KLINGELNBERG AG
Precision gearing champion with Swiss and German heritage

Presentation forAnalysts and Investors
Financial Report 2023/24
Zürich, June 2024

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Presentation for Analysts and Investors  Slide 2

June 2024

Disclaimer
This presentation may contain specific forward-looking statements, e.g., statements including terms like "believe", "assume","expect", "forecast", "project", "may", "could", "might", "will" or similar expressions. Such forward-looking statements are subject toknown and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actualresults, financial situation, development or performance of Klingelnberg Group and those explicitly or implicitly presumed in thesestatements. Such factors include, but are not limited to, future global economic conditions, changed market conditions,competition from other companies, effects and risks of new technologies, costs of compliance with applicable laws, regulations
and standards, diverse political, legal, economic and other conditions affecting markets in which the Klingelnberg Group operates,and other factors beyond its control. Against the background of these uncertainties, readers should not rely on forward-looking
statements. Klingelnberg Group assumes no responsibility to up-date forward-looking statements or to adapt them to future
events or developments.
This presentation may contain certain measures that are not measures defined by Swiss GAAP FER. These non-Swiss GAAP
FER financial measures have limitations as analytical tools and should not be viewed as indicators of, or alternatives to, theGroup’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 be considered as supplementary information to, andread only in conjunction with, the consolidated financial statements of the Group. Since not all companies compute these or othernon-Swiss GAAP FER financial measures in the same way, the manner in which the Klingelnberg Group’s management haschosen to compute the non-Swiss GAAP FER financial measures presented herein may not be comparable with similarly definedterms 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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Presentation for Analysts and Investors  Slide 3

June 2024

Agenda1

Introduction and key facts

2

Financial results

3

Outlook

4Q&A

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Presentation for Analysts and Investors  Slide 4

June 2024

1 Key facts 2023/24

1

Highest order intake in the Company’s history for the thirdtime in a row

2

Order intake increased by EUR 11,0 million (+3,7%) to
EUR 311,4 million

3Net sales of EUR 303,5 million

4

EBIT amounted to EUR 25,1 million

5EBIT Margin at 8.3%

6

Positive outlook for the 2024/25 financial year

7BoD proposes dividend of CHF 0,50 per share to AGM

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Presentation for Analysts and Investors  Slide 5

June 2024

2 New record for order intake
KLINGELNBERG Group – Sales and orders (in €m)

Net sales

Order intake

350,0350,0300,0300,0250,0250,0200,0200,0309,0150,0100,0212,150,0158,7158,6

2020/212021/22

303,5150,0100,0215,5

2019/20

2020/21300,4311,4

2021/222022/232023/2450,00,00,02019/20

2022/232023/24

Order backlog
350,0

▪

In the 2023/24 financial year, theKLINGELNBERG Group generated net sales
from goods and services of EUR 303,5 million,exceeding the EUR 300 million mark for thesecond time in a row.

▪

Order intake increased by EUR 11,0 million
compared to the previous financial year setting
another record with a total value ofEUR 311,4 million.

300,0250,0200,0150,0268,0100,050,0194,5268,9100,7259,6267,52022/23

2023/24

157,70,0
2019/20KLINGELNBERG Tradition

2020/212021/22EXPERT PRECISION

Presentation for Analysts and Investors  Slide 6

June 2024

2 Stable sales performance in a challenging global market
KLINGELNBERG Group – Sales (in €m)
Net sales split by…
(2023/24)

CAGR+38,3%
309,0machines and services

303,526%

78,5

77,7

303,574%

158,6
sales region

59,8230,5

225,856%13%
303,598,92021/222022/23

Net sales from machines

Net sales from services, tools and fixtures

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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31%

2023/24
EMEA

Americas

APAC

Presentation for Analysts and Investors  Slide 7

June 2024

2 Bevel Gear segment continued with high order intake
KLINGELNBERG Group – Bevel Gears development (in €m)
Net sales

Order intake

Nettoumsatz

CAGR
Auftragseingang
0,6%

CAGR
22,4%

111,3
89,1

86,4

83,4

87,5

2023/242021/222022/232023/2459,52021/222022/23

Order backlog

CAGR
Auftragsbestand-18,9%▪

The Bevel Gear segment generated net sales ofEUR 89,1 million at the end of the 2023/24 financialyear – a year-on-year decline in sales ofEUR 22,2 million (-19,9%).

▪

At the end of the financial year, order intake totaled
EUR 87,5 million, which is around EUR 4,1 million
higher than in the same period of the previous
financial year.

