BMV: RASSINI www.rassini.com Third Quarter 2017 October 24, 2017
First nine months of 2017 Highlights Net revenue increased to $13,593 million pesos. EBITDA grew to $2,530 million pesos. Net income reached $1,203 million pesos. Net Debt/annualized EBITDA ratio as of September 30 was 0.3x. EBITDA/Net Interest Expense ratio as of September 30 was 11.0x. Consolidated Nine Months Highlights (January 1- September 30) 2017 (mill. Pesos) 2016 (mill. Pesos) % Change Sales $13,593 $11,987 13% Gross Profit $3,451 $3,227 7% EBITDA $2,530 $2,369 7% Net Income before taxes $1,493 $1,466 2% and minority interest Net Income $1,203 $1,230 (2%) 2
May 08 May 08 Sep 17 May 08 Macroeconomics September 2017 Dec 14 Sep 17 Sep 17 Housing Starts 1.2 Million of houses Unemployment 4.2% 5.4% 4.2% Exceeding a million homes for twenty nine consecutive months 4.1 Fuel Cost 2.5 US$ / Gallon 2.5 2.5 Sources: Reuters, Bureau of Labor Statistics and Gas Buddy. 4
22 20 18 16 14 US Light Vehicle SAAR Annual average 15.2 15.5 16.9 17.4 17.5 Sep 18.5 16.2 17.0 Industry Snapshot Million units Expected Light Vehicle Production 17.5 17.8 (3%) 1% 17.4 17.5 1% 17.7 Country 2016 2017 2018 2019 USA 12.0 11.1 11.3 11.3 CAN 2.4 2.2 2.1 1.9 MEX 3.5 4.0 4.2 4.4 NAFTA 17.8 17.4 17.5 17.7 12 Actual 10 IHS Forecast / Sep'17 8 J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J S 2012 2013 2014 2015 2016 2017 NAFTA Light Vehicle Production Passenger Cars Light Trucks 17.0 16.2 17.5 17.8 (3%) 13.5 13.1 9.2 10.1 10.6 11.2 8.3 8.5 7.0 7.0 6.9 6.7 5.2 4.6 2013 2014 2015 2016 3Q16 3Q17 Source: IHS @ September 17 2013 2014 2015 2016 2017 2018 2019 SAAR reached 18.5 million units during September 2017. Production in North America is expected to reach 18.2 million units in 2020 according to the experts from IHS. September inventories closed at a level of 64 days supply. Light Trucks production increased 3% vs previous year. 5
Consolidated Financial Highlights MxP/USD Sep'16 Sep'17 End 19.50 18.20 Average 18.26 18.93
Consolidated Sales and EBITDA Million Pesos Sales EBITDA 16,340 CAGR '11-'16 Sales 12% EBITDA 22% 9,353 9,392 10,362 11,900 12,897 2,141 3,190 11,987 2,369 13,593 2,530 1,178 1,203 1,343 1,568 11 12 13 14 15 16 Jan -Sep '16 Jan - Sep '17 7
YTD Sales and EBITDA by Region Sales Jan-Sep '16 Jan-Sep '17 Million Pesos Actual dist. Sales NAFTA 90% Brazil 10% Consolidated 100% 11,987 13,593 11,020 12,197 44% 13% 11% 967 1,396 EBITDA 7% 4% Actual dist. EBITDA NAFTA 96% Brazil 4% Consolidated 100% 2,530 2,369 2,337 2,437 182% 33 93 Consolidated North America Brazil* * EBITDA before Fees and Royalties 8
Sales by Product and Region Jan-Sep Jan-Sep 2016 % 2017 % Leaf Springs (1) 6,097 51 6,681 49 Coil Springs 1,256 10 1,329 10 NAFTA Suspensions 7,353 61 8,010 59 Brakes (1) 3,667 31 4,187 31 TOTAL NAFTA 11,020 92 12,197 90 Consolidated Sales Breakdown Million Pesos Trailers Brazil 1% Aftermarket 2% European OEMs 6% Sales distribution by customer Other 6% Asian OEMs 9% US OEMs 76% Leaf Springs (1) 803 7 1,192 9 BRAZIL Coil Springs 164 1 205 1 TOTAL BRAZIL 967 8 1,396 10 OEM: Original Equipment Manufacturer CONSOLIDATED SALES 11,987 100 13,593 100 (1) Includes elimination of intercompany transactions. 9
