Post on 23-Jul-2020
BMV: RASSINIwww.rassini.com
1
Fourth Quarter 2017February 20, 2018
Twelve-months figures 4Q 2017 Highlights
• Net revenue increased to $18,104 million pesos.
• EBITDA grew to $3,366 million pesos.
• Net income reached $1,475 million pesos.
• Net Debt/annualized EBITDA ratio as of December 31 was 0.2x.
• EBITDA/Net Interest Expense ratio as of December 31 was 11.1x.
Consolidated Fiscal Year 2017 Results
(January 1- December 31)
2017(mill. Pesos)
2016(mill. Pesos)
% Change
Sales $18,104 $16,340 11%
Gross Profit $4,581 $4,373 5%
EBITDA $3,366 $3,190 6%
Net Income before taxes and
minority interest
$1,992 $1,935 3%
Net Income $1,475 $1,431 3%
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Industry Update
Auto Show Detroit 2018
MacroeconomicsDecember 2017
Ma
y 0
8
Dec
17
Housing Starts
Sources: Reuters, Bureau of Labor Statistics and Gas Buddy.
Exceeding a million homes for
thirty-two consecutive months
1.3Million of houses
5.4%
Unemployment 4.1%
Ma
y 0
8
Dec
17
4.2%
Fuel Cost 2.5 US$ / Gallon4.1
2.52.5
May
08
Dec
14
Dec
17
4
7.0 6.9 6.9 5.9
10.1 10.6 11.011.2
17.0 17.5 17.8 17.1
2014 2015 2016 2017Passenger Cars Light Trucks
17.017.5 17.8
17.1
17.4 17.4 17.5
2014 2015 2016 2017 2018 2019 2020
Actual
IHS Forecast / Dec'17
15.2 15.5 16.9 17.4 17.5
17.8
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
2012 2013 2014 2015 2016 2017
US Light Vehicle SAAR
Annual average
(4%)
Industry SnapshotMillion units
Expected Light Vehicle Production1%
2% 0%
Source: IHS @ December’17
SAAR reached 17.8 million units during December 2017.
Production in North America is expected to reach 17.5 million units in 2020 according to the experts from IHS.
December inventories closed at a level of 61 days’
supply. Light Trucks production increased 3% vs previous year.
NAFTA Light Vehicle Production
Dec
5
Country 2017 2018 2019 2020
USA 11.0 11.1 11.2 11.5
CAN 2.2 2.1 1.9 1.9
MEX 3.9 4.2 4.2 4.2
NAFTA 17.1 17.4 17.4 17.5
Passenger cars82%
Commercial Vehicles
14%
Trucks3%
Buses1%
2,502
2,018 1,778
2,174 2,339 2,436 2,540 2,643 2,748
471
316
299
329 338
347 370
386 396
140
74
61
79 88
93 100
109 126 33
21
19
21 22
23 27
28 31
3,146
2,429
2,157
2,603 2,787
2,899 3,037
3,166 3,301
2014 2015 2016 2017e 2018e 2019e 2020e 2021e 2022e
Passenger Cars Light Commercials Trucks Buses
Brazilian Vehicle ProductionMillion vehicles
By 2022 Brazil will reach 3.3 million units
Source: Sindipeças @Dec’17 6
Trucks and buses represent 86% of
RNA business
Consolidated FinancialHighlights
7
MxP/USD Dec'16 Dec'17
End 20.66 19.74
Average 18.65 18.93
9,353 9,392 10,362
11,900 12,897
16,340
18,104
1,178 1,203 1,343
1,568
2,141
3,190 3,366
11 12 13 14 15 16 17
Sales EBITDA
Consolidated Sales and EBITDA Million Pesos
8
CAGR '12-'17
Sales 14%
EBITDA 23%
3,190 3,139
51
3,366 3,215
151
Consolidated Rassini Nafta Brazil*
6%
2%
199%
16,34015,034
1,306
18,10416,223
1,881
Jan-Dec '16 Jan-Dec '17
11% 8%
44%
EBITDA
Sales
YTD Sales and EBITDA by Region Million Pesos
9* EBITDA before Fees and Royalties
Actual dist. Sales
NAFTA 90%
Brazil 10%
Consolidated 100%
Actual dist. EBITDA
NAFTA 95%
Brazil 5%
Consolidated 100%
Sales by Product and Region
Consolidated Sales BreakdownMillion Pesos
10
2016 % 2017 %
Leaf Springs (1) 8,345 51 8,850 49
Coil Springs 1,701 10 1,723 10
NAFTA Suspensions 10,046 61 10,573 59
Brakes (1) 4,988 31 5,650 31
TOTAL NAFTA 15,034 92 16,223 90
Leaf Springs (1) 1,088 7 1,601 9
BRAZIL Coil Springs 218 1 280 1
TOTAL BRAZIL 1,306 8 1,881 10
CONSOLIDATED SALES 16,340 100 18,104 100
(1) Includes elimination of intercompany transactions.
