ElringKlinger AG Business Report FY ended Dec. 2012

Business Highlights

Financial Overview

(in million euros)
  FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 Rate of Change (%) Factors
Sales 1,127.2 1,032.8 9.1 1)
EBITDA 215.4 245.5 (12.3) -
OE Segment
Sales 906.9 827.2 9.6 2)

1) Overall
-Revenue grew by 9.1% to reach EUR 1,127.2 million, which was the highest in its history, due to structural growth in product areas such as turbocharger and exhaust gaskets, thermal shielding parts and lightweight plastic housing modules. Further, this was complemented by large revenue contributions from the E-Mobility division with the start of serial production for cell contact systems used in lithium-ion batteries.

2) OE Segment
-Results were buoyed up by growth in passenger car markets in Asia and in North and South America. The Company also benefits considerably from the prevailing trend towards compact, downsized engines.

<By divisions>
-Cylinder-head Gaskets: The Division managed to propel sales in emerging countries such as China in particular. This was primarily achieved on the back of newly developed solutions for downsized, direct-injection petrol engines.

-Specialty Gaskets: Growth in the Division was driven by rising customer demand for highly heat-resistant gaskets for turbocharger and exhaust system applications. The Division was benefiting from an expanding market for turbocharger gaskets, in particular high-temperature V-rings.


-In January 2012, the Company acquired the metal housing manufacturer ThaWa GmbH Thaler Warenautomaten. The Company strengthened activities in the field of exhaust gas purification technology.

Recent Development Outside Germany

-In December 2012, the Japanese joint venture, ElringKlinger Marusan Corporation, established a subsidiary in Indonesia, trading as PT. ElringKlinger Indonesia. Operating with its own production facilities in Greater Jakarta, the Group has created its first stepping stone for business within the ASEAN region. From 2013 onwards, cylinder-head and specialty gaskets as well as heat shields will be rolling off the production line at the local plant, primarily for Japanese car and truck manufacturers.


R&D Expenditure

 (in million euros)
  FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 FY ended Dec. 31, 2010
Overall 57.3 49.9 40.6

R&D Structure

-In 2012, the Group continued its focus on developing new products and applications in traditional product groups -metal gaskets, heat shields and plastic housing modules -while also pursuing entirely new product concepts, ready for full market rollout, in the new fields of exhaust gas purification technology and e-mobility.

-As of Dec. 31, 2012, the number of people employed in the Company's R&D-related departments was 410 (2011: 416).

R&D Activities

-In September 2012, the Company announced it will be contributing to the SafeBatt research consortium. Bringing together fifteen partners from the German automobile and automotive supply industry as well as from the scientific community, the joint initiative will be focusing on further improving the reliability and intrinsic safety of lithium-ion batteries deployed in hybrid vehicles and pure electric cars. ElringKlinger will be looking to contribute its expertise in the field of cell contact systems, with a particular focus on evaluating and integrating sensor technology. The Federal Ministry of Education and Research is injecting funds of 19 million euros in total. SafeBatt commenced on July 1, 2012, and is scheduled for completion on June 30, 2015. (From a press release on September 20, 2012).

Investment Activities

Capital Expenditure

(in million euros)
  FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 FY ended Dec. 31, 2010
Overall 114.3 121.6 134.3

Investment in Germany

-Among the principal investments made in 2012 was the extension of the new plant for plastic housing modules at the site in Dettingen/Erms. Investments were directed at the expansion of the Thale production site, starting in the spring of 2013. The Company also made additional investments in machinery within the E-Mobility division for the production of cell contact systems.