institutional presentation -...

Industrial Group specialized in Managing High Value Added Processes 1

Institutional Presentation


Key Takeaways

Presence in high growth

markets

Unique and strong

business model

Diversification and flexibility

Strong track-record and

experienced management

team


Autometal Overview

Autometal is an industrial group specialized in processing highly engineered components for the auto parts industry

(10) Brazil (1) Camaari BA (1) Dias DAvila BA (1) Maracana CE (1) Sete Lagoas MG (1) Cabreva SP (1) Diadema SP (1) Mau SP (2) So Bernardo SP (1) Taubat SP

(7) Mexico (3) Guanajuato (1) Mexico City (1) Tultitln (1) Parque Ind. Finsa (1) Saltillo

(1) USA Detroit (1) China - Nanjing

Operating since 2000 in Brazil and NAFTA markets

Process-focused operations

Successful integration of 19 plants in Brazil, Mxico, USA and China

Diversification in terms of market, technology, customer, platform and raw material

Strong growth through organic expansion and acquisitions (50%/50%)

Part of CIE Automotive, benefiting from a strong global presence and state-of-the-art technology


Pemsa Saltillo

History

Autometal has delivered strong operational and financial results through both organic expansion and acquisitions

Pemsa Celaya 1 Nugar

2

Autometal Bahia

Autometal Taubat

Autometal SBC

Jardim Sistemas Autoforjas Nakayone

Autometal Dias

D'Avila

Brazil

SBC Cromado

CIE Celaya

Matic

Nugar S&W 2

Pemsa Ramos A.

Durametal

2000 2001 2002 2003 2004 2006 2005 2007 2008 2009

1.274

1.243

681 410

325 215

113 90 124

2010 2011

IPO

1.570

CIE purchase 50% of

Autometal

1.563

2012

1.613

Nanjing

Century Plastic

Mexico, USA and China

Assets purchase Acquisitions Greenfield Net revenues (R$ MM)

1.099

Note: 1) Purchase of 50% in 2006 and the remaining 50% in 2009; 2) Purchase of 50% in 2007 and the remaining 50% in 2010.

CIE purchase remaining

50% of Autometal

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Focus

Products Focus on high value-

added and high-technology products

M&A Seeking growth

opportunities through strategic acquisitions

Profitable growth Continuously

investing in our industrial plants in

order to grow organically

Maintain the profitability of our business


Business Overview


Unique Business Model O

EM

Responsable for design, Engineer and brand

TIER

1

Systems Suppliers

TIER

2

Components Suppliers Extremely fragmented segment

Most of the companies operate with one type of technology only

TIER 1,5 Sells components and assembly

to OEM and TIER 1

Scale

Technology

Diversification

72% Sales

23% Sales

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Flexibility: Technology and Location

Aluminum Stamping Plastic

Oil Pan

Aluminum Stamp-Welded Hybrid

Engine Mounting

Forging Fabricated Plastic Injection

Diversification options

18 plants strategically located across Brazil, Mexico and USA, offering different technologies to best supply clients and minimize costs. Multi-technology and equipment flexibility. Possibility to transfer production to country/state with the lowest production cost.

Plastic

Stamping

Painting

Forging, Casting, Machining, Aluminum injection


58,4%

7,0%

6,5%

5,7%

4,6%

4,5%

3,5% 2,7%

2,5%2,4%

2,2%Others (all < 3%)

Volkswagen / Gol

Chrysler/Dodge Ram

Volkswagen / Jetta

Nissan / Tiida

Ford Ecosport

Ford / Fiesta

GM / Silverado

Ford / Ka

Nissan / Sentra

Volkswagen / Fox

Diversification: Customer and Platform

Autometals diversification strategy allows the company to mitigate risks related to specific vehicle platforms and client concentration.

