Grammer Ag · XETR:GMM
Grammer — FY2020 Earnings Presentation
34 slides from Grammer's earnings presentation, Mar 31, 2021
Slide 1: ONE GRAMMER: Collaborating for a Sustainable Future
ONE GRAMMER COLLABORATING FOR A SUSTAINABLE FUTURE Analyst Conference Ursensollen, March 31st, 2021
Slide 2: New Way of Working enables stronger buy-in and faster execution
New Way of Working enables stronger buy-in and faster execution WoW@GRAMMER OUR WoW-CODE: • Collaboration • Openness • Drive • Empowerment
Slide 3: New regional organization promotes local empowerment
New regional organization promotes local empowerment Regions AMERICAS, EMEA and APAC with full P&L responsibility REGIONAL STRENGTHS • Understanding market needs • Higher customer intimacy • Right products for local demands
Slide 4: ONE GRAMMER. ONE TEAM. Achievements 2020: EMEA
ONE GRAMMER. ONE TEAM. Achievements 2020: Course is set in EMEA New GRAMMER Campus in Passenger seats for the Cooperation with the Ursensollen as hub for next generation of high- sound expert HARMAN for innovation and better speed trains for the train headrests with integrated regional collaboration
Slide 5: ONE GRAMMER. ONE TEAM. Achievements 2020: AMERICAS
ONE GRAMMER. ONE TEAM. Achievements 2020: Progress through integration and expansion in AMERICAS Integrating TMD: Serving Partnership with Hyster- Tetla II: a new cut&sew our North American Yale: GRAMMER becomes plant in Mexico to support customers with one strategic supplier for global growing cust
Slide 6: ONE GRAMMER. ONE TEAM. Achievements 2020: APAC
ONE GRAMMER. ONE TEAM. Achievements 2020: Stronger presence and higher localization in APAC Important cooperation Successful start of Expansion of footprint in projects with strategic production of GRAMMER’s China to support further partner Ningbo Jifeng MSG 90.6 truck seats in growth: 2 new plants
Slide 7: GRAMMER in line with market - strong performance in APAC
GRAMMER in line with market - strong performance in APAC Global market development light vehicles AMERICAS EMEA APAC [in %] [in %] [in %] +20 +13 +2 +1 +9 0 +5 0 0 -6 -12 -10 -4 -6 -16 -14 -17 -22 -30 -29 -58 -56 -70 -72 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2020 2020 2020 2020 2020 2020 2020 202
Slide 8: GRAMMER outperforms markets globally
GRAMMER outperforms markets globally Global market development commercial vehicles AMERICAS EMEA APAC [in %] [in %] [in %] +60 +40 +30 +2 +11 +18 +16 -10 -10 +9 -17 -14 -15 -15 -16 -20 -20 -17 -25 -37 -… -49 -40 -62 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2020 2020 2020 2020 2020 2020 2020 2020 202
Slide 9: Revenue development in the regions
Revenue development in the regions Strong impact of COVID-19 with solid recovery in HY2 and continuous growth in APAC AMERICAS EMEA APAC [in m. €] [in m. €] [in m. €] • GRAMMER develops better 28% 19% than the overall market 53% • Significant recovery of sales in Americas and EMEA in HY2 -18.9% 1,11
Slide 10: Revenue development by segment
Revenue development by segment Two-leg strategy pays off: CV segment less affected by COVID-19 pandemic AUTOMOTIVE COMMERCIAL VEHICLES SHARE OF GROUP REVENUE [in m. €] [in m. €] Commercial Vehicles Automotive -17.6% 29% 2019 71% 1,479.8 1,219.3 -10.4% Commercial 607.4 Vehicles 544.5 31% 2020 Automot
Slide 11: Revenue and EBIT
Revenue and EBIT Significant impact from COVID-19 pandemic and one-time effects REVENUE EBIT OPERATING EBIT [in m. €] [in m. €] [in m. €] 3.7% -2.7% 3.8% -0.7% • Revenue down by nearly EUR 330 million (-16%) 2,038.5 1,710.7 • EBIT impacted by: • EUR 46.0 million negative 74.5 77.0 one-time effects •
Slide 12: Revenue and operating EBIT-Margin in %
Revenue and operating EBIT-Margin in % Significant improvement in operating EBIT in HY2 - measures already taking effect Operating 4.8% -6.2% 2.7% 3.5% EBIT-Margin • Revenue HY2 nearly on the level of PY, includes catch up effects -30.0% from customers -1.2% 1,051.5 • Operating EBIT of EUR +34.0 987
Slide 13: GRAMMER Automotive
GRAMMER Automotive Significant recovery in HY2 after severe customer production interruptions in HY1 REVENUE EBIT OPERATING EBIT [in m. €] [in m. €] [in m. €] 3.4% -5.1% 3.3% -3.5% • Revenue down by -17.6% 1,479.8 • Recovery in HY2 with a single- 1,219.3 digit decline of -2.0% vs. 2019 and strong re
Slide 14: GRAMMER Commercial Vehicles
GRAMMER Commercial Vehicles Affected by general market slow-down but more resilient to crisis REVENUE EBIT OPERATING EBIT [in m. €] [in m. €] [in m. €] 7.3% 4.6% 7.0% 6.6% • Revenue declined by -10.4% • Recovery of sales in HY2 of 607.4 +4.6% vs. 2019 and strong 544.5 recovery vs. HY1 (-22.8%) • Sig
Slide 15: Successful financial transactions in a difficult environment
