Ad hoc: Annual Results 2022

Schindler Management Ltd.

Corporate Communications

Ad hoc announcement pursuant to Art. 53 LR

Annual Results 2022

Press release

February 22, 2023

Recovery in progress

• Order intake: reduction in New Installations, growth in Modernization and Service
• Revenue and profit: recovery in the second half of the year
• Dividend maintained at CHF 4.00
• Outlook 2023: low single-digit revenue growth

In 2022, revenue increased by 1.0% to CHF 11 346 million, while order intake decreased by 1.7% to CHF 11 961 million. Operating profit reached CHF 904 million, corresponding to an EBIT margin of 8.0% (EBIT adjusted 9.2%). Net profit totaled CHF 659 million, and cash flow from operating activities reached CHF 688 million.

"Over the course of 2022, we concentrated on resolving our legacy issues and on adapting our business to the fast-evolving market conditions," said Silvio Napoli, Schindler's Chairman and CEO. "The improvements over the last two quarters indicate that our recovery is in motion. The next step will be the relaunch of our simplified modular elevator platform. With a stronger focus on our strategic choices across all business lines, we aim to foster customer value through digitalization, sustainability, and enhanced user experience."

Order intake and order backlog

Order intake decreased by 1.7% to CHF 11 961 million (previous year: CHF 12 166 million), corresponding to -0.2% in local currencies. The Americas and EMEA regions recorded growth. Asia-Pacific was impacted by the significant contraction of the Chinese New Installations market. Overall, the Modernization and Service business continued to grow, mitigating the reduction in the New Installations business.

In the fourth quarter, order intake contracted by 4.3% to CHF 2 994 million (previous year: CHF 3 128 million), corresponding to -2.7% in local currencies.

As of December 31, 2022, order backlog decreased by 0.1% to CHF 9 551 million (previous year: CHF 9 565 million). In local currencies, the order backlog rose by 3.5%.

Schindler Group - Key figures as of December 31, 2022

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Schindler Management Ltd.

Corporate Communications

Revenue

Revenue for the year increased by 1.0%, equivalent to CHF 11 346 million (previous year: CHF 11 236 million), and +2.5% in local currencies. The Americas and EMEA regions grew, while the Asia-Pacific region was impacted by the supply chain disruptions in China.

In the fourth quarter, revenue rose by 2.8% to CHF 3 036 million (previous year: CHF 2 954 million), corresponding to an increase of 4.7% in local currencies. All regions and product lines recorded growth.

Operating profit (EBIT)

Operating profit for the year declined to CHF 904 million (previous year: CHF 1 166 million). The EBIT margin

reached 8.0% (previous year: 10.4%).

EBIT adjusted amounted to CHF 1 047 million with a margin of 9.2% (previous year: CHF 1 252 million; 11.1%).

The year-on-year reduction stemmed from raw material and component cost inflation combined with supply chain issues, which negatively impacted efficiency and project execution.

As a result of the measures initiated throughout the year, operating profit in the fourth quarter amounted to CHF 249 million (previous year: CHF 253 million). The EBIT margin was 8.2% (previous year: 8.6%). The adjusted EBIT margin reached 10.2% (previous year: 10.4%).

Net profit and cash flow from operating activities

Net profit totaled CHF 659 million compared to the previous year's result of CHF 881 million. Cash flow from operating activities reached CHF 688 million (previous year: CHF 1 314 million), resulting from lower operating profit and increased net working capital requirements.

Sustainability

In 2022, Schindler's efforts to fight climate change have been recognized with the inclusion in the CDP A list. The company's commitment to reaching net-zero greenhouse gas emissions by 2040, a plan approved by the Science Based Targets initiative (SBTi) in June 2022, contributed to this score upgrade.

With its first five-year Sustainability Road Map having drawn to a close in 2022, Schindler met five of the six targets set in 2017. The company narrowly missed (by -0.3%) its target of 25% CO2 emission reduction for its global vehicle fleet. This was due to a slower than planned conversion to e-mobility related to global automotive supply difficulties.

Annual General Meeting

With all COVID-19 restrictions lifted, the forthcoming Schindler General Meeting on March 28, 2023, will be held as an on-site meeting, with shareholders invited to participate in person.

