Grammer Ag · XETR:GMM
Grammer — Investor Presentation (April 2008)
42 slides from Grammer's investor presentation, April 2008
Slide 1: Investor Presentation April 2008
Investor Presentation April 2008 Well Positioned for Profitable Growth
Slide 2: Today's Speakers
GRAMMER Investor Presentation April 2008 Today’s Speakers Dr. Rolf-Dieter Kempis (54), CEO CEO of Grammer AG since August 2007 Former partner at McKinsey and member of the Supervisory Board of Grammer since 2005 Wide range of experience in management, strategy and operational projects in the automot
Slide 3: Grammer: Well Positioned for Profitable Growth
Grammer: Well Positioned for Profitable Growth Copyright Grammer - Investor Relations April 2008 Page 3
Slide 4: GRAMMER: Well Positioned for Profitable Growth
GRAMMER: Well Positioned for Profitable Growth Market Leadership Positions and standard setter 1 in attractive specialty markets Profitable Growth Attractive Business Platform providing large diversity 2 of customers, markets and products Higher Strong Profitability Potential through improved cost M
Slide 5: GRAMMER: Well Positioned for Profitable Growth
GRAMMER: Well Positioned for Profitable Growth Market Leadership Positions and standard setter 1 in attractive specialty markets Profitable Growth Attractive Business Platform providing large diversity 2 of customers, markets and products Higher Strong Profitability Potential through improved cost M
Slide 6: Market Leadership Positions: Group Overview
1 Market Leadership Positions Group Overview Grammer Group Automotive Seating Systems 30% of EBIT 70% of EBIT Automotive Offroad Truck Railway Bus Products Products Products Products Products Head- & Armrests Driver seats for offroad Driver seats for Passenger seats for Driver seats for Centre Conso
Slide 7: Seating System – Offroad – Global Market
1 Market Leadership Positions Seating System – Offroad – Global Market Global Market - Offroad Market Trends - Offroad Grammer’s Market Position MEGATREND Generation of alternative energy #1 #1 #3 #3 EUROPE Modernization of existing vehicles in Total Market Volume [EUR m.] Eastern Europe New regulat
Slide 8: Seating System – Offroad – Grammer's Market Position
1 Market Leadership Positions Seating System – Offroad – Grammer’s Market Position Grammer’s Market Position Seating System - Offroad Market and Strong Global player with technology brand image and local content in all key Highly innovative leader in Europe broad customer base markets Strong leading
Slide 9: Seating System – Truck – Global Market
1 Market Leadership Positions Seating System – Truck – Global Market Global Market - Truck Market Trends - Truck Grammer’s Market Position EUROPE Several model changes in 2009-2011 #2 #1 #1 #6 Dual sourcing strategy of OEM’s Very competitive market, dominated by ISRI Potential new market entry by Re
Slide 10: Seating System – Truck – Grammer's Market Position
1 Market Leadership Positions Seating System – Truck – Grammer’s Market Position Grammer’s Market Position Seating System - Truck Positive Successful market Technology and New seat brand image in China entry in Russia with market leadership in generation “Echo” and India customer KAMAZ South America
Slide 11: Seating System – Railway – Global Market
1 Market Leadership Positions Seating System – Railway – Global Market Global Market - Railway Market Trends - Railway Grammer’s Market Position WESTERN EUROPE Still largest market for next 10 years #2 #3 #3 Strongest future growth in France Need for market consolidation on Tier 2 level Total Market
Slide 12: Seating System – Railway – Grammer's Market Position
1 Market Leadership Positions Seating System – Railway – Grammer’s Market Position Grammer’s Market Position Seating System - Railway Strong reputation in Market leader in high- Strong Only “real” innovation, design speed and long- brand image global Player and ergonomics distance trains Strong mark
Slide 13: Automotive – Global Market
1 Market Leadership Positions Automotive – Global Market Global Market – Premium Automotive Segment* Market Trends - Automotive Headrests Total Market Volume [EUR m.] Adoption of European safety features in the 1,200 875 1,650 NAFTA region (CAK) Low cost products for Asian markets Armrests Integrati
Slide 14: Automotive - Grammer's Market Position
1 GRAMMER Market Leadership Positions Automotive - Grammer’s Market Position Grammer’s Market Position Automotive Experienced Strong reputation for Majority of sales development partner R&D centers USA, design, quality and generated in premium with all western based Europe and Asia competitiveness v
Slide 15: GRAMMER: Well Positioned for Profitable Growth
GRAMMER: Well Positioned for Profitable Growth Market Leadership Positions and standard setter 1 in attractive specialty markets Profitable Growth Attractive Business Platform providing large diversity 2 of customers, markets and products Higher Strong Profitability Potential through improved cost M
Slide 16: Grammer's Product Portfolio
2 Attractive Business Platform Grammer’s Product Portfolio Attractive product portfolio providing innovation, safety and comfort… Seating Systems Automotive Offroad Truck Railway Headrests Armrest & Centre Consoles Maximo Evolution Kingman Premium Crash Active Armrest active Seat Headrest (CAK) Prim
Slide 17: Sales by Customer Group
2 Attractive Business Platform Sales by Customer Group …to a well balanced customer base… Grammer Sales 2007 by Customer Group Grammer Top 15 Customer* Sales 2007: 998.1 EUR m. Pos. Segment Customer % of Sales 1 Automotive BMW 24% 2 Automotive VW 15% 3 Automotive Audi 7% Other Auto Offroad 4 Automot
Slide 18: Sales by Region
2 Attractive Business Platform Sales by Region …with a continuously increased global focus… Grammer Sales 1997–2007 – Domestic and International* Grammer Sales 2007 by Region 289 411 998 Sales 2007: 998.1 EUR m. EUR m. EUR m. EUR m. 55% 53% 49% Asia 10% Europe 75% America 15% 47% 51% 45% 1997 2002 2
