SAFE-HARBOR-STATEMENT...• Proactive market research 02PLANT 4 IN POLAND: A SUCCESS-STORY UNIWHEELS...

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SAFE-HARBOR-STATEMENT

UNIWHEELS GROUP INVESTOR PRESENTATION

This presentation includes forward-looking statements based on the beliefs of UNIWHEELS

AG management. Such statements reflect current views of UNIWHEELS AG with respect to

future events and results and are subject to risks and uncertainties. Actual results may vary

materially from those projected here, due to factors including changes in general economic

and business conditions, changes in currency exchange, the introduction of competing

products, lack of market acceptance of new products, services or technologies and changes

in business strategy. UHIWHEELS AG does not intend or assume any obligation to update

these forward-looking statements.

This presentation constitutes neither an offer nor recommendation to subscribe or buy in any

other way securities of UNIWHEELS AG or any of the companies that are members of the

Group at present or in the future, nor does it form part of such an offer and it should not be

understood as such. This presentation does not constitute an offer of sale of securities in the

United States of America. Securities may not be offered or sold in the United States of

America without registration or exemption from registration in accordance with the U.S.

Securities‘ Act of 1933 in its currently valid form.

33

TODAY´S AGENDA

UNIWHEELS GROUP INVESTOR PRESENTATION

21st September 2016 /Wednesday/ CET time

• 6.15 am - Meeting place - the Palace of Culture and Science, 1 Defilad Sq

• 10.30 am - Welcome at Restaurant Dwor Galicja /Rzeczyca Dluga 222, Radomysl n/Sanem

• 11.00 am - Presentations of the full management board on strategic and technological

topics

• Dr. Thomas Buchholz /CEO/

• Dr. Karsten Obenaus /CFO/

• Dr. Wolfgang Hiller /COO/

• 12.30 pm - Lunch

• 1.30 pm - Bus transfer to UNIWHEELS premises

• 2.00 pm - Guided tours through the brand new plant 4

• 3.30 pm - Ends – bus transfer back to Warsaw

• 7.30 pm - Estimated time of return to Warsaw

4

01 STRATEGY 2022 (DR. THOMAS BUCHHOLZ, CEO)

02 PLANT 4 - A SUCCESS-STORY (DR. WOLFGANG HILLER, COO)

03 CRITERIA FOR FURTHER EXPANSION (DR. KARSTEN OBENAUS, CFO)

UNIWHEELS INVESTOR DAY 2016

AGENDA

5

6

MISSION 2022

As a leading manufacturer of alloy wheels, UNIWHEELS serves the

international automobile industry (Automotive), the aftermarket

(Accessory) and international motorsport.

The UNIWHEELS Group is a technology leader on the global market

for alloy wheels.

In the fields of operations, UNIWHEELS sets industry standards which

allow the group to replicate production facilities at all times while

continuously optimizing their configuration and to act proactively

according to market needs.

VISION 2022

01 STRATEGY 2022


7

STRATEGY 2022 PROFITABLE AND SUSTAINABLE GROWTH

OPERATIONAL EXCELLENCE AND PROCESS INNOVATION

A TEAM-ORIENTED CORPORATE CULTURE FOSTERING INNOVATION

EXCELLENT PRODUCT QUALITY AND INNOVATION

COST EFFICIENCY AND SOLID FINANCIAL POSITION

TECHNOLOGYLEADERSHIP

≥ 700mSALES

>10 %EBIT

>15 %EBITDA

>20 %ROCE

< 2.0xNet debt / EBITDA

01 STRATEGY 2022


8

PROFITABLE AND SUSTAINABLE GROWTH

Strategic goals Strategic measures

Automotive

Primary focus on the European market

5% increase in market share in Europe

(top priority)

Expansion into other markets (second priority)

