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BMV: RASSINIwww.rassini.com
1
First Quarter 2018April 24, 2018
First Quarter 2018 Highlights
• Net revenue climbed to $4,748 million pesos.
• EBITDA reached $923 million pesos.
• Net income was $456 million pesos.
• Net Debt/annualized EBITDA ratio as of 1st Q’18 was 0.1x.
• EBITDA/Net Interest Expense ratio as of 1st Q’18 was 13.5x.
Consolidated First Quarter 2018 Results
(January 1- March 31)
2018(mill. Pesos)
2017(mill. Pesos)
% Change
Sales $4,748 $4,880 (3%)
Gross Profit $1,223 $1,309 (7%)
EBITDA $923 $998 (8%)
Net Income before taxes and
minority interest
$590 $598 (1%)
Net Income $456 $457 0%
2
Industry Update
Auto Show Detroit 2018
MacroeconomicsMarch 2018
Ma
y 0
8
Ma
r 1
8
Housing Starts
Sources: Reuters, U.S. Bureau of Labor Statistics and Gas Buddy.
Exceeding a million homes for
thirty-five consecutive months
1.3Million of houses
5.4%
Unemployment 4.1%
Ma
y 0
8
Ma
r 1
8
4.1%
Fuel Cost $2.70 US$ / Gallon
$4.10$2.50
$2.70
Ma
y0
8
De
c1
4
Ma
r 1
8
4
7.0 6.9 6.9 5.7
1.6 1.4
10.1 10.6 11.011.4
2.9 3.0
17.0 17.5 17.8 17.1
4.5 4.4
2014 2015 2016 2017 1Q17 1Q18Passenger Cars Light Trucks
15.2 15.5 16.9 17.4 17.5 17.8
17.4
8
10
12
14
16
18
20
22
J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M
2012 2013 2014 2015 2016 2017 2018
17.017.5 17.8
17.1
17.3 17.3 17.4
2014 2015 2016 2017 2018 2019 2020
Actual
IHS Forecast / Mar'18
U.S. Light Vehicle SAAR
Annual average
(3%)
Industry SnapshotMillion units
Expected Light Vehicle Production in North America1%
1% 0%
Source: IHS @ March’18
U.S. SAAR reached 17.4 million units during March 2018. Light vehicle production in North America is expected to reach
17.4 million units in 2020 according to the experts from IHS. Inventories tracked 68 days of supply as of March 31, 2018. Light Trucks production increased 4% vs previous year.
NAFTA Light Vehicle Production
Mar
5
Country 2017 2018 2019 2020
USA 11.0 11.1 11.2 11.5
CAN 2.2 2.1 2.0 1.8
MEX 3.9 4.1 4.1 4.1
NAFTA 17.1 17.3 17.3 17.4
Passenger Cars
84%
Light
Commercials
12%
Trucks
3%
Buses
1%
Brazilian Vehicle ProductionThousands of vehicles
By 2022 Brazil will reach 3.6 million units
Source: Sindipeças @Mar’18 6
Trucks and buses represent 86% of
RNA business
2,502
2,018 1,778
2,269 2,535 2,660 2,771 2,883 2,998
471
316
299
327
380 394
419 431
440 140
74
61
79
97 100
106 112
129 33
23
19
21
26 26
28 29
33 3,146
2,431
2,157
2,696
3,038 3,180
3,324 3,455
3,600
2014 2015 2016 2017 2018e 2019e 2020e 2021e 2022e
Passenger Cars Light Commercials Trucks Buses
During 1st Q’18, vehicle production increased 15% and vehicle exportation experienced 3% growth compared to the same period in 2017.
Sindipeças expects 2018 production to increase 13% vs 2017 with approximately 5% annual growth during the following years.
Consolidated FinancialHighlights
7
MxP/USD Mar'17 Mar'18
End 18.81 18.34
Average 20.39 18.77
9,353 9,392 10,362
11,900 12,897
16,340
18,104
4,880 4,748
1,178 1,203 1,343
1,568
2,141
3,190 3,366
998 923
11 12 13 14 15 16 17 Jan - Mar'17
Jan - Mar'18
Sales EBITDA
Consolidated Sales and EBITDA Million Pesos
8
CAGR '12-'17
Sales 14%
EBITDA 23%
998 986
12
923 862
61
Consolidated Rassini NAFTA Brazil*
(8%)
(13%)
399%
EBITDA
Sales
YTD Sales and EBITDA by Region Million Pesos
9* EBITDA before Fees and Royalties
4,8804,462
418
4,7484,186
561
Jan-Mar '17 Jan-Mar '18
(3%) -6%
34%
Actual dist. Sales
NAFTA 88%
Brazil 12%
Consolidated 100%
Actual dist. EBITDA
NAFTA 93%
Brazil 7%
Consolidated 100%
Sales by Product and Region
Consolidated Sales BreakdownMillion Pesos
10
2017 % 2018 %
Leaf Springs (1) 2,488 51 2,211 47
Coil Springs 483 10 404 8
NAFTA Suspensions 2,971 61 2,615 55
Brakes (1) 1,491 31 1,571 33
TOTAL NAFTA 4,462 91 4,186 88
Leaf Springs (1) 351 7 490 10
BRAZIL Coil Springs 67 1 71 2
TOTAL BRAZIL 418 9 561 12
CONSOLIDATED SALES 4,880 100 4,748 100
(1) Includes elimination of intercompany transactions.
