HELLA GmbH & Co. KGaA

Hello ladies and gentlemen and welcome to the Hela Investor Call on the results for the first half of fiscal year 2026. This call will be hosted by Professor Peter Laier, the CEO, and Philippe Vienney, the CFO of Hela. At this time all participants have been placed on a listen-only mode. The conference will be recorded. The floor will be open for questions following the presentation. Let me now turn the floor over to your host Peter Laier.

Hello, good evening, everybody. This is Peter Laier speaking. A warm welcome to our investor call to HeLa, half year one, 2026 results. Kerstin, if you could open the presentation and we could directly go on the agenda. I appreciate. Thank you. So we have prepared for today's call in agenda where we would like to talk at first about the achievements in first half year. followed by the financial results presented by Philippe Vienney, our CFO. And then we have a special chapter on the agenda today about lighting transformation program, which we have accelerated, followed then by the outlook for the financial year 2026. At the end then we will talk about key takeaways as usual. That let me directly step into the presentation. Let's talk at first about achievements. So in regard of achievements, we have in first half year an organic sales in HeLa, which is above market. On the other side, we are working on cost measures. And I will talk about some additional measures which we have introduced in lighting in the course of the presentation. If you look to this chart you see on the left side our organic sales growth which is at constant FX year-over-year growth by 1.6% to 4.040 million euros or above 4 billion. We have in electronics recorded sales year-over-year up by 6.6% to in total 1.685 billion Euro driven by radar business specifically and energy management. We have in our lighting VG a sales recorded year-over-year down by 3.6% to now for first half year 26 1.746 billion Euro affected by a phase-out of programs and of lower call-offs. While in the lifecycle business, these lifecycle solutions, we have an increase of sales by 5.3% year-over-year and have achieved there in the first half year 26, 516 million euro sales driven by specifically strong sales in special OE business which is commercial vehicles and off-highway business mainly. So that means in total we have reported sales year over year which is broadly flat at 3.972 billion euro. There is an FX effect in there in comparison to the constant FX sales which we have mentioned Please allow me then to move to bottom line. Let's talk about OI margin. We achieved an OI margin in first half year of 5.4%. This is specifically achieved by savings in R&D expenses where we were able to decrease the ratio by 68 basis points to now 8.9%. In addition, we have increasing cost pressure along the whole value chain and we have a strong focus on cost measures to counter this impact which we have out of the value chain. And we had in first half year a negative volume and mixed effect which weighted down our margin in first half year. If we then look to net cash flow on the right side of this chart, we recorded the net cash flow for first half year at 66 million. This compares to 114 million in half year one in financial year 25, so a decrease. and we have a net cash flow to sales ratio at 1.7% achieved in first half year in comparison to prior year same time frame 2.9%. So we have in place continued CAPEX governance and we have here achieved reductions but we have to say on the other side our net cash flow is impacted by increased restructuring cash out. That is a cash out out of the restructuring measures which we have introduced. And we have to mention that we have had in Q2 now a positive net cash development, net cash flow on 115 million versus 49 million negative in Q1. So if we go then to the next slide, Kerstin. Thank you. Let me now talk a little bit about acquisition successes in first half year 2026. As you can see in the headline, we had ambitious targets for our order intake in 2026 and we were able to fully meet those targets. But not only the value in regard of the targets we achieved, even more important is we We were able to continue our strategy of regional and customer diversification and we achieved here the related results in acquisition, which is, I think, a very positive signal. If we look a little bit to our business groups, you see here at first the highlights for electronics business, strong order intake here, specifically in our core growth products, which is confirming our strategy. So you see here three examples. On the one side we were able to acquire a large-scale high-voltage battery management system and a smart car access system and radar sensors for a US OEM with SOPs now coming in 27-28. Another example here is we have acquired a DC-DC converter order and roll out now this business at a European OEM for different models. with SOPs in 28 and 29 and a Chinese example here we were as well able to acquire a DC-DC converter and a low voltage battery management system with a Chinese tier 1 supplier with an SOP in 28. So that shows as well the broad range of acquisitions in all regions which we were able to get in first half year for electronics. If you look to lighting in the middle of the chart, there we had a strong focus on international order intake to address our premium OEMs but as well volume models. This is a strategy which we have announced before and now we are executing that successfully. You see that here for example with a headlamp package and a rear combination lamp which we acquired for Premium and mid-size models of an US OEM with SOP 2829. Another example is headlamp and combination lamp packages for European customer for the US and Asian market with SOPs in 26 and 28. Or again, a Chinese example here, headlamp projects and car and body lights, which we were able to acquire for a Chinese OEM for different models with SOPs in 26 and 27. If I then can guide your attention to lifecycle solutions on the lower part of the chart. There we continued our customer and regional diversification according our strategy. So we here examples are in acquisition we were able to acquire intelligent battery sensors for different platforms for US and European customers with SOPs in 26 and 27. And we were on the other side able to acquire customized LED headlamp and the related rear lamps for an international OEM of agricultural machinery and buses for the Indian and the European market with an SOP 27 and 28 or the third example here this time we selected to show to you is an APS for international truck joint venture this is a pedal sensor and a pedal itself for international Structure and Venture for the Asian market with the SOP in 2019. Having that said, then handing over to our CFO, Philippe Vienney, to introduce the financial results of half year one.

