Financial Half-Year Statements
2019/20KLINGELNBERG AG
Binzmühlestrasse 1718050 Zürich, Switzerland
Fon: +41 44 278 7940
Mail: investorrelations@klingelnberg.com
Web: www.klingelnberg.com

1

KLINGELNBERG GROUP
Financial Half-Year Statements 2019/20

Dear Shareholders,

In recent months the global economy has seen significant changes:

 Globally, growth rates are slowing.
 In numerous markets and key sectors, we are facing the onset of a recession.
 Uncertainty about the consequences of Brexit and potential trade conflicts is increasing.
	Lack of clear political direction, for example regarding the future of free movement ofgoods and labor, is creating uncertainty in the investment strategies of key players andmajor manufacturers, typically those of the automotive industry.
These factors, together with several others, mean that, months ago already, the global economy,
which had persistently performed so well, experienced a reverse trend. Invariably with indicationsof a continuing economic slowdown, the machine building industry is one of the first to feel theimpact.
This current economic slowdown, in some cases even a recession, is different. It has happened
suddenly, is worrying particularly for the weaker players in our industry, while large sections of thegeneral public, the media and key political circles are still unaware of it. After a decade of economic
prosperity and boom, acceptance of this new reality is difficult. A further cause for concern is that,
unlike in previous recessions, politicians cannot cut interest rates as leverage. Currently, there issimply no longer scope for reductions in the face of zero or even negative interest rates.
Both in our industry and at your own company, KLINGELNBERG Group, this constellation has left
its mark. Whereas we were still able to report very respectable results in the previous financial
year, this year reveals a different picture. The global market environment has deteriorated further,requiring us to adjust our already cautious forecast issued at the beginning of this financial
year. Significant economic barriers persist and there are no foreseeable solutions to the primaryconflicts. The situation is also compounded by other obstacles at regional level. India, for example,
is still struggling with the consequences of changes in emissions standards from Euro 4 to Euro 6,
while the ongoing and sometimes exaggerated climate debate in Europe has prompted significant
hesitation among customers wanting to buy a car. Stagnating or even declining car sales havefar-reaching repercussions on industrial output, as their overall impact affects a broad networkof vehicle manufacturers and direct suppliers. That network, in turn, also causes uncertainty to
spread, creating an investment backlog across the industry as a whole.

2

KLINGELNBERG GROUP
Financial Half-Year Statements 2019/20

In the machine building sector, the first weakly positioned companies have exited the market.
With its solid foundations and sound financial base, Klingelnberg’s market position is sustainable,
but the company cannot and must not rest on its laurels. Contrary to what we expected at the
beginning of the year, the negative economic environment is not only challenging the bevel gear
sector. Rather, indirect networks mean that our entire equipment range, on which component
volumes are processed on scales similar to the automotive industry, is coming under pressure,for example, as a result of investment backlogs in that same industry. In concrete terms, thismeans that orders for smaller cylindrical gear and measuring centers are also falling short of our
expectations at the start of the year.
The effects can already be seen in the half-year result, with both revenues and earnings (EBIT)
lower than planned earlier.
At around EUR 10,7 million, net revenues in the first half of the fiscal year were down on theprevious fiscal year (decrease from EUR 99,1 million to EUR 88,4 million).
Operating EBIT also fell by around EUR 5,3 million year on year.

Enhanced efficiency
Watching and waiting is not our style. We respond proactively to economic slowdowns, boosting
our efficiency, streamlining company structures while simultaneously investing in promising
sectors, even in times of crisis. KLINGELNBERG Group will implement a comprehensive program
dedicated to enhancing efficiencies. The objectives are to significantly lower operating costs while
continuing to optimize business processes.
We will also expand our sales organization to exploit new opportunities in the areas of non-gear,
digitalization and complete machining whenever they arise. Moreover, we will continue to adapt
our service products to match current market constraints and to expand our refurbishment andretrofit activities.

Business performance trends
Customary seasonal trends seen in previous years were also apparent in the ongoing fiscal year.
Usually, 30% – 40% of transaction value is generated in the first six months. We are cautiously
optimistic that we can achieve correspondingly stronger net sales in the second half of the year
and hence a higher contribution to earnings.

