GRAMMER AG — Investor Presentation 2017

Mar 29, 2017

Fiscal Year 2016 Analyst Press Conference

Frankfurt, Germany29 March 2017

• 1. Highlights 2016
• 1. GRAMMER Divisions Fiscal Year 2016
• 1. GRAMMER Group Fiscal Year 2016
• 1. GRAMMER Strategy For Profitable Growth and Value Creation
• 1. Strategic Cooperation with Ningbo Jifeng
• 1. Outlook 2017

Highlights2016

GRAMMER Group - Highlights 2016

• Generated €1.7 Bn in sales, achieving record sales in the 6th consecutive year
• Increased Group EBIT by 71% to €73.0 MM
• Net income almost doubled to €45.2 MM
• Proposed record dividend of €1.30 per share
• GRAMMER stock increased by +74% in 2016, #1 performing SDAX stock in 2016
• Smooth and successful integration of former REUM-Group
• Further increase in R&D performance with a line-up of several innovation projects

GRAMMER GROUP – HIGHLIGHTS 2016Share Price Increased by +74%, Best Performing SDAX Stock in 2016

GRAMMER Share Price and SDAX Performance Index [31/12/2015 = 100%]

GRAMMERAutomotive

Fiscal Year 2016

GRAMMER AUTOMOTIVE – FISCAL YEAR 2016

China as Auto Production Growth Driver. Strong Growth of Premium OEMs

GRAMMER AUTOMOTIVE – FISCAL YEAR 2016

Very Positive Development of Sales and Profitability

EBIT and EBIT Margin Development 2012 - 2016[€ MM and %] Sales Development 2012 - 2016[€ MM] 30.5 33.1 28.923.842.54.3% 4.1%3.2%2.4%3.3%2012 2013 2014 2015 2016711.1813.3911.61,008.11,270.82012 2013 2014 2015 2016YoY +26%Growth since 2012: 80% [CAGR 16%]YoY +79%Growth since 2012: 40% [CAGR 9%]

GRAMMERSeating Systems

Fiscal Year 2016

GRAMMER SEATING SYSTEMS – FISCAL YEAR 2016

China Strong – Continued Weakness in Brazil. Declines in Truck & Agriculture

2016 Volume and Sales of Selected OEMs[% growth vs. LY]

GRAMMER SEATING SYSTEMS – FISCAL YEAR 2016

EBIT Margin Above 8% in 2016 Despite Difficult Market Environment

Copyright 2017 GRAMMER AG – Presentation Fiscal Year 2016

GRAMMERGroup

Fiscal Year 2016

Strong Growth And Substantial Increase in Profitability in 2016

Copyright 2017 GRAMMER AG – Presentation Fiscal Year 2016

Earnings Per Share Nearly Doubled. Proposal For Record Dividend

Higher Equity and solid Equity Ratio prove financial strength

Debt and Gearing

Copyright 2017 GRAMMER AG – Presentation Fiscal Year 2016

Higher Investments for Growth and Innovations

Investments and Investments Ratio 2012 – 2016[Excluding M&A, € MM, % of sales]

R&D Expenses and R&D Sales 2012 - 2016[€ MM]

40801201602012 2013 2014 2015 2016Total R&D Expenses*R&D Sales€ MM*) Project-based R&D Costs and Expenses+120% Increase in R&D Expenses* since 2012+180% Increase in R&D Salessince 2012

Significant Cash Flow Improvements in 2016

Strategic Roadmap forProfitable Growth & Value Generation

GRAMMER GROUP – ON THE MOVE2

Our strategic roadmap for driving profitable growth & value generation

Driving Global Growth

1

2Driving Innovations

3Driving Strategic Development

4Driving Profitable Growth

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 – DRIVING GLOBAL GROWTH2

GRAMMER to continue outpacing market growth

GRAMMER GROUP – DRIVING GLOBAL GROWTH2

Impressive revenue growth to >2.2 billion € by 2021 expected

Group Revenue (IFRS) in € billion – Strategic Development until 2021e

GRAMMER GROUP – DRIVING INNOVATIONS2

Business model disruption proof, with low risk execution

GRAMMER GROUP – DRIVING INNOVATIONS2

Development focus secure our innovative leadership in interior & seating

HMI, FunctionalSurfaces & Ambient Lighting

Comfort &Ergonomics + Health Solutions

Elegant & LuxuriousAppearance

Digital Interfaces& Sensors

Light Weight and"Green" Materials Active & PassiveSafety

Interior as main differentiation factor for the OEM¹

Interior defines well-being and comfort of driver/passenger² Massive upgrade & expansion of interior functionality ³

