Safe-Harbor-Statement

Transcription

1 1

2 Safe-Harbor-Statement This presentation includes forward-looking statements based on the beliefs of UNIWHEELS AG management. Such statements reflect current views of UNIWHEELS AG with respect to future events and results and are subject to risks and uncertainties. Actual results may vary materially from those projected here, due to factors including changes in general economic and business conditions, changes in currency exchange, the introduction of competing products, lack of market acceptance of new products, services or technologies and changes in business strategy. UHIWHEELS AG does not intend or assume any obligation to update these forward-looking statements. This presentation constitutes neither an offer nor recommendation to subscribe or buy in any other way securities of UNIWHEELS AG or any of the companies that are members of the Group at present or in the future, nor does it form part of such an offer and it should not be understood as such. This presentation does not constitute an offer of sale of securities in the United States of America. Securities may not be offered or sold in the United States of America without registration or exemption from registration in accordance with the U.S. Securities Act of 1933 in its currently valid form. 2

3 AGENDA UNIWHEELS Group Investor Presentation 01 UNIWHEELS AT A GLANCE 02 THE BUSINESS 03 9M 2016 UPDATE 04 FINANCIALS APPENDIX 3

4 01 UNIWHEELS Group Investor Presentation UNIWHEELS AT A GLANCE 4

5 01 UNIWHEELS AT A GLANCE Key Investment Highlights One of Europe s leading alloy wheel suppliers and long term successful track record with long-standing customer relationships Momentum in automotive sector: OEM demand for alloy wheels to grow by 25% in Europe Rising car production and a higher share of alloy wheels might create capacity shortage in the near future Premium OEM focus leads to access to global and emerging markets, a balanced customer portfolio and minimized exposure to market fluctuations Quality & technology forefront: adding value for customers by high-end technologies achieving lightweight and complex surface solutions, highest production processes efficiency New plant in Poland enables for 25% volume growth till 2017 with all high-tech, cost-efficiency and scale benefits Tight cost control and sound financial management: : EBITDA growth of 150% and net profit tripled. Low net debt level of 0.2x EBITDA Shareholder/investor orientation: dividend policy of 50% consolidated net profit pay-out; proactive and transparent IR 5

6 01 UNIWHEELS AT A GLANCE Historic and future growth UNIWHEELS historic sales volume development Revenue Split 2015 [%] Foundation of ALUTEC Leichtmetallfel gen GmbH by Ralf Schmid Acquisition of RIAL Leichtmetallfel gen GmbH by Ralf Schmid founded 1978 Construction of new ALUTEC/RIAL Production Plant Stalowa Wola, Poland ALUTEC / RIAL starts first OEMsupply to VW / Votex Expansion of production capacities/ start up of new painting facility in polish plant Foundation of corporate group UNIWHEELS United Wheels Group Acquisition of European Business of ATS with production units in Germany and Poland founded 1969 Launch of new alloylightweight technology LightForming Launch of new FlowForming line in German plant Start of new large Painting Line in Polish plant New Central Logistic Centre for Accessory Division UNIWHEELS Holding (Germany) GmbH is converted into the stock company UNIWHEELS AG UNIWHEELS AG conducts IPO and is listed on Warsaw Stock Exchange 6

7 01 UNIWHEELS AT A GLANCE Business model supplier to OEMs and Aftermarket Automotive Business Accessory Business Brands Business Model One of the leading suppliers of alloy wheels to major European car manufacturers (OEM) Wheels are produced with low-pressure die casting technology, test criteria according to OEM standards met without fail -> positioned as quality and innovation leader. Strong and long-established relations with OEMs such as Audi, BMW / MINI, Mercedes / AMG, Jaguar-Land Rover and Volvo. Premium: strong emphasis on premium segment. Direct distribution via key account management to OEMs as Tier-1 supplier, mainly in the premium segment. The market-leading manufacturer of alloy wheels for the accessories market (AM) in Europe Four brands: ATS, RIAL, ALUTEC and ANZIO, covering different customer groups from premium to economy Distribution channel via own trading companies to major tire and wheel distributors, retailers as well as leading car dealers, and UNIWHEELS B2B Webshop Group revenues split per region 7

