KLINGELNBERG AG
Precision gearing champion with Swiss and German heritage

Presentation forAnalysts and Investors
Financial Report 2018/19
Zurich, July 2019
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Presentation for Analysts and Investors  Slide 2

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-lookingstatements. 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 3Agenda

1

Introduction and Highlights

2

Financial results

3Projects

4

Outlook

5Q&A

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Presentation for Analysts and Investors  Slide 41 Highlights of 2018/19

1

Record-high in sales and order intake

2

Adj. Operating result (EBIT) of EUR 31,1 million

3

Net change in cash rises to EUR 20,1 million

4Strong equity ratio of 64%

5

Market entry of Speed Viper on track

6

Proposed dividend amounts to CHF 1,00 per share (Payoutratio of approx. 40%)KLINGELNBERG Tradition

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Presentation for Analysts and Investors  Slide 5

2 Sales of EUR 278 million at upper end of promised range
KLINGELNBERG Group – Sales and orders (in €m)
Net sales

Order intake

300,0300,0250,0250,0200,0200,0150,0100,0226,9231,0257,0278,2150,0100,050,0263,2265,2

2015/162016/172017/18

2018/190,0
2015/162016/172017/18

2018/19

Order backlog
140,0

Net sales grew by 8,2% reaching a record-high ofEUR 278,2 million. So net sales were on track asguided.

Order intake rises by EUR 2,0 million to EUR
265,2 million.

120,0100,080,040,0253,450,00,060,0228,4102,9124,9130,7118,2

2016/172017/18

2018/19

20,00,0
2015/16

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Presentation for Analysts and Investors  Slide 6

2 Solid growth in machine sales was complimented by even stronger

growth in aftersales business
KLINGELNBERG Group – Sales (in €m)
Net sales split by…
(2018/19)

CAGR
9,7%machines and services

278,2
257,0
231,0

25%

68,3

278,2

60,3
58,4

75%

sales region

196,7

172,6

209,9
17%
278,2

2016/172017/18

Net sales from machines

Net sales from services, tools and fixtures

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2018/19

40%

43%

EMEA

Americas

APAC

July 2019

Presentation for Analysts and Investors  Slide 7

2 Bevel Gear segment sales cooling off slightly
Bevel Gears development (in €m)
Net sales

Order intake

Nettoumsatz

CAGR
Auftragseingang
-8,0%

CAGR
4,4%

112,4

2016/17

124,8

122,5

2017/18

2018/19130,3

2016/17112,3

110,32017/18

2018/19

Order backlog

CAGR
Auftragsbestand-18,8%

74,6

2016/1761,7

2017/18

The impending trade conflicts, unclear Brexit
situation and current discussions on electric
mobility in particular are leading to restrained
economic activity in the automotive industry.

At the end of the financial year, order intake
was approximately EUR 2,0 million or 1,8%
down on the previous year.

49,2

2018/19

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 8

2 Measuring Centers business continuous sales growth by newapplications
Precision Measuring Centers development (in €m)
Net sales

Order intake

Nettoumsatz

CAGR
Auftragseingang
5,0%

CAGR
10,5%

65,8

2016/1773,2

2017/1880,469,0

2018/19

2016/17

77,2

76,0

2017/18

2018/19

Order backlog

CAGR
Auftragsbestand
-1,6%

20,3

24,1

19,6

2016/172017/18

2018/19

With net sales of EUR 80,4 million, theMeasuring Centers segment exceeded theprevious year by EUR 7,2 million or 9,9%.

Order intake of EUR 76,0 million is at a highlevel, but does not quite match the strong
previous-year figure. Due to very shortdelivery times, this does not mean amandatory drop in sales for 2019/20.

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 92 As promised: build up of Cylindrical Gear business on track
Cylindrical Gears development (in €m)

Net sales

Order intake

Nettoumsatz

CAGR
Auftragseingang
28,6%

CAGR26,9%

53,1
33,0

2016/17

51,1

38,4

2017/18

57,734,9

2018/19

2016/172017/18

2018/19

Order backlog

CAGR
Auftragsbestand
33,6%

34,5

2017/18

Significant increase in net sales from EUR
38,4 million in 2017/18 to EUR 53,1 million(+38,2%) was achieved.

With an increase to EUR 57,7 million, theambitious order intake level of the previous
year again was exceeded by EUR 6,6 million.

