RATIONAL (RAA) Investor Update summary

Financial performance and guidance

• Sales revenue grew 4% in H1 to EUR 606 million, with Q2 growth at 5.5% despite negative FX effects; FX-adjusted growth would have been 5.5% for H1 and 8% for Q2.

• Order situation is promising, supporting confidence in achieving full-year sales guidance.

• Margin guidance narrowed to 25%-26% (from 25%-27%) due to FX and additional U.S. import tariffs, with H2 margins expected to face further headwinds.

• Additional U.S. tariffs estimated at EUR 10 million for FY2025, with EUR 1 million already incurred in H1; full impact to be felt in H2.

• No guidance for next year will be given before year-end results, as future tariffs and pricing actions remain uncertain.

Pricing and competitive landscape

• Market hints suggest competitors have raised prices by 5%-10%, with some up to 15%, even before tariffs took effect.

• Price increases are not easily reversed, though some competitors have rolled back prices in the past when input costs fell.

• Internal discussions on pricing are ongoing; any decision will take time to implement and may not fully offset cost increases.

• No immediate pricing decision has been made; earliest update could be around the Q3 call in early November.

• Competitive actions and market share considerations are influencing the timing and scale of potential price adjustments.

U.S. and China market dynamics

• U.S. demand environment remains volatile, with customers facing higher energy, labor, and food costs; product penetration is still low, offering growth potential.

• Strategy focuses on replacing traditional equipment with more efficient products, emphasizing cost of ownership benefits.

• Key account investment in the U.S. is subdued due to interest rate hikes and tariff uncertainty, while daily business remains stable.

• In China, a new lower-end product will launch after Chinese New Year, but no significant growth impact is expected in the first year.

• No major cannibalization is anticipated from the new China product; ramp-up phase will take several months.