8 01 UNIWHEELS AT A GLANCE Sales structure Number of wheels sold [m units] Revenue [EUR m] +11.6% -1.5% +7.3% +3.7% +14.1% +10,6% +23.6% +7.8% 8

9 01 UNIWHEELS AT A GLANCE STRATEGY 2022 COST EFFICIENCY AND SOLID FINANCIAL POSITION PROFITABLE AND SUSTAINABLE GROWTH SALES 700m EBITDA >15 % EBIT >10 % TECHNOLOGY LEADERSHIP EXCELLENT PRODUCT QUALITY AND INNOVATION ROCE >20 % Net debt / EBITDA < 2.0x A TEAM-ORIENTED CORPORATE CULTURE FOSTERING INNOVATION More on Strategy 2022 on -> Investor Relations -> UNIWHEELS Profile -> Strategy 2022: OPERATIONAL EXCELLENCE AND PROCESS INNOVATION 9

10 01 UNIWHEELS AT A GLANCE UNWHEELS AG Executive Board Dr. Thomas Buchholz CEO At UNIWHEELS since: 2015 Areas of responsibility : Strategy & Growth Automotive/OEM Group Technology Group Human Resources Quality Management Dr. Karsten Obenaus CFO At UNIWHEELS since: 2003 Areas of responsibility : Finance/Accounting/Taxes Controlling Investor Relations Legal Compliance Risk Management Purchasing IT Dr. Wolfgang Hiller COO At UNIWHEELS since: 2016 Areas of responsibility : Group Operations Accessory/Aftermarket Group Marketing & E-Commerce Motorsports Environmental Management 10

11 02 UNIWHEELS Group Investor Presentation THE BUSINESS 11

12 02 THE BUSINESS Automotive: diversified and long term relationships OEM brands focus on premium [% of revenues] OEM sales 2015 [% of revenues] BMW-Group BMW 13 years 1-series, M5/M6-series, X3, X6 Mini 5 years One, Clubman, Countryman Ford Ford 34 years Kuga, S-Max Honda Honda 7 years Civic, CR-V JLR-Group Jaguar 15 years XJ, XKR, XF, XK, F-Type, F-Pace Group Brand Relationship Main models supplied Audi Audi 20 years A3, A4, A5, A6, A7, A8, Q2, Q3, Q7, i3 Mercedes- Group Land Rover 10 years Evoque, Range Rover Mercedes 35 years S-class, CLS / CLS shooting break, SL, E-class, C-class, A/B-class, GLA, GLK AMG 30 years C-class, SL-class, SLK-class, G-class Mitsubishi Mitsubishi 10 years Outlander, Colt Nissan Nissan 4 years Qashquai, Juke Opel Opel 30 years Corsa, Astra, Insignia Porsche Porsche 44 years 911, Macan, Panamera, Cayman, Cayenne PSA PSA 14 years DS 5, C4 Picasso, Cactus, 308, 508, 3008 Smart Smart 12 years ForTwo Suzuki Suzuki 1 year SX4 Volvo Volvo 38 years V40, S/V/XC 60, S/V/XC 90 VW-Group VW 23 years Amarok, Golf, Polo, Passat CC, Touareg Bentley 13 years Continental Seat 12 years Leon, Alhambra Skoda 13 years Octavia, Superb 12

