KLINGELNBERG AG
Binzmühlestrasse 1718050 Zürich, Switzerland

Media Release

KLINGELNBERG Group: “Crisis successfully mastered"

Order intake significantly above previous year
Opportunities of the wind power boom exploited – positions in electromobility expanded
Free cash flow rises sharply – EBIT significantly improved
Measures to increase efficiency take effectInvestment project progressing according to plan
New financial year starts with high order backlog

Zürich/Switzerland, 23 June 2021 – The KLINGELNBERG Group (SIX: KLIN), a leading global
manufacturer of high-tech gear technology for a wide range of industries, has successfully
mastered the past year, which was marked by external crises. The company was able toachieve increases in almost all relevant key figures, in some cases even significantly.
Despite the ongoing Coronavirus crisis, KLINGELNBERG was able to clearly exceed theorder intake figures of the previous year. At the same time, KLINGELNBERG was able toimprove the operating result (EBIT) by EUR 7,2 million to EUR -11,6 million, despite adecline in net sales of EUR 53,4 million.
In the 2020/21 financial year, the economic effects of the coronavirus crisis have hit the global
mechanical engineering industry. As reported, KLINGELNBERG could also not wholly escape thisdevelopment. However, KLINGELNBERG countered this development at an early stage and with ahigh level of commitment from the entire company with a comprehensive efficiency enhancement
program on the one hand, and with the consistent exploitation of opportunities that arose in theglobal markets on the other.
Several factors influenced the company’s performance in the past financial year:
In addition to the uncertainty in the automotive industry as a result of legislative
communications and discussions about future technologies, particularly in Europe, thecoronavirus crisis also affected the company. Investments by industrial customers werepostponed until further notice, and planned investments in machines for combustion
technology were often canceled or questioned. But also, investments in capacities forelectromobility were initially not made.

Supply chains were under pressure due to COVID-19, as were the logistics for deliveringmachines.
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The major regions developed very differently economically. Reliable forecasts wereimpossible.

The high level of commitment and the implementation of the Efficiency Enhancement Program
were clearly showing positive results. After a weak first half of the financial year –KLINGELNBERG’s financial year runs from 01 April to 31 March – KLINGELNBERG was able toleave the negative development path and break out in a more positive direction in the second halfof the financial year. Order intake for the entire financial year rose by EUR 21,0 million fromEUR 194,5 million to EUR 215,5 million. The order backlog reached EUR 157,7 million and ranged
thus EUR 57,0 million higher than the comparative figure for the previous year of EUR 100,7million – an increase of more than 50%. Cash flow from operating activities rose by EUR 9,8million from EUR 2,2 million in the previous financial year to EUR 7,6 million; the free cash flow ofEUR 7,3 million was EUR 13,8 million higher than the previous year's figure of EUR -6,5 million.
KLINGELNBERG is traditionally solidly and stably financed. Despite the crises KLINGELNBERG
was able to improve its net debt from EUR -8,7 to EUR -15,5 million. The equity ratio rose byalmost 2 percentage points to the remarkably high level of 55,6%.
Jan Klingelnberg, CEO of the KLINGELNBERG Group said: “It has once again proven a
successful strategy to be diversified across all relevant industries and to be positioned worldwide,
while competing for orders with a high level of entrepreneurial commitment. Only in this way was it
possible to participate in the rapid recovery in Asia, especially in China, while at the same timecompensating for losses in the automotive market by expanding our position in the dynamicallygrowing market for renewable energies. As a result, we were able to win substantial ordervolumes, particularly in the final months of the financial year. In individual months, order intake
even reached the highest levels in the history of our company. That is certainly anything but selfevident in the current environment.”
Klingelnberg continued: We improved cash positions and further developed our position in eMobility and renewable energies. We have pushed ahead with the Efficiency Enhancement
Program and successfully entered new markets. And we have continued to innovate, despite all
the pressure. We have every reason to look to the future with confidence. We have mastered thepandemic in an impressive manner so far and with full order books are entering what we hope will
be a successful 2021/22 financial year.”Management and the Board of Directors will propose to the Annual General Meeting on
24 August 2021 that no dividend will be paid for the 2020/21 financial year. Thereby, the company
remains true to its principle of giving shareholders an above-average share in the company's
success when the results are good, while at the same time not weakening the company's
substance, for example by distributing dividends that have not been actually earned.
KLINGELNBERG AG, with its strategy geared towards solidity and sustainability, is convinced that
this is in the best interests of its shareholders. At the same time, this puts the company in an evenbetter position to finance its strong growth largely from its own resources.
KLINGELNBERG expects the good development to continue in the years to come and is investing
in its future – amongst other things with the construction of a new hall for the production ofmachines for the wind power sector at its Hückeswagen site, where we will invest a total ofEUR 20 million. With these investments KLINGELNBERG wants to ensure that the company
participates disproportionately in the growth of important sectors. Meanwhile, KLINGELNBERG isalso pushing ahead with assembly and production flexibilization and is quickly and sustainably
gearing them towards the rapidly growing demand for large wind turbines. KLINGELNBERG seesPage 2 of 3

