KLINGELNBERG AG
Precision gearing champion with Swiss and German heritage

Presentation for Analysts and Investors
Financial Report H1 2020/21
Zurich, November 2020
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Presentation for Analysts and Investors  Slide 2

November 2020

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 inthese statements. 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 forwardlooking statements. KLINGELNBERG Group assumes no responsibility to up-date forward-looking statements or to adapt them tofuture 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 financialstatements. 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

November 2020

Agenda1Introduction

2

Financial results

3

Enhanced efficiency program4

Outlook

5Q&A

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Presentation for Analysts and Investors  Slide 4

November 2020

1 Major effects caused by the Covid-19 pandemic

1

Significant decline in total operating performance (-44%)

2

Despite this, the operating result stays at the previous year'slevel (down by EUR 0,6 million*)

3Best Order Intake in Q2 2020/21 since 1,5 years

4Net debt positiv*Compared to previous half-year result
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Presentation for Analysts and Investors  Slide 5

November 2020

2 Lower sales and orders mainly due to global Covid-19 pandemic
KLINGELNBERG Group – Net sales and order intake (in M€)Net sales

Net sales declined by EUR 26,7 million
compared with the prior-year period, a reductionof 30,2%.

Order intake fell by EUR 21,5 million from thesame period last year, a decline of 20,4%.

120,0100,080,060,040,099,188,461,720,00,0
H1 2018/19

H1 2019/20

H1 2020/21

Order intake
140,0120,0100,080,060,0124,5105,340,083,820,00,0
H1 2018/19

H1 2019/20

H1 2020/21

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 6November 2020

2 The 2nd quarter gives hope for a recovery in order intake
KLINGELNBERG Group –Order intake (in M€)
1009080706050403020100Development of order intake on a quarterly basis

52,355,349,439,728,5

Q1 2019/20

53,0

Q2 2019/20

Q3 2019/20

Q4 2019/20

Q1 2020/21

Q2 2020/21 was the most successful quarter since Q4 2018/19

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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Q2 2020/21

Presentation for Analysts and Investors  Slide 7

November 2020

2 Net sales: All segments dropped
KLINGELNBERG Group – Product mix: Shift to Measurement Centers (in M€)Segments

Bevel GearCylindrical Gear
Measuring Centers
Drive Technology
OtherTotal



H1 FY 2019/20
35,022,821,0
5,93,788,440%
26%
24%
7%
4%
100%

H1 FY 2020/21
19,216,719,05,2
1,761,731%
27%
31%
8%
3%
100%

Significant decline in all segments, especially Bevel Gear segment.

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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Deviations-15,8-6,1-2,0-0,7-2,0-26,7-45%
-27%
-10%
-12%
-54%
-30%

Presentation for Analysts and Investors  Slide 8

November 2020

2 Sales and result below previous year's level
KLINGELNBERG 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 profit of associates
Share of result from joint ventures
Operating result
Financial result
Profit before income taxes
Income taxes
Net profit

H1 2019/20

H1 2020/21

Deviations

88,40,922,7-50,5-50,9-2,6-0,2-18,00,00,2-10,0-1,4-11,4
3,3-8,1

61,7
1,2
0,4-21,2-37,6-2,3-0,2-13,00,00,4-10,6
1,2-9,5-1,5-10,9-26,70,3-22,3
29,3
13,3
0,3
0,0
5,0
0,0
0,2-0,62,61,9-4,8-2,8

100%
1%
26%
-57%
-58%
-3%
0%
-20%
0%
0%
-11%
-2%
-13%
4%-9%

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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100%
2%1%-34%
-61%
-4%
0%
-21%
0%
1%
-17%
2%-15%
-2%
-18%

-30%
33%
-98%
58%
26%
12%
0%
28%
100%
-6%
186%
17%
-145%
-35%

Presentation for Analysts and Investors  Slide 9

November 2020

2 Decrease in performance-related costs
KLINGELNBERG Group – Income and cost development (in M€)
Material expense54,9



Significant decline in total operating
performance of EUR 49 million led to a
reduction in Material expense.

Personnel expense decreased byEUR 13,3 million:

50,5in relation tototal operating
performancein %21,245,3%

H1 2018/19

Personnel expense
1.308,545,5%

H1 2019/20

34,1%

Start of implementation of the efficiency
enhancement program adopted in the previous
financial year.

Introduction of short-time working at the beginning of
the current financial year.

Number of FTEs decreased from 1.340 to 1.176.

H1 2020/21

EBIT
1.340,3
Number ofFTEs

1.176,050,948,7



37,640,2%H1 2018/19

45,8%

H1 2019/20

60,5%

in relation tototal operating
performancein %H1 2020/21

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 10November 2020

2 Other operating expense ratio increased
KLINGELNBERG Group – Income and cost development (in M€)
Other operating income

The OOI of the first half of the 2018/19 financial
year contained outgoing invoices to the emitting
shareholder amounting EUR 1,2 million (IPO).

