BMV: RASSINI www.rassini.com Fourth Quarter 2017 February 20, 2018 1
Twelve-months figures 4Q 2017 Highlights Net revenue increased to $18,104 million pesos. EBITDA grew to $3,366 million pesos. Net income reached $1,475 million pesos. Net Debt/annualized EBITDA ratio as of December 31 was 0.2x. EBITDA/Net Interest Expense ratio as of December 31 was 11.1x. Consolidated 2017 (mill. Pesos) Fiscal Year 2017 Results (January 1- December 31) 2016 (mill. Pesos) % Change Sales $18,104 $16,340 11% Gross Profit $4,581 $4,373 5% EBITDA $3,366 $3,190 6% Net Income before taxes and $1,992 $1,935 3% minority interest Net Income $1,475 $1,431 3% 2
Industry Update Auto Show Detroit 2018
May 08 Dec 14 Dec 17 May 08 Dec 17 May 08 Dec 17 Housing Starts 1.3 Million of houses Macroeconomics December 2017 Unemployment 4.1% 5.4% 4.2% Exceeding a million homes for thirty-two consecutive months 4.1 Fuel Cost 2.5 US$ / Gallon 2.5 2.5 Sources: Reuters, Bureau of Labor Statistics and Gas Buddy. 4
22 20 18 US Light Vehicle SAAR 15.2 15.5 16.9 17.4 17.5 Annual average Dec 17.8 Industry Snapshot Million units Expected Light Vehicle Production 17.0 17.5 17.8 17.1 2% 0% 1% 17.4 17.4 17.5 16 14 12 10 Country 2017 2018 2019 2020 USA 11.0 11.1 11.2 11.5 CAN 2.2 2.1 1.9 1.9 MEX 3.9 4.2 4.2 4.2 NAFTA 17.1 17.4 17.4 17.5 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 N 2012 2013 2014 2015 2016 2017 Actual IHS Forecast / Dec'17 NAFTA Light Vehicle Production 17.0 17.5 17.8 (4%) 17.1 10.1 10.6 11.0 11.2 7.0 6.9 6.9 5.9 2014 2015 2016 2017 2018 2019 2020 SAAR reached 17.8 million units during December 2017. Production in North America is expected to reach 17.5 million units in 2020 according to the experts from IHS. December inventories closed at a level of 61 days supply. Light Trucks production increased 3% vs previous year. 2014 2015 2016 2017 Passenger Cars Light Trucks Source: IHS @ December 17 5
Brazilian Vehicle Production Million vehicles 3,146 33 140 471 2,502 Passenger Cars Light Commercials Trucks Buses 2,429 21 74 316 2,157 19 61 299 2,603 21 79 329 2,787 22 88 338 2,899 2,339 2,436 2,540 2,643 2,748 2,174 2,018 1,778 23 93 347 3,037 27 100 370 3,166 28 109 386 3,301 31 126 396 Trucks and buses represent 86% of RNA business 2014 2015 2016 2017e 2018e 2019e 2020e 2021e 2022e Commercial Vehicles 14% Trucks 3% Buses 1% By 2022 Brazil will reach 3.3 million units Passenger cars 82% Source: Sindipeças @Dec 17 6
Consolidated Financial Highlights MxP/USD Dec'16 Dec'17 End 20.66 19.74 Average 18.65 18.93 7
Consolidated Sales and EBITDA Million Pesos CAGR '12-'17 Sales 14% EBITDA 23% 18,104 16,340 Sales EBITDA 11,900 12,897 3,190 3,366 9,353 9,392 10,362 2,141 1,178 1,203 1,343 1,568 11 12 13 14 15 16 17 8
Sales YTD Sales and EBITDA by Region Million Pesos Jan-Dec '16 Jan-Dec '17 16,340 18,104 15,034 16,223 Actual dist. Sales NAFTA 90% Brazil 10% Consolidated 100% 44% 11% 8% 1,306 1,881 EBITDA 6% 2% 3,190 3,366 3,139 3,215 Actual dist. EBITDA NAFTA 95% Brazil 5% Consolidated 100% 199% 51 151 Consolidated Rassini Nafta Brazil* * EBITDA before Fees and Royalties 9
