KLINGELNBERG AG
Precision gearing champion with Swiss and German heritage

Presentation forAnalysts and Investors
Financial Report 2021/22
Zürich, June 2022

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Presentation for Analysts and Investors  Slide 2

June 2022

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 2022

Agenda1

Introduction and key facts

2

Financial results

3

Outlook

4Q&A

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Presentation for Analysts and Investors  Slide 4

June 2022

1 Key facts 2021/22

1

Flood disaster in the late evening of 14 July 2021 hit theHückeswagen site - net damage caused by the flood amounted
to EUR 25,5 million

2

EBIT Full Year at EUR -15,7 million

3Historic Order Intake EUR 268,9 million

4Historic Order Backlog EUR 268,0 million

5

Positive Outlook for 2022/23

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Presentation for Analysts and Investors  Slide 5

June 2022

1 Key facts 2021/22
Klingelnberg massively benefited from the investment wave in e-mobility andwindpower
Share of Order Intake of machines inE-Mobility and WindpowerKlingelnberg P-series machines
and the accompanying software
solutions have been adopted byE-mobility market as the quality
assurance standard fortransmission gears.

Hofler product line for large
cylindrical gear grinding
machines clocked in largerepeat orders of machines fromall the leading Wind Energy
players in China.

60%

Cylindrical Gear Grinding

50%

30%

20%

10%

Measuring Centers

40%0%Order Intake*Not audited figures
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Presentation for Analysts and Investors  Slide 6

June 2022

1 Highest order intake and order backlog in Company’s history
KLINGELNBERG Group – order intake and order backlog (in €m)
300
253,4

250

263,2

268,9265,2

228,4

215,5268,0

194,5200

150

157,7124,9100

130,7118,2102,9100,750

02015/162016/172017/18

2018/19

Order intakeKLINGELNBERG Tradition

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2019/20

Order backlog

2020/212021/22

Presentation for Analysts and Investors  Slide 7

June 2022

2 Net sales at prior-year level
KLINGELNBERG Group – Sales and orders (in €m)

Net sales

Order intake

300,0300,0250,0250,0200,0200,0150,0150,0278,2212,1100,0

158,7158,6100,050,0194,5215,5

2019/20

2020/2150,00,00,0
2018/192019/20

2020/212021/22

Order backlog
300,0

2018/19

At EUR 158,6 million, net sales were on a parwith the previous financial year
(EUR 158,7 million). However, due to the flood,the budgeted increase in sales for the 2021/22
financial year was missed.

Order intake significantly rose byEUR 53,4 million to EUR 268,9 million.

200,0150,0268,0100,0157,7118,2100,7

2018/192019/20

0,0KLINGELNBERG Tradition

2020/212021/22

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2021/22

250,050,0268,9265,2

Presentation for Analysts and Investors  Slide 8June 2022

2 Due to the flood and the resulting interruption of operations, lessmachines could be delivered – After sales has recovered
KLINGELNBERG Group – Sales (in €m)
Net sales split by…
(2021/22)

CAGR-13,5%machines and services

38%
158,6

212,162%

64,2

158,7

158,651,059,8

sales region

19%

147,8107,742%

98,9158,6

2019/20

2020/212021/22Net 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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39%

EMEA

Americas

APAC

Presentation for Analysts and Investors  Slide 9June 2022

2 Bevel Gear segment with high order intake and order backlog
Bevel Gears development (in €m)
Net sales

Order intake

Nettoumsatz

CAGR
Auftragseingang
15,4%

CAGR
-16,2%

84,7

86,4

2020/212021/22

64,9

50,4

2019/2080,92020/2159,52021/222019/20

Order backlog

CAGR
Auftragsbestand
72,2%



Despite relevant damage caused by the flood on theone hand and a temporary interruption of operation on
the other, net sales rose compared to the previous
financial year’s figure by EUR 9,1 million.



Order intake increased compared to the previous
financial year. The main share of orders came fromglobally operating suppliers to the automotive andcommercial vehicle industries.

86,459,629,1

2019/20

2020/212021/22

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 10June 2022

2 Cylindrical Gear segment continued with high order intake
Cylindrical Gears development (in €m)
Net sales

Order intake

Nettoumsatz

CAGR
Auftragseingang
20,0%

CAGR
-8,5%

72,078,3

2020/212021/2254,449,4

45,641,3

2019/20

2020/212021/222019/20Order backlog

CAGR
Auftragsbestand56,2%In connection with the flood there were also numerous
postponements of machine deliveries in theCylindrical Gear segment, so that the previous
financial year’s level could not be achieved.