13 02 THE BUSINESS Mechanism of price adjustments with OEMs Aluminium (LME) Our contracts with customers include clauses which protect us from losses due to aluminum prices changes to a large extent, including fluctuations in EUR/USD. Price adjustments take place quartely based of the average aluminium prices in the previous three months. See graph below. Alloy Premium (MBI) Indicated at Metal Bulletin Index (MBI) Includes insurance, transport from producer to port warehouse Increasingly, price adjustments quarterly, same pattern as for LME Product Premium Negotiated directly with customers 1x per year Includes specific alloy and transport from warehouse to our plants Example quarterly LME and MBI adjustment scheme Average LME price previous three months Quartely price adjustment with OEMs New alloy component in wheel price for the next quarter Dec Jan Feb Mar Apr May Jun 13

14 02 THE BUSINESS Automotive: project phases of an OEM wheel Example model of project phases of an OEM wheel RFQ Nomination SOP EOP Comment 3-6 months after request for quotation (RFQ) from customers, wheel producer is nominated or not. During this phase, cost calculations and price negotiations take place. At nomination, value-add prices, material costs and life-time reductions (long-term productivity) are finalised. From nomination to start of production (SOP), the wheel is developed and simulated (based on OEM s specifications), mould is constructed and 0-series is tested: this takes years Usually, the wheel life cycle is half a car model s life: most wheels will be replaced after facelift The price effect of new wheels on our revenues comes with a time lag of years. 14

15 02 THE BUSINESS Automotive: revenues are based on a project portfolio Exemplary model of the project portfolio development over years Initial Portfolio New project 1 New project 2 New project 3 New project 4 Initial Portfolio Project 1 Initial Portfolio Project 2 Project 1 Initial Portfolio Project 3 Project 2 Project 1 Init. Portfolio Year 1 Year 2 Year 3 Year 4 Year 5 Comment Our wheel portfolio consists of wheels in different project phases. Portfolio is constantly changing as projects (with price adjustments) are ending are replaced by new projects that did not have reductions yet. 80% of the portfolio is exchanged over a period of 4-5 years. This secures our OEM wheel prices. Price pressures would have a lagged effect coming in phases. OEM revenues are a product of a portfolio of wheels in different project phases 15

16 02 THE BUSINESS Accessory: leadership in the market with 4 strong brands Our four Accessory brands UNIWHEELS portfolio consists of top market brand UNIWHEELS is the leading manufacturer in the European aftermarket with four well known brands covering wide range of segments (premium to entry): RIAL, ALUTEC, ANZIO and ATS Volume of wheels in the EU aftermarket [in m] Complimentary market cycle to OEM business 13,3 12,5 11, ,5 11,6 11,7 11,5 11,5 11,5 11,6 11,6 * * 2016* 2017* 2018* Number of wheels in aftermarket [in m] *forecast complimentary business cycle with OEM market (2010 as an example, weak OEM market, much above average aftermarket) relatively stable market on-going market consolidation (smaller players expected to disappear from the market within the next years) main consumer decision drivers - price - design - logistics (24 hours delivery) USD development makes imports from Asia unattractive 16

17 02 THE BUSINESS ATS exclusive supplier to DTM racing series Comment From 2017, all DTM touring cars (Audi, BMW, Mercedes) will take the starting line with the new ATS forged wheel. The contract will run for at least three years. Aluminum forged wheels to be made of a highstrength special alloy. UNIWHEELS now a partner to the world's best touring car racing series. We are very proud to be the DTM exclusive supplier. Excellent field of demonstration of the technical expertise of ATS and the entire UNIWHEELS Group. 17

18 02 THE BUSINESS Core competencies: 3 factors driving value added per wheel Not only volumes drive our revenues. We master three additional key characteristics that lead to higher value added: 1 Wheel Size 75 % of our wheels are delivered in diameters of with a rising trend Wheels with up to 23, e.g. for SUVs 2 Complex Surfaces Design and quality requirements and the trend to indivudalized car configurations High-gloss paint Diamond Cut Anti Corrosion Finish 3 Lightweight Technologies Consumer and regualatory trends towards lower CO 2 emissions require weight reductions Flow Forming Undercut 18