39,1

21,9

2016/17

2018/19

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

2 Drive Technology persists in stable market environment
Drive Technology development (in €m)
Net sales

Order intake

Nettoumsatz

CAGR
Auftragseingang
9,0%

CAGR
7,1%

11,6

2016/17

13,2

13,3

2017/18

2018/19

14,2

13,3

2017/18

2018/19

11,2

2016/17

Order backlog

CAGR
Auftragsbestand
6,4%

7,4

2016/17

8,4

2017/18Compared to the previous year, the Drive
Technology segment recorded a slightincrease in net sales by EUR 0,2 million toEUR 13,3 million.

Order impulses from the consolidated andprice-stable mining industry partiallycompensate for weakening cargo ship
construction.

8,4

2018/19

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

2 Strong sales led to outstanding operating result
Income statement KLINGELNBERG Groupin €m

FY 2016/17
ACTUALFY 2017/18
ACTUALFY 2018/19
ACTUALNet sales from goods and services
Other operating income
Change in inventory of finished and unfinished goods
Raw 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

231,0
4,4-0,5-85,9-86,3-6,2-0,5-38,1
0,3
18,3-2,1
16,2-5,1
11,1

257,0
2,9
5,5-100,9-94,8-6,1-0,5-41,5
0,3
22,1-0,8
21,3-7,1
14,2

278,2
7,4-0,4-108,3-101,2-5,9-0,5-39,9
0,6
30,0
-3,2
26,8-7,6
19,2100%
2%
0%
-37%
-37%
-3%
0%
-16%
0%
8%
-1%
7%
-2%
5%

100%
1%
2%
-39%
-37%
-2%
0%
-16%
0%
9%
0%
8%
-3%
6%

Deviations
2018/19 vs. 2017/18

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

21,2
4,5-5,9-7,5
-6,4
0,2
0,0
1,6
0,3
7,9-2,4
5,5-0,5
5,0

8%
155%
-108%
-7%
-7%
3%

Excluding IPO costs, adjusted EBIT for the financial year totaled EUR 31,1 million and exceeded previous financialyear by EUR 8,3 million.

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

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4%
82%
36%
26%
-8%
35%

July 2019

Presentation for Analysts and Investors  Slide 12

2 Operational leverage can be seen at operating expenses
Income and cost development of the KLINGENBERG Group (in €m)Other operating income
CAGR
30,0%

EBITDA

7,4



Higher capitalization of demonstration machines(in particular Measuring Centers and SpeedVipers) of EUR 3,6 million resulted in higher
other operating income.

The other operating expense ratio adjusted by
EUR 1,1 million IPO costs amounted to 13,9%at the end of the financial year, a remarkable
1,6 percentage points down on the previousyear.

Total operating performance is the sum of net
sales from goods and services and change ininventory of finished and unfinished goods.

4,4
2,9

2016/172017/18

2018/19

Adjusted other operating expense
CAGR
EBIT
0,9%

40,7

38,1

38,7
in relation tototaloperating
performance
in %

16,5%

2016/17

15,5%

2017/18

13,9%

2018/19

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

2 Higher output leads to higher costs
Income and cost development of the KLINGENBERG Group (in €m)
Raw material expense
CAGR
12,3%

37,2%

2016/17The significant increase in total operating
performance of EUR 15,3 million resulted in 43
more employees than in the previous year.

Total operating performance is the sum of net
sales from goods and services and change ininventory of finished and unfinished goods.

in relation tototal
operatingperformance
in %
39,0%

38,4%

2017/18

Personnel expense

Driven by higher operating performance, rawmaterial expenses increased by EUR 7,5million. As a result, the KLINGELNBERG
Group's materials ratio rose to 39,0%, 0,6
percentage points above the previous year'slevel. Excluding the shift in capitalizedmachinery, the materials ratio would have been
38,5%, almost at the previous year's level.

108,3100,985,9

2018/19

EBITCAGR
8,3%

101,294,886,3

37,4%

2016/17in relation tototaloperating
performance
in %
36,1%

2017/18

36,4%

2018/19

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

2 Klingelnberg delivered EBIT above guidance
Adjusted EBITDA & EBIT 3 development (in €m)
Adjusted EBITDACAGR
EBITDA22,4%

Excluding IPO costs, adjusted EBIT for thefinancial year totaled EUR 31,1 million andexceeded previous financial year by EUR 8,3million. The stronger increase in sales
combined with stringent cost awareness led to
an increase in the EBIT margin adjusted for IPO
costs to 11,2%.