Supply to more than 100 different vehicle platform, directly to OEM or indirectly by TIER 1 More than 6,000 different part numbers Less than 7% of revenues per platform Platform selection based on return: minimum ROI of 20%

Sales Breakdown by Client

Sales Breakdown by Platform

Others (< 7%)31,7%

VW21,8%

Ford13,0%

Fiat/Chrysler12,9%

GM12,5%

Nissan8,1%


Products and Technology


Our Products

ENGINE

TRANSMISSION AND GEARBOX

Crankshafts Forging

Gasoline & Diesel Rails Forging /

Machining

Oil Pan Metal Forming / Aluminum / Plastic

Turbine Hubs Machining Axle Shaft Forging

CV- Joints Forging

Gear Housing Aluminium/Machining

Hubs, Outer Rings Forging & Machining

Steering Housings Aluminium / Machining

Body in White Metal Forming

Brake Booster Metal forming

Trim Parts Plastic

CHASSIS,

STEERING

& BIW

INTERIOR

& EXT TRIM

Strategic products in which AUTOMETAL/CIE is leader supplier

Camshaft Bearings Aluminium

In Mould Decoration Plastic

EPS components Machining

Wide product portfolio aligned with the automotive sector key growth drivers: (1) CO2 reduction and components recyclability (2) New comfort accessories

Symbol

Connecting rods Forging & Machining


Our Products

Machining, Forging & Casting


Our Products

Plastic Injection, Painting & Chroming

Sheet Metal Stamping, Welding & Painting


Our Facilities


Industry Overview


Autometal

Positive Trends for the Our Operating Markets

Brasil Up to 2017, Investments higher than

R$ 67 billion1

Mxico Up to 2015, Investments higher than

US$ 11 billion1

Attractive credit conditions and increased consumption to boost vehicle production in Brazil, added investments announced by OEMs. In Mexico, geographic position, the industry competitiveness and the strong NAFTA market recovery, are the major boosters of investments.

Source: Automotive Business Magazine and AMIA

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1,2 1,5 1,7 1,7 1,7

4,0 4,7

5,9

73,1

59,177,4

111,6139,1

157,1

185,9200,6 201,6

2005 2006 2007 2008 2009 2010 2011 2012

Positive Trends for the Our Operating Markets

Source: Anfavea and Sindipeas.

Credit growth and tax incentives in Brazil Infrastructure investments in Brazil, due the World Cup Soccer in 2014 and

Olimpic Games in 2016 Perspective of economic recovery and growth in NAFTA and China market Low cost production and strategic location allow NAFTA and China to be the

natural supplier for the growing demand for vehicles in its regions.

Inhabitants/Vehicle Leasing e vehicle financing in Brazil

Source: ANEF

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2,993,33 3,43 3,63

3,59

3,79 4,02 4,254,49

12,65 13,7515,03

16,88 17,8818,50 19,13 19,53 19,66

12,15

15,98 16,6417,68

19,3821,57

23,5625,26

26,70

2,00 2,66 2,84 3,18

3,46 3,91 4,404,87 5,33

2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E

Brasil NAFTA China ndia

2,92 3,15 3,14 3,17 3,31 3,593,90 4,08 4,23

8,5811,94 13,13

15,41 15,85 16,23 17,02 17,41 17,5811,34

15,80 16,10 17,2718,92 21,10 23,34 24,97 26,37

2,40

3,16 3,513,74 4,02 4,45

4,895,56

6,00

1,50 2,26 2,55 2,872,95 3,06 3,37 3,79 4,01

2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E

Brasil NAFTA China ndia Mxico

Markets Historic Data and Projections (Light Vehicle)

Production

Sales

Source: ANFAVEA and CSM Consulting


15,028

16,877

8,452 9,064

4,450 4,832

2011 2012 1H12 1H13 2Q12 2Q13

13,126

15,413

7,952 8,233

3,987 4,221

2011 2012 1H12 1H13 2Q12 2Q13

3,4263,634

1,632 1,710

0,859 0,921

2011 2012 1H12 1H13 2Q12 2Q13

3,135 3,173

1,4941,740

0,7940,966

2011 2012 1H12 1H13 2Q12 2Q13

Markets Where We Operate

Brazil

Production Sales

NAFTA

Production Sales

Source: ANFAVEA and CSM Consulting


16,64317,676

8,7139,515

4,355 4,846

2011 2012 1H12 1H13 2Q12 2Q13

16,10217,274

8,4859,528

4,272 4,717

2011 2012 1H12 1H13 2Q12 2Q13

Markets Where We Operate

China

Production Sales


Growth and M&A Strategy


Strategy

The Autometal Group is specialized in automotive processing components with high value-added.

