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

SLIDE 1

First Half 2016

BMV: RASSINI

www.rassini.com July 21, 2016

SLIDE 2

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-
ver-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 2nd Q’16 was 0.5x.
EBITDA/Net Interest Expense ratio as of 2nd Q’16 was 10.2x.

2

Consolidated 1H, 2016

(mill. Pesos)

1H, 2015

(mill. Pesos)

% Change Sales $7,809 $6,400 22% Gross Profit $2,145 $1,484 45% EBITDA $1,587 $1,079 47% Net Income before taxes and minority interest $1,015 $600 69% Net Income $854 $473 81%

SLIDE 3

Industry Update

SLIDE 4

4

Macroeconomics

Ju June e 2016

May 08 June 16

Housing Starts

Sources: Reuters, Bureau of Labor Statistics and Gas Buddy.

Exceeding a million homes for fifteen consecutive months

1.1e

Millions of houses

5.4%

Unemployment 4.9%

The lowest since May 2008 Continuing the positive momentum May 08 June 16 4.9%

Fuel Cost

2.2

US$ / Gallon

4.1 2.5 2.2

May 08 Dec 14

June 16

SLIDE 5

7.0 7.0 6.9 3.6 3.5 9.2 10.0 10.6 5.2 5.7 16.2 17.0 17.5 8.8 9.1

2013 2014 2015 1stH15 1stH16 Passenger Cars Light Trucks

15.3 16.2 17.0 17.5 18.1 18.3 18.4 2012 2013 2014 2015 2016 2017 2018 Actual IHS Forecast / June'16

US Light Vehicle SAAR

5

Annual average

3%

In Industry ry Sn Snapshot

Milli illion units its

Expected Light Vehicle Production

3% 1% 0%

Source: IHS @ June’16

 SAAR reached 16.6 million units during June 2016 due to seasonality trends.  Production in North America is expected to reach 18.1 million units in 2016 according to the experts from IHS.  June inventories closed at a level of 66 days’ supply. NAFTA Light Vehicle Production

June

16.61 14.4 15.5 16.4 17.3

8 10 12 14 16 18 20 22

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

Country 2015 2016 2017 2018 USA 11.8 12.3 11.9 11.8 CAN 2.3 2.4 2.3 2.1 MEX 3.4 3.5 4.1 4.5 NAFTA 17.5 18.1 18.3 18.4

SLIDE 6

Consolidated Financial Highlights

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

SLIDE 7

7

Consolidated Sa Sale les and EBIT ITDA

Milli illion Pes esos

s

CAGR 11-'15 Sales 8% EBITDA 16%

9,353 9,392 10,362 11,900 12,897 6,400 7,809 1,178 1,203 1,343 1,568 2,141 1,079 1,587

00

00 00 00 00 00

11 12 13 14 15 1H '15 1H '16

2

4 6 8 1 1 1

Sales EBITDA

SLIDE 8

6,400 5,565 835 7,809 7,170 639

Consolidated Rassini Nafta Brazil

1H '15 1H '16

22% 29% (23%)

1,079 1,046 33 1,587 1,581 5

Consolidated Rassini Nafta Brazil

47% 51% (85%) 8

EBITDA Sales

YT YTD Sa Sales and EBITDA by by Region

Milli illion Pes esos

s

* EBITDA before Fees and Royalties Actual dist. Sales NAFTA 92% Brazil 8% Consolidated 100% Actual dist. EBITDA NAFTA 99% Brazil 1% Consolidated 100%

SLIDE 9

2015 % 2016 %

Leaf Springs (1)

2,898

45

3,981

51

Coil Springs

673

11

833

11

NAFTA

Suspensions

3,571

56

4,814

62

Brakes (1)

1,994

31

2,356

30

TOTAL NAFTA

5,565

87

7,170

92

Leaf Springs (1)

710

11

537

7

BRAZIL Coil Springs

125

2

102

1

TOTAL BRAZIL

835

13

639

8

CONSOLIDATED SALES 6,400

100

7,809

100

(1) Includes elimination of intercompany transactions.

Jan-June Jan-June

Sales by Product and Region

9

Consolidated Sa Sale les Breakdown

Milli illion Pes esos

s

US OEMs 75% Asian OEMs 13% European OEMs 4% Aftermarket 2% Trailers Brazil 1% Other 5%

Sales distribution by customer

OEM: Original Equipment Manufacturer

SLIDE 10

10

Consolidated In Income St Statement

Milli illion Pes esos

s

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

SLIDE 11

11

Consolidated Cash Flo low

Milli illion Pes esos

s

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)

SLIDE 12

Short Term Current Portion LTD Long Term Total Suspension Division NA 8.2 25.0 62.5 95.7 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

12

As of End of June 2016

Cash balance June’16 = US$52 mill. Net Debt June’16 = US$93 mill.

Consolidated Debt

Milli illion US dolla

llars

17.2 34.8 32.6 25.0

2016

2017 2018 2019 2020

Long Term Debt Amortization Profile

US$ Million Nafta Suspensions Brakes

Note: Debt profile does not include working capital financings

SLIDE 13

0.9 1.0 2.8 0.5 0.5 14.5

Consolidated Rassini Nafta Brazil June'15 June'16

44% 50%

8.6 12.4 0.7 10.2 15.7 0.1

Consolidated Rassini Nafta Brazil *

19% 27% (86%) 19% 27% (86%

13

Net debt / EBITDA EBITDA / Net interest

Fin inancial Ratios by by Region

(T (Tim imes)

* EBITDA before Fees and Royalties

SLIDE 14

Appendix

BMV: RASSINI

www.rassini.com

SLIDE 15

What defines Rassini…

World’s largest producer of suspension components for light commercial vehicles. Largest fully integrated brake disc producer in the Americas.

15

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.

SLIDE 16

Our Products

58 % 30 % 12 %

Leaf Springs Brakes Coil Springs

SLIDE 17

Puebla, Mexico Flint, MI, USA Plymouth, MI, USA Montpelier, OH, USA Coahuila, Mexico Ecatepec, Mexico Queretaro, Mexico Sao Paulo, Brazil Rio de Janeiro, Brazil

Our Presence

17 SOUTH AMERICA

Sao Paulo, Brazil Leaf Springs and Coil Springs Rio de Janeiro, Brazil Leaf Springs

NORTH AMERICA

Coahuila, Mexico Leaf Springs and Coil Springs Xalostoc, Mexico Leaf Springs Queretaro, Mexico Elastomers and Bushing assemblies San Martin Texmelucan, Puebla Brakes Mexico City Headquarters

NORTH AMERICA

Ohio, U.S.A Coil Springs Michigan, U.S.A. Sales, engineering, research and development Flint, U.S.A. Brakes

Mexico City

92% 8% 8%

SLIDE 18

Francisco Freyre Juan Pablo Sánchez Emma Bocanegra

Thank you

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

SLIDE 19