Slides
Page 1
Q2/26 FINANCIAL RESULTS Marc Llistosella CEO Frank Weber CFO July 30, 2026
Page 2
2 Key take-aways today Group – current mid-term op. EBIT margin reached in Q2/26 RVS – organic growth accelerated and strong profitability CVS – strong orders and good operating leverage Guidance FY26 increased From BOOST to Growth Beyond New mid-term guidance 2030 Sales agreement for HVAC business signed
Page 3
Q2/26
Page 4
4 Robust demand in Rail continues and recovery of NA truck market started Current situation Outlook FY26 1) TPR defines all truck units produced in a specified time; >16t / Class 8; Source: internal and external estimates Order books at OEMs remain very high EU: Overall higher; passenger business stronger, freight remains on low level APAC: lower due to exceptionally strong Q2/25 NA: Passenger and Signaling positive, freight remains on low level Market developments slightly better than expected Overall TPRs1 in Q2/26 yoy confirm recovery trend: EU: significantly lower due to Eastern Europe NA: moderately lower yoy, BUT strongly higher vs. Q1/26 CN: significantly higher yoy Global: B-t-B ~1 or slightly above EU: Ongoing high demand APAC: CN lower yoy; IN & Rest of APAC positive development continues NA: Positive passenger development compensates low freight, good Signaling market Continued positive demand of AM and Cojali Development of TPRs in line with truck OEMs EU: flat to slightly higher yoy NA: slight to solid growth yoy CN: flattish yoy on good level TPR global: flat to slight increase, but uncertainty from Middle East crisis remains +/- + + +
Page 5
Q2/26 – Organic growth accelerated and strong EBIT margin in both divisions 1) reported figure shown incl. tariff reimbursement of ~€ +20m, otherwise CCR 132% 5 FREE CASHFLOW € 262m1 (PY: € 146m) ORDER INTAKE € 2.20bn (org. +3.1% yoy) REVENUES OF € 2.14bn (org. +6.4% yoy) € 1.18bn (org. +5.0% yoy) € 959m (org. +8.1% yoy) OPERATING EBIT MARGIN 14.2% (PY: 13.1%) 17.5% (PY: 16.5%) 11.8% (PY: 10.3%) 143%1 (PY: 96%) ORDER BOOK €7.89bn (org. +4.8% yoy) CASH CONVERSION RATE
Page 6
67.6 63.11 CapEx [€m] NWC1,2 [€m] Free Cashflow [€m] ROCE1,2 (annual.) [%] 6 Strong improvement of NWC, ROCE and FCF as promised 3.1% 3.3% % of sales 63 70 Q2/25 Q2/26 146 160 Q2/25 Q2/26 H1/25 H1/26 2623 2943 HVAC as “Asset held for sale” as of 31.12.25; duagon consolidated since 05.01.26 1) As reported: excl. HVAC in NWC and capital employed 2) adjusted: Incl. HVAC in NWC and capital employed 3) Reported figures incl. tariff reimbursements of € 20m in the U.S. Q2/25 Q2/26 21.3% 23.8%1 +250bps 23.2%2 Scope of days 67.32 30.06.25 30.06.26 1,485 1,44211,5252 1,4311 242 274
Page 7
Order book nearly at record level Yoy increase driven by APAC and the Americas Strong order book supports FY26 development and provides already good visibility into 2027 Good OI, but tough comps yoy EU: almost flat yoy and good order intake in OE and AM APAC: Higher AM in CN & IN partially compensates lower OE, Rest of APAC overall lower NA: Lower in OE, higher in AM Order intake [€m] Order book [€m] 7 RVS – Continuously strong demand visible based on solid order backlog 30.06.25 30.06.26 5,555 5,910 +6.4% Book-to-bill 35 3 Q2/25 Organic M&A FX Q2/26 \ -190 1,288 1,136 -11.8% -14.7% 0.961.17
Page 8
Profitability up 100bps Benefits from volume growth Savings through BOOST measures Break-even further improved Org. revenues up 5% EU: Higher in OE and AM APAC: overall lower despite good development in OE NA: Higher in OE and AM AM share at 53% Revenue [€m] Op. EBIT [€m]/ Margin 8 RVS – Organic growth accelerated and strong EBIT margin increase 16.5% 17.5% 29 Q2/25 Organic M&A FX Q2/26 182 0 -3 208 +14.4%55 32 Q2/25 Organic M&A FX Q2/26 1,104 -7 1,185 +7.3% +5.0% +16.1%
Page 9
Order book significantly up yoy EU: slightly higher vs. Q2/25 NA: significantly stronger yoy APAC: better yoy mainly driven by CN OI better than expected All regions up yoy EU: significantly better, also supported by low comps NA: very significantly stronger yoy reflecting strong market recovery APAC: higher yoy driven by strong demand in CN and pre-poned orders in Japan Order intake [€m] Order book [€m] 9 Book-to-bill 30.06.25 30.06.26 1,772 1,979 +11.7% 820 251 Q2/25 Organic M&A FX Q2/26 1 -11 1,061 +29.5% +30.6% 1.110.92 CVS – Very strong OI well supported by market recovery in NA