Superb comfort & luxurious appearance

Optimized ergonomics and functionality Intuitive HMIs on functional surfaces

Genius Cab – innovative cabin interior

Scientific research for comfort & safety

Intelligent interior for all driving situations

GRAMMER GROUP – DRIVING CORPORATE DEVELOPMENT2

Focused M&A strategy to enhance product portfolio, technology & profitability

GRAMMER's M&A History

2 0 1 1	E i A E l i B l i t e c r o n c s, e g u m
2 0 1 2	N C h R b l i t e c e c, z e c e p u c
2 0 1 3	C J V J i Y h h i a n g s a, n a u u u
2 0 1 5	G G R & P l d e m r o p, e r m a n o a n u u y
2 0 1 6	J V S h i, C h i a a n x n a

1

Commercial Vehicles (Offroad) Automotive (Headrest) Commercial Vehicles (Truck) Automotive (Consoles)Commercial Vehicles (Truck)

Expansion of electronic know-howAdditional safety technologiesEntry into Chinese truck marketExpansion of product & technologySecure growth in Chinese truck market

Successful M&A transactions and acquisitions in the past in all core product segments

Larger M&A DealsPurchase price> €500 million GRAMMER's M&A Transaction ScopeMidsize M&A DealsPurchase price€100 to 500 millionSmaller M&A DealsPurchase price< €100 million 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 investment

GRAMMER GROUP – DRIVING PROFITABLE GROWTH2

Lower footprint costs, better cost base and volume impact drive EBIT

Performance in 2016 sets base for further strong profitability improvement

Main EBIT driver Seating Systems Division:

Reduction of Brazilian loss situation and slight volume improvement in offroad markets will result in margin upside

GRAMMER GROUP – DRIVING PROFITABLE GROWTH2

Best-in-class growth among peers, profitability in line with strong potential

GRAMMER operational performance vs. interior & seating peers

*) Peer divisional metrics exclude corporate costs

GRAMMER revenues and profitability roadmap by product segment

FutureEBITDrivers Commercial Vehicles: Recovery of profitable market segments. Higher value due to functional (e.g. electronics) integrationInterior Components: Further synergies with GRAMMER Group. Global growth within GRAMMER's existing infrastructureConsoles: Higher maturity of plants & products. Higher R&D efficiency and higher value due to functional integrationHeadrests: Ongoing consequent cost optimization & production transfers. Plus: active portfolio management (JV China / M&A)

Strategic Partnership GRAMMER & Ningbo Jifeng

GRAMMER GROUP – STRATEGIC PARTNERSHIP NINGBO JIFENG3

Highlights & core elements

Compelling industrial logic & value creation potential due to complementary geographic focusand product offering¹

Subscription of 60 million € mandatory convertible bond by Ningbo Jifeng's associated company, representing c.9.2% of shares outstanding and enlarges the shareholder base of GRAMMER ²

Reinforcement of GRAMMER's shareholder structure as Ningbo Jifeng's associated companyto become a long-term shareholder of GRAMMER AG³

Envisaged future joint venture(s) and shared projects in China and other markets between GRAMMER and Ningbo Jifeng⁴

This strategic alliance will:

• expand GRAMMER's market presence & customer penetration in the largest car market of the world
• support the continuation of GRAMMER's successful growth and innovation strategy
• help to secure GRAMMER's business relations with key customers
• secure the future growth and enhance the value of both companies

Compelling industrial logic & value creation potential

- Largest and fastest growing automotive market globally - Access to Ningbo Jifeng's supply and distribution networks - Strong product complementary creates substantial potential for cross-selling <<- Partnership underlined by Ningbo Jifeng's associated company becoming a long-term GRAMMER shareholder - Strategic partnership important to safe-guard business relationship with main customers - Ningbo Jifeng supportive of GRAMMER's strategic course and governance structures - Partnership to improve both companies access to local and internat. OEMs in China & Europe - GRAMMER's & Jifeng's products are complementary & comparable in the relevant segments - Key customers are welcoming the strategic partnership between GRAMMER & Ningbo Jifeng - Significant synergy potential combining best practices from 2 automotive suppliers - Platform for future potential joint programs and value chain optimization programs - Potential across entire value chain: R&D, procurement, manufacturing, distribution Expand GRAMMER's Presence in ChinaImprove joint competitive position of two automotive interior specialistsAmple Potential for Joint Value CreationStrengthened GRAMMER's Shareholding Structure

