HAMBORNER Company Presentation

Company Overview

Founded in 1959, HAMBORNER has grown to become a leading European manufacturer of industrial seals, gaskets, and related components. The company serves automotive, aerospace, construction, and energy sectors through a network of 15 production sites and more than 80 sales subsidiaries worldwide.

In May2021 the Board presented a comprehensive review of the previous fiscal year, highlighted key achievements, and outlined the roadmap for the next three years. The presentation emphasised three core themes: operational excellence, digital transformation, and sustainable growth.

Financial Highlights (FY2020/21)

Revenue growth was driven primarily by the automotive and renewableenergy divisions, which together contributed 58% of total sales. Despite supplychain constraints, the company maintained a healthy EBITDA margin of 13.5% through costreduction programmes and improved capacity utilisation.

Strategic Priorities (20212024)

1. Operational Excellence Implement Lean Six Sigma across all plants, target a 5% reduction in cycle time, and achieve a 10% reduction in scrap rates.
2. Digital Transformation Roll out an integrated ERP system, develop IoTenabled production lines, and launch a customer portal for realtime order tracking.
3. Portfolio Expansion Introduce highperformance sealing solutions for electricvehicle powertrains and hydrogenfuelcell systems.
4. Geographic Growth Expand presence in AsiaPacific with two new production sites in India and Vietnam by 2023.
5. Sustainability Reach carbonneutral manufacturing by 2030, increase recycledmaterial usage to 40% of rawmaterial input, and obtain ISO14001 certification at all sites.

The presentation highlighted that each strategic pillar is supported by specific KPIs, quarterly review cycles, and a dedicated implementation office reporting directly to the CEO.

Commitment to Sustainability

HAMBORNERs 2021 sustainability report outlines progress toward the United Nations Sustainable Development Goals (SDGs). Key achievements include:

• Reduction of CO emissions by 12% per unit of production since 2018.
• Implementation of a closedloop water recycling system at three German sites, achieving a 30% decrease in freshwater consumption.
• Launch of a producttakeback programme for endoflife seals, diverting 150tonnes of material from landfill in 2020.

The May2021 presentation introduced a new Green Seal certification for products meeting stringent environmental criteria, positioning HAMBORNER as a preferred supplier for ecoaware OEMs.

Future Outlook

Management forecast a compound annual growth rate (CAGR) of 5% through 2024, underpinned by the accelerating adoption of electric mobility and renewableenergy infrastructure. The company expects the following trends to shape its business:

• Electrification Demand for hightemperature, highpressure seals in battery packs and powerelectronics modules.
• Hydrogen Economy Growth in fuelcell vehicles and offshore wind turbines, requiring corrosionresistant sealing solutions.
• Digital Supply Chains Greater reliance on datadriven demand planning and predictive maintenance.

Risk mitigation strategies cover rawmaterial price volatility, geopolitical trade tensions, and cybersecurity threats. The Board reaffirmed its commitment to shareholder value through a stable dividend policy and a sharerepurchase programme targeting 150million annually.