GRAMMER AG — Investor Presentation 2024

Mar 28, 2024

Financial Results FY 2023

March 28, 2024

March 28, 2024 Financial Results FY 2023 2

FY 2023

KPIs

© GRAMMER AG

GRAMMER GROUP AT A GLANCE

• 48.2 31.3 -45.0 FY 2023 FY 2022 Group revenue [in EUR million] 2,304.9 2,158.8 EBIT [in EUR million] 42.0 Operating EBIT [in EUR million] 56.8 35.5 Operating EBIT margin 2.5% 1.6% Free Cashflow [in EUR million]
• Positive revenue development in particular due to market performance in APAC and EMEA as well as in both product areas
• Strongly improved operating EBIT compared to the previous year
• APAC was driven in particular by series start-ups with Chinese OEMs, and also recovered from burdens of COVID-19-related lockdowns in China previous year
• EMEA with solid contribution in earnings
• Turnaround of AMERICAS delayed
• "Top 10 measures" initiated to boost profitability in 2024

FY 2023 GROUP REVENUE / EBIT / OPERATING EBIT GRAMMER

• Despite macroeconomic challenges positive revenue development
• EBIT increased significantly, also due to impairment losses in AMERICAS in 2022
• Operating EBIT up considerably on previous year but below expectations:
  • negative volume/mix and FXeffects, volatile capacity utilization and increased personnel costs influence EBIT
• Operating EBIT adjusted for:
  • EUR 4.1 million restructuring costs in AMERICAS
  • EUR 10.7 million negative currency effects

FY 2023 Deviation to GUIDANCE

• Unfavorable change in revenue mix between Commercial Vehicles and Automotive
• Unfavorable change in regional mix: APAC significantly bellow expectations
• Unfavorable translatory currency effects (unadjusted in op. EBIT)
• Countermeasures introduced at an early stage did not offset these negative effects entirely
  • particularly the single month of December was behind expectations

FY 2023 CAPITAL EXPENDITURE

• EMEA still with highest portion of EUR 40.2 million for launching new products (i.e. center consoles)
• APAC: EUR 27.5 million, mainly for ramping up new plants in Ningbo and Changzhou
• AMERICAS: EUR 17.1 million, equipment for CV seat production in Delphos, launching a new program in Mexican facility
• Central Services EUR 12.3 million, 3-D printer, Product Lifecycle Management System, Digitalization

WORKING CAPITAL [in EUR million] 233.5 195.8 Dec 31, 2022 Dec 31, 2023 -16.1% FREE CASHFLOW [in EUR million] NET DEBT [in EUR million] 48.2 31.3 +54.0% 429.3 401.1 -6.6% Dec 31, 2022 Dec 31, 2023 2022 2023

7

• Working Capital decreased to EUR 195.8 million – significant increase of trade accounts receivables is overcompensated by improved inventories and increased accounts payables

• Significantly improved earnings before taxes and substantially lower cash outflows from working capital compared to the previous year contributed to the improvement of free cash flow
• Net debt decreased as a result of positive free cash flow

FY 2023 EQUITY, LEVERAGE AND GEARING ON GROUP LEVEL

• Equity slightly higher due to hybrid loan of EUR 19.1 million
• Net profit at EUR 3.4 million
• Other comprehensive income of EUR -17.8 million (foreign currency conversion EUR -11.0 million)
• Improved Leverage due to increased EBITDA LTM from EUR 117.4 million to EUR 123.8 million
• Gearing better due to reduction of net debt

FY 2023 EMEA REVENUE / EBIT / OPERATING EBIT GRAMMER

• EMEA enjoyed a strong first half of the year
• Poorer market conditions in the second half affected both product areas negatively
• The agreements to pass on inflation-related cost increases made a significant contribution to EBIT improvement
• Earnings were reduced by challenging new launches and higher personnel expenses
• Operating EBIT adjusted for negative currency effects

FY 2023 APAC REVENUE / EBIT / OPERATING EBIT GRAMMER

• Strong revenue growth due to the normalization of the supply & demand situation and the start of the production in the new Hefei plant
• EBIT and operating EBIT climbed essentially due to the revenue upturn
• Operating EBIT adjusted for negative currency effects

