First Quarter 2016 April 22, 2016 BMV: RASSINI www.rassini.com
First Quarter 2016 Highlights Net revenue increased 18.8% year-over-year to $3,809 million pesos. EBITDA grew 45.2% year-over-year to $779 million pesos. Net income before taxes and minority interest increased 67.5% yearover-year to $499 million pesos. Net income increased 106.2% year-over-year to $502 million pesos. Net Debt/annualized EBITDA ratio as of 1 st Q 16 was 0.5x. EBITDA/Net Interest Expense ratio as of 1 st Q 16 was 10.5x. Consolidated 1 st Q, 2016 (mill. Pesos) 1 st Q, 2015 (mill. Pesos) % Change Sales $3,809 $3,207 19% Gross Profit $1,051 $724 45% EBITDA $779 $537 45% Net Income before taxes and minority interest $499 $298 68% Net Income $502 $244 106% 2
Industry Update
May 08 May 08 Mar 16 May 08 Macroeconomics March 2016 Dec 14 Mar 16 Apr 16 Housing Starts 1.2e Millions of houses Unemployment 5.0% 5.4% 5.0% Exceeding a million homes for twelve consecutive months The lowest since May 2008 4.1 Fuel Cost 2.1 US$ / Gallon 2.5 2.1 Sources: Reuters, Bureau of Labor Statistics and Gas Buddy. 4
22 20 18 Annual average US Light Vehicle SAAR 14.4 15.5 16.4 17.3 Mar 16.46 15.3 16.2 17.0 Industry Snapshot Million units Expected Light Vehicle Production 17.5 4% 1% 0% 18.2 18.4 18.5 16 14 12 Country 2015 2016 2017 2018 USA 11.8 12.3 12.0 11.8 CAN 2.3 2.4 2.3 2.1 MEX 3.4 3.5 4.2 4.6 NAFTA 17.5 18.2 18.4 18.5 10 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 2012 2013 2014 2015 2016 Actual IHS Forecast / Mar'16 NAFTA Light Vehicle Production Passenger Cars Light Trucks 16.2 17.0 17.5 9.2 10.0 10.6 7.0 7.0 6.9 5% 4.3 4.5 2.5 2.8 1.8 1.7 2013 2014 2015 1stQ15 1stQ16 Source: IHS @ March 16 2012 2013 2014 2015 2016 2017 2018 SAAR reached 16.5 million units during March 2016. Production in North America is expected to reach 18.2 million units in 2016 according to the experts from IHS. March inventories closed at a level of 65 days supply. 5
Consolidated Financial Highlights MxP/USD Mar'15 Mar'16 End 15.15 17.40 Average 14.93 18.01
Consolidated Sales and EBITDA Million Pesos 3,000 2,500 2,000 Sales EBITDA 10,362 9,353 9,392 11,900 12,897 2,141 CAGR 11-'15 Sales 8% EBITDA 16% 14,000 12,000 10,000 1,568 8,000 1,500 1,178 1,203 1,343 6,000 1,000 3,207 3,809 4,000 500 537 779 2,000-11 12 13 14 15 J-M'15 J-M'16-7
YTD Sales and EBITDA by Region Sales Million Pesos J-M'15 J-M'16 3,207 3,809 2,745 3,481 Actual dist. Sales NAFTA 91% Brazil 9% Consolidated 100% (29%) 19% 27% 462 328 Consolidated Rassini Nafta Brazil EBITDA Actual dist. EBITDA NAFTA 99% Brazil 1% Consolidated 100% 779 785 537 517 (81%) 45% 52% 21 4 Consolidated Rassini Nafta Brazil * EBITDA before Fees and Royalties 8
Consolidated Sales Breakdown Million Pesos Sales by Product and Region Jan-Mar Jan-Mar 2015 % 2016 % Leaf Springs (1) 1,416 45 1,972 52 Coil Springs 330 10 400 10 NAFTA Subtotal 1,746 55 2,372 62 Trailers Brazil 1% Aftermarket 2% Sales distribution by customer Other 8% European OEMs 3% Brakes (1) 999 31 1,109 29 Asian OEMs 12% US OEMs 75% TOTAL 2,745 86 3,481 91 Leaf Springs (1) 395 12 283 8 BRAZIL Coil Springs 67 2 45 1 TOTAL 462 14 328 9 OEM: Original Equipment Manufacturer CONSOLIDATED SALES 3,207 100 3,809 100 (1) Includes elimination of intercompany transactions 9
Consolidated Income Statement Million Pesos Consolidated Jan-Mar Jan-Mar % Var Income Statement 2015 2016 16/15 Net Sales 3,207.3 3,809.2 19 Cost of sales 2,483.5 2,757.9 (11) Gross Profit 723.8 1,051.3 45 % of sales 23 28 SG&A 186.8 271.8 (46) EBITDA 537.0 779.5 45 % of sales 17 20 Depreciation 129.2 174.0 (35) Interest & other financial charges 64.2 76.3 (19) Other expenses 45.8 30.3 34 Income before Taxes & Minority Int. 297.8 498.9 68 Other non-recurring income - (67.0) 100 Taxes & Deferred Taxes 73.7 77.4 (5) Minority Interest (19.5) (13.8) 29 Net Income 243.6 502.3 106 10
Consolidated Cash Flow Million Pesos Consolidated Jan-Mar Jan-Mar % Var Cash Flow 2015 2016 16/15 EBITDA 537.0 779.5 45 Working Capital and Taxes (272.8) (450.7) Net operating cash flow 264.2 328.8 24 Interest expense (60.9) (65.6) Cash flow after int. expense 203.3 263.2 29 Capex (114.2) (157.6) Cash flow available for debt service 89.1 105.6 19 Financing & Debt Amortization (82.2) (109.5) Other (46.7) (40.3) Beginning cash balance 845.2 1,223.0 Ending cash balance 805.4 1,178.8 46 11
Consolidated Debt Million US dollars As of End of March 2016 Short Term Current Portion LTD Long Term Total Suspension Division NA 8.1 25.0 68.8 101.9 Brakes Division 10.0 9.4 14.7 34.1 Suspension Division Brazil 8.8-3.5 12.3 Cash balance Mar 16 = US$68 mill. Net Debt Mar 16 = US$81 mill. TOTAL 26.9 34.4 87.0 148.3 Long Term Debt Amortization Profile US$ Million 25.5 34.8 32.6 25.0-2016 2017 2018 2019 2020 Suspensions Division NA Brakes Division Note: Debt profile does not include working capital financings and Brazil 12
Financial Ratios by Region (Times) Net debt / EBITDA Mar'15 Mar'16 15.0 50% 56% 1.0 1.2 0.5 0.5 1.9 Consolidated Rassini Nafta Brazil EBITDA / Net interest 26% 8.7 21% 10.5 12.8 16.1 (82%) 1.1 0.2 Consolidated Rassini Nafta 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. 15
Our Products 12 % 29 % Leaf Springs Brakes Coil Springs 59 %
Our Presence Flint, MI, USA Plymouth, MI, USA Montpelier, OH, USA Coahuila, Mexico NORTH AMERICA Coahuila, Mexico Leaf Springs and Coil Springs 91% 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 9% 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
Thank you Francisco Freyre Juan Pablo Sánchez Emma Bocanegra Assistant VP Inv. Rel. and Finance CFO Financial Planning Manager and Inv. Rel. ffreyre@rassini.com jsanchez@rassini.com ebocanegra@rassini.com BMV: RASSINI www.rassini.com