Brazil Expansions of Plastic facility (Diadema) and stamping facility (Nakayone)

NAFTA Expansions of machining facility (Matic) and investment in the forging new facility (Celaya)

Asia and Europe Crankshaft production

Organic

Integration of Century Plastics (Detroit USA) and Nanjing (China)

Identify opportunities in markets with great growth perspectives: Brazil, NAFTA and Asia

M&A

Strengthen the Autometals

presence and create a large

global player in specific

technology


Recently Acquisitions - Nanjing

Details Location

Products and Processes Clients

Forging Technology and crankshafts development.

Acquisition of 50% - US$ 22.1 millions Net revenue: US$ 57 millions in 2012 EBITDA: US$ 5 millions in 2012

Dong Hua


Recenthy Acquisitions - Century Plastics

Details Location

Products and processes

Clients

Plastic technology Acquisition of 65% - US$ 23.5 millions Net Revenue: US$ 75 millions in 2012 EBITDA: US$ 8 millions in 2012


MAHINDRA CIE AUTOMOTIVE June 2013


Why India?

In Asia we are committed to INDIA

Significant growth in the coming years.

Great country, very competitive costs for domestic market and export.

World leader in Heavy Vehicle industry.

The world leader in forging.

A country with great opportunity to lead the growth in the region (Indonesia, Thailand, etc.).


CIE Automotive + Mahindra Global Alliance Schematic Representation

Mahindra Systech

CIE Automotive

Composites Forgings

Stampings Castings

Gears

Autometal

Inform & Communic

Technol

Mahindra CIE Automotive Limited

Machining

M&M

Indicates transaction

Indicates merger

Stampings

Aluminum

Plastic

Forgings* Brazil

Mexico

Forgings, Machining Castings, Stampings, Plastics, Painting

Aluminum, Forgings, Machining, Stampings, Plastics, Painting

Listed company

* CIE Forgings plants in Spain & Lithuania

USA

China

Plastics

Forgings

Bio Fuels


19

22

2012 2017E

2,1

2,4

2012 2017E

3,7

6,0

2012 2017E

3,2

4,3

2012 2017E

Strategic Positioning in High Growth Markets

Source : Vehicle Production, CSM March 2013 Growth % : CAGR (Compound Annual Growth Rate)

Europe

2,9

4,0

2012 2017E

Mexico Brazil India

80

98

2012 2017E

Russia World

Annual Vehicle production: Period 2012 2017 (Mn units.)

In 2013 year is expected a weaker market with medium term recovery.

Growth in 2013E by 4%. Softer Medium term recovery

2013E Growth by 4%. Growing future prospects continue

2013E Growth by 9%.

Growing future prospects continue

2013E Growth by 9%.

Growth continue year by year

2013E Growth by 2%.

Growth continue year by year

Autometal bet is to increase its presence in Mexico and settle in India


New Forging Powerhouse Under Autometal Management

Forgings Nafta

Forgings Europe

Forgings India

Forgings China

Forgings Brazil

Creation of a major forging group with global footprint


The Transaction in Numbers

Integration of a Group of companies with a recurrent level (1) of: Revenues: USD 1.000 Mn EBITDA : USD 110 Mn Net financial debt: USD 310 Mn

Autometal disbursement is USD ~157 Mn for a controlling stake in

Mahindra CIE

CIE merges its European Forgings into Mahindra-CIE receiving a minority stake in Mahindra CIE

As a result the ownerships are: Participaciones Internacionales Autometal 2 (PIA2 = Autometal 72% and CIE 28%)

holds 51%~ 53% (2) and Mahindra 20% of Mahindra CIE

(1) Recurrent level figures: Proforma calculated at normal 2011 market levels in Europe and India (2) Depending on the tender offer acceptance


