RATIONAL (RAA) Investor update summary

Business performance and regional trends

• First half of 2026 developed in line with expectations, with continued growth and high profitability despite geopolitical and currency challenges.

• Sales revenue reached EUR 642 million, representing 8% organic growth and 6% reported growth after currency effects.

• Europe, especially Germany and other European markets, drove growth with 9% increases; North America saw 10% organic growth, and Asia was weighed down by China but showed positive signs elsewhere.

• U.S. market remains a key long-term growth driver, with expectations of 10%-15% growth in H2 and beyond.

• China faced challenges due to local sourcing trends and slower sales organization build-up, but long-term opportunities remain attractive.

Product and innovation highlights

• iCombi remains the core product, generating over EUR 560 million in revenue with 5% growth.

• iVario segment grew by 14% to nearly EUR 80 million, reflecting lower market penetration and higher growth potential.

• iHexagon is progressing well, with increasing user adoption and positive feedback, though detailed figures are not disclosed.

• NRA show in Chicago generated more leads than previous years, highlighting the strategic importance of the U.S. market.

Financials and cost management

• Tariff refunds of EUR 14 million were booked as a deduction from cost of goods sold, boosting gross margin to 59.8%.

• Adjusted for the refund, gross margin would be 57.6%, reflecting higher logistics and tariff costs.

• EBIT rose by 11% to EUR 170 million, with an EBIT margin of 26.5% (24.3% without the tariff refund), the highest in recent years.

• R&D expenses increased by 7%, sales and service by 5%, while admin costs remained stable.

• Balance sheet remains strong, with higher inventories due to new warehouse and overseas stock, and higher accounts payable as a timing effect.