EBITDA includes the operating result plus
depreciation on tangible fixed assets andamortization on intangible assets.

EBIT is the operating result excluding nonoperating and extraordinary results.

Both measures are adjusted by IPO costs suchas bank charges, consulting, travel expenses,etc.

37,529,325,0

EBITDA in
relation to
net sales
in %
10,8%

2016/17

11,4%

2017/18

Adjusted EBIT

13,5%

2018/19

CAGR
EBIT
30,3%

31,1
22,8

18,3

7,9%

2016/17

EBIT inrelation tonet sales
in %
8,9%

2017/18

11,2%

2018/19

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

2 Healthy increase in cash
Mainly due to the increase in the operating result
Capital expenditures on tangible fixed assets (in €m)
CAGR
28,8%

3,6

4,4

2017/18

2018/19

Cash Flow (in €m)27,6

2017/18

Higher capitalization ofdemonstration machines (inparticular Measuring Centers
and Speed Vipers) ofEUR 3,6 million.

At the same time, there was anincrease in inflows from the saleof tangible fixed assets ofEUR 0,9 million, which resulted
mainly from the sale ofmachines produced by thecompany itself.

7,3

5,5

2016/17

2018/19
20,1
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities

6,4
2,0

1,6-0,50,2

Currency translation effects
Net change in cash-2,2-5,6-5,6
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

2 Excellent liquidity and impressive equity ratio
Balance sheet ratios (in €m)
Trade Working Capital
119,4
65,0

132,6

137,672,2

71,0

51,7%

51,6%

-14,2-15,8-16,3

2016/172017/18

2018/19

Inventories

Not capitalized R&D costs amounted to EUR 24,4
million, which represented 8,8% of net sales.

in % of netsales

Trade working capital stays stable in relation tonet sales.

49,5%Equity rose by EUR 42,7 million. This increase ismainly due to the capital increase in connection
with the IPO as well as higher net profit.

82,976,268,6

Receivables from g/s

Payables from g/s

Financing structure

Equity capital (2016/17 inclusive loan from shareholder (subordinated))
28,7

6,7

2016/17163,0

8,6-6,5-23,9

CAGR
20,4%

120,3

112,4-28,3

2017/18

Cash and cash equivalents

Equitycapital ratio

51,8%

2018/19
Financial liabilities

2016/1751,2%

2017/18

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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63,8%

2018/19

July 2019

Presentation for Analysts and Investors  Slide 17

3 Strong pipeline of new products and applications going forward
Projects
Camshaft/Crankshaft

Hybrid of tactile and opticalmeasurement - KLINGELNBERG
exclusive technology

Bearing

G35 DSfor robotic industry

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Presentation for Analysts and Investors  Slide 18

4 Outlook

Segment net sales

Cylindrical Gear

Measuring Centers

Bevel Gear

Drive Technology

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Guidance for 2019/20

July 2019

Presentation for Analysts and Investors  Slide 19

5 Thank you! – Q+A

Visit us at the EMO (16 – 21 September, Hanover, Germany), Hall 26, Booth B110

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Presentation for Analysts and Investors  Slide 20

Appendix

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Presentation for Analysts and Investors  Slide 21

KLINGELNBERG Group
Balance sheet
in €m

FY 2017/18
ACTUALFY 2018/19
ACTUAL

Deviations

Cash and cash equivalents

8,64%

28,711%20,1Receivables from goods and services

72,231%

71,028%-1,2-2%Inventories

76,232%82,932%

6,69%

Other current assets

10,24%

6,83%-3,4-33%

Non-current assets

67,829%66,026%-1,8-3%

Total assets

235,0100%

255,4100%

20,39%

Short-term financial liabilities

22,09%

1,71%-20,3-92%

Other long-term financial liabilities

6,33%

4,72%

-1,6-25%

Payables from goods and services

15,87%

16,36%

0,53%

Other liabilities

70,630%69,727%-0,9-1%

Total equity

120,351%

163,064%

42,736%

Total liabilities and equity

235,0100%

255,4100%

20,39%

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

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