Dürr : Interim Financial Statement Q1 20241 (duerr interim statement q1 2024 EN)

INTERIM STATEMENT

JANUARY 1 TO

MARCH 31, 2024

WWW.DURR-GROUP.COM

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CONTENTS

1. Key figures for the Dürr Group
2. Overview of Q1 2024
3. Group management report

1. Consolidated statement of profit or loss
2. Consolidated statement of comprehensive income
3. Consolidated statement of financial position

30 Consolidated statement of cash flows

1. Consolidated statement of changes in equity
2. Financial calendar

33 Contact

Cover photo

EcoProBooth paint booth: The innovative EcoProBooth makes it possible to paint the vehicle exterior and interior in a single booth. Previously, two different booths were needed for this. The advantages: greater painting speed, reduced conveyor technology, lower paint requirements and shorter service times.

Interim statement January 1 to March 31, 2024

Key figures for the Dürr Group	3

KEY FIGURES FOR THE DÜRR GROUP

		Q1 2024	Q1 2023
Order intake	€m	1,488.8	1,464.7
Orders on hand (March 31)	€m	4,555.4	4,439.2
Sales	€m	1,098.4	1,014.7
Gross profit	€m	242.4	231.6
EBITDA	€m	79.7	65.9
EBIT	€m	39.7	37.7
EBIT before extraordinary effects1	€m	53.5	42.0
Earnings after tax	€m	20.3	21.0
Gross margin	%	22.1	22.8
EBIT margin	%	3.6	3.7
EBIT margin before extraordinary effects1	%	4.9	4.1
Cash flow from operating activities	€m	78.7	76.6
Free cash flow	€m	25.0	43.9
Capital expenditure	€m	41.8	29.3
Total assets (March 31)	€m	5,154.1	4,589.8
Equity (including minority interests) (March 31)	€m	1,200.7	1,139.8
Equity ratio (March 31)	%	23.3	24.8
Gearing (March 31)	%	29.1	0.4
Net financial liabilities to EBITDA2		1.5	0.0
ROCE3	%	16.9	17.2
Net financial status (March 31)	€m	-492.5	-4.4
Net working capital (March 31)	€m	531.3	406.7
Employees (March 31)		20,490	18,746
Dürr share
(ISIN: DE0005565204)
High	€	22.90	36.34
Low	€	19.64	31.02
Close	€	21.42	33.04
Average daily trading volumes	Units	127,775	114,855
Number of shares (weighted average)	Thous.	69,202	69,202
Earnings per share (basic)	€	0.29	0.32
Earnings per share (diluted)	€	0.28	0.31

1. Extraordinary effects in Q1 2024: €-13.8 million (including purchase price allocation effects of €-12.4 million),
   Q1 2023: €-4.3 million
2. Annualized

2 The calculation of ROCE was modified effective from the first quarter of 2024. Please refer to the paragraph entitled "Explanatory notes on reported ROCE" on page 7. The figure for the first quarter of 2023 has been adjusted accordingly.

Interim statement January 1 to March 31, 2024

Overview of Q1 2024	4

OVERVIEW OF Q1 2024

RECORD ORDER INTAKE AND IMPROVED MARGIN

• Order intake of €1.49 billion
• • Large order received for a sustainable paint shop
  • Automotive order pipeline still amply filled
• 8.3% increase in sales to €1.1 billion
• Disproportionately strong growth of 13.5% in service business
• Record order backlog (€4.56 billion) and high book-to-bill ratio (1.36)
• Improvement in EBIT margin before extraordinary effects
• • 4.9% up from 4.1% in Q1 2023
  • High margins in Clean Technology Systems and Application Technology
• Woodworking Machinery and Systems in line with expectations
• • 14.1% decline in sales
  • EBIT margin of 3.1% before extraordinary effects
• Positive free cash flow: €25.0 million
• Full-yearguidance confirmed
• • Order intake: €4,600 to 5,000 million
  • Sales: €4,700 to 5,000 million
  • EBIT margin before extraordinary effects: 4.5 to 6.0%
  • Free cash flow: €0 to 50 million
• Sale of Agramkow (non-automotive filling technology)
• • Transaction expected to close at the end of Q2
  • Enterprise value of €47 million
  • Revised forecast for net financial status due to proceeds from the sale: €-500 to -550 million

