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

BM BMV: RASSINI

www www.rassin ini. i.com

1

Third Quarter 2018

October r 23 23, , 20 2018 18

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

(mill. Pesos)

2017

(mill. Pesos)

% Change Sales $14,243 $13,593 5% Gross Profit $3,509 $3,451 2% EBITDA $2,536 $2,530 0% Net Income before taxes and minority interest $1,578 $1,493 6% Net Income $1,132 $1,203 (6%)

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In Industry Update

Auto Show Detroit 2018

Macroeconomic ics

Se September 2018

May 08 Sep 18

Housing Starts

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

Exceeding a million homes for forty- two consecutive months

1.3e

Million of houses

5.4%

Unemployment 3.8%

May 08 Sep 18 3.8%

Fuel Cost $2.90 US$ / Gallon

$4.10 $2.50 $2.90

May 08 Dec 14 Sep 18

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17.0 17.5 17.8 17.1 17.1 17.1 16.8 17.3 2014 2015 2016 2017 2018 2019 2020 2021 Actual IHS Forecast / Sep'18

7.0 6.9 6.9 5.7 4.6 3.9 10.1 10.6 11.0 11.4 8.5 8.9 17.0 17.5 17.8 17.1 13.1 12.8 2014 2015 2016 2017 3Q17 3Q18 Passenger Cars Light Trucks

U.S. Light Vehicle SAAR

Annual average

(2%)

In Industry ry Snapshot

Mil illi lion units its

Expected Light Vehicle Production in North America

(2%) 0% 3% Source: IHS @ September’18

❑ U.S. SAAR reached 17.4 million units during September 2018. ❑ Light vehicle production in North America is expected to reach 16.8 million units in 2020 according to the experts from IHS. ❑ Inventories tracked 65 days of supply as of September 30, 2018. ❑ Light Trucks production increased 5% vs previous year.

NAFTA Light Vehicle Production

Sep

5

14.4 15.5 16.4 17.4 17.5 17.2 17.4

8 10 12 14 16 18 20 22

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

Country 2017 2018 2019 2020 2021 USA 11.0 11.0 11.1 11.1 11.9 CAN 2.2 2.0 2.0 1.8 1.8 MEX 3.9 4.0 4.0 3.8 3.6 NAFTA 17.1 17.1 17.1 16.8 17.3

0%

Brazil ilia ian Veh ehic icle Productio ion

Thousands of f vehicles

By 2022 Brazil will reach 3.7 million units

Source: Sindipeças @Sep’18 6

Trucks and buses represent 86% of RNA business

❑ 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.

2,502 2,018 1,778 2,269 2,486 2,617 2,743 2,889 3,038 471 316 299 327 379 391 401 418 449 140 74 61 79 99 105 111 116 134 33 23 19 21 27 27 29 30 35

3,146 2,431 2,157 2,696 2,991 3,140 3,284 3,453 3,656

2014 2015 2016 2017 2018e 2019e 2020e 2021e 2022e

Passenger Cars Light Commercials Trucks Buses

Passenger Cars 83% Light Commercials 13% Trucks 3% Buses 1%

Consolidated Financial Highlights

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MxP/USD Sep'17 Sep'18 End 18.20 18.81 Average 18.93 19.04

Consoli lidated Sale les and EBIT ITDA

Mil illi lion Pesos

8

9,353 9,392 10,362 11,900 12,897 16,340 18,104 13,593 14,243 1,178 1,203 1,343 1,568 2,141 3,190 3,366 2,530 2,536

