Bilanzpressekonferenz

zum Geschftsjahr 2014 Ausblick und Strategie

31. Mrz 2015

Analysts and Investors Conference

Fiscal Year 2014 Outlook and Strategy

March 31, 2015

1

Organic sales growth (ex scope changes and at constant exchange rates) at 11.2% exceeds target range of 5-7% and tops car markets

growth of 3%

Full consolidation of EK Marusan Corporation adds EUR 23.1 mn in sales, (minor earnings contribution before ppa; 0.3% margin dilution)

Clean EBIT adjusted for one-offs and EUR 3.4 mn ppa increased to EUR 162.3 (149.8 mn) mn Clean EBIT margin 12.2%

E-Mobility clearly below original expectations: Due to sluggish demand for BEVs negative earnings contribution of EUR 8.1 mn (7.3 mn)

Brazilian subsidiary EUR 4 mn below budget due to market breakdown

Sixth consecutive year of dividend increase EUR 0.55 (0.50) per share

Financial Year 2014: Highlights

2

13.2%

5.0%

3.6%

0.8%

0.1%

-13.0%

-14.7%

-20% -10% 0% 10% 20%

China

USA

W. Europe

Japan

India

Russia

Brazil

2014: Global car production driven by China, NAFTA and

European recovery Brazil and Russia down sharply

Car production 2014 (yoy change)

3

2014: Effects from assumption of control of ElringKlinger

Marusan Corporation

in mn

FY 2013

(as originally

reported)

FY 2013

(as restated;

at equity)

FY 2014

(at 100%)

Sales 25.1 -- 46.2

2

EBIT 0.8 -- 1.3

One-off gain 17.6 17.6 --

PPA -- -- -2.2

Control of Marusan Corporation was assumed with effect from Dec. 31,

2013; due to retrospective application of IFRS 11, Marusan was

consolidated at equity in 2013 and fully consolidated in 2014

Margin dilution effect of 0.3 percentage points at Group level

Marusan sales in 2014 stable at constant exchange rates 4

475 528

608 6581

579

796

1,0332

1,127 1,1503

1,326

0

200

400

600

800

1,000

1,200

1,400

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Sales revenues driven by long-term organic growth

mn

1 Incl. acquisitions of SEVEX (~ EUR 46mn sales) and Marusan (~EUR 14 mn sales)

2 Incl. acquisitions of flat gaskets business of Freudenberg (~ EUR 53 mn sales) and Hug Group (~ EUR 29 mn sales)

3 Marusan excluded with retrospective effect (~ EUR -25 mn sales) due to IFRS 11 5

70.9

87.6

114.9

60.0

49.4

94.0

113.91

126.6 131.32

153.1

0

30

60

90

120

150

180

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Earnings before taxes

mn

1 Excl. one-time gain of EUR 22.7 mn from sale of industrial park

2 Excl. one-time gain of EUR 17.6 mn resulting from the assumption of control of ElringKlinger Marusan Corporation 6

Group Sales by segment 2014 (py)

OE share up driven by structural growth and new products

Industrial Parks

0.3% (0.4%) Services

0.6% (0.7%)

OE

82.2% (80.5%)

Engineered Plastics

7.0% (8.0%)

Aftermarket

9.9% (10.4%)

7

OE segment by division 2014 (py)

Strong growth in Exhaust Abatement and Specialty Gaskets

Specialty Gaskets

19% (18%)

Exhaust

Abatement

7% (6%) Cylinder-Head Gaskets

17% (18%)

Shielding Technology

31% (32%)

E-Mobility

1% (1%)

Housing Modules

25% (25%)

8

Group Sales by region 2014 (py)

Recovery in W. Europe, Asia driven by EKMA consolidation

South America & Others 4.4% (5.7%)

Rest of Europe 32.7% (31.2%)

Germany

29.3% (31.4%)

Asia-Pacific 17.0% (14.3%) incl. exports: ~25% of OE sales

NAFTA 16.6% (17.4%) incl. exports: ~25% of OE sales

9

Employees worldwide 54% outside Germany as of December 31, 2014 (py)

