Grammer Ag · XETR:GMM
Grammer — Investor Presentation (November 2007)
35 slides from Grammer's investor presentation, November 2007
Slide 1: On Track for Profitable Growth – Investor Presentation
On Track for Profitable Growth Investor Presentation November 2007
Slide 2: The Grammer Business Model
The Grammer Business model Copyright Grammer - Investor Presentation November 2007 Page 2
Slide 3: New group organization
New group organization Reporting structure past GRAMMER GRAMMER GROUP GROUP Driver Driver Seats Seats Passenger Passenger Seats Seats AUTOMOTIVE AUTOMOTIVE Offroad Offroad Truck Truck Bus Bus Railway Railway After the sale of our business unit for bus passenger seats in Europe: Integration of the bu
Slide 4: Our market position
Our market position GRAMMER GROUP SEATING SYSTEMS AUTOMOTIVE Railway Offroad Truck & Bus Headrests, armrests, centre Seats for trains, off-road commercial vehicles, consoles, seat covers, child seats trucks and buses Component and system supplier Market leader and standard-setter in each market (mos
Slide 5: Our products and customers in Automotive
Our products and customers in Automotive GRAMMER GROUP SEATING SYSTEMS AUTOMOTIVE Railway Offroad Truck & Bus Patented functions Operative excellence Global presence Designed according to cost Competences in function and surface Copyright Grammer - Investor Presentation November 2007 Page 5
Slide 6: Our customers and products in Seating Systems
Our customers and products in Seating Systems GRAMMER GROUP SEATING SYSTEMS AUTOMOTIVE Railway Offroad Truck & Bus System supplier Agriculture Construction Forklift TIER 1 Market-oriented 85% OEM / 15% after-market Railway project-oriented Copyright Grammer - Investor Presentation November 2007 Page
Slide 7: New product ideas
New product ideas Concept Car MOTIS - Modular Truck Interior System Active seat Pre-crash headrest Seat comforts Relaxing and sleeping Mini-catering Multifunctional armrests (front, rear) Personal care Working and living Copyright Grammer - Investor Presentation November 2007 Page 7
Slide 8: Grammer global network - Automotive
Grammer global network - Automotive Copyright Grammer - Investor Presentation November 2007 Page 8
Slide 9: Grammer global network – Seating Systems
Grammer global network – Seating Systems Copyright Grammer - Investor Presentation November 2007 Page 9
Slide 10: Strategy for Profitable Growth
Strategy for Profitable Growth Copyright Grammer - Investor Presentation November 2007 Page 10
Slide 11: Strategy for Profitable Growth - Automotive
Strategy for Profitable Growth - Automotive Copyright Grammer - Investor Presentation November 2007 Page 11
Slide 12: Automotive – headrests
Automotive – headrests Market Volume Market and Trends Headrest (in mill. EUR) Safety for rear-end collision (active/passive systems) 900 800 Normed tests increase transparency for the customer 700 (EURONCAP – stars) 600 Market requirements: price, safety, machining, 500 850 Variety of variants (equ
Slide 13: Automotive – armrests and central consoles
Automotive – armrests and central consoles Market Volume Market and Trends Armrest (in mill. EUR) Integration of the armrest into the centre console (MIKO) 800 Market requirement: comfort, function, surface, price 700 Functional connection of the rear armrest with the backrest 600 and the rear seat
Slide 14: Automotive – summary
Automotive – summary Market and growth: Leading headrest manufacturer Exploitation of growth opportunities in the TransPlants of Asian OEMs (in Europe, NAFTA, China) and other selected customers (in Europe, USA) Centre consoles and armrests: Lasting establishment through acquisitions of additional c
Slide 15: Strategy for Profitable Growth – Seating Systems
Strategy for Profitable Growth – Seating Systems Copyright Grammer - Investor Presentation November 2007 Page 15
Slide 16: Seating Systems – BU Offroad
Seating Systems – BU Offroad Market Volume (in T units) Market and Trends Investment climate positive in Eastern Europe, for constr. equipment and aftermarket (AM); growth possible, new market field “Turfcare” in USA Growth in China and India increases demand in 1880 Construction Equipment (CE) and
Slide 17: Seating Systems – BU Truck
Seating Systems – BU Truck Market Volume (in T units) Market and Trends In Europe, stable order situation on a high level Cyclical market fluctuations in USA (emission standards) Various model changes in USA and Europe in 2009 – 2011 Asia (China, India) is largest growth market 1100 Price sensitivit
Slide 18: Seating Systems – BU Railway
Seating Systems – BU Railway Market Volume (in T units) Market and Trends 600 Western Europe will remain the largest market for rail; here greatest growth of the next few years in France Internationalization brings new market opportunities, but also new competitors from Asia (China, Korea, India) Gr
