Financial Results FY 2023

March 28, 2024

GRAMMER GROUP AT A GLANCE

2023

KPIs FY 2023

FY 2022

Group revenue [in EUR million]

2,304.9

2,158.8

EBIT [in EUR million]

42.0

-45.0

Operating EBIT [in EUR million]

56.8

35.5

FY

Operating EBIT margin

2.5%

1.6%

Free Cashflow [in EUR million]

48.2

31.3

March 28, 2024 Financial Results FY 2023

  • 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

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© GRAMMER AG

FY 2023

GROUP REVENUE / EBIT / OPERATING EBIT GRAMMER

REVENUE

EBIT

[in EUR million]

[in EUR million and %]

+6.8%

Margin -2.1%

1.8%

2,158.8

2,304.9

Commercial

768.5

799.4

Vehicles

Automotive

1,390.3

1,505.5

+193.3%

42.0

2022

2023

-45.0

2022

2023

OPERATING EBIT

[in EUR million and %]

Margin 1.6% 2.5%

+60.0%

35.5 56.8

2022 2023

  • 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 FX- effects, 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

March 28, 2024 Financial Results FY 2023

3

© GRAMMER AG

FY 2023

Deviation to GUIDANCE

REVENUE

OPERATING EBIT

• Unfavorable change in revenue

mix between Commercial Vehicles

[in EUR million]

[in EUR million]

and Automotive

• Unfavorable change in regional

2,234.0

2,304.9

mix: APAC significantly bellow

-35.6

expectations

799.4

•

Unfavorable translatory currency

835.0

effects (unadjusted in op. EBIT)

Commercial

+106.5

-9

-11

Vehicles

7

• Countermeasures introduced at an

70

early stage did not offset these

Automotive

1,399.0

1,505.5

57

negative effects entirely

50

• particularly the single month

of December was behind

expectations

2023

Op. EBIT

Product &

FX-impact

Op. EBIT

Counter

Operating

Guidance

regional mix

measures

EBIT

Guidance

2023

March 28, 2024 Financial Results FY 2023

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© GRAMMER AG

FY 2023

EMPLOYEES

EMPLOYEES

[Average; with temporary

workers]

BY REGION

[Average; with temporary

workers]

  • AMERICAS -1.8%Adjustment to the decline in revenue

+3.8%

15,354

15,934

2022

2023

March 28, 2024 Financial Results FY 2023

•

EMEA +4.0%

Development driven by a

CENTRAL SERVICES

changed product mix and

409

413

new product launches

2,664

2,316

APAC

•

APAC +15.0%

EMEA

Expansion due to the increase

7,864

8,179

in revenue and for future

growth

AMERICAS

• Central Services at previous

4,765

4,678

year's level

2022

2023

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© GRAMMER AG

FY 2023

CAPITAL EXPENDITURE

CAPITAL

EXPENDITURE

[in EUR million]

+6.7%

91.0 97.1

79.4 84.5

11.6 12.6

2022 2023

IFRS 16

BY QUARTER

[in EUR million]

+25.8%

-9.6%

+0.7%

+3.7%

38.5

30.6

27.0

24.4

19.1 19.8

14.3 14.4

Q1

Q1

Q2

Q2

Q3

Q3

Q4

Q4

2022

2023

2022

2023

2022

2023

2022

2023

  • 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-Dprinter, Product Lifecycle Management System, Digitalization

March 28, 2024 Financial Results FY 2023

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© GRAMMER AG

FY 2023

WORKING CAPITAL, FREE CASH FLOW AND NET DEBT

WORKING CAPITAL

FREE CASHFLOW

[in EUR million]

[in EUR million]

NET DEBT

• Working Capital decreased to

EUR 195.8 million - significant

[in EUR million]

increase of trade accounts

receivables is overcompensated

-6.6%

by improved inventories and

429.3

increased accounts payables

•

Significantly improved earnings

401.1

before taxes and substantially

-16.1%

233.5

195.8

Dec 31,

Dec 31,

2022

2023

+54.0%

48.2

31.3

2022 2023

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

Dec 31,

Dec 31,

2022

2023

March 28, 2024 Financial Results FY 2023

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© GRAMMER AG

FY 2023

EQUITY, LEVERAGE AND GEARING ON GROUP LEVEL

EQUITY

[in EUR million]

Margin 20.8%

20.4%

LEVERAGEGEARING

[in %]

• 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

+4.1%

301.1

313.4

Dec 31,

Dec 31,

2022

2023

3.7 x

3.2 x

Dec 31,

Dec 31,

2022

2023

142.6 128.0

Dec 31,

Dec 31,

2022

2023

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

March 28, 2024 Financial Results FY 2023

8

© GRAMMER AG

FY 2023

EMEA REVENUE / EBIT / OPERATING EBIT GRAMMER

REVENUE

[in EUR million]

+7.0%

1,131.4

1,210.9

Commercial

550.4

566.3

Vehicles

EBIT

[in EUR million and %]

Margin 5.2%

5.0%

OPERATING EBIT

[in EUR million and %]

Margin 5.3%

5.3%

• 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

Automotive

581.0

644.6

2022

2023

+2.6%

+7.0%

58.6

60.1

60.0

64.2

2022

2023

2022

2023

higher personnel expenses

• Operating EBIT adjusted for

negative currency effects

March 28, 2024 Financial Results FY 2023

9

© GRAMMER AG

FY 2023

APAC REVENUE / EBIT / OPERATING EBIT GRAMMER

REVENUE

EBIT

OPERATING EBIT

[in EUR million]

[in EUR million and %]

[in EUR million and %]

Margin 11.0%

11.5%

Margin 11.4%

11.7%

• 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

+24.7%

532.3

426.7

153.6

Commercial

136.2

Vehicles

Automotive

290.5

378.7

2022

2023

+30.2%

47.0 61.2

2022 2023

+28.9%

48.5 62.5

2022 2023

climbed essentially due to

the revenue upturn

• Operating EBIT adjusted for

negative currency effects

March 28, 2024 Financial Results FY 2023

10

© GRAMMER AG

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Grammer AG published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2024 12:36:05 UTC.