3

KLINGELNBERG GROUP
Financial Half-Year Statements 2019/20

For the financial year 2019/20, we anticipate a decline in sales around 15-20%. We continue to
expect a positive operating result without taking into account potential one-off expenses for theefficiency enhancement program already announced.
We wish to emphasize that KLINGELNBERG Group is very well positioned to manage the impactof the market parameters described above. We are proactive in tackling adverse challenges, weare global leaders in our field of technology and our customers have confidence in our company.
We do not adopt a passive approach. Not least because that is what we owe you, our valued
shareholders.

Dr. Jörg Wolle
Chairman of the Board of Directors

Jan Klingelnberg
CEO

Zurich, 12 November 2019

4

KLINGELNBERG GROUP
Financial Half-Year Statements 2019/20

Financial report

Segments and markets
Worldwide industrial production is down and the automotive industry in particular is currently
in an identity crisis, all of which is impacting the current financial results of the KLINGELNBERG
Group. Compared with the previous year, net sales decreased by EUR 10,7 million to EUR 88,4 million.
While the Cylindrical Gear segment increased its net sales by EUR 4,1 million compared with theprevious year, the automotive crisis is negatively impacting the Bevel Gear and Measuring Centerssegments in particular.

 Bevel Gear segment:
The Bevel Gear segment ended the first half of the 2019/20 financial year with net sales of
EUR 35,0 million, around EUR 6,0 million below the previous year’s figure. This is from our point ofview caused by uncertainty regarding future emission regulations on one side and still imperfectalternative drive concepts such as e-mobility on the other side. Both lead to a slow down in car
sales. The automotive industry is therefore cautious investing in conventional drive technology
and focuses on maintaining production. As consequence we are experiencing less demand on newmachine projects and more demand for retrofits and overhauling activities.

 Cylindrical Gear segment:
The Cylindrical Gear segment recorded a satisfactory order and sales situation at the end of thefirst half of the year. Net sales increased by EUR 4,1 million compared with the previous year andtotaled EUR 22,8 million.
Growth came from the non-automotive sector, in particular the mining and wind energy sector.
After a prolonged phase of very low investments, mining and wind energy have started recoveringover the last years. Especially Asia seems to be on the forefront of this upswing.
In light of increased awareness for global warming renewable energy should benefit. Similar we
expect the mining industry investments to benefit from demand for lithium and cobalt, both usedin battery production for electric vehicles.

5

KLINGELNBERG GROUP
Financial Half-Year Statements 2019/20

 Measuring Centers segment:
In the Measuring Centers segment, there was a significant decline by EUR 9,1 million to
EUR 21,0 million compared with the same period of the previous year. As in the Bevel Gear segment,
Measuring Centers are also heavily dependent on the automotive sector.
As a result, almost all investment decisions, especially in major projects, have been postponed.
Nevertheless, we remain positive to compensate this decline partly by marketing our new opticalmetrology solutions as well as penetrating new applications. We have successfully entered themarket segments for rings of roller bearings and cycloid gears for robotics. Both will over timecreate significant growth opportunities.

 Drive Technology segment:
The Drive Technology segment closed the first half of the financial year 2019/20 with sales ofaround EUR 5,9 million, surpassing the previous year’s figure by around EUR 1,0 million. This
increase in output is due mainly to increased incoming orders in the fourth quarter of the last
financial year with additional impetus from the global mining industry.
After many years of reluctance to invest due to consolidation, the returns of the global mining
groups rose to almost record levels in 2018 and also caused an uptick in the Drive Technology
segment of the KLINGELNBERG Group.

Gross profit
Net sales reduction of EUR 10,7 million and a slight increase in change in inventory of
EUR 0,6 million compared with the prior-year period resulted in a decrease in total operating
performance of EUR 10,1 million. Lower net sales are due to the impaired dynamics of the global
economy as described above.
Driven by decline in operating performance, material expense decreased by EUR 4,4 million. The
materials ratio rose slightly to 45,5%, 0,2 percentage points above the previous year’s level.

Personnel expense and employees
Personnel expense totaled EUR 50,9 million at the end of the financial half-year, up EUR 2,1 million
from the same period last year, due mainly to the collective bargaining agreement for the metaland electrical engineering industry that was concluded in February 2018. The rise of personnel

6

KLINGELNBERG GROUP
Financial Half-Year Statements 2019/20

expense in relation to the significant lower total operating performance resulted in an increaseof the personnel expense ratio of 5,6 percentage points to 45,8%. The KLINGELNBERG Group had
1.340 employees as of 30 September 2019 (compared to prior-year period +32 employees).

