grammer ag presentation cordonnier baader … · copyright 2017 grammer ag –baader investment...
TRANSCRIPT
Copyright 2017 GRAMMER AG – BAADER INVESTMENT CONFERENCE 2017 Page 2September 21, 2017
GRAMMER Group at a GlanceGRAMMER Group at a Glance1
Strategic Roadmap for Profitable Growth & Value GenerationStrategic Roadmap for Profitable Growth & Value Generation2
GRAMMER GROUP – INVESTOR PRESENTATIONContent
2017 AGM Summary & Post-AGM Events2017 AGM Summary & Post-AGM Events3
Financial Highlights H1-2017 & Outlook FY 2017Financial Highlights H1-2017 & Outlook FY 20174
Copyright 2017 GRAMMER AG – BAADER INVESTMENT CONFERENCE 2017 Page 4September 21, 2017
GRAMMER GROUP – KEY FACTSLeading global player in the automotive and commercial vehicles industry
1
Revenues by product segment (FY 2016)Revenues by product segment (FY 2016)Automotive* Commercial Vehicles*
Group revenues by region and division (FY 2016)Group revenues by region and division (FY 2016)
Offroad58%
Truck26%
Others8%
Railway8%
Total: € 1.3 billion Total: € 0.5 billion
by region by division
Automotive73%
CommercialVehicles27%
EMEA70% APAC
15%
Americas15%
Total: € 1.7 billion Total: € 1.7 billion
Key OEM customersKey OEM customers
Automotive Commercial Vehicles
Consoles40%
InteriorComponents 10%Others 13%
Headrests37%
Key product segmentsKey product segmentsAutomotive Commercial Vehicles
Headrests
Consoles & Armrests
Interior Components
Offroad Seats
TruckSeats
Railway Seats
*) Group = Automotive + Commercial Vehicles - Consolidation
Copyright 2017 GRAMMER AG – BAADER INVESTMENT CONFERENCE 2017 Page 5September 21, 2017
Production
GRAMMER GROUP – GLOBAL FOOTPRINTGlobal production and R&D network on 4 continents
1
Location with R&D activities
AmericasLocations: 8Employees: 2,000Revenue: € 250 million
EuropeLocations: 26Employees: 9,000Revenue: € 1,200 million
Asia / PacificLocations: 7Employees: 1,500Revenue: € 250 million
Copyright 2017 GRAMMER AG – BAADER INVESTMENT CONFERENCE 2017 Page 6September 21, 2017
Group revenues in € billion, 10-year developmentGroup revenues in € billion, 10-year development
0.89
1.00 1.01
0.72
0.93
1.091.13
1.27
1.371.43
1.70
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
+19%
GRAMMER GROUP – LONG-TERM GROWTHStrong track record of global revenue growth
1
Copyright 2017 GRAMMER AG – BAADER INVESTMENT CONFERENCE 2017 Page 8September 21, 2017
Driving Profitable GrowthDriving Profitable Growth4
Driving Global GrowthDriving Global Growth1
Driving InnovationsDriving Innovations2
Driving Strategic DevelopmentDriving Strategic Development3
Global setup, innovative products & strategic acquisitions build crucial basis for future success
Strategic Partnership with Ningbo Jifeng supports continuation of GRAMMER’s successful global growth
Optimized processes and structures for better cost base
GRAMMER Group is set for profitable growth and strong value generation
GRAMMER GROUP – ON THE MOVEOur strategic roadmap for driving profitable growth & value generation
2
Copyright 2017 GRAMMER AG – BAADER INVESTMENT CONFERENCE 2017 September 21, 2017 Page 9
GRAMMER GROUP – DRIVING GLOBAL GROWTHGRAMMER to continue drive growth outside of Europe in both divisions
2
Global Growth 2016 – 2021eGlobal Growth 2016 – 2021e
Global Car Production* +11%
GRAMMER Product Sales
Regional Growth 2016 – 2021eRegional Growth 2016 – 2021e
EUROPE:Car Production* +7%GRAMMER Product Sales: +10%
AMERICAS:Car Production* +8%GRAMMER Product Sales: >100%
ASIA:Car Production* +14%GRAMMER Product Sales: +30%2016 2021e
+30%
Aut
omot
ive
Aut
omot
ive
Regional Sales SplitRegional Sales Split
2021e
Global Growth 2016 – 2021eGlobal Growth 2016 – 2021e
Global Truck Production* +11%
GRAMMER Product Sales
