Page 1 H RESULTS. Wieluń Warsaw 11 September 2017

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1 Page 1 H RESULTS Wieluń Warsaw 11 September 2017

2 LEADING EUROPEAN PLAYER ABIDJAN ABIDŻAN 3 rd in Europe 10 t h in the world AUXERRE WALTROP PESCARA MANUFACTURING CENTRES WIELUŃ ASSEMBLY PLANTS MINSK MIŃSK KIJÓW KIEV MOSKWA MOSCOW COMMERCIAL COMPANIES Manufacturer of semi-trailers, trailers and truck bodies for road transport and agriculture One of the youngest and the most dynamic companies in the industry 20-year history International Group founded on powerful local brands We own research-and-development modern facilities Wide product portfolio 15 groups International service network as many as 200 locations Effective sales network: 75,000 vehicles with Wielton logo Experienced team: 2,500 people in the Group Page 2

3 KEY EVENTS IN 2017 New development strategy Takeover of Langendorf Payment of dividend from 2016 profit Page 3 Works on the architecture of Wielton Group brands Operating flows as the source of investment financing

4 KEY DATA AND EVENTS IN H DYNAMIC GROWTH AND INVESTMENTS Half-year The second quarter Very dynamic income growth H H Q Q Income m PLN % m PLN m PLN +9.1 % m PLN EBITDA 56.2 m PLN +2.0 % 57.3 m PLN 37.5 m PLN % 29.0 m PLN Profitability EBITDA 10.2 % -3.0 pp 7.2 % 10.0 % -2.9 pp 7.1% % EBIT 45.5 m PLN -2.0 % 44.6 m PLN 31.2 m PLN % 22.8 m PLN Profitability EBIT 8.2 % -2.6 pp 5.6 % 8.3 % -2.7 pp 5.6 % Net profit 34.1 m PLN -6.7 % 31.8 m PLN 24.2 m PLN % 15.4 m PLN Net profitability 6.2 % -2.2 pp 4.0 % 6.4 % -2.7 pp 3.7 % We benefit from the boom by strengthening our market position We use outsourcing to maximise our manufacturing potential We have managed the remuneration expectations actively: an increase in January Rising costs of raw materials Periodic depreciation of the Russian ruble against major currencies Strong Polish zloty not favourable for exporters Page 4

5 DYNAMIC GROWTH OF SALES AND INCOME Sales [qty] PL EX 6, % 2,421 4,206 H1 Q2 Structure [%] -2.7% +28.2% 7,746 2,355 5, Q2 2017Q2 PL EX PL EX 30.4% 69.6% 3, % 36.5% 63.5% 4,096 1, % 1,153 2, % 2,943 Dynamic growth of sales and income We strengthen our position in key markets as planned Backlog: higher by 25.4% YOY Page 5 PL EX Backlog [qty] Income [m PLN] PL EX % -0.3% +74.9% PL EX % % % % 42.0% 70.8% 58.0% FY 2H 1H 12,731 13,714 5,813 6,168 6,918 7,546 9, Q2 2017Q

6 PRODUCT SALES STRUCTURE THE RICH PRODUCT PORTFOLIO RESPONDS TO THE NEEDS OF ALL CLIENT GROUPS Inloaders new product group of Langendorf MULTI-PURPOSE 40% 18% 7% 12% SEMI-TRAILERS DUMPER SEMI-TRAILERS CONTAINER CHASSIS CARGO SEMI-TRAILERS Page 6 8% TRUCK BODIES DUMPER BODIES 6% 5% AGRO 4% TRAILERS INLOADERS

7 POLAND CONSISTENT INCREASE OF MARKET SHARES IN POLAND Head office: Wieluń, Polska Sales [qty] Income [m PLN] 2, % 2, % Q2 1, %. 1,153 Q % Market share by vehicle registration H H % 15.5% Market size H , pp 3 rd place Q1 1,192 1,202 Q Despite fluctuations in market trends, Wielton recorded stable growth of 2.6% YOY (by vehicle registration) and increased its share by 0.4pp to 15.9%. The presence of Wielton in the majority of product groups ensures increases in the volatile market. Significant year-on-year increases in manufacturers in the dumper segment Wielton keeps its leader position in the dumper segment. Page 7 At the end of the second quarter, the Polish market returned to the level of the previous year.

