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First Quarter 2016
BMV: RASSINI
www.rassini.com
April 22, 2016
First Quarter 2016 Highlights
• Net revenue increased 18.8% year-over-year to $3,809 million pesos.
• EBITDA grew 45.2% year-over-year to $779 million pesos.
• Net income before taxes and minority interest increased 67.5% year-over-year to $499 million pesos.
• Net income increased 106.2% year-over-year to $502 million pesos.
• Net Debt/annualized EBITDA ratio as of 1st Q’16 was 0.5x.
• EBITDA/Net Interest Expense ratio as of 1st Q’16 was 10.5x.
2
Consolidated 1st Q, 2016
(mill. Pesos) 1
st Q, 2015
(mill. Pesos) %
Change
Sales $3,809 $3,207 19%
Gross Profit $1,051 $724 45%
EBITDA $779 $537 45%
Net Income before taxes and
minority interest
$499
$298
68%
Net Income $502 $244 106%
Industry Update
4
Macroeconomics March 2016
Ma
y 0
8
Ma
r 1
6
Housing
Starts
Sources: Reuters, Bureau of Labor Statistics and Gas Buddy.
Exceeding a million homes for
twelve consecutive months
1.2e Millions of houses
5.4%
Unemployment 5.0%
The lowest since May 2008
Ma
y 0
8
Ma
r 1
6
5.0%
Fuel Cost 2.1 US$ / Gallon 4.1
2.5 2.1
Ma
y 0
8
De
c 1
4
Ap
r 1
6
16.46
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
2012 2013 2014 2015 2016
7.0 7.0 6.9
1.8 1.7
9.2 10.0 10.6
2.5 2.8
16.217.0 17.5
4.3 4.5
2013 2014 2015 1stQ15 1stQ16
Passenger Cars Light Trucks
15.3
16.2
17.017.5
18.2 18.4 18.5
2012 2013 2014 2015 2016 2017 2018
Actual
IHS Forecast / Mar'16
US Light Vehicle SAAR
5
Annual average
5%
Industry Snapshot Million units
Expected Light Vehicle Production
4% 1% 0%
Source: IHS @ March’16
SAAR reached 16.5 million units during March 2016.
Production in North America is expected to reach 18.2 million units in 2016 according to the experts from IHS.
March inventories closed at a level of 65 days’ supply.
NAFTA Light Vehicle Production
Mar
Country 2015 2016 2017 2018
USA 11.8 12.3 12.0 11.8
CAN 2.3 2.4 2.3 2.1
MEX 3.4 3.5 4.2 4.6
NAFTA 17.5 18.2 18.4 18.5
Consolidated Financial Highlights
MxP/USD Mar'15 Mar'16
End 15.15 17.40
Average 14.93 18.01
9,353 9,392
10,362
11,900
12,897
3,207 3,809
1,178 1,203 1,343
1,568
2,141
537 779
-
500
1,000
1,500
2,000
2,500
3,000
11 12 13 14 15 J-M'15 J-M'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%
3,2072,745
462
3,8093,481
328
Consolidated Rassini Nafta Brazil
J-M'15 J-M'16
19%
27%
(29%)
537 517
21
779 785
4
Consolidated Rassini Nafta Brazil
45% 52%
(81%)
8
EBITDA
Sales
YTD Sales and EBITDA by Region Million Pesos
* EBITDA before Fees and Royalties
Actual dist. Sales
NAFTA 91%
Brazil 9%
Consolidated 100%
Actual dist. EBITDA
NAFTA 99%
Brazil 1%
Consolidated 100%
Sales by Product and Region
9
Consolidated Sales Breakdown Million Pesos
US OEMs75%
Asian OEMs12%
European OEMs3%
Aftermarket2%
Trailers Brazil1%
Other8%
Sales distribution by customer
OEM: Original Equipment Manufacturer
Jan-Mar Jan-Mar
2015 % 2016 %
Leaf Springs (1) 1,416 45 1,972 52
Coil Springs 330 10 400 10
NAFTA Subtotal 1,746 55 2,372 62
Brakes (1) 999 31 1,109 29
TOTAL 2,745 86 3,481 91
Leaf Springs (1) 395 12 283 8
BRAZIL Coil Springs 67 2 45 1
TOTAL 462 14 328 9
CONSOLIDATED SALES 3,207 100 3,809 100
(1) Includes elimination of intercompany transactions
10
Consolidated Income Statement Million Pesos
Consolidated Jan-Mar Jan-Mar % Var
Income Statement 2015 2016 16/15
Net Sales 3,207.3 3,809.2 19
Cost of sales 2,483.5 2,757.9 (11)
Gross Profit 723.8 1,051.3 45
% of sales 23 28
SG&A 186.8 271.8 (46)
EBITDA 537.0 779.5 45
% of sales 17 20
Depreciation 129.2 174.0 (35)
Interest & other financial charges 64.2 76.3 (19)
Other expenses 45.8 30.3 34
Income before Taxes & Minority Int. 297.8 498.9 68
Other non-recurring income - (67.0) 100
Taxes & Deferred Taxes 73.7 77.4 (5)
Minority Interest (19.5) (13.8) 29
Net Income 243.6 502.3 106
11
Consolidated Cash Flow Million Pesos
Consolidated Jan-Mar Jan-Mar % Var
Cash Flow 2015 2016 16/15
EBITDA 537.0 779.5 45
Working Capital and Taxes (272.8) (450.7)
Net operating cash flow 264.2 328.8 24
Interest expense (60.9) (65.6)
Cash flow after int. expense 203.3 263.2 29
Capex (114.2) (157.6)
Cash flow available for debt service 89.1 105.6 19
Financing & Debt Amortization (82.2) (109.5)
Other (46.7) (40.3)
Beginning cash balance 845.2 1,223.0
Ending cash balance 805.4 1,178.8 46
Short
Term
Current
Portion
LTD
Long
Term Total
Suspension Division NA 8.1 25.0 68.8 101.9
Brakes Division 10.0 9.4 14.7 34.1
Suspension Division Brazil 8.8 - 3.5 12.3
TOTAL 26.9 34.4 87.0 148.3
12
As of End of March 2016
Cash balance Mar’16 = US$68 mill. Net Debt Mar’16 = US$81 mill.
Consolidated Debt Million US dollars
25.5
34.8 32.625.0
-
2016 2017 2018 2019 2020
Long Term Debt Amortization ProfileUS$ Million
Suspensions Division NA Brakes Division
Note: Debt profile does not include working capital financings and Brazil
1.0 1.2
1.90.5 0.5
15.0
Consolidated Rassini Nafta Brazil
Mar'15 Mar'16
50% 56%
8.7
12.8
1.1
10.5
16.1
0.2
Consolidated Rassini Nafta Brazil *
21%
26%
(82%)21%
26%
(82%)
13
Net debt / EBITDA
EBITDA / Net interest
Financial Ratios by Region (Times)
* EBITDA before Fees and Royalties
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 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.
Our Products
59% 29
%
12%
Leaf Springs
Brakes
Coil Springs
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
91%
9%
Francisco Freyre Juan Pablo Sánchez Emma Bocanegra
Thank you
Assistant VP Inv. Rel. and Finance
CFO
Financial Planning Manager
and Inv. Rel.
BMV: RASSINI
www.rassini.com