Page 10
Profitability up 150bps Op. EBIT margin strongly up yoy Impact of higher volumes with significantly improved cost structure through BOOST efficiency program Higher AM share supportive Org. revenues up 8% OE and AM higher in every region EU: higher revenues, AM significantly stronger NA: OE recovering, trailer still subdued, but stronger AM APAC: solid OE and AM business AM share at 34% Revenue [€m]1 Op. EBIT [€m]/ Margin1 1) M&A: before PPA 2) Start of production 10 10.3% 11.8% 72 1 Q2/25 Organic M&A FX Q2/26 895 -10 959 +7.1% 24 Q2/25 Organic M&A FX Q2/26 92 0 -2 114 +23.7% +26.1% CVS – Remarkable organic growth and margin benefits additionally from BOOST +8.1%
Page 11
Revenue2 [€m] Op. EBIT Margin2 Free Cashflow2 [€m] 11 Guidance FY26 increased 1) Calculation FX headwinds: current FX rates vs. FX rates in FY25 2) FY26 vs. FY25: duagon included and consolidated since 01/26 FY25 FY26e 13.0% 14.0-14.5% 790 FY25 Severance- / Restructuring- payments cash-out FY26e 750-850 FY25 FY26e 7,817 8,100-8,300 approx. -501 FX head- winds yoy approx. -50 FX based on current levels Essentially stable geopolitical and macroeconomic conditions No stronger effects due to Middle East crisis (e.g. supply chain restrictions) Impact on net income by net restructuring costs of ~€ 30m in FY26 No larger impacts by tariffs Rev. org. growth: mid single digit Op. EBIT margin: solid increase Rev. org. growth: low to mid single digit Op. EBIT margin: solid increase General Assumptions Div. assumptions for FY26 vs. FY25 (prev.: 8,000-8,300) (prev.: ~14%)
Page 12
Growth Beyond
Page 13
13 BOOST Brownfield – Margin improvement via stringent cost measures July 2023: start of BOOST1 Clear priorities. Tough decisions. Relentless execution. 1) FY22 is base year for financial comparisons 2026e: Guidance Portfolio rotation Investments in attractive Signaling market Development of CVS service platform Disciplined & smart capital allocation Increase footprint in best cost countries SELL-IT program completed Stable executive board
Page 14
14 BOOST Brownfield – Successfully improved margins of RVS and CVS 2026e: What we will achieve with BOOST Notes: Rounding differences may occur. 2026e outlooks using constant current spot FX rates 1) FY22 is base year for comparisons Revenue (€ bn) Op. EBIT mar. (%) Rev/ FTE (€k) 7.2 11.1 ~230 3.4 14.9 ~210 3.7 9.0 ~270 Revenue (€ bn) Op. EBIT mar. (%) Rev/ FTE (€k) 8.1-8.3 >14 ~275 ~4.6 ~17.5 ~270 ~3.6 ~12 ~310 July 2023: start of BOOST1
Page 15
15 BOOST Brownfield – SELL-IT completed, FIX-IT well on track 1) Closing of HVAC deal is expected at YE26 COMPLETED 3 CVS assets 2 RVS assets Σ ~€ 750m revenues EBIT margin Negative to +5% SELL-IT – key element of portfolio rotation Structural improvements, incl. footprint and headcount reduction, across CVS and RVS SELL-IT FIX-IT ~90% COMPLETED YTD FIX-IT – fully on track and ongoing Op. EBIT margin >130bps FY26e vs. FY22 Op. EBIT margin >70bps FY26e vs. FY22 Operating EBIT margin increase due to BOOST Brownfield by >200 bps
Page 16
16 15.1% 19 13.2% 20 13.5% 21 11.1% 22 11.3% 23 12.3% 24 13.0% 25 14.0-14.5% 14.7% 27e 28e 29e 30e 6.6 6.9 6.2 6.7 7.2 7.9 7.9 7.8 8.2 2018 26e Greenfield (House expansion) IPO until China decline Headwinds I II III ONE Team Cost efficiency Margin accretive Growth was a necessity! IV IPO until China decline Headwinds op. EBIT margin ~16% Revenues ~€ 10bn1 KB op. EBIT margin (%)KB Revenue (€ bn) Next level KB – Secure benefits from BOOST and increase accretive growth AI Enablement Organic revenues shown 1) Excluding HVAC business after closing, which is expected at YE26 Brownfield (Housekeeping)
Page 17
17 Solar system (Value Pools) Green Technologies CVS Core CVS Service Platform Rail Onboard Rail Wayside Signaling Energy Technologies Control Command & Signaling Availability Services Automated Maintenance Operation Automation Capacity & Flow Optimization Smart Electronics Entrance Systems Sanitary Systems Braking Systems Coupling Solutions Freight Efficiency Solutions Services Systems Components INDICATIVE Maintenance Ecosystem Mobility Solutions Chassis Systems Steering Systems Trailer Systems Drivetrain Systems Wheelend Systems Organic targets 2030eKB Universe Growth Beyond – KB is already much more than “just” brakes Dampers ~16% Op. EBIT margin ~€ 10bn1 Revenues 1) Excluding HVAC business after closing, which is expected at YE26 Remanu- facturing
