Grammer Ag · XETR:GMM
Grammer — UniCredit German Investment Conference 2008
31 slides from Grammer's conference presentation, Sep 23, 2008
Slide 1: German Investment Conference
German Investment Conference September 23, 2008 Well Positioned for Profitable Growth
Slide 2: GRAMMER: Well Positioned for Profitable Growth
GRAMMER: Well Positioned for Profitable Growth Market Leadership Positions and standard setter 1 in attractive specialty markets Profitable Growth Attractive Business Platform providing large diversity 2 of customers, markets and products Higher Strong Profitability Potential through improved cost M
Slide 3: GRAMMER: Well Positioned for Profitable Growth
GRAMMER: Well Positioned for Profitable Growth Market Leadership Positions and standard setter 1 in attractive specialty markets Profitable Growth Attractive Business Platform providing large diversity 2 of customers, markets and products Higher Strong Profitability Potential through improved cost M
Slide 4: Group Overview
1 Market Leadership Positions Group Overview Grammer Group Automotive Seating Systems 15% of EBIT 85% of EBIT 65% of Sales 35% of Sales Automotive Offroad Truck Railway Bus Products Products Products Products Products Head- & Armrests Driver seats for offroad Driver seats for Passenger seats for Dri
Slide 5: Seating System – Offroad – Global Market
1 Market Leadership Positions Seating System – Offroad – Global Market Global Market - Offroad Market Trends - Offroad Grammer’s Market Position MEGATREND Generation of alternative energy #1 #1 #3 #3 EUROPE Modernization of existing vehicles in Total Market Volume [EUR m.] Eastern Europe New regulat
Slide 6: Seating System – Offroad – Grammer’s Market Position
1 Market Leadership Positions Seating System – Offroad – Grammer’s Market Position Grammer’s Market Position Seating System - Offroad Market and Strong Global player with technology brand image and local content in all key Highly innovative leader in Europe broad customer base markets Strong leading
Slide 7: Seating System – Truck – Global Market
1 Market Leadership Positions Seating System – Truck – Global Market Global Market - Truck Market Trends - Truck Grammer’s Market Position EUROPE Several model changes in 2009-2011 #2 #1 #1 #6 Dual sourcing strategy of OEM’s Very competitive market, dominated by ISRI Potential new market entry by Re
Slide 8: Seating System – Truck – Grammer’s Market Position
1 Market Leadership Positions Seating System – Truck – Grammer’s Market Position Grammer’s Market Position Seating System - Truck Positive Successful market Technology and New seat brand image in China entry in Russia with market leadership in generation “Echo” and India customer KAMAZ South America
Slide 9: Seating System – Railway – Global Market
1 Market Leadership Positions Seating System – Railway – Global Market Global Market - Railway Market Trends - Railway Grammer’s Market Position WESTERN EUROPE Still largest market for next 10 years #2 #3 #3 Strongest future growth in France Need for market consolidation on Tier 2 level Total Market
Slide 10: Seating System – Railway – Grammer’s Market Position
1 Market Leadership Positions Seating System – Railway – Grammer’s Market Position Grammer’s Market Position Seating System - Railway Strong reputation in Market leader in high- Strong Only “real” innovation, design speed and long- brand image global Player and ergonomics distance trains Strong mark
Slide 11: Automotive – Global Market
1 Market Leadership Positions Automotive – Global Market Global Market – Premium Automotive Segment* Market Trends - Automotive Headrests Total Market Volume [EUR m.] Adoption of European safety features in the 1,200 875 1,650 NAFTA region (CAK) Low cost products for Asian markets Armrests Integrati
Slide 12: Automotive - Grammer’s Market Position
1 GRAMMER Market Leadership Positions Automotive - Grammer’s Market Position Grammer’s Market Position Automotive Experienced Attractive product and Strong reputation for development partner customer mix in R&D centers USA, design, quality and with all western based premium and compact Europe and As
Slide 13: GRAMMER: Well Positioned for Profitable Growth
GRAMMER: Well Positioned for Profitable Growth Market Leadership Positions and standard setter 1 in attractive specialty markets Profitable Growth Attractive Business Platform providing large diversity 2 of customers, markets and products Higher Strong Profitability Potential through improved cost M
Slide 14: Grammer’s Product Portfolio
2 Attractive Business Platform Grammer’s Product Portfolio Attractive product portfolio providing innovation, safety and comfort… Seating Systems Automotive Offroad Truck Railway Headrests Armrest & Centre Consoles Maximo Evolution Kingman Premium Crash Active Armrest active Seat Headrest (CAK) Prim
Slide 15: Sales by Region
2 Attractive Business Platform Sales by Region …with a continuously increased global focus… Grammer Sales 1997–2007 – Domestic and International* Grammer Sales 2007 by Region 289 411 998 Sales 2007: 998.1 EUR m. EUR m. EUR m. EUR m. 55% 53% 49% Asia 10% Europe 75% America 15% 47% 51% 45% 1997 2002 2
Slide 16: Global Footprint
