GRAMMER AG — Investor Presentation 2017

Mar 15, 2017

Investor Presentation

March / April 2017

1GRAMMER at a Glance

2Strategic Roadmap for Profitable Growth & Value Generation

3Strategic Partnership GRAMMER & Ningbo Jifeng

4Outlook 2017

AAppendix

GRAMMER at a Glance

GRAMMER GROUP – KEY FACTS

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Leading global player in the automotive and commercial vehicle industry

Revenues by product segment (FY 2016)

GRAMMER GROUP – GLOBAL FOOTPRINT

Global production and R&D network on 4 continents

1

GRAMMER GROUP – LONG-TERM GROWTH1

Strong track record of global revenue growth

GRAMMER GROUP – KEY FIGURES 20161

2016 performance proofs success of long-term profitable growth strategy

Highlights 2016

• Highest earnings in company history & 6th straight year with new sales record
• Group revenue climbed by 19% to 1.7 billion €, mainly driven by Automotive division
• 71% increase in EBIT to 73 million € (2015: 43)
• EPS improved by 90% to 4.01 € (2015: 2.10)
• Record dividend of 1.30 € / share proposed
• Share price +70% in 2016, #1 in SDAX-index

GRAMMER AG – SHARE PRICE DEVELOPMENT

Management has strongly increased shareholder value

GRAMMER share price in €2030405060Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17

Selected Broker Recommendations

1

Br ok er	Da te	Cu nt Re rre co mm	Cu nt TP rre ( €)
Ba nk ha La us mp e	2-M 17 ar-	Ho ld	52 .0
DZ Ba nk	-Fe b-1 22 7	Bu y	65 .0
La nd ba nk BW es	15 -Fe b-1 7	Ho ld	60 .0
Ba ad He lve er- a	14 -Fe b-1 7	Ho ld	55 .0
Mo nte g a	14 -Fe b-1 7	Ho ld	50 .0
Wa rbu Inv est nt rg me	9-F eb -17	Bu y	63 .0
Qu irin Ba nk	1-F eb -17	Bu y	62 .0
Me dia n			60 .0

Top 5 Shareholders

Ha log *	1 0. 2 2 %
Ca de * sc a	1 0. 0 0 %
D im ion l en s a	4. 9 9 %
O l d M l P lc tu u a	3. 0 7 %
Un ion Inv tm t es en	3. 0 % 7
Ow Tr S ha n ea su ry re s	2. 8 6 %
*) Co ies d b Ha mp an ow ne y	fam sto ily r

Basic Share Data

I S I N	D E 0 0 0 5 8 9 5 4 0
/ Co W K N de	/ G 5 8 9 5 4 0 M M
Nu be f s ha m r o re s	1 1, 5 4 4, 6 7 4
Ma ke t c r ap [ Ma r 2 0, 20 17]	6 2 5 € i l l ion m
Av d ing l. ( tra e. vo Xe ) tra	ha / da 7 0, 0 0 0 s re s y
Av d ing l. ( tra h.) e. vo all exc	/ 1 1 0, 0 0 0 ha da s re s y
In de S D A X / D A x	X Se Au b i les to to c r m o

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 Jifengsupports continuation of GRAMMER'ssuccessful 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/passenger

² 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

Reduction of footprint costs combined with improved cost base will generate better incremental profits from higher volumes

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 ca. 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 a u 2 0 1 6	F t o r e c a s 2 0 1 7
E u r o p e	3 % +	2 % +	E u r o p e
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 urc e: n. ,	20 17

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

Corporate Overview

Company Description

• Ningbo Jifeng specializes in automotive headrest assembly, armrest assembly, headrest stems and door stems
• Main products consist of passenger car seat headrests, headrest struts, seat armrests and other automotive seating components
• Its products are mainly used in the passenger car industry
• Main customers include Lear, Adient (formerly Johnson Controls) and Faurecia
• Production facilities in China (Ningbo, Changchun, Shenyang, Wuhan, Chengdu, Liuzhou, and Guangzhou) and in CeskáLípa, Czech Republic, with a total of ~2,600 employees

Revenue Development

Top CustomersSeat ManufacturersCar Manufacturers

GRAMMER GROUP – INFORMATION ON NINGBO JIFENGA

Overview of the Chinese automotive market

Market Key Facts

• Largest market world-wide for commercial vehicles & cars
• Strong forecast volume growth in seating and interiors market
• Increasing wealth and economic growth driving demand for greater content per vehicle

China Automotive Interior Market (07A–30E)

Volume (MM Units)

China Light Vehicle Sales (10A-22E)

Seating Markets: Size, Growth, Content/Vehicle

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

GRAMMER GROUPLegal disclaimer

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