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© MAHLE May 2015 MAHLE Metal Leve S.A. Investor Update 1
© MAHLE
May 2015
MAHLE Metal Leve S.A.Investor Update
1
MAHLE Metal Leve S.A., IR, Investor Relations, May 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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MAHLE Metal Leve S.A., IR, Investor Relations, May 2015
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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MAHLE Metal Leve S.A., IR, Investor Relations, May 2015
The MAHLE Group Worldwide
© MAHLE
SECTION 1
The MAHLE Group Worldwide
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MAHLE Metal Leve S.A., IR, Investor Relations, May 2015
The MAHLE Group Worldwide
© 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 65,000 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 Metal Leve S.A., IR, Investor Relations, May 2015
The MAHLE Group Worldwide
© MAHLE
MAHLE OverviewSales by geographical markets as of 2013
Asia/Pacific:Sales: EUR 1,476.3 mEmployees: 12,266
Europe:Sales: EUR 2,960.8 mEmployees: 30,131
Africa:Sales: EUR 63.9 mEmployees: 862
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North America:Sales: EUR 1,606.2 mEmployees: 10,196
South America:Sales: EUR 834.2 m (BRL 2.4b) Employees: 10,890
Production locationsResearch and development centers
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MAHLE Metal Leve S.A., IR, Investor Relations, May 2015
The MAHLE Group Worldwide
© 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 Metal Leve S.A., IR, Investor Relations, May 2015
The MAHLE Group Worldwide
© MAHLE
Product Range – more than pistons
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MAHLE Metal Leve S.A., IR, Investor Relations, May 2015
The MAHLE Group Worldwide
© 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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MAHLE Metal Leve S.A., IR, Investor Relations, May 2015
The MAHLE Metal Leve S.A. Group
© MAHLE
SECTION 2
The MAHLE Metal Leve S.A. Group
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MAHLE Metal Leve S.A., IR, Investor Relations, May 2015
MAHLE Metal Leve S.A.
© MAHLE
From a components manufacturer to a global systems partner
MAHLE Metal Leve S.A. Shareholder’s Profile
� 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.
Net sales revenue by segment (%)
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MAHLE Metal Leve S.A., IR, Investor Relations, May 2015
The MAHLE Metal Leve S.A. Group
© MAHLE
A history of successful acquisitions and high growth
0,7
0,9
1,0
1,4
1,7 1,7 1,7
1,9
2,1
1,7
2,0
Acq
uisi
tions
2006 2007 2009 201120102000
Oth
er E
vent
s
200820011960 - 1999 20051950 - 1959 2003 20042002
50 Foundation of METAL LEVE, the 1st
piston manufacturer in Brazil
96 Acqusition of the control of Metal Leve S.A. by MAHLE
98 Incorporation of the piston manufacturingplant in Mogi Guaçu, SP
71 Initial public offering at BM&FBovespa 01 Opening of the filter
manufacturing plantin Mogi Guaçu, SP
05 Opening of the bushing manufacturingplant in Itajubá, MG
03-07 Acquisition of 3businessunits fromSiemens - VDO
07 Acquisition of Dana’s engine components business
Acquisition of Edival in Argentina (valve manufacturing plant)
08 Joint Venturewith MAHLE HIRSCHVOGEL FORJAS S.A. in Queimados, RJ
10 Acqusition of the piston ring business from MAHLE Componentes de Motores by MAHLE Metal Leve
11 MAHLE completes its US$195 mm follo w-on offering at BM&FBovespa
08 Opening of the Technology Center in Jundiaí, SP
Net Revenues (R$ bn)
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MAHLE Metal Leve S.A., IR, Investor Relations, May 2015
The MAHLE Metal Leve S.A. Group
© 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 Metal Leve S.A., IR, Investor Relations, May 2015
The MAHLE Metal Leve S.A. Group
© MAHLE
Locations in Argentina
Plant1
Distribution Center1
BUENOS AIRESDistribution Center
RAFAELAValves /
Valve guides /Valve Seats
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MAHLE Metal Leve S.A., IR, Investor Relations, May 2015
The MAHLE Metal Leve S.A. Group
© MAHLE
Diversified presence in markets and products (2014)
Engine Type BreakdownMarket Breakdown Product Breakdown
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MAHLE Metal Leve S.A., IR, Investor Relations, May 2015
Trends & Innovations
© MAHLE
SECTION 3
Trends & Innovations
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MAHLE Metal Leve S.A., IR, Investor Relations, May 2015
Trends & Innovations
© MAHLE
Excellence and Technological Innovation
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� Company is ranked third among publicly-held companies in international patent filings in Brazil: 82 original patentapplications in the last years.
� The number of applications in 2014 was 20 applications. The PCT (The International Patent System) againstayed in:
� Third among private companies
� First in the automotive industry
� Technologies involve coatings of piston rings, cylinder liners and bearings, oil flow control, filter systems, andsintered parts.
� Various discussions occurred with several entities in the automotive market concerning the regulation of items ofthe Inovar-Auto program.
� Meetings with customers for prospecting solutions in technologies for engine components and engineeringservice 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 ofpowertrain.
MAHLE Metal Leve S.A., IR, Investor Relations, May 2015
Trends & Innovations
© 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 Metal Leve S.A., IR, Investor Relations, May 2015
Trends & Innovations
© 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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MAHLE Metal Leve S.A., IR, Investor Relations, May 2015
Financials & Capital Markets
© MAHLE
SECTION 4
Financials & Capital Markets
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MAHLE Metal Leve S.A., IR, Investor Relations, May 2015
Financials & Capital Markets
© MAHLE21
MAHLE Metal Leve S.A., IR, Investor Relations, May 2015
Financials & Capital Markets
© MAHLE
R$ million
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MAHLE Metal Leve S.A., IR, Investor Relations, May 2015
Financials & Capital Markets
© MAHLE
R$ million
� Net Income in 2014: R$ 208.1 million and net margin of 8.9%.
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