Star Conference, Milan 26 March 2014

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Horace Wilkinson
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1 Star Conference, Milan 26 March 2014

2 EXTRA EUROPEAN SALES OUTPACED MARKET GROWTH** IN REFERENCE REGIONS IN 2013 Sogefi NAFTA +31.3%* Registrations 7.2% Production 7.7% Sogefi -1.6%* Europe Registrations -1.7% Production -2.6% Sogefi +33.4%* Asia Registrations 14.6% Production 11.0% Brazil + Argentina Registrations 1.6% Production 4.9% Sogefi +14%* * At constant exchange rates ** Passenger Cars for Eu 28, PC + LCV elsewhere Source: National car associations for registrations, IHS for production 2 SOGEFI GROUP

3 REBALANCING CUSTOMERS AND REGIONS (Based on FY 2013 data) Sogefi Group main Customers* Breakdown by region 4% 4% 11% 14% 18% 17% 66% 64% Asia NAFTA Mercosur Europe * In % of total sales Sogefi won the GM 2013 supplier of the year award First contracts awarded with Hyundai and Porsche The 3 US manufacturers (including FCA) in the top 5 clients Europe weights 64% of revenues vs 66% in 2012 < 6% of revenues in 2013 come from Italy Nafta now represents 14% of the Group revenues and Mercosur 17% 3 SOGEFI GROUP

4 MARGIN EXPANSION IN 2013 (calculated as % on sales) EBIT pre restructuring ( m) Margin 5.9% 6.6% Margin improvement was obtained together with an expansion in revenues and despite the climate of negative exchange rates EBIT ( m) FY 2012 FY 2013 Margin 4.8% 5.2% and with an intensification of restructuring actions 19.2m in % vs 2012 to optimize industrial footprint in Europe FY 2012 FY SOGEFI GROUP

5 2013 KEY ACHIEVEMENTS ( m) FY 2012 FY 2013 YOY Revenues 1,319 1, % Excluding forex effect 5.5% Operating profit % margin 7.0% 8.1% EBITDA % margin 9.6% 9.7% Ebit before Restructuring % margin 6.0% 6.6% restructuring costs EBIT % margin 4.8% 5.2% Net Income % margin 2.1% 1.6% Investments % capex/sales 6.4% 6.3% Net Debt vs 30/9/ % Free Cash Flow RESULTS KEY DRIVERS Revenues and margin are up driven by better regional and product mix despite a climate of negative exchange rates Revenues net of forex effect would have grown +5.5% in 2013 (+8.6% in Q4) Revenues outside Europe now represent 36% of total revenues vs 34% in 2012 (38% net of exchange rate effect) Revenues in NAFTA increased 24.5% YOY to 190m and in Asia 27% YOY to 59m (+31.3% and 33.4% respectively at constant exchange rates) Intensification of efficiency-enhancing initiatives in Europe to optimize industrial footprint leading to 19.2m of restructuring costs in 2013 ( 15.4m in 2012) Net income affected by higher restructuring costs, but also higher financial expenses following the recent refinancing which led to the replacement of lines signed before 2009 with new agreements at current market conditions. Higher tax rate: in 2012 there had been a positive deferred tax in NAFTA Net debt at 304.6m reflecting the NWC absorption for the international expansion and the dividend payment for 17.2m 5 SOGEFI GROUP

6 HIGH FINANCIAL FLEXIBILITY m Net Financial position as of 31/12/ ,9 Debt Refinancing In December 2012 a 215m of debt refinancing was settled: Mainly through a five year credit facility for 200m (of which 80m revolving and 120m amortizing) 437,5 304,6 In May 2013 two US private placements for 115m were signed : a US$115m bond with a 10 year duration a 25m bond with a 7 year duration m Gross debt cash and cash equivalents Net Fin. Position Debt maturity as of 31/12/ Cost of debt: signed at current market price replacing lines signed before the crisis at significantly more favorable rates m Liquidity profile as of 31/12/ Liquidity position Total committed lines not drawn Liquidity margin gross debt > SOGEFI GROUP