11 12 13 14 15 16 17 Jan - Sep '17 Jan - Sep '18

Sales EBITDA

CAGR '12-'17 Sales 14% EBITDA 23%

2,530 2,437 93 2,536 2,375 161

Consolidated Rassini NAFTA Brazil*

(3%) 74%

EBITDA Sales

YTD Sale les and EBIT ITDA by y Reg egio ion

Mil illi lion Pesos

9 * EBITDA before Fees and Royalties

13,593 12,197 1,396 14,243 12,672 1,571

Jan-Sep '17 Jan-Sep '18

5% 4% 13%

Actual dist. Sales NAFTA

89%

Brazil

11%

Consolidated

100%

Actual dist. EBITDA NAFTA

94%

Brazil

6%

Consolidated

100%

0%

Sales by Product and Region

Consoli lidated Sale les Breakdown

Mil illi lion Pesos

10

US OEMs 76% Asian OEMs 8% European OEMs 7% Aftermarket 2% Trailers Brazil 1% Other 6%

Sales distribution by customer

OEM: Original Equipment Manufacturer

2017 % 2018 %

Leaf Springs (1)

6,681

49

6,747

47

Coil Springs

1,329

10

1,213

9

NAFTA

Suspensions

8,010

59

7,960

56

Brakes (1)

4,187

31

4,712

33

TOTAL NAFTA

12,197

90

12,672

89

Leaf Springs (1)

1,191

9

1,360

10

BRAZIL Coil Springs

205

2

211

1

TOTAL BRAZIL

1,396

10

1,571

11

CONSOLIDATED SALES 13,593

100

14,243

100

(1) Includes elimination of intercompany transactions.

Jan-Sep Jan-Sep

Consoli lidated In Income Statement

Mil illi lion Pesos

11

Consolidated Jan-Sep Jan-Sep % Var 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 % 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)

Consoli lidated Cash Flo low

Mil illi lion Pesos

12

Consolidated Jan-Sep Jan-Sep % Var Cash Flow 2017 2018 18/17 EBITDA 2,530.3 2,535.6 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)

Short Term Current Portion LTD Long Term Total Suspension Division NA

8.4 25.0 6.3

39.7

Brakes Division

2.0 9.0 18.0

29.0

Suspension Division Brazil

26.8

• 0.0

26.8

TOTAL

37.2 34.0 24.3 95.5

As of End of September 2018

Cash balance Sep’18 = US$55 mill. Net Debt Sep’18 = US$41 mill.

Consoli lidated Deb ebt

Mil illi lion US S doll llars

13

9.0 8.5 34.0 6.8

2018 2019 2020 2021

Long Term Debt Amortization Profile

US$ Million NAFTA Suspensions Brakes

Note: Debt profile does not include working capital financings

11.0 15.6 1.3 12.6 15.6 2.9

Consolidated North America Brazil *

15% 0% 123%

Net debt / EBITDA EBITDA / Net interest

Fin inancia ial l Ratio tios by y Reg egio ion

(T (Tim imes)

* EBITDA before Fees and Royalties 14

0.3 0.3 4.2 0.2 0.2 2.3

Sep'17 Sep'18

28% 51% 46%

Appendix

BMV: RASSINI

www.rassini.com

What defines Rassini…

World’s largest producer

• f

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

• perational excellence.

16

57%

Leaf Springs

33%

Brakes Coil Springs

10%

Silverado

Bushings Motor balancers Clutch plates Spacers

17

• Leaf Springs and Coil Spring

São Bernardo do Campo, São Paulo

Mexico

• Brakes

San Martin, Puebla

• Leaf Springs and Coil Springs

Piedras Negras, Coahuila

• Leaf Springs

Xalostoc, Estado de Mexico

• Elastomers and Bushing Assemblies

San Juan del Rio, Queretaro

• Headquarters

Mexico City

• Coil Springs

Montpelier, Ohio

• Brakes

Flint, Michigan

• Sales , Engineering, Research

and Development Plymouth, Michigan

Brazil

• Leaf Springs

Nova Iguacu, Rio de Janeiro

USA

• Engineering Office

Stuttgart, Germany

• Engineering Office

Tokyo, Japan

5 R&D Centers

Plants around the world Operating divisions

8 4

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

BMV: RASSINI

www.rassini.com

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