KLINGELNBERG AG
Binzmühlestrasse 1718050 Zurich, Switzerland

Press Release

KLINGELNBERG Group with successful first half year

Net sales rise
EBIT increases compared to last year’s period
Outlook for the full year confirmed

Mio. EUR
Net sales
Operating result(EBIT)
Operating result(EBIT),
adjusted without
one-time
IPO-cost

01.04.2018 30.09.2018
99,101.04.201730.09.2017
76,4

Change+22,701.04.201731.03.2018
257,0-4,7-5,5+0,922,1-3,7-5,5+1,922,8Zurich, 6 November 2018 – The KLINGELNBERG Group, one of the world's leading
manufacturers of advanced gear technology for a wide range of industries, hascompleted a successful first half year. The Group's financial year runs from April 1 toMarch 31 of the following year. In the first six months of the 2018/19 financial year,
Klingelnberg was able to increase net sales by around 30 %. The company also recorded
a significant increase in EBIT. Almost all areas of the company showed positive
developments. For the full business year, the company confirms the outlook it
communicated at the time of its IPO.
Demand situation remains positive
Overall, the diverse range of customers of the Klingelnberg Group experience very healthymarket conditions. In particular, the demand for premium products remains high, which isexactly what the Group develops, manufactures, delivers and provides service for in the field.
Klingelnberg was able to significantly increase its net sales in the first half of the financial year
by around 30 % compared to the previous financial year (increase from EUR 76,4 million toEUR 99,1 million). The company also succeeded in improving its adjusted operating income(EBIT), excluding one-off IPO costs (approximately EUR 1,0 million), by approximately EUR+1,9 million compared to the previous year.

Page 1 of 3

"Organic growth was in line with our ambitious expectations," says Jan Klingelnberg, CEO of theGroup. "Our strategy of concentrating on high-quality solutions for globally demanding customer
has once again proven to be right and we were able to consequently execute it. With theexception of drive technology, every division was able to increase its half-year sales, in somecases significantly, compared to the same period of the previous year. We are making very good
progress in broad-based digitization. The much-used term 'Industry 4.0' is part of our businessreality," according to Klingelnberg.
The cylindrical gear division reported especially strong sales growth (EUR 12,8 million,+214 %). Net sales in the measuring devices division also grew by +22 % year over year, toEUR 30,1 million. The bevel gear machine segment recorded +11% growth to EUR 41,0 million
in the first half of the year.
”Our global presence brings us close to our customers worldwide. With this setup we are able tocompensate for regional fluctuations and take advantage of growth opportunities wherever theyoccur.” said Jan Klingelnberg
Regionally, sales performance was very positive, especially in Asia, Europe and SouthAmerica, while in North America it was not possible to fully match the previous year’s sales.
"Despite the tight procurement market, caused by full capacity utilization, which posessignificant challenges for our entire industry, we were able to maintain our production
schedule and deliver on time. In times like these, we consider this to be an excellent
achievement which was made possible by a close corporation and long-term relationships
with our supply-base." says Klingelnberg.
Focus on organic growth, acquisitions under consideration
In addition to focusing on organic growth, the company is also looking at additional bolt-onacquisitions. The potential acquisition targets are predominantly privately owned companies.
Establishing a sound relationship is therefore fundamental and makes it difficult to estimate
the specific timing of future deals
Business performance trends
The standard intra-year seasonal trends of recent years can also be seen in this year’s businessperformance. In general, approximately 30 % – 40 % of total sales are generated in the first halfof the year. In the second half of the year, Klingelnberg expects stronger sales and, as a result,a substantial increase in profits too.
The Board of Directors and management of the Group are confident that the company willachieve the bandwidth targets for sales and earnings in the 2018/19 financial year as
guided at the IPO (net sales EUR 270 to 280 million, adjusted operating result
EUR 29 to 30 million).
The complete KLINGELNBERG Group half-year report for the 2018/19 financial year is available
online at www.klingelnberg.com/en/investors/financial-reports/.

Page 2 of 3

Contact:
Jan Klingelnberg / Christoph KüsterKLINGELNBERG AG
Binzmühlestrasse 1718050 Zurich, Switzerland
E-mail: investorrelations@klingelnberg.com
Tel.: +41 44 278 7940

About Klingelnberg
Founded in 1863, Klingelnberg is a world leader in the gear cutting industry. The company develops and produces
machines for manufacturing of bevel and cylindrical gears, measuring centers for axially symmetrical objects of alltypes, as well as high-precision gear components. With headquarters in Zurich, Switzerland, and around 1.300
employees, Klingelnberg operates development and production facilities in Zurich (Switzerland), Hückeswagen andEttlingen (Germany) and Győr (Hungary) and is represented with sales and service offices in Germany, Switzerland,Hungary, France, Italy, Spain, Japan, India, China, Brazil, the United States and Mexico. Klingelnberg shares arelisted on the SIX Swiss Exchange (KLIN).

Disclaimer
This press release may include forward-looking statements. These statements are based on current expectations,estimates and projections about the factors that may affect our future performance, including global economicconditions as well as the economic conditions of the regions and industries that are major markets for Klingelnberg.
However, readers are cautioned that any such forward-looking statements are not guarantees of future performanceand involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking
statements as a result of various factors. Except as otherwise required by law, Klingelnberg disclaims any intention orobligation to update any forward-looking statements as a result of developments occurring after the date of this press
release.

Page 3 of 3