19 02 THE BUSINESS Production and process excellence 1 Construction & design Aluminium Low-pressure Machining casting Varnishing & Painting 6 Final Check & Delivery design Spectral analysis Casting Machining Preparation Final check Simulation Melting / Furnace X-Ray Qualitycheck of dimensions Robotic transfer station Packaging tool construction Degasing Heat treatment Degreasing Painting and clear coat process Delivery Wheel development based on the customers' specifications or own design Simulation and analysis of wheel and tool construction Tool construction and manufacturing Feedstock of primary alloys from renowned suppliers only Batches of incoming goods are scanned assuring backtracking Materials are spectral tested guaranteeing highest quality Use of low pressure die casting technology Castings are tested in full detail by fully automated X-Ray Additional tempering via heat treatment machines CNC-machining of the wheels and checks of dimensions and quality Wheels are 100% checked for balancing Degreasing as preparation for later varnishing Chrome free preparation of the wheels Fully automated varnishing and painting Clear coat finishing Optical check before packing Packing on exchange OE-paletts and in boxes Central location assures 24h-72h delivery in whole Europe aluminium price passed-through to OEM customers on the basis of long-term arrangements and short term price adjustments regarding market premium over commodity prices (OEM) or hedged (aftermarket) 19

20 02 THE BUSINESS Adding value through technology and cost efficiency Technology and costs are winning factors in the business Source of the wheels sold per factory [wheels m] lightweight technologies reducing the car weight delivering future winning technologies as CO 2 regime forces car manufacturers to change to alloy wheels: FlowForming, LightForming, Undercut, carbon wheel design and surfaces R&D, increasing value per wheel complex, sophisticated designs complex surfaces and paintings: high-gloss, diamond-cut and anti-corrosive finish (KSL) cost efficiency R&D focus on lowering material usage to cut down cost per wheel improving casting process management of flexible production production cost efficiency over 80% of production volume in 2 plants in Poland further efficiency improvements expected in the new plant Flow Forming Diamond Cut Complex wheels Carbon wheel 20

21 02 THE BUSINESS New Centre of Technology Key Data Lüdenscheid app. 14 km to Werdoh 180 km to Frankfurt State-of-the-art IT equipment and workstations for all established CAD and CAM programs Wide experience in virtual product- and process development Up-to-date equipment for first-sample tests 35 experienced employees Development of > 225 moulds per year Space: 725 m 2 (1.floor) office space 784 m 2 (GF) office space, test facilities Additional hall: 300 m² for add. test equipment (2 ZWARP, 2 Rimrolling; radial impact test and roting bending fatigue test) 21

22 02 THE BUSINESS Production companies, plants and capacities Stalowa Wola, PL Plant name UPP 1 UPP 2 UPP 3 (new) UPG Werdohl, D Plants and distribution companies Capacity m wheels m wheels Approx. 2.0 m m wheels Wheel dimensions Employees 2, Werdohl UPG Stalowa Wola UPP Strengths Labor cost efficiency combined with automated and flexible robot cells for machining Tax shield due to location in special economic zone New planned plant: most advanced manufacturing facility with latest technology The already world's largest contiguous production site for light-alloy wheels will be extended by another approx. 2 million wheels. Highly skilled for large wheels and complex surfaces Innovation: closeness to R&D used to introduce and optimize new production technologies Bad Durkheim HQ, logistic center Source of the wheels sold (mn pieces) Plant 4 Capex and Capacity Schedule Incremental capacity Plant 4 [wheels m /year] Estimated total capacity Plant 4 [wheels m /year] Estimated total capacity group [wheels m /year] Capacity vs production of 7.8m wheels [%] % +25.6% +25.6% 22

