Grammer Ag · XETR:GMM

Grammer — Shareholder Meeting (June 2018)

30 slides from Grammer's shareholder meeting presentation, Jun 13, 2018

  1. Slide 1: GRAMMER AG Annual General Meeting 2018

    GRAMMER AG Annual General Meeting 2018 Hartmut Müller Chief Executive Officer Amberg, June 13, 2018

  2. Slide 2: Highlights Fiscal Year 2017

    Highlights Fiscal Year 2017 GRAMMER

  3. Slide 3: Growth in revenues by +5% to €1.79 billion

    GRAMMER GROUP – FISCAL YEAR 2017 Growth in revenues by +5% to € 1.79 billion Sales trend 2013 – 2017 [in € million] Annual Ø growth rate 9% Change: +5% 1,786.5 1,695.5 1,365.9 1,425.7 1,265.7 2013 2014 2015 2016 2017 © 2018 GRAMMER AG - Annual General Meeting 2018 June 13, 2018 Page 3

  4. Slide 4: Clear improvements in operating profitability

    GRAMMER GROUP – FISCAL YEAR 2017 Clear improvements in operating profitability Operating EBIT* 2013 – 2017 [in € million and in % of revenue] Annual Ø growth rate 9% Change: +10% 80.2 68.1 58.6 52.2 4.6% 39.0 4.5% 3.8% 4.0% 2.7% 2013 2014 2015 2016 2017 *) IFRS EBIT adjusted by exchange rate effects

  5. Slide 5: IFRS result per share influenced by non-recurring costs and US tax reform

    GRAMMER GROUP – FISCAL YEAR 2017 IFRS result per share influenced by non-recurring costs and US tax reform IFRS result per share 2013 – 2017* [in €] 4.01 undiluted 3.09 2.94 2.67 2.67 2.10 2013 2014 2015 2016 2017 2017 *) Number of shares 2013 to 2016: 11.5 m shares, 2017: 12.6 m shares © 2018 GRAMM

  6. Slide 6: Proposed dividend takes non-recurring costs in FY 2017 into account

    GRAMMER GROUP – FISCAL YEAR 2017 Proposed dividend takes non-recurring costs in FY 2017 into account Dividend, payout ratio and dividend yield for the fiscal years 2013 – 2017 [in € and in %] 47% 36% 32% 24% 24% Payout ratio (relative to Group net income) 2.7% 2.7% 2.3% 2.4% 1.9% Dividend yield (Bas

  7. Slide 7: Equity increases significantly compared to the previous year

    GRAMMER GROUP – FISCAL YEAR 2017 Equity increases significantly compared to the previous year Equity and equity ratio 2013 – 2017 [in € million and in %, as per Dec. 31] Change: +25% 337.7 271.2 253.4 224.7 231.8 29% 31% 28% 26% 26% 2013 2014 2015 2016 2017 © 2018 GRAMMER AG - Annual General Meeting

  8. Slide 8: Significant reduction of net debt despite expansion and investment activities

    GRAMMER GROUP – FISCAL YEAR 2017 Significant reduction of net debt despite expansion and investment activities Net financial liabilities and gearing 2013 – 2017 [in € million and in %, as per Dec. 31] Change: -34% 155.5 139.1 93.2 86.7 92.2 61% 51% 41% 37% 27% 2013 2014 2015 2016 2017 © 2018 GRAMMER

  9. Slide 9: Investments in expansion of production capacity and process optimization

    GRAMMER GROUP – FISCAL YEAR 2017 Investments in expansion of production capacity and process optimization Investments and investment rate 2013 – 2017 [excl. M&A, in € million, in % of revenue] Change: +5% 56.2 59.1 51.5 47.9 46.8 3.7% 3.8% 3.4% 3.3% 3.3% 2013 2014 2015 2016 2017 © 2018 GRAMMER AG -

  10. Slide 10: Workforce increase below sales growth

    GRAMMER GROUP – FISCAL YEAR 2017 Workforce increase below sales growth Employees and personnel cost ratio 2013 – 2017 [yearly average, personnel costs as proportion of sales in %] Change:+3% 12,144 12,483 10,995 10,446 9,315 19.9% 20.7% 21.2% 20.8% 21.0% 2013 2014 2015 2016 2017 © 2018 GRAMMER AG -

  11. Slide 11: Highlights First Three Months of 2018 & Outlook 2018

    Highlights First Three Months of 2018 & Outlook 2018

  12. Slide 12: Solid start in the first quarter of 2018

    GRAMMER GROUP – DEVELOPMENT Jan – Mar 2018 Solid start in the first quarter of 2018 Revenues Operating EBIT [in € million] [in € million and % of revenues] Change: -1% FX adjusted: +2% 458.0 454.4 23.1 20.5 5.0% 4.5% Q1 2017 Q1 2018 Q1 2017 Q1 2018 © 2018 GRAMMER AG - Annual General Meeting 2018 Jun

  13. Slide 13: Further increases in sales & profitability expected

    GRAMMER GROUP – OUTLOOK 2018 Further increases in sales & profitability expected Actual 2017 Outlook 2018 Group sales revenue € 1.79 billion approx. € 1.85 billion GRAMMER Operating EBIT-margin 4.5% around 5% Outlook ROCE 11.5% > prev. year Important note: At the present time, potential influences o

