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Third Quarter 2016
BMV: RASSINI
www.rassini.com
October 20, 2016
Nine-month figures 3Q 2016 Highlights
• Net revenue increased 23.3% year-over-year to $11,987 million pesos.
• EBITDA grew 41.3% year-over-year to $2,369 million pesos.
• Net income increased 58.7% year-over-year to $1,230 million pesos.
• Net Debt/annualized EBITDA ratio as of 3rd Q’16 was 0.5x.
• EBITDA/Net Interest Expense ratio as of 3rd Q’16 was 9.8x.
2
Consolidated Nine Month Results
(January 1-September 30)
2016 (mill. Pesos)
2015 (mill. Pesos)
%
Change
Sales $11,987 $9,724 23%
Gross Profit $3,227 $2,295 41%
EBITDA $2,369 $1,677 41%
Net Income before taxes
and minority interest
$1,466 $935 57%
Net Income $1,230 $775 59%
Industry Update
4
MacroeconomicsSeptember 2016
Ma
y 0
8
Se
p1
6
Housing
Starts
Sources: Reuters, Bureau of Labor Statistics and Gas Buddy.
Exceeding a million homes for
fifteen consecutive months
1.0Millions of houses
5.4%
Unemployment 5.0%
Ma
y 0
8
Se
p1
6
5.0%
Fuel Cost 2.2 US$ / Gallon4.1
2.52.2
Ma
y0
8
De
c1
4
Se
p1
6
15.316.2
17.017.5
17.9 18.0 18.2
2012 2013 2014 2015 2016 2017 2018
Actual
IHS Forecast / Sep'16
7.0 7.0 6.95.3 5.1
9.2 10.0 10.6
7.9 8.4
16.217.0 17.5
13.2 13.5
2013 2014 2015 3Q15 3Q16
Passenger Cars Light Trucks
US Light Vehicle SAAR
5
Annual average
3%
Industry SnapshotMillion units
Expected Light Vehicle Production
2%1% 1%
Source: IHS @ September’16
SAAR reached 17.8 million units during September 2016, beating analyst’s estimates.
Production in North America is expected to reach 17.9 million units in 2016 according to the experts from IHS.
September inventories closed at a level of 64 days’ supply.
NAFTA Light Vehicle Production
Sep
Country 2015 2016 2017 2018
USA 11.8 12.1 11.6 11.6
CAN 2.3 2.4 2.3 2.1
MEX 3.4 3.5 4.2 4.4
NAFTA 17.5 17.9 18.0 18.2
17.80
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 J A S
2012 2013 2014 2015 2016
Consolidated FinancialHighlights
MxP/USD Sep'15 Sep'16
End 17.01 19.50
Average 15.55 18.26
9,353 9,392
10,362
11,900
12,897
9,724
11,987
1,178 1,203 1,343
1,568
2,141
1,677
2,369
-
500
1,000
1,500
2,000
2,500
3,000
11 12 13 14 15 Jan-Sep'15
Jan-Sep'16
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Sales EBITDA
7
Consolidated Sales and EBITDA Million Pesos
CAGR 11-'15
Sales 8%
EBITDA 16%
1,677 1,645
36
2,369 2,337
33
Consolidated Rassini Nafta Brazil
41% 42%
(8%)
9,7248,591
1,133
11,98711,020
967
Jan-Sep '15 Jan-Sep '16
23% 28%
(15%)
8
EBITDA
Sales
YTD Sales and EBITDA by RegionMillion Pesos
* EBITDA before Fees and Royalties
Actual dist. EBITDA
NAFTA 99%
Brazil 1%
Consolidated 100%
Actual dist. Sales
NAFTA 92%
Brazil 8%
Consolidated 100%
Sales by Product and Region
9
Consolidated Sales BreakdownMillion Pesos
2015 % 2016 %
Leaf Springs (1) 4,530 47 6,097 51
Coil Springs 1,032 11 1,256 10
NAFTA Suspensions 5,562 57 7,353 61
Brakes (1) 3,029 31 3,667 31
TOTAL NAFTA 8,591 88 11,020 92
Leaf Springs (1) 956 10 803 7
BRAZIL Coil Springs 177 2 164 1
TOTAL BRAZIL 1,133 12 967 8
CONSOLIDATED SALES 9,724 100 11,987 100
(1) Includes elimination of intercompany transactions.
