Grammer Ag · XETR:GMM
Grammer — Q1 2022 Earnings Presentation
41 slides from Grammer's earnings presentation, Apr 28, 2022
Slide 1: Financial Results Q1 2022
GRAMMER SOLUTIONS FOR A WORLD ON THE MOVE Financial Results Q1 2022 Ursensollen, April 28th, 2022
Slide 2: GRAMMER Group's Q1 at a glance
GRAMMER Group’s Q1 at a glance KPIs Q1 2021 Q1 2022 • 2.2% growth to EUR 515.0 million in Group revenues thanks to Group revenue [in EUR million] a positive development in the Commercial Vehicles division (+13.9%) whereas revenue in the Automotive division declined by 3.6% 503.7 515.0 EBIT [in EUR m
Slide 3: Revenue in Q1 2022 reflects weak global market development
GRAMMER Group GRAMMER’s revenue in Q1 2022 reflects weak global market development AMERICAS EMEA APAC [in %] [in %] [in %] (46.0%) 59.4% (2.5%) (18.2%) 10.5% 12.8% 4.8% 0.2% -3.5% -3.8% -11.1% -10.9% -15.0% (-12.1%) (-19.3%) -18.2% (-22.8%) -38.3% (FX-adjusted) (FX-adjusted) (FX-adjusted) (FX-adjust
Slide 4: Revenue development by region (Q1 2022)
Revenue development by region (Q1 2022) Regional differences: AMERICAS with revenue growth, EMEA and APAC with declines 29% 17% 25% 20% • AMERICAS with revenue growth in both divisions after weak prior-year 54% quarter AMERICAS EMEA APAC [in EUR million] [in EUR million] [in EUR million] • Contrary
Slide 5: First quarter 2022 of APAC at a glance
First quarter 2022 of APAC at a glance Significant drop in APAC due to weak market development in China • Significant revenue fall of -13.7% to EUR 89.1 million • Automotive division with decrease of 10.9% caused by reduced call-offs from some customers due to COVID-19 lockdowns in Shanghai and Chan
Slide 6: Q1 2022: Revenue / EBIT / operating EBIT in APAC
Q1 2022: Revenue / EBIT / operating EBIT in APAC REVENUE EBIT OPERATING EBIT [in EUR million] [in EUR million and %] [in EUR million and %] Margin 15.1% 7.1% 15.1% 7.4% • FX-adjusted revenue at EUR 81.9 -13.7% million, -20.6%; weakest quarter 103.2 since beginning of 2021 39.0 89.1 • FX adjusted rev
Slide 7: First quarter 2022 of EMEA at a glance
First quarter 2022 of EMEA at a glance Contrasting developments in the Automotive and Commercial Vehicles divisions • Revenue of EUR 289.7 million (-0.7%) on PY level with significant swing between divisions • Commercial Vehicles business increases by 12.8% resulting in a share of 49.5% in total rev
Slide 8: Q1 2022: Revenue / EBIT / operating EBIT in EMEA
Q1 2022: Revenue / EBIT / operating EBIT in EMEA REVENUE EBIT OPERATING EBIT [in EUR million] [in EUR million and %] [in EUR million and %] • FX adjusted revenue at EUR 294.9 Margin 7.0% 4.2% 6.4% 4.2% million, +1.1% -0.7% 291.7 289.7 • FX adjusted revenue in divisions: • Automotive: -12.1% 127.1 14
Slide 9: First quarter 2022 of AMERICAS at a glance
First quarter 2022 of AMERICAS at a glance Full focus on stabilization and turn-around activities in the region • Strong revenue increase to EUR 154.1 million (+17.5%) • Recovery of Automotive revenues by 10.5% since Q1 2021 was impacted by extended customer shutdown weeks and very volatile call-off
Slide 10: Q1 2022: Revenue / EBIT / operating EBIT in AMERICAS
Q1 2022: Revenue / EBIT / operating EBIT in AMERICAS REVENUE EBIT OPERATING EBIT [in EUR million] [in EUR million and %] [in EUR million and %] • FX adjusted revenue at EUR 142.6 Margin -6.6% -10.6% -6.5% -11.0% million, +8.7% +17.5% • FX adjusted revenue in divisions: 154.1 • Automotive: +2.5% 131.