8 FRANCE FRUEHAUF THE LEADER OF A FAST-GROWING MARKET Office: Auxerre, France Sales [qty] Income [m PLN] Q2 2, % 1, % 2,817 1,354 Q % % Market share by vehicle registration H H % 19.9% Market size H , pp 1 st place Q1 1,141 1,463 Q The French market grew by almost 9% while the number of registered Fruehauf vehicles increased by 20%. Market share of the Wielton Group company increased by 2.0pp to 21.9% which reinforced its position of the leader. Page 8

9 ITALY VIBERTI GROWS TWICE AS FAST AS THE VERY DYNAMIC MARKET Office: Pescara, Italy Sales [qty] Income [m PLN] Market share by vehicle registration H H % 4.4% Market size H , pp 5 th place Q2 Q % +29.4% Q2 Q ,2% % After an increase of 12% in Q1, the growth on the Italian market accelerated to 23% YOY. The sales of Vibert products went up by more than 50% in the first half of the year. The share in the Italian market increased by 0.7pp to 5.1% which ensured the strengthening the 5 th place. Page 9 The dynamics of the Italian market is partly fuelled by government programmes to support the investment in the renewal of semi-trailer stock in Italy by SMEs.

10 RUSSIA WIELTON BENEFITS FROM VERY STRONG MARKET INCREASES IN RUSSIA Office: Moscow, Russia Sales [qty] Income [m PLN] % % % % 40.6 Market share by vehicle registration H H % 5.9% Market size H , pp among TOP 3 Q2 Q Q2 Q Nearly six-fold increase in Wielton sales on the market that grows very dynamically in 2017, following stagnation in previous years. The sales of dumper bodies in cooperation with truck manufacturers, which is a significant part of Wielton sales in Russia, are not included in the market share (as the vehicles are registered under the brands of dumper manufacturers). Page 10 market leaders

11 CONSOLIDATED PROFIT AND PROFITABILITY DETERMINANTS OF TEMPORARY PROFITABILITY DECREASE 1H EBITDA EBIT Net profit % % % % -3.0pp 7.2% 8.2% -2.6pp 5.6% 6.2% -2.2pp 4.0% The following factors lower the profitability: the growth of raw material costs was key from the perspective of actual profitability levels; the growth of remuneration costs as the response to the expectations of the staff; due to our own limited resources, the excellent economic situation forced the need for partial outsourcing of technological processes, which in consequence increased the production costs; increase in sales costs associated with a sharp increase in turnover on the Russian market; PLN appreciation with simultaneous depreciation of RUB against EUR. Page 11 2Q % 2016Q2-22.7% -2.9pp % 2017Q % 2016Q2-26.9% -2.7pp % 2017Q % 2016Q2-36.4% -2.7pp % 2017Q2 When comparing the YOY performances, please note the one-off event (PLN 2.5m due to valuation of shares related to the change in consolidation method) at the EBIT level of H There was no one-off events in H The comparability of profitability is harder due to the change in the consolidation method.

12 EBITDA RESULT STRUCTURE IMPACT OF INDIVIDUAL FACTORS ON EBITDA H1 Page 12 Q2

13 CONSOLIDATED CASHFLOW SOLID CASH POSITION THANKS TO VERY STRONG OPERATING FLOW Operations Investments Financial activity 57.0 Total flow Cash for the end of the period Page Broad stream of funds from operations Distribution of funds for capital expenditure Dividend payment of PLN 15.1 m

14 BALANCE STRUCTURE AND DEBT CONSTANTLY STRONG FINANCIAL POSITION Current assets incl. cash and cash equivalents Fixed assets Basic items of the balance sheet [PLN m] Short-term debt incl. credit, loans, leasing Long-term debt incl. credit, loans, leasing Own capital As in previous periods, the financial situation is very good: In H there was a change in the structure of interest debt: the reduction of short-term loans by 42.9% to PLN 33.7m, while the long-term credit increased by 52.3% to PLN 106.3m; the ratio of net debt to EBITDA invariably at a very safe level of 0.7 as well as the overall debt slightly above 60%. Page 14 Aktywa Assets Liabilitie Pasywa s Net debt 76,7 Net debt / EBITDA 0,7

15 STRATEGY: DOUBLE GROWTH IN FOUR YEARS Strategic objectives for 2020 Current status of strategy implementation vs Volume 25 k [qty] x2 Launch of the Strategic Projects Office Launch of 31 strategic projects in three areas Page 15 Income PLN 2.4 bn x2 Commercial Operations Investments EBITDA margin 8.0% Expansion of the EU service network Building of the Customer Service Centre Improvement of CRM Development of sales network in Poland Optimisation of production lines Integration of IT tools within the Group Construction of new technological lines Increased production capacity

16 INVESTMENTS IN PROGRESS PLANNED PUT INTO OPERATION Robotised lines (C5 and C6) for semi-trailer frame welding: put into operation in July 2017 Lines 1 and 2 for welding semi-trailers in a newlybuilt welding shop Lines 3 and 4 for welding semitrailers in a newly built welding hall; planned onset of operations: the beginning of Q Two automated welding lines for the main beam frames of semi-trailers; planned onset of operations: the beginning of Q Automated painting line for cataphoretic anti-corrosion protection of chassis and load beds, plus the paint shop; planned onset of operations: January 2018 Construction of semi-trailer and trailer plant The investment launch date: 2018 Page 16

