Vitesco Technologies Group AG

Investor Presentation • Aug 10, 2023

VITESCO TECHNOLOGIES

Q2 2023 RESULTS

Regensburg, 10.08.2023

Public

DISCLAIMER

This presentation may contain forward-looking statements, estimates, opinions and projections with respect to anticipated future performance of Vitesco Technologies Group AG. These forward-looking statements can be recognized by terms such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", "will" or words with similar meaning. Vitesco Technologies Group AG has made such forward-looking statements on the basis of the information available to it and assumptions it believes to be reasonable. The forward-looking statements and information may involve risks and uncertainties, and actual results may differ materially from those forecasts. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Any forward-looking statements included herein only speak as at the date of this presentation. Vitesco Technologies Group AG does not assume any obligation to update such forward-looking statements and to adapt them to future events or developments.

This presentation includes certain financial measures such as EBIT, adjusted EBIT, adjusted EBITDA, order intake or net debt, which are not defined by International Financial Reporting Standards (IFRS). These alternative performance measures should be considered in addition, but not as a substitute for the information prepared in accordance with IFRS. Alternative performance measures are not subject to IFRS or other generally accepted accounting principles. Other companies that report similarly titled alternative performance measures may calculate them differently. An explanation of the alternative performance measures can be found in the annual report of Vitesco Technologies Group AG. Rounding differences may occur.

This presentation is for information purposes only. It is not intended to constitute investment advice or an offer to sell, or a solicitation to buy, any securities.

AGENDA OF CONFERENCE CALL ON THE Q2 2023 RESULTS

ANTICIPATED GRADUAL IMPROVEMENT UNDERLINES OUR RESILIENCE IN A STILL CHALLENGING ENVIRONMENT

STRATEGIC INITIATIVES ACCELERATE OUR TRANSFORMATION AND SECURE FURTHER GROWTH POTENTIAL

Supplier Partnerships¹ ICE Divestments²

1

Securing silicon carbide (SiC) supply capacity of almost €3 billion to enable anticipated enormous growth in electrification

• Further diversification of supplier base regarding future production capacity of important SiC components
• Access to key semiconductor technology from onsemi by investing in production capacity and signing a long-term supply agreement
• Already existing development partnership with Rohm further intensified with additional supply agreement

Significant progress in ramping down selected ICE technologies to further strengthen our focus on Electrification and Core ICE technologies

• More than 10 transactions including divestures in the field of ICE technologies completed²
• Divested businesses amounting to €500 million yearly sales² in total – fully effective from FY 2024 onwards
• About 2,000 employees are affected by these transactions and will thus have a new home with a better strategic fit outside our company
• The above stated divestments will further accelerate our phase out of still existing Non-Core ICE sales

STRONG RECOVERY DESPITE HEADWINDS IN A CHALLENGING MARKET ENVIRONMENT

Vitesco Technologies Group (€ mn)

	Q2 2022	Q2 2023	Delta
Sales	2,165.0	2,441.6	276.6
% growth	3.3%	12.8%	9.5pp
Adj. EBIT	34.9	76.3	41.4
% margin	1.6%	3.1%	1.5pp
EBIT	28.7	16.4	-12.3
% margin	1.3%	0.7%	-0.6pp
Capex1	112.5	92.8	-19.7
% of sales	5.2%	3.8%	-1.4pp
Free Cash Flow	1.6	-20.6	-22.2
% margin	0.1%	-0.8%	-0.9pp
Equity Ratio	40.4%	38.9%	-1.5pp

Highlights and Recent Developments
Sales Double digit top line growth despite the planned ramp-down of Non-Core businesses
Adjusted EBIT Compensation agreements by customers contribute to overall improved profitability
Capex Capex remains at Q1 2023 levels and is anticipated to trend towards the 5% to 6% levels
Free Cash Flow Continuously high working capital intensity results in negative free cash flow
Equity Ratio Remains at a very solid level

CORE BUSINESS CONTINUES TO OUTPERFORM LIGHT VEHICLE PRODUCTION

Light Vehicle Production Year-on-Year Growth Rates (in %) ¹ (mn units)

