BREMBO: H REVENUES +18.2% TO MILLION EBITDA AT MILLION (+40.7%), EBIT AT 90.9 MILLION (+63.9%)

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1 Stezzano, 31 July 2014 BREMBO: H REVENUES +18.2% TO MILLION EBITDA AT MILLION (+40.7%), EBIT AT 90.9 MILLION (+63.9%) Compared to H1 2013: Revenues grew by 18.2% to million (+21.2% on a likefor-like exchange rate basis) Positive contribution by all market segments and all geographical areas in which the Group operates Good margin performance: EBITDA +40.7% to million; EBIT +63.9% to 90.9 million Net income +48% to 64 million 60.4 million in net investments Net financial debt down by 43.8 million compared to 30 June 2013 Results at 30 June 2014: ( million) Change Revenues % EBITDA % on revenues EBIT % on revenues Pre-tax profit % on revenues Net profit % on revenues Net financial debt % % % % % % % 5.7% 30/06/14 30/06/ % 63.9% 85.2% 48.0% Chairman Alberto Bombassei stated: I am deeply satisfied with the half-yearly results, which are the outcome of strategies and investments geared towards strengthening Brembo s industrial presence worldwide. Today, with almost all of our production sites in full operation, we are in a position to consider new investments aimed at further expanding our business. In particular, I am referring to the United States, where we will build a new foundry in the Homer hub, in Michigan, with a view to further enhance the services we offer to our customers in North America, an area that has now become the Group's main market of operation." 1/8

2 H Results Brembo s Board of Directors chaired by Alberto Bombassei met today and approved the Brembo Group s half-year results at 30 June Brembo Group s net consolidated revenues amounted to million in H1 2014, up by 18.2% compared to the same period of the previous year. On a like-for-like exchange rate basis the increase was 21.2%. All business segments in which the Group operates contributed to the results of the reporting period. In detail, the segment of car applications improved by 22.2%, motorbike applications by 16.8%, racing by 8.9% and commercial vehicles by 5.0%. At geographical level, growth in the first half of 2014 was reported for all countries of operation, thus continuing the uptrend witnessed in the first quarter of the year. Sales showed a remarkable progress in Europe, with a growth of 19.4% in Germany, 17.1% in Italy, 31.2% in the United Kingdom and 26.3% in France. In Asia, the Indian market expanded by 9.1% (+25.7% net of exchange rate differences). Japan and China also performed well, growing by 7.1% and 14.1%, respectively. North America (the USA, Canada and Mexico) continued to grow, with a 29.6% increase in sales (34.3% on a like-for-like exchange rate basis), and became the first market for the Group. South America (Brazil and Argentina) was affected by currency trends, resulting in a decline of 16.0%, although on a like-for-like exchange rate basis it showed an increase of 6.7%. In H1 2014, the cost of sales and other operating costs amounted to million, with a ratio of 66.1% to revenues, essentially in line with the same period of the previous year. Personnel costs amounted to million or 18.4% of revenues, decreasing compared to 19.8% in the same period of the previous year. Workforce at 30 June 2014 numbered 7,672, increasing by 499 compared to H and by 431 compared to 31 December EBITDA amounted to million (15.5% of revenues), up by 40.7% compared to the same period of EBIT amounted to 90.9 million (10.1% of revenues), up by 63.9% compared to the first half of Depreciation, amortisation and impairment losses amounted to 48.6 million, thus marking a 11.3% increase due to the significant investments of the previous periods. In the reporting period, net interest expense totalled 6.5 million ( 7.8 million in H1 2013). This item includes interest expense amounting to 5.8 million ( 6.9 million in H1 2013) and exchange losses amounting to 0.7 million ( 0.8 million in the same period of the previous year). It should be noted that exchange gains and losses are accounting items chiefly generated by the translation into local currency of euro-denominated loans taken out by some foreign subsidiaries. Pre-tax profit was 87.0 million (9.6% of revenues), compared to 47.0 million for H /8

