GRAMMER AG — Investor Presentation 2019

Nov 12, 2019

ON THE MOVE

Presentation First Nine Months 2019

Amberg, November 12th, 2019

GRAMMER GROUP – Q3/2019 Highlights

Summary

• Group revenue increased by 14% to € 1.5 billion supported by growth in both segments
• Commercial Vehicles Segment increased revenue to € 475 million and Automotive Segment growing to € 1,112 million (mainly due to the TMD acquisition)
• EMEA remains largest region for GRAMMER with revenues of € 864 million, Americas more than doubled to € 457 million. APAC increased slightly to € 228 million despite weaker market conditions in the world's largest vehicles market China
• Operating EBIT at EUR 59.2 million (or 3.8%) slightly above the previous year
• Global efficiency improvement programs initiated in combination with review of strategic priorities
• Joint Venture Agreement signed with FAWSN Group, Changchun (China)
• Slight adjustment of full year outlook: GRAMMER Group expects revenues of around € 2 billion in the financial year 2019 (previously around € 2.1 billion). Operational EBIT margin expected at 3.8% for the full year 2019 (previously above 4.1%).

Solid development in challenging markets

EBIT level at 61.9 € m. and EBIT margin of 4.0%

Operating Profitability at 59.2 € m. with lower operating EBIT margin of 3.8%

Positive development of Net Profit and Earnings per share

Balance sheet influenced by acquisition financing of TMD

High investments to support future business and Technology Center

Headcount increase driven by integration of TMD

COMMERCIAL VEHICLES – DEVELOPMENT 01-09 2019

CV business continued to grow, Q3/19 influenced by exceptional one-off effects

• was more pronounced than expected
• Relocation costs, production ramp-ups & product mix resulted in weaker Q3 results

AUTOMOTIVE – DEVELOPMENT 01-09 2019

Positive development of Automotive business due to TMD acquisition

EMEA revenues in line with challenging market conditions in the automotive industry

• m., EBIT in 01-09 2019 was higher than previous year with EBIT margin at 3.1%
• Positive contribution from TMD compensated the effects of a weaker automotive market in EMEA

GRAMMER GROUP – FURTHER GROWTH IN CHINA

Joint Venture Agreement with FAWSN signed on November 5th 2019

GRAMMER GROUP – FURTHER GROWTH IN CHINA

Overview of the Chinese automotive market

Worldwide car production in 2018 [in %] Major car manufacturers in China [2018 Passenger car production, in total 26 million cars] 6.9 3.5 3.2 1.7 1.6 1.6 1.1 0.8 0.8 0.8 SAIC Dongfeng FAW Changan Geely GAC Great Wall BAIC Beijing-Hyundai Brilliance 23% 21% 29% 27% Europe Americas China ROW

GRAMMER GROUP – FURTHER GROWTH IN CHINA

Highlights of the Joint Venture Agreement with FAWSN Group

Joint Venture between GRAMMER AG and FAWSN Group Co. Ltd.

• Important milestone for further growth in the world's largest automotive market achieved
• GRAMMER to increase its market share through this affiliation with the 3rd largest OEM in China
• Access to several new customers for the product range from our Automotive Segment
• Additional platform for the introduction of Functional Plastic's products into the Chinese market
• Use of existing GRAMMER infrastructure in Changchun for the joint venture's start-up phase
• Targeted customers: FAW CAR, FAW-JIEFANG, FAW-VW and FAW-TOYOTA