Overview of Systech Auto Components

Largest part of Mahindra Systech Sector (~80%)

FY13 Sales of ~INR 40,000 mn / Euro 580 mn

19 Manufacturing facilities in 4 countries 55% of revenues from European

operations

Business Overview

Sales by Business

Financial Summary

Corporate Structure

INR mn FY11 FY12 FY13 Sales: India 13,364 18,231 18,413 Sales: Europe 22,448 26,488 22,175 Euro mn Sales: India 191 260 263 Sales: Europe 321 378 317 *1 Euro = INR 70.0

*FY2013: April 2012-March 2013

Forgings / 55%

Castings / 9%

Gears / 13%

Stampings / 19%

Others / 4% Systech Sector

Auto Components Steel

Eng. Services

Aerospace

Listed: Forgings Stampings (part of MUSCO) Composites Private: Hinoday (Castings + Magnets) Gears Not Part of Transaction


Transaction Structure (STEP 1)

M&M

Mahindra Forgings

Mahindra Composites

Mahindra Hinoday

Industries

CIE (Spain)

PIA 2 (Spain)

Autometal (Brazil)

Share Purchase + Open Offer

Share Purchase + Open offer

Share Purchase

75%

CIE Forgings

Asset Integration

28%

72%

Autometal to purchase stake in Mahindra Systech Automotive Components Companies from M&M


Transaction Structure (STEP 2)

Mahindra CIE Automotive is created

Mahindra CIE Automotive Limited*

Mahindra Composites

Mahindra Investments

(India)

Mahindra Gears

International.

Mahindra Hinoday PIA 3 MUSCO

Mahindra Gears & Transmission India Ltd. (India) Metalcastello (Italy)

Merger

M&M CIE Automotive

Autometal ~20%

~75%

Mahindra Forgings (Europe)

PIA 2 (Spain)

13.5%

72%

28%

~51%

CIE Forgings

*Erstwhile Mahindra Forgings Limited


Estimated Timeline For Transaction


Financial Overview


Financial Results Consolidated Numbers

(In Million of Reais ) 2012 2011 1H13 1HT12 2Q13 2QT12Net sales 1.613,1 1.562,7 988,4 747,1 525,7 388,7

EBITDA 271,4 292,9 163,7 136,9 87,3 70,1% EBITDA 16,8% 18,7% 16,6% 18,3% 16,6% 18,0%

EBIT 214,0 239,8 130,8 108,6 70,5 55,7% EBIT 13,3% 15,3% 13,2% 14,5% 13,4% 14,3%

EBT 205,7 246,9 108,5 113,7 46,3 61,8%EBT 12,8% 15,8% 11,0% 15,2% 8,8% 15,9%

Net Income 159,3 194,0 88,7 89,3 39,5 49,4Net Margin 9,9% 12,4% 9,0% 12,0% 7,5% 12,7%

ConsolidatedConsolidated Consolidated


249 211 228 259 216 256 257 235 219 218

161 148

220 157 172

245 121 183

140 205

15

25

24 409 358

463 416

389

526

378 418

359

448

1Q11 1Q12 1Q13 2Q11 2Q12 2Q13 3Q11 3Q12 4Q11 4Q12

984 881

578 708

24 1.563 1.613

2011 2012

72%

23%

5%

OEMs

TIER 1

After market

Financial Results by Segment Net Revenue

Quarterly Net

Revenue

Annual Net

Revenue

(R$ MM)

(R$ MM)


Cost Breakdown

Raw material67%

Labor22%

Energy4%

Depreciation4%

Maintenance and repairs 2%

Others1%

46%

15%

15%

12%

8%4%

Steel

Plastic and resin

Others

Iron

Aluminum

Painting


50,3 37,3 39,2

50,3 31,5

45,2 51,0 34,4 31,2

21,4

33,0

29,5 35,6

31,9

38,5

42,5 22,5

38,2

22,6 37,9

1,6

2,7

83,4

66,8 76,4

82,2

70,1

87,3

73,5 72,6

53,8 61,9

1Q11 1Q12 1Q13 2Q11 2Q12 2Q13 3Q11 3Q12 4Q11 4Q12

182,9

124,6

110,0

144,2

2,7

292,9 271,4

2011 2012

Financial Results by Segment EBITDA

Quarterly EBITDA

Annual EBITDA

163,5 159,6 147,4 178,9 182,9

124,6

34,8 50,4 67,9

121,7 110,0

144,2

2,7

198,2 209,9 215,3

300,7 292,9 271,4

18,04%16,89% 16,91%

19,13% 18,74%16,83%

2007 2008 2009 2010 2011 2012

20,3%

18,6% 16,5%

Margin (R$ MM)

