Financial Half-Year Statements
2021/22KLINGELNBERG AG
Binzmühlestrasse 1718050 Zürich, SwitzerlandFon:+41 44 278 7940
Mail: investorrelations@klingelnberg.com
Web: www.klingelnberg.com

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

Dear Shareholders,Your company, KLINGELNBERG AG, has undoubtedly experienced the most difficult first half-year
in its history. While we were still able to inform our shareholders in an ad-hoc announcementin March and in our annual report in June – not without a certain amount of pride – that
KLINGELNBERG had impressively mastered the severe crisis resulting from the economic downturnand the immediately following global burdens caused by the Covid-19 pandemic, one single
day changed everything: 14 July 2021. On this day, torrential rain affected several areas in thewestern part of Germany. Within only a few hours, whole regions were flooded, houses swept
away, bridges destroyed, entire villages and towns devastated. Hückeswagen, our company’s mostimportant site with around 750 employees, is located in one of the regions that were affected.
Let’s not forget: Until that day, KLINGELNBERG was highly confident about the future – and we
had every reason to be. The Company and its management had delivered as promised: Emerge
stronger from the economic crisis and the subsequent Corona crisis. This was what KLINGELNBERG
had achieved. It had 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 ofentrepreneurial commitment. Our high technical competence in the field of large high-precision
grinding machines has brought us significant order volumes in the dynamically growing wind
power market segment, especially in Asia. At the same time, as announced, we benefited
disproportionately from the steadily increasing quality requirements for e-mobility solutions.
Both our Speed Viper gear grinding machine and our measuring centers won significant reference
orders. All this laid the foundation for a promising 2021/22 financial year and an even better2022/23 financial year.
Then came 14 July – and with it the complete flooding of our Hückeswagen site. Machines
packed for delivery and machines under construction for customers were affected. Production
machines were underwater, as were large parts of the warehouse. The IT had to be shut down inan emergency as the site’s power supply was completely cut off. It was not until two days later that
we could re-enter the site and determine the extent of the damage. The damage was enormous.
Then began what makes KLINGELNBERG so unique and so strong: The people in the Company –Board of Directors, Management, Executives, employees – all decided unanimously: We’re saving
our company! And they began to clean up, repair, and rebuild. Day and night.
On the morning of the following day after the flooding, a specialized company commissioned
immediately began to ensure emergency operation, prevent consequential damage to theenvironment, secure machinery and equipment and protect them from further damage. The
site’s IT was brought back online. At the same time, the members of the Executive Committee

02

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

and Management held extensive discussions with banks, insurers, customers, and suppliers tocreate acceptance for unavoidable delivery delays on the one hand, and on the other hand to
motivate suppliers to initially give preference to KLINGELNBERG to further reduce possible effects
on business operations. The outcomes of these discussions were extremely positive. Not least
because of the long-standing solid business relations based on mutual fairness, KLINGELNBERG
experienced far-reaching support and solidarity from its customers and partners.
To strengthen liquidity, Credit Suisse is providing bridge financing in the amount of EUR 20 million,
half of which is guaranteed by the Klingelnberg family. In addition, the members of the Executive
Committee and Management voluntarily waived significant components of their compensation,
as did the members of the Board of Directors. Talks have been initiated with the collective
bargaining partner to negotiate a temporary in-house collective agreement to make up for thedamage caused as quickly as possible.
Two weeks after the disaster, on 04 August 2021, KLINGELNBERG informed its shareholders thatan existential threat to the Company had been averted. As things stand at present, KLINGELNBERG
continues to expect a total cost of around EUR 55 million to EUR 65 million from property damage
and interruption of operations. Of this amount, around EUR 15 million – around 25 percent – will
be covered by insurance, leaving the Company with a remaining loss of around EUR 40 million
to EUR 50 million. The KLINGELNBERG Group had expected a clearly positive result for the2021/22 financial year. However, against the background of the estimated damage caused by theflooding, KLINGELNBERG now expects a loss of around EUR 30 million to EUR 40 million for thecurrent financial year. Given a very high equity ratio of 56 percent as of the last annual financial
statements, KLINGELNBERG can absorb the loss in balance sheet terms and aims to fully absorb itin the 2021/22 financial year. Today, four months later, we are again confident about the futureof KLINGELNBERG. Production and assembly operations are up and running again. Despite thedamage caused by the flood at the Hückeswagen site, the order intake of the KLINGELNBERG
Group continues to develop positively. The Company’s order backlog is currently higher than everbefore in its history.

