Grammer Ag · XETR:GMM
Grammer — Investor Presentation (March 2017)
31 slides from Grammer's investor presentation, March 2017
Slide 1: Investor Presentation March / April 2017
Investor Presentation March / April 2017
Slide 2: Content
GRAMMER GROUP – INVESTOR PRESENTATION Content 1 GRAMMER at a Glance 2 Strategic Roadmap for Profitable Growth & Value Generation 3 Strategic Partnership GRAMMER & Ningbo Jifeng 4 Outlook 2017 A Appendix Copyright 2017 GRAMMER AG - Investor Presentation March / April 2017 Page 2
Slide 3: GRAMMER at a Glance
GRAMMER at a Glance NG GRAMMER
Slide 4: Key Facts
1 GRAMMER GROUP – KEY FACTS Leading global player in the automotive and commercial vehicle industry Group revenues by region and division (FY 2016) Key OEM customers by region by division Automotive Commercial Vehicles Automotive EMEA 73% 70% APAC 15% Commercial Americas Vehicles 15% 27% Total: € 1.
Slide 5: Global Footprint
1 GRAMMER GROUP – GLOBAL FOOTPRINT Global production and R&D network on 4 continents Europe Locations: 26 Americas Asia / Pacific Employees: 9,000 Locations: 8 Locations: 7 Revenue: €1,200 million Employees: 2,000 Employees: 1,500 Revenue: €250 million Revenue: €250 million Location with R&D activit
Slide 6: Long-Term Growth
1 GRAMMER GROUP – LONG-TERM GROWTH Strong track record of global revenue growth Group revenues in € billion – 10 year development +19% 1.70 1.43 1.37 1.27 1.13 1.09 1.00 1.01 0.93 0.89 0.72 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Copyright 2017 GRAMMER AG - Investor Presentation March
Slide 7: Key Figures 2016
1 GRAMMER GROUP – KEY FIGURES 2016 2016 performance proofs success of long-term profitable growth strategy Highlights 2016 Group – Revenues & EBIT [in € million] Highest earnings in company history & 6th straight +19% +71% year with new sales record 1,696 Group revenue climbed by 19% to 1.7 billion
Slide 8: GRAMMER AG – Share Price Development
1 GRAMMER AG – SHARE PRICE DEVELOPMENT Management has strongly increased shareholder value GRAMMER share price in € 60 50 40 30 20 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Selected Broker Recommendations Top 5 Shareholders Basic Share Data Current Current Broker Date Recomm. TP (€) Halog* 10.22% IS
Slide 9: Strategic Roadmap for Profitable Growth & Value Generation
Strategic Roadmap for Profitable Growth & Value Generation
Slide 10: On the Move
2 GRAMMER GROUP – ON THE MOVE Our strategic roadmap for driving profitable growth & value generation 1 Driving Global Growth Global setup, innovative products & strategic acquisitions build crucial basis for future success 2 Driving Innovations Strategic Partnership with Ningbo Jifeng supports conti
Slide 11: Driving Global Growth
2 GRAMMER GROUP – DRIVING GLOBAL GROWTH GRAMMER to continue outpacing market growth Global Growth 2016 – 2021e Regional Growth 2016 – 2021e Regional Sales Split Global Car Production +11% EUROPE: 2021e Car Production +7% Automotive GRAMMER Product Sales GRAMMER Product Sales: +10% EMEA 60% APAC AMER
Slide 12: Driving Global Growth: Revenue to >2.2 billion € by 2021
2 GRAMMER GROUP – DRIVING GLOBAL GROWTH Impressive revenue growth to >2.2 billion € by 2021 expected Group Revenue (IFRS) in € billion – Strategic Development until 2021e >100% growth >2.2 in 10 years >30% >2.2 growth in 5 years 1.7 1.7 1.1 1.1 2011 2016 2021e 2011 2016 2021e Europe Americas APAC Co
Slide 13: Driving Innovations: Business model disruption proof
2 GRAMMER GROUP – DRIVING INNOVATIONS Business model disruption proof, with low risk execution Global Megatrends Population Growth Mobility Food Demand Urbanization Industry Megatrends Connectivity Autonomous Driving Shared Mobility Electric Vehicles Autonomous Sensors/ High Cameras/ Radar Technolog
Slide 14: Driving Innovations: Development focus
2 GRAMMER GROUP – DRIVING INNOVATIONS Development focus secure our innovative leadership in interior & seating HMI, Functional Comfort & Elegant & Digital Interfaces Light Weight and Active & Passive Surfaces & Ergonomics + Luxurious & Sensors “Green” Materials Safety Ambient Lighting Health Solutio
Slide 15: Driving Corporate Development
2 GRAMMER GROUP – DRIVING CORPORATE DEVELOPMENT Focused M&A strategy to enhance product portfolio, technology & profitability 1 GRAMMER’s M&A History 2011 EiA Electronics, Belgium Commercial Vehicles (Offroad) Expansion of electronic know-how 2012 Nectec, Czech Republic Automotive (Headrest) Additio