Regional Growth 2016 – 2021eRegional Growth 2016 – 2021e
EUROPE:Truck Production* +21%GRAMMER Product Sales: +30%
AMERICAS:Truck Production* +28%GRAMMER Product Sales: +85%
ASIA:Truck Production* +2%GRAMMER Product Sales: >100%2016 2021e
+50%
Com
mer
cial
Veh
icle
sC
omm
erci
al V
ehic
les
Regional Sales SplitRegional Sales Split
2021e
EMEA60% APAC
20%
Americas20%
Total: € 1.5 billion
Total: € 0.7 billion
EMEA55% APAC
20%
Americas25%
*) Source: IHS
*) Source: IHS *) Source: IHS
Copyright 2017 GRAMMER AG – BAADER INVESTMENT CONFERENCE 2017 Page 10September 21, 2017
Interior as main differentiation factor for the OEM
1
Optimized ergonomics and functionality Intuitive HMIs on functional surfaces
Intelligent interior for all driving situationsScientific research for comfort & safetyGenius Cab – innovative cabin interior
Superb comfort & luxurious appearance
HMI, FunctionalSurfaces &
Ambient Lighting
Comfort &Ergonomics +
Health Solutions
Elegant & Luxurious
Appearance
Active & PassiveSafety
Interior defines well-being and comfort of driver/passenger
2 Massive upgrade & expansionof interior functionality
3
GRAMMER GROUP – DRIVING INNOVATIONSDevelopment focus secures our innovative leadership in interior & seating
2
Digital Interfaces& Sensors
Light Weight and“Green” Materials
Copyright 2017 GRAMMER AG – BAADER INVESTMENT CONFERENCE 2017 Page 11September 21, 2017
GRAMMER’s M&A HistoryGRAMMER’s M&A History
Successful M&A transactions and acquisitions in the past in all core product segments
Larger M&A DealsPurchase price> € 500 million
Larger M&A DealsPurchase price> € 500 million
GRAMMER’s M&A Transaction ScopeGRAMMER’s M&A Transaction Scope
Midsize M&A DealsPurchase price
€ 100 to 500 million
Midsize M&A DealsPurchase price
€ 100 to 500 million
Smaller M&A DealsPurchase price< € 100 million
Smaller M&A DealsPurchase price< € 100 million
1
2
GRAMMER’s M&A radar focused on smaller/midsize targetsto strengthen regional and innovative position
Adequate firepower of approx. € 150-250 m. for M&A strategy w/o deterioration in credit metrics & covenant breachAdditional financial headroom due to proceeds from Ningbo Jifeng’s investmentAdequate firepower of approx. € 150-250 m. for M&A strategy w/o deterioration in credit metrics & covenant breachAdditional financial headroom due to proceeds from Ningbo Jifeng’s investment
2011 EiA Electronics, Belgium
2012 Nectec, Czech Republic
2013 JV Jiangsu Yuhua, China
2015 Reum Group, Germany & Poland
2016 JV Shaanxi, China
2011 EiA Electronics, Belgium
2012 Nectec, Czech Republic
2013 JV Jiangsu Yuhua, China
2015 Reum Group, Germany & Poland
2016 JV Shaanxi, China
Commercial Vehicles (Offroad)
Automotive (Headrest)
Commercial Vehicles (Truck)
Automotive (Consoles)
Commercial Vehicles (Truck)
Commercial Vehicles (Offroad)
Automotive (Headrest)
Commercial Vehicles (Truck)
Automotive (Consoles)
Commercial Vehicles (Truck)
Expansion of electronic know-how
Additional safety technologies
Entry into Chinese truck market
Expansion of product & technology
Secure growth in Chinese truck market
Expansion of electronic know-how
Additional safety technologies
Entry into Chinese truck market
Expansion of product & technology
Secure growth in Chinese truck market
GRAMMER GROUP – DRIVING CORPORATE DEVELOPMENTFocused M&A strategy to enhance product portfolio, technology & profitability
2
GRAMMER Group growth, revenues and profitability roadmapGRAMMER Group growth, revenues and profitability roadmap
Copyright 2017 GRAMMER AG – BAADER INVESTMENT CONFERENCE 2017 Page 12September 21, 2017
GRAMMER GROUP – DRIVING PROFITABLE GROWTHHigher profitability based on cost optimization & active portfolio management
2
