KLINGELNBERG AG
Precision gearing champion with Swiss and German heritage

Presentation forAnalysts and Investors
Financial Report 2020/21
Zürich, June 2021

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Presentation for Analysts and Investors  Slide 2

June 2021

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 2021

Agenda1

Introduction and Key facts

2

Financial results

3

Outlook

4

Q&A

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Presentation for Analysts and Investors  Slide 4

June 2021

1 Key facts 2020/21

1

Corona pandemic induced drop in net sales by 25,2%2

Due to consequent cost and cash savings during thepandemic the balance sheet remained rock solid

3

EBIT improved by EUR 7,2 million resulting in a loss of EUR
11,6 million

4Order intake increased by EUR 21,0 millionƒ(+10,8%) to EUR 215,5 million

5

Positive Outlook for 2021/22

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Presentation for Analysts and Investors  Slide 5

June 2021

2 Order intake recovered and led to increased order backlog
KLINGELNBERG Group – Sales and orders (in €m)

Net sales

Order intake

300,0300,0250,0250,0200,0200,0150,0257,0150,0278,2212,1100,0158,750,0265,2
194,5215,5

2019/20

2020/2150,00,00,02017/18

2018/192019/20

2020/21

Order backlog
200,0150,0

2017/18157,7130,7118,2100,7

2017/18

2018/192019/20

0,0KLINGELNBERG Tradition

2020/21

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2018/19Net sales decreased by 25,2% compared to theprevious year.

Order intake rose by EUR 21,0 million toEUR 215,5 million.

Due to a high order intake in the second half ofour financial year the order backlog increased to
EUR 157,7 million.

100,050,0263,2100,0

Presentation for Analysts and Investors  Slide 6June 2021

2 As expected: decline in machine sales / even aftersales business wasslowed down by the restrictions of the pandemic in the first half year
KLINGELNBERG Group – Sales (in €m)
Net sales split by…
(2020/21)

CAGR-24,5%

machines and services

278,232%

68,3

158,7

212,168%

64,2

158,751,0

sales region

209,916%147,8
107,740%
158,7

2018/192019/20

2020/21Net 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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44%

EMEA

Americas

APAC

Presentation for Analysts and Investors  Slide 7

June 2021

2 Bevel Gear segment with noticeable signs of recovery
Bevel Gears development (in €m)
Net sales

Order intake

Nettoumsatz

CAGR
Auftragseingang-14,4%

CAGR-35,9%

122,5

110,3
80,984,764,950,4

2018/192019/20

2020/212018/192019/20

2020/21

Order backlog

CAGR
Auftragsbestand
10,0%

59,649,2

With the ramp-up of global production in the second
half of the financial year, noticeable signs of recovery
could be seen in the segment’s order books.

In addition to an upturn in new machine business, thethriving service business in connection with retrofits
and refurbishments also contributed to thisdevelopment.

29,1

2018/192019/20

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 8June 2021

2 Measuring Centers segment with declined figures, but with upward

trends towards the end of the financial year
Precision Measuring Centers development (in €m)
Net sales

Order intake

CAGR
Auftragseingang-17,4%

CAGR-20,8%

Nettoumsatz

80,476,0
57,3

2018/192019/20

57,3

50,5

2020/212018/192019/2051,9

2020/21

Order backlog

CAGR
Auftragsbestand
3,5%

19,6

2018/19

19,6

2019/20



In line with the overall development, there were also
signs of a recovery in the measuring equipment sector
in the second half of the financial year:
Recovery from the automotive and commercial vehicle
sectors drove the development of this segment.

Increasing quality-requirements for electric vehicles led tohigher demand for quality assurance equipment

21,0

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 9June 2021

2 Cylindrical Gear segment proved resilient
Cylindrical Gears development (in €m)
Net sales

Order intake

Nettoumsatz

CAGR
Auftragseingang
11,7%

CAGR
-7,4%

72,0
53,1

49,4

45,6

2018/192019/20

2020/2157,754,4

2018/192019/20

2020/21

Order backlog

CAGR
Auftragsbestand34,3%

Due to the economic burden related to thecoronavirus pandemic net sales cooled of from EUR
49,4 million in 2019/20 to EUR 45,6 million.

New impulses arose from China’s drive to carbon
neutrality leading to higher demand for large grinding
machines serving the wind energy and mining market.