7 LOOKING AT THE FUTURE 7 SOGEFI GROUP

8 SOGEFI IN THE WORLD 43 PRODUCTION SITES 17 COMMERCIAL SITES 21 COUNTRIES Data as of 31/12/ SOGEFI GROUP

9 COMPETITIVE POSITIONING 1 st producer in MERCOSUR Fluid Filtration 3 rd producer in Europe Air & Cooling 1 st producer in Europe and NAFTA Suspensions Aftermarket 1 st producer in MERCOSUR 2 nd producer in Europe European and MERCOSUR premium segment joint leadership Sogefi Estimations 9 SOGEFI GROUP

SUPPLYING TOP VEHICLES IN EUROPE Sogefi Engine Systems are

2013 Sogefi Suspensions are in 6 of the top 10 vehicles in

THERMOSTAT HOUSING INTAKE MANIFOLD COILS SPRINGS OIL FILTER

AIR INTAKE SYSTEM THERMOSTAT HOUSING WATER PUMP & PIPES STAB.

5 PEUGEOT 208 AIR INTAKE MODULE INTAKE MANIFOLD THERMOSTAT

BARS DIESEL MODULE TURBO OUTLET THERMOSTAT HOUSING INTAKE

10 SUPPLYING TOP VEHICLES IN EUROPE Sogefi Engine Systems are present on 8 of the 10 most sold Passenger Cars in Europe in 2013 Sogefi Suspensions are in 6 of the top 10 vehicles in Europe in 2013 OIL MODULE TURBO INLET COOLANT PIPE THERMOSTAT HOUSING STAB. BARS REAR FOR TWIST BEAM AXLE DIESEL MODULE TURBO OUTLET THERMOSTAT HOUSING INTAKE MANIFOLD COILS SPRINGS OIL FILTER (supply started in 2014) DIESEL MODULE OIL MODULE TURBO OUTLET AIR INTAKE SYSTEM THERMOSTAT HOUSING WATER PUMP & PIPES STAB. BARS N.2 RENAULT CLIO N.3 FORD FIESTA N.4 VW POLO N.5 PEUGEOT 208 AIR INTAKE MODULE INTAKE MANIFOLD THERMOSTAT HOUSING COOLANT PUMP STAB. BARS DIESEL MODULE TURBO OUTLET THERMOSTAT HOUSING INTAKE MANIFOLD COIL SPRINGS OIL MODULE STAB. BARS TURBO INLET COOLANT PIPE INTAKE MANIFOLD COOLANT PUMP DIESEL MODULE N.6 OPEL CORSA N.7 FORD FOCUS N.8 NISSAN QASHQAI N.9 OPEL ASTRA 10 SOGEFI GROUP

SUPPLYING TOP VEHICLES IN SOUTH AMERICA Sogefi Engine

Cars in Brazil + Argentina in 2013 Sogefi Suspensions

in 2013 FIRST CONTRACT AWARD WITH HYUNDAI IN BRAZIL

BARS (starting from 3Q 2014) N.1 VW GOL N.

5 HYUNDAI HB AIR INTAKE SYSTEM OIL FILTER / FUEL

COIL SPRINGS AIR INTAKE SYSTEM AIR INTAKE SYSTEM OIL

11 SUPPLYING TOP VEHICLES IN SOUTH AMERICA Sogefi Engine Systems are present on 9 of the 10 most sold Passenger Cars in Brazil + Argentina in 2013 Sogefi Suspensions are in 8 of the top 10 vehicles in Brazil + Argentina in 2013 FIRST CONTRACT AWARD WITH HYUNDAI IN BRAZIL AIR INTAKE SYSTEM OIL FILTER / FUEL FILTER COILS SPRINGS STAB. BARS AIR INTAKE SYSTEM OIL FILTER / FUEL FILTER CARBON CANISTER STAB. BARS COIL SPRINGS OIL FILTER MODULE CARBON CANISTER COILS SPRINGS OIL FILTER STAB. BARS FRONT & REAR COIL SPRINGS FRONT STAB. BARS (starting from 3Q 2014) N.1 VW GOL N.2 FIAT PALIO N.3 FORD FIESTA N.4 FIAT UNO N.5 HYUNDAI HB AIR INTAKE SYSTEM OIL FILTER / FUEL FILTER FRONT & REAR COIL SPRINGS OIL FILTER MODULE COIL SPRINGS AIR INTAKE SYSTEM AIR INTAKE SYSTEM OIL FILTER / FUEL FILTER CARBON CANISTER STAB. BARS AIR INTAKE SYSTEM CARBON CANISTER STAB. BARS N.6 FIAT SIENA N.7 RENAULT SANDERO N.8 CHEVROLET CORSA CLASSIC N.9 FIAT STRADA N.10 CHEVROLET ONIX 11 SOGEFI GROUP

