COVID-19 | Mechanical Engineering Industry Assessment , JUNE 2021 Industrials Sector | Shareholder Sentiment The industrials sector underperformed the DAX Index by ~4% since the discovery of COVID-19. Within the industrials sector some firms are hit worse than others leading to a significant difference in share price development.

INDUSTRY STOCK PERFORMANCE COMPANY STOCK PERFORMANCE SELECTION Index (Stock price on December 1st 2019 = 100)

DAX DAX Industrial Jungheinrich Koenig & Bauer “Best practice”: Jungheinrich AG 220 ◼ Transformation program: Strong cost, liquidity and 200 efficiency program before crisis 88% increase [1] 180 ◼ Crisis management: Efficient crisis management due in stock price 160 to measures from their transformation program Outperformed DAX

140 - 4.2% ◼ Delivery capability: Jungheinrich was able to held up 120 their delivery capability at any time during the crisis Industrials by 62%[1] 100 ◼ Product: Jungheinrich products with stable demand 80 due to growing number of logistic centres Strategy 2025+ 60 focusing on profitability, 40 2020 2021 efficiency and sustainability 0 01.01.2020 01.04.2020 01.07.2020 01.10.2020 01.01.2021 01.04.2021 “Worst practice”: Koenig & Bauer AG

◼ Digital technical service: Lack of customer rollout of ◼ Overall, DAX & DAX industrial recovered well since the start of the crisis, being valued more digital technical service tools before the crisis 12% decrease than before the crisis, but DAX industrial is still underperforming the DAX ◼ Travel restrictions: Order and project processing and in stock price[2] ◼ Short-time work measures helped the industrial sector in the crisis to overcome liquidity worldwide assignments of installer and service Underperformed DAX constraints and delayed production material due to global supply chain problems technicians were highly impaired Industrials by [2] ◼ Companies supplying the airspace industries are struggling the most problems to a lower ◼ Customer Investments: Due to the general 24% order intake (e.g., MTU, Airbus) uncertainty regarding COVID-19, many customers are refraining from making major investments 17% less revenues in 2020 compared to 2019

Notes: [1] Stock price compared to December 1st 2019 Source: Investing.com, goetzpartners 2 Industrial Sector | The CEO’s Agenda The industrial sector has been hit hard by the pandemic, with declining orders, supply issues and cash flow difficulties, but as the pandemic ends, companies should strengthen their business by considering defensive and offensive strategic options

LESSONS LEARNED FROM COVID-19 CRISIS STRATEGIC CONSIDERATIONS

DEFENSIVE ▪ Are you shaping the portfolio to future core as well as (FINANCING, considering strategic carve-outs to minimize risk exposure MARKET CATCH- and to finance re-growth? UP) ▪ Are you streamlining overhead and indirect functions? Need for more New competencies ▪ Are you anticipating behavioural changes of customers and supply chain required to structural changes in the supply chain and equipping for transparency to Demand for manage business model adaptions? identify remote technical automation and bottlenecks at an service is remote working early stage increasing environment

OFFENSIVE ▪ Have you reviewed your Target Operating Model to align with (ACQUISITION, future product and service portfolio? CARVE-OUT) ▪ Are you focusing your investments on growth segments and aggressively search for struggling M&A targets? Need for flexible Crisis Shift in focus from ▪ Are you strengthening technological advantages through and adaptive management pure sales of strategic partnerships? automation to capabilities required machines to ▪ Are you upgrading and digitizing your operations/ machines react fast in to react quickly to provide more with a digital twin, IoT sensors etc. to enable digital service changing changing services to secure capabilities? environments. environments recurring revenues

Source: goetzpartners 3 Contact us [email protected] Dr. Gunnar Binnewies Prof. Dr. Jochen Vogel Philipp Widmaier Milan Saric Partner Partner Managing Director Managing Director Restructuring Restructuring, Turnaround Debt Advisory M&A Tech & Bus. Serv. +49 151 17141083 +49 151 17141033 +49 151 18236115 +49 151 17141117

Stefan Sanktjohanser Dr. Stephan Goetz Managing Partner Managing Partner

Dr. Wolfram Römhild Axel Meythaler Dr. Jan-Hendrik Röver Christian Muthler Managing Director Managing Director Managing Director Managing Director Strategy & Industrials Orga. & Transformation Energy, Oil & Gas Indust., Autom. & Bus. Serv.

Dr. Alexander Henschel Dr. Gerrit Schütte Ivo Polten Ulrich Kinzel Managing Director Managing Director Managing Director Managing Director Transformation & TMT Portfolio Perf. & Carve out Technology, Industrials Healthc., Pharma, MedTech

Günther Schermer Björn Röber Gerwin Weidl Andreas Hering Partner Partner Director, Munich Director Healthcare Digital Chemicals, Industrials Digital, Media, Tech, VC

Dr. Norbert Danneberg Senior Industry Expert Private Equity Consulting

4 goetzpartners offices

DUBAI LONDON MOSCOW PARIS ZURICH Central Park Towers OT 37 Floor 37, DIFC goetzpartners securities Limited Starokonyushenny lane, 10/10, bld. 1 19, Avenue George V Kantonsstraße 1 PO BOX 507270 Dubai, The Stanley Building 119002 Moscow, Russia 75008 Paris, 8807 Freienbach/Zurich, Switzerland United Arab. Emirates 7 Pancras Square London N1C 4AG, UK MUNICH PRAGUE DUSSELDORF MADRID Prinzregentenstr. 56 Melantrichova 17 Rather Straße 49d Calle Marqués de Urquijo n 30°, piso 1° 80538 Munich, 110 00 Prague 1, 40476 Dusseldorf, Germany 28008 Madrid,

FRANKFURT MILAN NEW YORK TaunusTurm, Taunustor 1 Piazza Fontana, 6 250 Greenwich Street, Suite 4620 Unit 2104-05 60310 Frankfurt/M., Germany 20122 Milan, Italy New York, NY 10007, USA 1045 Middle Huaihai Road 200031 Shanghai, China www.goetzpartners.com 5 Disclaimer

This presentation has been prepared by goetzpartners Management Consultants GmbH, Munich (hereafter referred to as "goetzpartners") exclusively for the benefit and internal use of the recipient and does not carry any right of publication or disclosure to any other party. This presentation is not and must not be considered as a prospectus. Neither this presentation nor any of its content may be used for any other purpose without the prior written consent of goetzpartners.

The information in this presentation reflects prevailing conditions, to the best of our knowledge, as of this date, all of which are accordingly subject to change. In preparing this presentation, goetzpartners has relied upon and assumed, without independent verification, the accuracy and completeness of all information from public sources or which was otherwise reviewed by us. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, goetzpartners, its members, directors, employees, representatives, and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this presentation or for any decision based on it.

© 2021 goetzpartners. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of goetzpartners.