  14. Slide 14: Strategic Highlights Innovations

    Strategic Highlights Innovations

  15. Slide 15: High potential for interior specialists in future generations of vehicles

    GRAMMER STRATEGIC HIGHLIGHTS – INNOVATIONS High potential for interior specialists in future generations of vehicles Autonomous Vehicle interiors 1 driving will become a new, additional living space 1 Safety Electric & for people 2 hybrid Interior defines drives wellbeing & comfort level 2 Ergonomic

  16. Slide 16: Project PURE – New, revolutionary interior vision from GRAMMER

    GRAMMER STRATEGIC HIGHLIGHTS – INNOVATIONS Project PURE – New, revolutionary interior vision from GRAMMER Surfaces & materials Electronics High-quality haptics, touch & feel E/E system integration Hygienic & "green" materials Mobile device integration Lightweight & composite materials E-drives & int

  17. Slide 17: Strategic Highlights Acquisition of Toledo Molding & Die Inc.

    Strategic Highlights Acquisition of Toledo Molding & Die Inc.

  18. Slide 18: Transaction Highlights

    GRAMMER STRATEGIC HIGHLIGHTS – ACQUISITION TMD Transaction Highlights  TMD is a specialist in developing and manufacturing highly engineered thermoplastic components for the automotive industry  TMD is operating in the NAFTA region with 11 locations, generating annual revenues > 300 million USD 

  19. Slide 19: Combined footprint covers all major automotive regions

    GRAMMER STRATEGIC HIGHLIGHTS – ACQUISITION TMD Combined footprint covers all major automotive regions GRAMMER & TMD* combined NAFTA revenues (illustration based on FY 2017, in USD million) ~550 ~300 250 ~300 250 GRAMMER TMD Combined GRAMMER+TMD GRAMMER Group global revenues breakdown (illustration b

  20. Slide 20: Compelling benefits from combined activities

    GRAMMER STRATEGIC HIGHLIGHTS – ACQUISITION TMD Compelling benefits from combined activities Products: 1 Combined portfolio and joint R&D activities offers superior product solutions Footprint: 2 Broad combined footprint covering all major Automotive regions in the Americas Technology: 3 Expansion of

  21. Slide 21: Signing of a Business Combination Agreement and Announcement of Tender Offer

    Signing of a Business Combination Agreement with affiliated companies of Ningbo Jifeng & Announcement of Tender Offer

  22. Slide 22: BCA & tender offer provide opportunities and mutual benefits

    BUSINESS COMBINATION AGREEMENT & TENDER OFFER BCA & tender offer provide opportunities and mutual benefits  GRAMMER & Ningbo Jifeng* have signed a legally binding, comprehensive business combination agreement  Ningbo Jifeng has launched a voluntary takeover, offering all shareholders a total consi

  23. Slide 23: BCA secures GRAMMER's independence and future development

    BUSINESS COMBINATION AGREEMENT & TENDER OFFER BCA secures GRAMMER’s independence and future development A Continued Independence of GRAMMER B Commitment to Workforce & Manufacturing Footprint C Support of GRAMMER‘s Corporate Governance D Support of GRAMMER’s Brand and Global Strategy E Protection of

  24. Slide 24: Independence assured, far-reaching promises for employees & locations

    BUSINESS COMBINATION AGREEMENT & TENDER OFFER Independence assured, far-reaching promises for employees & locations A Independence* B Employees & locations*  No changes to the company’s legal  Ningbo Jifeng acknowledges the form as a stock exchange listed importance of GRAMMER’s excellent corporat

  25. Slide 25: Commitments to Corporate Governance & support of the strategy

    BUSINESS COMBINATION AGREEMENT & TENDER OFFER Commitments to Corporate Governance & support of the strategy C Corporate Governance D Strategy  Composition of GRAMMER AG’s  Ningbo Jifeng will support the organic Executive Board to remain unchanged* and external growth strategy  GRAMMER AG Executiv

  26. Slide 26: Protection of know-how, technologies and intellectual property

    BUSINESS COMBINATION AGREEMENT & TENDER OFFER Protection of know-how, technologies and intellectual property E Protection of know-how  Ningbo Jifeng recognizes the importance of GRAMMER’s focus on innovations, technological advanced products & processes  Ningbo Jifeng supports necessary R&D spendi

  27. Slide 27: The Executive Board of GRAMMER AG welcomes & supports the takeover offer

    BUSINESS COMBINATION AGREEMENT & TENDER OFFER The Executive Board of GRAMMER AG welcomes & supports the takeover offer*  GRAMMER Attractive premium for GRAMMER shareholders SHAREHOLDERS Continuation of dividend policy & Corporate Governance  GRAMMER Support of global growth strategy GROUP Continue

  28. Slide 28: Notes to the agenda

    GRAMMER AG Notes to the agenda

  29. Slide 29: New authorized capital & Amendments to the Articles of Association

    GRAMMER AG – NOTES TO THE AGENDA Item 8 New authorized capital & Item 9 Amendments to the Articles of Association Item 8 – Resolution on the creation of new authorized capital No vote in today‘s Annual General Meeting Item 9 – Resolution on the amendments to the Articles of Association Amendment of

  30. Slide 30: GRAMMER AG Annual General Meeting 2018

    GRAMMER AG Annual General Meeting 2018 Hartmut Müller Chief Executive Officer Amberg, June 13, 2018

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