Markets

Automotive

Full utilization of production capacity to increase

share of the European market

Explore growth opportunities in new markets

Synchronize contract development and expansion

of capacity

Accessory

Primary focus on the European market

Increase market share in Germany and in the

export market

Expansion into other markets

Accessory

Improve customer service

Review growth opportunities in new markets

01 STRATEGY 2022


9

PROFITABLE AND SUSTAINABLE GROWTH


Automotive

Premium European OEMs with a high share of

exports to other continents

European locations of non-European OEMs

Customer

Automotive

Retain volume with established premium OEMs

Increase volume shipped to selected premium

OEMs

Reconcile strategy with customers to create a

balanced portfolio of wheels

Accessory

Extend sales activities

Accessory

Retain and expand volumes generated with key

account customers

Expansion of

production

locations

Increase production capacity to over 14 million

wheels in line with customer demand

Penetrate new sales markets

Diversify production locations

Set up an additional production plant in Poland to

provide additional capacity of 2.0 million wheels

Production site analysis for other locations

01 STRATEGY 2022


10

EXCELLENT PRODUCT QUALITY AND INNOVATION


Automotive

Lightweight wheels for cars and light commercial

vehicles

Product

portfolio

Automotive

Permanent monitoring of the market and conduct

tests with alternative materials

Technology

Technology leader for innovative lightweight

solutions

Greater degree of customization provided by more

complex wheel surfaces

Implement the R&D portfolio with a focus on

lightweight solutions

Cooperate with suppliers, customers and universities

of technology

Accessory

Lightweight wheels for cars, forged wheels and

wheels for motorsport

Accessory

Expand the product portfolios of the individual

brands

Proactive market research

01 STRATEGY 2022


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OPERATIONAL EXCELLENCE AND PROCESS INNOVATION

Production

locations


Develop effectiveness, quality and profitability at all

production locations

Implement best-in-class processes

Steady increase in automation, networking and

standardization at all production locations

Improvement of material flow and increase of

automation degree to increase efficiency and

earnings

01 STRATEGY 2022


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A CORPORATE CULTURE THAT FOSTERS TEAM-BUILDING AND

INNOVATION


Human

Resources

Promote and develop our workforce

Flat hierarchies and short decision paths

Nurture motivation and secure competencies

Internal and external training for employees and

development programs

Cooperation agreements with schools and

universities

Promote a culture of cost consciousness and a

margin-oriented mindset

Structure &

Processes

Improve the professionalism of internal processes

Greater networking of processes and digitalization of

divisions

Expand hardware and software to optimize

processes and workflows and create cross-

departmental project teams

Sustain-

ability

&

Compliance

Integrate sustainability throughout the value chain

and the underlying processes to create added value

for the company, the environment, the workforce and

society at large

Constant striving towards ethical, legal and fair

behavior in all business transactions (compliance)

Communicate and exploit potential for more efficient

use of resources and energy in operating units

Foster corporate social responsibility along the entire

supply chain

Further expansion and implementation of the

compliance management system within business

processes

01 STRATEGY 2022


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COST EFFICIENCY AND SOUND FINANCIAL POSITION


Maintain cost efficiency and retain high product

quality

Keep a lean organizationCost

efficiency

Strict cost control

Increase production capacity in cost-efficient

regions

Focus on EBITDA as the key management indicator

Maintain lean board and management structures

Manage sales on the basis of contribution margin

Sound balance sheet structure and appropriate

leverage as a foundation for growth and

expansion

Stable cash flows

Capital market orientation

Sound

financials &

stable cash

flows

Net debt / EBITDA < 2.0

Conservative CAPEX planning

Cash flow and working capital management

Transparent, active capital market communication,

and investor-oriented dividend policy


01 STRATEGY 2022

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THANK YOU

FOR YOUR

ATTENTION

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PREMIUM SUPPLIER TO AUTOMOTIVE AND AFTERMARKET

02 PLANT 4 IN POLAND: A SUCCESS-STORY

We serve a great variety of customers by offering a large range of wheels.

Automotive Business Accessory Business

Bra

nd

Cu

sto

me

rs


17

UNIWHEELS LOCATIONS


BAD DÜRKHEIM, GERMANY

• Headquarter

• Logistic Centre (Accessory)

FUßGÖNHEIM, GERMANY

• Motorsports and Forged Wheel Production

• Prototype Development

WERDOHL/LÜDENSCHEID, GERMANY

• Production Plant 3

• R&D

STALOWA WOLA, POLAND

• Production Plant 1, 2, 4

• Tool Shop

1

2

3

Overall a dedicated workforce of more than 2,900 employees.

1

2 3

BerlinWarsaw


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LOCATION STALOWA WOLA, POLAND:

Plant 4

Plant 1

Plant 2


Plant 2

Plant 1

Plant 4

Stalowa Wola

Warsaw

Lublin

Krakow

3 Plants with a total

capacity of 8.6 Million

wheels and

2500 employees!

UNIWHEELS INVESTOR DAY 2016 18

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• PRODUCTION CAPACITY:

approx. 2.0 m wheels from 2017 (OEM)

• EMPLOYEES:

425 (total 2017)

• HIGH END AND STANDARD WHEELS

• WHEEL SIZES:

– 21” in 2016

– 24” from 2017 onwards

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PLANT 4 IN STALOWA WOLA AT A GLANCE


2015

2016


2020

PLANT 4 IN STALOWA WOLA AT A GLANCE


OPERATING EQUIPMENT:

• 5 melting furnaces

• 24 casting machines

• 3 x-ray facilities

• 2 heat treatment facilities

• 11 robot cells for machining:

• 12 deburring machines for finishing

• 1 painting line of the newest

technology

LAND SIZE: 36.774 m²

BUILDINGS: 31.182 m²


21



LATEST TECHNOLOGY

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• Intelligent internal transport system by roller conveyors

• Automatical CNC machining centre

• Wide usage of robots



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OVERVIEW - ACCELERATION BY 12 MONTHS

Jun 2015

Jun 2016 Jan 2017

OR

IGIN

AL

PL

AN

NIN

G

AC

TU

AL

PL

AN

NIN

G

Plant 4

start of

operation

Plant 4

start of

operation

Full phase

of capacity

FULL PHASE

OF CAPACITY

Jan 2018Jun 2017

Jun 2015

Start of

construcion

works



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START OF

CONSTRUCION

WORKS

April April July October


2014 2015


SCHEDULE CAPACITY EXPANSION

25


Plant 4

START OF

OPERATION

as of June 2016

75% the planned

capacity already

reached

Full phase of capacity

as of Jan. 2017Acceleration of the

expansion project.

Full phase of

capacity

(increase by 50%)

from January

onwards

UNIWHEELS

presents Plant 4 to

investors

March 2016 June 2016 September 2016

20172016

January 2017


26


Germany Poland New factory

DÜW UAG UPG UPP UPX

Purchasing L I S S S

Sales L S S S S

IT L S S S S

Marketing L I I I I

Human Resources L I S S S

Logistics OEM I I L S S

AM L I I S S

On-site Maintenance

casting I S L S I

processing I S L S I

painting I I S L I

automization I I L S I

Industrial Engineering

casting I I L I I

processing I I L I I

painting I I I L I

automization I I L I I

intelligent wheel I S L I I

Engineering I L I S I

Quality I S L S S

Finance / Controlling L I S S S

After Market L S I S I

Legend L Lead S Support I Information


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Feasibility of complex

surfaces

• Painting line is designed for up to 24´´

• Conveyor system is adaptable up to 24´´

• Proactive market research



Broad range of

wheel sizes and diameters

• Highly efficient conveyor processes in plant 4 result

in a share of 35 % diamond-cut wheels

Light weight technologies• Plant 4 can achieve a share of 25 % wheels of

flow-forming technology

Price-/cost pressure

• Plant 4 contributes to an efficient production chain

and is equipped with energy-saving process

technologies

• We invest in training and education of our staff

• Plant 4 underpins our focus for precise process

technologies and efficient automationQuality

27

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• Due to proximity to Plants 1 and 2, no major

overhead or infrastructure is required – significant

economies of scale to be achieved

• No ramp up costs starting 2017 expected

• Developed for high-end wheels with significant

value added

• Starting 2017 our new plant is expected to

substantially contribute to group earnings and

margins

PLANT 4 WILL BE OUR SUBSTANTIAL EARNINGS CONTRIBUTOR

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OUTLOOK

29

THANK YOU

FOR YOUR

ATTENTION

30

3131UNIWHEELS INVESTOR DAY 2016

03 CRITERIA FOR FURTHER EXPANSION

Positive Market

Development

Revenue Growth

Global

Automotive

Trends

OEM demand situation is healthy and is expected to grow further

Rising car production and increasing share of alloy wheels to create capacity shortages

UNIWHEELS is operating at maximum capacity

UNIWHEELS revenue target 2022: EUR 700 million

This will be driven by volume increase as well as higher value added through higher priced wheel mix, product structure

Target to increase premium OEM revenue share and explore growth opportunities in Non-EU growth markets, following

the call of existing customers, maintaining balanced customer portfolio

Growing product diversity, individualization, weight reduction, increase of process efficiency, SUV megatrend with

increase in average wheel size, more complex surfaces, flexiblilty in delivery terms

Continuous improvement of product/peformance ratio to sustainably maintain both technological leadership and cost

efficiency

Production

Efficiency Target to sustainably add value for customers by high-end technologies as well as highest production process efficiency

Cost Efficiency Maintain structural cost advantage by establishing plant facilities in customer proximity and in cost efficient countries

Project Rationale Considering positive market development projection and expected capacity bottlenecks at UNIWHEELs plants, we are

currently evaluating further expansion potiencials with long-term cost efficient production options, political and

economical stability as well as proximity to our major delivery destinations

STRATEGIC RATIONALE FOR EXPANSION OF PRODUCTION

FOOTPRINT

3232

KEY PROJECT TARGETS


Optimization logistics chains, costs and securing raw materials supply4

Minimization of investment risks for UNIWHEELS: cost control, government support and incentives5

Economically and politically attractive investment region for production of aluminium wheels1

Securing employment feasibility: sustained labor availability, access and costs2


Securing selection of best-in-class investment region for UNIWHEELS

to guarantee long-term and sustainable competitive position and

returns

Customer structure demanding a product mix with high value added wheels for their cars3

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Romania

Bulgaria

Western

Turkey

SlovakiaCheck Rep.