Jan-Mar Jan-Mar
US OEMs 74%
Asian OEMs8%
European OEMs
7%
Aftermarket2%
Trailers Brazil 1%
Other 8%
Sales distribution by customer
OEM: Original Equipment Manufacturer
Consolidated Income Statement Million Pesos
11
Consolidated Jan-Mar Jan-Mar % Var
Income Statement 2017 2018 18/17
Net Sales 4,879.9 4,747.5 (3)
Cost of sales 3,570.5 3,524.6 1
Gross Profit 1,309.4 1,222.9 (7)
% of sales 27 26
SG&A 311.3 300.0 4
EBITDA 998.1 922.9 (8)
% of sales 20 19
Depreciation 214.8 195.1 9
Interest & other financial charges 82.5 71.3 14
Other expenses 102.9 66.5 35
Income before Taxes & Minority Int. 597.9 590.0 (1)
Other non-recurring income - - 100
Taxes & Deferred Taxes 186.7 138.3 26
Minority Interest (46.1) (3.9) 92
Net Income 457.3 455.6 (0)
Consolidated Cash FlowMillion Pesos
12
Consolidated Jan-Mar Jan-Mar % Var
Cash Flow 2017 2018 18/17
EBITDA 998.1 922.9 (8)
Working Capital and Taxes (424.3) (551.2)
Net operating cash flow 573.8 371.7 (35)
Interest expense (57.8) (51.0)
Cash flow after int. expense 516.0 320.7 (38)
Capex (159.5) (191.5)
Cash flow available for debt service 356.5 129.2 (64)
Financing & Debt Amortization (61.6) (180.3)
Other (193.8) (112.9)
Beginning cash balance 1,913.1 1,990.6
Ending cash balance 2,014.2 1,826.6 (9)
Short Term
Current
Portion
LTD
Long
Term Total
Suspension Division NA 8.5 25.0 18.7 52.2
Brakes Division 4.0 9.0 22.5 35.5
Suspension Division Brazil 32.5 - 0.1 32.6
TOTAL 45.0 34.0 41.3 120.3
As of End ofMarch 2018
Cash balance Mar’18 = US$100 mill.Net Debt Mar’18 = US$21 mill.
Consolidated Debt Million US dollars
13
9.0
25.534.0
6.8
2018 2019 2020 2021
Long Term Debt Amortization ProfileUS$ Million
NAFTA Suspensions Brakes
Note: Debt profile does not include working capital financings
0.2 0.3
10.2
0.1 0.22.4
Mar'17 Mar'18
51% 39%
76%
12.5
18.8
0.5
13.5
17.9
2.9
Consolidated North America Brazil *
8%
-5%
480%
Net debt / EBITDA
EBITDA / Net interest
Financial Ratios by Region (Times)
* EBITDA before Fees and Royalties 14
Appendix
BMV: RASSINI
www.rassini.com
What defines Rassini…
World’s largest producer ofsuspension components for lightcommercial vehicles
Largest fully integrated brakedisc producer in the Americas
Leader in technology and marketshare designing and producingsuspension components and highperformance brake rotors.
Within the Top 100 North Americansuppliers by Automotive News.
Recognized year after year for ouroperational excellence.
16
57%
Leaf Springs
33%
Brakes
Coil Springs
10%
Silverado
Bushings
Motor balancersClutch plates
Spacers
17
• Leaf Springs and Coil SpringSão Bernardo do Campo, São Paulo
Mexico
• BrakesSan Martin, Puebla
• Leaf Springs and Coil SpringsPiedras Negras, Coahuila
• Leaf SpringsXalostoc, Estado de Mexico
• Elastomers and Bushing AssembliesSan Juan del Rio, Queretaro
• HeadquartersMexico City
• Coil SpringsMontpelier, Ohio
• BrakesFlint, Michigan
• Sales , Engineering, Researchand Development
Plymouth, Michigan
Brazil
• Leaf SpringsNova Iguacu, Rio de Janeiro
USA• Engineering Office
Stuttgart, Germany
• Engineering OfficeTokyo, Japan
5 R&D Centers
Plants around the world
Operating divisions
84
18
Juan Pablo Sánchez
Emma Bocanegra
Edgar Landeros
CFO
Financial Planning & IR
Financial Analyst & IR
BMV: RASSINI
www.rassini.com
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