Grammer Ag · XETR:GMM
Grammer — FY2021 Earnings Presentation
34 slides from Grammer's earnings presentation, Mar 30, 2022
Slide 1: Financial Results FY 2021
GRAMMER SOLUTIONS FOR A WORLD ON THE MOVE Financial Results FY 2021 Ursensollen, March 30th, 2022
Slide 2: GRAMMER Group's financial year 2021 at a glance
GRAMMER Group’s financial year 2021 at a glance KPIs 2020 2021 • 11.2% growth in Group revenues with a significant increase Group revenue [in EUR million] of Commercial Vehicles business (+31%) across all regions • Operating EBIT amounted to EUR 22.8 million, corresponding 1,710.7 1,903.0 to an oper
Slide 3: Global market development compared to GRAMMER's performance (FY 2021)
GRAMMER Group Global market development compared to GRAMMER’s performance (FY 2021) AMERICAS EMEA APAC [in %] [in %] [in %] 44.6% 33.5% 24.3% 25.6% 15.3% 13.7% 6.4% 2.5% 2.9% -0.9% -2.4% -9.1% Market GRAMMER Market GRAMMER Market GRAMMER Market GRAMMER Market GRAMMER Market GRAMMER Automotive Commer
Slide 4: Revenue development by region (FY 2021)
Revenue development by region (FY 2021) Improvements in all markets and a new sales record in APAC 26% 21% 25% 20% • Revenue increased in all regions 53% • Division Commercial Vehicles with AMERICAS EMEA APAC significant growth in revenues in: [in EUR million] [in EUR million] [in EUR million] • AME
Slide 5: FY 2021 of APAC at a glance
FY 2021 of APAC at a glance Strong development in China as targeted growth area in the APAC region • Significant revenue increase to EUR 406.3 million (+19.8%) with a very strong performance in China • Automotive division with growth of 13.7% • Grand Opening of Shenyang Plant in September 2021 • Com
Slide 6: FY 2021 Revenue / EBIT / operating EBIT in APAC
FY 2021 Revenue / EBIT / operating EBIT in APAC REVENUE EBIT OPERATING EBIT [in EUR million] [in EUR million and %] [in EUR million and %] Margin 8.7% 13.0% 9.0% 13.0% • Recovery in revenues of 19.8% • Double-digit growth in both divisions +19.8% • Higher EBIT due to recovery in 406.3 52.9 52.8 reve
Slide 7: FY 2021 of EMEA at a glance
FY 2021 of EMEA at a glance Optimization of capacity utilization through region-wide consolidation • Revenue recovery to EUR 1,061.5 million (+9.9%) • Significant increase of Commercial Vehicles business (+25.6%) resulting in a share of 47% in total revenues • Lower customer call-offs and several do
Slide 8: FY 2021 Revenue / EBIT / operating EBIT in EMEA
FY 2021 Revenue / EBIT / operating EBIT in EMEA REVENUE EBIT OPERATING EBIT [in EUR million] [in EUR million and %] [in EUR million and %] +9.9% Margin -0.9% 4.1% -0.7% 4.4% • Recovery in revenues of 9.9% compared to year of COVID-19 1,061.5 outbreak 965.8 47.2 43.3 • EBIT influenced by: • EUR -4.5
Slide 9: FY 2021 of AMERICAS at a glance
FY 2021 of AMERICAS at a glance Full focus on stabilization and turn-around activities in the region • Revenue increase to EUR 517.7 million (+8.6%) • Situation of extended customer shutdown weeks and very volatile call-offs in North America worsening performance in the second half of 2021 • Increas
Slide 10: FY 2021 Revenue / EBIT / operating EBIT in AMERICAS
FY 2021 Revenue / EBIT / operating EBIT in AMERICAS REVENUE EBIT OPERATING EBIT [in EUR million] [in EUR million and %] [in EUR million and %] • Recovery in revenues of 8.6% Margin -7.2% -11.9% -6.3% -11.9% compared to COVID-19 +8.6% burdened previous year • EBIT influenced by: 517.7 476.6 • Plant c
Slide 11: P2P AMERICAS: Return to profitability in 2024 at the latest
P2P AMERICAS: Return to profitability in 2024 at the latest • Path to Profitability (P2P) to secure financial stability and ensure sustainable development • Measures in 2022 will be focusing on • Customer compensations • Operational performance improvement • Utilization of existing capacities throug
Slide 12: Revenue development by division (FY 2021)
Revenue development by division (FY 2021) AUTOMOTIVE COMMERCIAL VEHICLES SHARE IN GROUP REVENUE [in € million] [in € million] Automotive +2.9% 65% 70% 1,234.9 1,200.6 +31.0% FY 2020 668.1 30% 510.1 35% Commercial Vehicles FY 2021 1-12 1-12 1-12 1-12 2020 2021 2020 2021 March 30, 2022 Annual Report 2
Slide 13: Group Revenue / EBIT / operating EBIT GRAMMER (FY 2021)
Group Revenue / EBIT / operating EBIT GRAMMER (FY 2021) REVENUE EBIT OPERATING EBIT [in EUR million] [in EUR million and %] [in EUR million and %] • Recovery in Group revenues of Margin -2.7% 1.0% -0.7% 1.2% 11.2% compared to previous year to more than EUR 1.9 billion +11.2% • EBIT increase due to h
Slide 14: Changes in the earnings guidance for 2021
Changes in the earnings guidance for 2021 Profitability is significantly impacted by volatile automotive market and significant material cost development Operating EBIT guidance as of: March 2021: EUR 65 million October 2021: EUR 17 – 22 million Robust business model due to the two divisions and the
Slide 15: Employee development by region (FY 2021)
