Grammer Ag · XETR:GMM

Grammer — Q3 2019 Earnings Presentation

20 slides from Grammer's earnings presentation, Nov 12, 2019

  1. Slide 1: ON THE MOVE – Presentation First Nine Months 2019

    ON THE MOVE Presentation First Nine Months 2019 Amberg, November 12th, 2019

  2. Slide 2: Q3/2019 Highlights

    GRAMMER GROUP – Q3/2019 Highlights Summary  Group revenue increased by 14% to € 1.5 billion supported by growth in both segments  Commercial Vehicles Segment increased revenue to € 475 million and Automotive Segment growing to € 1,112 million (mainly due to the TMD acquisition)  EMEA remains larg

  3. Slide 3: Solid development in challenging markets

    GRAMMER GROUP – DEVELOPMENT 01-09 2019 Solid development in challenging markets Revenues EBIT and operating EBIT [in € million] [in € million and % of revenues] +14% EBIT margin Op. EBIT margin 2.1% 4.0% 4.2% 3.8% 1,549.6 1,359.2 61.9 59.2 56.6 27.9 1-9 18 1-9 19 1-9 18 1-9 19 1-9 18 1-9 19 EBIT Ope

  4. Slide 4: Positive development of Net Profit and Earnings per share

    GRAMMER GROUP – DEVELOPMENT 01-09 2019 Positive development of Net Profit and Earnings per share Net Profit Earnings per share [in € million] [in €] +90.6% +89.3% 28.4 2.31 14.9 1.22 1-9 18 1-9 19 1-9 18 1-9 19  Net Profit in 01-09 2019 at 28.4 € m.  Increase in Net Profit results in rising Earnin

  5. Slide 5: Balance sheet influenced by acquisition financing of TMD

    GRAMMER GROUP – DEVELOPMENT 01-09 2019 Balance sheet influenced by acquisition financing of TMD Equity and equity ratio Net financial debt [in € million and %] [in € million and %] +3.8% 34.2% 339.9 314.8 327.0 253.3 22% 23% 12/31/18 09/30/19 12/31/18 09/30/19  Equity increased to 327 € m.  Net de

  6. Slide 6: High investments to support future business and Technology Center

    GRAMMER GROUP – DEVELOPMENT 01-09 2019 High investments to support future business and Technology Center Capex and capex ratio Capex 01-09 2019 by segments [in € million and %] [in %] Commercial 89.3 Vehicles 16% 49.4 5.8% 27% Central Automotive 57% Services 3.6% (incl. R&D and HQ) 1-9 18 1-9 19  C

  7. Slide 7: Headcount increase driven by integration of TMD

    GRAMMER GROUP – DEVELOPMENT 01-09 2019 Headcount increase driven by integration of TMD Employees Employees in best-cost / high-cost countries [month-end] [month-end] +1,983 employees 14,813 high-cost 12,830 29% countries 36% 71% best-cost 64% countries 09/30/18 09/30/19 09/30/18 09/30/19  Headcount

  8. Slide 8: CV business continued to grow, Q3/19 influenced by one-off effects

    COMMERCIAL VEHICLES – DEVELOPMENT 01-09 2019 CV business continued to grow, Q3/19 influenced by exceptional one-off effects Revenues EBIT and operating EBIT [in € million] [in € million] EBIT margin Op. EBIT margin +4.1% 9.7% 8.5% 9.5% 8.2% 44.2 40.3 43.5 38.9 456.0 474.6 1-9 18 1-9 19 1-9 18 1-9 19

  9. Slide 9: Positive development of Automotive business due to TMD acquisition

    AUTOMOTIVE – DEVELOPMENT 01-09 2019 Positive development of Automotive business due to TMD acquisition Revenues EBIT and operating EBIT [in € million] [in € million] EBIT margin Op. EBIT margin +18% 2.8% 3.1% 2.6% 2.8% 1,112.3 942.7 34.3 31.7 26.0 24.6 1-9 18 1-9 19 1-9 18 1-9 19 1-9 18 1-9 19 EBIT