Jan-Dec Jan-Dec
US OEMs 75%Asian OEMs
9%
European OEMs
6%
Aftermarket2%
Trailers Brazil 1%
Other 7%
Sales distribution by customer
OEM: Original Equipment Manufacturer
Consolidated Income Statement Million Pesos
11
Consolidated Jan-Dec Jan-Dec % Var
Income Statement 2016 2017 17/16
Net Sales 16,340.1 18,103.7 11
Cost of sales 11,967.4 13,523.2 (13)
Gross Profit 4,372.7 4,580.5 5
% of sales 27 25
SG&A 1,183.0 1,214.3 (3)
EBITDA 3,189.7 3,366.2 6
% of sales 20 19
Depreciation 779.2 810.4 (4)
Interest & other financial charges 323.8 315.8 2
Other expenses 151.5 247.9 (64)
Income before Taxes & Minority Int. 1,935.2 1,992.1 3
Other non-recurring income (134.0) - 100
Taxes & Deferred Taxes 722.9 617.9 15
Minority Interest (84.9) (101.1) (19)
Net Income 1,431.2 1,475.3 3
Consolidated Cash FlowMillion Pesos
12
Consolidated Jan-Dec Jan-Dec % Var
Cash Flow 2016 2017 17/16
EBITDA 3,189.7 3,366.2 6
Working Capital and Taxes (785.3) (541.3)
Net operating cash flow 2,404.4 2,824.9 17
Interest expense (251.7) (230.4)
Cash flow after int. expense 2,152.7 2,594.5 21
Capex (849.7) (853.9)
Cash flow available for debt service 1,303.0 1,740.6 34
Financing & Debt Amortization (44.6) (521.1)
Dividends paid (480.2) (640.3)
Other (88.1) (501.7)
Beginning cash balance 1,223.0 1,913.1
Ending cash balance 1,913.1 1,990.6 4
9.0
34.0 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
Short Term
Current
Portion
LTD
Long
Term Total
Suspension Division NA 8.4 25.0 25.0 58.4
Brakes Division 6.0 9.0 24.8 39.8
Suspension Division Brazil 32.5 - 0.1 32.6
TOTAL 46.9 34.0 49.9 130.8
As of End ofDecember 2017
Cash balance Dec’17 = US$101 mill.Net Debt Dec’17 = US$30 mill.
Consolidated Debt Million US dollars
13
10.2
15.3
0.5
11.1
15.8
1.6
Consolidated North America Brazil *
9%
3%
220%
Net debt / EBITDA
EBITDA / Net interest
Financial Ratios by Region (Times)
* EBITDA before Fees and Royalties 14
0.3 0.5
5.8
0.2 0.2
3.8
Dec'16 Dec'17
51% 56%
35%
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
58%
Leaf Springs
31%
Brakes
Coil Springs
11%
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
18
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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