Grammer Ag · XETR:GMM
Grammer — H1 2021 Earnings Presentation
32 slides from Grammer's earnings presentation, Aug 12, 2021
Slide 1: ONE GRAMMER: Financial Results H1 2021
ONE GRAMMER COLLABORATING FOR A SUSTAINABLE FUTURE Financial Results H1 2021 Ursensollen, August 12th, 2021
Slide 2: First six months of GRAMMER Group at a glance
First six months of GRAMMER Group at a glance • Positive business development in a challenging market environment • Volatile customer call-offs and down-weeks in the AMERICAS and EMEA due to semiconductor shortages at the OEMs • Exceptional raw material price development showing first bottom-line im
Slide 3: Highlights from AMERICAS
Highlights from AMERICAS Full focus on stabilization and turn-around activities in the region Coping with a challenging environment • Managing extended customer shutdown weeks and volatile call-offs in North America • Tackling a stressed labor market in the US • Closure of Jefferson plant finalized
Slide 4: Highlights from EMEA
Highlights from EMEA Continuous footprint optimization through production consolidation and plant closures Footprint optimization • Sale of the Spanish entity in Q2 2021 • Closure of three plants by Q3 2021 • Optimization of capacity utilization through region-wide consolidation South Africa 12.08.2
Slide 5: Highlights from APAC
Highlights from APAC Continue our growth strategy in China and in the entire APAC region Profitable growth • New Joint Venture with FAW Truck • New plant in Shenyang starting production • Set-up of a holding company for GRAMMER’s China activities in Hefei 12.08.2021 GRAMMER AG - First Half Year 5 ©
Slide 6: GRAMMER Automotive in line with the markets
GRAMMER Automotive in line with the markets Global market development light vehicles AMERICAS EMEA APAC [in %] [in %] [in %] +165.2 +149.6 +83.6 +83.4 +73.0 +34.7 +12.0 +1.3 +20.0 -3.3 -5.9 -2.4 Q1 Q2 Q1 Q2 Q1 Q2 2021 2021 2021 2021 2021 2021 Market: August ’21 IHS Light Vehicle Production GRAMMER A
Slide 7: GRAMMER CV outperforms market in APAC
GRAMMER CV outperforms market in APAC Global market development commercial vehicles AMERICAS EMEA APAC [in %] [in %] [in %] +108.6 +108.6 +92.9 +68.9 +63.2 +52.9 +16.0 +26.8 +10.3 +0.5 -0.5 -7.7 Q1 Q2 Q1 Q2 Q1 Q2 2021 2021 2021 2021 2021 2021 Market: August ’21 LMC Production [Truck only] GRAMMER Co
Slide 8: Revenue development by region
Revenue development by region Improved markets in both, AMERICAS and EMEA, plus a new sales record in APAC AMERICAS EMEA APAC [in m. €] [in m. €] [in m. €] • H1 2020 was strongly impacted 25% 20% by revenue declines due to the Covid-19 pandemic 55% • Significant increase of revenues +28.0% in H1 202
Slide 9: Revenue development by division
Revenue development by division Two-leg strategy pays off: disproportionate growth in the Commercial Vehicles business AUTOMOTIVE COMMERCIAL VEHICLES SHARE OF GROUP REVENUE [in m. €] [in m. €] Commercial Vehicles Automotive 33% H1 67% 2020 +28.9% 634.2 +38.9% 492.2 Commercial 338.3 Vehicles 35% H1 2
Slide 10: GROUP: Revenue, EBIT and operating EBIT
GROUP: Revenue, EBIT and operating EBIT Positive business development continues despite challenging environment REVENUE EBIT OPERATING EBIT [in m. €] [in m. € and %] [in m. € and %] -7.2% 2.9% -6.2% 3.3% • Group revenue up 32.2% 972.5 • Business development impacted by semiconductor 735.8 shortages
Slide 11: AMERICAS: Revenue, EBIT and operating EBIT
AMERICAS: Revenue, EBIT and operating EBIT Business development strongly affected by global semiconductor shortage REVENUE EBIT OPERATING EBIT [in m. €] [in m. € and %] [in m. € and %] -19.7% -9.5% -18.3% -9.6% • Americas with a revenue increase of 61.6 m € (33.2%) • Q2 was heavily impacted by 247.2
Slide 12: EMEA: Revenue, EBIT and operating EBIT
EMEA: Revenue, EBIT and operating EBIT Overall high revenues in H1, but Q2 influenced by semiconductor shortages in Automotive REVENUE EBIT OPERATING EBIT [in m. €] [in m. € and %] [in m. € and %] -4.8% 5.4% -3.9% 6.2% • Revenue recovery in EMEA of around 123 m € (28.0%) • Volatile customer call-off
Slide 13: APAC: Revenue, EBIT and operating EBIT
APAC: Revenue, EBIT and operating EBIT China continues positive trend from the first quarter REVENUE EBIT OPERATING EBIT [in m. €] [in m. € and %] [in m. € and %] 5.0% 15.0% 5.1% 15.0% • Significant revenue increase of 62.1 m € (43.0%) • Favorable sales momentum in 206.5 APAC with a very strong perf