Employee development by region (FY 2021) EMPLOYEES [Average;without temporary workers] EMEA Different developments in 2021: • AMERICAS +1.6% 7,522 Headcount increase is driven -1.3% 7,649 by the build-up of a new cut 14,192 14,006 & sew hub in Mexico • EMEA -1.7% FY 2020 Flexibilization of employees
Slide 16: Capital expenditure (FY 2021)
Capital expenditure (FY 2021) CAPITAL BY REGION* BY DIVISION* EXPENDITURE [in EUR million] [in EUR million] [in EUR million] APAC COMMERCIAL AMERICAS 35.7 21.1 VEHICLES 11.0 23.3 +37.0% 16.2 20.9 114.8 FY 2020 FY 2020 84.6 83.8 43,3 36.7 79.7 73.1 AUTOMOTIVE 46.2 EMEA *CS 2020: EUR 19.9 million FY 2
Slide 17: Free cashflow, Net debt, Equity FY on Group level
Free cashflow, Net debt, Equity FY on Group level FREE CASH FLOW NET DEBT EQUITY [in EUR million] [in EUR million] [in EUR million] Margin 22.0% 23.3% • Free cashflow is at EUR -5.6 million – strong 420.2 performance in Q4 with EUR 43.4 million 358.0 345.6 302.2 • Net debt increased to EUR 420.2 mil
Slide 18: Working capital, leverage and gearing FY on Group level
Working capital, leverage and gearing FY on Group level WORKING CAPITAL LEVERAGE GEARING [in EUR million] [in %] 252 8.6x 227 • The increase in working capital was mainly due to the rise in inventories, in particular to secure the supply of materials 4.1x • Leverage has improved 118 122 significantl
Slide 19: Outlook
OUTLOOK Outlook 2022 March 30, 2022
Slide 20: Outlook 2022: Revenue and earnings growth
Outlook 2022: Revenue and earnings growth Guidance 2022 Growth of revenue to around EUR 2.0 billion Mid-term guidance 2025 (2021: EUR 1.9 billion) April 28th, 2022 Operating EBIT between EUR 35 and 40 million (2021: EUR 22.8 million)* *In case that the geopolitical situation, in particular in Easter
Slide 21: Current events and potential effects on GRAMMER
Current events and potential effects on GRAMMER Geopolitical and economic uncertainty caused by the war in Ukraine: • GRAMMER has no plants and no employees in the Ukraine • GRAMMER has employees from the Ukraine working in our ww locations • Their safety and families’ well-being is a key priority f
Slide 22: Long-term outlook: megatrends
Long-term outlook: megatrends GRAMMER makes the lives of many people more comfortable, safer and more sustainable with its wide range of products for cars and commercial vehicles – and is participating in the key megatrends of the future with its solutions.
Slide 23: GRAMMER solutions in response to key megatrends
GRAMMER solutions in response to key megatrends Electrification and Growth in the Digitalization new mobility world population Urbanization Sustainability March 30, 2022 Annual Report 2021 GRAMMER AG 23 © GRAMMER AG
Slide 24: GRAMMER solutions in response to key megatrends
GRAMMER solutions in response to key megatrends RETHINKING MOBILE INTERIORS DESIGN FOR USE FROM THE SMART FACTORY • New Mobility and Electrification promote the importance of car interior and • GRAMMER drives digitalization increase the need for safety, with the most cutting-edge comfort and functio
Slide 25: GRAMMER solutions in response to key megatrends
GRAMMER solutions in response to key megatrends A NEW DIMENSION OF SEATING COMFORT INNOVATIONS FOR URBAN MOBILITY • Ergonomics is a key success factor for demanding working conditions • Urban mobility is facing profound changes • GRAMMER is continuously optimizing • With Ubility One, GRAMMER ergonom
Slide 26: GRAMMER solutions in response to key megatrends
GRAMMER solutions in response to key megatrends BECOMING A GREEN COMPANY WITH SUSTAINABLE PRODUCTS • With its Green Company initiative, GRAMMER is setting ambitious targets for making the global operations more sustainable • One example are the next generation 80% headrests, currently developed, tha
Slide 27: Next events
Next events April 28, 2022 Non-financial statement 2021 Q1 2022 Earnings Mid-term Guidance 2025 August 11, 2022 H1 2022 Earnings May 18, 2022 Annual General Meeting April May June July August September October 2022 March 30, 2022 Annual Report 2021 GRAMMER AG 27 © GRAMMER AG
Slide 28: Q&A Session
( > « Gr — A 4 Q&A Session March 30, 2022 % GRAMMER
Slide 29: 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 30: 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 31: Annexes
% GRAMMER
Slide 32: Key figures 2021
Key figures 2021 March 30, 2022
Slide 33: Key figures 2021
Revenue Group operating EBIT Employees by region 1 Revenue by segment 2 Wert Wert 1,903.0 Average for the year 22.8 EUR million AMERICAS: AMERICAS: EUR million EUR million 4,688 517.7 APAC: APAC: EBIT margin Capital expenditure 1,375 406.3 1.0% 114.7 EUR million Wert 13,585 Wert 1,985.5 Operating EB
Slide 34: Key figures
Key figures [IFRS, in € million] Q4 2021 Q4 2020 2021 2020 Group Revenue 498.3 513.2 1,903.0 1,710.7 EBIT -7.5 1.1 18.9 -46.1 EBIT Margin in % -1.5 0.2 1.0 -2.7 Operating EBIT -7.9 11.6 22.8 -11.7 Operating EBIT Margin in % -1.6 2.3 1.2 -0.7 Net Profit -12.5 -6.2 0.6 -64.7 EPS in € 0.08 -5.10 Total