Slide 19: Global Footprint
2 Attractive Business Platform Global Footprint …supported by an increasingly low cost, global production network. Employees in Germany / International 1997 - 2007 Direct Production Employees 2007 by Location 34% 30% Low Cost 48% 37% Medium High Cost 66% 70% Cost 22% 52% 41% 1997 2002 2007 Low Cost:
Slide 20: GRAMMER: Well Positioned for Profitable Growth
GRAMMER: Well Positioned for Profitable Growth Market Leadership Positions and standard setter 1 in attractive specialty markets Profitable Growth Attractive Business Platform providing large diversity 2 of customers, markets and products Higher Strong Profitability Potential through improved cost M
Slide 21: Key Success Drivers - Operations: Leaner Organization
3 Strong Profitability Potential Key Success Drivers - Operations Grammer’s Fitness Program results in a leaner and more efficient organization… Description To Do’s Status Target Leaner structures Organizational structure 100% Clear hierarchies with sales Staffing key positions 100% Implement Implem
Slide 22: Key Success Drivers - Operations: Plant Optimization
3 Strong Profitability Potential Key Success Drivers - Operations …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 optimization plants with exter
Slide 23: Key Success Drivers - Operations: Purchasing and Processes
3 Strong Profitability Potential Key Success Drivers - Operations …reduces material and overhead costs… Description To Do’s Status Target Reduction of material costs Global commodity strategy 50% Q4 09 Optimization of supply with defined supplier base chain and focus on low cost sources Purchasing P
Slide 24: Target Headcount and Cost Reduction
3 Strong Profitability Potential Key Success Drivers - Operations …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 direct HC Germ
Slide 25: Key Success Drivers – Product Highlights 2008/2009
3 Strong Profitability Potential Key Success Drivers – Product Highlights 2008/2009 Leading system supplier with highly innovative products Seatcab: Integration of seat & cabin suspension Growth in high margin service and aftermarket business: New contract with US distribution network Offroad Leadin
Slide 26: Key Success Drivers - Summary
3 Strong Profitability Potential Key Success Drivers - Summary Innovation, customer and operational excellence are key focus of management actions Products Operations Customers Footprint Improve costs and Innovative and Offer customer Increase global competitiveness competitive products Best-Cost-Pr
Slide 27: GRAMMER: Well Positioned for Profitable Growth
GRAMMER: Well Positioned for Profitable Growth Market Leadership Positions and standard setter 1 in attractive specialty markets Profitable Growth Attractive Business Platform providing large diversity 2 of customers, markets and products Higher Strong Profitability Potential through improved cost M
Slide 28: Grammer's Focused Growth Model
4 Significant Growth Potential Grammer to exploit different opportunities for profitable growth Grammer’s Focused Growth Model Organic Growth Geographic Footprint Industry Consolidation Innovative new Facilities in high World leading technology & products growth Chinese manufacturer of supplier mark
Slide 29: Organic Growth: Access to Asian Markets and Customers
4 Significant Growth Potential Organic Growth Access to Asian markets and customers key for future growth Asian/Pacific Heavy Truck Production (million units) Russian Heavy Truck Production (million units) CAGR CAGR 07-12: 15% 07-12: 11% 7.5 0.70 6.7 0.65 5.9 0.55 0.60 4.5 5.2 0.48 3.9 0.42 2007 200
Slide 30: Footprint: Asia Strategy
4 Significant Growth Potential Footprint Asia Strategy: We are well positioned for future growth in Asia Target Sales in Russia Truck Strategic Options in Asia in EUR m. Russia Localization & market entry Russia in 10 Kaliningrad Truck segment Market entry India with local JV and/or acquisition in o
Slide 31: Grammer Seeking Active Role in Industry Consolidation
4 Significant Growth Potential Industry Consolidation Grammer seeking active role in industry consolidation Interior component system has a relatively concentrated supplier base Seating segment is still relatively fragmented providing further consolidation opportunities Leverage on its strong market
Slide 32: GRAMMER: Well Positioned for Profitable Growth
GRAMMER: Well Positioned for Profitable Growth Market Leadership Positions and standard setter 1 in attractive specialty markets Profitable Growth Attractive Business Platform providing large diversity 2 of customers, markets and products Higher Strong Profitability Potential through improved cost M
Slide 33: Experienced Management Team
5 Experienced Management Team Shareholder Value Focus New Management is strongly committed to increase shareholder value Name: Dr. Rolf-Dieter Kempis Position: CEO Compensation package for Age: 54 management team includes both fixed and variable components With Grammer since: 2007 Name: Alois Ponnat
Slide 34: Grammer - Key Financials
Grammer - Key Financials Copyright Grammer - Investor Relations April 2008 Page 34
Slide 35: GRAMMER: Key Financials 2007 Sales
GRAMMER: Key Financials 2007 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) 363.3 Audi A4 phase
Slide 36: GRAMMER: Key Financials 2007 EBIT
GRAMMER: Key Financials 2007 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 + sales of seating sy
Slide 37: 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 38: 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 Ralf Hoppe (38), Vice President Investor Relations Before joining Grammer
Slide 39: Disclaimer
Disclaimer This presentation has been prepared by Grammer AG solely for investor roadshows in April 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. Nor shall
Slide 40: Backup
Backup Increase Copyright Grammer - Investor Relations April 2008 Page 40
Slide 41: 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 42: 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