70,5
39,1

2018/19

44,1

2019/20

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 10

June 2021

2 Drive Technology with slumped figures, but with positive trend at theend of the financial year
Drive Technology development (in €m)
Net sales

Order intake

NettoumsatzCAGR
Auftragseingang-20,6%

CAGR-18,0%

13,3

13,7

13,3

11,8

8,9

2018/192019/20

8,4

2020/212018/192019/20

2020/21

Order backlog

CAGR
Auftragsbestand-15,7%

8,4

2018/19

6,5

5,9

2019/20

2020/21Drive Technology segment ended with net sales of
EUR 8,9 million and therefore 34,5% below theprevious financial year. Also this decline was causedby the pandemic.

In the last two months of the financial year orderintake picked up significantly and has since remainedat the previous year's level.

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

June 2021

2 Operating result improved significantly
Income statement KLINGELNBERG GroupNet 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 2018/19
ACTUALFY 2019/20
ACTUALFY 2020/21
ACTUAL

278,2
7,4-0,4-108,3-101,2-5,9-0,5-39,90,630,0-3,2
26,8-7,6
19,2

212,1
2,8
10,6-90,6-110,6-5,3-0,5-37,70,5-18,8-2,1-20,9-4,5-25,4

158,7
1,9-5,8-52,0-83,7-4,6-0,4-26,2
0,6-11,6
2,2-9,4
2,1-7,3

100%
3%
0%
-39%
-36%
-2%
0%
-14%
0%
11%
-1%
10%
-3%
7%

100%
1%
5%
-43%
-52%
-3%
0%
-18%
0%-9%
-1%
-10%
-2%
-12%

100%
1%-4%-33%
-53%
-3%
0%
-17%
0%
-7%
1%
-6%
1%
-5%

Deviations
2020/21 vs. 2019/20-53,4-1,0-16,5
38,6
26,9
0,8
0,0
11,5
0,2
7,2
4,3
11,5
6,5
18,1

-25%
-34%
-155%
43%
24%
15%
9%
31%
30%
38%
55%
146%
71%

Strict cost management and implementation of the Efficiency Enhancement Program and preservation of liquidity has
characterized the last financial year and led to an improved EBIT by EUR 7,2 million compared to 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 12

June 2021

2 Other operating expense adjusted to total operating performance
Income and cost development of the KLINGELNBERG Group (in €m)Other operating income
CAGR-50,1%



Other operating income decreased by34,2% compared to the previous financial year.
Among other things, this is due to thecapitalization of a lower number of rental anddemonstration machines.

Due to strict cost management, other operating
expense was significantly reduced. In addition,
as a result of the pandemic, the reduction
resulted, for example, from

7,4

2,8

2018/19

1,9

2019/20

2020/21Other operating expense

CAGR
EBIT
-16,7%



38,7

37,7
26,2

13,9%

2018/19*

16,9%

2019/20in relation tototal
operatingperformance
in %
17,1%

lower travel costs (EUR -3,2 million),canceled trade fair appearances and other reduced
marketing costs (EUR -1,4 million),and lower freight charges (EUR -1,3 million).

The other operating expense ratio was 17,1%
at the end of the financial year and was thus
almost at the previous year's level(+0,2 percentage points).

2020/21*adjusted, without IPO costs
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 2021

2 Material and Personnel expenses decreased due to management

decisions
Income and cost development of the KLINGELNBERG Group (in €m)Material expense
CAGR-30,7%

108,390,652,039,0%

2018/1940,7%

2019/20Personnel expenseManagement actively reduced the output of thecompany adjusting to the pandemic situation(esp. reduction of pre-order manufacturing).

The decrease of personnel expense is mainly
due toin relation tototal
operatingperformance
in %
34,0%

2020/21


CAGR
EBIT
-9,1%




110,6

101,2

83,7

36,4%

2018/1949,7%

2019/20in relation tototal
operatingperformancein %

the provision booked in the previous year for theEfficiency Enhancement Program (EUR 8,6 million),short-time work (EUR 6,4 million),the personnel cost savings as part of the Efficiency
Enhancement Program (EUR 5,2 million),and a reduction in costs for overtime and shiftpremiums (EUR 2,4 million).