Page 18
18 Deep Dive/ Example – Transformation of existing ENERGY business of today… ~0% 12-14% ~20% Potential T0 T2 T1Laggards INDICATIVE Harvest HigherLower 2026e Power Electrics1 (Microelettrica) Leaders Grid (Zelisko) Energy Technologies Level of transformation Lower Higher Tech/ market attractiveness op. EBIT margin 1) Segments: Rail and industry Today KB has been active >50 years in energy business KB active in three Energy segments: rail, industry, grid Zelisko is established T1 supplier to big energy OEMs in EU and the U.S. Revenues ~€ 240m Op. EBIT margin >17% On that basis: Establish innovative, high-quality provider of components, systems & services within rail, industry & grid applications
Page 19
19 …to drive accretive growth and shareholder value of KB ~0% 14-16% ~20% Potential T0 T2 T1Laggards INDICATIVE Harvest HigherLower 2030e Leaders Level of transformation Lower Higher Tech/ market attractiveness op. EBIT margin Energy Technologies Outlook Multiple opportunities for KB to grow vertically and horizontally in energy Clear organic growth path, incl. portfolio and regional expansion in EU and NA Targets 2030: Revenues ~€ 500m Operating EBIT margin staying accretive vs. KB group Further optional scaling via M&A activities, in line with KB M&A guardrails
Page 20
20 Growth Beyond – our clear plan to bring KB to the next level Portfolio rotation continues to grow shareholder value organically and via M&A Invest in existing internal opportunities via smart capital allocation (e.g. R&D) Selective M&A to grow 1) rail/ truck core, 2) adjacent areas and 3) new segments in CapGoods Expand technology and market leadership beyond brakes (~2/3 of KB’s revenues today) Leverage existing know-how based on R&D, long-term customer relationship and industry knowledge & technologies Invest in attractive segments of the future Growth Beyond is our strategy program following BOOST Growth Beyond builds on KB’s financial and technological strengths Growth and cost efficiency go hand in hand – BOOST discipline remains a fundamental part of how we operate Growth Beyond provides access to new business fields, technologies and markets, while driving innovation, AI and service Growth Beyond marks the next step: shaping growth from a position of strength and securing our future sustainably We defend and extend the core, which gives us strategic and financial freedom Considering KB as a Universe, we unlock growth in our core and new galaxies Develop and invest further in KB’s cultural transformation Growth opportunities will arise – and we will be ready to seize them quickly and decisively Strong support by AI initiatives WHY WHAT HOW ACT AS ONE TEAM
Page 21
21 Growth Beyond – KB’s strategy program strengthens accretive growth… Value creation based on 4 key pillars… …to reach our revenue and margin growth ambitions Further margin expansion Acceleration of profitable growth Selective value-accretive M&A Outgrow markets Digital and scalable business models Capital follows returns, higher value creation ONE Team Cost Efficiency Margin accretive Growth Rail Wayside Energy Tech Rail Onboard CVS Core CVS Service Platform/ AM Green Tech Safeguard efficiency achievements – variable & fixed costs NWC optimization continuation IT excellence Modern performance culture Organizational productivity High performance leadership Lifting synergies between divisions AI Enablement
Page 22
22 … which lead to ambitious financial targets 2030 and an even stronger capital goods company 1) Excluding HVAC business after closing, which is expected at YE26 ML Op. EBIT margin ~16% Cash conversion >90% Revenues ~€10bn1
Page 23