Other operating expense
Other operating expense were below the previous year’s figure by EUR 3,6 million, totaling
EUR 18,0 million at the end of the first half of the financial year. This reduction is partly the resultof lower legal and consulting expenses from one-off IPO costs in the same period last year.
The decrease of the other operating expense was achieved by savings in IT, travel and building
maintenance expenses. The ratio of other operating expense to total output decreased from
17,8% to 16,2%.

Operating result
Net sales decreased to EUR 88,4 million in the first half of the year. Despite the fact that material
expense and other operating expense were also lower, the operating result (EBIT) fell by
EUR 5,3 million to EUR -10,0 million.

Balance sheet
The balance sheet total of the KLINGELNBERG Group decreased by EUR 5,2 million compared withthe financial statements for 31 March 2019 and totaled EUR 250,2 million on 30 September 2019.
Non-current assets increased by EUR 3,9 million (+5,8%), while current assets fell by EUR 9,0 million(-4,8%). Inventories increased by EUR 27,0 million, cash and cash equivalents decreased by
EUR 19,9 million and receivables from goods and services fell by EUR 18,7 million. The increase
in inventories results from the usually spread of sales over the financial year with a significant
increase in the second half-year.
Equity fell by EUR 14,1 million (-8,6%) to EUR 148,9 million compared with the financial statementsfor 31 March 2019. Two effects were decisive: the distribution of profit of EUR 8,1 million andcurrent net profit of EUR -8,1 million. As a result, the equity ratio dropped by 4,3 percentage
points to 59,5% compared with 31 March 2019.
Total liabilities grew by EUR 8,9 million compared with 31 March 2019 and totaled EUR 101,3 million
as of 30 September 2019. This significant increase is due mainly to the rise of short-term financial
liabilities.

7

KLINGELNBERG GROUP
Financial Half-Year Statements 2019/20

Net debt increased by EUR 32,5 million and totaled EUR 10,3 million at the end of the six-month
period. Overall, KLINGELNBERG Group is financially well positioned for the future.

Cash flow statement
The cash flow from operating activities totaled EUR -24,1 million due to the increase in inventories
of work in progress, which is necessary in order to achieve the increase in net sales in the second
half of the financial year.
The cash flow from investing activities developed positively due to lower investments in tangible
fixed assets as a result of the completion of the Manufacturing 2020 investment program.
The cash flow from financial activities amounted to EUR +4,6 million, while financial liabilities of
EUR +12,7 million were recorded, profit distribution totaled EUR -8,1 million.
Overall, the net change in cash flow totaled EUR -19,9 million in the first half of the year
(EUR -19,4 million compared with the same period last year).

Outlook
For the financial year 2019/20, we anticipate a decline in sales around 15-20%. We continue to
expect a positive operating result without taking into account potential one-off expenses forthe efficiency enhancement program already announced. The nature and scope of this program
are currently being worked out. According to German labor law employee representatives are
involved in this discussions. Results of these negotiations and milestones of execution will be
communicated in due time.

8KLINGELNBERG GROUP
Financial Half-Year Statements 2019/20

Group key figures

EUR million

01.04.2019 30.09.2019(unaudited)

01.04.2018 30.09.2018(unaudited)

Change01.04.2018 31.03.2019

Net sales from goods and services

88,4

99,1

-10,7

278,2

Order intake

105,3

124,5

-19,2

265,2
30,0

Operating result

-10,0

-4,7

-5,3

Operating result (adjusted, without IPO cost)

-10,0

-3,7

-6,3

31,1

Net profit

-8,1

-4,8

-3,3

19,2

Basic earnings per share (in EUR)*

-0,92

-0,56

-0,36

2,20

Diluted earnings per share (in EUR)*

-0,92

-0,56

-0,36

2,20

Operating result as % of net sales from goods
and services-11,3%

-4,7%

-6,6%

10,8%

Operating result (adjusted, without IPO cost)
as % of net sales from goods and services-11,3%

-3,7%

-7,6%

11,2%

Net profit as % of net sales from goods andservices

-9,2%

-4,9%

-4,3%

6,9%

Cash flow from operating activities

27,6

-24,1

-4,9

-19,2

Investments

1,5

2,5

-1,0

7,8

Free cash flow

-25,3

-6,7

-18,6

22,0

Employees (FTE)

