Press release
Stuttgart, April 16, 2024

MAHLE turns the tide
• MAHLE achieves record sales of €12.8 billion in 2023
• Operating profit increased, group result is positive• CEO Arnd Franz: “MAHLE has managed to reverse the trend. We are on theupswing. We are heading in the right direction!”• Growing acquisition successes in e-mobility• Strategy MAHLE 2030+ paying off• Focus on core products in electrification, thermal management andsustainable combustion engines
The automotive supplier MAHLE has reversed its business trend. Despitedifficult global conditions and rising costs, the company closed the 2023
financial year with record sales and is back in the black. Sales increasedorganically – adjusted for exchange rate effects – by 8.2 percent to €12.8billion. Operating profit (EBIT) rose from €60 million to €304 million. Thegroup result was positive at €26 million. “2023 was an important year forMAHLE,” said Arnd Franz, Chairman of the Management Board and CEO, at
the company’s annual press conference on Tuesday. “We have a strong
market position in our core products and, thanks to our innovations in emobility, growing acquisition successes in this sector as well. We are on
the upswing. Even though we have another highly volatile year ahead of us.
We are heading in the right direction.” The reorientation of the group, aspart of the strategy MAHLE 2030+ toward the three strategic areas ofelectrification, thermal management, and sustainable combustion engines,
is paying off, Franz said. MAHLE has consistently worked on improving its
earning power and adjusting its portfolio. Examples of this include thegroup’s divestiture of its 50 percent stake in the joint venture BHTC, andthe sale of its original equipment business with thermostats.
“We will continue along this path in 2024. The goal is to continuously improve ourprofitability through – for example – excellence initiatives in purchasing,production, sales, and administration,” said Markus Kapaun, member of theManagement Board of the MAHLE Group and CFO.
All business units and world regions contributed to the growth in sales. In Europeand North America in particular, the business units primarily connected to thePage 1 of 5

internal combustion engine grew significantly. The sales of engine systems andcomponents grew by 9.3 percent globally, adjusted for exchange rate effects, to€2.6 billion. The Filtration and Engine Peripherals business unit reported sales
growth of 9.7 percent, adjusted for exchange rate effects, to €2.1 billion. The
Aftermarket business unit also recorded impressive results. Its sales grew by 22percent, adjusted for exchange rate effects, to €1.3 billion.
Electrification is MAHLE topic of the future
MAHLE now generates over 60 percent of its sales from technologies andproducts not directly related to passenger car combustion engines. Accordingly,business units strongly associated with electrification grew sales: the Electronics
and Mechatronics business unit increased its sales slightly to €1.4 billion, and theThermal Management business unit grew by 4.1 percent to €4.6 billion, adjusted
for exchange rate effects. Still, both business units felt that sales of batterypowered electric vehicles were not yet as robust as planned. MAHLE ispositioning itself to meet increasing demand. To this end, the company continued
to expand its product portfolio for electric vehicles in thermal management, andwill manufacture new products such as air conditioning systems and battery
cooling plates at its European locations.
“Electrification is the topic of the future. Our focus is on electric drives andintelligent charging. We are doing everything we can to make e-mobility more
attractive and more affordable,” Franz said. With a new technology kit for electricmotors, MAHLE offers drives for passenger cars and commercial vehicles that
efficiently and consistently deliver high peak performance without requiring rareearths. Further, the new automated positioning system from MAHLE has beendeclared the global standard for wireless charging of electric vehicles. MAHLE
also recently received two major orders for its new thermal management module,with an order volume totaling just under €1.5 billion. The modules combine a
number of components for heating and cooling various systems in the vehicle. In
addition to smaller installation spaces and drastically reduced assembly efforts
and expenditures, the modular approach enables significantly more efficiency.
This approach can increase the cruising range of an electric car by up to 20percent, as well as markedly improving charging speed. In total, 2023 was a
successful acquisition year, with new orders totaling a volume of more than €10.5billion.
In financial year 2023, MAHLE research and development expenses increased to€673 million. This amounted to 5.3 percent of sales and resulted in 341 newpatent applications, as well as 502 inventions. 70 percent of patent applications
were related to electrification.

