine since end of February 2022.

Some months ago, the geopolitical situation worsened significantly and especially the war of Russia against the Ukraine led to additional risks that can significantly impact Stabilus.

The Stabilus business volume within the region, especially with Russia and the Ukraine has only a minor impact on the Group´s operating performance. The possible gas shortages could have an impact on Stabilus operations, however based on our current assessment we can mitigate this risk. Also, the risks from reduced availability of important manufacturing components are not materializing due to strict management of the supply chain. The beforementioned shortages led to cost inflation that we can largely address by sales price increases to our customers. As we can address all risk that are directly impacting Stabilus we also face indirect impacts of the beforementioned risks on the global economy, for example, these are influencing our customer business, especially OEMs, e.g., temporarily plant closures of several OEMs, layers reduction and some cases of short-time work, especially in Europe and China in the second quarter of fiscal year 2022.

To closely monitor the situation, the Group expanded its global multidisciplinary crisis management team, which was initiated at the beginning of the COVID-19 pandemic and was continued over the last two years. Part of our work will be to cope with the effects of the COVID-19 pandemic and the war of Russia against the Ukraine, on our organization in terms of customer communication, IT security and risk management, and further to monitor and analyze the situation on a weekly basis on a local and a global level as well as taking actions to address and mitigate identified risks.

Despite to the challenging economic environment Stabilus specified its fiscal year 2022 company outlook and raised its revenue forecast to approximately €1,070 million (previous: range of €940 million to €990 million) and confirmed the adjusted EBIT margin to approximately 14%, corresponding to around €150 million adjusted EBIT (previous: range of 14% and 15%, corresponding to around €140 million adjusted EBIT at midpoint). However, due to the COVID-19 pandemic and the geopolitical situation, i.e., the war of Russia against the Ukraine, an uncertainty remains.

In the first nine months of fiscal year 2022, the COVID-19 crisis and the war of Russia against the Ukraine did not have any material adverse effects on the financial stability of the Stabilus Group, due to a strict monitoring of cost and liquidity. The financial covenants of the senior facility agreement, as well as from the new facility agreement, have been complied with at all times with a strong headroom (we refer to the disclosures of the net leverage ratio on page 17).

In addition, to the actions regarding the COVID-19 pandemic and the war of Russia against the Ukraine, Stabilus set a strong focus on its sustainability initiatives for the next fiscal years. We believe that sustainability will be one of the major issues of the next decades. One of our goals is to reduce the carbon emission by 2030 significantly and to source the majority of our energy from renewable sources. With regards to the sustainability goals, e.g., we installed solar panels on the roof of the plant in Pinghu, China, and are currently planning further measures in the Group in the near future.

As reported on October 7, 2021, Stabilus Group entered into a partnership with the technology company Synapticon GmbH, located in Schönaich (near Stuttgart), Germany. For this strategic partnership, Stabilus subscribed a minority stake of approximately 12% of the shares in Synapticon via a capital increase. The partnership enables Stabilus to expand its digital competence, which offers significant opportunities especially for its Powerise® product line. The transaction was completed in October 2021. The agreed cash purchase price for approximately 12% of the shares was €6.0 million.

As reported on November 22, 2021, effective from November 25, 2021, Stabilus Group entered into a partnership with Cultraro Automazione Engineering S.r.l. located in Rivoli (near Turin), Italy. For this strategic partnership, Stabilus acquired 32.0% of the shares from the company's founders. The finally agreed cash purchase price for 32.0% of the shares was €17.2 million (initial payment of €16.6 million and net working capital payment of €0.6 million after the closing process). The partnership focuses on expanding the product range in the field of motion control. The transaction was completed in November 2021.

On January 28, 2022, Stabilus issued its second promissory note loan (Schuldscheindarlehen) with a total volume of €55.0 million, via its subsidiary Stabilus GmbH and Stabilus SE (formerly Stabilus S. A.) acting as guarantor. This promissory note loan has a maturity of five years with a variable interest rate (6M-Euribor +80bps). Stabilus now has a total promissory note loan volume of €150.0 million.

On March 24, 2022, the Stabilus shareholders resolved in an extraordinary general meeting to change the legal form from Société Anonyme (S. A.) under Luxembourg law to a Societas Europaea (SE). With registration in the Luxembourg Commercial Register on April 5, 2022, the Company now trades as Stabilus SE. This was the first step of the announced planned change of the legal form into a European Company (Societas Europaea) and the subsequent transfer of the Company´s registered office from Luxembourg to Germany. The next extraordinary general meeting for the transfer of the Company is on August 11, 2022. Further information can be found at: www.stabilus.com/investors/se.

As announced on July 5, 2022, effective from June 28, 2022, Stabilus secures a new long-term financing with new credit facilities. Stabilus signed an agreement for credit facilities in an amount of €450.0 million with a term of five years (plus an extension option for two additional years). The facilities comprise a syndicated term loan facility of €100.0 million and a syndicated revolving credit facility of €350.0 million (undrawn), with variable interest rates between 50bps and 150bps above Euribor, depending on the companies leverage ratio.

In the light of the challenging market circumstances and the difficult geopolitical situation, Stabilus showed solid first nine months results in fiscal year 2022 and thus demonstrates the stability of the Company during times of economic volatility.

Supported by the strong performance in the APAC region and from sales price increases to our customers to compensate the high cost inflation, the Group's total revenue increased by 12.4% to €796.0 million in the first nine months of fiscal year 2022. The opening of our Powerise® production site in Pinghu, China, during the fiscal year 2021, provided us with production capacity to supply the strong Chinese demand of the Automotive Powerise® product range. In terms of our regions, revenue in APAC increased by 67.6% to €177.2 million and revenue in Americas increased by 10.6% to €270.1 million and is partly offset by a decline in EMEA by (2.7)% to €348.7 million (we refer to the disclosures of operating segments on page 11).

In terms of our business units, the Industrial business is back on course for growth after the weakness in prior year and increased organically by 6.1% to €303.5 million in the first nine months of fiscal year 2022. Our Automotive Powerise® business increased organically by 24.4% to €257.1 million in the first nine months of fiscal year 2022. In contrast our Automotive Gas Spring business decreased organically by (2.3)% to €235.4 million in the first nine months of fiscal year 2022. However, both Automotive business units outperformed the global automotive market assumptions. According to the forecast of IHS Markit the global light-vehicle production declined in the first nine months of fiscal year 2022 (October 2021 - June 2022) by approximately (4.9)% compared to prior year.

