Grammer : Interim Financial Report as of June 30, 2021

ONE GRAMMER

Interim Financial Report January to June 2021



Revenue

972.5 million euros

EBIT margin

2.9%

Operating EBIT margin

3.3%

	Employees by region1
EBIT	Annual average
27.8	APAC
	AMERICAS
	4,700
million euros	1,336
Capital expenditure	14,143
30,7	EMEA
	7,672
million euros	1 The average number of employees in Central Services
	stood at 435.

Revenue by region2 in million euros

AMERICAS 247.2

APAC 206.5

972.5

EMEA 562.0

2 Consolidation effects on revenue between the regions came to 43.2 million euros.

Equity ratio

23.0%

Net profit

18.2 million euros

Free cash flow

-54.4 million euros

Company profile

GRAMMER AG, headquartered in Ursensollen, Germany, is active in two business segments: GRAMMER develops and supplies high-quality interior and operating systems as well as innovative thermoplastic components for the global automotive industry. For trucks, trains, buses, and off-road vehicles, GRAMMER is a full-service provider of driver and passenger seats. Cur- rently, GRAMMER AG employs around 14,000 people in 19 countries world- wide, with revenue of around 1.7 bil­ lion euros in 2020. GRAMMER shares are listed in the Prime Standard and traded on the Munich and Frankfurt stock exchanges as well as via the Xetra electronic trading system.

Revenue by quarter in million euros

503.7	468.8	461.7	513.2
454.9
	280.9
Q1	Q2	Q3	Q4
2020	2021

Operating EBIT by region
AMERICAS	EMEA	APAC
-23.7	34.7	31.0
million euros	million euros	million euros

GRAMMER  Interim Financial Report January to June 2021

Dashboard

2

Overview of business performance

• The significant recovery in business performance continued in the first half under review.
• However, business performance in the AMERICAS and EMEA was adversely affected by supply-chain constraints for semicon­ ductors and higher commodity prices.
• The GRAMMER Group's revenue rose substantially in the first half of 2021 by 32.2% to 972.5 million euros (01-06 2020:
• 1. million euros). Worldwide, both divisions - Automotive and Commercial Vehicles - recorded a 28.9% and 38.9% increase in revenue, respectively.
• This favorable performance was particularly driven by the strong revenue growth of 43.0% in APAC to 206.5 million euros (01-06 2020: 144.4 million euros).
• EMEA generated revenue of 562.0 million euros (01-06 2020:
• 1. million euros), equivalent to growth of 28.0%.
• Revenue in the AMERICAS came to 247.2 million euros in the first half of 2021 (01-06 2020: 185.6 million euros), thereby rising by 33.2% over the same period in the previous year.

• Operating EBIT improved substantially in the first half of 2021, rising to 32.4 million euros (01-06 2020: -45.7 million euros), equivalent to an operating EBIT margin of 3.3% (01-06 2020: -6.2%). EBIT came to 27.8 million euros (01-06 2020: -53.0 million euros).
• Solid capital structure: Equity increased by 9.8% to
  332.0 million euros (December 31, 2020: 302.2 million euros), with total assets rising by 69.6 million euros to 1,446.0 million euros (December 31, 2020: 1,376.4 million euros). As a result, the equity ratio improved to 23.0% (December 31, 2020: 22.0%).
• Disposal of a subsidiary in Spain under the planned location consol- idation strategy to reinforce competitiveness on a sustained basis resulted in a one-time exceptional charge of the second quarter.
• Virtual annual general meeting 2021: All items on the agenda, including the resolution to create new authorized capital and to approve the remuneration system, were passed.
• Outlook for 2021 confirmed: For the year as a whole, the GRAMMER Group expects revenue of around 1.8 billion euros (2020: 1.7 billion euros) and operating EBIT of around
  65 million euros (2020: -11.7 million euros).

GRAMMER  Interim Financial Report January to June 2021

Overview of business performance

3

Contents

Dashboard	2
Overview of business performance	3
A | Interim Group Management Report
1. Economic environment	6
2. GRAMMER Group key figures	7
3. Business performance in the first half of 2021	8
4. Results of operations	9
5. Performance by region	10
6. Net assets and financial position	1 1
7. Capital expenditure	12
8. Cash Flow Statement	12
9. Employees	12
10. Opportunities and risks	13
11. Outlook	13
12. Forward-looking Statements	13
13. Responsibility Statement	13

B | Interim Consolidated Financial Statements

for the first half of the year
Consolidated Statement of Income	15
Consolidated Statement of Comprehensive Income	16
Consolidated Statement of Financial Position	17
Consolidated Statement of Changes in Equity	19
Consolidated Statement of Cash Flows	21
C | Notes to the Interim Consolidated Financial
Statements for the first half of the year	23
D | Key figures according to IFRS
GRAMMER Group - Quarterly overview	33
Financial Calendar 2021/Contact/Imprint	35

GRAMMER  Interim Financial Report January to June 2021

Overview of business performance

4

A | Interim Group Management Report

GRAMMER  Interim Financial Report January to June 2021

Overview of business performance

5