03

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

The employees and the entire management team are working with maximum energy and totalcommitment to restore normal operations, and customers and suppliers are supporting us tothe best of their ability. So, there are good reasons to be convinced of a strong comeback of theCompany. We, for one, are convinced of it. And we would like to thank all those involved in theenormous efforts it took to get us back on track for their outstanding hard work and dedication.

Dr. Jörg Wolle
Chairman of the Board of Directors

Jan Klingelnberg
CEO

Zürich, 17 November 2021

04

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

Financial report
Flood of 14 July 2021
In the late evening of 14 July 2021, the central KLINGELNBERG site in Hückeswagen was flooded
as a result of the persistent heavy rainfall in the west and south-west of the Federal Republic of
Germany. Machines packed for delivery and machines under construction for customers were affected, production machines were under water as were large parts of the warehouse, production
and assembly areas. The IT had to be shut down in an emergency and the site’s power supply had
to be switched off.
Thanks to the joint and rapid action of all people in the Company, the Board of Directors, the Management and the employees, it was possible to establish emergency operation on the following
day with the additional support of a specialist company. Severely affected areas such as production and assembly have been put back into operation after a lengthy interruption.
As things stand at present, the KLINGELNBERG Group expects a total cost of around EUR 55 ­million
to EUR 65 million from property damage and interruption of operations, with the share of property damage expected to be around 40% and the share of business interruption around 60%.
The property damage recognized in the consolidated income statement in the half-year financial
statements amounts to EUR 25,3 million. Of this amount, EUR 10,8 million is attributable to otheroperating expense (such as costs for clean-up work, repairs and maintenance of buildings and operating equipment), EUR 10,4 million to material expense (material destroyed or no longer usable)
and EUR 4,1 million to the change in inventory of finished and unfinished goods as well as unbilledgoods and services (work in progress had to be impaired). The property damage is shown in thehalf-year financial statements for the 2021/22 financial year in accordance with the current stateof knowledge. However, the amount of damage may still change, as not all materials and machines
have been finally inspected at the present time. The total loss from the business interruption cannot be definitively estimated at the present time, as the full extent of the interruption of operations cannot yet be quantified.
Furthermore the German federal government has issued guidelines for the funding of reconstruction. Companies can apply to the state of North Rhine-Westphalia (Germany) for development
aid, but the amount and timing of payments are still not known.

Segments and markets
The KLINGELNBERG Group had to face many different global and regional challenges in the firsthalf of the 2021/22 financial year. While fading waves of the worldwide pandemic accelerated therecovery of the developed economies, disruptions to international supply chains due to shortagesof materials and upstream products weighed on the manufacturing sector.

05

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

Nevertheless, the euro area resumed its recovery path in the second quarter of calendar year 2021
with a growth rate of 2,2%. Overall economic production in the US expanded almost unrestrainedin the first half of the year, with increases of 1,5% in each of the two quarters. In Germany, grossdomestic product has risen significantly again since the coronavirus pandemic subsided in spring2021.
On a regional level, the flooding that hit western Germany on 14 July 2021, caused significant damage to the KLINGELNBERG’s Hückeswagen site. Despite these historically unparalleled challenges,
the positive trend in order intake continued in the first half of the financial year. As at 30 September 2021, order intake amounted to EUR 114,9 million – EUR 31,1 million higher than in the same
period of the previous financial year. At the end of the first half of the year, the order backlog of
the KLINGELNBERG Group was at a level of EUR 217,5 million, the highest in the Company’s history.
Due to the disruption of operations as a result of the flood disaster, net sales fell by EUR 6,6 million
compared to the first half of the previous financial year, reaching a total of EUR 55,1 million.

