PKC Group Oyj Investor Presentation Q4/2011 February 2012 Harri - PowerPoint PPT Presentation

PKC Group Oyj Investor Presentation Q4/2011 February 2012 Harri Suutari President & CEO 1 1

PKC Group Briefly • PKC Group operates in two core business segments: Wiring Systems and Electronics • PKC designs and manufactures electrical distribution systems, wire & cables, wiring components and electronics • The Group’s products and services are delivered mainly to the commercial vehicle, automotive and electronics industries • Global footprint and headquartered in Kempele, Finland • The Group’s net sales amounted to EUR 550.2 million in 2011 • 21,895 employees globally at the end of Q4/2011, rented employees included • PKC Group Oyj is listed in NASDAQ OMX Helsinki Ltd. 2 2

Growth Through Focused Investments � PK Cables listed in � Acquisition of � Operations started in � Acquisition of MAN � Acquisition of SEGU the Helsinki Stock Estonian production China WH production in Germany, Poland Exchange in Poland and Ukraine 1997 1998 2000 2002 2003 2005 2006 2007 2008 2009 2010 2011 � Brazilian factory was � Acquisition of � Acquisition of � Acquisition of AEES opened Russian production Electro Canada in in North America, � Acquisition of Canada, the USA Brazil and Ireland and Mexico electronics business Adj. EBITDA (1) EUR million Development Over Time (1) Illustrated net of non-recurring items 3 3

PKC locations today North America Acuna, Mexico (M) Dallas, Texas Green Valley, Arizona Farmington Hills, Michigan Jeffersontown, Kentucky Juarez, Mexico (M) Kirkland, Washington Monterey, Mexico Nogales, Mexico (M) Piedras Negras, Mexico (M) Portland, Oregon San Antonio, Texas Torreon, Mexico (M) Traverse City, Michigan (M) South America Campo Alegre, Santa Catarina, Brazil (M) Curitiba, Brazil (M) Itajuba, Brazil (M) São Bento do Sul, Brazil (M) São Paulo, Brazil Europe Barchfeld, Germany (M) Dundalk, Ireland (M) Haapsalu, Estonia (M) Keila, Estonia (M) Kempele, Finland (HQ) Kostomuksha, Russia (M) Mukachewo, Ukraine (M) Raahe, Finland (M) Wiring systems business Sosnowiec, Poland (M) Starachowice, Poland (M) Electronics business Manufacturing (M) Asia Suzhou, China (M) 4

Geographical split 5

Key Figures, 1-12/2011 EUR million 1-12/11 1-12/10 Change % Net sales 550.2 316.1 74.1 EBITDA before non-recurring items 59.5 42.2 41.0 Depreciation 17.5 10.7 63.6 EBIT before non-recurring items 42.0 31.5 33.3 % of net sales 7.6 10.0 Non-recurring items 7.5 1.8 316.7 EBIT 34.5 29.7 16.2 Financial items - 5.1 - 4.7 Taxes - 6.0 - 5.3 Net profit 23.4 19.7 18.8 EPS, (EUR) 1.16 1.09 6.4 Cash flows before investments 40.0 22.9 74.7 Net investments 101.5 8.6 1080.2 Cash flows after investments - 50.2 14.9 -436.9 6

Key Figures, 1-12/2011 1-12/11 1-12/10 Change % Net debt (EUR million) 110.7 -2.1 ROI, % 18.9 25.8 Gearing, % 72.6 -1.7 No. of employees at closing. (Rented employees not included) 21,528 5,977 260.2 7

Key Figures, 10-12/2011 EUR million 10-12/11 10-12/10 Change % 1-12/11 Net sales 242.0 91.9 163.3 550.2 EBITDA before non-recurring items 20.6 12.4 66.1 59.5 Depreciation 8.2 2.5 228.0 17.5 EBIT before non-recurring items 12.4 9.8 26.5 42.0 % of net sales 5.1 10.6 7.6 Non-recurring items 3.6 0.2 1700.0 7.5 EBIT 8.8 9.8 -10.2 34.5 Financial items - 1.1 -3.1 - 5.1 Taxes - 1.9 -1.4 - 6.0 Net profit 5.8 5.3 9.4 23.4 EPS, (EUR) 0.29 0.29 1.16 Cash flows before investments 35.6 5.0 612.0 40.0 Net investments 80.1 3.8 2007.9 101.5 Cash flows after investments - 33.5 1.0 - 50.2 8

Non-recurring Items, 1-12/2011 Wiring (EUR 1,000) Systems Electronics Group total Donations to the universities 0 150 150 Advisor fees 7,100 0 7,100 Cancellation of the write-down of inventories -317 0 317 Restructuring labour expenses 218 310 528 Total non-recurring items 7,001 460 7,461 9

Key Figures, 1-12/2011 Net Sales by Geographical Areas Employees in total incl. rented EUR, million 600 at the end of report period 20,7 500 73,5 400 157,5 30,1 300 60,0 20,7 200 236,0 154,6 100 62,5 53,7 0 1-12/2010 1-12/2011 Finland Other Europe North America South America APAC Personnel excl. rented employees R&D Personnel +260% at the end of report period 160 25,000 143 21,528 140 120 20,000 114 120 101 100 90 15,000 80 60 10,000 5,977 5,652 40 5,311 4,423 5,000 20 0 0 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 10