Outlook 2017

GRAMMER GROUP – MARKET OUTLOOK 20174

Global car & truck markets with solid growth. Brazil to recover in 2017

Car production – Actual 2016 & Forecast 2017[in % yoy]

	A l t c u a 2 0 1 6	F t o r e c a s 2 0 1 7
E r o p e u	3 % +	2 % +	E r o p e u
S U A	2 % +	1 % -	S U A
B i l r a z	1 1 % -	1 0 % +	B i l r a z
C h i n a	1 4 % +	3 % +	C h i n a
W l d o r	% 5 +	2 % +	W l d o r
So IHS Fe b. 20 17 urc e: ,			So IHS Ja 20 17 urc e: n. ,

Truck production – Actual 2016 & Forecast 2017[Trucks >6t, in % yoy]

	A l t c u a 2 0 1 6	F t o r e c a s 2 0 1 7
E u r o p e	3 % +	1 % +
S U A	1 1 % -	4 % +
B i l r a z	2 0 % -	1 0 % +
C h i n a	2 4 % +	% 7 +
W l d o r	6 % +	4 % +

xxx^^Agricultural market outlook 2017 by our main customers

x x x	E u r o p e	N h A i t o r m e r c a	S h A i t o u m e r c a
J h D * o n e e r e	0 % 5 % t o -	5 % 1 0 % t o - -	1 5 % 2 0 % t + o +
G C O G A ** r o u p	0 % 5 % t o -	5 % 1 0 % t o - -	1 0 % +

Source: *) John Deere Q1 2017 (17.02.2017) **) AGCO Group Q4 2016 (07.02.2017)

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 expected in 2017

Potential risk in case of change-of-control intended by investment company of Hastor family:

• Minority shareholder Cascade International Investment GmbH is seeking a change of control inGRAMMER AG's currently independent governance bodies
• If successful, this potential change of control could have an adverse effect on customer relations
• In this case GRAMMER cannot exclude the possibility of existential risks to future order intake

Appendix

GRAMMER GROUP – APPENDIXA

Financial calendar and IR contact

i i C F l l d 2 0 1 7 n a n c a a e n a r		I t n v e s o	i C R l t t t r e a o n s o n a c
I i M t t n e r m a n a e m e n		R l f H a o	p p e
g S Q / 1 2 0 1 t t t 7 a e m e n s	M 1 2 0 1 5 7 a y ,	V P Inv t e s M ke ing t a r	Re la io C ic io t t o r ns o m m u n a ns , , S & ic Pr du P la ing t t t ra e g o c nn
G A l l M i t n n a e n e r a e e n g u	M 2 4 2 0 1 7 a y ,
		P h o n e :	( ) 4 9 0 9 6 2 1 6 6 2 2 0 0 +
Q / I i R 2 2 0 1 t t 7 n e r m e p o r	A 0 9 2 0 1 t 7 g s u u ,	F a x :	( ) 4 9 0 9 6 2 1 6 6 3 2 2 0 0 +
		E i l m a :	@ i l i t t n v e s o r- r e a o n s g r a m m e r. c o m
I i M t t n e r m a n a g e m e n S Q / 3 2 0 1 t t t 7 a e m e n	N b 1 3 2 0 1 7 o e m e r v ,	I t t n e r n e	/ i l i t t : w w w g r a m m e r. c o m n v e s o r- r e a o n s