Bevel Gear segment:
The Bevel Gear segment ended the first half of the 2021/22 financial year with net sales of
EUR 20,0 million. Even against the backdrop of a temporary disruption of operations as a resultof the flood, the KLINGELNBERG Group was still able to exceed the previous financial half-year’s
figure for this segment by EUR 0,8 million. The main reasons for this were, on the one hand, recovery trends in the automotive industry and, on the other, new investments by manufacturers ofindustrial gear units.
The order situation in the Bevel Gear segment has developed very positively since the beginning of
the financial year and was EUR 5,1 million higher than in the same period of the previous financial
year. The Asian automotive and commercial vehicle industry made a significant contribution tothis. The general mechanical engineering sector remained at a stable level.

Cylindrical Gear segment:
The net sales of the Cylindrical Gear segment were just under EUR 0,2 million short of previous
financial half-year’s level. Even though the surge in demand that began in the second half of thelast financial year lost momentum – some projects, especially in China, were postponed – demandremained pleasingly stable, especially for larger applications (Rapid 1250).
Growth impulses continued to come from the wind power and general mechanical engineering
sectors. The promises made by China with regard to its objective to reach climate neutrality by
2060 lead us to expect additional orders in the wind power sector. Further cylindrical gear machines of the new Speed Viper series were placed on the market as reference projects. This enables the KLINGELNBERG Group to benefit from the constantly increasing quality requirements
in e-mobility.

06

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

Measuring Centers segment:
At the end of the first half of the financial year, net sales in the Measuring Centers segment
amounted to EUR 13,8 million – down EUR 5,1 million year-on-year. Damage and impairments
caused by the flooding at the Hückeswagen site significantly slowed down the positive sales development at the beginning of the financial year.
Despite this event, the segment is characterized by its excellent market positioning, which was confirmed by a high order backlog of EUR 45,5 million (previous financial half-year: EUR 22,1 million).
Various new projects in the field of electromobility were established on the market and the innovation potential of this segment was transferred to new electric drive concepts.
In addition to new applications in the field of electromobility, the order intake was supported by asurge in demand from the commercial vehicles sector. Further realizations of wind power projects
planned in China and Europe indicate an increased demand for large P-units.

Drive Technology segment:
The Drive Technology segment ended the first half of the financial year with net sales of
EUR 3,3 million – almost EUR 1,9 million below the previous financial half-year. After a significant
market correction due to the Covid-19 pandemic in the previous year and drastic investment cutsin the marine and mining markets, a robust ramp-up in the target markets was noticeable in the
KLINGELNBERG Group’s order books in the first half of the financial year. Order intake more thandoubled to EUR 7,8 million, compared with EUR 3,6 million in the previous financial half-year.
A noticeable increase in orders from the marine sector continued the moderately rising trend of
the pre-crisis period. Robust positive momentum was also evident in mining. Massive demand
for raw materials as part of global climate and digitalization policies has led to an increase in demand in the mining sector. The Drive Technology segment anticipated these developments andincreased capacity.

Gross profit
Compared to the same period of the previous financial year, net sales fell by EUR 6,6 million due tothe flooding. In addition, changes in inventory increased by EUR 14,3 million over the same periodof the previous financial year. Total operating performance therefore amounted to EUR 69,9 million.
Material expense rose disproportionately to total operating performance due to the significant
increase in inventories and property damage incurred as a result of the floods (EUR 10,4 million)
and amounted to EUR 43,3 million at the end of the first half of the year – EUR 22,2 million higher
than in the same period of the previous financial year. Gross profit thus amounted to EUR 26,5
million, down EUR 14,4 million on the same period of the previous financial year.

