Third Quarter 2018 BM BMV: RASSINI www www.rassin ini. i.com - PowerPoint PPT Presentation

Third Quarter 2018 BM BMV: RASSINI www www.rassin ini. i.com October r 23 23, , 20 2018 18 1

Fir irst t nin ine month ths of f 2018 H Hig ighlights ts Millio illion Peso esos • Net revenue climbed to $14,243 million or 5% YoY. • EBITDA reached $2,536 million. • Net operating cash flow was $1,592 million. • Net Debt/annualized EBITDA ratio as of September 30 was 0.2x. • EBITDA/Net Interest Expense ratio as of September 30 was 12.6x. Consolidated Nine Months 2018 Results (January 1- September 30) 2018 2017 % Change (mill. Pesos) (mill. Pesos) $14,243 $13,593 5% Sales Gross Profit $3,509 $3,451 2% EBITDA $2,536 $2,530 0% Net Income before taxes and $1,578 $1,493 6% minority interest $1,132 $1,203 (6%) Net Income 2

In Industry Update Auto Show Detroit 2018

Macroeconomic ics Se September 2018 Housing 1.3e Starts Unemployment 3.8% Million of houses 5.4% Sep 18 3.8% May 08 May 08 Sep 18 Exceeding a million homes for forty- two consecutive months Fuel Cost $2.90 US$ / Gallon $4.10 $2.90 $2.50 May 08 Dec 14 Sep 18 4 Sources: Reuters, U.S. Bureau of Labor Statistics and Gas Buddy.

In Industry ry Snapshot U.S. Light Vehicle SAAR Mil illi lion units its 22 Annual average Expected Light Vehicle Production in North America 16.4 17.4 17.2 14.4 15.5 17.5 20 Sep 17.8 17.5 0% 0% 3% 17.4 (2%) 17.0 17.1 18 17.1 17.1 17.3 16.8 16 Country 2017 2018 2019 2020 2021 14 USA 11.0 11.0 11.1 11.1 11.9 CAN 2.2 2.0 2.0 1.8 1.8 12 MEX 3.9 4.0 4.0 3.8 3.6 NAFTA 17.1 17.1 17.1 16.8 17.3 10 8 Actual J A J O J A J O J A J O J A J O J A J O J A J O J A J 2012 2013 2014 2015 2016 2017 2018 IHS Forecast / Sep'18 NAFTA Light Vehicle Production (2%) 17.8 2014 2015 2016 2017 2018 2019 2020 2021 17.5 17.0 17.1 ❑ U.S. SAAR reached 17.4 million units during September 2018. 13.1 12.8 ❑ Light vehicle production in North America is expected to reach 11.0 10.6 10.1 11.4 16.8 million units in 2020 according to the experts from IHS. 8.5 8.9 ❑ Inventories tracked 65 days of supply as of September 30, 2018. ❑ Light Trucks production increased 5% vs previous year. 7.0 6.9 6.9 5.7 4.6 3.9 2014 2015 2016 2017 3Q17 3Q18 Passenger Cars Light Trucks Source: IHS @ September’18 5

Brazil ilia ian Veh ehic icle Productio ion Thousands of f vehicles Passenger Cars Light Commercials Trucks Buses 3,656 3,453 3,146 3,284 35 3,140 30 134 2,991 29 116 33 27 2,696 449 111 27 2,431 418 105 140 Trucks and buses 401 99 21 391 2,157 471 379 79 23 represent 86% of 327 74 19 316 RNA business 61 299 3,038 2,889 2,743 2,617 2,502 2,486 2,269 2,018 1,778 Trucks Buses Light 3% 1% Commercials 13% 2014 2015 2016 2017 2018e 2019e 2020e 2021e 2022e By 2022 Brazil will reach 3.7 million units Passenger Cars 83% ❑ During the first nine months of 2018, vehicle production increased 11%. ❑ Sindipeças expects total year-end 2018 production to increase 11% vs 2017 with approximately 5% annual growth during the following years. Source: Sindipeças @Sep’18 6

Consolidated Financial Highlights Sep'17 Sep'18 MxP/USD End 18.20 18.81 Average 18.93 19.04 7

Consoli lidated Sale les and EBIT ITDA Mil illi lion Pesos CAGR '12-'17 Sales 14% 18,104 EBITDA 23% 16,340 Sales EBITDA 13,593 14,243 12,897 3,366 3,190 11,900 10,362 9,353 9,392 2,536 2,530 2,141 1,568 1,343 1,203 1,178 11 12 13 14 15 16 17 Jan - Sep Jan - Sep '17 '18 8

YTD Sale les and EBIT ITDA by y Reg egio ion Mil illi lion Pesos Sales Jan-Sep '17 Jan-Sep '18 Actual dist. Sales 5% NAFTA 89% 4% Brazil 11% Consolidated 14,243 100% 13,593 12,672 12,197 13% 1,571 1,396 EBITDA Actual dist. EBITDA 0% NAFTA 94% (3%) Brazil 6% Consolidated 100% 2,530 2,536 2,437 2,375 74% 93 161 Consolidated Rassini NAFTA Brazil* * EBITDA before Fees and Royalties 9