  10. Slide 10: Further Growth in China

    GRAMMER GROUP – FURTHER GROWTH IN CHINA Joint Venture Agreement with FAWSN signed on November 5th 2019 © 2019 GRAMMER AG - Presentation 1-9 2019 November 12, 2019 Page 10

  11. Slide 11: Overview of the Chinese automotive market

    GRAMMER GROUP – FURTHER GROWTH IN CHINA Overview of the Chinese automotive market Worldwide car production in 2018 Major car manufacturers in China [in %] [2018 Passenger car production, in total 26 million cars] Brilliance 0.8 Beijing-Hyundai 0.8 BAIC 0.8 27% 23% Great Wall 1.1 Europe Americas GAC

  12. Slide 12: Highlights of the Joint Venture Agreement with FAWSN Group

    GRAMMER GROUP – FURTHER GROWTH IN CHINA Highlights of the Joint Venture Agreement with FAWSN Group Joint Venture between GRAMMER AG and FAWSN Group Co. Ltd.  Important milestone for further growth in the world’s largest automotive market achieved  GRAMMER to increase its market share through this

  13. Slide 13: Mixed development in regional passenger car & commercial vehicle markets

    GRAMMER GROUP – MARKET OUTLOOK 2019 Mixed development in regional passenger car & commercial vehicle markets Europe USA Brasil China World Worldwide car production Source: IHS 10/2019 -4% -4% -3% -9% -6% Worldwide truck production Source: IHS 07/2019 -0.4% +3% +13% -14% -5% Flat to Source: John Deer

  14. Slide 14: More cautious full year outlook

    GRAMMER GROUP – SALES & EBIT OUTLOOK 2019 More cautious full year outlook • GRAMMER expects total sales of around EUR 2.0 billion (previously around EUR 2.1 billion) for the year 2019. • The Automotive Segment will benefit from last year’s TMD acquisition and further organic growth in North America,

  15. Slide 15: Backup Information

    ON THE MOVE Backup Information

  16. Slide 16: Key Figures 01-09 2019

    GRAMMER GROUP Key Figures 01-09 2019 [IFRS in € million] Q3 2019 Q3 2018 Chg. 01-09 2019 01-09 2018 Chg. Group Revenue 498.1 431.6 15.4% 1,549.6 1,359.2 14.0% EBITDA 33.3 -1.8 1,950% 124.6 63.6 95.9% EBITDA-Margin (in %) 6.7 -0.4 7.1 %-points 8.0 4.7 3.3 %-points EBIT 11.7 -14.0 183.6% 61.9 27.9 121

  17. Slide 17: Share price development

    GRAMMER AG Share price development GRAMMER share price in €, December 31, 2015 until October 31, 2019 70 60 50 40 30 20 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Selected Broker Recommendations Top Shareholders Basic Share Data Cu

  18. Slide 18: Financial key figures 5-year overview

    GRAMMER GROUP Financial key figures 5-year overview [IFRS, in € million] 2018 2017 2016 2015 2014 Group Revenue 1,861.3 1,786.5 1,695.5 1,425.7 1,365.9 EBITDA 101.0 116.0 120.2 83.2 93.7 EBITDA margin 5.4% 6.5% 7.1% 5.8% 6.9% EBIT 48.7 66.5 73.0 42.7 57.0 EBIT margin 2.6% 3.7% 4.3% 3.0% 4.2% Profit

  19. Slide 19: IR Contact

    GRAMMER GROUP IR Contact Investor Relations Contact Boris Mutius Head of Investor Relations, Communications, Marketing, CSR Phone: +49 (0)9621 66 2200 Fax: +49 (0)9621 66 32200 Email: investor-relations@grammer.com Internet: www.grammer.com/investor-relations © 2019 GRAMMER AG - Presentation 1-9 201

  20. Slide 20: 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

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