Grammer Ag · XETR:GMM
Grammer — 9M 2021 Earnings Presentation
34 slides from Grammer's earnings presentation, Oct 27, 2021
Slide 1: ONE GRAMMER: Financial Results 9M 2021
ONE GRAMMER COLLABORATING FOR A SUSTAINABLE FUTURE Financial Results 9M 2021 Ursensollen, October 27th, 2021
Slide 2: First nine months of GRAMMER Group at a glance
First nine months of GRAMMER Group at a glance • Positive revenue development with a significant increase of Commercial Vehicles business (+34.9%) in all regions • Very volatile customer call-offs and extended down-weeks due to semiconductor shortages leading to underutilized production capacities &
Slide 3: GRAMMER Automotive impacted by semiconductor shortages
GRAMMER Automotive impacted by semiconductor shortages Global market development light vehicles AMERICAS EMEA APAC [in %] [in %] [in %] 165.2 149.0 81.4 83.5 73.0 35.0 12.0 1.3 20.3 3.3 2.4 5.9 18.7 19.6 15.1 10.6 21.8 20.4 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 2021 2021 2021 2021 2021 2021 2021 2021 2021 Mark
Slide 4: GRAMMER CV continues to outperform market in APAC
GRAMMER CV continues to outperform market in APAC Global market development commercial vehicles AMERICAS EMEA APAC [in %] [in %] [in %] 117.5 108.6 92.9 66.1 68.6 48.3 52.9 16.0 10.3 24.4 26.0 1.0 0.6 3.4 17.4 0.5 8.1 35.9 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 2021 2021 2021 2021 2021 2021 2021 2021 2021 Marke
Slide 5: 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 €] • Significant increase of revenues 26% 20% in APAC (even compared to 2019) 54% • EMEA and AMERICAS with a recovery in revenues vs. 2020 +17.1% • Com
Slide 6: 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 31% 9M 69% 2020 +9.5% 908.5 829.6 +34.9% Commercial Vehicles 496.2 35% 9M 367.
Slide 7: GROUP: Revenue, EBIT and operating EBIT
GROUP: Revenue, EBIT and operating EBIT Positive business development continues despite very challenging environment REVENUE EBIT OPERATING EBIT [in m €] [in m € and %] [in m € and %] -3.9% 1.9% -1.9% 2.2% • Group revenue up 17.3% or EUR 207.2 million 1,404.7 • Business development impacted 1,197.5
Slide 8: First nine months of AMERICAS at a glance
First nine months of AMERICAS at a glance Full focus on stabilization and turn-around activities in the region • Revenue increase of EUR 43.6 million (+13.1%) • Situation of extended customer shutdown weeks and very volatile call-offs in North America worsening in Q3 • Increased material and logisti
Slide 9: AMERICAS: Revenue, EBIT and operating EBIT
AMERICAS: Revenue, EBIT and operating EBIT Business development strongly affected by global and local market factors REVENUE EBIT OPERATING EBIT [in m €] [in m € and %] [in m € and %] -7.7% -10.7% -6.6% -10.6% • Revenue decline of -12.2% in Q3 (Division Automotive -20.4%) vs 377.0 2020 due to extend
Slide 10: First nine months of EMEA at a glance
First nine months of EMEA at a glance Optimization of capacity utilization through region-wide consolidation • Revenue recovery of around EUR 116.6 million (+17.1%) • Significant increase of Commercial Vehicles business (+29.3%) • Volatile customer call-offs and down-weeks due to semiconductor short
Slide 11: EMEA: Revenue, EBIT and operating EBIT
EMEA: Revenue, EBIT and operating EBIT Revenue recovery, but already Q2 influenced by semiconductor shortages in Automotive REVENUE EBIT OPERATING EBIT [in m €] [in m € and %] [in m € and %] -4.9% 4.7% -2.5% 5.2% • Single-digit revenue decline of -2.6% in Q3 vs. 2020 • Q3 Automotive decline (-19.6%)
Slide 12: First nine months of APAC at a glance
First nine months of APAC at a glance Strong development in China as targeted growth area in the APAC region • Significant revenue increase of EUR 59.8 million (+25.8%) with a very strong performance in China • Commercial Vehicles division grows by almost 45%, but weaker performance in Q3 due to new
Slide 13: APAC: Revenue, EBIT and operating EBIT
APAC: Revenue, EBIT and operating EBIT China continues positive trend with first headwinds in the third quarter REVENUE EBIT OPERATING EBIT [in m €] [in m € and %] [in m € and %] 8.3% 13.6% 8.5% 13.6% • APAC revenue in Q3 with a single-digit decline of -2.7% 291.3 compared to 2020 231.5 • Commercial
Slide 14: Global headcount development
Global headcount development Socially responsible measures implemented in 2020 support the positive earnings trend EMPLOYEES [9-months average, APAC; without temps] 1,299 Different developments in the AMERICAS; regions: 4,607 • AMERICAS +1.5% 9M Headcount increase is driven by -1.6% 2020 the build-u
