Grammer Ag · XETR:GMM
Grammer — H1 2022 Earnings Presentation
29 slides from Grammer's earnings presentation, Aug 11, 2022
Slide 1: Financial Results H1 2022
GRAMMER SOLUTIONS FOR A WORLD ON THE MOVE Financial Results H1 2022 Ursensollen, August l 11th, 2022
Slide 2: GRAMMER Group's H1 at a glance
GRAMMER Group’s H1 at a glance KPIs H1 2022 H1 2021 • Group revenue grew by 6.4% to EUR 1,034.6 million in the first half of Group revenue [in EUR million] the year thanks to a positive development in the Commercial Vehicles division (+11.9%); revenue in the Automotive division also slightly higher
Slide 3: Global market development compared to GRAMMER's performance
GRAMMER Group Global market development compared to GRAMMER’s performance AMERICAS EMEA APAC [in %] [in %] [in %] (44.0) 29.2 (13.0) (25.4)* 17.5 13.4 3.9 4.2 -0.2 -6.7 -6.3 -9.7 (-5.7) -20.6 -21.8 (-12.4) (-17.3) -39.4 Market GRAMMER Market GRAMMER Market GRAMMER Market GRAMMER Market GRAMMER Marke
Slide 4: Group Revenue / EBIT / operating EBIT (H1 2022)
Group Revenue / EBIT / operating EBIT GRAMMER (H1 2022) REVENUE EBIT OPERATING EBIT • FX adjusted revenue at EUR 996.6 million, [in EUR million] [in EUR million and %] [in EUR million and %] +2.5% • Automotive: EUR 617.6 million (-2,6%) +6.4% Marge 2.9% -1.2% 3.3% -1.2% • Commercial Vehicles EUR 378
Slide 5: Employee development by region (H1 2022)
Employee development by region (H1 2022) EMPLOYEES [Average;without temporary workers] EMEA Different developments in H1 2022: • AMERICAS +1.3% 7,352 Increase mainly due to high -1.0% 7,672 fluctuation 14,143 14,003 • EMEA -4.2% H1 2021 Solid transformation following 1,336 the volume increase in CV
Slide 6: Capital expenditure (H1 2022)
Capital expenditure (H1 2022) CAPITAL BY REGION* EXPENDITURE [in %] [in EUR million] APAC AMERICAS +8.8% 26% 33.4 22% 27% 33% 30.7 31.1 H1 2021 22.6 51% 41% EMEA *CS H1 2021: EUR 1.2 million H1 2022 *CS H1 2022: EUR 5.8 million 8.1 2.3 • Planned increase by 8.8% to EUR 33.4 million; main investments
Slide 7: Working capital, Free cashflow, Net debt
Working capital, Free cashflow ,Net debt FY on Group level WORKING CAPITAL FREE CASH FLOW NET DEBT [in EUR million] [in EUR million] [in EUR million] • Increase in working capital mainly due to the rise in trade accounts receivables and inventories, especially in EMEA • Free cashflow with 291 EUR -4
Slide 8: Equity, leverage and gearing
Equity, leverage and gearing FY on Group level EQUITY LEVERAGE GEARING [in EUR million] [in %] • Increase in equity by 8.5% mainly Margin 23.3% 24.8% driven by other comprehensive income • Equity ratio improved to 24.8% • Higher leverage due to decrease in EBITDA LTM from EUR 103.1 million to EUR 64
Slide 9: First half year 2022 of EMEA at a glance
First half year 2022 of EMEA at a glance Contrasting developments in the Automotive and Commercial Vehicles divisions • Revenue of EUR 577.0 million (+2.7%) on PY level with significant swing between divisions • Commercial Vehicles business increased by 13.0% resulting in a share of 49.3% in total r
Slide 10: H1 2022: Revenue / EBIT / operating EBIT in EMEA
H1 2022: Revenue / EBIT / operating EBIT in EMEA REVENUE EBIT OPERATING EBIT [in EUR million] [in EUR million and %] [in EUR million and %] • FX adjusted revenue at EUR 585.4 Margin 5.4% 4.3% 6.2% 4.1% million, +4.2% +2.7% • FX adjusted revenue in divisions: 577.0 • Automotive: -6.7% 562.0 • Commerc
Slide 11: First half year 2022 of APAC at a glance
First half year 2022 of APAC at a glance Significant drop in APAC due to local zero covid policy in China • Significant revenue fall of 14.2% to EUR 177.2 million • Automotive division with decrease of 12.4% caused by reduced call-offs from some customers due to COVID-19 lockdowns in Shanghai and Ch
Slide 12: H1 2022: Revenue / EBIT / operating EBIT in APAC
H1 2022: Revenue / EBIT / operating EBIT in APAC REVENUE EBIT OPERATING EBIT [in EUR million] [in EUR million and %] [in EUR million and %] • FX-adjusted revenue at EUR 163.0 million (-21.1%) Margin 15.0% 6.9% 15.0% 8.0% -14.2% • FX adjusted revenue in divisions: • Automotive: -20.6% 206.5 Commercia