Interim statement January 1 to March 31, 2024

Group management report	5

GROUP MANAGEMENT REPORT

OPERATING ENVIRONMENT

In the face of continued major challenges, the global economy exhibited a persistently slow rate of growth at the beginning of 2024. Nor were there any signs of a noticeable economic upswing in the German economy in the first quarter. High interest rates and increased prices prompted consumer restraint and placed a damper on capital expenditure, which again heightened the risk of a recession in Germany. As a result, several economic research institutes have scaled back their growth forecasts for Germany for this year.

Inflation rates in the United States and Europe have passed their zenith, standing at 3.5% in the United States and 2.4% in the Eurozone in March 2024. However, the central banks have not yet departed from the course of monetary tightening that they have been pursuing over the past two years, initially leaving base rates unchanged in the first quarter in a range of 5.25 - 5.5% in the United States and 4.5% in Europe. At the same time, both the U.S. Federal Reserve and the European Central Bank have indicated that they will be lowering interest rates in the further course of the year.

Given the lack of impetus from capital spending, orders in the German mechanical and plant engineering sector continued to decline in the first quarter of 2024. According to industry association VDMA, order intake in the period from January to March fell 13% short of the previous year in real terms. Domestic orders were down by 16% and foreign orders by 12%. With gloom still dominating the sector, economic researchers are expecting a turnaround in the second half of the year. However, as mechanical engineering is a late cyclical, a visible improvement in the order situation will take time to materialize.

All the major international automotive markets without exception recorded growth in the first quarter. Even so, new registrations were still down on the pre-crisis figure achieved in 2019. According to the German Association of the Automotive Industry (VDA), 3.4 million new vehicles were sold on the Euro- pean passenger car market, marking an increase of roughly 5% over the previous year. Underpinned by solid macroeconomic conditions and a robust labor market, light vehicle sales in the United States climbed by 5% to 3.7 million units. In China, the challenging macroeconomic situation has not yet had any adverse effect on passenger vehicle sales. At 4.8 million, new vehicle registrations were up 13% on the same quarter of the previous year.

CHANGED DIVISION STRUCTURE

Following the acquisition of BBS Automation, the Dürr Group's structure was modified in the third quarter of 2023. We have established a new division called Industrial Automation Systems, which is composed of the former Measuring and Process Systems division (balancing, filling and tooling technology) and the Production Automation Systems business unit (automation business of BBS Automation, Teamtechnik and Hekuma). This adjustment makes sense as the two areas intersect in terms of their technology and business model and complement each other well with their products and services for the production of e-mobility components. Teamtechnik and Hekuma were removed from the Paint and Assembly Systems division, to which they were originally assigned, in this connec- tion. There were no changes to the other three divisions (Application Technology, Clean Technology Systems and Woodworking Machinery and Systems).

Interim statement January 1 to March 31, 2024

Group management report	6

CHANGED DIVISION STRUCTURE

Old

New

(from Q3 2023)

IMPACT ON SEGMENT REPORTING

The change to the division structure also affects our segment reporting. In the third quarter of 2023, we no longer report on Measuring and Process Systems. Instead, we now report on Industrial Automation Systems. This interim statement includes the figures for Industrial Automation Services for the first quarter of 2024 as well as the retroactively calculated comparison figures for the same period in the previous year. At www.durr-group.comwe have additionally published the figures for the second quarter of 2023 as well as the quarterly and full-year figures for Industrial Automation Systems for 2022 and 2021. It should be borne in mind that BBS Automation was not consolidated for the first time until August 31, 2023. Updated figures for 2021 and thereafter are also available for the Paint and Final Assembly Systems division at www.durr-group.com. These have been adjusted to allow for the elimination of Teamtechnik and Hekuma, which are now included in Industrial Automation Systems.