Jan-Sep Jan-Sep
US OEMs75%
Asian OEMs13%
European OEMs4%
Aftermarket2%
Trailers Brazil1%
Other5%
Sales distribution by customer
OEM: Original Equipment Manufacturer
10
Consolidated Income StatementMillion Pesos
Consolidated Jan-Sep Jan-Sep % Var
Income Statement 2015 2016 16/15
Net Sales 9,724.2 11,987.2 23
Cost of sales 7,429.0 8,760.3 (18)
Gross Profit 2,295.2 3,226.9 41
% of sales 24 27
SG&A 618.6 857.8 (39)
EBITDA 1,676.6 2,369.1 41
% of sales 17 20
Depreciation 422.4 553.8 (31)
Interest & other financial charges 205.9 252.4 (23)
Other expenses 113.1 97.2 14
Income before Taxes & Minority Int. 935.2 1,465.7 57
Other non-recurring income - (134.9) 100
Taxes & Deferred Taxes 220.5 435.4 (97)
Minority Interest (60.4) (64.7) (7)
Net Income 775.1 1,229.9 59
11
Consolidated Cash FlowMillion Pesos
Consolidated Jan-Sep Jan-Sep % Var
Cash Flow 2015 2016 16/15
EBITDA 1,676.6 2,369.1 41
Working Capital and Taxes (320.2) (723.1)
Net operating cash flow 1,356.4 1,646.0 21
Interest expense (172.3) (206.9)
Cash flow after int. expense 1,184.1 1,439.1 22
Capex (340.6) (602.9)
Cash flow available for debt service 843.5 836.2 (1)
Financing & Debt Amortization (322.6) (194.0)
Dividends paid (250.0) (480.0)
Other (267.2) (210.9)
Beginning cash balance 845.2 1,223.0
Ending cash balance 848.9 1,174.3 38
Short
Term
Current
Portion
LTD
Long
Term Total
Suspension Division NA 8.2 25.0 56.3 89.5
Brakes Division 10.0 - 36.0 46.0
Suspension Division Brazil 8.5 - 2.6 11.1
TOTAL 26.7 25.0 94.9 146.6
12
As of End ofSeptember 2016
Cash balance Sep’16 = US$60 mill.
Net Debt Sep’16 = US$86 mill.
Consolidated DebtMillion US dollars
6.3
27.334.0 34.0
9.0 6.8
2016 2017 2018 2019 2020 2021
Long Term Debt Amortization ProfileUS$ Million
Suspensions Division NA Brakes Division
Note: Debt profile does not include working capital financings and Brazil
8.4
12.0
0.6
9.8
14.5
0.4
Consolidated Rassini Nafta Brazil *
17%
21%
(33%)
13
Net debt / EBITDA
EBITDA / Net interest
Financial Ratios by Region(Times)
* EBITDA before Fees and Royalties
0.91.0
3.0
0.5 0.5
4.1
Sep'15 Sep'16
44% 50%
(37%)
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 producerin 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.
Our Products
58%31
%
11%
Leaf Springs
Brakes
Coil Springs
• Leaf Springs and Coil Spring
São Bernardo do Campo, São Paulo
Mexico
• BrakesSan Martin, Puebla
• Leaf Springs and Coil Springs
Piedras Negras, Coahuila
• Leaf SpringsXalostoc, Estado de Mexico
• Elastomers and Bushing AssembliesSan Juan del Rio, Queretaro
• HeadquartersMexico City
• Coil Springs
Montpelier, Ohio
• BrakesFlint, Michigan
• Sales , Engineering, Research
and DevelopmentPlymouth, Michigan
Brazil
• Leaf SpringsNova Iguacu, Rio de Janeiro
USA• Engineering Office
Stuttgart, Germany
• Engineering Office
Tokyo, Japan
Juan Pablo Sánchez
Francisco Freyre
Emma Bocanegra
CFO
Assistant VP Inv. Rel. and Finance
Financial Planning Manager and Inv. Rel.
BMV: RASSINI
www.rassini.com
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