23 02 THE BUSINESS UPP 3: full contributor to group production output Update Phase 1 is a full contributor to group output now. Capacity 2016: 500k wheels. The enhancement for the 2 nd full capacity phase which has been advanced by one year to early 2017, is fully on track. Plant upgrade generating additional capacity of 1mln wheels in Stalowa Wola from 2019 planned UNIWHEELS deepens analysis and site evaluation for a potential 5 th plant. Timetable and earlier phase 2 Final number Online status AUG Phase 1.2m wheels p.a Phase 2.0m wheels p.a Stalowa Wola, Poland Smelting furnaces 5 4 Casting machines X-ray facilities Incremental capacity [wheels m /year] Total Land size: m² Buildings: m² Heat treatment facilities 2 2 Robot cells for machining 11 7 Deburring plants for finishing 12 8 Painting line

24 02 THE BUSINESS FURTHER EXPANSION: FOCUS ON MEXICO / NAFTA REGION TIMETABLE OF DECICION MAKING PROCESS In-depth Analysis Winter 2016/17 Decision on expansion Spring 2017 Decision on funding /financing: equity/debt After location decision 24

25 02 THE BUSINESS Successful stock listing at WSE since May 2015 Substantial over-subscription at the issue price of PLN 105 Almost all investors seen during roadshow subscribed Balanced allotment to OFEs, TFIs, international funds and private investors Being public means professionalization and an organization ready for further growth. swig 80 inclusion in September 2015, mwig40 ascension in March 2016 Several awards regarding IPO and Reporting Current shareholder structure Free Float as of allotment on April 29th % 61.3% 38.7% 0.3% 23.6% 31.5% 39.5% 25

26 03 UNIWHEELS Group Investor Presentation 9M 2016 UPDATE 26

27 03 9M 2016 UPDATE Highlights 9M 2016: Strong customer demand and first wheel output from plant 4 Sales EBITDA Margins Expansion Outlook FY 2016 Strong volume growth in first nine months: +11.9% to 6.4 million wheels. New plant UPP 3 strong contributor. High demand from OEM and AM customers. Revenues up by 4.6 %, influenced by product mix and aluminium price adjustments. Earnings characterized by ramp-up costs for new plant UPP 3, recruitments for new plant, and a drop in material by 5.8%. EBITDA grows by 23.8% to EUR 51.5 million in 9M Strong aluminium impact in Q2 balances out: EBITDA margin improves to 15.4% from 13.0% in 9M EBIT margin improves to 11.7 % from 9.6 % in 9M st phase of UPP 3 produces wheel output now. Capacity for 2016: 0.5m; for 2017: 2.0m In-depth analysis for a 5th plant started. Guidance confirmed and lower ends of growth ranges raised: Wheel sales growth of 10-12%, revenue growth of 5-6%. EBITDA growth of 16-18%. Substantial earnings growth for the following years expected. 27

28 03 9M 2016 UPDATE Automotive: healthy OEM market and new plant Automotive wheels sold [thousand] Comment +11.6% 4,748 Automotive revenues [EUR m] +3.6% 5,299 Demand development from OEM customers remains healthy and growing. Additional capacity in new plant and operational performance increases, especially in Germany. Increase in market shares with premium OEMs, and better than anticipated market launch of new car models. Wheel sales grow by 11.6%. Value-added sales increased by bigger diameters and more complex wheels. Sales growth partially offset by falling aluminium prices: revenue growth of +3.6%

29 03 9M 2016 UPDATE Accessory: exports as strong growth contributor Accessory wheels sold [thousand] Comment % Price reductions in early 2016 have an effect on revenues but also on a gain in market share. Exports as strong growth contributor: two major trade customers in Austria and Sweden significantly increased order sizes. Anti-dumping investigations regarding China ongoing. Accesory revenues [EUR m] +9.1%

