GRAMMER AG Business Report FY ended Dec. 2013

Business Highlights

Financial Overview

(in million EUR)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 Rate of Change (%) Factors
Revenue 1265.7 1,133.0 11.7 -
EBIT 58.0 49.0 18.4 -
Automotive Division
Revenue 813.3 711.1 14.4 1)
EBIT 33.1 30.5 8.5 -
Seating Systems Division
Revenue 472.8 439.1 7.7 2)
EBIT 37.6 26.4 42.4 -

1) Automotive Division
-The Automotive Division recorded strong business growth in the year under review despite disparate market conditions. The Company benefited from the Division's focus on premium OEMs. With the concentration on orders from the upper middle-class and upper-class segment of the market, the Company was able to assert itself well despite the protracted weakness of its most important region, Europe.

2) Seating Systems Division
-In 2013, the Seating Systems Division achieved substantial business growth, recording a sizable improvement in revenue and earnings against the backdrop of protracted muted market conditions. The increase in business volumes was materially underpinned by the truck segment, with railway business also performing well.


-The Company announced the acquisition of Czech Republic-based Nectec Automotive s.r.o. has been completed. Nectec develops and produces headrests mainly for the premium car segment. Grammer as the new owner will continue and expand operations in the Ceska Lipa (CZ) plant with the local Nectec employees as planned. (From a press release on February 21, 2013)


R&D Expenditure

(in million EUR)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Total 47.4 36.1 37.7

R&D Facilities

-The Company holds 10 R&D centers in Germany, China, Turkey, Brazil and the USA.

Investment Activities

Capital Expenditure

(in million EUR)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Overall 46.8 39.4 37.6
Automotive Division 29.9 24.8 14.8
Seating Systems Division 15.8 13.8 22.1

New Plant

-In Mar. 2013, the Company announced the establishment of its two new plants in China. The company is about to inaugurate a new 24,000-square-meter plant in Changchun, Jilin Province. The new plant in Changchun unites the activities of three previously separate production facilities at a single location. At the new plant, 850 employees will make car interiors for both premium German manufacturers in China and local car producers. In addition a "front-end" plant in Beijing has been already set-up earlier. The new front-end plant performs final assembly and sequencing of new center consoles projects for a premium German car maker in China. By the time it is fully implemented in 2014, it will have around 100 employees. The Company is now represented at five locations in China. Its Automotive division has operations in Changchun, Beijing, and Shanghai, where the Company also has an R&D center, and its Seating Systems division operates a plant in Tianjin. In addition, the Company produces truck seats for the local market in Jiangyin (Jiangsu Province) within the scope of a German-Chinese joint venture (Grammer Seating Jiangsu). (From a press release on March 13, 2013)