23 Financial Strategy – KB target picture fully supports Growth Beyond 2 Margin increase from operational leverage and operational excellence Op. EBIT margin FY30e: ~16% 1 Strong and margin- accretive organic growth Revenue FY30e: ~€ 10bn1 5 Disciplined and value-accretive M&A ROS, ROCE & CCR as financial guardrails 6 Doubling down / ESG push Reach targets in all dimensions 4 Efficient capital allocation (internal and external) ROCE >25% 3 Further improvements in cash conversion >90% Cash Conversion Rate Targets FY30 1) Excluding HVAC business after closing, which is expected at YE26
Page 24
24Exceeding/ no exceeding targets provided during „strategy update“ in 07/23 BOOST Recap – A proven track record of delivery with clearly improved KPIs Group Revenue ~€ 8.1-8.3bn € 8-9bn Despite FX headwinds (€ -0.5bn) Guidance FY26/ expectations in line vs. targets provided during “Strategy Update” in 07/23 RVS org. growth +8% +6-7% Group op. EBIT margin 14.0-14.5% >14% Op. leverage (50bps), Sell It & Fix It (200bps) CVS org. growth +1% +4-5% Market development RVS op. EBIT margin ~17.5% >16.5% CVS op. EBIT margin ~12% >13.5% ROCE >>20% >20% CCR >100% 80-90% Missing op. leverage Ø 2023-2025 ~113% Dividend payout ratio 53% 40-50% Payout in 2026 Weak TPRs (22 vs. 26e): EU & NA roughly -5%
Page 25
Identified segments that will fuel both revenue & margin growth RVS – Clear target to outgrow markets also in the future 25 Long-term growth supported by megatrend “Green Mobility” and governmental investments Aftermarket as continuous growth driver (incl. CN) OE China business with headwinds and opportunities Continuous growth in various global markets RVS relevant market growth KB market outperformance ~7% 3-4% 3-4% RVS Revenue CAGR 2026-2030e Market assumptions Growth drivers New technologies to improve availability, lifecycle costs, and capacity Power & Grid Smart Electronics Aftermarket Freight Technologies China & India Rail Wayside
Page 26
RVS China – Back to attractive growth 26 Total RVS revenues in China only [in €m] Update 950 800 650 ~600 ~700 ~150 ~200 average 2015-2020 2021 2022 2026e 2030e ~750 ~900 Expectation old1 Achieve- ment Outlook old1 Outlook new … … China will stay accretive for KB Good market share in brakes in High Speed + Metro KB’s technology leadership pays off Strong export business supports customer relationship New opportunities in Freight and Digital Metro: still biggest Metro market globally, but impacted by cautious investments for new metro projects 1) Communicated during “Strategy Update” in 07/23
Page 27
▪ New regulations and emission standards driving CPV growth ▪ 2010-2022: Strong support by new safety and emission standards esp. in EU and NA ▪ 2023-2027: Lower than expected increase of e-mobility and less additional safety standards vs. before ▪ Long-term: e-mobility and autonomous driving will increase CPV growth again (e.g. redundant systems, AM business, more software) CVS – Ability to outperform underlying market development 27 CPV1 growth through regulation, new emission stand., e-mobility, autom. driving and digitalization Shift to higher technology standards in emerging markets Increase of installed base and CVS service platform as basis for aftermarket growth Limited growth of truck production rate Changing Tier-1 supplier landscape CPV1 CAGR for CVS Geopolitical instabilities challenge truck markets 2010-2022 2023-2028 Long-term ~5% ~2% 3-4%Ø 3-4% ~4% CVS Revenue CAGR 2026-2030e CVS relevant market growth KB market outperformance ~1% ~3% Market assumptions Growth drivers 1) CPV is content per vehicle
Page 28
28 Share buybacks Special dividendM&A ~6% R&D ratio 4-5% CapEx ratio ~50% or at least stable Dividend payout ratio Organic Smart capital allocation – Clear strategy and priorities for Knorr-Bremse Non-Organic High priority Low priority
Page 29
▪ Guardrails apply to assets with revenues >€ 50m ▪ Value-accretive positive NPV ▪ Margin-accretive growth with op. EBIT margin >14% within 2 years ▪ FCF accretive within 2 years ▪ ROCE >>20% within 2 years 29 M&A – Disciplined guardrails continuously applied to drive value creation Our M&A strategy for inorganic growth Financial guardrailsPrioritiesFocus Capital goods/ no automotive Soft/ hard synergies KB as best owner Aftermarket/ services Digital solutions Growth fields (e.g. energy tech, green tech) 3 Rail & Truck adjacent areas 2 Rail Core & Truck Core 1