2 Attractive Business Platform Global Footprint …supported by an increasingly low cost, global production network. Total Employees in Germany / International 1997 - 2007 Direct Production Employees 2007 by Location 34% 30% Low Cost 48% 37% Trend: Low Cost Med. Cost Medium High Cost 70% High Cost 66%
Slide 17: GRAMMER: Well Positioned for Profitable Growth
GRAMMER: Well Positioned for Profitable Growth Market Leadership Positions and standard setter 1 in attractive specialty markets Profitable Growth Attractive Business Platform providing large diversity 2 of customers, markets and products Higher Strong Profitability Potential through improved cost M
Slide 18: Key Success Drivers - Grammer’s Fitness Program
3 Strong Profitability Potential Key Success Drivers - Grammer’s Fitness Program Grammer’s Fitness Program results in a leaner and more efficient organization and therefore improves our cost structure and competitiveness significantly. Target Headcount Reduction Target Cost Reduction (Full Year View
Slide 19: Key Success Drivers – Product Highlights and New Orders
3 Strong Profitability Potential Key Success Drivers – Product Highlights and New Orders Leading system supplier with highly innovative products Seatcab: Integration of seat & cabin suspension Growth in high margin service and aftermarket business: New contract with US distribution network Offroad L
Slide 20: GRAMMER: Well Positioned for Profitable Growth
GRAMMER: Well Positioned for Profitable Growth Market Leadership Positions and standard setter 1 in attractive specialty markets Profitable Growth Attractive Business Platform providing large diversity 2 of customers, markets and products Higher Strong Profitability Potential through improved cost M
Slide 21: Significant Growth Potential
4 Significant Growth Potential Grammer to exploit different opportunities for profitable growth Grammer’s Focused Growth Model Organic Growth Geographic Footprint Industry Consolidation Innovative new Facilities in high World leading technology & products growth Chinese manufacturer of supplier mark
Slide 22: GRAMMER: Well Positioned for Profitable Growth
GRAMMER: Well Positioned for Profitable Growth Market Leadership Positions and standard setter 1 in attractive specialty markets Profitable Growth Attractive Business Platform providing large diversity 2 of customers, markets and products Higher Strong Profitability Potential through improved cost M
Slide 23: GRAMMER – Outlook 2008
5 GRAMMER – Outlook 2008 Group and Divisions The established automotive markets could face a significant downturn in the 2nd half of 08. However, booming sales in China, India and Russia mean that the global passenger car market could record a slight growth in 2008. Automotive Grammer Automotive div
Slide 24: Disclaimer
Disclaimer This presentation has been prepared by Grammer AG solely for the UniCredit German Investment Conference on September 23, 2008. It has not been independently verified. It does not constitute an offer, invitation or recommendation to purchase or subscribe for any shares or other securities
Slide 25: Contact
Contact Postal Address: Grammer AG Georg-Grammer-Str. 2 Germany 92224 Amberg Internet: www.grammer.com Investor Relations: Mr. Ralf Hoppe Tel: +49 (0)9621 66 2200 Fax: +49 (0)9621 66 32200 Email: investor-relations@grammer.com Ralf Hoppe (39), Vice President Investor Relations Before joining Grammer
Slide 26: Backup - Key Financials Q2-2008
Backup - Key Financials Q2-2008 Copyright Grammer - Investor Relations September 2008 Page 26
Slide 27: Financial Highlights Q2-2008: Group P&L
GRAMMER - Financial Highlights Q2-2008 Group P&L in EUR m. Jan-Jun 08 Jan-Jun 07 Change in % Grammer Group Highlights Revenue 547.8 491.9 11.4% EBITDA 33.1 36.0 -8.1% Continuing strong sales performance EBITDA Margin 6.0% 7.3% -1.3%-points by both divisions with double-digit EBIT 21.9 24.3 -9.9% gro
Slide 28: Financial Highlights Q2-2008: Group Balance Sheet and Capex
GRAMMER - Financial Highlights Q2-2008 Group Balance Sheet and Capex in EUR m. Jun 30, 08 Jun 30, 07 Change in % Grammer Group Highlights Balance Sheet Total 531.2 506.9 4.8% Equity 186.6 178.8 4.4% Increased balance sheet total due to Net Debt 92.8 74.0 25.4% higher business, seasonal influences an
Slide 29: Financial Highlights Q2-2008: Group Cash Flow and Employees
GRAMMER - Financial Highlights Q2-2008 Group Cash Flow and Employees in EUR m. Jun 30, 08 Jun 30, 07 Change in % Grammer Group Highlights Operative Cash-Flow 0.3 4.0 --- Free Cash-Flow -12.6 -5.9 --- H1 08 free cash flow negatively impacted by lower pre-tax result, and Employees (30.06.) 9,754 9,333
Slide 30: Financial Highlights Q2-2008: Seating Systems
GRAMMER - Financial Highlights Q2-2008 Seating Systems in EUR m. Jan-Jun 08 Jan-Jun 07 Change in % Seating Systems Highlights Revenue 210.4 181.5 15.9% EBIT 21.1 13.4 57.3% Once again the Grammer Seating EBIT Margin 10.0% 7.4% 2.6%-points Systems division showed a very Capex 4.2 6.6 -36.0% strong pe
Slide 31: Financial Highlights Q2-2008: Automotive
GRAMMER - Financial Highlights Q2-2008 Automotive in EUR m. Jan-Jun 08 Jan-Jun 07 Change in % Automotive Highlights Revenue 351.2 317.4 10.7% EBIT 3.6 11.3 -68.1% YTD sales growth +10.7% vs. EBIT Margin 1.0% 3.6% -2.6%-points previous year, despite slower sales Capex 8.5 4.2 102.4% growth in Q2 (+6.
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