Annual Report 2020/2021

1 Annual Report2020/2021 Annual Report 2020/20212 Key performance indicators in million or %2020 / 20212019 / 2020 Change (%)Currency and portfolio-adjusted sales 6,505 5,739+ sales 6,380 5,829+ earnings before interest and taxes (adjusted EBIT)510227+ EBIT + ppEarnings before interest and taxes (EBIT)454-343+ + ppEarnings for the period360-432+ per share (in ) free cash flow from operating cash flow from operating and development expenditures630431+ expenditure + ppNet financial liquidity/net financial debt103-140+ + dividend (in ) employees (as at 31 May)36,50036,311+ performance indicatorsAnnual Report 2020/20213 Table of contentsHELLA at a glance 4 Regional positioning 7To our shareholders Foreword 8 The Management Board 10 HELLA on the capital market 12 Highlights 14 Financial Report

2 Group management Report 18 Non-Financial Report 98 Report by the Supervisory Board 114 Consolidated financial statements 118 Independent auditors certificate 217 Responsibility statement 224 Overview of bodies 225 Glossary 227 Legal notice 230 Comparison of key performance indicators over three years 231 Annual Report 2020/20214 HELLA at a glanceHELLA is a listed, global, family-owned company with more than 125 locations in around 35 countries, and is considered one of the leading automotive suppliers worldwide.

3 Specialising in innova-tive lighting systems and vehicle electronics, HELLA has been an important partner for the automotive industry and the aftermar-ket for 120 years. Furthermore, the Special Applications segment of HELLA develops, manufactures and sells lighting and electron-ics solutions for special Report 2020/20215 billion billionAdjusted EBIT margin Currency and portfolio-adjusted consolidated salesEmployees worldwide in the permanent workforce 36,500 Research and development ratio Reported Report 2020/202166%8%87% sales in total in billion Business segmentsAutomotiveThe segment is split into the Lighting and Electronics business divisions: in the Light-ing Division HELLA develops and produces headlamps, rear combination lamps and also solutions for car body and interior lighting.

4 The electronics portfolio makes a major con-tribution to ensuring that driving is safer, more efficient and more comfortable. The range comprises innovative product solutions for driver assistance, energy management, body electronics and power steering, sensors and actuators, and also lighting a selection of around 38,000 spare parts, wear parts and accessory parts as well as a comprehensive range of services, HELLA is one of the most important partners for spare parts retailers and independent workshops in Europe. These activities are supplement-ed with a comprehensive range of products focussing on high-quality equipment for di-agnostics, exhaust gas testing, lighting ad-justment, calibration, system testing and the appropriate measuring instruments for ve-hicle workshops, car dealerships and vehicle testing ApplicationsIn the Special Applications segment, HELLA develops and manufactures lighting and elec-tronics products for special vehicles such as construction and agricultural vehicles, buses, trailers and motorhomes, as well as prod-ucts for the marine sector.

5 In doing so HELLA transfers its high level of technological ex-pertise from the core automotive business to these target groups, whilst also developing standalone product solutions for these cus-tomer 5,545 millionSpecial Applications 359 millionAftermarket 504 million 77 Asia, Pacific, RoW 5,894 Germany 8,657 North, Central and South America 7,38640%20% 18%32%2 1%29%36,500 Annual Report 2020/2021 Reported sales in total in billion EmployeesRegional 2,013 millionAsia, Pacific, RoW 1,154 millionNorth, Central and South America 1,345 millionEurope excluding Germany 1,867 millionEurope excluding Germany 14,56324% 16% Annual Report 2020/20218 Dear Shareholders, Ladies and Gentlemen Once again we have experienced a fiscal year marked by countless chal-lenges and strenuous effort.

6 Nevertheless, HELLA has held its ground well even in such a demanding situation and has, overall, brought the year to a successful conclusion. To be specific, our success relates to three counts in , we have been able to keep coronavirus in check. Very early on, following the outbreak of the virus more than a year and a half ago, we immediately took action to introduce a large number of different measures. We also implemented these protective measures vigorously during the past fiscal year with a view to effectively preventing chains of infection within the Company and providing the best possible protection for the health of our staff worldwide. That was and still is our top prior-ity.

7 All HELLA members of staff have contributed to this programme by adhering strictly to the necessary precautions or alternatively by chang-ing to mobile forms of work. And for their great flexibility and also for their tireless commitment, I wish to express my warmest , we were able to alleviate the economic repercussions of the pandemic across the board. After adjustment for currency and portfolio effects, our sales rose by 13 percent to billion compared to the prior year. This means that once again we have grown significantly fast-er than the global automotive market. Thanks to this successful busi-ness development and our consistent cost management, our adjusted earnings before interest and taxes have more than doubled to reach 510 million.

8 The adjusted EBIT margin has increased to percent. With each of these figures, we find ourselves in the upper reaches of the forecast ranges raised in December 2020. Based on these results, we will propose a dividend payment of per share at the Annual General Meeting on 30 September 2021. Hence we are maintaining our established dividend policy even in these challenging times. Thirdly, in the past fiscal year we set our Group on a vital strategic course, most importantly by means of our comprehensive programme ForewordAnnual Report 2020/20219to ensure long-term growth in our competitiveness. First of all, this pro-vides for necessary structural adjustments.

9 We have made great pro-gress in implementing these measures both throughout the global HELLA network and also at our German locations. One consequence is that we will need to cut approximately 900 jobs in Development and Ad-ministration at our Lippstadt company headquarters by the end of 2023. For the majority of those jobs, we have already been able to draw up socially acceptable agreements. Taking such steps is not easy. But they are necessary to secure the long-term viability of the company mov-ing forward. The second point here is that we are continuing to invest massively in research and development. In the past year, around 10 per-cent of our sales from the previous year has once again gone towards the development of future-oriented automotive technology, e-mobility and autonomous driving, software and digital lighting.

10 And especially because of such a scenario, in the reporting period we were able once again to acquire a great deal of new business for the future. Our results send a very clear message: they show that HELLA is in a good position. In order to maintain the Company's success over the long term, we will tackle the challenges that lie before us with the utmost determination. The corona pandemic has not yet been overcome. It will continue to demand a great deal from us. The same applies to the considerable resources bottlenecks in the global delivery and logistics chains. Even in the course of the fiscal year just completed, we were confronted not only with increasing shortages in the semiconductor market but also with scarcities in other components.