Consoli lidated Sale les Breakdown Mil illi lion Pesos Sales by Product and Region Jan-Sep Jan-Sep Sales distribution by customer % % 2017 2018 Other 6,681 6,747 Leaf Springs (1) 49 47 6% Trailers Brazil 1,329 1,213 Coil Springs 10 9 1% Aftermarket 2% NAFTA 8,010 7,960 Suspensions 59 56 European OEMs 7% US OEMs 4,187 4,712 Brakes (1) 31 33 Asian OEMs 76% 8% 12,197 12,672 TOTAL NAFTA 90 89 1,191 1,360 Leaf Springs (1) 9 10 205 211 BRAZIL Coil Springs 2 1 1,396 1,571 TOTAL BRAZIL 10 11 OEM: Original Equipment Manufacturer CONSOLIDATED SALES 13,593 14,243 100 100 (1) Includes elimination of intercompany transactions. 10

Consoli lidated In Income Statement Mil illi lion Pesos % Var Consolidated Jan-Sep Jan-Sep Income Statement 2017 2018 18/17 Net Sales 13,592.6 14,242.5 5 Cost of sales 10,141.6 10,733.7 (6) Gross Profit 3,451.0 3,508.8 2 % of sales 25 25 SG&A 920.7 973.2 (6) EBITDA 2,530.3 2,535.6 0 % of sales 19 18 Depreciation 570.3 602.9 (6) Interest & other financial charges 238.3 191.0 20 Other expenses 228.8 164.2 28 Income before Taxes & Minority Int. 1,492.9 1,577.5 6 Taxes & Deferred Taxes 372.7 473.4 (27) Minority Interest (82.8) (27.8) 66 Net Income 1,203.0 1,131.9 (6) 11

Consoli lidated Cash Flo low Mil illi lion Pesos % Var Consolidated Jan-Sep Jan-Sep Cash Flow 2017 2018 18/17 EBITDA 2,530.3 2,535.6 0 Working Capital and Taxes (761.9) (943.6) Net operating cash flow 1,768.4 1,592.0 (10) Interest expense (170.5) (155.0) Cash flow after int. expense 1,597.9 1,437.0 (10) Capex (622.9) (696.9) Cash flow available for debt service 975.0 740.1 (24) Financing & Debt Amortization (374.8) (660.0) Dividends paid (640.3) (800.3) Other (385.9) (236.0) Beginning cash balance 1,913.1 1,990.6 Ending cash balance 1,487.1 1,034.4 (30) 12

Consoli lidated Deb ebt Mil illi lion US S doll llars As of End of Current Long Short Term Portion Total September 2018 Term LTD 39.7 8.4 25.0 6.3 Suspension Division NA Cash balance Sep’18 = US$55 mill. 29.0 2.0 9.0 18.0 Net Debt Sep ’ 18 = US$41 mill. Brakes Division 26.8 26.8 - 0.0 Suspension Division Brazil 37.2 34.0 24.3 95.5 TOTAL Long Term Debt Amortization Profile US$ Million 34.0 8.5 9.0 6.8 2018 2019 2020 2021 NAFTA Suspensions Brakes Note: Debt profile does not include working capital financings 13

Fin inancia ial l Ratio tios by y Reg egio ion (Tim (T imes) Net debt / EBITDA Sep'17 Sep'18 46% 4.2 51% 28% 2.3 0.3 0.3 0.2 0.2 EBITDA / Net interest 0% 15% 15.6 15.6 123% 12.6 11.0 1.3 2.9 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

Motor balancers Clutch plates Brakes Spacers 33 % Bushings Leaf Springs 57 % Silverado Coil Springs 10 % 17

8 Plants around the world 4 Operating divisions USA • Engineering Office • Coil Springs Stuttgart, Germany Montpelier, Ohio • Sales , Engineering, Research • Engineering Office and Development Tokyo, Japan Mexico Plymouth, Michigan • Brakes • Leaf Springs and Coil Springs Flint, Michigan Piedras Negras, Coahuila • Leaf Springs Xalostoc, Estado de Mexico • Elastomers and Bushing Assemblies Brazil San Juan del Rio, Queretaro • Brakes • Leaf Springs and Coil Spring San Martin, Puebla São Bernardo do Campo, São Paulo • Headquarters • Leaf Springs Mexico City Nova Iguacu, Rio de Janeiro 5 R&D Centers 18

Juan Pablo Sánchez CFO jsanchez@rassini.com Berenice Muñoz Financial Planning Manager & IR bmunoz@rassini.com Edgar Landeros Financial Planning & IR elanderos@rassini.com Carlos Redondo Financial Analyst & IR credondo@rassini.com BMV : RASSINI www.rassini.com

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