Heckler & Koch Group

Performance Call
For the three and six month periods
to June 30, 2016

Oberndorf a.N.
September 2, 2016
Forward-Looking Statements

This presentation includes forward-looking statements. These forward-looking statements can be identified by the use of
forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “intends,” “may,” “will”
or “should” or, in each case, their negative, or other variations or comparable terminology, or by discussions of strategy,
plans or intentions. These forward-looking statements include statements that are not statements of historical facts and
relate to our current intentions, beliefs or expectations concerning, among other things, our results of operations, financial
condition, liquidity, prospects, growth, strategies and the industry in which we operate.

By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees
of future performance and that our actual results of operations, financial condition and liquidity, and the development of the
industry in which we operate may differ materially from those made in or suggested by the forward-looking statements
contained on these slides, in statements made by H&K representatives in their presentations or in a “Question and Answer”
period following such presentations. In addition, even if our results of operations, financial condition and liquidity, and the
development of the industry in which we operate are consistent with the forward-looking statements contained in this
presentation, those results or developments may not be indicative of results or developments in subsequent periods.

We undertake no obligation to publicly update or publicly revise any forward-looking statement, whether as a result of new
information, future events or otherwise. All written and oral forward-looking statements attributable to us or to persons
acting on our behalf are expressly qualified in their entirety by the above cautionary statements.

Performance Call, September 2, 2016 2

Financials Q2 & H1 2016

Performance Call, September 2, 2016 3

Financials
Income Statement

Q2 Q2 Jan-Jun Jan-Jun
€ millions
2016 *) 2015 *) 2016 **) 2015 **)

Revenue 50.1 45.8 96.1 89.9

Cost of Sales (32.0) (25.5) (59.5) (57.1)
Gross Profit 18.1 20.3 36.6 32.8
Research & Development (0.3) (0.7) (1.5) (1.4)
Selling, Marketing & Distribution (7.1) (6.3) (11.5) (11.5)
General Administration (2.6) (3.3) (6.3) (6.8)
Other Operating Income 0.6 0.7 1.1 1.1
Other Operating Expenses 0.2 (0.4) (0.0) (0.8)
EBIT 8.8 10.3 18.3 13.4
Interest Expenses (Bond Coupon) (5.8) (7.0) (11.6) (14.0)
Other Financial Items (0.8) (2.7) (3.3) 1.5
Current & Prior Year Taxes (0.5) (0.6) (0.6) (1.8)
Deferred Taxes (0.6) (1.4) (1.8) (1.7)
Profit / (Loss) for the Period 1.1 (1.5) 0.9 (2.6)
informative

EBITDA 11.2 12.6 23.0 18.0

*) unaudited, interim, condensed, consolidated Income Statement for the three months ended June 30
**) unaudited, interim, condensed, consolidated Income Statement for the six months ended June 30

Performance Call, September 2, 2016 4

Financials
Cash Flow Statement

Q2 Q2 Jan-Jun Jan-Jun
€ millions
2016 *) 2015 *) 2016 **) 2015 **)

EBITDA 11.2 12.6 23.0 18.0

Change in NWC 1.4 3.1 5.4 (3.7)
FX Variances 0.6 (1.8) (0.9) 3.9
Gains/(Losses) on Disposal of PPE etc. 0.1 0.0 0.1 0.0
Income Tax paid (1.2) (0.3) (1.7) (0.6)
OCF / Operating Cash Flow 12.0 13.6 25.9 17.6
Capex (0.4) (0.7) (1.0) (1.1)
Capitalized R&D Costs (0.8) (0.4) (1.4) (0.9)
Other Cash Flow from Investments (1.2) (1.3) (0.9) (2.2)
CFI / Cash Flow from Investments (2.4) (2.3) (3.2) (4.2)
CFF / Cash Flow from Financing (12.0) (14.4) (15.0) (29.8)
Net Increase/(Decrease) of Cash Position (2.4) (3.2) 7.7 (16.4)
Cash Position at Beginning of Period 27.6 18.7 17.8 31.7
FX Variances in Cash Position 0.0 0.1 (0.3) 0.3
Cash Position at Period End 25.3 15.6 25.3 15.6
informative

FCF / Free Cash Flow***) 10.8 12.5 23.6 15.6

*) unaudited, interim, condensed, consolidated Statement of Cash Flows for the three months ended June 30
**) unaudited, interim, condensed, consolidated Statement of Cash Flows for the six months ended June 30
***) FCF = OCF +/- Capex +/- Capitalized R&D Costs

Performance Call, September 2, 2016 5

Financials
Financial Position

€ millions 30.06.16 *) 31.12.15 *)

Total Assets 221.5 230.2

Total Non-current Assets 94.7 95.5
Goodwill & Other Intangibles 33.0 32.7
Property, Plant & Equiment 38.7 41.5
Other Non-current Assets 23.0 21.2
Total Current Assets 126.8 134.8
Cash Position 25.3 17.8
Other Current Assets 101.5 116.9

Total Equity & Liabilities 221.5 230.2

Total Equity (149.2) (149.7)
Total Non-current Liabilities 329.4 332.7
3rd Party Loans & Borrowings 242.4 244.3
General Liability & Pension Obligations 65.6 66.2
Other Non-current Liabilities 21.3 22.1
Total Current Liabilities 41.3 47.3
informative

Total Liabilities 370.7 379.9

*) (un)audited, interim, condensed, consolidated Statement of Financial Position for the date stated

Performance Call, September 2, 2016 6

Q3 Guidance & Recent Developments

Performance Call, September 2, 2016 7

Q3 Guidance & Recent Developments

We currently expect to achieve net sales roughly in line

with Q2/2016, along with an EBITDA somewhat better than
Q2/2016 and operating cash flow in between Q1 &
Q2/2016. Net Working Capital is expected to further
decrease from Q2/2016.

Performance Call, September 2, 2016 8

Thank you for your interest in our Group

Performance Call, September 2, 2016 9