GRAMMER GROUP – APPENDIXA

Key figures full year 2016 and Q4 2016

[ I F R S i € i l l i ] n m o n ,	1- 1 2 2 0 1 6	5 1- 1 2 2 0 1	C h g	Q 4 2 0 1 6	Q 5 4 2 0 1	C h g
G R r o u p e v e n u e s	1, 6 9 5 5	1, 4 2 5 7	1 8 9 % +	4 3 0 2	3 6 9 7	1 6 4 % +
E B I T D A E B I T D A M i a r g n -	1 2 0 2 7 1 %	8 3 2 5 8 %	4 4 5 % 1. 3 % P -	3 5 0 8 1 %	2 4 3 6 6 %	4 4 0 % 1. 5 % P -
E B I T E B I T- M i a r g n	7 3 0 4 3 %	4 2 7 3 0 %	7 1. 0 % 1. 3 % P -	2 3 4 4 % 5	1 3 0 3 % 5	7 9 0 % 1. 9 % P -
O i E B I T t p e r a n g O i E B I T- M i t p e r a n g a r g n	6 8 1 4 0 %	3 9 0 2 % 7	7 4 6 % 1. 3 % P -	2 0 6 4 8 %	1 2 3 3 3 %	6 7 5 % 1. % P 5 -
P f i f t t t r o a e r a e s x S E P i € n	4 5 2 4 0 1	2 3 8 2 1 0	8 9 9 % 9 1. 0 %	1 9 6 1. 7 4	7 1 0 6 3	1 7 6 1 % 1 7 6 2 %
T l A t t o a s s e s E i t q u y E i R i t t q a o u y -	1, 0 5 0 6 2 7 1. 2 2 6 %	9 9 2 1 2 5 3 4 2 6 %	5 9 % 7 0 % P 0 % -	1, 0 5 0 6 2 7 1. 2 2 6 %	9 9 2 1 2 5 3 4 2 6 %	5 9 % 7 0 % P 0 % -
N F i i l D b t t e n a n c a e G i R i t e a r n g a o	1 3 9 1 1 % 5	1 5 5 5 6 1 %	1 0 5 % - 1 0 % P - -	1 3 9 1 1 % 5	1 5 5 5 6 1 %	1 9 5 % 1 0 % P -
C ( / M & A ) a p e x w o D i i t e p r e c a o n	6 2 5 4 7 2	4 9 7 4 0 5	1 3 % 7 1 6 5 %	2 2 1 1 1. 6	2 2 9 1 1. 3	3 % 5 - 2 7 %
E l ( h- d ) t m p o e e s m o n e n y	1 2 2 5 0 ,	1 1, 3 9 7	7 5 %	1 2 2 5 0 ,	1 1, 3 9 7	7 5 %

GRAMMER GROUP – APPENDIXA

Financial key figures 5-year overview

S [ I F R i € i l l i ] n m o n ,	2 0 1 6	2 0 1 5	2 0 1 4	2 0 1 3	2 0 1 2
G R r o p e e n e u v u	1, 6 9 5 5	1, 4 2 5 7	1, 3 6 9 5	1, 2 6 5 7	1, 1 3 3 0
E B I T D A E B I T D A M i a r g n -	1 2 0 2 7 1 %	8 3 2 5 8 %	9 3 7 6 9 %	9 2 3 7 3 %	8 1 7 6 9 %
E B I T E B I T- M i a r g n	3 0 7 4 3 %	4 2 7 3 0 %	5 7 0 4 2 %	5 8 0 4 6 %	4 9 0 4 3 %
P f i f t t t r o a e r a e s x S E P i € n D i i d d / S h i € v e n a r e n	4 2 5 4 0 1 1. 3 0 *	2 3 8 2 1 0 0 7 5	3 3 6 3 0 9 0 7 5	2 9 6 2 6 7 0 6 5	2 6 8 2 3 8 0 0 5
T l A t t o a s s e s E i t q u y E i R i t t q a o u y -	1, 0 5 0 6 2 7 1. 2 2 6 %	9 9 2 1 2 5 3 4 2 6 %	8 3 6 5 2 3 1. 8 2 8 %	6 6 0 7 2 2 4 7 2 9 %	6 6 8 8 2 1 0 3 3 1 %
N F i i l D b t t e n a n c a e G i R i t e a r n g a o	1 3 9 1 1 % 5	1 5 5 5 6 1 %	8 6 7 3 % 7	9 3 2 4 1 %	7 6 5 3 6 %
C ( / ) M & A a p e x w o D i i t e p r e c a o n	5 6 2 4 7 2	4 7 9 4 0 5	5 1. 5 3 6 7	4 6 8 3 4 3	3 9 0 2 9 1
E l ( D ) 3 1 m p o y e e s e c. )	1 2 2 5 0 ,	1 1, 3 9 7	1 0 7 0 0 ,	1 0 0 8 2 ,	8 6 2 0 ,

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