Grammer Ag · XETR:GMM
Grammer — Analyst Conference March 31, 2008
26 slides from Grammer's conference presentation, Mar 31, 2008
Slide 1: Analyst Conference March 31, 2008
Analyst Conference March 31, 2008 Well Positioned for Profitable Growth
Slide 2: Today's Speakers: Grammer's Executive Management Board
GRAMMER Analyst Conference March 31, 2008 Today’s Speakers Grammer’s Executive Management Board Name: Dr. Rolf-Dieter Kempis Prior to Grammer, partner at McKinsey and member of the Supervisory Board of Grammer since 2005 Position: CEO Wide range of experience in management, strategy Age: 54 and oper
Slide 3: I. Strategy and Group Development
I. Strategy and Group Development Copyright Grammer - Presentation Analyst Conference 2008 March 31, 2008 Page 3
Slide 4: Strategic Approach: Milestones implemented in 2007
GRAMMER: Strategic Approach Milestones implemented in 2007 Completed Completed Steady Steady Progress Progress 1 New business unit organization 2 Market and technology 3 Focus on profitable growth 4 Increase efficiency and profitability Copyright Grammer - Presentation Analyst Conference 2008 March
Slide 5: Strategic Approach: Milestones implemented in 2007
GRAMMER: Strategic Approach Milestones implemented in 2007 Completed Completed Steady Steady Progress Progress 1 New business unit organization 2 Market and technology 3 Focus on profitable growth 4 Increase efficiency and profitability Copyright Grammer - Presentation Analyst Conference 2008 March
Slide 6: New Business Unit Organization: Group Overview
1 New Business Unit Organization Group Overview Grammer Group Automotive Seating Systems 30% of EBIT 70% of EBIT Automotive Offroad Truck Bus Railway Products Products Products Products Products Head- & Armrests Driver seats for offroad Driver seats for Driver seats for Passenger seats for Centre Co
Slide 7: New Business Unit Organization: Advantages
1 New Business Unit Organization Advantages Advantages Leaner structures Structures Clear hierarchies and higher transparency Defined sales and P&L responsibility New New Processes Efficient and fast decision making process Business Business Unit & Integration of central functions Seating & Automoti
Slide 8: Strategic Approach: Milestones implemented in 2007
GRAMMER: Strategic Approach Milestones implemented in 2007 Completed Completed Steady Steady Progress Progress 1 New business unit organization 2 Market and technology 3 Focus on profitable growth 4 Increase efficiency and profitability Copyright Grammer - Presentation Analyst Conference 2008 March
Slide 9: Market & Technology: Market Position
2 Market & Technology Market Position Grammer’s Market Position - Seating OFFROAD Market and technology leader in Europe Strong brand name and broad customer base Leading market position in regional niche markets Global player with local content in all key markets TRUCK High growth potential in Asia
Slide 10: Market & Technology: Product Portfolio
2 Market & Technology Product Portfolio Attractive product portfolio by the leading system supplier… Seating Systems Automotive Offroad Truck Railway Headrests Armrest & Centre Consoles Maximo Evolution Kingman Premium Crash Active Armrest active Seat Headrest (CAK) Primo XL MSG 90.6 ICE 3000 AVE Cl
Slide 11: Market & Technology: Product Highlights 2008/2009
2 Market & Technology Product Highlights 2008/2009 ...providing innovation, safety, design and comfort. Seatcab: Integration of seat & cabin suspension Growth in high margin service and aftermarket business: New contract with US distribution network Offroad Leading supplier to all major material han
Slide 12: Strategic Approach: Milestones implemented in 2007
GRAMMER: Strategic Approach Milestones implemented in 2007 Completed Completed Steady Steady Progress Progress 1 New business unit organization 2 Market and technology 3 Focus on profitable growth 4 Increase efficiency and profitability Copyright Grammer - Presentation Analyst Conference 2008 March
Slide 13: Focus on Profitable Growth: Key success drivers
3 Focus on Profitable Growth Key success drivers Innovation, customer and operational excellence are the centre of management actions Products Operations Customers Footprint Improve costs and Innovative and Offer customer Increase global competitiveness competitive products Best-Cost-Product footpri