RESULTS OF OPERATIONS

THIRD QUARTER AND FIRST NINE MONTHS OF FISCAL YEAR 2022

The tables below set out Stabilus Group's consolidated income statement for the third quarter and the first nine months of fiscal year 2022 in comparison to the third quarter and the first nine months of fiscal year 2021:

Income statement T_001

	Three months ended June 30,
IN € MILLIONS	2022	2021	Change	% change
Revenue	271.1	228.7	42.4	18.5%
Cost of sales	(194.6)	(161.9)	(32.7)	20.2%
Gross profit	76.5	66.8	9.7	14.5%
Research and development expenses	(10.2)	(10.7)	0.5	(4.7)%
Selling expenses	(22.1)	(20.1)	(2.0)	10.0%
Administrative expenses	(10.9)	(9.6)	(1.3)	13.5%
Other income	1.1	1.7	(0.6)	(35.3)%
Other expenses	(0.2)	(0.8)	0.6	(75.0)%
Income / (expense) from equity-accounted investments	0.2	–	0.2	n/a
Profit from operating activities (EBIT)	34.4	27.4	7.0	25.5%
Finance income	5.7	0.2	5.5	>100.0%
Finance costs	(5.2)	(4.5)	(0.7)	15.6%
Profit / (loss) before income tax	34.9	23.1	11.8	51.1%
Income tax income / (expense)	(10.6)	(7.1)	(3.5)	49.3%
Profit / (loss) for the period	24.3	15.9	8.4	52.8%

Income statement T_002

	Nine months ended June 30,
IN € MILLIONS	2022	2021	Change	% change
Revenue	796.0	708.1	87.9	12.4%
Cost of sales	(574.2)	(496.5)	(77.7)	15.6%
Gross profit	221.8	211.6	10.2	4.8%
Research and development expenses	(34.9)	(31.6)	(3.3)	10.4%
Selling expenses	(63.3)	(61.2)	(2.1)	3.4%
Administrative expenses	(31.1)	(30.5)	(0.6)	2.0%
Other income	3.6	4.8	(1.2)	(25.0)%
Other expenses	(0.2)	(2.3)	2.1	(91.3)%
Income / (expense) from equity-accounted investments	0.1	–	0.1	n/a
Profit from operating activities (EBIT)	96.1	90.8	5.3	5.8%
Finance income	9.3	0.6	8.7	>100.0%
Finance costs	(9.8)	(12.1)	2.3	(19.0)%
Profit / (loss) before income tax	95.6	79.3	16.3	20.6%
Income tax income / (expense)	(27.1)	(23.1)	(4.0)	17.3%
Profit / (loss) for the period	68.5	56.2	12.3	21.9%

Revenue

Group's total revenue developed as follows:

Revenue by region and business unit T_003

	Three months ended June 30,
IN € MILLIONS	2022	2021	Change	% change		% currency effect % organic growth
EMEA
Automotive Gas Spring	29.7	30.5	(0.8)	(2.6)%	0.0%	(2.6)%
Automotive Powerise®	23.7	21.6	2.1	9.7%	(0.5)%	10.2%
Industrial	65.0	65.2	(0.2)	(0.3)%	(1.7)%	1.4%
Total EMEA1)	118.4	117.3	1.1	0.9%	(1.0)%	1.9%
Americas
Automotive Gas Spring	25.5	21.1	4.4	20.9%	14.2%	6.7%
Automotive Powerise®	36.8	25.3	11.5	45.5%	15.9%	29.6%
Industrial	35.3	28.9	6.4	22.1%	12.8%	9.3%
Total Americas1)	97.6	75.4	22.2	29.4%	14.2%	15.2%
APAC
Automotive Gas Spring	21.7	19.4	2.3	11.9%	8.6%	3.3%
Automotive Powerise®	28.1	11.7	16.4	140.2%	18.8%	121.4%
Industrial	5.3	5.0	0.3	6.0%	7.7%	(1.7)%
Total APAC1)	55.1	36.0	19.1	53.1%	11.8%	41.3%
Stabilus Group
Total Automotive Gas Spring	76.9	70.9	6.0	8.5%	6.6%	1.9%
Total Automotive Powerise®	88.6	58.6	30.0	51.2%	10.4%	40.8%
Total Industrial	105.6	99.1	6.5	6.6%	3.0%	3.6%
Revenue1)	271.1	228.7	42.4	18.5%	6.0%	12.5%

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

Total revenue of €796.0 million in the first nine months of fiscal year 2022 increased by €87.9 million or 12.4% compared to the first nine months of fiscal year 2021. The positive effect from exchange rate changes amounted to €28.0 million, which resulted in organic growth of €59.9 million or 8.4% in the first nine months of fiscal year 2022. The revenue increase is due to higher demand of the Stabilus product group portfolio on the one hand as well as from sales price increases to our customers on the other hand to compensate the high cost inflation.

A INTERIM MANAGEMENT STATEMENT • RESULTS OF OPERATIONS

The increase in Group revenue in the first nine months of fiscal year 2022 was particularly strong in APAC (€71.5 million or 67.6%). The region was also affected by the relatively stronger Chinese renminbi. Consequently, the organic growth in APAC was 55.9%.

Revenue in EMEA decreased by €(9.5) million or (2.7)%, and the organic growth rate was (1.7)%, due to numerous supply chain issues at customers causing them to change production schedules as impacts of the war of Russia against the Ukraine.

Americas revenue increased by €25.9 million or 10.6% and is impacted by the stronger Mexican peso and US dollar compared to the euro which resulted in organic growth rate of 2.7%, in spite of continental production schedule changes at customers.

	Nine months ended June 30,
IN € MILLIONS	2022	2021	Change	% change		% currency effect % organic growth
EMEA
Automotive Gas Spring	86.6	98.1	(11.5)	(11.7)%	0.0%	(11.7)%
Automotive Powerise®	69.4	73.2	(3.8)	(5.2)%	(1.1)%	(4.1)%
Industrial	192.7	186.9	5.8	3.1%	(1.6)%	4.7%
Total EMEA1)	348.7	358.2	(9.5)	(2.7)%	(1.0)%	(1.7)%
Americas
Automotive Gas Spring	74.5	70.0	4.5	6.4%	7.9%	(1.5)%
Automotive Powerise®	101.9	93.4	8.5	9.1%	7.6%	1.5%
Industrial	93.7	80.7	13.0	16.1%	8.2%	7.9%
Total Americas1)	270.1	244.2	25.9	10.6%	7.9%	2.7%
APAC
Automotive Gas Spring	74.3	61.9	12.4	20.0%	8.2%	11.8%
Automotive Powerise®	85.8	29.9	55.9	187.0%	20.9%	166.1%
Industrial	17.1	14.0	3.1	22.1%	7.8%	14.3%
Total APAC1)	177.2	105.7	71.5	67.6%	11.7%	55.9%
Stabilus Group
Total Automotive Gas Spring	235.4	230.0	5.4	2.3%	4.6%	(2.3)%
Total Automotive Powerise®	257.1	196.5	60.6	30.8%	6.4%	24.4%
Total Industrial	303.5	281.6	21.9	7.8%	1.7%	6.1%
Revenue1)	796.0	708.1	87.9	12.4%	4.0%	8.4%

