First Half 2016 BMV: RASSINI. July 21,

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1 First Half 2016 July 21, 2016 BMV: RASSINI

2 First Half 2016 Highlights Net revenue increased 22.0% year-over-year to $7,809 million pesos. EBITDA grew 47.1% year-over-year to $1,587 million pesos. Net income before taxes and minority interest increased 69.2% yearover-year to $1,015 million pesos. Net income increased 80.5% year-over-year to $854 million pesos. Net Debt/annualized EBITDA ratio as of 2 nd Q 16 was 0.5x. EBITDA/Net Interest Expense ratio as of 2 nd Q 16 was 10.2x. Consolidated 1H, 2016 (mill. Pesos) 1H, 2015 (mill. Pesos) % Change Sales $7,809 $6,400 22% Gross Profit $2,145 $1,484 45% EBITDA $1,587 $1,079 47% Net Income before taxes and minority interest $1,015 $600 69% Net Income $854 $473 81% 2

3 Industry Update

4 May 08 May 08 June 16 May 08 Macroeconomics June 2016 Dec 14 June 16 June 16 Housing Starts 1.1e Millions of houses Unemployment 4.9% 5.4% 4.9% Exceeding a million homes for fifteen consecutive months The lowest since May 2008 Continuing the positive momentum 4.1 Fuel Cost 2.2 US$ / Gallon Sources: Reuters, Bureau of Labor Statistics and Gas Buddy. 4

5 US Light Vehicle SAAR Annual average Industry Snapshot Million units Expected Light Vehicle Production June % 1% 0% Country USA CAN MEX NAFTA Actual 10 IHS Forecast / June'16 8 J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J NAFTA Light Vehicle Production Passenger Cars Light Trucks % SAAR reached 16.6 million units during June 2016 due to seasonality trends. Production in North America is expected to reach 18.1 million units in 2016 according to the experts from IHS. June inventories closed at a level of 66 days supply stH15 1stH16 Source: June 16 5

6 Consolidated Financial Highlights MxP/USD June'15 June'16 End Average

7 Consolidated Sales and EBITDA Million Pesos Sales EBITDA 11,900 12,897 9,353 9,392 10,362 2,141 CAGR 11-'15 Sales 8% EBITDA 16% 1,568 7,809 1,178 1,203 1,343 6,400 1,587 1, H '15 1H '16 7

8 YTD Sales and EBITDA by Region Sales Million Pesos 1H '15 1H '16 6,400 7,809 5,565 7,170 Actual dist. Sales NAFTA 92% Brazil 8% Consolidated 100% (23%) 22% 29% Consolidated Rassini Nafta Brazil EBITDA Actual dist. EBITDA NAFTA 99% Brazil 1% Consolidated 100% 1,587 1,581 1,079 1,046 (85%) 47% 51% 33 5 Consolidated Rassini Nafta Brazil * EBITDA before Fees and Royalties 8

9 Sales by Product and Region Consolidated Sales Breakdown Million Pesos Jan-June Jan-June 2015 % 2016 % Leaf Springs (1) 2, , Coil Springs Aftermarket 2% Trailers Brazil 1% Sales distribution by customer Other 5% NAFTA Suspensions 3, , Brakes (1) 1, , European OEMs 4% Asian OEMs 13% US OEMs 75% TOTAL NAFTA 5, , Leaf Springs (1) BRAZIL Coil Springs TOTAL BRAZIL OEM: Original Equipment Manufacturer CONSOLIDATED SALES 6, , (1) Includes elimination of intercompany transactions. 9

10 Consolidated Income Statement Million Pesos Consolidated Jan-June Jan-June % Var Income Statement /15 Net Sales 6, , Cost of sales 4, ,664.2 (15) Gross Profit 1, , % of sales SG&A (38) EBITDA 1, , % of sales Depreciation (29) Interest & other financial charges (26) Other expenses Income before Taxes & Minority Int , Other non-recurring income - (65.9) 100 Taxes & Deferred Taxes (61) Minority Interest (37.6) (38.2) (2) Net Income

11 Consolidated Cash Flow Million Pesos Consolidated Jan-June Jan-June % Var Cash Flow /15 EBITDA 1, , Working Capital and Taxes (99.0) (473.3) Net operating cash flow , Interest expense (119.0) (127.3) Cash flow after int. expense Capex (217.4) (338.7) Cash flow available for debt service Financing & Debt Amortization (147.0) (239.1) Other (315.5) (176.7) Beginning cash balance ,223.0 Ending cash balance 1, (5) 11

12 Consolidated Debt Million US dollars As of End of June 2016 Short Term Current Portion LTD Long Term Total Suspension Division NA Brakes Division Cash balance June 16 = US$52 mill. Net Debt June 16 = US$93 mill. Suspension Division Brazil TOTAL Long Term Debt Amortization Profile US$ Million Nafta Suspensions Brakes Note: Debt profile does not include working capital financings 12

13 Financial Ratios by Region (Times) Net debt / EBITDA June'15 June' % 50% Consolidated Rassini Nafta Brazil EBITDA / Net interest 27% % (86%) Consolidated Rassini Nafta Brazil * * EBITDA before Fees and Royalties 13

14 Appendix BMV: RASSINI

15 What defines Rassini World s largest producer of suspension components for light commercial vehicles. Largest fully integrated brake disc producer in the Americas. Absolute 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. 15

16 Our Products 12 % 30 % Leaf Springs Brakes Coil Springs 58 %

17 Our Presence Flint, MI, USA Plymouth, MI, USA Montpelier, OH, USA Coahuila, Mexico NORTH AMERICA Coahuila, Mexico Leaf Springs and Coil Springs 92% NORTH AMERICA Ohio, U.S.A Coil Springs Michigan, U.S.A. Sales, engineering, research and development Flint, U.S.A. Brakes Queretaro, Mexico Ecatepec, Mexico Puebla, Mexico Xalostoc, Mexico Leaf Springs Queretaro, Mexico Elastomers and Bushing assemblies San Martin Texmelucan, Puebla Brakes Mexico City Headquarters 8% Rio de Janeiro, Brazil Mexico City SOUTH AMERICA Sao Paulo, Brazil Leaf Springs and Coil Springs Rio de Janeiro, Brazil Leaf Springs Sao Paulo, Brazil 17

18 Thank you Francisco Freyre Juan Pablo Sánchez Emma Bocanegra Assistant VP Inv. Rel. and Finance CFO Financial Planning Manager and Inv. Rel. BMV: RASSINI

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