Consolidated Income Statement Million Pesos Consolidated Jan-Sep Jan-Sep % Var Income Statement 2016 2017 17/16 Net Sales 11,987.2 13,592.6 13 Cost of sales 8,760.3 10,141.6 (16) Gross Profit 3,226.9 3,451.0 7 % of sales 27 25 SG&A 857.8 920.7 (7) EBITDA 2,369.1 2,530.3 7 % of sales 20 19 Depreciation 553.8 570.3 (3) Interest & other financial charges 252.4 238.3 6 Other expenses 97.2 228.8 (135) Income before Taxes & Minority Int. 1,465.7 1,492.9 2 Other non-recurring income (134.9) - 100 Taxes & Deferred Taxes 435.4 372.7 14 Minority Interest (64.7) (82.8) (28) Net Income 1,229.9 1,203.0 (2) 10
Consolidated Cash Flow Million Pesos Consolidated Jan-Sep Jan-Sep % Var Cash Flow 2016 2017 17/16 EBITDA 2,369.1 2,530.3 7 Working Capital and Taxes (723.1) (761.9) Net operating cash flow 1,646.0 1,768.4 7 Interest expense (206.9) (170.5) Cash flow after int. expense 1,439.1 1,597.9 11 Capex (651.3) (622.9) Cash flow available for debt service 787.8 975.0 24 Financing & Debt Amortization (194.0) (374.8) Dividends paid (480.0) (640.3) Other (162.5) (385.9) Beginning cash balance 1,223.0 1,913.1 Ending cash balance 1,174.3 1,487.1 27 11
Consolidated Debt Million US dollars As of End of September 2017 Short Term Current Portion LTD Long Term Total Suspension Division NA 8.4 25.0 31.3 64.7 Brakes Division 8.0 9.0 27.0 44.0 Suspension Division Brazil 29.5-0.2 29.7 TOTAL 45.9 34.0 58.5 138.4 Cash balance Sep 17 = US$82 mill. Net Debt Sep 17 = US$57 mill. Long Term Debt Amortization Profile US$ Million 34.0 34.0 8.5 9.0 6.8 2017 2018 2019 2020 2021 Nafta Suspensions Brakes Note: Debt profile does not include working capital financings 12
Financial Ratios by Region (Times) Net debt / EBITDA Sep'16 Sep'17 (2%) 4.1 36% 39% 4.2 0.5 0.5 0.3 0.3 EBITDA / Net interest 8% 12% 14.5 15.6 9.8 11.0 225% 0.4 1.3 Consolidated North America Brazil * * EBITDA before Fees and Royalties 13
Appendix BMV: RASSINI www.rassini.com
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. Recognized year after year for our operational excellence. 15
Our Products 11 % 31 % Leaf Springs Brakes Coil Springs 58 %
8 4 Plants arround the Americas Operating divisions USA Coil Springs Montpelier, Ohio Engineering Office Stuttgart, Germany Mexico Leaf Springs and Coil Springs Piedras Negras, Coahuila Sales, Engineering, Research and Development Plymouth, Michigan Brakes Flint, Michigan Engineering Office Tokyo, Japan Leaf Springs Xalostoc, Estado de Mexico Elastomers and Bushing Assemblies San Juan del Rio, Queretaro Brakes San Martin, Puebla Headquarters Mexico City Brazil Leaf Springs and Coil Spring São Bernardo do Campo, São Paulo Leaf Springs Nova Iguacu, Rio de Janeiro 5 R&D Centers
Juan Pablo Sánchez Francisco Freyre Emma Bocanegra CFO Assistant VP Inv. Rel. and Finance Financial Planning and Inv. Rel. jsanchez@rassini.com ffreyre@rassini.com ebocanegra@rassini.com BMV: RASSINI www.rassini.com