FY 2023 AMERICAS REVENUE / EBIT / OPERATING EBIT GRAMMER

• Reduction in revenue mainly attributable to Automotive, which was impacted by the premature expiry of a customer project and a respective plant closure as well as strikes at several OEMs
• EBIT and operating EBIT improved but again fell short of expectations (previous year also burdened by an impairment)
• Op. EBIT negatively impacted by lower volumes and unadjusted one-timers (plant closures, equipment relocations, ramp-ups of serial production and start-up of a new paint line in Mexico)
• Operating EBIT adjusted for EUR 4.1 million restructuring costs and EUR 3.9 million negative currency effects

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March 28, 2024

OUTLOOK 2024 STABLE REVENUE AND STRONG EARNINGS GROWTH

Revenue

Stable revenue to around EUR 2.3 billion

(2023: EUR 2.3 billion)

Operating EBIT

Operating EBIT of approximately EUR 75 million

(2023: EUR 56.8 million)

OUTLOOK 2024 SECURE FINANCIAL STABILITY AND RETURN TO PROFITABILITY

FY 2023 ORDER INTAKE REACHES NEW DIMENSIONS

• Above-average order intake in 2023 reflects manufacturers' confidence in GRAMMER's products and underscores the progress of the global quality initiative
• Growth largely driven by business with leading premium OEMs worldwide
• Significant successes in order intake in all three regions in 2023
• This brings GRAMMER closer to its goal of realizing revenue of EUR 2.5 billion by 2025

Center Console: Mercedes-Benz GLC

• Butterfly lid as a high-quality storage compartment cover with a trim that matches the interior
• A center section including a generous storage compartment and USB socket

Rear armrest: BMW 7series

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

FY 2023 HIGHLIGHTS

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

FY 2023 INNOVATIONS FOR THE FUTURE

• Electrically movable center console in x-direction
• Manual pull out drawer in different equipment variants
• In addition to standard surfaces with innovative surfaces (1k high gloss molding, soft touch surfaces, heated surfaces, e.g.).
• Focused value for the passengers of the 2nd and 3rd row
• Electrically or manually movable multifunction box in different equipment variants
• In addition to standard surfaces with innovative surfaces (1k high gloss molding, soft touch surfaces, heated surfaces e.g.).
• Added value for the passengers of the 2nd row
• No interface to "body in white"
• Manual pull out drawer in different equipment variants
• In addition to standard surfaces with innovative surfaces (1k high gloss molding, soft touch surfaces, heated surfaces e.g.).
• Added value for the passengers of the 2nd row
• No interface to "body in white"

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FY 2023 Q&A

March 28, 2024

GRAMMER Group

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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

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Key figures 2023

March 28, 2024

Revenue 2,304.9 EUR million

EBIT margin 1.8%

Operating EBIT margin 2.5%

Net profit 3.4 EUR million

Free Cashflow 48.2 EUR million

Equity ratio 20.4%

	1-12 2023	01-12 2022	Q4 2023	Q4 2022
Group revenue	2,304.9	2,158.8	570.4	565.6
Revenue EMEA	1,210.9	1,131.4	290.7	282.0
Revenue AMERICAS	622.0	672.5	145.6	180.1
Revenue APAC	532.3	426.7	149.9	120.9
EBIT	42.0	-45.0	11.5	-47.5
EBIT margin (in %)	1.8	-2.1	2.0	-8.4
Operating EBIT	56.8	35.5	18.4	33.6
Operating EBIT margin (in %)	2.5	1.6	3.2	5.9
Earnings before taxes	9.2	-62.8	0.9	-62.5
Net profit	3.4	-78.6	2.0	-62.9
Total assets	1,534.4	1,444.6	1,534.4	1,444.6
Equity	313.4	301.1	313.4	301.1
Equity ratio (in %)	20.4	20.8	20.4	20.8
Net debt	401.1	429.3	401.1	429.3
Gearing (in %)	128.0	142.6	128.0	142.6
Capital expenditure (without Financial Assets)	97.1	91.0	38.5	30.6
Free Cashflow	48.2	31.3	3.9	72.1
Employees (number, average)	14,241	14,044	14,241	14,044