Grammer Ag · XETR:GMM
Grammer — Investor Presentation (November 2018)
38 slides from Grammer's investor presentation, November 2018
Slide 1: Investor Presentation November 2018
Investor Presentation November 2018
Slide 2: Content
GRAMMER GROUP – INVESTOR PRESENTATION Content 1 GRAMMER Group Investment Highlights 2 GRAMMER Group Corporate Overview 3 GRAMMER Product Segment Overview 4 GRAMMER Group Highlights 2018 5 GRAMMER Strategy for Profitable Growth 6 GRAMMER Strategy for Leadership in Innovations 7 GRAMMER Group Outlook
Slide 3: GRAMMER Group Investment Highlights
GRAMMER Group Investment Highlights
Slide 4: Well positioned for profitable growth & value generation
1 GRAMMER GROUP – INVESTMENT HIGHLIGHTS Well positioned for profitable growth & value generation + Leading global player in the automotive and commercial vehicles industry + As an interior trendsetter, GRAMMER is ideally positioned to benefit from industry megatrends + Excellent global presence in a
Slide 5: GRAMMER Group Corporate Overview
GRAMMER Group Corporate Overview
Slide 6: Leading global player in the automotive and commercial vehicles industry
2 GRAMMER GROUP – KEY FACTS Leading global player in the automotive and commercial vehicles industry Group revenues by region and division (FY 2017) Key OEM customers by region by division Automotive Commercial Vehicles Automotive EMEA 70% 68% APAC 16% Americas Commercial 16% Vehicles 30% Total: € 1
Slide 7: Global production and R&D network on 4 continents
2 GRAMMER GROUP – GLOBAL FOOTPRINT Global production and R&D network on 4 continents Global Locations Americas: USA Mexico Brazil Argentina EMEA: Germany Belgium Italy Spain UK Czech Republic Poland Serbia Bulgaria Slovenia Turkey South Africa AMERICAS EMEA APAC World APAC: Revenues [FY 2017, € m.]
Slide 8: Strong track record of global revenue growth
2 GRAMMER GROUP – LONG-TERM GROWTH Strong track record of global revenue growth Group revenues in € billion ~ 1.85 1.79 1.69 1.43 1.37 1.27 1.09 1.13 0.93 0.72 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e Acquisition Acquisition Acquisition EiA Electronics Nectec Reum Group Sales of ~30 € m. S
Slide 9: GRAMMER Group Product Segment Overview
GRAMMER Group Product Segment Overview
Slide 10: Automotive Division
3 GRAMMER PRODUCT SEGMENT OVERVIEW Automotive Division Headrests Consoles & Armrests Interior Components Product Revenues Product Revenues Product Revenues (in % of total Division) (in % of total Division) (in % of total Division) 40% 47% 13% Main Customers Main Customers Main Customers Audi, BMW, C
Slide 11: Premium interior components for maximum safety, comfort & functionality
3 GRAMMER PRODUCT SEGMENT OVERVIEW Premium interior components for maximum in safety, comfort & functionality Headrests Consoles & Armrests Interior Components © 2018 GRAMMER AG - Investor Presentation November 2018 Page 11
Slide 12: Commercial Vehicles Division
3 GRAMMER PRODUCT SEGMENT OVERVIEW Commercial Vehicles Division Agricultural & Construction Material Handling & Turf Truck & Caravan Railway & Bus Product Revenues Product Revenues Product Revenues Product Revenues (in % of total Division) (in % of total Division) (in % of total Division) (in % of t
Slide 13: Suspended seating systems for commercial vehicles, trucks, buses and trains
3 GRAMMER PRODUCT SEGMENT OVERVIEW Suspended seating systems for commercial vehicles, trucks, buses and trains Agricultural & Construction Material Handling & Turf Truck & Caravan Railway & Bus © 2018 GRAMMER AG - Investor Presentation November 2018 Page 13
Slide 14: GRAMMER Group Highlights 2018
GRAMMER Group Highlights 2018
Slide 15: Financial key figures 1-9 2018