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Diversified group financing ensures flexibility and independence
The company’s financing is on a solid and diversified basis. “In order to ensurefinancial flexibility and independence, we have broadly positioned group financing
and continue to work on the diversification and management of maturities,” said
Kapaun. In February 2024, MAHLE signed a new syndicated loan agreement for€1.6 billion, thereby securing a future-oriented capital structure. The new
syndicated loan prematurely replaces the previous loan due in 2025 and consistsof a revolving ESG-compliant credit line of €1.2 billion as well as another loan for€400 million.
Appropriate political and regulatory framework are vital“As a foundation-owned company, social participation and respect for people andthe environment form core MAHLE values. For this reason, like other companies,
we require the right framework conditions,” Franz said. This is why the European
Parliament election in June will play a central role for MAHLE. In the next
legislative period, MAHLE hopes for a strong industrial policy focused oncompetitiveness and location conditions. “We advocate a fact-based policy that
does not rely on bans in technology, but rather on diversity,” the CEO continued.
Franz renewed his call for a multi-path strategy for drives, such as those Japan,
China and North America are already pursuing. “We need responsible regulatory
action that is aligned with reality – not only so firms can work in a future-proof
and profitable way, but also so that the industry can play an active part in shaping
the coming employment and social ramifications of the technologicaltransformation.”
MAHLE intensified its dialogue with employees and employee representatives in
the 2023 financial year. For example, the company agreed with employee
representatives on a future collective bargaining agreement to make the German
locations competitive in the long term. The number of employees remained
stable, at just under 72,500 worldwide in 2023.

Key figures relative to the same period in the previous year
Sales (in million euro)2022
12,4342023
12,818EBIT (in million euro)

60

304

EBIT margin (in percent)

0.5

2.4

Group result (in million euro)
Equity (in million euro)

-332
1,677

26
1,611

Employees1 (number)

71,947

72,373

1 reference date: 12/31.

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The 2023 Annual Report can be found on the MAHLE website athttps://annualreport.mahle.com/en.

Editor’s note: For this press release, you will find photo material and an accompanying
audio statement at https://newsroom.mahle.com/press/en.
Copyright: MAHLE Group

Arnd Franz, Chairman of theManagement Board of the MAHLE
Group and CEO.

Markus Kapaun, Member of theManagement Board of the MAHLE
Group and CFO.

The MAHLE positioning system has
become the global standard.

With the new technology kit for electricmotors, MAHLE is combining theadvantages of its benchmark products
SCT and MCT for the first time.

Nature as an example: With its newbionic cooling plate, MAHLE has
achieved a leap in technology.

The MAHLE thermal management
module enables up to 20 percent morecruising range, less installation space,and lower systems costs.

Battery diagnostic solution for electricvehicles: E-HEALTH Charge combines
charging and diagnostics and provides
reliable information about the “health” ofthe high-voltage battery.

At its hydrogen testing center inStuttgart, MAHLE tests hydrogenengines and fuel cells.

MAHLE Powertrain operates a state-ofthe-art development center for battery
technologies in Stuttgart.

Page 4 of 5Contact persons in MAHLE communications:
Manuela Hoehne
Head of Corporate Communications & Marketing
Phone: +49 711 501-12506
E-Mail: manuela.hoehne@mahle.com
Ingo Schnaitmann
Head of Media Relations
Phone: +49 711 501-13185
E-Mail: ingo.schnaitmann@mahle.com

About MAHLE
MAHLE is a leading international development partner and supplier to the automotive industry with customers in both passenger
car and commercial vehicle sectors. Founded in 1920, the technology group is working on the climate-neutral mobility oftomorrow, with a focus on the strategic areas of e-mobility and thermal management as well as further technology fields toreduce CO2 emissions, such as fuel cells or highly efficient, clean combustion engines that also run on synthetic fuels orhydrogen. Today, one in every two vehicles globally is equipped with MAHLE components.
MAHLE generated sales of almost 13 billion euro in 2023. The company is represented with almost 72,500 employees at 148
production locations and 11 technology centers in 29 countries. (Last revised: 12/31/2023)#weshapefuturemobility

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