1.340,3

1.308,531,81.310,030.09.2019

31.03.2019

Change30.09.2018

Total liabilities and equity

250,2

255,4

-5,2

239,6

Net debt

10,3

-22,2

32,5

6,9

Total equity

148,9

163,0

-14,1

136,9

Equity ratio

59,5%

63,8%

-4,3%

57,1%

EUR million* Due to the share split, the earnings per share as of 30 September 2018 and 31 March 2019, were adjusted for comparibility.
Our calculation took this into account with 1/200 of the earnings per share as of 30 September 2018 and 31 March 2019.

9

KLINGELNBERG GROUP
Financial Half-Year Statements 2019/20

Consolidated income statement

EUR 000
Net sales from goods and services
Other operating income

01.04.2019 30.09.2019

01.04.2018 30.09.2018

01.04.2018 31.03.2019

88.38999.057278.214

917

2.487

7.424

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

22.70422.138-419

Material expense-50.548-54.945-108.330

Personnel expense-50.856-48.723-101.248

Depreciation on tangible fixed assets-2.639-3.057-5.902

-240

-238

-472

-17.974-21.553-39.875

245

182

587

-10.002-4.65229.979-1.439-1.740-3.167-11.441-6.39226.812

Income taxes

3.316

1.570

-7.596

Net profit-8.125-4.82219.21601.04.2019 30.09.2019

01.04.2018 30.09.2018

01.04.2018 31.03.2019

Amortization on intangible assets
Other operating expense
Share of result from joint ventures
Operating result
Financial result
Profit before income taxes

Earnings per share
EUR
Basic earnings per share
Diluted earnings per share

-0,92

-0,56

2,20

-0,92

-0,56

2,20

01.04.2019 30.09.2019

01.04.2018 30.09.2018

01.04.2018 31.03.2019-7.123-1.35736.353

Additional information - non-GAAP measures
EUR 000
EBITDA

10KLINGELNBERG GROUP
Financial Half-Year Statements 2019/20

Consolidated balance sheet
30.09.2019

30.09.2018

31.03.2019

Cash and cash equivalents
Receivables from goods and services
Derivative financial instruments
Other short-term receivables
Inventories
Prepayments and accrued income
Total current assets

8.750
52.23844
8.157
109.880
1.262
180.3318.111
49.92410
8.566
103.075912
170.598

28.69570.98181
5.472
82.8701.264
189.363

Non-current assets
Tangible fixed assets
Loans and other receivables
Investments in joint ventures
Deferred tax assets
Other financial assets
Intangible assets
Total non-current assets
Total assets

51.521104
2.368
13.2091.058
1.602
69.862250.19351.044757
1.719
13.253637
1.615
69.025239.62352.876
350
2.123
8.159
796
1.705
66.009255.372

Short-term financial liabilities
Payables from goods and services
Derivative financial instruments
Other short-term liabilities
Accrued liabilities and deferred income
Short-term provisions

15.07612.761632
31.86813.4966.319

9.459
18.601
312
29.48413.6296.702

1.735
16.259457
29.05516.335
7.757

Total current liabilities

80.15278.18771.598Non-current (long-term) liabilities
Other long-term financial liabilities
Deferred tax liabilities
Long-term provisions

3.940
2.061
15.1525.505
2.746
16.2714.722
1.703
14.381

Total non-current (long-term) liabilities

21.15324.52220.806

Total liabilities

101.305

102.70992.404EquityShare capital
Capital reserves
Retained earnings
Total equity
Total liabilities and equity

28.63943.13477.115148.888
250.19328.63951.26757.008136.914239.623

28.63951.26783.062
162.968
255.372

EUR 000
AssetsCurrent assets

Liabilities
Current liabilities

11

KLINGELNBERG GROUP
Financial Half-Year Statements 2019/20

Consolidated cash flow statement
01.04.2019 30.09.2019

01.04.2018 30.09.2018

01.04.2018 31.03.2019

Net profit-8.125-4.82219.216

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

2.879

3.295

6.374

Change in provisions (including deferred taxes)

-310

-603

-2.307

1

16

-716

EUR 000

Profit / loss from the disposal of tangible fixed assets
and intangible assets
Change in receivables from goods and services