30 03 9M 2016 UPDATE Group P&L: new plant impacts revenues, costs and earnings Consolidated P&L of UNIWHEELS Group in EUR m 9M M 2015 %Change Q Q %Change Revenue Changes in inventories and work in progress Own work capitalized Total operating performance Other operating income Cost of material Personnel expenses Other operating expenses EBITDA Depreciation, amortization and impairments EBIT Januar 2017 Interest income Interest expense Other finance revenue/costs Profit or loss before tax Income taxes Net profit or loss Key margins 9M M 2015 Change pp EBITDA margin 15.4% 13.0% +2.4 EBIT margin 11.7% 9.6% +2.1 Comment Revenues increased by 4.8%, influenced by: Wheels sales increase of 11.9% Product mix with higher value added Aluminium price adjustments Material Costs drop by -5.8%, reflecting lower LME alumium prices Personnel costs impacted by recruitments for new plant (ramp-up costs) and wage increases: +13.1% EBITDA increased by 23.8% to EUR 51.5m. EBIT up by 28.4% to EUR 39.9m. Finance: reduced interest rate and positive hedge valuation effects in Q3 Net profit +53.4%: includes income from capitalised deferred taxes EBITDA and EBIT margins improved 30

31 03 9M 2016 UPDATE P&L: personnel expenses impacted by recruitments for new plant Cost of material [EUR m] -5.8% Personnel expenses [EUR m] +13.1% Comment Cost of material is influenced by lower LME aluminium prices, which has however stabilized in Q3; ratio drops to 56.2%. LME (in EUR) downward trend since 2 nd half of 2015 has slightly reverted. Personnel expenses (+13.1%) are impacted by staff recruitment for new plant (ramp-up costs) and wage increases in Stalowa Wola. Recruitments also in Werdohl plant (production output increases). Group employees now at Personnel cost ratio at 16.5%. Other operating expenses (+7.4%): IPO costs in 2015, higher repair and maintenance and selling expenses. Interest expenses (-43.2%). Reduced interest premium for syn loan from 2.2 % to 0.95%. Other Financial Revenue: positive non-recurring effect from fx derivative valuation, amounting EUR 2.9 m in Q3. 31

32 03 9M 2016 UPDATE P&L: aluminium price effect in Q2 on margins balances out EBITDA [EUR m] Comment +23.8% EBITDA increased by 23.8% to EUR 51.5m EBIT grows by 28.4% to EUR 39.3m EBITDA margin improved to 15.4%, despite increased recruitment for new plant (ramp-up costs) and wage increases. EBIT margin up to 11.7%. Net Profit [EUR m] +53.4% Net Profit amounts EUR 42.8m, influenced by a positive non-recurring and non-cash effect from fx derivative valuation in Other Finance Revenue, amounting EUR 2.9m in Q3. Net Profit also benefits from an income from capitalised deferred taxes ( 4.5m) in Q2. 32

33 03 9M 2016 UPDATE Solid financing structure Net debt reflects capex programme new loan agreement drawn (Q4) Net debt [EUR m] Comment +467% Scheduled repayment of term note of syndicated loan (EUR 4.1m). Capex for new plant UPP 3 ( 52.4m) leads to lower cash and equivalents. Net debt at EUR 60.1m. New loan agreement amounting 20m, with an interest rate of 1.0% due in 2024, has been fully drawn in October. Equity ratio [%] -1.7 PP Equity ratio: 59.9% - higher equity but even higher total assets. Reasonable leverage targeted for long-term expansion. 33

34 03 9M 2016 UPDATE Outlook FY 2016: Guidance confirmed, lower ends of growth ranges raised 2016 should be influenced by ongoing growth in wheel demand from European car manufacturers. We assume an average LME aluminium price of EUR for Together with the new plant UPP 3, additional performance increases in existing plants are targeted. We expect: We target to increase group wheel sales by 10-12%. We forecast group revenues to grow between 5% and 6% now, taking the aluminium price development into account. Wheel sales increase by 10-12% and revenue growth by 5-6% Stringent cost management in order to compensate ramp up costs for plant 4 are expected to show effects. We now expect an EBITDA growth of 16-18%. EBITDA growth of 16-18% For the following years: healthy automotive sector in Europe expected, new plant 4 with additional approx. 2m wheels should achieve significant economies of scale, no ramp up costs starting 2017 projected. We expect substancial earnings increases, assuming a constant aluminium price situation. Following years: revenue of at least 520m with an EBITDA margin of approx. 16%. 34