4 GRAMMER GROUP HIGHLIGHTS 1-9 2018 – FINANCIAL KEY FIGURES Further topline growth, but automotive market and one-time expenses burden results Highlights 1-9 2018 GRAMMER Group [in € m.] At 1.359 € million, Group revenues 1-9 2018 exceed high Revenues Operational EBIT 2017 levels despite negative
Slide 16: Acquisition of TMD Group: Transaction highlights & benefits
4 GRAMMER GROUP HIGHLIGHTS 1-9 2018 – ACQUISITION OF TMD GROUP Transaction highlights & benefits On May 22, 2018, GRAMMER has signed a SPA to acquire 100% of US-based Toledo Molding & Die Inc. (“TMD”) TMD is a specialist in developing and manufacturing highly engineered thermoplastic automotive
Slide 17: Acquisition of TMD Group: Transaction highlights & benefits
4 GRAMMER GROUP HIGHLIGHTS 1-9 2018 – ACQUISITION OF TMD GROUP Transaction highlights & benefits TMD Core Group* revenues (in USD million) TMD & GRAMMER combined North American footprint 15+ facilities 3,500+ employees ~450 in US Midwest, Southwest ~400 ~350 and Central Mexico region ~300 GRAMMER’s
Slide 18: BCA & public tender offer
4 GRAMMER GROUP HIGHLIGHTS 1-9 2018 – BCA & PUBLIC TENDER OFFER BCA & tender offer provide opportunities and mutual benefits for both companies May 29, 2018: GRAMMER & Ningbo Jifeng* have signed a comprehensive business combination agreement Jun 25, 2018: Ningbo Jifeng has published a voluntary take
Slide 19: BCA secures GRAMMER's independence and future development
4 GRAMMER GROUP HIGHLIGHTS 1-9 2018 – BCA & PUBLIC TENDER OFFER BCA secures GRAMMER’s independence and future development No changes to the company’s legal form as a stock exchange listed corporation No change of name or seat & headquarters of GRAMMER AG A Continued Independence Integrity of G
Slide 20: New shareholder structure after closing of tender offer
4 GRAMMER GROUP HIGHLIGHTS 1-9 2018 – BCA & PUBLIC TENDER OFFER GRAMMER AG – New shareholder structure after closing of tender offer GRAMMER AG Shareholder structure GRAMMER AG Shareholder structure before public tender offer after closing of tender offer Cascade** 12.0% Halog** 25.6% 84.2% Ningbo 9
Slide 21: Order intake situation significantly improved
4 GRAMMER GROUP HIGHLIGHTS 1-9 2018 – ORDER INTAKE Order intake situation significantly improved Order intake for new projects Budgeted order intake 2018 Automotive [life-time sales, in € million] [in %] Breakdown by customer group 1,150 German 1,050 Premium OEMs 45% 2018e Other OEMs 770 55% Breakdo
Slide 22: GRAMMER Strategy for Profitable Growth
GRAMMER Strategy for Profitable Growth
Slide 23: Expansion of global positioning results in additional gains in market share abroad
5 GRAMMER STRATEGY – PROFITABLE GROWTH Expansion of global positioning results in additional gains in market share abroad GRAMMER Sales Projection and IHS Market Forecast Development of sales, breakdown by region 2017 - 2022e [in %, 2017 = 100%] [in %] Automotive Sales GRAMMER Group 130% GRAMMER Pro
Slide 24: Higher earnings potential through organic profitability improvement and M&A
5 GRAMMER STRATEGY – PROFITABLE GROWTH Higher earnings potential through organic profitability improvement and M&A activities GRAMMER today: Operating EBIT ~5% GRAMMER future potential: Operating EBIT ~7% 8% - 10% EBIT margin, in % breakdown by segment Sales revenue Sales € 700 M revenue Sales € 500
Slide 25: GRAMMER's M&A and JV activities
5 GRAMMER STRATEGY – PROFITABLE GROWTH Higher earnings potential through organic profitability improvement and M&A activities GRAMMER‘s M&A and JV activities 2017 Strategic partnership with Ningbo Jifeng North Europe America China 2016 Joint Venture with truck manufacturer Shaanxi 2013 Joint Venture
Slide 26: GRAMMER Strategy for Leadership in Innovation