Slide 16: Driving Profitable Growth
2 GRAMMER GROUP – DRIVING PROFITABLE GROWTH Lower footprint costs, better cost base and volume impact drive EBIT Performance in 2016 sets base for further strong profitability improvement 2017 target already within reach EBIT Margin (2016 EBIT Margin at 4.3%) ~5% EBIT Margin 3.0% EBIT Lower foot- Br
Slide 17: Best-in-class growth among peers
2 GRAMMER GROUP – DRIVING PROFITABLE GROWTH Best-in-class growth among peers, profitability in line with strong potential GRAMMER operational performance vs. interior & seating peers 5-years Sales CAGR (2012–2016) 2016 EBIT Margin 10.6% 10.1% 7.9% ~7% 6.8% Future Potential Median: 5.7% 4.7% 5.2% 5.1
Slide 18: EBIT Profitability by Product Segment
2 GRAMMER GROUP – DRIVING PROFITABLE GROWTH Higher profitability based on cost optimization & active portfolio management GRAMMER revenues and profitability roadmap by product segment GRAMMER today: EBIT ~5% GRAMMER’s future potential: EBIT ~7% 8% - 10% EBIT Profitability by Product Segment Sales Sa
Slide 19: Strategic Partnership GRAMMER & Ningbo Jifeng
Strategic Partnership GRAMMER & Ningbo Jifeng
Slide 20: Strategic Partnership Ningbo Jifeng: Highlights & core elements
3 GRAMMER GROUP – STRATEGIC PARTNERSHIP NINGBO JIFENG Highlights & core elements Compelling industrial logic & value creation potential due to complementary geographic focus 1 and product offering Subscription of 60 million € mandatory convertible bond by Ningbo Jifeng’s associated company, 2 repres
Slide 21: Strategic Partnership Ningbo Jifeng: Industrial logic
3 GRAMMER GROUP – STRATEGIC PARTNERSHIP NINGBO JIFENG Compelling industrial logic & value creation potential << Expand GRAMMER’s Presence in China Largest and fastest growing automotive market globally Access to Ningbo Jifeng's supply and distribution networks Strong product complementary creates su
Slide 22: Outlook 2017
Outlook 2017 GRAMMER
Slide 23: Market Outlook 2017
4 GRAMMER GROUP – MARKET OUTLOOK 2017 Global car & truck markets with solid growth. Brazil to recover in 2017 Car production – Actual 2016 & Forecast 2017 Truck production – Actual 2016 & Forecast 2017 [in % yoy] [Trucks >6t, in % yoy] Actual Forecast Actual Forecast 2016 2017 2016 2017 Europe +3% +
Slide 24: Company Outlook 2017
4 GRAMMER GROUP – COMPANY OUTLOOK 2017 Further growth of revenue & profitability expected. 5% operational EBIT GRAMMER Group – Outlook: At Group level GRAMMER forecasts a moderate increase in revenue to more than 1.75 billion € in 2017 As communicated, a Group operational EBIT margin of around 5% is
Slide 25: Appendix
Appendix GRAMMER
Slide 26: Financial calendar and IR contact
A GRAMMER GROUP – APPENDIX Financial calendar and IR contact Financial Calendar 2017 Investor Relations Contact Interim Management Ralf Hoppe VP Investor Relations, Communications, Statements Q1 / 2017 May 15, 2017 Marketing & Strategic Product Planning Annual General Meeting May 24, 2017 Phone: +49
Slide 27: Information on Ningbo Jifeng: Corporate Overview
A GRAMMER GROUP – INFORMATION ON NINGBO JIFENG Corporate Overview Company Description Revenue Development Ningbo Jifeng specializes in automotive headrest assembly, € MM armrest assembly, headrest stems and door stems Main products consist of passenger car seat headrests, headrest struts, seat armre
Slide 28: Overview of the Chinese automotive market
A GRAMMER GROUP – INFORMATION ON NINGBO JIFENG Overview of the Chinese automotive market Market Key Facts China Automotive Interior Market (07A–30E) Volume (MM Units) Largest market world-wide for 186 175 commercial vehicles & cars 158 145 152 CAGR CAGR 125 135 92 (15A-20E) (15A-30E) Strong forecast
Slide 29: Key figures full year 2016 and Q4 2016
A GRAMMER GROUP – APPENDIX Key figures full year 2016 and Q4 2016 [IFRS, in € million] 1-12 2016 1-12 2015 Chg. Q4 2016 Q4 2015 Chg. Group Revenues 1,695.5 1,425.7 +18.9% 430.2 369.7 +16.4% EBITDA 120.2 83.2 44.5% 35.0 24.3 44.0% EBITDA-Margin 7.1% 5.8% 1.3%-P 8.1% 6.6% 1.5%-P EBIT 73.0 42.7 71.0% 2
Slide 30: Financial key figures 5-year overview
A GRAMMER GROUP – APPENDIX Financial key figures 5-year overview [IFRS, in € million] 2016 2015 2014 2013 2012 Group Revenue 1,695.5 1,425.7 1,365.9 1,265.7 1,133.0 EBITDA 120.2 83.2 93.7 92.3 78.1 EBITDA-Margin 7.1% 5.8% 6.9% 7.3% 6.9% EBIT 73.0 42.7 57.0 58.0 49.0 EBIT-Margin 4.3% 3.0% 4.2% 4.6% 4
Slide 31: 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