Slide 11: Revenue development by division (Q1 2022)
Revenue development by division (Q1 2022) AUTOMOTIVE COMMERCIAL VEHICLES SHARE IN GROUP REVENUE [in € million] [in € million] Automotive 63% 67% -3.6% Q1 2021 336.2 324.2 +13.9% 33% 37% 190.8 Commercial 167.5 Vehicles Q1 2022 Q1 Q1 Q1 Q1 2021 2022 2021 2022 April 28, 2022 Financial Results Q1 2022 1
Slide 12: Group Revenue / EBIT / operating EBIT GRAMMER (Q1 2022)
Group Revenue / EBIT / operating EBIT GRAMMER (Q1 2022) REVENUE EBIT OPERATING EBIT [in EUR million] [in EUR million and %] [in EUR million and %] • FX adjusted revenue at EUR 500.7 +2.2% Margin 4.5% -0.2% 4.2% -0.5% million, -0.6% 503.7 515.0 190.8 • EBIT burdened by increasing 167.5 material, logi
Slide 13: Changes in the earnings situation
Changes in the earnings situation Profitability is heavily burdened by inflation in AMERICAS and EMEA FX-adjusted revenue 0.6% below previous year; Commercial Vehicles cannot compensate the decline in Automotive EUR 21.0 million EUR -2.5 million Massive inflation and underutilization due to the shor
Slide 14: Employee development by region (Q1 2022)
Employee development by region (Q1 2022) EMPLOYEES [Average;without temporary workers] EMEA Different developments in Q1 2022: • AMERICAS +0.4% 7,348 Stable development despite high -1.4% 7,690 fluctuation 14,204 14,009 • EMEA -4.4% Q1 2021 Solid transformation following 1,310 the volume increase in
Slide 15: Capital expenditure (Q1 2022)
Capital expenditure (Q1 2022) CAPITAL BY REGION* EXPENDITURE [in %] [in EUR million] APAC AMERICAS 12% 26% 33% +58.9% 31% Q1 2021 14.3 13.6 57% 9.0 41% EMEA 8.0 Q1 2022 *CS Q1 2021: EUR 0.4 million *CS Q1 2022: EUR 3.1 million • Planned increase by 58.9% to EUR 14.3 million; main investments are new
Slide 16: 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 23.3% 23.4% • Free cashflow with EUR -12 million, at prior year’s level, 436.8 despite further increase of supply 420.2 chain challenges 345.6 355.8 • Net debt i
Slide 17: 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 %] 269 252 • The increase in working capital was mainly due to the rise in trade accounts receivables and 123 inventories, especially in EMEA 122 • Leverage has increased 5.5x significantly
Slide 18: OUTLOOK
OUTLOOK Ursensollen, April 28th, 2022
Slide 19: Outlook 2022 confirmed: Revenue and earnings growth
Outlook 2022 confirmed: Revenue and earnings growth Guidance 2022 Risks arising from Growth of revenue to around EUR 2.0 billion • the war in Ukraine and ongoing corona (2021: EUR 1.9 billion) lockdowns in China as well as Operating EBIT between EUR 35 and 40 million • the inability of passing on al
Slide 20: GRAMMER ROADMAP 2025
GRAMMER ROADMAP 2025 Ursensollen, April 28th, 2022 Internal
Slide 21: Where we stand today
Where we stand today Customer Market Competition Increased need for innovation, sustainability The automotive sector has changed Increasing competitive pressure in all product and lower prices. fundamentally since 2020 and the future segments and regions, with new players in Success factor #1 contin
Slide 22: Transforming complexity in order to win in a disruptive environment
Transforming complexity in order to win in a disruptive environment In the short term, we have to… 1. enforce passing on all of our cost increases (materials, energy, transport, wages and stoppage costs) to the customers 2. achieve lasting turnaround in AMERICAS - today’s second-largest market - by
Slide 23: Accelerating our two-legs strategy (Automotive + Commercial Vehicles)
Accelerating our two-legs strategy (Automotive + Commercial Vehicles) Target markets • Automotive: Regain former strength on the European market • Commercial Vehicles: Secure European market leader position and enhance profitability • Leveraging major potential with local OEMs in CHINA and AMERICAS
Slide 24: Sustainability
Where we want to go Boosting innovation and Profitable growth digitalization secures the Group‘s future to secure our competitiveness Becoming the Sustainability is our contribution to a liveable future 2025 Making employer of choice in our industry customer excellence our performance yardstick Apri