3 Based on the tax rates applicable under current tax regulations, estimated taxes amounted to 23.1 million ( 4.2 million in H1 2013), with a tax rate of 26.5% compared to 9.0% for the same period of 2013, when it included extraordinary items. The reporting period ended with a net profit of 64.0 million, up 48.0% compared to 43.2 million for the same period of the previous year. Net financial debt at 30 June 2014 was million, compared to million at 30 June 2013 and million at 31 December The second quarter of 2014 Net consolidated revenues for Q amounted to million, up by 16.4% compared to the same period of EBITDA amounted to 70.4 million, with a ratio of 15.5% to revenues. EBIT was 45.0 million, with a ratio of 9.9% to revenues. The quarter ended with a net profit of 28.1 million, up 24.1% compared to Q Significant Events After 30 June 2014 On 23 July 2014, Brembo announced an 74 million investment plan to build a cast-iron foundry in Michigan (USA), near the new Homer plant. Works will begin in 2015 and are scheduled to be completed in As a result, all production phases will be concentrated in a single site, thus establishing a more efficient production process. The investment will be funded through the cash generated by the Group and will benefit from the incentives granted by the State of Michigan. The building of an integrated hub in Michigan confirms and strengthens the company s interest towards the North American market, which has recorded a very strong increase over the past five years and has become Brembo s main market of reference. Foreseeable Evolution Order book projections confirm a good growth of revenues and margins also for the remainder of the year. The manager in charge of the Company s financial reports, Matteo Tiraboschi, declares, pursuant to paragraph 2 of Article 154-bis of Italy's Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the documented results, books and accounting records. Annexed hereto are the Income Statement, Balance Sheet and Cash Flow Statement for which the auditing process by the independent auditors is currently underway. Company contacts: Investor Relator Matteo Tiraboschi Tel ir@brembo.it Communications and Institutional Relations Director Thanai Bernardini Tel press@brembo.it 3/8

4 CONSOLIDATED STATEMENT OF INCOME (euro million) Change % Q2'14 Q2'13 Change % Sales of goods and services % % Other revenues and income (0.3) -5.3% % Costs for capitalised internal works % % Raw materials, consumables and goods (464.8) (386.3) (78.6) 20.3% (234.5) (198.1) (36.4) 18.4% Other operating costs (143.1) (138.6) (4.5) 3.3% (71.8) (72.1) % Personnel expenses (166.0) (150.7) (15.3) 10.2% (83.9) (74.3) (9.6) 12.9% GROSS OPERATING INCOME % % % of sales of goods and services 15.5% 13.0% 15.5% 13.3% Depreciation, amortisation and impairment losses (48.6) (43.7) (4.9) 11.3% (25.5) (22.6) (2.9) 12.8% NET OPERATING INCOME % % % of sales of goods and services 10.1% 7.3% 9.9% 7.5% Net interest income (expense) (6.5) (7.8) % (2.6) (3.7) % Interest income (expense) from investments 2.6 (0.7) % 1.3 (0.6) % RESULT BEFORE TAXES % % % of sales of goods and services 9.6% 6.2% 9.6% 6.4% Taxes (23.1) (4.2) (18.9) 448.8% (15.7) (2.8) (13.0) 471.8% RESULT BEFORE MINORITY INTERESTS % % % of sales of goods and services 7.1% 5.6% 6.1% 5.7% Minority interests (0.4) -77.6% (0.3) -64.8% NET RESULT FOR THE PERIOD % % % of sales of goods and services 7.1% 5.7% 6.2% 5.8% BASIC/DILUTED EARNINGS PER SHARE (euro) /8

5 CONSOLIDATED STATEMENT OF FINANCIAL POSITION A B C A-B A-C (euro million) Change Change ASSETS NON-CURRENT ASSETS Property, plant, equipment and other equipment Development costs (0.8) (0.3) Goodwill and other indefinite useful life assets (0.3) Other intangible assets (0.2) (1.9) Shareholdings valued using the equity method Other financial assets (including investments in other companies and derivatives) Receivables and other non-current assets (0.6) 1.2 Deferred tax assets TOTAL NON-CURRENT ASSETS CURRENT ASSETS Inventories Trade receivables Other receivables and current assets (1.2) (3.8) Current financial assets and derivatives (0.2) (3.3) Cash and cash equivalents TOTAL CURRENT ASSETS TOTAL ASSETS 1, , , EQUITY AND LIABILITIES GROUP EQUITY Share capital Other reserves Retained earnings/(losses) Net result for the period (25.0) 20.8 TOTAL GROUP EQUITY TOTAL MINORITY INTERESTS (5.0) TOTAL EQUITY NON-CURRENT LIABILITIES Non-current payables to banks Other non-current financial payables and derivatives (2.0) (7.0) Other non-current liabilities Provisions Provisions for employee benefits Deferred tax liabilities (2.4) 0.2 TOTAL NON -CURRENT LIABILITIES CURRENT LIABILITIES Current payables to banks Other current financial payables and derivatives (0.3) 1.0 Trade payables Tax payables Other current payables TOTAL CURRENT LIABILITIES TOTAL LIABILITIES 1, TOTAL EQUITY AND LIABILITIES 1, , , /8