	Q2 2023 Production	Q2 ∆ YoY
Europe	4.4	+14.3%
North America	4.1	+14.8%
China	6.7	+20.5%
Rest of World	6.8	+12.2%
Worldwide	22.0	+15.5%

• Strong light vehicle production recovery worldwide, especially in China followed by North America and Europe

• Acceleration in global inventory restocking driven by higher demand expectations in the future

• Highlights and Comments - Market Highlights and Comments - Vitesco Technologies

• Electrification and Core ICE significantly outperforms the market while Non-Core sales decreased according to plan
• Vitesco Technologies' sales in Asia, especially in China, contributed the most YoY growth

ON TRACK TO DELIVER ON FULL YEAR GUIDANCE

POWERTRAIN SOLUTIONS DIVISION SHOWS FURTHER IMPROVEMENT IN TOP AND BOTTOM LINE DEVELOPMENT

ELECTRIFICATION SOLUTIONS DIVISION ACHIEVES STRONG TOP LINE DEVELOPMENT

ELECTRIFICATION AND CORE ICE BUSINESS WELL ON TRACK FOR ACHIEVING OUR MID-TERM TARGETS

• Sales growth of ~50% due to ramp-ups of new products
• Further increasing volumes support adj. EBIT margin improvement
• Slight outperformance compared to global light vehicle production
• Incremental margin of 27.4% in Core ICE excluding Electrification
• Decrease in Non-Core progressing according to plan
• Prior year Q2 operating result benefitted from release of provisions

CASH FLOW BURDENED BY WORKING CAPITAL AND CONTINUED HIGH INVESTMENTS

OUR EQUITY RATIO AND NET DEBT CONTINUE TO DEMONSTRATE OUR STRONG AND SOLID BALANCE SHEET

• Working capital intensity within anticipated mid-term range of 5% to 6%
• Increase in net working capital mainly driven by higher A/R Net debt/LTM adj. EBITDA ratio remains at solid level and demonstrates comfortable liquidity situation
• Equity ratio remains at very solid level at around 39%

WE RECONFIRM OUR GUIDANCE AND MARKET OUTLOOK FOR FY 2023

Vitesco Technologies Group (€ mn)
	2022	2023E
Sales	9,070	9,200 to 9,700
Adj. EBIT Margin	2.5%	2.9% to 3.4%
Capex1 Ratio	4.9%	5% to 6%
Free Cash Flow	123	~50

Market Outlook
China		~0% to 2% Prev: ~1% to 3%
Europe		~7% to 9% Prev: ~5% to 7%
NA		~6% to 8% Prev: ~5% to 7%
RoW		~3% to 5% Unchanged
World		~3% to 5% Unchanged

Light Vehicle Production Forecast for changes of FY 2023 production compared to FY 2022 based on S&P Global Mobility, Light Vehicle Production Forecast as of 07/2023. Adj. EBIT before amortization of intangibles from PPA, consolidation and special effects. Free Cash Flow defined as Operating Cash Flow plus Investing Cash Flow. | 1 Capex excluding right of use assets (IFRS 16).

CONTACT OUR INVESTOR RELATIONS TEAM

Heiko Eber

Head of Investor Relations Phone: +49 941 2031-72348 Email: heiko.eber@vitesco.com

Jens von Seckendorff

Senior Manager Investor Relations

Phone: +49 941 2031-6381 Email: jens.von.seckendorff@vitesco.com

Gagan Sehgal

Manager Investor Relations

Phone: +49 941 2031-3099 Email: garish.gagan.sehgal@vitesco.com

UPCOMING EVENTS

Corporate Events

Quarterly Report 9M/Q3 2023
November 14, 2023

٠. L.

Preliminary Figures 2023
February 2024

┪══┥┑	Annu
)	March

Annual Report FY 2023 March 2024

Service Service

Roadshow London August 11, 2023

and the state of the state of the state of the state of the state of the state of the state of the state of th	Service Service

dbAccess IAA Cars, Munich September 5, 2023

and the state of the state of the state of the state of the state of the state of the state of the state of th

Commerzbank & ODDO BHF, Frankfurt, September 6, 2023

CITIC CSLA Forum, Hongkong September 12, 2023

Quirin Conference, Helsinki September 12, 2023

THANK YOU