Grammer AG · XETR:GMM
Grammer — Non-Deal Roadshow (September 2006)
33 slides from Grammer's roadshow presentation, September 2006
Slide 1: Investor Presentation GRAMMER AG
GRAMM ER AG: SHARE PRICE DEVELOPM ENT 35,0 30,0 Investor Presentation 25,0 20,0 GRAMMER AG 15,0 10,0 September 2006 5,0 0,0 Aug 01 Dez 01 Apr 02 Aug 02 Dez 02 Apr 03 Aug 03 Dez 03 Apr 04 Aug 04 Dez 04 Apr 05 Aug 05 Dez 05 Apr 06 Aug 06
Slide 2: Agenda
1. BUSINESS MODEL 2. Q1-2 RESULTS AND OUTLOOK 2006 3. APPENDIX: Q1-2 2006 - KEY FINANCIAL FIGURES 4. DISCLAIMER Copyright GRAMMER AG September 2006 Page 2
Slide 3: Business model - Strategic business fields
Grammer: Business model - Strategic business fields Board Auto- Auto- responsi- Seating Seating Systems Systems bility motive motive Strategic Auto- Auto- business Off-road Off-road Truck Truck Bus Bus Rail Rail fields motive motive Agricultural Construction Forklift Branches / machinery machinery m
Slide 4: Business model - Annual development
Grammer: Business model – Annual development Revenue and EBIT margin development Process optimization IPO Reorganization and growth CAGR 5% 2006 859 CAGR 825 32% 779 786 Revenue: 721 671 564 EBIT margin: 7,8% 7,9% 411 289 243 5,9% 5,5% 4,7% 4,9% 4,0% 3,9% 3,8% (0.4)% 1996 1997 1998 1999 2000 2001 20
Slide 5: Business model
Grammer: Business model To innovate in order to create quality for people To offer a high level of comfort, convenience and safety to people who often travel in vehicles To constantly innovate and create interior products that meet expectations with regard to comfort, convenience and safety Technolo
Slide 6: Key products Automotive
Grammer: Business model - Key products Automotive High value-added interior products for premium OEM’s Head-/armrests for BMW 3, 5 and 7 series, all VW models, Mercedes C- and E-Class, Jaguar consoles Centre S and XS, Audi A3, A4, A6, A8 Headrests and armrests are existing products available for exp
Slide 7: Business model - Key strengths Automotive
Grammer: Business model - Key strengths Automotive Automotive - Key strengths: Quality and technology leader (e.g. crash-active headrests, armrests) Production sites established in low cost countries Detailed process knowledge and craftsmanship in: cutting and sewing foaming and surfaces assembling
Slide 8: Business model - Market Automotive
Grammer: Business model - Market Automotive Automotive - Customers: Automotive - Competitors: Headrests Tier1*, Sitech, Treves Armrests Fehrer, ClerPrem, Treves, Dräxlmaier Center consoles Tier1*, Peguform, Wexler, Dräxlmaier Seat covers Prevent, Eybl, Tier1* Door components Dräxlmaier, Seeber, Eism
Slide 9: Business model - Global network Automotive
Grammer: Business model - Global network Automotive Germany Amberg Russia USA Langenfeld Kaliningrad Greenville Wackersdorf Detroit Emden Zwickau Poland Bielsko- Spain Biala China Olérdola Tianjin Changchun Bulgaria Slovenia Shanghai Mexico Trudovetz (planned) Slovenj Tetla Gradec Queretaro Czech Re
Slide 10: Key products Driver seats
Grammer: Business model - Key products Driver seats High-end and innovative seating products for off-road vehicles and trucks Modular seat construction allows quick Agricultural Machinery MAXIMO Evolution adaptation to different vehicles Technical solutions, like multifunctional armrests, air-condit
Slide 11: Key products Passenger seats
Grammer: Business model - Key products Passenger seats Niche business with renewed products pipeline for railway and bus Sole supplier for Deutsche Bahn ICE trains and Intercity-Platform Double Deck trains Comfort version of ICE ergomechanics module as a unique selling proposition in concept phase M
Slide 12: Business model - Key strengths Seating
Grammer: Business model - Key strengths Seating Seating - Key strengths: Market leader and trend-setter in Offroad segment The only global player for driver seats (sales and production network) Expert knowledge in seating ergonomics Substantial barriers for competitors in the driver seat market Lead
Slide 13: Business model - Market Seating Systems
Grammer: Business model - Market Seating Systems Seating - Customers: Seating - Competitors: Offroad seats Sears (US), Milsco (US), KAB (UK) Truck seats Isringhausen (GER), National Seating (US) Railway passenger Compin (FR), Kiel (GER) seats Bus passenger Fainsa (SPA), Vogel (GER), Kiel (GER), OEM
Slide 14: Business model - Global network Seating
Grammer: Business model - Global network Seating USA Germany Hudson Amberg Wörth Bulgaria Trudovetz China Tianjin Turkey Italy Mexico Bursa Monsano Monterry Brasil Atibaia The Global network is focused on key markets (e.g. USA, South America, China) Copyright GRAMMER AG September 2006 Page 14
Slide 15: Agenda
1. BUSINESS MODEL 2. Q1-2 RESULTS AND OUTLOOK 2006 3. APPENDIX: Q1-2 2006 - KEY FINANCIAL FIGURES 4. DISCLAIMER Copyright GRAMMER AG September 2006 Page 15
Slide 16: Q1-2 Results 2006: Automotive
Q1-2 Results 2006: Automotive Key facts - Automotive Q2 Q1-2 Positive general market trend and €151m €290m established serial production led €276m €146m to increased revenue in Q1-2 Revenue in Q2 2006 affected by fewer working days compared to 10% 10% 2005 (Easter holidays) Consistent production pro
