First Half 2016 July 21, 2016 BMV : RASSINI www.rassini.com Fir - PowerPoint PPT Presentation

First Half 2016 July 21, 2016 BMV : RASSINI www.rassini.com

Fir irst Half lf 20 2016 Hig ighlights • Net revenue increased 22.0% year-over-year to $7,809 million pesos. • EBITDA grew 47.1% year-over-year to $1,587 million pesos. • Net income before taxes and minority interest increased 69.2% year- over-year to $1,015 million pesos. • Net income increased 80.5% year-over-year to $854 million pesos. • Net Debt/annualized EBITDA ratio as of 2 nd Q’16 was 0.5x. • EBITDA/Net Interest Expense ratio as of 2 nd Q’16 was 10.2x. Consolidated % 1H, 2016 1H, 2015 (mill. Pesos) (mill. Pesos) Change $7,809 $6,400 Sales 22% $2,145 $1,484 45% Gross Profit $1,587 $1,079 47% EBITDA Net Income before taxes and minority interest $1,015 $600 69% $854 $473 81% Net Income 2

Industry Update

Macroeconomics Ju June e 2016 Housing Unemployment 4.9% 1.1e Starts Millions of houses 5.4% June 16 4.9% May 08 May 08 June 16 Exceeding a million homes for The lowest since May 2008 fifteen consecutive months Continuing the positive momentum 2.2 Fuel Cost 4.1 US$ / Gallon 2.5 2.2 May 08 June 16 Dec 14 Sources: Reuters, Bureau of Labor Statistics and Gas Buddy. 4

In Industry ry Sn Snapshot Milli illion units its US Light Vehicle SAAR Expected Light Vehicle Production Annual average 1% 0% 3% 17.5 22 18.4 17.0 18.3 18.1 June 16.2 14.4 15.5 16.4 17.3 20 15.3 16.61 18 Country 2015 2016 2017 2018 USA 11.8 12.3 11.9 11.8 16 CAN 2.3 2.4 2.3 2.1 MEX 3.4 3.5 4.1 4.5 14 NAFTA 17.5 18.1 18.3 18.4 12 Actual 10 IHS Forecast / June'16 8 2012 2013 2014 2015 2016 2017 2018 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 A M J 2012 2013 2014 2015 2016 NAFTA Light Vehicle Production  SAAR reached 16.6 million units during June Passenger Cars Light Trucks 2016 due to seasonality trends.  Production in North America is expected to 17.5 17.0 16.2 reach 18.1 million units in 2016 according to 3% the experts from IHS. 10.6 10.0 9.2 9.1 8.8  June inventories closed at a level of 66 days’ supply. 5.7 5.2 7.0 7.0 6.9 3.6 3.5 2013 2014 2015 1stH15 1stH16 5 Source: IHS @ June’16

Consolidated Financial Highlights June'15 June'16 MxP/USD End 15.57 18.91 Average 15.12 18.03

Consolidated Sa Sale les and EBIT ITDA Milli illion Pes esos os 00 1 12,897 Sales EBITDA 11,900 1 00 CAGR 11-'15 10,362 2,141 Sales 8% 9,392 9,353 EBITDA 16% 1 00 7,809 1,568 8 1,343 6,400 00 1,203 1,178 6 1,587 00 1,079 4 00 2 - - 11 12 13 14 15 1H '15 1H '16 7

YT YTD Sa Sales and EBITDA by by Region Milli illion Pes esos os Sales 1H '15 1H '16 Actual dist. Sales NAFTA 92% Brazil 8% Consolidated 100% 7,809 7,170 6,400 5,565 (23%) 22% 29% 835 639 Consolidated Rassini Nafta Brazil EBITDA Actual dist. EBITDA NAFTA 99% Brazil 1% Consolidated 100% 1,587 1,581 1,079 1,046 (85%) 51% 47% 33 5 Consolidated Rassini Nafta Brazil * EBITDA before Fees and Royalties 8