07

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

Personnel expense and employees
Personnel expense amounted to EUR 47,1 million at the end of the first half of the financial year,
up EUR 9,5 million on the same period of the previous financial year. The reasons for this included
the discontinuation of short-time work (EUR 5,4 million in the previous half-year) and increased
costs for external personnel of EUR 1,8 million. The KLINGELNBERG Group had 1.181 employees(FTE) in the first half-year (5 employees (FTE) more than in the same period of the previous financial year).

Other operating expense
Other operating expense was EUR 13,7 million higher than in the previous financial half-year
and totaled EUR 26,7 million at the end of the first half of the financial year. The increase of
EUR 10,8 million was mainly due to repairs, clean-up work and losses from the disposal of property, plant and equipment, all of which were flood-related.

Other operating income
Other operating income amounted to EUR 9,5 million at the end of the first half of the financial
year – up EUR 8,3 million on the same period of the previous financial year. This was due to initial
payments for damages of EUR 8,6 million made by the insurer in connection with damages causedby the flood.

Operating result (EBIT)The KLINGELNBERG Group had expected a clearly positive result for the 2021/22 financial year.
Before the flood disaster, the Company was well on its way to achieve this. Following the floods,
the Company suffered property damage totaling EUR 25,3 million as well as a loss of sales into
the millions. Accordingly, the operating result fell significantly by EUR 29,4 million year-on-year to
EUR -40,0 million.

Balance sheet
The balance sheet total of the KLINGELNBERG Group rose by EUR 7,5 million compared to the annual financial statements as at 31 March 2021 and amounted to EUR 224,4 million on 30 September
2021.
Non-current assets decreased by EUR 3,4 million (-5,4%). This decline was due, among otherthings, to the derecognition of machinery in the amount of EUR 1,4 million as a result of flood
damage. Additionally, investments decreased due to profit distributions of the joint venture(KLINGELNBERG DKSH Service Ltd.).
Current assets increased by EUR 10,9 million to EUR 164,8 million. Although receivables fromgoods and services fell by EUR 18,4 million, inventories rose by EUR 28,2 million.

08

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

Equity decreased by EUR 40,2 million (-33,4%) to EUR 80,3 million compared to the financial statements as at 31 March 2021. This was due to the net loss for the period of EUR -42,9 million and currency translation differences of EUR 2,6 million. As a result, the equity ratio fell by 19,8 percentage
points to 35,8% compared with 31 March 2021.
Liabilities increased significantly by EUR 47,8 million compared to 31 March 2021 and amounted to EUR 144,2 million as at 30 September 2021. Short-term financial liabilities increased by
EUR 23,6 million and payables from goods and services by EUR 16,9 million. These increases weremainly due to the financing of inventories as a result of the high order backlog and the high levelof damage caused by the flood.

Cash flow statement
Cash flow from operating activities fell by EUR 19,1 million to EUR -24,9 million compared to thesame period of the previous financial year. This is mainly due to the flood disaster. Both the property damage and the disruption of operations led to increased capital requirements.
Accordingly, the cash flow from financing activities increased by EUR 15,3 million compared to thesame period of the previous financial year.
The net change in cash was EUR -2,4 million in the first half of the 2021/22 financial year, which
represents a decrease of EUR 4,8 million compared to the same period of the previous financial
year.

OutlookIn view of the high order backlog and the continuously high order intake, the KLINGELNBERG
Group expects a positive business development. In particular, the positions acquired with theirtechnologies – which are in high demand worldwide – in the Renewable Energies and the Automotive customer segments are having a positive impact. Due to the burdens caused by the flood
disaster, the Company expects an annual loss (EBIT) of EUR 30 million to EUR 40 million, as alreadypublished in the press release of 04 August 2021. A significant improvement is hardly to be expected, due to the issue of supply bottlenecks. However, in view of the high order backlog, it willcertainly be possible to make up some of the losses next year. The Company is more than confidentof returning to profitability in the next financial year.