19.93023.7683.083

Change in inventories-27.377-26.404-7.310Change in other receivables and prepayments and accrued
income (including deferred tax)

-7.585-1.626

6.202

Share of loss / profits from the application of the equity
method

-245

-182

-586

Change in payables from goods and services-3.4982.743

454

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

783-1.7372.040

Other non-cash items

-519

624

1.137

-24.066-4.92827.587

-16

659

815

Cash flow from operating activities
Inflows / outflows for investment in financial assets(including loans, participations, securities, etc.)
Outflows for investment in tangible fixed assets-1.396-2.334-7.268

Inflows from the sale of tangible fixed assets

318

34

1.366

Outflows for investment in intangible assets

-139

-177

-500

Cash flow from investing activities-1.233-1.818-5.587

Distribution of profits-8.1330

0

Repayment / issuance of short-term financial liabilities

12.726-13.514-21.949019.77019.770

4.593

6.255

-2.179

761

-30

242

Net change in cash

-19.945-521

20.063

Opening balance of cash and cash equivalents at
01.04.

28.695

8.632

8.632

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

8.750

8.111

28.695-19.945-521

20.063

Inflows from capital increase
Cash flow from financing activities
Currency translation effects

Net change in cash

12

KLINGELNBERG GROUP
Financial Half-Year Statements 2019/20

Consolidated statement of changes in equity
Retained earnings

EUR 000
Balance as at 01.04.2018
Capital increase

SharecapitalCapitalreserves

Goodwill
offset withequity26.7261.913

33.41017.857-20.517
0

Otherretainedearnings

Cumulative
foreigncurrency
differences

76.22804.414
060.1250120.261
19.7701.823

Total
retainedearnings Total equity

Currency translation differences

0

0

0

0

1.823

1.823

Net result from cash flow hedges

0

0

0

-118

0

-118

-118

Net profit

0

0

0

-4.8220-4.822-4.822

Balance as at 30.09.2018

28.63951.267-20.51771.2886.237

57.008136.914

Balance as at 31.03.2019

28.63951.267-20.51795.3578.222

83.062

162.968

Balance as at 01.04.2019

28.63951.267-20.51795.3578.222

83.062

162.968

Currency translation differences

0

0

0

0

2.157

2.157

2.157

Net result from cash flow hedges

0

0

0

21

0

21

21

Dividends

0-8.13300

00-8.133

Net profit
Balance as at 30.09.2019

0

0

0

-8.1250-8.125-8.12528.63943.134-20.51787.25310.37977.115148.888

13

KLINGELNBERG GROUP
Financial Half-Year Statements 2019/20

Notes to the half-year financial
statements 2019/20
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 2019. 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 2019/20 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 at 31 March 2019 (published 09 July 2019).
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 normal
commercial practice. Thus, an addition of the figures presented can result in rounding differences.

2. Changes in the scope of consolidation
The Group consolidation structure has not changed since 31 March 2019.

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 years ended 30 September 2019 / 2018 and 31 March 2019.
Period-end exchange rates

CHF/EUR

Average exchange rates

30.09.2019

31.03.2019

30.09.2018

01.04.2019 30.09.2019

1,08695

1,11835

1,13100

1,1112001.04.2018 31.03.2019

01.04.2018 30.09.2018

1,14682

1,15928

USD/EUR

1,09220

1,12305

1,15815

1,12428

1,15812

1,17765

JPY/EUR

117,87025

124,37215

131,36320

121,39618

128,41348

129,88308

14

KLINGELNBERG GROUP
Financial Half-Year Statements 2019/20

4. 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 termsof our profitability and distribution margins as well as our cost calculations. Please read theconsolidated half year statements under review in conjunction with the consolidated financial
statements at 31 March 2019 (published 09 July 2019).
Net sales from goods and services