UAE

West

Ukraine

UAE

Morocco

Spain

U.K.

Mexico

Hungary

SerbiaBosnia

Slovenia

Moldova

16 COUNTRIES IN SCOPE OF ANALYSIS



3434

QUALITATIVE ASSESSMENT METHODOLOGY:

COUNTRIES EVALUATION AND SELECTION


Political and Business Environment


• Country Credit Rating

• Country Credit Rating Outlook

• Economic Freedom

• Corruption Perception Index

• Ease of Doing Business

• Standard of living

• Political orientation

• Attitude towards foreign investors

• Democracy Index

Utilities

• Gas import dependency

• Security of electricity supply

Logistics Outbound

• Driving time to OEMs destinations

Labor and Education

• Availabilty qualified white collars

• Availability qualified blue collars

• Education index

Macroeconomics

• FDI stock (inward)

• FDI stock per capita

• FDI stock share of nominal GDP

• Nominal GDP

• Industrial production growth

• Average inflation rate

• Government debt as share of GDP

Border Crossing

• EU membership

• Free trade agreement

• Border crossing qualitative indicators

Raw Materials Automotive Tradition

20%

20%

20%

5%

15%

10%

5%

5%

3535

QUANTITATIVE ASSESSMENT METHODOLOGY:

KEY PARAMETERS


Labor


• Gross wages:

• Direct labor (Qual. A,B,C)

• Indirect labor (Qual. A,B,C)

• Social contribution of employer

Logistics Inbound

• Alumium

• > 900 Megatrailer per year

Land costs

• 70.000 sqm

Utilities

• Power (kWh)

• Gas (kWh)

Taxes / Duties

• Corporate income tax

• Import duties for aluminium

Capital Budgeting / Financial Modeling

• NPV (Net present value) > 0

Construction costs

• 39.600 sqm

Logistics Outbound

• Proximity and costs to customer geomid points

• >3.200 Megatrailer per year

3636

QUALITATIVE ASSESSMENT CRITERIA

REGIONAL SELECTION


Logistics


• Avaliability of highways

• Proximity of international airport

Labor

• Average unemployment rate

GDP

• Regional GDP contribution

• Regional GDP per captita

Socio-economic Development

• Regional population

• Migration rate

Education

• Number of university students

• Number of university graduates

• Number of engineering students

• Number of engineering graduates

Industrial cluster

• Die casting / Steel / metal working tradition

40%

10%

10%

30%

10%

k.o.

3737

SUMMARY OF ASSESSMENT, SCORING MODEL

AND PRIO 1 COUNTRY SELECTION



Unattractive Attractive

Attractive

Quantitative

location criteria

• Labor costs

• Land costs

• Construction costs

• Utility costs

• Logistics outbound

• Logistics inbound

• Taxes / duties

• Capital budgeting /

financial modelling

Qualitative country screening criteria

• Macro indicators

• Political and business

environment

• Border crossing

• Driving time to customers

• Utilities

• Automotive traditions

• Labor and education

• Raw materials

Average

Benchmark

Prio 1 Countries

Below average costs

Above average costs

Poland

Serbia

Bulgaria

Romania

Mexico

3838

SHORT LIST: PRIO 1 COUNTRIES FOR IN-DEPTH-ANALYSIS



Country Mexico Romania Serbia Bulgaria

# Regions 2 regions 4 regions 4 regions 4 regions

For the in-depth analysis, the following key metrics

are applied

• Target customer structure

• Target customer proximity

• Target price/wheel (based

on customers and car

models)

• Capex

• Opex

• EBITDA

• EBITDA-Margin (based on

target prices)

• EBIT

• EBIT-Margin

• ROI / Payback Period

• NPV Analysis (>0)

3939

OUTLOOK: TIMETABLE OF DECICION MAKING PROCESS



In-depth Analysis• Next 3

months

Decision on expansion

• Next 6 months

Decision on funding /financing:

equity/debt

• After locationdecision

40

THANK YOU

FOR YOUR

ATTENTION

41

DISCLAIMER

The above presentation was prepared by UNIWHEELS AG.

All information in this presentation is to be treated as strictly confidential.

The confidential information in this presentation may only be used for

your own internal purposes.

This presentation is provided to you on condition that all content

contained within it – including parts or alterations of the content – will

only be used or disclosed to third parties with the prior written and

express approval of UNIWHEELS AG. By accepting this presentation,

the recipient declares his consent with the above condition.

The contents of this presentation are based on the information available

at the time it was prepared. The information may be subject to changes

in future. UNIWHEELS AG does not issue any warranty with regard to

the correctness of the contents of this presentation.

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