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Acquisition SOBEK Group | September 2025 DEUTZ Acquisition of SOBEK GroupSeptember 2, 2025
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Unless stated otherwise, all the figures given in this presentation refer to continuing operations.The details given in this document are based on the information available at the time it was prepared. This presents the risk that actual figures may differ from forward-looking statements. Such discrepancies may be caused by changes in political, economic, or business conditions, a decrease in the technological lead of DEUTZ's products, changes in competition, the effects of movements in interest rates or exchange rates, the pricing of parts supplied, and other risks and uncertainties not identified at the time this document was prepared.The forward-looking statements made in this document will not be updated. Disclaimer 2
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Acquisition SOBEK Group | September 2025 DEUTZ strengthens defense business with acquisition of SOBEK Group –a drive systems specialist for drones and other applications Market perspective: Defense market potential with focus on UAVs (unmanned aerial vehicle)Introduction to SOBEK: Technology and positioningStrategic rationale for the acquisition and fit to Dual+ strategy 3 Acquisition of an established and profitable business in Germany that will enable us to strategically tap into the rapidly growing defense market beyond conventional drives Today’s topics
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Acquisition SOBEK Group | September 20254 Market perspective & geopolitics: Europe is rearming and shifting spending to defense technologyEuropean NATO defense budgets, in € bn 245325470610 160195 2018202220252030 965 +7%+13% +15%Ramp-up to 3.5%Ambitious accelerationBase +550€ bn +475€ bn 3,670€ bn Total2026-2030§Focus on defensesovereignty leading to need for local production and partners§Need tobuild trust quickly to partake in growth potential §Shift in spending towards “def tech” and especially unmanned aerial vehicles (UAVs)-Germany: Drones and loitering munition are the top 4 priority and impact other top priorities in cross-domain operations, e.g., using drones in counter-UAV operations-UK: Drones seen as 80% of the army –leading to a change in the military doctrine based on Ukraine’s experience-US: UAVs to be prioritized at the same level as major weapon systems Carsten Breuer, German Armed Forces Inspector General, May 2025 “..maximumincrease of readiness via increase of material availability, fully-equipped units and digitization of all forces...”
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Acquisition SOBEK Group | September 2025 UAV market: High growth segment in military aviation CAGR 2024-30 (in %) Estimated European UAV production value, in € bn §Small and mid-sized UAVs essential for modern defense strategies enabling scalable, flexible operations and are faster and cheaper to deploy than traditional platforms§Tactical drone market opening upto new players: low entry barriers, fast innovation cycles and political support are creating space for specialized suppliers§Scale-up capabilities essential to capture growth§Due to evolving nature of market, different market models –but all reflect strong growth dynamics Sources: 2024/2025 TEAL market report with expert adjustments5 202520262024202720282029203020312032203320342035 1.9 6.5 7.9 +23% +4%
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Acquisition SOBEK Group | September 20256 SOBEK: Established and highly profitable high-tech player for electric motors 6 Products Applications Distribution of sales 2024 25% 33% 9% 33% 64%12%3%21% Electric motors &control electronicsPumpsValvesOther Motor sportsDefenseAviationRobotics, Medtech & others ElectricmotorsControlelectronicsPumpsValves §Founded in 1975 by Bernd Sobek, led by Dr. Olaf Hahn since 2009 (100% owner), ~70 employees §Established drive specialist –with focus on developing high-performance electric drive and hydraulic systems for drones, motor sports, and aerospace§High-tech made in Germany with three production sites (Kassel, Hirschberg & Rottenburg)§Scalable, high-quality manufacturing across its core product lines:BLDC motors, control electronics, pumps, and valves§Expectedperformance 2025:Revenue of low to mid double-digit million-euro range and EBITDA of approximately €10 to €12 million(significant double-digit EBIT margin)
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Acquisition SOBEK Group | September 20257 Based on leading technology, SOBEK expects to grow rapidly and expand into military UAVsSOBEK: Expected share of sales §Strong starting point given foundations in high-end motor sports§Expansion into military drones underway and driving growth §Additional potential in aviation, robotics and med tech§Current business in defense-Supply of motors and motor controllers-Initial success with high-margin contractswith three high-profile OEMs12%2024 48% 2025E >50% 2027 >60% 2033 Motor sportsDefenseAviationRobotics, Medtech& others 1522 34 43 16% CAGR 2024-33
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Acquisition SOBEK Group | September 2025 8 SOBEK supplies BLDC motors and control electronics for defense drones 8 Control electronicsElectronics that translate inputs from the flight control system to the electric motorMax. current:up to 200 amperes BLDC e-motorsElectromagnetic motors to power the propellersOften combined with control electronics to ensure redundancyMax. power: 10.000 W 1-8x/drone 1-8x/drone Applications of SOBEK products in defense drones Key advantages of SOBEK’s technology§Superior power density§High energy efficiency§Precise controllability
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Acquisition SOBEK Group | September 20259 §Early partner to future European defenseprimes: SOBEK already supplies electric drive systems –consisting of motor, control elements, and software –to leading European drone manufacturers, and as a key component supplier is part of the new European ecosystem that is emerging in the defense-tech sector§Local supply chains as key differentiator: In a field where supply chain sovereignty and ITAR1-free sourcing are mission-critical, SOBEK offers local-to-local sourcing and resilient European manufacturing§OEM preconditions already fulfilled: SOBEK meets almost all key procurement criteria for drone OEMs from aerospace certifications to technical performance and delivery reliability SOBEK already is a trusted partner to European defense techs 1. ITAR –International Traffic in Arms Regulations
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Acquisition SOBEK Group | September 2025 SOBEK + DEUTZ: Profitable business, ideally positioned in defense §SOBEK has a strong stand-alone casebased on its technology leadership in advanced drive systems and strong market position§DEUTZ contributes industrialization scale, e.g. manufacturing, sourcing, service infrastructure, homologation capabilities§SOBEK enables DEUTZ to continue to develop from a product supplier to a system integrator§DEUTZ gains atechnological edge with a view forjoint development of modular system platforms such as powertrain kits tailored to defenseand adjacent markets§SOBEK enables DEUTZ to gainstrategic access to the new defense ecosystemand quickly expand its defense business in ayoung, fragmented marketwith high growth
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Acquisition SOBEK Group | September 2025 §Enables broader set-up and thereby making ourselves less dependent on the volatile combustion engine business, e.g.move from a one-product to a multi-business company, which acts as a system integrator§Boosts our newly founded Defense business unit in a market which is build on trust, experience and long-term commitment with potential for full system responsibility and cross-selling for defense primes, enabling lifecycle revenues and bundling with DEUTZ’s existing customer base§Builds a positioning in the dynamic and fast-growing defense tech supplier landscape –with high-tech made in Germany –a commitment to continuing to invest and produce in Germany An additional milestone in executing our Dual+ strategy
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Acquisition SOBEK Group | September 202512 How we proceed§All shares of SOBEK to be purchased based on favorable EBITDA multiple of 11x§Transaction expected to close imminently§Financingsecured throughcredit lines§Subject to favorable market conditions, DEUTZ also intends to finance the transaction through acapital increasefrom authorized capital excludingpre-emption rights of no more than 10% of the current share capital§"Low touch" integration approachmaintaining entrepreneurial dynamics and tech expertise of SOBEK (comparable to Blue Star Power Systems and UMS)
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Acquisition SOBEK Group | September 2025 WE LOOK FORWARD TO YOUR QUESTIONS THANK YOU FOR YOUR ATTENTION
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Acquisition SOBEK Group | September 2025