Revenue by region and business unit T_004

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

8

Cost of sales and overhead expenses

Cost of sales

Cost of sales increased from €(496.5) million in the first nine months of fiscal year 2021 by 15.6% to €(574.2) million in the first nine months of fiscal year 2022. This increase is especially due to the overall material price inflation over the last couple of months, e.g., steel, resin, and plastic, as well as to the strongly rising energy costs (e.g., electricity and gas) in early 2022. Both have a negative impact on our cost of sales. Additionally, the increase is further due to the increased business volume compared to prior year. The cost of sales increase (15.6%) is higher than the increase in revenue (12.4%). The ratio was affected positively by the higher Industrial business volume and was further affected by a mixed effect in the Automotive business, i.e., Automotive Gas Spring has a higher cost share than the Automotive Powerise® business. In addition, the cost of sales was negatively influenced by the current market circumstances on the commodity market. Consequently, the cost of sales as a percentage of revenue increased by 200 basis points to 72.1% (PY: 70.1%) and the gross profit margin declined to 27.9% (PY: 29.9%).

R&D expenses

R&D expenses (net of R&D cost capitalization) increased from €(31.6) million in the first nine months of fiscal year 2021 by 10.4% to €(34.9) million in the first nine months of fiscal year 2022. The Group invested on an ongoing basis in engineering activities aimed to develop new products and product applications, e.g., into the development of the Automotive Powerise® product range to open new areas of business for Stabilus, which is also visible in an increased R&D headcount structure. As a result of the ongoing investment in the development of R&D depreciation and amortization increased by €(2.2) million compared to prior year. The Group recognized non-recurring impairment charges of €(0.4) million in the first nine months of fiscal year 2022 compared to €(0.6) million in the first nine months of fiscal year 2021. The capitalization of R&D expenses (less related customer contribution) decreased negligibly from €(11.2) million in the first nine months of fiscal year 2021 to €(11.1) million in the first nine months of fiscal year 2022. As a percentage of revenue, R&D expenses decreased slightly by 10 basis points to 4.4% (PY: 4.5%).

Selling expenses

Selling expenses increased from €(61.2) million in the first nine months of fiscal year 2021 by 3.4% to €(63.3) million in the first nine months of fiscal year 2022. As a percentage of revenue, selling expenses decreased by 60 basis points to 8.0% (PY: 8.6%).

Administrative expenses

Administrative expenses increased from €(30.5) million in the first nine months of fiscal year 2021 by 2.0% to €(31.1) million in the first nine months of fiscal year 2022. As a percentage of revenue, administrative expenses decreased by 40 basis points to 3.9% (PY: 4.3%).

Other income and expense

Other income decreased from €4.8 million in the first nine months of fiscal year 2021 by €(1.2) million to €3.6 million in the first nine months of fiscal year 2022. The net foreign currency translation gains from the operating business, primarily in Americas, amounting to €0.7 million (PY: -). Prior year includes a reimbursement related to the acquisition of SKF Group entities in 2016 amounted to €1.6 million.

Other expenses decreased from €(2.3) million in the first nine months of fiscal year 2021 by €2.1 million to €(0.2) million in the first nine months of fiscal year 2022. Prior year includes net foreign currency translation losses from the operating business, primarily in Americas, amounting to €(2.0) million.

Finance income and costs

Finance income increased from €0.6 million in the first nine months of fiscal year 2021 by €8.7 million to €9.3 million in the first nine months of fiscal year 2022. The increase is due to the net foreign exchange gains amounting to €7.9 million from the translation of intragroup loans, cash and cash equivalents as well as from other financial liabilities (lease liabilities) and from a reversal of an unrealized provision for tax related interest expenses amounting to €1.0 million.

Finance costs decreased from €(12.1) million in the first nine months of fiscal year 2021 by €2.3 million to €(9.8) million in the first nine months of fiscal year 2022. Prior year included net foreign exchange losses amounting to €(3.0) million from the translation of intragroup loans, cash and cash equivalents as well as from financial liabilities (lease liabilities). Further details are described below.

Finance costs primarily contain ongoing interest expense. Interest expense in the first nine months of fiscal year 2022 of €(9.6) million (PY: €(8.6) million) related to the term-loan facility as well as to the promissory note loans issued in March 2021 and January 2022. Of that amount, €(3.7) million (PY: €(3.7) million) is cash interest. In addition, an amount of €(5.4) million (PY: €(4.9) million) is due to the amortization of debt issuance cost and the amortization of the adjustment of the carrying value using the effective interest rate method. Thereof €(3.1) million (PY: €(1.5) million) relates to the repayment of the term-loan facility in June 2022, due to the new facility agreement, as well as a voluntary prepayment of the term-loan facility in January 2022. These led to a derecognition of unamortized debt issuance costs and unamortized adjustments of the carrying value.

Income tax expense

Income tax expense increased from €(23.1) million in the first nine months of fiscal year 2021 to €(27.1) million in the first nine months of fiscal year 2022. The Stabilus Group´s effective tax rate in the first nine months of fiscal year 2022 is 28.3% (PY: 29.1%).

Reconciliation of EBIT to adjusted EBIT

The following table shows a reconciliation of EBIT (earnings before interest and taxes) to adjusted EBIT for the third quarter and the first nine months of fiscal year 2022 in comparison to the third quarter and the first nine months of fiscal year 2021:

Reconciliation of EBIT to adjusted EBIT T_005

	Three months ended June 30,
IN € MILLIONS	2022	2021	Change	% change
Profit from operating activities (EBIT)	34.4	27.4	7.0	25.5%
PPA adjustments - depreciation and amortization	3.5	3.5	–	0.0%
Adjusted EBIT	37.9	30.9	7.0	22.7%
	Nine months ended June 30,
IN € MILLIONS	2022	2021	Change	% change

IN € MILLIONS	2022	2021	Change	% change
Profit from operating activities (EBIT)	96.1	90.8	5.3	5.8%
PPA adjustments - depreciation and amortization	10.4	10.3	0.1	1.0%
Adjusted EBIT	106.5	101.1	5.4	5.3%

Adjusted EBIT represents EBIT, adjusted for exceptional non-recurring items (e.g., restructuring, or one-time advisory costs) and depreciation / amortization of fair value adjustments from purchase price allocations (PPAs).

Adjusted EBIT is presented because we believe it helps understanding our operating performance.

