PKC Group Plc Investor Presentation Q3/2012 1 November 2012 Matti - PowerPoint PPT Presentation

PKC Group Plc Investor Presentation Q3/2012 1 November 2012 Matti Hyytiäinen President & CEO 1 1

7-9/2012 Highlights Business Environment PKC’s Operations � Weakness in European truck market � Quotation activities at high level. remained. � Technology roadshows continued. � NA truck market started to cool down. � Capacity adjustments due to increased � Truck sales recovered in Brazil. demand fluctuations. PKC’s Financial Performance � Strong cash flow from operations. � Improved adjusted EBITDA % and EBIT %. � Electronics recovery continued. 2

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 with headquarters in Helsinki, Finland • The Group’s net sales amounted to EUR 714.2 million in 1-9/2012 • 20,165 employees globally at the end of Q3/2012 • PKC Group Plc is listed in NASDAQ OMX Helsinki Ltd. 3 3

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 business in Poland in Germany, Poland Exchange and Ukraine 1997 1998 2000 2002 2003 2005 2006 2007 2008 2009 2010 2011 � Acquisition of � Brazilian factory was � Acquisition of � Acquisition of AEES opened Russian production Electro Canada in in North America, � Acquisition of Canada, the USA Brazil and Ireland electronics business and Mexico Adj. EBITDA (1) EUR million Development Over Time (1) Illustrated net of non-recurring items 4 4

PKC Group’s Executive Board President & CEO Matti Hyytiäinen WIRING WIRING WIRING ELECTRONICS BUSINESS FINANCE LEGAL & SYSTEMS SYSTEMS SYSTEMS DEVELOPMENT CORPORATE EUROPE & NORTH SOUTH DEVELOPMENT APAC AMERICA AMERICA Senior Vice President, President, President, President, President, CFO General Counsel WS, Europe & WS, North WS, South Business Electronics Juha Torniainen Sanna APAC America America Development Jarmo Rajala Raatikainen Harri Ojala Frank Sovis Pekka Korkala Jyrki Keronen 5

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) Helsinki, Finland (HQ) Keila, Estonia (M) Kempele, Finland Kostomuksha, Russia (M) Mukachewo, Ukraine (M) Munich, Germany Wiring Systems business Raahe, Finland (M) Sosnowiec, Poland (M) Electronics business Starachowice, Poland (M) Manufacturing (M) Asia Suzhou, China (M) 6

PKC Sales Split 7

Geographical split Personnel at the end of Q3/2012 APAC 2 % Europe 24 % South America North 13 % America 61 % 8

Key Figures, 1-9/2012 EUR million 1-9/12 1-9/11 Change % 1-12/11 Net sales 714.2 308.2 131.7 550.2 EBITDA 65.8 38.8 69.6 59.5 Depreciation and amortisation 1) 12.6 7.4 70.3 10.5 PPA depreciation and amortisation 10.6 1.9 457.9 7.0 EBIT 42.6 29.6 43.9 42.0 Non-recurring items 3.2 3.8 -15.8 7.5 EBIT after non-recurring items 39.4 25.7 53.3 34.5 Financial items -5.2 -4.0 - 5.1 Taxes -11.0 -4.1 - 6.0 Net profit 23.3 17.6 32.4 23.4 EPS, (EUR) 1.09 0.87 25.3 1.16 1) Excluding PPA depreciation and amortisation 9

Key Figures, 7-9/2012 EUR million 7-9/12 7-9/11 Change % 1-12/11 Net sales 227.4 102.0 122.9 550.2 EBITDA 22.5 13.9 61.9 59.5 Depreciation and amortisation 1) 4.6 2.6 76.9 10.5 PPA depreciation and amortisation 3.5 0.7 400.0 7.0 EBIT 14.4 10.6 35.8 42.0 Non-recurring items 1.9 1.7 11.8 7.5 EBIT after non-recurring items 12.5 9.0 38.9 34.5 Financial items -2.7 -4.4 - 5.1 Taxes -3.1 -0.9 - 6.0 Net profit 6.7 3.7 81.1 23.4 EPS, (EUR) 0.31 0.19 63.2 1.16 1) Excluding PPA depreciation and amortisation 10

Key Figures, 9/2012 EUR million 9/12 9/11 Change % 12/11 Goodwill 30.7 13.7 124.1 29.8 Intangible assets 46.0 9.9 364.6 50.1 Property, plant and equipment 98.4 46.6 111.2 113.6 Others 38.1 5.2 632.7 27.9 Total non-current assets 213.2 75.5 182.4 221.4 Inventories 92.1 73.0 26.2 110.5 Trade receivables 104.5 56.6 84.6 104.0 Cash and cash equivalents 75.4 17.9 321.2 52.3 Others 24.1 132.0 -81.7 20.7 Total current assets 296.0 279.5 5.9 287.4 Total assets 509.2 355.0 43.4 508.8 11

Key Figures, 9/2012 EUR million 9/12 9/11 Change % 12/11 Total equity 165.4 128.2 29.0 152.5 Total non-current liabilities 136.8 148.9 -8.1 205.6 Trade payables 90.6 31.6 186.7 90.8 Other current liabilities 116.4 46.2 151.9 59.9 Total current liabilities 207.0 77.8 166.1 150.7 Total liabilities 343.8 226.8 51.6 356.3 Total equity and liabilities 509.2 355.0 43.4 508.8 12

