Knorr Bremse : Factbook

FACT BOOK

Agenda

• Introduction
• Key Company Highlights
• Rail Vehicle Systems (RVS)
• Commercial Vehicle Systems (CVS)
• R&D Focus
• Financials
• Sustainability
• KB shares/ KB bonds
• Appendix

Fact Book

2

The Knorr-Bremse leadership team

Marc Llistosella,

Member of the Board, CEO

Frank Weber

Member of the Board, CFO

Dr. Claudia Mayfeld

Member of the Board, Integrity & Legal

Bernd Spies	Dr. Nicolas Lange
Member of the Board, CVS	Member of the Board, RVS

• 2023-present:Knorr-Bremse |
  CEO
• 2021-present:Vaionic Technologies GmbH| Board Member and investor
• 2019-present:Einride AB| Board Member and investor
• 2008-2018:Daimler Trucks Asia |
  2015-2018: President & CEO, Mitsubishi Fuso Truck & Bus Corporation; Head of Daimler Trucks Asia | 2008-2014: Managing Director & CEO, Daimler India Commercial Vehicles
• Diploma in Bus. Administration

• 2020-present:Knorr-Bremse |
  CFO
• 2016-2020:Daimler AG | Head of Corporate Development
• 2019-2020:Mercedes-Benz AG | Head of Transformation
• 2013-2016:Daimler Trucks Asia | CFO
• 2011-2013Mitsubishi Fuso Trucks & Bus Corporation | CFO
• Diploma in Bus. Administration

• 2021-present:Knorr-Bremse | Head of Integrity & Legal
• 2013-2019:RWE Pensionsfond | Member of the Executive Board
• 2016-2020:Innogy SE | Senior Vice President Group Legal & Compliance, General Counsel
• 2013-2016:RWE AG | Senior Vice President Group Legal & Compliance, General Counsel
• PhD in Accounting Principles

• 2022-present:Knorr-Bremse | Head of CVS
• 2014-2022:Knorr-Bremse | Member (2013-2015) and Chairman (since 2014) of the Management Board, CVS
• 2008-2013:Hella KGaA Hueck & Co | Member of the Management Board, Global Sales
• 2006-2008:Robert Bosch GmbH | Head of Commercial Vehicles product division, Starters and Alternators
• Diploma in Electrical Engineering

• 2023-present:Knorr-Bremse | Head of RVS
• 2017-2023:Knorr-Bremse | Member (2017-2019) and Chairman (since 2019) of the Management Board, RVS 2009-2017: Senior Vice President CoC Bogie Equipment 2006-2009: Head of Development and Testing Brake Mechanics 2000-2006: Team Lead Technology and Development Brake Mechanics
• Doctorate in the field of Transmission Technology

with Knorr-Bremse since 01/23

Years with Knorr-Bremse	4

Years with Knorr-Bremse	3

Years with Knorr-Bremse	8	Years with Knorr-Bremse	23

Notes: RVS - Rail Vehicle Systems; CVS - Commercial Vehicle Systems

Fact Book

3

Knorr-Bremse - One of Germany's most successful industrial companies

115

#1

YEARS

Entrepreneurship-driven

Global market leader

Shared pneumatics experience

Technology

business culture

for braking systems

between RVS and CVS

leadership

2023 Key financials

Sales

op. EBIT

R&D

Aftermarket

€ 893m

€ 544m

€ 7.9bn

~40% of sales

(margin 11.3%)

(~6.9% of sales)

BALANCED PORTFOLIO2) …

… AND DIVERSIFIED GLOBAL FOOTPRINT WITH HIGH LOCAL CONTENT

Asia/Australia

CVS

RVS

op.

CVS

24%

Europe/Africa

RVS

Sales

40%

Sales

49%

53%

60%

EBIT

30+

100+

c. 33k

47%

(~10% Margin)

Americas

(~14% Margin)

27%

countries

sites

employees3)

Notes: Sales, EBITDA, EBITA, and EBIT for 2020 based on annual report prepared in accordance with IFRS, other financial figures for 2020 prepared in accordance with German GAAP (HGB); Aftermarket share based on German GAAP (HGB) where BilRUG sales allocated proportionally between OE and

aftermarket; RVS - Rail Vehicle Systems; CVS - Commercial Vehicle Systems; 1) CAGR 1989-2019 based on German GAAP (HGB), 1989 - first year when consolidated accounts are available; 2) Excluding consolidation/other; 3) Including human resources leased staff; Source: Knorr-Bremse information

Fact Book

4

Over 30 years of consistent strong growth

1985

Management buyout by Mr. Thiele

1985-1990

Successful strategy: Globalisation, focus on RVS and CVS, growth in connected systems

2000		2015/18	2010-2018	2020	2022
Bendix integrates		Joint Venture with		€1bn+ capex invested	Acquisition of RH.	Investment in Nexxiot
Westinghouse Air	JV	DongFeng Motor goes		to future-proof	Sheppard Co., Inc. in
Brake company		into operation &		manufacturing and	the U.S
		expansion 2018		production facilities
2002		2015/16	2017/18	2021	2022
100% acquisition of	TRS	7 acquisitions		Acquisition of Vossloh	Acquisition of EVAC	Investment in Cojali
Bendix in the US	Japan			Kiepe, Federal Mogul Ind.
				Property Rights and
				Hitachi Automotive Syst.

