1

ElringKlinger Group

Conference Call

Results Q2 2013

August 9, 2013

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Q2 2013: Key developments

Group sales plus 6.0% (organically: +7.2%) despite ongoing weakness in Europe – once more outperforming global vehicle markets (+3.5%)

Direct sales share in Asia increasing to 17% (incl. exports 24%)

Record quarterly operating result EUR 41.2 mn, despite E-Mobility pre-expenses and weak Aftermarket

EBIT burdened by negative FX effects of EUR 1.9 mn –increase to EUR 39.3 mn

Integration of Hug successfully completed: sales more than doubled y-o-y, Group EBIT margin achieved despite PPA

New Thale site went operational in Q2 – relocation from Switzerland finished

Freudenberg France still loss-making due to poor French market (-8%)

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H1 2013: Market trends – Europe at 20-year lows

3

21

8

-5

-10

-11

10

-8

-7

-20 -10 0 10 20 30 40

Western Europe

UK

France

Italy

Spain

USA

China

Germany

Car Sales

% change

y-o-y

Sales by quarter – negative FX impact of EUR 4.6 mn in Q2

277.6279.8286.0283.8

303.3286.8

100

150

200

250

300

350

Q1 Q2 Q3 Q4

2012 2013

€ mn

4

25.8

36.537.539.0

41.2

33.3

0

10

20

30

40

50

60

Q1 Q2 Q3 Q4

2012 2013 5

Q2 2013: Operating result at EUR 41.2 mn

€ mn

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Q2 2013: EBIT came in at EUR 39.3 mn (EUR 1.9 mn neg. FX)

€ mn

37.3 38.336.0

24.4

39.335.8

0

15

30

45

60

Q1 Q2 Q3 Q4

2012 2013

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Q2 2013: OEM sales up 7.0%

€ mn

248.4

232.2

0

50

100

150

200

250

300

Q2 2012 Q2 2013

EBIT +6.6%28.9 (27.1)

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Q2 2013: Aftermarket sales stable

€ mn

29.029.0

15

20

25

30

35

Q2 2012 Q2 2013

EBIT -18.1%5.9 (7.2)

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Q2 2013: Sales Engineered Plastics up 3.6%

€ mn

22.922.1

0

5

10

15

20

25

30

Q2 2012 Q2 2013

EBIT +17.1%4.1 (3.5)

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Group Sales by segment Q2 2013 (py)OE share up due to structural growth and new product ramp-ups

Engineered Plastics 7.5% (7.7%)

OEM 82.0 (81.1%)

Services 0.6% (0.6%)

Aftermarket9.5% (10.2%)

Industrial Parks0.4% (0.4%)

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Group Sales by region Q2 2013 (py) Almost 55% of OE sales in Asia and the Americas

Germany 29.9% (29.6%)

NAFTA16.6% (18.5%)

incl. exports: ~25% of OE sales

South America &Others

5.8% (5.9%)

Rest of Europe 31.1% (30.9%)

Asia and Australia 16.6% (15.1%)

incl. exports: ~24% of OE sales

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Employees ElringKlinger Group worldwide –54.1% outside of Germany

AG2,090 (2,043)

Domestic subsidiaries864 (847)

International subsidiaries3,480 (3,341)

as of June 30, 2013 (py)

Group6,434 (6,231)

+3.3%

Germany2,954 (2,890)

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Q2 2013: Net cash from operating activities improved by more than 50%

22.5

36.5

0

10

20

30

40

50

Q2 2012 Q2 2013

€ mn

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Q2 2013: Investments vs. depreciation

29.024.5

18.220.0

0

10

20

30

40

50

Q2 2012 Q2 2013

Investments in plant, property and equipment, invest. prop. and intangible assets

Depreciation/Amortization

€ mn

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Q2 2013: Sales and operating result

1 Incl. currency effects

in € mn

Q2

2013

Q2

2012

Change

in %

Sales 303.3 286.0 +6.0%

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Cost of Sales 215.6 203.0 +6.2%