09

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

Group key figures
01.04.2021- 30.09.2021(unaudited)

01.04.2020- 30.09.2020(unaudited)

Change01.04.2020- 31.03.2021

Net sales from goods and services

55,1

61,7

-6,6

158,7

Order intake

114,9

83,8

31,1

215,5

Order backlog

217,5

122,9

94,6

157,7

Operating result (EBIT)

-40,0

-10,6

-29,4

-11,6

Net loss

-42,9

-10,9

-32,0

-7,3

Basic earnings per share (in EUR)

-4,85

-1,24

-3,61

-0,82

Diluted earnings per share (in EUR)

-4,85

-1,24

-3,61

-0,82

Operating result as % of net sales from goods andservices(72,5%)(17,3%)(55,2%)(7,3%)Net loss as % of net sales from goods and services(77,8%)(17,7%)(60,1%)(4,6%)

-24,9

-5,8

-19,1

7,6

Investments

1,3

1,0

0,3

3,7

Free cash flow

-25,2

-4,3

-20,9

7,3

Employees (FTE)

1.181,3

1.176,05,31.145,030.09.2021

31.03.2021

Change30.09.2020

224,4

216,9

7,5

230,6

Net debt

9,5

-15,5

25,0

-3,6

Total equity

80,3

120,5

-40,2

117,9

Equity ratio

35,8%

55,6%

(19,8%)

51,1%

EUR million

Cash flow from operating activities

EUR million
Total liabilities and equity

10

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

Consolidated balance sheet
30.09.2021

30.09.2020

31.03.2021

Cash and cash equivalents

20.18541.17022.577

Receivables from goods and services

24.64533.48543.007

26

273

50

9.839

6.684

6.342

108.68388.45780.504

1.398

1.164

1.406

164.776

171.233

153.886

46.99249.33749.174Loans and other receivables

19

178

19

Investments in joint ventures

908

1.233

1.520

Deferred tax assets

9.805

6.207

10.131Other financial assets

1.020

1.191

1.086

911

1.218

1.125

Total non-current assets

59.65559.36463.055

Total assets

224.431230.597216.941

EUR 000
AssetsCurrent assets

Derivative financial instruments
Other short-term receivables
Inventories
Prepayments and accrued income
Total current assets

Non-current assets
Tangible fixed assets

Intangible assets

11

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

Consolidated balance sheet
30.09.2021

30.09.2020

31.03.2021

Short-term financial liabilities

28.98634.818

5.343

Payables from goods and services

31.5726.771

14.674

Derivative financial instruments

248

44

120

Other short-term liabilities

43.32830.08338.935

Accrued liabilities and deferred income

11.901

10.66512.037

Short-term provisions

10.567

10.274

7.376

Total current liabilities

126.60292.65578.485

693

2.729

1.705

Deferred tax liabilities

1.586

1.538

1.222

Long-term provisions

15.29015.79815.002

Total non-current (long-term) liabilities

17.56920.06517.929Total liabilities

144.171112.72096.414

Share capital

28.63928.63928.639

Capital reserves

43.13443.13443.134Retained earnings

8.487

46.10448.754

Total equity

80.260117.877

120.527

Total liabilities and equity

224.431230.597216.941

EUR 000
Liabilities
Current liabilities

Non-current (long-term) liabilities
Long-term financial liabilities

Equity12KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

Consolidated income statement
01.04.2021- 30.09.2021

01.04.2020- 30.09.2020

01.04.2020- 31.03.2021

Net sales from goods and services

55.11561.674158.719

Other operating income

9.519

1.188

1.850

Change in inventory of finished and unfinishedgoods as well as unbilled goods and services

14.737430-5.844

Material expense-43.324-21.167-52.000

Personnel expense-47.056-37.560-83.731

Depreciation on tangible fixed assets-2.160-2.332-4.559

-219

-224

-443

-26.750-13.028-26.201

181

373

647

Operating result-39.957-10.646-11.562

Financial result-1.328

1.167

2.211

-41.285-9.479-9.351-1.568-1.4522.059-42.853-10.931-7.292

Basic earnings per share

-4,85

-1,24

-0,82

Diluted earnings per share

-4,85

-1,24

-0,82

-37.578-8.090-6.560

EUR 000

Amortization on intangible assets
Other operating expense
Share of result from joint ventures