GRAMMER GROUP – MARKET OUTLOOK 2019

Mixed development in regional passenger car & commercial vehicle markets

		Eu ro p e	U S A	Br i l as	C h ina	W l d or
W l dw i de du ion t or ca r p ro c	So IH S 1 0 /20 19 urc e:	-4 %	-4 %	-3 %	-9 %	-6 %
W l dw i de k p du ion tru t or c ro c	So S 0 IH 7/2 01 9 urc e:	-0 4 %	3 % +	1 3 % +	-1 4 %	-5 %
Ag icu l l m h ine tu r ra ac ry	So Jo hn De 08 /20 19 urc e: ere	Fla t	Fla t	Fla 5% t to up	Fla t to lig ht ly do s wn
	So A G C O /20 10 19 urc e:	Fla t	Fla t	Do ~1 0% wn
Co ion h ine tru t ns c m ac ry	So Ca illa r 0 7/2 01 9 ter urc e: p	dy de Ste a nd ma	Str g de on nd ma	S low to rec ov er	Fla t, h ide t ts g row ou o f C hin a
Fo k l i f ts r	So Ju he inr ic h 1 1/2 01 9 urc e: ng	La ing d st an ice b le t no a de line c			Ma rke h t g t row wit h on a p ar he iou t p rev s ib le y ea r p os s	La ing d st an ice b le t no a de line c

GRAMMER GROUP – SALES & EBIT OUTLOOK 2019

More cautious full year outlook

• • GRAMMER expects total sales of around EUR 2.0 billion (previously around EUR 2.1 billion) for the year 2019.
• • The Automotive Segment will benefit from last year's TMD acquisition and further organic growth in North America, which more than offsets the market decline in Europe.
• • The Commercial Vehicles Segment will continue to record a slight growth compared with the previous year despite a weaker third quarter.
• • We expect the GRAMMER Group to achieve a good EBIT in absolute terms, which will be significantly higher than the EBIT of EUR 48.7 million recorded in the fiscal year 2018.
• • The operating EBIT margin (adjusted for exceptional and currency effects) for 2019 as a whole will be at the current level of 3.8% (previously above 4.1%).

Important note:

The outlook for the full year 2019 is based on the current forecasts for the global economy as well as our main markets and customers and assumes a constant currency environment. Recent developments with respect to trade restrictions as well as mutually imposed retaliatory customs tariffs could have a negative impact on the sales of our customers and may leave noticeable traces on future earnings.

ON THE MOVE

Backup Information

Key Figures 01-09 2019

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

GRAMMER AG

Share price development

Selected Broker Recommendations

ke Bro r	Da te	Cu nt Re rre co mm	Cu nt rre ( ) TP €
de lve Ba r H a e a	14 -M 19 ay-	l d Ho	39 .0
Ba k ha Lam n us pe	11 -N -19 ov	Bu y	43 .0
k DZ Ba n	13 -Au 19 g-	l d Ho	36 .0
bu MM W ar rg	15 -M 19 ay-	l d Ho	36 .0
irin Qu	25 -Se t 1 9 p	l l Se	26 .0
d do O BH F	13 -Au 19 g-	l d Ho	41 .0
Co nse nsu s

Top Shareholders

Inv to es r	in % *
J iy Au Pa ** to ts e r	8 4. 2 3 %
Ow ha tre n as ur s re s y	2. 6 2 %
Fr F loa ( 3 % ) t ee <	1 3. 1 5 %
*) Per e b d o n 1 2, 607 tag cen ase ,	121 ting rig hts vo
f G **) Ass oci ate d c RA om pan y o r N ing bo Jife tne par ng	MM ER 's s trat ic eg

Basic Share Data

S I I N	D E 0 0 0 5 8 9 5 4 0
W K N / Co de	5 8 9 5 4 0 / G M M
Nu be f s ha m r o re s	1 2, 6 0 7, 1 2 1
Ma ke t c [ Se ] r ap t 30 20 19 p ,	i l l ion 4 1 0 € m
Av da i ly d. lum 2 0 1 9: tra e. vo e	4, 0 0 0 s ha re s

Financial key figures 5-year overview

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

IR Contact

Investor Relations Contact

Boris Mutius Head of Investor Relations, Communications, Marketing, CSR

• Phone: +49 (0)9621 66 2200
• Fax: +49 (0)9621 66 32200
• Email: investor-relations@grammer.com
• Internet: www.grammer.com/investor-relations

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