GRAMMER Strategy for Leadership in Innovation
Slide 27: Megatrends offering high potentials for interior specialists
6 GRAMMER GROUP – INNOVATIONS Megatrends offering high potentials for interior specialists Autonomous 1 driving Vehicle interiors will become a new, additional living space 1 Safety for people Electric & hybrid 2 drives Interior defines wellbeing & comfort level 2 Ergonomics of driver and New passen
Slide 28: New potential interior concepts & technologies for future vehicle generations
6 GRAMMER GROUP – INNOVATIONS New potential interior concepts & technologies for future vehicle generations Surfaces & materials Electronics High-quality haptics, touch & feel E/E system integration Hygienic & "green" materials Mobile device integration Lightweight & composite materials E-drives & i
Slide 29: Numerous innovative trends for all product segments and applications
6 GRAMMER GROUP – INNOVATIONS Numerous innovative trends for all product segments and applications Headrests Centre Consoles & Armrests Active & passive safety Intuitive HMI Intuitive or automatic adjustment Functional surfaces with haptic feedback Increased comfort through multi-zone foam Modular s
Slide 30: GRAMMER Group Outlook 2018
ON THE MOVI \ A he Bp, GRAMMER Group Outlook 2018 GRAMMER
Slide 31: Market expectations 2018
7 MARKET EXPECTATIONS 2018 Most regional car & commercial vehicle markets expected to grow Europe USA Brazil China World Worldwide car production Source VDA September 2018 +0% -2% +10% +2% +1% Worldwide truck registrations Source VDA September 2018 +1% +15% +35% -10% +2% Source John Deere August 201
Slide 32: Outlook for FY 2018 revised
7 GRAMMER GROUP – OUTLOOK 2018 Outlook for FY 2018 revised Actual 2017 Outlook 2018 NEW Outlook 2018 OLD Group revenue € 1.79 billion approx. € 1.85 bn approx. € 1.85 bn GRAMMER Operating slightly below Outlook 4.5% around 5% EBIT-margin prev. year ROCE 11.5% below prev. year > prev. year Important
Slide 33: Appendix
Appendix GRAMMER
Slide 34: Key Figures 1-9 2018
A GRAMMER GROUP Key Figures 1-9 2018 [IFRS, in € million] Q3 2018 Q3 2017 Chg. 01-09 2018 01-09 2017 Chg. Group Revenues 431.6 430.9 +0.2% 1,359.2 1,338.9 +1.5% EBITDA -1.8 23.2 -107.8% 63.6 82.7 -23.1% EBITDA-Margin -0.4% 5.4% -5.8%-P 4.7% 6.2% -1.5%-P EBIT -14.0 10.7 -230.9% 27.9 45.8 -39.1% EBIT-
Slide 35: Financial key figures 5-year overview
A GRAMMER GROUP Financial key figures 5-year overview [IFRS, in € million] 2017 2016 2015 2014 2013 Group Revenue 1,786.5 1,695.5 1,425.7 1,365.9 1,265.7 EBITDA 116.0 120.2 83.2 93.7 92.3 EBITDA-Margin 6.5% 7.1% 5.8% 6.9% 7.3% EBIT 66.5 73.0 42.7 57.0 58.0 EBIT-Margin 3.7% 4.3% 3.0% 4.2% 4.6% Profit
Slide 36: GRAMMER AG Share price development
A GRAMMER AG Share price development GRAMMER share price in €, December 31, 2015 until September 30, 2018 70 60 50 40 30 20 31-Dec-2015 30-Jun-2016 31-Dec-2016 30-Jun-2017 31-Dec-2017 30-Jun-2018 Selected Broker Recommendations Top Shareholders Basic Share Data Current Current Broker Date Recomm. TP
Slide 37: IR Contact
A GRAMMER GROUP IR Contact Investor Relations Contact Ralf Hoppe VP Investor Relations, Communications, Marketing & Strategic Product Planning Phone: +49 (0)9621 66 2200 Fax: +49 (0)9621 66 32200 Email: investor-relations@grammer.com Internet: www.grammer.com/investor-relations © 2018 GRAMMER AG - I
Slide 38: Legal disclaimer
GRAMMER AG Legal disclaimer By attending the presentation to which this document relates or by accepting this document and not immediately returning it, you agree to be bound to the following limitations: This presentation and the topics addressed therein have been compiled for discussion purposes o