86,4
58,5

2021/222022/2356,82023/24

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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Presentation for Analysts and Investors  Slide 8June 2024

2 Cylindrical Gear continued to show strong growth in all areas
KLINGELNBERG Group – Cylindrical Gears development (in €m)
Net sales

Order intake

Nettoumsatz

CAGR
Auftragseingang
19,0%

CAGR
52,2%

93,1

95,7

2022/232023/24

104,6

111,0

2022/232023/24

78,3

41,3

2021/222021/22

Order backlog

CAGR
Auftragsbestand
11,8%

107,5

2021/22119,12022/23▪

The Cylindrical Gear segment recorded an increase in
net sales of EUR 2,7 million to a total ofEUR 95,7 million in the past 2023/24 financial year.

▪

The very positive trend in order intake in the first halfof the 2023/24 financial year continued in the second
half of the financial year. Compared to the previous
financial year, growth of EUR 6,3 million to a total of
EUR 111,0 million was achieved, setting anotherrecord in this segment.

134,32023/24

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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Presentation for Analysts and Investors  Slide 9June 2024

2 A further record order intake was achieved
KLINGELNBERG Group – Precision Measuring Centers development (in €m)
Net sales

Order intake

CAGRAuftragseingang
6,9%

CAGR
48,2%

Nettoumsatz
98,684,784,789,0

2021/222022/23

96,8

44,9

2021/222022/232023/242023/24

Order backlog

CAGR
Auftragsbestand
1,9%

60,865,063,12021/222022/232023/24▪

The Measuring Centers segment was also able tobuild on the strong performance of the first half of thefinancial year and significantly increase both sales
and order intake compared to the 2022/23 financial
year and, as a result, even achieved another record
high in order intake.

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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Presentation for Analysts and Investors  Slide 10

June 2024

2 Strong sales growth but slowdown in incoming orders
KLINGELNBERG Group – Drive Technology development (in €m)
Net sales

Order intake

Nettoumsatz
CAGR

CAGR
Auftragseingang
-7,7%

37,0%

15,1

19,2

17,2

15,7

13,4

9,2

2021/222022/232023/242021/222022/232023/24

Order backlog

CAGR
Auftragsbestand
1,0%▪

The Drive Technology segment closed the2023/24 financial year with net sales ofEUR 17,2 million, up EUR 2,1 million on the previousfinancial year.

▪

However, due to the temporarily weak global growth
momentum, order intake fell significantly by
EUR 5,8 million over the previous financial year to a

16,6
12,7

12,5

2021/222022/232023/24

total of EUR 13,4 million.

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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Presentation for Analysts and Investors  Slide 11June 2024

2 Operating result up on the previous financial yearKLINGELNBERG Group – Income statement (in €m)

Net sales from goods and services
Other operating income
Change in inventory of finished and unfinished goods
Material expense
Personnel expense
Depreciation on tangible fixed assets
Amortisation on intangible assets
Other operating expense
Share of result from joint ventures
Operating result
Financial result
Profit before income taxes
Income taxes
Net profit

FY 2021/22
ACTUALFY 2022/23
ACTUALFY 2023/24
ACTUAL

158,640,341,0-110,5-95,9-4,1-0,4-45,20,6-15,7-4,0-19,7-2,0-21,7309,0
9,5-18,8-125,8-100,1-4,0-0,4-46,30,6
23,8-2,3
21,5-0,7
20,8

303,5
13,0
2,3-130,7-114,4-4,9-0,3-44,5
1,0
25,1-2,5
22,6-5,4
17,2

100%
25%
26%
-70%
-60%
-3%
0%
-29%
0%
-10%
-3%
-12%
-1%
-14%

100%
3%
-6%
-41%
-32%
-1%
0%
-15%
0%
8%
-1%
7%
0%
7%

100%
4%
1%
-43%
-38%
-2%
0%
-15%
0%
8%
-1%
7%
-2%
6%

Deviations
2023/24 vs. 2022/23-5,5
3,5
21,1-5,0-14,2-0,90,1
1,80,4
1,3-0,2
1,1-4,6-3,6-2%
36%
112%
-4%
-14%
-23%
25%
4%
62%
5%
-8%
5%
-17%

▪

Following the improvement in the operating result (EBIT) of EUR 39,5 million in the previous financial year comparedto the year before, the KLINGELNBERG Group continued this positive trend in the past 2023/24 financial year andachieved an operating result (EBIT) of EUR 25,1 million – an improvement of EUR 1,3 million (+5,4%) comparedto the previous financial year.

▪

The operating result as a percentage of net sales from goods and services for the past financial year was +8,3%,
an increase of 0,6 percentage points on the previous financial year.

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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Presentation for Analysts and Investors  Slide 12June 2024

2 Other operating expense continued to fall
KLINGELNBERG Group – Income and cost development (in €m)Other operating incomeCAGR-43,1%▪

Other operating income amounted toEUR 13,0 million at the end of the2023/24 financial year, up EUR 3,5 million on
the previous financial year. The main reason forthis was the higher income from flood-related
payments (EUR 3,4 million).