AG

2,488 (2,301)

Domestic subsidiaries

854 (754)

International

subsidiaries

3,913 (3,661)

Germany

3,342 (3,055)

+9.4%

Group

7,255 (6,716)

+8.0%

10

One-off expenses affecting Q4 performance:

EUR 2.0 mn of inventory corrections and adjustments at ElringKlinger Korea related to plant relocation to the newly built site at Gumi

EUR 1.5 mn in warranty-related charges to settle insurance case from 2008 (allowance for receivables);

EUR 8.5 mn cash proceeds from insurance payments; no longer any

risks associated with this matter

EUR 1.4 mn one-time allocation to provisions due to amendments to Management Board contracts of service in respect of long-term variable

incentive components of compensation (LTI II) related to prior years

Financial Year 2014: One-offs

11

FY 2014: Sales and EBIT (=operating result)

in mn

2014 2013

(restated)1

Change

in %

Sales 1,325.8 1,150.1 +15.3

Cost of Sales 967.4 824.5 +17.3

EBITDA 233.4 221.02 +5.6

EBIT

(operating result) 154.0 146.62 +5.0

Clean EBIT pre PPA 162.33 149.82,4 +8.3

1 Previous year's figures adjusted due to retroactive application of IFRS 11,

resulting from at equity consolidation of ElringKlinger Marusan Corporation in 2013

2 Excl. EUR 17.6 mn one-time gain from assumption of control of Marusan

3 Excl. EUR 2.0 mn of adjustments at ElringKlinger Korea, EUR 1.5 mn in warranty-related charges, EUR 1.4 mn

provisions for Mgt. Board compensation relating to prior periods, EUR 3.4 mn PPA

4 Excl. EUR 1.4 mn one-time gain ElringKlinger Korea, EUR 1.8 mn restruct. charge Nantiat, EUR 1.5 mn one-offs

Aftermarket, EUR 1.3 mn PPA 12

FY 2014 : Financial Result and Net Income

in mn

2014 2013

(restated) 1

Change

in %

Net finance cost -0.9 -15.3 +94.1

EBT 153.1 131.32 +16.6

Taxes 42.5 32.82 +29.6

Net income 110.6 98.52 +12.3

Profit attrib. to EK

shareholders 105.7 92.72 +14.0

EPS (in ) 1.67 1.462 +14.4

1 Previous year's figures adjusted due to retroactive application of IFRS 11,

resulting from at equity consolidation of ElringKlinger Marusan Corporation in 2013

2 Excl. EUR 17.6 mn one-time gain from assumption of control of Marusan 13

286.8 303.3

294.0 291.1

324.0 333.5 327.4

340.9

100

150

200

250

300

350

400

Q1 Q2 Q3 Q4

2013

2014

Sales by quarter

1 Previous year's figures adjusted due to retroactive application of IFRS 11;

at equity treatment of ElringKlinger Marusan Corporation in 2013

281.01 296.11

287.51 285.51

mn

14

32.81

41.01 38.21

34.61,2

42.1 41.5 41.2

29.2

0

10

20

30

40

50

60

Q1 Q2 Q3 Q4

2013

2014

EBIT by quarter (= operating result)

1 Previous year's figure adjusted due to retroactive application of IFRS 11; at equity treatment of ElringKlinger Marusan Corporation

2 excl. EUR 17.6 mn one-time gain

mn

15

33.7

41.2 40.1

34.81

43.0 42.3 42.1

34.9

0

10

20

30

40

50

60

Q1 Q2 Q3 Q4

2013

2014

Clean EBIT pre PPA

1 Previous year's figure adjusted due to retroactive application of IFRS 11; at equity treatment of ElringKlinger Marusan Corporation

mn

16

925.91

1,089.7

233.91 282.2

0

200

400

600

800

1,000

1,200

FY 2013 FY 2014 Q4 2013 Q4 2014

+20.6%

Q4 2014: OE sales up 20.6 % driven by core

business, higher tooling sales, EKMA scope change

1 Previous year's figures adjusted due to retroactive application of IFRS 11; at equity treatment of ElringKlinger Marusan