Sales by Product and Region Jan-Dec Jan-Dec 2016 % 2017 % Leaf Springs (1) 8,345 51 8,850 49 Coil Springs 1,701 10 1,723 10 NAFTA Suspensions 10,046 61 10,573 59 Brakes (1) 4,988 31 5,650 31 Trailers Brazil 1% Aftermarket 2% European OEMs 6% Consolidated Sales Breakdown Million Pesos Sales distribution by customer Other 7% Asian OEMs 9% US OEMs 75% TOTAL NAFTA 15,034 92 16,223 90 Leaf Springs (1) 1,088 7 1,601 9 BRAZIL Coil Springs 218 1 280 1 TOTAL BRAZIL 1,306 8 1,881 10 OEM: Original Equipment Manufacturer CONSOLIDATED SALES 16,340 100 18,104 100 (1) Includes elimination of intercompany transactions. 10
Consolidated Income Statement Million Pesos Consolidated Jan-Dec Jan-Dec % Var Income Statement 2016 2017 17/16 Net Sales 16,340.1 18,103.7 11 Cost of sales 11,967.4 13,523.2 (13) Gross Profit 4,372.7 4,580.5 5 % of sales 27 25 SG&A 1,183.0 1,214.3 (3) EBITDA 3,189.7 3,366.2 6 % of sales 20 19 Depreciation 779.2 810.4 (4) Interest & other financial charges 323.8 315.8 2 Other expenses 151.5 247.9 (64) Income before Taxes & Minority Int. 1,935.2 1,992.1 3 Other non-recurring income (134.0) - 100 Taxes & Deferred Taxes 722.9 617.9 15 Minority Interest (84.9) (101.1) (19) Net Income 1,431.2 1,475.3 3 11
Consolidated Cash Flow Million Pesos Consolidated Jan-Dec Jan-Dec % Var Cash Flow 2016 2017 17/16 EBITDA 3,189.7 3,366.2 6 Working Capital and Taxes (785.3) (541.3) Net operating cash flow 2,404.4 2,824.9 17 Interest expense (251.7) (230.4) Cash flow after int. expense 2,152.7 2,594.5 21 Capex (849.7) (853.9) Cash flow available for debt service 1,303.0 1,740.6 34 Financing & Debt Amortization (44.6) (521.1) Dividends paid (480.2) (640.3) Other (88.1) (501.7) Beginning cash balance 1,223.0 1,913.1 Ending cash balance 1,913.1 1,990.6 4 12
As of End of December 2017 Short Term Current Portion LTD Long Term Total Consolidated Debt Million US dollars Suspension Division NA 8.4 25.0 25.0 58.4 Brakes Division 6.0 9.0 24.8 39.8 Cash balance Dec 17 = US$101 mill. Net Debt Dec 17 = US$30 mill. Suspension Division Brazil 32.5-0.1 32.6 TOTAL 46.9 34.0 49.9 130.8 Long Term Debt Amortization Profile US$ Million 34.0 34.0 9.0 6.8 2018 2019 2020 2021 Nafta Suspensions Brakes Note: Debt profile does not include working capital financings 13
Financial Ratios by Region (Times) Net debt / EBITDA Dec'16 Dec'17 35% 5.8 0.3 51% 56% 0.5 0.2 0.2 3.8 EBITDA / Net interest 3% 9% 10.2 11.1 15.3 15.8 220% 0.5 1.6 Consolidated North America Brazil * * EBITDA before Fees and Royalties 14
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 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
Brakes Motor balancers Clutch plates Spacers 31% Bushings Leaf Springs 58% Silverado Coil Springs 11% 17
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
Juan Pablo Sánchez Emma Bocanegra Edgar Landeros CFO Financial Planning & IR Financial Analyst & IR jsanchez@rassini.com ebocanegra@rassini.com elanderos@rassini.com BMV: RASSINI www.rassini.com
20