12 ALSO SUPPLYING PREMIUM PLATFORMS OIL MODULE OIL MODULE INTAKE MANIFOLD STAB. BARS COILS SPRINGS NEW CONTRACTS: PORSCHE: OIL MODULES on V6 and V8 engines FERRARI 599 AIR INTAKE MANIFOLD COILS SPRINGS BMW 5-series OIL MODULE THERMOSTAT HOUSING COULANT PUMP MERCEDES SLK OIL MODULE STAB. BARS MULSANNE BENTLEY OIL MODULE INTAKE MANIFOLD STAB. BARS PORSCHE CAYENNE AUDI: OIL MODULES on V6 and V8 engines INTAKE MANIFOLD STAB. BARS AUDI A6 AUDI A8 MINI COOPERS OIL FILTER FERRARI CALIFORNIA OIL MODULE OIL MODULE STAB. BARS AIR INTAKE SYSTEM OIL FILTER OIL MODULE DUCATI 1199 PANIGALE MASERATI QUATTROPORTE MERCEDES GLK DUCATI MONSTER 1100 EVO LA FERRARI Serie Limitata SOGEFI GROUP

13 MARKET TRENDS CARS and LCVs BY REGION Leveraging on international market growth opportunities: Nafta, Mercosur, China and India (amounts in M pcs) 30,0 +7,3% 24,5 25,0 +9,8% 22,3 +10,8% +4,2% 20,2 19,4-4,3% 20,1 19,3 19,5 20,3 +10,2% +4,0% 20,0 18,9 +2,7% +5,5% +3,4% 18,2 +3,7% +3,3% 16,8 17,3 +5,0% +17,6% +2,3% 17,2 15,0 16,6 15,4 16,2 +10,2% 13,1 11,9 10,0 +5,8% 27,8 26,3 +3,9% 22,0 21,2 +0,4% 17,8 17,8 5,0 3,9 +2,5% 4,0-1,0% 3,9 +6,6% 4,2 +5,2% 4,4 +8,6% 4,8 4,7 3,2 3,6 3,8 3,6 4,1 +15,5% +12,0% +5,6% -4,5% +12,1% +14,9% +1,8% +7,4% 5,8 5,4 4,9 +6,2% 5,2 0, EUROPE ARGENTINA & BRAZIL NAFTA CHINA INDIA Source: IHS 03/ SOGEFI GROUP

14 MARKET TRENDS ENGINES BY REGION Leveraging on international market growth opportunities: Nafta, Mercosur, India and China (amounts in M pcs) 30,0 25,0 20,0 15,0 10,0 20,7-1,7% 19,3 20,4 +2,2% 20,8 20,6 +1,9% +7,4% +14,5% 18,0 16,5 16,8 +4,1% +18% +7,1% 13,8 14,4 10,9 11,7 22,8 +10,4% +2,1% 21,3 +4,0% 14,9 +8,6% +4,6% +2,6% 28,0 26,6 +5,4% 24,7 +7,3% 24,2 23,1 22,2 +4,8% +4,0% +2,9% -0,7% 15,3 15,8 15,7 5,0 3,6 3,7 3,6 3,8 +18,6% 3,8 4,1 +3,0% -2,5% +3,0% +8,3% +6,0% 4,4 3,0 +7,9% 3,3 +5,7% 3,5-0,5% 3,4 +15,2% 3,7 +15,6% +4,4% 5,1 +9,1% 5,6 4,3 +2,4% 4,4 0, EUROPE ARGENTINA & BRAZIL NAFTA CHINA INDIA Source: IHS 03/ SOGEFI GROUP