The PPA adjustments for depreciation and amortization in the first nine months of fiscal year 2022 amounted to €10.4 million (PY: €10.3 million). Of that amount, €3.5 million (PY: €3.5 million) stem from the April 2010 PPA and €6.3 million (PY: €6.1 million) result from the June 2016 PPA. Furthermore, €0.6 million (PY: €0.7 million) relate to the acquisitions in fiscal year 2019 and decreased due to the full amortization of other intangible assets from the acquisition of General Aerospace GmbH in a year-onyear comparison.

DEVELOPMENT OF OPERATING SEGMENTS

The Stabilus Group is organized and managed primarily on a regional level. The three reportable operating segments of the Group are EMEA (Europe, Middle East and Africa), Americas (North and South America) and APAC (Asia Pacific).

The tables below set out the development of our operating segments for the third quarter and the first nine months of fiscal year 2022 in comparison to the third quarter and the first nine months of fiscal year 2021:

Operating segments T_006

A INTERIM MANAGEMENT STATEMENT • DEVELOPMENT OF OPERATING SEGMENTS

	Three months ended June 30,
IN € MILLIONS	2022	2021	Change	% change
EMEA
External revenue1)	118.4	117.3	1.1	0.9%
Intersegment revenue1)	7.8	6.1	1.7	27.9%
Total revenue1)	126.2	123.4	2.8	2.3%
Adjusted EBIT	12.0	15.7	(3.7)	(23.6)%
as % of total revenue	9.5%	12.7%
as % of external revenue	10.1%	13.4%
Americas
External revenue1)	97.6	75.4	22.2	29.4%
Intersegment revenue1)	7.7	6.2	1.5	24.2%
Total revenue1)	105.4	81.6	23.8	29.2%
Adjusted EBIT	14.9	9.7	5.2	53.6%
as % of total revenue	14.1%	11.9%
as % of external revenue	15.3%	12.9%
APAC
External revenue1)	55.1	36.0	19.1	53.1%
Intersegment revenue1)	0.2	0.1	0.1	100.0%
Total revenue1)	55.3	36.1	19.2	53.2%
Adjusted EBIT	11.0	5.5	5.5	100.0%
as % of total revenue	19.9%	15.2%
as % of external revenue	20.0%	15.3%

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

T_007

	Nine months ended June 30,
IN € MILLIONS	2022	2021	Change	% change
EMEA
External revenue1)	348.7	358.2	(9.5)	(2.7)%
Intersegment revenue1)	24.9	22.3	2.6	11.7%
Total revenue1)	373.6	380.5	(6.9)	(1.8)%
Adjusted EBIT	37.7	50.0	(12.3)	(24.6)%
as % of total revenue	10.1%	13.1%
as % of external revenue	10.8%	14.0%
Americas
External revenue1)	270.1	244.2	25.9	10.6%
Intersegment revenue1)	23.0	18.3	4.7	25.7%
Total revenue1)	293.0	262.5	30.5	11.6%
Adjusted EBIT	34.1	34.3	(0.2)	(0.6)%
as % of total revenue	11.6%	13.1%
as % of external revenue	12.6%	14.0%
APAC
External revenue1)	177.2	105.7	71.5	67.6%
Intersegment revenue1)	0.2	0.2	–	0.0%
Total revenue1)	177.4	105.9	71.5	67.5%
Adjusted EBIT	34.7	16.8	17.9	106.5%
as % of total revenue	19.6%	15.9%
as % of external revenue	19.6%	15.9%

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

A INTERIM MANAGEMENT STATEMENT • DEVELOPMENT OF OPERATING SEGMENTS

The external revenue generated by our companies located in the EMEA region decreased from €358.2 million in the first nine months of fiscal year 2021 by (2.7)% or €(9.5) million to €348.7 million in the first nine months of fiscal year 2022. The negative currency translation effect amounted to €(3.7) million resulting in an organic growth rate of (1.7)%. The decline is especially driven by the Automotive Gas Spring business which decreased from €98.1 million by (11.7)% or €(11.5) million to €86.6 million. The organic growth of the Automotive Gas Spring business was (11.7)%. Further, the decrease was also driven by the reduced Automotive Powerise® business, which decreased from €73.2 million by (5.2)% or €(3.8) million to €69.4 million. The organic growth rate of Automotive Powerise® was (4.1)%. The Automotive business is further affected by the impacts of the COVID-19 pandemic and the accompanying effects and since the end of February 2022 additionally burdened by the war of Russia against the Ukraine. The shortages of electronic components (semiconductors) and the reduced availability of important manufacturing components (e.g., wiring systems) for the vehicle production influenced our customers business and reduced the light-vehicle output across the EU. Besides these impacts inflation in Europe increased strongly over the last couple of months. Consequences of these impacts led to temporarily plant closures of several OEMs, layers reduction and some cases of short-time work especially in the second quarter of fiscal year 2022. In contrast to our Automotive Gas Spring and Automotive Powerise® business the industrial market increased and partially offsets the decline. The Industrial business increased from €186.9 million by 3.1% or €5.8 million to €192.7 million. Organically the growth rate of the Industrial business was 4.7%. This reflects our broad product portfolio with growth in all our market subsegments except for healthcare, recreation & furniture which declined compared to prior year. Especially in the subsegments distributors, independent aftermarket, e-commerce and industrial machinery & automation we grew strongly and further expanded our market share. However, the subsegment healthcare, recreation & furniture was affected from double-digit decreases. The effects of the strong price increases in the procurement market, i.e., steel, resin, and plastic as well as the rising freight and energy costs (e.g., electricity and gas) reduced the adjusted EBIT margin in EMEA. Consequently,

the adjusted EBIT of the EMEA segment decreased by (24.6)% or €(12.3) million, and the adjusted EBIT margin, i.e., adjusted EBIT as a percent of external revenue, decreased in the first nine months of fiscal year 2022 to 10.8% (PY: 14.0%).