35 04 UNIWHEELS Group Investor Presentation FINANCIALS

36 04 FINANCIALS Key financial indicators Cost ratios Earnings and Margins Financial Position Return on Capital Employed ROCE (Return on Capital Employed) = EBIT / (Equity + Long-term Liabilites Cash) 36

37 04 FINANCIALS P/L : growing revenue and margins improvement Consolidated P&L of UNIWHEELS Group in EUR m Actual Actual Actual Actual Revenue Changes in inventories and work in progress Own work capitalized Total operating performance Cost of material Gross profit Other operating income Personnel expenses Other expenses EBITDA Depreciation, amortization and impairments EBIT Interest income Interest expense Other finance revenue/costs Profit or loss before tax Income taxes Net profit or loss Key margins EBITDA margin 7,3% 11,3% 12,6% 13.4% EBIT margin 3,2% 6,9% 9,0% 10,4% UNIWHEELS GROUP Q RESULTS EBITDA margin = EBITDA/Revenues, EBIT margin = EBIT/Revenues 37

38 04 FINANCIALS Balance Sheet : solid financials Consolidated Balance Sheet of UNIWHEELS Group in EUR m Actual Actual Actual Actual Goodwill Other intangible assets Property, plant and equipment Other non-current financial assets Deferred tax assets Total non-current assets Inventories Trade receivables Other current financial assets Current income tax assets Other current non-financial assets Cash and cash equivalents Total current assets Total assets in EUR m Interest bearing debt Cash and cash equivalents Net debt Shareholder loan to be converted into equity 24.7 Net debt adjusted for shareholder loan 65.4 EBITDA Net debt / EBITDA Issued capital Capital reserve Revenue reserves Other reserves Total equity Non-current provisions Non-current financial liabilities Non-current trade payables Total non-current liabilities Current provisions Current financial liabilities Current trade payables Other current non-financial liabilities Current income tax liabilities Total current liabilities Total equity and liabilities

39 04 FINANCIALS Strong cashflow allowing for 50% dividend payout policy Consolidated cashflow from operating activities in EUR m Actual Actual Actual Acutal Cash flows from operating activities Cash inflow from operating activities Net cash inflow from operating activities Consolidated cashflow from invest. and finan. activities in EUR m Actual Actual Actual Actual Net cash outflow from investing activities Free cash flow Net cash outflow from financing activities Cash and cash equivalents at the end of the period Dividend Policy Intention to pay out 50% of its consolidated profit in the future. Within the existing syndicated loan no dividend restrictions Dividend also depends on a number of factors. including projected capex, current free cash flow available, future loan covenants. Paying out dividend is also subject to the cash situation. Under German law, net profit of the non-consolidated financial statements in German GAAP (HGB) is essential. (Bilanzgewinn) Net profit for the year must be adjusted for profit/loss carry-forwards from the prior year and release of or allocations to reserves. Certain reserves are required to be set up by law and must be deducted when calculating the profit available for distribution Net profit and dividend declared (UNIWHEELS AG) EUR m Consolidated profit for the year Consolidated profit per share [EUR] the total amount of dividend declared amount of dividend declared per share [EUR] Dividend to consolidated profit ratio 0% 0% 43.9% 50.3% 39

40 THANK YOU FOR YOUR ATTENTION IR Contact: Oliver Madsen Head of Investor Relations +49 (0) / o.madsen@de.uniwheeels.com 40