BUSINESS PERFORMANCE

EFFECTS OF ACQUISITIONS

The BBS Automation Group (consolidated since August 31, 2023) and Ingecal (consolidated since November 17, 2023), which had been acquired in 2023, contributed aggregate order intake of €74.5 million and sales of €79.1 million in the first quarter of 2024.

EFFECTS OF THE SALE OF AGRAMKOW

The contract for the sale of our subsidiary Agramkow, which was signed on April 25 (see "Material events after the reporting date", page 25) resulted in the following effects on the consolidated financial statements for the first quarter of 2024. Until such time as the transaction closes, Agramkow is classified as held for sale and defined as a disposal group in accordance with IFRS 5. This means that its assets and liabilities are included in the assets and liabilities available for sale. In the consolidated cash flow statement, the cash and cash equivalents attributable to Agramkow are included in the reconciliation of the opening and closing amount of cash and cash equivalents. On the other hand, there was no impact on the income statement.

Interim statement January 1 to March 31, 2024

Group management report	7

EXPLANATORY NOTES ON REPORTED ROCE

This interim statement introduces a new approach for calculating ROCE (including the previous year's figure). The purpose of the new approach is to enhance the informative value of ROCE as an operational performance indicator, while simultaneously ensuring better integration with our management model for capital employed in operations. In order to achieve this goal, EBIT before extraordinary effects, rather than EBIT after extraordinary effects, is now included in the calculation of ROCE. In addition, we take into account rolling EBIT before extraordinary effects over the last twelve months, whereas we had previously projected full-year EBIT from the beginning of the year. To calculate capital employed, we have abandoned an end-of-quarter calculation in favor of a calculation based on the average of the reporting dates over the last four quarters. In addition, we have expanded the scope of the assets and liabilities included in the calculation of capital employed and thus linked ROCE more closely to operational management. In years with low extraordinary effects, the new calculation yields values similar to the previous calculation. Thus, it produces ROCE of 17.5% for 2022, compared to 17.3% under the previous calculation. Therefore, we are retaining the mid-cycle target of 25% for ROCE despite the adoption of the new definition. Ahead of making these adjustments, we consulted with financial analysts and simulated the impact of the change in a peer-group comparison. The new calculation improves comparability with other companies in the capital goods industry.

EXPLANATORY NOTES ON REPORTED SALES

As of 2022, we also report intragroup sales in the division figures. These sales are subsequently eliminated at the consolidated level. Intragroup sales are particularly relevant in the Industrial Automation Systems division, as a large part of its tooling business consists of intragroup deliveries to Woodworking Machinery and Systems. There are only minor intragroup sales between the other divisions.

ORDER INTAKE, SALES, ORDERS ON HAND
€m	Q1 2024	Q1 2023
Order intake	1,488.8	1,464.7
Sales	1,098.4	1,014.7
Orders on hand (March 31)	4,555.4	4,439.2

NEW RECORD REACHED IN ORDER INTAKE

At €1,488.8 million, order intake reached a very high level in the first quarter of 2024, slightly exceeding the previous year's record figure (+1.6%). On the one hand, this was due to the consolidation of the BBS Automation Group and Ingecal, which jointly contributed €74.5 million. On the other hand, we recorded very high order intake in automotive business, as in the previous year. Specifically, we were awarded an extraordinarily large contract for equipping an existing paint shop in Germany with sustainable technology.

There are still ample new capex projects in the automotive pipeline, the main reasons for this being the transition to electromobility and the adoption of sustainable production processes. Although HOMAG's order intake in woodworking business increased by 7.0% over the previous year, we do not yet see any broad-based recovery in demand. The gross margin on Group order intake was significantly wider in the first quarter than in the previous year. Adjusted for currency-translation effects, order intake would have been €10.3 million higher.