Slide 25: Our results determine our success
Our results determine our success Midterm targets for Sustainability 25% 2025 Reduction of CO2-Emissions: Profitable growth Objectives & Key Results Revenue: Operating EBIT NetNet profit Innovation: Product quality: profit €2.5bn margin: > 5% ratio: > 4% ratio: RDP > 5 zero-PPM Revenue split: Delive
Slide 26: We aim to achieve to grow…
We aim to achieve to grow… Revenue: €2.5bn • EMEA: Regain the old strength in AMERICAS EMEA APAC the Automotive and secure the [in EUR million and %] [in EUR million and %] [in EUR million and %] market position in the Commercial Vehicles business 1,100 • APAC: Platform for growth in both 913 Divisi
Slide 27: …product segments revenue…
…product segments revenue… Automotive [in EUR million] Automotive Commercial Vehicles [in EUR million] + 100 bps + 7% (+3%) in comparison to IHS Net profit CAGR GRAMMER (LMC) ratio: 1,500 1,000 1,235 668 April 28, 2022 Financial Results Q1 2022 27 © GRAMMER AG
Slide 28: …profitably in all regions
…profitably in all regions Operating EBIT Margin: > 5% • Profitable growth secures the Group‘s future • EMEA: Further growth in AMERICAS EMEA APAC Commercial Vehicles business is the 12% key to success; Footprint > 10% optimization measures show effect ~ 7% > 3% • APAC: Stable double-digit 5% profit
Slide 29: What we are tackling now
What we are tackling now Focus areas 2022 SALES CAGR 2022-2025 | 7.72% 2025 Profitable Customer Innovation & Employer 1.8-2% growth focus Sustainability digitalization of choice > 5% OPERATING EBIT OPERATING EBIT MARGIN MARGIN (target) • Global Footprint • Quality initiative • Green company • Innova
Slide 30: How we reorganize… Global footprint (1/2)
How we reorganize… Global footprint (1/2) Raise sales per plant and lessen process complexity: • Reduce number of plants in EMEA and AMERICAS • Focus on core technologies Increase plant utilization: • Reduction of product complexity in the plants • Installation of competence centers in the regions f
Slide 31: …and develop our plant structure for profitable growth
…and develop our plant structure for profitable growth Global footprint (2/2) AMERICAS EMEA China 25 80 25 80 25 80 69 63 59 57 20 60 20 60 20 60 42 45 15 15 15 35 40 40 40 30 23 10 10 18 10 16 5 16 15 20 5 20 5 12 20 9 6 0 0 0 0 0 5,5% 0 2020 2021 2025 2020 2021 2025 2020 2021 2025 1,4% Plants Sale
Slide 32: P2P Path2Profitability AMERICAS
Secure financial stability and return to profitability in 2024 new regional management in AMERICAS with restructuring experience Customer Operational Manufacturing compensations performance footprint and capacities optimization 2022 2025 2022 2025 2022 2025 EUR 11 Mio. EUR 22 Mio. EUR 12 Mio. EUR 16
Slide 33: We continue to work on our sustainable and profitable future
We continue to work on our sustainable and profitable future - despite currently rough grounds © GRAMMER AG
Slide 34: Next events
Next events August 11, 2022 October 27, 2022 H1 2022 Earnings 9M 2022 Earnings May 18, 2022 Annual General Meeting May June July August September October November 2022 April 28, 2022 Financial Results Q1 2022 34 © GRAMMER AG
Slide 35: Q&A Session
Q&A Session NG April 28, 2022 GRAMMER
Slide 36: 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 37: 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 38: Annexes
\Z GRAMMER Annexes
Slide 39: Key figures Q1 2022
Key figures Q1 2022 April 28, 2022
Slide 40: Key figures Q1 2022 overview
Revenue Group operating EBIT Employees by region 1 Revenue by segment 2 Wert Wert 515.0 Average for the year -2.5 EUR million AMERICAS: AMERICAS: EUR million EUR million 4,778 154.1 APAC: APAC: EBIT margin Capital expenditure 1,477 89.1 -0.2% 14.3 EUR million Wert 14.009 Wert 532.9 Operating EBIT ma
Slide 41: Key figures
Key figures [IFRS, in € million] Q1 2022 Q1 2021 2021 Group Revenue 515.0 503.7 1,903.0 EBIT -1.2 22.6 18.9 EBIT Margin in % -0.2 4.5 1.0 Operating EBIT -2.5 21.0 22.8 Operating EBIT Margin in % -0.5 4.2 1.2 Net Profit -8.0 13.3 0.6 EPS in € -0.53 0.88 0.08 Total Assets 1,518.9 1,427.0 1,483.4 Equit