Key Figures, 1-9/2012 EUR million 1-9/12 1-9/11 Change % 1-12/11 Net cash from operating activities 60.8 4.4 1281.8 40.0 Cash flow after investments 52.1 -16.7 -50.2 Net working capital 82.7 88.0 -6.0 100.7 Net debt 69.4 140.0 110.7 ROI, % 20.1 19.3 18.9 Equity ratio, % 32.5 36.1 30.0 Gearing, % 42.0 109.2 72.6 No. of employees at closing 20,165 8,618 132.8 21,895 13

Key Figures, 1-9/2012 Net Sales by Geographical Areas Net Sales EUR million EUR million 260 244,8 242,0 242,0 800 227,4 240 15,6 220 700 56,8 200 600 180 500 160 140 429,8 400 109,3 120 102,0 96,9 91,9 100 300 15,1 82,3 81,0 50,7 80 19,4 60,8 200 60 176,3 166,5 40 100 20 46,8 45,4 0 0 1-9/2011 1-9/2012 2010 2011 2012 Finland Other Europe North America South America APAC Q1 Q2 Q3 Q4 Adjusted EBITDA Adjusted EBITDA % and EBIT % Illustrated net of non-recurring items, % Illustrated net of non-recurring items, EUR million 25,0 18 22,9 22,5 20,6 20,4 16 20,0 14 12 13,9 15,0 13,2 12,4 12,5 12,5 10 10,3 8 10,0 6 6,2 4 5,0 2 0,0 0 2010 2011 2012 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 EBITDA % Operating profit % Q1 Q2 Q3 Q4 14

Key Figures, 1-9/2012 Net Investments Cash Flows after Investments EUR million EUR million 60,0 52.1 100,0 90,0 40,0 80,0 70,0 14.9 20,0 60,0 79.6 50,0 0,0 40,0 30,0 -20,0 -16.7 20,0 13,2 10,0 -40,0 10.6 8.1 7.9 8.7 0,0 2010 2011 Q3/11 Q3/12 -50.2 -60,0 2010 2011 Q3/11 Q3/12 Other Investments Acquisition Return on Investment (ROI), % Earnings per Share (EPS) % EUR 0,6 0,56 30,0 25,8 0,46 0,5 25,0 0,38 0,4 20,1 19,3 0,33 18,9 0,31 0,31 20,0 0,29 0,29 0,3 0,24 15,0 0,19 0,2 10,0 0,1 0,01 5,0 0 2010 2011 2012 0,0 2010 2011 Q3/11 Q3/12 Q1 Q2 Q3 Q4 15

Key Figures, 1-9/2012 Personnel Personnel at the end of report period -7.9% 14 000 at the end of report period 12 266 25 000 12 000 21 895 20 165 20 000 10 000 8 000 15 000 6 000 4 567 10 000 6 685 4 000 2 634 5 000 2 000 354 344 0 0 APAC Finland SA Other Europe NA 2010 2011 Q3/12 R&D Personnel R&D Expenditures EUR million at the end of report period 8,0 200 6,9 172 7,0 180 5,8 5,7 160 6,0 143 4,8 140 120 5,0 120 4,0 100 3,0 80 60 2,0 40 1,0 20 0,0 0 2010 2011 Q3/11 Q3/12 2010 2011 Q3/12 16

Wiring Systems Business Segment 17 17

Key Financials, Wiring Systems EUR million 1-9/12 1-9/11 1-12/11 Net sales 663.0 252.7 477.2 EBIT before non-recurring items 44.8 28.8 42.5 % of net sales 6.8 11.4 8.9 Non-recurring items 2.9 2.0 7.0 EBIT 41.9 26.7 35.5 EUR million 7-9/12 7-9/11 1-12/11 Net sales 209.2 84.3 477.2 EBIT before non-recurring items 14.2 9.0 42.5 % of net sales 6.8 10.7 8.9 Non-recurring items 1.8 1.9 7.0 EBIT 12.5 7.1 35.5 18

Net Sales, Wiring Systems EUR million 250 226,8 226,6 224,5 209,2 200 150 100 90,2 84,3 78,2 70,8 64,1 61,8 45,7 50 0 2010 2011 2012 Q1 Q2 Q3 Q4 19

Adjusted EBIT, Wiring Systems EUR million 18,0 Illustrated net of non-recurring items 15,4 15,2 16,0 14,2 13,7 14,0 12,0 10,1 9,7 10,0 9,0 8,9 7,8 8,0 7,0 6,0 4,0 2,6 2,0 0,0 2010 2011 2012 Q1 Q2 Q3 Q4 20

Key Customer Segments • Trucks & Buses • Light vehicles • Engines • Recreational Products • Agricultural, Forestry and Construction Equipment 21

PKC Group Truck Market Share Globally North America Europe Brazil Heavy Trucks Class 8 Medium Trucks Class 5-7 PKC Other Source: ACT, October 2012; LMC Automotive forecasting Q3/2012. Note: Europe comprised of EU27 + Efta 22

Heavy Trucks Production, EU27+ EFTA Trucks >16t, units EURO 6 Source: LMC Automotive forecasting Q3/2012 23

Medium Trucks Production, EU27+ EFTA Trucks <16t, units EURO 6 Source: LMC Automotive forecasting Q3/2012 24