INVESTOR PRESENTATION Q3 2014 - PKC Group2013 2014 Q1 Q2 Q3 Q4 18.5 12.0 20.2 13.0 16.6 15.2 15.2 0 5 10 15 20 25 2013 2014 Q1 Q2 Q3 Q4 Revenue EUR million Adjusted EBITDA EUR million

INVESTOR PRESENTATION Q3 2014:

October 30, 2014

Matti Hyytiäinen, President & CEO

REVENUE AND COMPARABLE EBITDA IMPROVED FROM PREVIOUS QUARTER

PKC’s Operations

• Utilization rates improved in North America

• Development program progressing in Europe

and South America

2

Business Environment

Q3/2014 Highlights

• Heavy and medium duty truck production

decreased from previous year in Europe and

South America

• North American heavy duty truck production

increased from previous year driven by

healthy truck demand

PKC’s Financial Performance

• Revenue and comparable EBITDA improved

from previous quarter

• Cash flow from operations positive EUR 6.5

million in the third quarter

PKC Investor Presentation Q3 2014

Maximizing current PKC set-up

3

Strategy 2018 Update

• Nogales (Mexico), Sosnowiec (Poland),

Haapsalu (Estonia) and Itajuba (Brazil)

factories are to be closed by year end of 2014

• New flexible and cost-efficient factories in

Lithuania and Serbia are in production and

continue to be further ramped up


Penetrating into APAC

• Awards received for design and manufacturing

of multiple programs in China which are to

ramped up during 2015

• Quotation activities are increasing in China

4

Key Figures


1) Excluding PPA depreciation and amortisation and non-recurring asset impairment and write-downs2) Q3/14 includes additional tax liability of EUR 8.3 million