However, this segment recorded significant waves ofdemand from the wind power and general mechanicalengineering sectors. Thanks to an increase in orders
for medium-sized Rapid machines, order intake wassignificantly up on the previous financial year.

107,570,544,1

2019/20

2020/212021/22

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 2022

2 A record order intake was achieved
Precision Measuring Centers development (in €m)
Net sales

Order intake

CAGR
Auftragseingang
21,6%

CAGR
-11,4%

Nettoumsatz

84,757,3

2019/20

50,544,9

2020/212021/2257,351,9

2019/20

2020/212021/22

Order backlog

CAGR
Auftragsbestand
76,0%

60,8
19,6

21,0

2019/20

2020/212021/22Damage and impairments caused by the flooding hadsignificantly slowed down the good delivery
performance at the beginning of the financial year.

Notwithstanding this event, the e-mobility reference
projects won in the first half of the year led toextensive follow-up orders.

The order intake was also supported by a surge indemand from the commercial vehicles sector.

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 12June 2022

2 Strong recovery of the Drive Technology segment
Drive Technology development (in €m)
Net sales

Order intake

Nettoumsatz

CAGR
Auftragseingang
15,2%

CAGR
-18,1%

15,7

13,7

2019/20

11,8
8,9

9,2

2020/212021/22

8,4

2019/20

2020/212021/22

Order backlog

CAGR
Auftragsbestand
38,1%



After a market slow down caused by the global
Covid19 pandemic the marine and mining sector are
on a recovery path. High raw material prices andincreased logistic demand have a positive affect on
the order intake in 2021/22.

The Segment also benefited from the strong growth ine-mobility and the raw materials required for it(including copper and lithium).

12,56,5

2019/20

5,92020/21

2021/22

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 2022

2 Flood disasterNet damage caused by the flood, net of benefits and measures already received or still
outstanding (in €m)
70

64,1

5,960

8,5-20,050

10,240-15,830-2,82039,525,5100Note: 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 2022

2 Operating result below prior financial year level due to floods
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 resultProfit before income taxes
Income taxes
Net profit

FY 2019/20ACTUAL

FY 2020/21
ACTUALFY 2021/22
ACTUAL

212,12,8
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
2,1-7,3158,640,341,0-110,5-95,9-4,1-0,4-45,2
0,6-15,7-4,0-19,7-2,0-21,7

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%

100%
25%
26%
-70%-60%
-3%0%
-29%
0%
-10%
-3%
-12%
-1%
-14%

Deviations
2021/22 vs. 2020/21
-0,1
38,4
46,8-58,5-12,10,40,0-19,0-0,1-4,1-6,2-10,3-4,1-14,4



Triggered by the persistent heavy rainfall on 14 July 2021, the post-pandemic recovery initially slowed downconsiderably. The operating result (EBIT) decreased significantly by EUR 4,1 million compared to the previous
financial year and amounted to EUR -15,7 million at the end of the 2021/22 financial year.

However, the strong order intake and further growth in the order backlog provide a positive outlook for the nearfuture.

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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0%

-112%
-14%
9%
6%
-73%
-8%
-36%
-110%
-198%
-197%

Presentation for Analysts and Investors  Slide 15

June 2022

2 OOI and OOE impaired by the flood
Income and cost development of the KLINGELNBERG Group (in €m)Other operating income
CAGR
278,5%



Other operating income significantly rose by
EUR 38,4 million. The increase was mainly due
to flood-related insurance payments of
EUR 15,8 million and a receivable from theFederal State of “Nordrhein-Westfalen”/
Germany for “Rebuild NRW on the occasion ofdamage caused by heavy rain and flooding inJuly 2021” of EUR 20,0 million.

At the end of the financial year, other operating
expense amounted to EUR 45,2 million. Thiswas EUR 19,0 million above the previous
financial year. At EUR 10,2 million, the largest
increase was due to flood damage.

40,32,8

1,9

2019/20

2020/212021/22

Other operating expense

CAGREBIT
9,5%

45,2
37,7
in relation tototal
operatingperformance
in %

26,2

16,9%

2019/20

17,1%

2020/2122,7%2021/22

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 2022

2 Personnel expense ratio decreased due to stronger increase in total

operating performance
Income and cost development of the KLINGELNBERG Group (in €m)Material expense
CAGR10,4%

As a result of the significant increase ininventories and scrapping due to the floods,
material expense amounted to
EUR 110,5 million at the end of the financialyear, exceeding the previous financial year’s
figure by EUR 58,5 million.

