Klingelnberg : 2022/23 Annual Report

ANNUAL REPORT 2022/23

KLINGELNBERG AG

Binzmühlestrasse 171

8050 Zürich, Switzerland

Fon: [phone]

Mail: [e-mail]

Web: www.klingelnberg.com

Content

1. To our Shareholders

1. At a Glance

1. Highlights 2022/23

1. Company Profile

1. Management Report

1. Corporate Governance

1. Compensation Report

1. Consolidated Financial Statements

110 Statutory Financial Statements of

KLINGELNBERG AG

1. Alternative Performance Measures

1. Financial Calendar

KLINGELNBERG GROUP

To our Shareholders

Dear Shareholders,

The KLINGELNBERG Group has weathered the 2022/23 financial year very successfully - despite considerable external challenges. The Company was able to improve on key performance indicators significantly. Worth highlighting are the year-on-year increase in sales, which almost doubled to EUR 309,0 million, another record order intake of EUR 300,4 million, and not least, the massive rise in profits to operating result (EBIT) of EUR 23,8 million.

The crises of recent years are definitely behind us. As forecasted, your Company has benefited disproportionately from its realignment efforts. KLINGELNBERG has not only achieved a lot in absolute terms, but also in comparison with the competition. KLINGELNBERG's clear strategic positioning, innovative products, cost efficiency, and tight management have helped to position the Company as a global market leader in key growth markets.

Particularly remarkable is the growth of our global wind energy business, which KLINGELNBERG has continuously expanded despite the pandemic, economic downturns, and geopolitical tensions. Also, in the automotive sector, particularly in the transformation to electromobility, your Company made important decisions at an early stage and developed new products for this rapidly growing segment just as early as it did successfully. This success is already reflected in our strong order intake and sales figures. The future-oriented areas of electromobility and wind power today account for a significant share of our sales and order intake. We expect this development to continue dynamically.

Today, the Company is in a stronger position than ever before. Having been disproportionately battered in recent years - due to multiple crises and adverse events - it is gratifying to see that the positive development of our Company is also increasingly being rewarded by the capital market. The performance of the KLINGELNBERG share is stable on the upside. This is ultimately the result of hard and skilled work. For this, we would like to thank all employees, managing staff, and members of the Executive Board in the name of the Board of Directors.

At KLINGELNBERG, we know we cannot take these successes for granted. The heavily burdened economic environment continues to present major challenges. In particular, the tensions between China on one side and Europe and the US on the other are impacting procurement markets and supply chains. The Company must - and will - also be able to deal with rising prices and persistent inflation.

Dear shareholders, thank you for your patience and perseverance over the past years. We know it was not always easy to be a shareholder of your Company, but the figures now show that it was right to hold on to the Company. This will also be reflected in our dividend policy. We also want to thank our suppliers and customers for their ongoing support and trusting cooperation.

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KLINGELNBERG GROUP

To our Shareholders

For the 2023/24 financial year, we are planning sales at the capacity limit at roughly the same level as the past financial year due to the continued pleasingly high order backlog and order intake. For our EBIT margin, however, we expect another increase in the 2023/24 financial year.

We confidently look to the future and are convinced that the new financial year will be another outstanding year for your Company.

Sincerely yours,

Dr. Jörg Wolle	Jan Klingelnberg
Chairman of the Board of Directors	CEO
Zürich, 16 June 2023

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KLINGELNBERG GROUP To our Shareholders

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