Page 30
30 KB Group – Smart capital allocation for organic and non-organic growth KB revenue set-up regarding growth + margin Focused areas for organic and non-organic investments today ~€ 8.1-8.3bn2 high1 mid1 low1 ▪ Cost focus continues ▪ Further portfolio optimization if necessary ▪ Treatment as Cash Cows ▪ Expansion of rev. share ▪ Increase of org. and non- org. investments ▪ Secure technology leadership ▪ Stay ahead of competition ▪ Optimize investments ~20% ~10% ~70% Smart capital allocation 1) High means: high growth and high margin Mid means: medium growth and medium margin Low means: low growth and low margin 2) Guidance FY26 Energy Tech Green Tech Smart Electronics & Digitalization AI China & India CVS Service Platform / AM North America AI Rail Wayside
Page 31
31 Organic Growth – Resilient revenue expansion globally AM ~38% OE ~62% 2030 Target 4.0-4.5 1.1 2.7 2022 1.2 3.0 2023 1.2 2.6 2024 1.2 2.3 2025 ~1.3 ~2.3 2026e 3.7 4.2 3.8 3.5 ~3.6 AM ~55% OE ~45% 2030 Target 5.5-6.0 1.6 1.8 2022 1.9 1.8 2023 2.2 1.9 2024 2.4 1.9 2025 ~2.4 ~2.2 2026e 3.4 3.7 4.0 4.3 ~4.61 Revenues [€bn] 35% 65% 53% 47% OE AM OE Positive impact Negative impact CN EU NA APAC w/o CN OE CN EU NA APAC w/o CN CPV TPR TPR TPR TPR ~2% p.a. growth globally HS & Metro, Freight HS Regional & Commuter Passenger & Transit Market expansion India Market normalization HDT Post 2029 pre-buy peak Cont. recovery India Japan Energy technology Market expansion Pricing Active inflation mgmt. & cost pass through PricingAM Installed base AM Service platform strategy & connectivity 1) Sale of HVAC: closing of deal expected at YE26 Revenues ~€ 10bn1 excl. HVAC
Page 32
32 Op. EBIT margin – Clear strategy defined for further increase of profitability 1) Mainly in EU and NA 2) Excluding HVAC business after closing, which is expected at YE26 14.9% 14.3% 15.6% 16.5% ~17.5% 9.0% 10.0% 10.4% 10.4% ~12.0% 339 417 401 363 ~430 2022 2023 2024 2025 2026e 2030 Target 507 536 630 713 ~800 2022 2023 2024 2025 2026e Positive impact Negative impact Op. Leverage (OE) Op. Leverage incl. Pricing R&D Cost efficiency Investments Op. EBIT [€m] / margin Op. Leverage (OE) AM R&D Cost efficiency Investments (e.g. AI) ~20% 2030 Target 12-14% Profitable growth in fleet service Platform standardization White-Collar & Break Even Optimization Growth in high margin service platforms incl. Pricing White-Collar & Break Even Optimization Techn. ramp-ups incl. Pricing Profitable growth incl. Pricing Product / Regional mix Disciplined spending on scalable platforms NA ~14% Good markets1 ~13% Okay markets1 ~12% Weak markets1 e.g. AI, footprint, growth e.g. AI, footprint, growth op. EBIT margin2 ~16%
Page 33
33 Group Targets 2030 – Strengthening growth and securing efficiency gains 1) excl. HVAC 2) Mainly in EU and NA Positive impact 2026e Operating Leverage Operating Excellence Investments 2030 Target 14.0-14.5% ~16%~ 2.0% RVS CVS Revenue Growth Free Cash Flow ~(1.0%) Op. EBIT margin Profitability Op. EBIT margin ROCE sustainably ~€ 10bn1 ~16% >25% CCR >90% ~20% ~ 1.0% Efficiency / Cost improvements White-Collar optimization Efficient capital allocation Profitable growth ~14% Good markets2 ~13% Okay markets2 ~12% Weak markets2 Organic CAGR Mid-single-digit p.a. >€ 1bn in 2030e e.g. AI, footprint, growth
Page 34
34 From Good to Great – KB in 2030 Summary: Achievements via BOOST and ambitions driven by Growth Beyond ~60% ~40% 22-26e ~40% ~60% 26-30e 22-26e26-30e ~38% ~48% 22-26e 26-30e 22-26e 26-30e ~11% ~16% 22-26e 26-30e ~16% ~25% 22-26e 26-30e ~219 >1bn 22-26e 26-30e ~3.5bn ~3.5bn >90% Revenue Share RVS vs. CVS CapEx R&D “more railish” “highly profitable Cash Machine” Break-Even Op. EBIT margin ROCE FCF Invest into futureAftermarket Share 1 “more resilient”2 3 + ▪ Energy Tech. ▪ China & India ▪ Green Tech. ▪ AI ▪ etc. Future Growth Areas KB Group – Smart capital allocation for organic and non-organic growth 26-30e “future proof”4
Page 35
35 Summary – Turning strength into value creation 1) Excluding HVAC business after closing, which is expected at YE26 The next phase of Knorr-Bremse 2030 targets Portfolio rotation and smart capital allocation are key Safeguard efficiency gains from BOOST Higher exposure to segments with strong revenue growth and accretive margins INCREASE SHAREHOLDER VALUE Op. EBIT margin ~16% Cash conversion >90% Revenues ~€10bn1