15 NEW PLANT INAUGURATION IN MEXICO IN SEPT New Engine System plant inauguration in Monterrey (Mexico) in September 2013 Scorpion Diesel V8 6.7 L Manifold Products: Air Intake manifolds Active runner systems Fuel rails Injectors Electronic throttle bodies V8 6,4L Big Gas Manifold Air Cabin Filter Ducato Air Box DJ 15 SOGEFI GROUP

16 OPPORTUNITIES IN NORTH AMERICA N 1 in Air Intake Manifold Sogefi delivers 8 of the top 20 best seller cars with a strong presence in the V6 and V8 engines SOGEFI 2013 SUPPLIER OF THE YEAR FOR GM Petrol V6 3.5 L GTDI (N 1 in USA) FORD F-150 (N 8 in USA) FORD ESCAPE Petrol L4 2.0 L GDI & GTDI Serving the n 1 best seller diesel vehicle PLASTIC OIL MODULE Petrol L4 2.0 L GDI & GTDI (N 9 in USA) FORD FUSION FORD F-series Pick-Up: N 1 Diesel Vehicle CHRYSLER-JEEP CHEROKEE 16 SOGEFI GROUP

17 NEW PLANT INAUGURATION IN CHINA IN JANUARY 2014 Inauguration in January 2014 of two factories for the production of Suspension Components and Engine Systems 17 SOGEFI GROUP

EXPECTED STRONG GROWTH IN CHINA Leverage on

selected local players Aim to achieve over

tubular and stabilizer bars serving mainly

Intake Manifolds and Water Outlets Serving

Motors Delivering air intake manifold for

18 EXPECTED STRONG GROWTH IN CHINA Leverage on relationship with Western customers and selected local players Aim to achieve over $100m of revenues in 2017 Suspensions: tubular and stabilizer bars serving mainly BMW, Daimler, Fiat/CHX, Ford and PSA FORD FOCUS (N. 2 best seller car in 2013) PSA C5 BMW SERIES 3 BMW X1 BMW SERIES 5 DAIMLER C-CLASS AND E-CLASS Engine systems: Air Intake Manifolds and Water Outlets Serving Daimler, SGM/SAIC, Ford and Jiangling Motors Delivering air intake manifold for E- Class and C-Class Market leader on pressure filter for Dual Clutch Transmission for VW DQ200 VW LAVIDA (N 4 best seller car in 2013) VW SAGITAR (N 9 best seller car in 2013) 18 SOGEFI GROUP

A GROWING PLAYER IN INDIA Well positioned to serve all major local manufacturers 4 plants in INDIA: Pune: Engine Systems + Suspensions Bangalore: Engine Systems New

19 A GROWING PLAYER IN INDIA Well positioned to serve all major local manufacturers 4 plants in INDIA: Pune: Engine Systems + Suspensions Bangalore: Engine Systems New Delhi: Engine Systems 2 Leverage on enhanced integration of Engine Systems activities Pune Chennai Source: _IHS_LV_Production_Base_Global_2013M12 19 SOGEFI GROUP

20 A GROWING PLAYER IN INDIA Single largest supplier of Air Filter elements to 2W s in India Present in 3 out of the 8 top selling vehicles in 2013 WATER PUMP THERMOSTAT HOUSING WATER PUMP THERMOSTAT HOUSING WATER PUMP STAB BARS SPLENDOR CD DAWN PASSION SUPER SPLENDOR BOXER PLATINA DISCOVER PULSAR MARUTI SUZUKI SWIFT DZIRE N. 2 best seller car MARUTI SUZUKI SWIFT N. 3 best seller car TATA INDICA N. 8 best seller car STAR, PHOENIX WEGO JUPITER MOPED Supplying DIESEL FUEL FILTER in 4 of the 7 top selling utility vehicles in 2013 Supplying 3W s top players in India MAHINDRA BOLERO N. 10 best seller car in 2013 MAHINDRA XUV 500 3W MAXXIMO MAHINDRA SCORPIO FORD ECOSPORT (Starting from 2014) 20 SOGEFI GROUP

