GRAMMER AG — Earnings Release 2023

Aug 14, 2023

Financial Results H1 2023

August 14, 2023

GRAMMER Group's H1 2023 at a glance

H1 2023 -2.3 -45.2 -12.5 H1 2023 H1 2022 Group revenue [in EUR million] 1,172.6 1,034.6 EBIT [in EUR million] 18.5 Operating EBIT [in EUR million] 26.9 -12.3 Operating EBIT margin 2.3% -1.2% Free Cashflow [in EUR million] KPIs

• Positive revenue development in particular due to market performance in APAC and EMEA as well as in both divisions
• FX adjusted revenue also above the previous year's figure
• Strongly improved operating EBIT compared to the previous year

• APAC recovered in the current year from the burdens of the COVID-19-related lockdowns in China last year – EMEA and AMERICAS also with improved earning contributions

• FX adjusted revenue at EUR 1,188.3 million, (+14.9%)

• Automotive EUR 756.4 million (+15.3%)
• Commercial Vehicles EUR 431.9 million (+14.0%)
• Operating EBIT adjusted for:
• EUR 3.0 million restructuring costs in AMERICAS
• EUR 5.4 million negative currency effects

Capital Expenditure (H1 2023)

• Investments in new launches, replacements of machinery and the development of a new seat generation in CV
• EMEA still with highest portion of EUR 11.5 million for launching new products (i.e. new Console)
• APAC EUR 8.2 million, mainly for a painting line in Ningbo and new projects with local customers in Hefei
• AMERICAS EUR 9.0 million, equipment for CV seat production in Delphos, launching a new Console in Mexican facility

IFRS 16

H1 2022 H1 2023

• Working Capital increased to EUR 254.7 million – trade accounts receivables increased in line with revenue development
• Improved earnings before taxes and decrease in inventories led to an improvement in free cash flow, which was only slightly negative as of the reporting date

• Only slight increase of Net Debt in course of H1

• Slight decrease in equity due to

• Net profit EUR -0.3 million
• Other comprehensive income EUR -11.0 million (foreign currency conversion EUR -10.0 million)
• Improved Leverage due to increased EBITDA LTM from EUR 117.4 million to EUR 146.3 million
• Gearing slightly higher

Employees (H1 2023)

• AMERICAS +1.4% Mainly in Mexico due to new product launches
• EMEA +4.9% Mainly in Best Cost Countries; volume increase in both CV and Automotive

• APAC -0.7% Volume increase managed by temporary workers

• FX adjusted revenue at EUR 641.3 million, (+11.1%)

• Automotive EUR 331.6 million (+13.3%)
• Commercial Vehicles EUR 309.7 million (+8.9%)
• Operating EBIT adjusted for:

• EUR 2.9 million negative currency effects

• FX adjusted revenue at EUR 262.1 million, (+47.9%)

• Automotive EUR 180.3 million (+57.5%)
• Commercial Vehicles EUR 81.8 million (+30.5%)
• Operating EBIT adjusted for:

• EUR 0.6 million negative currency effects

• FX adjusted revenue at EUR 316.7 million, (-0.4%)

• Automotive EUR 252.7 million (-1.2%)
• Commercial Vehicles EUR 64.0 million (+2.9%)
• Operating EBIT adjusted for:
• EUR 3.0 million restructuring costs in the AMERICAS region
• EUR 1.4 million negative currency effects
• "Path2Profitability" (P2P) measures ongoing

Revenue

Stable revenue to around EUR 2.2 billion (2022: EUR 2.2 billion)

Operating EBIT

Operating EBIT doubles to around EUR 70 million

(2022: EUR 35.5 million)

Key lever for increasing EBIT from P2P AMERICAS project

Burdens may arise in connection with the persistently difficult macroeconomic conditions. In particular, it is expected that the sharp increase in material, energy and labor costs, lower economic growth - specifically - as well as the further development with regard to the supply bottlenecks with semiconductors could also be required to influence the economic development of the company in 2023.

Outlook 2nd half-year 2023

Events

• The renowned Construction & Survey Productivity Improvement Expo (CSPI) in Chiba, Tokyo, was the ideal place for Grammer to connect with both aftermarket and OEM customers from the important Japanese market
• New console carrier mount enhances safety and ergonomics

Exhibition CSPI in Japan Annual General Meeting

After the Annual General Meetings in 2020, 2021 and 2022 had to be held online due to Corona, it was a great pleasure for us to be able to meet each other in person again this year

Industry 4.0: IOT and AI to improve quality and efficiency of process chains in the supplier industry

GRAMMER coordinates a digitization project initiated by the German Federal Ministry for Economic Affairs and Climate Action, called AdaProQ – short for Adaptive Process Chains, which aims to increasing Production Quality and Efficiency across the supply chain of the industry.