Slide 13: First half year 2022 of AMERICAS at a glance
First half year 2022 of AMERICAS at a glance Full focus on stabilization and turn-around activities in the region • Strong revenue increase to EUR 318.0 million (+28.6%) • Recovery of Automotive revenues by 25.4% since H1 2021 was impacted by extended customer shutdown weeks and very volatile call-o
Slide 14: H1 2022: Revenue / EBIT / operating EBIT in AMERICAS
H1 2022: Revenue / EBIT / operating EBIT in AMERICAS REVENUE EBIT OPERATING EBIT [in EUR million] [in EUR million and %] [in EUR million and %] • FX adjusted revenue at EUR 287.1 Margin -9.5% -11.3% -9.6% -11.3% million, +16.2% • FX adjusted revenue in divisions: +28.6% • Automotive: +13.4% 318.0 •
Slide 15: Group earnings effects in a nutshell
Group earnings effects in a nutshell Profitability is heavily burdened by inflation in AMERICAS and EMEA EUR 32.4 million EUR -12.3 million Massive inflation and underutilization due to the short-term volume reductions are eroding our margins. The compensation arrangements between our customers diff
Slide 16: Outlook
OUTLOOK NG August 11, 2022 GRAMMER
Slide 17: Outlook 2022 confirmed: Revenue and earnings growth
Outlook 2022 confirmed: Revenue and earnings growth Guidance 2022 Risks arising from Growth of revenue to around EUR 2.0 billion • the war in Ukraine and ongoing corona (2021: EUR 1.9 billion) lockdowns in China as well as Operating EBIT between EUR 35 and 40 million • the inability of passing on al
Slide 18: Outlook 2022 confirmed: Bridging the gap in operating EBIT
Outlook 2022 confirmed: Bridging the gap in operating EBIT Operating EBIT 35-40 Revenue: on track [in EUR million] • 01-06 2022: EUR 1,034.6 million • Outlook FY 2022: EUR 2 billion Inflation APAC AMERICAS compensation „P2P“ Operating EBIT Operating EBIT 01-06 2022 FY 2022 August 11, 2022 Financial
Slide 19: Our results determine our success
Our results determine our success Midterm targets for Sustainability 25% 2025 Reduction of CO2-Emissions: Profitable growth Objectives & Key Results Revenue: Operating EBIT NetNet profit Innovation: Product quality: profit €2.5bn margin: > 5% ratio: > 4% ratio: RDP > 5 zero-PPM Revenue split: Delive
Slide 20: Innovation and Digitalization
Innovation and Digitalization Free-standing center console Center table • For the new BMW iX • Center table with height adjustment • sustainable, movable across lightweight, three rows of seats multifunctional, • Consistent lightweight digital construction • Use of recycled • Multifunctional plastic
Slide 21: Sustainability
Sustainability • Initiative Green Company • Reduction of CO2 emissions by at least 50% by the end of the decade • Reduction of 25% by 2025 at Group level • Silver status achieved in EcoVadis sustainability ranking • Sustainable thinking and action to become part of the corporate DNA 27.10.2021 First
Slide 22: Next events
Next events October 27, 2022 November 28-30, 2022 9M 2022 Earnings Deutsche Eigenkapitalforum August 11, 2022 H1 2022 Earnings August September October November December 2022 August 11, 2022Financial Results H1 2022 22 © GRAMMER AG
Slide 23: Q&A
Q&A August 11, 2022
Slide 24: 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 25: 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 26: Annexes
\Z GRAMMER Annexes
Slide 27: Key figures 2022
Key figures 2022 August 11, 2022
Slide 28: Key figures 2022 overview by region
Revenue Group operating EBIT Employees by region 1 Revenue by segment 2 Wert Wert 1,034.6 Average for the year -12.3 EUR million AMERICAS: AMERICAS: EUR million EUR million 4,761 318.0 APAC: APAC: EBIT margin Capital expenditure 1,483 177.2 -1.2% 33.4 EUR million Wert 14,003 Wert 1,034.6 Operating E
Slide 29: Key figures
Key figures [IFRS, in € million] Q2 2022 Q2 2021 Q1 2022 Q1 2021 2021 Group Revenue 519.6 468.8 515.0 503.7 1,903.0 EBIT -11.3 5.2 -1.2 22.6 18.9 EBIT Margin in % -2.2 1.1 -0.2 4.5 1.0 Operating EBIT -9.8 11.4 -2.5 21.0 22.8 Operating EBIT Margin in % -1.9 2.4 -0.5 4.2 1.2 Net Profit -17.5 4.8 -8.0