A INTERIM MANAGEMENT STATEMENT • DEVELOPMENT OF OPERATING SEGMENTS

The external revenue of our companies located in the Americas increased from €244.2 million in the first nine months of fiscal year 2021 by 10.6% or €25.9 million to €270.1 million in the first nine months of fiscal year 2022. The positive currency translation effect amounted to €19.3 million resulting in an organic growth rate of 2.7% and especially stems from the relatively stronger Mexican peso and US dollar in a yearon-year comparison. The increase was mainly driven by the Automotive Powerise® business which increased from €93.4 million by 9.1% or €8.5 million to €101.9 million and organically by 1.5%. The Automotive Powerise® business was also negatively impacted by the shift of Powerise production of an OEM from Americas to APAC, which emphasizes the positive development of the business unit. The Automotive Gas Spring business increased from €70.0 million by 6.4% or €4.5 million to €74.5 million. The organic growth rate was (1.5)%. The US light-vehicle sales decreased in the first nine months of our fiscal year 2022 with double-digit declines in a year-on-year comparison and influenced the Automotive industry strongly, due to the uncertainties in the global supply chain and from the shortages of electronic components (semiconductors) as well as the strong inflation in the US over the last couple of months. This led to a reduced customer demand. The current market expectation shows that the lack of the electronic components (semiconductors) will stabilize in the calendar year 2022. The Automotive market is also influenced from the war of Russia against the Ukraine, through the reduced availability of imported manufacturing components for car production. Nevertheless, the development of the automotive market share from Stabilus shows a solid performance in the region and outlined the good market presence of the Stabilus products. The Industrial business increased from €80.7 million by 16.1% or €13.0 million to €93.7 million, while it organically grew by 7.9%. The industrial market is further on course and considerably better compared to prior year against the backdrop of the COVID-19 pandemic. Stabilus benefits from the diversification of the product portfolio and growth in all subsegments e.g., highest growth rates in the subsegments distributors, independent aftermarket, e-commerce and commercial vehicles. Also, our region Americas was burdened by material price inflation and from increasing energy costs and therefore, the adjusted EBIT of the Americas segment slightly decreased by (0.6)% or €(0.2) million, and the adjusted EBIT margin declined in the first nine months of fiscal year 2022 to 12.6% (PY: 14.0%).

The external revenue of our companies located in APAC increased from €105.7 million in the first nine months of fiscal year 2021 by 67.6% or €71.5 million to €177.2 million in the first nine months of fiscal year 2022. The positive currency translation effect amounted to €12.4 million resulting in an organic growth rate of 55.9% and occurred primarily from the stronger Chinese renminbi in a year-on-year comparison. The significant revenue increase in the APAC region was especially driven by the Automotive Powerise® business, which grew from €29.9 million by 187.0% or €55.9 million to €85.8 million. Organically the growth rate was 166.1%. The Automotive Gas Spring business grew from €61.9 million by 20.0% or €12.4 million to €74.3 million, while the organic growth rate was 11.8%. However, the Chinese light-vehicle market increased by 1.1%, according to the China Association of Automobile Manufactures (CAAM), in a year-on-year comparison (October 1, 2021, to June 30, 2022). In addition, the government in China initiated various stimulus programs to support the recovery of the economy from the regional lockdowns of the last months. The Stabilus market share strongly increased due the wins of new OEM platforms, which led to higher take rates of our Automotive Powerise® product range as well as of our Automotive Gas Spring products. Nevertheless, there are still market uncertainties due to the overall shortages of electronic components (semiconductors) as well as an uncertain market development from the requirements of the zero COVID-19 strategy in China, e.g., temporary closure of plants and seaports. The APAC Industrial business increased from €14.0 million by 22.1% or €3.1 million to €17.1 million. The organic growth rate was 14.3%. Our industrial market recorded growth rates across all our market subsegments, especially in the subsegments distributors, independent aftermarket, e-commerce and industrial machinery & automation. The adjusted EBIT of the APAC segment increased by 106.5% or €17.9 million, and the adjusted EBIT margin increased in the first nine months of fiscal year 2022 to 19.6% (PY: 15.9%).

FINANCIAL POSITION

Balance sheet T_008

Change % change 25.3 3.8%
8.3 1.7%
33.6 2.9%
72.0 13.2%
(12.0)%
6.7%
(6.2)%
2.9%
(51.4) 13.0 (38.4) 33.6

Total assets

The Group's balance sheet total increased from €1,166.6 million as of September 30, 2021, by 2.9% or €33.6 million to €1,200.2 million as of June 30, 2022.

Non-current assets

Our non-current assets increased from €669.7 million as of September 30, 2021, by 3.8% or €25.3 million to €695.0 million as of June 30, 2022. This increase is especially due to an equity-accounted investment (Cultraro Automazione Engineering S.r.l. +€17.2 million) and other investments (Synapticon GmbH +€6.0 million). This increase was partly offset by the ongoing amortization of €(22.7) million on other intangible assets mainly from purchase price allocations and by the ongoing depreciation of €(28.4) million on property, plant and equipment. In addition, the Group invested €12.7 million in intangible assets and €21.1 million in fixed assets for ongoing capacity expansion projects (including right-of-use assets). Furthermore, non-current assets were influenced by foreign exchange raterelated carrying value adjustments, e.g., an increase in goodwill of €4.9 million.

Current assets

Current assets increased slightly from €496.9 million as of September 30, 2021, by 1.7% or €8.3 million to €505.2 million as of June 30, 2022. This was especially driven by increased trade and other receivables (+€34.0 million) due to increased business volume and by increased inventories amounting to €27.8 million. Inventory was increased to secure our global supply chain and from higher material prices for raw material and supplies. The cash balance decreased by €(58.2) million, attributable to the net cash outflow for the repayment of the term-loan facility amounting to €(95.0) million in June 2022 related to the refinancing as well as by the voluntary prepayment of €(2.6) million in January 2022. In addition, the cash balance was reduced from the dividend payment amounting to €(30.9) million paid out in February 2022. These effects were partially offset by the cash inflow from the promissory note loan amounting to €55.0 million in January 2022. In addition, other assets increased (+€5.0 million) mainly due to VAT receivables (+€1.5 million), advance payments (+€1.3 million) and deferred charges from payments for annual service costs (+€1.0 million).

Equity

The Group's equity increased from €544.3 million as of September 30, 2021, by €72.0 million to €616.3 million as of June 30, 2022. This increase results from the profit of €68.5 million and from the other comprehensive income, which increased by €34.6 million. This comprises unrealized actuarial gains from foreign currency translation amounting to €26.7 million and actuarial gains on pensions (net of tax) amounting to €7.9 million. This increase was partly offset by the dividend payment to our shareholders amounting to €(30.9) million in the second quarter of fiscal year 2022 and a dividend payment amounting to €(0.2) million paid to non-controlling shareholders

Non-current liabilities

Non-current liabilities decreased strongly from €428.8 million as of September 30, 2021, by (12.0)% or €(51.4) million to €377.4 million as of June 30, 2022. This relates especially to the net repayment of the termloan facility amounting to €(95.0) million in June 2022 related to the refinancing and from the voluntary prepayment amounting to €(2.6) million in January 2022. In relation to the new credit facility agreement an amount of €3.1 million was derecognized due to the unamortized debt issuance costs and unamortized adjustments of the carrying value as well as from €2.3 million from the ongoing amortization of debt issuance costs. This was partly offset by the issue of the Group´s second promissory note loan amounting to €55.0 million in January 2022 and from the recognition of the new debt issuance costs amounting to €(2.8) million. Furthermore, other financial liabilities decreased mainly due to the ongoing repayments of lease liabilities amounting to €(6.1) million, which were partially offset from new leasing contracts amounting to €2.2 million. In addition, our pension liabilities decreased by €(11.9) million as a consequence of the increased discount rate (June 30, 2022: 2.86% versus September 30, 2021: 1.31%).