Corporation (- EUR 25.1 mn in FY 2013; - EUR 5.6 mn in Q4 2013)

2 excl. EUR 17.6 mn one-time gain

mn FY EBIT +5.3%

111.2 (105.62)

+17.7%

17

119.3

130.7

26.4 33.4

0

30

60

90

120

150

FY 2013 FY 2014 Q4 2013 Q4 2014

+26.5%

Q4 2014: Aftermarket sales up by 26.5%

Strong performance in Eastern Europe

mn FY EBIT +11.6%

25.1 (22.5)

+9.6%

18

92.6 92.9

22.2 22.1

0

20

40

60

80

100

120

FY 2013 FY 2014 Q4 2013 Q4 2014

Q4 2014: Sales Engineered Plastics down 0.5%

mn FY EBIT -4.3%

15.4 (16.1)

+0.3%

-0.5%

19

Project-related and product-mix related business implies higher sales/earnings volatility over the quarters also in 2015

Hugs EBIT margin (21.2%) to remain above Group average

Disproportionately high comparison basis in Q1

2014: Exhaust Gas Purification division

Good yoy growth but H2 below H1 level

in mn Hug Group

Q1 Q2 Q3 Q4 FY

14

FY

13

Sales 20.7 19.5 17.1 13.8 71.1 57.6

EBIT 7.6 4.0 2.0 1.5 15.1 13.6

PPA 0.3 0.3 0.3 0.3 1.2 1.3

20

EBIT bridge financial year 2014

154.0 3.4 2.0 1.5 1.4 162.3

4.0 5.0

EBITreported

PPA Inv. corr.,adj. EKKO

Chargeswarr. case

ProvisionsLTI II

Clean EBITpre ppa

EBIT dev.Brazil

Earningsdiff.

