Vitesco Technologies : Conference Call Presentation FY 2023

VITESCO TECHNOLOGIES

FISCAL YEAR 2023

Regensburg, 14.03.2024

Public

DISCLAIMER

This presentation may contain forward-looking statements, estimates, opinions and projections with respect to anticipated future performance of Vitesco Technologies Group AG. These forward-looking statements can be recognized by terms such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", "will" or words with similar meaning. Vitesco Technologies Group AG has

made such forward-looking statements on the basis of the information available to it and assumptions it believes to be reasonable. The

forward-looking statements and information may involve risks and uncertainties, and actual results may differ materially from those forecasts. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Any forward-looking statements included herein only speak as at the date of this presentation. Vitesco Technologies Group AG does not assume any obligation to update such forward-looking statements and to adapt them

to future events or developments.

This presentation includes certain financial measures such as EBIT, adjusted EBIT, adjusted EBITDA, order intake or net debt, which are not defined by International Financial Reporting Standards (IFRS). These alternative performance measures should be considered in addition, but not as a substitute for the information prepared in accordance with IFRS. Alternative performance measures are not subject to IFRS or other

generally accepted accounting principles. Other companies that report similarly titled alternative performance measures may calculate them

differently. An explanation of the alternative performance measures can be found in the annual report of Vitesco Technologies Group AG. Rounding differences may occur for arithmetical reasons.

This presentation is for information purposes only. It is not intended to constitute investment advice or an offer to sell, or a solicitation to buy, any securities.

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AGENDA OF THE ANALYST AND INVESTOR CONFERENCE ON

THE FY 2023 RESULTS

1 | HIGHLIGHTS FOR FY 2023

2 | OUTLOOK COMPARISON

Andreas Wolf

3 | KEY FIGURES

4 | MARKET DEVELOPMENT

5 | SALES AND ADJUSTED EBIT DEVELOPMENT

6 | CASH FLOW AND LIQUIDITY PROFILE

Sabine Nitzsche

7 | BALANCE SHEET STRUCTURE

8 | OUTLOOK FOR FY 2024

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1

WE CONCLUDED A SUCCESSFUL FY 2023 DESPITE A

CHALLENGING MARKET ENVIRONMENT

9,233

• million sales in FY 2023 - in line with our guidance

1,313

• million total electrification sales during FY 2023 - due to further ramp-upsof new projects

55%

electrification share of the total

order backlog of 57.6 € billion

at year-end 2023

341€ million

3.7%

adjusted EBIT - supported by profitability improvements across our entire portfolio

85€ million	8.3
	€ billion electrification
Free Cash Flow	order intake during FY 2023;
total order intake at
due to increased
12.2 € billion
profitability

Order intake defined as sum of acquired lifetime sales within the respective fiscal year. Order backlog defined as sum of cumulative order intake not yet booked as sales. Adj. EBIT before amortization of intangibles from PPA, consolidation and special effects. Free cash flow defined as operating cash flow plus investing cash flow.

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1

ELECTRIFICATION ORDERS AGAIN PREDOMINANT IN FY 2023

Order Backlog of 57.6 (€ bn)

Non-

Core

5.3

Underlying

business1 Electrification

20.6 31.8

Highlights and Comments

Around 55% of total order backlog related to electrification products

Increased share in electrification order backlog benefitted from strong momentum in electrification order intake

Order Intake (€ bn)

16

14			0.6
12		3.0
				0.7
10						3.1
8									Non-Core
6									technologies
74%	10.4		68%
	8.3		Underlying
4
2									business1
0									Electrification
		FY 2022		FY 2023

Highlights and Comments

Book-to-bill ratio in Electrification of 6.4

Group book-to-bill ratio at 1.3, excluding Non-Core at 1.7

Rounding differences may occur for arithmetical reasons. Order intake defined as sum of acquired lifetime sales within the respective fiscal year. Order backlog defined as sum of cumulative order intake not yet booked as sales. | 1 Underlying business excluding electrified part of underlying business.

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2

PROFITABILITY AND CASH FLOW AT THE UPPER END OF OUR

UPDATED GUIDANCE

Vitesco Technologies Group (€ mn)

2023E	2023

Sales

9,200 to 9,700

9,233

Adj. EBIT Margin

2.9% to 3.4%

3.7%

Capex1 Ratio

5% to 6%

5.4%

Free Cash Flow

~ 50

~ 85

Adj. EBIT before amortization of intangibles from PPA, consolidation and special effects. Free Cash Flow defined as Operating Cash Flow plus Investing Cash Flow. | 1 Capex excluding right of use assets (IFRS 16).