Loss before income taxes
Income taxes
Net loss

Earnings per share
EUR

Additional information - non-GAAP measures
EUR 000
EBITDA

13

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

Consolidated cash flow statement
EUR 000

01.04.2021- 30.09.2021

01.04.2020- 30.09.2020

01.04.2020- 31.03.2021

Net loss-42.853-10.931-7.292

Depreciation/amortization/write-up of
tangible fixed assets and intangible assets

2.379

2.556

5.002

Change in provisions (including deferred taxes)

3.843-4.911-8.921

Loss/profit from the disposal of tangible fixed assets andintangible assets

1.252

-352

-225

Change in receivables from goods and services

18.75613.261

3.351

Change in inventories-28.042

276

8.091

Change in other receivables and prepayments
and accrued income (including deferred tax)

-3.079-1.105-4.961

-181

-373

-646

Change in payables from goods and services

16.899-3.9893.352

Change in other short-term liabilities andaccrued liabilities and deferred income

4.089

879

11.604

Other non-cash items

2.029-1.062-1.738-24.908-5.751

7.617

Inflows for investment in financial assets(including loans, participations, securities, etc.)

858

1.592

1.782

Outflows for investment in tangible fixed assets-1.259-1.010-3.589

Inflows from the sale of tangible fixed assets

73

874

1.630

Outflows for investment in intangible assets

-5

-16

-143

Inflows from the sale of intangible assets

0

0

53

Receipt from the disposal of consolidated organizations (lesscash given)

0

-3

0

-333

1.437

-267

Change in short-term financial liabilities

23.6437.567-21.853

Change in long-term financial liabilities-1.012-239-1.243

Cash flow from financing activities

22.631

7.328-23.096

218

-588

-421

Net change in cash

-2.3922.426-16.167

Opening balance of cash and cash equivalents at 01.04.

22.57738.74438.744

Closing balance of cash and cash equivalents at 31.03. / 30.09.

20.18541.17022.577

Net change in cash

-2.3922.426-16.167

Share of profits from the application of the equity method

Cash flow from operating activities

Cash flow from investing activities

Currency translation effects

14

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

Consolidated statement of changes in equity
Retained earnings
Otherretainedearnings

Cumulative
foreigncurrency
differences

Total
retainedearnings

Total
equitySharecapitalCapitalreserves

Goodwill
offset withequity28.63943.134-20.51770.07510.23859.796131.569

Currencytranslationdifferences

0

0

0

0

-2.783-2.783-2.783

Net result fromcash flow hedges

0

0

0

22

0

22

22

Net loss

000-10.9310-10.931-10.931

Balance as at
30.09.2020

28.63943.134-20.51759.1667.455

46.104117.877

Balance as at
31.03./01.04.2021

28.63943.134-20.51762.7746.497

48.754120.527

Currencytranslationdifferences

0

0

0

0

2.591

2.591

2.591

Net result fromcash flow hedges

0

0

0

-5

0

-5

-5

Net loss

000-42.8530-42.853-42.853

28.63943.134-20.51719.916

9.088

8.487

80.260

EUR 000

Balance as at
01.04.2020

Balance as at
30.09.2021

15

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

Notes to the Financial Half-Year Statements 2021/22
1	Basis for the preparation of the financial statements and accounting
policies
These consolidated financial statements cover the unaudited half-year results for the six months
ending 30 September 2021. They have been prepared in accordance with Swiss GAAP FER as awhole and give a true and fair view of the assets, liabilities and earnings of KLINGELNBERG Group.
In addition, the provisions of the Listing Rules of the SIX Swiss Exchange and Swiss accounting law
were complied with. The consolidated interim financial statements for 2021/22 have been prepared in accordance with FER 31 “Supplementary Recommendation for Listed Companies”.
These interim financial statements do not contain all the information and disclosures required in
the annual consolidated financial statements. They should therefore be read in conjunction withthe consolidated financial statements as at 31 March 2021 (published 23 June 2021).
All line item amounts in the consolidated financial statements are presented in millions of Euro,and all such amounts (including totals and subtotals) have been rounded according to standard
commercial practice. Thus, an addition of the figures presented can result in rounding differences.