Thank you. Good evening to all. Looking at the sales, we published sales at 3.9 billion versus the same type of figure for last year at 3.9. Thank you very much. Thanks to Radar Energy Management and Smart Car Access. We also have a very good momentum on lifecycle solution as well with a strong special business and aftermarket. While on the other side we have a decrease and phase out of programming lighting, not compensated fully by new ramp-ups. But we will come back on that. So looking at the sales per region, Europe. Basically, it's overperforming the market by 4.6%. So here we have the effect of the electronic mainly with, again, radar and smart car access. We also have some SOPs in lighting and growing special application. On Americas, we are at minus 5.2. Here we have the end of production of several lighting programs which is impacting the US. In Asia we are 3.6% overperforming thanks to new launches in China in lighting and also with good momentum as well in electronics with strong energy management in Asia. Looking at the profitability per segment, so starting with electronics, so here we have electronics again growing in terms of sales by 6.6% on the organic standpoint, and we have an operating income at 8% at 144 million versus 121 last year at 7%. So here again we have developed a bit the cells which are basically developing well with a good momentum. And then the OI is at 8%, so here we have reduced the R&D expenses on the electronic segment. We have also made some savings on the administration and distribution expenses. On the other hand, we have a growth profit which is deteriorating because of a mixed impact with a higher material content on some new programs. Looking at lighting, so lighting is down in terms of sales on organic standpoint by 3.6% versus last year at 1.7 billion versus 1.8. Operating margin at 7 million, 0.4%, versus 63 last year at 3.4%. So here on the operating income standpoint, we are suffering from the decline in sales, close to 100 million in sales decline. We also have a decline in the gross profit as a consequence of the decline of sales, and we have some mixed effects which is also impacting our gross margin. and the FLEX which is not fully achieved in terms of fixed cost adaptation and this is also why we are going to the lighting transformation program that will be developed later on in the presentation. On the life cycle, so 515 million, so it's an organic growth of 5.3% in terms of sales. and operating income at 65 million 12.4% versus 10.6% last year. So here we have also good momentum in terms of sales in all areas, especially application, aftermarket and as well on the workshop business. And the operating income here is generated by higher growth profit and also some savings on R&D and SG&A linked to the structural improvement we have been implementing. So good momentum on the lifecycle business. When we look at the EBIT and net income, so first maybe growth profit went 21.6 versus 23.3 as a consequence of what I said Mix effect and not full flakes on the lighting performance. R&D down at 8.9% versus 9.6. SG&A down at 7.4 versus 7.6. So leading to an operating income at 5.4 versus 6% last year at 215 million. Ebit is at 169 million, 4.2% versus 138 last year at 3.5. So the main impact here is coming from less restructuring costs which have been booked in H1-26 versus the amount which was booked for a very large program announced last year in H1. And this is leading to a net income of close to 99 million, 2.5% versus 9 of 70 million last year at 1.8 percent. Looking to the cash so again the cash as mentioned was at 66 million in H1 versus 114 million last year so it's a reduction of 49 million so here we have the impact of More cash out and more payments due to restructuring, so this is linked to the P&L effect that was booked last year, but the cash out is really impacting now 26, because people are exiting now. And we have also reduced our capex, as you see on the chart on the right, with 164 million of capex versus 203 last year, so it's a reduction of 19%, so we continue to monitor and to have a stringent Thank you Philippe for introducing the financials to us.