Grammer Ag · XETR:GMM
Grammer — Investor Presentation (September 2007)
40 slides from Grammer's investor presentation, September 2007
Slide 1: On Track for Profitable Growth – Investor Presentation September 2007
On Track for Profitable Growth Investor Presentation September 2007
Slide 2: The Grammer Business model
The Grammer Business model Copyright Grammer - Investor Presentation September 2007 Page 2
Slide 3: New group organisation
New group organisation 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 September 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 September 2007 Pag
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 September 2007 Page 7
Slide 8: Grammer global network - Automotive
Grammer global network - Automotive Copyright Grammer - Investor Presentation September 2007 Page 8
Slide 9: Grammer global network – Seating Systems
Grammer global network – Seating Systems Copyright Grammer - Investor Presentation September 2007 Page 9
Slide 10: Strategy for Profitable Growth
Strategy for Profitable Growth Copyright Grammer - Investor Presentation September 2007 Page 10
Slide 11: Strategy for Profitable Growth - Automotive
Strategy for Profitable Growth - Automotive Copyright Grammer - Investor Presentation September 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) through product enhancement, sales strength and operative excellence Centre consoles and
Slide 15: Strategy for Profitable Growth – Seating Systems
Strategy for Profitable Growth – Seating Systems Copyright Grammer - Investor Presentation September 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 Internationalisation 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; defense 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 September 2007 Page 20
Slide 21: Grammer Group - Financial Targets
Grammer Group - Financial Targets Market goal: The company should realise an organic sales growth of five percent per annum on average and secure and gain new market shares Market leader and trend-setter (e.g. offroad, crash active headrests) Gain market share in emerging markets, Nafta and with new
Slide 22: Grammer Group - Financial Targets
Grammer Group - Financial Targets Liquidity goal: Grammer strives for a significantly-positive free cash flow Active working capital management in Automotive and Seating Capex cash flow oriented towards products and markets Value-oriented incentive system Hold onto our attractive dividend policy Per
Slide 23: Financials / Q1-2 2007
Financials / Q1-2 2007 Copyright Grammer - Investor Presentation September 2007 Page 23
Slide 24: Highlights Q1-2 2007
Highlights Q1-2 2007 Grammer Group: Grammer performed well in Q1-2 2007 with revenue growth of 9.8% EBIT caught up in Q2 again and exceeded the level of Q2 2006. All in all, the profit situation in Q1-2 has been influenced by the various start-ups in Q1 Grammer profited from the positive market deve
Slide 25: Highlights Q1-2 2007 Key facts - Automotive
Highlights Q1-2 2007 Key facts - Automotive Q2 Q1-2 After the start-ups in Q1, the main focus in Q2 was on strengthening €167m €317m our profitability (implementation of €290m €146m an activity program). Further positive market trends in 10% 10% Q2 improved sales and earnings. Complex product start-
Slide 26: Highlights Q1-2 2007 Key facts - Driver seats
Highlights Q1-2 2007 Key facts - Driver seats Q2 Q1-2 Sales up by more than EUR 13 million in Q1-2 2007 due to strong €78m €153m order situation in off-road €70m €140m segment and ongoing dynamic 15% 15% performance in truck market. Exchange rate (TRY, USD) had a negative impact on Q2 division 10% 1
Slide 27: Highlights Q1-2 2007 Key facts - Passenger seats
Highlights Q1-2 2007 Key facts - Passenger seats Q2 Q1-2 Sales in Q1-2 up by a further 10% €15m 10% €28m EUR 7 million thanks to new €21m international projects in rail €11m segment and slight rise in 5% 5% demand in bus segment. The lack of capacity due to higher sales and increasing material 0% 0%
Slide 28: Grammer Group: Key financial figures - operating
Financial Results Q1-2 2007 Grammer Group: Key financial figures - operating Q2 Q1-2 % of % of % of % of in tsd. EUR 2007 revenue 2006 revenue 2007 revenue 2006 revenue Revenue 254,256 225,494 491,926 448,092 EBITDA 20,206 7.9% 17,877 7.9% 36,008 7.3% 36,141 8.1% EBIT 14,190 5.6% 12,039 5.3% 24,262
Slide 29: Grammer Group: Key financial figures - balance sheet
Financial Results Q1-2 2007 Grammer Group: Key financial figures - balance sheet in tsd. EUR Q1-2 2007 Q1-2 2006 %-change Assets Non-current assets 191,145 184,081 4% Current assets 315,804 270,139 17% Liabilities Equity 178,848 171,392 4% Non-current liabilities 142,662 72,733 96% Current liabiliti
Slide 30: Outlook 2007: Divisions
Outlook 2007: Divisions Automotive Expected serial turnover above 2006 level EBIT slightly above 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 the mar
Slide 31: Outlook 2007: Grammer Group
Outlook 2007: Grammer Group Grammer Group New CEO for management team since August 1: Dr. Rolf-Dieter Kempis Year-to-year sales growth above 7% possible US dollar exchange rate and commodity prices could influence the group results EBIT slightly up as compared to 2006 Return to a comfortable level o
Slide 32: Grammer AG
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 September 2007 Page 32
Slide 33: 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 September 2007 Page 33
Slide 34: Disclaimer
Disclaimer This presentation has been prepared by Grammer AG solely for the investor roadshow in September 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
Slide 35: APPENDIX – OUR PRODUCTS
APPENDIX – OUR PRODUCTS Copyright Grammer - Investor Presentation September 2007 Page 35
Slide 36: Products - Automotive
Products - Automotive Centre consoles Crash active Integrated child Armrests Head restraints head restraints booster seats Copyright Grammer - Investor Presentation September 2007 Page 36
Slide 37: Products - Seating Systems
Products - Seating Systems MAXIMO Evolution ACTIMO Evolution PRIMO Copyright Grammer - Investor Presentation September 2007 Page 37
Slide 38: Products - Seating Systems
Products - Seating Systems MSG 90.6 VW S2 (BR) MSG 90.5 Copyright Grammer - Investor Presentation September 2007 Page 38
Slide 39: Products - Seating Systems
Products - Seating Systems D 3000 ICE 3000 AVE Club Copyright Grammer - Investor Presentation September 2007 Page 39
Slide 40: Products - Seating Systems
Products - Seating Systems Asymmetric backrest contour Alternative: backrest extension Adjustable headrest height for construction machines Document box Adjustable armrests Integrated restraint system Adjustable lumbar support Seat heating Backrest with adjustable angle Quick weight adjustment Minim