(R$ MM)

19,5%

17,4% 15,0% 13,8%

18,7% 16,8% Margin

(R$ MM)

19,8% 18,0%

16,6%


47.310

205.867

64.045

91.991 78.756

36.174

85.194 110.120

137.328

183.975 157.496

81.810

2008(1) 2009(1) 2010 2011 2012 1H2013

Dividends paid Net income

47%

44%

187%50%

50%

23,2 27,6

34,5

23,2

12,0

35,0

22,0 21,8

16,4

18,4

17,6

16,4

20,8

10,7

22,1 14,2

25,2

0,5

0,8

50,2

39,5

46,5

52,1

39,5

35,3

45,6 44,1

36,0

23,8

1Q11 1Q12 1Q13 2Q11 2Q12 2Q13 3Q11 3Q12 4Q11 4Q12

125,6

71,5

58,4

85,3

0,8

184,0

157,5

2011 2012

Financial Results by Segment Net Income

Quarterly and annual

Net Income

Dividends Autometal has to

distribute at least 50% of its

consolidated annual net income

to its shareholders

(1) Combined financial statements

(R$ MM)

(R$ MM)


Debt Profile

(R$ MM)

(R$ MM)

88,7

209,3

459,1

20,2

Up to 1 year From 1 to 2years

From 2 to 5years

Later than 5years

BRL46%

EURO9%

USD45%

CONSOLIDATED NET DEBT

R$ % US$ % Other % Total %

Short term 23,6 7% 15,9 4% 49,3 75% 88,7 11%Long trm 333,0 93% 339,3 96% 16,4 25% 688,6 89%Total debt 356,5 100% 355,1 100% 65,6 100% 777,3 100%

Derivative balance 9,8 100% - - - - 9,8 100%Others (6,9) 100% - - - - (6,9) 100%Financial assets ST (117,9) 100% - - - - (117,9) 100%

Cash (319,6) 65% (60,9) 12% (113,5) 23% (493,9) 100%

Net debt (cash) (78,0) 294,3 (47,8) 168,4


IR Contact

Fernando Mearim CFO and Investor Relations Officer Alisson Belardino IR Phone: 55 (11) 4070-8206 / 8298 E-mail: [email protected] www.autometal.com.br/ri

http://www.autometal.com.br/ri

Nmero do slide 1Key Takeaways Autometal OverviewHistoryFocusNmero do slide 6Unique Business ModelFlexibility: Technology and LocationDiversification: Customer and PlatformNmero do slide 10Our ProductsOur ProductsOur ProductsOur FacilitiesNmero do slide 15Positive Trends for the Our Operating MarketsPositive Trends for the Our Operating MarketsMarkets Historic Data and Projections (Light Vehicle)Markets Where We OperateMarkets Where We OperateNmero do slide 21StrategyRecently Acquisitions - NanjingRecenthy Acquisitions -Century Plastics Nmero do slide 25Why India?CIE Automotive + Mahindra Global AllianceSchematic RepresentationStrategic Positioning in High Growth MarketsNew Forging Powerhouse Under Autometal ManagementThe Transaction in NumbersOverview of Systech Auto ComponentsTransaction Structure (STEP 1)Transaction Structure (STEP 2)Estimated Timeline For TransactionNmero do slide 35Financial Results Consolidated NumbersFinancial Results by Segment Net RevenueCost BreakdownFinancial Results by Segment EBITDAFinancial Results by Segment Net IncomeDebt ProfileIR Contact

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