Slide 14: Global headcount development
Global headcount development Socially responsible measures implemented in 2020 support the positive earnings trend EMPLOYEES [12-month APAC; average, without temps] 1,291 • Number of employees reduced AMERICAS; by 4.2% on 12-month average 4,640 H1 • Differentiated development in -4.2% 2020 the regio
Slide 15: Global investment development
Global investment development Regional and project-specific investment focus continues INVESTMENTS [in m. €] APAC; 2.0 • Level of investments in H1 2021 AMERICAS; in line with the status of projects 7.3 in automotive H1 2020 -3.5% • PLM and new product EMEA; developments ongoing as 12.0 planned 31.8
Slide 16: Finance key figures
Finance key figures Solid capital structure with a medium to long-term financing FREE CASH FLOW NET FINANCIAL DEBT EQUITY [in m. €] [in m. €] [in m. €] 21.3% 23.0% • Negative Free Cash Flow mainly results from increase of working 392.5 capital and prefinancing of the 359.9 332.0 customer projects 29
Slide 17: Outlook 2021
a Outlook 2021 NG GRAMMER
Slide 18: Challenges in the second half of 2021
Challenges in the second half of 2021 • Semiconductor shortages to continue • Volatile customer call-offs in all regions • Exceptional raw material price developments for both divisions → very challenging second half of the year
Slide 19: Outlook 2021: Revenue and earnings growth
Outlook 2021: Revenue and earnings growth Significant increase of Growth of revenue to operating EBIT to around around EUR 1.8 billion EUR 65 million (2020: EUR (2020: EUR 1.7 billion)* -11.7 million)* *This outlook is based on the assumption that the global economy and the political environment wil
Slide 20: Strategy to recover and grow
Strategy to recover and grow MAIN GOALS • Strengthen and grow in the regions • Review and enhance the product portfolio • Broaden our customer base • Sustainability for our future
Slide 21: Sustainability for our future
Sustainability for our future Corporate Governance - Code of conduct for all employees Innovative and sustainable product solutions Environment - Green Company Supply Chain - Responsible Supplier Management Social & Community 12.08.2021 GRAMMER AG - First Half Year 21 © GRAMMER AG
Slide 22: Sustainability for our future
Sustainability for our future We aim to achieve the 1.5-degree target of the Paris climate agreement with a CO2 emissions reduction of at least 50% by 2030. Exercise corporate due diligence for fair Measures for 2021 working conditions and human rights. • Use of renewable energies Diversity & equal
Slide 23: Interior innovations for premium automobiles
Interior innovations for premium automobiles Automotive focus areas: • Acquisition of new customers globally • Expansion of local presence in China • Clear positioning as innovative development partner for the OEMs • Showcasing 3D-Glass, sliding console technology and sustainable product solutions
Slide 24: Global market leader in commercial vehicle seats
Global market leader in commercial vehicle seats Our CV seats’ success factors: • Modularity • Ergonomics and Comfort • Quality and global Service
Slide 25: Q&A Session
Q&A Session NG GRAMMER
Slide 26: Legal disclaimer
GRAMMER Group 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 purpose
Slide 27: Thank you for your attention
Thank you for your attention. We deliver what matters. Contact Investor Relations Tanja Bücherl Phone: +49 9621 66 - 2113 E-mail: tanja.buecherl@grammer.com
Slide 28: Annexes
% GRAMMER
Slide 29: Key figures and Financial Calendar 2021
Key figures and Financial Calendar 2021
Slide 30: Key figures by region and quarter
Revenue Group operating EBIT Employees by region 1 Revenue by segment 2 Wert Wert 972.5 Average YTD 32.4 EUR million AMERICAS: AMERICAS: EUR million EUR million 4,700 247.2 APAC: APAC: EBIT margin Capital expenditure 1,336 206.5 2.9% 30.7 EUR million Wert 14,143 Wert 972.5 Operating EBIT margin 3.3%
Slide 31: Key figures
Key figures [IFRS, in € million] Q2 2021 Q2 2020 01-06 2021 01-06 2020 Group Revenue 468.8 280.9 972.5 735.8 EBITDA 25.8 -29.9 69.0 -10.4 EBITDA Margin in % 5.5 -10.6 7.1 -1.4 EBIT 5.2 -50.9 27.8 -53.0 EBIT Margin in % 1.1 -18.1 2.9 -7.2 Operating EBIT 11.4 -46.1 32.4 -45.7 Operating EBIT Margin in
Slide 32: Financial Calendar 2021
Financial Calendar 2021 12.08.2021 GRAMMER AG - First Half Year 32 © GRAMMER AG