Interim statement January 1 to March 31, 2024

Group management report	8

Regionally, the sharp increase in order intake in Germany is evident, with the big-ticket contract mentioned above causing new orders to climb almost four-fold. The 42.8% decline in order intake from the rest of Europe should be seen in the light of the fact that the baseline figure includes a major order in Eastern Europe. In China, order intake fell by around 50% amidst generally subdued macroeconomic conditions. On the other hand, order intake in the rest of Asia as well as in Africa and Australia remained steady, while it fell by one quarter in North and South America. At 29.0%, the share of order intake from the emerging markets was relatively subdued, one reason for this being the high proportion of orders in Germany.

ORDER INTAKE (€M), JANUARY - MARCH 2024

8.3% INCREASE IN SALES

Sales climbed by 8.3% to €1,098.4 million in the first quarter of 2024. This means that the growth rate was slightly above the range of approximately 2 to 8% projected for the year as a whole. The BBS Automation Group and Ingecal, which had not yet been consolidated in the previous year, contributed €79.1 million in the first quarter.

Of the five divisions, four were able to increase their sales in tandem with wider EBIT margins before extraordinary effects. The exception was Woodworking Machinery and Systems, whose sales declined by the anticipated extent (-14.1%) as a result of the muted order situation in the previous year. At Industrial Automation Systems, sales rose the most sharply (77.1%) due to the inclusion of the BBS Automation Group. Paint and Final Assembly Systems and Clean Technology Systems also posted double-digit growth rates of around 13% in each case. At constant exchange rates, sales would have been €9.1 million higher in the first quarter.

The largest share of sales was generated in Europe (45.0%), followed by North and South America (31.4%), where the very high order intake in 2022 continued to have a positive effect. The share of sales attributable to China contracted by 3.1 percentage points to 15.3%. On the other hand, it widened from 7.6 to 8.3% in the rest of Asia, Australia and Africa.

With an increase of 13.5%, service business grew significantly more quickly than total sales in the first quarter of 2024. As a result, the share of sales accounted for by service business increased

Interim statement January 1 to March 31, 2024

Group management report	9

to 29.1% (Q1 2023: 27.8%), thus approaching the strategic target of at least 30%. Paint and Final Assembly Systems and - as a result of consolidation effects - Industrial Automation Systems achieved the greatest growth in service business, while Woodworking Machinery and Systems was also able to appreciably increase sales from service business despite the shortfalls in capacity utilization among many customers. On a further encouraging note, the Group's gross margin on service business widened by more than 1 percentage point over the previous year, with Clean Technology Systems and Woodworking Machinery and Systems registering the greatest improvements.

NEW RECORD ORDER BACKLOG OF €4.56 BILLION

Driven by record order intake, the book-to-bill ratio reached a very high figure of 1.36 in the first quarter despite the 8.3% increase in sales. As a result, order backlog reached a new record of €4,555.4 million as of March 31, 2024, equivalent to an increase of 2.6% over the previous year, in which the BBS Automation Group and Ingecal had not yet been consolidated, and up 8.4% on the end of 2023.

INCOME STATEMENT AND PROFITABILITY RATIOS
		Q1 2024	Q1 2023
Sales	€m	1,098.4	1,014.7
Gross profit	€m	242.4	231.6
Overhead costs1	€m	202.8	194.1
EBITDA	€m	79.7	65.9
EBIT	€m	39.7	37.7
EBIT before extraordinary effects2	€m	53.5	42.0
Financial result	€m	-10.3	-5.3
EBT	€m	29.3	32.3
Income taxes	€m	-9.1	-11.3
Earnings after tax	€m	20.3	21.0
Earnings per share (basic)	€	0.29	0.32
Earnings per share (diluted)	€	0.28	0.31
Gross margin	%	22.1	22.8
EBITDA margin	%	7.3	6.5
EBIT margin	%	3.6	3.7
EBIT margin before extraordinary effects2	%	4.9	4.1
EBT margin	%	2.7	3.2
Return on sales after taxes	%	1.8	2.1
Net financial liabilities to EBITDA3		1.5	0.0
Tax rate	%	31.0	35.0

