BMV: RASSINI Third Quarter October 23, 2018

Transcription

1 BMV: RASSINI Third Quarter 2018 October 23,

2 First nine months of 2018 Highlights Million Pesos Net revenue climbed to $14,243 million or 5% YoY. EBITDA reached $2,536 million. Net operating cash flow was $1,592 million. Net Debt/annualized EBITDA ratio as of September 30 was 0.2x. EBITDA/Net Interest Expense ratio as of September 30 was 12.6x. Consolidated 2018 (mill. Pesos) Nine Months 2018 Results (January 1- September 30) 2017 (mill. Pesos) % Change Sales $14,243 $13,593 5% Gross Profit $3,509 $3,451 2% EBITDA $2,536 $2,530 0% Net Income before taxes and $1,578 $1,493 6% minority interest Net Income $1,132 $1,203 (6%) 2

3 Industry Update Auto Show Detroit 2018

4 May 08 Dec 14 Sep 18 May 08 Sep 18 May 08 Sep 18 Housing Starts 1.3e Million of houses Macroeconomics September 2018 Unemployment 3.8% 5.4% 3.8% Exceeding a million homes for fortytwo consecutive months $4.10 Fuel Cost $2.90 US$ / Gallon $2.50 $2.90 Sources: Reuters, U.S. Bureau of Labor Statistics and Gas Buddy. 4

5 U.S. Light Vehicle SAAR Annual average Sep 17.4 Industry Snapshot Million units Expected Light Vehicle Production in North America % 0% (2%) 3% Country USA CAN MEX NAFTA J A J O J A J O J A J O J A J O J A J O J A J O J A J NAFTA Light Vehicle Production (2%) Actual IHS Forecast / Sep' U.S. SAAR reached 17.4 million units during September Light vehicle production in North America is expected to reach 16.8 million units in 2020 according to the experts from IHS. Inventories tracked 65 days of supply as of September 30, Light Trucks production increased 5% vs previous year Q17 3Q18 Passenger Cars Light Trucks Source: September 18 5

6 3, Passenger Cars Light Commercials Trucks Buses 2, , ,696 2, , , , Brazilian Vehicle Production Thousands of vehicles 3, Trucks and buses represent 86% of RNA business 2,502 2,018 1,778 2,269 2,486 2,617 2,743 2,889 3,038 Light Commercials 13% Trucks 3% Buses 1% e 2019e 2020e 2021e 2022e By 2022 Brazil will reach 3.7 million units Passenger Cars 83% During the first nine months of 2018, vehicle production increased 11%. Sindipeças expects total year-end 2018 production to increase 11% vs 2017 with approximately 5% annual growth during the following years. Source: 18 6

7 Consolidated Financial Highlights MxP/USD Sep'17 Sep'18 End Average

8 Consolidated Sales and EBITDA Million Pesos CAGR '12-'17 Sales 14% EBITDA 23% 16,340 18,104 Sales 9,353 9,392 EBITDA 10,362 11,900 12,897 3,190 3,366 13,593 14,243 2,530 2,536 2,141 1,178 1,203 1,343 1, Jan - Sep '17 Jan - Sep '18 8

9 Sales YTD Sales and EBITDA by Region Million Pesos Jan-Sep '17 Jan-Sep '18 5% 13,593 14,243 4% 12,197 12,672 Actual dist. Sales NAFTA 89% Brazil 11% Consolidated 100% 13% 1,396 1,571 EBITDA 0% (3%) 2,530 2,536 2,437 2,375 Actual dist. EBITDA NAFTA 94% Brazil 6% Consolidated 100% 74% Consolidated Rassini NAFTA Brazil* * EBITDA before Fees and Royalties 9

10 Sales by Product and Region Jan-Sep Jan-Sep 2017 % 2018 % Consolidated Sales Breakdown Million Pesos Sales distribution by customer Leaf Springs (1) 6, , Coil Springs 1, ,213 9 NAFTA Suspensions 8, , Brakes (1) 4, , Trailers Brazil 1% Aftermarket 2% Other 6% European OEMs 7% Asian OEMs 8% US OEMs 76% TOTAL NAFTA 12, , Leaf Springs (1) 1, , BRAZIL Coil Springs TOTAL BRAZIL 1, , OEM: Original Equipment Manufacturer CONSOLIDATED SALES 13, , (1) Includes elimination of intercompany transactions. 10

11 Consolidated Income Statement Million Pesos Consolidated Jan-Sep Jan-Sep % Var Income Statement /17 Net Sales 13, , Cost of sales 10, ,733.7 (6) Gross Profit 3, , % of sales SG&A (6) EBITDA 2, , % of sales Depreciation (6) Interest & other financial charges Other expenses Income before Taxes & Minority Int. 1, , Taxes & Deferred Taxes (27) Minority Interest (82.8) (27.8) 66 Net Income 1, ,131.9 (6) 11

12 Consolidated Cash Flow Million Pesos Consolidated Jan-Sep Jan-Sep % Var Cash Flow /17 EBITDA 2, , Working Capital and Taxes (761.9) (943.6) Net operating cash flow 1, ,592.0 (10) Interest expense (170.5) (155.0) Cash flow after int. expense 1, ,437.0 (10) Capex (622.9) (696.9) Cash flow available for debt service (24) Financing & Debt Amortization (374.8) (660.0) Dividends paid (640.3) (800.3) Other (385.9) (236.0) Beginning cash balance 1, ,990.6 Ending cash balance 1, ,034.4 (30) 12

13 As of End of September 2018 Short Term Current Portion LTD Long Term Total Consolidated Debt Million US dollars Suspension Division NA Brakes Division Cash balance Sep 18 = US$55 mill. Net Debt Sep 18 = US$41 mill. Suspension Division Brazil TOTAL Long Term Debt Amortization Profile US$ Million NAFTA Suspensions Brakes Note: Debt profile does not include working capital financings 13

14 Financial Ratios by Region (Times) Net debt / EBITDA Sep'17 Sep' % 28% 51% EBITDA / Net interest 0% % % Consolidated North America Brazil * * EBITDA before Fees and Royalties 14

15 Appendix BMV: RASSINI

16 What defines Rassini World s largest producer of suspension components for light commercial vehicles Largest fully integrated brake disc producer in the Americas Leader in technology and market share designing and producing suspension components and high performance brake rotors. Within the Top 100 North American suppliers by Automotive News. Recognized year after year for our operational excellence. 16

17 Brakes Motor balancers Clutch plates Spacers 33% Bushings Leaf Springs 57% Silverado Coil Springs 10% 17

18 8 4 Plants around the world Operating divisions Mexico Leaf Springs and Coil Springs Piedras Negras, Coahuila Leaf Springs Xalostoc, Estado de Mexico Elastomers and Bushing Assemblies San Juan del Rio, Queretaro Brakes San Martin, Puebla Headquarters Mexico City USA Coil Springs Montpelier, Ohio Sales, Engineering, Research and Development Plymouth, Michigan Brakes Flint, Michigan Brazil Leaf Springs and Coil Spring São Bernardo do Campo, São Paulo Leaf Springs Nova Iguacu, Rio de Janeiro Engineering Office Stuttgart, Germany 5 R&D Centers Engineering Office Tokyo, Japan 18

19 Juan Pablo Sánchez Berenice Muñoz Edgar Landeros Carlos Redondo CFO Financial Planning Manager & IR Financial Planning & IR Financial Analyst & IR BMV: RASSINI

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