Page 36
36 Back Up
Page 37
Strong profitability potential Highly resilient balance sheet 37 Status Quo – Superior financial profile creates solid basis for future value added 45% Share of AM sales ~24% ~4 € ROCE EPSOp. EBITDA margin Op. EBIT margin 14.0-14.5%~19% FY26E € 750 - 850m ~115% CCR (average 2022-2026e) CCR FY26E Superior financial position Net debt ratio Equity ratio FY26E FY26e 1.5-2.0x 0.5-1.0xA3 A- Gross debt ratio ~35% ~100% FY26e org. +5% p.a. Revenue Order Book >€ 7.5bn Free cash flow FY22 (+7 %-p. vs. FY22) Robust topline growth & high AM share High cash conversion potential
Page 38
Group Q2/26: Order intake and order book 820 66 36 1,061 1,288 1,136 Q2/25 Organic M&A1 FX Q2/26 2,108 -8 2,202 +4.5% +3.1% 5,555 1,772 30.06.25 5,910 1,979 30.06.26 7,326 7,887 +7.7%Book-to-bill RVS CVS 38 +4.8% Org. growth 1.031.05 Order intake [€m] Order book [€m] RVS CVS
Page 39
Group Q2/26: Revenue development y-o-y 895 1,104 127 34 1,185 Q2/25 Organic M&A1 FX 959 Q2/26 1,999 -16 2,143 +7.2% +6.4% 964 469 501 518 526 47 Q2/25 49 1,067 Q2/26 1,999 2,143 +10.6% +6.8% +5.4% +1.4% SA EU Asia/ Pacific NA By division By region RVS CVS 39 Revenue [€m] Revenue [€m]
Page 40
Group Q2/26: Profitability and EPS 1) M&A: after PPA 2) After minorities 40 49 Q2/25 Organic M&A1 FX Q2/26 262 0 -5 305 +16.5% 0.87 1.08 Q2/25 Q2/26 +24.4% 13.1% 14.2% +18.5% + 110bps Q2/25 EPS impacted by Restructuring costs (severance payments) € 28m Q2/26 EPS impacted by Restructuring costs (severance payments) € 13m Op. EBIT [€m]/ Margin EPS2 [€]
Page 41
85 111 92 160 190 114 182 208 Q2/25 rep. Q2/26 rep. 13 Restructuring expenses (severances) 12 M&A related expenses mainly PPA Q2/26 op. Q2/25 op. 227 280 305 262 + 170bps + 110bps Group Q2/26: Bridge reported EBIT to operating EBIT 41 RVS CVS RVS: ~€ 12mRVS: ~€ 6m CVS: ~€ 2m Others: ~€ 5m (16.1%) (11.6%) (17.5%) (11.8%) (16.5%) (10.3%)(9.5%) (14.5%) (11.4%) (13.1%) (13.1%) (14.2%) Op. EBIT [€m]/ Margin
Page 42
13.1% 14.2% 92 114 182 49 208 Q2/25 Organic M&A1 FX Q2/26 262 0 -5 305 +16.5% Group Q2/26: op. EBIT development 1) M&A: after PPA 42 RVS CVS (16.5%) Reported: 227 (11.4%) Reported: 280 (13.1%) (17.5%) (10.3%) +18.5% + 110bps Op. EBIT [€m]/ Margin (11.8%)
Page 43
H1/26: Strong KPIs across the board 1) reported figure shown incl. tariff reimbursement of ~€ +20m, otherwise CCR 80% 43 FREE CASHFLOW € 294m1 (PY: € 160m) ORDER INTAKE € 4.43bn (org. -0.2% yoy) REVENUES OF €4.08bn (org. +4.2% yoy) € 2.25bn (org. +3.0% yoy) € 1.84bn (org. +5.8% yoy) OPERATING EBIT MARGIN 13.9% (PY: 12.6%) 17.1% (PY: 16.0%) 11.7% (PY: 9.9%) ORDER BOOK € 7.89bn (org. +4.8% yoy) 86%1 (PY: 55%) CASH CONVERSION RATE
Page 44
Group H1/26: Order intake and order book 44 1,884 2,600 69 2,026 2,399 H1/25 Organic M&A1 FX H1/26 4,484 -9 -113 4,431 -1.2% Book-to-bill 1.091.13 RVS CVS -0.2% 5,555 1,772 30.06.25 5,910 1,979 30.06.26 7,326 7,887 +7.7% RVS CVS +4.8% Org. growth 1) M&A: after PPA Order intake [€m] Order book [€m]
Page 45
Group H1/26: Revenue development 1,789 168 63 1,837 2,169 2,245 H1/25 Organic M&A1 FX H1/26 3,957 -107 4,080 +3.1% +4.2% 961 936 990 977 91 1,913 H1/25 92 2,075 H1/26 3,957 4,080 +8.5% -2.6% +0.6% -1.4% SA EU Asia/ Pacific NARVS CVS 45y-o-y1) M&A: after PPA By division By region Revenue [€m] Revenue [€m] RVS CVS
Page 46
Group H1/26: Profitability and EPS 1) M&A: after PPA 2) After minorities 46 12.6% 13.9% 81 3 H1/25 Organic M&A1 FX H1/26 498 -15 566 +13.7% + 130bps +16.2% 1.70 2.03 H1/25 H1/26 +19% Q2/26 EPS impacted by Restructuring costs (severance payments) € 17m Q2/25 EPS impacted by Restructuring costs (severance payments) € 51m Op. EBIT [€m]/ Margin EPS2 [€]
Page 47
156 210 176 308 352 214 347 383 H1/25 rep. H1/26 rep. 17 Restructuring Expenses 24 M&A related Expenses H1/26 op. H1/25 op. 432 525 566 491 + 200bps + 130bps Group H1/26: Bridge reported EBIT to operating EBIT 47 RVS CVS RVS: ~€ 24mRVS: ~€ 6m CVS: ~€ 5m Others: ~€ 5m (15.7%) (11.4%) (17.1%) (11.7%) (16.0%) (9.9%)(8.7%) (14.2%) (10.9%) (12.9%) (12.6%) (13.9%) Op. EBIT [€m]/ Margin RVS CVS