itself well equipped for the future. CEO Jan Klingelnberg: “Our grinding machines for the wind
power industry are appreciated and in demand by our customers worldwide. Our integrated
solutions for e-Mobility are highly popular – together with our partners, we are working to meet theever-increasing demands of this highly sophisticated emerging market.”
The complete Annual Report for the 2020/21 financial year of the KLINGELNBERG Group isavailable on the company’s website at https://www.klingelnberg.com/en/investors/financialreports/.

Contact:
Jan Klingelnberg / Christoph KüsterKLINGELNBERG AGBinzmühlestrasse 1718050 Zürich, Switzerlande-mail: investorrelations@klingelnberg.com
Phone: +41 44 278 7940

About KLINGELNBERG
Founded in 1863, KLINGELNBERG is one of the leading companies in the global gear industry. The company
develops and builds machines for the production of bevel and cylindrical gears, measuring centers for axiallysymmetric workpieces of all kinds, including high-precision transmission components to customer specifications. With
headquarters in Zürich, Switzerland, and more than 1.000 employees, KLINGELNBERG operates development andproduction facilities in Zürich (Switzerland), Hückeswagen and Ettlingen (Germany) and is represented by sales andservice subsidiaries in Germany, Switzerland, France, Italy, Spain, Japan, India, China, Brazil, the USA and Mexico.
KLINGELNBERG 's shares are listed on the SIX Swiss Exchange (KLIN).

Disclaimer
This release contains forward-looking statements that may involve certain risks, uncertainties and changes that are notforeseeable and beyond the control of the KLINGELNBERG Group. Therefore, the KLINGELNBERG Group does notmake any representations regarding the correctness of such forward-looking statements, their effect on the financial
situation of the KLINGELNBERG Group or the market in which shares and other securities of the KLINGELNBERG
Group are traded.
Furthermore, this release contains alternative performance indicators that are not defined or listed in the applicable,
recognized accounted standard (Swiss GAAP FER).
These non-Swiss GAAP-FER financial measures have limitations as analytical tools and should not be viewed asindicators of, or alternatives to, the Group’s results or any performance or liquidity measures under Swiss GAAP FER, as
set forth in its consolidated financial statements. The non-Swiss GAAP FER financial measures should therefore beconsidered as supplementary information to, and read only in conjunction with, the consolidated financial statements of theGroup. Since not all companies compute these or other non-Swiss GAAP FER financial measures in the same way, themanner in which the KLINGELNBERG Group’s management has chosen to compute the non-Swiss GAAP FER financial
measures presented herein may not be comparable with similarly defined terms used by other companies. As a result, you
are cautioned not to place undue reliance on any non-Swiss GAAP FER financial measures and ratios included herein.

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