BMV: RASSINIwww.rassini.com

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First Half 2018July 24, 2018

First Half 2018 Highlights

• Net revenue climbed to $9,488 million pesos.

• EBITDA reached $1,787 million pesos.

• Net income was $816 million pesos.

• Net Debt/annualized EBITDA ratio as of 1st H’18 was 0.3x.

• EBITDA/Net Interest Expense ratio as of 1st H’18 was 12.8x.

Consolidated First Half 2018 Results

(January 1- June 30)

2018(mill. Pesos)

2017(mill. Pesos)

% Change

Sales $9,488 $9,369 1%

Gross Profit $2,408 $2,466 (2%)

EBITDA $1,787 $1,851 (3%)

Net Income before taxes and

minority interest

$1,119 $1,140 (2%)

Net Income $816 $876 (7%)

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Industry Update

Auto Show Detroit 2018

MacroeconomicsJune 2018

Ma

y 0

8

Ju

n 1

8

Housing Starts

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

Exceeding a million homes for

thirty-nine consecutive months

1.2Million of houses

5.4%

Unemployment 3.8%

Ma

y 0

8

Ju

n 1

8

3.8%

Fuel Cost $2.90 US$ / Gallon

$4.10

$2.50 $2.90

May

08

Dec

14

Ju

n 1

8

4

15.2 15.5 16.9 17.4 17.5 17.8

17.5

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 M

2012 2013 2014 2015 2016 2017 2018

17.017.5 17.8

17.1

17.2 17.4 17.4

2014 2015 2016 2017 2018 2019 2020

Actual

IHS Forecast / Jun'18

7.0 6.9 6.9 5.73.2 2.7

10.1 10.6 11.011.4

5.7 6.0

17.0 17.5 17.8 17.1

9.0 8.8

2014 2015 2016 2017 1H17 1H18Passenger Cars Light Trucks

U.S. Light Vehicle SAAR

Annual average

(3%)

Industry SnapshotMillion units

Expected Light Vehicle Production in North America

0%1% 1%

Source: IHS @ June’18

U.S. SAAR reached 17.5 million units during June 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 June 30, 2018. Light Trucks production increased 5% vs previous year.

NAFTA Light Vehicle Production

Jun

5

Country 2017 2018 2019 2020

USA 11.0 11.1 11.3 11.5

CAN 2.2 2.0 2.0 1.8

MEX 3.9 4.1 4.2 4.1

NAFTA 17.1 17.2 17.4 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 @Jun’18 6

Trucks and buses represent 86% of

RNA business

During 1st H’18, vehicle production increased 14% and vehicle exportation experienced 1% growth compared to the same period in 2017.

Sindipeças expects 2018 production to increase 12% vs 2017 with approximately 5% annual growth during the following years.

2,502

2,018 1,778

2,269 2,502 2,630 2,743 2,880 3,019

471

316

299

327

382 394

402 434

447 140

74

61

79

98 101

106 112

128

33

23

19

21

28 29

30 30

35 3,146

2,431

2,157

2,696

3,010 3,154

3,281 3,456

3,629

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

Passenger Cars Light Commercials Trucks Buses

Consolidated FinancialHighlights

7

MxP/USD Jun'17 Jun'18

End 17.90 19.86

Average 19.50 19.07

Consolidated Sales and EBITDA Million Pesos

8

CAGR '12-'17

Sales 14%

EBITDA 23%

9,353 9,392 10,362

11,900 12,897

16,340

18,104

9,369 9,488

1,178 1,203 1,343

1,568

2,141

3,190 3,366

1,851 1,787

11 12 13 14 15 16 17 Jan - Jun'17

Jan - Jun'18

Sales EBITDA

1,851 1,808

43

1,787 1,675

112

Consolidated Rassini NAFTA Brazil*

(3%)

(7%)