6 CONSOLIDATED CASH-FLOW STATEMENT (euro million) Cash and cash equivalents at beginning of period Result for the period before taxes Depreciation, amortisation/impairment losses Capital gains/losses (0.2) (0.2) Write-ups/Write-downs of shareholdings (2.6) 0.8 Financial portion of defined funds and payables for personnel Long-term provisions for employee benefits Other provisions net of utilisations Net cash flow generated by operations Paid current taxes (15.0) (8.3) Uses of long-term provisions for employee benefits (1.7) (1.6) (Increase) reduction in current assets: inventories (32.2) (16.6) trade receivables (52.6) (59.4) receivables from others and other assets 1.0 (6.7) Increase (reduction) in current liabilities: trade payables payables to others and other liabilities Translation differences on current assets 2.8 (2.6) Net cash flows from/(for) operating activities Investments in: intangible assets (9.0) (9.4) property, plant and equipment (52.0) (63.0) Price for disposal, or reimbursement value of fixed assets Net cash flows from/(for) investing activities (60.3) (71.8) Dividends paid in the period (32.5) (26.0) Capital increase in consolidated companies by minority shareholders Change in fair value valuation Loans and financing granted by banks and other financial institutions in the period Repayment of long-term loans (53.3) (97.6) Net cash flows from/(for) financing activities Total cash flow 47.2 (15.8) CASH AND CASH EQUIVALENTS AT END OF THE PERIOD /8

7 NET SALES BREAKDOWN BY GEOGRAPHICAL AREA AND BY APPLICATION (euro million) % % Change % Q2'14 % Q2'13 % Change % GEOGRAPHICAL AREA Italy % % % % % % Germany % % % % % % France % % % % % % United Kingdom % % % % % % Other EU countries % % % % % % India % % % % % % China % % % % % % Japan % % % % % % Other Asia Countries % % % % % % South America (Argentina and Brazil) % % (7.5) -16.0% % % (5.4) -21.0% North America (US, Canada & Mexico) % % % % % % Other Countries % % % % % % Total % % % % % % (euro million) % % Change % Q2'14 % Q2'13 % Change % APPLICATION Cars % % % % % % Motorbikes % % % % % % Commercial and Industrial Vehicles % % % % % (0.2) -0.4% Racing % % % % % % Miscellaneous % % (0.2) -5.0% % % % Total % % % % % % 7/8

8 euro million euro million euro thousand Net invested capital Net financial indebtedness Turnover per employee 1, MAIN RATIOS Net operating income/sales of goods and services 6.0% 6.8% 7.0% 7.3% 10.1% Result before taxes/sales of goods and services 5.0% 6.0% 6.3% 6.2% 9.6% Capital Expenditure/Sales of goods and services 6.4% 12.2% 9.8% 9.5% 6.8% Net Financial indebtedness/shareholders' equity 86.1% 86.9% 99.2% 94.0% 70.4% Financial charges (*)/Sales of goods and services 0.8% 0.7% 0.8% 0.9% 0.6% Financial charges (*)/Net Operating Income 12.9% 10.2% 11.5% 12.5% 6.4% ROI 10.7% 13.9% 13.6% 14.2% 22.4% ROE 11.9% 15.7% 20.2% 21.9% 27.9% Notes: ROI: Net operating income/ Net invested capital multiply by year days/period days. ROE: Result before minority interests/ Shareholders equity multiply by year days/period days. (*) Net of exchange losses/gains 8/8