Commercial Vehicles: Recovery of profitable market segments. Higher value due to functional (e.g. electronics) integration
Automotive : Higher maturity of plants & products. Higher R&D efficiency and higher value due to functional integrationOngoing consequent cost optimization & production transfers. Plus: active portfolio management (JV / M&A)
Commercial Vehicles: Recovery of profitable market segments. Higher value due to functional (e.g. electronics) integration
Automotive : Higher maturity of plants & products. Higher R&D efficiency and higher value due to functional integrationOngoing consequent cost optimization & production transfers. Plus: active portfolio management (JV / M&A)
FutureEBITDrivers
EB
IT M
argi
n by
Pro
duct
Seg
men
t
2% -
4%5%
-7%
8% -
10%
GRAMMER today: EBIT ~5% GRAMMER’s future potential: EBIT ~7%
Revenue€450 MMRevenue€450 MM
CommercialVehicles
AutomotiveCommercial
VehiclesAutomotive
Revenue€1,250 MMRevenue
€1,250 MM
NewSegment
New Segment€300 MM
New Segment€300 MM
M&A+
Portfolio Management
Revenue€700 MMRevenue€700 MM
Revenue€1,200 MMRevenue
€1,200 MM
Copyright 2017 GRAMMER AG – BAADER INVESTMENT CONFERENCE 2017 Page 14September 21, 2017
GRAMMER AG – AGM & NEW SHAREHOLDER STRUCTUREStrong endorsement of GRAMMER’s successful strategy by the recent AGM
3
Annual General Meeting Summary
� All motions proposed by GRAMMER's management were supported by an impressive and large majority of shareholders
� Additionally, our shareholders rejected all resolutions & countermotions proposed by a minority shareholder
� Change-of-control intended by a minority shareholder could be fully averted
� GRAMMER continues in full independence the implementation of the Group’s successful strategy
GRAMMER AG’s strategy for profitable growth and val ue generation was confirmed andstrongly supported by shareholders with a massive v ote of confidence at the AGM
Post-AGM major developments
� JAP Capital Holding GmbH, an associated company of our strategic partner Ningbo Jifeng has increased its stake in GRAMMER to more than 20% and is the largest shareholder of GRAMMER AG
� Based on new shareholder structure, an “unfriendly” influence or change-of-control is nearly impossible
� GRAMMER’s request to appoint Prof. Dr.-Ing. Birgit Vogel-Heuser to the Supervisory Board, replacing Dr. Hans Liebler, who stepped down from the supervisory board effective June 30, 2017 has been accepted by the local court of Amberg
New shareholder structure
The impressive AGM results were not just an importa nt milestone, but even more a strong signalthat GRAMMER is continuing as a trusted and reliabl e partner to our customers
Investor in %* Source
JAP Capital Holding** 20.01% WpHG 07-2017
Cascade*** 13.41% AGM 05-2017
Halog*** 9.18% AGM 05-2017
Dimensional 4.58% WpHG 10-2016
Own treasury shares 2.62%
Free Float (<3%) 50.02%*) Percentage based on 12,607,121 total voting rights**) Associated company of GRAMMER’s strategic partner Ningbo Jifeng***) Companies owned by Hastor family
Copyright 2017 GRAMMER AG – BAADER INVESTMENT CONFERENCE 2017 Page 16September 21, 2017
Group – Revenues & Operative EBIT [in € million]Group – Revenues & Operative EBIT [in € million]
Commercial Vehicles – Revenues & Operative EBIT [in € million]Commercial Vehicles – Revenues & Operative EBIT [in € million]Automotive – Revenues & Operative EBIT [in € million]Automotive – Revenues & Operative EBIT [in € million]
Highlights 1st half-year 2017
� Revenue and operating EBIT well up on the previous year
� Operative EBIT reached 44.0 € million and operative EBIT margin increased to 4.8% (+0.7% vs. prev. year)
� IFRS results impacted by FX-valuation and exceptional expenses in connection with the change-of-control attempt