Current liabilities

Current liabilities increased from €193.5 million as of September 30, 2021, by €13.0 million or 6.7% to €206.5 million as of June 30, 2022. The increase especially relates to increased trade accounts payable amounting to €8.4 million. This increase was partly offset by decreased provisions of €(2.1) million. Personnel-related expenses declined by €(1.8) million, primarily due to the payout of the statutory profit sharing of the Mexican plant which is partly offset by the increased bonus provision in the Group. Furthermore, other liabilities increased by €3.7 million mainly for outstanding costs (+€2.2 million).

LIQUIDITY

A INTERIM MANAGEMENT STATEMENT • FINANCIAL POSITION • LIQUIDITY

Cash flow T_009

	Nine months ended June 30,
IN € MILLIONS	2022	2021	Change	% change
Cash flow from operating activities	75.1	109.8	(34.7)	(31.6)%
Cash flow from investing activities	(53.9)	(28.8)	(25.1)	87.2%
Cash flow from financing activities	(84.5)	(6.4)	(78.1)	>100.0%
Net increase / (decrease) in cash	(63.3)	74.6	(137.9)	<(100.0)%
Effect of movements in exchange rates on cash held	5.1	1.4	3.7	>100.0%
Cash as of beginning of the period	193.2	162.4	30.8	19.0%
Cash as of end of the period	135.0	238.4	(103.4)	(43.4)%

Cash flow from operating activities

Cash flow from operating activities decreased from €109.8 million in the first nine months of fiscal year 2021 by (31.6)% or €(34.7) million to €75.1 million in the first nine months of fiscal year 2022. The decrease is especially related to the negative effects from higher net working capital in a year-on-year comparison due to higher business volume, e.g., up stacking of inventory to secure supply as well as material price increase. In addition, the decrease resulted from higher income tax payments of €(2.2) million. Prior year includes a tax reimbursement of €3.0 million from the US restructuring in fiscal year 2018.

Cash flow from investing activities

Cash outflow for investing activities increased from €(28.8) million in the first nine months of fiscal year 2021 by €(25.1) million to €(53.9) million in the first nine months of fiscal year 2022. This increase is especially due to an equity-accounted investment (Cultraro Automazione Engineering S.r.l. €17.2 million) and other investments (Synapticon GmbH €6.0 million). Capital expenditure in intangible assets increased by €0.9 million and in property, plant and equipment increased by €0.7 million in a year-on-year comparison.

Cash flow from financing activities

Cash flow from financing activities strongly increased from €(6.4) million in the first nine months year 2021 by €(78.1) million to €(84.5) million in the first nine months of fiscal year 2022. This was mainly attributable to the net cash outflow of the repayment of the termloan facility amounting to €(97.6) million (PY: €(47.4) million) as well as to higher dividends of €(30.9) million (PY: €(12.4) million) paid to our shareholders in February 2022. This was partly compensated by the cash inflow of the promissory note loan of €55.0 million (PY: €95.0 million) in January 2022. Furthermore, the financing activities additional affected by the repayment of financial liabilities amounting to €(1.1) million. In prior year an amount of €(31.3) million relates mainly to the repayment of the revolving credit facility.

Free cash flow (FCF)

Free cash flow (FCF) is defined as the total of cash flow from operating and investing activities. The Group considers FCF as an essential alternative performance measure as it aids in the evaluation of the Group´s ability to generate cash which can be used, among others, for further investments. The following table sets out the composition of FCF:

Free cash flow T_010

	Nine months ended June 30,
IN € MILLIONS	2022	2021	Change	% change
Cash flow from operating activities	75.1	109.8	(34.7)	(31.6)%
Cash flow from investing activities	(53.9)	(28.8)	(25.1)	87.2%
Free cash flow	21.2	81.0	(59.8)	(73.8)%

Adjusted free cash flow

Adjusted free cash flow is defined as the total of cash flow from operating and investing activities before acquisitions. The adjusted free cash flow decreased from €81.0 million in the first nine months of fiscal year 2021 to €44.4 million in the first nine months of fiscal year 2022 mainly driven by the investment for an equity-accounted investment (Cultraro Automazione Engineering S.r.l. €17.2 million) and other investments (Synapticon GmbH €6.0 million).

Adjusted free cash flow T_011

	Nine months ended June 30,
IN € MILLIONS	2022	2021	Change	% change
Cash flow from operating activities	75.1	109.8	(34.7)	(31.6)%
Cash flow from investing activities before acquisitions	(53.9)	(28.8)	(25.1)	87.2%
Free cash flow	21.2	81.0	(59.8)	(73.8)%
Acquisition of equity-accounted and other investments	23.2	–	23.2	n/a
Adjusted FCF	44.4	81.0	(36.6)	(45.2)%

Net leverage ratio

The net leverage ratio is defined as net financial debt divided by adjusted EBITDA for the last twelve months (adjusted EBITDA LTM).

Net financial debt is the nominal amount of financial debt, i.e., current, and non-current financial liabilities, less cash and cash equivalents. Adjusted EBITDA is defined as adjusted EBIT before depreciation / amortization and before exceptional non-recurring items (e.g., restructuring, or onetime advisory costs).

The net leverage ratio is presented because we believe it is a useful indicator to evaluate the Group's debt leverage and financing structure.

The net leverage ratio remained unchanged at 0.6x for the twelve months ending June 30, 2021, compared to 0.6x for the twelve months ending June 30, 2022 (September 30, 2021, at 0.6x). Further details are set out in the following table:

Net leverage ratio T_012

IN € MILLIONS June 30, 2022 June 30, 2021 Change % change Financial debt 256.9 350.4 (93.5) (26.7)% Cash and cash equivalents (135.0) (238.4) 103.4 (43.4)% Net financial debt 121.9 112.0 9.9 8.8% Adjusted EBITDA (LTM ended June 30) 194.2 181.7 12.5 6.9% Net leverage ratio1) 0.6x 0.6x

1) The net leverage ratio is defined as net financial debt divided by adjusted EBITDA for the last twelve months.