Slide 15: Global investment development
Global investment development Focus on regional and project-specific investment continues INVESTMENTS [in m €] APAC; 4.8 • Level of investments in 9M 2021 AMERICAS; in line with the status of projects 10.6 in the Automotive division 9M 2020 +24.6% • PLM and new product developments ongoing as EMEA*;
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 €] 19.6% 23.2% • Negative Free Cash Flow mainly results from increase of working 383.9 capital and prefinancing of 360.7 345.1 customer projects 275.0 • S
Slide 17: Outlook 2021
Outlook 2021 NG 27.10.2021 GRAMMER
Slide 18: Outlook 2021: Revenue and earnings growth
Outlook 2021: Revenue and earnings growth Guidance New Guidance March 31, 2021 October 6, 2021 Growth of revenue to around Growth of revenue to around EUR 1.8 billion EUR 1.8 billion (2020: EUR 1.7 billion) (2020: EUR 1.7 billion) Significant increase of Operating EBIT between EUR 17 operating EBIT
Slide 19: Changes in the earnings guidance for 2021
Changes in the earnings guidance for 2021 Profitability is significantly influenced by volatile automotive market and material cost development OPERATING EBIT BRIDGE 2020 TO 2021 EARNINGS GUIDANCE Robust business model due to the two divisions and their respective markets -43 65 EUR Mio. EUR million
Slide 20: Measures for 2021 going forward
Measures for 2021 going forward • P2P turnaround program in the Americas • Footprint optimization measures are being reviewed and adjusted if necessary • Enhanced customer claim management re: material impact and underutilization • Strategic (re-) orientation of GRAMMER
Slide 21: Strategy to recover and grow
Strategy to recover and grow We deliver what matters!
Slide 22: GRAMMER invests in CV seat production 4.0
GRAMMER invests in CV seat production 4.0 • Creating a blueprint for ‘Seat production 4.0’ • Turning GRAMMER into the world’s most advanced manufacturer of commercial vehicle seats • Establishing a lead plant, from which all GRAMMER locations worldwide will benefit • Supporting our sustainability go
Slide 23: GRAMMER goes green
GRAMMER goes green GRAMMER nomination tree: Tree by tree on the way to more sustainability • Since September 1, 2021, GRAMMER suppliers have been planting a tree for every new order they receive • Worldwide “GRAMMER Forest" makes active contribution to CO2 reduction • One of many steps on GRAMMER’s
Slide 24: GRAMMER opens new Automotive production site in Shenyang
GRAMMER opens new Automotive production site in Shenyang • GRAMMER pursuing its growth strategy in China with an expanded footprint • State-of-the-art production of high-quality interior components started in July 2021 • Further expansion stages already being planned for the new site in Shenyang
Slide 25: GRAMMER's new CINEMA SEAT: more living space in truck cab
GRAMMERs new CINEMA SEAT: more living space in truck cab • GRAMMER innovation enhances comfort and improves safety • New driver/passenger seat combination for medium and heavy-duty trucks • Cinema Seat: seat surface folds up, backrest for use as storage area, swivel adapter
Slide 26: UBILITY ONE from GRAMMER: Bus and Train seats rethought
UBILITY ONE from GRAMMER: Bus and Train seats rethought Can a seating system ... • have a positive climate impact? • relieve stress? • lower fuel costs? • enhance urban mobility? One can. UBILITY ONE by GRAMMER.
Slide 27: Sustainability meets economy.
Sustainability meets economy. Ultralight design for lower weight, reducing fuel consumption and CO2 emissions Sustainable: made of recycled and recyclable materials Intelligent design: extremely robust and durable, easy to maintain 27.10.2021 First Nine Months 2021 27 © GRAMMER AG
Slide 28: Q&A Session
Q&A Session NG 27.10.2021 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 NG 27.10.2021 GRAMMER
Slide 33: Key figures 2021 overview
Revenue Group operating EBIT Employees by region 1 Revenue by segment 2 Wert Wert 1,404.7 Average YTD 30.7 EUR million AMERICAS: AMERICAS: EUR million EUR million 4,675 377.0 APAC: APAC: EBIT margin Capital expenditure 1,354 291.3 1.9% 60.8 EUR million Wert 14,031 Wert 1,404.7 Operating EBIT margin
Slide 34: Key figures
Key figures [IFRS, in € million] Q3 2021 Q3 2020 01-09 2021 01-09 2020 Group Revenue 432.2 461.7 1,404.7 1,197.5 EBITDA 19.7 27.6 88.7 17.2 EBITDA Margin in % 4.6 6.0 6.3 1.4 EBIT -1.4 5.8 26.4 -47.2 EBIT Margin in % -0.3 1.3 1.9 -3.9 Operating EBIT -1.7 22.4 30.7 -23.3 Operating EBIT Margin in % -0