21 HEAVY DUTY MAIN CUSTOMERS In the heavy duty business, Sogefi is: Market leader in suspensions in Europe Serving leaders through the world Market leader in Engine Systems in South America Market leader for Aftermarket both IAM and OES in South America, entered European aftermarket in SOGEFI GROUP

22 SUPPLYING ALSO RAILWAYS, AGRI + CONSTRUCTION EQUIPMENT 22 SOGEFI GROUP

EXTENSION IN THE AFTERMARKET PRODUCT RANGE CABIN AIR FILTERS: A

fitted on 95% of new cars An essential replacement: protection

23 EXTENSION IN THE AFTERMARKET PRODUCT RANGE CABIN AIR FILTERS: A rapidly growing market: +50% in last 3 years A growing car parc: fitted on 95% of new cars An essential replacement: protection from external pollution and from bad odours A specific brand for Heavy Duties Creation of Sogefi brand awareness as a trade mark Expansion into new high potential market segments 23 SOGEFI GROUP

24 INNOVATIVE SOLUTION FOR THE AFTERMARKET New packaging specifically designed for cabin air filters: Preserves the integrity of the product until it is fitted Optimises handling through the entire supply chain Eco-friendly Strong Transparent Improves the preservation of natural resources Longer durability and resistance to logistics stress 100% recyclable, No paper waste for boxes Transparent: Better and immediate product identification Optimised Clear Protective 24 SOGEFI GROUP

25 INVESTMENTS 25 SOGEFI GROUP

26 RESOURCES DEDICATED TO COMPETITIVENESS In 2013 Sogefi continued its expansion strategy China: Engine Systems: Start of construction of a new plant in Wujiang Suspensions: Start of construction of a new plant in Wujiang India: Engine Systems: Inauguration of factory in Pune Mexico: Engine Systems: Production capacity extension at the Monterrey plant Capital expenditure ( m) Capex/sales 6.4% 6.3% Investments are scheduled according to contracts award Intangibles refer mainly to product development Focus on organic growth R&D around 2.5-3% of sales (increased from the historical 2%) Intangibles Tangibles 26 SOGEFI GROUP

27 SUMMING UP Building a more proactive Group through: 1. Rebalancing the regions weight: weight of extra European activities set to rise from current 36% thanks to start ups and to growth in Latin America, Nafta and Asia 2. Leveraging on Innovations: Introduction of new innovative products/technologies to respond to manufacturers reduced weight and consumption requirements Completing the product offer throughout the different geographies exploiting Sogefi s competitive positioning and competences 3. Always more efficient Optimizing the cost structure to better respond to market demand Intensifying efficiency enhancing activities, including restructuring 4. Accelerating Group integration Investing on processes and systems improvement Coherent development of our people 27 SOGEFI GROUP

28 CONTACTS Giancarlo Coppa, Group CFO Laura Pennino, Investor Relations SOGEFI Via Flavio Gioia, Milano Italia Tel: Fax: Mail: ir@sogefigroup.com 28 SOGEFI GROUP

29 DISCLAIMER This document has been prepared by SOGEFI S.p.A. for information purposes only and for use in presentations of the Group s results and strategies. For further details on the SOGEFI Group. reference should be made to publicly available information. including the Annual Report. the Semi-Annual and Quarterly Reports. Statements contained in this document. particularly the ones regarding any SOGEFI Group possible or assumed future performance. are or may be forward looking statements and in this respect they involve some risks and uncertainties. Any reference to past performance of the SOGEFI Group shall not be taken as an indication of future performance. This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. 29 SOGEFI GROUP

VI SMALL CAPS CONFERENCE

VI SMALL CAPS CONFERENCE 1 Milano November 27 th, 2008 A worldwide technological and market leader on two key vehicles components SUSPENSION FLEXIBLE COMPONENTS ENGINE AND CABIN FILTRATION SYSTEMS coil