Mahle Half-Year Report 2023

Arnd Franz

Chairman of the Management Board and CEO

“Sales increased by 12 percent from January to June 2023, rising to €6.6 billion compared to previous year. While
sales increased in almost all markets, we were still feeling the late effects of the coronavirus pandemic in China. Operating result was significantly higher than in the previous year. Earnings before interest and taxes (EBIT) stood at €90 million, an increase of around €270 million. We were able to renegotiate market prices, stem pressure in the supply chain, and improve the operating performance of our plants. Nevertheless, external influences and special
effects still held down our result.”

Explanation of significant Changes in the Income Statement

In the first half-year of 2023, the MAHLE Group generated sales of €6,589 million; this corresponds to an increase of 11.8 percent compared to the same period last year. The sales increase is mainly due to volume increases. In addition, the continuing tense market environment required a continuous exchange with key customers and suppliers in order to distribute the additional costs proportionately across the value chain in form of price adjustments and price escalation clauses. Exchange rate effects of €135 million had a negative impact on the development of sales. This was mainly due to the devaluation of important trading currencies, such as the Argentine peso, the Chinese renminbi, the Japanese yen, and the Turkish lira against the euro. The appreciation of the Mexican peso and the US dollar against the euro had a counteracting effect. Adjusted for the above currency effects, the sales of the MAHLE Group rose organically by 14.1 percent in comparison to the same period of the previous year.