• 35 representatives of the project partners exchange ideas at the coordinator GRAMMER at halftime
• Mid-term results show the first possible applications:
• "robust" identification method to accurately mark components within one second using a DMC code on a per-unit basis
• use of AI to adapt production machines to individual tolerances for each component

New Products

MAN TGX and TGA

• Grammer's aftermarket driver seat in Standard, Comfort and Luxury versions are now available
• Top ergonomics certified by TÜV Rheinland, excellent product design
• Luxury, Comfort and Standard versions can be quickly installed and are ideal for demanding applications

Center console: BMW 7series

• Particularly comfortable thanks to integrated heating
• Eye-catcher with elegant finish and 3D-molded real glass applications

Northstar: New railway seat concept

GRAMMER CSR Award and Diversity Week

CSR Awards recognizes the achievements of our plants in the three CSR categories

• Community
• Employees
• Environment

CSR Awards 2023 Diversity Week

• The motto of this year's global Diversity Week was "Unconscious Bias" - and Grammer has dedicated the whole year to educate the employees about biases and how best to deal with them.
• Embedded within our "Way of Working" culture that is built on trust, respect and involvement, we recognize the significance of inclusion and solution-oriented collaboration as a competitive advantage that boosts innovation.

Q&A

August 14, 2023

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 purposes only and are not intended to be a comprehensive summary of all business, financial, legal, practical and other aspects or to cover all issues relating to an investment in Grammer AG. A binding commitment will only result from a definitive and binding agreement.

This presentation does not constitute or form part of, and should not be construed as, an offer to sell or a solicitation of an offer to buy or subscribe for any securities and neither this presentation nor anything contained herein shall act as an inducement to enter into or form the basis of, or be relied on in connection with, any offer or contract or commitment whatsoever.

This presentation does not constitute an offer for sale of any securities in the United States. Neither this presentation nor any copy of it may be taken or transmitted in or into the United States of America, its territories or possessions or distributed, directly and indirectly, in the United States of America, its territories and possessions or to U.S. Persons (as such term is defined in Regulation S under the Securities Act). Any failure to comply with this restriction may constitute a violation of U.S. securities laws. Neither this presentation nor any copy of it may be taken or transmitted in or into Australia, Canada or Japan or distributed, directly and indirectly, in Australia, Canada or Japan. The distribution of this presentation in other jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions.

This presentation contains estimates, forecasts and expectations. Such estimates, forecasts and expectations are subject to risks and elements of uncertainty that could result in deviation of actual developments from expected developments. The estimates, forecasts and expectations are only valid at the time of publication and there can be no assurance that future results or events will be consistent with any such estimates, forecasts or expectations. Grammer AG does not intend to update any such estimates, forecasts or expectations and assumes no obligation to do so. Grammer AG does not assume any liability for the statements made.

Neither Grammer AG nor any of its respective directors, officers, or employees nor any other person accept – to the extent legally possible – any liability for any loss howsoever arising from any use of this presentation or its contents or otherwise in connection therewith. Please take appropriate advice before applying anything contained in these materials to specific issues or transactions.

This presentation is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on to any other person or published, in whole or in part, for any purpose. This presentation or any copy of it may not be distributed to any third party, including the media or the press.

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

Key figures H1 2023

August 14, 2023

Revenue 1,172.6 EUR million

EBIT margin 1.6%

Operating EBIT margin 2.3%

Net profit -0.3 EUR million

Free Cashflow

Equity ratio 20.0%

Key figures

	Q2 2023	Q2 2022	Q1 2023	Q1 2022	01-12 2022
Group revenue	583.5	519.1	589.1	515.0	2,158.8
Revenue EMEA	311.3	287.3	328.5	289.7	1,131.4
Revenue AMERICAS	158.4	163.9	159.5	154.1	672.5
Revenue APAC	128.6	88.1	117.4	89.1	426.7
EBIT	6.8	-11.3	11.7	-1.2	-45.0
EBIT margin (in %)	1.2	-2.2	2.0	-0.2	-2.1
Operating EBIT	13.0	-9.8	13.9	-2.5	35.5
Operating EBIT margin (in %)	2.2	-1.9	2.4	-0.5	1.6
Earnings before taxes	1.1	-14.1	3.9	-2.2	-62.8
Net profit	-3.2	-17.5	2.9	-8.0	-78.6
Total assets	1,441.9	1,511.4	1,428.9	1,518.9	1,444.6
Equity	289.1	374.9	301.3	355.8	301.1
Equity ratio (in %)	20.0	24.8	21.1	23.4	20.8
Net debt	446.3	481.6	427.1	436.8	429.3
Gearing	154.4	128.5	148.8	122.8	142.6
Capital expenditure	19.8	19.1	14.4	14.3	91.0
Free cash flow	-11.0	21.9	8.7	-12.0	31.3
Employees (number, average)	14,423	14,003	14,393	14,009	14,044