01.04.2019 - 30.09.2019
Service location

EUR 000
Segments

Rest of the
World

Total

10.9602.911

35.023

3.090

3.183

22.816

3.524

1.878

1.568

20.998

0

0

57

5.877

0

34

0

3.495

3.675

16.011

8.801

15.928

11.21488.389Germany

Switzerland

Japan

USA

Bevel Gear

6.356

12.5672.229

Cylindrical Gear

10.685

2.844

3.014

Measuring Centers13.428600

Drive Technology

5.820

0

Other

146

Total

36.435Net sales from goods and services

01.04.2018 - 31.03.2019
Service location

EUR 000
Segments

Germany

Switzerland

Japan

USA

Rest of the
World

Total

Bevel Gear

23.61370.8754.818

13.6599.509

122.474

Cylindrical Gear

31.036

3.099

6.917

9.120

2.947

53.119Measuring Centers53.226

4.699

9.962

6.365

6.136

80.388

Drive Technology

13.30813.181

0

0

0

127

Other

425

0

125

0

8.375

8.925

Total

121.48178.67321.82229.14427.094278.214

Net sales from goods and services

01.04.2018 - 30.09.2018
Service location

EUR 000
Segments

Germany

Switzerland

Japan

USA

Rest of the
World

Total

Bevel Gear

9.978

21.080

1.747

3.392

4.814

41.011

Cylindrical Gear

13.707

0

1.172

2.471

1.363

18.713

Measuring Centers21.551

1.396

2.045

2.494

2.607

30.093

Drive Technology

4.854

0

0

0

42

4.896

Other

320

0

0

0

4.024

4.344

Total

50.41022.476

4.964

8.357

12.85099.057

5. Investments in associated companies and joint ventures
In the first half year 2019/20 as well as 2018/19, there were no changes in investments in associatedcompanies and joint ventures.

15

KLINGELNBERG GROUP
Financial Half-Year Statements 2019/20

6. 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.
Theoretical impact on equity
EUR 000

30.09.2019

31.03.2019

30.09.2018

148.888

162.968

136.914

Equity according to balance sheet
Theoretical net carrying amount goodwill

4.517

5.225

6.128

153.405168.193143.04230.09.2019

31.03.2019

30.09.2018-8.12519.216-4.822-708-1.804-902-8.83317.412-5.724

Theoretical equity incl. net carrying amount of goodwill
Theoretical effect on income statement
EUR 000
Net profit
Theoretical amortisation of goodwill
Theoretical net profit

7. Shares
At 09 June 2018 the general assembly decided to split the shares from 1.000 CHF/per shareto 5 CHF/per share and to increase the share capital by 440.000 registered shares with anominal value of CHF 5 each. These new shares increased the share capital by CHF 2,2 million(EUR 1,9 million) and the capital reserve by CHF 20,5 million (EUR 17,9 million). The capital increase
was carried out on 19 June 2018.

8. Significant events and business transactions
During the period under review, no material events or business transactions occurred that might
have an impact on the critical estimates, appraisals and assumptions to be found in the consolidated
financial statements as at 31 March 2019.
The capital increase has been mostly used for the repayment of short-term liabilities until thefinancing of investments.
The standard intra-year seasonal trends of recent years can also be seen in this year’s businessperformance. In general, approximately 30% to 40% of total sales are generated in the first half ofthe year. As a result, sales are projected to be stronger and therefore profits higher in the second
half of the year.

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KLINGELNBERG GROUP
Financial Half-Year Statements 2019/20

9. Definition of alternative performance measures
EBITDA:
Earnings before interest, income tax, depreciation and amortization (EBITDA) as a subtotal
includes the operating result (EBIT) plus depreciation on tangible fixed assets and amortization
on intangible assets.
EBIT:
The operating result (Swiss GAAP FER) excluding non-operating and extraordinary results.

10. Events after the closing dateOn 14 October 2019, Klingelnberg announced that due to a significant global slowdown in theautomotive industry and engineering markets it is in the process of developing a comprehensive
program to enhance Klingelnberg's efficiency by, amongst others, reducing Klingelnberg's
operating costs and streamlining its processes. The structure and scope of the efficiency
enhancement program, which is in early preparation stage only, are not determined and any
potential related costs cannot be estimated yet. Other than that, there are no other significant
events after the balance sheet date.

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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 Zurich (Switzerland), KLINGELNBERG now develops and manufactures at its
sites in Zurich (Switzerland), Hueckeswagen and Ettlingen (Germany), as well as in Győr (Hungary).
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 thegeneral transmission manufacturing industry. 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 14001 certification and participation in the VDMA’s Blue Competence
initiative give credence to the company’s sustainable, environmentally sound business practices.
The shares of KLINGLENBERG AG are listed on the SIX Swiss Exchange (KLIN).

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

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