Financial debt T_013

IN € MILLIONS	June 30, 2022	June 30, 2021
Financial liabilities (non-current)	252.5	338.7
Financial liabilities (current)	1.6	4.1
Adjustment carrying value	2.8	7.5
Financial debt	256.9	350.4

Adjusted EBITDA (LTM ended June 30) T_014

IN € MILLIONS	June 30, 2022	June 30, 2021	Change	% change
Profit from operating activities (EBIT)	126.6	116.8	9.8	8.4%
Depreciation	38.0	35.8	2.2	6.1%
Amortization	15.7	15.1	0.6	4.0%
PPA adjustments - depreciation and amortization	13.9	14.2	(0.3)	(2.1)%
EBITDA	194.2	181.9	12.3	6.8%
Purchase price adjustment	–	(0.2)	0.2	(100.0)%
Adjusted EBITDA	194.2	181.7	12.5	6.9%

• RISKS AND OPPORTUNITIES • SUBSEQUENT EVENTS

A INTERIM MANAGEMENT STATEMENT

• OUTLOOK

RISKS AND OPPORTUNITIES SUBSEQUENT EVENTS

The COVID-19 pandemic is still affecting the macroeconomic environment and the global economy is characterized by the consequential uncertainties, which bear various risks for Stabilus. Some months ago, the geopolitical situation worsened significantly and especially the war of Russia against the Ukraine led to additional risks that can significantly impact Stabilus. We are constantly monitoring how the war of Russia against the Ukraine may affect our economic situation, especially the possible gas shortages could have an impact on Stabilus operations, however based on our current assessment we can mitigate this risk. Also, the risks from reduced availability of important manufacturing components are not materializing due to strict management of the supply chain. To closely monitor the situation, the Group expanded its global multidisciplinary crisis management team, which was initiated at the beginning of the COVID-19 pandemic and was continued over the last two years. Part of our work will be to cope with the effects of the COVID-19 pandemic and the war of Russia against the Ukraine, on our organization in terms of customer communication, IT security and risk management, and further to monitor and analyze the situation on a weekly basis on a local and a global level as well as taking actions to address and mitigate identified risks. The Stabilus business volume within the region, especially with Russia and the Ukraine has only a minor impact on the Group´s operating performance. However, the sanctions and the reduced availability of important manufacturing components (e.g., wiring systems) for the vehicle production influenced our customers business (e.g., temporarily plant closures of several OEMs, layers reduction and some cases of short-time work). In addition, Stabilus emphasizes a very strict monitoring of cost, liquidity as well as impairment risks. All employees are well informed about safety measures in business and private life and the further use of home offices reduces the risk of the virus spreading further.

We also refer to the Group Management Report and the audited consolidated financial statements as of and for the fiscal year ended September 30, 2021, for the general risk-related disclosures.

STABILUS QUARTERLY STATEMENT Q3 FY2022

As of July 28, 2022, there were no further events or developments that could have materially affected the measurement and presentation of the Group's assets and liabilities as of June 30, 2022.

OUTLOOK

Stabilus specified its fiscal year 2022 company outlook and raised its revenue forecast to approximately €1,070 million (previous: range of €940 million to €990 million) and confirmed the adjusted EBIT margin to approximately 14%, corresponding to around €150 million adjusted EBIT (previous: range of 14% and 15%, corresponding to around €140 million adjusted EBIT at midpoint). However, due to the COVID-19 pandemic and the geopolitical situation, i.e., the war of Russia against the Ukraine, an uncertainty further remains.

Luxembourg, July 28, 2022

Management Board

Dr. Michael Büchsner Stefan Bauerreis Mark Wilhelms Andreas Schröder Andreas Sievers

SUPPLEMENTARY FINANCIAL INFORMATION

as of and for the three and nine months ended June 30, 2022

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the three and nine months ended June 30, 2022 (unaudited)

Consolidated statement of comprehensive income				T_015
		Three months ended June 30,		Nine months ended June 30,
IN € THOUSANDS	2022	2021	2022	2021
Revenue	271,116	228,688	796,026	708,095
Cost of sales	(194,583)	(161,865)	(574,199)	(496,492)
Gross profit	76,533	66,823	221,827	211,603
Research and development expenses	(10,183)	(10,673)	(34,911)	(31,587)
Selling expenses	(22,132)	(20,057)	(63,301)	(61,200)
Administrative expenses	(10,892)	(9,551)	(31,059)	(30,506)
Other income	1,067	1,689	3,602	4,824
Other expenses	(172)	(783)	(230)	(2,357)
Income / (expense) from equity-accounted investments	170	–	127	–
Profit from operating activities	34,391	27,448	96,055	90,777
Finance income	5,709	174	9,310	581
Finance costs	(5,231)	(4,537)	(9,798)	(12,069)
Profit / (loss) before income tax	34,869	23,085	95,567	79,289
Income tax income / (expense)	(10,586)	(7,144)	(27,117)	(23,083)
Profit / (loss) for the period	24,283	15,941	68,450	56,206
thereof attributable to non-controlling interests	250	155	892	123
thereof attributable to shareholders of Stabilus	24,033	15,786	67,558	56,083
Other comprehensive income / (expense)
Foreign currency translation difference1)	11,971	597	26,715	9,496
Unrealized actuarial gains and losses2)	4,500	348	7,856	1,172
Other comprehensive income / (expense), net of taxes	16,471	945	34,571	10,668
Total comprehensive income / (expense) for the period	40,754	16,886	103,021	66,874
thereof attributable to non-controlling interests	30	(68)	(182)	(2,410)
thereof attributable to shareholders of Stabilus	40,724	16,954	103,203	69,284
Earnings per share (in €):
basic	0.97	0.64	2.74	2.27
diluted	0.97	0.64	2.74	2.27

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 June 30, 2022 (unaudited)

Consolidated statement of financial position T_016

IN € THOUSANDS	June 30, 2022	Sept 30, 2021
Assets
Property, plant and equipment	226,633	223,150
Goodwill	212,978	208,067
Other intangible assets	216,364	222,622
Equity-accounted and other investments	23,301	–
Other assets	619	1,182
Deferred tax assets	15,128	14,700
Total non-current assets	695,023	669,721
Inventories	164,710	136,890
Trade accounts receivable	170,723	136,686
Current tax assets	7,529	7,965
Other financial assets	602	601
Other assets	26,625	21,577
Cash and cash equivalents	134,986	193,189
Total current assets	505,175	496,908
Total assets	1,200,198	1,166,629

IN € THOUSANDS	June 30, 2022	Sept 30, 2021
Equity and liabilities
Issued capital	24,700	247
Capital reserves	201,395	225,848
Retained earnings	385,429	348,746
Other reserves	54	(35,591)
Equity attributable to shareholders of Stabilus	611,578	539,250
Non-controlling interests	4,720	5,087
Total equity	616,298	544,337
Financial liabilities	252,501	293,394
Other financial liabilities	26,935	29,795
Provisions	2,817	3,218
Pension plans and similar obligations	42,808	54,689
Deferred tax liabilities	52,315	47,704
Total non-current liabilities	377,376	428,800
Trade accounts payable	98,747	90,364
Financial liabilities	1,628	1,461
Other financial liabilities	21,322	18,972
Current tax liabilities	12,448	11,884
Provisions	47,182	49,265
Other liabilities	25,197	21,546
Total current liabilities	206,524	193,492
Total liabilities	583,900	622,292
Total equity and liabilities	1,200,198	1,166,629

Consolidated statement of financial position T_016

The accompanying notes form an integral part of these consolidated financial statements.

