INTERIM FINANCIAL REPORT

FIRST HALF-YEAR 2023

WE SHAPE THE FUTURE. WITH EXPERIENCE, A SPIRIT OF INNOVATION AND THE HIGHEST STANDARDS,

WE ARE SETTING OUT FOR NEW HORIZONS.

2 INTERIM REPORT H1 2023 | MONTANA AEROSPACE AG

MONTANA AEROSPACE AG - SELECTED KEY FIGURES

(financial figures in M€)

Net Sales

EBITDA

Adjusted EBITDA

Adjusted EBITDA margin (%)

Operating Profit (EBIT)

Result for the period

Cash Flow from operating activities

Cash Flow from investing activities

Cash Flow from financing activities

Free Cash Flow

CAPEX spent

Trade Working Capital

Equity Ratio (%)

Net Debt (cash)

Total Assets

Employees

For the six months ended 30 June 2023

2023

2022

704.0578.8

55.728.6

59.333.9

8.4%

5.9%

3.6-18.0

-23.1

-26.5

-37.0

-52.2

-100.1

-38.3

4.7

-45.3

-152.2

-75.3

-31.8

-38.8

372.0301.7*

44.0%

43.1%

376.4279.4*

2,137.7

2,220.6

6,829

6,848

yoy change

125.2

27.0

25.4

2.5%

21.5

3.4

15.2

61.7

-50.0

76.9

7.0

+70.3

0.9%

97.0

-82.9

19

  • comparison period is December 2022

3 INTERIM REPORT H1 2023 | MONTANA AEROSPACE AG

2023 - REAPING THE REWARDS OF OUR COUNTER-CYCLICAL INVESTMENT PROGRAM

Major investment program completed (>EUR 650m)

While Montana Aerospace has invested more than EUR 650 million in new capacities in the past few years (2018 to 2022), starting in 2023 we will be reaping the rewards of our counter-cyclical investment strategy. We have moved ahead of our competitors with the help of a strong order book, the acquisition of new market shares, and the support of our highly dedicated team of experts around

the world.

Encouraging our global talents

At Montana Aerospace, making our employees feel valued enjoys high priority. This includes helping them grow both as professionals and as individuals. To this end we have set up the Montana Aerospace Mentorship Program, which is a voluntary, global 6-month professional development program offered twice each year. Mentors and mentees from all divisions are paired to match mentees' goals with mentors' skills. Cross-cultural competence is promoted by bringing applicants across countries and divisions together. We are happy to announce that the first cohort of 2023 just started with 29 paired mentors and mentees.

Focus on net income and free cash flow

After completing the largest capital expenditure program in Montana Aerospace's history - a stress test for our financial KPIs - now the time has come to demonstrate that we can generate a positive and sustainable level of net income and free cash flow going forward. Additionally, as of 2023 we will focus only on sustainable capital expenditure and maintenance.

Ongoing streamlining of our balance sheet

We are fully committed and stick to the plan of further strengthening our balance sheet and increasing independency in 2023 by lowering our debt positions and generating a positive free cash flow. The clear goal of loosening our ties with the majority shareholder Montana Tech Components AG (with respect to debt) and establish a more independent debt financing structure without its guarantees remains intact and is currently being implemented. This step will be a key focus of Montana Aerospace in H2 2023.

4 INTERIM REPORT H1 2023 | MONTANA AEROSPACE AG

Commodities

While 2022 was not an easy year, we do not expect smoother sailing in the first three quarters of 2023 either. We are countering any shortages caused by the war in Ukraine with a forward-looking commodities strategy:

  • Price increases on world markets can be contained by contractual clauses regarding commodity costs, a common practice on markets.
  • Our goal is to achieve a high level of recycling in our production processes - particularly regarding aluminum for which our alloys consist of 70% recycled materials.
  • The high vertical integration of our value chain gives us greater independence from external commodity supply chains.

Montana Aerospace's new goals & 2027 segment strategy

We aim to achieve operational excellence in the Aerostructures segment in 2023. We will focus on three key areas:

  • Execution: ensure a fast and smooth ramp-up
  • Performance: achieve greater efficiency to improve operating margins, expand digitization capabilities and optimize internal as well as external supply chains
  • Growth: expand sustainable and profitable business areas in specific segments and increase diversification

FINANCIALS:

EBITDA Montana Aerospace estimates EBITDA for 2023 to be within the range of

EUR 130 TO 150 MILLION

EUR >1.5 BILLION

IN NET SALES

5 INTERIM REPORT H1 2023 | MONTANA AEROSPACE AG

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Montana Aerospace AG published this content on 15 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 August 2023 05:17:02 UTC.