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3

OUR TRANSFORMATION RESULTED IN IMPROVED KEY FIGURES

IN ALL MAJOR AREAS

Vitesco Technologies Group (€ mn)

	FY 2022	FY 2023	Delta
Sales	9,070.0	9,233.2	163.2
% growth			1.8%
Adj. EBIT	225.5	341.1	115.6
% margin	2.5%	3.7%	1.2pp
EBIT	143.3	172.2	28.9
% margin	1.6%	1.9%	0.3pp
Capex1	446.6	499.8	53.2
% of sales	4.9%	5.4%	0.5pp
Free Cash Flow	123.2	84.9	-38.3
% margin	1.4%	0.9%	-0.5pp
Equity Ratio	40.3%	37.6%	-2.7pp

Highlights and Recent Developments

Sales

Headwind from FX amounted to 1.6%

€ 1,313 mn electrification sales

Adjusted EBIT

Significant increase in profitability due to decrease in Non-Core sales and incremental step-ups across entire portfolio

Capex

Higher investments driven by many new project ramp-ups in electrification business

Free Cash Flow

Despite higher Capex - higher than anticipated free cash flow due to higher operating cash flow

Adj. EBIT before amortization of intangibles from PPA, consolidation and special effects. Free cash flow defined as operating cash flow plus investing cash flow. | 1 Capex excluding right of use assets (IFRS 16).

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4

CORE BUSINESS GROWTH CONTINUES TO TREND ABOVE

MARKET AVERAGE

Light Vehicle Production1 (mn units)

Year-on-year Growth Rates (in %)

	2023 Production	2023 ∆ YoY
Europe	17.3	+11.7%
North America	15.7	+9.2%
China	29.2	+9.9%
Rest of World	28.0	+7.6%
Worldwide	90.1	+9.4%

Highlights and Comments - Market

15					12.2
10	9.4			8.5
5			4.4
	1.8
0
	LVPF	VT Group	VT Group	VT Core	VT Core
		Reported	Organic2	Reported	Organic2

Highlights and Comments - Vitesco Technologies

Inventory rebuild cycle was largely completed at the end of last year in Europe and North America, thus supporting overall production volumes

China's LV3 production supported by continued strong export activity, government incentives and rebounding domestic demand, but Chinese CV4 market remains rather weak

Rounding differences may occur for arithmetical reasons.

Top-line development underlines transformation progress: Core organically outperforms the market while Non-Core sales decrease according to plan

Germany and Asia (especially China) contribute to growth on year-on-year basis

1 Based on S&P Global Mobility, Light Vehicle Production Forecast as of 01/2024. Regions as defined for Vitesco Technologies' sales regions. | 2 Sales without effects from consolidation and FX. |3 Light Vehicles. | 4 Commercial Vehicles.

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5

WE MANAGED TO SIGNIFICANTLY IMPROVE OUR PROFITABILITY

DESPITE MAJOR HEADWINDS IN THE INDUSTRY

Sales (€ mn)

Adjusted EBIT (€ mn)

Vitesco Technologies

Organic growth

	+4.4%
9,070	9,233
FY 2022	FY 2023

	341
	3.7%
226
2.5%
FY 2022	FY 2023

Organic sales growth 5.0pp below light vehicle production, however Core technologies outperformed by 2.8pp

Headwinds from currency related effects amounting to 1.6pp

Core technologies sales at €6,645 mn (PY: €6,126 mn) and 4.2% adj. EBIT margin (PY: 3.8%)

Further ramp-down of Non-Core activities by €356 mn in line with internal expectations

Organic Growth: Sales without effects from consolidation and FX. Adj. EBIT before amortization of intangibles from PPA, consolidation and special effects.

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5

PLANNED SALES DECREASE IN NON-CORE ACTIVITIES DRIVES

FURTHER IMPROVEMENT IN ADJUSTED EBIT MARGIN

Sales (€ mn)

Adjusted EBIT (€ mn)

Powertrain Solutions Division - DIV P

Organic growth

	-1.4%
6,372	6,119
FY 2022	FY 2023

	465
345	7.6%
5.5%
FY 2022	FY 2023

Positive development in Core business stood against planned ramp-down in Non-Core activities

Sales burdened from currency related headwinds amounting to 1.2pp

Contract Manufacturing decreased by ~30% YoY to €743 mn sales in FY 2023

Continuous cost containment supports overall profitability in FY 2023

Core ICE business at €3,418 mn (PY: €3,336 mn) sales and 11.5% adj. EBIT margin (PY: 10.7%)

Organic Growth: Sales without effects from consolidation and FX. Adj. EBIT before amortization of intangibles from PPA, consolidation and special effects.

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