Successful financial transactions in a difficult environment In addition to a scheduled refinancing, 2020 was dominated by liquidity protection measures Early ONE GRAMMER. Way of Working: refinancing Cross-functional team behind the scenes and increase of syndicated loan EUR 150 million and refinanc
Slide 16: Solid liquidity position and medium- to long-term financing
Solid liquidity position and medium- to long-term financing Liquidity headroom increased and equity strengthened on a sustainable basis FREE CASH FLOW NET FINANCIAL DEBT EQUITY [in m. €] [in m. €] [in m. €] 23% 22% • Strong free cash flow generation in HY2 with EUR 70.5 million 342.2 302.2 • Repayme
Slide 17: Protecting our employees was - and still is - a top priority
Protecting our employees was - and still is - a top priority for us We took immediate action and quickly implemented protective measures Health & Safety • Comprehensive hygiene concepts • Provision of mouth-nose protection masks • Enhanced mobile working
Slide 18: A strong global footprint is the decisive determinant of success
A strong global footprint is the decisive determinant of success Footprint optimization by consolidation and competence concentration measures AMERICAS EMEA APAC • 1 plant closure by Q2 2021 • 3 plant closures by Q3 2021 • 1 plant closed in Q3 2020 • Optimization supply chain • 2 new plants in Ningb
Slide 19: Rapid reaction to reduced workload
Rapid reaction to reduced workload Short-time and furloughs, reduced number of employees in a socially acceptable way EMPLOYEES [average number, without temps] APAC; • Number of employees adjusted to 1.267 reduced workload -4.8% 14,910 Americas; • Regional differences taken into 4.587 2019 14,192 EM
Slide 20: Investments focused on key projects and future business
Investments focused on key projects and future business Leads to a significant decrease compared to the previous year in EMEA and AMERICAS INVESTMENTS [in m. €] APAC; • Significant reduction of investment 7.970 spending by -36.9% 132.8 Americas; 41.963 • Regional developments taken into 2019 EMEA;
Slide 21: Strategy to recover and grow
Strategy to recover and grow THREE MAIN GOALS • Strengthen and grow in the regions • Review & enhance product portfolio • Broaden customer base
Slide 22: Enhance product portfolio I
Enhance product portfolio I PURE – FREEDOM TO MOVE • Trend towards more individuality • Modular and adjustable interior elements • Lightweight and sustainable materials
Slide 23: Enhance product portfolio II
Enhance product portfolio II INNOVATING THE CABIN INTERIOR • Trend towards more individuality • Integration of E/E interfaces • Excellence in Fit and Finish
Slide 24: Enhance product portfolio III
Enhance product portfolio III NEW SEAT-SERIES FOR URBAN MOBILITY • Attractive and modular design • Lightweight construction • Sustainable materials
Slide 25: Broaden customer base
Broaden customer base EXCITE EXISTING AND ATTRACT NEW CUSTOMERS WITH • Innovation • Sustainability • Global & local support
Slide 26: Outlook 2021
a Outlook 2021 NG GRAMMER
Slide 27: Outlook 2021: Revenue and earnings growth
Outlook 2021: Revenue and earnings growth Significant increase of Growth of revenue to operating EBIT to around around EUR 1.8 billion EUR 65 million (2020: EUR (2020: EUR 1.7 billion)* -11.7 million)* *This outlook assumes that the global economy and political environment will develop in a stable m
Slide 28: Revenue and EBIT: Preliminary Q1 2021
Revenue and EBIT Preliminary figures for the first quarter of 2021 confirm positive trend REVENUE EBIT OPERATING EBIT [in m. €] [in m. €] [in m. €] -0.5% 4.5% 0.1% 4.5% • 8 % increase in revenue compared to Q1 2020 454.9 ~490.0 • Continued high demand in both segments, especially in the APAC and EME
Slide 29: Q&A Session
Q&A Session NG GRAMMER
Slide 30: Legal disclaimer
GRAMMER Group Legal disclaimer By attending the presentation to which this document relates or by accepting this document and not immediately returning it, you agree to be bound to the following limitations: This presentation and the topics addressed therein have been compiled for discussion purpose
Slide 31: Thank you for your attention
Thank you for your attention. We deliver what matters. Contact Investor Relations Tanja Bücherl Phone: +49 9621 66 - 2113 E-mail: tanja.buecherl@grammer.com
Slide 32: Annexes
% GRAMMER
Slide 33: Key figures
Key figures [IFRS, in € million] 2020 2019 Q4 - 2020 Q4 - 2019 Chg. Group Revenue 1,710.7 2,038.5 513.2 488.9 5.0% EBITDA 41.7 159.8 24.5 35.2 -30.4% EBITDA Margin in % 2.4 7.8 4.8 7.2 -2.4%-points EBIT -46.1 74.5 1.1 12.6 -91.4% EBIT Margin in % -2.7 3.7 0.2 2.6 -2.4%-points Operating EBIT -11.7 77
Slide 34: Financial Calendar 2021
Financial Calendar 2021 Analyst Conference Fiscal Year 2020 34 © GRAMMER AG