Slide 17: Outlook 2006: Automotive
Outlook 2006: Automotive Worldwide automotive market expected to be slightly positive Market Planned launch of interior parts for 20 new vehicles, e.g. BMW X5 and new headrest generation for VW Continued client-related and raw materials-related price pressure Concentrate cutting and sewing activitie
Slide 18: Q1-2 Results 2006: Driver seats
Q1-2 Results 2006: Driver seats Key facts - Driver seats Q2 Q1-2 Persistent strong demand in truck market and robust off-road €72m €140m €140m €70m market kept revenue in Q1-2 at 15% 15% last year’s level Changes in product-mix and negative currency effects 10% 10% impacted revenue and earnings 9.8%
Slide 19: Outlook 2006: Driver seats
Outlook 2006: Driver seats Persistent strong demand in truck market Market Robust off-road market, especially in construction segment but unstable market outlook in agriculture segment Strengthen our off-road position in NAFTA and Asia (OEM and aftermarket business) Cost reduction by VAREMO (reducti
Slide 20: Q1-2 Results 2006: Passenger seats
Q1-2 Results 2006: Passenger seats Key facts - Passenger seats Q2 Q1-2 Investment in new products and 10% 10% reworked customer strategy €11m €21m significantly improved order €10m situation €18m 5% 5% Completion of projects postponed from 2005 in rail sector led to additional growth in revenue 0% 0
Slide 21: Outlook 2006: Passenger seats
Outlook 2006: Passenger seats Significant revenue increase in rail business Market Project-oriented product development opens additional business opportunities Positive response from the leading European bus fair with promising opportunities for the sales team to place our new product programme Oper
Slide 22: Q1-2 Results 2006: Grammer Group
Q1-2 Results 2006: Grammer Group Grammer Group: Grammer Group performed well in Q1-2 2006 with revenue growth of 5% Various market developments enabled Grammer to benefit from its diversified market positioning: Strong demand in truck industry Good model policies enabled us to benefit from increased
Slide 23: Outlook 2006: Grammer Group - Purchasing
Outlook 2006: Grammer Group - Purchasing Distribution of material costs Targets in 2006 Material costs: Total 500 € million Planned cost savings with several projects like 16% 5% Influenceable material substitution 48% Non-influenceable volume grouping 31% Freight local content extension Other are i
Slide 24: Outlook 2006: Grammer Group - Summary
Outlook 2006: Grammer Group - Summary Grammer Group Revenue at 2005 level Better EBIT margin will result in ROCE above WACC Earnings could be influenced by currency and raw material price effects Cost saving programs implemented to improve EBIT margin Comfortably positive free cash flow Planned to a
Slide 25: Agenda
1. BUSINESS MODEL 2. Q1-2 RESULTS AND OUTLOOK 2006 3. APPENDIX: Q1-2 2006 - KEY FINANCIAL FIGURES 4. DISCLAIMER Copyright GRAMMER AG September 2006 Page 25
Slide 26: Appendix: Key Financial figures - operating
Appendix: Q1-2 2006 – Key Financial figures Grammer Group: Key financial figures - operating Q2 Q1-2 % of % of % of % of in € '000 2005 revenue 2006 revenue 2005 revenue 2006 revenue Revenue 230,141 225,494 427,376 448,092 EBITDA 17,019 7.4% 17,877 7.9% 31,997 7.5% 36,141 8.1% EBIT 10,973 4.8% 12,03
Slide 27: Appendix: Key Financial figures - balance sheet
Appendix: Q1-2 2006 – Key Financial figures Grammer Group: Key financial figures – balance sheet in € '000 Q1-2 2005 Q1-2 2006 %-change Assets Non-current assets 185,688 184,081 -1% Current assets 263,365 270,139 3% Liabilities Equity 181,433 171,392 -6% Non-current liabilities 115,524 72,733 -37% C
Slide 28: Appendix: Income statement
Appendix: Q1-2 2006 – Key Financial figures Grammer Group: Income statement in € '000 Q2 2005 Q2 2006 %-change Revenue 230,141 225,494 -2% Cost of sales 192,916 187,325 -3% Gross profit 37,225 38,169 3% Selling expenses 10,379 10,160 -2% Q2 Administrative expenses 17,625 17,643 0% Other operating in
Slide 29: Appendix: Cash flow statement
Appendix: Q1-2 2006 – Key Financial figures Grammer Group: Cash flow statement change in € '000 Q2 2005 Q2 2006 in € '000 Net income for the year 10,529 12,897 2,368 Amortization, Depreciation 11,720 11,631 -89 Changes provisions, working capital and other changes -23,612 -29,527 -5,915 Operating Ca
Slide 30: Agenda
1. BUSINESS MODEL 2. Q1-2 RESULTS AND OUTLOOK 2006 3. APPENDIX: Q1-2 2006 - KEY FINANCIAL FIGURES 4. DISCLAIMER Copyright GRAMMER AG September 2006 Page 30
Slide 31: Disclaimer
Disclaimer This presentation has been prepared by Grammer AG solely for investors. 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 issued by Grammer AG and neither shall any part of it f
Slide 32: CV Alois Ponnath
CV Alois Ponnath CFO of Grammer AG since 2000 Longstanding experience at Grammer - since 1991 Managed the IPO in 1996 and the restructuring process from 1999 -2003 Spokesman of the Board of Management since 2006 Alois Ponnath Previously worked as key Member of the Board account manager at Hypo- CFO
Slide 33: Contacts
Contacts Grammer AG PO Box 14 54 92204 Amberg Germany www.grammer.com Tel. +49 (0)9621-66-2200 Fax: +49 (0)9621-66-32771 Email: investor-relations@grammer.com Copyright GRAMMER AG September 2006 Page 33