Interim Management Statement as of September 30, 2021

ONE GRAMMER

Interim Management Statement January to September 2021



Revenue

1,404.7million euros

EBIT margin

1.9%

Operating EBIT margin

2.2%

EBIT

26.4

million euros

Capital expenditures

60.8

million euros

Company profile

Employees by region 1

Annual average

AMERICAS:

4,675

APAC:

1,354

14,031

EMEA:

7,575

1 On average, 427 employees worked in Central Services.

Revenue by region 2 in million euros

AMERICAS:

377.0

APAC:

291.3

1,404.7

EMEA:

799.9

2 The effect of consolidating revenue between the regions totaled 63.5 million euros.

Equity ratio

23.2%

Net profit

13.1million euros

Free cash flow

-49.0million euros

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.

inRevenueMio. EURby quarter in million euros

	503.7	468.8	461.7		513.2
454.9	432.2
		280.9
	Q1	Q2	Q3	Q4
2020	2021

Operating EBIT by region
AMERICAS	EMEA	APAC
-40.1	41.7	39.7
million euros	million euros	million euros

GRAMMER Interim Management Statement January to September 2021

Dashboard

2

Overview of business performance

• Revenues up 17.3% to 1,404.7 million euros in the first nine months of 2021 (01-09 2020: 1,197.5 million euros).
• Consolidated revenue decreased by 6.4% to 432.2 million euros in Q3 2021 (Q3 2020: 461.7 million euros), significantly impacted by the significant reduction in customer call-offs due to the limited availability of semiconductor components. The Automotive­ Division recorded an 18.7% decline in revenue, while revenue generated in the Commercial Vehicles Division increased by 27.0%.
• The AMERICAS, APAC, and EMEA regions saw weaker revenue​
  performance­in Q3 2021 compared to the same quarter in the previous year, with declines of 12.2%, 2.6%, and 2.5%, respectively.
• The GRAMMER Group's EBIT totaled 26.4 million euros in the first nine months of 2021 (01-09 2020: -47.2 million euros). Business performance recovered significantly from the effects of the COVID-19 pandemic, particularly in the first half of the year, and was largely driven by the disproportionately high share of revenues generated by the higher-margin Commercial Vehicles Division.
• In the third quarter, EBIT decreased significantly to -1.4 million euros (Q3 2020: 5.8 million euros). This resulted, among other factors, from an increase in the cost of goods sold due to the significant rise in material prices. These primarily resulted from maintaining production capacity and consequently from temporary underutilization caused by lower and volatile call-offs from customers due to the semicon- ductor supply shortage. In addition, logistics costs increased, which also had a negative impact on EBIT in the third quarter.

• The GRAMMER Group's operating EBIT from January to Septem- ber 2021 totaled 30.7 million euros (01-09 2020: -23.3 million euros). The EMEA and APAC regions made positive contributions to earnings.
• Operating EBIT totaled -1.7 million euros in Q3 2021 (Q3 2020:
  22.4 million euros), corresponding to an operating EBIT margin of -0.4% (Q3 2020: 4.9%). This figure was adjusted for directly attributable costs for corona-related protection and response measures totaling 0.3 million euros as well as for positive currency translation effects totaling 0.6 million euros.
• Adjusted earnings guidance for 2021: for the year as a whole, the GRAMMER Group is forecasting revenues of around 1.8 billion euros (previous year: 1.7 billion euros) and an operating EBIT of between 17 and 22 million euros (previous year: -11.7 million euros). In
  its original­ guidance, the company had expected to generate
  operating­ EBIT of 65 million euros.

GRAMMER Interim Management Statement January to September 2021

Overview of business performance

3

Contents

Dashboard	2
Overview of business performance	3
A | Interim Management Statement
January to September 2021
1. Economic environment	6
2. GRAMMER Group key figures	8
3. Business performance in the first
nine months of 2021	9
4. Results of operations	10
5. Performance by region	12
6. Net assets and financial position	13
7. Capital expenditure	14
8. Cash flow Statement	14
9. Employees	14
10. Events subsequent to the reporting date	15
11. Opportunities and risks	15
12. Outlook	15
13. Forward-looking Statements	15

B | Financial Information January to September 2021
Consolidated Statement of Income	17
Consolidated Statement of Comprehensive Income	18
Consolidated Statement of Financial Position	19
Consolidated Statement of Cash Flows	21
Contact/Publisher's Information	23

GRAMMER Interim Management Statement January to September 2021

Overview of business performance

4

A | Interim Management Statement January to September 2021

GRAMMER Interim Management Statement January to September 2021

Overview of business performance

5