The decline of OOE of EUR 5,0 million was
mainly due to tight expense management, theabsence of travel activities due to the worldwide
travel restrictions in the wake of the Covid-19
pandemic, and significantly lower advertisingexpenses as a result of cancelled trade fairs,
also due to the pandemic. In addition, freightcosts fell significantly due to the decline in total
operating performance.

The other operating expense ratio increased by
4,8 percentage-points because of constant fixedcosts.

2,5

1,20,9H1 2018/19

H1 2019/20

H1 2020/21

Other operating expense
21,6
18,0
13,0

17,8%

H1 2018/19

16,2%

H1 2019/20

in relation tototal operating
performance
in %

21,0%

H1 2020/21

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 11

November 2020

2 EBIT slightly below previous year’s figure
KLINGELNBERG Group – EBITDA & EBIT development (in M€)
EBITDA
-1,4%

-8,1%



Significant decrease in total operating
performance by EUR 49 million.

Almost offset by the reduction ofmaterial (EUR +29,3 million),
personnel (EUR +13,3 million) andother operating expenses (EUR +5,0 million).

-13,1%-1,4EBITDA inrelation tonet sales
in %-7,1-8,1H1 2018/19

H1 2019/20

H1 2020/21

EBIT-4,7%-11,3%-17,3%EBIT inrelation tonet sales
in %-4,7-10,0
H1 2018/19

H1 2019/20-10,6
H1 2020/21

Notes: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
In H1 2018/19 adjusted EBITDA amounted to EUR -0,4 million and adjusted EBIT amounted to EUR -3,7 million.
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Presentation for Analysts and Investors  Slide 12November 2020

2 Liquidity was secured despite all economic problems
KLINGELNBERG Group – Balance sheet ratios (in M€)
Equity capital

Equity fell by EUR 31,0 million compared to H1
2019/20. Nevertheless, the equity ratio remains
above 50%.

Net change in cash was EUR +2,4 million in thefirst half of the 2020/21 financial year, which
represents an increase of EUR 22,3 million
compared to the same period of the previousyear.

148,9136,9117,9Equitycapital ratio

57,1%

H1 2018/19

59,5%

H1 2019/20

51,1%

H1 2020/21

Cash flow statement

Financing structure
7,34,6

1,42,4-1,2

41,2
8,1-15,0-5,8

8,7-19,0-37,5-19,9-24,1

H1 2019/20

H1 2020/21

CF from operating activities
CF from financing activities

CF from investing activities
Net change in cash

H1 2018/19

Cash and cash equivalents

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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H1 2019/20

H1 2020/21
Financial liabilities

Presentation for Analysts and Investors  Slide 13

November 2020

3 Enhanced efficiency program
KLINGELNBERG Group – Proactive in tackling challenges

Closing facility Györ/ Hungary• Integration finalized• Liquidation started
Ramp Down Ettlingen Site
• Cost Reduction Program on track• Organizational integration on schedule
Ramp Up Hueckeswagen Site
• Production of all new Cylindrical Gear machines started• Synergy Program in progress

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Presentation for Analysts and Investors  Slide 14

November 2020

4 Outlook
KLINGELNBERG Group No reliable Outlook possible
 Continuing:strict cost management and

efficiency enhancement program Order Intake of the last months developed positively

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Presentation for Analysts and Investors  Slide 15

November 2020

5 Q+A
KLINGELNBERG GroupKLINGELNBERG OPTICAL METROLOGY
Klingelnberg Optical Metrology is a clever combination of tactile and optical measuring technology. The extremely rapid changeover between the 3D NANOSCAN
tactile probing system and the optical sensor makes this a hybrid system that combines the advantages of both measurement methods. The high-precision tactile
measured value logging is ideally complemented by high-speed optical measured value logging with a high point density.

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Presentation for Analysts and Investors  Slide 16

November 2020

Appendix

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Presentation for Analysts and Investors  Slide 17

November 2020

Net debt is reduced by EUR 14,0 million
KLINGELNBERG Group – Balance sheet (in M€)
2019-09-30
ACTUAL Q2

2020-09-30
ACTUAL Q2

Deviations

Cash and cash equivalents

8,73%

41,218%32,5Receivables from goods and services

52,221%

33,515%-18,7-36%

Inventories

109,944%

88,538%-21,4-19%

Other current assets

9,54%

8,03%

-1,5-16%

Non-current assets

69,928%59,426%-10,5-15%

Total assets

250,2100%

230,6100%-19,6-8%

Short-term financial liabilities

15,16%

34,815%

19,7130%

Long-term financial liabilities

3,92%

2,71%

-1,2-31%

Payables from goods and services

12,85%

6,83%-6,0-47%

Other liabilities

69,528%68,430%-1,1-2%

Total equity

148,960%

117,951%-31,0-21%

Total liabilities and equity250,2

100%

230,6100%-19,6-8%

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