Page 48
12.6% 13.9% 176 214 347 81 3 383 H1/25 Organic M&A1 FX H1/26 498 -15 566 +13.7% Group H1/26: op. EBIT development 1) M&A: after PPA 48 RVS (16.0%) Reported: 432 (10.9%) Reported: 525 (12.9%) (17.1%) (9.9%) +16.2% + 130bps (11.7%) Op. EBIT [€m]/ Margin RVS
Page 49
Q2/25 Q2/26 21.3% 23.8%1 +250bps HVAC as “Asset held for sale” as of 31.12.25; duagon consolidated since 05.01.26 1) As reported: excl. HVAC in NWC and capital employed 2) adjusted: Incl. HVAC in NWC and capital employed 2.9% 3.2% % of sales 115 132 H1/25 H1/26 160 H1/25 H1/26 2943 49 Group H1/26 CapEx [€m] NWC1,2 [€m] Free Cashflow [€m] ROCE1,2 (annual.) [%] 23.2%2 274 67.6 63.11 Scope of days 67.32 30.06.25 30.06.26 1,485 1,44211,5252 1,4311
Page 50
RVS H1/26: Order intake and order book Book-to-bill 50 68 H1/25 Organic M&A1 FX H1/26 -218 -50 2,600 2,399 -7.7% 30.06.25 30.06.26 5,555 5,910 +6.4% -8.4% 1.071.20 1) M&A: after PPA Order intake [€m] Order book [€m]
Page 51
16.0% 17.1% RVS H1/26: Revenue and profitability 1) M&A: after PPA 51 64 62 H1/25 Organic M&A1 FX H1/26 2,169 -50 2,245 +3.5% 347 38341 3 H1/25 Organic M&A1 FX H1/26 -8 +10.3% + 110bps +3.0% +11.8% Revenue [€m] Op. EBIT [€m]/ Margin
Page 52
CVS H1/26: Order intake and order book Book-to-bill 52 204 H1/25 Organic M&A FX H1/26 1 -64 2,026 1,884 +7.5% 30.06.25 30.06.26 1,772 1,979 +11.7% +10.8% 1.101.05 Order intake [€m] Order book [€m]
Page 53
9.9% 11.7% CVS H1/26: Revenue and profitability 53 104 1 H1/25 Organic M&A FX H1/26 1,789 -57 1,837 +2.7% 176 21446 H1/25 Organic M&A FX H1/26 0 -7 +21.5% + 180bps +5.8% +25.8% Revenue [€m] Op. EBIT [€m]/ Margin
Page 54
54 Financial calendar 2026 – Upcoming events and FY26 release dates 54 DATE EVENT LOCATION Jul 30 Q2/26 financial results Online Sep 1 ODDO+CoBa Corporate Conference FFM Sep 3 Roadshow West Coast Los Angeles Sep 4 Roadshow West Coast San Francisco Sep 9 Jefferies Global Industrials Conference New York Sep 9 Morgan Stanley Industrials CEO Unplugged Conference London Sep 16/17 IAA Hannover Sep 21 Baader Corporate Access Conference Munich Sep 21 Berenberg 15th German Corporate Conference Munich Sep 23/24 InnoTrans Berlin Oct 6 Roadshow Copenhagen Oct 7 Roadshow Helsinki Oct 29 Q3/26 financial results Online
Page 55
Investor relations contact Andreas Spitzauer Sophia Kursawe +49 89 3547 0593 +49 175 5281320 Andreas.Spitzauer@knorr-bremse.com +49 89 3547 0199 +49 151 62330709 Sophia.Kursawe@knorr-bremse.com 55
Page 56
Disclaimer This presentation has been prepared for information and background purposes only. It does not constitute or form part of, and should not be construed as, an offer of, a solicitation of an offer to buy, or an invitation to subscribe for, underwrite or otherwise acquire, any securities of Knorr -Bremse AG (the “Company”) or any existing or future member of the Knorr -Bremse Group (the “Group”), nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company, any member o f the Group or with any other contract or commitment whatsoever. This presentation does not constitute and shall not be construed as a prospectus in whole or in part. Any assumptions, views or opinions (including statements, projections, forecasts or other forward -looking statements) contained in this presentation represent assumptions, views or opinions of the Company as of the date indicated and are subject to change without notice. The Company disclaims any obligation to update or revise any stateme nts, in particular forward-looking statements, to reflect future events or developments. All information not separately sourced is derived from Company’s data and estimates. Information contained in this presentation r elated to past performance is not an indication of future performance. The information in this presentation is not intended to predict actual results, and no assurances are given with respect thereto. The information contained in this presentation has not been independently verified, and no representation or warranty, expres s or implied, is made as to the fairness, accuracy, completeness or correctness of the information contained herein, and no reliance should be placed on it. Neither the Company nor its