2

Changes in the scope of consolidation

The liquidation of KLINGELNBERG Hungaria Kft. with the closing balance per 01 April 2021 has
been deleted from the Hungarian company registry.

3

Key exchange rates

The table below outlines the main exchange rates used in the preparation of our consolidated financial statements as at and for the periods ended 30 September 2021/2020 and 31 March 2021.

Period-end exchange rate

Average exchange rate

30.09.2021

31.03.2021

30.09.2020

01.04.2021- 30.09.2021

01.04.2020- 31.03.2021

01.04.2020- 30.09.2020

CHF/EUR

1,08350

1,10680

1,07970

1,09023

1,07614

1,06811

USD/EUR

1,15705

1,17350

1,17106

1,19232

1,16701

1,13493

JPY/EUR

129,63585

129,85950

123,78585

130,84527

123,67595

121,19843

16

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

4

Investments in joint ventures

In the first half year 2021/22, just as in 2020/21, there were no changes in investments in associated companies and joint ventures. The value of the investments is reduced mainly due to dividends
distributed on 20 April 2020 and 21 September 2021.

5

Goodwill

Goodwill from the acquisition of consolidated entities is offset with equity at the date of theacquisition. Goodwill is theoretically amortized on a straight-line basis over a useful life of
7 – 15 years. A theoretical capitalization of goodwill would have the following effects on the consolidated financial statements.
30.09.2021

31.03.2021

30.09.2020

Equity according to balance sheet

80.260120.527117.877

Theoretical net carrying amount goodwill

3.235

3.555

3.877

83.495124.082

121.754-42.853-7.292-10.931

-321

-641

-321

-43.174-7.933-11.252

EUR 000
Theoretical impact on equity

Theoretical equity incl. net carrying amount of goodwill

Theoretical impact on net income
Effect on income statement
Net loss
Theoretical amortization of goodwill
Theoretical net loss

6

Provisions

The provisions for the efficiency enhancement program decreased by EUR 0,1 million to
EUR 2,5 ­million.

7

Segment information

Notwithstanding the additional recommendations for listed companies (Swiss GAAP FER 31), theBoard of Directors of the KLINGELNBERG Group decided not to publish any detailed segment
results in order to protect the interests of its shareholders. Disclosing operating results by business units would lead to competitive disadvantages in terms of our profitability and distribution
margins as well as our cost calculations. Please read the consolidated half-year statements underreview in conjunction with the consolidated financial statements as at 31 March 2021 (published
23 June 2021).