Slide 14: Strategic Approach: Milestones implemented in 2007
GRAMMER: Strategic Approach Milestones implemented in 2007 Completed Completed Steady Steady Progress Progress 1 New business unit organization 2 Market and technology 3 Focus on profitable growth 4 Increase efficiency and profitability Copyright Grammer - Presentation Analyst Conference 2008 March
Slide 15: Grammer's fitness program - Plants
4 Increase efficiency and profitability Grammer’s fitness program - Plants Our program boosts productivity and efficiency in all plants world-wide… Description To Do’s Status Target Efficiency and productivity Lean production 100% increase in all plants transformation in 2 pilot Footprint optimizati
Slide 16: Grammer's fitness program - Purchasing & Processes
4 Increase efficiency and profitability Grammer’s fitness program – Purchasing & Processes …reduces material and overhead costs… Description To Do’s Status Target Reduction of material Global commodity strategy 50% Q4 09 costs with defined supplier base Optimization of supply and focus on low cost c
Slide 17: Grammer's fitness program - Summary
4 Increase efficiency and profitability Grammer’s fitness program – Summary …and therefore improves our cost structure and competitiveness significantly. Target Headcount Reduction Target Cost Reduction (Full Year View) 400 direct HC international Total Plant Headcount 25 EUR m. Optimization 92 dire
Slide 18: Well Positioned for Profitable Growth
GRAMMER: Well Positioned for Profitable Growth Market Leadership Position Profitable Growth Attractive Business Platform Higher Strong Profitability Potential Margins Significant Growth Opportunities Higher Value Potential Experienced and Committed Management Team Copyright Grammer - Presentation An
Slide 19: II. Key Financials
II. Key Financials Copyright Grammer - Presentation Analyst Conference 2008 March 31, 2008 Page 19
Slide 20: Key Financials 2007 Highlights (1)
GRAMMER: Key Financials 2007 Highlights (1) Income Statement in EUR m. 2007 2006 Change in % Revenue 998.1 881.0 13.3% EBITDA 55.6 62.6 -11.2% EBITDA Margin 5.6% 7.1% -1.5%-points EBIT 32.1 38.9 -17.4% EBIT Margin 3.2% 4.4% -1.2%-points Net Profit 17.6 21.3 -17.6% EPS [in EUR] 1.72 2.09 -17.7% Balan
Slide 21: Key Financials 2007 Highlights (2)
GRAMMER: Key Financials 2007 Highlights (2) Key Figures 2007 2006 Change in % ROCE in % 8.2% 9.1% -0.9%-points Operative Cash-Flow 38.5 29.7 29.6% Free Cash-Flow -2.0 -2.3 --- Capex 34.6 32.1 8.0% Depreciation 23.5 23.7 -0.9% Employees (Yearly ave.) 9,326 8,610 8.3% Employees (Yearend) 9,527 8,925 6
Slide 22: Key Financials 2007: Segment Reporting - Sales
GRAMMER: Key Financials 2007 Segment Reporting - Sales Sales by Division [EUR m.] Key Sales Development 2006 - 2007 AUTOMOTIVE Sales Grammer Group Strong demand in export and premium segments 881.0 +13.3% 998.1 BMW USA (new X5 and 5-series) + Daimler C-Class FAW-China (Passat -Transfer from Germany)
Slide 23: Key Financials 2007: Segment Reporting - EBIT
GRAMMER: Key Financials 2007 Segment Reporting - EBIT EBIT by Division [EUR m.] Key EBIT Development 2006 to 2007 EBIT Grammer Group EBIT Margin in % of sales 2006 2007 38.9 -17.5% 32.1 4.4% Group 3.2% 5.4% Seating 6.6% 3.9% Automotive 1.6% Grammer Group Positive volume and mix impacts from higher +
Slide 24: Sales and EBIT-Margin Development 2004 – 2009e
GRAMMER: Well Positioned for Profitable Growth Sales and EBIT-Margin Development 2004 – 2009e Strong sales development with an average growth of +5% per year Grammer Sales in EUR m. Guidance 2008 / 2009 825 859 881 998 1,030 Sales 1,070 Sales CAGR 04-09e: 5% Sales EBIT Margin 4.9% > 3% EBIT ~ 5% 4.4
Slide 25: Contact
Contact Postal Address: Grammer AG Georg-Grammer-Str. 2 Germany 92224 Amberg Internet: www.grammer.com Investor Relations: Mr. Ralf Hoppe Tel: +49 (0)9621 66 2200 Fax: +49 (0)9621 66 32200 Email: investor-relations@grammer.com Copyright Grammer - Presentation Analyst Conference 2008 March 31, 2008 P
Slide 26: Disclaimer
Disclaimer This presentation has been prepared by Grammer AG solely for the analyst conference on March 31, 2008. 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. No