E-Mob

mn

21

126.2

74.5

112.3 119.0

149.9

0

40

80

120

160

200

2010 2011 2012 2013 2014

Net cash from operating activities up 26.0% in 2014

mn

22

Cash flow bridge 2014

62.9

149.9

52.9

-163.1

-32.8

-1.1 68.7

0

50

100

150

200

250

Cash atDec 31,

2013

Net cashfrom

operatingactivities

Investments Dividendspaid

Change infinancialliabilities

Others Cash atDec 31,

2014

mn

23

134.3

121.6 114.3

125.6

163.1

~110

82.2

96.8

79.4 74.4

79.2

0

40

80

120

160

200

2010 2011 2012 2013 2014 2015

Capex rate going forward expected at 7-9% of sales

mn

Investments in

property, plant and

equipment and

intangible assets

Deprecation and

amortization

24

ppe

41.1 40.9

22.4 22.1

58.9 59.1

27.2 28.2

50.4 49.7

Dec 31,2013

Dec 31,2014

Dec 31,2013

Dec 31,2014

Balance sheet structure as at December 31, 2014

Equity ratio remains solid

Non-current assets / liabilities

Current assets / liabilities

Shareholders equity

Assets

in %

Liabilities and

shareholders equity in %

25

0.15 0.20

0.35 0.401

0.45 0.50

0.55

0.00

0.20

0.40

0.60

0.80

1.00

2008 2009 2010 2011 2012 2013 2014

Consistent dividend policy

6th consecutive increase of regular dividend

1 Regular dividend

26

Cutting CO2: Legislation a long-term driver for structural

growth

95

prop. 75-65

~178

102

~160

112

0

40

80

120

160

200

2020 2025 2015 2025 2015 2025

EU US China

2011: 135.7 g/km 2010: 255.6 g/km 2008: 185 g/km

CO2 limit in g/km

Source: A.T. Kearney, VDA, EK research

27

Its All About Emissions: Downsizing the combustion engine versus E-Mobility

Exhaust abatement

Downsizing/ Lightweight

E-Mobility

CORE

BUSINESS

HUG: EAT Division

New business areas

long-term potential

28

Improving efficiency in combustion engines

will clearly remain a key driver in the

foreseeable future

EK provides key technology enabling

engine for downsizing/ turbocharging

EK features a leading market position in

turbocharger gasketing

Projected market demand growth CAGR > 10%

Structural growth: Downsizing and Turbocharging

Inlet gasket

Outlet gasket

Heat shield

Light-weight

resonator

V-ring

Flap

29

Hug: Sustainable exhaust abatement off-road, on rail and

on water

Manifold applications: stationary engines, material handling, oil and mining, natural gas power plants

Driver: Stricter emission legislation for non-road applications

US DPF truck retrofit market still solid: Hug market share tops 30%

Significant sales potential with nauticlean systems (DPF/DeNOx/HC) for ships (IMO Tier 3)

Following promising tests, installation of first DPF system for bunker oil powered high sea ship engine

30

Growth with HFHT: New lightweight technology ramping

up in 2015

Unique process of combining lightweight

metal with plastics in cooperation with

premium OE

First products in high-growth area light-

weight body/chassis components (carriers)

Largest contract in company history

ramping up in 2015 (EUR 130 mn in total)

SOP in China and North America in HY1

and HY2 2015 respectively

Significant follow-up market potential,

licensing contract terms in negotiation

31

E-Mobility Update: Fuel Cell Technology and Battery

Components

Cell contact systems for fully battery electric

vehicles and plug-in hybrids

2014 below expectations: sales at EUR 11.0

(8.4) mn, EBIT EUR -8.0 (-7.2 m) due to

sluggish demand for EVs

For the time being low oil and fuel prices

burden competitive position of BEVs

Fuel-cell: Bipolar plates and fuel-cell stacks

SOFC auxiliary power units for trucks, ships, RVs, homes and stationary applications in

development (new enerday takeover adds

system expertise)

First contract for PEM fuel cell stacks for material handling equipment

32

EK expects overall worldwide LV production to grow by 2% in 2015

NAFTA: continued slight growth

China: slowing growth at record levels, car sales expected to grow approx. 7%

Western Europe: Ongoing modest recovery in Western Europe but still way below pre-crisis level (2007); German car market will expand only slightly

Mixed signals from BRI markets: Brazil: stabilization at low levels

Russia: another weak year ahead (-20 to -25%)

India: expected to continue recovery

Truck sales in Europe recovering (+5%) from low levels; US truck sales increasing moderately following double digit gains in 2014

Outlook car markets 2015: Another year of moderate

growth - divergence continues

33

Outperforming market growth by 4-5%

Strong structural growth across all divisions

Due to ongoing sluggish demand in BEV/ PHEV market and low fuel prices the E-Mobility division is not likely to see a fundamental improvement in

earnings performance (originally break-even target)

Brazil and Russia to remain at depressed levels

Positive earnings contribution from M&W acquisition but temporarily slight margin dilution

Currency tailwinds

Outlook 2015: The Group

34

Outlook 2015: Financial performance

in mn

FY 2014 Guidance FY 2015

Sales 1,325.8 5-7% organic growth

(plus 30 mn scope change M&W) 2

Clean EBIT

pre ppa 162.3 170-180

Investments1 147.0 approx. 110

ROCE 12.4% slight increase

Order intake up 10.5% at EUR 1,418.6 mn (up 8.3% excl. scope changes)

Order backlog up 15.6% at EUR 688.2 mn

Capex also dependent on euro exchange rate 35

1 in plant, (investment) property and equipment

Bilanzpressekonferenz

zum Geschftsjahr 2014 Ausblick und Strategie

31. Mrz 2015

36

Disclaimer Forward-looking Statements and Predictions

This 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 future should 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 and developments 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 to the general economic and business situation, variations of

exchange rates and interest rates, poor acceptance of new products and services, and changes

to business strategy.

37