41 05 UNIWHEELS Group Investor Presentation APPENDIX 41

42 05 APPENDIX Balance Sheet 9M 2016 Comment Assets The change in property, plant and equipment mainly results from depreciation of EUR 12.2 million and additions of EUR 68.1 million of which EUR 52.4 million relates to the construction of UPP 3 in Stalowa Wola, Poland. The increase of EUR 14.7 million in revenue in comparison to the first nine months of 2015 to a total of EUR million is due to the growth of the Automotive and Accessory divisions Equity and Liabilities Scheduled repayment of term note of syndicated loan (EUR 4.1m) Capex for new plant UPP 3 ( 52.4m) leads to lower cash and equivalents Net debt at EUR 60.1m. Equity ratio: 59.9% - higher equity but even higher total assets 42

43 05 APPENDIX Cash Flows 9M

44 05 APPENDIX Key Financial Figures 9M

45 05 APPENDIX Key Financial Figures FY

46 05 APPENDIX Key Financial Figures H (in thousand unless otherwise stated, audited) H H /- Revenue 217, , % Sales volume (thousand pieces) 3,884 3, % EBITDA 27,865 21, % EBITDA margin (% to sales) 12.8% 12.5% +0.3PP EBIT 20,543 14, % EBIT margin (% to sales) 9.5% 8.3% +1.2PP Net profit 19,340 11, % Capital expenditures and investments 13,061 6, % Equity ratio 57.4% 31.7% +25.7PP Net debt 15,830 90, % Personnel (# persons) 2,499 2, % 46

47 05 APPENDIX Risk management: raw materials, F/X, prices, interest Main Hedging Instruments Comments Hedging Instruments Hedging Transaction on Aluminium Price adjustments clause: Contracts with car manufacturers for quarterly price indexation Currency Hedging: US Dollar and Polish Zloty IRS Hedging (Syndicated loan) To ensure that changing aluminium prices do not impact Group s margin, contracts with car manufacturers provide for quarterly price indexation. There are also certain arrangements with the OEMs that allow to decrease impact of the cost volatility. Furthermore, the Group enters into swap agreements with banks to hedge itself against the risk of fluctuating aluminium costs. The Group has chosen the Euro as its functional currency, also for UPP Costs for the salaries of its employees, energy costs and transport costs are however incurred in Polish Zloty. Raw materials are paid in Euro. The Group is exposed to exchange rate fluctuations between the Euro and the USD on the one side and Polish Zloty on the other side. These fluctuations are hedged by forward hedging contracts to mitigate the risks involved F/X: 2016: fully hedged, 2017: about 90% hedged, both years at a favourable currency rate The Group uses Interest swaps to minimize the risk of rising interest rates. In an interest swap the Group exchanges fixed and floating interest payments that were calculated on the basis of agreed nominal amounts. 47

48 05 APPENDIX Tax benefits create competitive advantages over next 10 years Background Tax credits amount and recognition Poland There are permits in the special economic zone in Stalowa Wola / Poland It is possible for UPP to receive a tax credit equivalent for fiscal revenue Limitation of tax benefits. For one limitation there was made an application of invalidity As of end 2015 the Group enjoyed SSE-related tax credits in Poland and Germany in the amount of EUR 35.8m, fully recognized in financial statements (UPP EUR 29.7m and German Companies EUR 6.1m) These tax credits are valid partly until 2017, with a possibility of extension of part of it until The Group expects to receive additional tax credit of EUR 30m due to planned investment on the new plant in Stalowa Wola, valid until As consequence of tax exemption no deferred tax assets were build on temporary Germany tax loss carry forwards 48

49 05 APPENDIX Analyst Coverage, Estimates and Recommendations Pekao Trigon Institution Analyst Date Tomasz Kucinski Łukasz Rudnik December 19, 2016 November 29, 2016 EBITDA FY2016 e Target Price Recommendation 74,3 m PLN 249,30 BUY 70.9 m PLN BUY BZ WBK Brokerage Michał Sopiel November 3, m PLN BUY mbank Dom Maklerski Jakub Szkopek October 19, m PLN ACCUMULATE Wood & Company Maciej Wardejn August 12, m PLN BUY Consensus m

50 05 APPENDIX Financial Calender