RATIONAL (RAA) Investor Update summary

Financial performance and guidance

• Sales revenue for the first nine months reached €980 million, up 5%, with Q3 alone growing 6%.

• Adjusted for FX, nine-month growth would be 6-7%, and Q2/Q3 organic growth was 8-9%.

• EBIT margin remained robust at 25.5%, with EBIT rising 3% to €234 million.

• Sales guidance for FY2025 is confirmed at mid-single-digit growth (~5%) with a margin of 25-26%.

• U.S. tariffs and currency effects negatively impacted EBIT margin by 80 basis points YTD and 120 basis points in Q3.

Regional performance and outlook

• Europe, especially Germany, showed strong growth, with Germany up 18% in Q3 and 5% YTD, driven by after-sales and a weak prior year.

• Americas and Europe drove regional growth, with Europe up 10% and North America up 6%.

• U.S. growth slowed to 4% in Q3 due to a tough comparison, but nine-month organic growth was 10%.

• Americas expected to accelerate again, with organic growth around 10%.

• Asia expected to face a tough Q4, but overall confidence in returning to high single-digit growth (7-9%) next year.

Cost management and pricing strategy

• No decision yet on U.S. pricing; currently evaluating cost-saving measures before considering price increases.

• Management prioritizes efficiency improvements before passing on costs to customers.

• Potential pricing action may be considered if cost savings are insufficient to maintain margins.

• Analyst feedback suggests a moderate price increase (e.g., 4%) could be positive without deterring customers.