EBITDA1 57.5 58.3 -1.4%

EBIT1 39.3 38.3 +2.6%

Operating Result 41.2 37.5 +9.9%

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Q2 2013: Financial Result and Net Income

in € mnQ2

2013

Q2

2012

Change

in %

Net finance cost 4.9 2.3 +113,0%

EBT 36.3 35.3 +2.8%

Taxes 7.7 9.3 -17.2%

Net income 28.6 26.0 +10.0%

Profit attributable

to EK shareholders26.2 25.3 +3.6%

EPS (in €) 0.41 0.40 +2.5%

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Balance sheet structure as at June 30, 2013Solid Equity Ratio at 48.8%, shift to long-term debt

26.829.342.642.6

0

24.421.1

57.457.448.849.6

June 30, 2012 June 30, 2013 June 30, 2012 June 30, 2013

Assets

in %

Non-current liabilities

Current liabilities

Shareholder‘s equityNon-current assets

Current assets

Liabilities and

shareholder’s equity in %

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Q2 2013: Hug successfully integrated

CARB certification boosting sales: market share in USA of ~35%; New projects for inland water vessels and natural gas operated power plants

Start of production in Thale, Saxony-Anhalt, in Q2 limits exposure in CHF and further improves cost structure

As of August 1st ElringKlinger acquired another 25% interest in Hug, now holding a stake of 93.7% – minority interests will be scaled back in the future

Expected EBIT contribution in 2013: > EUR 7 mn (-3.0 mn)

in € mn Hug in € mn Hug

Q2

2012

Q2

2013

∆ Q2

2012

Q2

2013

∆

Sales 8.4 18.2 +9.8 EBIT -0.8 +3.9 +4.7

PPA -0.5 -0.2 +0.3 EBT -0.9 +3.8 +4.7

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Q2 2013: Restructuring Freudenberg France

Extremely sluggish French car market (-8.0% in Q2 2013) weighs on capacity utilization at EK Meillor (sales EKFR -11%, Germany +17%, Italy +3%)

Target: Slight overall EBT improvement for the full year (EUR 0.1 mn in 2012) assuming slight pick-up in French car market

German and Italian production site both at double-digit EBIT margins

Group EBIT margin dilution by Freudenberg + Hummel: - 0.4 PP

in € mn Freudenberg in € mn Freudenberg

Q2

2012

Q2

2013

∆ Q2

2012

Q2

2013

∆

Sales 13.3 12.9 -0.4 EBIT 0.5 0.5 -

PPA - - - EBT 0.3 0.3 -

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Outlook 2013: Markets

ElringKlinger expects overall worldwide car production in 2013 to stagnate or increase only modestly

Gloom in Western European car sales begins to lighten in July,Germany up 2%

Short and mid-term demand will be driven by Asia and the Americas

Moderate improvement of truck business in H2 visible:> Pre-buying due to EURO VI introduction might have a positive

effect in Europe> US Class 8 order intake implies modest growth in H2

New products & secular growth in ElringKlinger’s core business combined with a strong position in Asia should enable the Group to outgrow markets

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Outlook 2013: Financial performance

Q2 order intake: plus 11.0% to EUR 374.1 (337.1) mn Book-to-bill ratio: 1.23Order backlog up 18.3% (EUR 573.8 mn)

Based on the assumption that global vehicle production will stagnate or grow only modestly, the ElringKlinger Group expects sales to grow by 5 to 7% organically in 2013;Should global car production only stagnate, sales growth will come in rather at the lower end of this range

Group EBIT margin still burdened by weaker margins of the acquired entities, related PPA, and by pre-expenses for E-Mobility; Dilution will decrease as compared to 2012

In total, EBIT is expected to grow at a faster rate than sales – targeting a range of EUR 150 to 155 mn (EUR 136 mn in 2012)

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ElringKlinger Group

Thank you for your attention!

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Disclaimer – Forward-looking Statements and PredictionsThis presentation contains statements about the future. These statements are based

on current expectations, market evaluations and predictions by the Management Board,

and on information that is currently available to them. The statements about the futureshould not be interpreted as guarantees of the future developments and results that they

refer to. Whilst the Management Board are convinced that the statements that have

been made, and the convictions and expectations on which they are based, are realistic,

they rely on suppositions that may conceivably prove to be incorrect; future results anddevelopments are dependant on a multitude of factors, they involve various risks and

imponderabilities that can affect whether the ongoing development deviates from the

expectations that have been expressed. These factors include, for example, changes tothe general economic and business situation, variations of exchange rates and interest

rates, poor acceptance of new products and services, and changes to business strategy.