mahle metal leve s.a.ri.mahle.com.br/en/documentos/901-ndr-santander-09172015.pdf · mahle metal...

© MAHLE

September, 2015

MAHLE Metal Leve S.A.Investor Update

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MAHLE Metal Leve S.A., IR, Investor Relations, September, 2015

Important Notice

© MAHLE

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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Agenda

© MAHLE

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

© MAHLE

SECTION 1


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© MAHLE

The MAHLE Group is a global leader in engine components and filters

� German group founded in 1920 and headquartered in Stuttgart

� 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

� 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

Revenues (EUR bn)

Global Footprint

Group Highlights

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© MAHLE

MAHLE OverviewSales by geographical markets as of 2014

Asia/Pacific:Sales: EUR 1.9 bEmployees: 13,454

Europe:Sales: EUR 4.7 bEmployees: 31,431

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North America:Sales: EUR 2.4 bEmployees: 10,534

South America:(*) Sales: EUR 0.8 b (BRL 2.6b) Employees: 9,926

Production locationsResearch and development centers

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Africa:Sales: EUR 0.1 bEmployees: 889

(*) MML represents to BRL 2.3 b



© MAHLE

MAHLE OverviewOrganizational Structure

MABEG

0.09%

MAHLEGmbH

MIB

MAHLEMetal Leve S/A

MAHLE Indústria and Comércio

LtdaFree Float

90.44% (direct)

100.00%

10.00%

60.00% 30.00%

99.91% � A German not-for-profit foundation,

that supports its activities through

dividends it receives from the

MAHLE Group

� No supervisory rights

� Association with supervisory rights in the company

Overseas

Brazil

MAHLE Stiftung(MAHLE Foundation)

9.56% (indirect)

Controlling Shareholder Direct and Indirect Stake: 70.00%

Professional and independent management with high l evels of corporate governance

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© MAHLE

Product Range – more than pistons

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© MAHLE

Unrivaled Portfolio of Components

Plastic cylinder head cover module

Oil filter module

Valve camshaft

Aluminum cylinder head¹

Valve guide

Valve

Valve seat insert

Aluminum engine block¹

Turbocharger¹

Piston ring

Piston

Piston pin,Piston pin circlip Controlled

Oil pump¹

Oil-mist separator with

control valve

Air filter module

Tappet (cam follower, rocker arm)¹

Tumble flap¹

Exhaust gas recirculation valve¹

Intake manifold (charged air distribution)

Blow-by induction¹

Fuel filter

Cylinder liner

Connecting rod

Bearing

Note: 1 Products not manufactured in Brazil

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The MAHLE Metal Leve S.A. Group

© MAHLE

SECTION 2


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MAHLE Metal Leve S.A.

© MAHLE

From a components manufacturer to a global systems partner

MAHLE Metal Leve S.A. Shareholder’s Profile (total capital stock)

� 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.

� 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.

� 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.

� In June of 2011: adhesion of the Company to the Novo Mercado listing segment of the BM&FBovespa.

Shareholder’s Profile (free-float)

Net sales revenue by segment (%)

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© MAHLE

A history of successful acquisitions and high growth

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© MAHLE

Locations in Brazil

SÃO BERNARDO DO CAMPO Bearings

ITAJUBÁ Piston Rings and

Bushings

LIMEIRADistribution Center

MOGI-GUAÇUHeadquarters

Pistons, Pins, CylinderLiners, Camshafts, andConnecting Rods

JUNDIAÍTech Center

Powertrain

INDAIATUBA

Sinter parts

QUEIMADOSConnecting Rods and

other products

forged

Plants6

Distribution Center1

Tech Center1

MOGI-GUAÇUFilters

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© MAHLE

Locations in Argentina

Plant1

Distribution Center1

BUENOS AIRESDistribution Center

RAFAELAValves /

Valve guides /Valve Seats

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Trends & Innovations

© MAHLE

SECTION 3


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© MAHLE

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 2012and 2014, show that the high expertise Brazilian unit deposited 82 new patent applications , many of them to PatentCooperation Treaty (PCT), an international body that assists applicants in seeking patent protection for their innovationsinternationally.

� According to PCT data, this figure places MAHLE Metal Leve in the position of national leader of applications ofpatents for new inventions in the Brazilian automotive segm ent , ahead of both car manufacturers and the industry’scomponent suppliers. MAHLE Tech Center is also among the ten top Brazilian patent applicants , a group made up ofcompanies 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 sinteredparts.

� Various discussions occurred with several entities in the automotive market concerning the regulation of items of theInovar-Auto program.

� Meetings with customers for prospecting solutions in technologies for engine components and engineering serviceactivities 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

Innovar-AutoAvailable 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 reducti on; 3 & 4 – up to 1% IPI reduction each

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© MAHLE

Inovar-AutoAutomotive Regime 2013-2017

0% CO2 -10% CO2 -20% CO2

VVT/VVL*Fully Variable

Valvetrain

EPS*

Start-Stop

GDI + EGR*(lean)

Downsizing(single turbo)

General optimization(Friction & Cooling)

(*)Inovar-Auto

-1% IPI

-2% IPI

Availablein Brazil

Availableoutside Brazil

GDI(hom)*

Combination oftechnologies is possible!

CO2 reduction potential

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