Personnel expense amounted to
EUR 95,9 million at the end of the financial
year, up EUR 12,1 million on the previous
financial year. This increase was mainly due todevelopments at KLINGELNBERG GmbH,
where the short-time work with a volume ofEUR 5,7 million was not received any more andexpenses for external staff increased byEUR 4,8 million.

110,590,6
in relation tototal
operatingperformance
in %
55,4%

52,0

40,7%

2019/2034,0%

2020/21

Personnel expense

2021/22

CAGR
EBIT
-6,9%

110,6

95,983,7

49,7%

2019/2054,8%

2020/21in relation tototal
operatingperformance
in %
48,0%

2021/22

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 17

June 2022

2 Cash flow
Net change in cash amounts EUR -14,9 million (in €m)Cash flow from operating
activities decreased by
EUR 62,1 million compared to
the 2020/21 financial year,mainly due to flooding.

The largest single investment
was the new assembly hall in
Hückeswagen, Germany,
which is currently still underconstruction.

New financial liabilities weretaken on to finance theincrease in inventories and thenew assembly hall.

Capital expenditures on tangible fixed assets
CAGR
45,4%

11,4
5,43,6

2019/20

2020/212021/22

Cash Flow
2021/2240,8Cash flow from operating activities
Cash flow from investing activities

7,6

Cash flow from financing activities-0,3-0,4-1,1-14,9-16,2-23,10,0

Currency translation effects
Net change in cash

2020/21-54,5Note: 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 18

June 2022

2 Equity ratio decreased by 17,3 percentage points due to flood
Balance sheet ratios (in €m)
Trade Working CapitalEquity decreased by EUR 15,8 million (-13,1%) toEUR 104,7 million compared to the end of theprevious financial year on 31 March 2021. Thisdecrease was mainly due to the flood-related net
loss for the financial year.

New financial liabilities were taken on to financethe increase in inventories and the new assembly
hall.

139,7
125,4

108,8

47,2

43,089,080,5

40,6
in % of net
sales

133,0
59,1%

68,6%

88,1%

-10,8-14,7-33,8

2019/20

2020/212021/22

Inventories

Receivables from g/s

Payables from g/s

Financing structure

Equity capital
CAGR-10,8%

38,7
22,6-7,0

7,7

131,6

120,5

104,7-30,1

Equitycapital ratio-47,8

2019/20

2020/21

Cash and cash equivalents

53,7%

2021/22
Financial liabilities

2019/2055,6%2020/21

Note: Unless otherwise indicated, all figures are rounded up or down to the nearest hundred thousand Euros.
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38,3%

2021/22

Presentation for Analysts and Investors  Slide 19

June 2022

3 Outlook

We expect: Still strong demand for large grinding machines, driven by the windenergy market in China

 Strong demand for measuring machines for e-mobility applications
continues as well as for generating grinding machines driven by highquality requirements of E-Mobility Applications
 Operating inefficiencies due to difficult supply chain and compressed
production time-line due to the flood in 2021
For the 2022/23 financial year, we expect a significant increase in sales.

We expect the EBIT margin to be above 6% in the 2022/23 financial year.

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Presentation for Analysts and Investors  Slide 20

June 2022

4 Thank you! – Q+A
KLINGELNBERG‘s new assembly hall – scheduled end of year

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Presentation for Analysts and Investors  Slide 21

June 2022

Appendix

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Presentation for Analysts and Investors  Slide 22

June 2022

2 Increased inventories due to high order backlog in connection with

the interruption of operation
Balance sheet (in €m)
FY 2020/21
ACTUALFY 2021/22
ACTUAL

Deviations

Cash and cash equivalents

22,610%7,73%-14,9-66%

Receivables from goods and services

43,020%40,615%-2,4-6%Inventories

80,537%133,049%

52,565%

Other current assets

7,84%

33,112%25,3

Non-current assets

63,129%59,122%-3,9-6%

Total assets

216,9100%

273,6100%

56,626%

Short-term financial liabilities

5,32%

40,115%34,7

Other long-term financial liabilities

1,71%

7,73%

6,0

Payables from goods and services

14,77%

33,812%

19,2131%

Other liabilities

74,734%87,232%

12,517%

Total equity

120,556%

104,738%-15,8-13%

Total liabilities and equity

216,9100%

273,6100%

56,626%

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