54,8%

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 14

June 2021

2 EBIT recovered and was moving in the correct direction
EBITDA & EBIT development (in €m)
EBITDAEBITDAEBITDA inrelation tonet salesin %37,513,5%

2018/19*-12,9-6,1%

2019/20

EBIT-6,6

EBIT inrelation tonet salesin %2018/19*2019/20

The EBIT improved significantly by
EUR 7,2 million compared to the previous year
and amounted to EUR -11,6 million at the endof the 2020/21 financial year.

2020/2131,1-18,8

Strict cost management and implementation ofthe Efficiency Enhancement Program andpreservation of liquidity has characterized thelast financial year and led to an improved EBIT
by EUR 7,2 million compared to the previous
financial year.

-4,1%

EBIT

11,2%



-8,9%

-11,6-7,3%

2020/21*adjusted, without IPO costs
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 2021

2 Cash flow…from operating activities amounts EUR 7,6 million (in €m)Cash flow from operating
activities increased by
EUR 9,8 million to
EUR 7,6 million.

Short-term financial liabilities
decreased by EUR 21,9 million
in the expired 2020/21 financialyear. Cash flow from financing
activities decreased by
EUR 38,5 million.

Capital expenditures on tangible fixed assets
CAGR-29,7%

7,3
5,4
3,6

2018/192019/20

2020/21

Cash Flow
15,4
10,0

2020/21
7,6
Cash flow from operating activities

1,1

Cash flow from investing activities-2,2-0,3-0,4Cash flow from financing activities-4,2

Currency translation effects-16,2

2019/20

Net change in cash

-23,1
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 16

June 20212 KLINGELNBERG Group continues to have a stable financial position
Balance sheet ratios (in €m)
Trade Working Capital
137,6125,471,043,089,049,5%

in % of netsalesThe equity ratio of 55,6% remained solid.

80,559,1%

68,6%-16,3-10,8-14,7

2018/192019/20

2020/21

Inventories

Despite the crises KLINGELNBERG was able toimprove its net cash from EUR 8,7 to EUR 15,5million.

108,847,282,9

Receivables from g/s

Payables from g/s

Financing structure

Equity capital
CAGR-14,0%

163,028,738,7131,622,6-6,5120,5-7,0

Equitycapital ratio-30,1

2018/192019/20

Cash and cash equivalents

63,8%

2020/21
Financial liabilities

2018/1953,7%

2019/20

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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55,6%

2020/21

Presentation for Analysts and Investors  Slide 17

June 2021

3 Outlook

We expect: Strong demand for large grinding machines, driven by the windenergy market in China,
 strong demand for measuring machines driven by quality initiatives inChina and India,
 strong demand for measuring machines for e-mobility applications
and mid-term also for generating grinding machines,
 recovery effects for bevel gear equipment after the pandemic.
All of this will lead to a significant increase in sales and apositive EBIT in the upper single-digit million range for the2021/22 financial year.
Operating inefficiencies due to difficult supply chain and compressed
production time-line.

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Presentation for Analysts and Investors  Slide 18

June 2021

4 Thank you! – Q+A
KLINGELNBERG wins German Innovation Award 2021

The German Innovation Awards honor products and solutions that distinguish themselves from earlier solutions primarily by
their user centricity and added value. The German Innovation Awards are granted by the German Design Council, which
was enacted into law by the German Parliament in 1953 and is funded by the Federation of German Industries (BDI).

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Presentation for Analysts and Investors  Slide 19

June 2021

Appendix

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Presentation for Analysts and Investors  Slide 20

June 2021

KLINGELNBERG GroupBalance sheet (in €m)
FY 2019/20
ACTUALFY 2020/21
ACTUAL

Deviations

Cash and cash equivalents

38,716%

22,610%-16,2-42%

Receivables from goods and services

47,219%43,020%-4,1-9%Inventories

89,036%80,537%-8,5-10%

Other current assets

6,93%

7,84%

0,913%

Non-current assets

63,126%

63,129%-0,10%

Total assets

244,9100%

216,9100%-28,0-11%

Short-term financial liabilities

27,111%

5,32%-21,7-80%

Other long-term financial liabilities

3,01%1,71%-1,3-43%

Payables from goods and services

10,84%

14,77%

3,936%

Other liabilities

72,530%74,734%

2,23%

Total equity

131,654%

120,556%-11,0-8%

Total liabilities and equity

244,9100%

216,9100%-28,0-11%

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