1. Selling, administration and R&D expenses
2. Extraordinary effects in Q1 2024: €-13.8 million (including purchase price allocation effects of €-12.4 million),
   Q1 2023: €-4.3 million
3. Annualized

GROSS MARGIN OF 22.1%

Gross profit climbed by 4.6% in the first quarter and thus less quickly than sales (8.3%). As a result, the gross margin contracted from 22.8% in the previous year to 22.1%. However, it should be borne in mind that the extraordinary expenses included in gross profit were three times as high as in the previous year, standing at €12.3 million, compared with €4.0 million in the first quarter of 2023. This

Interim statement January 1 to March 31, 2024

Group management report	10

was mainly due to purchase price allocation effects in connection with the BBS Automation Group and Ingecal. Adjusted for these extraordinary expenses, the gross margin came to 23.2% in both periods. It should also be noted that the gross margin at Woodworking Machinery and Systems shrank as a result of the significant decline in sales. On the other hand, the increase in sales and margins in service business had a positive effect on the Group's gross margin.

Overhead costs rose by only 4.4% in the first quarter of 2024 and thus less quickly than sales. Adjusted for the contributions made by the BBS Automation Group and Ingecal, which had not yet been included in the previous year, overhead costs would have fallen marginally in tandem with a slight increase in sales. Within overhead costs, we temporarily reduced research and development costs (-11.0%). This was mainly due to the measures taken to safeguard earnings at Woodworking Machinery and Systems. Selling expenses rose by 5.8% and, thus, less quickly than sales, whereas administration expenses climbed by 12.6% for consolidation-related reasons.

Other operating income net of other operating expenses came to €0.1 million in the first quarter and, as in the same period of the previous year (€0.2 million), was virtually balanced. By far the largest single items were currency-translation gains and losses, which more or less canceled each other out.

SUBSTANTIAL IMPROVEMENT IN EBIT MARGIN BEFORE EXTRAORDINARY EFFECTS

The EBIT margin before extraordinary effects improved by 0.7 percentage points to 4.9% in the first quarter of 2024, thereby reaching the full-year target corridor (4.5 to 6.0%). EBIT before extraordinary effects rose by 27.3%, underpinned in particular by higher sales, disciplined management of overhead costs and good service business, which helped us to increase operating gross profit roughly in sync with sales, despite the declines sustained by Woodworking Machinery and Systems. At the division level, Application Technology and Clean Technology Systems performed strongly with margins of 10.6% and 7.7%, respectively, helping us to more than make up for the expected margin deterioration at Woodworking Machinery and Systems (3.1%) in the Group. At 5.8%, the margin posted by Industrial Automation Systems also exceeded the Group's figure. Paint and Final Assembly Systems was able to slightly increase its EBIT margin before extraordinary effects to 5.0%. As the year continues, the division should generate more substantial growth, driven by higher sales and a more favorable project mix.

After extraordinary effects, EBIT rose by 5.3% to €39.7 million, producing an EBIT margin of 3.6%, which was slightly below the previous year's figure of 3.7%. However, this should be seen in the light of the lower earnings contributed by Woodworking Machinery and Systems and the net extraordinary expenses of €13.8 million, which were substantially higher than in the first quarter of 2023 (€4.3 million). This reflects the increase in purchase price allocation effects to €-12.4 million (Q1 2023: €-4.1 million), of which €-8.5 million was attributable to the Industrial Automation Systems division due to the previous year's acquisition of the BBS Automation Group. Adjusted for currency-translation effects, EBIT would have amounted to €41.3 million in the first three months.

Financial result weakened to €-10.3 million in the first quarter (Q1 2023: €-5.3 million) as interest expenses rose more quickly than interest income. This was due to the increase in external finance following the issue of the green Schuldschein loan in April 2023 and the bridge finance in the form of a syndicated loan arranged for the purchase of the BBS Automation Group. The reduction in the investment result (€-0.6 million) was largely negligible due to the small amount involved.

Interim statement January 1 to March 31, 2024