Slide 19: Seating Systems – Summary
Seating Systems – Summary Market and growth: Grammer in Europe (Offroad) will continue as technology and market leader; defence of the market position against strong competition, additional growth due to expansion of the market shares in the areas of construction equipment CE and after market AM pos
Slide 20: Strategy for Profitable Growth – Grammer Group
Strategy for Profitable Growth – Grammer Group Copyright Grammer - Investor Presentation November 2007 Page 20
Slide 21: Grammer Group - Targets
Grammer Group - Targets Fitness Programme New organization structure in Automotive Reduction of overhead structure and costs in Asia, NAFTA and headquarters Optimization of production network: Efficiency Added value chain Procurement programme Consequences New management structure Staff reduction Pr
Slide 22: Financials – Outlook 2007
Financials – Outlook 2007 Copyright Grammer - Investor Presentation November 2007 Page 22
Slide 23: Outlook 2007: Divisions
Outlook 2007: Divisions Automotive Expected serial turnover above 2006 level (plus 7% - 10%) EBIT below 2006 level EBIT margin influenced by pricing, raw material prices and currency effects Sales volume higher than previous year Driver Seats Agritechnica in November will give additional impulse to
Slide 24: Outlook 2007: Grammer Group
Outlook 2007: Grammer Group Grammer Group After retirement of Uwe Wöhner, a new CEO Dr. Rolf-Dieter Kempis took over the Automotive Division Year-on-year sales growth 7-10% possible US dollar exchange rate and commodity prices could influence the Group results EBIT expectation 32 EUR million, hence
Slide 25: Grammer AG contact details
Grammer AG PO Box 14 54 92204 Amberg Germany www.grammer.com Tel: +49 (0)9621-66-2200 Fax: +49 (0)9621-66-32771 E-mail: investor-relations@grammer.com Copyright Grammer - Investor Presentation November 2007 Page 25
Slide 26: The Presentation Team
The Presentation Team Alois Ponnath Dr. Rolf-Dieter Kempis Member of the Board Member of the Board CFO CEO Copyright Grammer - Investor Presentation November 2007 Page 26
Slide 27: APPENDIX – Q3 Report
APPENDIX – Q3 Report Copyright Grammer - Investor Presentation November 2007 Page 27
Slide 28: Highlights Q1-3 2007
Highlights Q1-3 2007 Grammer Group: Grammer performed well in Q1-3 2007 with revenue growth of 11.7 %. Grammer profited from the positive market development and good order situation: Continued orders increase in the truck and off-road industry Strong demand on the export markets and for premium clas
Slide 29: Key facts - Automotive
Highlights Q1-3 2007 Key facts - Automotive Q3 Q1-3 Further positive market trends in 15% €163m €480m Q3 improved sales. €426m Significant currency changes €136m caused cost increases in low cost 10% 10% plants in Poland, Czech Republic and Mexico which influenced our earnings. 5% Negative currency
Slide 30: Key facts - Driver seats
Highlights Q1-3 2007 Key facts - Driver seats Q3 Q1-3 Sales up by more than EUR 25 €75m €228m million in Q1-3 2007 due to strong 15% 15% €203m order situation in off-road €63m segment and ongoing dynamic performance in truck market. Exchange rate (TRY, USD) had a 10% 10% negative impact also on Q3 d
Slide 31: Key facts - Passenger seats
Highlights Q1-3 2007 Key facts - Passenger seats Q3 Q1-3 Sales in Q1-3 up by a further 10% 10% EUR 8.5 million thanks to new €42m €13m international projects in rail €12m segment. €33m The lack of capacity due to higher 5% 5% sales and increasing material costs had a negative impact on Q3 earnings.
Slide 32: Grammer Group: Income statement
Highlights Q1-3 2007 Grammer Group: Income statement in tsd. EUR Q3 2007 Q3 2006 %-change Revenue 243,125 209,823 16% Cost of sales 211,768 182,907 16% Gross profit 31,357 26,916 16% Selling expenses 9,899 9,333 6% Q3 Administrative expenses 20,262 15,432 31% Other operating income 1,486 2,462 -40%
Slide 33: Grammer Group: Key financial figures - balance sheet
Highlights Q1-3 2007 Grammer Group: Key financial figures - balance sheet in tsd. EUR Q1-3 2007 Q1-3 2006 %-change Assets Non-current assets 195,059 183,900 6% Current assets 306,796 270,889 13% Liabilities Equity 180,187 171,679 5% Non-current liabilities 143,005 103,211 39% Current liabilities 178
Slide 34: Grammer Group: Cash flow statement
Highlights Q1-3 2007 Grammer Group: Cash flow statement change in tsd. EUR Q1-3 2007 Q1-3 2006 in € '000 Net income for the year 13.040 14.401 -1.361 Amortization, Depreciation 17.486 17.546 -60 Changes provisions, working capital and other changes -31.511 -42.522 11.011 Operating Cash Flow -985 -10
Slide 35: Disclaimer
Disclaimer This presentation has been prepared by Grammer AG solely for the investor roadshow in November 2007. 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. Nor