Consolidated Sa Sale les Breakdown Milli illion Pes esos os Sales by Product and Region Sales distribution by customer Jan-June Jan-June % % Other 2015 2016 5% Trailers Brazil 1% 2,898 3,981 Leaf Springs (1) 45 51 Aftermarket 673 833 2% Coil Springs 11 11 European OEMs 4% NAFTA 3,571 4,814 Suspensions 56 62 Asian OEMs 13% US OEMs 1,994 2,356 Brakes (1) 75% 31 30 5,565 7,170 TOTAL NAFTA 87 92 710 537 Leaf Springs (1) 11 7 125 102 BRAZIL Coil Springs 2 1 835 639 OEM: Original Equipment Manufacturer TOTAL BRAZIL 13 8 CONSOLIDATED SALES 6,400 7,809 100 100 (1) Includes elimination of intercompany transactions. 9

Consolidated In Income St Statement Milli illion Pes esos os Consolidated Jan-June Jan-June % Var Income Statement 2015 2016 16/15 Net Sales 6,399.7 7,809.3 22 Cost of sales 4,916.1 5,664.2 (15) Gross Profit 1,483.6 2,145.1 45 % of sales 23 27 SG&A 404.6 557.8 (38) EBITDA 1,079.0 1,587.3 47 % of sales 17 20 Depreciation 278.8 358.7 (29) Interest & other financial charges 127.9 160.7 (26) Other expenses 72.3 52.6 27 Income before Taxes & Minority Int. 600.0 1,015.3 69 Other non-recurring income - (65.9) 100 Taxes & Deferred Taxes 164.7 265.7 (61) Minority Interest (37.6) (38.2) (2) Net Income 472.9 853.7 81 10

Consolidated Cash Flo low Milli illion Pes esos os Consolidated Jan-June Jan-June % Var Cash Flow 2015 2016 16/15 EBITDA 1,079.0 1,587.3 47 Working Capital and Taxes (99.0) (473.3) Net operating cash flow 980.0 1,114.0 14 Interest expense (119.0) (127.3) Cash flow after int. expense 861.0 986.7 15 Capex (217.4) (338.7) Cash flow available for debt service 643.6 648.0 1 Financing & Debt Amortization (147.0) (239.1) Other (315.5) (176.7) Beginning cash balance 845.2 1,223.0 Ending cash balance 1,026.3 975.2 (5) 11

Consolidated Debt Milli illion US dolla ollars As of End of Current Short Long Portion Total June 2016 Term Term LTD Suspension Division NA 8.2 25.0 62.5 95.7 Cash balance June ’16 = US$52 mill. Net Debt June’16 = US$93 mill. Brakes Division 10.0 10.1 12.0 32.1 Suspension Division Brazil 13.1 - 3.3 16.4 TOTAL 31.3 35.1 77.8 144.2 Long Term Debt Amortization Profile US$ Million 34.8 32.6 25.0 17.2 - 2016 2017 2018 2019 2020 Nafta Suspensions Brakes Note: Debt profile does not include working capital financings 12

Fin inancial Ratios by by Region (T (Tim imes) June'15 June'16 Net debt / EBITDA 14.5 44% 50% 2.8 1.0 0.9 0.5 0.5 Consolidated Rassini Nafta Brazil EBITDA / Net interest 27% 27% (86% 15.7 (86%) 19% 19% 12.4 10.2 8.6 0.7 0.1 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 % 58 Leaf Springs Brakes % Coil Springs 30 %

Our Presence Flint, MI, USA Plymouth, MI, USA Montpelier, OH, USA Queretaro, Mexico NORTH AMERICA Ohio, U.S.A 92% Coil Springs Michigan, U.S.A. Sales, engineering, research and development Flint, U.S.A. NORTH AMERICA Brakes Coahuila, Mexico Coahuila, Mexico Ecatepec, Mexico Leaf Springs and Coil Springs Xalostoc, Mexico Leaf Springs Queretaro, Mexico Elastomers and Bushing assemblies 8% 8% Puebla, Mexico Rio de Janeiro, Brazil San Martin Texmelucan, Puebla Brakes Mexico City Headquarters SOUTH AMERICA Mexico City Sao Paulo, Brazil Sao Paulo, Brazil Leaf Springs and Coil Springs Rio de Janeiro, Brazil Leaf Springs 17

Thank you Francisco Freyre Assistant VP Inv. Rel. and Finance ffreyre@rassini.com Juan Pablo Sánchez CFO jsanchez@rassini.com Emma Bocanegra Financial Planning Manager ebocanegra@rassini.com and Inv. Rel. BMV : RASSINI www.rassini.com