1991

Dawn of the ICE era with high-speedbraking systems

1995-1996

Rise of ADB technology

1999

Joint Venture with Bosch

JV in Electronics

2006

4 Joint Ventures in Rail formed in China

2016

New state-of-the-art innovation and testing centre in Munich

2019

Strategic investment in RailVision & RailNova as well as acquisition of Snyder & Sentient,

2021

Investment in

Autobrains

€ 7.9bn

1985

1989

1990

1995

2000

2002

2003

2005

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Sales (€bn) Important corporate events Product innovation M&A / Strategic partnerships

Notes: 1986-2016 based on financial statements prepared in accordance with German GAAP (HGB) and 2017-2019 based on financial statements prepared in accordance with IFRS. 1) 1989

• first year when consolidated accounts are available

Fact Book

5

Corporate values

Entrepreneurship		Passion		Reliability
 Knorr-Bremse regards		 We are passionate		 Safety is the basis for
challenges as		about what we do		everything we do - and
opportunities for				we do not compromise
generating long-term,				on this
profitable growth

		Technological
Responsibility		Excellence
 As a globally operating		 Knorr-Bremse stands
company Knorr-Bremse		for technological
incorporates a		expertise and
workforce with a wide		competence in all
range of cultures and		company divisions
strengths
		Fact Book	6

Agenda

• Introduction
• Key Company Highlights
• Rail Vehicle Systems (RVS)
• Commercial Vehicle Systems (CVS)
• R&D Focus
• Financials
• Sustainability
• KB shares/ KB bonds
• Appendix

Fact Book

7

Global market leader in rail and truck

Market

Market outperformance

leadership

Track record of above industry

A global market leader

growth

~50% market share1 in RVS brakes

~23% market share1 in CVS brakes

Sustainability

Innovation edge

Shaping industry trends by focusing on safety and mission critical applications

High safety requirements

Key supplier with global core technology know-how and capabilities

Clearly ahead in global homologation processes

1) In 2023

Our technologies are the foundation for sustainable and safe transportation

Resilience

40% aftermarket share1

Well-balancedportfolio

Cost-efficientoperations

Profitability

Focus on attractive rail and truck

end markets

Fact Book

8

Global #1 - Leading supplier of safety-critical rail and commercial vehicle

systems

RVS offering (2023: 47% of sales, 60% of EBIT)

Brake		Entrance		HVAC1)		RCC2)		Couplers
systems		systems

CVS offering (2023: 53% of sales, 40% of EBIT)

Fuel efficiency		Brake systems, steering & vehicle dynamics
 Engine components		 Brake control	 Automated driving
 Transmission		 Brake systems	 Steering systems

Power electrics		Sanitary systems		Signaling systems
Modernisation and support				Aftermarket business

Energy supply & distribution		Connectivity		Electrification
Aftermarket services including Alltrucks network3)

Our customers

Example car builders	Example operators
	Indian Railways

Notes: 21) HVAC - Heating, ventilation and air conditioning; 2) RCC - Rail Computing & Communication; 3) Joint Venture between Bosch, Knorr-Bremse and ZF providing a range of workshop services relating to the repair and maintenance of commercial vehicles across all brands; 4) OEM - Original Equipment Manufacturer

Fact Book

9

Global #1 - … protected by high barriers to entry

Barriers to entry for RVS and CVS markets

Regulation / homologation

Low volumes, high number of variants with high level of customisation

High initial capital requirements, highly protected IP landscape and economies of scale

Highest quality and safety requirements

Long life-cycle with resulting customer loyalty, long gestation period for aftermarket

Same industry leaders since creation of the industry over 100 years ago

Market specifics

	Only supplier world-wide
	certified for all global and local standards and norms
	(GOST, UIC, AAR, ARA)
RVS	Vast array of product variants to homologate
(e.g. >100k active brake articles by Knorr-Bremse)
	Homologation time typically 4-8 years
	for recent Knorr-Bremse products
	One of only two suppliers able to offer harmonised products
	globally
CVS	Continuously increasing safety and emission standards
requirements

Fact Book

10