MAHLE Metal Leve S.A.
Investor Update
September, 2015
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© MAHLE
Important Notice
The material that follows is a confidential presentation of general background information about MAHLE Metal Leve S.A. and its subsidiaries (collectively, “MAHLE”)
as of the date of the presentation. It is information in summary form and does not purport to be complete. No representation or warranty, express or implied, is
made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of this information. This confidential presentation may contain
certain forward-looking statements and information relating to MAHLE that reflect the current views and/or expectations of MAHLE and its management with
respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or
imply future results, performance or achievements, and may contain words like “anticipate”, “believe”, “estimate”, “expect”, “forecast”, “plan”, “predict”, “project”,
“target” or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a
number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this
presentation, including: market acceptance of MAHLE’s products or services; volatility in the autoparts and automotive industry, the Brazilian economy and the
financial markets; changes in legislation, accounting standards, taxation and government policies affecting the autoparts and automotive sector; ability to stay
abreast of changes in technology; ability to continuously introduce competitive new products and services, while staying competitive in existing ones. In no event,
neither MAHLE nor any of its affiliates, directors, officers, agents or employees, nor if applicable the selling shareholder, placement agents or underwriters, shall be
liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements
contained in this presentation or for any consequential, special or similar damages. All forward-looking statements in this presentation are based on information and
data available as of the date they were made, and MAHLE undertakes no obligation to update them in light of new information or future developments. This
presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without MAHLE’s prior written
consent. Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the United States Securities Act of
1933, as amended. Any offering of securities to be made in the United States will be made solely by means of a confidential offering circular that may be obtained
from the placement agents or the underwriters. Such confidential offering circular will contain detailed information about MAHLE and its business and financial
results, as well as its financial statements. This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any
securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
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Agenda
1. The MAHLE Group Worldwide
2. The MAHLE Metal Leve Group
3. Trends & Innovation
4. Financial and Capital Markets
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The MAHLE Group Worldwide
SECTION 1
The MAHLE Group Worldwide
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
© MAHLE
The MAHLE Group Worldwide
The MAHLE Group is a global leader in engine components and
filters
Group Highlights
German group founded in 1920 and headquartered in
Stuttgart
Revenues (EUR bn)
Global Footprint
One of the 3 major global suppliers of piston systems,
cylinder components, valve train systems, as well as
management and filtration of air and fluid systems
Global leader in partnerships for engine development
Over 140 production units on 5 continents
10 technology centers on 4 continents
Close to 66,000 employees
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
© MAHLE
The MAHLE Group Worldwide
MAHLE Overview
Sales by geographical markets as of 2014
North America:
Europe:
Sales: EUR 2.4 b
Employees: 10,534
Sales: EUR 4.7 b
Employees: 31,431
Asia/Pacific:
Sales: EUR 1.9 b
Employees: 13,454
South America:
Africa:
Sales: EUR 0.8 b (BRL 2.6b)
Employees: 9,926
Sales: EUR 0.1 b
Employees: 889
(*)
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(*) MML represents to BRL 2.3 b
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
Production locations
Research and development centers
© MAHLE
The MAHLE Group Worldwide
MAHLE Overview
Organizational Structure
Professional and independent management with high levels of corporate governance
MAHLE Stiftung
(MAHLE Foundation)
MABEG
0.09%
Association with supervisory
rights in the company
99.91%
A German not-for-profit foundation,
that supports its activities through
dividends it receives from the
MAHLE
GmbH
90.44% (direct)
MAHLE Group
9.56% (indirect)
No supervisory rights
MIB
10.00%
Overseas
Brazil
100.00%
MAHLE
Indústria and Comércio
Ltda
60.00%
Controlling Shareholder
Direct and Indirect Stake:
70.00%
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
Free Float
30.00%
MAHLE
Metal Leve S/A
© MAHLE
The MAHLE Group Worldwide
Product Range – more than pistons
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
© MAHLE
The MAHLE Group Worldwide
Unrivaled Portfolio of Components
Plastic cylinder
head cover module
Oil-mist separator with
control valve
Oil filter module
Air filter module
Valve camshaft
Aluminum cylinder head¹
Tappet (cam follower,
rocker arm)¹
Tumble flap¹
Valve guide
Valve
Valve seat insert
Aluminum engine block¹
Turbocharger¹
Piston ring
Piston
Exhaust gas recirculation valve¹
Intake manifold
(charged air distribution)
Blow-by induction¹
Fuel filter
Cylinder liner
Connecting rod
Bearing
Piston pin,
Piston pin circlip
Controlled
Oil pump¹
Note: 1 Products not manufactured in Brazil
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The MAHLE Metal Leve S.A. Group
SECTION 2
The MAHLE Metal Leve S.A. Group
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
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MAHLE Metal Leve S.A.
From a components manufacturer to a global systems partner
MAHLE Metal Leve S.A.