160%

EBITDA

Sales

YTD Sales and EBITDA by Region Million Pesos

9* EBITDA before Fees and Royalties

9,3698,503

866

9,4888,413

1,075

Jan-Jun '17 Jan-Jun '18

1% -1%

24%

Actual dist. Sales

NAFTA 89%

Brazil 11%

Consolidated 100%

Actual dist. EBITDA

NAFTA 94%

Brazil 6%

Consolidated 100%

Sales by Product and Region

Consolidated Sales BreakdownMillion Pesos

10

2017 % 2018 %

Leaf Springs (1) 4,659 50 4,426 47

Coil Springs 930 10 813 9

NAFTA Suspensions 5,589 60 5,239 55

Brakes (1) 2,914 31 3,174 33

TOTAL NAFTA 8,503 91 8,413 89

Leaf Springs (1) 735 8 936 10

BRAZIL Coil Springs 131 1 139 1

TOTAL BRAZIL 866 9 1,075 11

CONSOLIDATED SALES 9,369 100 9,488 100

(1) Includes elimination of intercompany transactions.

Jan-Jun Jan-Jun

US OEMs 75%Asian OEMs

9%

European OEMs

7%

Aftermarket2%

Trailers Brazil 1%

Other 6%

Sales distribution by customer

OEM: Original Equipment Manufacturer

Consolidated Income Statement Million Pesos

11

Consolidated Jan-Jun Jan-Jun % Var

Income Statement 2017 2018 18/17

Net Sales 9,368.9 9,487.7 1

Cost of sales 6,903.4 7,079.8 (3)

Gross Profit 2,465.5 2,407.9 (2)

% of sales 26 25

SG&A 614.2 620.9 (1)

EBITDA 1,851.3 1,787.0 (3)

% of sales 20 19

Depreciation 401.8 400.0 0

Interest & other financial charges 159.3 135.0 15

Other expenses 150.6 132.7 12

Income before Taxes & Minority Int. 1,139.6 1,119.3 (2)

Taxes & Deferred Taxes 328.4 322.9 2

Minority Interest (65.1) (19.1) 71

Net Income 876.3 815.5 (7)

Consolidated Cash FlowMillion Pesos

12

Consolidated Jan-Jun Jan-Jun % Var

Cash Flow 2017 2018 18/17

EBITDA 1,851.3 1,787.0 (3)

Working Capital and Taxes (484.7) (573.9)

Net operating cash flow 1,366.6 1,213.1 (11)

Interest expense (113.9) (108.2)

Cash flow after int. expense 1,252.7 1,104.9 (12)

Capex (388.0) (478.7)

Cash flow available for debt service 864.7 626.2 (28)

Financing & Debt Amortization (182.4) (505.8)

Dividends paid - (800.3)

Other (496.4) (245.5)

Beginning cash balance 1,913.1 1,990.6

Ending cash balance 2,099.0 1,065.2 (49)

Short Term

Current

Portion

LTD

Long

Term Total

Suspension Division NA 8.4 25.0 12.5 45.9

Brakes Division 2.0 9.0 20.3 31.3

Suspension Division Brazil 27.0 - - 27.0

TOTAL 37.4 34.0 32.8 104.2

As of End ofJune 2018

Cash balance Jun’18 = US$54 mill.Net Debt Jun’18 = US$51 mill.

Consolidated Debt Million US dollars

13

9.017.0

34.0

6.8

2018 2019 2020 2021

Long Term Debt Amortization ProfileUS$ Million

NAFTA Suspensions Brakes

Note: Debt profile does not include working capital financings

12.1

17.4

0.9

12.8

16.0

3.0

Consolidated North America Brazil *

6%

-8%

233%

0.2 0.3

6.0

0.3 0.2

2.2

Jun'17 Jun'18

(76%)37%

63%

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 balancers

Clutch platesSpacers

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

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Juan Pablo Sánchez

Emma Bocanegra

Edgar Landeros

CFO

Financial Planning & IR

Financial Analyst & IR

jsanchez@rassini.com

ebocanegra@rassini.com

elanderos@rassini.com

BMV: RASSINI

www.rassini.com

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