EUR million 7-9/14 7-9/13 Change % 1-9/14 1-9/13 Change % 2013

Revenue 210.7 211.6 -0.5 620.7 671.9 -7.6 884.0

EBITDA1) 15.2 17.0 -10.8 39.7 56.4 -29.6 70.3

EBITDA1) % 7.2 8.0 6.4 8.4 8.0

Non-recurring items -12.4 -1.7 633.4 -16.6 -8.3 99.1 -10.4

Operating profit -4.0 7.9 -151.1 3.0 25.9 -88.6 30.5

Diluted EPS (EUR) -0.73 0.14 -629.8 -0.58 0.55 -205.1 0.62

Cash flow from operations 6.5 8.4 -22.2 6.6 16.8 -60.5 39.7

Gross capital expenditure 4.4 3.6 21.7 16.0 10.5 52.3 14.6

Net working capital2) 66.9 82.1 -18.5 66.9 82.1 -18.5 63.5

Total assets 466.0 503.1 -7.4 466.0 503.1 -7.4 455.6

Gearing, % 12.9 9.0 12.9 9.0 -1.1

Revenue

PKC Investor Presentation Q3 2014 5

128.9 130.7 120.2 111.6 114.4 120.7129.7

0

50

100

150

200

250

Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14

North America Europe

EUR million EUR million

South America

EUR million

Total Group

EUR million

56.0 61.6 54.4 64.8 54.4 51.9 45.4

13.0 12.0 10.910.1

9.7 9.6 9.6

0

50

100

150

200

250

Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14

22.2 23.6 20.2 20.2 17.0 16.7 19.50

50

100

150

200

250

Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14

208.4 217.2 196.4 198.4 188.4 191.5 195.6

16.717.9

15.3 13.7 15.4 14.7 15.1

0

50

100

150

200

250

Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14

Average Number of Personnel


12,151 11,617 11,051 11,126 11,081 11,507 12,265

0

5,000

10,000

15,000

20,000

25,000

Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14

North America Europe

South America Total Group

4,305 4,508 4,404 4,769 4,676 4,661 5,131417 302 266 245 236 242 233

0

5,000

10,000

15,000

20,000

25,000

Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14

3,035 3,335 3,076 2,964 2,838 2,766 2,6680

5,000

10,000

15,000

20,000

25,000

Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14

19,526 19,501 18,589 18,921 18,659 19,004 20,136

745 664647 620 616 652

631

0

5,000

10,000

15,000

20,000

25,000

Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14

Net Working Capital

7

84.6109.0 112.9 106.1 92.7 105.7 102.8 112.3

87.5

92.1 87.8 87.780.2

80.4 82.2 83.4

-75.5 -94.8 -90.8 -88.4 -88.7 -87,0 -86.3 -95.9

-23.8-25.3 -26.6 -23.4 -20.7

-17.6 -20.5-32.9

0

2

4

6

8

10

12

14

16

-150

-100

-50

0

50

100

150

200

250

Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14

Trade receivables Inventories

Trade payables Other liabilities and receivables***

NWC* % of Revenue**

81.0 83.2

72.782.0

63.5 81.6 78.266.9

EUR million %

* Average of previous four quarters ** Revenue of previous 12 months


*** related to employee benefits, taxes and financial items,

Q3/14 includes additional tax liability of EUR 8.3 million

Inventories Trade receivables

Cash Flow

39.7

16.8

6.6

-14.8

-10.3

-16.7

24.9

6.4

-10.0

-20

-10

0

10

20

30

40

50

2013 1-9/13 1-9/14

Cash from operations Capital expenditure Free cash flow

8

EUR million


-2.2

17.8

22.8

0.0

0.3

0.6

-0.4

0.0

0.4

0.8

1.2

1.6

2.0

2.4

-10

0

10

20

30

40

50

60

70

80

90

100

2013 Q3/13 Q3/14

Net debt Net debt to EBITDA*

Balance Sheet and Returns

9

42.7

39.1

38.0

35

36

37

38

39

40

41

42

43

44

2013 Q3/13 Q3/14

Equity ratio, %

-1.1

9.0 12.9

-10

0

10

20

30

40

50

60

70

80

90

100

2013 Q3/13 Q3/14

Gearing, %

7.8 9.0

-10.1

14.7 15.2

7.3

-15

-10

-5

0

5

10

15

20

2013 Q3/13 Q3/14

ROE, % ROI, %

% %

EUR million %

PKC Investor Presentation Q3 2014*EBITDA of previous 12 months

10

Wiring Systems Segment, Q3/2014

• Revenue increased 2% from previous

quarter and remained at the same level

as previous year

– No FX conversion impact in Q3

– Light-vehicle build-outs reduced revenue in

North America

– In Europe, the revenue has also been

impacted by changes in the product

portfolio

• Adjusted EBITDA increased from

previous quarter, but decreased from

previous year level

– Losses continued in Brazil, however at a

lower level than in Q2

– Fluctuating utilization rates

– Reorganisation and program transfers in

Europe

208.4

188.4

217.2

191.5

196.4 195.6198.4

170

180

190

200

210

220

2013 2014

Q1 Q2 Q3 Q4

18.5

12.0

20.2

13.0

16.615.215.2

0

5

10

15

20

25

2013 2014

Q1 Q2 Q3 Q4

RevenueEUR million

Adjusted EBITDAEUR million

Illustrated net of non-recurring items


PKC Market Share 1-9/2014

58%

42%

North America BrazilEurope

Medium

Duty

Trucks

Heavy

Duty

Trucks

PKC

OtherSource: PKC Group, ACT Build History October 2014, LMC Automotive forecasting Q3/2014. Note: Europe comprised of EU27 + Efta

APAC


21%

79%

35%

65%

40%

60%

36%

64%

EU27+ EFTA Truck Production

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

1-9/2013 1-9/2014 2013 2014 2015 2016 2017 2018

Heavy Duty Trucks Medium Duty Trucks

• Transition to Euro 6 emission standard at the beginning of 2014 has kept the

demand of trucks below the level of previous year

• The economic environment especially in the southern parts of Europe has

suppressed truck demand

12

units

Source: LMC Automotive forecasting Q3/2014

EURO 6

-1%

-15%

-8%

-18%


North America Production

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

1-9/2013 1-9/2014 2013 2014 2015 2016 2017 2018


+18%

+20%

+2%

+5%

• The conditions have remained favourable

for healthy truck demand in North

America

• The transportation companies continue to

enjoy a good profit environment and

buying plans remain elevated

13

units


EPA 2014

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

1-9/13 1-9/14 2013 2014 2015 2016 2017 2018

+9%

+7%

Light Vehicle (Pick-up and SUV)


Brazil Truck Production

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

1-9/2013 1-9/2014 2013 2014 2015 2016 2017 2018


-12%

-14%-17%

-18%

• In Brazil the current economic situation has had a negative impact on the demand

for trucks

• In third quarter there was seasonal growth of truck production in comparison to

the second quarter

14

units



15

Electronics Segment, Q3/2014

• Revenue increased 3% from previous

quarter and decreased 1% year-on-

year

• Due to seasonalities and different

sales mix the profitability was lower

than in the comparison period even

though the cost structure has improved

due to measures implemented during

2013

16.715.4

17.9

14.715.3 15.113.7

0

5

10

15

20

2013 2014

Q1 Q2 Q3 Q4

1.5

1.2

2.1

0.8

1.7

1.2

0.6

0.0

0.5

1.0

1.5

2.0

2.5

2013 2014Q1 Q2 Q3 Q4

EUR million

EUR million

Illustrated net of non-recurring items

Adjusted EBITDA

Revenue

Market Outlook – Full Year 2014

• The market demand for Electronics

segment’s products is expected to

remain at the present level


Market Outlook – Full Year 2014

• European heavy duty truck

production is estimated to decrease

by 8% and medium duty truck

production by 18% compared to

2013.

• North American heavy duty truck

production is estimated to increase



2013.

• Brazilian heavy duty truck

production is estimated to decrease



2013.

16PKC Investor Presentation Q3 2014

PKC Group’s Outlook

• PKC Group estimates that 2014

revenue and comparable EBITDA will

be lower than in 2013.

• Revenue estimate is based on

current business structure. Revenue

will be affected by light vehicle build-

outs in North America and by

changes in exchange rates.

• Comparable EBITDA in 2014 will

also be affected by reorganisation

and program transfers in Europe and

expenditures related to the

implementation of PKC’s growth

strategy.

• In 2013, PKC’s revenue was EUR 884.0 million and

comparable EBITDA before non-recurring items was

EUR 70.3 million


PKC’s Strategy Captures Growth

Opportunities

18PKC Investor Presentation Q3 2014

PKC Group Plc

Unioninkatu 20-22

FI-00130 Helsinki, Finland

www.pkcgroup.com

Documents

INVESTOR PRESENTATION Q3 2014 - PKC Group2013 2014 Q1 Q2 Q3 Q4 18.5 12.0 20.2 13.0 16.6 15.2 15.2 0 5 10 15 20 25 2013 2014 Q1 Q2 Q3 Q4 Revenue EUR million Adjusted EBITDA EUR million