Key Figures, 1-12/2011 Net Sales Adjusted Operating Profit EUR, million Illustrated net of non-recurring items, EUR million AEES 14 acquisition 12.4 12 Segu 10.7 10.5 10.0 9.9 acquisition 10 8.9 7.6 8 6 3.8 3.4 4 1.9 2 0.4 0 -1.1 -2 2009 2010 2011 Q1 Q2 Q3 Q4 Earnings per Share (EPS) Adjusted EBITDA % and EBIT % Illustrated net of non-recurring items, % EUR 18 0.70 16 0.56 0.60 0.50 14 0.39 0.38 0.40 12 0.31 0.29 0.29 0.30 0.24 10 0.19 0.19 0.20 8 0.10 0.01 6 0.00 4 -0.10 2 -0.20 -0.20 -0.30 -0.25 0 2009 2010 2011 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Q1 Q2 Q3 Q4 EBITDA % Operating profit % 11

Key Figures, 1-12/2011 Net Investments Cash Flows after investments EUR, million EUR, million 50 100 37.6 40 90 30 80 14.9 70 20 10 60 0 50 90.2 40 -10 30 -20 -30 20 10 -40 8.1 4.8 0 -50 -50.2 2009 2010 2011 -60 2009 2010 2011 Other Investments Acquisition Return on Investment ROI,% R&D Expenditures % EUR, million 30 8 25.8 6.9 7 25 5.7 6 5.5 18.9 20 5 15 4 3 10 6.4 2 5 1 0 0 2009 2010 2011 2009 2010 2011 12

Wiring Systems Business Segment 13 13

Key Financials, Wiring Systems 2011 EUR million 10-12/11 10-12/10 1-12/11 1-12/10 Net sales 224.5 70.8 477.2 242.4 EBIT before non-recurring items 13.7 8.9 42.5 26.3 % of net sales 6.0 12.5 8.9 10.8 Non-recurring items 5.0 0.2 7.0 1.8 EBIT 8.7 8.7 35.5 24.5 14

AEES, Key Financials, 10-12/2011 10-12/11 Net sales 124.0 EUR million Net profit 6.7 EUR million 15

Net Sales, Wiring Systems EUR million 250 224.5 200 150 90.2 100 84.3 78.2 70.8 64.1 61.8 45.7 41.7 40.3 50 34.2 33.1 0 2009 2010 2011 Q1 Q2 Q3 Q4 16

Adjusted Operating Profit, Wiring Systems EUR million 16 13.7 14 12 10.1 9.7 10 8.9 7.8 7.0 8 6.0 6 4 2.6 2.2 1.7 2 0 -0.6 -2 Illustrated net of non-recurring items -1.8 -4 2009 2010 2011 Q1 Q2 Q3 Q4 17

PKC Group Truck Market Share Globally North America Europe South America Heavy Trucks Medium Trucks PKC Other Source: Truck Statistics: J.D. Power Automotive Forecasting, Q4 2011 , ACT Forecasting January 2012, Note: Europe comprised of EU27 + Efta, 18

Key Customer Segments • Trucks & Buses • Light vehicles • Engines • Recreational Products • Agricultural, Forestry and Construction Equipment 19

Vehicles Europe, 2011 • The registration of heavy-duty trucks increased in Europe (the EU countries, Switzerland and Norway) by 36% in 2011 over the previous year. All in all, about 236,500 heavy-duty trucks were registered during 2011. In Europe, the order books of our customers are forecast to be on a level equivalent to 2–3 months’ production. Forecasts on the production volumes in Europe for 2012 would seem to indicate a fall of about 10% over 2011. • Registrations of new medium and heavy commercial vehicles over 3.5 tonnes in the EU-27 rose by 29.0% in 2011. A total 315,447 new trucks were registered during the year. • New car sales in the European Union (EU27) year 2011 was 13,111,209 – a 1.7% decline from the 2010 total of 13,343,302 and the fourth consecutive yearly fall. • The number of orders received by truck manufacturers in Europe during the fourth quarter fell about a fourth short of the level of deliveries made. 20

Truck Market Heavy Trucks Registration EU27+EFTA (incl. Bulgaria & Romania) Truck Deliveries and Order Intakes, Q4/2011 Trucks > 16t, units 35,000 Trucks, units 40,000 30,000 Total -22.2% 34,175 35,000 25,000 30,000 25,749 20,000 25,000 21,862 21,234 15,000 18,740 20,000 14,210 10,000 15,000 -24.7% 10,000 5,000 -24.2% -2.9% 5,000 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Volvo Europe + Latin America Scania Global MAN (excluding Brazil) 2008 2009 2010 2011 Deliveries Order intake Source: ACEA Source: MAN, Volvo, Scania Heavy Trucks Production, EU27+ EFTA Heavy Trucks Production by Marque, EU27+ EFTA Trucks >16t, units Trucks 16t, units 140,000 90,000 80,000 120,000 70,000 100,000 60,000 80,000 50,000 40,000 60,000 30,000 40,000 20,000 20,000 10,000 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 MAN Group Volvo Group VW/Scania MAN Volvo Scania Source: J.D. Power Automotive forecasting Q4/2011 Source: J.D. Power Automotive forecasting Q4/2011 21