Schindler Holding Ltd. profit and dividend

Schindler Holding Ltd. closed the year 2022 with a net profit of CHF 709 million (previous year: CHF 689 million). The Board of Directors will submit a proposal to the forthcoming General Meeting of March 28, 2023, for a dividend of CHF 4.00 per registered share and per participation certificate.

Schindler Group - Key figures as of December 31, 2022

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Schindler Management Ltd.

Corporate Communications

Changes to the Board of Directors

Prof. Dr. Pius Baschera and Orit Gadiesh will not stand for re-election to the Board of Directors at the General Meeting of Shareholders on March 28, 2023. All other members of the Board of Directors are standing for re-election, including Alfred N. Schindler and Luc Bonnard for whom the Board of Directors has decided to extend the age limit in accordance with the exemption foreseen in the Organizational Regulations.

Outlook for 2023

With the ongoing slowdown of the global economy, combined with the pressure on the real estate and construction sectors, Schindler anticipates New Installation markets to decline further. Modernization and Service markets are expected to keep growing across all regions.

In response to this challenging environment, Schindler will continue to focus on enhancing efficiency and supply chain resilience, aiming to drive customer value, based on digital and sustainable products and services.

For 2023, barring unexpected events, Schindler expects low single-digit revenue growth in local currencies. As in previous years, net profit guidance will be provided with the publication of the half-year results.

Attachment: Key figures

The Annual Report is available online from 6:30 CET at: group.schindler.com/en/investor-relations/results.html

For further information:

Nicole Wesch, Head Global Communications & Branding

Tel. [phone], [e-mail]

Marco Knuchel, Head Investor Relations

Tel. [phone], [e-mail]

group.schindler.com

Dial-in details for today's webcast and conference call at 9:30 CET are available at: group.schindler.com/en/investor-relations/events.html

Schindler Group - Key figures as of December 31, 2022

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Schindler Management Ltd.

Corporate Communications

Key figures as of December 31, 2022

January to December

In CHF million	2022	2021		Δ %
Order intake	11 961	12 166		-1.7
Revenue	11 346	11 236		1.0
Operating profit (EBIT)	904	1 166		-22.5
in %	8.0	10.4
Operating profit (EBIT), adjusted	1 0471	1 252	2	-16.4
in %	9.2	11.1
Financing and investing activities	-51	-42
Profit before taxes	853	1 124		-24.1
Income taxes	194	243
Net profit	659	881		-25.2
Earnings per share and participation certificate in CHF	5.67	7.70		-26.4
Cash flow from operating activities	688	1 314		-47.6
Investments in property, plant, and equipment	121	117		3.4
As of December 31
Order backlog	9 551	9 565		-0.1
Number of employees	69 998	69 015		1.4

1. Adjusted for Top Speed 23 costs (CHF 72 million), restructuring costs (CHF 50 million), and expenses for BuildingMinds (CHF 21 million)
2. Adjusted for Top Speed 23 costs (CHF 58 million), restructuring costs (CHF 26 million), real estate gains (CHF -21 million), and expenses for BuildingMinds (CHF 23 million)

• % local currencies

-0.2

2.5

-20.6

-14.5

3.5

Schindler Group - Key figures as of December 31, 2022

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Schindler Management Ltd.

Corporate Communications

4th quarter: October to December

								Δ % local
In CHF million	2022	2021		Δ %	currencies
Order intake	2 994	3 128		-4.3	-2.7
Revenue	3 036	2 954		2.8		4.7
Operating profit (EBIT)	249	253		-1.6	1.2
in %	8.2	8.6
Operating profit (EBIT), adjusted	3091	306	2	1.0		3.6
in %	10.2	10.4
Financing and investing activities	-21	-11
Profit before taxes	228	242		-5.8
Income taxes	50	50
Net profit	178	192		-7.3
Earnings per share and participation certificate in CHF	1.54	1.64		-6.1
Cash flow from operating activities	312	356		-12.4
Investments in property, plant, and equipment	41	35		17.1

1. Adjusted for Top Speed 23 costs (CHF 29 million), restructuring costs (CHF 27 million), and expenses for BuildingMinds (CHF 4 million)
2. Adjusted for Top Speed 23 costs (CHF 42 million), restructuring costs (CHF 6 million), and expenses for BuildingMinds (CHF 5 million)

Schindler Group - Key figures as of December 31, 2022

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