� GRAMMER firmly in its target corridor for FY 2017 operative EBIT and well on track for further sustained increase in revenue and profitability
� Order intake still weak due reluctance of main customers to award new business. Strong pickup in H2-17 necessary to secure mid-term growth expectations
Highlights 1st half-year 2017
� Revenue and operating EBIT well up on the previous year
� Operative EBIT reached 44.0 € million and operative EBIT margin increased to 4.8% (+0.7% vs. prev. year)
� IFRS results impacted by FX-valuation and exceptional expenses in connection with the change-of-control attempt
� GRAMMER firmly in its target corridor for FY 2017 operative EBIT and well on track for further sustained increase in revenue and profitability
� Order intake still weak due reluctance of main customers to award new business. Strong pickup in H2-17 necessary to secure mid-term growth expectations
H1 2017H1 2016
44.035.7
4.8%
4.1%
H1 2017H1 2016
908861
+6%
H1 2017H1 2016
22.718.6
8.5%7.4%
H1 2017H1 2016
267251
+7%
H1 2017H1 2016
28.221.3
4.3%
3.4%
H1 2017H1 2016
662635
+4%
GRAMMER GROUP – KEY FIGURES H1-2017Strong operative performance confirms successful development
4
+23%
+32% +22%
September 21, 2017Copyright 2017 GRAMMER AG – BAADER INVESTMENT CONFERENCE 2017 Page 17
1st HY Automotive order intake for new projects [life-time* revenues in € million]1st HY Automotive order intake for new projects [life-time* revenues in € million]
715
485
Plan H1-17 Act H1-17
Full-year Automotive order intake for new projects[life-time revenues* in € million]Full-year Automotive order intake for new projects[life-time revenues* in € million]
1,500
485
230
785
Plan FY-17 Act/Plan 17
To achieve order intake-plan FY-17:785 € m. order intake in H2 requiredTo achieve order intake-plan FY-17:785 € m. order intake in H2 required
H1 Act
H2 Plan
German premiumOEM
575 170
*) life-time: projected revenues generated over the entire project life-cycle (ave. 6-7 years)
Order intake H1 with German Premium OEMs**Order intake H1 with German Premium OEMs**
Deviation-405 € m. Deviation-405 € m.
Plan H1-17575 € m.
Act H1-17170 € m.
GermanPremiumOEM
*) life-time: projected revenues generated over the entire project life-cycle (ave. 6-7 years)**) German Premium OEMs: BMW, Daimler, Volkswagen Group
H1 Gap
-230 € m.
GRAMMER AUTOMOTIVE – ORDER INTAKE SITUATION 2017Order intake still weak due to reluctance of main customers
4
Copyright 2017 GRAMMER AG – BAADER INVESTMENT CONFERENCE 2017 Page 18September 21, 2017
GRAMMER Group – Outlook:
� At Group level GRAMMER forecasts an increase in revenue of around 5% over the previous year in 2017
� As communicated, a Group operative EBIT-margin of around 5% is expected in 2017
� The attempted change-of-control sought by a minority shareholder continues to have adverse effects on order intake for future projects and a full compensation might not be possible. Therefore it will be important that GRAMMER is able to win major new projects to be awarded by the premium OEMs in the second half year 2017
GRAMMER Group – Outlook:
� At Group level GRAMMER forecasts an increase in revenue of around 5% over the previous year in 2017
� As communicated, a Group operative EBIT-margin of around 5% is expected in 2017
� The attempted change-of-control sought by a minority shareholder continues to have adverse effects on order intake for future projects and a full compensation might not be possible. Therefore it will be important that GRAMMER is able to win major new projects to be awarded by the premium OEMs in the second half year 2017
GRAMMER GROUP – COMPANY OUTLOOK 20175% operative EBIT target for full year 2017 confirmed
4