advisers and any of their r espective affiliates, officers, directors, employees, representatives and advisers, connected persons or any other person accepts any liability for any loss howsoever arising (in negligence or otherwise), directly or in directly, from this presentation or its contents or otherwise arising in connection with this presentation. This shall not, however, restrict or exclude or limit any duty or liability to a person under any applicable la w or regulation of any jurisdiction which may not lawfully be disclaimed (including in relation to fraudulent misrepresentation). Historical financial or operative information contained in this presentation, if not taken or derived from our accounting rec ords or our management reporting or unless otherwise stated, is taken or derived from financial statements prepared in accordance with either IFRS (for the financial years 2014 -2019) or German GAAP (HGB) (for the financial y ears 1989-2019), each as indicated in this presentation, for the respective period. The financial statements prepared in accordance with IFRS may deviate substantially from (segmental or other) information in the financial statements prepared in accordance with German GAAP (HGB) and, thus, may not be fully comparable to such financial statements. Accordingly, such information prepared in accordance with German GAAP (HGB) is not necessarily indicative for the future results of operations, financial position or cash flows for financial statements prepared in accordance with IFRS. All amounts are stated in million euros (€ million) unless o therwise indicated. Rounding differences may occur. This presentation contains certain supplemental financial or operative measures that are not calculated in accordance with IFRS or German GAAP (HGB) and are the refore considered as non-IFRS measures. The Group believes that such non -IFRS measures used, when considered in conjunction with (but not in lieu of) other measures that are computed in accordance with I FRS, enhance the understanding of our business, results of operations, financial position or cash flows. There are, however, material limitations associated with the use of non -IFRS measures including (without limitation) the limitations inherent in the determination of relevant adjustments. The non -IFRS measures used by us may differ from, and not be comparable to, similarly -titled measures used by other companies. This presentation includes “'forward-looking statements.” These statements contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company’s financial positi on, business strategy, plans and objectives of management for future operations (including cost savings and productivity improvement plans) are forward-looking statements. By their nature, such forward -looking statements inv olve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from results, performance or achiev ements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the market en vironment in which the Company will operate in the future. These forward -looking statements speak only as of the date of this presentation. Each of the Company, the relevant Group entities and their respect ive agents, employees and advisers, expressly disclaims any obligation or undertaking to update any forward-looking statements contained herein. You are urged to consider these factors carefully in evaluating the forw ard-looking statements in this presentation and not to place undue reliance on such statements. To the extent available, the industry and market data contained in this presentation has come from official or third party so urces. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee, representation or warranty (either expressly or implied) of the accuracy or completeness of such data or changes to such data following publication thereof. Third party sources explicitly disclaim any liability for any loss or damage, how soever caused, arising from any errors, omissions or reliance on any information or views contained in their reports. Accordingly, undue reliance should not be placed on any of the industry or market data contained in this presentation. IMPORTANT NOTICE 56