Shareholder’s Profile (total capital stock)
Shareholder’s Profile (free-float)
In 1951 Ernst Mahle settles in Brazil and becomes the founder-partner of
the company Metal Leve, establishing a solid partnership and supplying
technology for the beginning activities.
In June of 2011: adhesion of the Company to the Novo Mercado listing
segment of the BM&FBovespa.
Approximately 9,300 employees at seven industrial plants, six of which
are located in Brazil, and our seventh plant is located in the city of Rafaela
in Argentina. We have two distribution centers: one in the city of Limeira
in the State of São Paulo and one in Buenos Aires in Argentina.
Net sales revenue by segment (%)
We have a technology center located in the city of Jundiaí in the State of
São Paulo, which we believe is one of the largest and most well-equipped
technology centers in Latin America for the development of components
and solution packages for internal combustion engines. This technology
center is the second largest at MAHLE Group worldwide.
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
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The MAHLE Metal Leve S.A. Group
A history of successful acquisitions and high growth
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The MAHLE Metal Leve S.A. Group
Locations in Brazil
MOGI-GUAÇU
Headquarters
Pistons, Pins, Cylinder
Liners, Camshafts, and
Connecting Rods
ITAJUBÁ
Piston Rings and
Bushings
QUEIMADOS
Connecting Rods and
other products
MOGI-GUAÇU
Filters
forged
LIMEIRA
Distribution Center
JUNDIAÍ
Tech Center
Powertrain
INDAIATUBA
Sinter parts
1 Tech Center
SÃO BERNARDO DO CAMPO
Bearings
6 Plants
1 Distribution Center
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
© MAHLE
The MAHLE Metal Leve S.A. Group
Locations in Argentina
RAFAELA
Valves /
Valve guides /
Valve Seats
BUENOS AIRES
Distribution Center
1 Plant
1 Distribution Center
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Trends & Innovations
SECTION 3
Trends & Innovations
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Trends & Innovations
Excellence and Technological Innovation
The figures reported over the past three years of activities of the Jundiaí Tech Center, in São Paulo, i.e. between 2012
and 2014, show that the high expertise Brazilian unit deposited 82 new patent applications, many of them to Patent
Cooperation Treaty (PCT), an international body that assists applicants in seeking patent protection for their innovations
internationally.
According to PCT data, this figure places MAHLE Metal Leve in the position of national leader of applications of
patents for new inventions in the Brazilian automotive segment, ahead of both car manufacturers and the industry’s
component suppliers. MAHLE Tech Center is also among the ten top Brazilian patent applicants, a group made up of
companies of big size and some of the main Brazilian universities.
The number of applications until 2014 was 20 applications. Again stayed in:
Fifth among private companies
First in the automotive industry
Technologies involve coatings of piston rings, cylinder liners and bearings, oil flow control, filter systems, and sintered
parts.
Various discussions occurred with several entities in the automotive market concerning the regulation of items of the
Inovar-Auto program.
Meetings with customers for prospecting solutions in technologies for engine components and engineering service
activities through the MAHLE Powertrain division.
Maintenance of working papers developed jointly with institutes and universities (MIT, USP among others).
FINEP (Study and Project Financing Authority) has started the evaluation of innovation projects in the field of powertrain.
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
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Trends & Innovations
Innovar-Auto
Available and Future Technologies
In October 2012 the Government announced the INOVAR AUTO program :
TARGET
To get reduction of the IPI tax rate (up to 34%)
HOW
Minimum local content achievement & investments in fuel efficiency
REQUIREMENTS
Local vehicle production steps¹
(Mandatory)
Improve vehicles fuel economy²
(Mandatory)
Investment in R&D (innovation)³
(Optional)
Increase expenses in Engineering and Industrial Basic
Technology
(Optional)
1 – up to 30% IPI reduction; 2 – up to 2% IPI reduction; 3 & 4 – up to 1% IPI reduction each
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
© MAHLE
Trends & Innovations
Inovar-Auto
Automotive Regime 2013-2017
0% CO2
-10% CO2
-20% CO2
Combination of
technologies is possible!
Downsizing
(single turbo)
GDI
General
optimization
GDI + EGR*
(hom)*
(lean)
(Friction & Cooling)
Fully Variable
Valvetrain
VVT/VVL*
EPS
*
StartStop
CO2 reduction potential
Inovar-Auto
Available
Available
in Brazil
outside Brazil
(*)
-1% IPI
-2% IPI
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Financials & Capital Markets
SECTION 4
Financials & Capital Markets
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
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Financials & Capital Markets
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
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The MAHLE Metal Leve S.A. Group
Diversified presence in markets and products
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
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Financials & Capital Markets
R$ million
Net Debt/Ebitda = 0,79 times
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
© MAHLE
Financials & Capital Markets
R$ million
Net Income in 1H15: R$ 96.2 million and net margin of 8.1%,
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
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MAHLE Metal Leve S.A.
Stock performance & Shareholder’s profile
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
© MAHLE
Thank you!
[email protected]
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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015
© MAHLE