▪

At the end of the 2023/24 financial year, otheroperating expense amounted to
EUR 44,5 million, down EUR 1,8 million andtherefore significantly lower than in the previous
financial year. The decrease was mainly due tolower costs for incoming and outgoing freight.

40,3

13,0

9,5

2021/222022/232023/24

Other operating expense

CAGREBIT-0,8%

46,3

45,2

44,5in relation tototal
operatingperformance
in %

22,7%

2021/2215,9%2022/2314,6%2023/24

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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Presentation for Analysts and Investors  Slide 13

June 2024

2 Material expense increased in line with the higher total operating

performance
KLINGELNBERG Group – Income and cost development (in €m)Material expense

CAGR
8,8%

55,4%

2021/222023/24

CAGREBIT
9,2%

114,4

100,1

95,9

48,0%

2021/22in relation tototaloperating
performance
in %
42,8%

43,4%

2022/23

Personnel expense

34,5%2022/23

In line with the higher total operating performance,material expense increased by EUR 5,0 million
compared to the previous financial year totaling
EUR 130,7 million. The materials ratio fell by
0,6 percentage points compared to the previous
financial year and closed at 42,8% at the end of thefinancial year.

▪

Personnel expense amounted to EUR 114,4 million
at the end of the2023/24 financial year, up
EUR 14,2 million on the previous financial year.
Payroll costs including social benefits rose by
EUR 12,3 million, which was mainly due to theincrease in the number of employees (+84) and the
5,2% increase in pay rates at KLINGELNBERG
GmbH following collective bargaining. Expenses for
employee pension plans caused effects of EUR 4,0million. The main reason for this was an interestrelated reversal of pension provisions atKLINGELNBERG GmbH in the previous financialyear.

130,7125,8110,5▪

in relation tototal
operatingperformance
in %
37,4%

2023/24

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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Presentation for Analysts and Investors  Slide 14

June 2024

2 Cash flow
KLINGELNBERG Group – Net change in cash amounted to EUR +7,8 million (in €m)
Capital expenditures on tangible fixed assets▪

Outflows for investment intangible fixed assets amountedto EUR 8,1 million. This
included eight investments inmachinery for theHückeswagen site in Germany.

▪

Cash flow from operating
activities increased byEUR 7,8 million compared tothe previous financial year toEUR 23,5 million. The net profit
of EUR 17,2 million particularly
contributed to this positive
cash flow.

CAGR-15,7%

18,0
11,4

8,1

2021/222022/232023/24

Cash Flow
2023/242022/23
23,515,72,6-17,6

0,3

7,8

1,0-7,3-7,8-0,6Cash flow from operating activities
Cash flow from investing activities

Cash flow from financing activities
Currency translation effects
Net change in cash

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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Presentation for Analysts and Investors  Slide 15

June 2024

2 Further strengthening of the financial position
KLINGELNBERG Group – Balance sheet ratios (in €m)
Trade Working Capital
139,740,6
133,0161,2

175,4

71,1

79,9117,688,1%

114,4-33,8-27,6-18,92021/222022/232023/24

Inventories

Receivables from g/s

Equity increased by EUR 14,2 million (+11,3%)
compared to the financial year ending 31 March2023 and amounted to EUR 140,8 million as at 31March 2024. The net profit for the period increased
equity by EUR 17,2 million, while the dividend
payment reduced equity by EUR 3,7 million.

▪

The equity ratio increased by 3,0 percentage points
to 47,5% compared to 31 March 2023.

in % ofnet
sales
57,8%

52,2%

▪

Payables from g/s

Financing structure

Equity capital
CAGR
15,9%

7,7

8,7

16,5-40,1-32,0-30,4-7,7-18,52021/222022/23

Cash and cash equivalents

140,8

126,6
104,7

Equitycapital ratio-13,42023/24

38,3%

44,5%

Long-term financial liabilities

2021/222022/23

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
KLINGELNBERG Tradition

47,5%

Short-term financial liabilities

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2023/24

Presentation for Analysts and Investors  Slide 16

June 2024

3 Outlook
We expect:▪

We expect slower Order Intake first half of the year due to ongoing
uncertainty – recovery expected for 2nd half of our financial year▪

Recovery of hybrid market expected benefitting our Bevelgear-Technology
driven by the U.S. Market▪

Continuity of high quality requirements of E-Mobility Applications will support
demand for both measuring and generating grinding machines

Despite all prevailing macroeconomic uncertainties and slower first halfyear of order intake, we expect a slight increase in sales for the 2024/25
financial year.
We expect the EBIT margin above 8,0%, as in the 2023/24 financial year.

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Presentation for Analysts and Investors  Slide 17

June 2024

4 Thank you! – Q+A

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Presentation for Analysts and Investors  Slide 18

June 2024

Appendix

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Presentation for Analysts and Investors  Slide 19

June 2024

2 Strong increase in Equity mainly due to clearly positive annual result
KLINGELNBERG Group – Balance sheet (in €m)

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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