17 TAKEOVER OF LANGENDORF GROWTH BY ACQUISITIONS: TAKEOVER OF LANGENDORF 23 May 2017: the contract to purchase 80% Langendorf shares (acquisition of shares: 31 July 2017) The remaining 20% will be purchased successively (4x5%) in the next years up to th place on the dumper market in Germany Number 1 on the global INLOADER market Unique know-how in the construction of trailers for transport of glass and its prefabricates Page 17 Integration activities: Integration of Lagendorf and the Group in terms of organisation and processes realisation of joint projects: shared product configurator marketing activities; integration of sales network and service network Expected results: increase of Group s income joint activities in the area of product development integration of procurement increase of the volume of products by 1000 pcs.

18 WHY DOES IT MAKE SENSE TO INVEST IN WIELTON? Ambitious development strategy: doubling the scale of business in 4 years Leader or TOP 3-5 player in dynamically growing markets Successes in expansion in all regions: Poland, Western Europe, Russia Acquisitions that bring expected results Page 18 Strong operating flows and secure financial position Positive outlook for next periods of the year Experienced management team that proved its effectiveness Regular dividend of 25-30% of net profit

19 Page 19 Thank you for your attention. Q&A Appendix

20 WIELTON ON STOCK EXCHANGE 20,00 Turnover Obroty Wielton WIG swig80 WIGdiv 18,00 16,00 14,00 12,00 10,00 8,00 6,00 4,00 +94% +42% +35% +17% Dividend for 2016 EV/EBITDA YOY Turnover volume H from the stock exchange debut grosz per share rate 1.4% 3.9%* PLN m YOY change average 46, % median 29, % Page 20 2,00 0, Stock exchange Ticker ISIN Indices GPW (Warsaw Stock Exchange) WLT PLWELTN00012 WIG, swig80, WIGdiv, WIG-Poland * The arithmetic mean of the rates of return on dividends from the years in which they were paid; dividends for were paid in tranches.

21 SHAREHOLDER STRUCTURE AND THE MANAGEMENT The Management Board Other shareholders 33% MP Inwestors S.à r.l.* 37.6% 60,375,000 ordinary bearer shares 1 share = 1 vote Mariusz Golec Tomasz Śniatała Włodzimierz Masłowski President of the Management Board Vice-President of the Management Board (Economic and Financial Issues) Vice-President of the Management Board (Procurement and Eastern Markets) Page 21 VESTA FIZ Aktywów Niepublicznych 6.3% Łukasz Tylkowski 9.7% MPSZ Sp. z o.o.* 13.3% * In total, as many as 50.97% of the shares and in the capital and votes at the General Meeting are controlled directly and indirectly by Mr Mariusz Szataniak and Mr Paweł Szataniak by: - MP Inwestors S.à r.l., a subsidiary of MP Investors FIZAN managed by the TFI Forum (they have subscribed the certificates), and - MPSZ Sp. z o.o., in which they hold a 50% stake in the share capital. The Supervisory Board Paweł Szataniak President of the Supervisory Board Mariusz Szataniak Vice-President of the Supervisory Board Krzysztof Półgrabia Secretary of the Supervisory Board Ryszard Prozner Member of the Supervisory Board Krzysztof Tylkowski Member of the Supervisory Board Piotr Kamiński Member of the Supervisory Board Tadeusz Uhl Independent Member of the Supervisory Board Waldemar Frąckowiak Independent Member of the Supervisory Board

22 DISCLAIMER This presentation has been prepared by Wielton S.A. ("Company"). It is of purely informational character and should not be treated as investment advice. Neither the Company nor any of its subsidiaries shall be held liable for any damages resulting from the use of this presentation or its contents, or for any damages incurred in any other manner in connection with this presentation. The viewers of this presentation are solely responsible for their own analyses and market assessments and the market situation of the Company and the Capital Group based on the information specified in this presentation. This presentation contains statements related to the future. These statements are based on the current expectations of the Management Board and as such are subject to a number of factors that the Company has no influence on, and are subject to a number of known and unknown risks, uncertainties and other factors that may result in differences between the actual results, activity levels and/or the achievements of the Company and the Capital Group and the future results, activity levels and/or the achievements expressed or implied in forwardlooking statements. Page 22

23 kontakt WIELTON S.A. ul. Rymarkiewicz Wieluń CONTACT FOR INVESTORS Tomasz Śniatała Vice-President of the Management Board, CFO M t.sniatala@wielton.com.pl Page 23