17

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

Net sales from goods and services
01.04.2021 - 30.09.2021

EUR 000
Service location
Segments

Germany

Switzerland

Japan

USA

Rest ofthe world

Total

Bevel Gear

6.654

5.735

568

4.061

2.936

19.954

Cylindrical Gear

9.260

1.638

593

2.528

2.486

16.505

Measuring Centers

7.662

1.230

1.289

2.284

1.359

13.824

Drive Technology

3.220

0

0

0

35

3.255

Other

641

0

27

0

909

1.577

Total

27.437

8.603

2.477

8.873

7.725

55.11501.04.2020 - 31.03.2021

EUR 000
Service location
Segments

Germany

Switzerland

Japan

USA

Rest ofthe world

Total

Bevel Gear

15.73919.874

2.003

7.390

5.346

50.352

Cylindrical Gear

24.946

3.275

5.436

7.835

4.066

45.558

Measuring Centers36.473

1.244

4.176

5.046

3.540

50.479

Drive Technology

8.905

0

0

0

36

8.941

Other

180

0

120

0

3.089

3.389

Total

86.24324.39311.73520.27116.077158.71901.04.2020 - 30.09.2020

EUR 000
Service location
Segments

Germany

Switzerland

Japan

USA

Rest ofthe world

Total

Bevel Gear

9.023

5.286

494

2.050

2.323

19.176

Cylindrical Gear

11.686

916

270

1.669

2.149

16.690Measuring Centers13.921

308

783

2.588

1.354

18.954

Drive Technology

5.158

0

0

0

19

5.177

Other

40

0

22

0

1.615

1.677

Total

39.828

6.510

1.569

6.307

7.460

61.67418

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

8

Significant events and business transactions

As a result of heavy rainfall, especially in the western and southwestern parts of Germany, there
was serious flooding occurred in the affected regions causing damage to buildings, infrastructure,transport links, and more. The Hückeswagen site of the KLINGELNBERG Group was flooded inlarge parts in the late evening of 14 July 2021.
The Company has insurance coverage for property damage and business interruption in theamount of EUR 7,5 million each. Furthermore the German federal government has issued guidelines for the funding of reconstruction. Companies can apply to the state of North Rhine-Westphalia (Germany) for development aid, but the amount and timing of payments are still not known.
The required appraisals have been commissioned.
A final quantification of the damage as well as the resulting reimbursements by the insurancecompany or the development aid is currently not possible. Costs for damage repair, scrapping of
fixed assets and inventories as well as amounts already received from the insurance company impacted the Company’s income statement as follows: Other operating income — EUR 8,6 million: This mainly relates to insurance reimbursements already received and scrap and sales proceeds already generated from the damaged machinery.
 Other operating expense — EUR 10,8 million: The costs were mainly incurred for clean-up
work, repairs and maintenance of buildings and operating equipment as well as book losses
from fixed assets.
 Material expense — EUR 10,4 million: Material destroyed or no longer usable as a result of theflood disaster had to be impaired.
 Change in inventory of finished and unfinished goods as well as unbilled goods and services —EUR 4,1 million: Various assemblies of work in progress had to be impaired.
Financing is currently provided via the existing credit line and extended payment terms from suppliers. Short-term bank liabilities increased accordingly by EUR 23,6 million and supplier credits by
EUR 16,9 million. To strengthen liquidity, Credit Suisse is providing bridge financing in the amountof EUR 20,0 million, half of which is guaranteed by the Klingelnberg family.

9

Definition of alternative performance measures

The alternative performance measures should be read in conjunction with the consolidated financial statements as at 31 March 2021 (published 23 June 2021).

10

Events after closing date

At the publishing date of this report, the Company is not aware of any significant new event thatwould affect the half-year financial statements as at 30 September 2021.

19

KLINGELNBERG GROUP
Financial Half-Year Statements 2021/22

About the company
Founded in 1863, KLINGELNBERG is one of the leading companies in the gear industry. On the
background of many innovations in the areas of calculation, production, and measuring technology, KLINGELNBERG sees itself as a leader in this sector. With its acquisition of Höfler Maschinenbau
GmbH’s core business in 2012, KLINGELNBERG has added machines for machining cylindrical gears
to its range of products, reinforcing its position as a complete system provider.
Headquartered in Zürich (Switzerland), KLINGELNBERG now develops and manufactures at its
sites in Zürich (Switzerland), Hückeswagen and Ettlingen (Germany). The company also maintains a presence with sales and service offices and numerous marketing agents all over the world.
KLINGELNBERG solutions are used in the automotive, commercial vehicle, and aviation industries,
as well as in shipbuilding, the wind power industry, and the general transmission manufacturingindustry. Applications range from vehicle drives, aircraft turbine engines, and cement mill gear
units to drive systems for ships and oil rigs.
With over 200 patent grants, the company continuously demonstrates its capacity for innovation.
Above and beyond this, its ISO 14001 certification and the participation in the VDMA’s Blue Competence initiative give credence to the company’s sustainable, environmentally sound businesspractices.
The shares of KLINGELNBERG AG are listed on the SIX Swiss Exchange (KLIN).

20KLINGELNBERG AG
Binzmühlestrasse 1718050 Zürich, SwitzerlandFon:+41 44 278 7940
Mail: investorrelations@klingelnberg.com
Web: www.klingelnberg.com