STABILUS QUARTERLY STATEMENT Q3 FY2022

CONSOLIDATED STATEMENT OF CASH FLOWS

for the nine months ended June 30, 2022 (unaudited)

Consolidated statement of cash flows T_017

		Nine months ended June 30,
IN € THOUSANDS	2022	2021
Profit / (loss) for the period	68,450	56,206
Income tax expense	27,117	23,083
Net finance result	489	11,487
Interest received	350	287
Net result from equity-accounted investments	(127)	–
Depreciation and amortization (incl. impairment losses)	51,083	47,195
Gains / losses from the disposal of assets	(70)	(170)
Changes in inventories	(27,820)	(27,187)
Changes in trade accounts receivable	(34,037)	(1,917)
Changes in trade accounts payable	8,383	8,903
Changes in other assets and liabilities	9,340	4,511
Changes in provisions	(3,537)	9,710
Income tax payments	(24,528)	(22,304)
Cash flow from operating activities	75,093	109,804
Proceeds from disposal of property, plant and equipment	296	653
Purchase of intangible assets	(12,682)	(11,817)
Purchase of property, plant and equipment	(18,309)	(17,638)
Acquisition of equity-accounted and other investments	(23,175)	–
Cash flow from investing activities	(53,870)	(28,802)
Receipts from financial liabilities	55,000	95,000
Receipts under credit facility	100,000	–
Payments for redemption of financial liabilities	(1,061)	(31,340)
Payments for redemption of senior facilities	(197,643)	(47,358)
Payments for lease liabilities	(6,071)	(6,034)
Dividends paid	(30,875)	(12,350)
Dividends paid to non-controlling interests	(185)	(641)
Payments for interest	(3,682)	(3,700)
Cash flow from financing activities	(84,517)	(6,423)
Net increase / (decrease) in cash and cash equivalents	(63,294)	74,579
Effect of movements in exchange rates on cash held	5,091	1,368
Cash and cash equivalents as of beginning of the period	193,189	162,431
Cash and cash equivalents as of end of the period	134,986	238,378

The accompanying notes form an integral part of these consolidated financial statements.

SEGMENT REPORTING

Segment information for the nine months ended June 30, 2022 and 2021 is as follows:

Segment reporting						T_018
	EMEA			Americas	APAC
	Nine months ended June 30,			Nine months ended June 30,	Nine months ended June 30,
IN € THOUSANDS	2022	2021	2022	2021	2022	2021
External revenue1)	348,737	358,187	270,088	244,182	177,201	105,726
Intersegment revenue1)	24,897	22,280	22,952	18,301	211	172
Total revenue1)	373,634	380,467	293,040	262,483	177,412	105,898
Depreciation and amortization (incl. impair ment losses)	(26,356)	(25,550)	(12,767)	(11,562)	(8,467)	(6,590)
EBIT	33,390	45,645	31,535	31,963	34,623	16,662
Adjusted EBIT	37,658	50,019	34,069	34,316	34,743	16,776
	Total segments Nine months ended June 30,			Other / Consolidation Nine months ended June 30,	Stabilus Group Nine months ended June 30,
IN € THOUSANDS	2022	2021	2022	2021	2022	2021
External revenue1)	796,026	708,095	–	–	796,026	708,095
Intersegment revenue1)	48,060	40,753	(48,060)	(40,753)	–	–
Total revenue1)	844,086	748,848	(48,060)	(40,753)	796,026	708,095
Depreciation and amortization (incl. impair ment losses)	(47,590)	(43,702)	(3,493)	(3,493)	(51,083)	(47,195)
EBIT	99,548	94,270	(3,493)	(3,493)	96,055	90,777
Adjusted EBIT	106,470	101,111	–	–	106,470	101,111

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

ADDITIONAL INFORMATION

FINANCIAL CALENDAR

Financial calendar T_019

DATE 1)2)	PUBLICATION / EVENT
August 1, 2022	Publication of the third-quarter results for fiscal year 2022 (Quarterly Statement Q3 FY2022)
November 11, 2022	Publication of preliminary financial results for fiscal year 2022
December 9, 2022	Publication of full year results for fiscal year 2022 (Annual Report 2022)
January 30, 2023	Publication of the first-quarter results for fiscal year 2023 (Quarterly Statement Q1 FY2023)
February 15, 2023	Annual General Meeting
May 2, 2023	Publication of the second-quarter results for fiscal year 2023 (Interim Report Q2 FY2023)
July 31, 2023	Publication of the third-quarter results for fiscal year 2023 (Quarterly Statement Q3 FY2023)
November 10, 2023	Publication of preliminary financial results for fiscal year 2023
December 8, 2023	Publication of full year results for fiscal year 2023 (Annual Report 2023)

1) We cannot rule out changes of dates. We recommend checking them on our website in the Investors / Financial Calendar section (www.stabilus.com/investors/financial-calendar).

2) Please note that our fiscal year (FY) ends in September, e.g., the fiscal year 2023 comprises a twelve-month period from October 1, 2022 until September 30, 2023.

DISCLAIMER

Forward-looking statements

This quarterly statement contains forward-looking statements that relate to the current plans, objectives, forecasts and estimates of the management of Stabilus SE (formerly Stabilus S. A.). These statements take into account only information that was available up to and including the date that this quarterly statement was prepared. The management of Stabilus SE (formerly Stabilus S. A.) makes no guarantee that these forward-looking statements will prove to be right. The future development of Stabilus SE (formerly 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 SE (formerly 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 SE (formerly 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 quarterly statement.

Rounding

Certain numbers in this quarterly statement 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 quarterly statement. All percentage changes and key figures in the quarterly statement were calculated using the underlying data in millions of euros rounded to one decimal place (€ millions).

INFORMATION RESOURCES

Further information including news, reports and publications can be found in the Investors section of our website at www.stabilus.com/investors.

Investor Relations

Phone: +352 286 770 21 Fax: +352 286 770 99 Email: investors@stabilus.com

W W W. S T A B I L U S . C O M

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